Jarett Motors is trying to decide whether it should keep its existing car washing machine or purchase a new one that has technological advantages (which translate into cost savings) over the existing machine. Information on each machine follows: Old machine New machine Original cost $9,000 $20,000 Accumulated depreciation 5,000 0 Annual cash operating costs 9,000 4,000 Current salvage value of old machine 2,000 Salvage value in 10 years 500 1,000 Remaining life 10 yrs 10 yrs Refer to Jarett Motors. The $4,000 of annual operating costs that are common to both the old and the new machine are an example of a(n):________ a. opportunity cost b. irrelevant cost c. future avoidable cost d. sunk cost

Answers

Answer 1

Answer:

The correct option is b. irrelevant cost.

Explanation:

An irrelevant cost can be described as an expense that will not be affected by the decisions of thee management. Therefore, irrelevant costs are those that will not change if you choose one option over another in the future.

Therefore, the $4,000 of annual operating costs that are common to both the old and the new machine are an example of irrelevant cost. This is because the 4,000 of annual operating costs will not be affected or will still be incurred whether Jarett Motors managment decide to keep its existing car washing machine or purchase a new one.

Therefore, the correct option is b. irrelevant cost.


Related Questions

Suppose that the price of a good decreased. The substitution effect shows the change in consumption for all goods in reaction to a change in _____________ relative prices income preferences holding _____________ purchasing power utility constant.

Answers

Answer:

The correct answer is "relative prices; utility". A further explanation is provided below.

Explanation:

The conditions of a connection or bond between variables customer demand or perhaps the proportion of such a given cost of production to the normal distribution of so many other products available throughout the marketplace.Individual's pleasure is usually measured by the consumption of that same goods and services.

Thus the above is the correct answer.

What is the objective of finacial reporting

Answers

THIS IS YOUR ANSWER

MARKS ME AS BRAINLIST

It is to give information about the financial performance and position of a company

A. treats financial indicators as the sole measurement of performance B. evaluates performance based on organizational participation in improving processes C. does not consider operational performance measures D. incorporates both financial and operational performance measures

Answers

Answer:

Option D: Incorporates both financial and operational performance measures

Explanation:

Balance Scorecard Concept

This was said to be published in 1992 by Kaplan and Norton. Thereafter, a book version was made in 1996.

It is also said to be a form of Traditional performance measurement that depends on external accounting data as out of date(old/out of use).

This approach aim to obtain 'balance' to the financial perspective.

Balanced Scorecard

This is simply regarded as a form of strategic planning and management system that is being used to merge or align business activities to the vision and strategy of the organization through the act of monitoring performance against strategic goals.

Importance of Balanced Scorecard

1. Improve organizational performance by measuring what matters

2. Increase focus on strategy and results

3. Align organization strategy with workers on a day-to-day basis.

3. Focus mainly on the drivers key to future performance

Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $31,000. The estimated useful life was five years and the residual value was $3,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 2,000 units; and year 5, 1,000 units.

Required:
a. Which method will result in the highest net income in year 2?
b. Does this higher net income mean the machine was used more efficiently under this depreciation method?

Answers

Answer:

Straight line depreciation

no

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

(31,000 - 3000) / 5 = $5,600

depreciation expense each year is 5600

Activity method based on output = (output produced that year / total output of the machine) x (Cost of asset - Salvage value)

(3000 / 10,000) x (31,000 - 3000) = 8400

Double declining =  

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

2/5 x 31000 = 12400

year 2 = 2/5 x(31,000 - 12400) = 7440

Ken's home has a replacement value of $200,000. Ken insured the home for $150,000 under an unendorsed Homeowners 3 policy. The roof of Ken's home was damaged by a windstorm. The replacement cost of the damaged roof is $16,000. The actual cash value of the loss is $12,000. How much will Ken receive from his insurer to settle this claim

Answers

Answer: $15,000

Explanation:

Using a Homeowners 3 policy, Ken will get the higher amount out of two amounts which are:

The actual cash value of the damaged area. An amount calculated as follows:

= (Amount of Insurance cover on home / 80% of Replacement Cost) * Cost of Repair to damaged area.

The actual cash value is $12,000

The second amount is:

= (Amount of Insurance cover on home / 80% of Replacement Cost) * Cost of Repair to damaged area.

