Complete Question:
Collegiate Rings produces class rings. Its best-selling model has a direct materials standard of 8 grams of a special alloy per ring. This special alloy has a standard cost of $65.40 per gram. In the past month, the company purchased 8,700 grams of this alloy at a total cost of $567,240. A total of 8,300 grams were used last month to produce 1,000 rings. Read the requirements. Requirement 1. What is the actual cost per gram of the special alloy that Collegiate Rings purchased last month? (Round your answer to the nearest cent.) The actual cost per gram of the special alloy that Collegiate Rings purchased last month is $
Answer:
Collegiate Rings
The actual cost per gram of the special alloy that Collegiate Rings purchased last month is $65.20
Explanation:
Calculations:
Actual Cost per gram of special alloy = Total Actual Cost/Total Actual Quantity
= 567,240/8,700 grams
= $65.2
This value represents the cost of the special alloy per gram. It is obtained as calculated above. Price or cost per unit is always equal to the actual cost divided by the total quantity. The actual cost will be equal to the price charged by the supplier less any discounts or special allowances.
1. Managed care has caused the U.S. health care system to:
A. Advance its high-tech capabilities
B. Continuously monitor the efficiency and effectiveness of the care delivered
C. Address the problems of uninsured populations
D. Consider the portability of health insurance
Lego Company has used the FIFO method since it began operations in 2023. Lego changed to the weighted average method in 2026. The change was justified. In its 2026 financial statements, Lego included comparative statements for 2025 and 2024. The following are the year-end inventory balances under the FIFO and weighted average methods.
Year FIFO Weighted Average
2023 $108,000 $90,000
2024 $134,000 $122,000
2025 $166,000 $140,000
What adjustment should be made to Cost of Goods Sold retrospectively for the year ended December 31, 2025?
a. $22,000 decrease
b. $8,000 decrease
c. $14,000 increase
d. $18,000 increase
e. $24,000 increase
Answer:
c. $14,000 increase
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Prepare a statement of revenues, expenses, and changes in fund net position. The net position balance at the beginning of the period was $60,129.
Complete Question:
The Town of Elizabeth operates the old train station as an enterprise fund. The train station is on the national register of historic buildings. Since the town has held the building for such a long time, the Central Station Fund has no long-term debt. The only capital assets recorded by the Central Station Fund are machinery and equipment. Businesses rent space in the building and the town provides all services related to the operation and maintenance of the building. Following is information related to the fund's 2017 operating activities:
1. Rental income of $94,444 was accrued. Subsequently, cash in the amount of $90,210 was received on accounts.
2. Cash expenses for the period included: administrative services, $25,205; maintenance and repairs, $72,882; supplies and materials, $7,792 and utilities $30,124.
3. The Central Station Fund received a $60,000 transfer of funds from the General Fund.
4. Adjustments were made for depreciation ($3,519) and for uncollectible accounts ($667).
5. At the end of the period, nominal accounts were closed.
Required: (b only)
Prepare a statement of revenues, expenses, and changes in fund net position. The net position balance at the beginning of the period was $60,129.
Answer:
The Central Station Enterprise Fund
Statement of Revenues, Expenses, and Changes in Fund Net Position for the year ended December 31, 20XX:
Rental Income $90,210
Expenses:
Administrative services 25,205
Maintenance & Repairs 72,882
Supplies & Material 7,792
Utilities 30,134
Total Expenses $136,193
Excess Expenses (45,983)
Transfer from
General Funds 60,000
Beginning balance 60,129
Ending Balance $74,146
Explanation:
The Central Station Enterprise Fund's statement of revenues, expenses, and changes in fund balances is the governmental funds' income statement. It tracks the inflow and outflow of resources. The statement does not only report revenues and expenses, it also reports inflows and outflows of resources like the transfer of funds received from the General Fund, including the beginning fund balance. Together, these will result to an ending fund balance.
What industries are presented in your community. How would you define the economic health of your community based on the industries presents?
Answer:
The healthcare industry can be explained as the medical industry or healthcare industry. It represent to the health economy.
