When preparing the operating activities section of the statement of cash flows using the indirect method, non-operating gains are added to net income. true or false

Answers

Answer 1

Answer:

True

Explanation:


Related Questions

Mountain High Ice Cream Company transferred $65,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,500). Mountain High anticipates a $3,500 recourse obligation. The bank charges a 3% fee (3% of $65,000), and requires that amount to be paid at the start of the factoring arrangement.
Required:
Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met.

Answers

Answer:

Dr Cash 56,550

Dr Receivable from factor 5,500

Dr Loss on sale of receivables 6,450

    Cr Accounts receivables 65,000

    Cr Recourse liability 3,500

Explanation:

cash = ($65,000 x 90%) - factoring fees = $58,500 - $1,950 = $56,550

factoring fees = $65,000 x 3% = $1,950

loss on sale of receivables (includes factoring fees) = (accounts receivables + recourse liability) - (cash + receivable from factor) =  ($65,000 + $3,500) - ($56,550 + $5,500) = $68,500 - $62,050 = $6,450

A machine can be purchased for $140,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied, using a five-year life and a zero salvage value.
Year 1 Year 2 Year 3 Year 4 Year 5
Net income $ 9,500 $ 23,500 $ 64,000 $ 35,500 $ 94,000
Compute the machine’s payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and round payback period answer to 3 decimal places.)
Year Net Income Depreciation Net Cash Flow Cumulative Cash Flow
0 $ (140,000) $ (140,000)
1 $ 9,500
2 23,500
3 64,000
4 35,500 0
5 94,000 0
Payback period =

Answers

Answer:

2.554 years

Explanation:

Payback period calculates the amount of time it takes to recover the amount invested in a project from its cumulative cash flows.

to derive cash flow from net income, add depreciation back

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

$140,000 / 5 = $28,000

depreciation expense each year would be $28,000

cash flow in year 1 = $9500 +  $28,000 = $37,500

cash flow in year 2= $23,500 + $28,000 =$51,500

cash flow in year 3 =$64,000 + $28,000 = $92,000

cash flow in year 4 =$35,500 + $28,000 = $63,500

cash flow in year 5 =$94,000 + $28,000 = $122,000

in year 1, the amount recovered = $-140,000 + $37,500 = $-102,500

in year 2, the amount recovered = $-102,500 + $51,500 = $-51,000

in year 3, the amount recovered =  $-51,000 + $92,000 = $41,000

the amount invested is recovered in 2 years + 51,000 / 92,000 = 2.554 years

Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period:

Factory depreciation $13,645
Indirect labor 33,817
Factory electricity 3,856
Indirect materials 8,010
Selling expenses 18,985
Administrative expenses 10,679
Total costs $88,992

Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case:

Budgeted Volume (Cases) Processing Hours Per Case
Tortilla chips 1,500 0.15
Potato chips 3,600 0.12
Pretzels 2,700 0.10
Total 7,800

Required:
a. Determine the single plant-wide factory overhead rate.
b. Use the factory overhead rate in (a) to determine the amount of total and per-case factory overhead allocated to each of the three products under generally accepted accounting principles.

Answers

Answer:

a. $64 per hour

b. Tortilla chips = $9.60, Potato chips = $7.68 , Pretzels = $6.40

Explanation:

Plant-wide factory overhead rate = Budgeted Overhead / Budgeted Activity

Calculation of Budgeted Overheads :

Hint : Consider only Indirect Manufacturing Costs

Factory depreciation    $13,645

Indirect labor                 $33,817

Factory electricity          $3,856

Indirect materials            $8,010

Total                             $59,328

Calculation of Budgeted Hours :

Tortilla chips (1,500 × 0.15)  = 225

Potato chips (3,600 × 0.12)  = 432

Pretzels (2,700 × 0.10 )        = 270

Total                                     = 927

Plant-wide factory overhead rate =  $59,328 / 927

                                                       =  $64 per hour

Factory overhead allocated to each of the three products :

Tortilla chips  (0.15  × $64) = $9.60

Potato chips  0.12  × $64) = $7.68

Pretzels  (0.10 × $64) = $6.40

The risk-free rate is 4.5 percent and the market expected return is 10.8 percent. What is the expected return of a stock that has a beta of 1.30

Answers

Answer:

Expected return = 12.69%

Explanation:

The capital asset pricing model is a risk-based model for estimating the return on a stock.. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. Systematic risks are those which affect all economic actors in the market, they include factors like changes in interest rate, inflation, etc. The magnitude by which a stock is affected by systematic risk is measured by beta.