= 150,000 / (80% * 200,000) * 16,000

= 0.9375 * 16,000

= $15,000

Ken will receive the higher amount of $15,000.

Using the AS-AD and IS-LM models, show the effects of an increase in consumer confidence on the position of the AD, AS, IS, and LM curves in the short run and in the medium run. Precisely label all axes and curves to receive full credit. Label the short-run equilibrium and medium-run equilibrium with SR and MR, respectively.

Answers

Answer: hello your question has some missing information below is the missing information

Suppose the economy begins with output equal to its natural level. Then there is an increase in consumer confidence and households attempt to consume more for a given level of disposable income.

answer :

Attached below

Explanation:

IS-LM modeling curves intersects and it also defines the value of r and Y where r ( rate of interest )  Y( output level )

The AS-AD modeling is in equilibrium where aggregate demand curve and short run and long run aggregate supply curves intersects each other defining P and Y

p ( price level ) , Y ( output level )

Note : Increase in aggregate demand shifts IS outward , raises interest rate and output level

"Differentiation is not something hatched in marketing and advertising department ,nor it is limited to the catchalls to quality and service".Justify your answer.​

Answers

Answer:

Differentiation opportunities can exist in activities all along an industry's value chain

Explanation:

-Product R&D activities that aim at improved product designs and performance features,expanded end uses and applications and selection, added user safety,greater recycling capability or enhanced environmental protection.

Doris purchased a zero coupon bond 5 years ago for $675.68. If the bond matures today and the face value is $1,000, what is the average annual compound rate of return (calculated semiannually) that she realized on her investment

Answers

Answer:

8.00%

Explanation:

The price of a zero-coupon bond is the present value of its face value since no coupon payments exist, hence, we can determine the semiannual rate of return  using the formula below:

PV=FV/(1+r)^n

PV= $675.68

FV=$1000

r=semiannual rate of return=unknown

n=number of semiannual periods in 5 years=5*2=10

$675.68=$1000/(1+r)^10

$675.68*(1+r)^10=$1000

(1+r)^10=$1000/$675.68

$1000/$675.68 can be rewritten as ($1000/$675.68)^1

(1+r)^10=($1000/$675.68)^1

divide indexes on both sides by 2

1+r=($1000/$675.68)^(1/10)

r=($1000/$675.68)^(1/10)-1

r=4.00%(semiannual rate of return)

the annual rate of return(compounded semiannually)=4.00%*2=8.00%

On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,050 in assets in exchange for its common stock to launch the business. On December 31, the company’s records show the following items and amounts. Cash $ 7,950 Cash dividends $ 3,070 Accounts receivable 17,450 Consulting revenue 17,450 Office supplies 4,200 Rent expense 4,530 Office equipment 19,060 Salaries expense 8,090 Land 46,010 Telephone expense 880 Accounts payable 9,430 Miscellaneous expenses 690 Common stock 85,050 Also assume the following: The owner’s initial investment consists of $39,040 cash and $46,010 in land in exchange for its common stock. The company’s $19,060 equipment purchase is paid in cash. Cash paid to employees is $2,860. The accounts payable balance of $9,430 consists of the $4,200 office supplies purchase and $5,230 in employee salaries yet to be paid. The company’s rent expense, telephone expense, and miscellaneous expenses are paid in cash. No cash has yet been collected on the $17,450 consulting revenue earned.
Using the above information prepare a December statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)

Answers

Answer:

$3,260

Explanation:

Preparation of December statement of cash flows for Ernst Consulting

ERNST CONSULTING Income Statement

For Month Ended October 31

REVENUES

Consulting fees earned $17,450

Total revenues $17,450

EXPENSES

Rent expense $4,530

Salaries expense $8,090

Telephone expense $880

Miscellaneous expenses $690

Total expenses $14,190

Net income $3,260

($17,450-$14,190)

Therefore December statement of cash flows for Ernst Consulting will be $3,260

The marketing team for Lots-o-Chocolate wants to understand the effectiveness of the different components of its digital marketing campaign and put more resources toward its three top-performing sites for ads. How can the marketing team use marketing metrics and marketing control to achieve their objective

Answers

Answer:

The top 3 campaigns ( sites for ads ) with the highest values of the metrics mentioned below should be picked that way the team will achieve their objective.

