Answer:
$347,000
Explanation:
Financing Activities are Activities regarding sourcing and repayment of finance.
Also, Consider only transactions or events involving movement of cash.
Cash flow from Financing Activity
Proceeds from Issue of shares $513000
Dividend Paid ($91000)
Purchase of treasury stock ($75000)
Net Cash Provided by Financing Activities $347,000
therefore,
The financing section of the statement of cash flows will report net cash inflows of $347,000.
After the U.S. film Django Unchained was recut and released in China, it performed poorly, partly because Chinese filmgoers had already seen the unedited film on DVD. What disadvantage of competing globally does this situation reflect?
The situation of Django Unchained's release in China after a month tuning out to be a poor-performing one, mainly because of the fact disadvantage of global access when competing globally.
What is the significance of global competition?Global competition can be referred to or considered as a situation wherein a firm or an organization has a direct competition with the other players in the industry on a global scale. Liberalization leads to be an advantage for global competition, but not in all cases.
One of the main disadvantages that liberalization that global competition brings is the one of eased global access. This also led to failure of the film Django Unchained in China, which released a month in the country a month after its global release.
Therefore, the significance of global competition has been aforementioned.
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Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 10.5 percent for the next three years, with the growth rate falling off to a constant 5.4 percent thereafter. If the required return is 10.6 percent and the company just paid a dividend of $5.00, what is the current share price
Answer:
Current share price = $116.04
Explanation:
Note: See the attached file for the calculation of present values (PV) for year 1 to 3 dividends.
From the attached excel file, we have:
Previous year dividend in year 1 = Dividend just paid = $5
Total of dividends from year 1 to year 3 = $14.97289157241870
Year 3 dividend = $6.746163125
Therefore, we have:
Year 4 dividend = Year 3 dividend * (100% + Dividend growth rate in year 4) = $6.746163125 * (100% + 5.4%) = $7.11045593375
Share price at year 3 = Year 4 dividend / (Rate of return - Perpetual dividend growth rate) = $7.11045593375 / (10.6% - 5.4%) = $136.7395371875
PV of share price at year 3 = Price at year 3 / (100% + Required return)^Number of years = $136.7395371875 / (100% + 10.6%)^3 = $101.07150317234
Therefore, we have:
Current share price = Total of dividends from year 1 to year 3 + PV of share price at year 3 = $14.97289157241870 + $101.07150317234 = $116.04
Bramble Corporation purchased machinery on January 1, 2022, at a cost of $300,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $35,000. The company is considering different depreciation methods that could be used for financial reporting purposes.
Required:
Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate.
Answer:
Straight-line method
Year Depreciation Book value
1 $66,250 $233,750
2 $66,250 $167,500
3 $66,250 $101,250
4 $66,250 $35,000
Declining-balance method
Year Depreciation Book value
1 $150,000 $150,000
2 $75,000 $75,000
3 $37,500 $37,500
4 $2,500 $35,000
Hazel Company allocates overhead based on direct labor hours. It allocates overhead costs of $16,200 to two different jobs as follows:
Job 1: (12 hours) = $8,100; Job 2: (12 hours) = $8,100
The production process for Job 2 was then automated. Now Job 2 requires only 3 hours of direct labor but 5 hours of mechanical processing. As a result, total overhead increases to $21,000. Select the incorrect statement from the following.
A. While the actual processing of Job 1 was not affected by automation, it received an increase of $9,900 in its overhead allocation.
B. The use of machine hours as the allocation base would significantly improve the overhead cost allocations.
C. The increased overhead costs associated with automation should be allocated to both jobs.
D. Automation and the costing system used by the company cause the cost of Job 1 to be significantly overstated.
Answer:
Hazel Company
The incorrect statement is:
A. While the actual processing of Job 1 was not affected by automation, it received an increase of $9,900 in its overhead allocation.
