Answer:
D. organizational citizenship behavior.
Explanation:
In this scenario exemplified in the question, it can be said that Davy has all work behaviors except the behavior of organizational citizenship.
This behavior can be described as one that is not mandatory as part of the functional requirements of a job position, but an employee who presents organizational citizenship helps the company to promote a culture favorable to the maintenance of ethics and the development and performance of the organization as one all.
Any informal action by the worker that benefits the organization is part of the behavior of organizational citizenship. Some of these dimensions of behavior are altruism, loyalty, conscience, self-development, obedience, etc.
These behaviors are capable of promoting the well-being of the employee and the entire organization.
Your company is considering expanding its retail outlet. Currently, inventory levels are $5,000. With the expansion, it is expected that inventory levels will need to be $9,500. It is expected that accounts receivable will increase by $4,000 and account payable will decrease by $10,000. The expansion of the building will cost $120,000. What change in net working capital is this expansion causing
Answer:
Change is net working capital is -$18,500(use of cash)
Explanation:
Due to the expansion inventory would increase by $4,500 ($9,500-$5,000)
Accounts receivable would also increase by $4,000 over its previous amount.
Accounts payable would reduce by $10,000 as compared to previous balance of accounts payable
The change in net working capital=$4,500+$4,000+$10,000=$18,500
This is a use of cash not a source of cash inflow
Petro Corporation has provided the following information concerning a capital budgeting project:
After-tax discount rate 11 %
Tax rate 30 %
Expected life of the project 4
Investment required in equipment $80,000
Salvage value of equipment $0
Working capital requirement $20,000
Annual sales $180,000
Annual cash operating expenses $40,000
The working capital would be required immediately and would be released for use elsewhere at the end of the project. The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.
Required:
Determine the net present value of the project.
Answer:
Net present value = 18,657.90
Explanation:
Find the given attachment
Required earnings are the:_______
a. adjusted net income multiplied by the required rate of return on common equity capital.
b. net income the analyst expects the firm to generate multiplied by the required rate of return on common equity capital.
c. the market value of common equity capital at the beginning of the period multiplied by the required rate of return on common equity capital.
d. the book value of common equity capital at the beginning of the period multiplied by the required rate of return on common equity capital.
Explanation:
Required earnings are the minimum amount of earnings to meet the cost of equity capital requirements.
required earnings = book value of equity capital×required rate of return on common capital.(or common capital).
multiplying by market value is not correct to find out the required earnings.(option a is false ).
net income is calculated from required earnings, so there is no need to multiply net income or adjusted net income with required rate of return on common equity capital. Hence, b and c both are wrong.
Hence option d that is the book value of common equity capital at the beginning of the period multiplied by the required rate of return on common equity capital, is correct.
Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 5,600 50% Conversion costs $ 1,800 20% A total of 6,900 units were started and 6,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $ 158,800 Conversion costs $ 120,500 The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs. What are the equivalent units for conversion costs for the month in the first processing department
Answer:
6,500
Explanation:
As per the given question the solution of equivalent units for conversion costs is provided below:-
To reach the equivalent units of conversion first we need to find out the ending inventory units which is below:-
Ending inventory units = Beginning units + Started - Units completed
= 500 + 6,900 - 6,200
= 7,400 - 6,200
= 1,200
Equivalent units of conversion = Units completed + Ending Work in progress
= (6,200 × 100%) + (1,200 × (100% - 75%))
= 6,200 + 300
= 6,500
So, we have calculated the equivalent units of conversion by using the above formula.
Crane Company had the following assets on January 1, 2022.
Item Cost Purchase Date Useful Life (in years) Salvage Value
Machinery $59,000 Jan. 1, 2012 10 $0
Forklift 18,000 Jan. 1, 2019 5 0
Truck 24,400 Jan. 1, 2017 8 3,000
During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $10,800. The truck was discarded on December 31.
Required:
Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021.
