Answer:
Actual price= $1.6 per unit
Actual price= $3.2 per set
Explanation:
To calculate the actual price, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
400= (1.8 - actual price)*2,000
400= 3,600 - 2,000actual price
2,000actual price = 3,200
actual price= $1.6 per unit
The management of Penfold Corporation is considering the purchase of a machine that would cost $270,000, would last for 5 years, and would have no salvage value. The machine would reduce labor and other costs by $60,000 per year. The company requires a minimum pretax return of 12% on all investment projects. The net present value of the proposed project is closest to:______.
a. $(11,700).
b. $(53,700).
c. $(269,997).
d. $(113,700).
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Initial investment= $270,000
Cash flow= $60,000
Number of years= 5
Discount rate= 12%
To calculate the net present value (NPV), we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
∑[Cf/(1+i)^n]:
Cf1= 60,000/1.12= 53,571.43
Cf2= 60,000/1.12^2= 47,831.63
.....
Cf5= 60,000/1.12^5= 34,045.61
∑[Cf/(1+i)^n]= 216,286.57
Now, the NPV:
NPV= -270,000 + 216,286.57
NPV= -53,713.43
Absorption and Variable Costing Comparisons: Production Equals Sales Assume that Smuckers manufactures and sells 30,000 cases of peanut butter each quarter.
The following data are available for the third quarter of 2017.
Total fixed manufacturing overhead.......................................................90,000
Fixed selling and administrative expenses........... .. . .. . .. . . . . .. . . . . . 20,000
Sale price per case..................................................................................32
Direct materials per case .......................................................................15
Direct labor per case ........................................................................6
Variable manufacturing overhead per case ..........................................3
a. Compute the cost per case under both absorption costing and variable costing.
b. Reconcile any differences in income. Explain.
c. Compute te net income under both absorption costing and variable costing.
Answer:
a. Cost per case under Absorption costing:
= Direct materials per case + Direct labor per case + Variable manufacturing overhead per case + Fixed manufacturing overhead per case
= 15 + 6 + 3 + 90,000/ 30,000 cases
= $27
Cost per case under Variable costing:
= Direct materials per case + Direct labor per case + Variable manufacturing overhead per case
= 15 + 6 + 3
= $24
b. First we need to calculate income under both methods:
Under Absorption costing:
= Sales - Cost of goods sold - Selling and Admin expenses
= (30,000 cases * 32) - (30,000 * 27) - 20,000
= $130,000
Under Variable Costing:
= Sales - Cost of Goods sold - Fixed manufacturing overhead - Selling and Admin expenses
= (30,000 * 32) - (30,000 * 24) - 90,000 - 20,000
= $130,000
There is no difference in income because the cases manufactured equals the cases sold.
A company had total liabilities of $275,000 and the owner’s equity was $1,722,000. According to the fundamental accounting equation, total assets must be:
Answer:
1,997,000
Explanation:
Assets = Liabilities + Owners Equity
Assets=275,0000 + 1,722,000
Assets = 1,997,000
Minors are liable for the reasonable value of the necessary:______.
a. actually furnished.
b. that they agreed to purchase.
c. that their parents agreed to pay for.
d. all of these.
Answer:
b. that they agreed to purchase.
Explanation:
A minor is a person who is under the age of 18 and unable to make decision on his own such as mentally impaired or incompetent persons .
A minor cannot enter a contract like adults but if under any circumstance they enter into a contract of sale purchase of daily goods like clothing etc, they are liable to pay the price which they agreed to pay.
Their parents are liable only if the contract was made according to the parent's will etc.
If the minor is unable to pay the agreed amount then the minor should return the goods or fulfill any other liability as imposed by the court of law.
During 2019, Coronado Industries expected Job No. 26 to cost $300000 of overhead, $500000 of materials, and $200000 in labor. Coronado applied overhead based on direct labor cost. Actual production required an overhead cost of $370000, $610000 in materials used, and $260000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?
