Answer:
Supply chain.
Explanation:
The interrelationships with suppliers, customers, distributors and other businesses that are needed to design, build and sell a product make up the network of business entities, relationships and processes that is called a supply chain.
Supply chain encompasses all the logistics and distribution cycles of getting the finished goods and services to the final consumers.
Journalize the following transactions in the accounts of Simmons Company:
Mar. 1 Received a $60,000, 60-day, 6% note dated March 1 from Bynum Co. on account.
18 Received a $25,000, 60-day, 9% note dated March 18 from Solo Co. on account.
Apr. 30 The note dated March 1 from Bynum Co. is dishonored, and the customer’s account is charged for the note, including interest.
May 17 The note dated March 18 from Solo Co. is dishonored, and the customer’s account is charged for the note, including interest.
July 29 Cash is received for the amount due on the dishonored note dated March 1 plus interest for 90 days at 8% on the total amount debited to Bynum Co. on April 30.
Aug. 23 Wrote off against the allowance account the amount charged to Solo Co. on May 17 for the dishonored note dated March 18.
Answer and Explanation:
The journal entries are shown below:
On Mar 1
Notes Receivable $60,000
To Accounts Receivable $60,000
(Being the note receivable is recorded)
On Mar 18
Notes Receivable $25,000
To Accounts Receivable $25,000
(Being the note receivable is recorded)
On Apr 30
Accounts Receivable $60,600
To Notes Receivable $60,000
To Interest Revenue ($60,000 × 2 ÷ 12 × 6%) $600
(Being the note receivable and interest revenue is recorded)
On May 17
Accounts Receivable $25,375
To Notes Receivable $25,000
To Interest Revenue ($25,000 × 9% × 2 ÷ 12) $375
(Being the note receivable and interest revenue is recorded)
On Jul 29
Cash $61,812
To Accounts Receivable $60,600
To Interest Revenue (60,600 × 8% × 90 ÷ 360) $1,212
(Being the note receivable and interest revenue is recorded)
On Aug 23
Allowance for Doubtful Accounts $25,375
To Accounts Receivable $25,375
(Being the allowance for doubtful debts is recorded)
Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.75%. Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and an expense ratio of 0.25%. Assume the rate of return on both funds’ portfolios (before any fees) is 6% per year. How much will an investment of $1,000 in each fund grow to after:
a. 1 year?
b. 3 years?
c. 10 years?
Answer:
Loaded - Up Fund
1 Year
The value of the investment can be calculated by the formula;
= Investment*(1-front end load)*(1+r-true expense ratio)^t
Loaded-Up fund has no front end load.
r is the return
True Expense Ratio = Fees + Expense Ratio
= 1% + 0.75%
= 1.75%
= Investment*(1-front end load)*(1+r-true expense ratio)^t
= 1,000 * ( 1 + 6% - 1.75%) ^ 1
= $1,042.50
3 years
= Investment*(1-front end load)*(1+r-true expense ratio)^t
= 1,000 * ( 1 + 6% - 1.75%) ^ 3
= $1,133.00
10 years
= Investment*(1-front end load)*(1+r-true expense ratio)^t
= 1,000 * ( 1 + 6% - 1.75%) ^ 10
= $ 1,516.21
Economy Fund.
