Answer:
value of a loyal customer = $481,091 (to the nearest dollar)
Explanation:
The Value of a loyal customer (VLC) is the measure of loyalty shown by the customer in choosing a company over its direct competitors every time.
To calculate VLC, the following formula is used:
VLC = (purchase price) × (contribution margin) × (repurchase frequency) × (buyer's life cycle).
From the list of data in the question, you will notice that 'buyer's life cycle (BLC)' is not given. Now, let us calculate BLC.
BLC = 1 ÷ (defection rate)
Defection rate = 22% = 22/100 = 0.22
∴ BLC = 1 ÷ (0.22) = 1/0.22 (do not round intermediate calculations)
∴ VLC = 63,000 × 0.28 × 6 × (1/0.22)
[tex]VLC = \frac{63000 \times 0.28 \times 6}{0.22} \\= 481,090.91[/tex]
= $481,091 (to the nearest dollar)
The value of a loyal customer of a loyal Volvo automobile owner is $481,091.
What is a calculation of the value of a loyal customer?The value of loyal customers or VLC is derived by multiplying the values of the purchase price, contribution margin, repurchase frequency, and buyer's life cycle with each other.
Here, the buyer's life cycle would be calculated by dividing 1 by the defection rate.
Now, VLC would be;
[tex]VLC=63,000*0.28*6*\frac{1}{0.22} \\=481,090.91[/tex]
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Njal had been working as a chainsaw operator for the past 15 years when his company decided to upgrade its equipment from chainsaws to timber harvesters, which are large pieces of equipment that require a new set of skills. The company was unwilling to train existing workers on the new equipment, so Njal needed to find :_________
Answer: when annal company upgrades its operations it will no longer employ chainsaw operations like Neal.Najal is not trained to do what the company needs so he is laid off answer: structural.
After looking for work.....Answer: not in the labor force
Neal signs up for six month government.... Answer: not on the labor force
After completing a part time job..... answer: frictional unemployment
Njali takes a part time job with a computer repair......Answer:U-6
Njali starts his own computer repair company......Answer: part of the labor force
Explanation:
Explain the basic functions and
characteristics of money, and describe the
composition of the money supply in the United States
The basic functions of money are related to its being a unit of measurement, an instrument of exchange and store of values.
What is the money supply?It corresponds to all the currency present in the economy of a given country, that is, the amount of money present in the form of cash and deposits.
Therefore, money is an essential instrument of a country's economy, where money is also used in the form of credit and loans, helping economic development.
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functions of a property manager
Carter-Pierce Investments specializes in low-risk government bonds.
Required
Identify each of Carter-Pierce's transactions as operating (O), investing (I), financing (F), non-cash investing and financing (NIF), or a transaction that is not reported on the statement of cash flows (N). Indicate whether each item increases (+) or decreases () cash. The indirect method is used for operating activities.
NIF
a.
Acquisition of building by cash payment
b.
Decrease in merchandise inventory
c.
Depreciation of equipment
d.
Decrease in accrued liabilities
e.
Payment of cash dividend
f.
Purchase of long-term investment
g.
Issuance of long-term note payable to borrow cash
h.
Increase in prepaid expenses
i.
Accrual of salary expense
j.
Acquisition of equipment by issuance of note payable
k.
Sale of long-term investment
l.
Issuance of common shares for cash
m.
Increase in accounts payable
n.
Amortization of intangible assets
o.
Loss on sale of equipment
p.
Payment of long-term debt
q.
Cash sale of land
r.
Repurchase of common shares
s.
Net income
Answer:
Operating cash Activities relate to transactions that have to do with the daily operations of the business such as accounts receivables, payables and stock.
Investing cash activities relate to transactions that have to do with the capital expenditure of the company such as fixed assets and securities in other companies.
Financing relates to those transactions relating to how the business finances its operations which includes equity and capital.
Anything that would require cash to be spent is reducing the balance and anytime cash comes in, the balance is increased.
Decrease in current asset is an increase because it means less cash was spent to acquire the asset.
Decrease in current liability is a decrease because it means that the company paid cash to reduce the liability.
