Answer:
a. leverage skills and products associated with a firm's core competencies from one country to another.
Explanation:
Company A can still meet the demands of the local markets and the competitive pressures it is facing by utilizing its core competences and deploring its products internationally. A hybrid of localization and international strategies would be more appropriate. This hybrid approach will enable the company "to realize the full benefits from economies of scale and learning effects, without losing on location economies," as desired in the case study.
The ultimate goal of operations management is to provide high-quality goods and services instantaneously in response to customer demand. Over the years, low cost often came at the expense of quality and flexibility. Furthermore, suppliers didn't always deliver when they said they would, so manufacturers had to carry large inventories of raw materials and components to keep producing. Such inefficiencies made U.S. companies vulnerable to foreign competitors who were using more advanced production techniques As a result of new global competition, companies have had to make a wide variety of high-quality custom-designed products at a very low cost. Something had to change on the production floor to make that possible. Several major developments have made U.S.companies more competitive:
(1) computer-aided design and manufacturing
(2) flexible manufacturing,
(3) lean manufacturing, and
(4) mass customization,
(5) CAD
(6) CAM
Match the company or role with the most appropriate manufacturing technique.
Dress designer: In addition to helping in the design of products, the use of this system allows designers to work in three dimensions
Shoe designer: The manufacturer programs the computer to make a simple design change, and then that change is readily Incorporated into production
Purse designer: Software programs unite these two computer-aided support systems. While the software is expensive, it cuts as much as 80 percent of the time needed to program machines to make parts.
Motor starters: Orders come in daily and, within 24 hours, the company's machines and robots manufacture, test, and package the starters-which are untouched by human hands. This system is so efficient it can even accommodate a special order (even a single item) in the assembly without slowing down the process.
Toyota corporation: This company utilizes the strategy of using half the human effort, halving the defects in the finished product, using one-third of the normal engineering effort, using half the floor space, and carrying 90 percent less inventory
Dell computers: Dell has set up its manufacturing process so that all its computers can be quickly assembled to individual customer orders.
Answer:
1. Dress designer: In addition to helping in the design of products, the use of this system allows designers to work in three dimensions
(5) CAD
2. Shoe designer: The manufacturer programs the computer to make a simple design change, and then that change is readily Incorporated into production (6) (CAM)
3. Purse designer: Software programs unite these two computer-aided support systems. While the software is expensive, it cuts as much as 80 percent of the time needed to program machines to make parts. (1) computer-aided design and manufacturing also known as CIM(Computer integrated manufacturing)
4. Motor starters: Orders come in daily and, within 24 hours, the company's machines and robots manufacture, test, and package the starters-which are untouched by human hands. This system is so efficient it can even accommodate a special order (even a single item) in the assembly without slowing down the process. (2) flexible manufacturing
5.Toyota corporation: This company utilizes the strategy of using half the human effort, halving the defects in the finished product, using one-third of the normal engineering effort, using half the floor space, and carrying 90 percent less inventory (3) lean manufacturing
6. Dell computers: Dell has set up its manufacturing process so that all its computers can be quickly assembled to individual customer orders. (4) mass customization
Explanation:
1. Computer-aided design and manufacturing or CIM: This is the use of computer software that combines the benefits of CAM and CAD.
(2) Flexible manufacturing: This refers to the use of machines that can be easily adapted to accommodate changes in the needs of customers or the manufacturer.
(3) Lean manufacturing: is based on the principle of accomplishing a lot of tasks with little manpower and efforts.
(4) Mass customization: is the act of manufacturing products that are suited to the wants and needs of customers in large quantities.
(5) CAD: Computer-aided design is needed for the design of products.
(6) CAM: This refers to the use of computer software to control the manufacturing process.
The given role or the companies would most adequately be linked to the technique of manufacturing would be as follows:
1) computer-aided design and manufacturing - 3. Purse designer
2) Flexible manufacturing - 4. Motor starters
3) lean manufacturing, - 5. Toyota corporation
4). mass customization, - 6. Dell computers
5). CAD - 1. Dress designer
6). CAM - 2. Shoe designer
Manufacturing TechniquesManufacturing techniques are characterized as the variety of processes that have been employed to develop or generate the product.
In the given question, a number of techniques have been referred to like Mass Customization, CAM, Computer-aided manufacturing, etc.
The companies working on technically advanced domains like designing would require the aid or involvement of computers to make their manufacturing process convenient and precise.
While the Starters company or Corporations would require flexible or lean manufacturing to ensure the accomplishment of desired tasks efficiently.
