Answer:
$7million understated
Explanation:
Based on the information given the effect on 20x8 COST OF GOODS SOLD will be UNDERSTATED by $7 million reasons been that since the OPENING INVENTORY IS UNDERSTATED by $7 million which means that the COST OF GOODS SOLD will as well be UNDERSTATED by the same amount based on the fact that opening inventory adds to Cost of goods sold.
Swifty Corporation purchased a truck at the beginning of 2020 for $109600. The truck is estimated to have a salvage value of $4100 and a useful life of 123000 miles. It was driven 18000 miles in 2020 and 26000 miles in 2021. What is the depreciation expense for 2020?
a. $37752
b. $22308
c. $16639
d. $15444
Answer:
Annual depreciation= $15,444
Explanation:
Giving the following information:
Purchase price= $109,600
Salvage value= $4,100
Useful life= 123,000
Miles driven 2020= 18,000
To calculate the depreciation expense, we will use the units-of-production method:
Annual depreciation= [(original cost - salvage value)/useful life of production in miles]*miles drive
Annual depreciation= [(109,600 - 4,100)/123,000]*18,000
Annual depreciation= 0.858*18,000
Annual depreciation= $15,444
Narcissistic leaders tend to have which of the following traits that are positively associated with both leader emergence and effectiveness?
A. Agreeableness and creativity.
B. Extraversion and openness to experience.
C. Openness to experience and agreeableness.
D. Agreeableness and extraversion.
E. Creativity and extraversion.
If an agent injures a third party during the course of employment, to what extent should the employer be held liable? Under what circumstances should the agent be held personally liable? Provide an example to illustrate your opinion.
Answer:
The employer will be held liable.
Explanation:
If the external agent brings harm or injury to a third party in the course of an employment, the employer is held liable. When a principal directs an agent to commit for a tort or if the principal is aware of the consequences of carrying the instructions of the agent could cause harm or injure the person, then the principal is liable.
It is called direct liability.
The liability for the intentional tort which is imputed to the principal when the agent acts to further the business of the principal.
The agent is personally liable under the following circumstances :
Foreign principalAgent signs the contract in his own nameNon-existent principal Principal cannot be sued:Undisclosed principalExample :
A credit card company hires a sales person and offers a company van to make sales in that area. The sales person uses the office van to official purposes. But one night, he drove the car to a friend's party and while coming he drove over a pedestrian. In this case, the owner of the company will not be held liable as the sales person uses the company van for his personal use while going out for party with his friends. While causing the accident, the sales person was not not using the office van for official purposes and was not tendering official duties at that time.
state any three examples of non-insurable risks??
Answer:
any three examples of non-insurable risks are:
Residential overland water
War.
Acts of a foreign enemy.
The ogvernment is bound by the acts of its agents committed within the scope of their agents authority, such as express and actual authroity.
A. True
B. False
Answer: True
Explanation:
Express and actual authority refers to the agent's power to act on behalf of a principal, which had been granted by the agreement that already took place between the agent and principal.
It should be noted that government is bound by the acts of its agents which are committed within the scope of their agents authority, like the express and actual authroity.
Therefore, the correct answer is True.
Calculating the price elasticity of supplyJake is a retired teacher who lives in New York City and does some consulting work for extra cash. At a wage of $50 per hour, he is willing to work 7 hours per week. At $65 per hour, he is willing to work 10 hours per week. Using the midpoint method, the elasticity of Jakeâs labor supply between the wages of $50 and $65 per hour is approximately ___ , which means that Jakeâs supply of labor over this wage range is ___ .