Amortization and Depreciation add to the Operating balance because they are none cash items that were removed from Net income.
a. Acquisition of building by cash payment ⇒ INVESTING (+).
b. Decrease in merchandise inventory ⇒ OPERATING (+).
c. Depreciation of equipment ⇒ OPERATING (+).
d. Decrease in accrued liabilities ⇒ OPERATING (-)
e. Payment of cash dividend ⇒ FINANCING (-).
f. Purchase of long-term investment ⇒ INVESTING (-).
g. Issuance of long-term note payable to borrow cash ⇒ FINANCING (+).
h. Increase in prepaid expenses ⇒ OPERATING (-).
i. Accrual of salary expense ⇒ OPERATING (+).
j. Acquisition of equipment by issuance of note payable. NIF
k. Sale of long-term investment. ⇒ INVESTING (+).
l. Issuance of common shares for cash. ⇒ FINANCING (+).
m. Increase in accounts payable. ⇒ OPERATING (+).
n. Amortization of intangible assets ⇒ OPERATING (+).
o. Loss on sale of equipment ⇒ OPERATING (-).
p. Payment of long-term debt. ⇒ FINANCING (-)
q. Cash sale of land. ⇒ INVESTING (+)
r. Repurchase of common shares. FINANCING (-).
s. Net income. ⇒ OPERATING(+).
Does the government control all market activity in the United States?
Answer:
Not directly. That would be fascist. There are some regulations placed on some businesses, but owners direct their own businesses.
At the beginning of the recent period, there were 1,230 units of product in a department, 35% completed. These units were finished and an additional 6,100 units were started and completed during the period. 1,240 units were still in process at the end of the period, 25% completed. Using the weighted average method, the equivalent units produced by the department were:
Answer:
7,640 units
Explanation:
Calculation for what the equivalent units produced by the department were Using the weighted average method
First step is to calculate the units Completed & transferred out
Completed & transferred out =6,100+1,230
Completed & transferred out=7,330
Second step is to calculate the EGIP
EGIP= (1,240*25%)
EGIP=310
Now let calculate the equivalent units produced by the department
Equivalent units produced=7,330+310
Equivalent units produced=7,640 units
Therefore Using the weighted average method, the equivalent units produced by the department were:7,640 units
Horizontal analysis of income statement OBJ. 2 For 20Y2, Macklin Inc. reported a significant increase in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement:Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1Sales.................................................................Cost of goods sold.....................................................Gross profit...........................................................Selling expenses......................................................Administrative expenses...............................................Total operating expenses ..............................................Income from operations...............................................Other revenue........................................................Incomebeforeincometax .............................................Incometaxexpense...................................................Netincome...........................................................Instructions 20Y2 $910,000 441,000 $469,000 $ 139,150 99,450 $238,600 $230,400 65,000 $295,400 65,000 $230,400 20Y1 $700,000 350,000 $350,000 $115,000 85,000 $200,000 $150,000 50,000 $200,000 50,000 $150,0001. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Round percentages to one decimal place.2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in (1
Answer:
1. See the the explanation below and the attached xlsx file.
2. From (1), the following can be observed from the attached xlsx file:
a. Net income has increased by $80,400 (equivalent to 53.6%) from 20Y1 to 20Y2.
b. Sales increased by $210,000 (equivalent to 30.0%) from 20Y1 to 20Y2.
c. The cost of goods sold has increased by $91,000 (equivalent to 26.0%) from 20Y1 to 20Y2 which is at a lower rate than sales making the gross profit to increase by $119,000 (equivalent to 34.0%) from 20Y1 to 20Y2.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
The explanation of the answer is now provided as follows:
1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Round percentages to one decimal place.
Note: See the attached xlsx file for the required comparative income statement with horizontal analysis for the two-year period.
Since 20Y1 is required to be used as the base year, the following formula are are used in the xlsx file:
Increase (decrease) Amount = 20Y2 Amount - 20Y1 Amount
Increase (decrease) Percent = (Increase (decrease) Amount / 20Y1 Amount) * 100
2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in (1).
From the attached xlsx file, the following can be observed:
a. Net income has increased by $80,400 (equivalent to 53.6%) from 20Y1 to 20Y2.
b. Sales increased by $210,000 (equivalent to 30.0%) from 20Y1 to 20Y2.
c. The cost of goods sold has increased by $91,000 (equivalent to 26.0%) from 20Y1 to 20Y2 which is at a lower rate than sales making the gross profit to increase by $119,000 (equivalent to 34.0%) from 20Y1 to 20Y2.
Identify each person's status as employed, unemployed, "not in the labor force"
a. Caroline is a 29-year-old who lost her job as an associate producer for a radio station. After spending a few weeks out of work and interviewing for several other positions, she gave up on her job search and decided to go back to grad school. She made that decision a few months ago.
b. Antonio is a 24-year-old professional tennis player. When he's not competing, he works as a coach at a local tennis club.
c. Caroline is a 27-year-old recent college graduate .She did not work for pay last week, but she had two job interviews.
d. Dmitri is a 45-year-old accountant who has been out of work for almost a year. He became so discouraged that he gave up on his job search a couple of months ago.
