The Gerding Company discovered these errors made in year 3: Failed to record Unearned Revenue: $15 Failed to record Accrued Interest Expense: $7 Year 4 Net Income will be:

Answers

Answer 1

Answer:

Overstated $8

Explanation:

Calculation for Gerding Company Net income

Using this formula

Net income =Failure to record Unearned Revenue - Failure record Accrued Interest Expense

Let plug in the formula

Net income =$15-$7

Net income =$8

Therefore Gerding Company Net income will be an overstated of the amount of $8


Related Questions

One implication of the bird-in-the-hand theory of dividends is that a given reduction in dividend yield must be offset by a more than proportionate increase in growth in order to keep a firm's required return constant, other things held constant.
a. True
b. False

Answers

Answer:

False ANSWER: True o One implication of the bird-in-the-hand theory of dividends is that a given reduction in dividend yield must be ...

Explanation:

follow mw

Money can be many things, but it is NOT Group of answer choices a financial liability liguid illiguid a financial asset

Answers

Answer:

illiquid

Explanation:

Liquidity refers to how fast an asset can be converted to cash. Money is already cash, so it is the most liquid financial asset

On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $120,000, and its estimated useful life was four years or 1,150,000 cuttings, after which it could be sold for $5,000.
Required
a. Calculate each year’s depreciation expense for the machine's useful life under each of the following depreciation methods (round all answers to the nearest dollar):
1. Straight-line.
2. Double-declining balance.
3. Units-of-production. (Assume annual production in cuttings of 280,000; 430,000; 360,000; and 80,000.)
1. Straight-Line
Year Depreciation
Expense
2015 $Answer
2016 Answer
2017 Answer
2018 Answer
2. Double-declining balance
Year Depreciation
Expense
2015 $Answer
2016 Answer
2017 Answer
2018 Answer
2019 Answer
3. Units of Production
Year Depreciation
Expense
2015 $Answer
2016 Answer
2017 Answer
2018 Answer
b. Assume that the machine was purchased on July 1, 2015. Calculate each year’s depreciation expense for the machine's useful life under each of the following depreciation methods:
1. Straight-line.
2. Double-declining balance.
1. Straight-Line
Year Depreciation
Expense
2015 $Answer
2016 Answer
2017 Answer
2018 Answer
2019 Answer
2. Double-declining balance (Round answers to the nearest whole number, when appropriate.)
Year Depreciation
Expense
2015 $Answer
2016 Answer
2017 Answer
2018 Answer
2019 Answer

Answers

Answer:

Explanation:

Depreciation is the systematic allocation of the cost of a machine over its useful lifetime.

There are different types of depreciation like the straight line , double declining  and the units of production method.

Workings

Depreciable amount = 120,000-5000 = 115,000

Useful life = 4 years

Depreciation rate = 115000/4 = 25% = 28,750

                                              2015      2016       2017         2018

Straight line depreciation    28,750  28,750   28,750    28,750

Double declining

Double declining rate = 25%*2 = 50%

2015 = 50% * 115,000= 57,500

2016

Opening book value = 115,000-57,500 = 57500

Depreciation = 57,500*50% = 28,750

2017

Opening book value = 57500-28,750 =28750

Depreciation = 50%*28,750 =14,375

2018

Opening book value   28750-14375 = 14375

Depreciation = 14375*50% = 7188

Units of production

2015 = 280000/1150,000*115,000 = 28,000

2016 =430,000/1150000*115000 = 43,000

2017= 360000/1150000*115000 = 36,000

2018 = 80,000/1150000*115000 = 8000

B

IF the machine was bought on July 1, 2015

Straight line depreciation

2015 = (25%*115000 ) /2 = 14,375

2016 =25%* 115,000 = 28,750

2017 = 25%*115000 = 28750

2018 = 25%*115,000 =28750

2019 =(25%*115000)/2 = 14,375

Double declining method

2015

(115,000*50,000)/2 =28750

2016

Opening book value =115,000-28750 =86250

Depreciation = 50%*86250 = 43,125

2017

Opening book value =86250-43125 =43125

Depreciation = 43,125*50% = 21,563

2018

Opening book value

43125-21563 =21562

Depreciation = 21562*50% =10,781

2019

Opening book value = 21562-10781 =10781

Depreciation = 50%*10781 = 5391

Answer:

um... im actually finna work this out its interesting

Explanation:

