Answer:
B. Money Managers is grossly under billed for the job, while other jobs will be unfairly over billed
Explanation:
The single overhead rate would be $ 0.07 per page
Overhead Rate = $ 840,000/ 12 million pages = 0.07 per page.
The other rates are
design changes rate = $ 120,000/300= $ 400 per design
Inspections rate = $ 80,000/8000= $ 10 per inspection
Setups rate = $ 640,000/5000= $ 128 per setup
Money managers will be under billed for the job as the overhead rates for other costs are higher than the single overhead rate which is $ 0.07 per page.
And if other overhead rates are used other jobs will be over billed.
Using a single overhead rate for 60,000 pages for Money Managers would mean 60,000 * $ 0.07 = $ 4200
Where as if the same job is billed using other overhead rates it would cost
Money Managers $ 6860 = $ 4000 + $ 2560 + $ 300
Design = $400 * 10 = $ 4000
Setups = $ 128 * 20 = $ 2560
Inspections $ 10 * 30 = $ 300
So it is under billed and other jobs over billed.
Suppose that a perfectly competitive firm faces a market price of $7 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curve at an output level of 1 comma 400 units. If the firm produces 1 comma 400 units, its average variable costs equal $6.50 per unit, and its average fixed costs equal $0.80 per unit.
Required:
a. What is the firm's maximizing (or loss-minimizing output level?
b. What is the amount of it's economic profits (or losses) at this output level?
Answer:
1. This firm have the profit maximizing output level of 1400 units because a firm in any industry will maximize profit where MR=MC. Here MR is equal to MC at the output level of 1400. So profit maximizing level of output is 1400 units.
2. Economic profit = Total revenue - total cost.
Where, Total revenue = Quantity * price
= 1400 * 7
= $9,800
Total variable cost = AVC * quantity
= 6.50 *1400
= $9,100
Total fixed cost = AFC * quantity
= 0.80 * 1400
= $1,120
Economic profit = Total revenue - Total variable cost - Total fixed cost
Economic profit = $9,800 - $9,100 - $1,120
Economic profit = -$420
. The firm is having economic loss equal to 420.
Conclusion: This firm is facing economic loss in its output.
Which of the following is approximately the Value at Risk at 5 percent of a portfolio of $10 million of asset A, whose expected return is 10 percent and volatility is 20 percent, and $10 million of asset B, whose expected return is 16 percent and volatility is 25 percent, where the correlation between the two assets is 0.1.
A. $5.6 million
B. $10 million
C. $15 million
D. $1.25 million
E. none of the above
Answer:
A. $5.6 million
Explanation:
Value at risk is the minimum value of portfolio that is considered to lose in case of certain event or volatility. There are two assets in the given scenario and both of them have worth of $10 million. The correlation between them is 0.1 which means there is low strength relationship between the two assets. The value at risk can be found by:
($10 * 5% * 20%) + ($10 * 16% * 25%) * log 1.65
= 5.6 million
Gingrich Corporation issued $2,000,000 in bonds on January 1, 2020. The bonds have a coupon rate of 1.5% and pay interest semi-annually on July 1st and January 1st. The bonds have a 10 year term. The market rate at the issue date is 3.9%. What amount of interest expense will be recorded on July 1, 2020 (the first interest payment)
Answer:
$31,310.35
Explanation:
Face value = 2,000,000
Semiannual interest = 2,000,000 *0.015 * 6/12= 15,000
Semiannual yield = 3.9*6/12= 1.95%
Semiannual months = 10*2= 20
Issue price =[PVA 1.95%,20 * Interest] + [PVF 1.95%,20 * Face value]
Issue price = [16.43061*15,000]+ [ .67960* 2,000,000]
Issue price = 246459.10+ 1,359,200
Issue price = $1,605,659.10
The amount of interest expense to be recorded on July 1, 2020 (the first interest payment = Issued price * Semi annual yield
= $1,605,659.10 * 1.95%
=$1,605,659.10 * 1.95%
=$31,310.35
Thus, the amount of $31,310.35 will be recorded as the interest expense on July 1, 2020
Boomerang Computer Company sells computers with an unconditional right to return the computer if the customer is not satisfied. Boomerang has a long history selling these computers under this returns policy and can provide precise estimates of the amount of returns associated with each sale. Boomerang most likely should recognize revenue:
Answer:
When Boomerang delivers a computer to a customer.
