I got answer b but you may wanna double check
Answer:
its b
Explanation:
i got it right on mine
The same question stem will be used in the next 5 questions. Question stem: Assume that banks hold 7 percent excess reserves, the currency to deposit ratio is 15 percent, and the required reserve ratio is 10 percent. Suppose that the Federal Reserve purchases 250 million dollars worth of bonds from the public. First question for this stem: What is the value of the deposit multiplier
Answer: 10
Explanation:
The Deposit multiplier is a number that enables us calculate the maximum total amount of money that can be generated from deposits in a bank after the bank has left a portion of its deposits as required reserves.
= 1 / Required reserve ratio
= 1 / 10%
= 10
Suppose three engineers come to you with a plan for a disruptive, yet-to-be developed software program that seems compelling. They are asking for $10 million, the amount they think they will need over the next three years to reach cash flow positive. They have a pitch deck that includes a proposed deal. They are offering you 25% of the company. The founders own the remaining 75%. You will buy common stock, and are entitled to one of four seats on the board of directors; they hold the other three seats. One slide in the deck contains a detailed prediction of the value of the company. If you invest $10 million, you will own shares that are worth at least $50 million at the end of the third year.
Required:
a. What do you think of this proposed deal?
b. What counteroffer would you make?
Answer:
Explanation:
The Proposed bargain or deal is supportive of the business visionaries instead of the financial backer(investor) since all the capital is coming from the financial backer and the investor will be receiving just only 25% for the bargain or deal while he faces all the challenges posed or loss of capital. The business visionaries are not placing in any of their own personal capital but only their idea. They likewise have a bigger say in the administration of the business and the financial backer has no power over the choice since he conveys just 25% votes. Consequently, it's not a good bargain or deal for the financial backer considering the risk-reward ratio.
The counter-offer will include raising a proposed equity percent rate to half (i.e 50%). In addition to that, the financial backer needs to demand another seat on the board with the goal that they have equivalent authority over the administration and its choices. The most reduced the financial backer can go down is equity of 40% stake.
etaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Calculate the equivalent units of production for the year: Beginning Work in Process (40% complete, $1,100) 200 units Ending inventory of Work in Process (80% complete) 400 units Total units started during the year 3,200 units
Answer:
Equivalent units of production= 3,520
Explanation:
Giving the following information:
Ending inventory of Work in Process (80% complete) 400 units
Total units started during the year 3,200 units
To calculate the equivalent units using the weighted-average method, we need to use the following formula:
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production= 3,200 + (400*0.8)
Equivalent units of production= 3,520
in managing production worker compensation and expenditures for best practice training, the overriding objective of company managers should be to
Answer:
i am sooooooo sorry im new and i need point and agian i'm so sorry
Explanation:
To attain the lowest possible labor costs per pair produced at each production site, the corporation must minimize labor costs per pair produced at each of its plants.
What is the training objective of production workers?The overarching goal of firm management should be to obtain the lowest possible labor costs per pair produced at each production facility in controlling production worker remuneration and expenditures for best practice training.
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From 1975-2015, inflation has ____ real wages for most workers in the U.S.
a. not changed
b. raised
c. not enough information
d. lowered
Answer:
hi, how are you?
Explanation:
From 1975-2015, lowered inflation has real wages for most workers in the U.S. The appropriate response is option D.
What is inflation?Inflation is the generalized rise in prices for goods and services. As the general price level rises, each unit of currency may buy fewer goods and services, hence inflation is related to a reduction in the purchasing power of money.
The main categories of inflation are as follows: Consumer-driven inflation price-driven inflation.
The overall rise in a nation's pricing for goods and services is referred to as inflation. Money loses value due to inflation, becoming progressively weaker over time.
In order to provide better comparisons throughout time, real wages have been adjusted to account for the impact of inflation. What has been discovered is that, when compared to other developed nations, inflation has decreased the salaries of the majority of American employees.
Hence, option D is an appropriate response.
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One of the reasons we make bad decisions is because we have to rely on our perceptions.
a. True
b. False
Answer:
false??
Explanation:
ased on the segment income statement below, Chips, Inc. is considering eliminating its Barbecue Division line. Revenue from Barbecue Division sales $ 528,000 Salaries for Barbecue Division workers (128,000 ) Direct material (342,000 ) Sunk costs (equipment depreciation) (82,000 ) Allocated company-wide facility-sustaining costs (64,000 ) Net loss $ (88,000 ) If the Division is eliminated, what is the total amount of avoidable cost?
