Answers
a. Answer:The corresponding probabilities are obtained by converting the percentages into probabilities. That is, by dividing each value with 100.
F/N (where F =percentage of accidents and N =100)
Explanation:
X 0 1 2 3 4
f(X) 0.096 0.57 0.238 0.077 0.019
b. The formula for the expected value of a discrete random variable is E(x)= µ=∑xf(x)
X F(X) X.f(X)
0 0.096 0
1 0.57 0.57
2 0.238 0.476
3 0.077 0.231
4 0.019 0.076
Total 1 1.353
Hence, the value for expected value of X is 1.353
The formula for the variance of the discrete random variables is Var(x)= σ² =∑(x-µ)²f(x)
X F(X) (x-µ) (x-µ)² (x-µ)².f(x)
0 0.096 -1.353 1.8306 0.1757
1 0.57 -0.353 0.1246 0.0710
2 0.238 0.647 0.4186 0.0996
3 0.077 1.647 2.7126 0.2089
4 0.019 2.647 7.0066 0.1331
Total 1 3.235 12.0930 0.6884
Hence, the variance of the random variable x is 0.6884
The formula for the standard deviation of the discrete random variables is
σ=√(∑[(x-µ)².f(x)] )
Thus, the standard deviation is σ= √0.6884
=0.8297
Hence, the standard deviation of the random variable x is 0.8297
Related Questions
Windsor, Inc. reported net income of $200,980 for 2022. Windsor, Inc. also reported depreciation expense of $34,880 and a loss of $4,630 on the disposal of plant assets. The comparative balance sheets show an increase in accounts receivable of $14,040 for the year, a $16,780 increase in accounts payable, and a $4,390 increase in prepaid expenses.
Required:
Prepare the operating activities section of the statement of cash flow for 2022.
Answers
Answer and Explanation:
The preparation of the operating activities section is presented below;
Cash flows from operating activities
Net income $200,980.00
Adjustments made
Depreciation expense 34,880.00
Loss on sale of plant asset $4,630.00
Increase in accounts receivable $(14,040.00)
Increase in accounts payable $16,780.00
Increase in prepaid expense $(4,390.00)
Net cash from Operating Activities $238,840.00
Semi-fixed Cost will be
A. zero if output were zero and would change
erratically as output increased
B. more than zero if no products were made and
would then increase in direct proportion to output
C. zero when output is zero and would increase
in direct proportion to output
D. a fixed amount when output was zero and would
not increase in direct proportion to output
Answers
Answer:
B. more than zero if no products were made and would then increase in direct proportion to output
Explanation:
Semi-fixed Cost will be "more than zero if no products were made and would then increase in direct proportion to output."
This is because a semi-fixed cost also known as semi-variable cost or mixed cost is a combination of both a fixed factor and a variable factor.
Such that if production was zero some costs would still be incurred. However, as output rises, the variable part of the costs will rise in direct proportion to output.
what are the types of enterpreneuship
Answers
Answer:
Explanation:Empreendedorismo Social.
Empreendedorismo de Negócios.
Empreendedorismo Corporativo ou Intraempreendedorismo.
Empreendedorismo Feminino.
Empreendedorismo Individual.
Empreendedorismo Verde.
Empreendedorismo Informal.
Empreendedorismo de Franquias.
Answer:
Small business entrepreneurship. A majority of businesses are small businesses. People interested in small business entrepreneurship are most likely to make a profit that supports their family and a modest ...
Large company entrepreneurship. Large company entrepreneurship is when a company has a finite amount of life cycles. ...
Scalable startup entrepreneurship. This kind of entrepreneurship is when entrepreneurs believe that their company can change the world.
Social entrepreneurship. An entrepreneur who wants to solve social problems with their products and services is in this category of entrepreneurship.
Innovative entrepreneurship. Innovative entrepreneurs are people who are constantly coming up with new ideas and inventions. They take these ideas and turn them into business ventures.
Explanation:
In an economy open to international trade ________.
A) saving equals investment in equilibrium
B) saving is the difference between net exports and investment
C) saving equals investment as long as the economy has no exports
D) saving equals investment as long as NX
Answers
Answer: D) saving equals investment as long as NX = 0
Explanation:
The last option was incomplete as it should have said ...NX = 0.
