Answer: D. scanner-based research
Explanation:
Based on the information given in the question, since the process allows Market Street to plan ahead when ordering from suppliers and restocking the shelves, we can deduce that it's a scanner based research.
Scanner based research occurs when information are gathered about the customers through the monitoring of the thing that they purchase and their advertisement and promotion.
Yilan Company is considering adding a new product. The cost accountant has provided the following data.
Expected variable cost of manufacturing $ 50 per unit
Expected annual fixed manufacturing costs $ 92,000
The administrative vice president has provided the following estimates.
Expected sales commission $ 4 per unit
Expected annual fixed administrative costs $ 48,000
The manager has decided that any new product must at least break even in the first year.
Required:
Use the equation method and consider each requirement separately.
a. If the sales price is set at $74, how many units must Yilan sell to break even?
b. Yilan estimates that sales will probably be 10,000 units. What sales price per unit will allow the company to break even?
c. Yilan has decided to advertise the product heavily and has set the sales price at $78. If sales are 8,000 units, how much can the company spend on advertising and still break even?
Answer:
Following are the responses to the given choices:
Explanation:
In point a:
[tex]\text{Break even point} ( in \ units ) =\frac{Fixed\ cost}{contribution}[/tex]
[tex]=\frac{140000}{20}\\\\=7000 \ units[/tex]
In point b:
[tex]\text{Breakeven point selling prices = unit variable costs + unit fixed cost of 10,000 units}[/tex]
[tex]=\$ 54 +\$ 14 \\\\= \$ 68[/tex]
[tex]\text{Breakeven point selling prices = unit variable costs + unit fixed cost of 10,000 units}[/tex]
[tex]=\$54 +\$ 14\\\\=\$ 68[/tex]
Claim of work
Fixed unit costs For sale It is 4,000 units likely
[tex]\text{Units Fixed costs} = \frac{Total \ Fixed- cost}{Units \ Fixed-costs}[/tex]
[tex]= \frac{\$140,000}{10,000}\\\\=\$14[/tex]
In point C:
Sales([tex]8,000 \ units \times 78[/tex]) [tex]\$624,000[/tex]
Less : Cost of Variable ([tex]8000\times 54[/tex])[tex]\$432000[/tex]
Contribution [tex]\$192,000[/tex]
Less: Fixed cost [tex]\$140,000[/tex]
advertising balance [tex]\$52,000[/tex]
They realize there's no benefit and thus no loss at breakeven pomt.
On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $16,500. Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible
$880,000 Not yet due 1.30%
352,000 1 to 30 days past due 2.05
70,400 31 to 60 days past due 6.55
35,200 61 to 90 days past due 33.00
14,080 Over 90 days past due 69.00
Required:
a. Compute the required balance of the Allowance for Douitful Accounts at December 31 using an aging of accounts receivable.
b. Prepare the adjusting entry to record bad debts expense at December 31.
Answer:
Jarden Co.
a. The required balance of the Allowance for Doubtful Accounts at December 31, using an aging of accounts receivable is:
= $44,598.
b. Adjusting Journal Entry:
Debit Bad Debts Expense $28,098
Credit Allowance for Doubtful Accounts $28,098
To record the bad debts expense and bring the Allowance for Doubtful Accounts to a credit balance of $44,598.
Explanation:
a) Data and Calculations:
Allowance for Doubtful Accounts, credit balance = $16,500
Accounts Age of Accounts Expected Uncollectible
Receivable Receivable Uncollectible Allowance
Percent
$880,000 Not yet due 1.30% $11,440 ($880,000*1.30%)
352,000 1 to 30 days past due 2.05 7,216 ($352,000*2.05%)
70,400 31 to 60 days past due 6.55 4,611 ($70,400*6.55%)
35,200 61 to 90 days past due 33.00 11,616 ($35,200*33.00%)
14,080 Over 90 days past due 69.00 9,715 ($14,080*69%)
$1,351,680 $44,598
Adjustment:
Ending balance $44,598
Beginning balance $16,500
Bad Debts Expense $28,098
QS 7-1 Credit card sales LO C1 Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). Sold $33,000 of merchandise, which cost $25,400, on Mastercard credit cards. Mastercard charges a 5% fee. Sold $6,300 of merchandise, which cost $3,650, on an assortment of bank credit cards. These cards charge a 4% fee.