1 year
The same formula applies and this time because the Economy fund uses a front-load charge of 2% as well as an expense ratio of 0.25%, the formula will be;
= Investment*(1-front end load)*(1+r-true expense ratio)^t
= 1,000 * (1 - 2%) * ( 1 + 6% - 0.25%) ^ 1
= 1,000 * 98% * ( 1 + 6% - 0.25%) ^ 1
= $1,036.35
3 years
= Investment*(1-front end load)*(1+r-true expense ratio)^t
= 1,000 * (1 - 2%) * ( 1 + 6% - 0.25%) ^ 3
= 1,000 * 98% * ( 1 + 6% - 0.25%) ^ 3
= $1,158.96
10 years
= Investment*(1-front end load)*(1+r-true expense ratio)^t
= 1,000 * (1 - 2%) * ( 1 + 6% - 0.25%) ^ 10
= 1,000 * 98% * ( 1 + 6% - 0.25%) ^ 10
= $1,714.08
The Elle Corporation manufactures fingernail polish. Suzy buys a container of Elle's fingernail polish, applies it to her nails, and suffers a severe allergic reaction. She sues Elle under the implied warranty of merchantability. The test for determining whether Suzy will recover is whether:
Answer:
such a reaction in an appreciable number of consumers was reasonably foreseeable
Explanation:
In simple words, the given case can be related to the intent to fault or hiding the fault even after knowing about it. If in he given case it was proved that the product was allergic to a number of people then it would be stated that the company manufacturing it is the culprit of branding a harmful product.
However if it came to light that only Elle was allergic to the product due to some unique medical condition then there might not be any case to file.
Your Competitive Intelligence team is predicting that the Chester Company will invest in adding capacity to their Cute product this year. Assume Chester's product Cute invests in increasing its capacity by 10% this year. Because of this new information, your company anticipates all other products in the Core segment will increase their capacity by the same amount. How much can the industry produce in the Core segment the next year? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000).
Answer:
HELLO SOME PARTS OF THE QUESTION IS MISSING ATTACHED BELOW IS THE MISSING PARTS
answer : 13156
Explanation:
Considering only products primarily in the core segment last year.
they are : Ant, cone, cute,Drat and Daze
From the question it is assumed that Chester's product Cute and other products in its Core segment will be increased by 10% this year hence we will calculate the 10% increase of each core product and add it to its initial value
For ANT (1550)
will become = 1550 + ( 10% * 1550 ) = 1705
For CONE ( 1050 )
will become = 1050 + ( 10% * 1050 ) = 1155
For Cute ( 1300 )
will become = 1300 + (10% * 1300 ) = 1430
For Drat ( 1040 )
will become = 1040 + ( 10% * 1040 ) = 1144
For DAZE ( 1040 )
will become = 1040 + ( 10% * 1040 ) = 1144
The total capacity of the current year = 1705 + 1155 + 1430 + 1144 + 1144 = 6578
Hence the Total capacity the Industry will produce in the core next year still applying the 10% increment will be = 2 * 6578 = 13156
A clothing manufacturer produces clothing in five locations in the U. S. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows:
Location (X,Y)
A 7,2
B 4,7
C 5,5
D 2,2
E 9,4
Shipments of fabric to each plant vary per week as follows: plant A, 200 units; plant B, 400 units; plant C, 300 units; plant D, 300 units; and plant E, 200 units. What is the optimal location of X for the fabric plant?
Answer:
The optimal location of X for the fabric plant is 4.9
Explanation:
X Y W X.W Y.W
A 7 2 200 1400 400
B 4 7 400 1600 2800
C 5 5 300 1500 1500
D 2 2 300 600 600
E 9 4 200 1800 800
Total = 1,400 6,900 6,100
X= 6,900 / 1,400 = 4.9
Y= 6,100 / 1,400 = 4.4
What is the forecasted value of property, plan and equipment (PP&E) based on the following information: Capital asset turnover ratio: 2.5 Forecasted revenues: $120 Forecasted costs of goods sold: $80
Answer:
Forecasted value of property, plan and equipment (PP&E) is $48.
Explanation:
First note that Capital asset is the same thing as property, plan and equipment (PP&E).
In order to calculate this, we therefore use the formula for calculating the Capital asset turnover ratio which is the ratio of forecasted revenues to forecasted value of property, plan and equipment (PP&E) as follows:
Capital asset turnover = Forecasted revenues / Forecasted value of PP&E
Substituting for the values in the question into the equation above and solve for Forecasted value of PP&E, we have:
2.5 = 120 / Forecasted value of PP&E
Forecasted value of PP&E = 120 / 2.5 = $48
Therefore, the forecasted value of property, plan and equipment (PP&E) is $48.