The trial balance for Skysong, Inc. appears as follows: Skysong, Inc. Trial Balance December 31, 2022 Cash $280 Accounts Receivable 480 Prepaid Insurance 75 Supplies 166 Equipment 3680 Accumulated Depreciation, Equipment $550 Accounts Payable 353 Common Stock 1100 Retained Earnings 1290 Service Revenue 2768 Salaries and Wages Expense 920 Rent Expense 460 $6061 $6061 If, on December 31, 2022, the insurance still unexpired amounted to $18, the adjusting entry would contain a:

Answers

Answer:

Debit Insurance expenses for $57

Credit Prepaid insurance for $57

Explanation:

From the Trial Balance, Prepaid Insurance is $75. Since on December 31, 2022, the insurance still unexpired amounted to $18, the insurance expenses for the year can therefore be calculated as follows:

Insurance expenses = $75 - $18 = $57

The adjusting entries will therefore be as follows:

Particulars                             Dr ($)                   Cr ($)    

Insurance expenses                57

Prepaid insurance                                               57

(To record insurance expenses for the year.)                

Note that the amount of $18 unexpired insurance will now be the Prepaid insurance that will appear as an asset under the Current Asset in the balance sheet, while the $57 insurance expenses will be charged as an expense in the income statement.

A Plus Appliances sells dishwashers with a fouryear warranty. In​ 2019, sales revenue for dishwashers is . The company estimates warranty expense at ​% of revenues. What is the total estimated warranty payable of A Plus Appliances as of December​ 31, 2019? A Plus Applicances began operating in 2019.​ (Round your final answer to the nearest​ dollar.)

Answers

A Plus Appliances sells dishwashers with a four-year warranty. In 2019, sales revenue for dishwashers is $94,000. The company estimates warranty expense at 4.5% of revenues. What is the total estimated warranty payable of A Plus Appliances as of December 31,2019? A Plus Appliances began operating in 2019. (Round your final answer to the nearest dollar.)

Answer:

$4230

Explanation:

Given that, the sales revenue to the dishwashers is equal to $94,000

Also the company estimated  warranty expense cost is equal to 4.5% of revenues,

Thus, the estimated warranty payable can be determined by the following formula:

Annual sales revenue for the dishwashers * warranty expense revenues

= $94,000 * 4.5% = $94,000 * 0.045

= $4230

Hence, the total estimated warranty payable of A Plus Appliances as of December​ 31, 2019 = $4230

Fernando Designs is considering a project that has the following cash flows and WACC data. What is the project's discounted payback period? (6 points) What is the project’s modified internal rate of return?

Answers

Answer:

Discounted Payback period 3 years

Modified Internal rate of return 4.833%

Explanation:

Fernando Designs has following cash flows ,

year 1 : -$900

Year 2 : $500

Year 3 : $500

Year 4 : $500

Using 10% discount factor the cashflows will be,

discounted values

Year 1 : -900

Year 2 : 454.54

Year 3 : 445.45

Year 4 : 4132231

Payback period is -900 + 454.54 +445.45 = 3 years.

Modified Internal rate of return; [tex]\sqrt[n]{\frac{FV of cash inflows}{PV of cash outflow} }[/tex]

[tex]\sqrt[4]{\frac{1314}{900} }[/tex] = 4.833%

A customer subscribes to a $10,000 limited partnership interest. The commission is $1,000. The up-front costs are $500 for legal expenditures, and $500 for organization costs. What is the customer's beginning tax basis

Answers

Answer: customer's beginning tax basis =  $10,000

Explanation:

Customer's beginning tax basis are the initial cost of the partnership for commission legal and organizational fees and these are not deductible from the cost basis.

Given: A customer subscribes to a $10,000 limited partnership interest.