Explanation:
The industries that are represented in the community are the combination of integration aggregation sectors. These sectors provide the economic system to the society or community. For finance, the healthcare industries ae very important. These care the building blocks of economy of a country. The healthcare industry consists of Hospitals, mental and dental practice activities, midwives, nurses, psychologist, psychiatrist. These industries as grow as the people get employment. Healthcare industry is the big tycoon profession that help government in their economic growth. Many employment will occur due to these industries.
Herrindale Mart borrows $420,000 on July 1 with a short-term loan that has an annual interest rate of 5% which is payable on the first day of each subsequent quarter. What will Herrindale Mart need to accrue on August 31, assuming that no accrual has yet been made
Answer:
August 31, 202x (assuming a 360 day year)
Dr Interest expense 1,750
Cr Interest payable 1,750
Explanation:
The journal entry to record the loan:
July 1 , 202x
Dr Cash 420,000
Cr Notes payable 420,000
The journal entry to record accrued interest on the loan:
August 31, 202x (assuming a 360 day year)
Dr Interest expense 1,750
Cr Interest payable 1,750
Interest expense = $420,000 x 5% x 2/12 = $1,750
A budget which estimates the types of selling expenses expected during the budget period is called a]
Answer:
selling expense budget
Explanation:
Selling expenses Budget in finance can be described as the budget that are needed to make the products reach the buyers/ consumers. This selling expenses Budget can range from the salary of the workers that are responsible for making the goods to reach the consumer s, the money paid on advertisement for the goods, all the money spent on promotion and others.
It should be noted that that selling expenses Budget gives estimates of all these afformentioned expenses.
A project is expected to generate annual revenues of $119,300, with variable costs of $75,400, and fixed costs of $15,900. The annual depreciation is $3,950 and the tax rate is 34 percent. What is the annual operating cash flow?
Hint: Revenue - FC - VC - Depr. = EBIT. Taxes = EBIT x tax rate. OCF = EBIT + Depreciation - Taxes (same as chapter 2).
a. $61,143
b. $28,000
c. $19,823
d. $31,950
e. $45,243
Answer:
c. $19,823
Explanation:
For the computation of annual operating cash flow first we need to find out the EBIT and Tax which is shown below:-
EBIT = Revenue - Variable cost - Fixed cost - Depreciation
= $119,300 - $75,400 - $15,900 - $3,950
= $24,050
Tax = EBIT × Tax rate
= $24,050 × 34%
= $8,177
Operating cash flow = EBIT + Depreciation - Taxes
= $24,050 + $3,950 - $8,177
= $19,823
Hence, the correct option is c.
Name the 3 types of MPA programs offered at Mccombs:
Answer:
Traditional MPA
Integrated MPA
ECON-MPA
Explanation:
The details of the three types of MPA program are mentioned below:
Traditional MPA
This is a one year program (Minimum) and is available to those who hold bachelor's degree in any discipline. This program does not require any prior work experience.
Integrated MPA
Program designed for McCombs undergraduates. in this pathway students earn their Bachelors and Masters (MPA) in just five years, saving them both time and money.
ECON-MPA
This program is developed for current UT undergraduates in economics. This helps them earn a Bachelors degree in economics and MPA degree within their period of study.
The owner of a variable annuity has all of the following rights EXCEPT the right to vote:_________
a. for the Board of Trustees
b. for dissolution of the trust
c. to change the separate account's investment objective
d. for the sales charge imposed by the trust
Answer:
for the sales charge imposed by the trust
Explanation:
A variable annuity has a part of it to be investment and another part as insurance. The gains from it are tax deferred till the money is withdrawn.
The owner of such has the right to vote for options a, b,c that is the Board of Trustees, for trust dissolution, to change in investment objectives. But they cannot vote for for the sales charge imposed by the trust.
A monopolist sells in two geographically divided markets, the East and the West. Marginal cost is constant at $50 in both markets. Demand and marginal revenue in each market are as follows:
QE = 900 - 2PE
MRE = 450 - QE
QW = 700 - PW
MRW = 700 - 2QW
a. Find the profit-maximizing price and quantity in each market
b. In which market is demand more elastic?