The forecasted value of property, plan and equipment for the period for the statement quoted above is $48. The calculations can be implied by using the values given in the formula.
The value of the property, plan and equipment is important for estimating the current, short run and long run capital requirements of the firm for a given period using the ratios.
The values given to us are as the capital assets turnover ratio is 2.5 and the forecasted costs of goods sold is $80 whereas the forecasted revenues of the firm is $120.The calculation of estimated property, plan and equipment of a firm can be calculated by using the formula as given below by putting the available values.[tex]\rm Forecasted\ PP\&E= \dfrac {Forecasted\ Revenues}{Capital\ Assets\ Turnover\ Ratio}\\\\\\\\\rm Forecasted\ PP\&E= \dfrac {\$120}{2.5}[/tex]We get the forecasted PP&E of the firm as below, [tex]\rm Forecasted\ PP\&E= \$48[/tex]Therefore the value obtained for the forecasted PP&E of the firm is $48.Hence, the correct statement of the forecasted PP&E of the firm is $48 when the forecasted revenues are $120 and the assets turnover ratio stands at 2.5.
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On January 1, 2016, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 100,000 miles.
Required:
Calculate annual depreciation for the five-year life of the van using each of the following methods. (Do not round intermediate calculations.)
1. Straight line
2. Sum of the years digits
3. Double declining balance
4, Units of production using miles driven as a measure of output and the following actual mileage:
Year Miles
2016 22,000
2017 24,000
2018 15,000
2019 20,000
2020 21,000
Answer:
1. Straight line
years 2016 to 2020 = $6,000
2. Sum of the years digits
2016 = $10,000
2017 = $8,000
2018 = $6,000
2019 = $4,000
2020 = $2,000
3. Double declining balance
2016 = $13,200
2017 = $7,920
2018 = $4,752
2019 = $2,852
2020 = $1,276
4, Units of production using miles driven
2016 = $6,600
2017 = $7,200
2018 = $4,500
2019 = $6,000
2020 = $5,700
Explanation:
purchase cost $33,000
useful life 5 years, salvage value $3,000
expected use 100,000 miles
1. Straight line
($33,000 - $3,000) / 5 = $6,000
2. Sum of the years digits
year 1 = 5/15 x $30,000 = $10,000
year 2 = 4/15 x $30,000 = $8,000
year 3 = 3/15 x $30,000 = $6,000
year 4 = 2/15 x $30,000 = $4,000
year 5 = 1/15 x $30,000 = $2,000
3. Double declining balance
year 1 = 2 x 1/5 x $33,000 = $13,200
year 2 = 2 x 1/5 x $19,800 = $7,920
year 3 = 2 x 1/5 x $11,880 = $4,752
year 4 = 2 x 1/5 x $7,128 = $2,851.20 ≈ $2,852
year 5 = $4,276 - $3,000 = $1,276
4, Units of production using miles driven
depreciation expense per mile = ($33,000 - $3,000) / 100,000 = $0.30
Year Miles
2016 22,000 x $0.30 = $6,600
2017 24,000 x $0.30 = $7,200
2018 15,000 x $0.30 = $4,500
2019 20,000 x $0.30 = $6,000
2020 (21,000 - 2,000) x $0.30 = $5,700
What type of unemployment occurs when people take time to find a job?
seasonal unemployment
C. cyclical unemployment
b. structural unemployment
d. frictional unemployment
a.
frictional unemployment
Classify the assumptions according to whether or not each item is an assumption made under perfect competition (also known as pure competition or competitive industry).
Assumed in perfect competition Not assumed in perfect competition
a. price-taking behavior
b. a small number of producers
c. firms selling a similar but differentiated good
d. significant barriers to entry
Answer:
Option “A” is the assumption of perfect competition while options B, C, and D are not the assumption of perfect competition.
Explanation:
Option A, is the assumption of perfect competition because, in the perfect competition, the industry decides the price with the help of market forces demand and supply. Moreover, this determined price is followed by firms in the industry. While the other options are not assumed in perfect competition because there are a large number of firms that can be seen in perfect competition and these firms sell homogeneous goods. Furthermore, the firms are free to enter and exit the market.
