Answer:
d) $0.30 per pound
Explanation:
The solution of minimum transfer price is provided below:-
Here, If the transferor division has spare capacity then variable cost per unit is the minimum transfer price also when the division of the transferor sells over variable cost per unit then the division of the transferor receives benefit.
Therefore,
Minimum transfer price = Variable expenses ÷ Pounds of product
= $42,000 ÷ $140,000
= $0.30 per pound
So, we have calculated the minimum transfer price by using the above formula.
Company A has been experiencing lost sales and high returns recently, so they have decided to undertake a comprehensive quality program. The program would require additional inspection of products prior to shipment at an estimated cost of 45000, and the upgrading of production equipment at an estimated cost of 400000. Company A knows that if it undertakes this program, it will be able to reduce warranty repair costs by 25000. They also know they will be able to avoid lost profits by retaining customers, but they cannot quantify that benefit with any degree of precision.Should company A go ahead with the quality program?
Answer:
Explanation:
Incremental cost
Inspection cost prior to shipment - 45,000
Upgrading of equipment - 400,000
Incremental benefit - 25,000
The incremental cost of improving quality far outweigh the incremental benefit
Even though loss of profit was avoided by retaining existing customers , yet the quality improvement program dies not guarantee additional customers and profit to write off or reduce the incremental cost .
Therefor , it is not advisable fort the company to go on with the quality program.
The following information pertains to JAE Corp. at January 1, 2018:
Common stock, $11 par, 12,000 shares authorized, 2,400 shares issued and outstanding: $26,400
Paid-in capital in excess of par, common stock 16,700
Retained earnings 74,600
JAE Corp. completed the following transactions during 2018:
Issued 1,200 shares of $11 par common stock for $29 per share.
Repurchased 230 shares of its own common stock for $26 per share.
Resold 50 shares of treasury stock for $27 per share.
Required:
a. How many shares of common stock were outstanding at the end of the period?
b. How many shares of common stock had been issued at the end of the period?
c. Organize the transactions data in accounts under the accounting equation.
d. Prepare the stockholders' equity section Of the balance sheet reflecting these transactions. Include the number Of shares authorized, issued, and outstanding in the description of the common stock.
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
a. At The End of Period Outstanding Shares = Issue Share + Beginning Shares + Resold Share - Repurchase Share
= 1,200 + 2,400 + 50 - 230
= 3,420 Shares
B) Issued Shares = Issued Shares + Beginning Shares
= 1,200 + 2,400
= 3,600 Shares
c. The c part is shown in the excel spreadsheet kindly find it below.
d). Balance Sheet
Particular Amount ($)
Common stock $25,200
PIC in excess of treasury stock $50
PIC in excess of common stock $38,300
Retained earnings $74,600
Less-treasury stock -$4,680
Total equity of stockholder $133,470
The following information is for Redwood Inc. for the year ended December 31, 2016. Redwood had a cash and cash equivalents balance of $5,600 on January 1, 2016.
Cash Received from:
Customers $ 1,940
Interest on investments 220
Sale of land 120
Sale of common stock 640
Issuance of debt securities 2,040
Cash Paid for:
Interest on debt 320
Income tax 84
Debt principal reduction 1,540
Purchase of equipment 4,500
Purchase of inventory 1,000
Dividends on common stock 220
Operating expenses 520
Required:
Prepare a statement of cash flows for the year using the direct method for operating activities. (Amounts to be deducted should be indicated with a minus sign.)
Answer and Explanation:
The preparation of the cash flow statement using the direct method is presented below:
Redwood Inc.
Cash flow statement
For the year ended December 31, 2016
Cash flow from operating activities
Cash Received from Customers $1,940
Interest on investments $220
Less: Interest on debt -$320
Less: Income tax -$84
Less: Purchase of inventory -$1,000
Less: Operating expenses -$520
Net cash provided by operating activities $236
Cash flow from investing activities
Sale of land $120
Less: Purchase of equipment -$4,500
Net cash used by investing activities -$4,380
Cash flow from financing activities
Sale of common stock $640
Issuance of debt securities $2,040
Less: Debt principal reduction -$1,540
Less: Dividends on common stock -$220
Net cash provided by financing activities $920
Decrease in cash -$3,224
Add: Beginning cash balance $5,600
Ending cash balance $2,376
The items which shows in a positive sign indicates the cash inflow and the items which shows in a negative sign indicates the cash outflow and the same is to be considered
Just before the outbreak of the Corona virus you bought a stock expected to pay a constant dividend (without growth) once every year for the foreseen future. Right after the outbreak you revalue the stock. Due to fact that the company will make zero profits this year, you expect that the dividend at the end of the year cannot be paid. However, you expect the previous dividend schedule to resume in 2 years from now. According to the Dividend Growth Model, how much did your stock lose in value (in percent) due to the corona virus outbreak? Assume that the required return for this stock is 5%.