Answer:
A) QE = 400, PE = 250
QW = 325, PW = 375
b) east market has more elastic market demand
Explanation:
Given data :
Marginal cost = $50 ( both markets )
demand and marginal revenue in each market are given differently
a) Determine/find the profit-maximizing price and quantity in each market
For east market :
50 = 450 - QE
hence QE = 450 -50 = 400
since QE = 400 ( quantity for east market )
400 = 900 - 2PE
PE = 250 ( PROFIT maximizing price for east market )
For west market
50 = 700 - 2QW
Hence QW = 325
since QW = 325
325 = 700 - pw
PW = 375
B) The market in which demand is more elastic is the east market because the quantity demanded is higher and also the profit maximizing price is lower as well
In 2019, Crane Company sold 2000 units at $600 each. Variable expenses were $420 per unit, and fixed expenses were $240000. What was Crane’s 2019 net income?
Answer:
Crane's 2019 Net income is $120,000
Explanation:
Given the above information, we can get Crane's net income as shown below.
Sales $1,200,000
(2,000 units × $600)
Less: Variable expenses ($840,000)
(2,000 units × $420)
Contribution margin $360,000
Less: Fixed expenses ($240,000)
Net income. $120,000
If the liabilities of a business increased $105,000 during a period of time and the Stockholders' Equity in the business decreased $45,000 during the same period, the assets of the business must have
Answer:
Assets increased by $60,000
Explanation:
Accounting information : Stockholders' Equity = Assets - Liabilities
Assets = Stockholders' Equity + Liabilities
$105,000 - $45,000 = $60,000
Assets increased by $60,000
Calculate the amount realized at the end of 7 years through annual deposits of $1000 at 10% compound interest
Answer:
$9,487.17
Explanation:
The computation of the amount realized at the end of 7 years is shown below;
It can be determined by two methods, first is this one
Future value = $1,000 × 1.10^6 + $1,000 × 1.10^5 + … + $1,000 × 1.10 + $1,000
= $1,000 × (1.10^7 - 1) ÷ 0.10
= $1,000 × 9.48717
= $9,487.17
The second one is shown in the attachment
In both methods, the answers are the same
Stock X is selling for $40 a share. An American put option on this stock with a strike price of $48 is trading at $10 per share.
a. the put is in the money
b. the put is out of the money
c. you can make arbitrage profit by buying the put and exercising it immediately
d. a and c
Answer:
a. the put is in the money
Explanation:
Given that
The Selling price of stock x = $40
Strike price = $48
And, the trading per share = $10
Based on the above information
As we know that the put option is the option in which there is a right to sell the particular asset at a particular price on some future date
As we can see that the market price is lower than the strike price so this is the put within the money
Hence, the correct option is a.
Review the critical external and internal environmental factors that have strategic implications in the future for Coca Cola1. Are Coca Cola recipients or creators of the market for their products? Why? How is this factored into the decisions of each firm?2. What recommendations can you make to the task force to enhance the effectiveness of Coke's strategy or change the strategic approach for better results?
Answer with Explanation:
Requirement 1.
First of all we will do SWOT analysis to develop an understanding of the company.
The Strengths of Coca Cola are as under:
Great brand recognition worldwideHighly valued company worldwideOperational in 200 countries across the globeLargest market share in cold beveragesHuge Customer FanSo many acquisition in last 10 yearsThe weaknesses of the company are as under:
Less diversified productsNot recommended by the doctors because of its adverse impact on health. Well known for its environmental issues which includes devastating effect on environment, violation of worker's rights in many countries, usage of water in different communities is so much high that it effects the local farmers.Aggressive competition with Pepsi has effected Coca Cola business operations and profits.The opportunities that must be exploited by the Coca Cola company are as under:
Diversification of products will help the company to grow its market share and improved profits.Specially focus on sales and marketing department in countries which are near the equator because the consumption of cold drinks here is more than countries with cold climate. Package beverages with environmentally friendly material to abandon single use plastic.Improving Supply chain management will increase benefits drawn because of its presence in almost 200 countries.The threats that Coca Cola faces is as under:
Environmental Issues which includes use of single use plastics, water controversy, etc.Raw material resourcing uncertaintyIndirect competitions which includes thousands of Local players in different states across the globe.Requirement 2.
No doubt they are the creators of the market. They set principles for aggressive marketing that was very helpful in gaining market share due to product design that encourage customer to buy, Brand design, Logo and Font, Simplicity of bottles, etc.
These factors are incorporated in each firm's decision making programs and is the reason why it enables the product acceptance by a wide majority of customers. Though the marketing strategy for every single product is different and is largely dependent on the location and availability of the product.
