Answer:
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Explanation:
How could managers use increased worker flexibility and diligence to increase the competitiveness of their manufacturing sites
Explanation:
In order to increase the flexibility and diligence of workers in order to increase the competitiveness of their manufacturing sites, it is ideal for management to offer working conditions that allow employees greater benefits, such as greater mobility, with a layout that includes the correct flow between people, products and materials.
It is also ideal to implement technologies that reduce the bureaucracy both at work and facilitate communication and carrying out tasks.
Mobility also includes remote work using technology.
These are strategies that help to make work more flexible and, consequently, increase innovation in work and worker motivation.
The correct way in which the flexibility of the workers in an organization can be increased is by adapting to suitable principles of business management as per the size and scale of the business.
This will also help the manager to increase the competitiveness in the market and also beat the need for optimum level of production in the organization.
Principles of Business Management. The principles of business management as given by economist Henry Fayol are a great source for how the business can be run efficiently and effectively using the resources available.There can be chain level management that can be followed to achieve specialization of work and bring in additional capital or workforce to divide the work uniformly. Manufacturing can also be increased by doing departmentalization in management to save up costs and achieve optimum utilization of resources.Hence, a manager may adapt to different principles of management to increase competitiveness and effectiveness in the level of manufacturing.
Learn more about Principles of Management here :
https://brainly.com/question/14493167
When a standalone organization is created and owned by two or more parent companies together, the strategic alliance is referred to as a(n) _____.
Answer:
Joint venture
Explanation:
A joint venture is one where two or more parties agree to pool their resources together to accomplish a particular goal.
Each participant shares in the profit, loss, and cost associated with the business.
However the venture an entity that is independent of the participant's other business interest.
So when a standalone organization is created and owned by two or more parent companies together, it is called a joint venture
A firm only has current assets and fixed assets. Its current assets are $100,000 and total assets are $300,000. The firm's sales are $900,000. The firm's fixed asset turnover is
Answer:
Firm's fixed asset turnover = 4.5
Explanation:
Given:
Current assets = $100,000
Total assets = $300,000
Firm's sales = $900,000
Find:
Firm's fixed asset turnover
Computation:
Fixed assets = Total assets - Current assets
Fixed assets = $300,000 - $100,000
Fixed assets = $200,000
Fixed asset turnover = Sales / Fixed asset
Firm's fixed asset turnover = $900,000 / $200,000
Firm's fixed asset turnover = 4.5
Abburi Company's manufacturing overhead is 55% of its total conversion costs. If direct labor is $45,900 and if direct materials are $27,200, the manufacturing overhead is:
Answer:
Manufacturing Overheads = $56100
Explanation:
The conversion cost defined simply is the cost involved in turning the raw material or direct material into the finished products. Conversion cost is calculated by adding the direct labor cost and the manufacturing overhead cost.
Conversion cost = Direct labor + Manufacturing overheads
As we know that the manufacturing overhead is 55% of conversion cost, then the direct labor cost is 45% of conversion cost.
If 45% of conversion cost is $45900, then the total conversion cost will be,
Conversion cost = 45900 * 100/45 = $102000
Manufacturing Overheads = 102000 - 45900 = $56100
Game theory is useful for understanding oligopoly behavior because: there are so many firms in an oligopoly that all are price takers. firms must differentiate their products if they are to remain in business. firms recognize that because there are only a few firms mutual interdependence is important. without it firms would not be able to maintain cartel agreements. it allows firms to develop greater monopoly power.
Answer:
firms recognize that because there are only a few firms mutual interdependence is important.
Explanation:
Game theory is useful for understanding oligopoly behavior because firms recognize that because there are only a few firms mutual interdependence is important.
An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.
Hence, under the game theory, when firms makes a decision about their business, it is expected that they consider how the other firms would react to such decisions.