Answer: 9.3%
Explanation:
If the company continues to payoff its dividend at current rate, then the price of stock will be:
= Dividend/Rate of return
= 1/5%
= 1/0.05
= 20
Now, when the company isn't expected to pay any dividends for the next two years, the price of stock at the end of year 2 will be:
= Dividend/Rate of return
= 1/5%
= 1/0.05
= 20
Price of stock today will be the present value of p2. This will be:
= 20/(1.05^2)
= 20/1.1025
= 18.14
Loss in value= (20-18.4)/20 × 100
= 1.86/20 × 100
= 9.3%
An investor is given the two investment alternatives (Assets A and B) with the following characteristics: Asset Expected Return Standard Deviation of Returns A 18.4 percent 16.5 percent B 10.8 percent 6.8 percent What is the standard deviation of a portfolio comprised of 60 percent of an investor's wealth invested in Asset A and 40 percent invested in Asset B if the correlation between the returns of A and Asset B are 0.70?
Answer:
12.00%
Explanation:
As per the given question the solution of standard deviation of a portfolio is provided below:-
Standard deviation of a portfolio = √(Standard deviation of Product 1)^2 × (Weight 1)^2 + Standard deviation of Product 2)^2 × (Weight 2)^2 + 2 × Standard deviation of product 1 × Standard deviation of product 2 × Weight 1 × Weight 2 × Correlation
= √(0.165^2 × 0.6^2) + (0.068^2 × 0.4^2) + (2 × 0.6 × 0.4 × 0.165 × 0.068 × 0.7)
= √0.009801 + 0.0007398 + 0.00376992
= √0.01431076
= 0.119628592
or
= 12.00%
So, we have calculated the standard deviation of a portfolio by using the above formula.
The before-tax income for Ivanhoe Co. for 2020 was $104,000 and $81,200 for 2021. However, the accountant noted that the following errors had been made:
1. Sales for 2020 included amounts of $39,000 which had been received in cash during 2020, but for which the related products were delivered in 2021. Title did not pass to the purchaser until 2021.
2. The inventory on December 31, 2020, was understated by $9,400.
3. The bookkeeper in recording interest expense for both 2020 and 2021 on bonds payable made the following entry on an annual basis.
Interest Expense 14,400 Cash 14,400 The bonds have a face value of $240,000 and pay a stated interest rate of 6%. They were issued at a discount of $16,000 on January 1, 2020, to yield an effective-interest rate of 7%.
4. Ordinary repairs to equipment had been erroneously charged to the Equipment account during 2020 and 20221. Repairs in the amount of $8,600 in 2021 and $9,300 in 2022 were so charged. The company applies a rate of 10% to the balance in the Equipment account at the end of the year in its determination of depreciation charges.
Prepare a schedule showing the determination of corrected income before taxes for 2020 and 2021.
Answer:
Corrected Income for 2020 is $ 86540 and for 2021 is $160,610
Explanation:
Ivanhoe Co.
Correction of Income for 2020 2021
The before-tax income $104,000 $81,200
1) Sales (39,000) 39000
2) Inventory (9,400) 9,400
3) Entry wrongly made 14,400 14,400
4) Correct Entry 15,680 15,680
5) Add Depreciation 860 930
Corrected Income $ 86540 $ 160,610
1) Sales are included when the purchaser gets the title . They are the liability of the seller so they will be deducted from 2020 sales and added to 2021.
2) Ending inventory is deducted from COGS as it is understated it will be deducted from 2020 income and added to the 2021 income when it becomes the opening inventory.
3) Interest was received not given so the it will be treated as revenue not expense and added to the income statement.
4) Actual interest received was ($ 240,000- $16,000)* 7% = $ 15680. So an entry for actual interest will be made.
5) Additional amount of depreciation was charged to 2020 and 2021 income statement which will be added back. 10 % of $ 8600= $ 860 for 2020 and 10% of $ 9,300= $ 930 for 2021
Accounting: Identifying adjusting entries with explanations?
For each of the following entries, enter the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.)
A. To record receipt of unearned revenue
B. To record this periods earning of prior unearned revenue
C. To record payment of an accrued expense
D. To record receipt of an accrued revenue
E. To record an accrued expense
F. To record an accrued revenue
G. To record this periods use of a prepaid expense
H. To record payment of a prepaid expense
I. To record this periods depreciation expense
1. Rent Expense Dr: $2,000
Prepaid Rent Cr. $2,000
2. Interest Expense Dr. $1,000
Interest Payable Cr. $1,000
3. Depreciation Expense Dr. $4,000
Accumulated Depreciation Cr. $4,000
4. Unearned Professional Fees Dr. $3,000
Professional Fees Earned Cr. $3,000
5. Insurance Expense Dr. $4,200
Prepaid Insurance Cr. $4,200
6. Salaries Payable Dr. $1,400
Cash Cr. $1,400
7. Prepaid Rent Dr. $4,500
Cash Cr. $4,500
8. Salaries Expense Dr. $6,000
Salaries Payable Cr. $6,000
9. Interest Receivable Dr. $5,000
Interest Revenue Cr. $5,000
10. Cash Dr. $9,000
Accounts Receivable (from consulting) Cr. $9,000
11. Cash Dr. $7,500
Unearned Professional Fees Cr. $7,500
12. Cash Dr. $2,000
Interest Receivable Cr. $2,000
Answer:
1.. Rent Expense Dr: $2,000
Prepaid Rent Cr. $2,000
G
2. Interest Expense Dr. $1,000
Interest Payable Cr. $1,000
E
3. Depreciation Expense Dr. $4,000
Accumulated Depreciation Cr. $4,000
I
4. Unearned Professional Fees Dr. $3,000
Professional Fees Earned Cr. $3,000
B
5. Insurance Expense Dr. $4,200
Prepaid Insurance Cr. $4,200
G
6. Salaries Payable Dr. $1,400
Cash Cr. $1,400
C
7. Prepaid Rent Dr. $4,500
Cash Cr. $4,500
H
8. Salaries Expense Dr. $6,000
Salaries Payable Cr. $6,000
E
9. Interest Receivable Dr. $5,000
Interest Revenue Cr. $5,000
F
10. Cash Dr. $9,000
Accounts Receivable (from consulting) Cr. $9,000
D
11. Cash Dr. $7,500
Unearned Professional Fees Cr. $7,500
A
12. Cash Dr. $2,000
Interest Receivable Cr. $2,000
D
Explanation:
When a fee is received in advance for a service yet to be rendered, the revenue for such fee is said to be unearned. The entries required are
Debit Cash account and Credit Unearned fees or deferred revenue.