Explanation:
Revenue is recognised by a business when it is earned. That is when the transaction is completed and a sale is established.
In the given scenario when a customer buys goods for Boomerang they have unconditional right to return the computer if the customer is not satisfied.
The situation where Boomerang should recognise revenue is when a computer is delivered to the customer and the sale is consummated.
If the company recognises revenue when an order is made, there is possibility of customer returning the computer. Then their revenue data will be inaccurate
Answer:
the boomerang delivers
Explanation:
The primary objective of financial accounting is to: Multiple Choice Provide information on both the costs and benefits of looking after products and services. Monitor consumer needs, tastes, and price concerns. Provide accounting information that serves external users. Know what, when, and how much product to produce. Serve the decision-making needs of internal users.
Answer:
Provide accounting information that serves external users.
Explanation:
Financial accounting is can be defined as the field of accounting involving specific processes such as recording, summarizing, analysis and reporting of financial transactions with respect to business operations over a specific period of time. Financial experts or accountant uses either the cash basis or accrual basis of accounting.
The primary objective of financial accounting is to provide accounting information that serves external users.
In Accounting, the external users of a financial accounting information includes customers, creditors, investors shareholders and government regulators.
The information that are found in a financial statement are revenues, expenses, liability, equity and assets.
Hence, financial accounting is aimed at providing information to external users, who are outside an organization.
Allowance for Doubtful Accounts has a credit balance of $2,100 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $19,700. Which of the following entries records the proper adjustment for bad debt expense?
a. debit Bad Debt Expense, $21,800; credit Allowance for Doubtful Accounts, $21,800
b. debit Allowance dfor Doubtful Accounts, $17,600; credit Bad Debt Expense, $17,600
c. debit Allowance for Doubtful Accounts, $21,800; credit Debt Expense, $21,800
d. debit Bad Debt Expense, $17,600; crdit Allowance for Doubful Accounts, $17,600
Other receivables includes all of the followoing EXCEPT:
a. taes receivable
b. interest receivable
c. receivables from employees
d. notes receivabe
Answer:
1. Analysis of accounts receivables Allowance Required $19,700
Less: Credit balance available in Allowance account $2,100
Additional allowance required $17,600
The journal entry will be as follows
DEBIT CREDIT
Bad debt expenses $17,600
Allowance for doubtful accounts $17,600
Hence, the correct option is D.
2. Other receivables include all except "Notes Receivables"
Hence, the correct option is D
In the context of a firm's statement of cash flows, ________ include the purchase, sale, or investment in fixed assets, such as real estate, equipment, and buildings.
Answer: investing activities
Explanation:
Investing activities is one of the categories of the net cash activities that is shown on a cash flow statement. It should be noted that investing activities is the buying and selling of long-term assets and every other business investments.
Investing activities include the purchase, sale, or investment in fixed assets, such as real estate, equipment, and buildings.
The Walthers Company has a semi-annual coupon bond outstanding. An increase in the market rate of interest will have which one of the following effects on this bond?
a. increase the coupon rate.
b. decrease the coupon rate.
c. increase the market price.
d. decrease the market price.
e. increase the time period.
Answer:
The answer is D.
Explanation:
An increase in the market rate of interest of a bond will decrease the market price of the bond. Market rate of interest of a bond is inversely related to the market price of the bond.
For example, A bonds is issued with a higher interest rate, the price of existing bonds will fall because the demand for this bond falls.
a company sells 600 bottles of a dietary supplement per week at$ 100 per bottle. The supplement is ordered from a supplier who charges fixed cost of $30 per order, and $ 50 per bottle. The annual inventory holding cost is 40%. Assume the company operates 50 weeks in a year. What is the optimal number of bottles company should order?
