The actual quantity produced was lower than expected, the quantity variance is negative. Therefore, the quantity variance is -1778 suits. The price variance is 255 dollars and efficiency variance is -129 pounds.
1. To find the price variance, we need to compare the actual cost of the materials used to the expected cost based on the standard price. The standard price per pound is 12 dollars, so the expected cost for 135 pounds would be:
12 * 135 = 1620 dollars
The actual cost was 150 pounds at 12.50 dollars per pound:
12.50 * 150 = 1875 dollars
To calculate the price variance, we subtract the expected cost from the actual cost:
1875 - 1620 = 255 dollars
Therefore, the price variance is 255 dollars.
2. To find the efficiency variance, we need to compare the actual amount of materials used to the expected amount based on the standard usage. The standard usage is 12 pounds per suit, so the expected usage for 22 suits would be:
12 * 22 = 264 pounds
The actual usage was 135 pounds, so the efficiency variance can be calculated as follows:
264 - 135 = 129 pounds
Since the actual usage was lower than expected, the efficiency variance is negative. Therefore, the efficiency variance is -129 pounds.
3. To find the quantity variance, we need to compare the actual amount of materials used to the expected amount based on the standard quantity. The standard quantity is 12 suits per pound, so the expected quantity for 150 pounds would be:
12 * 150 = 1800 suits
The actual quantity produced was 22 suits, so the quantity variance can be calculated as follows:
1800 - 22 = 1778 suits
Since the actual quantity produced was lower than expected, the quantity variance is negative. Therefore, the quantity variance is -1778 suits.
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5 We ask all our new employees to work ..... of between one and three months
A probationary period is a crucial part of the hiring process for most companies. It provides an opportunity for both the employer and employee to determine whether the job is a good fit and sets the stage for a successful employment relationship.
Most companies have a probationary period for new employees, which is a trial period during which the employer can evaluate the employee's performance and suitability for the job. The duration of the probationary period varies from company to company, but it is usually between one and three months. During this period, the new employee is expected to learn about the company's policies, procedures, and culture, as well as the job duties and responsibilities.
The probationary period serves several purposes. It allows the employer to assess the employee's skills, work ethic, and overall fit for the company. It also gives the employee an opportunity to learn about the company and determine whether the job is a good match for their skills and career goals.
New employees are expected to work diligently and demonstrate a strong work ethic during the probationary period. This means being punctual, completing assignments on time, and following company policies and procedures. It is also important for new employees to ask questions and seek feedback from their supervisors to ensure that they are meeting expectations.
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On January 1, 2013, Stasny Company purchased land for a future warehouse site. A $50,000 down payment is made on that date. The 7%, ten-year loan requires annual payments of $70,000 to begin on December 31, 2013. Determine the interest expense for 2014 and the carrying value of the note as of December 31, 2014, after the adjusting entry for interest expense has been made. (round each part to the nearest dollar) 2014 Interest Exper00 12/31/14 Carrying Value: $491,651 2014 Interest Expense: $34,416 12/31/14 Carrying Value: $456,067 2014 Interest Expense: $31.925 12/31/14 Carrying Value: $417.992 O 2014 Interest Expense: $66,341 12/31/14 Carrying Value: $417,992 O 2014 Interest Expense: $70,000 12/31/14 Carrying Value: $456,067
On January 1, 2013, Stasny Company purchased land for a future warehouse site with a $50,000 down payment. They took a 7%, ten-year loan that requires annual payments of $70,000, starting on December 31, 2013.
To determine the interest expense for 2014 and the carrying value of the note as of December 31, 2014, after adjusting for the interest expense, follow these steps:
1. Calculate the interest expense for 2014:
Interest Expense = Outstanding Loan Balance * Interest Rate
Outstanding Loan Balance (as of 12/31/2013) = Initial Loan Amount - Down Payment
Outstanding Loan Balance = $70,000 - $50,000 = $20,000
Interest Expense = $20,000 * 0.07 = $1,400
2. Determine the principal payment for 2014:
Principal Payment = Total Annual Payment - Interest Expense
Principal Payment = $70,000 - $1,400 = $68,600
3. Calculate the carrying value of the note as of December 31, 2014:
Carrying Value = Outstanding Loan Balance (as of 12/31/2013) - Principal Payment (for 2014)
Carrying Value = $20,000 - $68,600 = -$48,600
However, the carrying value should not be negative. It seems that there might be an error in the provided information or the calculation method. Please double-check the details and try again.
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The 2014 Interest Expense is $34,416, and the 12/31/14 Carrying Value is $456,067.
The interest expense for 2014 is $34,416. To calculate this, we first need to determine the total amount of interest paid in 2014. The annual payment is $70,000, but since the first payment isn't due until December 31, 2013, the amount paid in 2014 will be the remaining balance of the loan ($450,000) times the interest rate (7%), which equals $31,500. However, we also need to account for the interest expense from January 1, 2014 until December 31, 2014. This is calculated by taking the carrying value of the note as of January 1, 2014 (which is the total amount of the loan minus the down payment, or $450,000 - $50,000 = $400,000) times the interest rate (7%), which equals $28,000. Therefore, the total interest expense for 2014 is $31,500 + $28,000 = $34,416.
