Answer:
Bond Price= $2,162.94
Explanation:
Giving the following information:
Par value= $2,000
YTM= 0.038/2= 0.019
Coupon= (0.046/2)*2,000= $46
Years to maturity= 13*2= 26
To calculate the price of the bond, we need to use the following formula:
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 46*{[1 - (1.019^-26)] / 0.019} + [2,000 / (1.019^26)]
Bond Price= 936.91 + 1,226.03
Bond Price= $2,162.94
According to a survey done by the Anti-Fraud Collaboration, the majority of participants believe it is the job of senior executives within an organization to set the tone to deter fraud.
a) true
b) false
Anderson Corporation had a credit balance of $43,000 in its Retained Earnings account on December 31, 2018. Net income of $6,000 was reported on its income statement for the year ended December 31, 2019. Dividends in the amount of $5,625 were declared on December 31, 2019 and are payable to the company's stockholders on February 1, 2020. The balance in its Retained Earnings account on December 31, 2019 equals _____.
Answer:
$43,375
Explanation:
Calculation to determine what The balance in its Retained Earnings account on December 31, 2019 equals
Using this formula
Ending retained earnings = Beginning retained earnings + Net income - Dividend declare
Let plug in the formula
Ending retained earnings= $ 43,000 + $ 6,000 - $ 5,625
Ending retained earnings= $ 49,000 - $ 5,625
Ending retained earnings= $ 43,375
Therefore The balance in its Retained Earnings account on December 31, 2019 equals $ 43,375
If a breakthrough in battery technology enables cell phone manufacturers to construct phones with the same battery life for less money, then in the cell phone market, equilibrium price______and equilibrium quantity______.
Answer:
decreases; increases.
Explanation:
Technology can be defined as a branch of knowledge which typically involves the process of applying, creating and managing practical or scientific knowledge to solve problems and improve human life. Technologies are applied to many fields in the world such as medicine, information technology, cybersecurity, engineering, environmental, etc.
Generally, technology has impacted the world significantly and positively as it has helped to automate processes, increased efficiency and level of output with little or no human effort.
Assuming a breakthrough in battery technology fosters the growth and development of cell phone manufacturers.
In the cell phone market, equilibrium price would decrease while there would be a significant increase in equilibrium quantity because they will be able to construct phones with the same battery life for a less amount of money.
Additionally, the equilibrium price is generally said to be stable because at this price, the quantity of goods or services demanded is equal to the quantity of goods or services supplied to the consumers.
Mark Turney owns Creative Corners. He does his banking at United Federal Bank (UFB) in Tucson, Arizona. The amounts in his general ledger for payroll taxes and the employee's withholding of Social Security, Medicare, and federal income tax as of April 15 of the current year show the following: Social Security tax payable (employer and employee), $3,020; Medicare tax payable (employer and employee), $734; FUTA tax payable, $84; SUTA tax payable, $414; and Employees income tax payable, $4,622. Journalize the payment of the Form 941 deposit to UFB and the payment of the SUTA tax to the State of Arizona as of April 15, 20--.
Answer and Explanation:
The journal entries are shown below
On 15-Apr
FICA social Security tax payable Dr. $3,020
FICA medicare tax payable Dr. $734
Federal Income tax payableDr. $4,622
To Cash account $8,376
(Being cash paid)
on 15-Apr
State Unemployment tax payable Dr.$414
to Cash account $414
(being cash paid)
On 15-Apr
Federal Unemployment tax payable Dr. $84
To Cash account $84
(being cash paid is recorded)
Suppose Jacques and Kyoko are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Jacques chooses Right and Kyoko chooses Right, Jacques will receive a payoff of 5 and Kyoko will receive a payoff of 3.
Kyoko
Left Right
Jacques Left 4, 4 6, 3
Right 5, 4 5, 3
The only dominant strategy in this game is for ___________ to choose ______________. The outcome reflecting the unique Nash equilibrium in this game is as follows: Jacques chooses _______________ and Kyoko chooses ______________.
Answer:
The only dominant strategy in this game is for Kyoko to choose Left. The outcome reflecting the unique Nash equilibrium in this game is as follows: Jacques chooses Right and Kyoko chooses Left.