Under CAPM,

E(r)= Rf + β(Rm-Rf)

E(r)- expected return, Rf-risk-free rate , β= Beta, Rm= Return on market.

Using this model, we can work out the value of beta as follows:

β-1.30, Rf- 4.5%, Rm = 10.8%

E(r) = 4.5% +  1.30 × (10.8 - 4.5)%= 12.69

Expected return = 12.69%

Harmony Company sells handminusknit scarves. Each scarf sells for $ 45. The company pays $ 70 to rent vending space for one day. The variable costs are $ 12 per scarf. How many scarves should the company sell each day in order to break​ even? (Round your answer up to the nearest whole​ scarf.)

Answers

Answer:

2.12, rounded up to 3

Explanation:

To solve the equation, we first need to set up an equation.

Let x represent the number of scarves. We want one side of the equation to be the amount earned and the other to be the cost

45x is how much they earn since each scarf is $45

70+12x is how much they cost for rent and production

45x=70+12x

Subtract 12x from both sides

33x=70

Divide both sides by 33

x=2.12

It says we should round up so 3 scarves to break even

On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $120,000 in cash for the property. According to appraisals, the land had a fair value of $85,400 and the building had a fair value of $54,600. On September 1, Tristar signed a $42,000 noninterest-bearing note to purchase equipment. The $42,000 payment is due on September 1, 2022. Assume that 9% is a reasonable interest rate. On September 15, a truck was donated to the corporation. Similar trucks were selling for $2,700. On September 18, the company paid its lawyer $4,000 for organizing the corporation. On October 10, Tristar purchased maintenance equipment for cash. The purchase price was $17,000 and $600 in freight charges also were paid. On December 2, Tristar acquired various items of office equipment. The company was short of cash and could not pay the $5,700 normal cash price. The supplier agreed to accept 200 shares of the company's no-par common stock in exchange for the equipment. The fair value of the stock is not readily determinable. On December 10, the company acquired a tract of land at a cost of $22,000. It paid $3,000 down and signed a 11% note with both principal and interest due in one year. Eleven percent is an appropriate rate of interest for this note.

Required:
Prepare journal entries to record each of the above transactions.

Answers

Answer and Explanation:

The Journal entries is shown below:-

1. Land Dr, $73,200 (($85,400 ÷ (85,400 + 54,600)) × $120,000)

Building Dr, $46,800 ($54,600 ÷ (85,400 + 54,600)) × $120,000

      To Cash $120,000

(Being cash paid is recorded)

2. Equipment  Dr, $38,532.06  ($42,000 × 0.91743)

Discount on Note Payable Dr, $3,4687.94 ($3,780 × 0.91743)

     To Note Payable  $42,000

(Being equipment is recorded)

3. Truck  Dr, $2,700

     To Sales revenue $2,700

(Being truck is recorded)

4. Organisation cost Exp enses Dr, $4,000

         To Cash $4,000

(Being cash paid is recorded)

5. Maintenance Equipment  Dr, $17,600

      To Cash  $17,600

(Being cash paid is recorded)

6. Office Equipment  Dr, $5,700

      To Common Stock  $5,700

(Being office equipment is recorded)

7. Land  Dr, $22,000

     To Cash  $3,000

     To Note Payable  $19,000

(Being cash paid is recorded)

In the following example, the proposed debt issue would raise $4,000,000; the interest rate would be 10%. In addition, the EBIT would be $2,000,000. What would be the increase in the Earnings Per Share (EPS) from to current to the proposed structure

Answers

Answer:

$1.67

Explanation:

The computation of the increase in earning per share is shown below:

