Answer:
Kindly check the explanation section because the answer is long.
Explanation:
(1). Date: December 16.
Details: Equipment = 140,000 × .46 = 64,400.
Accounts payable(Sfr) = 140,000 × .46 = 64,400.
Foreign currency received from broker(Sfr) = 140,000 × .45 = 63,000.
Dollar payable to exchange broker($) 140,000 × .45 = 63,000.
(2). Date: December 31.
Details= foreign currency transaction loss = 140,000 × ( .48 - .46) = 2,800
Revaluation of Accounts payable(Sfr) = 140,000 × ( .48 - .46) = 2,800
Foreign currency received from broker (Sfr) = 140,000 × (.475 - .45) = 3,500.
Foreign currency transaction gain= 140,000 × (.475 - .45) = 3,500.
(3). Date : February 14.
Details: Foreign currency transaction loss = 140,000 × (.475 - .47) = 700
Foreign currency receivable from broker = 140,000 × (.475 - .47) = 700
Account payable = 140,000 × (.47 - .48) = - 1,400 = 1,400.
Foreign currency transaction Gain= 140,000 × (.47 - .48) = - 1,400 = 1,400
Dollars payable to exchange broker = 140,000 × .45 = 63,000
Cash = (140,000 × .45) = 63,000
Foreign currency uni(Sfr) = 140,000 × .47 = 65,800.
Foreign currency receivable from broke(Sfr) = 140,000 × .47 = 65,800.
Accounts payable(Sfr) =140,000 × .47 =65,800.
Foreign currency units(Sfr) = 140,000 × .47 = 65,800.
The amount of time a project manager estimates it will take to complete the activity under ideal conditions is known as:
Answer:
pessimistic time
Explanation:
The term that is being described in the question is known as pessimistic time. Like mentioned, this is a concept used in the program evaluation and review technique known as PERT and widely used in project planning in order to estimate the longest period of time it will take for a task/project to be fully completed and/or delivered to the client. Known as a pessimistic time since it is the worst possible outcome of time spent on a project.
BPR is part of the larger discipline of ________, which consists of methods, tools, and technology to support and continuously improve business processes.
Answer:
Business process management.
Explanation:
Business process re-engineering (BPR) is part of the larger discipline of business model optimization, which consists of methods, tools, and technology to support and continuously improve business processes.
The main purpose of business process re-engineering (BPR) is to remove any unnecessary process which does not add value to a business, then to simplify and automate other processes left so as to reduce costs, cycle time, and labor.
Hence, this would ensure that the business is running smoothly without any downtime, backlogs or inefficiency.
Companies that have multiple outsourcers may hire an outsource relationship management company to monitor and manage the outsourcing relationships. Select one: True False
Answer:
True
Explanation:
But, this answer depends on which companies are outsourcing to and from. This is because the definition of an outsourcer is the large company that outsources the provision of its goods and services to smaller companies and also the small company that provides goods and services to larger companies. It is a pari-passu definition.
If the companies involved in this case are providers of outsourcing services, then they do not require an outsource relationship management company to monitor and manage the outsourcing relationships. Instead, it could occasionally employ consultants to help them in assessing how the relationships are being managed. It is their primary responsibility to manage the outsourcing relationships and should not outsource this management.
Ask Socrates, Inc., employees are allowed to dress informally. This is an example of a __________ through which organizational culture is transmitted.
The question is incomplete:
Ask Socrates, Inc., employees are allowed to dress informally. This is an example of a __________ through which organizational culture is transmitted.
A) primary procedure
B) ritual
C) material symbol
D) symbolic act
E) fundamental mechanism
Answer:
C) material symbol
Explanation:
-Primary procedure is a document that indicates employees how to perform a core activity in the business process.
-Ritual refers to a group of acctivities that are performed in a specific way according to an established order.
-Material symbol is a type of non-verbal communication that goes from the employer to the employees that shows the culture of the company.
-Symbolic act is an act that represents an idea without using words.
-Fundamental mechanism refers to a key process that helps people to perform their jobs.
According to this, the answer is that this is an example of a material symbol through which organizational culture is transmitted because a material symbol is a non-verbal form of communication from the employer to the employees and in this case, the company allows employees to dress informally and the organization's culture is communicated through this.
Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the collection of the note and interest at maturity should be: (Use 360 days a year.)
Answer: B) Debit Cash $25,437.50, credit Interest Revenue $437.50; credit Notes Receivable $25,000.