On April 2 a corporation purchased for cash 7,000 shares of its own $11 par common stock at $26 per share. It sold 4,000 of the treasury shares at $29 per share on June 10. The remaining 3000 shares were sold on November 10 for $22 per share. a. Journalize the entries to record the purchase (treasury stock is recorded at cost). Apr. 2 b. Journalize the entries to record the sale of the stock. If an amount box does not require an entry, leave it blank. Jun. 10 Nov. 10
Answer:
A.
Dr Treasury stock 182,000
Cr Cash 182,000
B.
Jun 10
Dr Cash 116,000
Cr Treasury stock 104,000
Cr Paid in capital from treasury stock 12,000
Nov 10
Dr Cash 66,000
Dr Paid in capital from treasury stock 12,000
Cr Treasury stock 78,000
Explanation:
a. Preparation of the Journal entry to record the purchase
Dr Treasury stock 182,000
Cr Cash 182,000
(7,000*26)
b. Preparation of the Journal entries to record the sale of the stock
Jun 10
Dr Cash (4000*29) 116,000
Cr Treasury stock (4000*26) 104,000
Cr Paid in capital from treasury stock 12,000(116,000-104,000)
Nov 10
Dr Cash (3000*22) 66,000
Dr Paid in capital from treasury stock 12,000
Cr Treasury stock (3000*26) 78,000
Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $4 per liter. It costs $100 to convert 100 liters of D into 60 liters of E and 40 liters of F. Product F can be sold immediately for $4 per liter or processed further into Product G at an additional cost of $3 per liter. Product G can then be sold for $9 per liter.
a. Determine whether Product F should be sold or processed further into Product G.
b. Calculate the net advantage (disadvantage) of further processing.
c. Use a negative sign with your answer to indicate a net disadvantage (if applicable).
Answer:
a) Product G should be produced and sold
b) Net financial advantage $80
Explanation:
A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.
Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further .
$
Revenue after split-off point
($9× 40 litres) 360
Revenue at the slit of point
($4 × 40) (160)
Additional income from further processing 200
Further processing cost ($3× 40) (120)
Incremental income from further processing 80
Incremental income from further processing = $80
a) The product F should be processed further and sold as product G. Doing so would increase the net income by $80.
b) Net advantage $80
Make a list of at least three items that are important to double check before submitting a loan application to underwriting. List at least two things you would be sure to tell a borrower in preparation for closing. List at least three calculations that are typically used during the course of a mortgage loan transaction.
Answer:
Please see answers below.
Explanation:
A. Three important Items to double check before submitting a loan application to underwriting.
• Completeness of data : One has to be sure that all important details are captured hence none is left out. It means that there are no missing information on the application.
• Calculations performed accurately: This means that calculations such as borrower's income, qualifying ratios are calculated accurately and also double checked for the purpose of the loan underwriting.
• Documentations required by the loan programme. All Documentations required by the loan programme must be double checked before submitting a loan application to underwriting.
B. List at least two things you would be sure to tell a borrower in preparation for closing
• I will seek clarity in terms of the money borrower would be bringing to the closing table.
• The date,time,venue of closing are essential for the closing hence will be communicated to the borrower. Also, there are no right or wrong answers that may be asked or given by the borrower during the closing.
C. List at least three calculations that are typically used during the course of mortgage loan transaction.
• Income calculation
• Front end and back end ratio (DTI ratio)
• Monthly payment.
you have just deposited $11000 in to an account that promises to pay you an annual interest rate of 6.5 percent each year for the next 6 years. You will leave the money invested in the account and 10 years from today. you need to have $26300 in the account. What annual interest rate must you earn over the last 4 years to accomplish this goal
Answer:
Over the last 4 years to accomplish this goal the annual interest rate must be 13.14 %.
Explanation:
First find the Future value (FV) of $11,000 at the end of the 6th year as follows :
PV = -$11,000
r = 6.50%
p/yr = 1
n = 6
Pmt = $0
FV = ?
Using a financial calculator, the Future Value (FV) is $16,050.57
Therefore, the amount invested will amount to $16,050.57 in 6 year.
