The following inventory valuation errors have been discovered for Knox Corporation:
The 2015 year-end inventory was overstated by $23,000
The 2016 year-end inventory was understated by $61,000
The 2017 year-end inventory was understated by $17,000
The reported income before taxes for Knox was:
Year: Income before Taxes:
2015 $138,000
2016 $254,000
2017 $168,000
Required:
Compute what income before taxes for 2015, 2016, and 2017 should have been after correcting for the errors.

Answers

Answer 1

Answer:

Income +/- inventory adjustment

2015:   138,000 - 23,000 = 115,000

2016:  254,000 + 61,000 = 315,000

2017:   168,000 + 17,000 = 185,000

Explanation:

Inventory Identity:

Beginning + Purchases = Ending + COGS

As the mistake is on the right side it compensates by the other component which is COGS

When the inventory is overstated this means COGS is understated.

We didn't record the cost of good sold thefore our gross profit is higher making the net income higher.

When the inventory is understated this means COGS is overstated.

We record more cost of goods sold thefore our gross profit is lower making the net income fewer as well.


Related Questions

The Hifalutin Co. has perpetual EBIT of $3,000. It has no debt in its capital structure, and its cost of equity is 15%. The corporate tax rate is 40%. There are 300 shares outstanding. Hifalutin has announced that it will borrow $3,750 in perpetual debt at 8% and use the proceeds to buy up stock. How many shares will be purchased

Answers

Answer:

The right answer is "56 shares".

Explanation:

According to the question,

Earning per share is:

= [tex]\frac{3000}{300}[/tex]

= $[tex]10[/tex]

PE ratio will be:

= [tex]\frac{1}{ke}[/tex]

= [tex]\frac{1}{15}[/tex]

= [tex]6.67[/tex]

Market price at every share will be:

= [tex]PE \ ratio\times EPS[/tex]

= [tex]6.67\times 10[/tex]

= [tex]66.7 \ Per \ share[/tex] ($)

Now,

The number of purchased shares will be:

= [tex]\frac{borrow}{market \ price \ per \ share}[/tex]

= [tex]\frac{3750}{66.7}[/tex]

= [tex]56.22[/tex]

i.e.,

= [tex]56 \ shares[/tex]

In 2010, Toyota recalled millions of automobiles to fix a potentially hazardous problem known as sudden acceleration. Writing in the Wall Street Journal, James Stewart gave investors the following advice: "Toyota shares were over $90 as recently as Jan. 19, 2010. They closed Tuesday (February 02, 2010) at $78.18, which strikes me as a modest decline under the circumstances. If I owned shares, I’d seize the chance to get out.

Required:
Would a believer in the efficient markets theory be likely to follow Stewart's advice?

Answers

Answer:

Of course not. Someone that believes in the efficient market theory (or hypothesis as it is generally called), believes that the market is always right. As an individual investor, you might be right or wrong, but the market as a whole has access to perfect information and the price of each stock already has been determined factoring all possible events and outcomes. I.e. the market's price is always the correct price and there is no way in which an individual investor can make a profit by buying or selling undervalued or overvalued stocks.

Personally, I disagree with this hypothesis, and the reason why most people call is a hypothesis is that they disagree with it. If the market is always right, then this theory is no good.

The nature of a firm's cost (fixed or variable) depends on the Select one: a. firm's revenues. b. time horizon under consideration. c. price the firm charges for output. d. explicit but not implicit costs.

Answers

Answer:

B)time horizon under consideration.

Explanation:

firm's total cost of production can be regarded as the summation of both the fixed cost as well as the variable cost). It is all expenditures utilized in getting the needed factors of production( land, capital as well as labor)

Fixed cost known as overhead cost such as rent, insurance are expenses in the business that donor depends on the level of products(goods/service) from the business. While variable cost are cost that changes with production volume, they cover the cost of raw material used, direct labor as so on.It should be noted that The nature of a firm's cost (fixed or variable) depends on the time horizon under consideration

The following selected transactions were completed by Capers Company during October of the current year:

Oct. 1 Purchased merchandise from Sabol Imports Co., $15,458, terms FOB destination, n/30.
3 Purchased merchandise from Saxon Co., $9,650, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $200 was added to the invoice.
5 Purchased merchandise from Schnee Co., $13,550, terms FOB destination, 2/10, n/30.
6 Issued debit memo to Schnee Co. for merchandise with an invoice amount of $4,350 returned from purchase on July 5.
13 Paid Saxon Co. for invoice of July 3.
14 Paid Schnee Co. for invoice of July 5, less debit memo of July 6.
19 Purchased merchandise from Southmont Co., $27,270, terms FOB shipping point, n/eom.
19 Paid freight of $375 on July 19 purchase from Southmont Co.
20 Purchased merchandise from Stevens Co., $21,400, terms FOB destination, 1/10, n/30.
30 Paid Stevens Co. for invoice of July 20. 31 Paid Sabol Imports Co. for invoice of July 1.
31 Paid Southmont Co. for invoice of July 19.

Required:
Journalize the entries to record the transactions of Capers Company for October.

Answers

Answer:

Date   Accounts title and explanations   Debit$      Credit$

1-Oct   Merchandise inventory                    15458

                  Accounts payable - Sabol imports            15458

3-Oct  Merchandise Inventory                     9850

                   Accounts payable- Saxon Co.                   9650

                   Cash account                                              200

4-Oct   Merchandise Inventory                     13550

                   Accounts payable- Schnee Co.                       13550

6-Oct    Accounts payable -Schnee Co        4350

                    Merchandise inventory                                4350

13-Oct    Accounts payable-Saxon Co          9650  

                      Cash account                                              9457

                       Merchandise inventory                               193

                        (9650*2%)

14-Oct    Accounts payable-Schnee Co        9200  

                      Cash account                                               9016

                       Merchandise inventory                                 184

                       (9200*2%)