Requirement 3.
Following are some recommendations to Coca Cola Company:
Coca Cola Company must step into food market not because it would help in managing its supply chain but it will also help in building a more diversified product ranges.Infrastructure development which would include franchises of Coca cola that will help it to develop McDonald's like offerings of it own that only offers Coca Cola products. This will increase the market share of Coca Cola company increase its brand recognition as well. Furthermore, it can also add value to its franchises by use of special offers that would increase its franchise sales.The company must resolve its environmental issues to increase its share value as nowadays Dow's and S & P adds value to market price of shares of companies that are environmental friendly. Marketing and distribution team of gulf countries must be given additional budget to increase their sales as their is great demand of products here.Coca cola must introduce health benefiting drinks that they can recommend children to taste as frequent consumption of cold drinks are not recommended by the doctors.A bond with par value of $1,000 has an annual coupon rate of 4.8% and currently sells for $970. What is the bond’s current yield?
Question:
A bond with par value of $1,000 has an annual coupon rate of 4.8% and currently sells for $970. What is the bond’s current yield?
Assuming a maturity period of 10 years (Note the tutor added this)
Answer:
Yield to Maturity =5.18%
Explanation:
The Yield to maturity is the discount rate that equates then price of the bonds to the present of cash inflows expected from the bond
The yield on the bond can be determined as follows using the formula below:
YTM = C + F-P/n) ÷ 1/2 (F+P)
YTM-Yield to maturity-
C- annual coupon
F- Face Value
P- Current Price
n- years to maturity
YTM-?, C- 4.8%× 1000 =60, Face Value - 1,000, P-970, n- 10
YTM = (48 + (1000-970)/10) ÷ ( 1/2× (1000 + 970) )
YTM = 0.0518 × 100 = 5.18%
Yield to Maturity =5.18%
g Based on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of $99,000, fixed costs of $30,000, and operating income of $36,000. Based on this information, the budgeted amount of contribution margin for 20,000 units would be:
Answer:
Total contribution margin= $60,000
Explanation:
First, we need to calculate the actual contribution margin:
Contribution margin= net income + fixed costs
Contribution margin= 36,000 + 30,000= $66,000
Now, the unitary contribution margin:
Unitary contribution margin= 66,000/22,000= $3
Finally, the total contribution margin for 20,000 units:
Total contribution margin= 3*20,000= $60,000
A customer has sold short 100 shares of ABC stock in a margin account. ABC declares and pays a 10% stock dividend. How many shares must be purchased to close out the short position?
A. 90
B. 100
C. 105
D. 110
Answer:
Option D, 110, is the right answer.
Explanation:
Total number of shares that short = 100 share
The rate of dividend that ABC declares and pays = 10%
Now we have to find the number of shares that should be purchased in order to close out the short position.
Number of shares = 100 × 110%
Number of shares = 100 × (110 / 100)
Number of shares = 110
Thus, option D 110 is correct.
ABC, Inc. is a calendar-year corporation. Its financial statements for the years 2021 and 2020 contained errors as follows:
2021 2020
Ending inventory $9,000 overstated $24,000 overstated
Depreciation expense $6,000 understated $18,000 overstated
Assume that the proper correcting entries were made at December 31, 2020. By how much will 2021 income before taxes be overstated or understated?
A) $15,000 overstated B) $ 3,000 understated
C) $ 6,000 overstated D) $ 3,000 overstated
Answer: A) $15,000 overstated
Explanation:
Ending Inventory is subtracted from Cost of Goods sold so an overstated Ending Inventory would mean a smaller Cost of Goods sold and hence an overstated Income.
An Understated Depreciation amount would have the same effect because Depreciation is an expense so understating it would mean less expenses subtracted from Income leading to an overstated income.