Answer:
the economic order quantity or optimal quantity = 300 bottles per order
Explanation:
economic order quantity (EOQ) = √[(2SD) / H]
S = cost per order = $30D = annual demand = 600 x 50 weeks = 30,000H = holding costs = $50 x 40% = $20EOQ = √[(2 x $30 x 30,000) / $20] = √($1,800,000 / $20) = √90,000 = 300
This means that the company must make 2 orders per week and 100 orders per year. This happens because the holding costs per unit are too high, therefore, in order to reduce costs you must have a small inventory.
An electric power plant uses solid waste for fuel in the production of electricity. the cost Y in dollars per hour to produce electricity is Y=11+0.4X+0.29X2, where X is in megawatts. Revenue in dollars per hour from the sale of electricity is 16X−0.2X2. Find the value of X that gives maximum profit. (Round to two decimal places.)
Answer:
The value of X that gives maximum profit is 15.92.
Explanation:
Before answering the question, Y and Revenue (R) given in the question are first correctly restated as follows:
Cost = Y = 11 + 0.4X + 0.29X^2 .......................................... (1)
Revenue = R = 16X − 0.2X^2 .............................................. (2)
Differentiating each of equations (1) and (2) with respect to X to obtain marginal cost (MC) and marginal revenue (MR), we have:
dY/dX = MC = 0.4 + 0.58X .................................................. (4)
dR/dX = MR = 16 - 0.4X ....................................................... (5)
In production theory, profit is maximized when MR = MC. Therefore, we equate equations (4) and (5) and solve for X as follows:
0.4 + 0.58X = 16 - 0.4X
0.58X + 0.4X = 16 - 0.4
0.98X = 15.6
X = 15.6 / 0.98
X = 15.92
Therefore, the value of X that gives maximum profit is 15.92.
During 2018, Skechers USA had Sales of $1,846.4, Gross profit of $818.8 million and Selling, General and Administration expenses of $730.7 million. What was Skechers' Cost of sales for 2018
Answer:
The answer is $1,027.6 million
Explanation:
Gross profit = Sales - Cost of Sales(cost of goods sold)
Gross profit = $818.8 million
Sales of $1,846.4 million.
To find Cost of Sales, we rearrange the formula to now be:
Sales - Gross profit
$1,846.4 million - $818.8 million
=$1,027.6 million
Therefore, Skechers' Cost of sales for 2018 is $1,027.6 million
Which of the following stages in a buying sequence will result in a specific option or set of options from which price, delivery, system compatibility, and other characteristics can be determined?
a. Determine the characteristics
b. Establish specifications
c. Search for and qualify potential suppliers
d. Request proposals
Answer:
C.
Explanation:
Since determine of characteristics has already been established the next would be to search.
At the beginning of the current fiscal year, the balance sheet of Hughey Inc. showed stockholders' equity of $523,000. During the year, liabilities increased by $28,000 to $232,000; paid-in capital increased by $37,000 to $174,000; and assets increased by $259,000. Dividends declared and paid during the year were $46,000.
Required:
Calculate net income or loss for the year.
Stockholders’ Equity
Assets = Liabilities + PIC + RE
Beginning = + + $260,000 SE
Changes 130,000 = 11,000 + 20,000 +
Ending = $116,000 + $90,000 +
Answer:
net income = $240,000
Explanation:
beginning stockholders' equity $523,000
beginning liabilities $204,000, ending liabilities $232,000 ($28,000 increase)
beginning paid in capital $137,000, ending $174,000 ($37,000 increase)
assets increased by $259,000
dividends $46,000
assets = liabilities + equity
beginning assets = $204,000 + $523,000 = $727,000
ending assets = $727,000 + $259,000 = $986,000
ending equity = ending assets - ending liabilities = $986,000 - $232,000 = $754,000
beginning equity = beginning paid in capital + retained earnings
beginning retained earnings = $523,000 - $137,000 = $386,000
ending equity = ending paid in capital + retained earnings
ending retained earnings = $754,000 - $174,000 = $580,000
ending retained earnings = beginning retained earnings + net income - dividends
$580,000 = $386,000 + net income - $46,000
net income = $580,000 + $46,000 - $386,000 = $240,000
On February 1, 2021, a company loans one of its employees $29,000 and accepts a ten-month, 8% note receivable. Calculate the amount of interest revenue the company will recognize in 2021
Answer:
Calculation of interest revenue:
Interest revenue = $29,000 x 8% x 10/12 = $1,933
Explanation:
a) Data and Calculation:
Feb. 1, 2021 Loan to employees = $29,000
Ten-month, 8% note receivable
Interest revenue = $29,000 x 8% x 10/12 = $1,933
The note is for 10 months, but the rate of interest is 8% per annum. After the rate is applied on the loan to get an interest of $2,320, this will then be multiplied by 10 and divided by 12 to get the 10 months interest revenue. These loans to employees are expected to be repaid by the end of November, 2021 with the interest.