As the service is performed and the revenue is earned, debit Unearned fees and credit revenue.
When revenue is earned but cash is yet to be received,
Debit Accounts receivable
Credit Revenue account
When cash is received,
Debit Cash account
Credit Accounts receivable.
When insurance is paid in advance, the entries required are
Debit Prepaid Insurance
Credit Cash account
As time elapses and the insurance expires,
Debit Insurance expense
To record depreciation of an asset, Debit depreciation expense account , credit Accumulated depreciation expense account.
Select the correct answer from each drop-down menu.
What caused the adoption of the current Constitution of Virginia?
The current Constitution of Virginia was adopted in 1971. This constitution incorporated the federal (EDUCATION, SPEECH, VOTING) Rights Act and the (CIVIL, CONSUMER, EQUALITY) Rights Act, which were passed to promote racial equality.
Answer: Voting and Civil
Explanation: These rights were in the 1971 constitution to promote racial equality.
Waldo consumes only apples and bananas and bananas are an inferior good for him. The price of apples increases, but there is an increase in his income that keeps him on the same indifference curve as before. (Waldo has convex preferences, and he prefers more to less of either good.)
a After the change, Waldo will buy fewer of both goods.
b After the change, Waldo will buy more of both goods.
c After the change, Waldo will buy more bananas and fewer apples.
d After the change, Waldo will buy fewer bananas and more apples.
e We would need to know his utility function to determine whether any of the above statements are true.
Answer:
The correct answer to this question is option C
Explanation:
Solution
Any difference curve will show all the combinations of goods that gives the consumer the same level of utility or same level of satisfaction.
For this, after the change Waldo will by more bananas and few apples
From the given question, The right answer here is option C
With practical illustration, discuss how managers can leverage on organizational behaviour components to maximize business success.
Answer:
Within every organisation that is made up of humans, people are usually placed in groups and units. Because these units collectively make up the organisation, it is important to understand how people behave when they are placed in them. The study of the above is referred to as Organisational Behaviour.
When discussing Organisational Behavior, one has to look at the following:
1. People: Every organisation needs the right people to survive. It needs strong leadership and competent people who are culture fit with the ability to key into the vision, mission and objectives of the organisation and run with it with minimal supervision.
Practically speaking, let's assume Tendon LLC is a start-up, the culture of the organisation will most likely reflect the values, habits and tendencies of the CEO. If the CEO values partnerships, integrity, quality, he'd lookout for those qualities in the heads of departments who he'd hire to manage units within the organisation. Those, in turn, will do the same. The extent to which such values are implemented will determine the success of the organisation, to a large extent.
Leadership: Companies that can develop leaders the fastest will eventually win in the market place. For the sake of this explanation, let's say Leadership is the ability to influence others towards the attainment of organisational goals which are ethical and profitable and to make them love doing it.
Strong and quality leadership prevents high attrition rates and ensure cohesion within teams. If Tendon LLC, for instance, enters the market with a stronger team that Reflex LLC who has been in the business for 15 years, the probability that Tendon will kick Reflex out of the market is high. One of the attributes of leaders are they groom other leaders quickly, they share information rather than hoard them, as they share what they know, they learn more and have more to share thus there is a free and increasing flow of knowledge.
Other attributes of good leadership are accountability and ownership mentality. Leaders don't own the business but they show up every day like they own it and put in the work like they would if they own it. Contrast the above with Reflex who has staff that only show up to work because they have to and do only the bit they are required to.
2. Structure: This simply refers to the various formal relationships that have been created within the organisation for the effective working of the same. For example, there is the Accounting Unit, Human Resources Unit, Marketing Unit, Customer Care Unit, Board of Directors, Executive Management etc.
The relationship between each of these units/ roles servers to clarify reporting structures thus removing any ambiguity with the contractual, political and power relationships between the organisation.
3. Technology: Technology in some industries has replaced a lot of jobs. The purpose of technology is to make life and work simpler, easier. However, in certain industries, for instance, robots have taken over the jobs of millions of people. This simply means that the future of organisations cannot exist without technology. Looking at it from the entrepreneur’s perspective, it is cheaper in the long run to have robots. Robots don't take sick and maternity leaves, come late to work or feel bad. They simply get the job done. This means more profit in the long run.
4. Social System:
Where ever there is a group of people, organised towards a common goal, a social system is most likely to emerge. The values, attributes, personality and thinking of the leaders in any organisation will always influence its social system/ culture. Just like it is important to form healthy habits as an individual, an organisation must form social systems that are healthy and critical to the attainment of its organisational objectives.