As both of them will overstate income, the total overstatement would be;
= 9,000 + 6,000
= $15,000
Novak Corporation has the following balances at December 31, 2017. Projected benefit obligation $2,621,000 Plan assets at fair value 2,047,000 Accumulated OCI (PSC) 1,031,000 What is the amount for pension liability that should be reported on Novak's balance sheet at December 31, 2017
Answer:
$574,000
Explanation:
Calculation for the amount for pension liability that should be reported on Novak's balance sheet at December 31, 2017
Using this formula
Pension liability=Projected benefit obligation - Plan assets
Let plug in the formula
Pension liability=$2,621,000-2,047,000
Pension liability=$574,000
Therefore the amount for pension liability that should be reported on Novak's balance sheet at December 31, 2017 will be $574,000
The PW of five independent projects have been calculated at an MARR of 12% per year. Select the best combination at a capital investment limit of (a) $25,000, (b) $49,000, and (c) unlimited.
Initial Life,
Project Investment, Years PW,
S -15,000 6 8,540
A - 26,000 8 12,100
M -10,000 6 3,000
E 25,000 4 10
H -40,000 12 15350
Answer:
Project Investment Years PW,
S -15,000 6 8,540
A - 26,000 8 12,100
M -10,000 6 3,000
E 25,000 4 10
H -40,000 12 15350
I assume that the present worth of the projects is their net present value (NPV), so all the projects have a positive NPV. I believe that there is a mistake on project E since the initial outlay is generally negative, no one will pay you to start a project, although it is also the project with the lowest NPV.
a) If I had $25,000, I would invest in projects S and M which will increase my present wealth by $3,000 + $8,540 = $11,540. If something really strange happened and you would actually receive money for starting a project (project E), I would also take it even if its NPV is only $10, since I'm not spending money, instead I'm receiving money.
b) If I had $49,000, I would invest in projects S and A which will increase my present wealth by $8,540 + $12,100 = $20,640. Again, if something really strange happened and you would actually receive money for starting a project (project E), I would also take it.
c) If I had unlimited resources, I would invest in all the projects since they all have positive NPVs.
Job 607 was recently completed. The following data have been recorded on its job cost sheet:Direct Materials $3,405 Direct Labor Hours 50 labor hoursDirect Labor wage rate $13 per labor hourMachine Hours 158 machine hoursThe company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 607 would be:
Answer:
Total cost= $6,267
Explanation:
Giving the following information:
Direct Materials $3,405
Direct Labor Hours 50 labor hours
Direct Labor wage rate $13 per labor hour
Machine Hours 158
The predetermined overhead rate is $14 per machine-hour.
To calculate the total cost, we need to use the following formula:
Total cost= direct material + direct labor + allocated overhead
Total cost= 3,405 + 13*50 + 14*158
Total cost= $6,267
< Back to Assignment Attempts: Average: / 1 2. Introduction to the foreign-currency exchange market In an open economy, why is the supply curve for dollars in the foreign-currency exchange market vertical? Net capital outflow is determined by the real interest rate, not the real exchange rate. Net capital outflow is extremely sensitive to small changes in the real exchange rate. Net capital outflow is determined by real GDP, not the real exchange rate. Net capital outflow equals net exports. Grade It Now Save & Continue Continue without saving
Answer: Net capital outflow is determined by the real interest rate, not the real exchange rate
Explanation:
In the foreign-currency market, the supply of dollars is not dependent on the real exchange rate and so the supply curve will be vertical to indicate this independence by showing inelasticity which means that it is unaffected by the variables in the foreign-currency market.
Supply of dollars is rather dependent on the real interest rate.
This is because dollars get into the world economy (supply of dollars) as a result of investments by Americans into markets abroad in the form of Net Capital Outflow. If American real interest rate is low, Americans will invest in other countries with a higher rate of return thereby pumping more dollars into the world economy.
You purchase one June 70 put contract for a put premium of $4. What is the maximum profit that you could gain from this strategy?
Answer:
$6,600
Explanation:
The payoff arise from put option is max (K - S, 0) - P
Now it would be maximum at S = 0
And, the maximum payoff is
K - 0 - P
= K - P
= 77 - 4
= $66
We assume that for each and every contract the number of shares is 00
So, the maximum profit gained from this strategy is
= $66 × 100 shares
= $6,600
We simply multiplied $66 by the number of shares so that the maximum profit gained could come and the same is to be considered
List and explain how the proportional method works when selling common and preferred stocks for one lump sum amount.
Answer and Explanation:
The proportional method is a method of allocating the fair market value of each security from the lump sum sale on the balance sheet based on the ratio of the value of the security to other securities involved in the sale.