Next we then calculate the interest rate that will give us $26300 in the next four years (remainder of the 10 years)
PV = -$16,050.57
FV = $26,300
P/yr = 1
n = 4
Pmt = $0
r = ?
Using a financial calculator, the Interest rate (r) is 13.14 %
Conclusion :
Over the last 4 years to accomplish this goal the annual interest rate must be 13.14 %.
Crane Company has gathered the following information.
Units in beginning work in process 0
Units started into production37,300
Units in ending work in process8,200
Percent complete in ending work in process:
Conversion costs40%
Materials100%
Costs incurred:
Direct materials$78,330
Direct labor$66,500
Overhead$105,114
1. Compute equivalent units of production for materials and for conversion costs.
Materials
Conversion Costs
The equivalent units of production
2. Determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 2.25.)
Materials
Conversion Costs
Unit costs
$
$
3. Show the assignment of costs to units transferred out and in process.
Units transferred out $
Units in ending work in process
Answer:
1. Compute equivalent units of production for materials and for conversion costs
Equivalent units of Materials: (Units in Beginning Work in process + Units started into production - Units in ending work in process) + Units in ending work in process
= (0 + 37,300 - 8,200) + 8,200
= 37,300
Equivalent units of conversion costs : (Units in Beginning Work in process + Units started into production - Units in ending work in process) + (Units in ending work in process * 40%)
= (0 + 37,300 - 8,200) + (8,200 * 40%)
=29,100 + 3,280
= 32,380
2. Determine the unit costs of production
Unit costs of materials = Direct materials / Equivalent units of Materials
= $78,330 / 37,300
= $2.1
Unit costs of conversion costs = (Direct labor + Overhead) / Equivalent units of conversion costs
= ($66,500 + $105,114) / 32,380
= $171,614 / 32,380
= $5.3
3. Show the assignment of costs to units transferred out and in process
Units ending work in process = Materials + Conversion costs
where, Materials = 8,200 * $2.1 = $8,202
Conversion costs = 3,281 * $5.3 = $17,389
( 8,200 * 40%)
Units ending work in process = $8,202 + $17,389
= $25,591
In 2008, the United States began to witness one of the worst recessions since the 1930s. The collapse of the housing bubble in 2006 led to a massive decline in real estate prices, affecting consumers and institutions, especially banking and financial entities. Severe liquidity shortfalls in the United States as well as other global markets led to a serious credit crisis. During the credit crisis of 2008–2009, several banks and other businesses went through a reorganization process or were forced to liquidate. Consider the following example:________.
In January 2009, American electronics retailer Circuit City Inc. closed all of its stores and sold all of its merchandise.
The above is an example of:______.
A. Reorganization
B. Liquidation.
Answer:
B. Liquidation.
Explanation:
Liquidation is and aftermath of the inability of a company or establishment to meet up with her obligations at the required moment. Thus, the company folds-up, lay off her staff and stop operating. While reorganization is a form of restructuring in a company or establishment. It may involve change of positions and duties among capable staff.
The example in the given scenario is that of liquidation because it ceased from operation.
Your firm has total sales of $22,980, costs of $14,715, and depreciation of $6,045. The tax rate is 34 percent. There are no interest expenses or other income. What is the operating cash flow?
Answer:
Thus, Operating cash flow for company is $7,510.20.
Explanation:
Total Sales = $22,980
Cost of goods sold = $14,715
Depreciation = $6,045
Profit before tax = Total Sales – Cost of goods sold – Depreciation
= $22,980 – $14,715 – $6,045
=$2,220
Profit before tax is $2,220
Tax rate = 34%
Net profit = profit before tax × (1 – 34%)
= $1,465.20
Net profit for company is $1,465.20.
Operating cash flow = Net profit + Depreciation
= $1,465.20 + $6,045
= $7,510.20
Thus, Operating cash flow for company is $7,510.20.
Following are selected transactions for Vitalo Company.