Explanation:
The interest revenue for the period of 90 days will be;
= 25,000 * 7% * [tex]\frac{90}{360}[/tex]
= $437.50
Total to be received
= 25,000 + 437.50
= $25,437.50
The entry to record will therefore be;
DR Cash $25,437.50
CR Interest Revenue $437.50
CR Notes Receivable $25,000
Santoyo Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below:
Hours
Wait time 12.5
Process time 1.6
Inspection time 0.8
Move time 4.2
Queue time 5.9
The delivery cycle time was:______
Answer:
Santoyo Corporation
Tracking Time to Fill Orders:
The delivery cycle time was 25 hours.
Explanation:
The delivery cycle time sums the time occasioned by the supply delay and the reordering delay before the goods reach the customer. As an order is received by Santoyo Corporation there is usually a wait time of half a day or 12.5 hours. The processing of the order consumes 1.6 hours. Before delivery is made, the inspectors spend 0.8 hours or 48 minutes doing what they know best. Then, freight takes 4.2 hours for the delivery van to reach the customer's warehouse. At that point, another 5.9 hours are spent queueing for the receipt of the goods by the customer.
1. Name several business etiquette guidelines that promote positive workplace conversations, in the office and at work-related social functions.
2. How can you ensure that your telephone calls on the job are productive? Name at least six suggestions.
3. List at least three guidelines that courteous cell phone users follow to avoid offending others.
Answer:
Please see explanations below
Explanation:
1.
• Ignore or avoid negative remarks when interacting with people either at work or anywhere.
• Give sincere and specific praise to people when they surpass your expectation.
• Always use correct names and titles when addressing people.
• Always choose appropriate topics when sending mails or when communicating.
• Recognize people for good work
• listen to learn in order to be better
2.
• Be smart, cheerful and accurate at all times
• One has to be professional and courteous at all times
• Avoid small or irrelevant talk that can waste too many time hence causes delay in hitting the point of making the call
• Always end the call with a tactful cue without the receiver being offended
• Summarize the points of the call in order to be sure everyone is satisfied with the discussion.
• Plan an agenda to handle calls in-order to know what one has to discuss
3.
• When in a face to face conversation, be sure you pay utmost attention or avoid having divided attention
• One should learn how to lower his or her voice when making calls openly
• Receiving calls when you are already engaged in a face to face conversation is disrespectful hence should not be imbibed.
Filer Manufacturing has 11.6 million shares of common stock outstanding. The current share price is $59, and the book value per share is $5. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $99 million, has a 8 percent coupon, and sells for 92 percent of par. The second issue has a face value of $81.2 million, has a 8 percent coupon, and sells for 95.5 percent of par. The first issue matures in 10 years, the second in 5 years. What is Filer's capital structure weight of equity on a book value basis? (Do not round your intermediate calculations.) What is Filer's capital structure weight of debt on a book value basis? (Do not round your intermediate calculations.) What is Filer's capital structure weight of equity on a market value basis? (Do not round your intermediate calculations.) What is Filer's capital structure weight of debt on a market value basis?
Answer:
a. Filer's capital structure weight of equity on a book value basis is 24%.
b. Filer's capital structure weight of debt on a book value basis is 76%.
c. Filer's capital structure weight of equity on a market value basis is 80%.
d. Filer's capital structure weight of debt on a market value basis is 20%.
Explanation:
a. What is Filer's capital structure weight of equity on a book value basis? (Do not round your intermediate calculations.)
Equity book value = Equity book value per share * Number of shares = 11,600,000 * $5 = $58,000,000
Debt book value = Debt face value = First bond face value + Second face value = $99,000,000 + $81,200,000 = $180,200,000
Total book value = $58,000,000 + $180,200,000 = $238,200,000
Book value weight of equity = Equity book value / Total book value = $58,000,000 / $238,200,000 = 0.24, or 24%
Therefore, Filer's capital structure weight of equity on a book value basis is 24%.
b. What is Filer's capital structure weight of debt on a book value basis? (Do not round your intermediate calculations.)
From part a, we have:
Debt book value = $180,200,000
Total book value = $238,200,000
Therefore, we have:
Book value weight of debt = Debt book value / Total book value = $180,200,000 / $238,200,000 = 0.76, or 76%
Therefore, Filer's capital structure weight of debt on a book value basis is 76%.
c. What is Filer's capital structure weight of equity on a market value basis? (Do not round your intermediate calculations.)