That means initial cost = $10,000

So, the customer's beginning tax basis =  $10,000

You short 200 contracts of a call option on Stock XYZ. The contract multiplier is 100, i.e. each contract is on 100 shares of the stock.
In addition, you hold the following positions as of the end of previous trading day: 15,559 shares of the underlying stock; and $809,608 in debt.
The XYZ stock price is $51 right now. The risk-free interest rate is 4% per year. There are 252 trading days in a year.
Using the Black-Scholes model, you establish that the total delta of your option position is
-13,495
You adjust your hedge to bring your shareholding to match the new option delta. Which of the following is correct for your DEBT account, after you make the necessary adjustments?
a. $809,608 - (15,559 – 13,495)*51 = 704,344
b. $809,608e(0.04*1/252) + (15,559 – 13,495)*51 = 915,000
c. $809,608e(0.04*1/252) – (15,559 – 13,495)*51 = 703,932
d. $809,608 + (15,559 – 13,495)*51 = 914,872

Answers

Answer:

c. $809,608e(0.01*1/252) - (15,559 - 13,495) *51 = 703,932

Explanation:

Black Scholes Model is a mathematical model for pricing a contract of an option. It is best suited for dynamic financial market. The model determines the price of an option contract after incorporating the effects of volatility. In the given scenario there are 200 contracts of a call option. The trading days are 252 in the year and risk free interest rate is 4% prevailing in the market.

Ariel T. Corporation reported the following data for the month of February:

Inventories: Beginning Ending
Raw materials (Direct and Indirect) $40000 $24000
Work in process $23000 $17000
Finished goods $50000 $72000

Additional information:
Raw materials purchases $63000
Direct labor cost $73700

Manufacturing overhead cost actually incurred: $55000
Raw materials included in manufacturing overhead costs incurred as indirect materials $5000. Manufacturing overhead cost applied to Work in Process $48000.

Required:
The adjusted cost of goods sold that appears on the income statement for February is:________

Answers

Answer:

Cost of goods sold = $191,700

Explanation:

a) Cost of production:

Beginning Inventory: Raw Materials  $40,000

Purchase of Raw materials                $63,000

Ending inventory: Raw materials     ($24,000)

Cost of raw materials used              $79,000

Beginning Work in process     $23,000

Cost of raw materials used     $79,000

Direct labor cost                       $73,700

Manufacturing overhead        $55,000

less Ending Work in process ($17,000)

Cost of production               $213,700

Beginning Finished goods $50,000

Cost of production            $213,700

Ending Finished goods     ($72,000)

Cost of goods sold           $191,700

b) The adjusted cost of goods sold takes into consideration the cost of raw materials used, the direct labor costs, and the manufacturing overhead, before adjusting for the beginning inventory and ending inventory.

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 8%. The probability distribution of the risky funds is as follows: Expected Return Standard Deviation Stock fund (S) 20 % 30 % Bond fund (B) 12 15 The correlation between the fund returns is 0.10. a-1. What are the investment proportions in the minimum-variance portfolio of the two risky funds. (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.) a-2. What is the expected value and standard deviation of the minimum variance portfolio rate of return? (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.)

Answers

The expected value and standard deviation of the minimum variance portfolio rate of return are 16.20% and 42.61% respectively.

The same old deviation of a portfolio measures how a good deal of the funding returns deviate from the suggestion of the opportunity distribution of investments. placed certainly, it tells traders how a good deal the investment will deviate from its anticipated return.

