Answer:
Gross profit for January = $786
Explanation:
Particulars Units Rate Amount
Sales on 19th 24 $28 $672
Sales on 27th 27 $32 $864
Closing Balance 6 $17 $102
Total $1,638
Particulars Units Rate Amount
Opening 18 $13 $234
Purchases on Jan 12th 15 $14 $210
Purchases on Jan 20th 24 $17 $408
Gross Profit $786
Total $1,638
A growing trend to "Buy American" may encourage law makers to increase political pressure for Washington to pass legislation for more restrictive quotas on Japanese car imports. In addition, a decline in the value of the US dollar would be instrumental in Toyota’s decision to build a manufacturing plant in the United States instead of continuing to export cars from Japan. If Toyota builds a plant, it’s decision would effect...
Answer: positive result from regulatory and economic environmental forces.
Explanation:
Based on the information given, if Toyota builds a plant, then the decision would reflect positive result from the regulatory and economic environmental forces.
The regulatory forces depend impact how an organization will operate. It is part of the external marketing environment of a company whereby the political efforts has an affect on a company's marketing effort.
In this case, since there is a growing trend to "Buy American", if Toyota builds a plant, rather than importing, it'll represent positive result from regulatory and economic environmental forces.
The following selected transactions relate to liabilities of Rocky Mountain Adventures. Rocky Mountain's fiscal year ends on December 31.
January 13: Negotiate a revolving credit agreement with First Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $10 million at the bank's prime rate.
February 1: Arrange a three-month bank loan of $4.3 million with First Bank under the line of credit agreement. Interest at the prime rate of
7% is payable at maturity.
May 1: Pay the 7% note at maturity.
Record the appropriate entries, if any, on January 13, February 1, and May 1.
Answer: See explanation
Explanation:
The appropriate entries will be recorded thus:
13 Jan No entry
1 Feb Debit Cash account $4,300,000
Credit Note payable $4,300,000
(For note issued on borrowing)
1 May Debit Interest Expense $4,300,000 × 7% × 3/12 = $75250
Debit Notes payable $4,300,000
Credit Cash account $4,375,250
(For amount paid on maturity)
A copy machine is available 18 hours a day. On a typical day, the machine needs to process 320 jobs. Each job takes about 1.5 minutes on the machine, 0.5 minute of which is processing time and 1 minute is setup time (logging in, defining the job). About 25% of the jobs need to be reworked, in which the set?up time and the processing time have to be repeated once. In the remaining time, the equipment is idle. You would need to show steps and use 2 decimals in calculations.
(a) Draw a tree diagram to show the breakdown of equipment time.
(b) Define and calculate total non value added time in minutes.
(c) Define and calculate total value added time in minutes.
(d) Calculate total waste time in minutes. Give a detailed breakdown of waste time.
(e) What is the OEE of the equipment? (percentage, 2 decimals, i.e. 23.67%)
Answer:
(b)
Total available time = 18x60 =1080 min.
Total processing time = 320x0.5 = 160 min
Total set up time = 320x1 -320 min.
Total rework time = ( 1+0.5) =120 min.
Total Non value added time = set up time + rework time 320+120 = 440 min.
(c) Total value added time = processing time = 160 min.
(d) Total waste time = set up time + rework time + Idle time 320+120+ 480 = 920 mn.
(e) OEE = processing time / time available = 160/1080 = 0.1481 = 14.81%
The market research department of the National Real Estate Company conducted a survey among 500 prospective buyers in a suburb of a large metropolitan area to determine the maximum price a prospective buyer would be willing to pay for a house. From the data collected, the distribution that follows was obtained.
Maximum Price Considered, x P(X = x)
(in thousands of dollars)
480 10
500
490 20
500
500 75
500
510 85
500
520 70
500
550 95
500
580 95
500
600 45
500
650 5
500
Required:
Compute the mean, variance, and standard deviation of the maximum price x that these buyers were willing to pay for a house.