Date Account and explanation Debit Credit
Jan 1,2022 Accumulated Depreciation $59,000
Machinery $59,000
(To machinery retired on Jan 1)
June 30,2022 Depreciation expenses($3,600*6/12) $1,800
Accumulated Depreciation($3,600*6/12) $1,800
(To depreciation charged for 6 months)
June 30,2022 Cash $10,800
Accumulated Depreciation $12,600
Gain on isposal of Forklift $5,400
Forklift $18,000
(To Forklift disposed with profit)
Dec 31,2022 Depreciation expenses $2,675
Accumulated Depreciation $2,675
(To depreciation charged for year)
Dec 31,2022 Accumulated Depreciation $16,050
Loss on retiremnt $8,350
Truck $24,400
Answer:
Machinery
J1
Accumulated Depreciation -Machinery $59,000 (debit)
Cost $59,000 (credit)
Accumulated Depreciation = ($59,000 / 10) × 10 = 59,000
forklift
J1
Depreciation - forklift $1,800 (credit)
Accumulated Depreciation - forklift $1,800 (credit)
Depreciation Calculation = (18,000/5)×1/2 = $1,800
J2
Cash $10,800 (debit)
Accumulated Depreciation - forklift $12,600 (debit)
Profit and Loss $5,400 (credit)
Cost $18,000 (credit)
Accumulated Depreciation = (18,000/5)×3+1,800 = 12,600
Truck
J1
Depreciation - Truck $2,675 (credit)
Accumulated Depreciation - Truck $2,675 (credit)
Depreciation Calculation = (24,400 - 3,000 / 8) = $2,675
J2
Accumulated Depreciation -Truck $16,050 (debit)
Profit and Loss $8,350 (debit)
Cost $24,400 (credit)
Accumulated Depreciation = (24,400 - 3,000 / 8) × 6 = 16,050
Explanation:
Machinery
Accumulated Depreciation = ($59,000 / 10) × 10 = 59,000
forklift
Depreciation Calculation = (18,000/5)×1/2 = $1,800
Accumulated Depreciation = (18,000/5)×3+1,800 = 12,600
Truck
Depreciation Calculation = (24,400 - 3,000 / 8) = $2,675
Accumulated Depreciation = (24,400 - 3,000 / 8) × 6 = 16,050
Department A had 4,200 units in Work in Process that was 67% completed as to labor and overhead at the beginning of the period. 33,300 units of direct materials were added during the period, 35,200 units were completed during the period, and 2,300 units were 39% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories.
The number of equivalent units of production for conversion costs for the period was ___?
Answer:
35,395
Explanation:
CALCULATE NO OF EQUIVALENT UNIT OF PRODUCTION FOR CONVERSION COST UNDER FIFO METHOD :
WHOLE UNIT % EQUIVALENT UNIT
BEGINNING WIP 4,200 39% 1,638
UNIT STARTED & COMPLETED
(35,200-4200) 31,000 106% 32,860
ENDING WIP 2,300 39% 897
TOTAL 35,395
Therefore The number of equivalent units of production for conversion costs for the period was 35,395
The following information is budgeted for McCracken Plumbing Supply Corporation for next quarter:
April May June
Sales $110,000 $130,000 $180,000
Merchandise purchases $85,000 $92,000 $105,000
Selling and administrative expenses $50,000 $50,000 $50,000
All sales at McCracken are on credit. Forty percent are collected in the month of sale, 58% in the month following the sale, and the remaining 2% are uncollectible. Merchandise purchases are paid in full the month following the month of purchase. The selling and administrative expenses above include $8,000 of depreciation on display fixtures and warehouse equipment. All other selling and administrative expenses are paid as incurred. McCracken wants to maintain a cash balance of $15,000. Any amount below this can be borrowed from a local bank as needed in increments of $1,000. All borrowings are made at month end.
Required:
Prepare McCracken's cash budget for May. McCracken expects to have $24,000 of cash on hand at the beginning of May.
Answer:
McCracken's Cash Budget for May:
Beginning Cash balance
Cash Sales: 40% month of sale = $52,000
58% following month of sale = $63,800 $115,800
Cash Purchases: month following purchase = ($85,000)
Selling & Administrative Expenses = ($42,000)
Bank Notes = $27,000
Cash Balance = $15,800
Explanation:
a) Cash Budget is an estimate of the cash receipts and cash payments during a period of time.
b) Depreciation of $8,000 is not a cash payment, so this amount is deducted from the Selling and Administrative Expenses.
c) The bank notes are in multiples of $1,000. To maintain a cash balance of at least $15,000 for each month, McCracken needed to borrow $1,000 bank loan in 27 notes.