Explanation:

For a marketing team To understand the effectiveness of the different components of its campaigns there are certain factors/metrics  they should consider/lookout for in each of the various components and they are

i) conversation rate of the various components of the marketing campaigns

ii) Number of clicks/site visits from the various components

iii) Reach of each component to potential customers or returning customers.

When these metrics are checked the, The top 3 campaigns ( sites for ads ) with the highest values of the metrics should be picked.

The Corbit Corp, sold merchandise for $10,000 cash. The cost of orp. sold merchandise for $10,000 cash. The cost of the se sold was $7,590. The journal entries to record this transaction under the perpetual inventory system would be:______.
A. Cash 10,000 Merchandise Inventory Cost of Merchandise Sold 10,000 7,590 7,590 Sales
B. Cash 10,000 Sales 10,000 Cost of Merchandise Sold 7,590 7,590 Merchandise Inventory
C. Cash 10,000 Sales 10,000 Merchandise Inventory Cost of Merchandise Sold 10,000 10,000
D. Cash 7,590 Sales 7,590 Cost of Merchandise Sold Merchandise Inventory 7,590 7,590

Answers

Answer:

B. Cash 10,000 Sales 10,000 Cost of Merchandise Sold 7,590 7,590 Merchandise Inventory

Explanation:

The journal entry is shown below:

cash   $10,000

    To sales   $10,000

(being cash receipts is recorded)

Here cash is debited as it increased the assets and credited the sales as it also increased the revenue  

cost of merchandize sold  $7,590

      To merchandize inventory  $7,590

(being cost of merchandise sold is recorded)

Here cost is debited as it increased the expense and credited the merchanidse inventory as it decreased the inventory

Fill in the missing numbers in the following income statement:

Sales $645,000
Costs 346,500
Depreciation 97,200
EBIT $
Taxes (35%)
Net income $

Required:
a. What is the OCF?
b. What is the depreciation tax shield?

Answers

Answer:

See below

Explanation:

EBIT = Sales - Cost - Depreciation

= $645,000 - $346,500 - $97,200

= $201,300

Taxes = EBIT × 35%

= $201,300 × 35%

= $70,455

Net income = EBIT - Taxes

= $201,300 - $70,455

= $130,845

1. OCF

= Net income + Depreciation

= $130,845 + $97,200

= $228,045

2. Depreciation tax shield

= Depreciation × Tax rate

=$97,200 × 35%

= $34,020

Johanna's Jams and Jellies is looking to be set up on QuickBooks Online. Johanna wants to be able to set up specific roles for the 15 different users in her company, including providing access to her CPA, outsourced CFO, and an outside integration specialist and ProAdvisor. Which version(s) of Quickbooks Online would allow her to accomplish this?

a. QuickBooks Online Plus and Advanced
b. QuickBooks Online Essentials, Plus and Advanced
c. QuickBooks Online Advanced
d. QuickBooks Online Simple Start, Essentials, Plus and Advanced

Answers

Answer: C. QuickBooks Online Advanced

Explanation:

With the QuickBooks Online Advanced, Johanna can be bake to do batch transactions faster even when there's an increase in workload. In the QBO Advanced, there are batch transaction entry for sales, checks, receipts, invoices, etc.

Since Johanna wants to be able to set up specific roles for the 15 different users in her company, including providing access to her CPA, outsourced CFO, and an outside integration specialist and ProAdvisor, the version of Quickbooks Online that would allow her to accomplish this is the QuickBooks Online Advanced.

An industry consists of three firms with sales of $355,000, $825,000, and $435,000.
a. Calculate the Herfindahl-Hirschman index (HHI).
Instruction:
Enter your response rounded to the nearest integer.
b. Calculate the four-firm concentration ratio (C4).
c. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, is the Department of Justice likely to attempt to block a horizontal merger between two firms with sales of $355,000 and $435,000

Answers

Answer:

Calculating Herfindahl-Hirschman Index and Four-Firm Concentration Ratio:

a. Herfindahl-Hirschman index (HHI) = 3,814

b. The four-firm concentration ratio (C4) = 1

c. If the two firms with sales of $355,000 and $435,000 merged, the resulting HHI would increase by 1,723 to 5,537.  The post-merger HHI now exceeds that allowed under the Guidelines (2,500). The increase in HHI is more than that permitted under the Guidelines (200), the merger is likely to be blocked by the Department of Justice.

