Answer:
Dr retained earnings($21,600+$15,800) $37,400.00
Cr accumulated depreciation $21,600
Cr inventory $15,800
Explanation:
The errors that require adjustment are the overstatement and understatement of depreciation expense as well as the December 2021 overstatement of inventory.
The understatement of inventory in 2020 would have self-corrected itself in 2021 since closing inventory in 2020 deducted from costs of goods available for sale would be introduced as opening inventory in 2021.
net effect of depreciation=understatement -overstatement=$37,500-$15,900=$21,600.00
hence retained earnings would reduce by $21,600.00
for the overstatement of inventory,retained earnings would reduce by $15,800
A company's planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs:
Variable Fixed
Indirect materials $90,000 Depreciation $37,500
Indirect labor 120,000 Taxes 7,500
Factory supplies 15,000 Supervision 30,000
A flexible budget prepared at the 90,000 machine hours level of activity would show total manufacturing overhead costs of
$277,500.
$202,500.
$270,000.
$225,000.
Answer:
b
Explanation:
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
An insurance company monitors customer complaints. There are several possible problem categories including wrong bill sent, charges too high, failure to add new coverage, deletion of existing coverage and incorrect address. Determine the percentage that each problem contributes to customer complaints.
Answer:
Pareto Diagram
Explanation:
I think your question is missed of key information, allow me to add in and hope it will fit the original one.
Please have a look at the attached photo.
My answer:
The Pareto chart, named after Vilfredo Pareto, is a type of chart that consists of columns and lines in which the independent values are represented by lower-order columns and values. The cumulative sum is represented by a straight line.
The vertical vertical axis is used to measure the frequency of occurrence, but it can also be replaced to measure costs or a different unit of calculation depending on the purpose. The vertical vertical axis is used to measure the cumulative percentage of the total number of occurrences, the total cost or the sum of a unit of measurement depending on the purpose. Because values are arranged in descending order, the cumulative function will be a concave function
The purpose of the Pareto chart is to find out in a group of causes (often there are many), which are the most important causes.
So Pareto Diagram is the best determiner that each problem contributes to customer complaints.
Hope it will find you well.
Coast-to-Coast Inc. is considering the purchase of an additional delivery vehicle for $70,000 on January 1, 20Y1. The truck is expected to have a five-year life with an expected residual value of $15,000 at the end of five years. The expected additional revenues from the added delivery capacity are anticipated to be $65,000 per year for each of the next five years. A driver will cost $40,000 in 20Y1, with an expected annual salary increase of $2,000 for each year thereafter. The annual operating costs for the truck are estimated to be $6,000 per year.
Determine the expected annual net cash flows from the delivery truck investment for 20Y1.
Answer:
First year: 19,000
Second year: 17,000
Third year: 15,000
Forth year: 13,000
Fifth year: 30,000
Explanation:
We need to subtract from the expected revenue the expected cost for Cash revenue 65,000
Driver Cost: (40,000)
Operating cost: (6,000)
Net cash flow: 19,000
This value stand for the first year
Then this will decrease by 2,000 each year as the driver wages increase over time.
Second year: 19,000 - 2,000 = 17,000
Third year: 17,000 - 2,000 = 15,000
Forth year: 15,000 - 2,000 = 13,000
In the last year we must also include the residual value of the equipment:
Fifth year: 13,000 - 2.000 + 15,000 = 30,000
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
Rafa runs a profit maximizing firm. It turns out that for Rafa his fixed costs are $1,000 and his avoidable fixed costs are $600. In his current short run situation when he has successfully set his marginal revenue equal to his marginal cost where marginal costs are rising, he is disappointed to discover that his economics profits are negative. In fact at this production level his profits are $- 500.
Required:
1. Which one of the following statements is TRUE?
A) Rafa's accounting profits must also be negative in the short run.
B) Rafa should shut down in the short run.
C) Rafa should continue to produce at a loss in the short run.
D) If Rafa is a monopolist, he should continue to operate in the short run, otherwise he should shut down.
Answer: C) Rafa should continue to produce at a loss in the short run.