Learn more about "Operations Management" here:
brainly.com/question/8055230
Slaq Computer Company manufactures notebook computers. The economic lifetime of a particular model is only four to six months, which means that Slaq has very little time to make adjustments in production capacity and supplier contracts over the production run. For a soon-to-be-introduced notebook, Slaq must negotiate a contract with a supplier of motherboards. Because supplier capacity is tight, this contract will specify the number of motherboards in advance of the start of the production run. At the time of contract negotiation, Slaq has forecasted that demand for the new notebook is normally distributed with a mean (�) of 10,000 units and a standard deviation (�) of 2,500 units. The net profit from a notebook sale is $500 (note that this includes the cost of the motherboard, as well as all other material; production, and shipping costs). (Hint: �! = $500) Motherboards cost $200 and have no salvage value (i.e., if they are not used for this particular model of notebook, they will have to be written off). (Hint: �" = $200) Use the news vendor model to compute a purchase quantity of motherboards that balances the cost of lost sales and the cost of excess material.
Answer:
11414.87205 units.
Explanation:
We have Underage cost cs to be $500
We have Overage cost Co to be $200
To get Critical fractile, we do this computation:
Cs/(Cs+Co)
500/(500+200)
500/700
0.714285714
Now the z score for this value,
normsinv(0.714285714)
= 0.565948821
To get what the question requires: mean+z-score*standard deviation
= 10000+(0.565948821*2500)
= 11414.87205 units
please note: I solved this without rounding the values.
We will have 10000+(0.57*2500)=11425 units if rounded
A man invests his savings in two accounts, one paying 6 percent and the other paying 10 percent simple interest per year. He puts twice as much in the lower-yielding account because it is less risky. His annual interest is 4202 dollars. How much did he invest at each rate?
Answer:
Amount at 6% = $38,200Amount at 10% = $19,100Explanation:
Assume x is the amount in the 10% account.
The formula to solve would be;
(2x * 6%) + x * 10% = 4,202
0.12x + 0.1x = 4,202
0.22x = 4,202
x = 4,202/0.22
x = $19,100
The amount he invested at 6% is therefore;
= 19,100 * 2
= $38,200
If the risk-free rate of return is 6%, and if a risky asset is available with a return of 9% and a standard deviation of 3%, what is the maximum rate of return you can achieve if you are willing to accept a standard deviation of 2%
Answer:
8.01%
Explanation:
If risk-free rate of return is 6%
if a risky asset is available with a return of 9%
If standard deviation of the portfolio is 2%.
Portfolio Return if S.D. is 2% = 0.33*6% + 0.67*9%
Portfolio Return = 0.33*0.06 + 0.67*0.09
Portfolio Return = 0.0198 + 0.0603
Portfolio Return = 0.0801
Portfolio Return = 8.01%
Hence, the he maximum rate of return we can achieve if we are willing to accept a standard deviation of 2% is 8.01%
For each item below, indicate whether a debit or credit applies.
a. Decrease in Notes Payable select an option
b. Increase in Dividends select an option
c. Increase in Common Stock select an option
d. Increase in Unearned Rent Revenue select an option
e. Decrease in Interest Payable select an option
f. Increase in Prepaid Insurance select an option
g. Decrease in Salaries and Wages Expense select an option
h. Decrease in Supplies select an option
i. Increase in Revenues select an option
j. Decrease in Accounts Receivable
Answer and Explanation:
The indication of each transaction is as follows
a. Note payable contains credit balance so if there is decrease so it would be shown on the debit side
b. Dividend contains debit balance so if there is an increase so it would be shown on the debit side
c. Common stock contains credit balance so if there is an increase so it would be shown on the credit side
d. Unearned rent revenue contains credit balance so if there is an increase so it would be shown on the credit side
e. Interest payable contains credit balance so if there is decrease so it would be shown on the debit side
f. Prepaid insurance contains debit balance so if there is an increase so it would be shown on the debit side
g. Expense contains debit balance so if there is an decrease so it would be shown on the credit side
h. Supplies contains debit balance so if there is an decrease so it would be shown on the credit side
i. Revenue contains credit balance so if there is an increase so it would be shown on the credit side
j. Account receivable contains debit balance so if there is an decrease so it would be shown on the credit side
Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography.
1. What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? 2. If you expanded and hired additional people to help you, might that give rise to agency problems?3. Suppose you need additional capital to expand and you sell some stock to outside investors. If you maintain enough stock to control the company, what type of agency conflict might occur?4. List three provisions in the corporate charter that affect takeovers.5. Briefly describe the use of stock options in a compensation plan. What are some potential problems with stock options as a form of compensation?6. What is block ownership? How does it affect corporate governance?7. Briefly explain how regulatory agencies and legal systems affect corporate governance.
