Answer:
15
Explanation:
Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $22,000 based on the belief that it would increase that division's sales by 13%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented
Answer:
hello your question is incomplete attached below is the complete question
1) attached below
2a) $19340
2b) yes
Explanation:
1) Prepare The contribution format income statement
variable cost :
east = 446,000 * 50% = 223,000
west = 600,000 * 47% = 282,000
central = 660,000 * 39% = 257400
attached below is the table ( screenshot from my excel )
2a) Determine how much the net operating income would increase
= ( Increase in contribution margin )- ( Increase in fixed cost )
= $41340 - $22,000 = $19340
where :
Increase in contribution margin = 318,000 * 13% = $41340
Increase in fixed cost = $22,000
2b) I will recommend the increased advertising because the increase in net operating income
. Department C is the first stage of Cohen Corporation's production cycle. The following equivalent unit information is available for conversion costs for the month of September: Beginning work-in-process inventory (20% complete) 85,000 Started in September 1,430,000 Completed in September and transferred to Department D 1,210,000 Ending work-in-process inventory (80% complete) 305,000 Using the FIFO method, the equivalent units for the conversion cost calculation are:
Answer:
1,657,000 units
Explanation:
The FIFO method is concerned with the work done in the current production period.
Equivalent Units of Production - Conversion Costs
To finish Opening Work In Process ( 85,000 x 80%) 68,000
Started and Completed [(1,430,000 - 85,000) x 100%] 1,345,000
Ending Work In Process 305,000 x 80% 244,000
Total Equivalent Units of Production - Conversion Costs 1,657,000
therefore,
the equivalent units for the conversion cost calculation are: 1,657,000 units
Your friend currently works as an accountant at a public accounting firm in the small town of LaFontaine, Indiana. He is offered a job in Washington, D.C. for $60,000. Your friend calls you and tells you that he is excited about the new job offer, which gives him a raise from his current salary of $50,000. Based on your knowledge of economics, you think that:______
a. Your friend most likely should not be quite so excited because the extremely high cost of living in New York City means his real salary increase will be less than he imagined.
b. Your friend has every reason to be excited because he will be getting paid.
c. Your friend has reason to be excited because in a bigger city he will häve more.
d. Your friend has no reason to be excited because higher pay implies more job 120% of what he used to be paid. things to do and his higher salary will allow him to spend on those activities.
Answer:
Correct option is (a)
Explanation:
Real income is the income after adjusting for inflation. Inflation is rise in general price of commodities. Here, friend was living in a small town. Cost of living as well as inflation is lower as compared to big city like Washington DC. Even though he is given a raise of $10,000 that is an increase in nominal income, his real income after adjusting inflation and cost of living would not rise by $10,000.
So, friend should not get excited to be moving to the city with higher pay as it will not make much of difference.
High Point Hotel (HPH) has $165,000 in accounts receivable. To finance a major purchase, the company assigns these receivables to Cross Town Bank. Which one of the following statements correctly describes this transaction? HPH will immediately receive $165,000 and will have no further obligation related to these receivables. HPH will receive some amount of cash immediately while maintaining full responsibility for any uncollected receivables. Cross Town Bank accepts full responsibility for the collection of the accounts receivables and, in exchange, immediately pays HPH a discounted value for its receivables. Cross Town Bank accepts full responsibility for collecting the accounts receivables and pays HPH a discounted price for the accounts collected after the normal collection period has elapsed. HPH receives the full amount of its receivables upon assignment but must reimburse Cross Town Bank for any uncollected account
Answer: HPH will receive some amount of cash immediately while maintaining full responsibility for any uncollected receivables
Explanation:
Since High Point Hotel (HPH) has $165,000 in accounts receivable and the company assigns these receivables to Cross Town Bank in order to finance a major purchase, it simply implies that HPH will receive some amount of cash immediately while maintaining full responsibility for any uncollected receivables.
Other options given are incorrect as they don't describe the transaction.
Dmitri doesn't like Val, one of his coworkers. Dmitri started to send an e-mail to his workgroup, falsely accusing Val of stealing company supplies. Before clicking "Send," Dmitri reread his message. He decided to delete the message instead of sending it, fearing that his work team members might consider his e-mail to be inappropriate. Which ethical consideration did Dmitri use in his decision to behave in a principled manner?