Explanation:
Rafa should continue to produce in the short run because he stands a chance of making profit in the long run. His avoidable fixed costs are $600 and his Economic profits are -$500. In the long run, all costs are variable which means that he should be able to avoid the $600 fixed costs. When he does this, he will then be making an Economic profit of $100 because the $600 in Avoidable fixed cost will be just that, avoided and when that is offset against the -$500, he will get a $100 profit.
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.
Units of production data for the two departments of Continental Cable and Wire Company for November of the current fiscal year are as follows: Drawing Department Winding Department Work in process, November 1 6,000 units, 50% completed 2,200 units, 70% completed Completed and transferred to next processing department during November 82,200 units 81,400 units Work in process, November 30 4,600 units, 65% completed 3,000 units, 25% completed a. If all direct materials are placed in process at the beginning of production, determine the direct materials and conversion equivalent units of production for November for the Drawing Department. If an amount is zero, enter in "0".
Answer and Explanation:
As per the data given in the question,
Calculation for direct material and equivalent conversion is presented below:
Particulars Materials Conversion cost
Units (a) % of completion (b) Equivalent units (a ×b) % of completion (d) Equivalent units (a × d)
Beginning WIP 6,000 units 0% 0 50%
3,000 units
Completed units 76,200 units 100% 76,200 100%
76,200 units
Ending WIP 4,600 units 100% 4,600 units 65%
2,990 units
Total 86,800 units 80,800 units
82,190 units
Working notes
1. The 50% is considered as 50% is beginning work in process so the remaining would be considered
2. The 76,200 units is come from
= 82,200 units - 6,000 units
= 76,200 units
3. And at last we total beginning WIP + completed units and ending WIP
Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $480,000 Number of setups 600 Ordering costs 360,000 Number of orders 18,000 Machine costs 840,000 Machine hours 42,000 Receiving 400,000 Receiving hours 10,000 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $600,000 $800,000 Direct labor $480,000 $480,000 Units completed 16,000 8,000 Direct labor hours 6,000 2,000 Number of setups 400 200 Number of orders 6,000 12,000 Machine hours 24,000 18,000 Receiving hours 3,000 7,000 The company's normal activity is 8,000 direct labor hours. Required: 1. Determine the unit cost for each model using direct labor hours to apply overhead. Unit Cost Model A $ Model B $ 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent. Unit Cost Model A $ Model B $ 3. Which method produces the more accurate cost assignment?
Answer:
1. $260 ; $165 and $225
2. $132.50 and $290
3. Activity Driver Method.
Explanation:
As per the data given in the question,
1)
Overhead rate =(Direct labor + Ordering cost + Machine cost +Receiving) ÷ (Direct labor hour for A + Direct labor hour for B)
= ($480,000 + $360,000 + $840,000 +$400,000) ÷ (6,000+$2,000)
= $260
Model A cost per unit = (Direct material +Setting up)÷Units +(Direct labor hour×Overhead rate÷Units)
=($600,000+$480,000)÷$16,000 +($6,000×$260÷ $16,000)
= $165
Model B cost per unit = ($800,000+$480,000)÷$8,000 +($2,000×$260÷ $8,000)
= $225
2)
Model A cost =((Direct material + direct labor)+(direct labor×no. of setups÷number of setup)+(ordering cost×no. of orders÷machine hours)+(machine costs×no. of orders÷machine hours)+(receiving×receiving hours÷receiving hours)) ÷ Units
= (($600,000+$480,000) + ($480,000×400÷600) + ($360,000×$12,000÷$18,000) +($840,000×$18,000÷$42,000) + ($400,000×3,000÷$10,000)) ÷ $16,000
= $132.50
Model B cost = (($800,000+$480,000) + ($480,000×200÷600) + ($360,000×$12,000÷$18,000) +($840,000×$18,000÷$42,000) + ($400,000×7,000÷$10,000)) ÷ $8,000
= $290
3)
The more accurate cost assignment is produced by Activity Driver Method.
We simply applied the above formulas
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.).