Answer:
1.38; Elastic
Explanation:
Calculation to determine the Elasticity of labor supply (E)
Using this formula
Elasticity of labor supply (E) = (Change in hours worked / Average hours worked) / (Change in wage rate / Average wage rate)
Let plug in the formula
Elasticity of labor supply (E) = [(10 - 7) / (10 + 7)] / [$(65 - 50) / $(65 + 50)]
Elasticity of labor supply (E) = (3/ 17) / (15 / 117)
Elasticity of labor supply (E) =0.1765/0.1282
Elasticity of labor supply (E)=1.38
Therefore elasticity of Jakeâs labor supply between the wages of $50 and $65 per hour is approximately 1.38 which means that Jakeâs supply of labor over this wage range is ELASTIC
The concept of market efficiency underpins almost all financial theory and decision models. When financial markets are efficient, the price of a security—such as a share of a particular corporation’s common stock—should be____the present value estimate of the firm’s expected cash flows discounted by its appropriate rate of return (also called the intrinsic value of the stock).
Almost all financial theory and decision models assume that the financial markets are efficient. The informational efficiency of financial markets determines the ability of investors to "beat" the market and earn excess (or abnormal) becomes available. Financial theorists have identified three levels of informational efficiency that reflect what information is incorporated in stock prices.
Consider the following statement, and identify the form of capital market efficiency under the efficient market hypothesis based on this statement.
Current market prices reflect all relevant publicly available information.
This statement is consistent with:_____.
A. Strong-form efficiency.
B. Weak-form efficiency.
C. Semistrong form efficiency.
Consider that there is a semistrong-form of efficiency in the markets.
A pharmaceutical company announces that it has received Federal Drug Administration approval for a new allergy drug that completely prevents hay fever The consensus analyst forecast for the company's earnings per share (EPS) is $4.50, but insiders know that, with this new drug, earnings will increase and drive the EPS to $5.00. What will happen when the company releases its next earnings report?
A. There will be some volatility in the stock price when the earnings report is released: it is difficult to determine the impact on the stock price.
B. The stock price will not change, because the market already incorporated that information in the stock price when the announcement was made.
C. The stock price will increase and settle at a new equilibrium level.
Answer:
sry I don't know the answer
sry
Consider a country in which most of the productive resources are collectively owned by the state. As this country moves toward a system of private property rights, we can expect economic growth to ________ due to a(n) ________ in productivity
Answer:
Increase ; Upward movement along
Explanation:
In simple words, The greater the range of intellectual interests the greater the motivation to labor, preserve, as well as reinvest, because the more efficient the economy's functioning will be. The more efficiently an economy runs, the further development it produces for any given pool of assets, resulting in upward motion of the productivity function.
In the case of an auto accident conflict over which insurance should pay is a common reason for rejection. True False
Answer:
True
Explanation:
When damages exceed the limits defined in the insurance policy, the insurer may deny the claim. This is usually the case when accident is due to negligence of driver. The insurance company may cover partial or none of the claim.
South World has a total debt of $10 million and an annual GDP of $5 million. It currently pays 4% interest on its debt every year. What percentage of annual GDP does interest on the debt represent
Answer: 8.0%
Explanation:
The debt interest it pays is:
= 4% * 10,000,000
= $400,000
Its percentage of annual GDP is:
= 400,000 / 5,000,000 * 100%
= 8.0%
Drew wants to save $2,500 to go to the next World Cup. To the nearest dollar, how much will he need to invest in an account now with 6.25% APR, compounding daily, in order to reach his goal in 4 years
Answer:
195
Explanation:
FV/ (1 + r/m)^nm = pv
FV = Future value
P = Present value
R = interest rate
m = number of compounding
N = number of years
2500 / (1 + 0.0625/365)^365 x 4
2500 / (1.000171) = 2499.57
Cheyenne Corp. had the following transactions during 2017:
1. Issued $220000 of par value common stock for cash.
2. Recorded and paid wages expense of $105600.
3. Acquired land by issuing common stock of par value $88000.
4. Declared and paid a cash dividend of $17600.
5. Sold a long-term investment (cost $5280) for cash of $5280.
6. Recorded cash sales of $704000.
7. Bought inventory for cash of $281600.
8. Acquired an investment in Zynga stock for cash of $36960.
9. Converted bonds payable to common stock in the amount of $880000.
Required:
What is the net cash provided by operating activities?
