Answer:
If I were an advisor at the alternative energy summit I would support investing in solar energy.
Explanation:
The reasons are various:
- The cost of implementation is much cheaper than that of wind turbines or hydrogenerators, which is why it is more economically profitable.
- It can be implemented in any area of the world or in any place where you find sunlight (such as areas of the Middle East), regardless of the hours of daily sunlight (The sun is an inexhaustible source of energy).
- It is a clean energy, since it produces energy without expense or damage to nature.
- In addition to this, the useful life of photovoltaic panels is 20 years, a fairly long time with respect to the amount of energy generated.
Answer:
If I was an advisor, I would choose to support Solar energy. The cost of implementing such a thing is cheaper than the cost of implementing wind turbines or hydrogenerators. With a lower cost, it makes it more economically profitable. It can be installed in any place where you can find sunlight. These can be used regardless of how many hours of sunlight you have daily.
It is a clean energy source due to the fact that it produces energy without expense or damage to nature. The usual lifespan of photovoltaic panels is 20 years. Which is a fairly long time considering how much energy can be generated from the panels.
Why choose solar energy? Solar energy is one of the most abundant sources of energy due to the fact that it relies on the sun in order to produce energy. Solar energy is cheaper than most fossil fuels, the cheapest option for fossil fuels is natural gas which costs between 4.2 and 7.8 cents per kWh while solar energy costs 4.3 cents per kWh. It is also quicker to install the solar panels than it is to set up any of the other sources of energy. Considering that it is also a clean source of renewable energy that certainly helps the cause and lowers the effects of global warming.
Explanation:
Which of the following pairs are characteristics of pricesetters? A. Less competition and target costing B. Lack of product uniqueness and heavy competition C. Costplus pricing and less competition D. Less competition and lack of product uniqueness
Answer:
C. costplus pricing and less competition
A middleman is a person who
A) specializes in arranging trades and selling, guaranteeing, and servicing items traded.
B) acts as a middle person between the top management of a business firm and the hourly employees who actually produce the goods and services.
C) adds to the seller's expense and the buyer's buying price without providing a service to either.
D) levies a tax on private sector activity and uses the funds to support government activities.
Answer:
A
Explanation:
A middleman is a link between a producer and a consumer. Middlemen includes wholesalers and retailers
Some of the functions of middlemen include
1. They provide information to the producers about consumers' tastes
2. they market producers goods and services
3. Middlemen render financial help to manufacturers.
Benson, Inc., has sales of $38,530, costs of $12,750, depreciation expense of $2,550, and interest expense of $1,850. The tax rate is 21%. What is the operating cash flow, or OCF?
Answer:
$21,290.1
Explanation:
The operating cash flow is computed as seen below;
Sales. $38,530
Less: Costs ($12,750)
$25,780
Less:depreciation ($2,550)
EBIT. $23,230
Less: Interest expense ($1,850)
$21,380
Less : 21% taxes ($4,489.9)
Earnings after taxes $16,890.1
Operating cash flow = EBIT + Depreciation - Taxes
= $23,230 + $2,550 - $4,489.9
= $21,290.1
MacKenzie Company sold $680 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 4.0% service charge for sales on its credit cards. MacKenzie electronically remits the credit card sales receipts to the credit card company and receives payment in approximately 5 days. The journal entry to record this sale transaction would be:_______.a. Debit Cash of $680 and credit Sales $680.b. Debit Cash of $680 and credit Accounts Receivable Regional $680.c. Debit Accounts Receivable Regional $652.8; debit Credit Card Expense $27.2 and credit Sales $680.d. Debit Cash $652.8; debit Credit Card Expense $27.2 and credit Sales $680.e. Debit Cash $652.8 and credit Sales $652.8.
Answer: d. Debit Cash $652.8; debit Credit Card Expense $27.2 and credit Sales $680
Explanation:
From the question we are informed that MacKenzie Company sold $680 of merchandise to a customer who used a Regional Bank credit card and that Regional Bank deducts a 4.0% service charge for sales on its credit cards.