Tropetech Inc. has an expected net operating profit after taxes, EBIT(1 – T), of $16,300 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,445 million, and net operating working capital (NOWC) is expected to increase by $50 million. How much free cash flow (FCF) is Tropetech Inc. expected to generate over the next year? $13,805 million $331,476 million $18,695 million $13,905 million
Answer:
$13,805 million
Explanation:
The calculation of free cash flow is computed by applying the following formula
Free cash flow = EBIT(1 - t) - Net Capital Expenditure - Net operating working capital
where,
EBIT(1 - t) is $16,300 million
Net capital expenditure is $2,445 million
And, the net operating working capital is $50 million
Now putting the items values to the formula
So, the free cash flow is
= $16,300 million - $2,445 million - $50 million
= $13,805 million
Basically we applied the above formula to find out the free cash flow
Use information from the Washington Post article Why We've Been Hugely Underestimating the Overfishing of the Oceans to determine whether each statement is true or false.
According to the Food and Agriculture Organization of the United Nations FAO), worldwide catches peaked in 2001 at 86 million tons
1. True
2. False
Using catch reconstruction, researchers estimate that the actual peak catch was 50% larger than the reported peak catch.
1. True
2. False
Catch reconstruction shows that, since the peak, catches have been increasing, not decreasing as previously reported
1. True
2. False
The Sea Around Us Project found several problems with the FAO data, such as the fact that data that were not available were reported as catches of zero fish.1. True
2. False
Answer:
1. False. The peak of 86 MILLION occurred in the year of 1996 and not in 2001 as per the reports of food and agricultural organisation of UN.
2. True. The given statement is correct from the source.
3. False. As per the research conducted on the basis of catch reconstruction, the catches have been declining due top several reasons.
4. The last statement is totally correct as verified by the source mentioned.
Working Capital and Current Ratio The following data (in thousands) were taken from recent financial statements of Under Armour, Inc.: December 31 Year 2 Year 1 Current assets $1,498,763 $1,549,399 Current liabilities 478,810 421,627 a. Compute the working capital and the current ratio as of December 31, Year 2 and Year 1. Enter working capital amounts in thousands of dollars. Round "current ratio" answers to two decimal places.
Answer:
Working Capital
Year 1 = $1127772
Year 2 = $1019953
Current Ratio
Year 1 = 3.67
Year 2 = 3.13
Explanation:
Working capital is a measure of operating liquidity of a business. It is the capital that is required for the day to day operations of a business. Working Capital can be calculated as follows,
Working Capital = Current Assets - Current liabilities
Working Capital:
Year 1 = 1549399 - 421627 = $1127772
Year 2 = 1498763 - 478810 = $1019953
Current Ratio is a financial measure of the liquidity of a business. It measures the company's ability to meet its short term debts. It tells how much $ current assets are available to pay off $1 of current liability It is calculated as follows,
Current ratio = Current Assets / Current Liabilities
Current Ratio:
Year 1 = 1549399 / 421627 = 3.67
Year 2 = 1498763 / 478810 = 3.13
Bearcat Construction begins operations in March and has the following transactions.
March 1 Issue common stock for $21,000.
March 5 Obtain $9,000 loan from the bank by signing a note.
March 10 Purchase construction equipment for $25,000 cash.
March 15 Purchase advertising for the current month for $1,100 cash.
March 22 Provide construction services for $18,000 on account.
March 27 Receive $13,000 cash on account from March 22 services.
March 28 Pay salaries for the current month of $6,000.
Required:
1. Record each transaction. Bearcat uses the following accounts: Cash, Accounts Receivable, Equipment, Notes Payable, Common Stock, Service Revenue, Advertising Expense, and Salaries Expense. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
March 1 Issue common stock for $21,000.
Dr Cash 21,000 Cr Common stock 21,000March 5 Obtain $9,000 loan from the bank by signing a note.
Dr Cash 9,000 Cr Notes payable 9,000March 10 Purchase construction equipment for $25,000 cash.
Dr Equipment 25,000 Cr Cash 25,000March 15 Purchase advertising for the current month for $1,100 cash.
Dr Advertising expense 1,100 Cr Cash 1,100March 22 Provide construction services for $18,000 on account.
Dr Accounts receivable 18,000 Cr Service revenue 18,000March 27 Receive $13,000 cash on account from March 22 services.
Dr Cash 13,000 Cr Accounts receivable 13,000March 28 Pay salaries for the current month of $6,000.