Answer:
Following are the responses to the given question:
Explanation:
Using formula:
[tex]Mean=\Sigma x \times P(x)\\\\Variance=\Sigma (x-\mu)^2 \times P(x)\\\\Standard \ Deviation=\sqrt{Variance}[/tex]
[tex]x\ \ \ \ \ \ \ P(x)\ \ \ \ \ \ \ x\times P(x)\ \ \ \ \ \ \ (x-\mu)^2\times P(x)\\\\480\ \ \ \ \ \ \ 0.02\ \ \ \ \ \ \ 9.6\ \ \ \ \ \ \ 72.9632\\\\490\ \ \ \ \ \ \ 0.05\ \ \ \ \ \ \ 24.5\ \ \ \ \ \ \ 127.008\\\\500\ \ \ \ \ \ \ 0.14\ \ \ \ \ \ \ 70\ \ \ \ \ \ \ 228.5024\\\\510\ \ \ \ \ \ \ 0.16\ \ \ \ \ \ \ 81.6\ \ \ \ \ \ \ 147.8656\\\\520\ \ \ \ \ \ \ 0.14\ \ \ \ \ \ \ 72.8\ \ \ \ \ \ \ 58.2624\\\\550\ \ \ \ \ \ \ 0.18\ \ \ \ \ \ \ 99\ \ \ \ \ \ \ 16.5888\\\\[/tex]
[tex]580\ \ \ \ \ \ \ 0.18\ \ \ \ \ \ \ 104.4\ \ \ \ \ \ \ 282.2688\\\\600\ \ \ \ \ \ \ 0.12\ \ \ \ \ \ \ 72\ \ \ \ \ \ \ 426.2592\\\\650\ \ \ \ \ \ \ 0.01\ \ \ \ \ \ \ 6.5\ \ \ \ \ \ \ 120.1216\\\\[/tex]
[tex]Total\ \ \ \ \ \ \ \ \ \ 540.4 \ \ \ \ \ \ \ \ \ \ 1479.84\\\\Mean \ \ \ \ \ \ \ \ \ \ 540.4 \ \ \ \ \ \ \ \ \ \ dollars\\\\Variance \ \ \ \ \ \ \ 1479.84 \ \ \ \ \ \ \ \ dollars^2\\\\St \ Dev \ \ \ \ \ \ \ \ \ \ 38 \ \ \ \ \ \ \ \ \ \ dollars[/tex]
Birch Corp., a calendar-year corporation, was formed three years ago by its sole shareholder, James, who has operated it as an S corporation since its inception. Last year, James made a direct loan to Birch Corp. in the amount of $6,650. Birch Corp. has paid the interest on the loan but has not yet paid any principal. (Assume the loan qualifies as debt for tax purposes.) For the year, Birch experienced a $32,000 business loss.
What amount of the loss clears the tax basis limitation, and what is James?s basis in his Birch Corp. stock and Birch Corp. debt in each of the following alternative scenarios?
a. At the beginning of the year, James's basis in his Birch Corp. stock was $46,100 and his basis in his Birch Corp. debt was $6,600.
b. At the beginning of the year, James's basis in his Birch Corp. stock was $10,300 and his basis in his Birch Corp. debt was $6,600.
c. At the beginning of the year, James's basis in his Birch Corp. stock was $0 and his basis in his Birch Corp. debt was $6,600.
Answer:
A. $32,000 clears the tax basis limitation
$14,100 basis in his Birch Corp. stock
$6,600 Birch Corp. debt
B. $16,900 clears the tax basis limitation
$0 basis in his Birch Corp. stock
$0 Birch Corp. debt
$15,000 suspended loss
C. $6,600 clears the tax basis limitation
$0 basis in his Birch Corp. stock
$0 Birch Corp. debt
$25,400 suspended loss
Explanation:
A. Based on the information given All the $32,000 amount of the loss will clear up the tax basis limitation which means that James’s stock basis will be reduced to $14,100 ($46,100 – $32,000 loss) while His debt basis on the other hand remains at $6,600.
