Answer:
Total assets and total equity decrease by $2,400
Explanation:
The journal entry to record the sales return is
Sales return Dr $5,800
To account receivable $5,800
(being the sales return is recorded)
Inventory Dr $3,400
To cost of goods sold $3,400
(Being the inventory is recorded)
So as we can see that total assets and total equity decreased by
= $5,800 - $3,400
= $2,400
Holling Inc. uses the weighted-average method in its process costing. The following data concern the company’s Mixing Department for the month of December. Materials Conversion Work in process, December 1 $ 8,130 $ 9,128 Cost added to production in the Mixing Department during December $ 226,500 $ 284,232 Equivalent units of production for December 9,900 9,400 Required: Compute the cost per equivalent unit for materials and conversion for the Mixing Department in December. (Round your answers to 2 decimal places.)
Answer:
Statement of Cost per equivalent unit
Particulars Materials Conversion
Cost of beginning work in process $8,130 $9,128
Add: Costs added during the month $226,500 $284,232
Total cost A $234,630 $293,360
Number of equivalent units B 9,900 9,400
Cost per equivalent unit (A/B) $23.70 $31.21
The Federal Open Market Committee decides that it must increase the money supply by $50. Committee members tell you the reserve ratio is 0.2. They ask you what directive they should give to the open market desk. You tell them, being as specific as possible, using the money multiplier.
The Fed should _____________$ worth of government bonds.
Answer and Explanation:
As we know that
Multiplier Effect = 1 ÷ Reserve Ratio
So,
Reserve ratio = 1 ÷ 0.2
= 5
Now this means that $1 million deposit result into increased by $5 million in the overall money supply
So the money supply should rise by $50 and it should be $10 of the government securities
Alternative Production Procedures and Operating Leverage Assume Sharpie, a brand of Newell Brands, is planning to introduce a new executive pen that can be manufactured using either a capital-intensive method or a labor-intensive method. The predicted manufacturing costs for each method are as follows: Capital Intensive Labor Intensive Direct materials per unit $ 10.00 $ 12.00 Direct labor per unit $ 4.00 $ 12.00 Variable manufacturing overhead per unit $ 5.00 $ 2.00 Fixed manufacturing overhead per year $ 1,800,000 $ 500,000 Sharpies market research department has recommended an introductory unit sales price of $100. The incremental selling costs are predicted to be $250,000 per year, plus $4 per unit sold. (a) Determine the annual break-even point in units if Sharpie uses the: Note: Round both answers UP to the nearest whole number.
Answer:
For Capital Incentive manufacturing method = 26,623 Units
For Labor Incentive manufacturing method = 10,714 Units
Explanation:
We are asked to find out the annual break - even point in units if Sharpie uses the Capital Intensive Method and Labour intensive Method.
Solution:
1. For Capital Intensive Method:
Direct Materials = 10
Direct Labor = 4
Variable MOH = 5
Variable Selling = 4
Total Variable Cost = T = 23
Selling Price = P = 100
Contribution Margin = M = P-T = 77
Fixed Overhead:
Fixed MOH = 1800000
Fixed Selling costs = 250000
Total Fixed Costs = 2050000
Break Even Point in Units = Total Fixed Cost / M = 26623
2. For Labor Intensive Method:
Direct Materials = 12
Direct Labor = 12
Variable MOH = 2
Variable Selling = 4
Total Variable Cost = T = 30
Selling Price = P = 100
Contribution Margin = M = P-T = 70
Fixed Overhead:
Fixed MOH = 500000
Fixed Selling costs = 250000
Total Fixed Costs = 750000
Break Even Point in Units = Total Fixed Cost / M = 10714
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm’s direct labor includes salaries of consultants that work at the client’s job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients. Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 50,000 direct labor-hours would be required for the period’s estimated level of client service. The company also estimated $225,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm’s actual overhead cost for the year was $238,100 and its actual total direct labor was 53,100 hours. Required: 1. Compute the predetermined overhead rate. 2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available with respect to this job: Direct materials $ 44,850 Direct labor cost $ 28,200 Direct labor hours worked 200 Compute the total job cost for the Xavier Company engagement.
