Answer:
2,256 hours
Explanation:
The computation of the total standard direct labor hours allowed (SQ) for units produced is shown below;
As we know that
Labor rate variance = (Actual hours × Actual rate) - (Actual hours × Standard rate)
($5,000) = $35,000 - (2,500 × Standard rate)
2,500 × Standard rate = $40,000
Standard rate = $16
Now
Labor efficiency variance = (Actual hours × Standard rate) - (Standard hours × Standard rate)
$3,900 = (2,500 × $16) - (Standard hours × $16)
Standard hours × $16 = 36,100
Standard hours = 2,256.25
= 2,256 hours
Tariq and Noelle work in the sales department at CTI Telecommunications. Tariq is the star salesman of the department and makes it his mission to motivate the rest of the team when sales numbers are down or when there are problems interacting with other departments. Meanwhile, Noelle consistently ranks in the middle or near the bottom in terms of sales, and she often gets distracted by calls from her teenage son. She also spends more time than she should socializing with friends in other departments. However, everyone, including the bosses, loves Noelle because of her true-blue loyalty to the company and her team. What else is most likely true of Noelle
Answer:
D. She volunteers to do the mundane tasks others avoid, and she does things like buying birthday cards for co-workers and organizing parties.
Explanation:
Noelle is an average perfomer so she is open for doing mundane task also she is not worried for star performance. in addition to this, she spends more time with some one as compared by having socializing. moreover, she is having a good skills and does not give priority to perform better as compared with others
So here the second last option is correct
Alpha Industries is considering a project with an initial cost of $9.7 million. The project will produce cash inflows of $1.67 million per year for 9 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 6.12 percent and a cost of equity of 11.61 percent. The debt–equity ratio is .77 and the tax rate is 40 percent. What is the net present value of the project?
Answer:
$660,000
Explanation:
WACC = [wD * kD * (1 - t)] + [wE * kE]
WACC = [(0.77 / 1.77)*6.12%* (1 - 0.40)] + [(1 / 1.77)*11.61%]
WACC = 1.60% + 6.56%
WACC = 8.16%
Present value of annuity = Annuity*[1-(1+interest rate)^-time period]/rate
Present value of annuity = $1.67*[1-(1.08156745763)^-9]/0.0816
Present value of annuity = $1.67*6.206374532
Present value of annuity = $10.36 million
NPV = Present value of inflows - Present value of outflows
NPV = $10.36 million - $9.7 million
NPV = $660,000
The following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the percent of sales method to determine its bad debts expense. Accounts receivable $ 433,000 Debit Allowance for Doubtful Accounts 1,370 Debit Net Sales 2,220,000 Credit All sales are made on credit. Based on past experience, the company estimates 1.0% of credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense
Answer:
Journal Entry:
Debit Bad Debts $23,370
Credit Allowance for Doubtful Accounts $23,370
To record bad debts expense and bring the balance of Allowance to $22,000 (credit)
Explanation:
a) Data and Calculations:
Accounts receivable $ 433,000
Debit Allowance for Doubtful Accounts 1,370 Debit
Net Sales 2,220,000
Estimated uncollectible = 1.0% of credit sales
= $2,220,000 * 1% = $22,000
Adjusting entry analysis:
Bad Debts $23,370
Allowance for Doubtful Accounts $23,370
It is an accounting question
Answer:
Latana Company
Classified Balance Sheet
As of the first month of operation
Assets
Current assets:
Cash $49,500
Short-term investments 10,000
Notes receivable 5,000
Supplies 900 $65,400
Long-term assets:
Land 15,000
Equipment 10,000 $25,000
Total assets $90,400
Liabilities and Equity
Current liabilities:
Accounts payable $400
Long-term liabilities:
Notes payable $15,000
Total liabilities $15,400
Stockholders' equity:
Common stock $750
Additional Paid-in Capital 74,250 $75,000
Total liabilities and equity $90,400
Explanation:
a) Data and Calculations:
Latana Company
Trial Balance
As of the first month of operation
Account Titles Debit Credit
Cash $49,500
Short-term investments 10,000
Notes receivable 5,000
Supplies 900
Land 15,000
Equipment 10,000
Accounts payable $400
Notes payable 15,000
Common stock 750
Additional Paid-in Capital 74,250
Total $90,400 $90,400
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,250,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below:
2018 2019
Costs incurred during the year $300,000 $1575,000
Estimated costs to complete as of 12/31 1,200,000 0
Billings during the year 380,000 1,620,000
Cash collections during the year 250,000 1,750,000
Required:
a. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming Nortel recognizes revenue over time according to percentage of completion.
b. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming this project does not qualify for revenue recognition over time.
c. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2018 assuming Nortel recognizes revenue over time according to percentage of completion.
d. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2018 assuming this project does not qualify for revenue recognition over time.
Answer:
Nortel Networks
Revenue Recognized over time according to percentage of completion:
2018:
Percentage of completion = 20%
Revenue = $450,000 ($2,250,000 * 20%)
Costs incurred 300,000
Gross profit = $150,000
2019:
Percentage of completion = 80% (100% - 20%)
Revenue = $1,800,000
Costs incurred 1,575,000
Gross profit = $225,000
b.
2018:
Revenue = $0
Costs incurred = $300,000
Gross loss = $300,000
2019:
Revenue = $2,250,000
Costs incurred 1,575,000
Gross profit = $675,000
c. Partial balance sheet (Revenue over time according to percentage of completion):
Assets:
2018
Accounts receivable $130,000
Equity:
Retained earnings $150,000
d. Partial balance sheet, assuming this project does not qualify for revenue recognition over time:
Assets:
2018
Accounts receivable $130,000
Equity:
Retained earnings ($300,000)
Explanation:
a) Data and Calculations:
Contract price = $2,250,000
2018 2019
Costs incurred during the year $300,000 $1575,000
Estimated costs to complete as of 12/31 1,200,000 0
Billings during the year 380,000 1,620,000
Cash collections during the year 250,000 1,750,000
Accounts Receivable:
2018 2019
Beginning balance $0 $130,000
Billings 380,000 1,620,000
Cash collection (250,000) 1,750,000
Ending balance $130,000 $0
c. Partial balance sheet (Revenue over time according to percentage of completion):
Assets:
2018 2019
Accounts receivable $130,000 $0
Equity:
Retained earnings $150,000 $225,000
d. Partial balance sheet, assuming this project does not qualify for revenue recognition over time:
Assets:
2018 2019
Accounts receivable $130,000 $0
Equity:
Retained earnings ($300,000) $675,000
Amigo Software, Inc., has total assets of $800,000, current liabilities of $150,000, and long-term liabilities of $120,000. There is $65,000 in preferred stock outstanding. Thirty thousand shares of common stock have been issued.
Required:
a. Compute book value (net worth) per share.
b. If there is $48,000 in earnings available to common stockholders and the firm’s stock has a P/E of 20 times earnings per share, what is the current price of the stock?
c. What is the ratio of market value per share to book value per share? (Round to two places to the right of the decimal point.)
Answer and Explanation:
a. The book value per share is
But before that the net worth is
= Total assets - current liabilities - long term liabilities - preferred stock
= $800,000 - $150,000 - $120,000 - $65,000
= $465,000
Now the book value per share is
= $465,000 ÷ 30,000 shares
= $15.50
b. The current price of the stock is
= $48,000 ÷ 30,000
= $1.60
Now the market value is
= $1.60 × 20
= $32
c. The ratio of market value per share to book value per share is
= $32 ÷ $15.50
= 2.06
The following units of a particular item were available for sale during the calendar year:
Jan. 1 Inventory 4,000 units at $20
Apr. 19 Sale 2,500 units
June 30 Purchase 6,000 units at $24
Sept. 2 Sale 4,500 units
Nov. 15 Purchase 1,000 units at $25
The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method.