Explanation:

a) Data and Calculations:

Sales of three firms in an industry:

                            Sales          Industry Share

Firm A sales = $355,000        22% ($355,000/$1,615,000 * 100)

Firm B sales =   825,000         51% ($825,000/$1,615,000 * 100)

Firm C sales =   435,000        27% ($435,000/$1,615,000 * 100)

Total sales =  $1,615,000

Herfindahl-Hirschman index (HHI) = 3,814 (22² + 51² + 27²)

Four-firm concentration ratio (C4) = Sales of the four largest firms/Industry sales = $1,615,000/$1,615,000

If the two firms with sales of $355,000 and $435,000 were to merge, the new Herfindahl-Hirschman index (HHI) = 5,537(49² + 51²)

Increase in HHI as a result of the merger = 1,723

you are planning to make monthly deposits of $140 into a retirement account that pays 13 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 25 years

Answers

Answer:

FV= $314,365.69

Explanation:

Giving the following information:

Monthly deposti= $140

Number of months= 25*12= 300

Interest rate= 0.13/12= 0.01083

To calculate the future value of the investment, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

FV= {140*[(1.01083^300) - 1]} / 0.01083

FV= $314,365.69

Your credibility is your capability of being believed because you are reliable and worthy of confidence.

Answers

yes, agreed and proven.

Petro Motors Inc. (PMI) produces small gasoline-powered motors for use in lawn mowers. The company has been growing steadily over the past five years and is operating at full capacity. PMI recently completed the addition of new plant and equipment at a cost of $7.800.000, thereby increasing its manufacturing capacity to 100.000 motors annually. The addition to plant and equipment will be depreciated on a straight-line basis over 10 years. Sales of motors were 60.000 units prior to the completion of the additional capacity. Cost records indicated that manufacturing costs had totaled $60 per motor, of which $48 per motor was considered to be variable manufacturing costs. PMI has used the volume of activity at full capacity as the basis for applying fixed manufacturing overhead. The normal selling price is $80 per motor, and PMI pays a 5% commission on the sale of its motors. LawnPro.com offered to purchase 35,000 motors at a price of $60 per unit to test the viability of distributing lawn mower replacement motors through its website. PMI would be expected to produce the motors, store them in its warehouse, and ship individual motors to LawnPro.com customers. As orders are placed directly through the LawnPro.com website, they would be forwarded instantly to PMI. No commissions will be paid on this special sales order, and freight charges will be paid by the customer purchasing a motor.

Required:
a. Calculate the cost per motor, for cost accounting purposes, after completion of the additional plant capacity.
b. Identify all the relevant costs that PMI should consider in evaluating the special sales order from LawnPro.

Answers

Answer:

Petro Motors, Inc. (PMI)

1. The cost per motor, for cost accounting purposes, after completion of the additional plant capacity is:

= $63

2. All the relevant costs that PMI should consider in evaluating the special sales order from LawnPro include:

Variable manufacturing costs

Storage costs (which is variable)

Administration costs (which is also variable)

Explanation:

a) Data and Calculations:

Cost of additional plant and equipment = $7,800,000

New annual production capacity = 100,000

Depreciation period on a straight-line basis = 10 years

Additional annual fixed cost = $780,000 ($7,800,000/10)

                                      Old Capacity   New Capacity

Production  capacity            60,000            100,000

Selling price per motor        $80                     $

Sales commission (5%)           (4)      

Net selling price per motor $76

Variable cost per unit          $48                     $48

Total variable cost             $2,880,000     $4,800,000

Annual fixed costs                  720,000          720,000

Depreciation on the new plant                      780,000

Total cost                          $3,600,000    $6,300,000

Production  capacity                60,000          100,000

Cost per unit                                 $60                 $63

London New York Zurich Hong Kong Bid/Ask Quotes for CHF $0.7464-71 $0.7469-76 $0.7471-74 $0.7460-70 In order to take advantage of locational arbitrage, a currency speculator should buy CHF from the______ dealer and sell CHF to the ______ dealer. Group of answer choices Hong Kong; Zurich London; New York Zurich; Hong Kong New York; Hong Kong

Answers

Answer:

The correct option is Hong Kong; Zurich.

Explanation:

Giveen:

Currency dealer in            London       New York      Zurich      Hong Kong

Bid/Ask Quotes for CHF $0.7464-71  $0.7469-76  $0.7471-74 $0.7460-70

Locational arbitrage can be described as the act of a currency speculator attempting to profit from tiny exchange rate discrepancies across several banks in different locations for a specific currency pair.

