Answer:
You should never use the top of a ladder as a step. The employer should correct the worker’s behavior and ensure he knows the proper way to use a ladder.
Explanation:
He is standing at the top. He is not suppose to and OSHA does not approve this.
Assume a company pays out $100 in dividends in Year 1. What would the annual growth rate (rounded to the nearest 1%) for dividends have to be during years 2-5 so total dividends paid out during years 1-10 would be $2000
Answer:
The answer is "The dividends in 5 to 10 years will be the same".
Explanation:
The dividend value will be increasing in the 5 years after that it will be stabilized.
The growth rate value is = 24.24% , and the year dividend value in the form table can be defined as follows:
[tex]\boxed{\boxed{\bold{years}} \ \ \ \ \ \ \boxed{1}\ \ \ \ \ \boxed{2}\ \ \ \ \ \boxed{3} \ \ \ \ \ \boxed{4} \ \ \ \ \ \boxed{5} \ \ \ \ \ \boxed{6} \ \ \ \ \ \boxed{7} \ \ \ \ \ \boxed{8} \ \ \ \ \ \boxed{9} \ \ \ \ \ \boxed{10} }[/tex]
[tex]\boxed{\boxed{\bold{values}} \ \ \boxed{100}\ \ \boxed{124.2}\ \ \boxed{154.3} \ \ \boxed{191.8} \ \ \boxed{238.2}\ \ \boxed{238.2} \ \ \boxed{238.2} \ \ \boxed{238.2} \ \ \boxed{238.2} \ \ \boxed{238.2} }[/tex]In this question we use the goal seek function, that's calculation is defined in the attachment file. please find it.
After posting the entries to close all revenue and expense accounts, the Income Summary account of Cleaver Auto Services has a $5,700 debit balance. This result implies that Cleaver earned a net income of $5,700.
a) true
b) false
Answer: False
Explanation:
The Income Summary Account contains the ending accounts of all revenue and expense accounts in a company with the net amount transferred to the account being the company's net profit (loss).
Income as an equity item is credited when it increases and debited when it decreases meaning that a debit represents a net loss. Cleaver Auto Services having a $5,700 debit balance in their Income summary account means that they have made losses of $5,700 not income.
10. Which of the following is NOT normally regarded as being a good reason to establish an ESOP?
a. To make it easier to grant stock options to employees.
b. To help retain valued employees.
c. To increase worker productivity.
d. To help prevent a hostile takeover.
e. To enable the firm to borrow at a below-market interest rate.
Answer:
The answer for your question is the OPTION : E
On January 1, 2016, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2017. Expenditures on the project were as follows: January 1, 2016 $319,000 September 1, 2016 $468,000 December 31, 2016 $468,000 March 31, 2017 $468,000 September 30, 2017 $319,000 Dreamworld had $5,600,000 in 12% bonds outstanding through both years. Dreamworld's capitalized interest in 2016 was:
Answer:
$638,000.
$319,000.
$475,000.
$554,750.
My respond is 638,000
Explanation:
For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual inventory (carrying and setup) cost is $400. What is the inventory carrying cost per unit per year for this item? $2.00 $3.00 $150.00 $1.00 not enough data to determin
Answer:
$2 per unit per year
Explanation:
The calculation of the inventory carrying cost per unit per year is shown below:
Inventory Carrying cost per unit per year is
= Total Annual Inventory cost ÷ Economic order quantity
= $400 ÷ 200 units
= $2 per unit per year
It is computed By dividing the total annual inventory cost from the economic order quantity, in order to get the inventory carrying cost
Therefore, the first option is correct
A company manufactures and sells x smartphones per week. The weekly price-demand and cost equations are p=500−0.5x and C(x)=20,000+135x respectively.
a. What price should the company charge for the phones and how many phones should be produced to maximize the weekly revenue? What is the maximum weekly revenue ?
b. What is the maximum weekly profit ? How much should the company charge for the phones, and how many phones should be produced to realize the maximum weekly profit ?
Answer:
a)
revenue = x amount of phones x price
revenue = x(500 - 0.5x)
revenue = 500x - 0.5x²
we find revenue' (derivative):
revenue' = 500 - x
x = 500
the company should sell 500 smartphones to maximize revenue, the selling price = 500 - (0.5 x 500) = $250 per smartphone. Maximum weekly revenue = $250 x 500 = $125,000
b)
profit = revenue - cost
profit = 500x - 0.5x² - 20,000 - 135x
profit = -0.5x² + 365x - 20,000
we must find profit' (derivative):
profit' = -x + 365
x = 365
In order to maximize profits, you have to sell 365 smartphones per week. Maximum weekly profit = -0.5(365²) + 365(365) - 20,000 = -66,612.50 + 133,225 - 20,000 = $46,612.50.