Answer:
The solution can be defined as follows:
Explanation:
In the question, there are multiple choices that are defined, in which except the first three choices other are belong to a different topic, that's why we define only three choices.
In option 1:
There can be relationships between both the organization or managers as leaders assign making decisions with managers. This same relation could lead to conflicts between both the parties concerned. The said conflict is named an issue/confrontation agency. The confrontation between both the supervisors and employees and between owners and creditors may also exist.
There would be no dispute with both the department. Its reason for this is that organization conflict may occur unless the business owner does not hold 100% of the common stock of a corporation.
In that case, they will manage the operations of your company as the sole employee. Users will have the right to obtain all revenue earned from the company. It will keep owning 100% of a greater corporate share because you put the money in the company. There have been no external agencies that borrow. There will be no chance of every confrontation.
In option 2:
Yeah, once you recruit people to take on responsibilities or give them their proper decision-making authority, the conflict and you and your workers will occur. Disagreements may well be caused by differences of opinions or even by the sharing of profits you would have the right to receive when you operated together.
In option 3:
\Yeah, it can result in conflicts with the organization to hold shares out to buyers. Scandals among shareholders and managers and between borrowers and shareholders and between management, shareholders and debt holders may arise as a type of conflict.
Higgs Bassoon Corporation is a custom manufacturer of bassoons and other wind instruments. Its current value of operations, which is also its value of debt plus equity, is estimated to be $200 million. Higgs has $110 million face value, zero coupon debt that is due in 3 years. The risk-free rate is 5%, and the standard deviation of returns for similar companies is 60%. The owners of Higgs Bassoon view their equity investment as an option and would like to know the value of their investment.
Required:
Using the Black-Scholes Option Pricing Model, how much is the equity worth?
Answer:
123.63 million
Explanation:
From the given information:
The total value for the firm is $200 million
The face value of debt is $110 million
Maturity of debt = 3 years
Risk free rate = 5 %
Standard deviation of return = 60%
Using Black-Scholes Option Pricing Model, the equity worth is computed in an Excel file and the screenshot is show in the image attached below.
Each quarter, Craig Anderson, who owns a chain of auto repair shops, does a detailed analysis of his firm's competitors. This analysis is called ___________ analysis. Group of answer choices competitor challenger strategic participant industry
Answer:
Competitor analysis
Explanation:
In any business, an analysis of competition is very essential as it gives an understanding of your competitive posting relative to competitors, provide or generate insights into competitive strategies. Competitor analysis encompasses insights benefited to influence and develop business strategy,identify current and potential competitors. the bargaining of power of supplier, the bargaining power of customers the threat of new entrants and also the threat of substitute products and services.
On an average hourly basis, how much does Butcher Enterprises spend on wages and benefits, respectively, in dollars?
Answer:
i think his/her manager will decide that
Explanation:
Answer:
I'm sorry I just need points so I don't have to watch adds
Marconi Co. has the following information available for the current year: Net Sales $ 765,000 Bad Debt Expense 45,000 Accounts Receivable, Beginning of Year 135,000 Accounts Receivable, End of Year 70,000 Allowance For Doubtful Accounts, Beginning of Year 57,000 Allowance For Doubtful Accounts, End of Year 77,000 What was the amount of write-offs during the year?
Answer:
$25,000
Explanation:
When there is a movement in allowance for bad debt account, it is usually as a result of bad debts and bad debts already written off.
The amount of write offs during the year is computed as follows;
Amount write off = Beginning allowance for doubtful accounts + Bad debt expenses - Closing allowance for doubtful accounts
= $57,000 + $45,000 - $77,000
= $25,000
Therefore, the amount of write offs during the year is $25,000
Puffin Industries acquired all of Sunset Coast Digital's stock on January 1, 2014, for $3,500,000, $2,100,000 in excess of book value. At that time, Sunset Coast's inventory (LIFO) was overvalued by $500,000 and its plant assets (10-year life) were overvalued by $1,000,000. The remaining excess of cost over book value is attributed to undervalued identifiable intangible assets being amortized over 20 years. Sunset Coast depreciates plant assets and amortizes intangibles by the straight-line method. During 2014 and 2015, Sunset Coast reported total net income of $650,000 and paid out 50 percent in dividends. Puffin carries its investment in Sunset Coast using the complete equity method. Sunset Coast's inventory increased each year since it was acquired by Puffin, and Sunset Coast's reported net income for 2016 was $200,000, and dividends totaled 50 percent of reported income.