Therefore:
$32,000 clears the tax basis limitation
$14,100 basis in his Birch Corp. stock
$6,600 Birch Corp. debt
B. Based on the information given of the $32,000 loss, $16,900($10,300+$6,600) will clear up the tax basis limitation, While his stock basis will be reduced from $10,300 to $0, and his debt basis will be reduced from $6,600 to $0. Which means that he has a suspended loss of $15,100 ($32,000 - $16,900)
Therefore:
$16,900 clears the tax basis limitation
$0 basis in his Birch Corp. stock
$0 Birch Corp. debt
$15,000 suspended loss
C. Based on the information given the amount of $6,600 will clear up the tax basis limitation. His stock basis will remains at $0, while his debt basis will be reduced from $6,600 to $0. Which means that he has a suspended loss of $25,400 ($32,000 – $6,600)
Therefore:
$6,600 clears the tax basis limitation
$0 basis in his Birch Corp. stock
$0 Birch Corp. debt
$25,400 suspended loss
Why is it important to reconcile your bank statements?
Answer:
hen you reconcile your business bank account, you compare your internal financial records against the records provided to you by your bank. A monthly reconciliation helps you identify any unusual transactions that might be caused by fraud or accounting errors, and the practice can also help you spot inefficiencies.
Explanation:
Answer:
When you reconcile your business bank account, you compare your internal financial records against the records provided to you by your bank. A monthly reconciliation helps you identify any unusual transactions that might be caused by fraud or accounting errors, and the practice can also help you spot inefficiencies.
On January 1, 2021, Farmer Fabrication issued stock options for 420,000 shares to a division manager. The options have an estimated fair value of $9 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 5% in five years. Suppose that after one year, Farmer estimates that it is not probable that divisional revenue will increase by 5% in five years.
Required:
1. What is the revised estimate of the total compensation?
2. What action will be taken to account for the options in 2022?
3. What journal entry will be needed to account for the options in 2022?
Answer and Explanation:
The computation and the journal entry is
1 The revised estimated total compensation = 0
2 The Farmer will able to reverse the 2021 recorded compensation
3 The journal entry is
Paid in capital-stock options $756,000 ($420,000 × 9)/5
Compensation expense $756,000
(Being the journal entry for the option is recorded)
Here the paid in capital would be debited as it decreased the equity and the compensation expense is credited as it decreased the liability
Andy derives utility from two goods, potato chips (Qp) and Cola (Qc). Andy receives zero utility unless he consumes some of at least one good. The marginal utility that he receives from the two goods is given as follows:
Qp MUp Qc MUc
1 12 1 24
2 10 2 22
3 8 3 20
4 6 4 18
5 4 5 16
6 2 6 14
7 -2 7 12
8 4 8 10
Refer to Scenario, what is the total utility that Andy will receive if he consumes 5 units of potato chips (Qp) and no Cola drink (Qc)?
Answer:
TU = 40
Explanation:
Total utility is the sum of marginal utility obtained by consuming different units of the good. So at 5 units of potato chips (Qp) and 0 units of Cola drink (Qc) , we can find total utility by adding marginal utility till 5th unit of Qp.
[tex]Total utility = 12 + 10 + 8 + 6 + 4 \\ = 40[/tex]
Thus, total utility from 5 units of potato chips and no cola is 40 utils.
The total utility that Andy will receive if he consumes 5 units of potato chips (Qp) and no Cola drink (Qc) is 40.
The calculation is as follows:= 12 + 10 + 8 + 6 + 4
= 40 utils
Therefore we can conclude that The total utility that Andy will receive if he consumes 5 units of potato chips (Qp) and no Cola drink (Qc) is 40.
Learn more: brainly.com/question/16911495
When you begin a new job, you might be assigned to a _____, who will provide much of the new employee training.
mentor
team leader
another new employee
manager
Use the drop-down menu to select the qualification best demonstrated in each example. Virgil is on time every day to his job as a Packaging Machine Operator. Lily analyzes a product's supply chain to identify ways to make it more efficient. Chase manages shipping schedules so products are sent on time. Zaida helps another worker get products ready for shipping.