MJ Logistics has decided to build a new warehouse to support its supply chain activities. They have the option of building either a large warehouse or a small one. Construction costs for the large facility are $15 million versus $5 million for the small facility. The present value of the after tax profit (excluding construction costs) over the expected life of the warehouses depends on the volume of demand. In the large warehouse, if there is high demand, the company will make $35 million, and if there is low demand, the company will make $20 million. In the small warehouse, if there is high demand, the company will make $15 million, and if there is low demand, the company will make $ 9 million. The probability of high demand has been estimated to be 40% by the VP of Marketing for MJ Logistics. This estimate holds true regardless of whether a large or small warehouse is built.Construct a decision tree reflecting the components of the decision facing MJ Logistics. Be sure to clearly state the decision MJ Logistics should make as a risk-neutral company.
Answer:
13000000million dollars kiddo
Explanation:
Given the following diagrams: Q1 = 12 bags. Q2 = 7 bags. Q3 = 19 bags. The market equilibrium price is $46 per bag. The price at point a is $70 per bag. The price at point c is $10 per bag. The price at point d is $56 per bag. The price at point e is $31 per bag. The price at point f is $67 per bag. The price at point g is $32 per bag. Apply the formula for the area of a triangle (Area = ½ × Base × Height) to answer the following questions.
What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output level Q1 is being produced?
Answer:
$360
Explanation:
The computation of dollar value of the total surplus is shown below:-
Consumer surplus = 1 ÷ 2 × (Point A price - Equilibrium price) × ( Q1 output level )
= 1 ÷ 2 × ($70 - $46) × 12
= $144
Now the producer surplus is
= Producer surplus = 1 ÷ 2 × (Equilibrium price - Point c price ) × Q1 Output level
= 1 ÷ 2 × ($46 - $10) × 12
= $216
Now Total surplus when output level Q1 is being produced is
As we know that
Total surplus = Consumer surplus + Product Surplus
= $144 + $216
= $360
Answer:
$360
Explanation:
The computation of dollar value of the total surplus is shown below:-
Consumer surplus = 1 ÷ 2 × (Point A price - Equilibrium price) × ( Q1 output level )
= 1 ÷ 2 × ($70 - $46) × 12
= $144
Now the producer surplus is
= Producer surplus = 1 ÷ 2 × (Equilibrium price - Point c price ) × Q1 Output level
= 1 ÷ 2 × ($46 - $10) × 12
= $216
Now Total surplus when output level Q1 is being produced is
As we know that
Total surplus = Consumer surplus + Product Surplus
= $144 + $216
= $360
Explanation:
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
Kingbird Company is negotiating to lease a piece of equipment to MTBA, Inc. MTBA requests that the lease be for 9 years. The equipment has a useful life of 10 years. Kingbird wants a guarantee that the residual value of the equipment at the end of the lease is at least $4,000. MTBA agrees to guarantee a residual value of this amount though it expects the residual value of the equipment to be only $2,000 at the end of the lease term. If the fair value of the equipment at lease commencement is $60,000, what would be the amount of the annual rental payments Kingbird demands of MTBA, assuming each payment will be made at the beginning of each year and Kingbird wishes to earn a rate of return on the lease of 6%? (
Answer:
$ 7,994
Explanation:
Fair Value of lease 60,000
Less Present value of garanteed residual value$ 2,368
($4000*1/1.06^9)
Amount to be recovered through periodic payment $ 57,632
PVAD (9 years ,6%) 7.20979
Minimum Lease at the beginning of each year (C/D) $ 7,994
Therefore the amount of the annual rental payments Kingbird demands of MTBA, assuming each payment will be made at the beginning of each year and Kingbird wishes to earn a rate of return on the lease of 6 $7,994
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
You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: penguin patties, raskels, and kipples. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together.
As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods.
Run-of-the-Mills provides your marketing firm with the following data: When the price of penguin patties increases by 5%, the quantity of raskels sold decreases by 4% and the quantity of kipples sold increases by 5%.
Your job is to use the cross-price elasticity between penguin patties and the other goods to determine which goods your marketing firm should advertise together.
1. Complete the first column of the following table by computing the cross-price elasticity between penguin patties and raskels, and then between penguin patties and kipples. In the second column, determine if penguin patties are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating which good you should recommend marketing with penguin patties.