Answer:
See below
Explanation:
Given the above information, first we will compute the predetermined overhead rate
Predetermined overhead rate
= Estimated manufacturing overhead / Estimated labor
= $300,000/$200,000
= 1.5
The next step is to apply the
= [(1.5 × $260,000) + $260,000 + $610,000]
= $390,000 + $260,000 + $610,000
= $1,260,000
A company had credit sales of $46,000 and cash sales of $18,000 during the month of May. Also during May, the company paid wages of $16,000 and utilities of $5800. It also received payments from customers on account totaling $15,800. At the beginning of May, the company had a cash balance of $25,000. What is the company's cash balance at the end of May
Answer:
the cash balance at the end of May is $37,000
Explanation:
The computation of the cash balance at the end of May is shown below:
= Opening cash balance + cash sales + received payment - paid wages - utilities
= $25,000 + $18,000 + $15,800 - $16,000 - $5,800
= $37,000
Hence, the cash balance at the end of May is $37,000
We simply applied the above formula to determine the cash balance at the end of May
Boenisch Corporation produces and sells a single product with the following characteristics: The company is currently selling 8,000 units per month. Fixed expenses are $406,000 per month. Management is considering using a new component that would increase the unit variable cost by $3. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change
Answer: Increase by $2,000
Explanation:
Current net operating income is:
= Contribution margin - Fixed costs
= (68 * 8,000) - 406,000
= $138,000
If component is added, Variable cost increases by $3 to $105. New contribution margin is:
= 170 - 105
= $65
Units sold increases by 400 to 8,400.
Net operating income becomes:
= (65 * 8,400) - 406,000
= $140,000
Net operating income increased by:
= 140,000 - 138,000
= $2,000
Which facilities or amenities are most commonly available on a cruise chip?
Answer:
Generally, all cruise ship amenities have dining, entertainment, shopping or sporting facilities. There are bars and lounges as well, with some ships providing casinos and other adult-themed entertainment facilities.
Explanation:
A trial balance before adjustment included the following:
Debit Credit
Accounts receivable $133,000
Allowance for doubtful accounts $1,080
Sales 471,000
Sales returns and allowances 5,200
Required:
Prepare journal entries assuming that the estimate of uncollectible is determined by taking (1) 4% of gross accounts receivable.
The likelihood that a decision maker will ever receive a payoff precisely equal to the EMV when making any one decision is: a. Low (near 0%) b. High (near 100%) c. Dependent on the number of alternatives d. Dependent upon the number of states of nature 3 points
Answer: low (near 0%)
Explanation:
The expected monetary value(EMV) simply refers to the amount of money that an economic agent can expect to make based on a particular decision that's made.
It should be noted that the likelihood that a decision maker will be able to receive a payoff that is exactly as thesame as the EMV when a decision is being made will be near to zero as it's very low that it'll happen.
Behavioral finance is the study of:_________.
a. how investors react to accounting-based profit fluctuations.
b. how investors react to interest rates and foreign currency fluctuations.
c. how investors react to certain ways to diversify a portfolio.
d. how investors react to the amount of risk versus the amount of return in securities.
Answer:
D). how investors react to the amount of risk versus the amount of return in securities.
Explanation:
Behavioral finance can be regarded as study involving influence of psychology on investors behavior as well as financial analysts. encompass effects that comes after this on the markets. It explains that investors cannot always described as rational. It should be noted that the Behavioral finance is the study of how investors react to the amount of risk versus the amount of return in securities.
Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 825,000 $ 550,000 $ 275,000 Variable expenses 495,000 385,000 110,000 Contribution margin 330,000 165,000 165,000 Traceable fixed expenses 156,000 78,000 78,000 Segment margin 174,000 $ 87,000 $ 87,000 Common fixed expenses 69,000 Net operating income $ 105,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.)
Answer:
Piedmont Company
1. Companywide break-even point in dollar sales
= $562,500
2. Break-even point in dollar sales for the North region
= $260,000
3. Break-even point in dollar sales for the South region
= $130,000
Explanation:
a) Data and Calculations:
Contribution format segmented income statement:
Total Company North South
Sales $ 825,000 $ 550,000 $ 275,000
Variable expenses 495,000 385,000 110,000
Contribution margin 330,000 165,000 165,000
Traceable fixed expenses 156,000 78,000 78,000
Segment margin 174,000 $ 87,000 $ 87,000
Common fixed expenses 69,000
Net operating income $ 105,000
Contribution margin ratio = Contribution margin/Sales
= $330,000/$825,00 = 0.40
For the north = $165,000/$550,000 = 0.30
For the south = $165,000/$275,000 = 0.60
Break-even point in dollar sales = Fixed cost/Contribution margin ratio
Companywide break-even point in dollar sales = $225,000/0.40
= $562,500
Break-even point in dollar sales for the North region = $78,000/0.30
= $260,000
Break-even point in dollar sales for the South region = $78,000/0.60
= $130,000
You are the manager of a local bank. Due to unstable financial conditions, savers are worried that your bank may fail. When they show up in large numbers to withdraw their savings, you find that you do not have enough cash to meet the obligations. Where can you turn for a loan if no other bank will lend to you? The stock market The bond markets The discount window The market for overnight loans
Answer:
The discount window
Explanation:
As we can see that there is a liquidity problem for the bank as it has not enough funds to payoff back to the depositors. Also No other bank is ready to lend.