Required:
a. Compute Puffin's 2016 equity in net income of Sunset Coast.
b. Compute the balance in the Investment in Sunset Coast account at December 31, 2016, after all equity method entries have been booked.
c. Prepare the working paper eliminating entries needed in consolidation at December 31, 2016.
Answer:
the answer is either a b c d
Explanation:
true or false ,The first step in composing a message is to identify its purpose
155 million people were working in the US in 2016. If 42% of all people working were baby boomers, how many were working in 2016? If 15% of the baby boomers retire within 10 years, how many jobs will this represent from 2016 employment?
Answer:
65,100,100 baby boomers were working: 6.3 %
Explanation:
In 2016, 155,000,000 people were working.
42 percent were baby boomers,
The actual number of baby boomers were
= 42/100 x 155,000,000
=0.42 x 155,000,000
=65,100,100 baby boomers were working
If 15 percent of baby boomers were to retire in 10 years
The number ow retirees will
=15% of 65,100,100
=15/100 x 65,100,100
=0.15 x 65,100,100
=9, 765,015
As a percentage of the number of people working in 2016
= 9, 765,015/155,000,000 x 100
=0.0630000 x 100
=6.3 %
The following is a condensed version of the comparative balance sheets for Tamarisk Corporation for the last two years at December 31.
2020 2019
Cash $ 354,000 $ 156,000
Accounts receivable 360,000 370,000
Investments 104,000 148,000
Equipment 596,000 480,000
Accumulated Depreciation-Equipment (212,000 ) (178,000 )
Current liabilities 268,000 302,000
Common stock 320,000 320,000
Retained earnings 614,000 354,000
Additional information:
Investments were sold at a loss of $20,000; no equipment was sold; cash dividends paid were $60,000; and net income was $320,000.
Prepare a statement of cash flows for 2020 for Swifty Corporation. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer:
Cash Flow Statement
Cash flow from Operating Activities
Net Income $296,000
Adjustments
Depreciation $34,000
(212,000- 178,000)
Loss on sale of Investments $20,000
Decrease in Accounts Receivable $10,000
(370,000 - 360,000)
Decrease in Current Liabilities -$34,000
(268,000 - 302,000)
Total Adjustments $30,000
Cash from operating activities $326,000
Cash flow from Investing Activities
Purchase of Equipment -$116,000
(480,000 - 596,000)
Sale of Investment $24,000
(148,000 - 104,000 -20,000)
Cash used in investing activities -$92,000
Cash flow from Financing Activities
Issue of shares $-
Dividend Paid -$60,000
Cash from financing activities -$60,000
Net Increase in cash $ 174,000
Opening Balance of Cash $156,000
Closing Balance of Cash $330,000
At the end of fiscal year 2018, Haley Legal Services and Delicious Doughnuts reported these adapted amounts on their balance sheets (all amounts in millions except for par value per share): EEB (Click the icon to view the balance sheet data.) Assume each company issued its stock in a single transaction. Journalize each company's issuance of its stock, using its actual account titles. Explanations are not required. (Enter amounts in millions. Record debits first, then credits. Exclude explanations from any journal entries.) Begin by joumalizing the Haley Legal Services common stock issuance.
Journal EntryData Table Accounts Debit Credit Milions Haley Legal Services Common stock, $0.01 par value, 2,400 shares issued S Additional paid-in capital 24 17,500 Delicious Doughnuts:
Common stock, no par value, 66 shares issued S 294
Answer:
Journal entry by Haley Legal services
Accounts title Debit Credit
Cash ($ 24 + 17500) $17,524
Common Stock $24
Additional Paid in Capital in excess of Par - Common Stock $17,500
Journal entry for Delicioy DOUGHNUT
Accounts title Debit Credit
Cash $294
Common Stock - nopar $294
Explanation:
Journal entry by Haley Legal services
Accounts title Debit Credit
Cash ($ 24 + 17500) $17,524
Common Stock $24
Additional Paid in Capital in excess of Par - Common Stock $17,500
Journal entry for Delicioy DOUGHNUT
Accounts title Debit Credit
Cash $294
Common Stock - nopar $294
The journal entry by Haley Legal services and Journal entry by Delicioy DOUGHNUT should be shown below.