Answer:
1a. Dr Cash $31,350
Dr Cash expense $1,650
Cr sales $33,000
1b. Dr Cost of goods sold $25,400
Cr Merchandize inventory$25,400
2a. Dr Cash $6,048
Dr Cash expense $252
Cr Sales $6,300
2b. Dr Cost of goods sold $3,650
Cr Merchandize inventory$3,650
Explanation:
Preparation of the journal entries for the credit card sales transactions using the perpetual inventory system
1a. Dr Cash $31,350
($33,000-$1,650)
Dr Cash expense $1,650
($33,000 × 5% = $1,650)
Cr Sales $33,000
1b. Dr Cost of goods sold $25,400
Cr Merchandize inventory$25,400
2a. Dr Cash $6,048
(6300-252)
Dr Cash expense $252
($6,300 × 4% = $252)
Cr sales $6,300
2b. Dr Cost of goods sold $3,650
Cr Merchandize inventory$3,650
A competitive firm sells its output for $50 per unit. Assume that labor is the only input that varies for the firm. The marginal product of the 10th worker is 10 units of output per day; the marginal product of the 11th worker is 8 units of output per day. The firm pays its workers a wage of $160 per day. For the 10th worker, the value of the marginal product of labor is
Answer:
the value of the marginal product of labor is $500
Explanation:
The computation of the value of the marginal product of labor is shown below:
= MRP × price per unit
= 10 units × $50 per unit
= $500
hence, the value of the marginal product of labor is $500
We simply applied the above formula
Rebecca does not want to work in a hospital so there are no jobs that would fit her
in the Health Sciences Cluster
-True
-False
Answer:
False
Explanation:
Answer: The answer is False
Explanation: I took the test and it was right
Hope this helps :)
A motivation and incentive system that is aimed at spurring stronger employee commitment to good strategy execution:_________
a. should focus on incorporating more positive than negative motivational elements.
b. should be tied first and foremost to whether employees satisfactorily perform their assigned duties in an ethical and honorable manner.
c. must involve deliberately assigning employees heavy workloads and tight deadlines.
d. needs to put top priority on making employees happy and secure in their jobs.
e. must avoid the potential for negative consequences if performance is subpar.
Answer:
a. should focus on incorporating more positive than negative motivational elements.
Explanation:
The correct option is - a. should focus on incorporating more positive than negative motivational elements.
Help!
What do most people in the United States use to help pay for their medical costs?
credit cards
checks
money borrowed from a bank
health insurance
Answer:
Health insurance
Explanation:
Your employer contributes $75 a week to your retirement plan. Assume that you work for your employer for another 20 years and that the applicable discount rate is 7.5 percent. Given these assumptions, what is this employee benefit worth to you today
Answer:
This employee benefit is worth $40,384.69 today.
Explanation:
a) Data and Calculations:
Employer contributions per week = $75
Period of work for the employer = 20 years (20 * 52 = 1,040)
Applicable discount rate is 7.5%
PV = $40,384.69
Sum of all periodic contributions = $78,000.00 ($75*20*52)
Total Interest = $37,615.31
b) The worth of the employee benefit equals the present value of all the contributions by the employer and the accompanying interest, compounded weekly at 7.5% per annum for a period of 20 years.
Marigold Manufacturing thinks that the best activity base for its manufacturing overhead is machine hours. The estimate of annual overhead costs is $620000. The company used 1000 hours of processing for Job A15 during the period and incurred actual overhead costs of $630000. The budgeted machine hours for the year totaled 20000. What amount of manufacturing overhead should be applied to Job A15
Answer:
$31,000
Explanation:
Overhead rate = $620000 / 20000 = $31.00
Applied overheads = 1000 x $31.00 = $31,000
manufacturing overhead should be applied to Job A15 are $31,000
BestMed Medical Supplies Corporation sells medical and surgical products and equipment from over 700 different manufacturers to hospitals, health clinics, and medical offices. The company employs 500 people at seven different locations in western and midwestern states, including account managers, customer service and support representatives, and warehouse staff. Employees communicate via traditional telephone voice services, e-mail, instant messaging, and cell phones. Management is inquiring about whether the company should adopt a system for unified communications. What factors should be considered
Answer:
productivity
costs
compatibility
Explanation:
several fators that have to be put into consideration for Bestmed to adopt this system includes:
1. Productivity
Unified communication integrates different or multiple communication services in a business such as instant messaging, emails, short message services, fax etc. Will this raise the efficiency of the corporation? Unified communications system helps to make a business more efficient. By reducing work time and the productivity of the workers and the business
2. costs
They have to consider the cost of setting this up. The cost factor is very important. That is how much they are willing to spend for the cost of setting this up. and also if the benefits they would enjoy is more than the cost of setting it up.