Automattic Inc --an American company-- for instance, has successfully codified its social system such that as employees are coming on board, this is communicated to them and they sign off on it. Thus, it becomes like a social contract which will guide their behavior during their stay there.
5. Environment
Every organisation must take into cognisance its internal and external environments. If the external environment is conducive for business, then there is one less factor to worry about. If however, just like in recent times, workers cannot come physically to work due to a pandemic, the behaviour of the organisation is altered. If they do not quickly adjust their operations to accommodate this new behaviour, it will translate to the loss of man-hours, loss of value to customers, loss of customers and ultimately an erosion of the bottom line of the business. So is the internal environment. The internal environment must be conducive for employees to work. The environment must be such that encourages and elicits creativity, problem-solving, teamwork and cohesion.
Cheers!
Beta Industries is considering a project with an initial cost of $6.9 million. The project will produce cash inflows of $1.52 million a year for seven years. The firm uses the subjective approach to assign discount rates to projects. For this project, the subjective adjustment is +2.2 percent. The firm has a pretax cost of debt of 9.1 percent and a cost of equity of 17.7 percent. The debt-equity ratio is 2.67 and the tax rate is 34 percent. What is the net present value of the project? (Round the answer to the nearest $100.)
Answer:
The net present value of the project is $173,200
Explanation:
According to the given data we have the following:
Let Weight of debt = Wd = x
Weight of equity = We = 1-x
Debt / equity = 2.67
x / (1-x) = 2.67
3.67x = 2.67
Weight of Debt = Wd = x = 0.72752
Weight of Equity = We = (1-x) = 1-0.72752 = 0.27248
Cost of debt = rd = 9.1%
Cost of equity = re = 17.7%
Tax rate = t = 34%
Therefore, WACC = [Wd * rd * (1-t)] + [We*re]
= [0.72752 * 9.1%*(1-34%)] + [0.27248 * 17.7%]
= 4.36949% + 4.82290%
= 9.19239%
Hence, Discount rate for the project = 9.19%+2.2% = 11.39%
The net present value of the project is $173,200
Merck & Co., Inc. is a global, research-driven pharmaceutical company that discovers, develops, manufactures, and markets a broad range of human and animal health products. The following are excerpts from the financial review section of the company’s annual report.
MERCK & CO., INC.
Financial Review Section (partial).
In the United States, the Company has been working with private and governmental employers to slow the increase of health care costs.
Outside of the United States, in difficult environments encumbered by government cost containment actions, the Company has worked with payers to help them allocate scarce resources to optimize health care outcomes, limiting potentially detrimental effects of government actions on sales growth.
Several products face expiration of product patents in the near term.
The Company, along with other pharmaceutical manufacturers, received a notice from the Federal Trade Commission (FTC) that it was conducting an investigation into pricing practices.
Required:
1. In light of the above excerpts from Merck's annual report, discuss some unique pricing issues faced by companies that operate in the pharmaceutical industry.
2. What are some reasons why the same company often sells identical drugs for dramatically different prices in different countries? How can the same drug used for both humans and animals cost significantly different prices?
3. Suppose that Merck has just developed a revolutionary new drug. Discuss the steps it would go through in setting a price. Include a discussion of the information it would need to gather, and the issues it would need to consider.
Find the given attachment
Sarbanes-Oxley does not require:
A) companies and their independent accountants to report on the effectiveness of the companies' internal controls.
B) companies to turn over responsibility for establishing and maintaining internal controls for financial reporting to auditors.
C) all publicly held companies to comply with the act.
D) companies to file their internal control reports with the 10-K report with the Securities and Exchange Commission.
Answer:
B) companies to turn over responsibility for establishing and maintaining internal controls for financial reporting to auditors.
Explanation:
Sarbanes- Oxley is popularly called SOX and which is also know as the ''Public Accounting Reform and Investor Protection Act'' in the United States' Senate and ''Corporate and Auditing Accountability, Responsibility and Transparency Act'' is a USA federal law the sets out new regulations for all U.S public company boards, management and public accounting firms. Some part of the Act makes provisions that apply to privately owned companies.
The Sarbanes-Oxley is named after the bill sponsors that is Senator Sarbanes and a U.S Representative known as Micheal G. Oxley and this bill makes sure that the top management of a company must each individually determine and certify the accuracy of all financial information provided or stated. This bill was enacted in 2002 to curb a number of major corporate accounting scandals, especially those affecting big accounting firms like ; Enron, Tyco International, Adelphia, Peregrine Systems, and WorldCom that cost investors to loose a lot of money when the their shares collapsed.
As a guiding principal companies and organizations are supposed to adhere to the options mentioned above except for option B which states: companies to turn over responsibility for establishing and maintaining internal controls for financial reporting to auditors.
Tulip growing is a perfectly competitive industry, and all tulip growers have the same cost curves. The market price of tulips is $25 a bunch, and each grower maximizes profit by producing 2,000 bunches a week. The average total cost of producing tulips is $20 a bunch, and the average variable cost is $15 a bunch. Minimum average variable cost is $12 a bunch.