A) Publicity Test
B) Common Good approach
C) Professional Ethic
D) Utilitarian approach
Answer:
C. Professional Ethics.
Explanation:
Ethics are moral qualities which governs a persons behavior. A person is sometimes in an ethical dilemma scenario where he has to take decision which might impact his ethical values. Professional ethics is a situation where a person thinks how his decision will be viewed by an independent jury or audience.
you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar) for the project as follows: on the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.30. Assuming that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio is 15% what is the net present value of the project
Question
you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar) for the project as follows:
Year cashflow
0 -100
1-10 15
0n the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.30. Assuming that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio is 15% what is the net present value of the project
Answer:
NPV= -$32.58
Explanation:
The net present value of the investment is the cash inflow from the investment discounted at required rate of return. The required rate of return can be determined using the the formula below:
Ke= Rf +β(Rm-Rf)
Ke =? , Rf- 5%,, Rm-15%, β- 1.30
Ke=5% + 1.30× (15-5)= 18%
The NPV = Present value of cash inflow - initial cost
= A×(1-(1+r)^(-10)/r - initial cost
A- 15, r-18%
NPV = 15× (1-1.18^(-10)/0.18 - 100= -32.58
NPV = -$32.58
Individuals have two kidneys, but most of us need only one. People who have lost both kidneys through accident or disease must be hooked up to a dialysis machine, which cleanses waste from their bodies. Say a person who has two good kidneys offers to sell one of them to someone whose kidney function has been totally destroyed. The seller asks $30,000 for the kidney, and the person who has lost both kidneys accepts the offer. A. Who benefits from the deal
Answer:
Both do.
Explanation:
However, I will say that asking someone who would die without that kidney for $30,000 for something you can live without is kind of cruel. I would do it for free
The multiplier effect occurs when an initial increase (or decrease) in autonomous expenditure produces a greater increase (or decrease) in real GDP than the initial change. In which type of discretionary fiscal policy does the multiplier play a role? tax changes only neither government spending changes nor tax changes government spending changes only both government spending changes and tax changes Assume a marginal propensity to consume (MPC) of 0.5. Which discretionary fiscal policy would have a more pronounced impact on the economy? A 800 billion dollar increase in government spending, or a 800 billion dollar tax cut, would both have an equal impact on the economy. A 800 billion dollar increase in government spending would have a more pronounced impact on the economy. A 800 billion dollar tax cut would have a more pronounced impact on the economy.
Answer:
The answer is "Choice d and Choice b".
Explanation:
In question 1:
The multiplier effect is produced whenever an initial rise (or decrease) of self-employed market capitalization (or decreases) GDP Growth higher than the original change. Where both increases in public spending or adjustments in taxes are produced by a budgetary monetary strategy, a multiplier mostly on the economy plays a major role in public spending and new taxes.
In question 2:
This marginal demand risk of 0.5 would have a more noticeable influence on financial spending, via an 800 billion dollar increase in government expenditure. This will have more major economic effects on fiscal policy. More noticeable effects of increased spending will have on the aggregate throughout the economy.
The use of government budget funding policies to impact economic factors, particularly macroeconomic variables such as aggregate consumer spending, employment, inflation, and economic growth, is referred to as fiscal policy.
How is a fiscal policy that is discretionarily chosen?The multiplier impact occurs anytime an initial increase (or drop) in self-employed market capitalization (or reduces) GDP Growth that is greater than the original change.
When a fiscal monetary strategy produces both increases in public expenditure and tax adjustments, a multiplier based primarily on the economy plays a significant role in both public spending and new taxes.
This marginal demand risk of 0.5 would have a greater impact on financial expenditures, resulting in an 800 billion dollar rise in government spending.
This will have a greater impact on budgetary policy. The aggregate consequences of higher expenditure will be more visible throughout the economy.
Thus, Options B and D are correct.
For more information about discretionary fiscal policy refer to the link:
https://brainly.com/question/1114207
The cash flows for a project include the: Multiple Choice incremental operating cash flow and aftertax salvage value of the project. incremental operating cash flow, as well as the capital spending and net working capital requirements. net income generated by the project plus the annual depreciation expense. net operating cash flow generated by the project, less both sunk and erosion costs. sunk costs, opportunity costs, and erosion costs of the project.