Explanation:
A dominant strategy is strategy that makes a player better off regardless of the strategy of his opponents in a game.
From the payoff matrix, it can be observed that, when Jacques plays Left, Kyoko will also play Left because 4 > 3. But, when Jacques plays Right, Kyoko will still play Left because 4 > 3. This indicated that Kyoko will always play Left no matter what Jacques plays. As a result, the dominant strategy for Kyoko is Left.
On the other hand, when Kyoko plays Left, Jacques will play Right because 5 > 4. But when Kyoko plays Right, Jacques will play Left because 6 > 5. This shows that Jacques does not have any particular strategy that make him better off. As a result, Jacques does not have a dominant strategy.
Based on the above analysis, we have:
The only dominant strategy in this game is for Kyoko to choose Left. The outcome reflecting the unique Nash equilibrium in this game is as follows: Jacques chooses Right and Kyoko chooses Left.
You are to receive the following payments at the end of the following periods:
Year 1 : $250
Year 2: $300
Year 3: $450
The interest rate is 15% per year.
Required:
What is the future value of these cash flows 20 years from now?
Answer: $12,113.14
Explanation:
Find out the future value of each payment 20 years from now then sum up the values.
Year 1:
= 250 * ( 1 + 15%)¹⁹
= $3,557.94
Year 2:
= 300 * ( 1 + 15%)¹⁸
= $3,712.636
Year 3:
= 450 * ( 1 + 15%)¹⁷
= $4,842.5688
Future value of all:
= 3,557.94 + 3,712.636 + 4,842.5688
= $12,113.14
BK Books is an online book retailer that also has 10,000 "bricks and mortar" outlets worldwide. You are a risk-neutral manager within the CorporateFinance Division and are in dire need of a new financial analyst. You onlyinterview students from the top MBAprograms in your area. Thanks to yourscreening mechanisms and contacts, the students you interview ultimately dif-fer only with respect to the wage that they are willing to accept. About 5 per-cent of acceptable candidates are willing to accept a salary of $60,000, while95 percent demand a salary of $110,000. There are two phases to the inter-view process that every interviewee must go through. Phase 1 is the initialone-hour on-campus interview. All candidates interviewed in Phase 1 are alsoinvited to Phase 2 of the interview, which consists of a five-hour office visit.In all, you spend six hours interviewing each candidate and value this time at$750. In addition, it costs a total of $4,250 in travel expenses to interview each candidate. you are very impressed with the first interviewee completing both phases of bk books’s interviewing process, and she has indicated that her reservation salary is $110,000. should you make her an offer at that salary or continue the interviewing process? explain.
Answer: Therefore, we should make her an offer at that salary
Explanation:
Based on the information given in the question,
Lowest salary = $60,000
Highest salary = $110,000
Expected Benefit = 5% × ($110,000 - $60,000) = 5% × $50,000 = $2500
The cost of conducting another interview will be:
= cost of time + cost of travel
= $750 + $4250
= $5000
Since the cost of conducting the additional interview is more than the expected benefit, therefore the interviewee should be hired rather than continuing the interviewing process.
Therefore, we should make her an offer at that salary.
A disadvantage of the line structure is that it
Answer:
Disadvantages of a Line Organization
A line organization can suffer from a lack of specialization. This is because each department manager is concerned only with the activities of his own department. Therefore, employees are skilled in tasks pertaining to their departments alone.
These organizations can overburden a keyman or a few key-men to the extent of their breaking point. Also, in the absence of a staff aid, if a strong man seizes the organization, he can run it arbitrarily. Such arbitrary power can lead to a considerable damage to the organization.
Such organizations usually suffer from a lack of expert advice. If the line manager has trouble making a decision, there is no expert staff that he can turn to.
A line organization is usually rigid and inflexible. In fact, such organizations maintain discipline so rigorously that they can rarely change.
These organizations are based on the autocratic system of management.
The division of work is not based on any scientific plan but on the whims of the manager.
It might stop progress and prevent the unit to work effectively.
Such organizations might also encourage nepotism or favoritism based on relationship or friendship.