Answer:
Dependability, critical-thinking skills, organizational skills, and teamwork.
Explanation:
I got it right.
Answer:
Noting here you answer is UP there ↑↑↑↑
Explanation:
Two methods can be used to produce expansion anchors. Method A costs $65,000 initially and will have a $18,000 salvage value after 3 years. The operating cost with this method will be $28,000 in year 1, increasing by $3600 each year. Method B will have a first cost of $108,000, an operating cost of $8000 in year 1, increasing by $8000 each year, and a $38,000 salvage value after its 3-year life. At an interest rate of 8% per year, which method should be used on the basis of a present worth analysis
Answer:
Method B should be used
Explanation:
Note: See the attached excel file for the calculation of the present worth of Method A and Method B.
From the attached excel file, we have:
Present worth of Method A = –$210,889.85
Present worth of Method B = –$118,011.18
Since the present worth of Method A and B above imply Method A costs more than Method B, Method B should be used.
Jayden, a calendar year taxpayer, paid $16,000 in medical expenses and sustained a $20,000 casualty loss in 2020 (the loss occurred in a Federally declared disaster area). He expects $12,000 of the medical expenses and $14,000 of the casualty loss to be reimbursed by insurance companies in 2021. Before considering any limitations on these deductions, how much can Jayden include in determining his itemized deductions for 2020
Answer:
$16,000;$6,000
Explanation:
Calculation to determine how much can Jayden include in determining his itemized deductions for 2020
Based on the information given he can include $16,000 of the medical expenses amount paid and $6,000 calculated as ($20,000-$14,000) of the casualty loss amount when determining his itemized deductions for the year 2020.
Therefore the amount he can include in determining his itemized deductions for 2020 are :$16,000;$6,000
Zeffer is a small but growing bottling company that competes with large soft drink heavy-hitters. To set itself apart, Zeffer has decided to develop a line of all-natural soft drinks that are believed to be healthier than typical high-calorie sodas. The company hopes that these soft drinks will become popular in various sectors of the U.S. market. Answer the following question based on the scenario described above. Zeffer executives have decided to focus marketing efforts on the ________ market, since this group is expected to grow more rapidly than
Answer:
Hispanic
Explanation:
In the United States Hispanic population has continued to be responsible for half of the total population growth since 2010 till date.
In this time Hispanics contributed 52% to the 18.9 million population growth in the United States.
Based on this trend Zeffer has decided to develop a line of all-natural soft drinks that are believed to be healthier than typical high-calorie sodas and targeting the Hispanic market will make their product popular rapidly.
Qwest Communications International, Inc. borrowed $499,000 on November 1, 2021, and signed a 12-month note bearing interest at 8%. Interest is payable in full at maturity on October 31, 2022. Related to this note, Qwest should report interest payable at December 31, 2021, in the amount of: (Round your final answers to the nearest whole dollar.) Multiple Choice $39,920. $33,267. None of these answer choices are correct. $6,653. $26,613.
Answer:
Interest Payable - 2021 = $6653.33 rounded off to 6653
Explanation:
The accrual principle in accounting requires the revenue and expenses for a period to be matched and recorded in their corresponding or respective periods. Thus, even though the interest on note will be paid at maturity in 2022, the interest expense related to the month of November 2021 and December 2021 will be recorded in the current year at 31 December as interest payable.