The following assumption are made under perfect competition:
price-taking behaviorThe following assumption are not made under perfect competition:
small number of producers firms selling a similar but differentiated good significant barriers to entryPerfect competition is a market where there are many buyers and sellers of homogenous goods and services. There are no barriers to the entry or exit of firms into the market. An example of perfect competition is the market for apples. All apples are identical and there are many farmers who sell apples.
The market price of goods in a perfect competition is set by the market forces. So, buyers and sellers are price takers. They take the price as determined by the market forces. There is perfect information in a perfect competition.
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g Profit maximazation for a monopolist and a perfect competitor occurs where marginal revenue equals marginal cost. At this profit-maximizing output, the monopolist will charge a price ________ marginal revenue and a perfect competitor will charge a price ________ marginal revenue.
Answer: Higher than; Equal to
Explanation:
Profit maximazation for a monopolist and a perfect competitor occurs where marginal revenue equals marginal cost.
The Marginal Revenue curves are different for either of them though and this impacts what price they sell at. This is because the price the good will be sold at depends on where the maximising output touches the demand curve.
The Monopolist has a Marginal Revenue curve that is lower than the Demand Curve. Therefore the point where Marginal Revenue and Marginal Cost intersect, will not be on the demand curve but lower than it. The price charged will therefore be the point where the maximising output touches the Demand Curve.
The Perfectly Competitive Firm however is in a market where Price is equal to the Demand curve and equal to the Marginal Revenue curve as well. The point where the Marginal Cost intersects with Marginal Revenue will also be the point where the maximising output touches the Demand curve so the price will be the same as the Marginal Revenue.
g The Fed makes an open market operation purchase of $200,000. The currency drain ratio is 33.33 percent and the desired reserve ratio is 10 percent. By how much does the quantity of money increase?
Answer: $618,000
Explanation:
From the question, we are informed that the Fed makes an open market operation purchase of $200,000 and that the currency drain ratio is 33.33 percent and the desired reserve ratio is 10 percent.
We first have to calculate the money multiplier which will be:
= (1 + the currency drain ratio)/( the currency drain ratio + the reserve ratio)
= (1 + 33.33%)/(33.33% + 10%)
= ( 1 + 0.33)/(0.33 + 0.1)
= 1.33/0.43
= 3.09
The quantity of money increase will be:
= 3.09 × $200,000
= $618,000
During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 48,000 mini refrigerators, of which 44,000 were sold. Operating data for the month are summarized as follows:
1. Sales $8,800,000.00
2. Manufacturing costs:
3. Direct materials $3,360,000.00
4 Direct labor 1,344,000.00
5 Variable manufacturing cost 816,000.00
6 Fixed manufacturing cost 528,000.00 6,048,000.00
7 Selling and administrative expenses:
8 Variable $528,000.00
9 Fixed 352,000.00 880,000.00
Required:
Prepare an income statement based on the absorption costing concept.
Answer:
Income statement based on the absorption costing concept
Sales $8,800,000.00
Less Cost of Sales
Opening Stock $0
Add Cost of Goods Manufactured $6,048,000.00
Less Closing Stock ($504,000.00) ($5,544,000.00)
Gross Profit $3,256,000.00
Less Expenses :
Selling and administrative expenses:
Variable ($528,000.00 )
Fixed ($352,000.00)
Net Income / (Loss) $2,376,000
Explanation:
Absorption Costing Concept
Product Cost = All Manufacturing Cost (Fixed and Variable)
Period Cost (Expense) = All Non - Manufacturing Costs
Production Cost Schedule - To determine Cost of Goods Sold
Direct materials $3,360,000.00
Direct labor $1,344,000.00
Variable manufacturing cost $816,000.00
Fixed manufacturing cost $528,000.00
Total Manufacturing Cost $6,048,000.00
Closing Stock = 4,000 units × ($6,048,000.00/48,000)
= $504,000.00
A monopoly's cost function is CQ and its the demand for its product is pQ where Q is output, p is price, and C is the total cost of production. Determine the profit-maximizingLOADING... price and output for a monopoly.