Explanation:
Option A is the correct answer because Job 1's overhead cannot increase by $9,900. Therefore, this purported increase cannot be verified as correct. Most likely the overhead allocation of Job 1 will decrease since Job 2 has another basis for allocating overhead to it, which Job 1 does not incur. Overhead allocation using ABC system is more efficient than the traditional method of using a predetermined rate because overhead is now allocated based on consumption rather than using some arbitrary basis.
On January 14, at the end of the second week of the year, the totals of Castle Company's payroll register showed that its store employees' wages amounted to $33,482 and that's warehouse wages amounted to $13,560. Withholdings consisted of federal income taxes, $5,110, employer's Social Security taxes at the rate of 6.2 percent, and employees' Social Security taxes at a rate of 6.2 percent. Both the employer's and employees' Social Security taxes are based on the first $118,500, and no employee has reached the limit. Additional withholdings were Medicare taxes at the rate of 1.45 percent on all earnings and charitable contributions withheld, $845.
Required:
a. Calculate the amount of Social Security and Medicare taxes to be withheld and write the general journal entry to record the payroll. Round answers to two decimal places.
b. Write the general journal entry to record the employer's payroll taxes assuming that the federal unemployment tax is 0.6 percent of the first $7,000, that the state unemployment tax is 5.4 percent of the same base, and that no employee has surpassed the $7,000 limit.
Answer:
a)
Dr Store wages expense 33,482
Dr Warehouse wages expense 13,560
Cr Federal income tax withholdings payable 5,110
Cr Social security taxes withheld payable 2,916.60
Cr Medicare taxes withheld payable 682.11
Cr Charitable contributions withheld payable 845
Cr Wages payable 37,488.29
b)
Dr Payroll taxes expense 6,421.23
Cr Social security taxes payable 2,916.60
Cr Medicare taxes payable 682.11
Cr SUTA taxes payable 2,540.27
Cr FUTA taxes payable 282.25
Here is a linear demand function: Q = 10 -0.5P. Find its price function by inverting the demand function. Then find its total revenue function by multiplying through by Q. The linear demand function Q = 400 -250P inverts into the price function P = 1.6 -0.004Q. Multiplying this by Q gives its total revenue function TR = 1.6Q -0.004. Evaluate the following expression.
Y = 5(2X + 3)2 -2X2
Answer:
[tex]P = 20 - 2Q[/tex]
Explanation:
[tex]Q = 10 - 0.5P[/tex]
Price function can be estimated by inverting the demand function.
[tex]Q = 10 - 0.5P \\\\0.5P = 10 - Q\\P = 10/0.5 - Q/0.5 \\P = 20 - 2Q[/tex]
This is the price function.
Total revenue function can be estimated using the given formula,
[tex]TR = P*Q \\ = (20 - 2Q) Q \\ = 20Q - 2Q^2[/tex]
The linear demand function is given by,
[tex]Q = 400 - 250P \\[/tex]
Price function is given by,
[tex]P = 1.6 - 0.004Q \\[/tex]
Total revenue function is thus given by,
[tex]TR = P*Q \\ = 1.6Q - 0.004Q^2[/tex]
[tex]Y = 5(2X+3)^2 - 2X^2 \\Y = 5(4X^2 + 9 + 12X) - 2X^2\\Y = 20X^2 + 45 + 60X - 2X^2\\Y = 18X^2 + 45 + 60X \\[/tex]
The derivative of Y with respect to x is,
[tex]dY/dX = 36X + 60\\[/tex]
Equating this equal to 0 we get,
[tex]36X + 60 = 0 \\36X = -60 \\X = -10/6 \\\\X= -1.66[/tex]
How loss on sale of sports material is entered in Income and Expenditure Account? If sports material book value is $120 but sold at $50?
Answer: $70
Explanation:
The amount of loss on sale of sports material that is entered in Income and Expenditure Account will be the difference between the sports material book value and the sales price. This will be:
= $120 - $50
= $70
Therefore, the loss on sale of sports material is $70.
Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual’s investments.