Interest Payable - 2021 = 499000 * 8% * 2/12
Interest Payable - 2021 = $6653.33 rounded off to 6653
Required information The Foundational 15 (Static) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] Skip to question [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 30 $ 12 Direct labor 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total cost per unit $ 100 $ 68 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Foundational 13-1 (Static) Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products
Answer:
Cane Company
Total traceable fixed manufacturing overhead:
Alpha = $1,600,000
Beta = $1,800,000
Explanation:
a) Data and Calculations:
Alpha Beta
Selling price per unit $120 $80
Direct materials $ 30 $ 12
Direct labor 20 15
Variable manufacturing overhead 7 5
Traceable fixed manufacturing overhead 16 18
Variable selling expenses 12 8
Common fixed expenses 15 10
Total cost per unit $ 100 $ 68
Total traceable fixed manufacturing overhead:
Alpha = $1,600,000 ($16 * 100,000)
Beta = $1,800,000 ($18 * 100,000)
They are themselves always, and without any exception, the greatest spendthrifts in the society. Let them look well after their own expense, and they may safely trust private people with theirs."
Adam Smith statement would best support what economic concept in the US economy?
increase the nation’s wealth with Mercantilism
providing its citizens with public works
a nation has to be safe.
to protect the economic freedom of all of its citizens
Answer: to protect the economic freedom of all of its citizens
Explanation:
The above quote by Adam Smith was him criticizing the common practice in those days of nations trying to control the spending habits of their citizens by passing restrictive laws and limiting the importation and production of certain goods and services.
It would therefore support the U.S. policy of protecting the economic freedom of her citizens such that they may trade whatever it is that they want - so long as it is legal - without restrictions by the government.
You are in charge of reordering gasoline for your company car fleet. You have decided to use a periodic inventory control system, and calculated your economic order quantity (EOQ) to be 4800 gallons. Your company is open 50 weeks per year and you look back at historic demand and find that you have averaged using 160 gallons per day with a standard deviation of demand of 35 gallons per day. The lead time from when you place an order until when it is delivered is 2 weeks. Assume the company operates 7 days per week. What should be the optimal time between orders (P) based on the economic ord
Answer:
The answer is "30 days".
Explanation:
Please find the complete question in the attached file.
per period demand [tex]d=160[/tex]
per year periods [tex]o=350[/tex]
Annual demand
Order quantity
Orders per year
The time between orders
Sarasota Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2017, Sarasota had the following transactions related to notes payable.
Sept. 1 Issued a $16,800 note to Pippen to purchase inventory. The 3-month note payable bears interest of 9% and is due December 1. (Sarasota uses a perpetual inventory system.)
Sept. 30 Recorded accrued interest for the Pippen note.
Oct. 1 Issued a $22,800, 10%, 4-month note to Prime Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February 1.
Oct. 31 Recorded accrued interest for the Pippen note and the Prime Bank note.
Nov. 1 Issued a $27,600 note and paid $8,100 cash to purchase a vehicle to transport clients to nearby climbing sites as part of a new series of climbing classes. This note bears interest of 6% and matures in 12 months.
Nov. 30 Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehicle note.
Dec. 1 Paid principal and interest on the Pippen note.
Dec. 31 Recorded accrued interest for the Prime Bank note and the vehicle note.
I was wondering how to do the journal entries for...
1. October 1st
2. November 1st
3. November 30th
4. December 31st
Answer:
Sarasota Corporation
Journal Entries for the following dates:
Oct. 1: Debit Equipment $22,800
Credit 10% Notes Payable (Prime Bank) $22,800
To record the issuance of a 4-month note.
Nov. 1: Debit Vehicle $35,700
Credit Cash $8,100
Credit 6% Notes Payable $27,600
To record the issuance of a 12-month note and cash for purchased vehicle.
Nov. 30: Debit Interest Expense $454
Credit Interest payable $454
To accrue the interests due on the notes.
Dec. 31: Debit Interest Expense $328
Credit Interest payable $328
To accrue the interests due on the outstanding notes.
Explanation:
a) Data and Analysis:
Sept. 1: Inventory $16,800 9% Notes Payable (Pippen) $16,800
3-month note
Sept. 30: Interest Expense $126 Interest payable $126
Oct. 1: Equipment $22,800 10% Notes Payable (Prime Bank) $22,800
4-month note
Oct. 31: Interest Expense $316 Interest payable 316
Nov. 1: Vehicle $35,700 Cash $8,100 6% Notes Payable $27,600
12-month note
Nov. 30: Interest Expense $454 Interest payable $454
Dec. 1: Notes payable (Pippen) $16,800 Interest payable $378 Cash $17,178
Dec. 31: Interest Expense $328 Interest payable $328
BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn’t equipped to do. Estimates regarding each machine are provided below.