Answer:
the total amount of avoidable cost is $470,000
Explanation:
The computation of the total amount of avoidable cost is shown below:
= Salaries for Barbecue Division workers + direct materials
= $128,000 + $342,000
= $470,000
Hence, the total amount of avoidable cost is $470,000
We simply added the above two items
. True or False.
1. Creativity, problem-solving skills, and physical dexterity are examples of aptitudes.
2. The Occupational Outlook Handbook would be most useful for determining detailed information on various career clusters.
3. The purpose of an informational interview is to gather information about an organization or a career.
4. A seventy percent of professional locate employment positions presently available through networking and personal contacts.
Answer:
For #1 True
For #2 i think false
For #3 true
And for #4 false
Explanation:
Please let me know what the correct answers were if i answered 1-4 incorrectly but hope this helps
1. Creativity, problem-solving skills, and physical dexterity are all examples of aptitudes are true.
Creativity, problem-solving skills, and physical dexterity are natural talents or abilities that can be developed and applied to various tasks or activities.
2. False. The Occupational Outlook Handbook (OOH) is a publication by the U.S. Bureau of Labor Statistics (BLS) that provides detailed information about various occupations, including job outlook, earnings, education requirements, and job duties.
3. True. The purpose of an informational interview is to gather information about an organization or a career. It involves having a conversation with someone who works in a field or company of interest to learn more about their experiences, insights, and advice.
4. False. The statement is grammatically incorrect and difficult to interpret accurately. However, if we assume that the intended meaning is "Seventy percent of professionals find employment positions through networking and personal contacts," then it could be considered true.
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The management of Mitchell Labs decided to go private in 2002 by buying all 3.30 million of its outstanding shares at $17.50 per share. By 2006, management had restructured the company by selling off the petroleum research division for $13.50 million, the fiber technology division for $9.25 million, and the synthetic products division for $23 million. Because these divisions had been only marginally profitable, Mitchell Labs is a stronger company after the restructuring. Mitchell is now able to concentrate exclusively on contract research and will generate earnings per share of $1.40 this year. Investment bankers have contacted the firm and indicated that if it reentered the public market, the 3.30 million shares it purchased to go private could now be reissued to the public at a P/E ratio of 12 times earnings per share.
Required:
a. What was the initial cost to Mitchell Labs to go private?
b. What is the total value to the company from (1) the proceeds of the divisions that were sold, as well as (2) the current value of the 3.30 million shares (based on current earnings and an anticipated P/E of 12)?
c. What is the percentage return to the management of Mitchell Labs from the restructuring?
Answer: See explanation
Explanation:
a. What was the initial cost to Mitchell Labs to go private?
This will be calculated as:
= Price per share × Number of shares
= $17.50 × 3.3 million
= $57.75 million
b. What is the total value to the company from (1) the proceeds of the divisions that were sold, as well as (2) the current value of the 3.30 million shares (based on current earnings and an anticipated P/E of 12)?
This will be calculated as:
= $13.5 Million + $9.25 Million + $23 Million + [(12 X $ 1.40) × 3.3 Million]
= $45.75 Million + $55.44 Million
= $101.19 Million
c. What is the percentage return to the management of Mitchell Labs from the restructuring?
This will be calculated as:
= {$101.19 Million - $57.75 Million} /$57.75 Million
= $43.44/$57.75 × 100
= 0.7522 × 100
= 75.22%
Suppose the demand for a product is normally distributed with a mean of 2300 and a standard deviation of 800. Suppose that the company ordered 2200 units. Under this situation, what would be the probability that the company will leave 100 units or more of demand unsatisfied? A. Below 20% B. Between 20.01% and 40% C. Between 40.01% and 60% D. Between 60.01% and 80% E. Above 80.01%
Answer:
The answer is "Option C"
Explanation:
Given:
[tex]\mu=2300\\\\\sigma=800 \ units\\[/tex]
We have [tex]D>2300[/tex] as [tex]\mu = 2300[/tex] for [tex]x=2300[/tex] or more [tex]p =50\%[/tex] as they requested [tex]2200[/tex] units to be [tex]100[/tex] more unsatisfactory. Therefore, the value is in between [tex]40.01\% \ and \ 60\%[/tex]
Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms. Neon has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by two days. Furthermore, the cash management department of her bank has indicated to her that she can defer her payments on her accounts by one-half day without affecting suppliers. The bank has a remote disbursement center in Florida.
a. If Neon Light Company has $2.55 million per day in collections and $1.11 million per day in disbursements, how many dollars will the cash management system free up? (Enter your answer in dollars not in millions (e.g., $1,234,567).)
b. If Neon Light Company can earn 7 percent per annum on freed-up funds, how much will the income be? (Enter your answer in dollars not in millions (e.g., $1,234,567).)
c. If the total cost of the new system is $430,000, should it be implemented?