I hope this is helpful information.
calls for establishing cost reduction targets for products or services that an organization is currently providing to customers. A. Kaizen costing B. Process reengineering C. Target costing D. Activity-based costing
Answer:
A. Kaizen costing
Explanation:
Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
In Financial accounting, a direct cost can be defined as any expense which can easily be connected to a specific cost object such as a department, project or product. Some examples of direct costs are cost of raw materials, machineries or equipments.
On the other hand, any cost associated with the running, operations and maintenance of a company refers to indirect costs. Some examples of indirect costs are utility bill, office accessories, diesel etc.
Kaizen costing refer to calls for establishing cost reduction targets with respect to products or services that an organization is currently providing to customers. The word "Kaizen" has a Japanese origin and it simply means continuous improvement to a thing.
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $217,500 of total manufacturing overhead for an estimated activity level of 87,000 machine-hours. Required: 1. Assume that during the year the company works only 82,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T-accounts. 2A. Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account.
Question Completion:
Manufacturing Overhead Account
Maintenance $24,000
Indirect materials 8,300
Indirect labor 82,000
Utilities 36,000
Insurance 7,300
Depreciation 65,000
Total costs $222,600
Work in Process
Direct materials $740,000
Direct labor 83,000
Answer:
Harwood Company
1. The amount of overhead cost that would be applied to Work in Process for the year is:
= $205,000.
2. T- Accounts:
Work in Process
Direct materials $740,000
Direct labor 83,000
Applied overhead 205,000
Manufacturing overhead
Maintenance $24,000
Indirect materials 8,300
Indirect labor 82,000
Utilities 36,000
Insurance 7,300
Depreciation 65,000
Applied overhead: WIP $205,000
Underapplied overhead 17,600
Total costs $222,600 $222,600
2A. The amount of underapplied overhead for the year is:
= $17,600
2B. Manufacturing overhead
Maintenance $24,000
Indirect materials 8,300
Indirect labor 82,000
Utilities 36,000
Insurance 7,300
Depreciation 65,000
Applied overhead: WIP $205,000
Underapplied overhead 17,600
Total costs $222,600 $222,600
Explanation:
a) Data and Calculations:
Predetermined overhead rate per machine-hour = $2.50
Estimated total manufacturing overhead = $217,500
Estimated activity level = 87,000
Actual results from production during the year:
Machine-hours worked = 82,000
Applied overhead costs = $205,000 (82,000 * $2.50)
Total manufacturing costs incurred = $222,600
Underapplied overhead = $17,600
Crane Company's accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016 Raw materials inventory $210000 $160000 Work in process inventory 300000 160000 Finished goods inventory 190000 150000 During 2017, $700000 of raw materials were purchased, direct labor costs amounted to $670000, and manufacturing overhead incurred was $640000. The total raw materials available for use during 2017 for Crane Company is
Answer:
$910,000
Explanation:
Given the above information, total raw materials available for use during 2017 is calculated below;
= Beginning raw materials + Purchases
Beginning raw materials = $210,000
Purchases = $700,000
Then,
Total raw materials available for use during 2017 for Crane company
= $210,000 + $700,000
= $910,000
Why the mode of pollination in maize is cross-pollination? Why it is important to cover the ear shoot with a butter paper bag before the emergence of silks? What could be the consequences if a few silks emerge before bagging? (Marks4)
Answer:
Its advisable to cover the ears as shot may enters or fly in air.
Explanation:
The cross-pollination is a type of pollination n which the sperm-laden pollen is a transfer from one cone of flower of one plant. This created flowering in plants. Wheat is a self-pollinated crop and for cross foliation to take place what florets must be opened. This is done to allow for genetic diversity and is only available for short peroid of time. Once the skills are viable they make already to be contaminated with foreign pollen and its vital that ears are bagged before the process. As the consequences could be that pollen might fly away.MC Qu. 116 CWN Company uses a job order costing... CWN Company uses a job order costing system and last period incurred $70,000 of actual overhead and $100,000 of direct labor. CWN estimates that its overhead next period will be $85,000. It also expects to incur $100,000 of direct labor. If CWN bases applied overhead on direct labor cost, its predetermined overhead rate for the next period should be:
Answer:
85%
Explanation:
With regards to the information above, predetermined overhead will be computed as;
Predetermined overhead = (Estimated overhead / Expected labor cost) × 100
Estimated overhead = $85,000
Expected labor cost = $100,000
Then,
Predetermined overhead = ($85,000 / $100,000) × 100
Predetermined overhead = 85%
Therefore, its predetermined overhead rate for the next period should be 85%
2019 2018 2017 2016 2015 Sales $ 282,880 $ 270,800 $ 252,600 $ 234,560 $ 150,000 Cost of goods sold 128,200 122,080 115,280 106,440 67,000 Accounts receivable 18,100 17,300 16,400 15,200 9,000 Compute trend percents for the above accounts, using 2015 as the base year.