Dr Salaries expense 6,000 Cr Cash 6,000In their Portland, Oregon facility, Wavy Wood Works makes several types of wood bowls from coastal drift wood. To make a bowl, the first step is to clean the drift wood. Each piece of drift wood makes a single bowl. There is one cleaning machine. It takes 40 seconds to load each piece of wood and the machine can hold up to 35 pieces. Once all of the pieces are loaded into the machine, it takes 45 minutes to clean the set (no matter the number of pieces in the set). Once the wood is cleaned, 15 skilled artisans carve the bowls, each one takes on average 100 minutes to produce each bowl. After carving, bowls are finished with a stain. It takes 30 seconds to load each bowl into the stain machine. The staining machine holds up to 35 bowls. Once all of the bowls are loaded, they are soaked for 80 minutes. After staining, bowls are unloaded onto drying racks. There is plenty of space on the drying racks.
What is the maximum capacity (bowls per hour) of this process?
Cool Cars Location (Scenario) An automobile producer from Southern Italy, Cool Cars, has developed plans to expand internationally through greenfield FDI in an international market. Cool Cars has enjoyed success marketing stylish but economical autos in Portugal, Spain and Italy. Management is confident they can duplicate this success in other auto markets. At present they are deciding between Russia and Canada as locations for their investment. From the following list which one would favor building in Russia? Select one: a. The Russian government is more transparent and has a lower level of corruption than Canada b. Cool Cars would be able to take advantage of NAFTA c. Intellectual property lawsuits are common in Russia. d. Land and construction costs are comparatively less expensive in Russia than in Canada
Answer:
D. Land and construction costs are comparatively less expensive in Russia than in Canada
Explanation:
Option D would favor Russia ahead of Canada because of the fact that manufacturing costs are cheaper and they have easier access to Capital. I came to this conclusion since it has been stated that land and construction costs are cheaper in Russia.
In Economics the goal of every firm is to minimize cost and to maximize profit. Option D is cost minimizing for cool cars if they want to duplicate their overall success.
The PMI "Code of Ethics and Professional Conduct" provides guidelines for ethical behavior by project management practitioners. It describes four main values that should guide a project managerâs actions. List these four values and give one example per value of why it should guide a project managerâs actions.
Answer/Explanation:
The four core values that guides actions of project management practitioners according to the PMI "Code of Ethics and Professional Conduct" are:
1. Honesty: this value for example requires practitioners to discharge their duties with all sincerity of purpose and should in all manner and situation declare or provide information or reports that are true, accurate and reliable, even if it seems unpalatable or unpleasant. Honesty must be upheld.
2. Responsibility: this value mandates practitioners to take responsibility of their actions and inactions, and make only the right decisions that would benefit the public society and ensures public safety. Practitioners for example, can report any compromise made by any individual that may compromise standards and policies that are laid down.
3. Respect: this mandates practitioners to have regard for each other and all resources under every practitioner's care must be treated with utmost caution and respect. This code would guide practitioners in their behaviors towards discharging their duties and making negotiations in good faith.
4. Fairness: this value ensures all practitioners take decisions that are objective, act and discharge their duties without partiality or favouritism. This is very important in the case of bidding of contract. There should be fairness and transparency.
On February 1, 2020, Bonita Industries purchased a parcel of land as a factory site for $328000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Costs incurred during this period are listed below: Demolition of old building $ 19800 Architect's fees 36400 Legal fees for title investigation and purchase contract 4600 Construction costs 1378000 (Salvaged materials resulting from demolition were sold for $10200.) Bonita should record the cost of the land and new building, respectively, as:____________
a. $342200 and $1414400.
b. $352400 and $1404200.
c. $337600 and $1419000.
d. $337600 and $1414400.
Fred was suffering from a nasal tissue blockage that could be corrected either through an operation or with medical treatment for about two months. Fred's doctor clearly told him that the condition was not acute and he did not need surgery. Fred, however, insisted on the surgical removal of the blockage, being aware that his medical insurance would cover the entire cost of this surgery. The situation described here can be associated with which of the following problems? A) Price dispersionB) Moral hazardC) Lemons problemD) Prisoner's dilemma
Answer:
The correct answer to the following question will be Option B (Moral hazard).
Explanation:
Moral hazard happens whenever one individual takes further chances as the responsibility of such consequences rests with somebody else.
Fred suffered from some kind of blockage of the nasal tissues that could have been resolved for around 2 months either by a procedure and via medical attention. Fred's doc warned him plainly the problem wasn't serious so he doesn't need an operation.However, Fred concentrated on either the blockage becoming surgically removed, becoming mindful that his private policy would fund the full cost of this operation.The other given options are not related to the given scenario. So that the condition outlined here could be related to the "Moral hazard" issue.