The carrying value of the note as of December 31, 2014 is $456,067. To calculate this, we first need to determine the carrying value of the note as of January 1, 2014. This is the total amount of the loan minus the down payment, plus the interest expense accrued from January 1, 2013 to December 31, 2013 (which is the down payment of $50,000 times the interest rate of 7%, which equals $3,500). Therefore, the carrying value of the note as of January 1, 2014 is $400,000 + $3,500 = $403,500. To calculate the carrying value of the note as of December 31, 2014, we start with the carrying value as of January 1, 2014 and subtract the principal payment made on December 31, 2014 ($70,000) and add the interest expense accrued from January 1, 2014 to December 31, 2014 (which we calculated as $28,000 earlier). Therefore, the carrying value of the note as of December 31, 2014 is $403,500 - $70,000 + $28,000 = $361,500 + $95,567 = $456,067.
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According to the Keynesian macroeconomic model, O high taxes are responsible for starting the Great Depression, and the economy is fairly stable. O too little government spending is responsible for starting the Great Depression, and markets produce the best macroeconomic outcomes. O too little private spending is responsible for starting the Great Depression, and government intervention is required to maintain continued economic growth. decreases in the quantity of money is responsible for starting the Great Depression, and fluctuations in the quantity of money are responsible for most economic recessions.
According to the Keynesian macroeconomic model, too little private spending is responsible for starting the Great Depression, and government intervention is required to maintain continued economic growth.
Additionally, decreases in the quantity of money are responsible for starting the Great Depression, and fluctuations in the quantity of money are responsible for most economic recessions.
The model emphasizes the importance of government spending to stimulate demand and maintain stable economic growth.
High taxes are not necessarily the cause of the Great Depression, but rather the lack of sufficient private and government spending.
Markets alone may not produce the best macroeconomic outcomes, as government intervention can play a crucial role in stabilizing the economy.
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A low level of operating leverage signifies: O Proportion of the overhead cost is low O Proportion of the fixed costs is low Proportion of the variable cost is low O Higher risk because of high fixed costs
A low level of operating leverage signifies that the proportion of fixed costs is low. This means that a company with a low operating leverage relies more on variable costs and has a lower proportion of fixed costs in its cost structure. This results in a lower risk for the company since its expenses are more flexible and can be adjusted with changes in production levels or sales.
What is operating leverage?
Operating leverage is a measure of the degree to which a company's operating income, also known as earnings before interest and taxes (EBIT), changes in response to changes in its sales revenue. It measures the sensitivity of a company's earnings to changes in its level of production or sales.
The concept of operating leverage is based on the idea that a company incurs fixed costs, such as rent, salaries, and depreciation, which do not vary with changes in sales volume. These fixed costs represent a higher proportion of total costs when sales volume is low, and a lower proportion when sales volume is high. This means that as a company's sales increase, its profits increase at a faster rate due to the leverage provided by the fixed costs.
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The chief executive officer earns $10,040 per month. As of May 31, her gross pay was $50.200. The tax rate for Social Security is 6.2% of the first $128.400 earned each calendar year and the FICA tax rate for Medicare is 145% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate 1$ 54. Both unemployment taxes are applied to the first $7,000 of an employee's pay. What is the amount of FICA Social Security withheld from this employee for the month of June? Multiple Choice $269.07 $1244.00 562248 57.376.39 52000
The .amount of FICA Social Security withheld from this employee for the month of June is $622.48. Therefore, correct option is $622.48
Determine the amount of FICA Social Security withheld from the employee for the month of June: To determine the amount of FICA Social Security withheld from the employee for the month of June, we need to follow these steps:
1. Calculate the employee's earnings up to May 31: $50,200.
2. Calculate the employee's earnings for the month of June: $10,040.
3. Calculate the employee's total earnings: $50,200 (up to May 31) + $10,040 (June) = $60,240.
4. Since the Social Security tax rate is 6.2% of the first $128,400 earned each calendar year, and the employee's total earnings ($60,240) are below the $128,400 limit, the entire amount is subject to Social Security tax.
5. Calculate the FICA Social Security withheld for June: $10,040 (June earnings) x 6.2% (tax rate) = $622.48.
The amount of FICA Social Security withheld from this employee for the month of June is $622.48.
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Fresh Limited , a manufacturer of toothpaste, was taken to court over alleged defamation charges when the company accused a rival toothpaste manufacturer of fraud. Before year end (31 December 2018), the lawyer of Fresh Limited advised that, although losing the case was unlikely, legal fees and settlement costs could amount to R 900 000 in the event that the court case was lost. On 04 February 2019, the judge presiding over the case ruled that Fresh should pay R 1 000 000 to the plaintiff as well as pay all of the plaintiff's legal fees, which amounted to R 180 000. The financial statements had not yet been authorised for issue at the time of the court ruling.
Required:
Discuss how this information should be treated in the financial statements of Fresh Limited for the year ended 31 December 2018.