Nov. 1 Accepted a $16,000, 180-day, 5% note from Kelly White in granting a time extension on her past-due account receivable.
Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the White note.
Apr. 30 White honored her note when presented for payment.
Calculate the interest amounts at December 31st and April 30th and use those calculated values to prepare your journal entries.
Answer and Explanation:
The Computation of interest amount is shown below:-
Particulars Total through Through maturity Through maturity
Maturity Nov. 1 Jan 1
Principal $16,000 $16,000 $16,000
Rate 5% 5% 5%
Time 180 ÷ 360 60 ÷ 360 120 ÷ 360
Total interest $400 $133 $267
2. The Journal entries are shown below:-
a. Notes receivable Dr, $16,000
To accounts receivable $16,000
(Being issuance of notes is recorded)
b. Interest receivable Dr, $133
To Interest revenue $133
(Being interest revenue is recorded)
c. Cash Dr, $16,400
To Notes receivable $16,000
To Interest revenue $267
To Interest receivable $133
(Being cash received is recorded)
Consider four different stocks, all of which have a required return of 12 percent and a most recent dividend of $3.00 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10 percent, 0 percent, and –4 percent per year, respectively. Stock Z is a growth stock that will increase its dividend by 20 percent for the next two years and then maintain a constant 10 percent growth rate thereafter. What is the dividend yield and capital gains yield for each of these four stocks? (Leave no cells blank - be certain to enter "0" wherever required. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 1 decimal place, e.g., 32.1.)
Answer:
we must first determine the current price of the stocks:
W = $3.30 / (12% - 10%) = $165
X = $3 / 12% = $25
Y = $2.88 / (12% + 4%) = $18
Z = $3.60/1.12 + $4.32/1.12² + $237.60/1.12² (terminal value at year 2) = $3.21 + $3.44 + $189.41 = $196.06
current year's dividend yield:
W = $3 / $165 = 1.8%X = $3 / $25 = 12%Y = $3 / $18 = 16.7%Z = $3 / $196.06 = 1.5%now we must determine the price of the stocks in one year:
W = $3.63 / (12% - 10%) = $181.50
X = $3 / 12% = $25
Y = $2.7648 / (12% + 4%) = $17.28
Z = $4.32/1.12 + $237.60/1.12 = $3.86 + $212.14 = $216
capital gains yield:
W = ($181.50 - $165) / $165 = 10%X = ($25 - $25) / $25 = 0Y = ($17.28 - $18) / $18 = -4%Z = ($216 - $196.06) / $196.06 = 10.2%James just received an $8,000 inheritance check from the estate of his deceased rich uncle. James wants to set aside enough money to pay for a trip in five years. If the trip is expected to cost $5,000, how much of the $8,000 must James deposit now if the rate of return is 12% per year in order to have the $5,000 in five years
Answer:
$2831.13
Explanation:
The computation of the present value of 5,000 in five years is shown below:-
Present Value of 5,000 in five years = Expected cost ÷ (1 + Rate of return)^Number of years
= $5,000 ÷ (1 + 12%)^5
= $
5,000 ÷ (1.12)^5
= $2831.13
Therefore for computing the present value of 5,000 in five years we simply applied the above formula.
In #31, Kathryn and Jose decide to try mediation instead of arbitration. They can select one of the following, which are the typical types of mediation (select one):
Answer: e. two of the above.