An estate provides a perpetuity with payments of X at the end of each year. Seth, Susan, and Lori share the perpetuity such that Seth receives the payments of X for the first n years and Susan receives the payments of X for the next m years, after which Lori receives all the remaining payments of X. Which of the following represents the difference between the present value of Seth's and Susan's payments using a constant rate of interest?
a. X[an-vnam]
b. X[¨an-vn¨am]
c. X[an-vn+1am]
d. X[an-vn-1am]
e. X[van-vn+1am]
Answer: a. [tex]X[a_{n} -v^{n} a_{m} ][/tex]
Explanation:
The Present Value of the perpetuity for Seth is denoted by;
= [tex]X * a_{n}[/tex] because Seth receives it for n years.
The Present Value of the perpetuity for Susan is denoted by;
= [tex]Xv^{n} * a_{m}[/tex] because it is the value after n periods multiplied by the payments received for m periods.
The result is;
= [tex]X * a_{n}[/tex] - [tex]Xv^{n} * a_{m}[/tex]
= [tex]X[a_{n} -v^{n} a_{m} ][/tex]
The perceived demand for a monopolistic competitor
The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 9%. Management calculated a weightedminusaverage cost of capital (WACC) of 7%. Allied's corporate tax rate is 30.
Sales $700,000
Operating income $175,000
Total Assets $1,500000
Current liabilities $600,000
What is the division's Return on Investment (ROI)?
A) 25.00%.
B) 11.67%.
C) 40.00%.
D) 46.67%.
Answer:
Return n investment = 11.67%
Explanation:
Return on Investment is the proportion investment that is earned as operating income.
For the division, the return on investment would be the proportion of te investment in assets that is earned as net income.
This would be determined as follows;
Return n investment = (Net income÷ Operating assets) × 100
Return n investment = (175,000 ÷ 1,500,000) × 100= 11.67%
Return n investment = 11.67%
On July 1, Bramble Corporation purchases 670 shares of its $6 par value common stock for the treasury at a cash price of $9 per share. On September 1, it sells 420 shares of the treasury stock for cash at $14 per share.
Journalize the two treasury stock transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Answer and Explanation:
The journal entries are shown below:
On July 1
Treasury stock Dr (670 shares × $9 per share) $6,030
To Cash $6,030
(Being the purchase of treasury stock is recorded)
For recording this we debited the treasury stock as it increased the treasury and credited the cash as it decreased the assets
On Sep 1
Cash Dr (420 shares × $14 per share) $5,880
To Treasury Stock (420 shares × $9 per share) $3,780
To Additional paid in capital - Treasury stock $2,100
(Being the resale of treasury stock is recorded)
For recording this we debited the cash as it increased the assets and credited the treasury stock and additional paid in capital as the sale is made
If you put up $39,000 today in exchange for a 6.5 percent, 16-year annuity, what will the annual cash flow be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
$3,992.73
Explanation:
For computing the annual cash flow we need to apply the PMT formula i.e to be shown in the attachment below:
Given that,
Present value = $39,000
Future value or Face value = $0
RATE = 6.5%
NPER = 16 years
The formula is shown below:
= PMT(RATE;NPER;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the annual cash flow is $3,992.73
A company issues $60,000 of 6%, 5-year bonds dated January 1 that pay interest semiannually on June 30 and December 31 each year. If the issuer accepts $62,000 for the bonds, the premium on bonds payable will _________________ total interest expense recognized over the life of the bond by $ ______________.