Q1. Refer to Fact Pattern 17-A1. With respect to Mutual’s duties, Neil’s performance most likely
a. discharges Mutual from the contract.
b. has no effect on Mutual’s performance.
c. increases Mutual’s duties under the contract.
d. suspends Mutual’s duty to perform.
Q2. Refer to Fact Pattern 17-A1. Neil’s performance is most likely
a. a material breach.
b. a minor breach.
c. Mutual’s breach.
d. no breach.
Answer:
Q1 : a. discharges mutual from the contract.
Q2 : a. a material breach
Explanation:
Neil is hired by Mutual company for a two year contract. Neil has certain duties which he has to fulfill during the employment term. Neil is often absent without any proper explanation and reason. This is against the term of employment contract. When he is in the office he is not attentive and is not able to manage the mutual investments. Neil is doing a material breach since he is not fulfilling the basic requirements.
During 2020, Vaughn Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Vaughn for a lump sum of $131,670 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below.
Type No. of Chairs Estimated Selling
Price Each
Lounge chairs 880 $90
Armchairs 660 80
Straight chairs 1,540 50
During 2020, Sarasota sells 440 lounge chairs, 220 armchairs, and 264 straight chairs.
What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020?
Answer:Gross profit realized during 2020 =$30,899
amount of inventory of unsold straight chairs on December 31, 2020 =$63,800
Explanation:
A)Vaughn Furniture Company purchases a carload of wicker chairs at a cost of a lump sum of $131,670 in 2020
Now the total number of chairs purchased per type is;
Lounge chairs 880
Armchairs 660
Straight chairs 1,540
Total = 3,080 chairs purchased
Also, Vaughn sells
440 Lounge chairs at $90 each = 440 x 90=$39,600
220 Armchairs at $80 each= 220 x 80 =$ 17600
264 Straight chairs at $50 each = 264 x 50 =$13,200
Total selling price of 924 chairs =$39,600+$ 17600+$13,200 =$70,400
Now , if 3,080 chairs can be purchased for a-lump sum amount of $131,670
924 chairs can be puchased in a lump sum of (924 x 131,670) /3080
=$39,501
Remember that the Selling price for 924 chairs =$70,400
Gross profit realized during 2020 = $70,400 -$39,501=$30,899
b).
Estimated Selling Price value for straight chair =$50
Straight chairs remaining= 1540-264=1276
1276 at $50 each = 1276 X 50 =$63,800
When bonds are issued at a discount and the effective interest method is used for amortization, at each subsequent interest payment date, the cash paid is:
Question Completion:
A. More than the effective interest.
B. Less than the effective interest.
C. Equal to the effective interest.
D. More than if the bonds had been sold at a premium
Answer:
When bonds are issued at a discount and the effective interest method is used for amortization, at each subsequent interest payment date, the cash paid is:
B. Less than the effective interest.
Explanation:
This cash payment is the product of the bond's face value multiplied by the coupon rate. The interest expense is increased by the amortized portion of the discount for the particular period. This means that the interest expense will be higher than the cash payment for interest because of the discount granted at issuance. And the interest expense is the product of the outstanding debt multiplied by the effective interest rate.
The cash paid would be less than the effective interest at each subsequent interest payment date when bonds are issued at a discount and the effective interest method is used for amortization.
The cash payment is computed by multiplying the face value of the bond with coupon rate. Here, an increase in interest expense is seen due to the discount in the amortized part.
Thus, the payment of interest would exceed means that the interest the payments in cash due to the issuance of the bond at discount.
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Presented below is information for Marin Company.
1. Beginning-of-the-year Accounts Receivable balance was $23,100.
2. Net sales (all on account) for the year were $104,700. Marin does not offer cash discounts.
3. Collections on accounts receivable during the year were $85,400.
Marin is planning to factor some accounts receivable at the end of the year. Accounts totaling $13,900 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 6% of the balances for probable adjustments and assesses a finance charge of 5%. The fair value of the recourse obligation is $1,075.