19-Oct    Merchandise inventory                    27270

                        Accounts payable - Southmont Co           27270

19-Oct    Merchandise inventory                       375

                        Cash account                                              375

20-Oct    Merchandise inventory                     21400  

                        Accounts payable -Stevens                      21400

30-Oct   Accounts payable-Stevens                 21400

                         Cash account                                             21186

                          Merchandise inventory                             214

                           (21400*1%)  

31-Oct    Accounts payable-Sabol imports      15458  

                      Cash account                                                 15458

31-Oct    Accounts payable -Southmont Co    27270  

                   Cash account                                                    27270

Camille Sikorski was divorced last year. She currently provides a home for her 15-year-old daughter, Kaly, and 18-year-old son, Parker. Both children lived in Camille’s home, which she owns, for the entire year, and Camille paid for all the costs of maintaining the home. She received a salary of $55,000 and contributed $4,200 of it to a qualified retirement account (a for AGI deduction). She also received $6,000 of alimony from her former husband. Finally, Camille paid $2,700 of expenditures that qualified as itemized deductions.

a. What is Camille’s taxable income?

b. What would Camille’s taxable income be if she incurred $9,800 of itemized deductions instead of $2,700?

c. Assume the original facts but now suppose Camille’s daughter, Kaly, is 25 years old and a full-time student. Kaly’s gross income for the year was $5,300. Kaly provided $3,180 of her own support, and Camille provided $5,300 of support. What is Camille’s taxable income?

#6 is it Greater of standard deduction or itemized deduction or is it Lesser of standard deduction or itemized deduction

Description Amount
1) Gross income
2) For AGI deductions
3) Adjused gross income $
4) Standard deduction
5) Itemized deductions
6)
7) Personal and dependency exemptions
8) Total deductions from AGI $
Taxable income

Answers

Answer:

Uhhh is there any sources?

Explanation:

why do organizations identify their opportunities and threats??​

Answers

Answer:

So they know what do when they fight back or attack

how globalization has changed jobs in an organization where you have worked. What are some HR responses to those changes

Answers

Explanation:

Globalization is a phenomenon that has interconnected the world in a political, economic, social and cultural way, which means that this phenomenon has had a significant impact on an organization's business world and HR sector.

An organization that is present in a globalized world, will need to develop new ways of carrying out processes, since this environment is increasingly competitive and needs creativity and innovation for a company to remain well positioned in the market. It is also necessary to highlight that people have new work demands and seek to work in companies that exercise corporate governance and improve their socio-environmental environment.

Therefore, HR was positively impacted by globalization in a positive way, establishing an integration of its processes and people, in order to seek cultural and professional diversity in the recruited professionals, which combine greater innovation and competence for the company. In addition, organizations are more flexible and open to communication, assertiveness, self-management and processes that assist in innovation, motivation and continuous improvement of processes.

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $722. Selected data for the company’s operations last year follow:

Units in beginning inventory 0
Units produced 23,000
Units sold 20,000
Units in ending inventory 3,000

Variable costs per unit:
Direct materials $180
Direct labor $340
Variable manufacturing overhead $51
Variable selling and administrative $18

Fixed costs:
Fixed manufacturing overhead $940,000
Fixed selling and administrative $820,000

Required:
a. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan.
b. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.

Answers

Answer:

Results are below.

Explanation:

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

Absorption costing:

Unitary fixed overhead= 940,000/23,000= $40.87

Unitary production cost= 180 + 340 + 51 +40.87

Unitary production cost= $610.87

Variable costing:

Unitary production cost= 180 + 340 + 51

Unitary production cost=$571

The absorption costing method includes all costs related to production and variable costs includes all variable production costs.

What are absorption costs?

Absorption costs, also known as absorption costs, are a management calculation method that combines both highly flexible and adjusted cost to produce a particular product.

Knowing the full cost of production per unit enables manufacturers to price their products.

Calculation of Production costs assuming that the method of Absorption costing:

[tex]\rm\,Unitary \;Fixed \;Overhead= \dfrac{\$940,000}{23,000}\\\\Unitary \;Fixed \;Overhead== \$40.87 \;per \;unit\\\\Unitary \;Production \;Cost= (180 + 340 + 51 +40.87)\\\\Unitary \; Production \;Cost= \$610.87[/tex]

b) Calculation of production costs by variable costing method:

[tex]\rm\,Unitary \; Production \;Cost= (\$180 +\$340 + \$51)\\\\Unitary \;Production \;Cost=\$571[/tex]

Hence, The unit product cost for one gamelan by applying absorption costing is $610.87 and by variable costing is $571.

Learn more about Absorption costing:

https://brainly.com/question/15878088

Bernie and Phil's Great American Surplus store placed an ad in the Sunday Times stating, "Next Saturday at 8:00 A.M. sharp 3 brand new mink coats worth $5,000 each will be sold for $500 each! First come, First served." Marsha LufMin was first in line when the store opened and went directly to the coat department, but the coats identified in the ad were not available for sale. She identified herself to the manager and pointed out that she was first in line in conformity with the store's advertised offer and that she was ready to pay the $500 price set forth in the store's offer. The manager responded that a newspaper ad is just an invitation to negotiate and that the store decided to withdraw "the mink coat promotion." Review the text on unilateral contracts in Section 12(b) of Chapter 12. Decide.

Answers

Answer:

This technique is called "bait and switch", it is illegal and is considered false advertising. A seller cannot falsely advertise a product and then simply say that they do not have it on stock. It is a type of sales fraud and it is prohibited by the Lanham Act.

In order for this situation to be considered legal, the seller must have advertised and sold a certain amount of coats, but it didn't sell any. I.e. the seller runs out of stock because it already sold the 3 coats.