It is calculated : fair market value of security/total lump sum sale
The proportional method is one of the methods used when a company sells in lump sum(usually when a business acquires another) as against when a company sells a particular class of stock such as ordinary stock or preferred stock. Using the proportional method, it is assumed that the fair market value of the classes of stock are known and so the company allocates the ratio of different classes involved on the balance sheet based on each class's fair market value. Another method for accounting for this kind of transaction as in allocating classes of stock from lump sale on the balance sheet is the incremental method
3. Suppose local governments throughout the United States increase their tax on business inventories. What would you expect to happen to U.S. investment? Why?
Answer:
The investment will fall.
Explanation:
The U.S investment will fall because the increase in the tax will reduce its corporate profit and gross domestic investment will fall. Since the primary motive of every firm or company is to earn profit but if their profit decreases then the investor will not invest. Moreover, the company or investor will choose a different country where it can make more profit. Therefore, a rise in tax rate demotivates the investment.
If the local governments increase their tax on business inventories, then, investment will decline.
Basically, when there are increase of tax on business inventories, the country's gross domestic private investment will fall because investor are discouraged to invest.
The gross private domestic investment measure the amount of money that domestic businesses invest within their own country
Hence, the high tax will discourage current and new investors.
In conclusion, If the local governments increase their tax on business inventories, then, investment will decline.
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Assume that the standard cost to make one finished unit includes 1 hour of direct labor at $4 per hour. During March, 11,000 direct labor-hours were worked, 5,250 units of product were manufactured, and total direct labor cost was $40,000.
What is the labor rate variance for April? Select one:
A. $4,000 (U)
B. $2,000 (F)
C. $4,000 (F)
D. $2,000 (U)
Answer:
C. $4,000 F
Explanation:
With regards to the information above,
Direct labor rate variance for April
= (11,000 × $4) - $40,000
= $44,000 - $40,000
= $4,000 F
The following are the 20X2 transactions of the Midwest Heart Association, which has the following funds and fund balances on January 1, 20X2: Unrestricted net assets $ 281,000 Temporarily restricted net assets 87,000 Permanently restricted (endowment) net assets 219,000
1. Had Unrestricted pledges totaling $700,000, of which $150,000 is for 20X3 and uncollectible pledges estimated at 8 percent.
2. Had restricted use grants totaling $150,000.
3. Collected a total of $520,000 of current pledges and wrote off $30,000 of remaining uncollected current pledges.
4. Purchased office equipment for $15,000.
5. Used unrestricted funds to pay the $3,000 mortgage payment due on the buildings.
6. Received interest and dividends of $27,200 on unrestricted investments and $5,400 on temporarily restricted investments. An endowment investment with a recorded value of $5,000 was sold for $6,000, resulting in a realized transaction gain of $1,000. A donor-imposed restriction specified that gains on sales of endowment investments must be maintained in the permanently restricted endowment fund.
7. Recorded and allocated depreciation as follows:
Community services $ 12,000 Public health education 7,000 Research 10,000 Fund-raising 15,000 General and administrative 9,000 8. Had other operating costs of the unrestricted current fund: Community services $ 250,600 Public health education 100,000 Research 81,000 Fund-raising 39,000 General and administrative 61,000 9. Received clerical services totaling $2,400 donated during the fund drive. These are not part of the expenses reported in item 8. It has been determined that these donated services should be recorded.
Required: a. Prepare journal entries for the transactions in 20X2 b. Prepare a statement of activities for 20X2.
Answer:
Midwest Heart Association
1. Journal Entries:
1. Debit Pledges Receivable $700,000
Credit Pledges Revenue $700,000
To record unrestricted pledges received.
1. Debit Uncollectible Expense $56,000
Credit Allowance for Uncollectibles $56,000
To record 8% of uncollectible pledges.
2. Debit Temporarily restricted net assets $150,000
Credit Pledges Receivable $150,000
To record receipt of restricted use grants.
3. Debit Unrestricted net assets $520,000
Credit Pledges Receivable $520,000
To record current pledges collected
3. Debit Allowance for Uncollectible $26,000
Credit Uncollectible Expense $26,000
To record the write-off of $30,000 remaining uncollected pledges.
4. Debit Office Equipment $15,000
Credit Unrestricted net assets $15,000
To record the purchase of office equipment
5. Debit Building Mortgage $3,000
Credit Unrestricted net assets $3,000
To record the payment of mortgage on buildings.