The Income/GDP of a country that is open to international trade is calculated as follows:
Income = Consumption + Investment + Government spending + Net exports
Y = C + I + G + NX
If NX = 0 then the formula becomes:
Y = C + I + G
Investment in this scenario is therefore:
I = Y - C - G
This is the same as savings as savings is calculated by subtracting consumption and government spending from the total income. This is because government spending is derived from taxes so the cash that people get to save is their income less than their taxes and consumption expenses.
S = Y - C - G = Y
Maxim Corp. has provided the following information about one of its products:Date Transaction Number of Units Cost per Unit1/1 Beginning Inventory 285 $ 157 6/5 Purchase 485 $ 177 11/10 Purchase 185 $ 217 During the year, Maxim sold 570 units.What is cost of goods sold using the average cost method? (Do not round intermediate computations.)
Answers
Answer:
$101,904.6
Explanation:
The computation of the cost of goods sold using the average cost method is shown below:
Beginnig Inventory 285 at $157 = $44,745
Purchases 485 at $177 = $85,845
Purchases 185 at $217 = $40,145
Total cost = $170,735
Now
Total number of units is
= 285 + 485 + 185
= 955
Now
Average Cost per unit is
= $170,735 ÷ 955
=$ 178.78
And, finally
Cost of goods Sold is
= 570 × $178.78
= $101,904.6
Jessie and Paul have worked in the same office at DEF Insurance LLC for 6 years. Jessie has always taken extra care to follow the office norms and ensure that everyone has a happy and harmonious working experience. Paul has been very driven during his years at DEF Insurance, and though he started as an insurance agent, he has since been promoted to the agency manager and proudly displays all of his awards on the wall of his new office. According to four drive theory, Paul most likely has a high:
a. drive to acquire
b. drive to defend
c. drive to comprehend
d. drive to achieve
Answers
Answer:
DEF Insurance LLC
Employee Motivation Drives
According to four drive theory, Paul most likely has a high:
a. drive to acquire and
d. drive to achieve
Explanation:
Paul's motivation drive is summed in the drive to acquire and achieve. For example, Paul craves for the acquisition of laurels. He also actively works to be promoted to managerial positions, based on his drive to achieve. On the other hand, Jessie prefers to bond and to belong to the team. He does not like offsetting relationships or displaying people from their positions, unlike Paul. The other motivation drives are to be challenged and comprehend and to define and defend.
Complete the statements and then calculate the change in consumption.
a. The consumption function shows the relationship between consumption spending and ____________
b. The slope of the consumption function is the ___________
c. Changes in consumption can be predicted by multiplying the change in by the If the MPC ___________
Answers
Answer:
A. Disposable income
B. Marginal Propensity to Consume
C. Change in Disposable Income by the Marginal Propensity to Consume.
Explanation:
The consumption will increase by $800
Explanation:
The consumption function shows the relationship between consumption spending and disposable income.
The slope of the consumption function is the marginal propensity to consume.
Changes in consumption can be predicted by multiplying the change in disposable income by the marginal propensity to consume.
GIVEN that: MPC = 0.60
Disposable income increases by $1,500
consumption increase = 0.60*$1500
= $900
Therefore, The consumption will increase by $900.
Investment in certificates of deposit and other securities that do not change in value are reported on the balance sheet as:____________
a. Cash and cash equivalents.
b. Available-for-sale securities.
c. Equity investments.
d. Held to maturity securities.
Answers
Answer:
cash and cash equivalents
Explanation:
because it is
In a newsvendor setting where the seller faces random demand, if two products have the same critical ratio, then their optimal ordering quantity (i.e., the Newsvendor ordering quantity) will be the same.
A. True
B. False
Answers
Answer:
A. True
Explanation:
Critical ratio determines the area covered by optimal ordering quantity. The non perishable goods have high critical ratio then perishable goods. Optimal order quantity can be determined by Economic order quantity.