The discount window would be the monetary policy instrument that controlled by the central bank in which it permits the institutions that they are eligible for borrow the money so that they could meet their shortage and this money would be lend for short term duration by the central bank
Therefore it is a discount window
On April 1, Dallow, Inc. factored $160,000 of its accounts receivable without recourse. The factor retained 10% of the accounts receivable as an allowance for sales returns and charged a 5% commission on the gross amount of the factored receivables. What amount of cash did Dallow receive from the factored receivables
Answer:
$136,000
Explanation:
According to the scenario, computation of the given data are as follows,
Amount receivable = $160,000
Allowance for sales return = 10% × $160,000 = $16,000
Commission = 5% × $160,000 = $8,000
So, amount of cash from factored receivables can be calculated by using following formula,
Cash from factored receivables = Amount receivable - Allowance for sales return - Commission
= $160,000 - $16,000 - $8,000
= $136,000
Robert Company, which allocates overhead to production on the basis of machine hours, reported the following data for the period just ended:
Actual units produced: 12,000
Actual variable overhead incurred: $77,770
Actual machine hours worked: 18,800
Standard variable overhead cost per machine hour: $4.50
Robert estimates that it takes 1.5 hours to manufacture a completed unit.
Required:
Compute all standards & variances. Prepare all journal entries using standard costing.
Answer:
Variable overhead rate variance = Actual Variable overhead incurred - Actual Hours of Input, at Standard Rate
Variable overhead rate variance = ($4.5*18800 - $77,700)
Variable overhead rate variance = $6,900 Favorable
Variable overhead efficiency variance = Actual Hours of Input, at Standard Rate - Standard Hours allowed for Actual Output at Standard Rate
Variable overhead efficiency variance = (12000*1.5 - $18,800)*$4.5 =
Variable overhead efficiency variance = $3,600 Unfavorable
Variable overhead cost variance = Actual Variable overhead incurred - Standard Hours allowed for Actual Output at Standard Rate
Variable overhead cost variance = (12000*1.5*$4.5) - $77,700
Variable overhead cost variance = $3,300 Favorable
As a policy option for regulating natural monopoly, average (total) cost pricing is attractive because Select one: a. the resulting output exceeds that which would occur in a perfectly competitive industry. b. the losses that occur are a sign that consumers are not harmed by the firm's exercise of market power. c. it ensures productive efficiency. d. the regulated firm will always break even.
Answer: c. it ensures productive efficiency.
Explanation:
The average cost pricing is used by the government in order to control the price that may be charged by the monopolist.
With the average cost pricing, monopolists are forced to reduce the price that twhy charge for a product to a point whereby the average total cost of the firm and the market demand curve will intersect.
This is vital as it brings about productive efficiency, increase production and also the reduction in the price of a good.
Therefore, the correct option is C "it ensures productive efficiency".
last year, cayman corporation had sales of $26 million, total variable costs of $15 million, and total fixed costs of $5,000,000. in addition, they paid $4 million in interest to bondholders. cayman has a marginal tax rate of 21 percent. if cayman's sales increase by 15%, what should be the increase in operating income
Answer:
Cayman Corporation
The increase in operating income is 27.5% (or $1.65 million).