Machine A Machine B
Original cost $78,200 $182,000
Estimated life 8 years 8 years
Salvage value 0 0
Estimated annual cash inflows $19,800 $39,600
Estimated annual cash outflows $5,130 $10,180
Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round answer for present value to 0 decimal places, e.g. 125 and profitability index to 2 decimal places, e.g. 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
Machine A Machine B
Net present value
Profitablitly index
Machine A Machine B Net present value Profitability index Which machine should be purchased?
Answer:
1. Machine A
Net present value $2,996
Profitability index 1.04
Machine B
Net present value($19,166)
Profitability index = 0.89
B. Machine A
Explanation:
Calculation for the net present value and profitability index of each machine
MACHINE A
NET PRESENT VALUE
Cash Flows×9% Discount Factor=Present value
Present value of net annual cash flows($19,800-$5,130)×5.53482 =$81,196
Present value of salvage value$0 ×0.50187 =$0 $81,196
Capital investment $78,200
Net present value $2,996
($81,196-$78,200)
MACHINE APROFITABILITY INDEX
Profitability index = $81,196 / $78,200
Profitability index = 1.04
MACHINE A
NET PRESENT VALUE
Cash Flows×9% Discount Factor=Present value
Present value of net annual cash flows ($39,600-$10,180) ×5.53482 =$162,834
Present value of salvage value$0 ×0.50187 =$0 $162,834
Capital investment $182,000
Net present value($19,166)
Profitability index = $162,834 / $182,000
Profitability index = 0.89
Therefore the net present value and profitability index of each machine are :
Machine A
Net present value $2,996
Profitability index 1.04
Machine B
Net present value($19,166)
Profitability index = 0.89
2. Based on the above calculation for both Machine And Machine B we can see that Machine B net present value is negative while, profitability index is also low which means that Machine B should not be Purchased and MACHINE A SHOULD BE PURCHASED.
Tamarisk Corporation had the following activities in 2020. 1. Payment of accounts payable $711,000 4. Collection of note receivable $93,000 2. Issuance of common stock $247,000 5. Issuance of bonds payable $522,000 3. Payment of dividends $335,000 6. Purchase of treasury stock $49,000 Compute the amount Tamarisk should report as net cash provided (used) by financing activities in its 2020 statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash select an option by financing activities $enter a dollar amount
Answer:
the Net Cash flow provided by financing activities is $385,000
Explanation:
The computation of the amount that should be reported as net cash provided or used by financing activities is shown below:
Cash flow from financing activities
Issuance of common stock $247,000
Issuance of bonds payable $522,000
Less: Payment of dividends -$335,000
Less: Purchase of treasury stock -$49,000
Net Cash flow provided by financing activities $385,000
Hence, the Net Cash flow provided by financing activities is $385,000
Differential Analysis for a Lease or Buy Decision
Laredo Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $120,000. The freight and installation costs for the equipment are $1,500. If purchased, annual repairs and maintenance are estimated to be $2,200 per year over the six-year useful life of the equipment. Alternatively, Laredo Corporation can lease the equipment from a domestic supplier for $25,000 per year for six years, with no additional costs.
Prepare a differential analysis dated March 15 to determine whether Laredo Corporation should lease (Alternative 1) or purchase (Alternative 2) the equipment. (Hint: This is a "lease or buy" decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment owner). If an amount is zero, enter "0".