3. compatibility
Is this business compatible with the unified communications system? This system would be of huge benefits based on how large BestMed is and the quantity of products that they have. It would merge all of their communication platforms together and make communication better
Snappy Company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor hours were estimated at $54,400 and 32,000 hours, respectively, for the year. In July, Job #334 was completed at a cost of $2,736 in direct materials and $1,664 in direct labor. The labor rate is $5.20 per hour. By the end of the year, Snappy had worked a total of 37,000 direct labor-hours and had incurred $64,650 actual manufacturing overhead cost. If Job #334 contained 120 units, the unit product cost on the completed job cost sheet would be:
Answer:
Unitary cost= $41.2
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= (54,400/32,000)
Predetermined manufacturing overhead rate= $1.7 per direct labor hour
Now, we can allocate overhead based on actual direct labor hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Direct labor hours= 1,664 / 5.2= 320
Allocated MOH= 1.7*320= $544
Finally, the total cost and unitary cost:
Total cost= 544 + 1,664 + 2,736
Total cost= $4,944
Unitary cost= 4,944 / 120
Unitary cost= $41.2
A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $16,000 indicates that Dept. Y had a direct expense of $1,700 for deliveries and Dept. Z had no direct expense. The indirect expenses are $14,300. The analysis also indicates that 50% of regular delivery requests originate in Dept. Y and 50% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:
Answer:
$8,850;$7,150
Explanation:
Calculation for Departmental delivery expenses for Dept. Y
Using this formula
Departmental delivery expenses Dept. Y= Direct expense + Indirect expense × given percentage
Let plug in the formula
Departmental delivery expenses Dept. Y= $1,700 + $14,300 × 50%
Departmental delivery expenses Dept. Y= $1,700 + $7,150
Departmental delivery expenses Dept. Y= $8,850
Calculation for Departmental delivery expenses for Dept. Z,
Using this formula
Departmental delivery expenses for Dept. Z= Indirect expense × given percentage
Departmental delivery expenses for Dept. Z= $14,300 × 50%
Departmental delivery expenses for Dept. Z= $7,150
Therefore The Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:$8,850;$7,150
An investor is considering a $20,000 investment in a start-up company. She estimates that she has probability 0.1 of a $15,000 loss, probability 0.05 of a $20,000 profit, probability 0.25 of a $35,000 profit, and probability 0.6 of breaking even (a profit of $0). What is the expected value of the profit
Answer:
Expected profit = $8,250
Explanation:
The expected rate of profit is the weighted average of all the possible profits associated with an investment decision. The profits are weighted using the probability associated with their outcome value.
Expected profit = WaRa + Wb+Rb + Wn+Rn
W- Probability of the expected profit,
R- expected profit under a circumstance
Expected profit = (0.1× -15,000) + (0.05× 20,000) + (0.25 × 35,000) +(0.6 × 0) =8,250
Expected profit = $8,250
Huduko Inc. offers a number of computer services. Huduko operates with a utilization of 30 percent. The interarrival time of jobs is 8 milliseconds (0.008 second) with a coefficient of variation of 1.5. On average, there are 20 jobs waiting in the queue to be served and 60 jobs in process (i.e., being processed by a server rather than waiting to be sent to a server for processing).
Required:
How many servers do they have in this system?
Answer:
Huduko Inc.
The number of servers in this system is:
= 200.
Explanation:
a) Data and Calculations:
Utilization rate = 30%
Interarrival time of jobs = 8 milliseconds (0.008)
Coefficient of variation = 1.5
Average jobs waiting in the queue to be served = 20
Number of jobs in process = 60
Number of servers processing the 60 jobs = 60
Since the number of servers processing at a time is 60 with a utilization rate of 30%, it means that there are 200 servers in the system (60/30%).
which quote best represents a person performing a cost-benefit analysis
The targeted skill scope strategy
A. seeks to attract a large number of applicants who may have the characteristics that are needed to perform the specific job.