Better Corp. (BC) began operations on January 1, Year 1. During Year 1, BC experienced the following accounting events: 1. Acquired $7,000 cash from the issue of common stock. 2. Borrowed $12,000 cash from the State Bank. 3. Collected $47,000 cash as a result of providing services to customers. 4. Paid $30,000 for operating expenses. 5. Paid an $8,000 cash dividend to the stockholders. 6. Paid $20,000 cash to purchase land.Required:a. Record the events in an accounting equation like the one shown next. Record the ined Earnings column. Provide the appropriate titles for these accounts in the last column of the table. The first event is shown amounts of revenue, expense, and dividends in as an example.b. As of December 31, Year 1, determine the total amount of assets, liabilities, and stockholders’ equity and prepare a balance sheet.c. What is the amount of total assets, liabilities, and stockholders’ equity as of January 1, Year 2?d. Assume that the land has a market value of $22,000 as of December 31, Year 1. At what amount will the land be shown on the December 31, Year 1, balance sheet? Why is this amount used in the balance sheet?
Answers
Answer:
Better Corp. (BC)
a. Accounting Equation
Assets = Liabilities + Equity
1. Cash $7,000 Common stock $7,000
2. Cash $12,000 Bank loan payable $12,000
3. Cash $47,000 Service Revenue $47,000
4. Cash ($30,000) Op. expenses ($30,000)
5. Cash ($8,000) Cash dividend ($8,000)
6. Land $20,000 Cash ($20,000)
Assets $28,000 = Liabilities $12,000 + Equity $16,000
b. December 31, Year 1 Balances:
Total assets = $28,000
Total liabilities = $12,000
Stockholders' equity = $16,000
Balance Sheet as of December 31, Year 1
Assets:
Cash $8,000
Land $20,000
Total assets $28,000
Liabilities:
Bank loan $12,000
Equity:
Common stock $7,000
R/Earnings 9,000
Total equity $16,000
Liabilities and
Equity $28,000
c. January 1, Year 2 Balances:
Total assets = $28,000
Total liabilities = $12,000
Total equity = $16,000
d. The Land will be shown on the December 31, Year balance sheet at $20,000. The reason is that this is the acquisition cost and the land is not held for trading (no information provided).
Explanation:
a) Data and Analysis based on the Accounting Equation:
1. Cash $7,000 Common stock $7,000
2. Cash $12,000 Bank loan payable $12,000
3. Cash $47,000 Service Revenue $47,000
4. Cash ($30,000) Operating expenses ($30,000)
5. Cash ($8,000) Cash dividend ($8,000)
6. Land $20,000 Cash ($20,000)
You are the director of health information services in a major medical center that maintains both a psychiatric unit and a substance abuse unit in addition to general medical and surgical units. Your facility plans to join a computer network with fifteen hospitals throughout the state, which will allow online access to laboratory data, regardless of which facility performed the lab work. None of the other fifteen facilities offer psychiatric or substance abuse treatment.
Required:
Identify and discuss the confidentiality issues present with such a network in the light of the statutory, regulatory, and accrediting requirements governing patients treated in these units.
Answers
Answer:
See the explanation below.
Explanation:
The following are some of the confidentiality concerns that may develop as a result of establishing a network connecting the databases of 16 hospitals:
1. The regulation mandates that individuals have the option of opting out of the facility directory or requesting that their health information not be utilized for any other purpose.
2. If a network is constructed, the restriction will be broken since frequent facility reporting would be easily accessible in other facilities, and preserving the information left will be difficult to manage if patients refuse to supply details.
3. Because data would be open and available to a bigger audience, the minimum criterion will be hard to sustain.
4. Establishing a network hospital will violate the 1974 Privacy Act, which places restrictions on the transmission of personal information to third parties.
5. Establishes use and disclosure criteria that set a baseline for keeping the amount of data used or disclosed to the "bare minimum" required to achieve the intended aim.
6. Patents tested, diagnosed, or treated for alcohol and drug misuse, sexually transmitted infections, or mental health disorders may be subject to additional privacy obligations.
7. Creating a network and sharing information with hospitals that do not have such treatment options entails disclosing highly personal information to those who are unaware of some of the most vulnerable patients.
8. Patients who are being treated for such an illness are afforded a high level of seclusion so that their social lives are not disrupted.