Differential Analysis
Lease (Alt. 1) or Buy (Alt. 2) Equipment
March 15
Lease
Equipment
(Alternative 1) Buy
Equipment
(Alternative 2) Differential
Effects
(Alternative 2)
Costs:
Purchase price $ $ $
Freight and installation
Repair and maintenance (6 years)
Lease (6 years)
Total costs $ $ $
Answer:
Lease Equipment $150,000
BUY EQUIPMENT$134,700
Differential Effects-$15,300
The company should choose BUY EQUIPMENT which is Alternative 2
Explanation:
Preparation of the differential analysis dated March 15 to determine whether Laredo Corporation should lease (Alternative 1) or purchase (Alternative 2) the equipment
Differential Analysis
Lease (Alt. 1) or Buy (Alt. 2) Equipment
March 15
Lease Equipment (Alternative 1); Buy Equipment
(Alternative 2); Differential Effects (Alternative 2)
Costs:
Purchase price $0 $120,000 $120,000
Freight and installation $0 $1,500 $1,500
Repair and maintenance (6 years) $0 $13,200.$13,200
($2,200*6=$13,200)
Lease (6 years) $150,000 $0 -$150,000
($25,000*6)
Total costs $150,000 $134,700 -$15,300
Based on the above calculation the company should choose BUY EQUIPMENT which is Alternative 2
The statement of cash flows (as well as the balance sheet) includes within cash the notion of cash equivalents. The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required: 1. Obtain the relevant authoritative literature on cash equivalents using the FASB Accounting Standards Codification at the FASB website (www.fasb.org). What is the specific seven-digit Codification citation (XXX-XX-XX) that describes the guidelines for determining what items should be deemed cash equivalents
Answer: FASB ACS 305-10-20
Explanation:
The FASB Accounting Standards Codification simply refers to the source with regards to accounting principles that are generally accepted.
It should be noted that the specific seven-digit Codification citation that describes the guidelines for determining the items that should be deemed cash equivalents is FASB ACS 305-10-20. The main guideline contained here is that cash equivalents can be changes easily to cash.
Forever Ready Company expects to operate at 88% of productive capacity during May. The total manufacturing costs for May for the production of 29,040 batteries are budgeted as follows:
Direct materials $225,100
Direct labor 82,800
Variable factory overhead 23,156
Fixed factory overhead 46,000
Total manufacturing costs $377,056
The company has an opportunity to submit a bid for 2,000 batteries to be delivered by May 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during May or increase the selling or administrative expenses.
Required:
What is the unit cost which Forever Ready Company should not go in bidding on the government contract? Round your answer to two decimal places.
Answer:
$11.40
Explanation:
Calculation to determine the unit cost which Forever Ready Company should not go in bidding on the government contract
FOREVER READY COMPANY UNIT COST
Direct materials $7.75
($225,100/29,040)
Direct labor $2.85
($82,800/ 29,040)
Variable factory overhead $0.80
($23,156/ 29,040)
Total Per unit cost $11.40
($7.75+$2.85+$0.80)
Therefore the unit cost which Forever Ready Company should not go in bidding on the government contract is $11.40
Skyler Manufacturing recorded operating data for its shoe division for the year. Sales $4,500,000 Contribution margin 500,000 Controllable fixed costs 200,000 Average total operating assets 900,000 How much is controllable margin for the year
Answer:
Controllable margin= $300,000
Controllable margin in %= 33.3%
Explanation:
Controllable margin is sales revenue less controllable variable costs and fixed cost.
Controllable margin= Sales revenue - controllable variable cost - controllable fixed costs
Controllable margin= contribution margin - fixed costs
= 500,000 - 200,000= 300,000
Controllable margin in %= 300,000/900,000 × 100 =33.3%
Controllable margin in %= 33.3
start and explain five importance of HRM
Answer:
Human Resource Management deals with issues related to compensation, performance management, organisation development, safety, wellness and others. HRM plays a role in managing people and the workplace culture and environment
Explanation:
Gibson Guitar Corporation has chosen to build instruments one at a time, by hand. Gibson's century-old tradition of creating investment-quality instruments represents the highest standards of imaginative design and masterful craftsmanship. Gibson's CEO has found an inverse price-demand relationship exists. He states, "the more we charged, the more guitars we sold." Thus, consumers think that higher prices mean more quality in the case of _____.