Darby Company, operating at full capacity, sold 500,000 units at a price of $94 per unit during the current year. Its income statement is as follows:
Sales $47,000,000
Cost of goods sold 25,000,000
Gross profit $22,000,000
Expenses:
Selling expenses $4,000,000
Administrative expenses 3,000,000
Total expenses 7,000,000
Income from operations $15,000,000
The division of costs between variable and fixed is as follows:
Variable Fixed
Cost of goods sold 70% 30%
Selling expenses 75% 25%
Administrative expenses50% 50%
Management is considering a plant expansion program for the following year that will permit an increase of $3,760,000 in yearly sales. The expansion will increase fixed costs by $1,800,000 but will not affect the relationship between sales and variable costs.
Required:
1. Determine the total variable costs and the total fixed costs for the current year.
Total variable costs $_____
Total fixed costs $_____
2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.
Unit variable cost $_____
Unit contribution margin $_____
3. Compute the break-even sales (units) for the current year.
4. Compute the break-even sales (units) under the proposed program for the following year.
5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $15,000,000 of income from operations that were earned in the current year.
6. Determine the maximum income from operations possible with the expanded plant.
7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?
8. Based on the data given, would you recommend accepting the proposal?
a. In favor of the proposal because of the reduction in break-even point.
b. In favor of the proposal because of the possibility of increasing income from operations.
c. In favor of the proposal because of the increase in break-even point.
d. Reject the proposal because if future sales remain at the current level, the income from operations will increase.
e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales.

Answers

Answer:

1. Determine the total variable costs and the total fixed costs for the current year.

Total variable costs = $17,500,000 + $3,000,000 + $1,500,000 = $22,000,000 Total fixed costs = $10,000,000

2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.

Unit variable cost = $22,000,000 / 500,000 = $44 Unit contribution margin = $94 - $44 = $50

3. Compute the break-even sales (units) for the current year.

break even point = $10,000,000 / $50 = 200,000 units

4. Compute the break-even sales (units) under the proposed program for the following year.

break even point = $11,800,000 / $50 = 236,000 units

5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $15,000,000 of income from operations that were earned in the current year.

units = ($11,800,000 + $15,000,000) / $50 = 536,000 units

6. Determine the maximum income from operations possible with the expanded plant.

total units sold 500,000 + 40,000 = 540,000total contribution margin = 540,000 x $50 = $27,000,000operating income = $27,000,000 - $11,800,000 = $15,200,000

7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?

operating income = (500,000 x $50) - $11,800,000 = $13,200,000represents a decrease of $15,000,000 - $13,200,000 = $1,800,000

8. Based on the data given, would you recommend accepting the proposal?

b. In favor of the proposal because of the possibility of increasing income from operations.

In 1998, the Russian government defaulted on its bonds. According to the open-economy macroeconomic model, this should have

Answers

Answer:

An increase in the net export and Russian interest rate.

Explanation: An open economy is an economy where all players which includes traders, investors and other stakeholders in the economy both within and outside the economy freely conduct their businesses and are controlled by market forces with minimal interference by Government agencies.

According to the open-economy macroeconomic model with the defaulting by the Russian government in 1998 will definitely lead to an increase in net export and an increase in Russian Interest rate.

What are two cons of using a credit card?

Answers

interest charges and late fees, also can be credit card damage

Pearl Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2017.
Purchase
Cash paid for equipment, including sales tax of $6,200 $130,200
Freight and insurance cost while in transit 2,480
Cost of moving equipment into place at factory 3,844
Wage cost for technicians to test equipment 4,960
Insurance premium paid during first year of operation on this equipment 1,860
Special plumbing fixtures required for new equipment 9,920
Repair cost incurred in first year of operations related to this equipment 1,612
Construction
Material and purchased parts (gross cost $248,000; failed to take 2% cash discount) $248,000
Imputed interest on funds used during construction (stock financing) 17,360
Labor costs 235,600
Allocated overhead costs (fixed-$24,800; variable-$37,200) 62,000
Profit on self-construction 37,200
Cost of installing equipment 5,456
Compute the total cost for each of these two pieces of equipment.
Purchase equipment $_____
Construction equipment $_____

Answers

Answer:

i. The total cost for Purchase equipment

Particulars                                               Amount

Cash paid for equipment, including      $130,200

sales tax of $6,200

Freight and insurance cost while            $2,480

in transit  

Cost of moving equipment into               $3,844

place at factory  

Wage cost for technicians to test             $4,960

equipment  

Special plumbing fixtures required for     $9,920

new equipment                                                        

Total Purchase cost                                  $151,404

ii.The total cost of construction price of equipment

Particulars                                                            Amount

Material and purchase part                               $245,520

Labor Cost                                                          $235,600

Overhead Cost                                                   $62,000

Cost of Installing equipment                             $5,456    

total cost of construction price of equipment  $548,576

Workings

Material and purchased parts = Gross cost - Cash discount on gross cost

=$248,000 - (1%*$248,000)

=$248,000 - $2480

=$245,520

Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following transactions during the month of October.

Oct. 2 Purchased merchandise at a $4,700 price ($4,606 net), invoice dated October 2, terms 2/10, n/30.
10 Received a credit memorandum toward the return of $850 ($833 net) of merchandise that it purchased on October 2.
17 Purchased merchandise at a $8,800 price ($8,624 net), invoice dated October 17, terms 2/10, n/30.
27 Paid for the merchandise purchased on October 17, less the discount.
31 Paid for the merchandise purchased on October 2. (Payment was mistakenly delayed, which caused the discount to be lost.)

Required:
Prepare entries to record these transactions assuming that Piere Imports records invoices (a) at gross amounts and (b) at net amounts.

Answers

Answer:

Entries and their narrations are posted below

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

October 2 Purchased merchandise at a $4,700 price ($4,606 net), invoice dated

                                                      GROSS                   NET

Dr   Merchandise inventory       $4,700                   $4,606

Cr      Account payable                       $4,700                  $4,606

October 10 Received a credit memorandum toward the return of $850 ($833 net)

                                          GROSS                   NET

Dr    Account payable   $850                    $833

C         Inventory                     $850                   $833

October 17 Purchased merchandise at a $8,800 price ($8,624 net), invoice dated October 17,

                                                      GROSS                   NET

Dr   Merchandise inventory       $8,800                      $8,624

Cr      Account payable                       $8,800                     $8,624

October 27 Paid for the merchandise purchased on October 17, less the discount.