) A company sells a software suite that includes a word processor and spreadsheet applications. The suite sells for $250 and the items are also available separately for $200 (spreadsheet) and $170 (word processor). The spreadsheet app is by far the best seller of the standalone product sales. Using the incremental-revenue allocation method and assuming that the spreadsheet is the primary product, how much of the $250 revenue from the bundled product sale would be allocated to the spreadsheet and to the word processing products?
Answer:
Allocated to the the word processing products would be$80
To the spreadsheet would be allocated revenues for $170
Explanation:
In order to calculate how much of the $250 revenue from the bundled product sale would be allocated to the the word processing products we would have to use the following formula:
allocated to the the word processing products= sold price suits- spreadsheet price
allocated to the the word processing products= $250-$170
allocated to the the word processing products=$80
To the spreadsheet would be allocated revenues for $170
bob and barbara are friends. bob takes out a $10000 loan and agrees to repay it over 12 years making annual level payments at an effective rate of 5.62499%. at the same time barbara takes out a $10000 loan and agrees to repay it by making annual interest payments at an annual effective interest rate of i. she also agrees to make annual level deposits into a sinking fund that earns 4% annual effective interest so as to accumulate $10,000 at the end of the 12 years. bob and barbara discover they have the same total annual expenditures resulting from their loans. find the rate i.
Answer:
5.0285%
Explanation:
Bob's annual payment is $1,168.37 (using a financial calculator)
Barbara's annual interest payment = $1,168.37 - annuity that will have a future value of $10,000 in 12 years
future value of annuity = payment x [(1 + r)ⁿ - 1] / r
r = 4%future value = $10,000n = 12$10,000 = payment x [(1 + 0.04)¹² - 1] / 0.04
$10,000 = payment x 15.0258
payment = $10,000 / 15.0258
payment = $665.52
Barbara's annual interest payment = $1,168.37 - $665.52 = $502.85
Barbara's effective interest rate i = $502.85 / $10,000 = 5.0285%
Based on the information given, the effective interest rate will be 5.0285%.
From the information given, by using a financial calculator, Bob's annual payment will be $1,168.37.
Also, the future value of annuity will be calculated thus:
= payment x [(1 + r)ⁿ - 1] / r
where,
r = 4%
future value = $10,000
n = 12
Therefore, this will be
$10,000 = payment x [(1 + 0.04)¹² - 1] / 0.04
$10,000 = payment x 15.0258
payment = $10,000 / 15.0258
payment = $665.52
Therefore, Barbara's annual interest payment will be calculated thus:
= $1,168.37 - $665.52
= $502.85
Therefore, her effective interest rate will be:
= $502.85 / $10,000
= 5.0285%
In conclusion, the correct option is 5.0285%.
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On January 1, Year 1, Weller Company issued bonds with a $360,000 face value, a stated rate of interest of 10.50%, and a 10-year term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 8.50%. Interest is paid annually on December 31. Assuming Weller issued the bond for $390,440, what is the amount of interest expense that will be recognized during Year 3? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Answer:
$ 32,370
Explanation:
First and foremost,find attached amortization schedule showing the opening balance of the bonds in each year,the interest expense which is the opening balance multiplied by market interest rate of 8.5% as well as the interest coupon which is face value of $360,000 multiplied by stated interest of 10.50% i.e $360,000*10.5%=$37,800
The interest expense in year 3 = opening balance in year 3*8.5%=$380,823*8.5% =$32,370
The amount of interest expense that will be recognized during Year 3 is $32,370.
For year 1
Cash paid = $360,000*10.5%
Cash paid = $37,800
Interest expense = $390,440*8.5%
Interest expense = $33,187
Premium amortization = $37,800 - $33,187
Premium amortization = $4,613
For year 2
Cash paid = $37,800
Interest expense = $385,827*8.5%
Interest expense = $32,795
Premium amortization = $37,800 - $37,800
Premium amortization = $5,005
For year 3
Cash paid = $37,800
Interest expense = $380,822 * 8.5%
Interest expense = $32,370
Therefore, The amount of interest expense that will be recognized during Year 3 is $32,370.