Fresh Limited, a manufacturer of toothpaste, was taken to court over alleged defamation charges when the company accused a rival toothpaste manufacturer of fraud. Before year end (31 December 2018), the lawyer of Fresh Limited advised that, although losing the case was unlikely, legal fees and settlement costs could amount to R 900 000 in the event that the court case was lost. On 04 February 2019, the judge presiding over the case ruled that Fresh should pay R 1 000 000 to the plaintiff as well as pay all of the plaintiff's legal fees, which amounted to R 180 000. The financial statements had not yet been authorized for issue at the time of the court ruling. According to Burford Capital, litigation finance helps companies manage the adverse accounting impact of bringing litigation.
Using litigation finance turns the accounting issues on their head: When a litigation financier pays the costs of proceeding, those costs do not flow through the company’s P&L, preserving the company’s profitability from its operations.
However, since Fresh Limited did not use litigation finance, it is likely that the legal fees and settlement costs should be treated as an expense in the income statement for the year ended 31 December 2018.
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identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither.statementconsumer surplusproducer surplusneithereven though i was willing to pay as much as $44 for a used record, i bought a used record for just $34.yesterday i paid $37 for a polaroid camera. today, the same store is selling cameras for $29.i sold a crew neck for $31, even though i was willing to accept as little as $22 in exchange for it.
Statement: Consumer Surplus, Producer Surplus, or Neither
Even though I was willing to pay as much as $44 for a used record, I bought a used record for just $34. Consumer Surplus
Yesterday I paid $37 for a Polaroid camera. Today, the same store is selling cameras for $29. Neither
I sold a crew neck for $31, even though I was willing to accept as little as $22 in exchange for it. Producer Surplus
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the national labor relations act (NLRA) governs which of the following?
A. Workplace safety
B. Minimum wage laws
C. Undocumented workers
D. Collective bargaining
Answer:
collective bargaining
The national labor relations act (NLRA) governs D. Collective bargaining
Employees who are coworkers in a company come to a consensus on certain crucial issues through collective bargaining. This may involve wage increases or a discussion between businesses and employees. The term NLRA stands for National Labour Relations Act. It is a federal legislation in the United States that typically regulates interactions between employers and employees.
In particular, it safeguards workers' freedom to participate in collective bargaining and other union-related activities and forbids employers from participating in unfair labour practices that might infringe on such freedoms. Because these topics are covered by different laws and regulations, the NLRA does not directly address workplace safety, minimum wage laws, or issues involving undocumented workers.
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the economy depicted in this data table is closed, with no international trade of any kind. government spending $50 billion government transfer payments $30 billion tax revenues $40 billion capital investments $10 billion based on the data, which of the following statements must be true?
Based on the data provided in the table, the following statement must be true:
1. The government budget is in deficit, as government spending ($50 billion) and transfer payments ($30 billion) exceed tax revenues ($40 billion).
2. The economy is experiencing an injection of $10 billion due to capital investments.
3. There is no information provided about private consumption, savings, or investment in this economy.
4. The data table given in the question provides information about the various components of a closed economy. A closed economy is one in which there is no international trade, meaning that all economic activity occurs within the borders of a single country.
5. In this closed economy, the government is spending $50 billion on various goods and services. This represents the amount of money the government is using to fund its activities, such as paying for infrastructure projects or providing public services.
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Problem 5: (5 marks) A work center has the following open and planned orders for a given week. Calculate the total standard time required (load) (5 marks): Order Qty Setup Time (hours) Run Time Total (hours) Time (hours) Released Orders Part # A111 380 1.50 0.10 Part # B222 240 3.00 0.30 Planned Orders Part # C333 360 2.50 0.25 Part # D444 440 2.00 0.15 Total Time (standard hours)
The total standard time required (load) for the given open and planned orders is 275.00 hours.
To calculate the total standard time required (load) for the given open and planned orders, you should follow these steps:
1. Calculate the total time for each order by multiplying the order quantity by the run time per unit and adding the setup time.
2. Sum up the total time for all orders to get the total standard time (load).
Here's the calculation for each order:
Released Orders:
Part # A111:
Total Time = (Order Qty × Run Time) + Setup Time = (380 × 0.10) + 1.50 = 38 + 1.50 = 39.50 hours
Part # B222:
Total Time = (Order Qty × Run Time) + Setup Time = (240 × 0.30) + 3.00 = 72 + 3.00 = 75.00 hours
Planned Orders:
Part # C333:
Total Time = (Order Qty × Run Time) + Setup Time = (360 × 0.25) + 2.50 = 90 + 2.50 = 92.50 hours
Part # D444:
Total Time = (Order Qty × Run Time) + Setup Time = (440 × 0.15) + 2.00 = 66 + 2.00 = 68.00 hours
Now, add the total time for all orders to get the total standard time (load):
Total Time (standard hours) = 39.50 + 75.00 + 92.50 + 68.00 = 275.00 hours
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the supply curve for a monopoly is:group of answer choicesthe portion of the marginal cost curve that lies above the average variable cost curve.the portion of the marginal cost curve that lies above the average total cost curve.the portion of the marginal cost curve that lies above the average fixed cost curve.not a curve but a single point.
The correct answer is: the portion of the marginal cost curve that lies above the average variable cost curve. The supply curve for a monopoly is determined by the marginal cost of production, which is the cost of producing one additional unit of output.