The identification about the confidentiality issues present with such a network of databases of sixteen hospitals is:
There is the issue of regulation where the people have an option to decide the hospital does not use their information for any other purposeThere is always the issue of patients refusing to give out their details, or incomplete detailsIt would be difficult to keep track of the information without a centralised databaseThere would be a violation of the 1974 Privacy Act if a hospital decides to set up a network containing patient information.
According to the given question, we are asked to show and identify the confidentiality issues which are present with such a network of databases of sixteen hospitals.
As a result of this, we can see that a hospital database would be useful so that the hospital workers can access medical records and other related information about patients and can be helpful in diagnosis, treatment, etc.
However, there are some issues which can arise as a result of confidentiality issues which has to do with statutory laws and regulation, etc.
Read more here:
https://brainly.com/question/19339002
An actual agency that arises by deduction or inferences from other facts and circumstances, including the words and conduct of the parties, best describes __________
Answers
Answer:
The correct answer is " Implied agency/ostensible".
Explanation:
An effective power implicitly granted by that of the principle to its agent has demonstrated or derived from some kind of relationship across the accused principle as well as the agency, would be considered as Implied agency.The connection between 2 organizations allows individuals might assume that one of those would be a separate operator, as well as inversely, is a ostensible agency.Dandy Candy bought a delivery vehicle for $45,000 by issuing an 8% installment note on January 1, 2021. Dandy will make 12 monthly payments of $3,914.50 at the end of each month.
Cash Reduction of Note
Period Payment Interest Exp Note Payable Payable
(Credit) (Debit) (Debit) Balance
At issue --- --- --- $45,000.00
01/31/21 $3,914.50 $300.00 $3,614.50 41,385.50
02/28/21 3,914.50 ? ? ?
03/31/21 3,914.50 ? ? ?
04/30/21 3,914.50 ? ? ?
05/31/21 3,914.50 ? 3,711.85 26,684.93
Required:
Using the partially completed amortization table above, prepare the journal entries for the end of March and the end of April.
Answers
Answer:
Dandy Candy
Journal Entries for the end of March and April:
03/31/21 Debit Note Payable $3,662.85
Debit Interest Expense $251.65
Credit Cash $3,914.50
To record payment of interest and note payable on March 31, 2021.
04/30/21 Debit Note Payable $3,687.27
Debit Interest Expense $227.23
Credit Cash $3,914.50
To record payment of interest and note payable on April 30, 2021.
Explanation:
a) Data and Calculations:
Cost of delivery vehicle = $45,000
Note Payable = $45,000
Interest rate on note = 8%
Date of issue of note = January 1, 2021
Monthly payments required = $3,914.50 for 12 months
Amortization Table
Cash Reduction of Note
Period Payment Interest Exp Note Payable Payable
(Credit) (Debit) (Debit) Balance
At issue --- --- --- $45,000.00
01/31/21 $3,914.50 $300.00 $3,614.50 41,385.50
02/28/21 3,914.50 ? ? ?
03/31/21 3,914.50 ? ? ?
04/30/21 3,914.50 ? ? ?
05/31/21 3,914.50 ? 3,711.85 26,684.93
Amortization Table
Cash Reduction of Note
Period Payment Interest Exp Note Payable Payable
(Credit) (Debit) (Debit) Balance
At issue --- --- --- $45,000.00
01/31/21 $3,914.50 $300.00 $3,614.50 41,385.50
02/28/21 3,914.50 275.90 3,638.50 37,746.90
03/31/21 3,914.50 251.65 3,662.85 34,084.05
04/30/21 3,914.50 227.23 3,687.27 30,396.78
05/31/21 3,914.50 202.65 3,711.85 26,684.93
Required information
[The following information applies to the questions displayed below.]
The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances:
Accounts Debits Credits
Cash $ 48,500
Accounts Receivable 32,700
Land 117,800
Accounts Payable 16,000
Notes Payable (due in 2 years) 37,000
Common Stock 107,000
Retained Earnings 39,000
Totals $ 199,000 $ 199,000
The following is a summary of the transactions for the year:
1. January 12 Provide services to customers on account, $69,400.
2. February 25 Provide services to customers for cash, $78,800.
3. March 19 Collect on accounts receivable, $46,400.
4. April 30 Issue shares of common stock in exchange for $37,000 cash.
5. June 16 Purchase supplies on account, $13,500.
6. July 7 Pay on accounts payable, $12,000.
7. September 30 Pay salaries for employee work in the current year, $71,200.
8. November 22 Pay advertising for the current year, $23,200.
9. December 30 Pay $3,600 cash dividends to stockholders.
The following information is available for the adjusting entries.