Draw a graph representing a tulip grower’s short-run cost curves (ATC, AVC, and MC curves). On the vertical axis, label the $25.00 price, average total cost ($20.00) and average variable cost ($15.00) of producing 2,000 tulips, and the lowest possible average variable cost of $12.00.
a. What is the economic profit that each tulip grower is making in the short run? Please show your calculations.
b. What is the lowest price at which the tulip grower will produce (instead of shutting down)?
c. What is each grower’s profit at the shutdown point?
d. At a price of $25.00 per bunch, would we expect entry or exit in the long run?
Answer:
a) $10,000
b) $12
c) The grower has a loss at the shutdown price
d) New firms will enter the market in the long run
Explanation:
Find the given attachments
The rock cycle is an example of the ______ of energy and matter?
On January 1, 20X8, Polo Corporation acquired 75 percent of Stallion Company's voting common stock for $300,000. At the time of the combination, Stallion reported common stock outstanding of $200,000 and retained earnings of $150,000, and the fair value of the noncontrolling interest was $100,000. The book value of Stallion's net assets approximated market value except for patents that had a market value of $50,000 more than their book value. The patents had a remaining economic life of ten years at the date of the business combination. Stallion reported net income of $40,000 and paid dividends of $10,000 during 20X8.
Required:
a) Based on the preceding information, what balance will Polo report as its investment in Stallion at December 31, 20X8, assuming Polo uses the equity method in accounting for its investment?
Answer:
Polo will report $318,750 as its investment in Stallion at December 31, 20X8
Explanation:
Common stock = $300,000 acquired at 75%
Net income = $40,000
Pay dividends = $10,000
Increase in value of Patent = $50,000
Economic Life = 10
Amortization = $5,000
Therefore, the $ 5000 would be reduced from the net income.
Investments in Polo = $300,000 + [0.75 × (40000 - 10000 - 5000)]
= $300,000+ 0.75(25,000)
= $300,000+ $18,750
= $318,750
Laura Bryant joined Kellogg's straight after university in 2002. She joined the Field Sales team initially. This involved visiting five to ten supermarkets a day to develop relationships at a local level. After two years her hard work was rewarded and she was promoted to Customer Marketing Manager at Head Office. This helped to raise her profile as she wanted to move into marketing. With support from her manager, Laura made the transition from Sales to Marketing as Assistant Brand Manager on Rice Krispies and Frosties. In 2009 she was promoted again to manage the marketing plan for Special K and she is now Brand Manager for Kellogg's Cornflakes. The company has helped motivate her to climb the hierarchy of needs and achieve her career ambitions.
A. Identify and explain the theory of motivation applied by the manager at Kellog’s company. Identify each level and support your answer from examples from the case.
B. Herzberg's motivational factors and Maslow's esteem and self-actualization needs are similar. Explain how organizations can meet these needs.
Answer:
A. The manager at Kellogg's company applied Herzberg's two factors motivational theory. Kellogg provided Laura the enabling environment by creating organizational policies and procedures, supervision, relationships with co-workers and supervisors, physical work environment, job security, promotions, and rewards which propelled Laura to aspire for great responsibilities and achieve her career ambitions.
By applying the motivational factors, such as recognition of Laura's efforts, giving her appropriate responsibilities at each level of her development in the organization, and raising her profile and advancement with promotions, Laura's manager motivated her with what Herberg described as "intrinsic job elements." And the Kellogg company must have provided the extrinsic job elements which enabled both the manager and Laura to perform their jobs well.
B. Herzberg's motivational factors are the intrinsic job elements like achievement, recognition, nature of work, responsibility, advancement, and growth and Maslow's self-esteem and self-actualization needs are similar. Maslow's self-esteem and self-actualization needs indicate that an individual, after satisfying physiological, security, and sociological needs, will aspire to greater needs. These greater needs stated as self-esteem and self-actualization needs are represented by such factors as respect, valued work contribution in a supportive environment, and a sense of personal responsibility and achievement, among others.
Organizations can meet these self-esteem and self-actualization needs (according to Maslow) by being aware of and promoting Herzberg's two factors motivational model, thus creating the enabling environment for individual achievement, advancement, and growth. In Laura's Kellogg Company, she was given a chance (employment), put in relevant positions, promoted several times, and was motivated "to climb the hierarchy of needs and achieve her career ambitions."
Explanation:
Herzberg's two factors motivational theory states that "two factors affect motivation in the workplace." Herzberg called these factors, "the hygiene factors and motivating factors." Hygiene factors are "extrinsic job factors that will cause an employee to work less if they are not present." But, motivating factors encourage an employee to work harder if present.
Maslow identified human needs in a hierarchical order, starting from physiological needs (food and other basic necessities of life), security needs (job security, financial security, etc.), sociological needs (acceptance and love), self-esteem needs (respect, achievement, recognition, etc.), and finally self-actualization needs (creativity, peak experience of life, objectivity, etc.).
A Company processes pine rosin into three products: turpentine, paint thinner, and spot remover. During May, the joint costs of processing were $720,000. Production and sales value information for the month is as follows: Product Units Produced Sales Value at Split-off Point Turpentine 15,000 liters $120,000 Paint thinner 15,000 liters $100,000 Spot remover 7,500 liters $50,000 Determine the amount of joint cost allocated to Paint thinner if the physical-measure method is used.