Yes
No
Answer:
a. Cash freed up by cash management:
= Amount received * speed increased by + Amount disbursed by speed reduced by
= 2,550,000 * 2 days + 1,110,000 * 1/2 days
= 5,100,000 + 555,000
= $5,655,000
b. Interest on freed up cash:
= 5,655,000 * 7%
= $395,850
c. No. It is less than the income earned from interest from freed up cash so it should not be implemented as it brings no additional benefit.
A borrower takes out a 30-year price level adjusted mortgage loan for $200,000 with monthly payments. The initial interest rate is 4% with 4 points. Assuming that inflation is expected to increase at the rate of 3% for the next 5 years, and a fully amortizing loan is made. What is the expected effective yield to the lender if the loan is repaid in 2 years
Answer:
Effective yield = 7%
Explanation:
Determine the expected effective yield to the lender if Loan is repaid in 2 years
Effective annual yield = [tex]( 1 + IRR )^{n-1}[/tex]
n = 12 months
IRR = 0.57%
hence expected effective yield to Lender if Loan is repaid in 2 years
≈ 0.07 = 7%
Use Excel to determine the IRR Function
From the table below the IRR value = 0.57%
Below is a table showing the Year and CF values
Year CF
0 -200,000
1 $954.83
2 $954.83
3 $954.83
4 $954.83
5 $954.83
6 $954.83
7 $954.83
8 $954.83
9 $954.83
10 $954.83
11 $954.83
12 $954.83
13 $983.48
14 $983.48
15 $983.48
16 $983.48
17 $983.48
18 $983.48
19 $983.48
20 $983.48
21 $983.48
22 $983.48
23 $983.48
24 $205,538.11
Assume the cholesterol levels in a certain population have mean µ= 200 and standard deviation σ = 24. The cholesterol levels for a random sample of n = 9 individuals are measured and the sample mean x is determined. What is the z-score for a sample mean x = 180?
a. –3.75
b. –2.50
c. −0.83
d. 2.50
The required z-score for the given sample mean would be -0.83. which is the correct answer would be an option (C).
What is Z -score?A Z-score is defined as the fractional representation of data point to the mean using standard deviations.
Given the mean µ= 200 and standard deviation σ = 24. The cholesterol levels for a random sample of n = 9 individuals are measured sample mean is 180.
To determine the Z-score for the given sample mean
⇒ z-score = (X-ц )/σ
Here,
ц = 200
σ = 24
X = 180
Substitute the values in the above formula,
⇒ z-score = (180 - 200)/24
⇒ z-score = -20 /24
⇒ z-score = -0.833
Therefore, the required z-score for the given sample mean would be -0.83.
Hence, the correct answer would be an option (C).
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Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales $ 7,500,000 Net operating income $ 600,000 Average operating assets $ 5,000,000 Required: 1. Compute the margin. 2. Compute the turnover. (Round your answer to 1 decimal place.) 3. Compute the return on investment (ROI). (Do n
Answer:
1. 8%
2. 1.5
3. 12%
Explanation:
1) Computation for the margin
Using this formula
Margin = Net operating income/Sales
Let plug in the formula
Margin= 600000/7500000
Margin = 8%
2) Computation for the turnover
Using this formula
Turnover = Sales/average operating assets
Let plug in the formula
Turnover = 7500000/5000000
Turnover= 1.5
3) Computation for the return on investment (ROI
ROI = 8*1.5
ROI= 12%
The City of Cowling decides to construct a new library, which it estimates will cost $8.5 million. The City will finance the library with a state construction grant of $3 million; a general obligation bond issuance of $5 million; and a transfer from the General Fund of $500,000. Prepare journal entries to record the following transactions in the Capital Projects Fund. No budgetary entries other than encumbrances should be recorded.