Required:
Prepare (summary) journal entries to record the items noted above.
Answer:
Debit Accounts Receivable for $104,700; and Credit Sales Revenue for $104,700.
Debit Cash for $85,400; and Credit Accounts Receivable for $85,400.
Explanation:
The (summary) journal entries to record the items noted will look as follows:
Particulars Debit ($) Credit ($)
Accounts Receivable 104,700
Sales Revenue 104,700
(To record net sales (all on account) for the year.)
Cash 85,400
Accounts Receivable 85,400
(Collections on accounts receivable during the year.)
Wildhorse Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 24,200 golf discs is:
Materials $ 12,342
Labor 36,542
Variable overhead 25,894
Fixed overhead 47,916
Total $122,694
Wildhorse also incurs 5% sales commission ($0.35) on each disc sold.
McGee Corporation offers Wildhorse $4.80 per disc for 4,800 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Wildhorse. If Wildhorse accepts the offer, its fixed overhead will increase from $47,916 to $53,006 due to the purchase of a new imprinting machine. No sales commission will result from the special order.
(a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Reject
Order Accept
Order Net Income
Increase
(Decrease)
Revenues $ $ $
Materials
Labor
Variable overhead
Fixed overhead
Sales commissions
Net income $ $ $
(b) Should Wildhorse accept the special order?
Wildhorse should
reject/accept
the special order .
Answer:
Wildhorse Company
Incremental Analysis for the special order:
Sales Revenue (4,800 * $4.80) $23,040
Variable cost (4,800 * $3.09) 14,832
Contribution margin $8,208
Fixed overhead increase 5,090
Net Income $3,118
b) Wildhorse should accept the special order.
Explanation:
a) Data and Calculations:
Materials $ 12,342
Labor 36,542
Variable overhead 25,894
Total variable cost $74,778
Unit variable cost $3.09 ($74,778/24,200)
Fixed overhead 47,916
Total $122,694
Units produced = 24,200
Selling price per unit = $7
Additional cost:
Sales commission = $0.35 per disc
Special order for 4,800 discs at $4.80
Increase in fixed overhead $5,090 ($53,006 - $47,916)
Ron Santana is interested in buying the stock of First National Bank. While the bank's management expects no growth in the near future, Ron is attracted by the dividend income. Last year the bank paid a dividend of $5.65. If Ron requires a return of 14 percent on such stocks, what is the maximum price he should be willing to pay for a share of the bank's stock?
Answer:
the maximum price that willing to pay is $40.36
Explanation:
The computation of the maximum price that willing to pay is shown below:
= Annual dividend ÷ required rate of return
= $5.65 ÷ 14%
= $40.36
Hence, the maximum price that willing to pay is $40.36
we simply applied the above formula so that the correct price could come
The selection of delegates to the national convention produces _____.
eligen a los presidentes
Explain the role of secondary data in gaining customer insights
Exercise 9-11 Working Backwards from Labor Variances [LO9-5] The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard labor cost for a motor tune-up is given below: Standard Hours Standard Rate Standard Cost Motor tune-up 2.50 $34.00 $85.00 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 54 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labor rate variance $ 350 F Labor spending variance $ 500 U Required: 1. Determine the number of actual labor-hours spent on tune-ups during the week. 2. Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.)
Answer and Explanation:
The computation is shown below;
a. The number of actual hours spent on tune-ups is
as we know that
Total Labor Variance = Labor Rate Variance + Labor Efficiency Variance
$500U = $350F + Labor Efficiency Variance
$500 = -$350 + Labor Efficiency Variance
Labor Efficiency Variance = $850
Now
Efficiency Variance = Standard Rate × (Actual Hours - Standard Hours )
$850 = 34 × (Actual hours - 2.5 × 54)
$850 = 34Actual Hours - $4,590
$5,440 = 34 actual hours
Actual Hour = 160 Hours
b. The actual hourly rate is
Labor Rate Variance = Actual hours × (Actual rate - Standard rate)
-350 = 160 × (Actual rate - $34)
-350 = 169 Actual rate - $5,440
$5,090 = 169 Actual rate
Actual rate = $30.12
On June 30, Petrov Co. has $140,800 of accounts receivable.