We.are further told that MacKenzie electronically remits the credit card sales receipts to the credit card company and receives payment in approximately 5 days.
For the recording in the journal entry, it should be noted that there will be a card expense of (4% × $680) = $27.2 who will be debited, therefore cash to be debited will be: ($680 - $27.2 = $652.8) and there will be sales of $680 which will be credited.
Therefore, the answer is option d.
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 $ 18,300,000 Net operating income $ 6,300,000 Average operating assets $ 36,400,000 Required: 1. Compute the margin. (Round your answer to 2 decimal places.) 2. Compute the turnover. (Round your answer to 2 decimal places.) 3. Compute the return on investment (ROI).
Answer:
1. 34.43%
2. 0.50
3. 17.31%
Explanation:
Alyeska services company has a sale of $18,300,000
The net operating income is $6,300,000
The average operating assets is $36,400,000
(1) The margin can be calculated as follows
Margin= net operating income/sales ×100
= $6,300,000/18,300,000×100
= 0.34426×100
= 34.43%
(2) The assets turnover ratio can be calculated as follows
= Sales/Average operating assets
= $18,300,000/$36,400,000
= 0.50
(3) The Return on investment ROI can be calculated as follows
= Net operating income/Average Operating assets × 100
= $6,300,000/$36,400,000 × 100
= 0.17307×100
= 17.31%
Hence the margin, assets turnover ratio and ROI are 34.43%, 0.50 and 17.31% respectively
Kirby, Inc. records a sale with a gross margin of $1,400. Which one of the following statements correctly describes the effect of such a sale on its balance sheet?
a. Common stock increases by $1,400
b. The sales revenue account increases by $1,400
c. The gross margin account increases by $1,400
d. The retained earnings account increases by $1,400
Answer:
Correct Answer:
d. The retained earnings account increases by $1,400
Explanation:
Gross margin in sales is the sales revenue a company retains after incurring the direct costs associated with producing the goods it sells, and the services it provides. For the Kirby Inc with gross margin of $1400, it shows that, its sales revenue retained after expenses is $1,400.
During February, assets increased by 87000 and liabilities increased by 31000 . Equity must have:___________.
a. increased by 56000
b. increased by 118000
c. decreased by 56000
d. decreased by 118000
Answer:
a. increased by $56,000
Explanation:
General accounting equation ;
Assets = Liabilities + Owners equity
Owners equity = Assets - Liabilities.
Therefore,
Increase in stockholder's equity
= $87,000 - $31,000
= $56,000
Colby & Company bonds pay semi-annual interest of $50. They mature in 15 years and have a par value of $1,000. The market rate of interest is 8%. The market value of Colby Bonds is: (round to nearest dollar)
Answer:
Price of bond = $ 1,172.92
Explanation:
The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond for Colby & Company can be worked out as follows:
Step 1
PV of interest payments
Semi annul interest payment = 50
Semi-annual yield = 8%/2 = 4% per six months
Total period to maturity (in months)
= (2 × 15) = 30 periods
PV of interest =
50 × (1- (1+0.04^(-30)/0.04)= 864.60
Step 2
PV of Redemption Value
= 1,000 × (1.04)^(-30) =308.318
Step 3:
Price of bond
= 864.60 + 308.318 = $1,172.92
Price of bond = $ 1,172.92
. The disadvantages of a centralized organizational structure include A. lengthening response times and discouraging lower-level managers and rank-and-file employees from exercising initiative. B. a loss of top management control. C. putting too much decision making authority in the hands of lower-level company personnel. D. making it hard to fix accountability when things do not go well and putting the organization at risk when bad decisions are made. E. impeding cross-unit coordination and capture of strategic fits.
Answer:
A. lengthening response times and discouraging lower-level managers and rank-and-file employees from exercising initiative.
Explanation:
An organization with a centralized structure is one whose decision-making process is restricted to professionals at the top of the hierarchy, that is, only the leader of the organization is the one who will make the decisions inherent to the business.
This type of structure usually exists in organizations whose businesses are less flexible and need greater control and coordination of organizational processes.