Equity market value = Current share price * Number of shares = $59 * 11,600,000 = $684,400,000
Debt market value = Bond price quote * Par value of the bond
Debt market value = First bond market value + Second bond market value = (92% * $99,000,000) + (95.5% * $81,200,000) = $168,626,000
Total market value = Equity market value + Debt market value = $684,400,000 + $168,626,000 = $853,026,000
Market value weight of equity = Equity market value / Total market value = $684,400,000 / $853,026,000 = 0.80, or 80%
Therefore, Filer's capital structure weight of equity on a market value basis is 80%.
d. What is Filer's capital structure weight of debt on a market value basis?
From part c, we have:
Debt market value = $168,626,000
Total market value = $853,026,000
Market value weight of debt = Debt market value / Total market value = $168,626,000 / $853,026,000 = 0.20, or 20%.
Therefore, Filer's capital structure weight of debt on a market value basis is 20%.
Labor Input Physical output 10 500 11 600 12 690 13 760 14 800 Refer to the above table, answer the following questions: A. If the price of the good produced is $7, what is the marginal revenue product (MRPL=11) of the 11th worker? B. Suppose the price of the good sold is $10 and the marginal factor cost of labor(MFC) is $700, how many units of labor will the firm hire?
Answer:
Explanation:
Labor Input Physical output
10 500
11 600
12 690
13 760
14 800
marginal output of 11 th labor = 600 - 500 = 100
price of each product = 7
marginal revenue product of 11 th labor 7 x 100 = 700
B )
price of each of the goods sold = 10
marginal factor cost of labour = 700
minimum no of goods to be sold to cover the labour cost
= 700 / 10 = 70
no of goods added due to addition of 11 the labour = 100
no of goods added due to addition of 12 the labour = 90
no of goods added due to addition of 13 the labour = 70
so no of units of labor upto which the firm will continue to hire
= 13 .
"The Heating Division of Kobe International produces a heating element that it sells to its customers for $45 per unit. Its variable cost per unit is $30, and its fixed cost per unit is $11. Top management of Kobe International would like the Heating Division to transfer 14,900 heating units to another division within the company at a price of $33. Assume that the Heating Division has sufficient excess capacity to provide the 14,900 heating units to the other division. What is the minimum transfer price that the Heating Division should accept
Answer: $30
Explanation:
The formula to determine the transfer price is;
Transfer price = Differential cost to selling division + Opportunity cost of selling internally
The Differential cost is the Variable cost of producing the heating units so is $30.
The Opportunity cost of selling internally refers to if any sales will be foregone outside by selling inside. As the Heating Division has sufficient excess capacity, outside sales will not be affected so this cost is $0.
Transfer Price = 30 + 0
= $30
The Federal Reserve and the money supply
Suppose the money supply (as measured by checkable deposits) is currently $400 billion. The required reserve ratio is 20%. Banks hold $80 billion in reserves, so there are no excess reserves. The Federal Reserve ("the Fed") wants to decrease the money supply by $35 billion, to $365 billion. It could do this through open-market operations or by changing the required reserve ratio. Assume for this question that you can use the oversimplified money multiplier formula. If the Fed wants to decrease the money supply using open-market operations, it shouldsell $7 billion worth of U.S. government bonds. If the Fed wants to decrease the money supply by adjusting the required reserve ratio, it shouldincrease the required reserve ratio.
Answer:
1. Sell $7 billion worth of U.S. government bonds
2. Increase the required reserve ratio.
Explanation:
1. If the Fed wants to change the money supply in the economy, it can use the Money Multiplier to determine how much is it has to put in or take out of the economy to increase/decrease the Money supply to a certain level. The Money Multiplier is a figure that shows how much the money supply will increase/ decrease by as a result of an additional dollar put into or removed from the economy.
Formula is;
= 1/ Reserve Ratio
= 1 / 20%
= 5
Federal Reserve wants to decrease supply by $35 billion.
$35 billion = Amount of Bonds to sell * Multiplier
$35 billion = Amount of Bonds to sell * 5
Amount of Bonds to sell = 35/5
Amount of Bonds to sell = $7 billion worth of bonds
2. If the Fed wants instead to use the required reserve ratio to reduce money supply then it should increase the ratio. This way banks will have to keep more money in reserve instead of giving it out as loans. This reduced lending in the economy will lead to less money being created and hence a reduced money supply.
When a manager uses relationships and formal authority to cause other people in the organization to change their behavior, the manager is _____________.
Answer:
answer choices?
Explanation:
what are the answer choices
research and describe an organization that you believe has been highly innovative ( excluding apple). which of the four types of innovation – radical, incremental, disruptive, or architectural did it use? did the firm use different types over time?
Answer:
The innovative Uber Company.