Since it is possible for the currency speculator to buy at Ask price from a bank in one location and sell it to another bank at bid price in another location, he will try to identify where he can buy at the lowest price to go and sell in another location with the highest price.

From the table above, Hong Kong has the lowest Bid/Ask Quotes for CHF of $0.7460-70 while Zurich has the highest Zurich of $0.7471-74. Therefore a currency speculator should buy CHF from the Hong Kong dealer and sell CHF to the Zurich dealer.

Therefore, the correct option is Hong Kong; Zurich.

g Which of the following is the first step of the planning phase of a strategic management process? A. establishment of the company's mission B. assessment of the external environment that the firm will face in the future C. analysis of the firm's relative capabilities to deal successfully with the external environment D. seeking alternative strategies using competitive analysis

Answers

Answer:

A. establishment of the company's mission

Explanation:

Strategic management is defined as the steps that a company continuously uses to assess and monitor the abilities not a company to meet up with its goals and objectives. As the business environment changes the organisation will need to make adjustments to stay competitive.

During the planning stage of strategic management there is a need for establishment of a company's mission first of all. This communicates to the employees the business's goals, which helps in setting priorities, focus energy, and strengthen operations in such a way that employees and other stakeholders are working toward a common outcome

At the beginning of the period, the Assembly Department budgeted direct labor of $60,500 and property tax of $26,000 for 5,500 hours of production. The department actually completed 6,800 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting. $ fill in the blank 1

Answers

Answer:

Total cost= $100,800

Explanation:

Giving the following information:

Property tax= $26,000

Direct labor= $60,500

Number of hours= 5,500

Property tax is a fixed cost. We need to calculate the hourly rate for direct labor:

Hourly rate= 60,500 / 5,500

Hourly rate= $11

Now, the flexible budget:

Fixed cost= 26,00

Variable cost= 11*6,800= 74,800

Total cost= $100,800

For the year, Logitom planned to sell 1,104,000 units at a $39 selling price. The marketing manager was asked to explain why budgeted revenue had not been achieved for that year. Investigation revealed the following information:
Actual sales volume 1,135,200 units
Actual selling price $38 per unit
Calculate the sales price variance, the sale volume variance, and the total revenue variance.

Answers

Answer:

Sales price variance = Actual quantity sold * (Actual price - Budgeted selling price)

Sales price variance = 1,135,200 * ($38 - $39)

Sales price variance = 1,135,200 * $1

Sales price variance = $1,135,200 Unfavorable

Sales volume variance = Budgeted selling price * (Actual quantity - Budgeted quantity)

Sales volume variance = $39 * (1,135,200 - 1,104,000)

Sales volume variance = $39 * 31,200

Sales volume variance = $1,216,800 Favorable

Total revenue variance = (Actual quantity * Actual price) - (Budgeted quantity * Budgeted price)

Total revenue variance = (1,135,200 * $38) - (1,104,000 * $39)

Total revenue variance = $43,137,600 - $43,056,000

Total revenue variance = $81,600 Favorable

Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $840,000 of 25-year, 8% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions for the current year.

May 1 Issued the bonds for cash at their face amount.
Nov. 1 Paid the interest on the bonds.

Answers

Answer:

May 1

Dr Cash $840,000

Cr Bonds payable $840,000

Nov 1

Dr Interest expense $33,600

Cr Cash $33,600

Explanation:

Preparation of the journal entry to record May 1 Issued bonds for cash at their face amount

May 1

Dr Cash $840,000

Cr Bonds payable $840,000

Preparation of the journal entry to record Nov. 1 interest on the bonds.

Nov 1

Dr Interest expense $33,600

Cr Cash $33,600

(840,000*8%*6/12)

Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 2,000,000 shares of no-par common stock were authorized; 750,000 shares were issued on January 1, 2019, at $35 per share. 800,000 shares of $100 par value, 7.5% cumulative, preferred stock were authorized; 540,000 shares were issued on January 1, 2019, at $105 per share. No dividends were declared or paid during 2019 or 2020. However, on December 22, 2021, the board of directors of Permabilt Corp. declared dividends of $15,000,000, payable on February 12, 2022, to holders of record as of January 8, 2022.