B. seeks to attract a small group of applicants who have a high probability of possessing the characteristics that are needed to perform a specific job.
C. is often used by an organization employing the Loyal Soldier HR strategy.
D. is optimal for attracting a large number of applicants for each position and then basing hiring decisions on assessment of fit with the culture and values of the organization.
Answer:
The targeted skill scope strategy: seeks to attract a small group of applicants who have a high probability of possessing the characteristics that are needed to perform a specific job. ... In order to be hired as a "Long term specialist" an applicant must have all skills to perform the job.
The targeted skill scope strategy seeks to attract a small group of applicants who have a high probability of possessing the characteristics that are needed to perform a specific job. The correct option is b.
The targeted skill scope strategy aims to attract a small group of applicants who are highly likely to possess the characteristics required to perform the specific job. This method is used when you need a small number of applicants with a very specific or rare set of skills.
As a result, the targeted skill scope strategy seeks to attract a small group of applicants who are highly likely to possess the characteristics required to perform a specific job. To be hired as a "Long term specialist," an applicant must possess all necessary skills.
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Internal business partnerships between supply and other functional areas such as marketing/sales, finance/accounting, and engineering are: a. desirable because of the interdependencies between and among functions. b. easily developed because all functional areas share goals and metrics. c. difficult to develop because supply has little impact on organizational goals. d. unimportant because one area has no impact on the others.
Answer:
a. desirable because of the interdependencies between and among functions.
Explanation:
Workflow management systems can be defined as a strategic software application or program designed to avail companies the infrastructure to setup, define, create and manage the performance or execution of series of sequential tasks, as well as respond to workflow participants.
Some of the international bodies that establish standards used in workflow management are;
1. World Wide Web Consortium.
2. Workflow Management Coalition.
3. Organization for the Advancement of Structured Information Standards (OASIS).
Workflow management systems enhances the automation and management of various business processes, as well as create partnership between different units through the business process.
Hence, internal business partnerships between supply and other functional areas such as marketing/sales, finance/accounting, and engineering are desirable because of the interdependencies between and among functions.
In the Shaping Department of Crane Company the unit materials cost is $2.00 and the unit conversion cost is $1.50. The department transferred out 7000 units and had 1500 units in ending work in process 20% complete. If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is
Answer:
$2.00
Explanation:
the total cost to be assigned to the ending work in process is $2.00
On January 1, 2020, XYZ Co. issued a bond with a $400,000 par (face) value. The bond is a 5-year bond and will mature on December 31, 2025. The bond has a contract rate of interest of 5% and interest is paid semi-annually on June 30 and December 31 of each year. On January 1, 2020, the market rate of interest for bonds was 6%. The issue price of the bond was $382,942. The journal entry to record issuance of the bond would be:
Answer:
The journal entry to record issuance of the bond would be:
Debit : Cash $382,942.
Credit : Bonds Payable $382,942.
Explanation:
At Issuance of Bonds, we recognize the Cash Asset and the Liability Bond Payable at the Issue Price of the Bond instead of Face Value.
The Issue Price is also known as the Present Value or Current Price of the Bond and for this question this was given as $382,942.
Consider two hypothetical countries, Borzia and Ardon. Both countries produce iGadgets, and the price of iGadgets is higher in Borzia than in Ardon. If Borzia and Ardon open to trade, producers in _____ would be more likely to lobby their government for an import tariff on iGadgets in order to protect themselves from foreign competition.
Which of the following statements about the effects of the tariff compared to free trade are correct? Select all that apply.
a. The tariff always raises the price of imported iGadgets above their domestic price.
b. In Borzia, some workers at retail and shipping companies that import iGadgets will lose their jobs.
c. The tariff need not increase the price of the imported iGadget above its domestic price.
d. In Ardon, consumption decreases and domestic production increases.
e. In Borzia, consumption decreases and domestic production increases.
Explanation:
di ko po alam yarn sorry po na di ku kayu ma tutulongan
Plano Co. 12/31/2021
Partial Trial Balance Data Debits Credits
Sales revenue 830,000
Interest revenue 60,000
Gain on sale of investments 110,000
Cost of goods sold 500,000
Selling expenses 150,000
Restructuring costs 40,000
Interest expense 30,000
General and administrative expenses 60,000
Plano had 50,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 30%.