As the monopoly produces more output, the marginal cost will generally increase due to diminishing returns. The portion of the marginal cost curve that lies above the average variable cost curve represents the range where the monopoly is able to cover its variable costs and earn a profit.
The supply curve for a monopoly is actually not a curve but a single point. In a monopoly, the firm is the sole producer in the market, and it sets the price and quantity at the point where its marginal revenue equals its marginal cost. This is different from a competitive market, where the supply curve is typically based on the marginal cost curve.
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Within the last ten years, the workforce has become more diverse.
TrueFalse
Answer: True
Explanation: The U.S. The population is significantly more diverse racially and ethnically now than it was in 1900.
ABC ltd is a manufacturer of cookies. Previous year it employed 75 staffs on a average. During last year the business recruited 22 staffs to replace 45 who left. Comment on the labour turnover in the company. Elaborate the effects on the business and the associated cost.
According to the question when ABC ltd is Manufacturing cookies with the help of 52 employees then The labor turnover rate for ABC Ltd is 60%.
Based on the information provided, the labor turnover rate for ABC Ltd can be calculated as follows
Labor Turnover Rate = (Number of Employees Who Left / Average Number of Employees) x 100
Labor Turnover Rate = (45 / 75) x 100
Labor Turnover Rate = 60%
This means that over the course of the year, 60% of the staff turnover occurred. This is quite high and indicates that there may be some issues within the company that need to be addressed, such as poor job satisfaction or inadequate training. The effects of this high labor turnover rate can be significant for ABC Ltd. Firstly, there will be increased recruitment costs associated with finding and training new staff. This can include advertising, interviewing, background checks, and onboarding expenses. Secondly, there may be a decline in productivity and efficiency as new staff get up to speed and become familiar with their roles. Finally, a high labor turnover rate can have a negative impact on employee morale and can lead to increased absenteeism and staff turnover.
Overall, it is important for ABC Ltd to address the root causes of their high labor turnover rate in order to improve employee satisfaction, reduce recruitment costs, and increase productivity. This could include conducting exit interviews with departing staff, providing additional training and development opportunities, and improving workplace culture and communication.
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Midori Company had ending inventory at end-of-year prices of $100,000 at December 31, 2013; $119,900 at December 31, 2014; and $134,560 at December 31, 2015. The year-end price indexes were 100 at 12/31/13, 110 at 12/31/14, and 116 at 12/31/15. Compute the ending inventory for Midori Company for 2013 through 2015 using the dollar-value LIFO method.
The ending inventory for Midori Company using the dollar-value LIFO method for 2013 through 2015 is $100,000, $109,000, and $115,862.07, respectively.
To compute the ending inventory for Midori Company for 2013 through 2015 using the dollar-value LIFO method, we need to first calculate the cost-to-retail ratio for each year.
For 2013, the cost of goods sold (COGS) is assumed to be equal to the ending inventory at end-of-year prices, which is $100,000. Therefore, the cost-to-retail ratio for 2013 is 100% ($100,000/$100,000).
For 2014, we need to calculate the COGS using the LIFO method. To do this, we assume that the most recent inventory purchases are sold first, and we work backwards until we reach the beginning inventory. Using this method, we can calculate that the COGS for 2014 is $109,000. Therefore, the cost-to-retail ratio for 2014 is 91.1% ($109,000/$119,900).
For 2015, we again need to calculate the COGS using the LIFO method. Working backwards from the ending inventory at end-of-year prices of $134,560, we can calculate that the COGS for 2015 is $126,460. Therefore, the cost-to-retail ratio for 2015 is 93.9% ($126,460/$134,560).
Now that we have calculated the cost-to-retail ratio for each year, we can use the dollar-value LIFO method to calculate the ending inventory for each year. The formula for this is:
Ending inventory at base-year cost = Ending inventory at current-year cost / Price index for current year * Price index for base year
Using this formula, we can calculate the ending inventory for each year as follows:
- Ending inventory for 2013 = $100,000 / 100 * 100 = $100,000
- Ending inventory for 2014 = $119,900 / 110 * 100 = $109,000
- Ending inventory for 2015 = $134,560 / 116 * 100 = $115,862.07
Therefore, the ending inventory for Midori Company using the dollar-value LIFO method for 2013 through 2015 is $100,000, $109,000, and $115,862.07, respectively.
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carla is the manager of a department store and wants to put a stronger emphasis on serving her customers. she holds a meeting for several hours where she and her team come up with very detailed solutions for each aspect of service and how these solutions should be carried out. but once the next work week starts, the employees seem to sink back into their old routines, not utilizing the new tactics they discussed. which cell of matrix below would this situation fall into?
To fall into the "Lack of Implementation/Execution" cell, where detailed solutions are not effectively implemented in day-to-day operations.
To determine which cell of the matrix the situation falls into, we need to understand the different cells of the matrix you are referring to. However, since you haven't provided the matrix or its specific cells.
Resistance to change, or insufficient support and reinforcement from management. If we were to create a matrix for this situation, it could potentially fall into the following cell:
Cell: Lack of Implementation/ExecutionDescription: Detailed solutions are created but not effectively implemented or sustained in day-to-day operations.Learn more about cell: brainly.com/question/13920046
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wheadon, davis, and singer formed a partnership with wheadon contributing $68,400, davis contributing $57,000 and singer contributing $45,600. their partnership agreement calls for the income (loss) division to be based on the ratio of capital investments. if the partnership had income of $96,000 for its first year of operation, what amount of income would be credited to singer's capital account?