Answer:
The answer is "70 units".
Explanation:
In the given question some equation is missing which can be defined as follows:
[tex]C = 1.5Q^2+40Q\\\\P=320-0.5Q[/tex]
Monopolistic functions are used where Marginal Profit = Marginal Cost where marginal revenue and marginal cost stand for the MR and MC.
Finding the value of MR :
[tex]\ MR = \frac{\partial TR}{\partial Q} \\\\[/tex]
[tex]= \frac{\partial PQ}{\partial Q} \\\\= \frac{\partial (320-0.5Q)Q}{\partial Q}[/tex]
[tex]= \frac{\partial (320Q -0.5Q^2)}{\partial Q}\\\\ = \frac{\partial Q (320 -0.5Q)}{\partial Q}\\\\ \ by \ solving \ we \ get \\\\ = 320 - Q...(1)[/tex]
Calculating the value of the MC:
[tex]MC = \frac{\partial TC}{\partial Q} \\[/tex]
[tex]=\frac{\partial (1.5Q^2 + 40Q)}{\partial Q} \\\\=\frac{\partial Q (1.5Q + 40)}{\partial Q}\\\\ \ by \ solve \ value \\\\ = 3Q + 40....(2)[/tex]
compare the above equation (i) and (ii):
[tex]\to 320 -Q = 3Q+40\\\\\to 320 -40 = 3Q+ Q\\\\\to 280 = 4Q\\\\\to 4Q =280 \\\\\to Q= \frac{280}{4}\\\\\to Q= 70 \\[/tex]
calculate the net present value of a business deal that cost $2500 today and will return $1500 at the end of this year. use interest rate of 13%
Answer:
NPV= -$1,172.57
Explanation:
Giving the following information:
Initial investment= $2,500
Cash flow= $1,500
Discount rate= 13%
To calculate the net present value (NPV), we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
NPV= -2,500 + (1,500/1.13)
NPV= -1,172.57
Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $17 million, and production and sales will require an initial $3 million investment in net operating working capital. The company's tax rate is 35%. What is the initial investment outlay? Write out your answer completely. For example, 2 million should be entered as 2,000,000. $ The company spent and expensed $150,000 on research related to the new project last year. Would this change your answer? -Select- Rather than build a new manufacturing facility, the company plans to install the equipment in a building it owns but is not now using. The building could be sold for $1.5 million after taxes and real estate commissions. How would this affect your answer? The project's cost will -Select- .
Answer:
What is the initial investment outlay?
initial investment = $17 million (manufacturing equipment) + $3 (increase in net working capital) = $20,000,000The company spent and expensed $150,000 on research related to the new project last year. Would this change your answer?
No, this will not change the answer because that was a sunk cost that doesn't affect the project's initial outlay.Rather than build a new manufacturing facility, the company plans to install the equipment in a building it owns but is not now using. The building could be sold for $1.5 million after taxes and real estate commissions. How would this affect your answer?
If the company decides to do this, it will increase the project's initial outlay by $1,500,000 which is the opportunity cost of selling the building.Praxis Corp. is expected to generate a free cash flow (FCF) of $7,360.00 million this year (FCF₁ = $7,360.00 million), and the FCF is expected to grow at a rate of 20.20% over the following two years (FCF₂ and FCF₃). After the third year, however, the FCF is expected to grow at a constant rate of 2.46% per year, which will last forever (FCF₄). Assume the firm has no nonoperating assets. If Praxis Corp.’s weighted average cost of capital (WACC) is 7.38%, what is the current total firm value of Praxis Corp.? (Note: Round all intermediate calculations to two decimal places.)