Explanation:
a) Data and Calculations:
Sales last year = $26 million
Total variable costs 15 million
Contribution margin $11 million
Fixed costs 5 million
Operating income $6 million
Bondholders' interest 4 million
Income before tax $2 million
Income taxes (21%) 0.42 million
Net income $1.58 million
Last Year Increase by 15%
Sales revenue = $26 million $29.9 million
Total variable costs 15 million 17.25 million
Contribution margin $11 million $12.65 million
Fixed costs 5 million 5.0 million
Operating income $6 million $7.65 million $1.65 m or 0.275
Bondholders' interest 4 million 4.0 million
Income before tax $2 million 3.65 million
Income taxes (21%) 0.42 million 0.7665 million
Net income $1.58 million 2.8835 million = 82.5%
Fabrick Company's quality cost report is to be based on the following data: Lost sales due to poor quality $ 78,000 Quality data gathering, analysis, and reporting $ 23,000 Net cost of spoilage $ 88,000 Re-entering data because of keying errors $ 98,000 Test and inspection of in-process goods $ 24,000 Final product testing and inspection $ 78,000 Statistical process control activities $ 49,000 Returns arising from quality problems $ 16,000 Downtime caused by quality problems $ 26,000 What would be the total appraisal cost appearing on the quality cost report
Answer:
$102,000
Explanation:
Calculation to determine What would be the total appraisal cost appearing on the quality cost report
Using this formula
Total appraisal cost=Test and inspection of in-process goods + Final product testing and inspection
Let plug in the formula
Total appraisal cost=$ 24,000+$78,000
Total appraisal cost=$102,000
Therefore What would be the total appraisal cost appearing on the quality cost report is $102,000
Jonathan has a debt of $3,000 that needs to be repaid with 3 annual equal principal repayments with interest on the outstanding balance. The debt has an annual effective interest rate of 8%. In order to match his payment obligations exactly, Jonathan decides to purchase the following zero coupon bonds. Time to Maturity Par Value 1 year $1,000 2 years $ 800 3 years $ 900 Calculate the number of units of the 3-year bond Jonathan should buy, assuming fractional purchase is possible
Answer:
Jonathan
The number of units of the 3-year bond that Jonathan should buy is:
3.88 or 3 and 22/25 bonds.
Explanation:
a) Data and Calculations:
Present value of debt = $3,000
Annual effective interest rate = 8%
Total future value of the debt with interest = $3,492.30
Equal annual repayment of the debt = $1,164.10 ($3,492.30/3)
Number of 3-year bond that Jonathan should buy = $3,492.30/$900 = 3.88 or 3 and 22/25 bonds
Time to Maturity Par Value
1 year $1,000
2 years $ 800
3 years $ 900
From an online calculator, the total amount to be paid with interest is $3,492.30:
N (# of periods) 3
I/Y (Interest per year) 8
PV (Present Value) 3000
FV (Future Value) 0
Results
PMT = $1,164.10
Sum of all periodic payments $3,492.30
Total Interest $492.30
Answer:
1.2
Explanation:
Given that we are making 3 Equal Principle Payments on a loan of $3000, the principle that we will repay each year will be [tex]\frac{3000}{3} = $1000[/tex].
First Year:
The interest that we will need to repay during the first year will be 3000*.08 which will be $240 dollars of interest, so we will be paying a total of 1000 + 240, or $1240 for the first year reducing the amount due to $2000.
Second Year:
The interest that we will need to repay during the second year will be 2000*.08 which will be $160 of interest, so we will be paying a total of 1000 + 160, or $1160 which will reduce the amount due $1000.
Third Year:
This is the year that we care for. We have a total interest amount of $80, so we will be paying a total of $1080 for the third year.
Given that the par value of the Zero Coupon bond for the third year is $900, we will need [tex]\frac{1080}{900} = 1.2[/tex] coupons for the final year, giving us our answer of 1.2 3-year bonds that Jonathan should buy.
Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs are $54,000, and variable costs are $29 per unit. The present selling price is $42 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 18,000 units of the product at $32 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co.
Required:
a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order.
b. Briefly explain the reason why accepting this additional business will increase operating income.
c. What is the minimum price per unit that would produce a positive contribution margin?
Answer:
18000*2
Explanation:
After graduating from UCF, you plan to purchase a small condominium for $100,000. You will be required by the bank to put a down payment of 10% of the purchase price. You plan to finance the loan for 30 years. Assume monthly payments and a nominal rate (monthly compounding) of 3%. What percentage of the first 25 payments goes toward paying principal
Answer:
Percentage of the first 25 payments goes toward paying principal is 41.95%.
Explanation:
Note: See the attached excel file for the amortization schedule for the first 25 months.