The smartphone's price = 500 - (0.5 x 365) = $317.50
Which of the following generational groups is most likely to represent the present owners of cottages surrounding Witmer Lake?A) Baby Boomers.
B) Echo Boomers.
C) Gen Xers.
D) Lost Generation.
E) Millennials.
Lost Generation is the generational groups is most likely to represent the present owners of cottages surrounding Witmer Lake. Thus, the correct option is D). Lost Generation.
Where is Witmer Lake located?Witmer Lake is a very large natural lake that is located in LaGrange County, Indiana near Wolcottville. This lake is very big in size as it is 204 acres in size. Witmer Lake is considered as a part of the Indian Lakes Chain.
Witmer Lake is very well known as an all-sports lake as various adventourous activities like boating, swimming, fishing, skiing, kayaking, and more can be enjoyed on the crystal water of the Witmer Lake.
Basically, Witmer Lake is a part of five lakes of the Indian Lake Chain and those lakes are the Witmer, Westler, Dallas, Hackenberg and Messick Lakes.
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A dean at NYU has a guaranteed salary of $120, 000 at the end of each year for the next five years at which point they are scheduled to retire. The school would like the dean to retire now. How much should the school offer today? Suppose current interest rates are 1.5% at all maturities.
Answer:
the school should offer $573,917.40 today.
Explanation:
The amount to be offered today is known as the Present Value and is calculated as :
Pmt = $120, 000
Fv = $0
P/yr = 1
n = 5
r = 1.5%
Pv = ?
Using a Financial Calculator, the amount that the school should offer today, PV is $573,917.40.
A bond with an annual coupon rate of 7.2% sells for $988.22. What is the bond’s current yield? (Round your answer to 2 decimal places.)
Answer:
7.29%
Explanation:
The computation of the current yield of the bond is shown below;
Current yield is
= (Par value × annual coupon rate) ÷ Selling price of the bond
= ($1,000 × 7.2%) ÷ $988.22
= $72 ÷ $988.22
= 7.29%
Hence, the bond current yield is 7.29%
This is to be computed by applying the above formula so that the current bond yield could arrive
A. At the garage, mechanics changed the
oil, fixed the brakes, and checked the
transmission
B. The delegates spent the day arguing
with each other rather than work together to
find common solutions.
C. Pat likes to jog, hiking, and playing
football
D. The production manager was asked to
write his report quickly, accurate, and in a
thorough manner.
Answer:
A. At the garage, mechanics changed the oil, fixed the brakes and checked the transmission.
Explanation:
The following actual and standard cost data for direct material and direct labor relate to the production of 4,000 units of product:
Actual Cost Standard Cost
Direct material 3,900 lbs. $5.30 4,000 lbs. $5.10
Direct labor 6,200 hrs, $8.40 6,000 hrs. $8.70
Determine the following variances:
Materials Variances
Actual cost:
Split cost:
Standard cost:
A. Materials price
B. Materials efficiency
Labor Variances
Actual cost:
Split cost:
Standard cost:
C. Labor rate
D. Labor efficiency
Answer:
Instructions are below.
Explanation:
Giving the following information:
Production= 4,000 units
Actual Cost Standard Cost
Direct material 3,900 lbs. $5.30 4,000 lbs. $5.10
Direct labor 6,200 hrs, $8.40 6,000 hrs. $8.70
To calculate the direct material price and efficiency variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (5.3 - 5.1)*4,000
Direct material price variance= $800 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (3,900 - 4,000)*5.3
Direct material quantity variance= $530 unfavorable
To calculate the direct labor efficiency and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (6,200 - 6,000)*8.4
Direct labor time (efficiency) variance= $1,680 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (8.4 - 8.7)*6,000
Direct labor rate variance= $1,800 unfavorable
If all investors become more less risk-averse, the SML will _______________ and stock required returns will ________.
a. have the same slope but larger intercept; fall
b. have the same intercept with a flatter slope; fall
c. have the same intercept with a steeper slope; rise
d. have the same slope but smaller intercept; rise
Answer:
Option B, have the same intercept with a flatter slope; fall.