Answer:
Sales
2019 Net Sales = 188.59%
2018 Net Sales = 180.53%
2017 Net Sales = 168.4%
2016 Net Sales = 156.37%
Cost of Goods Sold
2019Cost of Goods Sold = 191.34%
2018 Cost of Goods Sold = 182.21%
2017 Cost of Goods Sold = 172.06%
2016 Cost of Goods Sold = 158.87%
Accounts Receivable:
2019 Accounts Receivable = 201.11%
2018Accounts Receivable = 192.22%
2017Accounts Receivable = 182.22%
2016Accounts Receivable = 168.89%
Explanation:
Computation forn trend percents for the above accounts, using 2015 as the base year:
FOR SALES:
2019:
Net Sales = Sales 2019 / Sales 2015*100
Net Sales = $282,880 / $150,000 * 100
Net Sales = 188.59%
2018:
Net Sales = Sales 2018 / Sales 2015*100
Net Sales = $270,800 / $150,000 * 100
Net Sales = 180.53%
2017:
Net Sales = Sales 2017 / Sales 2015*100
Net Sales = $252,600 / $150,000 * 100
Net Sales = 168.4%
2016:
Net Sales = Sales 2016 / Sales 2015*100
Net Sales = $234,560 / $150,000 * 100
Net Sales = 156.37%
COST OF GOODS SOLD:
2019:
Cost of Goods Sold = Cost of Goods Sold 2019 / Cost of Goods Sold 2015 *100
Cost of Goods Sold = $128,200 / $67,000 * 100
Cost of Goods Sold = 191.34%
2018:
Cost of Goods Sold = Cost of Goods Sold 2018 / Cost of Goods Sold 2015 *100
Cost of Goods Sold = $122,080 / $67,000 * 100
Cost of Goods Sold = 182.21%
2017:
Cost of Goods Sold = Cost of Goods Sold 2017 / Cost of Goods Sold 2015 *100
Cost of Goods Sold = $115,280 / $67,000 * 100
Cost of Goods Sold = 172.06%
2016:
Cost of Goods Sold = Cost of Goods Sold 2016 / Cost of Goods Sold 2015 *100
Cost of Goods Sold = $106,440 / $67,000 * 100
Cost of Goods Sold = 158.87%
ACCOUNTS RECEIVABLE:
2019:
Accounts Receivable = Accounts Receivable 2019 / Accounts Receivable 2015 * 100
Accounts Receivable = $18,100 / $9,000 * 100
Accounts Receivable = 201.11%
2018:
Accounts Receivable = Accounts Receivable 2018 / Accounts Receivable 2015 * 100
Accounts Receivable = $17,300 / $9,000 * 100
Accounts Receivable = 192.22%
2017:
Accounts Receivable = Accounts Receivable 2017 / Accounts Receivable 2015 * 100
Accounts Receivable = $16,400 / $9,000 * 100
Accounts Receivable = 182.22%
2016:
Accounts Receivable = Accounts Receivable 2016 / Accounts Receivable 2015 * 100
Accounts Receivable = $15,200 / $9,000 * 100
Accounts Receivable = 168.89%
Avery Company has two divisions, Polk and Bishop. Polk produces an item that Bishop could use in its production. Bishop currently is purchasing 26,000 units from an outside supplier for $16 per unit. Polk is currently operating at less than its full capacity of 630,000 units and has variable costs of $9 per unit. The full cost to manufacture the unit is $12. Polk currently sells 460,000 units at a selling price of $18 per unit.
a. What will be the effect on Avery Company’s operating profit if the transfer is made internally?
b. What is the minimum transfer price from Polk’s perspective?
c. What is the maximum transfer price from Bishop’s perspective?