Answer:
$316,800
Explanation:
Cashflow from Operating activities = Cash sales - Paid wages - Bought Inventory for cash
Cashflow from Operating activities = $704,000 - $105,600 - $281,600
Cashflow from Operating activities = $316,800
So, the net cash provided by operating activities is $316,800
On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The company borrowed $2,350,000 at 9% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2018: $7,000,000, 14% bonds $3,000,000, 9% long-term note Construction expenditures incurred during 2018 were as follows: January 1 $ 960,000 March 31 1,560,000 June 30 1,232,000 September 30 960,000 December 31 760,000 Required: Calculate the amount of interest capitalized for 2018 using the specific interest method. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%).)
Answer:
Highlands Company
The interest capitalized for 2018 using the specific interest method is:
= $268,740.
Explanation:
a) Data and Calculations:
Amount borrowed on January 1, 2018 = $2,350,000
Rate of interest for the construction loan = 9%
Outstanding debts throughout 2018:
$7,000,000, 14% bonds
$3,000,000, 9% long-term note
Construction Expenditures incurred during 2018:
Date Expenditure Weight Weighted Average
January 1 $ 960,000 12/12 $960,000
March 31 1,560,000 9/12 1,170,000
June 30 1,232,000 6/12 616,000
September 30 960,000 3/12 240,000
December 31 760,000 0/12 0
Total accumulated weighted-average expenditure = $2,986,000
Interest capitalized for 2018 using the specific interest method:
= $268,740 ($2,986,000 * 9%)
Martha had an important meeting after lunch and wanted to avoid the hassle of waiting in line to get a meal at the cafeteria. Hence, she bought a sandwich from a vending machine that was costlier than the meal at the cafeteria. Which of the following influenced Martha's purchase decision?
A. Psychological costs.
B. Quality costs.
C. Behavioral costs.
D. Time costs.
Answer:
D
Explanation:
Explain how each of these terms is reflected in some way during the period of the American Revolution.
Answer:
The American Revolution was a revolution in the second half of the 18th century, during which the 13 original colonies that today form an area along the American east coast seceded from Britain and established the United States of America as a federal republic.
The American Revolution brought about a number of major intellectual and social changes in young American society, particularly the interest in a Republican government. The American patriots were strongly influenced by the ideas of the Enlightenment; they were against autocracy and did not see the French form of government as a viable solution. In some colonies there were heated debates over the role of democracy in the organization of the state. The change of public opinion towards a republican government and a gradually expanding democracy brought about great changes in the structure of society and laid the foundation for the central ideas by which the United States is still governed.
A company issues $60,000 of 6%, 5-year bonds dated January 1 that pay interest semiannually on June 30 and December 31 each year. If the issuer accepts $62,000 for the bonds, the premium on bonds payable will (increase/decrease) total interest expense recognized over the life of the bond by $ .
Answer:
Decrease, $2,000
Explanation:
The premium on bonds payable will decrease total interest expense recognized over the life of the bond by $2,000. The difference between the face value & the issue value $2,000 ($62,000 - $60,000) should be amortize over a period of time and of which is reduced from interest expense.
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 86,400 units per year is: Direct materials $ 1.50 Direct labor $ 2.00 Variable manufacturing overhead $ 0.60 Fixed manufacturing overhead $ 3.75 Variable selling and administrative expenses $ 1.90 Fixed selling and administrative expenses $ 1.00 The normal selling price is $25.00 per unit. The company’s capacity is 122,400 units per year. An order has been received from a mail-order house for 3,000 units at a special price of $22.00 per unit. This order would not affect regular sales or the company’s total fixed costs. Required: 1. What is the financial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the company’s inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for these units?