But before that first we need to find out the current and proposed earning

per share

Particulars                       Current                       Proposed

Number of shares        $400,000                    $240,000  (a)

EBIT                                  $2,000,000               $2,000,000

Less:

Interest                                                                $400,000

                                                                   ($4,000,000 ×0.10)

EBT                                   $2,000,000               $1,600,000

Less

Taxes                                $0                               $0

Net income                       $2,000,000              $1,600,000 (b)

EPS                                    $5                              $6.67 (a ÷ b)

Increase in EPS

= $6.67 - $5

= $1.67

Reno contributed $104,000 in cash plus equipment valued at $27,000 to the RD Partnership. The journal entry to record the transaction for the partnership is:

Answers

Answer:

Debit cash $104,000; debit equipment $27,000; credit Reno, Capital $131,000.

Explanation:

In this scenario, Reno contributed $104,000 in cash plus equipment valued at $27,000 to the RD Partnership. The journal entry to record the transaction for the partnership is debit cash $104,000; debit equipment $27,000; credit Reno, capital $131,000.

In Financial accounting, debit refers to an entry made which would either increase an expense or asset account; therefore, decreasing an equity or liability account. Credit refers to an entry made which would either increase an equity or liability account; therefore, decreasing an expense or asset account.

Generally, debit is an accounting entry which is made to the left of an account while credit is an accounting entry which is made to the right of an account. The standard rule is that, when a credit decreases an account, the opposite account should be increased with a debit.

Hence, in this case the RD Partnership will debit the cash received, $104,000 plus equipment valued at $27,000. Also, the opposite account or receivable account (Reno, capital) would be credited with $131,000 ($104,000+$27,000 = $131,000).

On January 1, 20X7, Pisa Company acquired 80 percent of Siena Company by purchasing 40,000 shares of Siena's common stock. There was no differential related to this transaction. The noncontrolling interest had a fair value equal to 20 percent of book value. The book value of Siena on December 31, 20X7 was as follows:
On January 1, 20X8, Pisa purchased an additional 12,500 shares directly from Siena for $25 per share. The elimination entry to prepare the consolidated financial statements on December 31, 20X7 would include one of the following answers:
a. credit to common stock for $625,000
b. debit to retained earnings for $37,500
c. credit to Investment in Siena Co. for $976,500
d. credit to NCI in the net assets of Siena Co. for $232,500

Answers

Answer:

a. credit to common stock for $625,000

Explanation:

When a company acquires more than 75% of holding in any company along with significant control then it is known as subsidiary. The company Is then able to record investment in subsidiary as debit balance in its statement of financial position. The cash consideration paid for acquiring the stock is recorded as investment in subsidiary. When the Pisa Company acquired Siena Company it has recorded the investment in Siena but when additional share are purchased Pisa will raise its stock capital.

Factory Overhead Rates, Entries, and Account Balance Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning August 1 $18,500,000 $44,000,000 Estimated direct labor hours for year 800,000 Estimated machine hours for year 1,250,000 Actual factory overhead costs for August $1,515,800 $3,606,300 Actual direct labor hours for August 64,500 Actual machine hours for August 105,000 a. Determine the factory overhead rate for Factory 1. Round your answer to two decimal places.

Answers

Answer:

Predetermined manufacturing overhead rate= $14.8 per machine hour

Explanation:

Giving the following information:

Factory 1

Estimated factory overhead= $18,500,000  

Estimated machine hours for year 1,250,000

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 18,500,000/1,250,000

Predetermined manufacturing overhead rate= $14.8 per machine hour

Hillside issues $2,000,000 of 6%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,447,990.Required:a. Prepare the January 1, 2013, journal entry to record the bonds issuance.b. Prepare the first two years of an amortization table using the straight-line method.c. Prepare the journal entries to record the first two interest payments.

Answers

Answer:

a.

Cash $2,447,990 (debit)

Investment in Bonds $2,447,990 (credit)

b.

Amortization Table for the first two years will be :

2013

Capital $22.307

Interest $97.693

Balance $2,425,683

2014

Capital $34,472

Interest $145,528

Balance $2,402,475

c.