Relative to Penguin Patties
Cross-Price Elasticity of Demand Complement or Substitute Recommend Marketing with Penguin Patties (Yes or No)
Raskels
Kipples
Answer;
Raskels = 0.8 Substitute
Kipples = -1 Complement
Explanation:
Cross-price
elasticity of demand , Complement
Raskels (-4%)/(-5%) = 0.8 Substitute
Kipples (5%)/(-5%) = -1 Complement
Recommended
Raskels No
Ripples Yes
Cross price elasticity = Percentage change in quantity demanded of a good/Percentage change in price of another good.
If it is positive, then it means that the good is a substitute and should not be advertised together.
And If it is complement, then the good is a complement and should be advertised together.
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
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
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
Financial data for Safety Hire as of 30 June 2019 are:
Required:
Prepare an income statement for the month of June and a balance sheet in account format for Safety
Hire as at 30 June 2019
Answer:
Hi, the question you have given has missing data, however the following can be noted when dealing with the required.
Income statement for the month of June
The Income Statement contains Revenues and Revenue Expenditures
Step 1 ; Obtain the Sales Amounts
Step 2 : Obtain the Cost of Sales Amounts
Step 3: Obtain the Operating and Non-Operating Expenses Amounts
Step 4: In Vertical Format or T - Account Prepare and Calculate the Income or Loss
Income or Loss = Sales - Cost of Sales - Expense
Balance sheet in account format for Safety Hire as at 30 June 2019
Balance Sheet contains balances of Assets, Liabilities and Capital (Which included Income or loss calculated in Income Statement above)
The Accounting Equation must be borne in mind ; Assets = Liabilities + Capital
The Account Format Must have entries as follows :
Debit :
Enter Assets Balances
Credit:
Enter Liabilities Balances
Enter Capital Balances (Which include Income or loss calculated in Income Statement above)
Explanation:
Note key notes as explained above.
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 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
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.
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%
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.
The following transactions were completed by the company.
a. The company completed consulting work for a client and immediately collected $5,500 cash earned
b. The company completed commission work for a client and sent a bill for $4,000 to be received within 30 days
c. The company paid an assistant $1,400 cash as wages for the period
d. The company collected $1,000 cash as a partial payment for the amount owed by the client in transaction b
e. The company paid $700 cash for this period's cleaning services.
Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)
Find the given attachments
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
Rose is a human resources manager for a rapidly growing corporation. The firm recently hired 100 new workers, 10 of whom were involved in workplace accidents soon after they were hired. It was determined that alcohol usage was the cause of these accidents. Top management has asked Rose to do a better job in screening potential workers for alcohol abuse to avoid this in the future. Rose should point out that in fact the 10 percent of the recent hires with alcohol issues is actually much lower than the overall percentage of employees with alcohol issues that are involved in industrial injuries and fatalities in the U.S. True or False
Answer:
True.
(Approximately 40 percent of industrial injuries and fatalities can be linked to alcohol consumption).
Explanation:
According to research carried out, it was observed that approximately, about 40 percent of industrial injuries and fatalities can be linked to alcohol consumption.
Moreso, alcohol has historically, and continued to, hold an important role in social engagement and bonding for many. Social drinking or moderate alcohol consumption for many is pleasurable.
However, alcohol consumption especially in excess is linked to a number of negative outcomes: as a risk factor for diseases and health impacts; crime; road incidents; and for some, alcohol dependence. Globally alcohol consumption causes 2.8 million premature deaths per year.
Global, the entry patterns of alcohol consumption, patterns of drinking, beverage types, the prevalence of alcoholism; and consequences, including crime, mortality and road incidents.
he following information was taken from the 2018 financial statements of Jenny Gardner Corporation: Inventory, January 1, 2018 $ 180,000 Inventory, December 31, 2018 240,000 Accounts payable, January 1, 2018 150,000 Accounts payable, December 31, 2018 240,000 Sales revenue 1,200,000 Cost of goods sold 800,000 If the direct method is used in the 2018 statement of cash flows, what amount should Jenny Gardner report as cash payments to suppliers
Answer:
$770,000
Explanation:
Purchase = Ending inventory +Cost of goods sold- Beginning inventory Purchased
= $240,000+$800,000-$180,000= $860,000
Cash paid to suppliers = Beginning AP+ Purchased -Ending AP Cash Payments
= $150,000+$860,000-$240,000 =
$770,000
Therefore the amount that Jenny Gardner should report as cash payments to suppliers is $770,000