Answer:
Incremental operating cash flow as well as any change in capital spending, and net working capital.
Explanation:
As we know that
Incremental operating cash flow = Incremental revenue - incremental expenses.
Here the incremental revenue with negative capital spending would be deducted and the working capital would be adjusted to determine the cash flow
So the above represent the answer
On 4/1, Renfro Corporation purchased for $765,000 a tract of land on which was located a warehouse and an office building. The following appraised values were collected concerning the property: Land, $300,000, Warehouse $200,000, Office building $400,000. What are the amounts that Renfro should record for the land, warehouse, and office building, respectively?
Answer:
Renfro Corporation
The amounts that Renfro should record for the land, warehouse, and office building, respectively are:
Land = $255,000
Warehouse = $170,000
Office building = $340,000
Explanation:
a) Data and Calculations:
Purchase price = $765,000
Appraised values of:
Land = $300,000
Warehouse = $200,000
Office building = $400,000
Total appraise value = $900,000
Apportionment of Purchase Price:
Land = $255,000 ($765,000/$900,000 * $300,000)
Warehouse = $170,000 ($765,000/$900,000 * $200,000)
Office building = $340,000 ($765,000/$900,000 * $400,000)
Total = $765,000
small accounting firm is considering the purchase of a computer software package that would greatly reduce the amount of time needed to prepare tax forms. The software costs $2150 and this expense will be incurred immediately. The firm estimates that it will save $650 of cash flow at the end of each year beginning in one year for 5 consecutive years, and also save $1788 in year 6. What is the payback on the computer package
Answer:
Pay back period =3 years 4 months
Explanation:
The payback period is the estimated length of time it takes cash inflow from a project to recoup the cash outflow.
The payback period uses cash flows and not profit.
The payback period can be determined by accumulation the cash inflow consecutively to ascertain the length of time it will take the sum to equate the initial cost.
This will be done as follows:
The sum of the cash in flows for the first three years would equal
650× 3= 1,950
The balance required to equate 2,150 would be
balance = 2150-1950 = 200
Pay back period = 3 years + (200/650)× 12 months
= 3 years 3.6months
Pay back period =3 years 4 months
indicates that there can be a performance decrease as a team goes through the storming phase of team development. During the storming phase in team development, team performance declines for a period of time as conflicts emerge regarding goals and contributions of team members. a. Team performance curve b. Five-stage model of team development c. Team effectiveness d. Team activity
Answer:
a. Team performance curve
Explanation:
A team can be defined as a group of people or set of individuals with various skill set, knowledge and experience coming together to work on a project or task in order to successfully achieve a set goal and objective.
This ultimately implies that, a team comprises of individuals, workers or employees having complementary skills, knowledge and experience needed to execute a project or task successfully. Therefore, workers working as a team usually interact with the other team members and as a result, this enhances performance and strengthen the level of relationship they share.
Team performance curve indicates that there can be a performance decrease as a team goes through the storming phase of team development. During the storming phase in team development, team performance declines for a period of time as conflicts emerge regarding goals and contributions of team members.
Generally, a loan obtained from a bank will be a _____ loan.
A. Taxed
B. Term
C. Variable
D. Collateral-free
Answer:
Term
Explanation:
If a company was trying to find the best production strategy which maximized their total profits using an optimization model, the amount of time used in the Fabrication department is an example of Group of answer choices Parameter Objective function Decision variable Constraint
Answer: Constraint
Explanation:
The company data is not attached but this should be correct.
Constraints enable companies and entities to engage in sensitivity analysis which would enable them find out optimal quantities of production and production strategy.
Constraints show how much of something is needed to get something done so in making time the constraint, the company is trying to find out how much time is needed in the fabrication department for goods in order for profits to be maximized.
The price index was 150 in the first year, 142.5 in the second year, and 138.2 in the third year. The economy experienced:________
a. 5.0 percent deflation between the first and second years, and 3.0 percent deflation between the second and third years.
b. 7.5 percent deflation between the first and second years, and 4.3 percent deflation between the second and third years.
c. 5.3 percent inflation between the first and second years, and 4.1 percent inflation between the second and third years.
d. 7.5 percent inflation between the first and second years, and 4.3 percent inflation between the second and third years.