                                           

Dr    Account payable    8,800                      

Cr        Discount                   176

Cr        Cash                         8,624

October 31 Paid for the merchandise purchased on October 2.

Dr    Account payable    4,700

Cr        Cash                         4,700

A company has the following aging schedule of its accounts receivable with the estimated percent uncollectible:______.
Age Group Amount Receivable Estimated Percent Uncollectible
Not yet due $ 175,000 4 %
0-60 days past due $ 40,000 10 %
61-120 days past due $ 10,000 30 %
More than 120 days past due $ 5,000 60 %
Assuming the balance of Allowance for Uncollectible Accounts is $3,000 (credit) before adjustment, which of the following would be recorded in the year-end adjusting entry?

Answers

Answer: $14,000

Explanation:

Estimated Uncollectibles = (4% * 175,000) + ( 10% * 40,000) + ( 30% * 10,000) + (60% * 5,000)

= 7,000 + 4,000 + 3,000 + 3,000

= $17,000

Balance before adjustment is a credit of $3,000 so the adjustment for the year is;

= 17,000 - 3,000

= $14,000

n California, any apartment building with this many units must have an onsite manager, who is also known as a residential manager. What is the number of units to which this statement refers? Ten or more. Twelve or more. Sixteen or more. Twenty or more+.

Answers

Answer:

Sixteen or more.

Explanation:

It is mandatory by law in California to have an onsite manager, housekeeper, janitor, or another responsible person reside in a building with more than 16 apartments.  Onsite means the manager or caretaker must be a resident in the building complex. The manager's role is to attend to the tenant's needs and offer protection to their properties. This requirement applies if the landlord is not a resident in the apartment building.

The price of oil in international markets has dropped stunningly 60% in the past twelve months. Among the factors mentioned behind this drastic fall is the millions of barrels of oil produced in the US called shale oil and analyze:

a. The market struc ture for oil industry.
b. The supply and demand for oil in that market structure.
c. The pricing of oil at the presence of OPEC and the role of Speculators.
d. Why shale oil is a substitute for oil and explain the news in regard to the Cross elasticity of demand.

Answers

Answer:

a. The market structure for oil industry.

The market structure is monopolistic competition: there are many competitors, that hold some market power, but not as much as in oligopoly. The good that is offered is not as homogenous as in agricultural markets, and this is the reason why it is not a perfect-competition structure either.

b. The supply and demand for oil in that market structure.

Supply and demand is determined more or less freely in the market. Producers hold some market power so they charge a price that is a bit higher than the marginal cost, which would be the price in a perfect competition structure.

Consumers also have power in the demand curve because they have a fair number of options.

c. The pricing of oil at the presence of OPEC and the role of Speculators.

The OPEC forms an oligopoly, however, not all countries that produce oil are members of the OPEC, and this is why the market structure as a whole is not an oligopoly, but monopolistic competition.

Speculators can drive prices, but their influence is marginal in comparison to consumers as a whole.

d. Why shale oil is a substitute for oil and explain the news in regard to the Cross elasticity of demand.

Shale oil is a substitute because it offers the same service: providing energy, and serving as a chemical component of many products.

As for the cross elasticity of demand, this means that when the price of oil increases, the demand for shale oil increases, because people flock to the substitute.

Midland Petroleum is holding a stockholders’ meeting next month. Ms. Ramsey is the president of the company and has the support of the existing board of directors. All 12 members of the board are up for reelection. Mr. Clark is a dissident stockholder. He controls proxies for 42,001 shares. Ms. Ramsey and her friends on the board control 52,001 shares. Other stockholders, whose loyalties are unknown, will be voting the remaining 24,998 shares. The company uses cumulative voting.

Required:
a. How many directors can Mr. Clark be sure of electing?
b. How many can Ms Rmasey be sure of electing
c. How many votes could clark have if he had all the uncommitted votes
d. Does that give him control?
e. If nine directors were to be elected, and Ms. Ramsey and her friends had 70,001 shares and Mr. Clark had 48,001 shares plus half the uncommitted votes, how many directors could Mr. Clark elect?

Answers

Answer:

Midland Petroleum

a. Mr. Clark can be sure of electing = 4 directors

b. Ms Ramsey can be sure of electing = 5 directors

c. If Mr. Clark had all the uncommitted votes, he can elect  = 7 directors

d. With 7 directors, he has control.

e. Mr. Clark can elect (60,50/143,000 * 9) = 4 directors.

Explanation:

Board members = 12                

Mr. Clark control = 42,001 shares  or 35.295%

Ms. Ramsey control = 52,001 shares or 43.698%

Undecided shareholders = 24,998 shares or 21.01%

Total shareholding = 119,000 shares or 100%

Mr. Clark can elect = 35.295% of directors = 4

Ms. Ramsey can elect = 43.698% of directors = 5

Other shareholders can elect = 21.01% of directors = 3

New shareholding:

Ms. Ramsey and friends = 70,001 shares

Mr. Clark and half uncommitted votes = 60,500 (48,001 + 12,499)

Half of the other uncommitted votes = 12,499

Total votes = 143,000

Mr. Clark can elect (60,50/143,000 * 9) = 4 directors.