Accrued interest on the notes payable at year-end amounted to $3,200 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $2,200 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $3,000.
8-a. Prepare an income statement for the year ended December 31, 2021.
Answers
Answer:
Jackrabbit Rentals
Jackrabbit Rentals
Income Statement
For the ended December 31, 2021.
Service Revenue $148,200
Salaries Expenses $73,400
Advertising Expenses 23,200
Interest Expense 3,200
Supplies Expenses 10,500 110,300
Net income $37,900
Explanation:
a) Data and Calculations:
Beginning Balances at January 1, 2021:
Accounts Debits Credits
Cash $ 48,500
Accounts Receivable 32,700
Land 117,800
Accounts Payable $16,000
Notes Payable (due in 2 years) 37,000
Common Stock 107,000
Retained Earnings 39,000
Totals $ 199,000 $ 199,000
Transaction Analysis:
1. January 12 Accounts Receivable $69,400 Service Revenue $69,400
2. February 25 Cash, $78,800 Service Revenue $78,000
3. March 19 Cash $46,400 Accounts receivable, $46,400
4. April 30 Cash $37,000 Common stock $37,000
5. June 16 Supplies $13,500 Accounts Payable $13,500
6. July 7 Accounts payable, $12,000 Cash $12,000
7. September 30 Salaries Expenses $71,200 Cash $71,200
8. November 22 Advertising Expenses $23,200 Cash $23,200
9. December 30 Dividends $3,600 Cash $3,600
Adjusting entries:
Interest Expense $3,200 Interest Payable $3,200
Salaries Expenses $2,200 Salaries Payable $2,200
Supplies Expenses $10,500 $10,500
Service Revenue $148,200
Accounts receivable $69,400
Cash, 78,800
Salaries Expenses
Cash $71,200
Salaries Payable 2,200 73,400
Advertising Expenses 23,200
Interest Expense 3,200
Supplies Expenses 10,500
Lee Ann, Inc., has declared a $5.70 per-share dividend. Suppose capital gains are not taxed, but dividends are taxed at 20 percent. New IRS regulations require that taxes be withheld when the dividend is paid. The company's stock sells for $94.15 per share and is about to go ex-dividend.
Required:
What do you think the ex-dividend price will be?
Answers
Answer:
$89.59
Explanation:
After tax dividend = Dividend * (1-Tax)
After tax dividend = $5.70 * (1-20%)
After tax dividend = $5.70 * 0.8
After tax dividend = $4.56
Ex-Dividend price = Share price - After tax dividend
Ex-Dividend price = $94.15 - $4.56
Ex-Dividend price = $89.59
An important strength of the trait approach to leadership is that it: a. can help with leadership selection and development. b. helps in analyzing the situational demands. c. specifies which traits are needed for leadership in a given situation. d. specifies how much of a given trait is important for leadership.
Answers
Answer: A. can help with leadership selection and development.
Explanation:
The focus of the trait approach to leadership is on the personal attributes of a leader like the values, competencies, the physical and personality characteristics, etc.
Here, focus isn't on the followers but rather on the leader as it's concerned with the leaders traits. The leaders traits are vital to the leadership process. This can help with leadership selection and development.
According to the basic Dividend Discount model, the value an investor should assign to a share of stock is dependent on the length of time he or she plans to hold the stock.Is the above statement True or False? Please Explain
Answers
Answer:
True
Explanation:
The above statement is true because the Dividend Discount model is based on the present value of the dividend payments that will be received over time. The longer the dividends are received, the higher the intrinsic value of the price of the stock will be when discounted to the present value. This model uses the discounted values or present values of dividends and the selling price to arrive at the stock's intrinsic value.