First Payment : June 30, 2013

Interest Expense $48,957 (debit)

Investment in Bonds $11,043 (debit)

Cash $60,000 (credit)

Second Payment : December 31, 2013

Interest Expense $48,736 (debit)

Investment in Bonds $11,264 (debit)

Cash $60,000 (credit)

Explanation:

On the day of issuance of the Bonds, the entries will be :

Cash $2,447,990 (debit)

Investment in Bonds $2,447,990 (credit)

Use the data given to prepare an amortization schedule

Hint : First find the YTM as follows :

n = 15 × 2 = 30

FV = - $2,000,000

PV = $2,447,990

PMT = ($2,000,000 × 6%)/2 = $60,000

P/ yr = 2

YTM = ? 3.998

Using a financial calculator, the YTM is 3.998 or 4 %

Amortization Table for the first two years will be :

2013

Capital $22.307

Interest $97.693

Balance $2,425,683

2014

Capital $34,472

Interest $145,528

Balance $2,402,475

Journal Entries for the Payment of Interest :

First Payment : June 30, 2013

Interest Expense $48,957 (debit)

Investment in Bonds $11,043 (debit)

Cash $60,000 (credit)

Second Payment : December 31, 2013

Interest Expense $48,736 (debit)

Investment in Bonds $11,264 (debit)

Cash $60,000 (credit)

g If the velocity of money triples, while real GDP and money supply remain unchanged, in the long run, the price level:

Answers

Answer:

if velocity triples, then in the long run, price would triple

Explanation:

According to the quantity theory of money

velocity x money supply = output x price

if velocity triples, then in the long run, price would triple

Northern Communications has the following​ stockholders' equity on December 31​, 2018​:
Stockholders' Equity
Paid-In Capital:
Preferred Stock—5%, $11 Par Value; 150,000
shares authorized, 20,000
shares issued and outstanding $220,000
Common Stock—$2 Par Value; 575,000 s
hares authorized, 380,000
shares issued and outstanding 760,000
Paid-In Capital in Excess of Par—Common 680,000
Total Paid-In Capital 1,660,000
Retained Earnings 200,000
Total Stockholders' Equit $1,860,000
Requirement 1. Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for 2018 and 2019 if total dividends are $9,000 in 2018 and $45,000 in 2019. Assume no changes in preferred stock and common stock in 2019.
2. Record journal entries for 2018 assuming Northern communication declared dividend on Dec 31.

Answers

Answer:

2018

Preferred Stock Dividend Paid = $9,000

Common Stock Dividend = $0

2019

Preferred Stock Dividend Paid = $13,000

Common Stock Dividend = $32,000

Journal Entry

Dec 31

Dividend : Preference Stock $11,000 (debit)

Cash $9,000 (credit)

Shareholders for dividends $2,000 (credit)

Explanation:

Preference Stockholders have preference over Common Stockholders when it comes to payments of dividends.

That means preference dividends are paid first then the remainder belongs to the Common Stockholders.

If Preference Stocks are cumulative, dividends in arrears not paid in previous years are carried over to the next year and these have to be paid up before any distributions for that year are made.

Calculation of Stock Dividend

Stock Dividend gives a fixed dividend to Preference Stockholders every year.

Stock Dividend = ( $220,000 × 5%) = $11,000

2018

Preferred Stock Dividend Paid = $9,000

Preferred Stock Dividend in Arrears = $2,000

Common Stock Dividend = $0

2019

Preferred Stock Dividend Paid = ($2,000 - In-arrears + $11,000 - Current Year) = $13,000

Preferred Stock Dividend in Arrears = $0

Common Stock Dividend = ($45,000 - $13,000) = $32,000

Prepare journal entries to record these transactions:
A) Morrell Corporation disposed of two computers at the end of their useful lives. The computers had cost $4,800 and their Accumulated Depreciation was $4,800. No residual value was received.
B) Assume the same information as (a), except that Accumulated Depreciation, updated to the date of disposal, was $3,600.