July 4 Sold $8,075 of merchandise (that had cost $5,168) to customers on credit, terms n/30.
9 Sold $20,398 of accounts receivable to Main Bank. Main charges a 8% factoring fee.
17 Received $4,441 cash from customers in payment on their accounts.
27 Borrowed $11,656 cash from Main Bank, pledging $15,153 of accounts receivable as security for the loan.
Required:
Prepare journal entries to record the above selected July transactions.
Answer:
July 04
Dr Accounts receivable $8,075
Cr Sales $8,075
July 04
Dr Cost of goods sold $5,168
Cr Merchandise inventory $5,168
July 09
Dr Cash $18,766.16
Dr Factoring fee expense $1,631.84
Cr Accounts receivable $20,398
July 17
Dr Cash $4,441
Cr Accounts receivable $4,441
July 27
Dr Cash $11,656
Cr Notes payable $11,656
July 27
No journal entry
Explanation:
Preparation of journal entries to record July transactions.
July 04
Dr Accounts receivable $8,075
Cr Sales $8,075
July 04
Dr Cost of goods sold $5,168
Cr Merchandise inventory $5,168
July 09
Dr Cash $18,766.16
($20,398-$1,631.84)
Dr Factoring fee expense $1,631.84
($20,398*8%)
Cr Accounts receivable $20,398
July 17
Dr Cash $4,441
Cr Accounts receivable $4,441
July 27
Dr Cash $11,656
Cr Notes payable $11,656
July 27
No journal entry
WHAT IS OPERANT CONDITIONG
Answer:
Operant conditioning is a type of associative learning process through which the strength of a behavior is modified by reinforcement or punishment. It is also a procedure that is used to bring about such learning.
Operant conditioning refers to the conditioning of behaviours and responses that are under the control of animals and human beings and are emitted voluntarily by them. The behaviour is learned, maintained or changed through its consequences called reinforcers.
At the end of the video, Keith Reinhard says that advertisers have the ability not only to lift up the brands they work for but also to lift up the human spirit. Do you think this is true? Is it their responsibility? Explain.
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The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $20 million, it currently uses only common equity, it has no future plans to use preferred stock in its capital structure, and its federal-plus-state tax rate is 25%. The CFO has estimated next year's EBIT for three possible states of the world: $5.5 million with a 0.2 probability, $2.6 million with a 0.5 probability, and $600,000 with a 0.3 probability.
Required:
Calculate Neal's expected ROE, standard deviation, and coefficient of variation.
Answer:
Neal's expected ROE = 4.62%
Neal's standard deviation = 2.46%
Neal's coefficient of variation = 0.53
Explanation:
Note: See the attached excel file for the calculations of Neal's Expected ROE and Deviation.