Answer:
The correct answer is:
5.0 percent deflation between the first and second years, and 3.0 percent deflation between the second and third years. (a)
Explanation:
to calculate the percentage deflation, we will simply calculate the percentage change in price between the years stated. This is calculated as follows:
% change = [tex]\%\ change = \frac{P_2 - P_1}{P_1} \times 100\\where:\\P_1 = initial\ price\ index\\P_2 = New\ price\ index\\for\ first\ and\ second\ years\\\therefore \%\ change = \frac{142.5 - 150}{150} = \frac{-7.5}{150}= -0.05 \times 100 = -5\%\\[/tex]
Note that the negative sign shows a deflation.
if you use the same method for years two and three, you should get -3%, using P₁ as 142.5 and p₂ as 138.2. Hence option 'a' is correct.
Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, whiclh pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours. In the most recent month, 160,000 items were shipped to customers using 6,500 direct labor-hours. The company incurred a total of $20,800 in variable overhead costs.
According to the company's standards, 0.03 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.25 per direct labor-hour
Required:
1. What is the standard labor-hours allowed (SH) to ship 160,000 items to customers?
2. What is the standard variable overhead cost allowed (SH x SR) to ship 160,000 items to customers?
3. What is the variable overhead spending variance?
4. What is the variable overhead rate variance and the variable overhead efficiency variance?
(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do no round intermediate calculations.)
1. Standard quantity of labor-hours allowed
2. Standard variable overhead cost allowed
3. Variable overhead spending variance
4. Variable overhead rate variance
Variable overhead efficiency variance
Answer:
1. Standard quantity of labor-hours allowed 4,800
2. Standard variable overhead cost allowed $15,600
3. Variable overhead spending variance 5,200 U
4. Variable overhead rate variance 325 F
5.Variable overhead efficiency variance 5,525 U
Explanation:
1. Calculation for Standard quantity of labor-hours allowed
Standard quantity of labor-hours allowed = 160,000*0.03
Standard quantity of labor-hours allowed= 4,800
Therefore Standard quantity of labor-hours allowed is 4,800
2. Calculatuon for Standard variable overhead cost allowed
Standard variable overhead cost allowed= 4,800*$3.25
Standard variable overhead cost allowed = $15,600
Therefore the Standard variable overhead cost allowed is $15,600
3. Calculation for Variable overhead spending variance
Variable overhead spending variance = $15,600 - $20,800
Variable overhead spending variance = 5,200 U
Therefore the Variable overhead spending variance is 5,200 U
4. Calculation for Variable overhead rate variance
Variable overhead rate variance= ($3.25 - $20,800/6,500)*6,500
Variable overhead rate variance=($3.25-$3.2)*6,500
Variable overhead rate variance= 325 F
Therefore The Variable overhead rate variance= 325 F
5. Calculation for Variable overhead efficiency variance
Variable overhead efficiency variance= (4,800-6,500)*3.25
Variable overhead efficiency variance = 1,700*3.25
Variable overhead efficiency variance= 5,525
Therefore the Variable overhead efficiency variance is 5,525 U
In a paragraph of 250 words or less, please discuss areas of outstanding achievements. Give examples such as scholarships, leadership roles, major projects, work experience, etc. Outstanding achievements will be reviewed by all selected major choices to which you apply.
Explanation:
Writing a scientific article at the university can be a remarkable and relevant achievement as this article seeks to find solutions to problems faced by today's society. An example is a scientific project in the area of environmental management that seeks to develop explanations and solutions applicable to companies for the implementation of environmental programs and certifications, it is a project that will contribute to the reduction of impacts to the environment and to the valorization of local communities and producers. .
However, it is necessary that the environmental management project presents solutions that benefit both the organization and the environment in fact, as organizations as profitable entities will implement some social and environmental benefit program if it is legally necessary or bring strategic and competitive benefits.
define return economics.
Answer:
also known as a financial return, in its simplest terms, is the money made or lost on an investment over some period of time. A return can be expressed nominally as the change in dollar value of an investment over time.
Explanation:
_________ are basic beliefs about right and wrong or philosophies that are pervasive in a society. For instance, in some countries, people believe that they should be able to set their personal goals and make their own decisions. In other countries, people believe that they they should consult their family members or other members of their collectives when setting their goals or making their decisions.
a. values attitudes
b. manners
c. customs
Answer:
A. Values
Explanation:
Although, the above explanations entails or encompasses what values are, manners and customs of people in a country; however, values is what summarizes the whole passage.