In the attached excel file, the monthly is calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = Present value or the balance to pay = Cost * (100% - Percentage of down payment) = $100,000 * (100% - 10%) = $90,000
P = Monthly payment = ?
r = Monthly interest rate = Nominal rate / 12 = 3% / 12 = 0.25%, or 0.0025
n = number of months to repay = 30 years * 12 months = 360
Substitute the values into equation (1) and solve for P, we have:
$90,000 = P * ((1 - (1 / (1 + 0.0025))^360) / 0.0025)
$90,000 = P * 237.189381504283
P = $90,000 / 237.189381504283
P = $379.44
From the attached excel file, we have:
Total payment for the first 25 months = $9,486.09
Total repayment of principal for the first 25 months = $3,979.17
Therefore, we have:
Percentage of the first 25 payments goes toward paying principal = (Total repayment of principal for the first 25 months / Total payment for the first 25 months) * 100 = ($3,979.17 / $9,486.09) * 100 = 41.95%
Fleming Company provided the following information on selected transactions during 2021: Dividends paid to preferred stockholders $ 500,000 Loans made to affiliated corporations 1,400,000 Proceeds from issuing bonds 1,600,000 Proceeds from issuing preferred stock 2,100,000 Proceeds from sale of equipment 800,000 Purchases of inventories 2,400,000 Purchase of land by issuing bonds 600,000 Purchases of treasury stock 1,200,000 The net cash provided (used) by financing activities during 2021 is
Answer:
$2,000,000
Explanation:
Calculation to determine what The net cash provided (used) by financing activities during 2021 is
Using this formula
Net cash provided (used) by financing activities=(Dividends paid to preferred stockholders)+Proceeds from issuing bonds+Proceeds from issuing preferred stock+(Purchases of treasury stock )
Let plug in the formula
Net cash provided (used) by financing activities=($ 500,000) +$1,600,000 + $2,100,000 + ($1,200,000)
Net cash provided (used) by financing activities=$2,000,000
Therefore The net cash provided (used) by financing activities during 2021 is $2,000,000
Tamarisk, Inc. purchased a delivery truck for $29,200 on January 1, 2020. The truck has an expected salvage value of $2,200, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 16,100 in 2020 and 12,800 in 2021.
1. Calculate depreciation expense per mile under units-of-activity method.
2. Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double- declining-balance method.
3. Prepare the journal entry to record 2020 depreciation.
4. Assume that Marigold uses the straight-line method. Show how the truck would be reported in the December 31, 2020, balance sheet.
Answer:
1. Depreciation expense per mile = $0.27 per mile
2-1. The straight-line method
We have:
Depreciation expense for 2020 = $3,375
Depreciation expense for 2021 = $3,375
2-2. Units-of-activity method
We have:
Depreciation expense for 2020 = $4,347
Depreciation expense for 2021 = $3,456
2-3. The double-declining-balance method
We have:
Depreciation expense for 2020 = $7,300
Depreciation expense for 2021 = $5,475
3. See the journal entries below.
4. Net book value = $25,825
Explanation:
1. Calculate depreciation expense per mile under units-of-activity method.
Depreciation expense per mile = (Purchase price delivery truck - Expected salvage value) / Expected driven miles = ($29,200 - $2,200) / 100,000 = $0.27 per mile
2. Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double- declining-balance method.
2-1. The straight-line method
Annual depreciation expense = (Purchase price of the delivery truck - Expected salvage value) / Estimated useful life = ($29,200 - $2,200) / 8 = $3,375
Therefore, we have:
Depreciation expense for 2020 = Annual depreciation expense = $3,375
Depreciation expense for 2021 = Annual depreciation expense = $3,375
2-2. Units-of-activity method
Depreciable amount = Purchase price of the delivery truck - Expected salvage value = $29,200 - $2,200 = $27,000
Therefore, we have:
Depreciation expense for 2020 = Depreciable amount * (Actual miles driven in 2020 / Expected driven miles) = $27,000 * (16,100 / 100,000) = $4,347
Depreciation expense for 2021 = Depreciable amount * (Actual miles driven in 2021 / Expected driven miles) = $27,000 * (12,800 / 100,000) = $3,456
2-3. The double-declining-balance method
Straight-line method depreciation rate = 1 / Estimated useful life = 1 / 8 = 0.1250, or 12.50%
Double-declining-balance method depreciation rate = Straight-line method depreciation rate * 2 = 12.50% * 2 = 25%
Therefore, we have:
Depreciation expense for 2020 = Purchase price of the delivery truck * Double-declining-balance method depreciation rate = $29,200 * 25% = $7,300
Depreciation expense for 2021 = (Purchase price of the delivery truck - Depreciation expense for 2020) * Double-declining-balance method depreciation rate = ($29,200 - $7,300) * 25% = $5,475