Answer:
a. Dr Cash 500,000
Cr Transfer in from General Fund 500,000
b. Dr Cash 5,000,000
Cr Other financing source—long-term debt issued 5,000,000
c. Dr Encumbrances—capital project 8,300,000 Cr Budgetary fund balance reserved for encumbrances 8,300,000
d. Dr Cash 3,000,000
Cr Revenues—construction grant 3,000,000
e. Dr Budgetary fund balance reserved for encumbrances 8,300,000
Cr Encumbrances—capital project 8,300,000
Dr Expenditures—construction costs 8,400,000 Cr Retainage payable 840,000
Cr Construction contracts payable 7,560,000
f. Dr Construction contracts payable 7,560,000 Cr Cash 7,560,000
g. Dr Retainage payable 840,000
Cr Cash 840,000
h. Dr Transfer out to Debt Service Fund 100,000
Cr Cash 100,000
Explanation:
Preparation of the journal entries to record the Capital Projects Fund
a. Dr Cash 500,000
Cr Transfer in from General Fund 500,000
b. Dr Cash 5,000,000
Cr Other financing source—long-term debt issued 5,000,000
c. Dr Encumbrances—capital project 8,300,000 Cr Budgetary fund balance reserved for encumbrances 8,300,000
d. Dr Cash 3,000,000
Cr Revenues—construction grant 3,000,000
e. Dr Budgetary fund balance reserved for encumbrances 8,300,000
Cr Encumbrances—capital project 8,300,000
Dr Expenditures—construction costs 8,400,000 Cr Retainage payable 840,000
(10%*8,400,000)
Cr Construction contracts payable 7,560,000
(8,400,000-840,000)
f. Dr Construction contracts payable 7,560,000 Cr Cash 7,560,000
(8,400,000-840,000)
g. Dr Retainage payable 840,000
Cr Cash 840,000
(10%*8,400,000)
h. Dr Transfer out to Debt Service Fund 100,000
Cr Cash 100,000
cube root of 9 rational or irrational
Gerrell Corp. is comparing two different capital structures. Plan I would result in 18,000 shares of stock and $95,000 in debt. Plan II would result in 14,000 shares of stock and $190,000 in debt. The interest rate on the debt is 5 percent. Compare both of these plans to an all-equity plan assuming that EBIT will be $90,000. The all-equity plan would result in 22,000 shares of stock outstanding. Assuming that the corporate tax rate is 40 percent, what is the EPS for each of these plans
Answer:
Plan I
Number of share outstanding = 18,000
Value of debt = $95,000
Interest on debt = $95,000*5% = $4,750
EBIT = $90,000
Net Income = ($90,000 - $4,750)*(1 - 40%) = $85,250*60% = $51,150
EPS in case of plan I = $51,150 / 18,000 = $2.84.
Plan II
Number of share outstanding = 14,000
Value of debt = $190,000
Interest on debt = $190,000*5% = $9,500
EBIT = $90,000
Net Income = ($90,000 - $9,500)*(1 - 40%) = $80,500*60% = $48,300
EPS in case of plan II = $84,300 / 14,000 = $3.45
All equity Plan
Net Income = $90,000 * (1 - 40%) = $54,000
EPS in case of all equity plan = $54,000 / 22,000 = $2.45.
RecRoom Equipment Company received an $12,600, six-month, 5% note to settle an $12,600 unpaid balance owed by a customer.
The note is accepted by RecRoom on November 1, causing the company to increase its Notes Receivable and decrease its Accounts Receivable.
RecRoom adjusts its records for interest earned to its December 31 year-end.
RecRoom receives the interest on the note's maturity date.
RecRoom receives the principal on the note's maturity date.
Make journal entries:
A) Record the receipt of a note on November 1 for $8,000 to settle an outstanding accounts receivable balance of a customer.
B) Record the interest accrued on the note as of December 31.
C) Record the receipt of the interest on the note’s maturity date.
D) Record the receipt of the payment for the full principal.