Answer:
Explanation:
a. "not in the labor force" since she is neither working or looking for a job and instead is studying
b. "employed", currently works as a tennis coach
c. "unemployed", she does not have a paying job yet but is looking for one
d. "not in the labor force", does not have a job and is not looking for one at the current moment in his life.
A company is producing christmas light strings containing 20 small bulbs. Suppose the success or failure of a bulb is independent of the success or failure of other bulbs and the probability that a bulb is lightning properly is 0.92.
a. When you order a christmas light string, what is the probability of at most 3 of those small bulbs are not lightning properly.
b. Find the mean and the variance of bulbs in a string that are not lightning properly.
Answer:
Explanation:
Number of bulbs = 20
Success of a bulb lightning properly = 0.92
Success of a bulb not lightning properly = 0.08
We have to find the probability of atmost 3 bulbs not lightning properly -
The random Variable X follows binomial distribution
= 0.929385
Mean and variance of bulbs in a string that are not lightning properly is given by
Mean of binomial distribution or E(X) = n*p = 20*0.08 = 1.6
Variance of binomial distribution or V(X) = n*p*(1-p) = 20*0.08*0.92 = 1.472
thank you and have a great dAY
Answer:
what there is no question
Explanation:
Weisman, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats.
Activity Cost Pools Estimated Overhead Estimated Use of Cost Drivers per Activity
Designing $448,260 12,400 designer hours
Sizing and cutting 4,009,050 151,000 machine hours
Stitching and trimming 1,419,075 79,500 labor hours
Wrapping and packing 299,250 31,500 finished units
Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools.
a. Designing
b. Sizing and cutting
c. Stitching and trimming
d. Wrapping and packing
Answer and Explanation:
The computation of the activity based overhead rate is shown below:
= Estimated overhead ÷ cost driver per activity
a. For designing
= $448,260 ÷ 12,400
= $36.15 per design hour
b. For sizing and cutting
= $4,009,050 ÷ 151,000
= $26.55 per machine hour
c. For stiching and trimming
= $1,419,075 ÷ 79,500
= $17.85 per labor hour
d. For wrapping and packing
= $299,250 ÷ 31,500
= $9.5 per finished units
Joan Demers launched a professional services firm on March 1. The firm will prepare financial statements at each month-end. In March (its first month), Demers executed the following transactions. Demers (owner) invested in the company, $150,000 cash and $30,000 in property and equipment. The company issued common stock to Demers. The company paid $5,000 cash for rent of office furnishings and facilities for March. The company performed services for clients and immediately received $10,000 cash earned. The company performed services for clients and sent a bill for $20,000 with payment due within 60 days. The company compensated an office employee with $6,000 cash as salary for March. The company received $12,000 cash as partial payment on the amount owed from clients in the 4th transaction above. The company paid $2,000 cash in dividends to Demers (owner). What is the net operating income for the month of March
Answer:
the net operating income is $19,000
Explanation:
The computation of the net operating income is shown below:
As we know that
Net Operating Income = Revenue - Costs
= $10,000 + $20,000 - $5,000 -$6,000
= $19,000
Hence, the net operating income is $19,000
we simply deduct the cost from the revenue so that the net operating income could come
At the end of April, Cavy Company had completed Jobs 766 and 765. The individual job cost sheets reveal the following information:
Job Direct Materials Direct Labor Machine Hours
Job 765 $8,400 $2,520 30
Job 766 11,970 3,780 70
Job 765 produced 180 units, and Job 766 consisted of 280 units.
Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $106 per hour.
A. Determine the balance on the job cost sheets for each job.
B. Determine the cost per unit at the end of April.
Answer:
A. Job 765 $14,100
Job 766 $23,170
B.Job 765 $78.33 unit price
Job 766 $82.75 unit price
Explanation:
A. Calculation to Determine the balance on the job cost sheets for each job
Job 765= $8,400 +$2,520+ (30*$106 per hour)
Job 765=$8,400+ $2,520+$3,180
Job 765=$14,100
Job 766=$11,970 +$3,780+ (70*$106 per hour)
Job 766=$11,970 +$3,780+ $7,420
Job 766=$23,170
Therefore the balance on the job cost sheets for each job will be:
Job 765 $14,100
Job 766 $23,170
B. Calculation to Determine the cost per unit at the end of April
Job 765=$14,100 /180 units
Job 765=$78.33 unit price
Job 766= $23,170/280 units.