Explanation:
This company used disruptive innovation to disrupt the taxi industry after they started off as a ride sharing platform in 2010/2011. From humble beginnings, just after a few years after lunch, this company has over 110 million users worldwide.
However, over the years Uber has also used radical innovation to diversify into other services such as Uber Food– for deliveries etc.
Note that disruptive innovation is marked by creating a change from the status quo; which may invariably affect the normal trend– in this case commercial taxi cab.
The crowding-out effect refers to the possibility that:
a. a deficit, financed by borrowing in the capital markets, will increase the interest rate and reduce investment in the private sector.
b. an increase in the supply of money will induce a decline in real spending.
c. when used simultaneously, expansionary fiscal and monetary policies are counter-productive.
d. the speculative demand for money varies inversely with the interest rate.
Answer:
a. a deficit, financed by borrowing in the capital markets, will increase the interest rate and reduce investment in the private sector.
Explanation:
Crowding out effect is when government borrowing from the capital markets leads to an increase in interest rate. this makes it more expensive for private sector to borrow and this reduces investment by private sector
Dothan Inc.'s stock has a 25% chance of producing a 30% return, a 50% chance of producing a 12% return, and a 25% chance of producing a −18% return. What is the firm's expected rate of return?
Answer:
Therefore, the firm's expected rate of return is 9%.
Explanation:
The expected rate of return of an investment refers to the profit or loss which an investors is anticipating to receive from the investment at a specified rate of return.
The expected rate of return is estimated by totaling the product of potential outcomes and the chances of the outcomes occurring.
For Dothan Inc.'s stock therefore, the expected rate of return can be estimated as follows:
Expected rate of return = (25% * 30%) + (50% * 12%) - (25% * 18%) = 9%
Therefore, the firm's expected rate of return is 9%.
Guerilla Radio Broadcasting has a project available with the following cash flows : Year Cash Flow 0 −$13,600 1 5,600 2 6,900 3 6,300 4 4,700 What is the payback period?
Answer:
It will take 3 years and 77 days to recover the initial investment.
Explanation:
Giving the following information:
Year Cash Flow 0 −$13,600 1 5,600 2 6,900 3 6,300 4 4,700
The payback period is the time required to recover the initial investment.
Year 1= 5,600 - 13,600= -8,000
Year 2= 6,900 - 8,000= -1,100
Year 3= 6,300 - 1,100= 5,200
To be more accurate:
(1,100/5,200)*365= 77
It will take 3 years and 77 days to recover the initial investment.
It is better to evaluate economic decisions at the marginal, where the decision has to be made as long as its marginal benefit exceeds its marginal cost, if not equal to its marginal cost.
A. True
B. False
Answer: True
Explanation:
Output is always maximised where Marginal Benefit is above Marginal Cost. Ideally speaking, Marginal Benefits should be equal to Marginal Costs but Marginal Benefits being greater than cost is still a good thing because it means that there is still room for expansion until such a point as the MB = MC.
However, if it starts costing more per unit to gain a benefit per unit MB < MC, the decision makers can know to limit the activity because this will cause losses. This is why it is better to make decisions at a Marginal level so that one may know when output is maximised as well as when to rein in production.
While examining cash receipts information, the accounting department determined the following information: opening cash balance $180, cash on hand $1,350.89, and cash sales per register tape $1,186.34. Prepare the required journal entry based upon the cash count sheet.
Answer:
Cash $1,170.89
Cash Over/Short $15.45
To Sales Revenue $1,186.34
(Beingthe cash is recorded)
Explanation:
Before passing the journal entry first we have to determine the ending cash balance which is shown below:
Ending Cash Balance is
= Opening Cash Balance + Sales
= $180 + $1,186.34
= $1,366.34
Short cash is
= Ending cash balance - cash on hand
= $1,366.34 - $1,350.89
= $15.45
And, the actual cash is
= Cash on hand - opening cash balance
= $1,350.89 - $180
= $1,170.89
Now the journal entry is
Cash $1,170.89
Cash Over/Short $15.45
To Sales Revenue $1,186.34
(Being the cash is recorded)
Sarah, the controller of a large beverage supplier, supervises two employees. Her boss, Vladimir, instructs her to increase the company's inventory balance for an amount that is material to the financial statements by crediting several small "miscellaneous" expense accounts. She does not understand why he wants her to make these entries but immediately directs one of her staff to make them because she has been instructed to do so. Which of the following statements best describes Sarah's actions?