Answer:
Cost of goods sold $152,000
Closing inventory $97,000
Explanation:
Under the FIFO system , inventories are priced using the price of the oldest batch in the stock, after which the price of the next oldest batch and this is done in turn. It is based on the principle that the first batch that arrives the store should be issued first.
Total units sold = 2,500+4,500= 7,000
Using the FIFO method of the perpetual inventory, the 7,000 units sold by will be priced as follows:
2500 units at a price of $20 = $50,000
Next 1500units at a price of $20 = $30,000
Next 3,000 units at a price of $24= $72,000
Cost of goods sold 152,000
Closing inventory = Total cost of goods available for sale- cost of goods sold
Total cost of goods available for sale =
(4,000× 20) + (6,000× 24) + (1,000× $25) = 249,000
Closing inventory = 249,000 - 152,000=$97,000
Cost of goods sold $152,000
Closing inventory $97,000
The net income reported on the income statement for the current year was $212000. Depreciation recorded on plant assets was $35500. Accounts receivable and inventories increased by $2100 and $7900, respectively. Prepaid expenses and accounts payable decreased by $1900 and $12500 respectively. How much cash was provided by operating activities?
Answer:
$226,900
Explanation:
Calculation to determine How much cash was provided by operating activities
Using this formula
Operating activities=Net income+Depreciation-Accounts receivable + inventories increased-Prepaid expenses - accounts payable decreased
Let plug in the formula
Operating activities=$212000 + $35500 - $2100 - $7900 + $1900 - $12500
Operating activities =$226,900
Therefore The Amount of cash that was provided by operating activities is $226,900
they check the inventory in their Office Supply Closet once every 10 days, placing an order with their supplier depending on the inventory level in the closet. This week, the operator has counted 180 highlighters in the closet. They have already placed an order with a supplier for 500 highlighters that should arrive in 3 days. What is the Office Manager's Inventory Position?
Answer:
680 highlighters
Explanation:
Inventory level = 180 highlighters
On-order inventory = 500 highlighters
Inventory position = Inventory level + On-order inventory
Inventory position = 180 highlighters + 500 highlighters
Inventory position = 680 highlighters
So, the Office Manager's Inventory Position is 680 highlighters
If an announcement by a firm causes the price of that firm's stock to suddenly change, that price change will most likely be driven by:________.
a. the unexpected part of the announcement.
b. the expected part of the announcement
c. market inefficiency
d. systematic risk
Answer:
The correct answer is the option A: The unexpected part of the announcement.
Explanation:
To begin with, the stock market is characterized for being completely umpredictable due to the fact that the information available for the common people is not enough to predict the possible behaviors of the prices, so that means that when an unexpected announcement happens and nobody new about it then the market will react depending on how it takes the new so that explains that if something not good happens all the sudden the priece of the stocks of that company will probably go down due to the bad reception of the news.
Expected cash flows: FireRock Wheel Corp is evaluating a project in which there is a 40 percent probability of revenues totaling $4 million and a 60 percent probability of revenues totaling $2 million per year. Its cash expenses will be $1.0 million while depreciation expense will be $300,000. What is the expected free cash flow from taking the project if the marginal tax rate for the firm is 25 percent
Answer:
$1,425,000
Explanation:
Calculation to determine the expected free cash flow
Expected revenue$2,800,000
[(40%*$4 million)+(60%*$2 million)]
Less Cash Expenses $1,000,000
Less Depreciation Expense $300,000
EBIT$1,500,000
($2,800,000-$1,000,000-$300,000)
Tax $375,000
(25%*$1,500,000)
Net Income $1,125,000
($1,500,000-$375,000)
Add Depreciation Expense $300,000
Free Cash Flow $1,425,000
($1,125,000+$300,000)
Therefore the expected free cash flow is $1,425,000
If the four-firm concentration ratio for industry X is 60, Multiple Choice the four largest firms account for 60 percent of total sales. each of the four largest firms accounts for 15 percent of total sales. the four largest firms account for 60 percent of total advertising expenditures. the industry is monopolistically competitive, but on the threshold of being an oligopoly.