Answer:
A. Dr Notes Receivable $12,600
Cr Cash $12,600
B. Dr Interest Receivable $105
Cr Interest Revenue $105
C. Dr Cash $315
Cr Interest Receivable $105
Cr Interest Revenue $210
D. Dr Cash $12,600
Cr Notes Receivable $12,600
Explanation:
A. Preparation of the journal entry to Record the receipt of a note on November 1
November 1
Dr Notes Receivable $12,600
Cr Cash $12,600
(Being to record the receipt of a note )
B. Preparation of the journal entry to Record the interest accrued on the note as of December 31.
December 31
Dr Interest Receivable $105
Cr Interest Revenue $105
($12,600 x .05 x 2/12= $105)
(Being to record interest accrued on the note)
C. Preparation of the journal entry to Record the receipt of the interest on the note’s maturity date.
Dr Cash $315
($12,600 x .05 x 6/12= $315)
Cr Interest Receivable $105
($12,600 x .05 x 2/12= $105)
Cr Interest Revenue $210
($12,600 x .05 x 4/12= $210)
(Being to record receipt of the interest on the note’s maturity date)
D. Preparation of the journal entry to Record the receipt of the payment for the full principal.
Dr Cash $12,600
Cr Notes Receivable $12,600
(Being to to Record the receipt of the payment for the full principal)
Perion Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 11,500 hours and the total estimated manufacturing overhead was $275,425. At the end of the year, actual direct labor-hours for the year were 11,100 hours and the actual manufacturing overhead for the year was $270,425. Overhead at the end of the year was:
Answer: $4580 Underapplied
Explanation:
To solve this, we have to calculate the predetermined overhead rate first and this will be:
= Estimated total manufacturing overhead / Estimated total amount of the allocation base
= $275,425 / 11500
= 23.95
Since the actual direct labor-hours for the year were 11,100 hours, the applied overhead will be:
= 11100 × 23.95
= $265845
Since actual manufacturing overhead for the year was $270,425, and the applied overhead was $265845, there's an Underapplied overhead of ($270,425 - $265845) = $4580
US Apparel (USA) manufactures plain white and solid-colored T-shirts. Budgeted inputs include the following
Price Quantity Cost per unit of output
fabric $8 per yard 0.75 yards per unit $6 per unit
labor $16 per DMLH 0.25 DMLH per unit $4 per unit
dye $0.50 per ounce 4 ounces per unit $2 per unit
For colored T-shirts only
Budgeted sales and selling price per unit is as follow:s:
Budgeted Sales Selling Price per Unit
White T-shirts 10,000 units $12 per T-shirt
Colored T-shirts 50,000 units $15 per T-shirt
The USA has the opportunity to switch from using the dye it currently uses to using an environmentally friendly dye that costs $1.25 per ounce. The company would still need 4 ounces of dye per shirt. The USA is reluctant to change because of the increase in costs (and decrease in profit), but the Environmental Protection Agency has threatened to fine the company $130,000 if it continues to use the harmful but less expensive dye
a. Given the preceding information, would the USA be better off financially by switching to the environmentally friendly dye? (Assume all other costs would remain the same.)
b. Assume the USA chooses to be environmentally responsible regardless of cost, and it switches to the new dye. The production manager suggests trying Kaizen costing. If the USA can reduce fabric and labor costs each by 1% per month on all the shirts it manufactures, by how much will overall costs decrease at the end of 12 months? (Round to the nearest dollar for calculating cost reductions.)
c. Refer to requirement 2. How could the reduction in material and labor costs be accomplished? Are there any problems with this plan?.
Answer:
A) USA will not be better off switching to the new dye since the cost is greater than the Fine
B) $118076
C) The reduction in material/fabric cost can be achieved by the reduction in material wastage and in the use of quality materials
while the reduction in labor cost can be achieved by Hiring well trained employees with the necessary skillset
Explanation:
A) Determine If the USA be better off using the new dye
Units of clothes to be dyed = 50,000
Difference in cost = [ 4 ( 1.25 - 0.5 ) ] = 4 * 0.75 = $3
Total cost of using the new dye = 50000 * $3 = $150,000
Fine = $130,000
hence USA will not be better off switching to the new dye since the cost is greater than the Fine
B) Determine by how much overall cost will be reduced at the end of 12 months using Kaizen costing
condition : reduce fabric and labor cost by 1%
Original Monthly Costs without the use of Kaizen Costing =( Total Units/Number of Months)*(Fabric Cost per Unit + Labor Cost per Unit)*Number of Months
= [( 10000 + 50000 )/12 ) * ( 6 + 4 ) ] *12
= [ 5000 * 10 ] *12 = $600,000
Applying kaizen costing
Given: Fabric cost per unit = $6 , Labor cost per unit = $4
Total units of production = 10000 + 50000 = 60,000
Kaizen costing formula per month = [ (cost per unit * total units / 12 ) - ( 1% of cost per unit * total units / 12) ]
Total annual cost using Kaizen costing = $56807.61
difference in cost = $600,000 - $568076 = $31924
with the new dye and Kaizen costing the overall cost will be change by $118076 i.e. ($150,000 - $31924) = $118076
C ) The reduction in material/fabric cost can be achieved by the reduction in material wastage and in the use of quality materials
while the reduction in labor cost can be achieved by Hiring well trained employees with the necessary skillset
Questions and answer
Most successful firms have a clearly defined, well-written marketing plan that specifies the marketing activities to be performed to implement, manage, and evaluate its marketing strategies.