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The following information was taken from the records of Easter Corporation for the year ended December 31, 2019. Advertising expense $40,000 Income tax expense 26,000 Accounts payable 26,900 Dividends paid 30,000 Retained earnings (Jan 1, 2019) 115,720 Consulting fees revenue 200,000 Rent expense 23,400 Supplies expense 33,800 The retained earnings reported by Easter Corporation as of December 31, 2019 is:
Answer:
$162,520
Explanation:
As per the given question the solution of retained earnings is provided below:-
To reach at retained earning first we need to find out the total expenses and net income which are as follows:-
Total Expenses = Advertising Expense + Income Tax Expense + Rent Expense + Supplies Expense
= $40,000 + $26,000 + $23,400 + $33,800
= $123,200
now,
Net income = Revenue - Expenses
= $200,000 - $123,200
= $76,800
So, the Retained Earnings as of December 31, 2019 = Retained Earnings of January 1, 2019 + Net Income - Dividend
= $115,720 + $76,800 - $30,000
= $192,520 - $30,000
= $162,520
IZ Corporation purchased land for $400,000. Later in the year, the company sold a different piece of land with a book value of $200,000 for $240,000. How are the effects of these transactions reported on the statement of cash flows assuming the indirect method is used? Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank.
Answer and Explanation:
1. Gain on sale of land
It is come from
= Sale value - book value
= $240,000 - $200,000
= $40,000
Since there is a gain of $40,000 which is to be deducted from a net income under the cash flow from operations
2. Cash received from sale of land
The cash is received from sale of land reflects that the cash is come i.e inflow of cash and the same is to be reflected under the cash flow from investing activities in a positive amount i.e $240,000
3. Cash paid for purchase of land
The cash is paid for purchase of land reflects that the cash is gone i.e outflow of cash and the same is to be reflected under the cash flow from investing activities in a negative amount i.e -$400,000
Answer:
Gain on Sale of Land: (Deducted from net income) $ - 40,000
Cash Received from Sale of Land: (Part of cash flows from investing activities) $ 240,000
Cash Paid for Purchase of Land: (Part of cash flows from investing activities) $ - 400,0000
Explanation:
A U.S. company's foreign subsidiary had the following amounts in stickles (§) in 2013: COGS § 12,000,000 Ending Inventory 600,000 Beg. inventory 240,000 The average exchange rate during 2013 was §1 = $.96. The beginning inventory was acquired when the exchange rate was §1 = $1.20. The ending inventory was acquired when the exchange rate was §1 = $.90. The exchange rate at December 31, 2013 was §1 = $.84. Assuming that the foreign country had a highly inflationary economy, at what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2013 U.S. dollar income statement? A. $11,253,600. B. $11,577,600. C. $11,649,600. D. $11,613,600. E. $11,523,600. D. $11,613,600. A U.S. company's foreign subsidiary had the following amounts in stickles (§), the functional currency, in 2013: COGS § 12,000,000 Ending Inventory 600,000 Beg. inventory 240,000 The average exchange rate during 2013 was §1 = $.96. The beginning inventory was acquired when the exchange rate was §1 = $1.20. The ending inventory was acquired when the exchange rate was §1 = $.90. The exchange rate at December 31, 2013 was §1 = $.84. At what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2013 U.S. dollar income statement? A. $11,253,600. B. $11,577,600. C. $11,520,000. D. $11,613,600. E. $11,523,600.
Answer:
Option (D)
Explanation:
According to the scenario, computation of the given data are as follow:-
Particular Amount × Exchange rate Total value after exchange rate
Cost of goods sold 12,000,000
Add-ending inventory 600,000 × 0.9 $540,000
Less-opening inventory 240,000 × 1.2 $288,000
Purchase 12,360,000 × 0.96 $11,865,600
Cost of Goods Sold After Exchange Rate = Purchase - Ending Inventory + Opening Inventory
= $11,865,600 - $540,000 + $288,000
= $11,613,600
According to the analysis, option (D) $11,613,600 is correct.