Journal entry:by Haley Legal services
Accounts title Debit Credit
Cash ($ 24 + 17500) $17,524
Common Stock $24
Additional Paid in Capital in excess of Par - Common Stock $17,500
By Delicioy DOUGHNUT
Accounts title Debit Credit
Cash $294
Common Stock - nopar $294
Learn more about journal entry here: https://brainly.com/question/24345471
Joker stock has a sustainable growth rate of 10 percent, ROE of 12 percent, and dividends per share of $1.30. If the PE ratio is 17.0, what is the value of a share of stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:value of a share of stock=$132.57
Explanation:
Sustainable growth rate = Retention ratio x ROE
= ROE X (1-Payout ratio)
10% = 12% x 1-payout ratio
10%/12%= 1-payout ratio
0.8333= 1-payout ratio
payout ratio= 1- 0.833=0.1667= 16.67%
Dividend payout ratio= dividend per share/Earnings per share
16.67%=$1.30/ earning per share
Earnings per share =1.30/ 16.67%= $7.7984
Value of a share of stock using the P/E ratio
P/E ratio= value of stock / Earning per share
17= value of stock/earning per share
value of stock= 17 x 7.7984= $132.57
At the end of each month, a company pays its employees. Payroll information below is for January, the first month of the fiscal year. Assume that none of the employees exceeds the Federal unemployment tax maximum salary of $7,000 in January. Salaries $ 1,000,000 Federal and state income taxes withheld 170,000 Federal unemployment tax rate 0.80 % State unemployment tax rate (after FUTA deduction) 5.40 % Social Security (FICA) tax rate 7.65 %
Required:
Record salaries expense and payroll tax expense for the January pay period.
Answer:
January 31, 202x, wages expense
Dr Wages expense 1,000,000
Cr Federal income taxes withheld payable 170,000
Cr FICA taxes withheld payable 76,500
Cr Cash 246,500
Taxes are generally paid the next month, that is why they are recorded as payable. This applies to both withheld taxes and payroll taxes.
January 31, 202x, payroll expense
Dr FICA taxes expense 76,500
Dr FUTA taxes expense 8,000
Dr SUTA taxes expense 54,000
Cr FICA taxes payable 76,500
Cr FUTA taxes payable 8,000
Cr SUTA taxes payable 54,000
Pilot plus Pens is deciding when to replace its old machine. The old machine’s current salvage value is $2 million. Its current book value is $1 million. If not sold, the old machine will require maintenance costs of $400,000 at the end of the year, for the next five years. Depreciation on the old machine is $200,000 per year. At the end of five years, the old machine will have salvage value of $200,000 and a book value of $0. A replacement machine costs $3 million now and requires maintenance costs of $500,000 at the end of each year during its economic life of five years. At the end of five years, the new machine will have a salvage value of $500,000. It will be fully depreciated by the straight-line method. In five years, a replacement machine will cost $3,500,000. Pilot will need to purchase this machine regardless of what the choice it makes today. The corporate tax rate is 34% and the appropriate discount rate is 12%. The company is assumed to earn sufficient revenues to generate tax shields from depreciation. Should Pilot Plus replace the old machine now or at the end of five years? no excel and financial calculator, so please show the answer by hand written and how u get to the numbers
The company should replace the machinery now as the NPV of old machine is very less as compared to new machine.
What do you mean by Salvage value?The estimated value of an item at the end of its useful life is known as salvage value.
Old machine Depreciation Cash flow PV of cash flow
0 2,200,000
1 (845,000) 112,000 (733,000) (678,704)
2 (845,000) 112,000 (733,000) (628,429)
3 (845,000) 112,000 (733,000) (581,879)
4 (845,000) 112,000 (733,000) (538,777)
5 (845,000) 112,000 120,000 (613,000) (417,197)
Total (2,844,986)
NPV (5,044,986)
[tex]Cash\ flow\ from\ depreciation = Depreciation * Tax rate[/tex]
[tex]PV\ of\ cash\ flow = Cash\ flow / (1 + i )x^{n} , \\where\ is\ 8\% \\n\ is\ no.\ of\ year.[/tex]
[tex]Capital\ gain\ tax\ on\ the\ sale\ for\ old\ machiner\y = Total\ salvage\ value\ of\ old\ machine\ - Book\ value[/tex][tex]Capital\ gain\ tax\ on\ the\ sale\ for\ old\ machinery = 2,200,000 - 1,400,000Capita\ gain\ tax\ on\ the\ sale\ for\ old\ machinery = $800,000[/tex]
[tex]Capital\ gain\ tax = 40\% * Capital\ gain\ tax\ on\ the\ sale\ for\ old\ machineryCapital\ gain\ tax = 40\% * 800,000Capital\ gain\ tax = 0.40 * 800,000Capital\ gain\ tax = $320,000[/tex]
[tex]Effective\ investment\ outlay\ = Cost\ of\ new \machinery - Actual\ cash\ inflow\ from\ sale\ of\ old\ machineryEffective\ investment\ outlay = 4,300,000 - 1,880,000Effective\ investment\ outlay = $2,420,000[/tex]
Therefore, The company should replace the machinery now as the NPV of old machine is very less as compared to new machine.