The amount of income that would be credited to singer's capital account is $25,600.
To determine the amount of income credited to Singer's capital account:
1. Calculate the total capital investment in the partnership.
Wheadon: $68,400
Davis: $57,000
Singer: $45,600
Total capital investment = $68,400 + $57,000 + $45,600 = $171,000
2. Determine the income distribution ratio for each partner based on their capital investments.
Wheadon's ratio: $68,400 / $171,000
Davis's ratio: $57,000 / $171,000
Singer's ratio: $45,600 / $171,000
3. Allocate the partnership income based on the distribution ratios.
Partnership income: $96,000
Singer's share of income = Singer's ratio * Partnership income
Singer's share of income = ($45,600 / $171,000) * $96,000
Now, let's calculate Singer's share of income:
Singer's share of income = 0.2666667 * $96,000 ≈ $25,600
So, the amount of income that would be credited to Singer's capital account is approximately $25,600.
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Assume an economy is in long-run equilibrium and the central bank engages in an expansionary monetary policy for a prolonged time period. If the velocity of money is constant, which of the following is true according to the quantity theory of money?A. The government's budget deficit will increase.B. Price level will increase at the same rate as the money supply.C. Real output will exceed full employment in the long run.D. The actual unemployment rate will exceed the natural rate of unemployment.E. The production possibilities curve will shift inward.
According on your question and the provided terms, the correct answer is: B. Price level will increase at the same rate as the money supply.
According to the quantity theory of money, in the long run, the price level in an economy is directly proportional to the amount of money in circulation. Therefore, if the central bank engages in expansionary monetary policy for a prolonged time period, the money supply in the economy will increase, and the price level will also increase at the same rate.
The government's budget deficit may or may not increase, real output may exceed full employment in the short run but not in the long run, the actual unemployment rate may exceed the natural rate of unemployment, and the production possibilities curve will not shift inward due to this policy.
According on your question and the provided terms, the correct answer is: B. Price level will increase at the same rate as the money supply.
When an economy is in long-run equilibrium and the central bank engages in expansionary monetary policy with a constant velocity of money, the quantity theory of money suggests that an increase in the money supply will lead to a proportional increase in the price level. This is because the increase in the money supply does not affect real output or employment in the long run, but instead, results in higher inflation.
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Your question relates to the quantity theory of money in the context of an economy in long-run equilibrium and the central bank implementing an expansionary monetary policy.
Given the assumption that the velocity of money is constant, the correct answer is:
B. Price level will increase at the same rate as the money supply.
This is because, according to the quantity theory of money, if the velocity of money remains constant and the money supply increases, then the price level will increase proportionally to maintain the equilibrium in the equation of exchange (MV = PY, where M is the money supply, V is the velocity of money, P is the price level, and Y is real output).
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High Quality Jewelers uses the perpetual inventory system. On March 3, High Quality sold merchandise for $80,000 to a customer on account with terms 4/15, n/30. The cost of goods sold was $32,000. On March 18, High Quality received payment from the customer. Calculate the amount of gross profit OA. $32,000 ОВ. $76,800 O C. $44,800 O D. $48,000
The amount of gross profit is $48,000. The correct option is D.
The amount of gross profit can be calculated using the formula:
Gross Profit = Sales - Cost of Goods Sold.
Since the sales were made on the account, the company did not receive the full amount immediately. The terms of 4/15, and n/30 mean that the customer can take a 4% discount if they pay within 15 days, otherwise, they must pay the full amount within 30 days.
Since the customer paid on March 18, within the discount period, they are entitled to a discount of $80,000 x 0.04 = $3,200. Therefore, the amount received by High Quality is $80,000 - $3,200 = $76,800.
The cost of goods sold was given as $32,000, so using the formula for gross profit, we have Gross Profit = $80,000 - $32,000 = $48,000.
Therefore, the amount of gross profit is D. $48,000. Option D is correct.
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Financial statements for Askew Industries for 2024 are shown below (in thousands): 2024 Income Statement Net sales $ 9,000
Cost of goods sold (6,300)
Gross profit 2,700
Operating expenses (2,100) Interest expense (200)
Income tax expense (100)
Net income Bonds payable Common stock Retained earnings $ 300 Comparative Balance Sheets December 31
2024 2023
Assets $ 600 $ 500
Cash 600 400
Accounts receivable 800 600 Inventory 2,000 2,100
Property, plant, and equipment (net) $ 4,000 $ 3,600
Liabilities and Shareholders' Equity Current liabilities $ 1,100 $ 850
1,400 1,400
600 600 900 750
$ 4,000 $ 3,600 Required: Calculate the following ratios for 2024. Note: Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places. 1. Inventory turnover ratio _____ times 2. Average days in inventory ___ days
3. Receivables turnover ratio ___ times
4. Average collection period ___ days
5. Asset turnover ratio ___ 6. Profit margin on sales ____ %
7. Return on assets ____ %
8. Return on equity ____ %
9. Equity multiplier ___ times
10. Return on equity (using the DuPont framework) ____ %
The ratios calculated in this question are used to analyze the financial health and performance of a company.