Answers

Answer:

Cost of Computer= 4,800

Annual depreciation = 4,800

No residual value

a) Need to assume depreciation is 3,600 at the date of disposal

b) same information

            Recording the Disposal of a Long-lived Asset

                                                                      DEBIT     CREDIT

a. Accumulated Depreciation                     $4,800

   Computer Account                                                   $4,800

b. Accumulated Depreciation                      $3,600

   Loss on disposal                                       $1,200

   Computer                                                                     $4,800

Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the current year, Panner buys inventory costing $126,000 and then sells it to Watkins for $180,000. At the end of the year, Watkins still holds only $26,400 of merchandise. What amount of gross profit must Panner defer in reporting this investment using the equity method

Answers

Answer:

The gross profit that will be deferred is $2376

Explanation:

The cost of inventory = $126000

Selling price of inventory (revenue) = $180000

The remaining inventory with Watkins = $26400

Gross profit percentage = (revenue – cost) / revenue

Gross profit percentage = (180000 – 126000) / 180000 = 0.3 or 30%

Remaining value = $26400 × 30% = 7920

Ownership = 7920 × 30% = $2376

The gross profit that will be deferred is $2376

A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,250 of supplies on hand. The general ledger balance before any adjustment is $2,100. What is the adjusting entry for office supplies that should be recorded on May 31?

Answers

Answer:

Dr Supplies expense $850

Cr Supplies $850

Explanation:

Preparation of the adjusting entry for office supplies that should be recorded on May 31

Based on the information given we were told that the physical count of the supplies on hand for Masters, Inc. Shows the amount of $1,250 while the general ledger balance was the amount of $2,100, this means that the adjusting entry for office supplies on May 31 will be:

Dr Supplies expense $850

Cr Supplies $850

($2,100 -$1,250)

On June 10, 20X8, Playoff Corporation acquired 100 percent of Series Company's common stock. Summarized balance sheet data for the two companies immediately after the stock acquisition are as follows:
Playoff Corp. Series Company
Item Book Value Fair Value
Cash $ 15,000 $ 5,000 $ 5,000
Accounts Receivable 30,000 10,000 10,000
Inventory 80,000 20,000 25,000
Buildings & Equipment (net) 120,000 50,000 70,000
Investment in Series Stock 100,000
Total $ 345,000 $ 85,000 $ 110,000
Accounts Payable $ 25,000 $ 3,000 $ 3,000
Bonds Payable 150,000 25,000 25,000
Common Stock 55,000 20,000
Retained Earnings 115,000 37,000
Total $ 345,000 $ 85,000 $ 28,000
Required:
a. Prepare the consolidating entries required to prepare a consolidated balance sheet immediately after the acquisition of Series Company shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
b. Record the excess value (differential) reclassification entry.

Answers

Answer:

a. Consolidating Journal Entries:

Description                             Debit      Credit

June 10, 20X8:

Cash                                      $5,000

Accounts receivable             10,000

Inventory                              25,000

Building & Equipment         70,000

Unrealized Gain on fair value            $25,000

Accounts payable                                   3,000

Bonds payable                                     25,000

Investment in Series Stock                100,000

Excess Value (differential) 43,000

To record consolidating entries in the consolidated parent.

Goodwill                             43,000

Excess Value (differential)                  43,000

To record the reclassification of the excess value as Goodwill on acquisition.

Explanation:

a) Summarized balance sheet data

                                   Playoff Corporation             Series Company

Item                                                                    Book Value   Fair Value

Cash                                      $ 15,000               $ 5,000          $ 5,000

Accounts Receivable              30,000                 10,000            10,000

Inventory                                 80,000                 20,000           25,000

Buildings & Equipment (net) 120,000                 50,000           70,000

Investment in Series Stock   100,000

Total                                   $ 345,000              $ 85,000       $ 110,000

Accounts Payable              $ 25,000                 $ 3,000          $ 3,000

Bonds Payable                     150,000                  25,000          25,000

Common Stock                     55,000                  20,000

Retained Earnings               115,000                   37,000

Total                                $ 345,000                $ 85,000       $ 28,000

b) Consolidated entries are made for assets and liabilities acquired of the subsidiary using fair values.  An unrealized gain on fair value account is created to account for the differences in fair values.  Any excess or differential after consolidation and above the fair values is regarded as Goodwill arising from the acquisition.