Explanation:
The typical types of mediation in the options include both Facilitative and Evaluative;
Facilitative mediating is the most common and basic of mediation techniques. It involves the use of mediators who create an environment for negotiations. In other words they facilitate negotiations amongst the parties in conflict in the hopes that both parties can come to an agreement that favors the both of them and results in lasting peace. Evaluative Mediating on the other hand emulates Settlement conferences which is like a pre-trial where a Judge attempts to get both parties to settle a case before they go to court. Evaluative mediating therefore involves the use of a mediator who will act like a judge and show the parties where they are both falling short and then attempt to settle the issue they way they think a Judge would."An economy is based on three sectorsdashagriculture, manufacturing, and services. For each unit of output, agriculture requires inputs of 0.20 unit from agriculture, 0.40 unit from manufacturing, and 0.20 unit from services. For each unit of output, manufacturing requires inputs of 0.30 unit from agriculture, 0.20 unit from manufacturing, and 0.20 unit from services. For each unit of output, services requires 0.20 unit from agriculture, 0.30 unit from manufacturing, and 0.30 unit from services. Determine the production levels needed to satisfy a final demand of 0 units for agriculture, 40 units for manufacturing, and 0 units for services. The production level needed from the agricultural sector is 40.00 units."
Answer:
Required Production to fullfil a Demand for 40 industry units
Agriculture 54.4
Industry 83.2
Services 51.2
Explanation:
Input Agricuilture Industrial Service
Agriculture 0.2 0.3 0.2
Industrial 0.4 0.2 0.3
Service 0.2 0.2 0.3
We require X input to generate a demand of 0 agriculture 40 industry and 0 services
The previous matrix will be the input we solve for the output
Output Agricuilture Industrial Service
Agriculture 0.8 -0.7 -0.8
Industrial -0.6 0.8 -0.7
Service -0.8 -0.8 0.7
We now reverse the matrix using excel:
Output Agricuilture Industrial Service
Agriculture 2 1.36 0.96
Industrial 1 2.08 0.88
Service 1 1.28 2.08
Now we multiply this by our desired outcome of
0
40
0
Agriculture 54.4
Industry 83.2
Services 51.2
Hiku Inc. developed a superior touch screen technology for tablet computers that enabled multiple users to operate the screen at the same time. The technology was leased to Broadway Technologies, a consumer electronics company, for five years. Which of the following alternatives to integration does this best illustrate?
Answer:
Licensing example
Explanation:
A licensing integration occurs when a firm under contractual terms allows another firm or group of firms to use it's intellectual property usually for an agreed amount.
For example, in this case, Hiku Inc. innovative technology– which enabled multiple users to operate the screen of a tablet at the same time, was licensed out to Broadway Technologies which gave them the freedom to use the technology for five years.
To: HR Department
From: Jill Best, Manager
Re: Lost Performance Appraisal Form
Six weeks ago when our offices were being remodeled, one of the janitors accidentally threw away a small stack of papers. Included in the stack was a performance appraisal form which I had just completed on one of my subordinates, Karen Whitmore. I know you need this form, but it is gone, What should I do?
Answer with its Explanation:
The performance Appraisal form are very important when we are interested in appraising the performance of employees. It not only helps to keep the employees motivated but also helps to highlights the underperforming employees. The corrective action plan to motivate the underperforming employees can then be formulated. It also helps in deciding which employee will be valuable asset for the company and thus must be promoted.
The corrective action would be that the manager must try to reassess the performance of the employees and submit his findings in the form of Performance Appraisal Form. The manager must also have backup of his findings and that he can mail the performance appraisal form by an email.
Which of the following terms refers to the necessary stress that activates and motivates people to achieve goals and change their environments?
a. distress.
b. cognitive dissonance
c. general adaptation syndrome.
d. eustress.
e. emotional dissonance
Answer:
d. eustress
Explanation:
Eustress can be seen or refers to the stress which can be beneficial to the person or individual involved, and this stress can either be psychological or physical such as exercising ,which is why EUSTRESS can tend to be a positive response that a person or an individual has to a stressor and can depend on one's current feelings of control, desirability as well as timing of the stressor .
Therefore EUSTRESS help to produces positive feelings such as excitement, fulfillment, satisfaction that activates and motivates people to achieve goals and change their environments.
A company is considering replacing an old machine, which has a market value of $95,000 and a tax basis of $145,000. The new machine would cost $210,000 and would cause a $25,000 reduction in working capital because of the need for fewer spare parts. If the company’s tax rate is 39%, what would be the initial cash outlay for this replacement project?