Answer:
Delta Company
1. The financial advantage of accepting the special order is:
= $53,700.
2. The minimum selling price for these units that is relevant is:
= $4.10 (the unit variable manufacturing cost).
Explanation:
a) Data and Calculations:
Normal activity level per year = 86,400 units
Direct materials $ 1.50
Direct labor $ 2.00
Variable manufacturing overhead $ 0.60
Variable manufacturing cost per unit $4.10
Fixed manufacturing overhead $ 3.75
Variable selling and administrative expenses $ 1.90
Fixed selling and administrative expenses $ 1.00
The normal selling price = $25.00 per unit.
The company’s capacity is 122,400 units per year
Special Order:
Sales revenue $66,000 (3,000 * $22)
Cost of goods:
Variable manufacturing 12,300 (3,000 * $4.10)
Contribution margin $53,700
Xavier is hired to perform at a festival. He was hired for his unique signing ability. When the performance date arrived, Xavier delegated his singing responsibility to Jorge. The festival sued Xavier. Who will win
Answer:
The festival, since this involved an invalid assignment of rights
Explanation:
In the given situation, the festival would be the winner of the case as it hired the xavier for the ability related to the unique signing. Also, xavier is delegated to the singing responsibility for jorge i.e. not valid right assignment
Therefore the above should be the answer and the same is relevant
All the other options are wrong
The government of Egalitariania wants to favor firms and is considering implementing a maximum wage. Assume the maximum wage is both binding and less than the equilibrium wage. What happens to the employment of workers
Answer: It will increase
Explanation:
A maximum wage means that companies do not have to pay more than a certain wage limit. If this wage limit is less than the equilibrium wage, companies would be able to spend less on wages than they are normally supposed to.
Their cost will therefore reduce and they will be able to hire more workers with the money they would have spent to pay the workers the equilibrium wage thereby increasing the number of people employed in the country.
A Brazilian steel manufacturer started selling certain categories of steel in the United States. However, the Brazilian manufacturer is selling the steel at a price significantly lower than it sells the same product back in Brazil. This practice may be a violation of U.S. law.
a) true
b) false
Answer:
This practice may be a violation of U.S. law.
a) true
Explanation:
To protect local industries from unfair competition from other countries, the US enforces antidumping and countervailing laws. The laws seek to investigate, prevent, and impose adequate tariffs on imported goods that are priced lower in the U.S. market than in the exporting country's market or imported goods that are subsidized by the exporting country's government.
Using the following year-end information for WorkFit calculate the acid-test ratio:
Cash 58110
Short-term investments 14000
Accounts receivable 58000
Inventory 270000
Supplies 5600
Accounts payable 108000
Wages payable 31,900
a. 0.77
b. 0.42
Answer:
0.97
Explanation:
The computation of the acid-test ratio is given below:
= Quick assets ÷ current liabilities
= (cash + short term investment + account receivable + supplies) ÷ (accounts payable + wages payable)
= ($58,110 + $14,000 + $58,000 + $5,600) ÷ ($108,000 + $31,900)
= $135,710 ÷ $139,900
= 0.97
When one uses the after-tax weighted average cost of capital (WACC) to value a levered firm, the interest tax shield is A) not accounted for by the use of the WACC. B) considered by deducting the interest payment from the cash flows. C) automatically considered because the after-tax cost of debt is included within the WACC formula. D) capitalized by the levered cost of equity.
Answer: C) automatically considered because the after-tax cost of debt is included within the WACC formula.
Explanation:
When calculating the Weighted Average Cost of Capital (WACC) for a levered firm, the interest tax shield is included because the cost of debt used is adjusted for tax as shown below:
= (Weight of debt * Cost of debt( 1 - tax rate) ) + (Weight of equity * cost of equity)
As shown above, the interest tax shield is already implicit in the formula so there is no need to adjust the levered firm for an interest tax shield as this would lead to double-counting.