Answer:
$288,000
Explanation:
As per the given question the solution of the amount of joint cost allocated to Paint thinner is provided below:-
Here, we need to find out the amount of joint cost allocated to Paint thinner so we will find out first total units produced of each product and joint cost allocated to paint thinner which is follow below:-
Total units produced of each product = Turpentine + Paint thinner + Spot remover
= 15,000 liters + 15,000 liters + 7,500 liters
= 37,500
Joint cost allocated to paint thinner = Paint thinner of total units produced ÷ Total units produced of each product
= 15,000 ÷ 37,500
= 40%
Joint cost allocated to Paint thinner = Joint cost of processing × Joint cost allocated to paint thinner
= $720,000 × 40%
= $288,000
To reach the amount of joint cost allocated to Paint thinner we simply multiply the joint cost of processing with joint cost allocated to paint thinner.
Tamera and Rupert each applied for the same credit card through the same company. Tamera has a positive credit history. Rupert has a negative credit history.
Which compares their credit limits and likely interest rates?
Answer:
Tamera's credit limit is most likely higher than Rupert's, and her interest rate is most likely lower
Explanation:
Credit limit can be defined as the highest or maximum amount of credit that either a financial institution or other lender will tend to extend to a debtor due to a particular line of credit or allow a consumer to spend using a credit card in which the limits are determined by banks, alternative lenders, and credit card companies and are often based on several pieces of information which are related to the borrower.
INTEREST RATE can be defined as the amount that are been charged and said to be expressed as a percentage of the principal, by a lender to a borrower for the use of an assets.
Therefore Tamera's credit limit is most likely higher than Rupert's, and her interest rate is most likely lower because they both
applied for the same credit card through the same company in which Tamera has a positive credit history while Rupert has a negative credit history.
Answer:
The Answer is A in Edge
Explanation:
quiz
An investor owns 5,000 shares of IBM stock, $105 per share. He thinks that there is no large rise and possible drop in price. This investor decides to sell 50 December 110 call option at $4, receiving $20,000. Note: Each call option contract provides for the right to buy 100 shares of stock. December 110 call option means that the strike price of the call is 110 and it matures in December.
Required:
1. If IBM stock price rises from $105 to $112, the profit associated with the passive strategy is __________ and the profit associated with the covered call writing strategy is ____________.
Answer:
If IBM stock price rises from $105 to $112, the profit associated with the passive strategy is $ 35,000 and the profit associated with the covered call writing strategy is $ 45,000 .
Explanation:
Shares = 5000
Price of shares = $105
Sell Price = $112
The profit associated with the passive strategy = $(112 - 105) × 5000
= $ 35,000
Now with covered call also included in the strategy the profit/loss from covered call can be calculated as
Strike Price = $110
Spot Price = $112
Total Shares on which Call options are sold = 50 × 100 = $5000
Total Premium received = 5000 × 4 = $20000
(Spot Price - Strike Price ) × Total Shares
= $(112 - 110) × 5000
= $10,000
Hence Net Profit = Premium received - $10,000 = $20,000 - $10,000
= $ 10000
Hence the profit associated with the covered call writing strategy
= $35,000 + $10,000
= $ 45,000
The following transactions of Houston Pharmacies occurred during 2017 and 2018:
2017
Jan. 9 Purchased computer equipment at a cost of $ 9,000, signing a six-month, 7%
note payable for that amount.
29 Recorded the week's sales of $ 69,000, three-fourths on credit and one-fourth
for cash. Sales amounts are subject to a 6% state sales tax. Ignore cost of
goods sold.
Feb. 5 Sent the last week's sales tax to the state.
Jul. 9 Paid the six-month, 7% note, plus interest, at maturity.
Aug. 31 Purchased merchandise inventory for $ 3,000, signing a six-month, 11% note
payable. The company uses the perpetual inventory system.
Dec. 31 Accrued warranty expense, which is estimated at 3% of sales of $ 601,000.
31 Accrued interest on all outstanding notes payable.
2018
Feb. 28 Paid the six-month 11% note, plus interest, at maturity.
Journalize the transactions in Houston’s general journal. Explanations are not required.
Answer:
Please see below for all the journal entries required for Houston.