From the attached excel, we can have:
Neal's expected ROE = Total expected ROE = 0.0462, or 4.62%
Neal's standard deviation = (Total Deviation)^0.5 = 0.00060736^0.5 = 0.0246, or 2.46%
Neal's coefficient of variation = Neal's standard deviation / Neal's expected ROE = 2.46% / 4.62% = 0.53
Eagle Company used the following data to evaluate its current operating system. - sells items for $24 each - used a budgeted selling price of $24 per unit. Actual Budgeted Units sold 177,000 units 184,000 units Variable costs $1,090,000 $1,290,000 Fixed costs $804,000 $780,000 What is the static-budget variance of operating income
Answer:
$100,000 unfavorable
Explanation:
Given the above information,
Sales = Selling price per unit × unit sold
Actual sales = $24 × 177,000 units = $4,248,000
Budgeted sales = $24 × 184,000 units = $4,416,000
Operating income = Actual sales - Variable income - Fixed income
Actual operating income = $4,248,000 - $1,090,000 - $804,000 = $2,354,000
Budgeted operating income = $4,416,000 - $1,290,000 - $780,000 = $2,364,000
Therefore,
Static budget variance of operating income = Actual operating income - Budgeted operating income
= $2,354,000 - $2,364,000
= $100,000 unfavorable
"Ayres Services acquired an asset for $80 million in 2021. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset’s cost is depreciated by MACRS. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2021, 2022, 2023, and 2024 are as follows: ($ in millions) 2021 2022 2023 2024 Pretax accounting income $ 330 $ 350 $ 365 $ 400 Depreciation on the income statement 20 20 20 20 Depreciation on the tax return (25 ) (33 ) (15 ) (7 ) Taxable income $ 325 $ 337 $ 370 $ 413 Required: For December 31 of each year, determine (a) the cumulative temporary book-tax difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account. (Leave no cell blank, enter "0" wherever applicable. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)"
a. The cumulative temporary book-tax difference for the depreciable asset are as follows:
December 31, 2021 = $60 million
December 31, 2022 = $40 million
December 31, 2023 = $20 million
December 31, 2024 = $0
b. The balance to be reported in the deferred tax liability account are as follows.
December 31, 2021 = $15 million
December 31, 2022 = $10 million
December 31, 2023 = $5 million
December 31, 2024 = $0
Explanation:
Note: See the attached excel file for the calculation of cumulative temporary book-tax difference for the depreciable asset and the balance to be reported in the deferred tax liability account for December 31 of years 2021, 2022, 2023 and 2024 in bold red color.
In the attached excel file, the following formula are used:
Cumulative Temporary differences at December 31 of the current year = Cumulative Temporary differences at December 31 of the previous year + (Depreciation on the tax return at December 31 of the current year - Depreciation on the income statement at December 31 of the current year)
Balance to be reported in deferred tax liability account at December 31 of the current year = Cumulative Temporary differences at December 31 of the current year * Tax rate
Identify which economic indicator should be used to track each of the following. a. The overall size of the economy the unemployment rate real GDP nominal GDP real GDP growth b. Labor market performance inflation business confidence the unemployment rate consumer confidence c. The future trajectory of economic activity the employment cost index real GDP inflation annual growth of the S&P 500 d. Wages and benefits business confidence real GDP the employment cost index consumer confidence
Answer:
a. The overall size of the economy ⇒ real GDP
The real GDP is adjusted for inflation and so would show the overall size of the economy in more accurate terms.
b. Labor market performance ⇒ the unemployment rate
The unemployment rate is best used to show how the labor market is performing because it shows the amount of people who are employed and those who are not in a given period.
c. The future trajectory of economic activity ⇒ annual growth of the S&P 500
The S&P 500 shows the performance of 500 large companies in the U.S. Their performance can be used to anticipate the trajectory of future economic activity because they influence the economy due to their large size.
d. Wages and benefits ⇒ the employment cost
The employment cost shows the wages and benefits that have to be paid to labor.
Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 10,200,000 $ 32,000,000 Net operating income $ 816,000 $ 3,200,000 Average operating assets $ 2,550,000 $ 16,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 17%. Compute the residual income for each division. 3. Is Yokohama’s greater amount of residual income an indication that it is better managed?
Answer: See explanation
Explanation:
1. The return on investment for Osaka will be:
= (816000/10200000) × (10200000 × 2550000)
= 32%
The return on investment for Yokohama will be:
= (3200000/32000000) × (32000000/16000000)
= 20%
2. See attachment
3. Yokohama’s greater amount of residual income is not an indication that it is better managed. Since Yokohama Division is bigger than Osaka Division, it's expected that Yokohama will have a greater residual amount.
Kingston Manufacturing has 27,000 labor hours available for producing X and Y. Consider the following information:
Product X Product Y
Required labor time per unit (hours) 2 3
Maximum demand (units) 6,000 8,000
Contribution margin per unit $5 $6
Contribution margin per labor hour $2.50 $2
If Kingston follows proper managerial accounting practices, which of the following production schedules should the company set?