Explanation:
Option B is correct because a more risk-averse person faces a steeper curve while the less risk-averse person faces a flatter slope. While the more risk-averse person has more return on the stock while the less risk-averse person has less return. Therefore, in the given situation, the SML will have the flatter slope and its return will fall. As it is a less risk-averse investor.
Baylor Bank believes the New Zealand dollar will appreciate over the next five days from $.48 to $.50. The following annual interest rates apply:
Currency Lending Rate Borrowing Rate
Dollars 7.00% 7.50%
New Zealand dollar (NZ$) 6.75% 7.25%
Baylor Bank has the capacity to borrow either NZ$10 million or $5 million.
If Baylor Bank's forecast is correct, what will its dollar profit be from speculation over the five-day period (assuming it does not use any of its existing consumer deposits to capitalize on its expectations)?
Answer:
Its dollar profit from speculation over the five-day period will be $208,035.93.
Explanation:
This can be determined as follows:
Assuming Baylor Bank borrow $5,000,000
The borrowing will be converted to New Zealand dollar at the current exchange rate and we will have:
Conversion = $5,000,000 / 0.48 = NZ$10,416,667
The NZ$10,416,667 shall be invested at an annualized based on New Zealand lending rate of 6.75% over five days. This will produce future value (FV) as follows:
FV of investment = Amount invested * (1 + NZ lending rate)^(5 years / 360 days) = NZ$10,416,667 * (1 + 6.75%)^(5 / 360) = NZ$10,426,121.44
Converting the NZ$10,426,121.44 to dollar at the new rate of $.50 as follows:
New conversion = NZ$10,426,121.44 * $.05 = $5,213,060.72
Amount to repay based on the US borrowing rate = Amount borrowed in USD * (1 + US borrowing rate)^(5 years / 360 days) = $5,000,000 * (1 + 7.5%)^(5 / 360) = $5,000,000 * 1.00100495826555 = $5,005,024.79
Profit = New conversion - Amount to repay = $5,213,060.72 - $5,005,024.79 = $208,035.93
Therefore, its dollar profit from speculation over the five-day period will be $208,035.93.
If the price of a soda is $2, the price of a hamburger is $6, and George has $20 of income, George's utility maximizing combination of sodas and hamburgers per day is:
Answer:
2 hamburgers and 4 sodas
Explanation:
The utility's function was missing, so I looked for it:
Hamburgers per Day Total Utility Marginal Utility MU per $
1 30 30 5
2 52 22 3.67
3 67 15 2.5
4 76 9 1.5
5 80 4 0.67
Sodas per Day Total Utility Marginal Utility MU per $
1 20 20 10
2 35 15 7.5
3 47 12 6
4 57 10 5
5 64 7 3.5
If George wants to maximize his utility per dollar spent, he should buy 2 hamburgers and 4 sodas. This will yield him 52 utils (form hamburgers) and 57 utils (form sodas) = 109 utils per day
Straight Cut beauty salon merges with Clean-Cut beauty salon. This is an example of
A) vertical merger.
B) horizontal merger.
C) conglomerate merger.
D) concentration ratio.
Answer:
The answer is B. horizontal merger
Explanation:
Horizontal merger is a type of merger found between two competing firms operating in the same industry. Straight Cut beauty salon and Clean-Cut beauty salon are in the same industry performing the same or similar function.
Horizontal merger are done to increase the market share or enjoys economies of scale.
Straight Cut beauty salon and Clean-Cut beauty salon after the merger can introduce a wide range of services within the beauty salon
All of the following statements regarding the Federal National Mortgage Association (FNMA) are true EXCEPT:_________
A) FNMA is owned by the U.S. government.
B) FNMA pass-through certificates are not guaranteed by the U.S. government.
C) interest on FNMA certificates is taxable at all levels.
D) FNMA stock is publicly traded on the NYSE.
Answer:
A) FNMA is owned by the U.S. government.
Explanation:
Federal National Mortgage Association (FNMA) also commonly referred to as "Fannie Mae" is a government-sponsored enterprise (GSE) that provides services such as purchasing mortgages from lending institutions so as to expand the secondary mortgage market or effectively boost affordable lending activity at the lending institutions. It was founded as part of the "New deal" during the Great Depression in 1938.
All of the following statements regarding the Federal National Mortgage Association (FNMA) are true;
1. FNMA pass-through certificates are not guaranteed by the U.S. government.
2. Interest on FNMA certificates is taxable at all levels.
3. FNMA stock is publicly traded on the NYSE.
However, it is false or incorrect to say that the FNMA is owned by the United States of America (USA) government.