What is the loan balance (in dollars) after the third payment, of a 5 year loan of $100,000 with an APR of 10% and annual payments
Answers
Comparing medieval Japan, Rorea, and Vieta Imagine that you are a graduate student working with the diary of a twelfth-century merchant from Song China. In this diary, the merchant recorded his impressions of his first visits to Korea, Japan, and Vietnam. After carefully translating the diary, you hand it to your professor, who slips and throws all the papers into the air. It is now your job to organize the diary correctly. Read the following descriptions and select whether they apply to Korea, Japan, or Vietnam.
Description 1
The people here were among the first to adopt an innovation called woodblock printing. Artisans carve characters onto woodblocks, which can be rearranged to print papers, pamphlets, and even books quickly and easily. Their cartographers have created regional and world maps based on our models.
Description 2
The people from this southern kingdom have created an adaptation of Chinese characters. This is a written system to represent the spoken language, but also used to compose essays and poetry.
Description 3 The people seem to have copied our building techniques and architecture, but they do so artfully. Centuries ago, Buddhists from all across Asia traveled to this land to visit the Todaiji temple.
Answers
Answer:
Comparing Medieval Japan, Korea, and Vietnam
Description 1 applies to Korea.
Description 2 applies to Vietnam.
Description 3 applies to Japan.
Explanation:
The Todaiji Temple is located in Japan. This sets description 3 apart for Japan. The southern kingdom refers to Vietnam located in the South-east Asia. Vietnam is known to have been ruled by China for over a thousand years, and the Vietnamese language is written based on Chinese characters. This matches with description 2. Korea, which is located in the Northeast Asia, matches description 1. Moreover, the Korean language is a multisyllabic language, unlike the Chinese that is monosyllabic.
cho ví dụ về tái định vị ( trừ viettel, bitis, vinamilk..)
Answers
Answer:
Ví dụ như Samsung, xuất phát điểm là một công ty bán mỳ gạo, vì thế, tên của công ty lúc đầu là Tam tinh nghĩa là ba ngôi sao. Logo của họ l
During 2004, Thor Lab supplied hospitals with a comprehensive diagnostic kit for $120. At a volume of 80,000 kits, Thor had fixed costs of $1,000,000 and a profit before income taxes of $200,000. Due to an adverse legal decision, Thor’s 2005 liability insurance increased by $1,200,000 over 2004. Assuming the volume and other costs are unchanged, what should the 2005 price be if Thor is to make the same $200,000 profit before income taxes?
a. $120.00
b. $135.00
c. $150.00
d. $240.00
Answers
Answer:
d. $240.00
Explanation:
Calculation to determine what should the 2005 price be if Thor is to make the same $200,000 profit before income taxes?
2004 CM% = 12.5% ($15/$120)
2005 CM = $2,400,000 ($1,000,000 + $200,000)
2005 CM per unit = $2,400,000/80,000 units
2005 CM per unit= $30 CM per unit;
2005 selling price per unit = $30/.125
2005 selling price per unit= $240
Therefore what should the 2005 price be if Thor is to make the same $200,000 profit before income taxes is $240
A bond has a modified duration of 8 and a price of 112,955 calculated using an annual effective interest rate of 6.4%. EMAC is the estimated price of this bond at an interest rate of 7.0% using the first-order Macaulay approximation. EMOD is the estimated price of this bondat an interest rate of 7.0% using the first-order modified approximation.Calculate EMAC - EMOD A. 91 B. 102 C. 116 D. 127 E. 143
Answers
Answer:
8.4%
Explanation:
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.50 per mile driven. Joyce has determined that if she drives 3,300 miles in a month, her total operating cost is $875. If she drives 4,400 miles in a month, her total operating cost is $1,095.
Required:
1. Using the high-low method, determine Joyce's variable and fixed operating cost components.
2. Complete the contribution margin income statement for Joyce's service assuming she drove 3,700 miles last month. (Assume this falls within the relevant range of operations).