Answer:
Sarah failed to evaluate a potential ethical issue
Explanation:
According to the given scenario, Ethical concerns occur as workers face pressure from their employers to inflate profits or expenditures that include manipulating financial statements. Workers should be morally responsible and not participate in any dishonest behavior that modify the financial statements.
So, the correct answer is Sarah failed to evaluate a potential ethical issue .
Initially, the exchange rate between South Korean won and Tunisian dinar is in equilibrium. Then, there is a decrease in demand for Tunisian dinar. As a result of a decrease in demand for Tunisian dinar, what happens to South Korea's currency in relation to Tunisia's currency
Answer:
it appreciates
Explanation:
Exchange rate is the rate at which one currency is exchanged for another currency.
If the demand of the Tunisian dinar decreases, supply of the currency would exceed the demand for the currency. as a result of this, the value of the Tunisian dinar falls , it depreciates and the won appreciates.
The following present value factors are provided for use in this problem. 1 0.9259 0.9259 2 0.8573 1.7833 3 0.7938 2.5771 4 0.7350 3.3121 Cliff Co. wants to purchase a machine for $40,000, but needs to earn an 8% return. The expected year-end net cash flows are $12,000 in each of the first three years, and $16,000 in the fourth year. What is the machine's net present value?
Answer:
$2,685.64
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-40,000
Cash flow each year from year 1 to 3 = $12,000
Cash flow in year 4 = $16,000
I = 8%
NPV = $2,685.64
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:
September October November
Sales $250,000 $300,000 $315,000
Manufacturing costs 150,000 180,000 185,000
Selling and administrative expenses 42,000 48,000 51,000
Capital expenditures _ _ 200,000
The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $50,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month.
Current assets as of September 1 include cash of $40,000, marketable securities of $75,000, and accounts receivable of $300,000 ($60,000 from July sales and $240,000 from August sales). Sales on account for July and August were $200,000 and $240,000, respectively. Current liabilities as of September 1 include $40,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $55,000 will be made in October. Bridgeport’s regular quarterly dividend of $25,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $50,000.
Required:
1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Enter all amounts as positive values except for overall cash decrease and deficiency which should be indicated with a minus sign.
Bridgeport Housewares Inc.
Cash Budget
For the Three Months Ending November 30
September October November
Estimated cash receipts from:
Cash sales $ $ $
Total cash receipts $ $ $
Less estimated cash payments for:
Manufacturing costs $ $ $
Selling and administrative expenses
Capital expenditures
Other purposes:
Income tax
Dividends
Total cash payments $ $ $
$ $ $
Less cash balance at beginning of month
Cash balance at end of month $ $ $
Plus minimum cash balance
Excess or (deficiency) $ $ $
2. The budget indicates that the minimum cash balance (will or will not) be maintained in November. This situation can be corrected by (inevesting or borrwing) and/or by the (purchase or sale) of the marketable securities, if they are held for such purposes. At the end of September and October, the cash balance will (exceed or be sort of) the minimum desired balance.
Answer:
Bridgeport Housewares Inc.
1. Monthly Cash Budget with supporting schedules for September, October, and November:
a. Cash Budget for September, October, and November:
September October November
Beginning balance $40,000 $111,0000 $137,500
Cash receipts 253,000 259,500 288,000
Total cash available $293,000 $370,500 $425,500
Cash Payments:
Payment for manufacturing costs 140,000 130,000 135,000
Income tax 55,000
Dividend 25,000
Selling & administrative expenses 42,000 48,000 51,000
Capital expenditures _ _ 200,000
Total cash payment $182,000 $233,000 $411,000
Balance $111,000 $137,500 $14,500
Minimum Cash Balance 50,000 50,000 50,000
Cash to invest or borrow $61,000 $87,500 -$35,500
b. Supporting Schedules:
i) Cash Collections:
September October November
10% Cash Sales, month of sales $25,000 $30,000 $31,500
Sales on account: 90%
70% following month of sales 157,500 189,000
30% 2nd month following sale 67,500
30% of July Sales 60,000
70% of August 168,000
30% of August 72,000
Total cash receipts $253,000 $259,500 $288,000
2. The budget indicates that the minimum cash balance (will or will not) be maintained in November. This situation can be corrected by (investing or borrowing) and/or by the (purchase or sale) of the marketable securities, if they are held for such purposes. At the end of September and October, the cash balance will (exceed or be sort of) the minimum desired balance.