USA Airlines uses the following performance measures. Classify each of the performance measures below into the most likely balanced Scorecard perspective it relates to. Select your answers using C(customer), P (internal process), / (innovation and growth), or F(financial). 1. Percentage of late flights 2. Cost of leasing airport gates 3. Employee satisfaction survey ratings 4. Percentage of waste recycled 5. Number of reports of mishandled or lost baggage 6. Operating cash flow 7. Employee diversity training sessions completed 8. Accidents or safety incidents per mile flown 9. Percentage of on-time departures 10. Average ticket price 11. Percentage of ground crew trained 12. Time airplane is on ground between flights 13. On-time flight percentage 14. Net income
Answer: please see explanation column
Explanation: Classifying performance measures, we have
1. Percentage of late flights ------Customer, C
2. Cost of leasing airport gates ----Financial, F
3. Employee satisfaction survey ratings----P (internal process)
4. Percentage of waste recycled-----Innovation and Growth, I
5. Number of reports of mishandled or lost baggage ----Customer, C
6. Operating cash flow------Financial, F
7. Employee diversity training sessions completed-----Innovation and Growth, I
8. Accidents or safety incidents per mile flown---- -P (internal process)
9. Percentage of on-time departures----Customer, C
10. Average ticket price----Financial, F
11. Percentage of ground crew trained------Innovation and Growth, I
12. Time airplane is on ground between flights------P (internal process)
13. On-time flight percentage---Customer, C-
14. Net income-----Financial, F
Match the given terms to the appropriate statement relating to the various functions of money. Each term is used only once. 1. Money provides a way of measuring a good for value in standardized terms. 2. Money permits us to make purchases today and enables us to pay off the purchases at some future point in time. 3. Money keeps its overall purchasing power. 4. Money is used to complete the transaction between the buyer and seller.a) Unit of Account b) Medium of Exchange c) Store of Value d) Standard of Deferred Payment
Answer:
1. Unit of Account: Money provides a way of measuring a good for value in standardized terms.
2. Standard of Deferred Payment: Money permits us to make purchases today and enables us to pay off the purchases at some future point in time.
3. Store of Value: Money keeps its overall purchasing power.
4. Medium of Exchange: Money is used to complete the transaction between the buyer and seller.
Explanation:
Money is a liquid asset or legal tender which is generally accepted and recognized in a socio-economic community or country as a medium of payment for goods and services and repayment of debts, such as loans. The functions of money are;
1. It provides a way of measuring a good for value in standardized terms.
2. It allows individuals or persons make purchases today and enables them to pay off the purchases at a latter date.
3. Money keeps its overall purchasing power.
4. It is generally used to complete the transaction between the buyer and seller.
The revenues and expenses of Paradise Travel Service for the year ended May 31, 2018, follow: Accounts Fees earned $1,430,000 Office expense 305,000 Miscellaneous expense 37,000 Wages expense 897,000 Everett McCauley invested an additional $60,000 in the business in exchange for common stock, and $27,000 of dividends were paid during the year. Retained earnings as of June 1, 2017, was $557,000. Prepare a retained earnings statement for the year ended May 31, 2018. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. "Less" or "Add" is not required. A decrease to retained earnings should be entered as a negative amount. Labels For the Year Ended May 31, 2018 May 31, 2018 Amount Descriptions Change in retained earnings Dividends Net income Net loss Retained earnings, June 1, 2017 Retained earnings, May 31, 2018 Paradise Travel Service Retained Earnings Statement 1 2 3 4 5
Answer:
Explanation:
Base on the description of the question, we can use the following method to solve the given problem
Prepare a retained earnings statement for the year ended May 31, 2018.
Beginning retained earnings 557000
Change in retained earnings
Add: Net income 191000
Less:Dividend -27000
Ending retained earnings 721000
On May 1, A makes a written offer to B for the sale of A's car. On May 2, A mails B a letter revoking the offer. On May 3, A telephones B to tell him that he is revoking the offer. On May 4, B learns that A has sold the car to C. On May 5, A's letter finally gets to B. On what day did A's offer terminate? Why?
Answer:
On what day did A's offer terminate?
May 3
Why?
In order for a written offer to be terminated, the offeror must revoke the offer, the offeree must make a counteroffer, or the valid time for the offer must expire. In this case, A is the offeror and B is the offeree. A can revoke his/her offer as long as it is done before B accepted it. In order for the revocation to be valid, B must be notified about it.
In this case, A called B on May 3 to notify him/her that the offer was being revoked. Legally, that would be the day when the offer was terminated. The revocation letter is not important here because it arrived after A had called B.