Product A Product B
A. 0 units 8,000 units
B. 1,500 units 8,000 units
C. 6,000 units 0 units
D. 6,000 units 5,000 units
E. 6,000 units 8,000 units
A. Option A.
B. Option B.
C. Option C.
D. Option D.
E. Option E.
The following costs are relevant to the decision situation cited except:____.
a. the cost of hiring a full-time staff attorney, in a decision to establish an in-house legal department or retain the services of a prominent law firm.
b. the remodeling cost of existing office space, in a firm's decision to stay at its current location or move to a new building.
c. the long-term salary costs demanded by Joe Torrez (a superstar) and Rip Moran (an average player) in baseball contract negotiations, in a decision that determines the amounts by which ticket prices must be raised.
d. the cost to enhance an airline's Web site, in a decision to expand existing service to either Salt Lake City or Phoenix.
e. the commissions that could be earned by a salesperson, in a decision that involves salesperson compensation methods (i.e., commissions or flat monthly salaries).
Answer and Explanation:
In the case when Smith follows proper accounting practice with respect to the managerial accounting so the production schedules should the company set is
Product A Product B
D. 6,000 units 5,000 units
D. Option D
In addition to this,
The costs i.e not relevant for the decision purpose is
D. the cost i.e. incurred for increase a website of an airline in a decision to diversify inherent service to Salt Lake City or Phoenix.
Step 1:
Enter the following entries for the month of August. A. Purchased raw materials on account: $3,100. B. Selling and Administrative expenses incurred and paid: $1,200. C. Used direct materials: $3,900. D. Used indirect materials: $300. E. Manufacturing wages incurred totaled $4,000, of which 90% was direct labor and 10% was indirect labor. F. Incurred other actual factory overhead on account: $1,300. G. Factory Overhead was allocated to Work in Process Inventory at a predetermined overhead allocation rate of 60% of Direct Labor costs incurred during August. H. The cost of product completed: $10,000. I. Sales on account: $17,500. The cost of the units sold was $9,500.
Step 2:
Adjust for over or underallocated overhead.
Once you have entered the journal entries in Step 1 above, prepare and enter the necessary adjusting entry to correct for the overallocated or underallocated Factory Overhead. This entry should be dated "August 31, 2017." For the "Description," enter "Journal Entry J."
Answer:
Step 1
Item A
Debit : Raw Materials $3,100
Credit : Accounts Payable $3,100
Item B
Debit : Selling and Administrative expenses $1,200
Credit : Cash $1,200
Item C
Debit : Work in Process - Direct Materials $3,900
Credit : Raw Materials $3,900
Item D
Debit : Work in Process -Indirect Materials $300
Credit : Raw Materials $300
Item E
Debit : Work in Process - Direct Labor $3,600
Debit : Work in Process - Indirect Labor $400
Credit : Wages Payable $4,000
Item F
Debit : Factory overheads $1,300
Credit : Accounts Payable $1,300
Item G
Debit : Work in Process - Overheads $2,160
Credit : Overheads $2,160
Item H
Debit : Finished Goods Inventory $10,000
Credit : Work in Process Inventory $10,000
Item I
Debit : Accounts Receivable $17,500
Debit : Cost of Sales $9,500
Credit : Sales Revenue $17,500
Credit : Inventory $9,500
Step 2
Date : August 31, 2017
Description : Journal Entry J
Debit : Overheads $160
Credit : Cost of Sales $160
Explanation:
For step 1
If expenses are incurred, Debit the expense and credit Cash if cash was paid or Credit Accounts Payable if there was no immediate cash payment.
Ensure all manufacturing costs incurred are accumulated in the appropriate Work in Process Account.
Remember to record the corresponding cost of sales journal following the sale of completed units.