Learn more about Salvage Value, here;
https://brainly.com/question/28940728
#SPJ2
Food handlers with facial hair must
Answer:Food handlers with facial hair should also wear a beard restraint. - aprons; remove aprons when leaving prep area. Never wipe your hands on your apron. - jewelry; do not wear rings (except for a plain band), bracelets, including medical bracelets and watches.
Explanation: because hair might get on their food and they can get a complain or something else
why is entrepreneurship important to society?
Answer:
Etrepreneurship is important as it has the ability to improve standards of living and create wealth, not only for the entrepreneurs, but also for related businesses. Entrepreneurs also help drive change with innovation, where new and improved products enable new markets to be developed.
Explanation:
Hope I helped
The following transactions apply to Jova Company for Year 1, the first year of operation:
a. Issued $17,000 of common stock for cash.
b. Recognized $63,000 of service revenue earned on account.
c. Collected $56,400 from accounts receivable.
d. Paid operating expenses of $36,600.
e. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account.
The following transactions apply to Jova for Year 2:
a. Recognized $70,500 of service revenue on account.
b. Collected $64,400 from accounts receivable.
c. Determined that $860 of the accounts receivable were uncollectible and wrote them off.
d. Collected $300 of an account that had previously been written off.
e. Paid $48,100 cash for operating expenses.
f. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1 percent of sales on account.
Required:
a. Identify the type of each transaction (asset source, asset use, asset exchange, or claims exchange).
b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows.
c. Prepare closing entries and post these closing entries to the T-accounts. Prepare the postclosing trial balance.
Answer:
Year 1:
a. Issued $17,000 of common stock for cash. ⇒ ASSET SOURCE
Dr Cash 17,000
Cr Common stock 17,000
b. Recognized $63,000 of service revenue earned on account. ⇒ ASSET SOURCE
Dr Accounts receivable 63,000
Cr Service revenue 63,000
c. Collected $56,400 from accounts receivable. ⇒ ASSET EXCHANGE
Dr Cash 56,400
Cr Accounts receivable 56,400
d. Paid operating expenses of $36,600. ⇒ ASSET USE
Dr Operating expense 36,600
Cr Cash 36,600
e. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. ⇒ ASSET USE
Dr Bad debt expense 132
Cr Allowance for doubtful accounts 132
Year 2:
a. Recognized $70,500 of service revenue on account. ⇒ ASSET SOURCE
Dr Accounts receivable 70,500
Cr Service revenue 70,500
b. Collected $64,400 from accounts receivable. ⇒ ASSET EXCHANGE
Dr Cash 64,400
Cr Accounts receivable 64,400
c. Determined that $860 of the accounts receivable were uncollectible and wrote them off. ⇒ ASSET EXCHANGE
Dr Bad debt expense 860
Cr Accounts receivable 860
d. Collected $300 of an account that had previously been written off. ⇒ ASSET EXCHANGE
Dr Accounts receivable 300
Cr Bad debt expense 300
Dr Cash 300
Cr Accounts receivable 300
e. Paid $48,100 cash for operating expenses. ⇒ ASSET USE
Dr Operating expense 48,100
Cr Cash 48,100
f. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1 percent of sales on account. ⇒ ASSET USE
Dr Bad debt expense 117
Cr Allowance for doubtful accounts 117
trial balance year 1
Dr Cash 36,800
Dr Accounts receivable 6,468
Cr Common stock 17,000
Cr Service revenue 63,000
Dr Operating expense 36,600
Dr Bad debt expense 132
Income Statement
Year 1
Service revenue $63,000
Expenses:
Operating expense $36,600Bad debt expense $132 ($36,732)Net income $26,268
Balance Sheet
Year 1
Assets:
Cash $36,800
Accounts receivable $6,468
Total Assets $43,268
Equity:
Cr Common stock 17,000
Retained earnings $26,268
Total equity $43,268
Statement of changes in stockholders' equity
Year 1
Beginning balance $0
Common stock issued $17,000
Net income $26,268
Ending balance $43,268
trial balance year 2
Dr Cash 16,600
Dr Accounts receivable 5,123
Cr Service revenue 70,500
Dr Operating expense 48,100
Dr Bad debt expense 677
Income Statement
Year 2
Service revenue $70,500
Expenses:
Operating expense $48,100Bad debt expense $677 ($48,777)Net income $21,723
Statement of changes in stockholders' equity
Beginning balance:
Common stock issued $17,000
Retained earnings $26,268
Net income $21,723
Ending balance $64,991
Balance Sheet
Year 2
Assets:
Cash $53,400
Accounts receivable $11,591
Total Assets $64,991
Equity:
Cr Common stock 17,000
Retained earnings $47,991
Total equity $64,991
Statement of cash flows
Year 2
Net income $21,723
Adjustments to net income:
Increase in accounts receivable ($5,123)
Net cash from operating activities $16,600
Net cash increase $16,600
Beginning cash balance $36,800
Ending cash balance $53,400
Reporting an Income Statement, Reporting a Statement of Retained Earnings, Reporting a Balance Sheet and Recording Closing Journal Entries [LO 4-4, LO 4-5]
[The following information applies to the questions displayed below.]