The adjusted trial balance of Norton Company contained the following information. Assume the tax rate is 25%:

Debit Credit
Sales revenue $390,000
Sales returns and allowances $10,000
Sales discounts 5,000
Cost of goods sold 200,000
Operating expenses 110,000
Interest revenue 8,000
Interest expense 3,000


Required:
Compute income from operations.

a. $175,000
b. $65,000
c. $50,000
d. $70,000

Answers

Answer:

b. $65,000

Explanation:

Particulars                                            Amount

Revenues

Service Revenue                                   $390,000  

Less: Sales Return and allowance       $10,000

Less: Sales Discount                             $5,000  

Net Sales Revenue                                $375,000

Less: Cost of Goods Sold                      $200,000

Gross Profit                                             $175,000

Less: Operating Expenses                     $110,000

Operating Income                                  $65,000

Thus, income from operation is $65,000

This activity is important because as world trade has grown, more companies have entered the global market. Once a firm decides to enter the global market, it must choose which means of market entry is the most appropriate. The global market entry strategies vary greatly on the dimensions of financial commitment, risk, marketing control, and profit potential.
The goal of this exercise is to demonstrate your understanding of the different types of global market entry strategies: exporting, licensing, joint venture, and direct investment. Roll over each company name to read the description of the firm's strategy, then drop it onto the correct global market entry strategy within the graphic.
1. Yoplait
2. Moodmatcher lipstick
3. McDonald's
4. Ericsson and CGCT
5. Boeing
6. Nissan
A. Indirect Exporting
B. Direct Exporting
C. Licensing
D. Franchising
E. Joint Venture
F. Direct Investment

Answers

Answer:

Throughout the clarification subsection below, the definition of the questionnaire provided is defined.

Explanation:

Indirect Exporting and Moodmatcher lipstick

Rationale: A organization like Moodmatcher lipstick manufactures the understood as a tool and promotes this through an intermediary throughout numerous governments or foreign.

Direct Exporting and Boeing

Rationale: A business including Boeing creates the goods domestically which exports anything without an intermediary throughout foreign nations.

Licensing and Yoplait

Rationale: In return for royalty as well as the fee, a business like Yoplait sells the rights to copyright, trademark, proprietary information, and perhaps other prized intellectual property.

Franchising and McDonald's

Rationale: Companies including McDonald's are licensed to launch new franchises which are one of the quickest expanding methods for market entry.

Joint Venture Ericsson and CGCT

Rationale: The Swedish networking group Ericsson has entered into a joint venture partner CGCT, another French switching group.

Direct Investment and Nissan

Rationale: A domestic company such as Nissan invests in some kind of an international subsidiary and retains it.

Appendix 1: Gross and net methods for sales discounts
The following were selected from among the transactions completed by Strong Retail Group during August of the current year:
Aug. 5. Sold merchandise on account to M. Quinn, $7,500, terms 2/10, n/30. The
cost of the merchandise sold was $4,200.
9. Sold merchandise on account to R. Busch., $4,000, terms 1/10, n/30. The
cost of the merchandise sold was $2,100.
15. Received payment on account for the sale of August 5 less the discount.
20. Sold merchandise on account to S. Mooney, $6,000, terms n/eom. The
cost of the merchandise sold was $3,300.
25. Received payment on account for the sale of August 9. 31.Received
payment on account for the sale of August 20.
A. Journalize the August transactions using the gross method of recording sales discounts.
Aug. 5 Accounts Receivable-M. Quinn 7,500
Sales 7,500
Cost of Goods Sold 4,200
Inventory 4,200
Accounts Receivable-R. Busch 4,000
Sales 4,000
Cost of Goods Sold 2,100
B. Journalize the August transactions using the net method of recording sales discounts.

Answers

Answer: Check attachment

Explanation:

A . Journalize the August transactions using the gross method of recording sales discounts

Kindly check the attachment for the solution.

B. Journalize the August transactions using the net method of recording sales discounts.

Check attachment.

Performance Obligation Fulfilled Over Time Philbrick Company signed a three-year contract to develop custom sales training materials and provide training to the employees of Elliot Company. The contract price is $1,100 per employee and the number of employees to be trained is 500. Philbrick can send a bill to Elliot at the end of every training session. Once developed, the custom training materials will belong to Elliot Company, but Philbrick does not consider them to be a separate performance obligation. The expected number to be trained in each year and the expected development and training costs follow. Number of employees Development and training costs incurred
2019
150 $
55,000
2020
250
70,000
2021
100
20,000
Total 500 $145,000
For each year, compute the revenue, expense, and gross profit reported assuming revenue is recognized over time using... 1. the number of employees trained as a measure of the value provided to the customer. Note: Round answers to the nearest dollar.

Answers

Answer:

Philbrick Company

Performance Obligation Fulfilled Over Time

Computation of the revenue, expense, and gross profit:

Year    Number of     Development     Sales            Gross

          Employees    /Training Cost     Value            Profit

2019          150            $ 55,000           $165,000      $110,000

2020       250               70,000             275,000      205,000

2021         100               20,000               110,000        90,000

Total       500          $145,000          $550,000   $405,000

Explanation:

a) Data and Calculations:

Contract price = $1,100 per employee

No. of employees to be trained = 500

Total contract value = $550,000 ($1,100 * 500)

Expected Development and Training Costs:

Year    Number of     Development

          Employees    /Training Cost

2019          150                $ 55,000

2020       250                    70,000

2021         100                    20,000

Total       500               $145,000

Label the statements regarding the Patient Protection and Affordable Care Act (ACA) as true or false.

a. The ACA establishes a national healthcare system for the United States in which the government rather than insurance companies pays for all health related expenses.
b. Under the ACA, the government has the right to fine employers or individuals for not having or providing health insurance.
c. Assume the ACA is in effect. A health insurance company is looking over a prospective individual, Alfred, and finds that Alfred goes cliff diving regularly, which was the cause of his past six concussions. He now suffers from frequent headaches. The insurance company can deny
Alfred coverage because of his preexisting medical condition.
d. To fund the ACA, new taxes will be imposed on items including medical devices and indoor tanning.
e. Under the ACA, until age 26, you can be covered under your parent's health insurance policy.

Answers

Answer:

a. FALSE

Both Employers and Employees do most of the paying not the Federal government which only steps in for subsidies to lower income households.

b. TRUE

The Government can indeed fine employers or individuals for not having or providing health insurance.

c. FALSE

They cannot deny him coverage based on his pre-existing medical condition as a result of the ACA and neither can they charge higher premiums.

d. TRUE

Funding the ACA will need the Government to raise more revenue and they plan to do so by imposing new taxes on  items including medical devices and indoor tanning.

e. TRUE.

A person under the age of 26 is to be a dependent under this Act and this includes married people under the age of 26 as well as unmarried.