Karim Corp. requires a minimum $9,900 cash balance. If necessary, loans are taken to meet this requirement at a cost of 2% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $10,300 and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.
July August September
Cash receipts $25,900 $33,900 $41,900
Cash payments 30,850 31,900 33,900
Prepare a cash budget for July, August, and September.

Answers

Answer:

                                              Karim Corp.

                                             Cash Budget

                                For July, August and September

                                                     JULY$       AUGUST$     SEPTEMBER$

Beginning cash balance              10,300        9,900           9,900

Cash receipts                                 25,900       33,900         41,900

Total cash available                    36,200         43,800         51,800

Cash payment                               30,850          31,900         33,900

Interest on bank loan                    0                    91                  53

Preliminary cash balance              5,350           11,809           17,847

Additional loan(loan repayment)  4,550            -1,909          -2,641

Ending cash balance                     9,900             9,900         15,206

                                               Loan Balance

Loan balance - Beginning of month    0                 4,550           2,641

Additional loan(loan repayment)       4,550           -1,909          -2,641

Loan balance - End of month            4,550             2,641            0

August Interest on bank loan = 4550 * 2% = $91  

September interest on loan = 2641 * 2% = 52.82 = $53

Hernandez, Inc. signed a ten-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $300,000 starting at the beginning of the first year, with title passing to Hernandez at the expiration of the lease. Hernandez treated this transaction as a operating lease. The drill press has an estimated useful life of 15 years, with no salvage value. Hernandez uses straight-line amortization for all of its plant assets. Aggregate lease payments were determined to have a present value of $1,800,000, based on implicit interest of 10%. What amount of amortization expense should be recorded for 2021?

Answers

Answer: $120,000

Explanation:

Depreciation is to be based on the cost of the asset being depreciated. In this scenario, the cost of the heavy duty drill press will be the Present Value of all the lease payments for the entire 10 years because it is said that the title will pass to Hernandez Inc. afterwards so the lease payments can be considered as payment.

Straight Line Amortisation = [tex]\frac{Cost of Asset - Salvage Value}{Estimated Useful Life}[/tex]

Straight Line Amortisation = [tex]\frac{1,800,000 - 0}{15}[/tex]

Straight Line Amortisation = $120,000 per year

When group investors become aware of overseas investment opportunities and are willing to diversify their portfolios internationally, __________.

Answers

Answer:

they benefit from an expanded opportunity set.

Explanation:

As most of the business organizations focused on grabbing the investment opportunities which leads to diversify their business in terms of expanding the business in various locations, maximize the market share etc

This can be done with the help of opportunity set i.e. to expanded through which the firm could get the benefit of it

Hence, this would be the answer

Baj Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The company has provided the following data for the most recent year. Estimated total fixed manufacturing overhead from the beginning of the year $ 534,000 Estimated activity level from the beginning of the year 30,000machine-hours Actual total fixed manufacturing overhead $ 487,000 Actual activity level 27,400machine-hours The predetermined overhead rate per machine-hour would be closest to:__________
A) $17.80
B) $19.49
C) $16.23
D) $17.77

Answers

Answer:

A) $17.80

Explanation:

The computation of the predetermined overhead rate per machine hour is shown below:

= Estimated total fixed manufacturing overhead from the beginning of the year ÷ estimated activity level from the beginning year machine hours

= $534,000 ÷30,000 machine hours

= $17.80

We simply applied the above formula so that the predetermined overhead rate could come

All of the following are protective functions of packaging except: Group of answer choices Cushioning the contents All are protective functions Being tamper-proof Providing uniform weight distribution Enclosing the materials

Answers

Answer:

All are protective functions

Explanation:

The packaging is the process in which the firm wrap the product so that it cannot be damage stole or lost by maintaining its product id

There are various function of packaging like tamper-proofing, uniform weight, the material disclosed, content cushioned so that the packaging should be done in a systematic manner