The Sky Blue Corporation has the following adjusted trial balance at December 31.
Debit Credit
Cash $1,230
Accounts Receivable 2,000
Prepaid Insurance 2,300
Notes Receivable (long-term) 3,000
Equipment 12,000
Accumulated Depreciation $ 2,600
Accounts Payable 5,420
Salaries and Wages Payable 1,000
Income Taxes Payable 2,900
Deferred Revenue 600
Common Stock 2,400
Retained Earnings 1,000
Dividends 300
Sales Revenue 42,030
Rent Revenue 300
Salaries and Wages Expense 21,600
Depreciation Expense 1,300
Utilities Expense 4,220
Insurance Expense 1,400
Rent Expense 6,000
Income Tax Expense 2,900
Total $58,250 $ 58,250
M4-17
Prepare closing journal entries on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer and Explanation:
The Journal entry is shown below:-
1. Sales Revenue Dr, $42,030
Rent Revenue $300
To Salaries and Wages Expense $21,600
To Depreciation Expense $1,300
To Utilities Expense $4,220
To Insurance Expense $1,400
To Rent Expense $6,000
To Income Tax Expense $2,900
To Retained Earnings $4,910
(Being closing of revenues and expenses is recorded)
2. Retained Earnings Dr, $300
To Dividends $300
(Being closing of dividend is recorded)
Southern Rim Parts estimates its manufacturing overhead to be $418,500 and its direct labor costs to be $930,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $52,000 for Job 301, $77,000 for Job 302, and $110,000 for Job 303. For the year, actual manufacturing overhead was $464,000 and total direct labor cost was $847,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using pre-determined rates.
Required:
A. How much overhead was assigned to each of the three jobs, 301, 302, and 303?
B. What was the over- or underapplied manufacturing overhead for year 1?
Answer:
Results are below.
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 418,500/930,000
Predetermined manufacturing overhead rate= $0.45 per direct labor dollar
Now, we can allocate overhead yo Job 301, 302, 303:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Job 301= 0.45*52,000= $23,400
Job 302= 0.45*77,000= $34,650
Job 303= 0.45*110,00= $49,500
Finally, we allocate overhead for the whole company and calculate the under/over allocation:
Allocated MOH= 0.45*847,000= $381,150
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 464,000 - 381,150
Under/over applied overhead= $82,850 underallocated
Which staff member usually does the work of both a front desk clerk and an accounting clerk?
A. Controller
B. Credit manager
C. Accounts receivable clerk
D. Night auditor
Obtain estimates of daily relatives for the number of customers at a restaurant for the evening meal, given the following data.