The same old deviation of the portfolio is usually the same to the weighted average of the same old deviations of the property in the portfolio. A high fashionable deviation in a portfolio indicates a high hazard as it suggests that the profits are especially volatile and unstable.

calculation:-

Weight of Stock =( (17%-5.6%)*40%^2 - (8%-5.6%)*(46%*40%*0.16))/((17%-5.6%)*40%^2 +  (8%-5.6%)*46%^2 - (17%-5.6%+8%-5.6% )*(46%*40%*0.16))

Weight of Stock = 0.9106

Weight of Bond = 1- 0.9106= 0.0894

Portfolio invested in the stock = 91.06%

Portfolio invested in the bond = 8.94%

The expected return of portfolio = Weight of Stock* E(rs) + Weight of Bond *E(rb)

Expected return of portfolio = 91.06%*17 +8.94%*8

Expected return of portfolio = 16.20%

The standard deviation of Portfolio = (Weight of Stock^2 * SD of Stock^2 + Weight of Bond^2 * SD of Bond^2 + 2* weight of Stock*Weight of Bond* COV(S, B))^(1/2)

Standard deviation of Portfolio = (0.9106^2*46%^2 + 0.0894^2*40%^2 + 2*0.9106*0.0894*(46%*40%*0.16))^(1/2)

Standard deviation of Portfolio = 42.61%

Learn more about the Standard deviation of a Portfolio here:-https://brainly.com/question/17191184

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3. When Blackstone investment company borrowed funds to buy out the stockholders of Busch Entertainment, it was participating in a(n)

Answers

Answer: c. Leveraged Buyout

Explanation:

A Leveraged buyout as the term suggests, is when a buyout is sponsored mainly by the use of debt. In Business Leveraged Buyouts usually occur when either the management, employees or private investors buys out or attempts to buy out the Shareholders of a company by using debt funding so that they can then own the company. The debt is acquired by using both assets of the company being bought and that of the company buying (unless they do not have any) as collateral.  

When Blackstone investment company borrowed funds to buy out the stockholders of Busch Entertainment, it was participating in a Leveraged Buyout.

he ability to hire, motivate, and retain human capital is an example of ________ capabilities in the resource-based view of the firm.

Answers

Answer:

Organizational capabilities

Explanation:

The ability to hire, motivate, and retain human capital is an example of organizational capabilities in the resource-based view of the firm.

An organizational capability is the ability of a firm to manage resources, such as it's employees, effectively which will give them an edge over competitors. Organizational capabilities differntiates a firm from competitors.

Tony, a hateful, disgruntled, business law teacher notices that a student, Peter, who is past the age of majority, has a nice motorcycle that is for sale. Peter has struggled through school, is in his last semester, and needs to pass business law in order to graduate. Tony tells Peter that he would like to see Peter pass and, in the next sentence, says that he wants to buy the motorcycle for $100, a price far below the value of the motorcycle. Peter asks if Tony is serious about the price, and Tony replies, "I have the power here! Take it or leave it!" Tony proceeds to draw up a contract for the sale of the motorcycle for $100 which Peter signs. Peter does some research and finds that Tony has had several arrests for driving under the influence in a nearby town. As an act of revenge, Peter tells Tony that unless Tony sells Peter his new Mustang convertible for $50, he is publishing the facts about the arrests in the school newspaper. Tony reluctantly agreed to the deal. Which of the following is true if Tony seeks to rescind the contract for the sale of the Mustang?
A. Tony may rescind the contract on grounds of duress.
B. Tony may rescind the contract on grounds of misappropriation of name or likeness.
C. Tony may rescind the contract on grounds of fraud.
D. Tony may not rescind the contract because truth is involved.
E. Tony may rescind the contract on grounds of defamation.

Answers

Answer: A. Tony may rescind the contract on grounds of duress.

Explanation:

For contracts to be considered enforceable, a key factor is that the parties involved must have entered into the agreement of their own accord and free will. Therefore Duress, which denies a person of that free will, becomes a reason why a contract can be voided.

Tony sold Peter the Mustang convertible because Peter had threatened to release details that Tony would rather were kept private so Tony capitulated and sold the Mustang. Had Peter not threatened him, Tony would not have sold the car. This shows that Tony only sold the car under duress and as such can void the contract.

A newspaper advertisement for Cashmere Closet states "This Saturday 9 a.m., 1 Red Cashmere Scarf, worth $299.95… $10.00 First Come First Served." Which of the following statements is false?
A. The ad is clear and specific about what was being offered and asked for in exchange.
B. The ad lacks intent to constitute an offer.
C. The number of people who have the power of acceptance is limited.