3. Prepare the journal entry to record 2020 depreciation.
3-1. The straight-line method
Date Particulars Debit ($) Credit ($)
2020 Depreciation expense 3,375
Accumulated dep. – Delivery truck 3,375
(To record 2020 depreciation expense.)
3-2. Units-of-activity method
Date Particulars Debit ($) Credit ($)
2020 Depreciation expense 4,347
Accumulated dep. – Delivery truck 4,347
(To record 2020 depreciation expense.)
3-3. The double-declining-balance method
Date Particulars Debit ($) Credit ($)
2020 Depreciation expense 7,300
Accumulated dep. – Delivery truck 7,300
(To record 2020 depreciation expense.)
4. Assume that Marigold uses the straight-line method. Show how the truck would be reported in the December 31, 2020, balance sheet.
Tamarisk, Inc.
Balance sheet (Partial)
As at the Year Ended December 31, 2020
Details $
Fixed Assets
Delivery truck 29,200
Accumulated depreciation (3,375)
Net book value 25,825
When the sales department needs to hire more staff, the corporate skills inventory system was used to determine if any current employees had the skills needed for the new position. This is an example of :________. .
Answer: Internal recruiting
Explanation:
Internal recruiting is when an organization fills its vacancies from its existing workforce.
In this case, rather than looking for applicants to the position outside the company, the company fills the available position with some of its staff. On the other hand, external recruitment is when the position is filled by outsiders.
Pizza ltd. leased equipment from Tasty Company under a four-year lease requiring equal annual payments of sh.86, 038, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no residual value. If Pizza ltd.’s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Pizza ltd.) is 8%, what is the amount recorded for the leased asset at the lease inception?
Answer:
Sh. 300,001.60
Explanation:
Note: Missing word has been attached
Particulars Amount
Annual payments 86,038
x PV Annuity due 8%, 10 periods 3.48685
Amount recorded for the leased asset 300,001.60
A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are in control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results.
Machine 1 Measirement 17 15 15 17
Machine 2 Measurement 16 25 18 25
Machine 3 Measurement 23 24 23 22
What are the Mean chart three-sigma upper and lower control limits?
a. 22 and 18
b. 23.16 and 16.84
c. 22.29 and 16.71
d. 23.5 and 16.5
e. 24 and 16
Answer:
b. 23.16 and 16.84
Explanation:
Mean (X-bar) = Sum of observations / No of observations
Range (R) = Highest observation - Lowest observation
Machine 1
Mean (X-bar) = (17 + 15 + 15 + 17) / 4
Mean (X-bar) = 16
Range (R) = (17 - 15)
Range (R) = 2
Machine 2
Mean (X-bar) = (16 + 25 + 18 + 25) / 4
Mean (X-bar) = 21
Range (R) = (25 - 16)
Range (R) = 9
Machine 3
Mean (X-bar) = (23 + 24 + 23 + 22) / 4
Mean (X-bar) = 23
Range (R) = (24 - 22)
Range (R) = 2
Mean of means (X-double bar) = Sum of X-bar / Number of samples = (16 + 21 + 23) / 3 = 20
Mean of ranges (R-bar) = Sum of R / Number of samples = (2 + 9 + 2) / 3 = 4.33
From table of constants for calculating the 3-sigma upper and lower control limits, For n = 4, A2 = 0.729
UCL = X-double bar + (A2 x R-bar)
UCL = 20 + (0.729 x 4.33)
UCL = 23.1566
UCL = 23.16
LCL = X-double bar - (A2 x R-bar)
LCL = 20 - (0.729 x 4.33)
LCL = 16.8434
LCL = 16.84
1. Cullumber Cosmetics acquired 13% of the 301,200 shares of common stock of Elite Fashion at a total cost of $14 per share on March 18, 2020. On June 30, Elite declared and paid a $70,100 dividend. On December 31, Elite reported net income of $226,500 for the year. At December 31, the market price of Elite Fashion was $15 per share.