Answer and Explanation:
The computation is shown below;
1. The predetermined overhead rate is
= $0.50 + ($225,000 ÷ 50,000 direct labor hours)
= $.50 + $4.5
= $5
2. The total job cost is
= $44,850 + $28,200 + 200 × $5
= $44,850 + $28,200 + $1,000
= $74,050
So in this way these can be calculated
Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows:
Q1 Q2 Q3 Q4
Sales $165 $185 $205 $235
a. Sales for the first quarter of the year after this one are projected at $180 million. Accounts receivable at the beginning of the year were $71 million. Wildcat has a 45-day collection period.
b. Wildcat's purchases from suppliers in a quarter are equal to 45 percent of the next quarter's forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 20 percent of sales. Interest and dividends are $16 million per quarter.
c. Wildcat plans a major capital outlay in the second quarter of $99 million. Finally, the company started the year with a $78 million cash balance and wishes to maintain a $40 million minimum balance.
Complete the following cash budget for Wildcat, Inc.
WILDCAT, INC. Cash Budget (in millions)
Q1 Q2 Q3 Q4
Beginning cash balance $78.00 $ $ $
Net cash inflow
Ending cash balance $ $ $ $
Minimum cash balance -30.00 -30.00 -30.0 -30.00
Cumulative surplus (deficit) $ $ $ $
Answer:
Wildcat, Inc.
WILDCAT, INC. Cash Budget (in millions)
Q1 Q2 Q3 Q4
Beginning cash balance $78.00 $115.90 $48.45 $83.40
Net cash inflow 37.90 -67.45 34.95 71.05
Ending cash balance $115.90 $48.45 $83.40 $154.45
Minimum cash balance -40.00 -40.00 -40.00 -40.00
Cumulative surplus (deficit) $75.90 $8.45 $43.40 $114.45
Explanation:
a) Data and Calculations:
Q1 Q2 Q3 Q4 Q1
Sales (in millions) $165 $185 $205 $235 $180
Accounts receivable at beginning of the year = $71 million
Collection period = 45 days = 50% in each quarter and 50% in the next
Purchases for the quarter = 45% of next quarter's forecast sales
Payment period = 36 days
Wages, taxes, etc. = 20% of sales
Q1 Q2 Q3 Q4 Q1
Sales (in millions) $165 $185 $205 $235 $180
Cash collections:
50% quarter of sales 82.50 92.50 102.50 117.50
50% next quarter 71.00 82.50 92.50 102.50
Total cash collections 153.50 175.00 195.00 220.00
Purchases 83.25 92.25 105.75 81.00
Cash Payments:
80% month of purchase 66.60 73.80 84.60 64.80
20% following purchase 16.65 18.45 21.15
Total purchases payments 66.60 90.45 103.05 85.95
Wages, taxe, etc. 33 37 41 47
Interest and dividends 16 16 16 16
Capital outlay 99
Total cash disbursements 115.60 242.45 160.05 148.95
Net cash inflow 37.90 -67.45 34.95 71.05
Cash, beginning = $78 million
Desired minimum balance = $40 million
Explain five planning steps that are required to have a good business communication. Take any of the business as example and implement those five planning steps on it, as answer
The correct answer to this open question is the following.
Although you did not include any specific context or references, we can say the following.
The five planning steps that are required to have good business communication are the following.
1.- Establish attainable and specific goals. You can use the SMART formula.
2.- Identify who ypur audience is and where they are so you can be effective in sending your messages.
3.- Prepare the right strategy to implement your program. Have your communication department on the same page.
4.- Prepare the proper budget so you can run your program.
5.- Perform your program, monitor it, and evaluate your results.
For instance, Walmart is a corporation that makes communication a priority and invests time and money to run communications programs so every employee in the corporation is on the same page and can perform their jobs effectively, eliminate rumors, and be productive.
When a journal entry is made in a standard cost system to record the liability for direct manufacturing labor costs, the difference between the debits to the work in process accounts and the credits to the payroll payable is:___________a. only the price variance.b. only the efficiency variance.c. the difference between the actual costs incurred and the budgeted costs.d. the price and the efficiency labor variances.