Answers
Answer:
Variable operating cost per mile = $0.2
Fixed operating cost = $215
Income at 3,700 miles = $895
Explanation:
The variable cost per mile =
(cost at high activity - cost at low activity)/(high activity - low activity)
Fixed operating cost = cost at high activity - (VC/mile × high activity)
So we can apply the formulae as follows:
The variable cost per mile = (1,095 - 875)/(4,400-3,300)= $0.2 per mile
Fixed cost = $1,095 - (0.2×4,400)=$215
Variable operating cost per mile = $0.2
Fixed operating cost = $215
Contribution margin income statement
$
Sales value = (3,700 miles × $0.50 per mile) 1,850
Variable cost (3,700× $0.2) (740)
Contribution 1,110
Less Fixed cost (215)
Income 895
Feliciano Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, I63E and E76I, about which it has provided the following data: I63E E76I Direct materials per unit $ 21.70 $ 65.10 Direct labor per unit $ 19.50 $ 58.50 Direct labor-hours per unit 0.80 2.40 Annual production (units) 90,000 30,000
The company's estimated total manufacturing overhead for the year is $2,063,250 and the company's estimated total direct labor-hours for the year is 45,000.
The company is considering using a form of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:
Activities and Activity Measures Estimated
Overhead Cost
Assembling products (DLHs) $ 720,000
Preparing batches (batches) 263,250
Product support (product variations) 1,080,000
Total $ 2,063,250
Expected Activity
I63E E76I Total
DLHs 24,000 21,000 45,000
Batches 1,080 675 1,755
Product variations 2,115 1,485 3,600
The manufacturing overhead that would be applied to a unit of product E76I under the activity-based costing system is closest to:________.
Answers
Answer:
Unitary cost= $30.91
Explanation:
First, we need to calculate the activities rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Assembling products= 720,000/45,000= $16 per DLH
Preparing batches= 263,250/1,755= $150 per batch
Product support= 1,080,000/3,600= $330 per product variation
Now, we allocate costs to Product E76l:
Assembling products= 16*21,000= $336,000
Preparing batches= 150*675= $101,250
Product support= 330*1,485= $490,050
Total= $927,300
Finally, the unitary cost:
Unitary cost= 927,300 / 30,000
Unitary cost= $30.91
Westmoreland Company Following are selected data from Westmoreland Company's financial statements.
2018 2017
Current liabilities $230,000 $160,000
Long-term debt 120,000 320,000
Stockholders' equity 420,000 540,000
Cash payments for additions to plant and equipment 45,000 32,000
Net cash flow from operating activities 80,000 51,000
Interest and principal payments 12,000 8,000
Net operating cash flows before interest and taxes 68,000 43,000
Net income 90,000 72,000
Interest expense 8,500 11,500
Income taxes 16,000 14,500
Dividends paid 15,000 30,000
Refer to the Westmoreland Company data.
The company's times interest earned ratio for 2018
a. Indicates the company cannot meet its current year interest payments out of current year earnings.
b. Shows an increase in the company's ability to pay its current debt when it comes due.
c. Decreased, which indicates the company has more cash to pay interest on its debt.
d. Increased, which indicates the company's lenders will be pleased.
Which of the following statements is true regarding valuation amounts on the balance sheet?
1. Assets are recorded at current cost.
2. Stockholders' equity reflects the current market value of the stock.
3. A variety of assumptions are used in determining amounts reported on the balance sheet.
4. Stockholders' equity reflects the amount the stockholders would receive upon liquidation.
Answers
Answer:
Westmoreland Company
1. The company's times interest earned ratio for 2018
d. Increased, which indicates the company's lenders will be pleased.
2. The TRUE statement regarding valuation amounts on the balance sheet is:
3. A variety of assumptions are used in determining amounts reported on the balance sheet.
Explanation:
a) Data and Calculations:
Westmoreland Company
Selected financial statements data.