Values are what a given society holds in high esteem. They are basic and fundamental beliefs that controls actions in a given society. Values may be right or wrong according to the philosophies of those who believes in such, it is however very important because it helps a society determines what is important I.e something that is good, worthwhile and very much desirable.
The options are:
a. values
b. attitudes
c. manners
d. customs
Answer:
a. values
Explanation:
Values are defined as the concept of right and wrong behaviours within a society. This shapes acceptable behaviour within that society.
They are the motives that exists behind certain way of doing things.
Values therefore sets a ranking of how good and desirable a mode of behaviour is.
Examples of values include dependability, honesty, open mindedness, and consistency.
The standard deviation of the market-index portfolio is 35%. Stock A has a beta of 1.40 and a residual standard deviation of 45%.
a-1. Calculate the total variance of stock A if its beta is increased by 0.20?
a-2. Calculate the total variance of stock A if its residual standard deviation is increased by 7.54%?
b. An investor who currently holds the market-index portfolio decides to reduce the portfolio allocation to the market index to 90% and to invest 10% in stock A. Which of the following changes (an increase of 0.20 in beta or increase of 7.54% in residual standard deviation) will have a greater impact on the portfolio's standard deviation?
i. Both will have the same impact.
ii. Increase of .20 in beta will have a greater impact.
iii. Increase of 7.54% in the residual standard deviation will have a greater impact.
Answer:
a-1. Variance = Beta² * Standard deviation of market² + Residual standard deviation²
Beta increases by 0.2
= 1.4 + 0.2
= 1.6
Total variance
= 1.6² * 35%² + 45%²
= 51.61%
a-2. If residual value increases by 7.54% it becomes:
= 45 + 7.54
= 52.54%
Total variance
= 1.4² * 35%² + 52.54%²
= 51.61%
b. ii. Increase of .20 in beta will have a greater impact.
Portfolio standard deviation helps ascertain the effects of systematic risk on the portfolio. Beta is used to represent that systematic risk. A change in Beta will therefore affect standard deviation more because standard deviation shows the impact of beta as a representation of systematic risk.
Wilson Animal Feeds has developed the following data to calculate lower of cost or market for its products.
Large animals:
Cattle $320 $160
Horse 400 400
Small animals:
Cat $360 $320
Dog 120 90
Exotic pets:
Ferret $140 $112
Iguana 70 48
The costs to sell are 20% of selling price.
Required:
Determine the reported inventory value assuming the lower of cost and net realizable value rule is applied to classes of feeds.
Answer:
The total reported inventory value is $1,130.
Explanation:
Note: The data given the question are sorted and presented properly as follows:
Selling Price Cost
Large animals:
Cattle $320 $160
Horse 400 400
Small animals:
Cat $360 $320
Dog 120 90
Exotic pets:
Ferret $140 $112
Iguana 70 48
Based on the lower of cost and net realizable value rule, we select the lower and determine the reported inventory value as follows:
Details Value ($)
Large animals:
Cattle 160
Horse 400
Small animals:
Cat 320
Dog 90
Exotic pets:
Ferret 112
Iguana 48
Total value 1,130
Therefore, the total reported inventory value is $1,130.
On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $31,000. A total of $2,800 was paid for installation and testing. During the first year, Milton paid $4,200 for insurance on the equipment and another $640 for routine maintenance and repairs. Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $5,600. During Year 1, the equipment produced 14,000 units. What is the amount of depreciation for Year 1
Answer:
the amount of depreciation for Year 1 is $3,948
Explanation:
Step 1 : Determine Cost of Equipment
Cost according to IAS 16 means purchase price plus other costs directly incurred in bringing the asset to location and condition of use as intended by management.
Purchase Price $31,000
Installation and testing $2,800
Total Cost $ 33,800
Step 2 : Determine the depletion rate
Depletion rate = (Cost - Salvage Value) ÷ Estimated Production
= ($ 33,800 - $5,600) ÷ 100,000 units
= 0.282
Step 3 : Determine the Depreciation Expense
Depreciation Expense = Depletion rate x Units Produced
= 0.282 x 14,000 units
= $3,948
Conclusion
the amount of depreciation for Year 1 is $3,948
How much would you take home after federal taxes on a salary of $65,500?