Answer:
$120,500
Explanation:
Net cash outflow for the new machine = Cost of new machine + net working capital - salvage value of old machine + tax (salvage value of old machine - book value of old machine)
tax (salvage value of old machine - book value of old machine) =
0.39 x ($95,000 - $145,000) = $-19,500
$210,000 + $25,000 - $95,000 -$19,500 = $120,500
Intra-Spect Mining Co. acquired mineral rights for $153,000,000. The mineral deposit is estimated at 90,000,000 tons. During the current year, 23,400,000 tons were mined and sold.
Required:
a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimals places.
b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
Answer:
a. Determine the amount of depletion expense for the current year.
$39,780,000
b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
Dr Depletion expense 39,780,000
Cr Accumulated depletion: Mine 39,780,000
Explanation:
depletion expense per ton mined = $153,000,000 / 90,000,000 = $1.70 per ton
depletion expense for current year = $1.70 x 23,400,000 = $39,780,000
Depletion expense is similar to depreciation expense since the carrying value of the asset decreases as minerals are being mined.
When units produced are greater than units sold under variable costing, fixed overhead is an expense and results in___________(lower, higher) net income than under absorption costing.
Answer: lower
Explanation:
Variable costing is a method used in accounting whereby the manufacturing overhead will be incurred at the particular period when the product is produced.
In the absorption costing method, the indirect expenses which are the overheads and the direct costs are taken into consideration.
The variable costing helps to solve the issue regarding absorption costing which allows for an increase in income as there is am increase in production.
After all of the transactions for the year ended December 31, 2018 had been posted including the transactions recorded in part (1) and all adjusting entries, the data that follow were taken from the records of Equinox Products Inc.
a. Prepare a multiple-step income statement for the year ended December 31, 2018. Enter all amounts as positive numbers EXCEPT in the Other revenue and expense section. In that section only, enter amounts that represent other expenses as negative numbers using a minus sign.
b. Prepare a retained earnings statement for the year ended December 31, 2018.
c. Prepare a balance sheet in the report form as of December 31, 2018.
Question Completion:
Income Statement data:
Advertising expense $ 150,000
Cost of goods sold 3,700,000
Delivery expense 30,000
Depreciation expense-office buildings and equipment 30,000
Depreciation expense-store buildings and equipment 100,000
Income tax expense 140,500
Interest expense 21,000
Interest revenue 30,000
Miscellaneous administrative expense 7,500
Miscellaneous selling expense 14,000
Office rent expense 50,000
Office salaries expense 170,000
Office supplies expense 10,000
Sales 5,313,000
Sales commissions 185,000
Sales salaries expense 385,000
Store supplies expense 21,000
Retained earnings and balance sheet data:
Accounts payable $ 194,300
Accounts receivable 545,000
Accumulated depreciation—office buildings and equipment 1,580,000
Accumulated depreciation—store buildings and equipment 4,126,000
Allowance for doubtful accounts 8,450
Bonds payable, 5%, due in 10 years 500,000
Cash 282,850
Common stock, $20 par
(400,000 shares authorized; 100,000 shares issued, 94,600 outstanding) 2,000,000
Dividends:
Cash dividends for common stock 155,120
Cash dividends for preferred stock 100,000
Goodwill 700,000
Income tax payable 44,000
Interest receivable 1,200
Inventory (December 31, 20Y8),
at lower of cost (FIFO) or market 778,000
Office buildings and equipment 4,320,000
Paid-in capital from sale of treasury stock 13,000
Excess of issue price over par:
-Common 886,800
-Preferred 150,000
Preferred 5% stock, $80 par
(30,000 shares authorized; 20,000 shares issued) 1,600,000
Premium on bonds payable 19,000
Prepaid expenses 27,400
Retained earnings, January 1, 20Y8 8,197,220
Store buildings and equipment 12,560,000
Treasury stock
(5,400 shares of common stock at cost of $33 per share) 178,200
Answer:
Equinox Products Inc.Income Statement for the year ended December 31, 2018:
Sales Revenue $5,313,000
Cost of goods sold 3,700,000
Gross profit $1,613,000
Other Expenses:
Advertising expense $ 150,000
Sales commissions 185,000
Sales salaries expense 385,000
Delivery expense 30,000
Miscellaneous selling expense 14,000
Store supplies expense 21,000
Depreciation expense-
Store buildings & equipment 100,000
Depreciation expense-
Office buildings & equipment 30,000
Misc. administrative expense 7,500
Office rent expense 50,000
Office salaries expense 170,000
Office supplies expense 10,000 1,152,500
Operating Income $460,500
Other Revenue and Expense:
Interest revenue 30,000
Interest expense -21,000
Pretax Income $469,500
Income tax expense 140,500
Net Income $329,000
b. Equinox Products Inc.