Required:
Prepare a multiple-step income statement with earnings per share disclosure. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)
Answer:
A multiple-step income statement with earnings per share disclosure is made and attached with this answer in pdf format.
Explanation:
Multistep income statement prepared by calculating income in multiple steps
First gross income is calculated by deducting gross income from sales value.
Then operating income is calculated by deducting the total operating expenses from the gross profit.
The non-operating income and expenses are adjusted in the operating income to calculate the income before tax.
Then income tax is deducted to arrive at net income for the period.
The net income is dividend by the outstanding numbers of shares to calculate the earnings per share.
Ethan is developing a magazine ad. He writes an attention-getting headline
and body copy that will engage readers. He places the company's logo near
the bottom of the ad. What is another basic part of print advertising that he
should consider including?
A. A visual that supports the message
B. A storyboard to engage the audience
C. Interactive features to engage the audience
D. A script arranged in two columns
Answer:
a visual that supports the message
Explanation:
answer
A basic part of print advertising that Ethan should consider for a magazine ad is a visual that supports the message. Thus the correct answer is option A.
What is advertising?Advertising refers to the methods used to draw attention to a good or service. In order to attract consumers' attention, advertising seeks to highlight a good or service. It is often used to market a particular product or service, although there are many other applications as well, with commercial advertising being the most popular.
Print advertisement that appear in magazines are referred to as magazine advertising. Magazine advertising makes use of print media to promote the goods, services, or message of your company in regional or national magazines. Along with a headline and body copy that grab readers' attention, a strong image will draw viewers to the advertisement.
Therefore, a visual that supports the message is a basic part of print advertising.
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Green, Inc., provides group term life insurance for all of its employees. The coverage equals twice the employee's annual salary. Sam, a vice president, worked all year for Green, Inc., and received $200,000 of coverage for the year at a cost to Green of $1,500. The Uniform Premiums (based on Sam's age) are $0.25 per month for $1,000 of protection. How much must Sam include in gross income this year
The office copy machine was always down for repair. As the office manager, Mieko decided to purchase a new photocopier instead of continuing to rent the old machine. She was sure that in the long-run the company would end up saving money by purchasing a new unit. However, Mieko is questioning her decision. She wonders just how much money the company will save and now employees are complaining that the new machine does not have a built-in stapler. Marilyn is experiencing:___________.
Incomplete question; lacks options. However, I answered from a general perspective.
Answer:
regret of purchase
Explanation:
It is noteworthy that Mieko made a purchase of the photocopier without giving much thought to the action.
Since it appears the new machine lacks a built-in stapler, it seems they may still need to rent staplers, which would thus constute part of the company's cost in the long run.
Hence, Mieko is experiencing a regret of her purchase.
Management at TJX Companies is deciding whether to build a new goods distribution center. The distribution center will cost $60 million to build; the estimated additional first year revenue will be $5 million. The distribution center will last 50 years, with a depreciation rate of 5% per year. The opportunity cost of this investment is predicted to be 7% interest earned. a. What is the present value of the stream of payments resulting from this potential new goods distribution center? Round to the nearest million. $ million b. TJX build the distribution center because the .
Answer:
PV= $69,003,731.47
Explanation:
Giving the following information:
Cash flows= $5,000,000 for 50 years
Opportunity cost= 7%
First, we need to calculate the Future Value of the cash flow stream using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual cah flow
FV= {5,000,000*[(1.07^50) - 1]} / 0.07
FV= $2,032,644,647
Now, the present value:
PV= FV / (1+i)^n
PV= 2,032,644,647 / (1.07^50)
PV= $69,003,731.47
On December 28, 20Y3, Silverman Enterprises sold $19,500 of merchandise to Beasley Co. with terms 2/10, n/30. The cost of the goods sold was $10,600. On December 31, 20Y3, Silverman prepared its adjusting entries, yearly financial statements, and closing entries. On January 3, 20Y4, Silverman Enterprises issued Beasley Co. a credit memo for returned merchandise. The invoice amount of the returned merchandise was $4,500 and the merchandise originally cost Silverman Enterprises $2,200.
a. Journalize the entries by Silverman Enterprises to record the December 28, 20Y3, sale. If an amount box does not require an entry, leave it blank.
b. Journalize the entries by Silverman Enterprises to record the merchandise returned by Beasley Co. on January 3, 20Y4. If an amount box does not require an entry, leave it blank.
c. Journalize the entry to record the receipt of the amount due by Beasley Co. on January 7, 20Y4. If an amount box does not require an entry, leave it blank.