Which of the following scenarios are macroeconomic in nature? Select all that apply. Group of answer choices A firm is trying to decide whether it should expand into another state. Microsoft is considering buying another firm to help it expand its social media presence. The GDP of France has fallen to an inflation adjusted low. The U.S. unemployment rate falls to 8.5% in December. The central bank of the United States increased interest rates by 0.5%. A town passes a law to make it illegal for homeowners to burn leaves.
Answer:
The GDP of France has fallen to an inflation adjusted low.
The U.S. unemployment rate falls to 8.5% in December.
The central bank of the United States increased interest rates by 0.5%.
Explanation:
Economics encompasses how people use scarce resources.
Macroeconomics is commonly defined as the act of distributing or allocating the resources of an entire economy to achieve an aggregate economic goals. participants. The three scenarios above aim to achieve economic goals. The study of how groups of individuals choose to allocate the scarce resources available to them is very important in an economy.
Sheffield Company uses the LIFO method for financial reporting purposes but FIFO for internal reporting purposes. At January 1, 2020, the LIFO reserve has a credit balance of $1,067,300. At December 31, 2020, Sheffield’s internal reports indicated that the FIFO inventory balance was $2,688,300 and for external reporting purposes the LIFO inventory balance was $1,525,000. (a) What is the amount of the LIFO reserve and the LIFO effect related to 2020? LIFO reserve at December 31, 2020 $enter a dollar amount LIFO effect for 2020 $enter a dollar amount
Answer and Explanation:
The computation of the amount of the LIFO reserve and the LIFO effect related to 2020 is shown below:
Internal reporting inventory $2,688,300
Less: External reporting inventory $1,525,000
LIFO reserve at December 31 2020 $1,163,300
Less: Beginning LIFO credit reserve $1,067,300
LIFO effect for 2020 $96,000
The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were debited to one account called intangible asset. A recap of the $176,500 balance in this account at the end of 2021 is as follows:
Date Transaction Amount
February 3 State incorporation fees and legal costs related to organizing the corporation $ 9,500
March 1 Fire insurance premium for three-year period 8,500
March 15 Purchased a copyright 25,000
April 30 Research and development costs 45,000
June 15 Legal fees for filing a patent on a new product resulting from an R&D project 5,500
September 30 Legal fee for successful defense of patent developed above 17,000
October 13 Entered into a 10-year franchise agreement with franchisor 45,000
Various Advertising costs 21,000
Total $ 176,500
Required:
Prepare the necessary journal entry to clear the intangible asset account and to set up accounts for separate intangible assets, other types of assets, and expenses indicated by the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Dr Organization cost expense $ 9,500
Dr Fire insurance $8,500
Dr Copyright $25,000
Dr Research and Development Expense $45,000
Dr Patent $22,500
Dr Franchise $45,000
Dr Advertising $21,000
Cr Intangible Asset $176,500
Explanation:
Preparation of the necessary journal entry to clear the intangible asset account and to set up accounts for separate intangible assets
Dr Organization cost expense $ 9,500
Dr Fire insurance $8,500
Dr Copyright $25,000
Dr Research and Development Expense $45,000
Dr Patent $22,500
($17,000 + $5500)
Dr Franchise $45,000
Dr Advertising $21,000
Cr Intangible Asset $176,500
($9,500+$8,500+$25,000++$45,000+$22,500+$45,000+$21,000)
(To clear the intangible asset account and to set up accounts for separate intangible assets)
Abbot Corporation reported pretax book income of $500,000. During the current year, the reserve for bad debts increased by $5,000. In addition, tax depreciation exceeded book depreciation by $40,000. Finally, Abbot received $3,000 of tax-exempt life insurance proceeds from the death of one of its officers. Abbot's current income tax expense or benefit would be:
Answer:
$157,080
Explanation:
Calculation to determine what Abbot's current income tax expense or benefit would be:
Current income tax expense or benefit=[($500,000 + $5,000 - $40,000 - $3,000)*34%]
Current income tax expense or benefit= $462,000* 34%
Current income tax expense or benefit=$157,080
Therefore Abbot's current income tax expense or benefit would be:$157,080
Your family business produces a secret recipe salsa and distributes it through both smaller specialty stores and chain supermarkets. The chains have been demanding sizable discounts but you do not want to drop your prices to the specialty stores. When can you legally accommodate the chains without losing profits from the specialty stores
Answer:
We can make the chain supermarkets buy goods in bulk.