Answer:
product
Explanation:
Mr. and Mrs. Kim, married filing jointly, own a principal residence and a vacation home. Each residence is subject to a mortgage that qualifies as acquisition debt, and both mortgages were incurred before December 15, 2017. This year, the mortgage holders provided the following information: Mortgage Interest Paid $ 45,000 26,300 Average Balance of Mortgage $ 969,800 361,000 Principal residence Vacation home
Compute Mr. and Mrs. Kim's qualified residence interest. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)
Qualified residence interest________
Answer:
$53,577
Explanation:
Computation for Mr. and Mrs. Kim's qualified residence interest
Using this formula
Qualified residence interest=(Acquisition debt ÷ Total debt) ×Total interest
Where,
Total Acquisition=$ 969,800+ 361,000
Total Acquisition=$1,330,800
Total debt =$ 45,000 +26,300
Total debt=$71,300
Let plug in the formula
Qualified residence interest=(1,000,000÷$1,330,800)×$71,300
Qualified residence interest=$53,577
Therefore the Qualified residence interest is $53,577
Why do they say Accounting Equation is the basis for the preparation of statement of financial position in accordance to IFRS financial statement presentation ?
Answer:
The Statement of Financial Position (SFP) or Balance Sheet, shows the assets of the company on one side and then the way the funding that enabled these assets to be acquired on the other.
This is the basis of the Accounting equation which is:
Assets = Equity + Liability
One one side of the (SFP), you have the assets shown. These assets are added up to find the Net Total Assets.
The other side of the (SFP) will have the Equity and the liabilities listed. These are then added up too and they are to be equivalent to the amount of Assets.
This would therefore prove the equation that when you add up Equity and Liabilities, you get Assets.
Sunland Company uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2020 was $277000. The balance in the same account at the end of 2021 is $419000. Sunland’s Cost of Goods Sold account has a balance of $2110000 from sales transactions recorded during the year. What amount should Sunland report as Cost of Goods Sold in the 2021 income statement?
Answer:
$2,252,000
Explanation:
Calculation to determine what amount should Sunland report as Cost of Goods Sold in the 2021 income statement
Using this formula
2021 income statement Cost of Goods Sold =Cost of Goods Sold account+(2021 LIFO Reserve account ending balance-2020 LIFO Reserve account ending balance)
Let Plug in the formula
2021 income statement Cost of Goods Sold =$2110000+($419000-$277000)
2021 income statement Cost of Goods Sold =$2110000+$142,000
2021 income statement Cost of Goods Sold =$2,252,000
Therefore The amount that Sunland should report as Cost of Goods Sold in the 2021 income statement is $2,252,000
Write a professional 1 page memo that responds to this problem.
Jack Jones is an employee who performs below expected levels. You hired Jack because he was highly qualified for the job, and he used to be an excellent worker. He has a personality that fits well in your company, and you want to keep him. Lately, Jack has been regularly late to work, misses work often, and spends a lot of time away from his desk when he is at work. As the department manager, you are in charge of communicating the news to Jack as well as providing him a feasible plan for improving his work performance.
Solution :
Memo
From : Department Manager
Date : 01 May 2021
Subject : Improvement of Performance
This is to inform you that I have lately noticed that you have not able to meet the goal for the last 6 months and your average is average. I see that you are an excellent worker and have doing good but lately your performance level is not up to the mark. Also you are not punctual at your job which may hamper your appraisal or your incentives.
So going forward, I would like to ask you to be regular to work and work effectively for your overall growth. I would suggest you to be on time at work at complete your daily task for the day to achieve your targets. Your can also seta goal for the day so that your targets are achieved.
You are a true asset to the organization and we believed that your efforts will help you to grow and learn more.
I have attached a file which shows your performance for the last 6 months and also a feedback on how to improve.
Revert if there is any query.
Best Regards
Department Manager