Explanation:
2017
Jan. 9
Debit: Computer Equipment $9,000
Debit: Interest Expense $630
Credit: Interest Payable ($9,000 x 7%) $630
Credit: Notes Payable $9,000
Jan. 29
Debit: Accounts Receivables ($69,000 x 3/4) $51,750
Debit: Cash ($69,000 x 1/4) $17,250
Credit: Sales Tax Payable ($69,000 x 6%) $4,140
Credit: Sales $69,000
Feb. 5
Debit: Sales Tax Payable $4,140
Credit: Cash $4,140
Jul. 9
Debit: Interest Payable ($9,000 x 7%) $630
Debit: Notes Payable $9,000
Credit: Cash $9,630
Aug. 31
Debit: Inventory $3,000
Debit: Interest Expense $330
Credit: Interest Payable ($3,000 x 11%) $330
Credit: Notes Payable $3,000
Dec. 31
Debit: Warranty Expense ($601,000 x 3%) $18,030
Credit: Accrued Warranty $18,030
Dec. 31
Debit: Interest Payable $330
Credit: Accrued Interest $330
2018
Feb. 28
Debit: Accrued Interest $330
Debit: Notes Payable $3,000
Credit: Cash $3,330
The management at Dime Corporation is investigating purchasing equipment that would increase sales revenues by $527,000 per year and cash operating expenses by $339,800 per year. The equipment would cost $425,000 and have a 10 year life with no salvage value. Dime Corporation uses straight-line depreciation for all fixed assets. The simple rate of return on the investment is closest to (ignore income taxes): A. 44.05% B. 54.05% C. 27.46% D. 34.05%
Answer:
option (D) : 34.05%
Explanation:
As per the data given in the question,
Computation of Simple rate of return :
Investment = $425,000
Depreciation = (Initial cost - salvage value) ÷ useful life
= ($425,000 - 0) ÷ 10
= $42,500
Net profit = Sales revenue - cash operating expense - Depreciation
= $527,000-$339,800-$42,500
= $144,700
Simple rate of return = Net Profit ÷ Investment
= $144,700 ÷ $425,000
= 34.05%
Hence, option (D) is correct answer
At its date of incorporation, Sauder, Inc. issued 100,000 shares of its $10 par common stock at $11 per share. During the current year, Sauder acquired 20,000 shares of its common stock at a price of $16 per share and accounted for them by the cost method. Subsequently, these shares were reissued at a price of $12 per share. There have been no other issuances or acquisitions of its own common stock. What effect does the reissuance of the stock have on the following accounts? Explain and show your work.Retained Earnings Additional Paid-in Capitala. Decrease Decreaseb. No effect Decreasec. Decrease No effect
d. No effect No effect
Answer:
Sauder Inc.
The answer is d.
The effect of the reissuance of the stock on:
1)Retained Earnings - No effect
2) Additional Paid-in Capital: No effect
Using the cost method or the par value method, there is no effect on Retained Earnings by the reissuance of stock.
Using the cost method, there is no effect on the Additional Paid-in Capital. Every treasury stock transaction is recorded in the Treasury Stock account without reference to the Additional Paid-in Capital.
Using the par value method, there is an effect on the Additional Paid-in Capital for reissuance of stock at more than the par value.
Workings:
The reissuance would be recorded as follows, using the costing method:
Debit Cash with $240,000
Credit Treasury Stock with $240,000
To record the reissuance of 20,000 shares at $12 per share.
The reissuance would be recorded as follows, using the par value method:
Debit Cash with $240,000
Credit Treasury Stock with $200,000
Credit Additional Paid-in Capital with $40,000
To record the reissuance of 20,000 shares at $12 per share.
Explanation:
Treasury Stock account is a contra account to the Common Stock account. There are two methods for recording treasury stock transactions: the costing method and the par value method.
Under the costing method, every treasury stock transaction is recorded in the Treasury Stock account. Under the par value method, the above or below par value elements of treasury stock transactions are recorded in the Additional Paid-in Capital account.
The following transactions are for Kingbird Company.
1. On December 3, Kingbird Company sold $473,800 of merchandise to Blossom Co., on account, terms 2/10, n/30. The cost of the merchandise sold was $320,000.
2. On December 8, Blossom Co. was granted an allowance of $22,800 for merchandise purchased on December 3.
3. On December 13, Kingbird Company received the balance due from Blossom Co.
Required:
a. Prepare the journal entries to record these transactions on the books of Kingbird Company. Kingbird uses a perpetual inventory system.
Answer:
a. The journal entries to record the transactions woule be the following:
To record the sales
3 dec Debit Credit
Account receivables $473,800
Sales $473,800
To record the cost of goods sold
cost of goods sold $320,000
Merchandise Inventory $320,000
To record the allowance
8 dec Debit Credit
Sales return and allowance $22,800
Accounts receivable $22,800
To record the cash received from the customer
13 dec Debit Credit
Cash $446,490
Sales discount $4,510
Accounts receivable $451,000
Explanation:
a. The journal entries to record the transactions woule be the following:
First we have to prepare the journal entry to record the sales and cost of goods sold according to the given data:
To record the sales
3 dec Debit Credit
Account receivables $473,800
Sales $473,800
To record the cost of goods sold
cost of goods sold $320,000
Merchandise Inventory $320,000
Next we have to Prepare the journal entry to record the allowance as follows:
To record the allowance
8 dec Debit Credit
Sales return and allowance $22,800
Accounts receivable $22,800
Finally we have to Prepare the journal entry to record the cash received from the customer as follows:
To record the cash received from the customer
13 dec Debit Credit
Cash $446,490
Sales discount $4,510
Accounts receivable $451,000
Cash=$451,000-$4,510=$446,490
Sales discount=$451,000*1%=$4,510
Accounts receivable=$473,800- $22,800=$451,000
A-Plus Appliances sells dishwashers with a four-year warranty. In 2019, sales revenue for dishwashers is $94,000. The company estimates warranty expense at 4.5% of revenues. What is the total estimated warranty payable of A-Plus Appliances as of December 31,2019? A-Plus Appliances began operating in 2019. (Round your final answer to the nearest dollar.)
Answer:
$4230 is the correct answer to the given question .