a. True
b. False
Answer:
a. True
Explanation:
Most successful firms have a clearly defined, well-written marketing plan that specifies the marketing activities to be performed to implement, manage, and evaluate its marketing strategies.
The typical marketing plan has multiple components which are based on information derived through environmental scanning.
Environmental scanning is a management strategy that focuses on systematically acquiring informations about occasions, trends, events or patterns through surveys and analysis of these information in an organisation's external and internal environment. The informations acquired through environmental scanning is then used by the executive management in strategically planning the organisation's future and exploitation of available opportunities for the success of the organization.
The internal environmental scanning offers an organization strength and weakness while the external environmental scanning provides information about opportunities and threats while the external environmental scanning gives an overview of the opportunities in the market as well as potential threats to an organization.
Organizations face myriad barriers and obstacles to effectively increasing and embracing diversity in their workplaces. Some of these barriers stem from people in the organization who are resistant to changing the organization to make it more diverse. This activity is important because resistance to this type of change is an attitude that managers will come up against frequently, and managers should be able to recognize when this occurs so that they can manage the organization and its employees through this challenging but very important type of change.
The goal of this exercise is to challenge your knowledge of the barriers to diversity.
Stereotypes and Prejudices
Fear of Discrimination Against Majority Group Members
Resistance to Diversity Program Priorities
A Negative Diversity Climate
Lack of Support for Family Demands
A Hostile Work Environment for Diverse Employees
First, hover over the terms to read examples of barriers to diversity in action. Then, click and drag each term to indicate the specific barrier to diversity its example best depicts.
Answer:
Stereotypes
- Resistant to diversity program priorities
- Lack of support for family demands
Prejudices
- Fear of discrimination against majority group members
- A negative diversity climate
- A hostile work environment for diverse employees
Explanation:
Examples for stereotypes and prejudices are given below
Stereotypes
- Resistant to diversity program priorities
- Lack of support for family demands
Prejudices
- Fear of discrimination against majority group members
- A negative diversity climate
- A hostile work environment for diverse employees
Vaughn Company's inventory records show the following data: Units Unit Cost Inventory, January 1 11000 $8.80 Purchases: June 18 5000 8.00 November 8 4000 6.00 A physical inventory on December 31 shows 3500 units on hand. Vaughn sells the units for $14 each. The company has an effective tax rate of 18%. Vaughn uses the periodic inventory method. The weighted-average cost per unit is
Answer:
Vaughn Company
The weighted-average cost per unit is
= $8.04
Explanation:
a) Data and Calculations:
Units Unit Cost Total
Inventory, January 1 11,000 $8.80 $96,800
Purchases: June 18 5,000 8.00 40,000
November 8 4,000 6.00 24,000
Total 20,000 $160,800
The weighted-average cost per unit = $8.04 ($160,800/20,000)
b) The weighted average method of recording inventory adds up the total units and costs of beginning and current period purchased or manufactured inventory. The total costs are divided by the total units to obtain the weighted-average cost per unit.
Assume that apples cost $0.60 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $0.70 in 2009. If the household consumption bundle included 10 apples and 5 oranges in 2002 and 5 apples and 10 oranges in 2009, then the CPI for 2002 using 2009 as the base year is A. 12.1 B. 13.0 C. 13.5 D. None of the above
Answer: 91.67
Explanation:
Consumer Price Index₂₀₀₂ = ( Basket Price in Year of interest₂₀₀₂ / Basket Price in Base year₂₀₀₉) * 100
Basket Price in 2002 = (10 * 0.6) + (5 * 1)
= $11
Basket Price in 2009 = (5 * 1) + (10 * 0.7)
= $12
Consumer Price index = 11/12 * 100
= 91.67
define foreclosure economics.
Answer:
Foreclosure is the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property
Following are five series of costs A through E measured at various volume levels. Identify each series as either fixed, variable, mixed, step-wise, or curvilinear.