Answer:
a. The effect is that Avery Company’s operating profit will increase by $182,000 if the transfer is made internally.
b. Minimum transfer price = $9
c. Maximum transfer price from Bishop’s perspective = $16.
Explanation:
a. What will be the effect on Avery Company’s operating profit if the transfer is made internally?
To determine this, fixed cost is ignored because it considered irrelevant. Therefore, we have:
Profit per unit = Purchase price from outside - Variable cost of production internally = $16 - $9 = $7
Total increment in operating profit = Current purchase unit of Bishop * Profit per unit = 26,000 * $7 = $182,000
Therefore, Avery Company’s operating profit will increase by $182,000 if the transfer is made internally.
b. What is the minimum transfer price from Polk’s perspective?
Since Polk is currently operating at less than its full capacity, this implies that it will not incur additional fixed cost to produce current purchase units of Bishop. Therefore, only its variable cost of $9 will have to recovered. By implication, we have:
Minimum transfer price = Variable cost = $9
c. What is the maximum transfer price from Bishop’s perspective?
Any price that is higher than $16 at which Bishop is currently purchasing from an outside supplier will result in a loss for Bishop and the increment profit of $182,000 will be lost by Avery Company. This therefore implies that:
Maximum transfer price from Bishop’s perspective = Price at which Bishop is currently purchasing from an outside supplier = $16
You invested $5,000 in the stock market one year ago. Today, the investment is valued at $5,500. What return did you earn? What return would you suffer next year for your investment to be valued at the original $5,000?A. 10%, -9.09%, respectivelyB. -10%, +9.09%, respectivelyC. 110%, -10%, respectivelyD. 110%, -9.09%, respectively
Answer:
A
Explanation:
Rate of return in one period = (value in year 1 / initial value) - 1
(5500 / 5000) - 1 = 0.1 = 10%
(5000 / 5500) - 1 = -9.09%
Gabbe Industries is a division of a major corporation. Last year the division had total sales of $32,948,550, net operating income of $4,069,146, and average operating assets of $9,027,000. The company's minimum required rate of return is 22%.
Required:
a. What is the division's margin? (Round your percentage answer to 2 decimal places.)
b. What is the division's turnover? (Round your answer to 2 decimal places.)
c. What is the division's return on investment (ROI)? (Round percentage your answer to 2 decimal places.)
Answer:
a. Division's margin = Net operating income / Total sales
Division's margin = $4,069,146 / $32,948,550
Division's margin = 0.1235000
Division's margin = 12.35%
b. Division's turnover = Total sales / Average operating assets
Division's turnover = $32,948,550 / $9,027,000
Division's turnover = 3.65 times
c. Division's return on investment = Division margin * Division turnover
Division's return on investment = 12.35% * 3.65 times
Division's return on investment = 45.08%
Many market participants believe that sell-side analysts are too optimistic in their recommendations to buy stocks, and too slow to recommend sells. What factors might explain this bias?
Answer:
They are related to Brokerage firms Brokerage firms issuing stocks will always encourage investors to buy rather than sell off their stocks.Explanation:
Sell-side analysts mostly work for various brokerage firms hence the reason why they are too optimistic in their recommendations to buy stocks while they are also too slow to recommend sells .
And Brokerage firms will always encourage investors to buy their shares or stocks ( buy-side) instead of selling off their shares or stocks
Assume that a company pays a 5% sales commission Also, assume the job cost sheet for Job X shows that (1) it used 18 direct tabor-hours and incurred direct materials and direct labor charges of $500 and $360, and (2) its unit product cost is $27.35. If Job X contained 40 units, then what is the plantwide predetermined overhead rate per direct labor-hour?