Statement of Retained EArnings for the year ended December 31, 2018:
Retained earnings, January 1, 2018 $8,197,220
Net Income for the year 329,000
Cash Dividends: Common Stock -155,120
Cash Dividends: Preferred Stock -100,000
Retained Earnings, Dec. 31, 2018 $8,271,100
c. Equinox Products Inc.
Balance Sheet as of December 31, 2018:
Cash 282,850
Accounts receivable 545,000
Allowance for doubtful accounts 8,450 536,550
Interest receivable 1,200
Inventory (December 31, 20Y8), at lower of
cost (FIFO) or market 778,000
Prepaid expenses 27,400
Total Current Assets $1,626,000 $1,626,000
Office buildings and equipment 4,320,000
less accumulated depreciation 1,580,000 2,740,000
Store buildings and equipment 12,560,000
less accumulated depreciation 4,126,000 8,434,000
Goodwill 700,000
Total non-current assets $11,874,000 11,874,000
Total Assets $13,500,000
Liabilities + Equity:
Current Liabilities:
Accounts payable $ 194,300
Income tax payable 44,000
Premium on bonds payable 19,000
Total Current Liabilities $257,300
Non-current Liabilities:
Bonds payable, 5%, due in 10 years 500,000
Shareholders' Equity:
Common stock, $20 par (400,000 shares authorized;
100,000 shares issued, 94,600 outstanding) 2,000,000
Preferred 5% stock, $80 par (30,000 shares
authorized; 20,000 shares issued) 1,600,000
Paid-in In Excess of par: Common 886,800
Paid-in In Excess of par: Preferred 150,000
Retained earnings, December 31, 2018 8,271,100
Treasury stock (5,400 shares of common
stock at cost of $33 per share) 178,200
Paid-in capital from sale of
treasury stock 13,000 (165,200) 12,742,700
Total Liabilities and Equity $13,500,000
Explanation:
The Income Statement shows the financial performance of Equinox Products Inc. for the year ended December 31, 2018. Therein, the gross profit is stated as the excess of sales revenue over cost of goods sold. The operating income represents the income from the normal business of the company. Other revenue and expense, like interest are added to get the pretax income. After income tax expense is deducted, we arrive at the net income.
The statement of the Retained Earnings shows the movement that has occurred in the retained earnings during the period with net income added and dividends subtracted.
The balance sheet of Equinox Products Inc. shows the financial position with assets in their classes and the liabilities and equity sections which ensure that the accounting equation is achieved at the end of the period.
If people lost confidence in the government what kind of money would have the least value?
If people lost confidence in the government which would have the least value?
a) fiat money
b) representative money
c) commodity money
d) gold standard
Answer:
Fiat money
Explanation:
Fiat money is a type of money or currency that is used as money because it is issued and backed by the government but it does not have any intrinsic value.