Answer:
The premium on the bonds payable will decrease the total interest expense recognized over the life bond by $2000
Explanation:
The premium on bonds payable is the excess of cash proceeds received from the bond's issuance over the face value.
cash proceeds=$62,000
face value=$60,000
premium on bonds payable=$62,000-$60,000
premium on bonds payable=$2000
This will decrease the total interest expense recognized over the life bond by $2000
You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $50 per share. You want to establish a bullish money spread to help limit the cost of your option position. You find the following option quotes: Wildwood Corp Underlying Stock price: $50.00 Expiration Strike Call Put June 45.00 8.50 2.00 June 50.00 4.50 3.00 June 55.00 2.00 7.50 Ignoring commissions, the cost to establish the bull money spread with calls would be ________. Group of answer choices
Answer:
650
Explanation:
A call option is an option to buy a product or asset at a stated price at a later date. The risk of call option is capped at premium for buying the option. Wildwood corporation will incur cost of 650 to establish the bull money spreads with calls.
8.5 +4.5 = 13
13 * $50.00 = $650
Jenny promises National Bank that she will repay the loan that National Bank makes to Garrett if Garrett fails to pay it. In this instance, Jenny is the:
Answer: b. guarantor.
Explanation:
Guarantors who can also be called Sureties, are people who promise to pay the debt of another person if that person fails to honor the debt obligation. To be a Guarantor, you must have assets that will be able to cover the debt and you will probably have to pledge the assets to be collateral for the debt. Having a Guarantor increases the trust that the lender has in the lendee.
Jenny is a Guarantor as she has promised to repay the loan should Garrett default on it.
Swing Co. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1,000, and their current market price is $1,130.35. However, Swing Co. may call the bonds in eight years at a call price of $1,060. What are the YTM and the yield to call (YTC) on Swing Co.’s bonds?
Answer:
YTM = 7.77%
YTC = 7.62%
Explanation:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = {90 + [(1,000 - 1,130.35)/18]} / [(1,000 + 1,130.35)/2]
YTM = 82.758333 / 1,065.175 = 0.07769 = 7.77%
YTC = {coupon + [(call value - market value)/n]} / [(call value + market value)/2]
YTC = {90 + [(1,060 - 1,130.35)/8]} / [(1,000 + 1,130.35)/2]
YTC = 81.20625 / 1,065.175 = 0.07623 = 7.62%
After significant market research Dan is evaluating his business compared another local business offering a similar service. His observations tell him that the other business offers lower prices but that his own services are higher quality and result in greater customer satisfaction. What activity is Dan engaging in with his market research?
A. Qualitative analysis
B. Forecasting
C. Competitive analysis
D. Secondary research
Competitive analysis is an activity is Dan engaging in with his market research. Hence, option C is correct.
A comparative analysis contrasts the advantages and disadvantages of your business with those of your rivals' products, services, and marketing plans.
A competitive analysis is a strategy that involves looking into your primary competitors to find out more about their products, sales, and marketing plans. A competitive market study can help businesses create stronger corporate strategies, fend off competitors, and increase market share, among other benefits.
A company's competitive position can be evaluated using the SWOT analysis, which is also used to develop strategic planning. It represents advantages, dangers, opportunities, and weaknesses. The SWOT analysis analyzes both internal and external factors as well as the current condition and any predicted future events.
Thus, option C is correct.
For more information about Competitive analysis, click here:
https://brainly.com/question/14866553
#SPJ5
A consumer values a car at $30,000 and a producer values the same car at $20,000. What amount of tax will result in unconsummated transaction
The question is incomplete:
A consumer values a car at $30,000 and a producer values the same car at $20,000. If the transaction is completed at $24,000, what level of sales tax will result in unconsummated transaction?
a. 0%
b. 25%
c. 20%
d. 40%
Answer:
d. 40%
Explanation:
The unconsummated transaction would occur when the price that the customer has to pay is higher than the value that he gave to the car. According to that, the answer would be the tax that would increase the final price to more than $30,000:
0%: $24,000
25%: 24,000*1.25= $30,000
20%: 24,000*1.20= $28,800
40%: 24,000*1.40= $33,600
The answer is that the amount of tax will result in an unconsummated transaction is 40%.