Suppose that a haircut will give Dawn 2,000 units of utility and cost her $40, whereas a set of acrylic nails costs $25 and yields 1,000 units of util. Most likely Dawn should:_____.
A. be indifferent between the two choices.
B. choose the haircut because she will receive 50 units of utility per dollar as compared with 45 units of utility per dollar for the nails.
C. choose the haircut because each unit of utility will cost her 2 cents as compared with 2.5 cents for the nails.
D. choose the nails because she will obtain 50 units of utility per dollar as compared with 40 units of utility per dollar for the haircut.
Answer:
b
Explanation:
Marginal utility is the additional utility derived from consuming one more unit of a good
the consumption decision is to consume more units of a good that gives the higher utility per good.
Marginal utility per unit of good = marginal utility / price of the good
haircut = 2000 / 40 = 50
Nails = 1000 /25 = 40
the utility per unit for haircut is greater for haircut than nails, so he would choose haircut
When marginal utility is positive, it means that increasing consumption by one unit increases total utility
When marginal utility is negative, it means that increasing consumption by one unit decreases total utility
When marginal utility is zero, total utility has reached its maximum and no more units of goods would be consumed
The management of Neptune Inc. creates a definite plan of action that will surely create profits for the company. It allocates and sectionalizes its machinery and personnel. The main office is moved to a prime location that helps attract customers and facilitates competitive development. This plan of action helps Neptune Inc. retain its competitive advantage and has also grow as a company.
Which of the following terms does this scenario best illustrate?
a. Strategic tools
b. Functional strategy
c. Business unit strategy
d. Strategic management process
Answer:
d. Strategic management process
Explanation:
Strategic management process is the continuous improvement process and appraisals aimed at making a business more effective than its competitors.
It covers planning activities towards achievement of an organisations' present and future objectives.
This is exemplified by Neptune Inc. when it allocated and sectionalized its machinery and personnel, the main office was moved to a prime location that helps attract customers and facilitates competitive development.
ncome Statements Segmented by Products Francisco Consulting Firm provides three types of client services in three health-care-related industries. The income statement for July is as follows: FRANCISCO CONSULTING FIRM Income Statement For Month of July Sales $ 820,000 Less variable costs (580,750) Contribution margin 239,250 Less fixed expenses Service $ 85,600 Selling and administrative 70,400 (156,000) Net income $ 83,250 The sales, contribution margin ratios, and direct fixed expenses for the three types of services are as follows: Hospitals Physicians Nursing Care Sales $340,000 $205,000 $275,000 Contribution margin ratio 25% 35% 30% Direct fixed expenses of service $36,500 $8,500 $18,750 Allocated common fixed service expenses $8,500 $2,500 $4,000 Prepare income statements segmented by client categories. Include a column for the entire firm in the statement.
Answer:
FRANCISCO Consulting Firm
Francisco Consulting Firm
Segmented Income Statement
For the month of July
Hospitals Physicians Nursing Total
Care
Sales $340,000 $205,000 $275,000 $820,000
Variable costs 255,000 133,250 192,500 580,750
Contribution margin ratio $85,000 $71,750 $82,500 $239,250
Direct fixed expenses of service $36,500 $8,500 $18,750 63,750
Allocated common
fixed service expenses 8,500 2,500 4,000 15,000
Unallocated common fixed service expense 6,850
Selling and administrative 29,190 17,600 23,610 70,400
Total expenses $74,190 $28,600 $46,360 $156,000
Net Income $10,810 $43,150 $36,140 $83,250
Explanation:
a) Data and Calculations:
CONSULTING FIRM
Income Statement
For Month of July
Sales $ 820,000
Less variable costs (580,750)
Contribution margin 239,250
Less fixed expenses Service $ 85,600
Selling and administrative 70,400 (156,000)
Net income $ 83,250
The sales, contribution margin ratios, and direct fixed expenses for the three types of services are as follows:
Hospitals Physicians Nursing
Care
Sales $340,000 $205,000 $275,000
Contribution margin ratio 25% 35% 30%
Direct fixed expenses of service $36,500 $8,500 $18,750
Allocated common fixed service expenses $8,500 $2,500 $4,000
The ending Retained Earnings balance of Lambert Inc. increased by $1.7 million from the beginning of the year. The company's net income earned during the year is $5.1 million. What is the amount of dividends Lambert Inc. declared and paid
Answer: $3.4 million
Explanation:
The increase in Retained earnings is the net earnings for the year.