For step 2
If Actual overheads > Applied overheads, we have overheads under-applied,
and if Applied overheads > Actual overheads, we have over-applied overheads
Hence determine amounts of Actual and Applied overheads first :
Actual overheads calculation :
Indirect materials $300
Indirect labor $400
Other overheads $1,300
Total $2,000
Applied overheads :
Applied overheads = $2,160
therefore,
Over-applied overheads = $2,160 - $2,000 = $160
The cost of sales is reduced by the amount of over-applied overheads
Which of the following statements is not accurate descriptions of the business market? Mrs. Phillip, a retail buyer for Bloomingdale's, does all the shopping for her family at the same store. Wal-Mart has a contractual relationship with P&G to serve its customers efficiently. Goodyear tires deals globally with various suppliers of steel to make tires. Costco is a wholesale establishment that deals with various manufacturers.
Answer:
Mrs. Phillip, a retail buyer for Bloomingdale's, does all the shopping for her family at the same store.
Explanation:
The business market is the market where you can sell your product and services to the other businesses so it can be used as a raw material for the other business in order to manufacture the products. And, the other reason is to purchased the products and resell them.
So based on the given statements, the first option is considered as in the remaining statements there are business transactions but in this only one person i.e. retail buyer is considered
State of the Economy Probability of the States Percentage Returns Economic recession 25% 5% Moderate economic growth 50% 10% Strong economic growth 25% 13% The standard deviation from investing in the asset is:
Answer:
The standard deviation from investing in the asset is 14.40%.
Explanation:
Note: The data in the question are first sorted before answering the question as follows:
State of the Economy Probability of the States Percentage Returns
Economic recession 25% 5%
Moderate economic growth 50% 10%
Strong economic growth 25% 13%
The standard deviation from investing in the asset is:
The explanation of the answer is now given as follows:
Note: See the attached excel file for the calculation of Variance from investing in the asset.
From the attached excel file, we have:
Variance = 2.07%
Therefore, we have:
Standard deviation = Variance^0.5 = 2.07%^0.5 = 14.40%
Therefore, the standard deviation from investing in the asset is 14.40%.
Hugo Inc., a calendar year taxpayer, sold two operating assets this year. The first sale generated a $38,700 Section 1231 gain, and the second sale generated a $59,400 Section 1231 loss. As a result of these sales, Hugo should recognize: Multiple Choice $20,700 ordinary loss $38,700 Section 1231 gain treated as capital gain and $59,400 ordinary loss $20,700 capital loss None of these choices are correct
Answer:
$20,700 ordinary loss
Explanation:
Based on the information given if the first Operating assets generated a gain of the amount of $38,700 while the second assets generated a loss of the amount of $59,400 after been sold out which indicate or means that Hugo should recognize the amount of $20,700 ORDINARY LOSS which is calculated as :
Ordinary loss =-$59,400+$38,700
Ordinary loss =-$20,700
Therefore As a result of these sales, Hugo should recognize:$20,700 ORDINARY LOSS
The gross domestic product (GDP) of the United States is defined as the __________all _____________ in a given period of time.
Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2018
a. Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 13, 2018. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2018.
b. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 21, 2018. It sells the car at a dealership in Houston on February 10, 2018.
c. Sofaland, a Swedish furniture company, produces a table at a plant in Virginia on December 5, 2018. It sells the table to a college student on December 24.
d. You chop down a cherry tree on your property in California and make a dining room table in 2018. A similar table sells for $800 in a local furniture store.
Answer:
MARKET VALUE OF
FINAL GOODS AND SERVICES, PRODUCED IN THE U.S.
NOT INCLUDED
INCLUDED
INCLUDED
NOT INCLUDED
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
a. the tire sold is not included in US GDP because it is an intermediate good. An intermediate good is a good that is used in the production of other goods. The tire is used as an input in the production of a two-door coupe
b. The car would be included as part of business spending in US GDP
C. The table would be included in GDP as part of consumption spending on durables
d. Services rendered to ones self is not recorded in GDP