Explanation:
As Mention in the question the sales revenue to the dishwashers = $94,000
Also the company estimated warranty expense cost is =4.5% of revenues,
Now the estimated warranty payable can be determined by the following formula
[tex]Annual\ sales\ revenue\ for \ the \ dishwashers\ * warranty\ expense\ revenues.[/tex]
[tex]= \ 94000\ * \ 4.5\ % \ of \ revenues[/tex]
== $4230
The internal and external environment will cause changes for companies in Ghana (Large, Medium, and
small-Scale Enterprises) during this crisis. Explain
Answer:
The External Environment will present Threats or Opportunity based on the Companies` Internal (Strengths and Weakness) this will determine the failures or success of the entities.
Explanation:
The Internal Environment for a company consist of its Strengths and Weakness, whilst the External environment consists of Political, Economic, Social, Technological, Legal and Environmental issues. These can cause changes for Companies in Ghana and the rest of the World.
The External Environment will present Threats or Opportunity based on the Companies` Internal (Strengths and Weakness) this will determine the failures or success of the entities.
From the dropdown box beside each numbered balance sheet item, select the letter of its balance sheet classification. If the item should not appear on the balance sheet, choose the letter Z from the selection choices.
a. Current assets
b. Long-term investments
c. Plant assets
d. Intangible assets
e. Current liabilities
f. Long-term liabilities
g. Equity
1. Prepaid rent
2. Taxes payable
3. Account payable
4. Automobiles
Answer:
1. Prepaid rent : a. Current assets
2. Taxes payable : e. Current liabilities
3. Account payable : e. Current liabilities
4. Automobiles : b. Long-term investments
Explanation:
Balance Sheet items include :
Assets - Economic Resources of the Entity that would result in future cash inflowLiabilities - Present obligations of the entity that will result in future cash outflowEquity - Residue After removing Liabilities from the Assets or Shareholders entitled interest.A small businessman tries to buy a computer to help with the job. He needs a small computer, but the expected growth of the business might lead to the incompatibility of the small system in the next few years. The alternatives for the businessman were limited to buying a small device or a small device that can be increased in size or a large device, and their purchase prices were 4000, 6000, and 9000, respectively. In a period of 3 years, he can replace the small or medium system with a large system at a cost of 7500 pounds or expand in the expandable device at a cost of 4000 pounds. The probability of his needs for a large computer system within 3 years has been estimated to be 80%. The probability of his needs for a small computer system within 3 years has been estimated to be 20%. o Analyze the problem using a decision tree. o State which decision is the best decision for the businessman
Answer:
The cheapest option would be to purchase the large computer right away at 9,000 pounds. Even though the other options require a lower initial investment, the probability of needing a large computer in the future is very high and the cost of either acquiring a new computer or expanding an existing one is higher.
Explanation:
Since there is not enough room here I attached the decision tree.
If a company applies overhead to production with a predetermined overhead rate, a credit balance in the Factory Overhead account at the end of the period means that: Select one: a. Actual overhead was greater than the overhead amount applied to production. b. The overhead was underapplied for the period. c. The bookkeeper has made an error because the debits don't equal the credits. d. Actual overhead incurred was less than the overhead amount applied to production. e. The balance will be carried forward to the next period as an overhead cost.
Answer:
d) Actual overhead incurred was less than the overhead amount applied to production.
Explanation:
A credit balance in the overhead account implies that overhead is over applied. When overhead is applied the production work in progress,the accounting entries are to debited work in progress and credit the factory overhead the amount of overhead absorbed.
On the other hand, the actual overhead is debited to the factory overhead e account and and credited to their respective indirect material, indirect labour and indirect expenses.
The difference between the amount debited and and credited to the overhead is the over or under applied overhead. A credit and debit balance represent over and under applied overhead respectively
Answer:
Option D. Actual overhead incurred was less than the overhead amount applied to production.
Explanation:
The reason is that during the period, the accountant keeps posting entry of overhead expense at the predetermined rate, which must be adjusted at the end of the period. So if the expense account is been debited, then it means the actual overhead expense was lower than the expense been anticipated. So the right option is D.
On April 1, Quality Corporation, a U.S. company, expects to sell merchandise to a French customer in three months, denominating the transaction in euros. On April 1, the spot rate is $1.41 per euro, and Quality enters into a three-month forward contract cash flow hedge to sell 400,000 euros at a rate of $1.36. At the end of three months, the spot rate is $1.37 per euro, and Quality delivers the merchandise, collecting 400,000 euros. What are the effects on net income from these transactions?
a. $8,000 Discount Expense plus a $12,000 negative Adjustment to Net Income when the merchandise is delivered.
b. $8,000 Discount Expense plus a $12,000 positive Adjustment to Net Income when the merchandise is delivered.
c. $8,000 Discount Expense plus a $20,000 negative Adjustment to Net Income when the merchandise is delivered.
d. $8,000 Discount Expense plus a $20,000 positive Adjustment to Net Income when the merchandise is delivered.
e. $8,000 Discount Expense plus an $8,000 positive Adjustment to Net Income when the merchandise is delivered.
Answer:
The correct answer is option (d) $8,000 Discount Expense plus a $20,000 positive Adjustment to Net Income when the merchandise is delivered.
Explanation:
Solution
Given that:
Spot rate:
1 euro = $1.41
Now,
Converting 400,000 euros into dollars gives us the following
400,000*1.41 =$564,000
Thys,
Contract rate,
=1 euro = $1.36
So,
Converting 400,000 euros into dollars gives us
400,000*1.36 = $544,000.00
Hence,
The increase in net income =$564,000- $544,000
=$20,000