Therefore, there are some disadvantages of centralization, one of which is described in the alternative A: lengthening response times and discouraging low-level managers and ordinary employees from exercising the initiative.
Because as the leader may be far from the problem to be decided, it will take more time to make the necessary judgments for decision making. Employees are also less encouraged to contribute with innovative solutions, since the decision-making process is only in the hands of the leader of the company.
Globus Autos sells a single product. 8,300 units were sold resulting in $84,000 of sales revenue, $24,000 of variable costs, and $18,000 of fixed costs. If Globus reduces the selling price by $1.10 per unit, the new margin of safety is: (Round any intermedary calculations to the nearest cent.) A. 2,872 units B. 8,300 units C. 5,364 units D. 5,428 units
Answer:
Margin of safety= 5,364 units
Explanation:
First, we need to calculate the break-even point in units:
Selling price= 84,000/8,300= $10.12
Unitary variable cost= $2.89
New selling price= 10.12 - 1.1= $9.02
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 18,000 / (9.02 - 2.89)
Break-even point in units= 2,936 units
Now, the margin of safety:
Margin of safety= (current sales level - break-even point)
Margin of safety= 8,300 - 2,936
Margin of safety= 5,364 units
A rights offering Question 16 options: a) is the least expensive way to raise capital. b) gives the firm a built-in market for new securities. c) will increase the shareholder's total valuation. d) will likely lead to considerably higher distribution costs.
Answer: b. gives the firm a built-in market for new securities.
Explanation:
Rights offering are issued by companies when such companies wants to generate additional capital. This may be necessary when such company wants to meet its financial obligations and therefore need extra capital.
A rights offering gives the firm a built-in market for new securities as the security holder are already aware of the company and just buys additional securities.
Hogan Inc. reported 2019 earnings per share of $3.26 and had no discontinued operations. In 2020, earnings per share on income from continuing operations was $2.99, and earnings per share on net income was $3.49. Do you consider this trend to be favorable? Why or why not?
Answer:
This trend is considered unfavorable
Explanation:
It is given that the firm earning per share in 2019 was $3.26 and had no discontinued operation. It means that earnings per share on income from continuing operation in 2019 was $3.26. In 2020, earning per share on income from continuing operation was $2.99 only. It evidences that earnings per share on income from continuing operations has declined by $0.47 (from $3.26 to $2.99) and so it (this trend) is considered unfavorable. We need to also understand that in 2020, earning per share on net income of $3.49 indicates that the firm has earned profit on the discontinued operation. It is not a regular activity to consider while analyzing firm profitability trend.
A given inventory item has a per-year holding cost of $500. One method of shipping this item is three days faster than the other, but it is $2.50 more per unit. Using the slower method would be __________ more expensive overall than using the faster method.
Answer: $1.61
Explanation:
From the question, we are informed that a given inventory item has a per-year holding cost of $500 and that one method of shipping this item is three days faster than the other, but it is $2.50 more per unit.
Using the slower method would be 1.61 more expensive overall than using the faster method. To do this, the holding cost has to be multiplied by speed differential. From the result gotten, we will now divide by 365 since 365 days make a year.
After the figure had been gotten, we will ow compare it to the actual difference of the shipping cost.
The Jennings Group reacquired 2 million of its shares at $50 per share as treasury stock. Last year, for the first time, Jennings sold 1 million treasury shares at $51 per share. If Jennings now sells the remaining 1 million treasury shares at $47 per share, by what amount will retained earnings decline
Answer:
-$2,000,000
Explanation:
Given the following :
Number of shares reacquired = 2 million
Price per share = $50
For the first time ;°
Number of shares sold = 1 million
Sales price per share = $51
Increase in Retained earnings : 1,000,000 × $(51 - 50) = 1,000,000 × $1 = $1, 000,000
Loss made from reacquizition:
Of the 2 million reacquired.