Answer:
The four largest firms account for 60 percent of total sales.
Explanation:
The four firm concentration ratio calculates the concentration ratio of the 4 largest firms in an industry.
IF the concentration ratio is 60, it means that the 4 largest firms account for 60% of the sales
Doogan Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or Rate Direct materials 2.0grams$7.00per gram Direct labor 0.4hours$12.00per hour Variable overhead 0.4hours$2.00per hour The company produced 4,600 units in January using 10,100 grams of direct material and 2,080 direct labor-hours. During the month, the company purchased 10,670 grams of the direct material at $7.30 per gram. The actual direct labor rate was $12.65 per hour and the actual variable overhead rate was $1.80 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January is:
Answer:
Direct material quantity variance= $6,300 unfavorable
Explanation:
Giving the following information:
Direct materials 2 grams $7.00 per gram
The company produced 4,600 units in January using 10,100 grams of direct material.
To calculate the direct material quantity variance, we need to use the following formula:
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (2*4,600 - 10,100)*7
Direct material quantity variance= $6,300 unfavorable
Crane Company issued common stock for proceeds of $389000 during 2019. The company paid dividends of $88000 and issued a long-term note payable for $96000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $17000. The financing section of the statement of cash flows will report net cash inflows of
Answer:
$284,000
Explanation:
Calculation to determine what The financing section of the statement of cash flows will report net cash inflows of
Using this formula
Net cash inflows=Common stock-Dividends-Treasury stock
Let plug in the formula
Net cash inflows= $389000-$88000 -$17000
Net cash inflows=$284,000
Therefore The financing section of the statement of cash flows will report net cash inflows of $284,000
The market consensus is that Analog Electronic Corporation has an ROE of 9% and a beta of 1.70. It plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $3.6 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 15%, and T-bills currently offer a 5% return.
Required:
a. Find the price at which Analog stock should sell.
b. Calculate the P/E ratio.
c. Calculate the present value of growth opportunities.
d. Suppose your research convinces you Analog will announce momentarily that it will immediately reduce its plowback ratio to 1/3. Find the intrinsic value of the stock.
Answer:
a $7.95
b. $2.21
c $16.36
d, $13.01
Explanation:
according to the constant dividend growth model
price = [d0 (1+g)] / (r - g)
d0 = recently paid dividend
Dividend = payout ratio x earnings
payout ratio = 1 - plowback rate
1 - 2/3 = 1/3
1/3 x 3.6 = $1.2
r = cost of equity
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
5% + 1.7(15 - 5) = 22%
g = growth rate
g = plowback rate x ROE
2/3 X 9 = 6%
1. [1.2 x 1.06] / (0.22 - 0.06) = 1.272/ 0.16 = $7.95
2.
The price to earning ratio is a financial metric used to value a company. it compares the price of a stock to the earnings of the stock. the lower the metric is, the higher the valuation of the firm
price to earning ratio = market value per share / earnings
$7.95 / $3.6 = $2.21
c. present value of growth opportunities = earnings / cost of equity
3.6 / 0.22 = $16.36
d.
price = [d0 (1+g)] / (r - g)
d0 = recently paid dividend
Dividend = payout ratio x earnings
payout ratio = 1 - plowback rate
1 - 1/3 = 2/3
2/3 x 3.6 = $2.40
r = cost of equity = 22%
g = plowback rate x ROE
1/3 X 9 = 3%
[2.4 x 1.03] / (0.22 - 0.03) = 2.472/ 0.19 = $13.01
Whitmer Inc. sells to customers all over the U.S., and all receipts come in to its headquarters in New York City. The firm's average accounts receivable balance is $2.5 million, and they are financed by a bank loan at an 11% annual interest rate. The firm is considering setting up a regional lockbox system to speed up collections, and it believes this would reduce receivables by 20%. If the annual cost of the system is $15,000, what pre-tax net annual savings would be realized
Answer:
$40,000
Explanation:
Average accounts receivables = $2,500,000. Loan amount is also $2,500,000.