a. $15.00
b. $60.78
c. $13.00
d. $47.78
Answer:
c. $13.00
Explanation:
The computation of the plantwide predetermined overhead rate is given below;
Given that
Direct labor hour used = 18
Direct material cost = $500
Direct labor cost = $360
Unit product cost = $27.35
So,
Total cost of Job = Number of unit × Unit product cos
= 40 × 27.35
= $1,094
Now
Total cost of Job = Direct material cost + Direct labor cost + Overhead applied
1,094 = 500 + 360 + Overhead applied
Overhead applied = $234
Now
Overhead applied = Direct labor hour used × Plantwide predetermined overhead rate
234 = 18 × Plantwide predetermined overhead rate
Plantwide predetermined overhead rate = $13 per direct labor hour
The plantwide predetermined overhead rate per direct labor-hour is $13 per DLH
Given Information
Direct labor hour used = 18
Direct material cost = $500
Direct labor cost = $360
Unit product cost = $27.35
Total cost of Job = Number of unit × Unit product cost
Total cost of Job = 40 × 27.35
Total cost of Job = $1,094
Total cost of Job = Direct material cost + Direct labor cost + Overhead applied
1,094 = 500 + 360 + Overhead applied
Overhead applied = $234
Overhead applied = Direct labor hour used × Plantwide predetermined overhead rate
234 = 18 × Plantwide predetermined overhead rate
Plantwide predetermined overhead rate = $13 per direct labor hour
Hence, the plantwide predetermined overhead rate per direct labor-hour is $13 per DLH.
Therefore, the Option C is correct.
Read more about overhead rate
brainly.com/question/24516871
Record the journal entry for Sales and for Cash Over and Short for each of the following separate situations.a. The cash registerâs record shows $420 of cash sales, but the count of cash in the register is $430.b. The cash registerâs record shows $980 of cash sales, but the count of cash in the register is $972.
Answer and Explanation:
The journal entry is shown below:
Cash $430
To Sales revenue $420
To Cash over and short $10
(Being cash is recorded)
Here cash is debited as it increased the assets and credited the sales as it also increased the revenue
Cash $972
Cash over and short $8
To Sales revenue $980
(being cash is recorded)
Here cash is debited as it increased the assets and credited the sales as it also increased the revenue
Glen Pool Club, Inc., has a $150,000 mortgage liabilty. The mortgage is payable in monthly installments of $1,543 , which include interest computed at an annual rate of 12 percent (1 percent monthly). Prepare a partial amortization table showing (1) the original balance of this loan, and (2) the allocation of the first two monthly payments between interest expense and the reduction in the mortgage`s unpaid balance. Prepare the journal entry to record the second monthly paymment. Will monthly interest increase, decrease or stay the same over the life of the loan? Explain.
Answer:
Glen Pool Club, Inc.
1. Monthly Pay: $1,542.92
2. Monthly Amortization Schedule
Monthly Amortization Schedule
Date Beginning Balance Interest Principal Ending Balance
1 7/2021 $150,000.00 $1,500.00 $42.92 $149,957.08
2 8/2021 $149,957.08 $1,499.57 $43.35 $149,913.73
3. Journal Entry:
Debit Interest $1,499.57
Debit Mortgage Liability $43.35
Credit Cash $1,542.92
To record the second monthly payment.
4. Monthly interest will continue to decrease over the life of the loan because part of the principal is being repaid with each monthly payment. Therefore, the next monthly balance will reduce. It is with this monthly balance that the interest for the month is computed. So, interest will continue to decrease.
Explanation:
a) Data and Calculations:
Mortgage liability = $150,000
Monthly installment payment = $1,543
Annual interest rate = 12%
Monthly Pay: $1,542.92
Home Price 150000
Down Payment 0 %
Loan Term 30 years
Interest Rate 12
Calculate
Monthly Pay: $1,542.92
Total of 360 Mortgage Payments $555,450.80
Total Interest $405,450.80
A company has annual sales of $32,000 and accounts receivables of $2,200. The gross profit margin is 31.3%. The receivable days estimated from the data above is ______.