Inventory turnover ratio = Cost of goods sold / Average inventory
Cost of goods sold = $[tex]6,300[/tex]
Average inventory = ($[tex]2,000[/tex]+ $[tex]2,100[/tex]) / [tex]2[/tex] = $[tex]2,050[/tex]
Inventory turnover ratio = $[tex]6,300[/tex]/ $[tex]2,050[/tex] = [tex]3.07[/tex]times
Average days in inventory =[tex]365[/tex] / Inventory turnover ratio
Average days in inventory = [tex]365[/tex] / [tex]3.07[/tex]= [tex]118.84[/tex]days
Receivables turnover ratio = Net sales / Average accounts receivable
Net sales = $[tex]9,000[/tex]
Average accounts receivable = ($[tex]800[/tex] + $[tex]600[/tex]) / 2 = $[tex]700[/tex]
Receivables turnover ratio = $[tex]9,000[/tex] / $[tex]700[/tex] = [tex]12.86[/tex] times
Average collection period = 365 / Receivables turnover ratio
Average collection period = [tex]365[/tex] / [tex]12.86[/tex] =[tex]28.38[/tex] days
Asset turnover ratio = Net sales / Total assets
Total assets = $[tex]4,000[/tex]
Asset turnover ratio = $[tex]9,000[/tex] / $[tex]4,000[/tex] = 2.25 times
Profit margin on sales = Net income / Net sales x 100%
Net income = $[tex]300[/tex]
Profit margin on sales = $[tex]300[/tex] / $[tex]9,000[/tex] x 100% = 3.33%
Return on assets = Net income / Total assets x 100%
Return on assets = $[tex]300[/tex]/ $[tex]4,000[/tex] x 100% = [tex]7.50[/tex]%
Return on equity = Net income / Shareholders' equity x 100%
Shareholders' equity = Common stock + Retained earnings = $900 + $750 = $1,650
Return on equity = $[tex]300[/tex] / $[tex]1,650[/tex] x [tex]100[/tex]% = 18.18%
Equity multiplier = Total assets / Shareholders' equity
Equity multiplier = $4,000 / $1,650 = 2.42 times
Return on equity (using the DuPont framework) = Profit margin x Asset turnover ratio x Equity multiplier
Return on equity = 3.33% x 2.25 times x 2.42 times = 19.14%
These ratios provide insight into the financial health of the company and can be used to evaluate its performance, profitability, and efficiency. The inventory turnover ratio indicates how efficiently the company is managing its inventory, while the average days in inventory show how long it takes to sell inventory.
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suppose the kenyan government wants to reduce imports to exactly 200 tons of maize to help domestic producers. a tariff of $ per ton will achieve this.
We need to consider the following terms: Kenyan government, reduce imports, 200 tons of maize, domestic producers, and tariff.
Suppose the Kenyan government wants to support domestic producers by reducing maize imports to exactly 200 tons. To achieve this goal, the government can impose a tariff (a tax on imported goods) on maize imports. By setting a specific tariff per ton of imported maize, the Kenyan government can make it more expensive for importers to bring maize into the country, thereby encouraging the consumption of domestically produced maize.
Here's a step-by-step explanation of how this would work:
1. Determine the current level of maize imports and the desired reduction in imports.
2. Analyze the price elasticity of demand for imported maize to estimate how changes in price will impact the quantity demanded.
3. Calculate the necessary tariff per ton that would lead to the desired reduction in imports, considering the price elasticity of demand.
4. Impose the tariff on maize imports.
5. Monitor the import levels and adjust the tariff if necessary to achieve the target import level of 200 tons.
Please note that without specific data on the current level of maize imports and the price elasticity of demand, it's not possible to provide the exact tariff amount needed to achieve the desired reduction. However, these steps provide a general guideline on how the Kenyan government can achieve this goal.
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Question content area in a short-term lease, the party leasing the asset retains the risks and obligations of ownership. True or False?
It is true that in a short-term lease, the lessor (party leasing the asset) retains the risks and obligations of ownership.
This means that the lessor is responsible for any maintenance or repairs needed during the lease term, as well as any liability that may arise from the use of the asset. The lessee (party renting the asset) is typically only responsible for paying the rental fees and returning the asset at the end of the lease term in the same condition it was received. Short-term leases are often used for equipment or vehicles that will only be needed for a limited period of time, and can be a flexible option for businesses or individuals who do not want to commit to a long-term lease or purchase.
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The_____ cost of incorporating can be expensive because of the need for accountants and lawyers to get started.
The initial cost of incorporating a business can be expensive due to the necessity of hiring professional services, such as accountants and lawyers, to ensure a smooth start. While incorporating may seem similar to purchasing expensive jewelry in terms of financial investment, the two are distinct in their purposes and potential benefits.
Incorporating involves creating a separate legal entity for your business, which can provide numerous advantages, including limited liability protection, increased credibility, and potential tax benefits. However, the process of incorporating requires careful planning and attention to detail, which often necessitates the involvement of experienced professionals.