Explanation:
In the given scenario the chain supermarkets have been demanding heavy discounts on goods that you are selling to them.
Also you do not want the eventual price to the speciality stores to drop.
The solution will be to sell products in bulk to the chain supermarkets. This will meet their demand for larger discounts as price per unit of product will be lower with bulk purchase.
Then the speciality stores can still buy in small quantities for higher price.
This will accommodate the requirements from both stores.
Mt Kinley is a strategy consulting firm that divides its consultants into three classes, associates, managers, and partners. The firm has been stable in size for the last 20 years, ignoring growth opportunities in the 90s, but also not suffering from a need to down-size in the recession. Specifically, there have been – and are expected to be – 200 associates, 60 managers, and 20 partners. The work environment at Mt Kinley is rather competitive. After 4 years of working as an associate, a consultant goes "either up or out", i.e. becomes a manager or is dismissed from the company. Similarly, after 6 years a manager either becomes a partner or is dismissed. The company recruits MBAs as associate consultants, no hires are made at the manager or partner level. A partner stays with the company for another 10 years (total of 20 years with the company). How many new MBA graduates does Mt Kinley have to hire every year? What is the probability that an incoming MBA graduate would make partner at Mt Kinley?
Answer:
1. 50 consultants per year
2. 4%
Explanation:
1. Calculation to determine How many new MBA graduates does Mt Kinley have to hire every year
Using this formula
Flow Rate of associates= Inventory / Flow Time
Let plug in the formula
Flow Rate of associates = 200 consultants / 4 years
Flow Rate of associates= 50 consultants per year
Therefore the numbers of MBA graduates that Mt Kinley have to hire every year is 50 consultants per year
2. Calculation to determine the probability that an incoming MBA graduate would make partner at Mt Kinley
First step is to calculate the Flow Rate of managers using this formula
Flow Rate of manager= Inventory / Flow Time
Let plug in the formula
Flow Rate of manager = 60 consultants / 6 years
Flow Rate of manager =10 consultants per year
Second step is to calculate the flow rate of partner using this formula
Flow rate of partner = Inventory/ Flow time
Let plug in the formula
Flow rate of partner = 20/10
Flow rate of partner = 2 partners per year
Third step is to calculate the probability of becoming a manager
Probability (Manager) = 10/50
Probability (Manager) = 20%
Fourth step is to calculate Probability of becoming a partner
Probability (Partner) = 2/10
Probability (Partner) = 20%
Now let calculate the probability that an incoming MBA graduate would make partner at Mt Kinley
Probability of MBA graduate becoming a partner = 20% x 20%
Probability of MBA graduate becoming a partner = 4%
Therefore the probability that an incoming MBA graduate would make partner at Mt Kinley is 4%
Portfolio Returns i. stock has mean of 8% and stdev of 20%; ii bond has mean of 6% and stdev of 15%; iii correlation b/w stock and bond of -0.3; iv. Risk free rate for cash lending and borrowing is at 1%. a. What is the mean and stdev of a portfolio of that is 60% in stock and 40% in bond (3 points)
Answer:
Portfolio Mean = 7.2%
Portfolio Stdev = 0.1169615 or 11.69615% rounded off to 11.70%
Explanation:
The mean return of a portfolio consisting of two securities can be calculated by multiplying the weight of each security in the portfolio by the mean return of that security and adding the products for each security. The formula for two asset or security portfolio return (mean) can be written as follows,
Portfolio Mean = wA * rA + wB * rB
Where,
w represents the weight of each securityr represents the mean return of each securityPortfolio Mean = 60% * 8% + 40% * 6%
Portfolio Mean = 7.2%
The standard deviation is a measure of the total risk. The standard deviation of a portfolio consisting of two securities can be calculated using the attached formula.
Portfolio Stdev = √(0.6)² (0.2)² + (0.4)² (0.15)² + 2(0.6) (0.4) (-0.3) (0.2) (0.15)
Portfolio Stdev = 0.1169615 or 11.69615% rounded off to 11.70%