Job 766= $82.75 unit price
Therefore the cost per unit at the end of April will be:
Job 765 $78.33 unit price
Job 766 $82.75 unit price
Consider the following comments about absorption- and variable-costing income statements:
I. A variable-costing income statement discloses a firm's contribution margin.
II. Cost of goods sold on an absorption-costing income statement includes fixed costs.
III. The amount of variable selling and administrative cost is the same on absorption- and variable-costing income statements.
Which of the above statements is (are) true?
a. I only.
b. II only.
c. I and II.
d. II and III.
e. I, II, and III.
Answer:
E) I, II, and III.
Explanation:
Variable costing can be regarded as a concept of managerial accounting cost
whereby during the period of producing the product there is incurred
manufacturing overhead.
Absorption costing income statement, utilize absorption costing when creating income statement. The income statement focus on the cost through sectioning of cost into period cost and product.
It should be noted that
I. A variable-costing income statement discloses a firm's contribution margin.
II. Cost of goods sold on an absorption-costing income statement includes fixed costs.
III. The amount of variable selling and administrative cost is the same on absorption- and variable-costing income statements.
REV Co. is reviewing the accounting and disclosure requirements for its significant guarantees, commitments, and contingencies, including litigation, as of December 31, year 3. The financial statements are expected to be available to be issued on February 10, year 4. Use the information in the exhibits above to determine the amount, if any, to recognize and whether disclosure is required in REV's financial statements as of and for the year ended December 31, year 3.
Answer:
REV Co. has made disclosure in notes to the financial statement section. The disclosures include the details about related party transaction which was carried out by the brother of Chief Operating Officer. It is ensured that the transaction was completed on arm's length.
Explanation:
Disclosures are mandatory for any company which is listed. The companies provide details of specific transactions in Notes to the Financial statements. These additional information provides details of transaction to the shareholders and removes any ambiguity in the transaction. The purpose of disclosures is to ensure the shareholders that the company has not incurred any fraudulent activity in certain transactions and all transactions are fair and complies with International Accounting Standards.
What advice or tips would you give Mr. Youngher as he prepares for other interviews? He should learn to appreciate the power of appearance and improve his decoding skills to be a better reader of others’ reactions. He should cancel his appointments and clear his schedule when preparing for interviews, so he’s not late. He should associate with people from diverse cultures to learn about the various customs he’ll encounter in the workplace.
This is the scenario for this question:
Mr. Youngher arrives at his interview for a community relations internship with Bethlehem Electric in Chicago five minutes late and in a rumpled suit. When he is introduced to the chief marketing officer, Mr.Youngher moves in close as they shake hands and winks. The executive takes a step back
Answer:
He should learn to appreciate the power of appearance and improve his decoding skills to be a better reader of others’ reactions.
Explanation:
In the given scenario it is obvious that Mr Youngher did not read the situation and act appropriately.
He came late for the meeting. The correct thing for him to do would have been to apologize.
Instead he moves in close as they shake hands and winks. This kind of familiarity is inappropriate under the circumstances.
Also he went to the interview with a rumpled suit.
This would give a bad impression about himself.
He should learn that a neat appearance creates a good impression about people, this helps them rate you higher
Automation Inc. is a company that provides wireless telecommunications network in several cities in the Midwest region, and the company plans to know more about its customers. The company found that one of his customers has a short customer history of 35, an above-average purchase amount of 75, a low repurchase desirability of 25, a weak product preference of 20, and the customer does not recommend the company's services to potential customers.
Required:
Based on the values provided, what is this customer's loyalty index?
Answer:
2,625
Explanation:
The customer's loyalty index is calculated by multiplying the customer's average purchase amount by the average purchasing frequency. Since both of these values are provided to us in the question we can simply go ahead and multiply them together to get his/her loyalty index.