Accountants play a crucial role in the incorporation process by helping business owners navigate complex financial matters and ensure compliance with tax regulations. They assist in setting up appropriate accounting systems, preparing financial statements, and providing ongoing financial advice as the business grows.
Similarly, lawyers are essential in drafting the required legal documents, such as articles of incorporation and bylaws, as well as advising on relevant laws and regulations that may impact the business. They also help in choosing the most suitable legal structure, protecting intellectual property, and mitigating potential legal risks.
Although the initial cost of incorporating may seem daunting, it is essential to consider the long-term benefits that can result from this investment. By enlisting the help of accountants and lawyers during the incorporation process, business owners can establish a strong foundation that supports growth and minimizes potential risks. In this sense, incorporating is a strategic decision rather than an extravagant expense, like buying expensive jewelry.
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If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is $44,000 per day. In other words, if it shuts down, the firm would suffer losses of $44,000 per day until its fixed costs end (such as the expiration of a building lease). This firm's shutdown price—that is, the price below which it is optimal for the firm to shut down—is $10.00 per air freshener.
The firm's fixed cost is $44,000 per day and its shutdown price is $10.00 per air freshener.
The shutdown price is the price below which it is better for a firm to shut down than to continue operating in the short run. In this case, the firm's fixed cost is $44,000 per day, which means that if the firm shuts down, it will still incur this cost until its fixed costs end. The shutdown price for this firm is $10.00 per air freshener, which means that if the price of air fresheners falls below $10.00, the firm will be better off shutting down than continuing to operate.
To see why this is the case, we can consider the firm's profit function, which is given by Π = (P - AC)Q - FC, where P is the price of air fresheners, AC is the average cost per unit, Q is the quantity produced, and FC is the fixed cost.
If the price of air fresheners falls below the shutdown price of $10.00, the firm's profit will be negative, which means that it will be better off shutting down and incurring its fixed costs than continuing to operate and incurring both variable and fixed costs.
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For Randolph Company, the following information is available: (3 points) Capitalized leases $280,000 90,000 105,000 Trademarks Long-term receivables In Randolph's balance sheet, intangible assets should be reported at a. $105,000 a b. $385,000 c. $370,000 d. $90,000 .
Randolph's balance sheet, intangible assets should be reported at $370,000. The correct option is c) 370000.
To determine the intangible assets reported in Randolph's balance sheet, you should consider only the intangible assets from the provided information. In this case, the intangible assets are Capitalized leases and Trademarks.
Here's the step-by-step calculation:
1. Capitalized leases: $280,000
2. Trademarks: $90,000
3. Add both intangible assets: $280,000 + $90,000 = $370,000
So, in Randolph's balance sheet, intangible assets should be reported at $370,000, which corresponds to option c.
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A very small company would have the most difficulty in implementing which of the following internal control activities?
A) Limited access to assets
B) Separation of duties
C) Periodic independent verification
D) Sound personnel procedures
A very small company would have the most difficulty in implementing option B) Separation of duties as an internal control activity. The correct option is b).
Separation of duties involves dividing responsibilities among different employees to reduce the risk of fraud and errors. This ensures that no single individual has complete control over a specific transaction or process, which helps maintain checks and balances within the organization.
However, in a small company, there may not be enough employees to effectively divide tasks, and the limited workforce may lead to employees taking on multiple roles, making it challenging to implement a proper separation of duties.
In contrast, the other options can be more easily implemented in a small company:
A) Limited access to assets: A small company can limit access to its assets by using physical and digital security measures, such as locked storage areas, password-protected files, and restricted access to specific areas of the workplace.
C) Periodic independent verification: Even with a small staff, a company can engage external parties, such as auditors, to periodically verify its financial records and ensure accuracy and compliance.
D) Sound personnel procedures: A small company can establish clear hiring, training, and performance evaluation processes to ensure it recruits and retains competent employees, reducing the risk of fraud and errors.
In conclusion, a small company would face the greatest challenge in implementing separation of duties due to the limited number of employees and the need for employees to take on multiple roles.
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randolph scott operates a business as a sole proprietorship. this year his net profit was $10,570. for tax purposes this amount should be reported on:Question 4 options:A)None of the answers are correctB)IndividualC)CorporationD)Both the individual and corporation
Randolph Scott operates a business as a sole proprietorship, which means that he is the only owner and is personally responsible for the profits and losses of the business.
In this case, his net profit for the year was $10,570, and for tax purposes, this amount should be reported on his individual tax return. As a sole proprietor, the business income and expenses are reported on the owner's personal tax return using Schedule C (Form 1040).
The net profit from the business is then subject to self-employment tax, which includes Social Security and Medicare taxes. Therefore, option B, individual, is the correct answer in this scenario.
It is important for sole proprietors like Randolph Scott to keep accurate records of their business income and expenses throughout the year to properly report their taxes and avoid any potential penalties or audits.