5. What are the advantages of relying solely on streaming services
for TV, what are the disadvantages?
HELP ME PLEASE I WILL GIVE YOJ BRAINLYIST

Answers

the advantages are that you barely have any ads, or commercial breaks. the disadvantages are if the internet is slow then its difficult to watch your show or movie

Answer:

By watching something live and streaming. Disadvantages is not wanting to watch what you want.

A remotely located air sampling station can be powered by solar cells or by running an electric line to the site and using conventional power. Solar cells will cost $12,600 to install and will have a useful life of 4 years with no salvage value. Annual costs for inspection, cleaning, etc. are expected to be $1,400. A new power line will cost $11,000 to install, with power costs expected to be $800 per year. Since the air sampling project will end in 4 years, the salvage value of the line is considered to be zero. At an interest rate of 10% per year, which alternative should be selected on the basis of a future worth analysis?

Answers

Answer:

Since the total future worth of running an electric line of $19,353.42 is less than the total future worth of solar cells is $24,132.22, it implies that it will be cheaper to run an electric line than to use solar cells. Therefore, running an electric line should be selected.

Explanation:

The future worth analysis refers to an act of determining what the the worth of present amount of money or stream of money invested at an interest rate will after in some period or years to come.

To determine which one to select between solar cells and running an electric line, the we need to calculate the future worth of both and compared as follows:

a. Calculation of future value of solar cells

Calculation of future worth of $12,600 installation cost

FW of $12,600 = PW of $12,600 * (1 + r)^n ................ (1)

Where;

FW of $12,600 = Future worth of $12,600 installation cost = ?

PW of $12,600 = Present worth of $12,600 installation cost = $12,600

r = interest rate = 10%, or 0.10

n = number of years = 4

Substitute the values into equation (1), we have:

FW of $12,600 = $12,600 * (1 + 0.10)^4

FW of $12,600 = $12,600 * 1.4641

FW of $12,600 = $18,447.66

Calculation of future worth of annual costs for inspection, cleaning, etc. of $1,400

The future worth of annual costs for inspection, cleaning, etc. of $1,400 can also be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FW of $1,400 = M * (((1 + r)^n - 1) / r) ................................. (2)

Where,

FW of $1,400 = Future value of Annual costs for inspection, cleaning, etc. of $1,400 =?

M = Annual costs for inspection, cleaning, etc. = $1,400

r = interest rate = 10%, or 0.10

n = number of years = 4

Substitute the values into equation (2), we have:

FW of $1,400 = $1,400 * (((1 + 0.01)^4 - 1) / 0.01)

FW of $1,400 = $1,400 * 4.060401

FW of $1,400 = $5,684.56

Calculation of total future worth of solar cells

This is calculated by simply adding the FW of $12,600 and FW of $1,400 as follows:

Total future worth of solar cells = FW of $12,600 + FW of $1,400 = $18,447.66 + $5,684.56 = $24,132.22

Therefore, the total future worth of solar cells is $24,132.22.

b. Calculation of future value of running an electric line

Calculation of future worth of $11,000 installation cost

FW of $11,000 = PW of $11,000 * (1 + r)^n ................ (3)

Where;

FW of $11,000 = Future worth of $11,000 installation cost = ?

PW of $11,000 = Present worth of $11,000 installation cost = $11,000

r = interest rate = 10%, or 0.10

n = number of years = 4

Substitute the values into equation (3), we have:

FW of $11,000 = $11,000 * (1 + 0.10)^4

FW of $11,000 = $11,000 * 1.4641

FW of $11,000 = $16,105.10

Calculation of future worth of expected annual power costs of $800

The future worth of expected annual power costs of $800 can also be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FW of $800 = M * (((1 + r)^n - 1) / r) ................................. (4)

Where,

FW of $800 = Future value of expected annual power costs of $800 =?

M = Expected annual power costs = $800

r = interest rate = 10%, or 0.10

n = number of years = 4

Substitute the values into equation (4), we have:

FW of $800 = $800 * (((1 + 0.01)^4 - 1) / 0.01)

FW of $800 = $800 * 4.060401

FW of $800 = $3,248.32

Calculation of total future worth of running an electric line

This is calculated by simply adding the FW of $11,000 and FW of $800 as follows:

Total future worth of running an electric line = FW of $11,000 + FW of $800 = $16,105.10 + $3,248.32 = $19,353.42

Therefore, the total future worth of running an electric line is $19,353.42.

c. Conclusion

Since the total future worth of running an electric line of $19,353.42 is less than the total future worth of solar cells is $24,132.22, it implies that it will be cheaper to run an electric line than to use solar cells. Therefore, running an electric line should be selected.

Mickey, Mickayla, and Taylor are starting a new business (MMT). To get the business started, Mickey is contributing $200,000 for a 40% ownership interest. Mickayla is contributing a building with a value of $200,000 and a tax basis of $150,000 for a 40% ownership interest, and Taylor is contributing legal services for a 20% ownership interest. Using the research skills you learned in Week 1, access RIA Checkpoint and research what amount of gain/income each owner is required to recognize under each of the following alternative situations?

a. MMT is formed as a C corporation.
b. MMT is formed as an S corporation.
c. MMT is formed as LLC.

Answers

Answer:

a. MMT is formed as a C corporation.

Mickey and Mickayla will not recognize any gain, while Taylor must recognize $100,000 as ordinary income. Mickey and Mickayla's exchange classifies under §351, but Taylor's doesn't.

b. MMT is formed as an S corporation.

Mickey and Mickayla will not recognize any gain, while Taylor must recognize $100,000 as ordinary income. Mickey and Mickayla's exchange classifies under §351, but Taylor's doesn't.

c. MMT is formed as LLC.

Mickey and Mickayla will not recognize any gain, while Taylor must recognize $100,000 as ordinary income. Mickey and Mickayla's exchange classifies under §721, but Taylor's doesn't.

Explanation:

Basically §351 and §721 are very similar except that one applies to corporations and the other applies to partnerships and LLCs. No gain will be recognize when assets are transferred in exchange for equity, and the people involved in the exchange can control the company.

Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2005). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $1,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $5,500 in federal income taxes withheld from their paychecks during the course of the year. (use the 2016 tax rate schedules).
1. What is the total amount of Marc and Michelle’s deductions from AGI?
2. What is Marc and Michelle’s taxable income?
3. What is Marc and Michelle’s taxable income?

Answers

Answer:

$24750

$47750

Explanation:

Total amount of Marc and Michelle's deduction. From AGI:

MAX of (ITEMIZED DEDUCTION or MARRIED FILING JOINTLY)

2016 TAX SCHEDULE :

STANDARD DEDUCTION FOR MARRIED FILING JOINTLY = $12600

Personal and dependency deduction = 4,050

(4050 * 3). = $12,150

Deduction from AGI = $12,600 + $12,150 = $24750

Taxable income :

Gross income = (Marc and Michelle's salary + corporate bond)

= $(64000 + 12000 + 500) = $76500

Contribution + alimony = ($2500 + $1500) = 4000

Taxable income = ($76500 - 4000 - 24750) = $47750

Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $56,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $20,000. In year 1, Beau Geste incurs a loss of $187,500 and does not make any distributions to the partners.

-In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $67,800. This includes $13,800 of passive income from other passive activities.

-In year 2, Beau Geste earns income of $38,400. In addition, Molly contributes an additional $31,380 to Beau Geste during year 2. Molly's AGI in year 2 is $71,700 (excluding any income or loss from Beau Geste). This amount includes $10,160 in income from her other passive investments.

Based on the above information, complete the following tables: (Leave no answers blank. Enter zero if applicable.) What are the cumulative total passive suspended losses at the end of year 2?

Answers

Answer:

$20,770

Explanation:

Share of passive loss in year 1

[187,500 × 30%]

$56,250

Less: Passive income from other activities

($13,800)

Suspended loss in year 1

$42,450

Less: Share of passive income from Beau Geste in year 2 (38,400 × 30%).

($11,520)

Less passive income from other activities

($10,160)

Cumulative total passive suspended losses at the end of year 2.

$20,770

Major League Bat Company manufactures baseball bats. In addition to its goods in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and direct labor and factory overhead are applied uniformly throughout the production process.Required:You are to maintain records and produce measures of inventories to reflect the July events of this company. The June 30 balances are as follows: Raw Materials Inventory, $25,000; Goods in Process Inventory, $10,520 ($2,800 of direct materials, $3,800 of direct labor, and $3,920 of overhead); Finished Goods Inventory, $116,000; Sales, $0; Cost of Goods Sold, $0; Factory Payroll, $0; and Factory Overhead, $0.1. Prepare journal entries to record the following July transactions and events.a. Purchased raw materials for $132,000 cash (the company uses a perpetual inventory system).b. Used raw materials as follows: direct materials, $49,900; and indirect materials, $15,000.c. Incurred factory payroll cost of $173,650 paid in cash (ignore taxes).d. Assigned factory payroll costs as follows: direct labor, $142,650; and indirect labor, $31,000.e. Incurred additional factory overhead costs of $42,795 paid in cash.f. Allocated factory overhead to production at 50% of direct labor costs.2. Information about the July inventories follows. Use this information with that from part 1 to prepare a process cost summary, assuming the weighted-average method is used. (Round "Cost per EUP" to 2 decimal places.)3. Using the results from part 2 and the available information, make computations and prepare journal entries to record the following:g. Total costs transferred to finished goods for July.h. Sale of finished goods costing $132,010 for $650,000 in cash.4. Post entries from parts 1 and 3 to the following general ledger accounts5. Compute the amount of gross profit from the sales in July. (Add any underapplied overhead too, or deduct any overapplied overhead from, the cost of goods sold.)

Answers

Question Completion:

Information about the July inventories follows:

Beginning inventory 8,000 units

Started                       17,000 units

Ending inventory       11,000 units

Beginning inventory  

Materials—Percent complete 100%

Conversion—Percent complete 80%

Ending inventory  

Materials—Percent complete 100%

Conversion—Percent complete 30%

Answer:

Major League Bat Company

1. Journal Entries:

a. Debit Raw Materials Inventory $132,000

Credit Cash Account $132,000

To record the purchase of raw materials.

b. Debit Work in Process $49,900

Debit Manufacturing Overhead $15,000

Credit Raw Materials $64,900

To record materials used.

c.  Debit Factory Wages $173,650

Credit Cash Account $173,650

To record factory payroll incurred.

d. Debit Work in Process $142,650

Debit Manufacturing Overhead $31,000

Credit Factory Wages $173,650

To assign factory payroll costs.

e. Debit Manufacturing Overhead $42,795

Credit Cash Account $42,795

To record additional factory overhead costs.

f. Debit Work In Process $71,325

Credit Manufacturing Overhead $71,325

To allocate factory overhead to production at 50% of direct labor costs.

2. Computation of Equivalent Units of Production:

                                                            Materials  Conversion   Total

Beginning inventory 8,000 units     8,000          6,400

Started                       17,000 units     17,000        17,000

Ending inventory       11,000 units      11,000         3,300

Total equivalent unit                           28,000      20,300

3. Costs of Production:

Beginning Inventory                           $2,800      $7,720

Raw materials                                     49,900    213,975

Total costs                                        $52,700 $221,695

Total equivalent unit                          28,000     20,300

Cost per equivalent unit                   $1.88        $10.92

Total costs:

Started                       17,000   $31,960     17,000  $185,640  $217,600

Ending inventory        11,000    20,680      3,300      36,036    $56,716

4. Journal Entries:

Debit Finished Goods Inventory $217,600

Credit Work In Process $217,600

To record the transfer of goods.

Debit Cost of Goods Sold $132,010

Credit Finished Goods Inventory $132,010

To record the cost of goods sold.

Debit Cash Account $650,000

Credit Sales Revenue $650,000

To record the sale of goods for cash.