Q 10.25: Admire County Bank agrees to lend Givens Brick Company $600,000 on January 1st. Givens Brick Company signs a $600,000, 8%, 9-month note. Assuming that interest has already been accrued to September 30th, what entry will Givens Brick Company make to pay off the note and interest at maturity
Answer:
Entry is given below
Explanation:
As Givens brick company is paying off the liability of note payable and the interest amount therefore, it will be debited as it is a decrease in liability. Cash will be credited as it is our asset and its decreasing.
Entry DEBIT CREDIT
Notes payable $600,000
Interest $36,000(w)
Cash $636,000
Working
Interest = $600,000 x 8% x9/12
Interest = $36,000
If the rate of inflation is 4.8 %4.8%, what nominal interest rate is necessary for you to earn a 2.2 %2.2% real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.
Answer:
Nominal rate of return= 7.11%
Explanation:
Inflation is the increase in the price level.It erodes the value of money.rise in the price of money
Nominal interest is that quoted for investment or loan transactions. It has not been been adjusted for inflation.
Real interest rate is the amount of interest in terms of the the quantity of good and services that can be purchased. It is the nominal interest rate adjusted for inflation.
The relationship between inflation, real interest and nominal interest rate is given using the Fishers Effect;
N = ( (1+R) × (1+F)) - 1
N- nominal rate, R-real rate, F- inflation
real rate - 2.2%, inflation - 4.8%
Nominal rate of return =(1.022)× (1.048) - 1 = 0.071056
Nominal rate of return = 0.071056 × 100 = 7.1056 %
Nominal rate of return= 7.11%
Spartan Corporation discovered these errors in August of Year 3: Reported Net Income for Year 1 was $20,000. Reported Net Income for Year 2 was $18,000. The correct Year 2 Net Income is:
Answer:
Net income year 2 = $21,300
Explanation:
I looked for the missing information and found this:
Year Depreciation overstated Prepaid expense omitted
1 $2,500 $2,000
2 $4,000 $2,700
If your question doesn't include the same values, just adjust the answer.
Year 2's net income = net income (year 2) + overstated depreciation (year 2) + omitted prepaid expenses (year 1) - omitted prepaid expenses (year 2) = $18,000 + $4,000 + $2,000 - $2,700 = $21,300
Orion Flour Mills purchased a new machine and made the following expenditures:
Purchase price $ 59,000
Sales tax 5,200
Shipment of machine 840
Insurance on the machine for the first year 540
Installation of machine 1,680
The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash.
Required:
Record the above expenditures for the new machine. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Orion Flour Mills
Debit Milling Machine $64,200
Credit Accounts Payable $64,200
To record the purchase of a new machine on account, terms n/30.
Debit Freight-in $840
Debit Insurance $540
Debit Machine Installation $1,680
Credit Cash Account $3,060
To record additional expenditure on the purchase.
Debit Milling Machine $2,520
Credit Freight-in $840
Credit Machine Installation $1,680
To record the cost of additional expenditure to the Milling Machine.
Explanation:
Using the journal to account for the acquisition of a new machine by Orion Flour Mills initially records the transactions after identifying the accounts involved, and the accounts to be debited and credited respectively.
The cost of the new machine includes the additional expenditure incurred for bringing it into use. The expenditure will include the shipment, sales tax, and installation costs. Insurance will be excluded as it is not incurred in order to bring the machine into use.
A contractual arrangement between a parent company and an individual or firm that allows them to operate a certain type of business under an established name and according to specific rules is called
Answer:
Franchise
Explanation:
A contractual arrangement between a parent company and an individual or firm that allows them to operate a certain type of business under an established name and according to specific rules is called franchise.
For instance, Mr Biggs could give the authority to an individual or group of people which would enable them to do the same business in another geographical location.
Hence, franchise is a license that allows individuals or group of people knowledge, processes, trademarks to provide a service.