2018 2017
Current liabilities $230,000 $160,000
Long-term debt 120,000 320,000
Stockholders' equity 420,000 540,000
2018 2017
Cash payments for additions
to plant and equipment 45,000 32,000
Net cash flow from operating activities 80,000 51,000
Interest and principal payments 12,000 8,000
Net operating cash flows before
interest and taxes 68,000 43,000
Net income 90,000 72,000
Interest expense 8,500 11,500
Income taxes 16,000 14,500
EBIT $114,500 $98,000
Dividends paid 15,000 30,000
Time interest earned (TIE) for 2018 =EBIT/ Interest Expense
= $114,500/$8,500
13.47x
TIE for 2017 = $98,000/$11,500
= 8.52x
On August 1, a $43,200, 8%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $16,763.05. The entry to record the first payment on July 31 would include:________
A. Debit to Interest Expense of 3,192.00
B. Credit to cash 14,183.96
C. Credit to Notes payable of 17,375.96
D. Debit to Cash of 17,375.96
E. Debit to Notes payable of 17,375.96
Answers
Answer:
Par value of note payable = $43,200
Interest rate = 8%
Annual installment = $16,763.05
Interest expense for year 1 = Par value of note payable * Interest rate = $43,200*8% = $3,456
Principal repayment in first installment = Annual installment - Interest expense for year 1 = $16,763.05 - $3,456 = $13,307.05
General Journal Debit Credit
Notes payable $13,307.05
Interest expense $3,456
Cash $16,763.05
The common stock of Buffalo Inc. is currently selling at $113 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $68 per share. 8.40 million shares are issued and outstanding.
Required:
Prepare the necessary journal entries assuming the following.
a. The board votes a 2-for-l stock split.
b. The board votes a 100% stock dividend. Briefly discuss the accounting and securities market differences between these two methods of increasing the number of shares outstanding.
Answers
Answer:
Buffalo Inc.
a. Journal Entry:
No journal entry required except a memorandum to record the split.
b. Journal Entry:
Debit Stock Dividend (Retained Earnings) $84 million
Credit Stock Dividend Distributable $84 million
To record the declaration of a 100% stock dividend.
When issued:
Debit Stock Dividend Distributable $84 million
Credit Common Stock $84 million
To record the issuance of stock dividends.
2. Both methods increase the outstanding number of shares by 100%. However, with a stock split of 2-for-1, there is no journal entry except a memorandum record to state the split.
Secondly, with a stock split or 2-for-1, the market price is also halved. This does not happen with a stock dividend. The market forces will determine and correct the market price to an acceptable level. A stock dividend requires some accounting entries to be made.
Explanation:
a) Data and Calculations:
Current market price of common stock per share = $113
Par value per share = $10
Book value per share = $68
Shares issued and outstanding = 8.40 million
a. The board votes a 2-for-l stock split:
Shares outstanding = 16.80 million shares
Market price = $56.50
Journal Entry:
No journal entry required except a memorandum to record the split. The value of common stock remains the same.
b. The board votes a 100% stock dividend:
Shares outstanding will increase to 16.80 million shares
Market price = $113 and level off based on demand and supply.
Journal Entry:
Stock Dividend (Retained Earnings) $84 million
Common Stock $84 million
'Economies of scale refers to Select one:
A. The notion that small firms are less bureaucratic and, therefore, more efficient than corporations
B. Public investments in highways, schools, utilities, etc.
C. The fact that large producers may be able to use more efficient technologies
D. The reallocation of labor from less productive to more productive uses.
Answers
Answer:
publich investment in highways
Categorize the scenarios as either a discretionary act or the result of automatic stabilizers.
a. Economic growth increases personal and corporate income, increasing tax payments.
b. A recession increases the number of recipients of unemployment benefits.
c. Legislators increase tbc generosity of unemployment benefits.
d. A law is enacted that increases government spending on health-care programs
1. Discretionary spending
2. Automatic stabilizers
Answers
Answer:
a. automatic stabilizers.
b. automatic stabilizers.
Discretionary spending
Discretionary spending
Explanation:
Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . examples include progressive tax and transfer payments
In an expansion, progressive tax increases the tax paid and this reduces disposable income
In a contraction, tax paid is reduced and this increases disposable income
Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
Discretionary fiscal policies can either be expansionary or contractionary
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes
issued $400,000 of 10-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was $388,000, the company redeemed the bonds at 99. Prepare the entry to record the redemption of the bonds.
Answers
Answer:
Dr Bonds Payable $400,000
Dr Loss on retirement of bonds $12,000
Cr Cash $396,000
Cr Discount on bonds $16,000
Explanation:
Preparation of the journal entry to record the redemption of the bonds.
Dr Bonds Payable $400,000
Dr Loss on retirement of bonds $12,000
($400,000-$388,000)
Cr Cash $396,000
($400,000 *99% = $396,000)
Cr Discount on bonds $16,000
($400,000+$12,000-$396,000)
(To record the redemption of the bonds)