Explanation:
a) Data and Calculations:
1. Budget Information:
September October November
Sales $250,000 $300,000 $315,000
Manufacturing costs 150,000 180,000 185,000
Selling and administrative expenses 42,000 48,000 51,000
Capital expenditures _ _ 200,000
2. Cash Collections:
September October November
10% Cash Sales, month of sales $25,000 $30,000 $31,500
Sales on account: 90%
70% following month of sales 157,500 189,000
30% 2nd month following sale 67,500
30% of July Sales 60,000
70% of August 168,000
30% of August 72,000
Total cash receipts $253,000 $259,500 $288,000
3. Manufacturing Costs:
Manufacturing costs 150,000 180,000 185,000
less Depreciation, insurance, &
property tax expenses 50,000 50,000 50,000
Remainder 100,000 130,000 135,000
4. Remainder of Manufacturing costs:
80% paid in the month incurred 80,000 104,000 108,000
Remainder 20%, month following 20,000 26,000 27,000
August manufacturing cost: 40,000
Payment for manufacturing costs $140,000 $130,000 $135,000
5. Cash Payments:
Payment for manufacturing costs 140,000 130,000 135,000
Income tax 55,000
Dividend 25,000
Selling & administrative expenses 42,000 48,000 51,000
Capital expenditures _ _ 200,000
Total cash payment $182,000 $233,000 $411,000
Other relevant information:
Current assets as of September 1:
Cash of $40,000
Marketable securities of $75,000
Accounts receivable of $300,000 ($60,000 from July sales and $240,000 from August sales). Sales on account for July and August were $200,000 and $240,000, respectively
Current Liabilities:
September 1 Accounts payable = $40,000 incurred in August for manufacturing costs.
Selling and administrative expenses are paid in cash in the period they are incurred.
Income tax = $55,000 October
Quarterly Dividend of $25,000 in November
Minimum cash balance of $50,000 monthly
b) When Bridgeport Housewares Inc prepares budgeted monthly cash budgets, important highlights are indicated. For instance, it becomes easier for the management of Bridgeport to know when to borrow cash to meet the minimum cash balance or in the alternative sell off some marketable securities. It is also easier for Bridgeport to understand that it can be having excess cash which should not be allowed to sit idle, but can be invested in marketable securities. The cash budgets and their preparation also help Bridgeport to be better prepared to exert the required efforts to generate sales revenue in order not to jeopardize its liquidity position. It can also help Bridgeport to understand that the capital expenditure could have been paid for instalmentally starting from September or so instead of lumping the sum in November. There are many other insights garnered from the cash budgets and their preparation.
Zisk Co. purchases raw materials on account. Budgeted purchase amounts are: April, $99,000; May, $129,000; and June, $139,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $41,000. Prepare a schedule of budgeted cash payments for April, May, and June.
Answer and Explanation:
The preparation of a schedule of budgeted cash payment for the three months i.e April, may and June is presented below:
Particulars April May June
Purchase $99,000 $129,000 $139,000
Payment made in
Latest Month (70%) $69,300 $90,300 $97,300
Payment made in
Next Month (30%) $29,700 $38,700 $41,700
Cash Disbursements
Particulars April May June
Payment made in
Current Month (70%) $69,300 $90,300 $97,300
Add:
Last Month
Purchases (30%) $41,000 $29,700 $38,700
Budgeted
Cash Payments $110,300 $120,000 $136,000
A metal fabricator produces connecting rods with an outer diameter that has a 1 ± .01 inch specification. A machine operator takes several sample measurements over time and determines the sample mean outer diameter to be 1.002 inches with a standard deviation of .003 inch.
a. Calculate the Cp of the process. (Round your answer to 3 decimal places.)
Cp =
b. Calculate the Cpk of the process. (Round your answer to 3 decimal places.)
Cpk =
Answer:
A) 1.111
B) 0.889
Explanation:
given data :
outer diameter of connecting rods = 1 ± 0.01 inch
sample mean outer diameter = 1.002 inches
standard deviation = 0.003 inches
A) Calculating the Cp of the process
mean = 1.002
Standard deviation = 0.003
LSL = 1 - 0.01 = 0.99
USL = 1 + 0.01 = 1.01
[tex]Cp = \frac{USL - LSL}{6 * STANDARD DEVIATION}[/tex] = [tex]\frac{1.01-0.99}{6*0.003}[/tex] = 1.111
B) calculate Cpk
mean = 1.002, LSL = 0.99, USL = 1.01 , deviation = 0.003
[tex]Cpk = min[\frac{mean-LSL}{3* deviation} , \frac{USL- mean}{3*deviation} ][/tex]
= min [(0.012/0.009) , (0.008/0.009) ]
= min [ 1.333, 0.889 ]
hence Cpk = 0.889
Eastline Corporation had 12,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 4,080 shares. At the time of the stock dividend, the market value per share was $16. The entry to record this dividend is:
Answer: Debit Retained Earnings $40,080; credit Common Stock Dividend Distributable $40,080.