1,000,000 was sold at $47
Loss per share = ($50 - $47) = $3
Reduction in retained earning = (1,000,000 * $3) = - $3,000,000
Net total = $(1,000,000) - $3,000,000) = -$2,000,000
Decker Company assigns some of its patents to other enterprises under a variety of licensing agreements. In some instances advance royalties are received when the agreements are signed, and in others, royalties are remitted within 60 days after each license year-end. The following data are included in Decker’s December 31 balance sheet:
Year 1 Year 2
Royalties receivable $90,000 $85,000
Unearned royalties 60,000 40,000
During year 2 Decker received royalty remittances of $200,000. In its income statement for the year ended December 31, year 2, Decker should report royalty revenue of
A. $215,000
B. $220,000
C. $195,000
D. $225,000
Answer:
C. $195,000
Explanation:
Royalties Receivable as on 2016 $90,000
Add: Remittance Received $200,000
Less: Royalties Receivable as on 2015 $85,000
Total billed $205,000
Add: Unearned revenue - Recognized $60,000
Less: Unearned revenue- Deferred $70,000
Revenue for 2016 $195,000
Bramble Corp. purchased a delivery truck for $38,800 on January 1, 2019. The truck has an expected salvage value of $1,800, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 14,700 in 2019 and 12,900 in 2020. (a1) Calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)
Answer:
$0.37
Explanation:
Depreciable cost = cost of asset - salvage value
$38,800 - $1,800 = $37,000
Depreciable cost per mile = $37,000 / 100,000 = $0.37
________ is the model in which an effective leader makes desirable rewards available, clarifies how employees can achieve objectives, and provides them support in doing so.
Answer:
House's path-goal model.
Explanation:
Robert House developed the theory of the objective-path, which is a theory that supports the servile leadership style, because House believed that the behavior of the leader is capable of directly interfering in the behavior of the collaborators, therefore, the leaders must be the biggest suppliers of essential support and resources for employees to carry out their work effectively.
He has developed 4 different leadership styles that leaders must have to help employees achieve their goals and objectives.
They are:
Directive, Supportive, Participative, Achievement-oriented.These four styles will provide the essential guidelines and conduct for being a servant and collaborative leader.
Caterpillar,the manufacturer of tractors and other earthmoving equipment,has an extremely high market share,which means customers seek the dealers out regardless of where they are.There are approximately 50 Caterpillar dealers in the United States--one in each state.From this information,you can surmise that Caterpillar uses _____ distribution.
A) selective
B) premium
C) intensive
D) exclusive
E) inclusive
Answer: exclusive
Explanation:
From the information that is provided in the question, we can deduce that Caterpillar uses exclusive distribution. In exclusive distribution, the dealers are given an exclusive right whereby they are allowed to sell the products at a certain geographical location
Since we are told that the company has an extremely high market share,which means customers seek the dealers out regardless of where they are. Then the answer is exclusive distribution.
A firm facing a price of $15 in a perfectly competitive market decides to produce 100 widgets. If its marginal cost of producing the last widget is $12 and it is seeking to maximize profit, the firm should
Answer:
Produce more widgets.
Explanation:
Given the price charge by the competitive firm is = $15
The unit produced = 100
The marginal cost of the last unit = $12
The firm should produce more widget because in the competitive market the firm charge the price that is equal to MC. Moreover, in the given question the price is greater than the marginal cost. Therefore, the firm should produce more widgets in order to reach the condition “P=MC”.
Uptown Men's Wear has accounts payable of $2214, inventory of $7950, cash if $1263, fixed assets of $8400, accounts receivable of $3907, and long term debt of $4,200. What is the value of the net working capital to total assets ratio?
Answer:
Net working capital to fixed assets = 0.50678 rounded off to 0.51
Explanation:
The value of total assets can be calculated by adding the value of current assets and the value of fixed assets.
Total assets = Current Assets + Fixed assets
Total assets = (7950 + 1263 + 3907) + 8400
Total Assets = $21520
The working capital is the difference between the value of current assets and the value of current liabilities.