Volume (Units) Series A Series B Series C Series D Series E 0 $ 0 $ 2,400 $ 6,400 $ 0 $ 3,200 400 6,700 2,400 6,400 4,160 3,800 800 7,370 3,400 6,400 8,320 4,400 1,200 8,040 3,400 6,400 12,480 5,000 1,600 9,157 4,400 6,400 16,640 5,600 2,000 10,720 4,400 6,400 20,800 6,200 2,400 15,075 5,400 6,400 24,960 6,800
Answer:
Series Nature
Series A Curvilinear
Series B Step-wise
Series C Fixed
Series D Variable
Series E Mixed
Explanation:
a) Data and Analysis:
Volume (Units) Series A Series B Series C Series D Series E
0 $ 0 $ 2,400 $ 6,400 $ 0 $ 3,200
400 6,700 2,400 6,400 4,160 3,800
800 7,370 3,400 6,400 8,320 4,400
1,200 8,040 3,400 6,400 12,480 5,000
1,600 9,157 4,400 6,400 16,640 5,600
2,000 10,720 4,400 6,400 20,800 6,200
2,400 15,075 5,400 6,400 24,960 6,800
b) Further Explanation:
Fixed cost: Series C costs remain fixed no matter the quantity produced.
Variable cost: Series D costs are completely variable, with a unit variable cost of $10.40.
Mixed cost: Series E costs are mixed, with a fixed cost of $3,200 and a variable cost per unit of $1.50.
Step-wise cost: Series B costs increase like a staircase. They remain fixed within a relevant range but increase after the range is exceeded.
Curvilinear cost: Series A costs are curvilinear or nonlinear, and increases irregularly or inconsistently as the total output increases.
Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in thousands) 2021 2022 2023 Subscription revenue recognized (earned) $ 350 $ 360 $ 320 Subscription payments received in cash 390 340 360 The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscriptions being reported for tax purposes in the year received, but reported in the income statement in later years when the performance obligation is satisfied. The income tax rate is 25% each year. Times-Roman anticipates profitable operations in the future. Required: 1. What is the balance sheet account that gives rise to a temporary difference in this situation
Answer: Unearned subscription revenue.
Explanation:
Tax is made on a cash basis which means that a transaction is eligible for taxation once cash has been paid for it. Businesses however have to use the Accrual basis which only record transactions in the period that they have been incurred.
In this scenario, there is more subscription payment in cash than the company recognized which means that the company has not yet delivered the service they were paid for and so could not recognize the subscriptions. They will however be taxed on those amounts because the cash has come in.
The account giving this temporary difference is therefore the Unearned Subscription Revenue account.
King Company issued bonds with a face amount of $1,600,000 in 2015. As of January 1, 2020, the balance in Discount on Bonds Payable is $4,800. At that time, King redeemed the bonds at 102. Assuming that no interest is payable, make the entry to record the redemption. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
Dr Bonds payable 1,600,000
Dr Loss on redemption of bonds 36,800
Cr Cash 1,632,000
Cr Discount on bonds payable 4,800
Explanation:
Loss/gain on redemption of bonds = carrying value - cash paid = ($1,600,000 - $4,800) - $1,632,000 = $1,595,200 - $1,632,000 = -$36,800 loss
A company purchased a computer system on January 2, 2018 for $1,600,000. The company used the straight-line depreciation method with an estimated useful life of 6 years and a residual value of $130,000. The company prepares financial statements at December 31 Assume the company decides to sell the computer system on July 1, 2020 for $1,000,000 Which of the following statements about the journal entry (or entries) required on July 1 is not correct?
A) The Equipment asset account must be credited for $1,600,000 to record the sale.
B) The loss on the sale is $12,500.
C) Accumulated Depreciation is debited for $612,500 in the entry to record the sale.
D) The depreciation expense must be recorded for 6 months, January 1 to July 1.
Answer:
B. Loss on sale is $12,500
Explanation:
The equipment purchase on 1st January 2018. The equipment is sold of 1st July 2020. The duration for accumulated depreciation is 2.5 years. Using straight line method the depreciation will be:
[ 1,600,000 - 130,000 ] / 8 years * 2.5 years = 612,500
The book value for the equipment is 1,600,000 - 612,500 = 987,500
The equipment is sold for 1,000,000
There is gain on disposal of 12,500.