Answers

Answer:

Option B

Explanation:

In simple words, The seller must have intention of making the offer. These are determined first from offeree 's place that there is intention to make an bid. When a fair person in the offerer 's position assumes that the terms or acts of the offeror represent an offer, that is an bid. It is an empirical, and not a moral, criterion for deciding that there is an desire to accept an bid.

Thus, from the above we can conclude that the correct option is B .

Rediger Inc., a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Process inventory account was $40,000 at the beginning of the month and $26,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $58,600 and direct labor cost of $33,400. The actual manufacturing overhead cost incurred was $54,800. The manufacturing overhead cost applied to Work in Process was $54,600. The cost of goods manufactured for June was:

Answers

Answer:

$160,600

Explanation:

The computation of the cost of goods manufactured is shown below:

= Direct material cost + direct labor cost + manufacturing cost applied + beginning work in process - ending work in process

= $58,600 + $33,400 + $54,600 + $40,000 - $26,000

= $160,600

Hence, the cost of goods manufactured for June is $160,600

Item9 5 points eBookPrintReferences Check my work Check My Work button is now enabledItem 9Item 9 5 points Here is some price information on Fincorp stock. Suppose that Fincorp trades in a dealer market. Bid Ask 55.25 55.50 a. Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed?

Answers

Answer:

$55.50

Explanation:

Given that

Bid price = $55.25

Ask price = $55.50

The bid price refers to the maximum price that buyer could able to pay for a good

While the ask price refers to the minimum price that seller could take it from the buyer

Based on the above information,

The price at which the trade is executed is equivalent to the ask price i.e $55.50

Consider a potential merger between two hypothetical beer companies. Prior to the merger, the first, Ann Hy, is worth $150 billion and the second, Czar Bosch, is worth $100 billion. If they merge, they will gain $30 billion in increased value from reduced costs and additional sales (in present discounted value). Thus the combined value of the new entity (called Ann Hy-Czar Bosch) would be $280 billion. How much more could Czar Bosch hope to get by using the theory of the pie instead of proportional division

Answers

Answer:

$3 billion more

Explanation:

Calculation of the amount that Czar Bosch could hope to get by using the theory of the pie instead of proportional division

If we are to use the theory of the pie instead of the proportional division this means that when using the proportional division, their would be likelihood that Czar Bosch would get an amount that is proportional to their market cap, 40% of the $30 billion, or $12 billion and in a situation where the they decide to split the pie this means that Czar Bosch would either get$15 billion or $3 billion more

.

a) While excavating, the Contractor hits a rock layer. Since the plans and soil report did not mention such rock, the contractor files a claim under: i. Force majeure. ii. Differing site conditions. iii. Design errors/omissions. iv. Unusual weather conditions. v. Changes in owner’s requirements.

Answers

Answer:

Differing site conditions

Explanation:

A differing site condition is a condition that has been changed. Since the plan did not mention this rock, the contractor can file a claim under this.

It is a hidden physical condition that is discovered at a site which is actually different from what was expected. It can also be regarded as unforeseen site condition.

LSM subcontracted with Henry Isaacs Home Remodeling and Repair (Isaacs) to perform the roofing work on the project. Isaacs in turn subcontracted with Hal Brewster Home Improvements (Brewster), to conduct the roofing work on Isaacs' behalf. When Brewster performed work on the roof, he "botched the job" and caused extensive leaking inside the house. LSM and Issacs attempted to correct the problems, but eventually abandoned the project, leaving Logan-Baldwin to hire others to complete the renovations. Logan-Baldwin sued LSM, Isaacs, and Baldwin for breach of contract. Isaacs sought to dismiss Logan-Baldwin's claim against it, arguing no privity of contract existed between themselves and Logan-Baldwin, and therefore Isaacs should not be liable for any damages.

Required:
Does Logan-Baldwin have contract rights over Isaacs as an intended third-party beneficiary?