The Federal National Mortgage Association (FNMA) is only being sponsored by the U.S government under the umbrella of the Federal Housing Finance Agency (FHFA).
Suppose you are tasked with designing a policy to lower emissions from automobile use. What type of policy (i.e. command and control standards, tradable permits, taxes, subsidies, liability, etc.) would you recommend and why
Answer:
Tradable permits
Explanation:
A tradable permit is a term that describes a market-based technique that provides the government with the chance or power to curb negative externalities produced by a group of companies.
In this situation, permits are traded among companies, whereby a company that has reduced production of the externality can trade permits to companies that are unable to make such reductions and are ready to pay for the permits.
Reason to recommend this Approach its policy:
It has been observed that, in every place where this approach or policy is used, the market for permits obtains the desired effect that is more profitable and productive for society
a. Computer stocks currently provide an expected rate of return of 16%. MBI, a large computer company, will pay a year-end dividend of $2 per share. If the stock is selling at $50 per share, what must be the market's expectation of the growth rate of MBI dividends? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If dividend growth forecasts for MBI are revised downward to 5% per year, what will be the price of the MBI stock? (Round your answer to 2 decimal places.) c. What (qualitatively) will happen to the company's price–earnings ratio? The P/E ratio will decrease. The P/E ratio will increase.
Answer:
a)
$50 = $2 / (16% - g)
16% - g = $2 / $50 = 4%
g = 16% - 4% = 12%
expected growth rate = 12%
b)
P₀ = $2 / (16% - 5%)
P₀ = $2 / 11%
P₀ = $18.18
c)
P/E ratio = share price / EPS
since the share price decreases from $50 to $18.18, the P/E ratio will decrease. When you are dividing a number, if the numerator decreases while the denominator remains still, the answer will decrease.
Growth rate in case 1 and Current Stock Price in case 2 are 12% and $18.18
Computation:
Case 1 ; Using Gordon's Model,
P = D1/(r - g)
50 = 2/(16% - g)
50 = 2/(0.16 - g)
0.16 - g = 2/50
0.16 - g = 0.04
g = 0.16 - 0.04
g = 0.12
Growth rate = 12%
Case 2 ; Using Gordon's Model,
P = D1/(r - g)
P = 2/(16% - 5%)
P = 2/(0.16 - 0.05)
Current Stock Price P = $18.18
Case 3;
Because the value of the shares has dropped, the P/E ratio has dropped as well. As a result, the P/E ratio will fall.
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Some shows are produced specifically for the syndication market. These are known as ________ syndication.
Answer: First-run syndication
Explanation:
Syndication refers to when multiple television and radio stations are able to lease the rights to a program without them having to do so through a broadcast network.
First-run syndication means that a show was first broadcast on several television stations because it was made to be broadcast as such. In other words the creators produced it specifically for the syndication market or purchased the rights from another country and then sold it into syndication in a country in which it was broadcasting for the first time.
Answer:
First-run syndication
Explanation:
Syndication refers to when multiple television and radio stations are able to lease the rights to a program without them having to do so through a broadcast network.
First-run syndication means that a show was the first broadcast on several television stations because it was made to be broadcast as such. In other words, the creators produced it specifically for the syndication market or purchased the rights from another country and then sold it into syndication in a country in which it was broadcasting for the first time.
Smith Company makes and sells a single product called a Pod. Each Pod requires 1.4 hours of labor at a labor rate of $9.60 per hour. Smith Company needs to prepare a Direct Labor Budget for the second quarter of the year. In June the company has budgeted to produce 22,000 Pods. The finished goods inventory on June 1 and June 30 were budgeted at 500 and 800 units, respectively. Budgeted direct labor costs incurred in June would be:
A. $470,400
B. $295,680
C. $240,000
D. $211,200
Answer:
Total direct labor costs= $295,680
Explanation:
Giving the following information:
Each Pod requires 1.4 hours of labor at a labor rate of $9.60 per hour.
Production= 22,000 Pods.
First, we need to calculate the total direct labor hours required:
Total direct labor hours= 22,000*1.4= 30,800 hours
Now, the total direct labor costs:
Total direct labor costs= 30,800*9.6
Total direct labor costs= $295,680
________systems can help keep logistics costs down, improve the satisfaction of customers, and help a firm become more competitive so as to grow its revenues.
a. Quality management
b. Relationship management
c. Integrated logictics management
d. Logistics
Answer:
c. Integrated logistics management
________systems can help keep logistics costs down, improve the satisfaction of customers, and help a firm become more competitive so as to grow its revenues.