Because of her excessive tardiness and absenteeism during the year, the company discharged Ruth V. Williams on November 13. Ruth has requested Form W-2 be given to her. Form W-2 will include her final pay. For the week ending November 7, she was late a total of six hours; and for this week, she missed two full days and was late two hours on another day. In lieu of two weeks' notice, Williams was given two full weeks' pay ($1,223.08). Along with her dismissal pay ($1,223.08), she was paid for the week ending November 7 (34 hours, or $519.86) and the days worked this current week (22 hours, or $336.38). The total pay for the two partial weeks is $856.24.Pay Points:Prepare a Wage and Tax Statement, Form W-2, to be given to Williams.1) Record a separate payroll register (on one line) to show Williamsâs total earnings, deductions, and net pay. The two weeksâ dismissal pay is subject to all payroll taxes. Include dismissal pay with the total earnings but do not show the hours in the Time Record columns. Use the tax table for the biweekly payroll period for the total gross pay ($2,079.32) of Williams.The deduction for group insurance premiums is $14.40. In the Time Record column, make a note of Williamsâs discharge as of this date. Indicate the payroll check number used to prepare the final check for Williams. When posting to the earnings record, make a notation of Williamsâs discharge on this date.2) Prepare the journal entries to transfer the net cash and to record Williamsâs final pay and the employerâs payroll taxes. Post to the ledger accounts.3) Use the blank Form W-2. Box "a" should be left blank, since Glo-Brite Paint Company does not use a control number to identify individual Forms W-2.
Answer:
Explanation:
STEP1: Payroll register form and details for Nov13
Name : Ruth Williams
Pay period : 2 partial weeks
Pay date : Nov 7th
Regular hours : No need to enter
Overtime hours : No need to enter
Pay rate : Nil
Gross pay : $2079.32
Federal, state, and local income taxes
Employee withholding for Social Security and Medicare taxes
Other deductions : ($14.4)
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Net pay 2064.6
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Think about the different types of financial statements you learned about the income statement, statement of retained earnings, balance sheets, and statements of cash flow. If you were an investor, would you place more emphasis on any one particular financial statement? Why, or why not?
Answer:
The three most important financial statements are the income statement, balance sheet and cash flow statement. They are all linked together, and any investor needs to analysis the three of them together.
The income statement and the cash flow statement show information about a certain period of time, while the balance sheet is like a photo of one single day. Each one shows something different about the company:
the income statement shows how profitable the company is. But no matter how profitable a company might be, if it doesn't have enough cash to function then it is bankrupt, that is the importance of the cash flow statement. The balance sheet shows the financial position of the company, specially how the company is being financed.
Where one ends, other one begins:
The income statement starts with total revenue and ends in net income. Net income is the starting point of the cash flow statement and at the same time shows the change in retained earnings (balance sheet). The cash flow statement starts with net income and ends in the cash balance which is the starting point of the balance sheet. The balance sheet ends in retained earnings and the changes in retained earnings are given by net income and dividends paid.
They are all linked together and they are all needed in order to perform a proper analysis.
Which of the following statements is false about assessing interests in negotiations? Select one: a. If you don’t ask what the other’s interests are, you are likely to be off base. b. Parties in conflict often assume they know the interests of the other. c. Taking a firm position suggests several interests typically underlie it. d. Parties always have multiple interests. e. Relational and identity issues are rarely important in negotiations.
Answer:
E) Relational and identity issues are rarely important in negotiations.
Explanation:
Negotiations between conflicting parties involve people, and whenever people are involved, the possibility of personal issues getting involved always exist. Sometimes a good relationship between the negotiating parties can help to solve the problem more swiftly, but bad relationships can result in exactly the opposite.
Assumptions: These two graphs show two sectors of the labor market for a particular kind of labor. Relevant product markets are competitive. The two labor demand curves are identical. Initially the quantities of labor employed in the two sectors are L1 and L'1, and the wage rate in each sector is Wn. If a union is formed in sector 1 and the union increases the wage rate from Wn to Wu, then employment will Multiple Choice decrease, but we cannot determine by how much. decrease by 0L2 in sector 1. decrease by L1L2 in sector 1. increase by L1L2 in sector 1.
Answer:
Decrease by L1L2 in sector 1
Explanation:
Labour markets are at equilibrium when market demand for labour = market supply of labour.
Sector 1 previous equilibrium is 0L1, equilibrium wage is 0Wn (0 is origin). Union leads to increase in wage rate from 0Wn to 0Wu. This increase in wages lead to decrease in employment in sector 1. Supposing that the new equilibrium labour employed = 0L2, which is lesser than previous employment 0L1. So, the employment level falls by margin difference L1L2 in sector 1.