35 * 75 = 2,625
Finally, we can see that the loyalty index of the customer in question is 2,625
A new faculty member at the local university pays $1,500 per month to rent an apartment in the downtown area. She teaches on campus three days a week and works from home the remaining two days. On the days when she must commute, given the heavy traffic congestion, it takes her two hours each way to commute from downtown to campus. According to the assumptions of the bid-rent model, what should this professor be willing to pay in rent per month to live near campus if her hourly wage rate is $25
Answer:
$2,700
Explanation:
Calculation for what should this professor be willing to pay in rent per month
First step is to calculate the Transportation cost per week
Transportation cost = ($25*4 hrs)* 3 per week
Transportation cost =$100*3 per week
Transportation cost= 300 a week
Now let calculate the rent per month
Rent per month= $1500 + ($300*4)
Rent per month=$1,500+$1,200
Rent per month= $2,700
Therefore what should this professor be willing to pay in rent per month to live near campus if her hourly wage rate is $25 will be $2,700
In the month of November, Swifty Company Inc. wrote checks in the amount of $27850. In December, checks in the amount of $37986 were written. In November, $25399 of these checks were presented to the bank for payment, and $32656 were presented in December. No checks were outstanding at November 1. What is the amount of outstanding checks at the end of December
Answer:
$7,781
Explanation:
The amount of check at the end of December is computed as;
= Checks written in November + Checks written in December - Checks presented in November for payments - Checks presented in December for payments
= $27,850 + $37,986 - $25,399 - $32,656
= $7,781
Blue Hamster Manufacturing Inc.Income Statement for Year Ending December 31
Year 1 Year 2 (Forecasted)
Net sales $15,000,000
Less: Operating costs, except depreciation and amortization 12,000,000
Less: Depreciation and amortization expenses 600,000 600,000
Operating income (or EBIT) $2,400,000 $
Less: Interest expense 240,000
Pre-tax income (or EBT) $2,160,000 $
Less: Taxes (40%) 864,000
Earnings after taxes $1,296,000 $
Less: Preferred stock dividends 300,000
Earnings available to common shareholders $996,000 $
Less: Common stock dividends 583,200
Contribution to retained earnings $412,800
Given the results of the previous income statement calculations, complete the following statements:
• In Year 2, if Blue Hamster has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends.
• If Blue Hamster has 500,000 shares of common stock issued and outstanding, then the firm’s earnings per share (EPS) is expected to change from in Year 1 to in Year 2.
• Blue Hamster’s before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2.
• It is to say that Blue Hamster’s net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company’s annual contribution to retained earnings, $742,400 and $944,225, respectively. This is because of the items reported in the income statement involve payments and receipts of cash.
Question Completion:
The firm's CEO would like sales to increase by 25% next year. 1. Blue Hamster is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT). 2. The company's operating costs (excluding depreciation and amortization) remain at 80% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company's tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Blue Hamster expects to pay $100,000 and $642,600 of preferred and common stock dividends, respectively.
Answer:
Blue Hamster Manufacturing, Inc.
Income Statement for Year Ending December 31
Year 1 Year 2 (Forecasted)
Net sales $15,000,000 $18,750,000
Less: Operating costs, except
depreciation and amortization 12,000,000 15,000,000
Less: Depreciation & amortization
expenses 600,000 600,000
Operating income (or EBIT) $2,400,000 $3,150,000
Less: Interest expense 240,000 472,500
Pre-tax income (or EBT) $2,160,000 $2,677,500
Less: Taxes (40%) 864,000 1,071,000
Earnings after taxes $1,296,000 $1,606,500
Less: Preferred stock dividends 100,000 100,000
Earnings available to
common shareholders $1,196,000 $1,506,500
Less: Common stock dividends 583,200 642,600
Contribution to retained earnings $612,800 $863,900
Explanation:
a) Data and Calculations:
Income Statement for Year Ending December 31
Year 1 Year 2 (Forecasted)
Net sales $15,000,000
Less: Operating costs, except
depreciation and amortization 12,000,000
Less: Depreciation & amortization
expenses 600,000 600,000
Operating income (or EBIT) $2,400,000 $
Less: Interest expense 240,000
Pre-tax income (or EBT) $2,160,000 $
Less: Taxes (40%) 864,000
Earnings after taxes $1,296,000 $
Less: Preferred stock dividends 300,000
Earnings available to
common shareholders $996,000 $
Less: Common stock dividends 583,200
Contribution to retained earnings $412,800
Year 1:
Preferred dividend per share = $300,000/10,000 = $30 per share
Year 2:
Preferred dividend per share = $100,000/10,000 = $10 per share
Year 1:
Earnings per share for common stock = $1,196,000/500,000 = $2.39 per share
Year 2:
Earnings per share for common stock = $1,506,500/500,000 = $3.01 per share
Net sales $18,750,000 ($15,000,000 * 1.25)
Less: Operating costs, except
depreciation and amortization 15,000,000 ($12,000,000 * 1.25)
Interest = 15% of $3,150,000 = $472,500
Taxes (40% * $2,677,500) = $1,071,000
Read the descriptions and identify which region each one describes.