Answer:
When a journal entry is made in a standard cost system to record the liability for direct manufacturing labor costs, the difference between the debits to the work in process accounts and the credits to the payroll payable is:___________
the price and the efficiency labor variances.
Explanation:
The total direct labor cost variance is the difference between the standard cost for actual production and the actual cost in production. It is divided into two main variances. They are the Labor Rate (price) Variance and the Labor Efficiency Variance. Using standard cost system, the cost debited to the work in process account is based on standard cost, while the corresponding credit entry in the payroll payable is based on the actual cost. The labor variance is, therefore, the price and efficiency labor variances.
A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $7 per hour and capital is rented at $11 per hour. If the marginal product of labor is 65 units of output per hour and the marginal product of capital is 55 units of output per hour, should the firm increase, decrease, or leave unchanged the amount of capital used in its production process
Answer:
leave unchanged
Explanation:
because it doe snore jobs then the other one
explain why it is important for marketers to be able to measure the effectiveness of marketing activities.
A partner invests into a partnership a building with an original cost of $180,000 and accumulated depreciation of $80,000. This building has a $140,000 fair value. As a result of the investment, the partner's capital account will be credited for Group of answer choices $140,000. $100,000. $180,000. $240,000.
Answer:
$140,000
Explanation:
For accounting and legal purposes, the contribution of a partner to a partnership business is recorded using the fair value of the asset contributed.
It therefore means that;
Capital account = Fair value of the asset (I.e partner's investment in a partnership business is based on fair value of such investment)
With regards to the foregoing, the partner's capital account will be credited with $140,000
Dianne Ruth withdrew $8,000 from her educational savings account and used $6,000 to pay for qualified higher education expenses. The remaining balance of $2,000 was used to purchase clothes. On the date of the distribution, her educational savings account had $25,000 balance including $20,000 she had contributed.
How much of the $8,000 is tax free?
Answer:
$7,600
Explanation:
Calculation to determine How much of the $8,000 is tax free
Step 1 is to calculate the % using this formula
%=Savings ratio ROC Contributed/Total balance
Let plug in the formula
%=$20,000/$25,000
%= .80*100
%=80%
Step 2 is to calculate the ROC tax free using this formula
ROC tax free=% x Distribution
Let plug in the formula
ROC tax free=.80x 8000
ROC tax free=$6,400
Step 3 is to Contained earnings in distribution using this formula
Contained earnings in distribution=Distribution - ROC tax free
Let plug in the formula
Contained earnings in distribution=$8,000-$6,400
Contained earnings in distribution= $1,600
Step 4 is to calculate Excludable earning using this formula
Excludable earning=(Qualified exp/distribution ) x Earning contained
Let plug in the formula
Excludable earning=($6,000/$8,000) x $1,600
Excludable earning= $1,20/
Step 5 is to calculate the Taxable amount using this formula
Taxable =Earnings - Excludable
Let plug in the formula
Taxable=$1,600-$1,200
Taxable =$400
Now let determine the Tax free using this formula
Tax free = Distribution- Taxable
Let plug in the formula
Tax free=$8,000- $400
Tax free=$7,600
Therefore How much of the $8,000 is tax free will be $7,600
A certain smelting plant operates 24 hours per day, with three shifts of 200 workers per shift. Due to a flu epidemic, 1/4 of the workers on the first shift, 10 percent of the workers on the second shift, and 100 of the workers on the third shift are unable to work on a given day. If each worker and each shift has the same productivity, what is the approximate percent decrease in productivity due to the flu epidemic?
Answer:
35
Explanation:
12/1-34÷1 I just need points
A bank has $132,000 in excess reserves and the required reserve ratio is 11 percent. This means the bank could have __________ in checkable deposit liabilities and __________ in (total) reserves. Group of answer choices $5,000,000; $5,869,000 $1,000,000; $110,000 $4,000,000; $590,000 $4,700,000; $869,000
Answer:
$14,520 in check-able deposit liabilities and $117,480 in total reserves.
Explanation:
The bank has $132,000 in excess reserves and excess reserves ratio is 11%. The bank will have total reserves of $132,000 * 89% = $117,480. The total liabilities will be equivalent to the excess reserves which is $14,520 [$132,000 - $117,480].