Required:
a. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
b. Use the horizontal model for the declaration of dividends on December 22, 2021. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
c. Use the horizontal model for the payment of dividends on February 12, 2022. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)

Answers

Answer:

Permabilt Corp.

Financial Statement Effects:

                                            Balance Sheet                             Statement of

                                 Assets    =   Liabilities   +  Equity             Cash Flows

a. January 1, 2019:  

Cash                 $26,250,000

Common stock                                                 $26,250,000  FA cash inflow

b. December 22, 2021:

Dividends                                                        -$15,000,000

Dividends Payable                     $15,000,000

c. February 12, 2022:

Dividends Payable                   -$15,000,000

Cash              -$15,000,000                                                   FA cash outflow

Total               $11,250,000    =  0           +      $11,250,000

Explanation:

a) Data and Analysis:

January 1, 2019

Cash $26,250,000 Common stock $26,250,000

Cash $56,700,000 7.5% Cumulative Preferred Stock $54,000,000 Additional Paid-in Capital - Preferred $2,700,000

December 22, 2021:

Preferred Stock Dividends $4,050,000 ($54,000,000 * 7.5%)

Common Stock Dividends $10,950,000 ($15,000,000 - $4,050,000)

Dividends Payable $15,000,000

February 12, 2022:

Dividends Payable $15,000,000

Cash $15,000,000

Which mineral resource is used in chemical industry?

Answers

Answer:

Carbon feedstocks – oil, gas, coal, renewables, and CO2 – are the base of organic chemistry that creates about 90% of the value of the chemical industry.  Some inorganic feedstocks are regarded as critical: Noble metals, some rare earth elements, indium, lithium, phosphate, etc.

Mineral resources can be divided into two major categories - Metallic and Nonmetallic. Metallic resources are things like Gold, Silver, Tin, Copper, Lead, Zinc, Iron, Nickel, Chromium, and Aluminum. Nonmetallic resources are things like sand, gravel, gypsum, halite, Uranium, dimension stone.

Purchases Budget in Units and Dollars Budgeted sales of The Music Shop for the first six months of 2010 are as follows: Month Unit Sales Month Unit Sales January 130,000 April 200,000 February 170,000 May 180,000 March 190,000 June 250,000Beginning inventory for 2010 is 40,000 units. The budgeted inventory at the end of a month is 40 percent of units to be sold the following month. Purchase price per unit is $6. Prepare a purchases budget in units and dollars for each month, January through May.

Answers

Answer:

Results are below.

Explanation:

To calculate the purchase for each  month, we need to use the following formula:

Purchases= production + desired ending inventory - beginning inventory

Purchases January:

Production= 130,000

Desired ending inventory= (170,000*0.4)= 68,000

Beginning inventory= (40,000)

Total purchase in units= 158,000

Total purchase cost= 158,000*6= $948,000

Purchases February:

Production= 170,000

Desired ending inventory= (190,000*0.4)= 76,000

Beginning inventory= (68,000)

Total purchase in units= 178,000

Total purchase cost= 178,000*6= $1,068,000

Purchases March:

Production= 190,000

Desired ending inventory= (200,000*0.4)= 80,000

Beginning inventory= (76,000)

Total purchase in units= 194,000

Total purchase cost= 194,000*6= $1,164,000

Purchases April:

Production= 200,000

Desired ending inventory= (180,000*0.4)= 72,000

Beginning inventory= (80,000)

Total purchase in units= 192,000

Total purchase cost= 192,000*6= $1,152,000

Purchases May:

Production= 180,000

Desired ending inventory= (250,000*0.4)= 100,000

Beginning inventory= (72,000)

Total purchase in units= 208,000

Total purchase cost= 208,000*6= $1,248,000

The December 31, 2009, balance sheet of Anna’s Tennis Shop, Inc., showed current assets of $2,584 and current liabilities of $1,191. The December 31, 2010, balance sheet showed current assets of $2,644 and current liabilities of $1,048. What was the company’s 2010 change in net working capital, or NWC?

Answers

Answer: ($203)

Explanation:

The company’s 2010 change in net working capital will be calculated thus:

Net working capital = current assets - current liabilities

For 2009, net working capital will be:

= $2,584 - $1,191

= $1393.