Therefore the second option is correct

Which of the following is an advantage of a partnership?
A.ease of starting and ending the business
B. Shared management and pooled skills
C. Unlimited liability
D. Little time commitment

Answers

Answer:

B

Explanation:

as if u share a business then the time and management is also shared

hope this helps

i would appreciate it if u can heart and like my answer and maybe even give it 5 stars or brainliest

1. Peter applied for a job at an accounting firm and a consulting firm. He knows that 50% of similarly qualified applicants receive job offers from the accounting firm; only 40% of similarly qualified applicants receive job offers from the consulting firm Peter also knows that 60% of similarly qualified applicants receive an offer from one firm or the other. Hints: A

Answers

Answer:

75%

Explanation:

Assume that:

X is the probability that the Peter, qualified accountant would receive offer from the accounting firm AND

Y is the probability that the Peter, qualified accountant would receive offer from the consulting firm.

Here,

P(X) is 50%, P(Y) is 40% and P(X∪Y) is 60%

Now we want to find P(X/Y) = ?

We also know that:

P(X/Y) = P(X∩Y) STEP1 /  P(Y)

By putting values, we have:

P(X/Y) = 0.3 / 0.4 = 0.75 = 75%

Step 1: Find P(X∩Y)

P(X∪Y) = P(X) + P(Y)  -   P(X∩Y)

This implies that:

P(X∩Y) = P(X)  +  P(Y)  -   P(X∪Y)

By putting values we have:

P(X∩Y) = 0.5 + 0.4   -  0.6   =  0.3

Chinawa, a major processor of cheese sold throughout the United States, employs one hundred workers at its principal processing plant. The plant is located in Heartland Corners, which has a population that is 50 percent white and 25 percent African American, with the balance Hispanic American, Asian American, and others. Chinawa requires a high school diploma as a condition of employment for its cleaning crew. Three-fourths of the white population complete high school, compared with only one-fourth of those in the minority groups. Chinawa has an all-white cleaning crew. Has Chinawa violated Title VII of the Civil Rights Act of 1964?

Answers

Answer:

Chinawa has violated Title VII of the Civil Rights Act of 1964

Explanation:

Title VII of the Civil Rights Act of 1964 states that:

It will be unlawful employment practice for an employer -

(1) to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual's race, color, religion, sex, or national origin; or

(2) to limit, segregate, or classify his employees or applicants for employment in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual's race, color, religion, sex, or national origin.

Since one-fourth of those in minority group complete high school, it is expected of him to hire from those group in-order to balance his cleaning crew.

"According to Google's 2013 Study on the Incremental Clicks Impact of Mobile Search Advertising, the vertical with the highest CTR was"

Answers

The available options are:

a)Classified and Local

b) Education and Government

c)Media and Entertainment

d)Technology

Answer:

a)Classified and Local

Explanation:

Google's 2013 Study on the Incremental Clicks Impact of Mobile Search Advertising, was conducted from March 2012 to April 2013, on more than 300 U.S. AdWords accounts from 12 verticals.

The results, which shows the verticals range from 82 percent incremental clicks in the general service industry to 97 percent in the classified ad vertical.

This infographic provides details on the 12 different verticals which are:

1. Classified and Local - 97

2. Business and Industrial - 94%

3. Education and Government - 94%

4. Technology - 90%

5. Finance - 87%

6. Automative - 86%

7. Consumer Packaged Goods - 86%

8. Media and Entertainment - 86%

9. Retail - 86%

10. Travel - 85%

11. Healthcare - 83%

12. Service in all Veriticals - 82%

Hence, the right answer is CLASSIFIED AND LOCAL with 97%

Small groups of consumers that interact with products or services and give their feedback based on their experiences are known as?

A. Test subjects

B. Focus group

C. Market research audiences

D. Survey takers

Answers

Answer:

B. Focus group

Explanation:

Use series of elimination on this one.

Test subjects- No

Market Research Audience- Those are people that watch the tests that you will conduct with your focus group.

Survey takers- Too simple.