Net Working capital = Current assets - Current Liabilities
Net working capital = (7950 + 1263 + 3907) - 2214
Net Working capital = $10906
The ratio of net working capital to fixed assets can be calculated by dividing the value of net working capital by the value of the fixed assets.
Net working capital to fixed assets = 10906 / 21520
Net working capital to fixed assets = 0.50678 rounded off to 0.51
Zhao Co. has fixed costs of $286,200. Its single product sells for $163 per unit, and variable costs are $110 per unit. Compute the level of sales in units needed to produce a target (pretax) income of $106,000.
Answer:
The level of sales in units is 7,400
Explanation:
The computation of the level of sales in units is shown below:
= (Fixed cost + target income) ÷ (Contribution margin per unit)
= ($286,200 + $106,000) ÷ ($163 per unit - $110 per unit)
= $392,200 ÷ $53 per unit
= 7,400 units
The Contribution margin per unit is
= Selling price per unit - variable cost per unit
Henec, the level of sales in units is 7,400
Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products: Activity Cost Pools Activity Rate Processing customer orders $96.72 per customer order Assembling products $3.43 per assembly hour Setting up batches $53.23 per batch Last year, Product F76D involved 5 customer orders, 528 assembly hours, and 22 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system
Answer:
Total allocated overhead= $3,465.71
Explanation:
Giving the following information:
Processing customer orders $96.72 per customer order
Assembling products $3.43 per assembly hour
Setting up batches $53.23 per batch
Product F76D:
5 customer orders
528 assembly hours
22 batches
To assign overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product F76D:
Processing= 96.72*5= $483.6
Assembling= 3.43*528= 1,811.04
Setting up batches= 53.23*22= 1.171.07
Total allocated overhead= $3,465.71
You bought Sumsung stock for $45 on April 1. The stock paid a dividend of $2 on July 1, and had a price of $55. It is now Oct. 1, and the stock price is $50. Treasury bills yield 1%.
1. What was the arithmetic average quarterly return?
2. What was the standard deviation of quarterly returns?
3. What's your best guess for the Sharpe ratio of Samsung stock for the next quarter?
Answer:
1. the arithmetic average quarterly return = 8.79%
2. the standard deviation of quarterly returns = 17.8788%
3. the Sharpe ratio of Samsung stock for the next quarter= 0.435593
Explanation:
From the given question;
We use the EXCEL SOFTWARE TO CALCULATE THE:
the arithmetic average quarterly return
the standard deviation of quarterly returns &
the Sharpe ratio of Samsung stock for the next quarter
In the two diagram attached below, the first show the data entry and the output and the second diagram show how we compute the cell reference to estimate the answers.
Which of the following is an example of U.S. foreign direct investment and by itself increases U.S. net capital outflow?
A. A Swiss bank buys bonds issued by a U.S. company.
B. A French restaurant opens and operates a restaurant in New York.
C. A U.S. electronics company opens and operates a new factory in India.
D. A U.S. pension fund buys bonds issued by the Japanese government.
Answer: C. A U.S. electronics company opens and operates a new factory in India.
Explanation:
In Foreign direct investment, a international company owns and controls the affairs of a company in another country hence the term direct. This therefore is asking for which scenario shows a US company in control of a company in another country and that would be the U.S. electronics company opening and operating a new factory in India.
This will increase U.S. net capital outflow which is defined as the amount of money flowing out of the United States to be invested in another country. As the Electronics company had to set up in India, they invested in India thereby increasing U.S. net capital outflow.
As people become more powerful, they tend to become less goal-oriented, less motivated, and more focused on gaining additional power.a) trueb) false
Answer: False
Explanation:
The statement that as people become more powerful, they tend to become less goal-oriented, less motivated, and more focused on gaining additional power is false.
When people become more powerful, such people become motivated to achieve organizational aims and achieve greater things. Also, they become more empowered which helps in increasing their job satisfaction and morale.
Executive recruiting director Owen Williams regularly uses his smartphone and the mobile version of LinkedIn to post job listings and connect to potential candidates. This is an example of ________ in action.