Interest rate is 11%. So, interest paid = $2,500,000*0.11 = $275,000
If the system reduces receivables by 20%,then current receivables = $2,500,000*0.8 = $2,000,000. So, loan amount = $2,000,000
Interest payable = $2,000,000*0.11 = $220,000
Cost of system = $15,000
Net annual savings = Interest payable without system - Interest payable after system installed - Cost of system
Net annual savings = $275,000 - $220,000 - $15,000
Net annual savings = $40,000
A company uses the weighted average method for inventory costing. At the beginning of a period the production department had 54,000 units in beginning Work in Process inventory which were 33% complete; the department completed and transferred 168,000 units. At the end of the period, 15,000 units were in the ending Work in Process inventory and are 68% complete. Compute the number of equivalent units produced by the department.
Identify whether the actions or scenarios would likely increase or decrease the natural rate of unemployment. You are currently in a sorting module. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop. Increases natural rate of unemployment reducing workers' collective bargaining rights extra financial benefits for the unemployed a large number of young people entering the labor force an increase in union membership Decreases natural rate of unemployment
Answer:
increases natural rate of unemployment
extra financial benefits for the unemployed
a large number of young people entering the labor force
an increase in union membership
Decreases natural rate of unemployment
reducing workers' collective bargaining rights
Explanation:
natural rate of unemployment is unemployment that exists when there is only structural and frictional unemployment in an economy
structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition . Structural unemployment tends to be permanent.
Frictional unemployment . the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.
If the unemployed are given extra benefits, there would be less incentive to find a job, thus unemployment would increase
An increase in union membership increases bargaining power of employees. this can lead to increase in wages. increase in wages reduces demand for labour and this increases unemployment. reducing collective bargaining right has the opposite effect on unemployment
a large number of people entering the labour force increases frictional unemployment
Spartan Corporation, a U.S. corporation, reported $6.5 million of pretax income from its business operations in Spartania, which were conducted through a foreign branch. Spartania taxes branch income at 15 percent, and the United States taxes corporate income at 21 percent. Required: a. If the United States provided no mechanism for mitigating double taxation, what would be the total tax (U.S. and foreign) on the $6.5 million of branch profits
Answer: $2,340,000
Explanation:
Spartania Tax on branch income:
= 15% * 6,500,000
= $975,000
U.S. Corporate tax:
= 21% * 6,500,000
= $1,365,000
Total tax:
= 975,000 + 1,365,000
= $2,340,000
Then match each of the examples below with important cash flow consideration - A project for a new holiday apprel company happen seasonality but are forecasted annually - Revenues or Costs that occur if and only if the project occurs - The Cardellas purchased tickets to Disneyland, but everyone woke up sick and no one wants to go. The tickets are said to be a... (I also hope this never happens). - A corporate jet was purchased 2 years ago. This could be utilized for a new project under consideration, but is considered a(n).... because it could be sold instead. - General Mills launched a new Pokemon Cereal so Andrew wanted to try it out instead of Lucky Charms. This is an example of a - Crayola launched a new color-stamping that only works on their ColorWonder paper. This new product is expected to also increase the sales of existing color-wonder paper. This is called a
Answer:
1. A project for a new holiday apparel company happen seasonality but are forecasted annually - TIMING OF CASH FLOWS.
This relates to the timing of cash flows chosen by the company for analysis. Even though the project is seasonal, the cashflows are considered annual.
2. Revenues or Costs that occur if and only if the project occurs - INCREMETAL REVENUE.
Incremental revenue refers to the revenue that will come to a company if they further pursue a project.
3. The Cardellas purchased tickets to Disneyland, but everyone woke up sick and no one wants to go. The tickets are said to be a... (I also hope this never happens). - SUNK COSTS
Sunk costs are costs that have already been incurred and cannot be changed so do not matter in further decision making.