1. Because Henry Isaacs delegated its duty to repair the roof to Brewster, Henry Isaacs remains responsible for Brewster's failure to install the new roof on the residence properly.
a. True
b. False

2. Logan-Baldwin is entitled to compensatory damages (covering the cost of hiring other contractors to fix the roof) caused by the breach of contract by LSM and Henry Isaacs.
a. True
b. False

3. Logan-Baldwin qualified as a third party creditor beneficiary of the contract between LSM and Henry Isaacs and the contract between Henry Isaacs and Brewster, even if Logan-Baldwin is not named in those contracts.
a. True
b. False

4. Palisades Plaza is not entitled to damages for breach contract by LSM, Henry Isaacs, and Brewster unless Palisades Plaza has clean hands and has tendered performance under the contract.
a. True
b. False

5. If the agreement between Henry Isaacs and Brewster to install a new roof is a novation, Henry Isaacs is not liable for breach of contract for the failure to install the new roof properly.
a. True
b. False

Answers

Answer:

1. true

2. true

3. false

4. true

5. false

Assume that Denis Savard Inc. has the following accounts at the end of the current year. 1.Common Stock14.Accumulated Depreciation-Buildings. 2.Discount on Bonds Payable.15.Cash Restricted for Plant Expansion. 3.Treasury Stock (at cost).16.Land Held for Future Plant Site. 4.Notes Payable (short-term).17.Allowance for Doubtful Accounts. 5.Raw Materials18.Retained Earnings. 6.Preferred Stock (Equity) Investments (long-term).19.Paid-in Capital in Excess of Par-Common Stock. 7.Unearned Rent Revenue.20.Unearned Subscriptions Revenue. 8.Work in Process.21.Receivables-Officers (due in one year). 9.Copyrights.22.Inventory (finished goods). 10.Buildings.23.Accounts Receivable. 11.Notes Receivable (short-term).24.Bonds Payable (due in 4 years). 12.Cash.25.Noncontrolling Interest. 13.Salaries and Wages Payable. Prepare a classified balance sheet in good form

Answers

Answer:

                                       Denis Savard Inc

                                  Classified Balance sheet

                                                         Amount$    Amount$   Amount$

        Assets

Current Assets

Cash                                                      xxx

Less Cash Restricted for Plant            xxx               xxx

Expansion

Accounts Receivable                           xxx

Less Allowance for Doubtful debt      xxx                xxx

Notes Receivable                                                      xxx

Receivables-Officers                                                 xxx

Inventory

Finished goods                                     xxx

Work in Process.                                   xxx

Raw Materials                                        xxx               xxx

Total Current Assets                                                                    xxx

Stockholders Equity

Common Stock                                      xxx

Add Paid-in Capital in Excess of           xxx

Par-Common Stock.

Total paid in capital                                                   xxx

Add Retained Earnings.                                            xxx

Total paid in capital and retained earnings             xxx

Less Treasury Stock (at cost)                                    xxx

Total Stockholders Equity                                                            xxx

Total Liability and Stockholders Equity                                       xxx

Liability and Stockholders Equity

Current Liability

Salaries and Wages Payable.                                    xxx

Unearned Subscriptions Revenue.                           xxx

Unearned Rent Revenue.                                          xxx

Total Current Liability.                                                                  xxx

Long term liabilities

Bonds Payable (due in 4 years)               xxx

Less Discount on Bonds Payable            xxx             xxx

Total Long term liabilities.                                    .                       xxx

Long term Investment

Preferred Stock (Equity) Investments.                         xxx

Land Held for Future Plant Site..                                  xxx

Cash Restricted for Plant Expansion.                           xxx

Total Long term Investment.                                                        xxx

Property, Plants and Equipment

Building.                                                     xxx

Less Accumulated Depreciation              xxx               xxx

- Buildings

Total Property, Plants and                         .                                   xxx

Equipment

Intangible Assets

Copyrights.                                    .                                xxx

Total Intangible Assets.                                    .                             xxx

Total Assets.                                    .                                              xxx

Wine and Roses, Inc. offers a 7% coupon bond with semiannual payments and a yield to maturity of 7.73%. The bonds mature in 9 years. Blank 1. Fill in the blank, read surrounding text. is the market price of a $1,000 face value bond