Answer:
Date Account Title Debit Credit
Dec 28 Accounts Receivable $19,110
Sales $19,110
Cost of Goods sold $10,600
Inventory $10,600
Working:
= 19,500 * ( 1 - 2%)
= $19,110
Date Account Title Debit Credit
Jan 3 Customer refunds payable $4,410
Accounts Receivable $4,410
Inventory $2,200
Estimated return inventory $2,200
Working:
Sales were with 2% discount:
= 4,500 * ( 1 - 2%)
= $4,410
Date Account Title Debit Credit
Jan 7 Cash $15,000
Accounts receivable $14,700
Sales $290
Payment was made after discount period of 10 days so full amount must be paid.
Cash = 19,500 - 4,500 = $15,000
Accounts receivable = 19,110 - 4,410 = $14,700
On January 2, 2020, Swifty Corporation wishes to issue $5100000 (par value) of its 7%, 10 year bonds. The bonds pay interest annually on January 1. The current yield rate on such bonds is 10N Using the interest factors below.compute the amount that Swifty will realize from the sale (issuance of the bands Present value of lat 756 for 10 periods 0.5083 Present value of 1 at 1096 for 10 periods Present value of an ordinary annuity at for 10 periods 70236 Present value of an ordinary annuity at 10 for 10 periods 6.1446 a. $5100031 b. $5640733 c. $4159672 d. $5100000
Answer:
c. $4159672
Explanation:
Computation to determine the amount that Swifty will realize from the sale
First step is to calculate the annual interest payment
Annual interest payment=$5,100,000 × .07
Annual interest payment=$357,000
Now let calculate the amount that Swifty will realize from the sale
Sales realized amount=($347,000 × 6.1446) + ($5,100,000 × 0.3855)
Sales realized amount=$2,193,622+ $1,966,050
Sales realized amount =$4,159,672
Therefore the amount that Swifty will realize from the sale will be $4,159,672
The operations manager for the Blue Moon Brewing Co. produces two beers: Lite (L) and Dark (D). Two of his resources are constrained: production time, which is limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients), of which he can get only 675 gallons each day. To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract, while each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg, and profits for Dark beer are $2.00 per keg.
Required:
a. What are decision variables
b. What is the objective function?
c. What are the two constrains?
Answer:
See notes below
Explanation:
The decision Variables includes the following are the quantities of lite beer and dark beer to be produced.
Quantity of lite =x
Quantity of Dark =y
The objective is to MaxiMize total profit.
let total total be z
MaxiMize z =3x + 2y
The two constraints are
Production tiMe: 2x + 4y ≤ 480
Malt : 5x + 4y ≤ 675
ABC estimates uncollectible accounts based on the percentage of accounts receivable. What effect will recording the estimate of uncollectible accounts have on the accounting equation
Answer: Decrease assets and decrease stockholders' equity
Explanation:
If ABC estimates the uncollectible accounts based on the percentage of accounts receivable, the effect that the recording of the estimate of the uncollectible accounts will have on the accounting equation is that there will be a decrease in assets and there'll also be a decrease in the stockholders' equity.
We should note that the accounts uncollectible simply refers to the loans, receivables or other forms of debt that there's no chance of it being paid. Therefore, when they are estimated based on the percentage of accounts receivable, there'll be a reduction in both the assets and the stockholders equity.
Mary owns 100 percent of a gift shop with an equity value of $150,000. If she keeps the shop open 5 days a week, EBIT is $75,000. If the shop remains open 6 days a week, EBIT increases to $92,000 annually. Mary needs an additional $50,000 which she can raise today by either selling stock or issuing debt at an interest rate of 7 percent. The principal amount would be repaid in equal annual payments at the end of the next five years. Ignore taxes. What will be the cash flow for the next year to Mary if she issues stock to another individual, remains open 6 days a week, and distributes all the residual cash flow to the shareholders
Answer:
EBIT should be $92,000 since she will open 6 days per week.
There are no interests since debt = $0
There are not taxes = $0
Net income = $92,000 - $0 - $0 = $92,000
Mary will receive $92,000 x $150,000/$200,000 = $69,000
The other stockholder will receive $92,000 x $50,000/$200,000 = $23,000
total cash flows = $92,000