Explanation:
How? Integrated logistics management systems interconnect and integrate all the activities and systems that affect the flow of materials, information, and goods from the point of origin to the point of arrival at the customers' end. An integrated logistics management system ensures that the six areas of logistics are handled seamlessly. These areas are Warehousing, Warehouse Management System, Transportation Management System, Real-Time Location System, Inventory Management System, and Reverse Logistics. With the integration of these systems and activities, the costs of logistics are drastically reduced, customers - who are at the center of these - become more satisfied, and the firm competitively grows its revenues and bottomline.
If the exports (in million $) for the period 2006 through 2010 were $878, $892, $864, $870, and $912, respectively, what are these values called g
Answer:
Time series data
Explanation:
here are the option to this question:
Moving average
Linear trend equation
Logarithmic trend equation
Time series data
Time series data is a set of values or data arranged according to time - according to the time they occurred.
The export data were ordered according to time from 2006 - 2010
Suppose a brand has a heavy usage index of 1.5, penetration share of 0.6 and a market share of 15%. What is the share of wallet
Answer:
0.167
Explanation:
Given the following :
Heavy usage index = 1.5
Penetration share = 0.6
Market share = 15%
Using the formula:
Heavy usage index =
market share % / [Penetration share * share of wallet]
1.5 = 15% / [0.6 * share of wallet]
1.5 × [0.6 × share of wallet] = 15%
0.9 × share of wallet = 15%
Divide both sides by 0.9
Share of wallet = 15% / 0.9
Share of wallet = 0.15 / 0.9
Share of wallet = 0.16666
Share of wallet = 0.167
Two products, QI and VH, emerge from a joint process. Product QI has been allocated $12,300 of the total joint costs of $33,000. A total of 1,900 units of product QI are produced from the joint process. Product QI can be sold at the split-off point for $13 per unit, or it can be processed further for an additional total cost of $11,000 and then sold for $15 per unit. If product QI is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?
Answer:
Profit from selling at the split-off point = $13 x 1,900 units = $24,700
Profit from Processing further: = $15 x 1,900 - Processing total cost of $11,000
= $28,500 - $11,000
= $17,500
Comparison
$24,700 - $17,500
=$7,200
There is a decrease in overall profit
Conclusion: If product QI is processed further and sold, then overall profit will decrease by $7,200.
Arlington Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6,400,000 on March 1, $5,280,000 on June 1, and $8,000,000 on December 31. Arlington Company borrowed $3,200,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6,400,000 note payable and an 11%, 4-year, $12,000,000 note payable. What is the avoidable interest for Arlington Company?
Answer:
Avoidable interest for Arlington Company is $939,220
Explanation:
Arlington Company
Schedule of Weighted-Average accumulated expenditure
Date Amount Current year Weighted Average
capitalization Accumulated
period Expenditures
1-Mar $6,400,000 10/12 $5,333,333
1-Jun $5,280,000 7/12 $3,080,000
31-Dec $8,000,000 0/12 $0
Total $19,680,000. $8,413,333
Note: Weighted-Average accumulated expenditure = Amount * Current year capitalization period
Weighted average interest rate on general borrowings = 10% * (6,400,000 / 18,400,000) + 11%* (12,000,000 / 18,400,000)
=10.65%
Interest for specific borrowing should be capitalized for entire year.
Avoidable interest = ($3,200,000*12%) + ($8,413,333 - $3,200,000) * 10.65%
Avoidable interest = $939,220
Part 1: Firms in the real estate investment trusts (REITs), airlines, electric utilities, and paper products industries tend to have high leverage. Explain why firms in these industries would prefer to have high leverage. Part 2: Firms in the computer hardware, footwear, apparel and luxury goods, and data processing industries tend to have low leverage. Explain why firms in these industries would prefer to have low leverage.
Answer and Explanation:
1. Firms in the real estate industry have high leverage because they are capital intensive businesses, requiring higher capital for their operations and do not make profit or reach breakeven early. Therefore they are more inclined to leveraging than the share market .There is also the benefit of tax savings from debt sources
2. Firms in the computer hardware, footwear, apparel and luxury goods, and data processing industries have low leverage because they can reach breakeven or make profit early and so can rely on share market as against real estate industry.