Answers

Answer:

current market price = $953.29

Explanation:

the market price of the bond = present value of the face value + present value of coupon payments

PV of face value = $1,000 / (1 + 3.865%)¹⁸ = $505.31

PV of coupon payments = $35 x 12.79935 (PV annuity factor, 3.865%, 18 periods) = $447.98

current market price = $505.31 + $447.98 = $953.29

Determine the incremental rate of return (ROR) value of the two alternatives below. Hint: Convert RoR value to a percentage. If the answer is 10%, enter 10. Do not enter 0.01. A B First Cost, $ 135,000 185,000 Operating Cost, $/year 9,000 5,200 Salvage value, $ 9,000 10,000 Life, n [infinity] [infinity]

Answers

Answer:m Incremental rate of return (ROR) = 0.076 ≈7.6%    

Explanation:

Given that;  

                                               A                            B

First Cost $                            135,000                 185,000

Operating Cost $/year           9,000                    5,200

Salvage value $                      9,000                     10,000

Life, n                                     [infinity ∞]                  [infinity ∞]

As alternatives have infinite life, salvage value will have no effect on calculations

Therefore;

Incremental initial cost (B-A) = 185000 - 135000 = 50000

Incremental annual cost (B-A) = 5200 - 9000 = -3800 (Annual savings)

Present worth of infinite annuity = A / i

Incremental rate of return ROR = 3800 / 50000 = 0.076 ≈7.6%

A company had a beginning balance in retained earnings of $400,000. It had net income of $50,000 and declared and paid cash dividends of $55,000 in the current period. The ending balance in retained earnings equals:

Answers

Answer:

$395,000

Explanation:

A company has a beginning balance of $400,000

The company has a net income of $50,000

The company also declared and paid a cash dividend of $55,000

Therefore, the ending balance in the retained earnings can be calculated as follows

Beginning balance+ net income -Dividend paid

= $400,000+$50,000-$55,000

= $395,000

Hence the ending balance in the retained earnings is $395,000

On a CVP chart, on either side of the break-even point, the vertical distance between the total sales line and the total cost line represents:

Answers

Answer:

The answer is:

Total loss to the left of the intersection

Total profit to the right of the intersection

Explanation:

Cost-volume-profit (CVP) analysis is a method that looks into the impact of how varying levels of costs and volume will affect the operating profit of a firm. This gives companies good understanding of the profitability of their products or services.

To answer the question above;

Total loss to the left of the intersection

Total profit to the right of the intersection

While the intersection is the break-even

Laurasia has identified the following goods as its market basket. Here are the prices of those goods over three years.
Compute the cost of that market basket in all three years.

Answers

Answer:

2015 = $942016 = $128.502017 = $115

Explanation:

A Market Basket is used to calculate inflation overtime by tracking the change in prices of a specific and permanent number of goods and services.

The formula for calculating the market basket is;

Cost of Market Basket[tex]_{year}[/tex] = ∑(Price of good * Basket Quantity of good)

2015

Cost of Market Basket = (25 * 0.4) + (2 * 18) + ( 4 * 12)

Cost of Market Basket = 10 + 36 + 48

Cost of Market Basket = $94

2016

Cost of Market Basket = (25 * 0.5) + (2 * 22) + ( 4 * 18)

Cost of Market Basket = 12.5 + 44 + 72

Cost of Market Basket = $128.50

2017

Cost of Market Basket = (25 * 0.6) + (2 * 20) + ( 4 * 15)

Cost of Market Basket = 15 + 40 + 60

Cost of Market Basket = $115

The cost of that market basket in all three years. is :

   In 2015  = $94   In  2016 = $128.50  In 2017 = $115

"Market Basket"

A selected gather of buyer merchandise and administrations whose costs are followed for calculating a customer cost file and measuring the taken a toll of living.