On the first day of its fiscal year, Chin Company issued $26,200,000 of five-year, 6% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 7%, resulting in Chin receiving cash of $25,110,559.
a. Journalize the entries to record the following:
1. Issuance of the bonds.
2. First semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. Round your answer to the nearest dollar.
3. Second semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. Round your answer to the nearest dollar.
b. Determine the amount of the bond interest expense for the first year.
c. Explain why the company was able to issue the bonds for only $9,594,415 rather than for the face amount of $10,000,000.
Solution :
a. 1). Preparing the journal entry to record the issuance of bonds.
Date Account title Debit ($) Credit ($)
Jan 1 Cash 25,110,559
Discount on bonds payable 1,089,441
Bonds payable 26,200,000
a. 2). Preparing the journal entry to record the first semi annual interest payment.
Date Account title Debit ($) Credit ($)
Jun 30 Interest expense 390559
Discount on the bonds payable 108,945
Cash ($26,200,000 x 3%) 786,000
a.3). Preparing the journal entry to record the second semi-annually interest payment.
Date Account title Debit ($) Credit ($)
Dec 31 Interest expense 390,559
Discount on bonds payable 108,945
Cash 786,000
b). Determining the amount of bond interest expense for the 1st year.
Particulars Amount ($)
Interest expense ( 786,000 + 786,000 ) 1,572,000
Add : Discount amortized (108,945 + 108,945) 217,890
Interest expense (for the 1st year) 1,789,890
c). The company issued the bonds having face value of $26,200,000 for $25,110,559. That is the bonds are issued at a discount for $1,089,441. The bonds are issued at a discount as the market interest of the bonds are higher than the bonds coupon rate.
On July 1, 20X1, Georgia Inc., which uses UOP depreciation, purchases a machine for $16,000; the company estimates that the machine will have a useful life of 15,000 machine hours and a salvage value of $1,000. You are given the following usage data: 20X1 3,000 hours 20X2 2,200 hours 20X3 6,170 hours 20X4 5,300 hours Depreciation expense on the machine for 20X1 is:
a. $1,600
b. $3,000
c. $1,500
d. $3,200
e. $16,000
Answer:
Annual depreciation= $3,000
Explanation:
Giving the following information:
Purchase price= $16,000
Useful life= 15,000 machine hours
Salvage value= $1,000
Machine hours 20X1= 3,000
To calculate the depreciation expense for 20X1, we need to use the following formula:
Annual depreciation= [(original cost - salvage value)/useful life of production in hours]*hours operated
Annual depreciation= [(16,000 - 1,000) / 15,000]* 3,000
Annual depreciation= $3,000
Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 75.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 75.0 when he fully retires, he will wants to have $2,552,589.00 in his retirement account. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be
During the current year, Rothchild, Inc., purchased two assets that are described as follows:
Heavy Equipment
Purchase price, $275,000.
Expected to be used for 10 years, with a residual value at the end of that time of $50,000.
Expenditures required to recondition the equipment and prepare it for use, $75,000.
Patent
Purchase price, $75,000.
Expected to be used for five years, with no value at the end of that time.
Rothchild depreciates heavy equipment by the declining-balance method at 150 percent of the straight-line rate. It amortizes intangible assets by the straight-line method. At the end of two years, because of changes in Rothchild's core business, it sold the patent to a competitor for $35,000.
a. Compute the amount of depreciation expense on the heavy equipment for each of the first three years of the asset's life.(Omit the "$" sign in your response.)
Year 1 Year 2 Year 3
Depreciation expense $ $ $
b. Compute the amount of amortization on the patent for each of the two years it was owned by Rothchild.(Omit the "$" sign in your response.)
Year 1 Year 2
Amount of amortization $ $
c-1. Prepare the plant and intangible assets section of Rothchild's balance sheet at the end of the first and second years.(Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)
Year 1
Accumulated amortization Equipment Accumulated depreciation Purchase price Patent $
Equipment Patent Less: Accumulated depreciation Accumulated amortization Add: Accumulated depreciation $
Equipment Patent Accumulated amortization Purchase price Accumulated depreciation
Total plant and intangible assets $
Year 2
Accumulated depreciation Accumulated amortization Equipment Purchase price Patent $
Accumulated amortization Patent Add: Accumulated depreciation Equipment Less: Accumulated depreciation
Total plant assets $
c-2. Calculate the amount of the gain or loss on the patent that would be included in the second year's income statement.(Input the amount as positive values. Omit the "$" sign in your response.)