4. A corporate jet was purchased 2 years ago. This could be utilized for a new project under consideration, but is considered a(n).... because it could be sold instead. - OPPORTUNITY COST.
Opportunity costs are the other options that can be chosen as an alternative to the current action. This plane could be sold or used so it the options presented make it an opportunity cost.
5. General Mills launched a new Pokemon Cereal so Andrew wanted to try it out instead of Lucky Charms. This is an example of a - NEGATIVE EXTERNALITY CALLED CANNIBALIZATION.
Cannibalization occurs when a company releases a new product and sales of this new product leads to a reduction in the sales of the company's older products.
6. Crayola launched a new color-stamping that only works on their ColorWonder paper. This new product is expected to also increase the sales of existing color-wonder paper. This is called a POSITIVE EXTERNALITY.
A positive externality occurs in sales when the new product increases the sale of the older products as is the case here.
In a year in which common stocks offered an average return of 18%, Treasury bonds offered 10% and Treasury bills offered 7%, the risk premium for common stocks was:_______
A. 1%.
B. 3%.
C. 8%.
D. 11%.
Explain.
equity method to account for inOn January 1 of the current year, Beta Company paid $200,000 for shares of Gamma Company common stock. Beta owns 10% of Gamma Company. Gamma reported net income of for December 31 of the current year. The fair value of the Gamma stock on that date was . What amount will be reported in Beta's balance sheet for the investment in Gamma at December 31?vestments
Answer:
$270,000
Explanation:
Calculation to determine What amount will be reported in Beta's balance sheet for the investment in Gamma at December 31
Using this formula
December 31 Investment in Gamma= Shares of Gamma*Fair value of the Gamma stock
Let plug in the formula
December 31 Investment in Gamma = 10,000 shares*$27
December 31 Investment in Gamma = $270,000
Therefore The amount that will be reported in Beta's balance sheet for the investment in Gamma at December 31 is $270,000
Let’s say Bob wants to offer an insurance package to his employees that will cover any outpatient surgery charges, tooth sealants, and glasses. His total annual cost for providing these insurance plans will be $
per employee for the year.
Let’s assume that Schmidt wants to cover his employees’ expenses in case of disability. He also wants to ensure that the family of an employee is provided for in the event of an employee’s loss of life. The total annual cost for providing these insurance plans will be $
per employee.
Answer: its 480$ per person
Explanation:
just got 100
To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $875, and has a par value of $1,000. If the firm's tax rate is 25%, what is the component cost of debt for use in the WACC calculation
Answer:
8.09%
Explanation:
Semi annual coupon = 1000*(9.25/2)% = 46.25
N = (20*2) = 40
Using Ms Excel to get I/Y
N = 40, PV=-875, PMT = 46.25, FV = 1000
CPT I/Y = I/Y(n, -pv, pmt, fv) * 2
CPT I/Y = I/Y(40, -875, 46.25, 1000) * 2
CPT I/Y = 5.39% * 2
CPT I/Y = 10.78%
After tax cost of debt = 10.78%*(1 - 0.25)
After tax cost of debt = 10.78%*0.75
After tax cost of debt = 0.08085
After tax cost of debt = 8.09%
Why would you choose a job over a career?
Answer:
A job can be just going to work to earn a paycheck. A career means that each of your jobs, experiences, and training programs is helping you advance in pay or responsibility. The real difference between a job and a career is your attitude. People who want a career are always thinking about their long-term goals.
Explanation:
Sorry if this isn't right love, I tried:(
Rationale of the cost replacement approach is: an informed investor would not pay more for real estate than what it would cost to buy the land and build the structure an informed investor would pay for a property based on its ability to produce cash flow an informed buyer of real estate would not pay more for a property than what other investors have recently paid for comparable properties. None of the above
Answer:
an informed buyer of real estate would not pay more for a property than what other investors have recently paid for comparable properties
Explanation:
The replacement cost is the cost when the improvement represent the cost to replace one improvement with another containing the similar utility
So here the cost replacement approach would be informed buyer of the real estate that should not pay more as compared with the other investor who currently paid for the properties that are comparable with each other
Therefore the above represent the answer
A leader has a problem of low Product X sales. She meets individually (i.e., one at a time) with a number of her subordinates and shares the problem of low Product X sales. She asks for their ideas and suggestions about how to increase Product X sales and then makes the decision alone based on their input. According to Vroom and Yetton's normative theory of leadership, what decision-making style is the leader using in this situation
Answer: CI consultative.