It has no intrinsic value which means that it does not have any value of its own and it is maintained by the government. Therefore, If people lost confidence in the government the kind of money that would have the least value is fiat money
You write a call option on Google. The current price of one share of Google is $400, the option strike price is $410, and the option premium is $5 (all prices are per share). On the expiration day, the price of Google is $425. The following statement is true:
A) The call is in the money
B) your payoff is negative
C) your payoff is positive and equal to 10
D) A and B
E) A and C
Answer: E) A and C
Explanation:
A Call option is an option to buy a security at a certain price in future. The option is only exercised if the market price of the security is higher than the option price of the security. When this happens the Call is said to be in the money. On expiration day, the price of Google is $425 which is higher than the option price of $410 so the Call is in the money. Option A is correct.
The option premium is the amount paid for the option contract and so is an expense. Payoff is calculated as;
= Market Value - (Option Price + Option premium)
= 425 - ( 410 + 5)
= $10
Option C is correct as well.
The following data relate to factory overhead cost for the production of 10,000 computers:
Actual: Variable factory overhead $262,000
Fixed factory overhead 90,000
Standard: 14,000 hrs. at $25 350,000
If productive capacity of 100% was 15,000 hours and the total factory overhead cost budgeted at the level of 14,000 standard hours was $356,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $6.00 per hour.
Answer:
1.-4,000 Favorable
2.6,000 Unfavorable
3.$2,000 Unfavorable
Explanation:
1.Preparation to determine variable factory overhead Controllable variance
Using this formula
Variable factory overhead Controllable variance=Standard hours * rate- Fixed factory overhead rate
Let plug in the formula
Variable factory overhead Controllable variance=14,000 * 25.00- 6.00= 266,000
Variable factory overhead Controllable variance = 262,000- 266,000
Variable factory overhead Controllable variance= -4,000 Favorable
2. Preparation to determine fixed factory overhead volume variance .
First step is to deduct Productive capacity hours from total factory overhead cost standard hours
15,000 hours -14,000 hours =1,000 hrs
Second step is to find the fixed factory overhead volume variance
Using this formula
Fixed factory overhead volume variance=Un-used Numbers of hrs*Fixed factory overhead rate
Let plug in the formula
Fixed factory overhead volume variance=1,000 hrs*$6.00
Fixed factory overhead volume variance= 6,000 Unfavorable
3. Preparation to Determine total factory overhead cost variance
Variable Factory Overhead Controllable Variance $4,000 Favorable
Fixed Factory Overhead Volume Variance $6,000 Unfavorable
Factory Overhead Cost Variance$2,000 Unfavorable
A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under:________
a. operating activities
b. investing activities
c. noncash investing and financing activities
d. financing activities
Answer:
b. investing activities
Explanation:
Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;
1. Operating cash flow: all cash generated from the business activities of an organization.
2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.
3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.
A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under investing activities.
Generally, investing activities comprises of purchasing physical assets, investing in securities and the sale of assets or securities associated with the company.
Hence, a company that purchases equipment for $32,000 cash should show the transaction on the statement of cash flows under investing activities.
If two firms producing substitutes agree to fix prices, then their prices will 1.____________ . If two firms producing complements agree to fix prices, then their prices will 2.____________ .
Answer: increase; decrease.
Explanation:
Price fixing is a situation that occurs when two companies come together and form an agreement whereby the price of a particular goods or services will not be sold below that particular price.
When two firms producing substitutes agree to fix prices, then their prices will increase and when two firms that are producing complements fix prices, then their prices will reduce.
whipple corp. just issued 310,000 bonds with a coupon rate of 6.20 percent paid semiannually that mature in 15 years. The bonds have a YTM of 6.64 percent and have a par valueof 2000. how money was raised from the sale of the bonds?
Answer:
$594,338,200 was raised from the sale of the bonds.
Explanation:
The Price of the bond (PV) can be determined using a financial calculator as follows :
Pmt = ($2,000 × 6.20 %) / 2 = $62
P/yr = 2
n = 15 × 2 = 30
YTM = 6.64 %
FV = $2,000
PV = ?
Therefore, PV = $1,917.22
Money raised = 310,000 bonds × $1,917.22
= $594,338,200