Gain Losson sale by $
Answer:
Rothschild, Inc.
a. Depreciation expense on the Heavy Equipment for first three years:
Depreciation expense:
Year 1 105,000
Year 2 73,500
Year 3 51,450
b. Amortization on the patent for each of the two years:
Year 1 = 15,000
Year 2 = 15,000
c. Rothschild's Balance Sheet at the end of the first and second years:
Year 1
Equipment $350,000
less accumulated depreciation 105,000 $245,000
Patent $75,000
less accumulated amortization 15,000 $60,000
Total plant and intangible assets $305,000
Year 2
Equipment $350,000
less accumulated depreciation 178,500 $171,500
Patent $75,000
less accumulated amortization 30,000 $45,000
Total plant and intangible assets $216,500
c.2. Loss from sale of patent = 10,000
Explanation:
a) Data and Calculations:
Heavy Equipment Patent
Purchase price $275,000 $75,000
Expenditures to recondition for use 75,000 0
Residual value at end of lifetime (50,000) 0
Depreciable amount $300,000 $75,000
Estimated useful life 10 years 5 years
Depreciation methods Declining-bal. Straight-line
Annual depreciation of patent $15,000 ($75,000/5)
Depreciation rate 30% 20% (100%/5)
Sales proceeds at end of year 2 $35,000
a. Depreciation expense on the Heavy Equipment for first three years:
Depreciation expense:
Year 1 $105,000 ($350,000 * 30%)
Year 2 $73,500 ($245,000 * 30%)
Year 3 $51,450 ($171,500 * 30%)
b. Amortization on the patent for each of the two years:
Year 1 = $15,000
Year 2 = $15,000
c. Rothschild's Balance Sheet at the end of the first and second years:
Year 1
Equipment $350,000
less accumulated depreciation 105,000 $245,000
Patent $75,000
less accumulated amortization 15,000 $60,000
Total plant and intangible assets $305,000
Year 2
Equipment $350,000
less accumulated depreciation 178,500 $171,500
Patent $75,000
less accumulated amortization 30,000 $45,000
Total plant and intangible assets $216,500
c.2. Loss from sale of patent = $10,000 ($45,000 - $35,000)
Distribution network is not required for
product.
O Standardised
O Durable
O Unstandardised
O Perishable
Answer:
O Perishable
Explanation:
The distribution network required for the products that are standardised, durable and unstandardised that means for storage purpose
But in the case of the perishable goods, the goods that are not stored for the longer time that means it consumed immediately like milk, bread, eggs, etc
So as per the given option, the last option should be relevant
businesses do not maximise outputs from the given inputs
Answer:
Businesses that do not maximise outputs from the given inputs are inefficient, and probably have diseconomies of scale, the opposite of economies of scale, that ocurrs when output increases proportionally less than the inputs that are invested.
This situation arises as a result of an economic law, the law of diminishing retuns. According to this economic law, there is a point in the production process in which the use of additional units of input do not result in a proportional yield, in other words, when a business presents diminishing returns, the more inputs it adds, the less output grows in proportion to the inputs.
1. Jupiter Explorers has $9,800 in sales. The profit margin is 5%. There are 4,500 shares of stock outstanding. The market price per share is $1.90.
What is the price-earnings ratio?
2. A firm has a return on equity of 18%. The total asset turnover is 1.7 and the profit margin is 6%. The total equity is $7,200.
What is the amount of the net income?