Answer:
mobile recruiting
Explanation:
Mobile recruiting refers to a process in which mobile devices are used to find potential candidates for a position through mobile career sites and apps. According to this, the answer is that this is an example of mobile recruiting because Owen Wilson is using his mobile device and the mobile version of LinkedIn to find candidates.
All of the following are weaknesses of the payback method except:_______.
a. it is easy to calculate
b. it ignores cash flow beyond the payback period
c. present value of cash flows is not used
d. none of the above
Answer:
Correct Answer:
d. none of the above
Explanation:
Payback method is a simple accounting method used to projects incoming cash flows from a given project and identifies the break even point between profit and paying back invested money for a given process.
The following are transactions and events of the general fund of Sycamore Hospital, a not-for-profit entity, for the 20X6 fiscal year ending December 31, 20X6.
1. Provided a total of $6,600,000 in patient services.
2. Had total operating expenses of $5,998,000, as follows:
Nursing services $2,100,000
Other professional expenses 1,280,000
Fiscal services 230,000
General services 1,520,000
Bad debts 138,000
Administration 250,000
Depreciation 480,000
Accounts credited for operating expenses other than depreciation:
Cash $4,794,000
Allowance for Uncollectibles 138,000
Accounts Payable 213,000
Inventories 210,000
Donated Services 163,000
3. Allowed contractual adjustments of $210,000 as deductions from gross patient revenue.
4. Received a transfer of $200,000 from specific-purpose funds for payment of approved operating costs in accordance with the terms of the restricted gift.
5. Received a transfer of $230,000 from the temporarily restricted plant fund to purchase new equipment for the hospital.
6. Received $150,000 of unrestricted gifts.
7. Collected accounts receivable except for $65,000 written off.
8. Reported a $90,000 increase in the market value of the investment securities portfolio of the general fund from the beginning of the period. The board designated this entire income for other than current operations.
Required:
Prepare journal entrie.
Answer:
1. Dr Accounts receivable 6,600,000
Cr Patient services revenue 6,600,000
2. Dr Nursing services expense 2,100,000
Dr Other professional services expense 1,280,000
Dr Fiscal services expense 230,000
Dr General services expense1,520,000
Dr Bad debts expense 138,000
Dr Administration expense250,000
Dr Depreciation expense 480,000
Cr Cash 4,794,000
Cr Allowance for uncollectibles 138,000
Cr Accumulated depreciation 480,000
Cr Accounts payable 213,000
Cr Inventory 210,000
Cr Donated services 163,000
3. Dr Patient services revenue210,000
Cr Accounts receivable210,000
4. Dr Cash 200,000
Cr Net assets released from program use restrictions 200,000
5. Dr Cash 230,000
Cr Net assets released from equipment acquisition restriction 230,000
6.Dr Cash 150,000
Cr Contributions-Unrestricted 150,000
7. Dr Cash 6,455,000
Cr Allowance for uncollectibles 65,000
Cr Accounts receivable 6,390,000
8. Dr Investment securities 90,000
Cr Unrealized holding gain on investment securities 90,000
Explanation:
Preparation of the Journal entries for Sycamore Hospital.