For 2010, net working capital will be:

= $2,644 - $1,048

= $1596

Change in net working capital will be:

= $1393 - $1596

= ($203)

Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question.
The Purple Tulip Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $790 for six months of advertising. Purple Tulip Law Firm recorded $790 in the Prepaid Advertising account.
If Purple Tulip Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for the two months ending February 28?
Sweet Catering completed the following selected transactions during May 2016:
May 1: Prepaid rent for three months, $2,100
May 5: Received and paid electricity bill, $90
May 9: Received cash for meals served to customers, $2,520
May 14: Paid cash for kitchen equipment, $3,770
May 23: Served a banquet on account, $1,900
May 31: Made the adjusting entry for rent (from May 1).
May 31: Accrued salary expense, $2,290
May 31: Recorded depreciation for May on kitchen equipment, $560 If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May?
If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month of May?

Answers

Answer:

1. Cash Basis $790

Accrual basis $263

2. Cash method $(3,440)

Accrual method $780

Explanation:

1. Calculation to determine how much advertising expense would they have recorded for the two months ending February 28

UNDER THE CASH BASIS, the Law Firm will record ​$790 of advertising expense for the two months ending February 28.

UNDER THE ACCRUAL BASIS, the Law Firm will record ​$263 ($790/6*2) of advertising expense for the two months ending February 28.

Therefore the amount of advertising expense l would they have recorded for the two months ending February 28 is:

Cash Basis $790

Accrual basis $263

2a. Calculation to determine how much net income (loss) would they have recorded for the month of May If Sweet Catering had recorded transactions using the Cash method

Using this formula

Net income (loss) using cash method = Meals served to customer – Rent paid – Electricity bill – Cash paid for kitchen equipment

Let plug in the formula

Net income (loss) using cash method= $2,520 -$2,100-$90-$3,770

Net income (loss) using cash method= $(3,440)

Therefore If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May is $(3,440)

2b. Calculation to determine how much net income (loss) would they have recorded for the month of May If Sweet Catering had recorded transactions using the Accrual method

Using this formula

Net income (loss) using accrual method = Meals served to customer+ Served a banquet on account – Rent expense – Electricity bill – Salary expense – Depreciation

Let plug in the formula

Net income (loss) using accrual method= $2,520+$1,900-($2,100/3)-$90-$2,290-$560

Net income (loss) using accrual method=$2,520+$1,900-$700-$90-$2,290-$560

Net income (loss) using accrual method=$780

Therefore If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month of May is $780

Corner Store posts on its website an offer of a reward for information leading to the apprehension of a certain criminal. This offer could normally be terminated by:______.
A) a post on the website.
B) a notice in the local newspaper.
C) a sign in the brick and mortar store.
D) a sign posted in a police station.

Answers

Answer:

a sign posted in a police station ✓

20. WACC and NPV [LO3, 5] Sommer, Inc., is considering a project that will result
in initial aftertax cash savings of $2.3 million at the end of the first year, and these
savings will grow at a rate of 2 percent per year indefinitely. The firm has a target
4.6 percent. The cost-saving proposal is somewhat riskier than the usual project the
firm undertakes; management uses the subjective approach and applies an adjustment factor of +3 percent to the cost of capital for such risky projects. Under what
circumstances should the company take on the project?

Answers

Mark Brainliest please

Sommer Inc is considering the new project, and yet we have to calculate under what circumstances the company have to take on the project. In order to assess the project, we need to compute the break-even cost such as the present value of future cash flows and calculate the WACC weighted cost of capital. It measures the weighted cost of equity and the after tax cost of debt. The following information are given: Debt to equity ratio = 0.90 Cost of equity = 13% After-tax cost of debt = 4.8% After-tax cost of savings = $2.7 million Debt to equity ratio = Debt / Equity = 0.90 Therefore, Value of firm = value of debt + value of equity Value of firm = 0.90E + E Value of firm

See the calculation of WACC as attachment

The hyrbrid automobile grew out of automobile designers' realization that there were changes in the legal environment regarding automobile emissions to which they need not comply.

a. True
b. False

Answers

Answer: True

Explanation:

Hybrid cars use both electricity and gasoline motors and engines. The concept behind this is that the electricity gives the car better acceleration and the gasoline then maintains it.

Developed countries tax gasoline due to its emissions but don't really tax electricity. On realizing this, designers recognized that they could combine both gasoline and electricity to create hybrids that would decrease the cost of taxation of using gasoline.

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