Answer:
17.43
132.19
Explanation:
Net profit margin is an example of a profitability ratio. It measures he ability of a firm to earn a profit from its assets
Net profit margin = Net income / Revenue
0.05 = x / 9800
net income = 490
net income per share = 490 / 4500 = 0.109
p/e = 1.9 / 0.109 = 17.43
Using the Dupont formula, ROE can be determined using:
ROE = Net profit margin x asset turnover x financial leverage
ROE = (Net income / Sales) x (Sales/Total Assets) x (total asset / common equity)
Mark, an HR Manager at Pyramid Inc., is responsible for the HR planning process in his organization. He has reviewed the organization's strategic plans. Which of the following is most likely to be Mark's next step in the planning process?
a. Develop HR staffing plans and actions
b. Compile HR planning forecasts
c. Implement HR staffing plans and actions
d. Assess external and internal workforce
Answer: d. Assess external and internal workforce
Explanation:
There are four steps involved in the HR planning process in an organization. The first step is the one that Mark just completed of reviewing the organization's strategic plans.
The next thing to do is the assess both the internal and external workforce of the organization so as to better understand them. After this step he would have to compile HR planning forecasts and then design HR staffing plans based on the strategic goals of the organization.
Interest earnings of 4 percent with a $450 minimum balance; average monthly balance, $600; monthly service charge of $20 for falling below the minimum balance, which occurs five times a year (no interest earned in these months). (Do not round intermediate calculations. Round your answer to 2 decimal places. Input the amount as a positive value.)
Answer:
$86
Explanation:
Missing word "What could be the net annual cost"
Monthly fee = $20
Interest rate = 4% = 0.04
Average monthly balance = $600
Net annual cost = $20*5 - 0.04*$600*7/12
Net annual cost = $100 - $14
Net annual cost = $86
So, the net annual cost of this account is $86.
Which of the following statements about a partnership is correct? Group of answer choices The personal assets of a partner are included in the partnership accounting records. A partnership is not required to file an information tax return. Each partner's share of income is taxable to the partnership. A partnership represents an accounting entity for financial reporting purposes.
Answer:
do you have a picture I can help you
Wildhorse, Inc. had net sales in 2020 of $1,502,400. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $221,100 debit, and Allowance for Doubtful Accounts $3,000 credit. If Wildhorse estimates that 8% of its receivables will prove to be uncollectible.
Required:
Prepare the December 31, 2017, journal entry to record bad debt expense.
Answer and Explanation:
The journal entry is shown below:
Bad debt expense Dr $14,668 ($221,100 × 8% - $3,000)
To Allowance for doubtful debts $14,668
(Being bad debt expense is recorded)
Here the bad debt expense is debited as it increased the expense and credited the allowance for doubtful debt as it decreased the assets
You sold a put contract on EDF stock at an option price of $.50 and an exercise price of $21. Today, EDF stock is selling for $20 a share and your option position was closed out. Ignoring transaction costs and taxes, what is your total profit
Answer:
-$50
Explanation:
Calculation to determine your total profit on this investment
Total profit = 1 × 100 × ($.50 - $21+ $20)
Total profit = 100×(-$0.5)
Total profit = -$50
Therefore your total profit on this investment is -$50
Lottery. Your dreams of becoming rich have just come true. You have won the State of Tranquility's Lottery. The State offers you two payment plans for the $6 comma 000 comma 000 advertised jackpot. You can take annual payments of $150 comma 000 at the end of the year for the next 40 years or $1 comma 466 comma 858 today. a. If your investment rate over the next 40 years is 11%, which payoff will you choose? b. If your investment rate over the next 40 years is 9%, which payoff will you choose? c. At what investment rate will the annuity stream of $150 comma 000 be the same as the lump-sum payment of $1 comma 466 comma 858?
Answer:
A=1466858
B=$150000
C=10%
Explanation:
A)
Present value of $150000 at 11% for 40 years;
Using excel PV function: PV(11%,40,-150000) = $1342657.623
Therefore, 1466858 should be selected.
B)
Present value of $150000 at 9% for 40 years
= PV(9%,40,-150000) = $1613604.03
Therefore payment of $150000 should be selected
C)
Using excel rate function: RATE(40,-150000,1466858)
= 10%
The following standards have been established for a raw material used to make product O84: Standard quantity of the material per unit of output 8.6 meters Standard price of the material $ 19.80 per meter The following data pertain to a recent month's operations: Actual material purchased 4,900 meters Actual cost of material purchased $ 101,430 Actual material used in production 4,600 meters Actual output 650 units of product O84 The direct materials purchases variance is computed when the materials are purchased. Required:
Answer:
Results are below.