Explanation:
From the question, we have been informed that Eastline Corporation had 12,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 4,080 shares. At the time of the stock dividend, the market value per share was $16.
Based on the information provided, above, the entry to record the dividend will be to debit the retained earnings by $40,080 and then credit the common Stock dividend Distributable by $40,080.
The demand curve is Qd = 1,600 – 50P and the supply curve is Qs = 1,200 + 150P. Calculate the equilibrium quantity. Group of answer choices
Answer:
Equilibrium quantity is 1500
Explanation:
The equilibrium quantity is achieved at a point where the quantity demanded equals quantity supplied.
Qd=Qs
Qd=1,600 – 50P
Qs== 1,200 + 150P
1,600 – 50P=1,200 + 150P
We need to collect like terms
1600-1200=150P+50P
400=200P
P=400/200
P=2
We need substitute 2 for P in any of Qd or Qs
Qs=1200+(150*2)=1500
Development normally stops at about age:
A. 40
B. 25.
C. Development never stops.
D. 5.
Answer:
B. 25.
Explanation:
Normally the life of a human breaks into various stages like infancy, childhood, adolescence, old age ,and adulthood which depends upon the level of age.
Like we can say that in the age of 18 the person is an adult but at the age of 25 he has reached to the level of maturity in term of mental, physical, strength, emotional, etc
And at this level, the development normally stops i.e brain not with the person body
Hence, option b is correct
Answer:
development never stops
Explanation:
our bodies are always changing and always growing to be something different. This includes every 7 years our cells are completely changed so we are practically all new people. option c is also the right answer on apex.
Indicate whether the following changes would cause a shift in the demand curve for Product A and, if so, the direction of the shift.
Change Demand curve shift? Direction of shift?
Increase in price of complementary product Yes or No Increase, decrease or N/A
Increase in the price of the Product A Yes or No Increase, decrease or N/A
Launch of effective advertising campaign for Product Yes or No Increase, decrease or N/A
Answer:
yes decrease
No N/A
Yes, Increase
Explanation:
A complementary good is a good that is consumed together. If the price of the complementary good increases, the quantity demanded of the good would decrease. this would lead to a decrease in demand for product A.
an increase in the price of product A, would increase the quantity demanded. an increase in quantity demanded leads to a movement along the demand curve and not a shift of the demand curve
An effective advertising campaign would increase the visibility of the product and increase the demand for the product. an increase in demand leads to an outward shift of the demand curve.
Nadia Company, a merchandising company, prepares its master budget on a quarterly basis. The following data has been assembled to assist in preparation of the master budget for the second quarter.
a. As of March 31 (the end of the prior quarter), the company’s balance sheet showed the following account balances:
Cash $9,000
Acct Receviable 48,000
Inventory 12,6000
Buildings & Equip. (net) 214,100
Acct. Payable 18,300
Common Stock 190,000
Retained Earnings 75,400
Totals 283,700 283,700
b. Sales for March total 10,000 units. Each month’s sales are expected to exceed the prior month’s results by 5%. The product selling price is $25.00 per unit.
c. Sales are 20% for the cash and 80% on credit. All payments on credit sales are collected in the month following the sale. The accounts receivable at March 31 are a result of March credit sales.
d. Company’s policy calls for a given month’s ending inventory to equal 80% of the next month’s expected unit sales. The March 31 inventory is 8,400 units, which complies with the policy. The purchase price is $15.
e. Monthly selling and administrative expenses are budgeted as follows: salaries and wages, $7500 per month; shipping 6% of sales; advertising, $6,000 per month; other expenses, 4% of sales. Depreciation including depreciation on new assets acquired during the quarter, will be $6,000 for the quarter. Sales representatives’ commissions are 12.5 % of sales and are paid in the month of the sales. The sales manager’s salary will be $3,500 in April and $4,000 per month thereafter.
f. Half a month’s inventory purchases are paid in the month of purchase and half in the following month.
g. Equipment purchases during the quarter will be as follows: April, $11,500; and May, $3,000.
h. Dividends totaling $3,500 will be declared and paid in June.
j. No cash payment for income taxes are to be made during the second calendar quarter. Income taxes will be assessed at 35% for the quarter.
k. Management wants to maintain a minimum cash balance of $8,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total balance of $20,000. The interest rate of these loans is 1% per month, and for simplicity, we will assume that the interest is not compounded. The company would as far as it is able, repay the loan plus accumulated interest at the end of the quarter.