Answer:
$202,216.54 million
Explanation:
FCF₁ = $7,360 million
FCF₂ = $8,846.72 million
FCF₃ = $10,633.76 million
FCF₄ = $10,910.24 million and will continue to grow at 2.46%
we must first determine the terminal value at year 3:
terminal value = $10,910.24 million / (7.38% - 2.46%) = $221,752.85 million
firm's current total value = $7,360 million / 1.0738 + $8,846.72 million / 1.0738² + $10,633.76 million / 1.0738³ + $221,752.85 / 1.0738³ = $6,854.16 + $7,672.48 + $8,588.49 + $179,101.41 = $202,216.54
Efficiency is attained when a. total surplus is maximized. b. producer surplus is maximized. c. all resources are being used. d. consumer surplus is maximized and producer surplus is minimized
Answer:
A.
Explanation:
Efficiency is attained when total surplus is maximized. At this point consumer surplus is equal to producers surplus which means that they are in equilibrium.
When efficiency is reached, the sum of the total amount of consumer surplus and producer surplus is maximized.
WinterDreams operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Investors would like to earn a 16 % return on the company's $ 115 million of assets. The company incurs primarily fixed costs to groom the runs and operate the lifts. WinterDreams projects fixed costs to be $ 35 comma 600 comma 000 for the ski season. The resort serves 800 comma 000 skiers and snowboarders each season. Variable costs are $ 8 per guest. Currently, the resort has such a favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices.
Required:
a. Would Mountain Point emphasize target pricing or cost-plus pricing? Why?
b. If other resorts in the area charge $66 per day, what price should Mount Snow charge?
Answer:
a. Would Mountain Point emphasize target pricing or cost-plus pricing? Why?
They emphasize cost plus pricing because the investors are seeking a desired rate of return on their investment and they do it by adding the desired profit margin to their costs.b. If other resorts in the area charge $66 per day, what price should Mount Snow charge?
$75.50 in order for them to generate the required ROI. Since the resort has a very good reputation, it can charge a higher price than its competitors.Explanation:
company's assets = $115,000,000
expected return on investment = 16%
fixed costs = $35,600,000
number of customers = 800,000
variable costs = $8 per customer x 800,000 = $6,400,000
total costs = $42,000,000
total cost per client = $42,000,000 / 800,000 = $52.50
desired profit = $115,000,000 x 16% = $18,400,000
desired profit per client = $18,400,000 / 800,000 = $23
price per ticket = $75.50
It costs a bakery $3 to sell a single cake. This bakery makes $7 in revenue from each cake it sells. Assume this bakery sells 25 cakes. What is its total profits
Answer:
$100
Explanation:
The revenue is the total amount the company receives for the sale of products and the profit is the amount left after the costs are subtracted. Because of that, to calculate the profit you have to subtract the costs from the revenue generated:
Profit= Revenue-costs
Profit= (7*25)-(3*25)
Profit=175-75
Profit= 100
According to this, the total profit is $100.
A large open economy has desired national saving of Sd = 1200 + 1000rw, and desired national investment of Id = 1000 - 500rw. The foreign economy has desired national saving of = 1300 + 1000rw, and desired national investment of = 1800 - 500rw. The equilibrium world real interest rate equal to:________.
Answer: 10%
Explanation:
The Equilibrium real interest rate would be the interest rate that equates the Desired savings to the desired investment for both the National and foreign economy.
Desired national saving + Foreign desired national saving = Desired national investment + Foreign desired national investment
1,200 + 1,000rw + 1,300 + 1,000rw = (1,000 - 500rw) + (1,800 - 500rw)
2,500 + 2,000rw = 2,800 - 1,000rw
2,000rw + 1,000rw = 2,800 - 2,500
3,000rw = 300
rw = 0.1
rw = 10%
Rita Gonzales won the $53 million lottery. She is to receive $2.2 million a year for the next 20 years plus an additional lump sum payment of $9 million after 20 years. The discount rate is 12 percent. What is the current value of her winnings
Answer:
PV= $17,365,776.86
Explanation:
Giving the following information:
Cf= 2,200,000
Number of years= 20
Discount rate= 12%
Additional lump sum= 9,000,000
First, we need to calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {2,200,000*[(1.12^20) - 1]} / 0.12 + 9,000,000
FV= $167,515,373.4
Now, the present value:
PV= FV/(1+i)^n
PV= 167,515,373.4/1.12^20
PV= $17,365,776.86
Organic Food Co.'s cash account shows a $7,000 debit balance and its bank statement shows $6,210 on deposit at the close of business on August 31.