Explanation:
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (19.8 - 20.7)*4,900
Direct material price variance= $4,410 unfavorable
Actual price= 101,430/4,900= $20.7
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (8.6*650 - 4,600)*19.8
Direct material quantity variance= $19,602 favorable
Interest income has been recorded during the year as interest payments have been received by Parnell. The Oracle bonds are currently valued on the financial market at $205 million.
Required:
Prepare the appropriate adjusting entry, if one is necessary.
Answer:
Interest payments (Dr.) $20.5 million
Interest Interest Income (Cr.) $20.5 million
Explanation:
Adjusting entries are prepared when there is change in the transaction after it has been recorded or if the entry is recorded incorrectly. The change in the transaction may impact the financial statements so adjusting entries are prepared which correct the impact of transaction.
Gilbert is an independent consultant who helps organizations select the right accounting software for their needs. After evaluating a local nonprofit organization, Gilbert recommended an accounting software package that he believes meets specifications, secures documents, and satisfies user requirements. Gilbert did not tell his client that he owns a 25% share in the business that developed the software, and that he will benefit if the organization decides to purchase the software he recommends. Which principle of the Software Engineering Code of Ethics has Gilbert violated?
Answer:
The principle of the Software Engineering Code of Ethics that Gilbert violated is:
Judgement (as related to full disclosure of personal involvement).
Explanation:
Gilbert is required by the Judgement Principle to "disclose those conflicts of interest that cannot reasonably be avoided or escaped." Since Gilbert professionally believes that the software meets specifications, secures documents, and satisfies user requirements, it is not quite apparent if he violated any principle. However, he could have informed his client of his personal interest in the software and also presented other software packages of other companies from which the client could make its independent choice.
The principle of the Software Engineering Code of Ethics that Gilbert violated is Judgement.
The following information should be considered:
Gilbert is required by the Judgement Principle to disclose those conflicts of interest that cannot reasonably be avoided.Since Gilbert professionally believes that the software meets specifications, documents are safe, and satisfies user requirements, it is not quite apparent if he violated any principle. However, he could have informed his client of his personal interest in the software and also presented other software packages of other companies from which the client could make its independent choice.
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Georgina consumes only grapefruits and pineapples. Her utility function is U (x comma y )equals x to the power of 0.8 end exponent y to the power of 0.2 end exponent, where x is the number of grapefruits consumed and y is the number of pineapples consumed. Georgina’s income is $105, and the prices of grapefruits and pineapples are $4 and $3, respectively. How many grapefruits will she consume?
Answer:
21
Explanation:
Given that:
The utility function U(x, y) = [tex]x^{0.8} y^{0.2}[/tex]
The budget line income is:
105=4x +3y
The equation MRTS is:
[tex]\dfrac{MU_x}{MU_y } =\dfrac{ Px}{Py}[/tex]
where;
[tex]MU_x(x,y) = 0.8 \times x^{0.8-1}\times y^{0.2} \\ \\ \implies 0.8 \times x^{-0.2}\times y^{0.2}[/tex]
[tex]MU_y(x,y) = 0.2 \times x^{0.8}\times y^{0.2-1} \\ \\ \implies 0.8 \times x^{0.8}\times y^{-0.8}[/tex]
and:
[tex]P_y= 3[/tex]
[tex]P_x = 4[/tex]
∴
Using the equation MRTS:
[tex]\dfrac{MU_x}{MU_y } =\dfrac{ Px}{Py}[/tex]
[tex]\dfrac{ 0.8 \times x^{-0.2}\times y^{0.2} }{0.8 \times x^{0.8}\times y^{-0.8}} = \dfrac{4}{3}[/tex]
[tex]\dfrac{4y }{x} = \dfrac{4}{3}[/tex]
4x = 12y
x = 12y/4
x = 3y
Replacing the value of x into the budget line income, we have:
105 = 4x + 3y
105 = 4(3y) + 3y
105 = 12y + 3y
105 = 15y
y = 105/15
y = 7
Then, from x = 3y
x = 3(7)
x = 21
Thus, she will consume 21 gapefruits