1. Historically, this region has suffered from extreme poverty, which continues to this day. Growth has been effectively zero since the 1960s. Problems such as political instability, poor public health and a lack of effective institutions have all contributed to its stagnation.
2. Until the middle of the last century, these countries were relatively poor. Beginning in the mid 1970s, real GDP per capita growth has averaged 6% per year. The growth was achieved in part because of high levels of investment spending in the development of human and physical capital and rapid technological progress.
3. In the early 1990s, this region was in the middle of substantial social and economic reform. Countries in this region have experienced variable growth rates, depending on their ability to adapt to the modern market economy.
4. In the early 20th century, this region was reasonably prosperous. Since that time, however, growth has stagnated, owing to government instability, banking failures, and runaway inflation. Recently, some countries in the region have begun to grow more consistently, with one country becoming a powerhouse of world economic development.
A. European Transition Economies
B. North Africa
C. South Africa
D. Asian Tigers
E. North America
F. Western Europe
G. South America
H. Sub-Saharan Africa
Answer:
Identifying regions with appropriate descriptions:
Description Region
1. H. Sub-Saharan Africa
2. D. Asian Tigers
3. A. European Transition Economies
4. G. South America
Explanation:
One factor which promotes negative economic growth is political instability. There is also the lack of human and physical development and social and economic reforms, including inconsistencies in governmental policies. For the economy of a region to grow out of poverty, governments must collaborate to pursue reforms on a large scale.
Selected transactions for Bramble, an interior decorator corporation, in its first month of business, are as follows.
a. Issued stock to investors for $16,000 in cash.
b. Purchased used car for $10,700 cash for use in business.
c. Purchased supplies on account for $400.
d. Billed customers $4,010 for services performed.
e. Paid $160 cash for advertising at the start of the business.
f. Received $1,530 cash from customers billed in transaction (4).
g. Paid creditor $400 cash on account.
h. Paid dividends of $530 cash to stockholders.
Required:
For each transaction indicate the basic type of account debited and credited.
Answer:
transaction account debit credit
a. cash 16,000
common stock 16,000
b. vehicles 10,700
cash 10,700
c. supplies 400
accounts payable 400
d. accounts rec. 4,010
service revenue 4,010
e. adv. expense 160
cash 160
f. cash 1,530
accounts rec. 1,530
g. accounts payable 400
cash 400
h. dividends 530
cash 530
Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system with labor hours as the cost driver but is considering switching to an activity-based costing system. In preparation for the possible switch, Bunker has identified two activity cost pools: materials handling and setup. Pertinent data follow: Fabric Case Leather Case Number of labor hours 16,000 8,000 Number of material moves 620 930 Number of setups 40 120 Total estimated overhead costs are $238,800, of which $186,000 is assigned to the materials handling cost pool and $52,800 is assigned to the setup cost pool. Required: 1. Calculate the overhead assigned to the leather case line using the traditional costing system based on direct labor hours. 2. Calculate the overhead assigned to the leather case line using ABC. 3. Was the leather case over- or undercosted by the traditional cost system compared to ABC
Answer:
1. 79,600
2. 151,200
3.The leather case line is undercosted by the traditional cost system compared to ABC
Explanation:
1. Calculation for the overhead assigned to the leather case line using the traditional costing system based on direct labor hours
Overhead Assigned to leather case =[$238,800/(16,000+8,000)*8,000]
Overhead Assigned to leather case =[$238,800/24,000*8,000]
Overhead Assigned to leather case =79,600
Therefore the overhead assigned to the leather case line using the traditional costing system based on direct labor hours will be 79,600
2. Calculation for the overhead assigned to the leather case line using ABC
First step is to calculate the Material handling rate
Material handling rate = 186,000/(620+ 930)
Material handling rate = 186,000/1,550
Material handling rate = 120 per move
Second step is to calculate the Setup cost
Setup cost =$52,800/(40+ 120)
Setup cost =$52,800/160
Setup cost = 330 per setup
Now let calculate overhead assigned to the leather case line using ABC
Overhead assigned to leather case ABC = (930*120)+(120*330)
Overhead assigned to leather case ABC =111,600+39,600
Overhead assigned to leather case ABC = 151,200
Therefore the overhead assigned to the leather case line using ABC will be 151,200
3. Based on the above calculation the leather case line is undercosted by the traditional cost system compared to ABC
Match the vocabulary word with the correct definition
system for gathering and organizing marketing
information used in decision-making
specific actions which advance the strategy and achieve
an end result
specific, measureable, short-term expectations
objectives
goals
broad, long-term expectations for future achievements
structured research which uses the scientific method and
standardized questions to make generalizations and
predictions, includes questionnaires, surveys and
experiments
statements describing the overall approach to how goals
and objectives will be achieved
:: marketing information system
:: quantitative research
:: strategies
:: tactics
Answer:
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Which of the following statements is an example of a personal skill:
a. I volunteer in my community
b. I’m a really good cook
c. I like being outside
d. I love learning new things
Classifications of Cash-flows
A Lump sum today B Lump sum in the future
C Ordinary level annuity D Ordinary growing annuity
E Level annuity due F Growing annuity due
G Delayed level annuity H Delayed growing annuity
Use the classifications (choose from A to H) that best describe the cash-flows given below
Today 1 2 3 4 5 6 7 8 9 10
$100 $110 $121
Answer:
The answer is D
Explanation:
Sprinkle Inc. has outstanding 10,000 shares of $10 par value common stock. On July 1, 2020, Sprinkle reacquired 200 shares at $91 per share. On September 1, Sprinkle reissued 80 shares at $102 per share. On November 1, Sprinkle reissued 120 shares at $70 per share. Prepare Sprinkle's journal entries to record these transactions using the cost method.