5. Ledger accounts:

Raw Materials Inventory

Accounts Titles       Debit         Credit

Balance                $25,000

Cash Account       132,000

Work in Process                     $49,900

Manufacturing Overhead         15,000

Work In Process

Accounts Titles       Debit         Credit

Balance              $10,250

Raw materials     49,900

Factory Wages  142,650

Manufacturing

Overhead           71,325

Finished Goods Inventory    $217,600

Balance                                      56,716

Manufacturing Overhead

Accounts Titles       Debit         Credit

Raw materials      $15,000

Factory wages       31,000

Other overheads  42,795

Work in Process applied       $71,325

Underapplied overhead          17,470

6. Income Statement:

For July

Sales Revenue                             $650,000

Cost of goods sold         132,010

Underapplied overhead  17,470  $149,480

Gross profit                                 $500,520

Explanation:

a) Data and Calculations:

June 30 Balances:

Raw Materials Inventory, $25,000;

Goods in Process Inventory, $10,520 ($2,800 of direct materials, $3,800 of direct labor, and $3,920 of overhead);

Finished Goods Inventory, $116,000;

Sales, $0;

Cost of Goods Sold, $0;

Factory Payroll, $0; and

Factory Overhead, $0.1.

Presented below are certain account balances of Oriole Products Co.

Rent revenue $6,520 Sales discounts $8,240
Interest expense 13,460 Selling expenses 99,440
Beginning retained earnings 114,900 Sales revenue 407,700
Ending retained earnings 134,130 Income tax expense 25,015
Dividend revenue 71,910 Cost of goods sold 188,927
Sales returns and allowances 12,910 Administrative expenses 75,820
Allocation to noncontrolling interest 20,040

From the foregoing, compute the following:
a.Total net revenue:_________
b. Net income:__________
c. Income attributable to controlling stockholders:___________


Answers

Answer:

a. Sales revenue                                         407700

Sales discounts                             8240

Sales returns and allowances      12910    (21150)

Net sales                                                     386,550

Rent revenue                                               6520

Dividend revenue                                         71910

Total net revenue                                        $464980

b. Total net revenue                            $464980

Less: Expenses  

Cost of goods sold               188927  

Selling expenses                   99440  

Administrative expenses      75820  

Interest expense                   13460

Income tax expense             25015   $402662

Net income                                          $62318

(c)  Total consolidated net income               $62318

Less: Allocation to noncontrolling interest  $20040

Income attributable to controlling             $42278

stockholders  

Other Questions
Memory locations in personal computers are usually given in hexadecimal. If a computer programmer writes a program that requires 100 memory locations, determine the last memory location that is used if the program starts at location 2C8DH 16 hexadecimal Do you know if you could help me on my recent question? What kind of sequence is this? 1, 8, 64, 512, ...arithmetic, geometric, neither or both why was cotton a time consuming crop to grow?? What is the volume of a substance that has a mass of 59 g and a density of 1.98 g/mL?(show all work) If an unknown word is a describing word, the reader should find its meaning by looking for relatednouns.verbs.adverbs.adjectives. The image shown is not to scale. Which of the following best describes both Phobos and MAVEN Comparative financial statement data for Bridgeport Corp. and Sarasota Corp., two competitors, appear below. All balance sheet data are as of December 31, 2017. Bridgeport Corp. Sarasota Corp. 2017 2017 Net sales $2,340,000 $806,000 Cost of goods sold 1,527,500 442,000 Operating expenses 367,900 127,400 Interest expense 11,700 4,940 Income tax expense 110,500 46,800 Current assets 434,600 195,436 Plant assets (net) 691,600 181,646 Current liabilities 86,223 43,831 Long-term liabilities 141,050 52,889 Net cash provided by operating activities 179,400 46,800 Capital expenditures 117,000 26,000 Dividends paid on common stock 46,800 19,500 Weighted-average number of shares outstanding 80,000 50,000 Required:Compute the net income and earnings per share for each company for 2017. b. Compute working capital and the current ratios for each company for 2017. c. Compute the debt to assets ratio and the free cash flow for each company for 2017. Which of the following is NOT a potential side effect of stimulants?Depressed heart rateAnxietyLoss of appetiteSeizure Determine the Northward and the Eastward components of a 75 m long displacement vector which points in a direction of 27^o E of N. Solve for x3x - 10 = -9x + 14 Your Turn Read the second stanza (lines 8-14) from Perseus and answer the follow-up questions. Yet even as I lifted up the head and started from that place of gazing silences and terrored stone, I thirsted to destroy. None could have passed me then no garland-bearing girl, no priest or staring boyand lived. Part B Which textual evidence best supports your answer to Part A?Group of answer choicesthe similarity between the gazing silences in line 10 and the staring boy in line 14the connotation of the words gazing and terrored in line 10the description of a garland-bearing girl in line 13the contrasting word yet in line 8 Cylinder A is mathematically similar to cylinder B. The height of cylinder A is 10cm and its surface area is 440cm2 . The surface area of cylinder B is 3960cm2 . Calculate the height of cylinder B There are 3 blue rings, 4 red rings, and 8 yellow rings. Hint: _:_(I Need part A, B and C)Part A: write the ratio of red rings to all rings.Part B: write the ratio of red rings to blue rings.Part C: write the simplified ratio of blue rings to all rings. In the negative feedback mechanism for hypotension, decreased urine volume would:Question 33 options:increase blood pressuredecrease blood pressurehave no effect on blood pressureIn the negative feedback mechanism for hypertension, increased urine volume would:Question 39 options:have no effect on blood pressureincrease blood pressuredecrease blood pressure What is greatly affected by atmospheric pressure? Complete the equation.X 2 = 2 x 10 How many moles would be in 24.23 grams of SrSO4?Use two digits past the decimal for all values. Ken went to a county fair and spent $5 on admission, $6.50 on games, and $7.21 on food. If he had $30 before he went to the fair, how much money does he have left? Givenl ||Il n, find the value of x.7m(3x-4)n(6x+13)