2015

Cost of Market Basket = ∑(Price of good * Basket Quantity of good)

                                         Oranges      Baseball caps    Wrenches

Cost of Market Basket = (25 * 0.4)   +     (2 * 18)          +  ( 4 * 12)

Cost of Market Basket = 10               +         36                  + 48

Cost of Market Basket = $94

2016

Cost of Market Basket =∑(Price of good * Basket Quantity of good)

                                      Oranges       Baseball caps    Wrenches

Cost of Market Basket = (25 * 0.5)   +      (2 * 22)    +       ( 4 * 18)

Cost of Market Basket = 12.5            + 44                 +           72

Cost of Market Basket = $128.50

2017

Cost of Market Basket = ∑(Price of good * Basket Quantity of good)

                                       Oranges      Baseball caps    Wrenches

Cost of Market Basket = (25 * 0.6) +     (2 * 20)         +    ( 4 * 15)

Cost of Market Basket = 15             +          40            +      60

Cost of Market Basket = $115

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On Mar 3, Lyons Company paid dividends of $1,000. Use your knowledge of what a correct journal entry should look like to identify what would be included.
a. Dividends would be debited and listed first.
b. Dividends would be credited and listed second.
c. Cash would be credited and listed second.
d. Dividends expense would be debited and listed first.
e. Cash would be debited and listed first

Answers

Answer:

Cash would be credited and listed second.

Dividends would be debited and listed first.

Explanation:

The journal entry that must be passed as Cash would be credited and listed second, and Dividends would be debited and listed first. Thus, option A and C are correct.

What is Dividend?

A dividend is a profit distribution made by a firm to its shareholders. When a business makes a profit or has a surplus, it can distribute a portion of the earnings to shareholders as a dividend. Any money that is not dispersed is re-invested in the company.

Dividends are typically paid out quarterly and might be either in cash or in the form of more stock reinvestment.

Cash would be credited and listed second in the journal entry, while dividends would be debited and listed first. As a result, options A and C are correct.

Learn more about Dividend here:

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What is the difference in operating income between processing the cat bowls further versus selling them off at the split-off point?

Answers

Answer: -$1,920

Explanation:

Operating Income if processed further would be;

= (Sales * Price) - Incremental Cost

= (1,000 * $14) - 4,920

= 14,000 - 4,920

= $9,080

Operating Income if sold off at split-off point;

= Sales * Price

= 1,000 * $11

= $11,000

Difference

= Processed Further - Sold at split-off

= 9,080 - 11,000

= -$1,920

Difference would be an Operating (loss) of $1,920.

Planning, implementing and controlling the physical flow of materials, final goods and related information from points of origin to points of consumption to meet customer requirements at a profit is called

Answers

Answer:

Marketing Logistics

Explanation:

The term that is being described in the question is known as Marketing Logistics. Like mentioned, this is various aspects/processes that need to take place when moving products from producer to market all in order to meet customer demands while making a satisfactory profit at the same time. This is a big part of every business since a business with a good marketing logistics department can easily keep track of product shipments and move products or information quickly to the correct locations thus making everything much more efficient.

Intense rivalry involving actions and responses among similar competitors vying for the same customers in a marketplace is known as _____________.

Answers

Answer:

competitive dynamics

Explanation:

The term that is being described in this question is known as competitive dynamics. Like mentioned, this is the study of the rivalry between various firms that is made up of their competitive actions/responses, their micro/macro level context, and even their antecedents and consequences. Which all-in-all add up to their effort on acquiring the same customers as their client.

The benefits of comparing actual performance of the operations against planned goals include all of the following except:_______
a) providing prompt feedback to employees about their performance relative to the goal.
b) preventing unplanned expenditures.
c) helping to establish spending priorities.
d) determining how managers are performing against prior years' actual operating results.

Answers

Answer:

c. determining how managers are performing against prior year's operating results.

Explanation:

Management compare actual performance against planned goals to enable them evaluate deficiencies in the actual performance which can give directions to areas that should be improved upon. Moreover, comparing actual performance and planned goals expose deficiencies in the system which management would take into consideration when making future plan hence eliminate unplanned expenditures.

Again, there is also identification of priorities to accomplish objectives when actual performance are compared against planned goals.

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