Net earnings are calculated by deducting dividends from the Net income.
Net earnings = Net income - Dividends
1,700,000 = 5,100,000 - Dividends
Dividends = 5,100,000 - 1,700,000
= $3,400,000
= $3.4 million
Prime Cost, Conversion Cost, Preparation of Income Statement: Manufacturing Firm Kildeer Company makes easels for artists. During the last calendar year, a total of 32,000 easels were made, and 33,000 were sold for $56 each. The actual unit cost is as follows: Direct materials $13.00 Direct labor 5.00 Variable overhead 8.00 Fixed overhead 16.00 Total unit cost $42.00 The selling expenses consisted of a commission of $1.10 per unit sold and advertising co-payments totaling $93,500. Administrative expenses, all fixed, equaled $176,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $155,400 for 3,700 easels.Required:1. Calculate the number and the dollar value of easels in ending finished goods inventory.Ending units Dollar amount $FeedbackRemember that cost of goods manufactured increases finished goods inventory.2. Prepare a cost of goods sold statement.Kildeer CompanyStatement of Cost of Goods SoldFor the Year Ended December 31Cost of goods manufactured $Add: Beginning finished goods inventory Cost of goods available for sale $Less: Ending finished goods inventory Cost of goods sold $
Answer:
Results are below.
Explanation:
First, we need to calculate the unitary production cost:
Direct materials= 13
Direct labor= 5
Variable overhead= 8
Fixed overhead= 16
Total unit cost= $42
Now, the ending inventory in units and cost:
Beginning inventory= 3,700
Production= 32,000
Sales= (33,000)
Ending inventory in units= 2,700
Ending inventory value= 2,700*42= $113,400
Finally, the cost of goods sold:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 155,400 + (32,000*42) - (2,700*42)
COGS= $1,386,000
Julio purchased a stock one year ago for $27. The stock is now worth $32, and the total return to Julio for owning the stock was 37 percent. What is the dollar amount of dividends that he received for owning the stock during the year
Answer:
$5
Explanation:
Calculation to determine the dollar amount of dividends that he received for owning the stock during the year
First step is to calculate the total profit earned
Total profit=$27*37%
Total profit=$10
Second step is calculate the Value of stock with profits earned
Value of stock=$27+$10
Value of stock=$37
Now let calculate the the dollar amount of dividends
Dividend=$37-$32
Dividend=$5
Therefore the dollar amount of dividends that he received for owning the stock during the year is $5
Which of the following would be relevant in the make or buy decision? Direct materials Depreciation on equipment with no resale value A) Yes Yes B) Yes No C) No Yes D) No No
Answer:
B) Yes No
Explanation:
Materials cost are incremental and relevant whereas Depreciation on equipment with no resale value are irrelevant.
MC Qu. 114 Lowden Company has an overhead application... Lowden Company has an overhead application rate of 155% and allocates overhead based on direct material cost. During the current period, direct labor cost is $60,000 and direct materials used cost $90,000. Determine the amount of overhead Lowden Company should record in the current period.
Answer:
the overhead amount recorded is $139,500
Explanation:
The computation of the overhead amount recorded is shown below:
= Overhead application rate × direct material cost
= 155% × $90,000
= $139,500
Hence, the overhead amount recorded is $139,500
We simply applied the above formula so that the correct value could come