2. Bramble Inc. obtained significant influence over Kasey Corporation by buying 25% of Kasey’s 32,700 outstanding shares of common stock at a total cost of $10 per share on January 1, 2019. On June 15, Kasey declared and paid a cash dividend of $31,600. On December 31, Kasey reported a net income of $116,000 for the year.
Required:
Prepare all the necessary journal entries for 2019 for Cullumber Cosmetics.
Answer:
1. 18-Mar
Dr Available for Sale Securities $548,184
Cr Cash $548,184
30-Jun
Dr Cash $9,113
Cr Dividend Revenue $9,113
31-Dec
Dr Securities Fair Value Adjustment $39,156
Cr Unrealized Holding Gain $39,156
2.1-Jan
Dr Investmeht in Nadal Corp. $81,750
Cr Cash $81,750
15-Jun
Dr Cash $7,900
Cr Investment in Nadal Corp. $7,900
31-Dec
Dr Investment in Nadal $29,000
Cr Revenue from Investment in Sub $29,000
Explanation:
1.Preparation of all the necessary journal entries for 2019
18-Mar
Dr Available for Sale Securities $548,184
Cr Cash $548,184
(13%*301,200*$14)
(To purchase 10% of Ramirez Fashion)
30-Jun
Dr Cash $9,113
Cr Dividend Revenue $9,113
(13%$70,100)
(To record a 13% dividend revenue $70,100)
31-Dec
Dr Securities Fair Value Adjustment $39,156
Cr Unrealized Holding Gain $39,156
[($15-$14)*13%*301,200]
(To adjust securities to FMV in an Equity account)
2.1-Jan
Dr Investmeht in Nadal Corp. $81,750
Cr Cash $81,750
(25%*32,700*$10)
(To purchase 25% of Nadal Corp.)
15-Jun
Dr Cash $7,900
Cr Investment in Nadal Corp. $7,900
(25%$31,600)
(To record cash dividend of $31,600)
31-Dec
Dr Investment in Nadal $29,000
Cr Revenue from Investment in Sub $29,000
(25%*$116,000)
(To record 25% revenue of $116,000 from Nada)
A company issues the following bonds on June 1, 2002. Series A (counts as two) Series B $50 million BBB June 1, 2030 June 1, 2008 100 Par Value Rating Maturity Call date Call price $50 million BBB June 1, 2030 Non-callable -- If both bonds have the same market liquidity, the yield-to-maturity on the Series A bond should be [ ] than yield-to-maturity on Series B bond. a) higher b) lower c) the same d) either higher or lower(depending notherfactors)
Answer: a. Higher
Explanation:
Series A is a callable bond which means that the company will be able to buy it back after a certain period of time at a price dictated in the contract.
This provision is an advantage to the Issuer but not the investors so the Issuer will have to pay the investors more to get them to buy the bond even with the presence of this provision.
This additional payment will come in the form of a higher yield. This is why callable bonds have higher yields than non-callable comparable bonds.
Which of the following is incorrect?
a. Future value means earning interest on interest.
b. External equity and dividends can be used as plug variables in a financial plan.
c. A financial plug variable is the designated source of external financing needed to deal with any shortfall or surplus in financing and thereby bring the balance sheet into balance.
d. There are two primary mechanisms for electing directors: cumulative voting and straight voting.
e. The rate required in the market on a bond is the yield to maturity.
Answer:
b. External equity and dividends can be used as plug variables in a financial plan.
Explanation:
When the external equity and dividend is applied like the plus variables in the financial plan so as a plug variable it represent the external financing source i.e. dividend that required to deal with any deficit or surplus in the financing and the external equity is not a source of the external financing
Therefore the option b is considered
Yahir wants to become an Actor. What are the most helpful examples of milestones for this goal? Check all that apply.
taking an acting class
running a race
taking a science class
learning how to cook
participating in a school play
auditioning for a part in a television show
The helpful examples of milestones for becoming an actor includes:
taking an acting classparticipating in a school play auditioning for a part in a television showWho is an actor?An actor means someone who profession is based on acting on the stage, films, television etc.
The helpful examples of milestones for becoming an actor includes taking an acting class, participating in a school play and auditioning for a part in a television show.
Therefore, the Option A, E and F is correct.
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