Answer:
7/1/20
Dr Treasury Stock $18,200
Cr Cash $18,200
9/1/20
Dr Cash $8,160
Cr Treasury Stock $7,280
Cr Paid-in Capital - Treasury Stock $880
1/1/20
Dr Cash $8,400
Dr Paid-in Capital - Treasury Stock $2,520
Cr Treasury Stock
Explanation:
Preparation of Sprinkle's journal entries to record these transactions using the cost method.
7/1/20
Dr Treasury Stock $18,200
(200 shares * $91 per share)
Cr Cash $18,200
(Being To record the reacquired 200 shares)
9/1/20
Dr Cash $8,160
(80 shares * $102 per share)
Cr Treasury Stock $7,280
(80 shares * 91 per share)
Cr Paid-in Capital - Treasury Stock $880
($8,160-$7,280)
(Being To record the reissue of treasury stock)
1/1/20
Dr Cash $8,400
(120 shares * $70per share)
Dr Paid-in Capital - Treasury Stock $2,520
($91- $70 = $21* 120 shares)
Cr Treasury Stock
(120 shares * $91 per share) $10,920
(Being To record the reissue of treasury stock)
Faye, Gary, and Heidi each have a one-third interest in the capital and profits of the FGH Partnership. Each partner had a capital account of $50,000 at the beginning of the tax year. The partnership profits for the tax year were $270,000. Changes in their capital accounts during the tax year were as follows:
Faye Gary Heidi Total
Beginning balance $50,000 $50,000 $50,000 $150,000
Withdrawals (20,000) (35,000) (10,000) (65,000)
Additional contributions -0- -0- 5,000 5,000
Allocation of profits 90,000 90,000 90,000 270,000
Ending balance $120,000 $105,000 $135,000 $360,000
In arriving at the $270,000 of partnership profits, the partnership deducted $2,400 ($800 for each partner) in premiums paid for group term life insurance on the partners. Faye and Gary are 39 years old, and Heidi is 35 years old. Other employees are also eligible for group term life insurance equal to their annual salary. These premiums of $10,000 have been deducted in calculating the partnership profits of $270,000.
Each partner's gross income from the partnership for the tax year is $_________
Community Property (LO. 3)
Liz and Doug were divorced on December 31 of the current year after 10 years of marriage. Their current year's income received before the divorce was as follows:
Doug's salary $41,000
Liz's salary $55,000
Rent on apartments purchased by Liz 15 years ago $8,000
Dividends on stock Doug inherited from his mother 4 years ago $1,900
Interest on a savings account in Liz's name funded with her salary $2,400
Allocate the income to Liz and Doug assuming that they live in:
a. California.
Doug: $ Liz: $
b. Texas.
Doug: $ Liz: $
Answer:
a. Each partner's gross income from the partnership for the tax year is $_________
$90,800
b. Community Property:
a. California.
Doug: $51,100 Liz: $57,200
b. Texas.