Answer: 80.17 days
Explanation:
The Receivable days estimated is calculated by the formula:
= Accounts receivable * 365 / (Annual sales * Gross profit margin)
= 2,200 * 365/ (32,000 * 31.3%)
= 2,200 * 0.03644169329
= 80.17 days
Mawson Lumber uses the high–low method to estimate electricity cost, which varies in relation to machine hours. Based on the following data, how would the cost function be stated if ‘X' is the number of machine hours? Electricity expense Machine hours June $495 410 July $500 400 August $750 900 September $610 500 Group of answer choices $525 + $0.35 X $300 + $0.50 X $500 + $0.50 X $470 + $0.35 X
Answer:
Part 1
The electricity cost, which varies in relation to machine hours is $0.50
Part 2
The Cost function will be :
$300 + $0.50 X
Explanation:
High-low method is used to separate the variable and fixed cost element of a mixed cost or semi variable expense.
Step 1 : Determine the variable cost
Variable Cost = ($750 - $500) ÷ (900 - 400)
= $0.50
Step 2 : Determine the fixed cost
Total Cost = Variable Cost + Fixed Cost
hence,
Fixed Cost = Total Cost - Variable Cost
using the high point to substitute in the formulae we get :
Fixed Cost = $750 - ($0.50 x 900)
= $300
thus,
Total Cost = $300 + $0.50 x
Lập danh mục chi phí hoạt động của 1 toà nhà cho thuê hạng C
Chi phí hoạt động là chi phí liên tục để duy trì và duy trì hoạt động đầu tư bất động sản cho thuê. Nói cách khác, chúng là những chi phí ảnh hưởng đến hoạt động hàng ngày của khoản đầu tư và được coi là cần thiết để duy trì dòng doanh thu.
Inventory which originally cost 50.0 is sold for 70.0 in cash. Which answer best describes how this transaction would be reflected in the company's balance sheet
Question Completion with Options:
a. Inventory decreases 50.0, cash increases 70.0, retained earnings increases 20.0
b. Cash increases 20.0, sales increases 70.0, inventory decreases 50.0
c. Retained earnings decreases 50.0, inventory decreases 50.0, retained earnings increases 70.0, accounts receivable increases 70.0
d. Inventory decreases 50.0, sales increase 70.0, cash increases 70.0, accounts payable decreases 50.0
Answer:
In the company's balance sheet:
a. Inventory decreases 50.0, cash increases 70.0, retained earnings increases 20.0
Explanation:
a) Data and Analysis:
Cash $70 Sales Revenue $70
Cost of goods sold $50 Inventory $50
b) In the company's balance sheet, the net effect will be an increase in the cash balance by $70 and a decrease of the ending inventory by $50. These two accounts are balanced by an increase in Retained Earnings, which are adjusted from the income statement, in the sum of $20 ($70 - $50).
The transactions which would be reflected in the balance sheet of the company are: Inventory decreases 50.0, cash increases 70.0, and retained earnings increases 20.0.
What is a balance sheet?A balance sheet is a financial statement that lists the assets and liabilities of a corporation at a certain point in time.
It is one of the three primary financial statements—the other two being the income statement and cash flow statement—that are used to assess a company's performance.
Information and analysis
Cash $70 $70 in sales revenue$50 was spent on the goods. $50 in inventoryThe net impact on the company's balance sheet will be an increase in cash by $70 and a reduction in ending inventory by $50.Retained Earnings are raised by $20 ($70 - $50), which is modified from the income statement in order to balance these two accounts.Thus, above is the amount that is to be reflected in the company balance sheet.
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Use the model developed in Chapter 3 and assume that consumption does not depend on the interest rate. Holding other things constant, when the government lowers taxes on business investment, thus increasing investment demand, the quantity of investment: Group of answer choices and the interest rate are both unchanged. increases and the interest rate rises. decreases and the interest rate rises. is unchanged and the interest rate rises.
Answer: increases and the interest rate rises.
Explanation:
As a result of the increase in a demand for investment, entities will borrow more money from financial institutions in order to undertake these investments.
Investments will therefore rise as a result. Unfortunately, due to the increase in demand for loanable funds from financial institutions, interest rates will rise as well to show that demand is increasing faster than supply of loanable funds as posited by the law of demand and supply.