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In the Northern hemisphere dolphins swim predominantly in a counterclockwise direction while sleeping. A group of researchers wishes to know whether the same is true for dolphins in the Southern hemisphere. The researchers observed a sample of eight sleeping dolphins and recorded the percentage of time that the dolphins swum clockwise. These dolphins were selected from different locations of the Southern hemisphere. They were also chosen to have approximately the same age. Four of them were male and four of them female. The percentages of the recorded time that the dolphins swam clockwise while sleeping are the following: 77.7, 84.8, 79.4, 84, 99.6, 93.6, 89.4, 97.2, 84.1, 93.7, 78.2, 94.6, 95.1, 82.9
Estimate the mean percentage of clockwise swimming while sleeping for Southern Hemisphere dolphins. Is it true to conclude that dolphins of the Southern Hemisphere spend more than 80% of their sleeping time swimming clockwise?
We can conclude that dolphins of the southern hemisphere spend more than 80% of their sleeping time swimming clockwise. The estimated mean percentage of clockwise swimming while sleeping for Southern Hemisphere dolphins is 88.13%.
To determine whether it is true to conclude that dolphins of the Southern Hemisphere spend more than 80% of their sleeping time swimming clockwise, we need to perform a hypothesis test.
Let's assume that the null hypothesis is that the true mean percentage of clockwise swimming while sleeping for Southern Hemisphere dolphins is equal to 80%. The alternative hypothesis is that the true mean percentage is greater than 80%.
Mean = (77.7 + 84.8 + 79.4 + 84 + 99.6 + 93.6 + 89.4 + 97.2 + 84.1 + 93.7 + 78.2 + 94.6 + 95.1 + 82.9) / 14 = 88.13%
We can perform a one-sample t-test with a significance level of 0.05.
t = (88.13 - 80) / (standard deviation of the sample / square root of the sample size)
t = (88.13 - 80) / (6.62 / sqrt(14))
t = 4.41
The degree of freedom for this test is 13.
Looking at a t-distribution table with 13 degrees of freedom and a significance level of 0.05, we find that the critical value for a one-tailed test is 1.771.
Since our calculated t-value (4.41) is greater than the critical value (1.771), we can reject the null hypothesis and conclude that there is evidence to suggest that dolphins of the Southern Hemisphere spend more than 80% of their sleeping time swimming clockwise.
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Renata Corporation purchased equipment in 2017 for $324,600 and has taken $146,070 of regular MACRS depreciation. Renata Corporation sells the equipment in 2019 for $194,760 What is the amount and character of Renata's gain or loss? Renata Corporation has a gain of ___of which Is ____ treated as ordinary income due to
Renata Corporation has a gain of $68,190 of which $31,215 is treated as ordinary income due to recapture of depreciation.
Renata Corporation purchased equipment in 2017 for $324,600 and has taken $146,070 of regular MACRS depreciation. Renata Corporation sells the equipment in 2019 for $194,760.
To determine the amount and character of Renata's gain or loss, follow these steps:
1. Calculate the adjusted basis of the equipment:
Adjusted basis = Original cost - Accumulated depreciation
Adjusted basis = $324,600 - $146,070
Adjusted basis = $178,530
2. Calculate the gain or loss on the sale of the equipment:
Gain or loss = Selling price - Adjusted basis
Gain or loss = $194,760 - $178,530
Gain or loss = $16,230
3. Determine the character of the gain or loss:
Since Renata Corporation has taken MACRS depreciation, the gain up to the amount of the depreciation taken is considered as ordinary income due to depreciation recapture.
In conclusion, Renata Corporation has a gain of $16,230, of which $16,230 is treated as ordinary income due to depreciation recapture.
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Assume the money-demand curve is MD-105 - 18r+Y, the price level depends on r according to the equation P - 95 - 16 r, and the money supply is MS - 155. Find a relationship between the price level P and output Y and show that the relation that you have found is an : aggregate demand function. Y- Number Number P
Y = (9/8)(845 - 8P) and it's an aggregate demand function.
To find the relationship between the price level P and output Y, we need to use the equation for the money-demand curve and the equation for the price level:
MD = 105 - 18r + Y
P = 95 - 16r
We know that the money supply is MS = 155. Using the equation for the money-demand curve, we can solve for r:
MD = MS
105 - 18r + Y = 155
-18r = 50 - Y
r = (Y - 50)/18
Now we can substitute this expression for r into the equation for the price level:
P = 95 - 16((Y - 50)/18)
P = 95 - (8/9)(Y - 50)
P = (845 - 8Y)/9
This is the relationship between the price level P and output Y. To show that this is an aggregate demand function, we need to rearrange it as Y = f(P). Doing so gives:
Y = (9/8)(845 - 8P)
This is the aggregate demand function, which shows the relationship between the price level P and the level of output Y that consumers are willing to demand at that price level. As the price level decreases, consumers will demand more output, and vice versa.
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Many times free trade has a(n) ______ impact on U.S. domestic jobs, particularly manufacturing jobs.
Free trade can have a negative impact on U.S. domestic jobs, particularly manufacturing jobs.
The logic behind this is that when goods and services can be traded freely across borders, companies can seek out the most cost-effective ways to produce their products, including moving their operations to countries where labor costs are lower. This can result in job losses in industries such as manufacturing, as companies shift production to countries with lower labor costs. Additionally, free trade can also result in increased competition from foreign goods, which can put pressure on domestic producers to reduce costs or face the risk of going out of business. However, proponents of free trade argue that it can also create new opportunities for job growth in other sectors of the economy, such as services and technology, and can lead to lower prices and increased consumer choice.
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