Doug: $54,150 Liz: $54,150
Explanation:
a) Data and Calculations:
Partnership profits = $270,000
Add Insurance premium 2,400
Total profits shareable $272,400
Share of each partner = $90,800 ($272,400/3)
(Or Share of profit $90,000 + Premium $800 = $90,800)
b) Community Property:
Doug's salary $41,000
Liz's salary $55,000
Rent on apartments purchased by Liz 15 years ago $8,000
Dividends on stock Doug inherited from his mother 4 years ago $1,900
Interest on a savings account in Liz's name funded with her salary $2,400
Total community property = $108,300
Less Separate Property:
Less Liz's rent $8,000
Less Doug's dividends $1,900 9,900
Remaining community property = $98,400
This is shared equally ($98,400/2) = $49,200
a. California.
Doug: $51,100 ($49,200 + $1,900) Liz: $57,200 ($49,200 + $8,000)
b. Texas.
Doug: $54,150 Liz: $54,150 ($108,300/2)
c) Texas and California are two of the nine states that have community property jurisdiction. The implication is that any property acquired by a couple during their marriage is equally owned by both spouses. In California, the spouse also owns a one-half interest in your regular income, provided it does not come from your separate property. But in Texas, income from separate property is included in the community property and is equally shared, though the separate property itself remains separate and is not shareable.
The equilibrium level of real GDP in a country is $480 billion. Suppose that planned investment decreases by $5 billion. This decrease causes real GDP to shift to a new equilibrium level of $470 billion.
A. What will be the size of the spending multiplier for this country?
B. What is the marginal propensity to save (MPS) for this country?
Answer:
A. Spending multiplier for this country = 2
B. Marginal propensity to save (MPS) for this country = 0.5
Explanation:
A. What will be the size of the spending multiplier for this country?
This can be calculated as follows:
Change in real GDP = New real GDP – Old real GDP = $470 billion - $480 billion = -$10 billion
Change in planned investment = -$5 billion
Marginal propensity to spend = Change in planned investment / Change in real GDP = -$5 billion / -$10 billion = 0.5
Spending multiplier for this country = 1 / (1 - Marginal propensity to spend) = 1 / (1 – 0.5) = 1 / 0.5 = 2
B. What is the marginal propensity to save (MPS) for this country?
This can be calculated as follows:
Marginal propensity to save (MPS) = 1 - Marginal propensity to spend
Marginal propensity to save (MPS) = 1 – 0.5
Marginal propensity to save (MPS) = 0.5
The spending multiplier for the country would be 2.
The marginal propensity to save (MPS) for the country would be 0.5
What is the calculation of the spending multiplier?The spending multiplier would be derived after the computation of marginal propensity to spend.
Here, Change in planned investment would be divided by Change in real GDP, that is,
[tex]\frac{-5}{470-480} \\=0.5[/tex]
Therefore, the spending multiplier would be;
[tex]\frac{1}{1-MPS}\\ \frac{1}{1-0.5} \\=2[/tex]
What is the calculation of marginal propensity to save?
[tex]1-MPS\\=1-0.5\\=0.5[/tex]
Learn more about marginal propensity to save here:
https://brainly.com/question/25114074
Record the December 31 adjusting entries for the following transactions and events in general journal form. Assume that December 31 is the end of the annual accounting period. (5 p.)
a. The Prepaid Insurance account shows a debit balance of $2,340, representing the cost of a two-year fire insurance policy that was purchased on October 1 of the current year and has not been adjusted to-date.
b. The Store Supplies account has a debit balance of $400; a year-end inventory count reveals $80 of supplies still on hand.
c. On November 1 of the current year, Unearned Rent was credited for $1,500 for a three-month rent period beginning Nov. 1.
d. Estimated depreciation on store equipment is $600.
e. Accrued salaries amount to $1,400.
Answer:
a.
Insurance expense $292.5 Dr
Prepaid Insurance $292.5 Cr
b.
Supplied expense $320 Dr
Supplies $320 Cr
c.
Unearned rent $1000 Dr
Rent Revenue $1000 Cr
d.
Depreciation expense $600 Dr
Accumulated depreciation - Equipment $600 Cr
e.
Salaries expense $1400 Dr
Salaries Payable $1400 Cr
Explanation:
a.
Insurance expense has been debited for three month period of current year from October to December. The insurance expense for 3 month period was
Insurance expense = 2340 * 3/24 = $292.5
b.
The supplies worth 400 - 80 = 320 have been used and should be recorded as a debit to supplies expense and a credit to supplies
c.
Rent for two months period worth 1500 * 2/3 = $1000 has been earned by the end of December and should be recorded as rent revenue and debit to unearned rent.
d.
The depreciation expense should be recorded.
e.
The salaries are payable and recorded as an expense and a liability to show that they are still payable