6. Debit Unrestricted net assets $27,200
Debit Temporarily restricted net assets $5,400
Credit Interest and dividends Revenue $32,600
To record the receipt of interest and dividends.
6. Debit Permanently restricted net assets $1,000
Debit Unrestricted net assets $5,000
Credit Sale of Endowment Investment $6,000
To record the sale and gain of endowment investments.
7. Debit Depreciation Expense:
Community services $ 12,000
Public health education $7,000
Research $10,000
Fundraising $15,000
General and administrative $9,000
Credit Accumulated Depreciation $53,000
To record depreciation expense for the year.
8. Debit Other expenses:
Community services $ 250,600
Public health education $100,000
Research $81,000
Fundraising $39,000
General and administrative $61,000
Credit Unrestricted net assets $531,600
To record other expenses.
Debit Clerical services expense $2,400
Credit Donated clerical services $2,400
To record the receipt of donated clerical services.
b. Statement of Activities for the year ended December 31, 20X2:
Revenue:
Pledges $700,000
Interest and dividends 32,600
Sale of Endowments 6,000 $738,600
Depreciation expense:
Community services $ 12,000
Public health education $7,000
Research $10,000
Fundraising $15,000
General & administrative $9,000 53,000
Other expenses:
Community services $ 250,600
Public health education $100,000
Research $81,000
Fundraising $39,000
General and administrative $61,000 531,600
Clerical services expense $2,400
Change in net assets $151,600
Explanation:
a) Data and Calculations
1. Unrestricted net assets
Beginning balance $ 281,000
Pledges receivable 520,000
Office equipment (15,000)
Building mortgage (3,000)
Interest and Dividends 27,200
Sale of Endowment 5,000
Other expenses (531,600)
Ending balance $278,600
2. Temporarily restricted net assets
Beginning balance $ 87,000
Restricted use grants $150,000
Interest and Dividends 5,400
Ending balance $242,400
3. Permanently restricted (endowment) net assets
Beginning balance $ 219,000
Gain from Endowment 1,000
Ending balance $220,000
b) Midwest Heart Association's Statement of Activities is the financial statement that shows the revenues and expenses of the association, including the change in net assets during a period. It is like the income statement of a profit-making entity that shows revenue and expenses. While the excess in revenue over expenses is called net income for a profit-making entity, it is called change in net assets for a non-profit-making organization like Midwest Heart Association.
What is the bullwhip effect and how does it relate to lack of coordination in a supply chain?
Answer:
The bullwhip effect happens when retailers or other members of the supply chain overestimate a sudden increase in demand, and this causes a chain reaction in all the other participants of the supply chain that start requesting higher quantities of goods or materials for production. E.g. the fidget spinner was a very popular fad and its producers probably didn't anticipate how large the demand would be. Once the product became extremely popular, everyone wanted to sell fidget spinners. This caused an increase in the order quantities of all the supply chain. Once the fad faded out, all this momentum stopped and many stores, distributors, wholesalers, and even factories were left with huge unsold stocks of fidget spinners.
When the supply chain is well coordinated, there is little chance for some retailers or distributors to over react and want more product just in case. If your supply is guaranteed, then it would take some extraordinary increase in demand to make you want to increase your purchase orders. But if your supply chain is not well coordinated, you might fear that you will lose a lot of sales and other competitors will make them. Then you get anxious and start ordering large quantities.
On November 1, Year 1, Noble Co borrowed $80,000 from South Bank and signed a 12% six month note payable, all due at maturity. The interest on this loan is stated separately. How much must Noble pay South Bank on May 1, Year 2, when the note matures?
a. $84,000
b. $89,600
c. $82,400
d. $80,000
Answer: answer is not in the option.
Correst answer -Noble must pay South Bank on May 1, Year 2, when the note matures, $84,800
Explanation:
Interest accrued = Principal(amount borrowed) x rate x time
= $80,000 x 12 x 6/12
= $4,800
Amount to be paid on may 1 st the next year (year 2 )=Amount borrowed + interest accrued
= $80,000 + $4,800 = $84,800
Noble must pay South Bank on May 1, Year 2, when the note matures the sum of $84,800