a. August 31 cash receipts of $2,740 were placed in the bank’s night depository after banking hours and were not recorded on the August 31 bank statement.
b. The bank statement shows a $270 NSF check from a customer; the company has not yet recorded this NSF check.
c. Outstanding checks as of August 31 total $2,620.
d. In reviewing the bank statement, an $230 check written by Organic Fruits was mistakenly drawn against Organic Food’s account.
e. The August 31 bank statement lists $170 in bank service charges; the company has not yet recorded the cost of these services.
Required:
Prepare a bank reconciliation using the above information.
Answer:
Organic Foods Co.
Bank Reconciliation
August 31
Bank Statement
Bank Statement Balance $6,210
Add:
Deposit in transit $2,740
Correction of bank error $230
Deduct;
Outstanding Checks $2,620
Adjusted Bank Balance $6,560
Cash Book
Book Balance $7,000
No Additions;
Deduct;
NSF Check $270
Bank Service Charges $170
Adjusted Book Balance $6,560
Given no cash leakage and zero excess reserves held by banks, if reserves increase by $8 billion and the required reserve ratio is 9 percent, what is the resulting change in the money supply?
Answer:
The answer is $88,880,000
Explanation:
Multiplier effect = 1 / required reserve ratio
Required reserve ratio = 9 percent
Multiplier effect is therefore;
1/0.09
=11.11
Change is money supply is increase in reserve multiplied by multiplier effect
Increment in reserve = $8milion
11.11 x 8million
=$88,880,000
So, resulting change in the money supply is $88,880,000
Surrey Store gets its products directly from the manufacturer and sells them to consumers. In this case, the manufacturer is a
Answer:
Wholesaler
Explanation:
A Wholesaler supplies Retailers (Surrey Store) with merchandise. Retailers sell this Merchandise to the final customer in retail shops.
One characteristics of the Wholesaler is that it offers trade or bulky discount to Retailers for purchasing in huge quantities.
3. Individual Problems 20-3 Lightweight personal locator beacons are now available to hikers, making it easier for the Forest Service's rescue teams to locate those lost or in trouble in the wilderness. True or False: Forest Service costs will likely fall due to moral hazard. True False
Answer: False
Explanation:
Moral Hazard refers to the tendency of people or entities to take on more risk if they know they will be saved from it.
With the Forest Service now making locator beacons available for hikers, the result will be that more hikers will be emboldened to hike further in the wilderness or into more dangerous areas knowing that should they get in trouble, the rescue teams will locate them faster. It will also mean that more hikers will start coming to the forest because they feel they can hike and be found easily if they get into trouble.
These 2 things will mean that the Forest Service will both have to conduct more rescue missions and maybe hire more personnel as a result of the increased number both of which will increase their costs not reduce them.
Consider the market in which clothing producers operate. Suppose that the price ofthe price of a pair of jeansa pair of jeans risesrises. Explain how this event will change the quantity of jeansjeans supplied and the supply of jeansjeans today. A. The supply of jeans is unchangedsupply of jeans is unchanged and the quantity of jeans supplied decreases.and the quantity of jeans supplied decreases.
Answer:
D. The supply of jeans is unchanged and the quantity of jeans supplied increases
Explanation:
According to the law of supply if the price of the good increased than the quantity supplied is also increased and vice versa i.e it shows the direct relationship between the quantity supplied and the price
So since the price of the jeans is rises so the quantity supplied is also raised without impact the supply of jeans
Hence, the correct option is D.