Hope that I could help you!

Small groups of consumers that interact with products or services and give their feedback based on their experiences are known as Focus group. Option (b) is correct.

What do you mean by Product?

Any good or service you offer to satisfy a customer's need or desire is a product. There are both real and virtual ones. Durable things (such as automobiles, furniture, and computers) and nondurable items are examples of physical products (like food and beverages).

A focus group is a market research technique that involves gathering 6–10 individuals in a space to offer input on a certain commodity, concept, or marketing campaign.

Therefore, Option (b) is correct. Small groups of consumers that interact with products or services and give their feedback based on their experiences are known as Focus group.

Learn more about Product, here;

https://brainly.com/question/22852400

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A pension plan that promises employees a fixed annual pension benefit, based on years of service and compensation, is called a(n)The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is

Answers

Answer:

1. Defined Benefit Plan

2. debit Vacation Pay Expense; credit Vacation Pay Payable

Explanation:

1. With a Defined Benefit Plan, employers promise to pay employees a pension based on factors like years of service and salary. The plan will be sponsored by the employer and will be managed by the company.

2. As the Vacation is an expense, it will need to be debited to an expense account being the Vacation Pay Expense account. It will also be credited to the Vacation Pay Payable to reflect that this is a liability that the company must fulfil.

Beckett, Inc., has no debt outstanding and a total market value of $200,000. Earnings before interest and taxes, EBIT, are projected to be $30,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 18 percent higher. If there is a recession, then EBIT will be 20 percent lower. Beckett is considering a debt issue of $75,000 with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 8,000 shares outstanding. Ignore taxes for this problem.
a-1.
Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your final answers to 2 decimal places (e.g., 32.16).)
EPS
Recession $
Normal $
Expansion $
a-2.
Calculate the percentage changes in EPS when the economy expands or enters a recession. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answers as a percent.)
Percentage changes in EPS
Recession %
Expansion %
b-1.
Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your final answers to 2 decimal places (e.g., 32.16).)
EPS
Recession $
Normal $
Expansion $
b-2.
Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).)
Percentage changes in EPS
Recession %
Expansion %

Answers

Answer:

Beckett, Inc.

Earnings Per Share:

a-1. Earnings Per Share:

Economic Conditions                          Normal    Expansion  Recession

Earnings before interest and taxes = $30,000  $35,400      $24,000

Earnings per share:

Recession = $24,000/8,000                                                       $3.00

Normal = $30,000/8,000                   $3.75

Expansion = $35,400/8,000                                    $4.43

a-2. Percentage changes in EPS:

Recession = -$0.75/$3.75 x 100 = -20%

Expansion = $0.68/$3.75 x 100 = 18.13%

b-1. EPS after recapitalization:

Economic Conditions                          Normal    Expansion  Recession

Earnings before interest and taxes = $30,000  $35,400      $24,000

Interest at 8%                                         $8,000    $8,000        $8,000

Earnings after interest                        $22,000  $27,400       $16,000

Earnings per share:

Recession = $16,000/8,000                                                       $2.00

Normal = $22,000/8,000                   $2.75

Expansion = $27,400/8,000                                    $3.43

b-2. Percentage changes in EPS:

Recession: -$0.75/$2.75 x 100 = -27.27%

Expansion:  $0.68/$2.75 x 100 = 24.73%

Explanation:

1. Data:

Market Value = $200,000

Economic Conditions                          Normal    Expansion  Recession

Earnings before interest and taxes = $30,000  $35,400      $24,000

Issue of debt for $75,000 with 8% interest

Proceeds to repurchase shares of stock.

Outstanding shares = 8,000

Ignore taxes

A "tariff" on imported products is an example of a trade barrier that is always preferred to the free trade, because it generates government revenues in addition to restricting the amounts of imports.
A. True
B. False

Answers

Answer:

The answer is true

Explanation:

One of the most common trade barriers is a tariff. Tariff is a tax imposed by the government on imported goods and services. Imposing tariffs on imported goods and services raise their prices.

Imposing tariff on imported goods can either be done to raise government revenue or to protect indigenous companies.

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