Day Number Served Day Number Served
1 80 15 84
2 75 16 78
3 78 17 83
4 95 18 96
5 130 19 135
6 136 20 140
7 40 21 44
8 82 22 87
9 77 23 82
10 80 24 88
11 94 25 99
12 131 26 144
13 137 27 144
14 42 28 48
a. Use the centered moving average method. (Hint: Use a seven-day moving average.) (Round your intermediate calculations and final answers to 4 decimal places.) X⎯⎯⎯ 1's 2's 3's 4's 5's 6's 7's
b. Use the SA method. (Round your intermediate calculations to 3 decimals and final answers to 4 decimals.) SA Index 1's 2's 3's 4's 5's 6's 7's
Answer and Explanation:
Please find answer and explanation attached
Slamburger's sells three cheeseburgers for every three regular hamburgers. A cheeseburger sells for $4.75 with a variable cost of $2.00. A regular hamburger sells for $4.25 with a variable cost of $1.75. What is the weighted average contribution margin
Answer:
$2.63
Explanation:
The computation of the weighted average contribution margin is shown below:-
Contribution margin = Selling price - Variable costs
For cheeseburger
= $4.75 - $2.00
= $2.75
For regular hamburger
= $4.25 - $1.75
= $2.5
Weighted average Contribution margin = Respective Contribution margin × Respective mix
= ($2.75 × 3) ÷ 6 + ($2.5 × 3) ÷ 6
= $1.38 + $1.25
= $2.63
On September 1 of the current year, Scots Company experienced a flood that destroyed the company's entire inventory. Because the company had not completed its month end reporting for August, it must estimate the amount of inventory lost using the gross profit method. At the beginning of August, the company reported beginning inventory of $215,950. Inventory purchased during August was $192,730. Net sales for the month of August were $543,500. Assuming the company's typical gross profit ratio is 40%.
Required:
Estimate the amount of inventory destroyed in the flood.
Answer:
$82,580
Explanation:
We can calculate the estimated amount of inventory destroyed in the flood by deducting the cost of goods sold by the cost of goods available for sale.
DATA
Beginning Inventory = $215,950
Inventory purchased = $192,730
Sales = $543,500
Calculation
Inventory destroyed Iestimated) = Cost of Goods available for sale - Cost of Goods Sold
Inventory destroyed Iestimated) = $408,680 - $326,100
Inventory destroyed Iestimated) = $82,580
Working
Cost of Goods available for sale = Beginning Inventory + Inventory purchased
Cost of Goods available for sale = $215,950 + $192,730
Cost of Goods available for sale = $408,680
Cost of Goods Sold = Sales - Gross Profits
Cost of Goods Sold = $543,500 - ($543400 x 40%)
Cost of Goods Sold = $ 326,100
Player Corporation purchased 100 percent of Scout Company's common stock on January 1, 20X5, and paid $28,000 above book value. The full amount of the additional payment was attributed to amortizable assets with a life of eight years remaining at January 1, 20X5. During 20X5 and 20X6, Scout reported net income of $33,000 and $6,000 and paid dividends of $15,000 and $12,000, respectively. Player uses the equity method in accounting for its investment in Scout and reported a balance in its investment account of $161,000 on December 31, 20X6.Required:Compute the amount paid by Player to purchase Scout shares.
Answer:
$156,000
Explanation:
The computation of the amount paid by Player to purchase Scout shares is shown below:-
Particulars Amount
Investment Balance on Dec. 31, 2016 $161,000
Increase Account Balance during 2015
Less : Income of 2015 ($33,000)
Add : Amortized Difference
amount ($28,000 × 8 years) $3,500
Add : Dividend of 2015 $15,000 ($14,500)
Decrease Account Balance during 2016 :-
Less : Income of 2016 ($6,000)
Add : Amortized Difference Amount
($28,000 ÷ 8 years) $3,500
Add : Dividend of 2015 $12,000 $9,500
Investment Balance on Date of purchase $156,000
Alpha Industries is considering a project with an initial cost of $8.2 million. The project will produce cash inflows of $1.93 million per year for 6 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.67% and a cost of equity of 11.31%. The debt-equity ratio is 0.62 and the tax rate is 21%. What is the net present value of the project
Answer:
$347,941.73
Explanation:
First, find the Weighted Average Cost of Capital (WACC). WACC is the minimum return that a project must offer before it can be accepted. It is thus used to discount the future cash flows of a project to its Present Value.
WACC = Ke × E/V + Kd × D/V
where,
Ke = cost of equity
= 11.31%
E/V = Market Weight of Equity
= (1/1.62 × 100)
= 61.73%
Kd = After tax cost of debt
= 5.67% × ( 1 - 0.21)
= 4.48 %
D/V = Market Weight of Debt
= 0.65/1.65 × 100
= 39.40%
Therefore,
WACC = 11.31% × 0.6773 + 4.48 % × 0.3940
= 9.43 %
Next, find the net present value of the project using a financial calculator as follows :
CFj -$8,200,000
CFj $1,930,000
CFj $1,930,000
CFj $1,930,000
CFj $1,930,000
CFj $1,930,000
i/yr = 9.43 %
Shift NPV = $347,941.73
Which of the following statements about the operation of a C corporation is correct?