1. Since we were told that the company Provided a total of the amount of $6,600,000 in patient services this means that the transaction will be recorded as:
Dr Accounts receivable 6,600,000
Cr Patient services revenue 6,600,000
2. Based on the information given we were told that the company had total operating expenses of the amount of $5,998,000 which means that the transaction will be recorded as:
Dr Nursing services expense 2,100,000
Dr Other professional services expense 1,280,000
Dr Fiscal services expense 230,000
Dr General services expense1,520,000
Dr Bad debts expense 138,000
Dr Administration expense250,000
Dr Depreciation expense 480,000
Cr Cash 4,794,000
Cr Allowance for uncollectibles 138,000
Cr Accumulated depreciation 480,000
Cr Accounts payable 213,000
Cr Inventory 210,000
Cr Donated services 163,000
3. Since we were told that Allowed contractual adjustments was the amount of $210,000 which is a deductions from gross patient revenue, which means that the transaction will be recorded as:
Dr Patient services revenue210,000
Cr Accounts receivable210,000
4. Based on the information given we were told that the company received a transfer of the amount of $200,000 for the payment of approved operating costs which means that the transaction will be recorded as:
Dr Cash 200,000
Cr Net assets released from program use restrictions 200,000
5. Since the company received a transfer of the amount of $230,000 from the temporarily restricted plant fund in order to purchase new equipment for the hospital, this means that the transaction will be recorded as:
Dr Cash 230,000
Cr Net assets released from equipment acquisition restriction 230,000
6.Since the company received the amount of $150,000 of unrestricted gifts, this means that the transaction will be recorded as;
Dr Cash 150,000
Cr Contributions-Unrestricted 150,000
7. Since the company collected accounts receivable except for the amount of $65,000 which was written off, this means that the transaction will be recorded as:
Dr Cash 6,455,000
(6,390,000 +65,000)
Cr Allowance for uncollectibles 65,000
Cr Accounts receivable 6,390,000
(6,600,000-210,000)
8. Based on the information given we were told that the company reported the amount of $90,000 as an increase in the market value, this means that the transaction will be recorded as:
Dr Investment securities 90,000
Cr Unrealized holding gain on investment securities 90,000
Copper Manufacturing has prepared the following monthly flexible manufacturing overhead budget for its Mixing Department:
COPPER MANUFACTURING
Monthly Flexible Manufacturing Overhead Budget
Mixing Department
Activity level
Direct labor hours 3,000 4,000
Variable costs
Indirect materials $3,000 $4,000
Indirect labor 15,000 20,000
Factory supplies 4,500 6,000
Total variable 22,500 30,000
Fixed costs
Depreciation 20,000 20,000
Supervision 12,000 12,000
Property taxes 15,000 15,000
Total fixed 47,000 47,000
Total costs $69,500 $77,000
Prepare a flexible budget at the 5,000 direct labor hours of activity.
Answer:
Factory supplies 4,500 6,000
Total variable 22,500 30,000
Fixed costs
Depreciation 20,000 20,000
Supervision 12,000 12,000
Property taxes 15,000 15,000
Total fixed 47,000 47,000
Total costs $69,500 $77,000
A flexible budget at the 5,000 direct labor hours of activity is comes out with total cost of production to the tune of $84500.
What is a flexible Budget?Budgets which are flexible can be changed to reflect changes in revenue and expenses during the fiscal year, taking into account anticipated unpredictability is known as Flexible budget. Companies first take into consideration expected fixed costs, or at least those that they don't anticipate changing as the year goes on.
Copper Manufacturing has prepared the following monthly flexible manufacturing overhead budget for its Mixing Department:
The Flexible budget for 5000 direct labor hours can be worked out as following:
a) Direct labor hours 3,000 4,000 5000
b) Factory supplies 4,500 6,000 7500
c) Total variable Cost 22,500 30,000 37,500
d) Fixed costs ($)
Depreciation 20,000 20,000 20,000
Supervision 12,000 12,000 12,000
Property taxes 15,000 15,000 15,000
Total fixed Cost 47,000 47,000 47,000
Total costs $69,500 $77,000 $84,500
Therefore the total cost of production as per flexible budget is to the tune of $84,500 with increase in 1000 Direct labor hours the per unit cost rise by $7.5 per hour.
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On October 17, Nikle Company purchased a building and a plot of land for $750,000.
The building was valued at $500,000 while the land carried a value of $250,000.
Nikle paid $300,000 down in cash and signed a note payable for the balance.
Prepare the journal entry for this transaction.
(If an amount box does not require an entry, leave it blank.)
Answer:
the journal entry for this transaction is :
Building $500,000 (debit)
Land $250,000 (debit)
Cash $300,000 (credit)
Note Payable $450,000 (credit)
Explanation:
Recognize separately the assets purchased as : Building $500,000 and Land $250,000 and also recognize the Liability - Note Payable to the amount of $450,000 - the balance remaining after a cash settlement of the purchase price of $300,000.