Required: Using the above data, complete the following statements and schedules for the second quarter.
1. Expected cash receipts from customers
2. Expected cash payments for purchases
3. Cash budget
Answer:
Nadia Company
1. Schedule of expected cash receipts from customers :
April May June
Cash 20% $52,500 $55,125 $57,880
Credit 80% 48,000 210,000 220,500
Total receipts $100,500 $265,125 $278,380
2. Schedule of expected cash payments for purchases :
Payment for purchases: April May June
50% (month of purchase) $81,900 $85,995 $90,293
50% (following month) 18,300 81,900 85,995
Total cash payment $100,300 $167,895 $176,288
3. Statement of Cash budget for the second quarter ended June 30:
April May June Total
Beginning cash balance $9,000 ($58,363) ($23,649) $9,000
Cash receipts from customer 100,500 265,125 278,380 644,005
Total cash available $109,500 $206,762 $254,731 $653,005
Cash payments:
Purchases $100,300 $167,895 $176,288 $444,483
Selling & Administrative 76,063 79,516 82,615 238,194
Equipment purchase 11,500 3,000 14,500
Dividends 3,500 3,500
Total cash payments: $187,863 $250,411 $262,403 $700,677
Cash shortfall ($78,363) ($43,649) ($7,672)
Bank overdraft 20,000 20,000 16,000 56,000
Cash balance ($58,363) ($23,649) $8,328 $8,328
Explanation:
a) Data:
Nadia Balance Sheet as of March 31:
Cash $9,000
Acct Receivable 48,000
Inventory 12,6000
Buildings & Equip. (net) 214,100
Total $283,700
Acct. Payable $18,300
Common Stock 190,000
Retained Earnings 75,400
Total $283,700
b) Sales:
Month Quantity Unit Price Total
March 10,000 units $25.00 $250,000
April = 10,500 (10,000 x 1.05) " $262,500
May = 11,025 (10,500 x 1.05) " $275,625
June = 11,576 (11,025 x 1.05) " $289,400
July = 12,155 (11,576 x 1.05) " $303,875
c) Sales Terms:
March April May June
Cash 20% $52,500 $55,125 $57,880
Credit 80% 48,000 210,000 220,500
d) Inventory:
March April May June
8,400 8,820 9,261 9,724
Ending $126,000 $132,300 $138,915 $145,860
Beginning $126,000 $132,000 $138,915
e) Selling & Administrative Expenses
April May June Total
Salaries and wages $7,500 $7,500 $7,500 $22,500
Shipping 15,750 16,538 17,364 49,652
Advertising 6,000 6,000 6,000 18,000
Others 10,500 11,025 11,576 33,101
Depreciation 6,000
Sales commissions 32,813 34,453 36,175 104,441
Sales Manager's Salary 3,500 4,000 4,000 11,500
Total $76,063 $79,516 $82,615
f) Purchases of Inventory
April May June Total
Ending Inventory 8,820 9,261 9,724
Units of Inventory sold 10,500 11,025 11,576
Inventory available for sale 19,320 20,286 21,300
less beginning inventory 8,400 8,820 9,261
Purchases 10,920 11,466 12,039
Cost of purchases x $15 $163,800 $171,990 $180,585
Payment for purchases: April May June
50% (month of purchase) $81,900 $85,995 $90,293
50% (following month) 18,300 81,900 85,995
Total cash payment $100,300 $167,895 $176,288
g) April May June
Equipment purchase $11,500 $3,000
h) Nadia Company's preparation of quarter budgets helps it to foresee cash shortages and make necessary arrangements to meet up with cash obligations. It focuses management efforts to achieve sales and deliver on other perimeters, including the control of expenses. It is important for the master budget to be prepared with inputs from other subsidiary budgets so that management plans ahead.
Suppose the rate of return on short-term government securities (perceived to be risk-free) is about 5%. Suppose also that the expected rate of return required by the market for a portfolio with a beta of 1 is 12%. According to the capital asset pricing model: a. What is the expected rate of return on the market portfolio?
Answer: 12%
Explanation:
The Capital Asset Pricing Model can be used to calculate the expected return of the portfolio using the formula;
Expected Return = Risk-free rate + beta ( market return - risk-free rate)
Expected Return = 5% + 1(12% - 5%)
Expected Return= 5% + 7%
Expected Return = 12%