Calculate the consumers' surplus at the indicated unit price p for the demand equation
p = 8−2q^1/3;p=6.
Answer:
consumer surplus = 0.5 cents
Explanation:
The unit price: p = 6 , demand equation = [tex]p = 8 - 2q^{\frac{1}{3} }[/tex]
first find the value of q by equating the unit price and the demand equation
[tex]8 - 2q^{\frac{1}{3} } = 6[/tex]
= 8 - 6 = 2q^1/3
hence q = 1
now the consumer surplus can be calculated by integrating and inputting all the values
[tex]Cs = \int\limits^1_0 {(8-2q^(1/3) )} \, dq - 6[/tex]
= [tex][ 8q - 2(\frac{(q^(4/3))}{4/3}) ] - 6[/tex] applying the limits of q = 1 , 0
Cs = 8 - 3/2 * ( 1 ) ^ 4/3 - 0 + 0 - 6
= 8 - 3/2 - 6 = 1/2 = 0.5 cents
Baxter Inc. owns 90 percent of Wisconsin Inc. and 20 percent of Cleveland Company.
Wisconsin, in turn, holds 60 percent of Cleveland's outstanding stock.
No excess amortization resulted from these acquisitions.
During the current year, Cleveland sold a variety of inventory items to Wisconsin for $40,000 although the original cost was $30,000. Of this total, Wisconsin stll held $12,000 in inventory (at transfer price) at year-end.
During this same period, Wisconsin sold merchandise to Baxter for $100,000 although the original cost was only $70,000. At year-end, $40,000 of these goods (at the transfer price) was still on hand.
The initial value method was used to record each of these investments.
None of the companies holds any other investments.
Using the following seperate income statements, determine the figures thet would appear on a consoldated income statement:
Baxter Wisconsin Cleveland
Sales $(1,000,000) $(450,000) $(280,000)
Cost of goods sold 70,000 280,000 190,000
Expenses 110,000 60,000 30,000
Dividend income:
Wisconsin (36,000) 0 0
Cleveland (4,000) (12,000) 0
Net income $260,000 $122,000 $60,000
Consolidated Income Statement:
Sales
Cost of goods sold
Expenses
Dividend income
Non-controlling interests in subsidiaries' income
Controlling interest in consolidated net income
Answer:
$350,380
Explanation:
Calculation to determine the amount that would appear on the consolidated income
Consolidated income statement.
Sales$1,590,000
($1,000,000+$450,000+$280,000-$100,000-$40,000)
Less :Cost of goods sold ($1,015,000)
($670,000+$280,000+$190,000-$100,000-$25,000)
Less :Expenses ($200,000)
($110,000+$60,000+$30,000)
Dividend income$0
Consolidated net income $375,000
Noncontrolling interests in subsidiaries' income $24,620
Controlling interest in consolidated net income $350,380
Therefore the amount that would appear on the consolidated income will be $350,380
In comparing the absorption and variable cost methods, each of the following statements is true except:________.
1. SG&A fixed expenses are not included in inventory in either method.
2. Only the absorption method may be used for external financial reporting.
3. Variable costing charges fixed overhead costs to the period they are incurred.
4. When inventory increases over the period, variable net income will exceed absorption net income.
Answer: When inventory increases over the period, variable net income will exceed absorption net income.
Explanation:
In comparing the absorption and variable cost methods, the statements that are true are:
• SG&A fixed expenses are not included in inventory in either method.
• Only the absorption method may be used for external financial reporting.
• Variable costing charges fixed overhead costs to the period they are incurred.
Therefore, option D is wrong which states that "when inventory increases over the period, variable net income will exceed absorption net income".
A company purchased a machine for $100,000. The accumulated depreciation on the machine is now $100,000. Which of the following statements is TRUE regarding the disposal of the machine for no cash proceeds?
A) There will be no gain or loss on the disposal.
B) The journal entry to record the disposal will decrease net assets.
C) The cost of the asset, but not its accumulated depreciation, must be removed from the books.
D) A gain or loss on the disposal can occur.
Answer:
A) There will be no gain or loss on the disposal.
Explanation:
Given that
Purchase value of a machine = $100,000
Accumulated depreciation = $100,000
Based on the above information
Since the purchase value is equivalent to the accumulated depreciation i.e. both the amount consist of $100,000
So at the time of sale of the machine no loss or gain should be there
Hence, the correct option is A.