Explanation:
According to Vroom and Yetton's normative theory of leadership, the decision-making style that the leader is using in this situation is the consultative leadership style.
This is a form of leadership style whereby the leader seeks the opinion of his team members and then uses the input gotten from them to make a final decision. Since the leader meets them individually and seeks their opinion, the leader is using a consultative leadership style.
RM Company, a manufacturer, has provided the following information pertaining to its recent year of operation:
Net income $390,000
Accounts payable increased $33,000
Prepaid rent decreased $14,500
Depreciation expense was $44,000
Accounts receivable increased $43,000
Gain on sale of a building was $15,500
Wages payable decreased $30,000
Unearned revenue increased $53,000
Using the indirect method, how much was RM's net cash provided by operating activities?
a. $259,000.
b. $327,000.
c. $347,000.
d. $358,000.
Answer:
RM Company
Using the indirect method, RM's net cash provided by operating activities is:
= $446,000.
Explanation:
a) Data and Calculations:
Net income $390,000
Accounts payable increased $33,000
Prepaid rent decreased $14,500
Depreciation expense was $44,000
Accounts receivable increased $43,000
Gain on sale of a building was $15,500
Wages payable decreased $30,000
Unearned revenue increased $53,000
Operating Activities:
Net income $390,000
Adjustment with non-cash items:
Depreciation expense was 44,000
Gain on sale of a building was (15,500)
Working capital changes:
Accounts payable increased 33,000
Prepaid rent decreased 14,500
Unearned revenue increased 53,000
Accounts receivable increased (43,000)
Wages payable decreased (30,000)
Net cash provided by operating
activities $446,000
A public good is A. any good provided by government. B. a good that can be most cheaply provided by government, though it may in fact be provided by private enterprise. C. a good whose benefits cannot readily be restricted to a small group of people. D. a good whose benefits cannot be enjoyed by an individual alone.
Answer:
C. a good whose benefits cannot readily be restricted to a small group of people.
Explanation:
Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.
The four factors of production are;
I. Land: this refers to the natural resources and raw materials extracted from the ground or grown in the soil e.g oil, gold, rubber, cocoa, etc.
II. Labor (working): this is the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.
III. Capital resources: it includes the physical assets used for production of goods and services such as equipment, money, plant, etc.
IV. Entrepreneurship: it is intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).
These four (4) factors of production when combined effectively and efficiently are used for the manufacturing or production of goods and services that meets the unending requirements or needs of the consumers.
A public good is a good whose benefits cannot readily be restricted to a small group of people.
This ultimately implies that, a public good such as power utility (electricity) or water supply is capable of being provided simultaneously to the general public.
Furthermore, a public good is non-excludable and cannot be exhausted due to its use by the general public i.e it's never depleted.
1. Assume that your company is considering the lease of one of these HP copiers, and you expect that the average price for a color copy for your company would be $0.110 because you would carefully prioritize color copy jobs and reduce the number of copies requiring a large amount of color. You expect that training your copy center staff to properly use the new copier would cost about $6,150 for materials and lost work time. What is the breakeven number of color copies per year that would make you indifferent between the new HP copier and your current copier
Answer: 246,000 color copies
Explanation:
Cost of printing color pages using the old machine is not included so we will infer that.
We shall assume the cost of that to be $0.135.
In using this new copier made by HP, the cost saved per copy is:
= 0.135 - 0.110
= $0.025
The breakeven number of color copies that would make you indifferent would be the number of copies that would lead to a savings of $6,150 incurred on account of training the staff:
= 6,150 / 0.025
= 246,000 copies