In 2007, Joe Gebbia and Brian Chesky realized they could not afford the rent on their pricey San Francisco apartment, so they decided to put an air mattress in their living room and offer people an alternative to an expensive hotel room. This is the story of how Airbnb got started. In other words, Airbnb began when Gebbia and Chesky ________; the company grew because it ________.
a. identified their passions; was technologically based broke the law; successfully lobbied to get the laws changed.
b. studied consumer complaints; was based on idealism.
c. sought to put their competitors out of business; was based on their desire to change the world.
d. identified a problem or frustration; identified an opportunity or need.
Answer:
Here the correct option is (d) identified a problem or frustration; identified an opportunity or need.
Explanation:
Identified a problem or frustration; identified an opportunity or need. Airbnb began when Gebbia and Chesky identified a drag or frustration; the corporate grew because it identified a chance or need. that they had a drag of not having enough money to pay the rent, and that they identified a chance or need in letting strangers live there which they will afford, unlike an upscale bedroom.
Although neither ________ nor the ________ is officially set by the Federal Open Market Committee, decisions concerning these policy tools are effectively made by the committee. A. margin requirements; discount rate B. margin requirements; federal funds rate
Answer:
Although neither THE RESERVE REQUIREMENTS nor the DISCOUNT RATE is officially set by the Federal Open Market Committee, decisions concerning these policy tools are effectively made by the committee.
Explanation:
The FED's Board of Governors sets the reserve requirements and the discount rate that must be followed by banks in the United States. The board of directors and the federal open market committee work coordinately. It is like the right doing something that is influenced by the actions of the left hand.
Many economists oppose a constitutional amendment that would require a balanced budget for the federal government because it would probably make the business cycle more volatile.
a. True
b. False
Answer:
The statement is False.
Explanation:
What is a constitutional balanced budget amendment?The balanced budget amendment's requirement that total government spending cannot exceed total receipts collected in the same year has far-reaching ramifications for Social Security.
What is Balanced Budget?A balanced budget is one in which total revenues equal or exceed total costs. After a full year of revenues and expenses have been incurred and recorded, a budget can be declared balanced. Budget deficits, according to proponents of a balanced budget, burden future generations with debt.
Example of Balanced Budget-If Michael and Jessica earn $75,000 per year but spend only $70,000, they have a balanced budget because their expenses are equal to or less than their income. They can use the extra $5,000 in their budget to pay off debt or meet their savings goals in this situation.
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Description Term or Phrase 1. Examines whether financial statements are prepared using GAAP. 2. Procedures set up to protect company property and equipment, ensure reliable accounting, promote efficiency, and encourage adherence to policies. 3. A less expensive and more effective means to stop fraud. 4. Three factors push a person to commit fraud: opportunity, pressure, and rationalization. 5. Beliefs that distinguish right from wrong.
Answer:
1. Audit
2. Internal control
3. Prevention
4. Fraud triangle
5. Ethics
Explanation:
1. Audit: it involves the process of examining whether financial statements are prepared using the Generally Accepted Accounting Principles (GAAP).
2. Internal control: they are procedures set up to protect company property and equipment, ensure reliable accounting, promote efficiency, and encourage adherence to policies.
Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.
The main purpose of internal controls is to guarantee that loss is eliminated by ensuring that there is an accurate and reliable accounting system.
3. Prevention: it's a less expensive and more effective means to stop fraud.
4. Fraud triangle: three factors push a person to commit fraud: opportunity, pressure, and rationalization.
5. Ethics: beliefs that distinguish right from wrong.
1. Generally accepted accounting principles (GAAP), the accepted standards for financial reporting, are examined to see whether the financial statements were prepared in accordance with them.
2. Internal controls are safeguards implemented by a business to protect its resources, ensure correct accounting, promote efficiency, and encourage adherence to policies. They help reduce risk and protect resources for the business.
3. Cost-effective prevention: This idea emphasizes fraud prevention strategies that are both less expensive and more successful. It focuses on the application of effective techniques to identify and discourage fraudulent activity within an organization.
4. According to the fraud triangle, opportunity, pressure and rationalization are the three elements that can lead to fraudulent behavior. When these factors come together, people may be more likely to commit fraud.
5. Ethical Values: Moral standards are the ideas and precepts that help people to decide what is right and what is wrong. They act as a moral guide for choices and mold the behavior of people and organizations by promoting integrity and accountability.
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