A local bank intends to install a new automated teller machine (ATM) to allow users (i.e., bank customers) to perform basic financial transactions. Each user can have only one account at the bank. ATM users should be able to view their account balance, withdraw cash (i.e., take money out of an account) and deposit funds (i.e., place money into an account). The user interface of the automated teller machine contains:
Answer:
The user interface of the automated teller machine contains Graphical User Interface.
Explanation:
The Graphical User Interface (GUI) is a user interface that allows the ATM customer to perform basic financial transactions of viewing their account balance, withdrawing cash, and depositing funds in an interactive manner. The GUI as an interactive visual display uses objects to convey information to the user. Actions to be taken by the ATM customer are also represented, so that the user or ATM customer feels as if she were communicating with another human. The GUI responds faster than a human.
BBQ Corporation has a target capital structure that is 70 percent equity, 30 percent debt. The flotation costs for equity issues are 15 percent of the amount raised; the flotation costs for debt are 8 percent. If BBQ needs $150 million for a new manufacturing facility, what is the cost when flotation costs are considered
Answer:
$172,215,844 is the cost when flotation costs are considered
Explanation:
flotation
Weighted average flotation cost = {(Flotation cost debt * Weight debt) + (Flotation cost equity * Weight equity)
= (8% * 0.30) + (15% * 0.70)
=0.024 + 0.105
= 0.129
= 12.9%
Calculation of the cost of funds
Cost of funds = Amount raised / (1 - Weighted average floatation cost)
= $150,000,000 / (1-0.129)
= $150,000,000 / (0.871)
=$172,215,844
Therefore, the cost of raising fund is $172,215,844
Land Services, Inc. owns 35% of voting stock of World Investments, Inc. During the year 2018, World Investments, Inc. earned profits of $300,000. Under the equity method, which of the following journal entries will Land Services record?
A) Long-term Investments—Grey Investments Inc.: 250,000
Cash: 250,000
B) Cash: 75,000
Dividend Revenue: 75,000
C) Cash: 75,000
Long-term Investments—Grey Investments Inc.: 75,000
D) Long-term Investments—Grey Investments Inc.: 75,000
Revenue from Investments: 75,000
The correct question is:
Glitter Services Inc. owns 30% of voting stock of Grey Investments Inc. During the year 2015, Grey Investments Inc. earned profits of $250,000. Under the equity method, which of the following journal entries will Glitter Services record?
Answer:
D) Debit Long-term Investments—Grey Investments Inc.: 75,000
Credit Revenue from Investments: 75,000
Explanation:
Equity method is used in accounting to treat a companie's investment in associate companies. Usually equity accounting is used when a company owns 20 to 50% of shares in an associate company.
In this case Glitter Services, Inc. owns 30% of voting stock of World Investments, Inc.
Grey Investments, Inc. earned profits of $250,000.
So the value of investment is 0.3 * 250,000 = $75,000
So this amount is Debited from Long Term Investment account and credited to Revenue from Investments
Osawa, Inc., planned and actually manufactured 200,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $20 per unit produced. Variable operating (nonmanufacturing) cost was $10 per unit sold. Planned and actual fixed manufacturing costs were $600,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $400,000. Osawa sold 120,000 units of product at $40 per unit.
Required:
Osawa's 2017 operating income using variable costing is:________
(a) $ 620,000,
(b) $ 340,000,
(c) $ 200,000,
(d) $ 560,000, or
(e) none of these.
Show supporting calculations. Begin by selecting the labels used in the variable costing calculation of operating income and enter the supporting amounts. Perform the calculations in this step, but select the correct operating income in the next step.
Answer:
The correct answer is C.
Explanation:
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
We need to calculate the net operating income:
Sales= 120,000*40= 4,800,000
Total variable cost= (20 + 10)*120,000= (3,600,000)
Total contribution margin= 1,200,000
Fixed manufacturing costs= (600,000)
Fixed operating (nonmanufacturing) costs= (400,000)
Net operating income= 200,000