Answer:
$ 915.71
Explanation:
In order to determine the second bond price we need to determine the number of years to maturity of the first bond using nper formula in excel.
=nper(rate,pmt.-pv,fv)
rate is the semiannual interest rate of 6% (12%*6/12)
pmt is the semiannual interest=$1000*8.3%*6/12=$41.50
pv is the current price at $813.04
fv is the face value of $1000
=nper(6%,41.50,-813.04,1000)= 16.00
The years to maturity=16/2=8 years
The years to maturity of second bond=8+3=11 years
price of second bond=-pv(rate,nper,pmt,fv)
rate is 6%
nper is 11 years multiplied by 2= 22
pmt =5.3%*$1000=$53
fv is $1000
=-pv(6%,22,53,1000)=$915.71
Answer:
$915.71
Explanation:
Price of the bond is determined by calculating the present value of all cash flows.
We will use following formula in Excel
=nper(rate,pmt.-pv,fv)
rate = Interest rate = 12% x 6/12 = 6%
pmt = Coupon Payment=$1000 x 8.3% x 6/12=$41.50
pv = Price of first coupon = $813.04
fv = Face value = $1000
Placinf all the values in the formula
=nper(6%,41.50,-813.04,1000)= 16.00
Years to maturity=16/2=8 years
The years to maturity of second bond=8+3=11 years
price of second bond=-pv(rate,nper,pmt,fv)
rate = 6%
nper = 11 years x 2= 22
pmt =5.3% x $1000=$53
fv = $1000
Placing values in the formula
=-pv(6%,22,53,1000)=$915.71
Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting Department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Information for the Cutting Department for the month of May follows. Work in Process, May 1 (56,500 units, 100% complete for direct materials, 40% complete with respect to conversion costs; includes $83,500 of direct material cost; $47,050 of conversion costs). Units started in May 238,000 Units completed in May 213,000 Work in Process, May 31 (81,500 units, 100% complete for direct materials; 15% complete for conversion costs). Costs incurred in May Direct materials $ 772,280 Conversion costs $ 1,161,810 If Pitt Enterprises uses the weighted average method of process costing, compute the equivalent units for direct materials and conversion respectively for May.
Answer:
Equivalent units for material = 294,500 units
Equivalent units for conversion cost=225,225 units
Explanation:
Equivalent units for conversion cost
completed unit = 100% × 213,000
Closing work in progress = (15% ×81,500)
Equivalent units for conversion cost = (100% × 213,000) + ( 100% × 213,000)
= 225,225 units
Equivalent unit for Materials
completed unit = 100% × 213,000
Closing work in progress = (100% ×81,500)
(100% × 213,000)+ (100% ×81,500) = 294,500
has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment $ 36,500 Annual cash inflows $ 8,600 Salvage value of equipment $ 0 Life of the investment 15 years Required rate of return 10 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return for the investment (rounded to the nearest tenth of a percent) is:
Answer:
16.89%
Explanation:
As per the given question the solution of simple rate of return for the investment is provided below:-
we need to first find out the accounting profit and depreciation
where
Accounting Profit = Annual Cash Inflow - Depreciation
and
Depreciation = Investment required in equipment ÷ Life of investment
= $36,500 ÷ 15
= $2,433.33
now we will put the value by using the accounting profit formula.
= $8,600 - $2,433.33
= $6,166.67
So,
Simple Rate of Return = Accounting Profit ÷ Initial Investment
= $6,166.67 ÷ $36,500
= 16.89%
Jamison Company reports depreciation expense of $48,000 for Year 2. Also, equipment costing $164,000 was sold for a $5,800 gain in Year 2. The following selected information is available for Jamison Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.
At December 31 Year 2 Year 1
Equipment $ 650,000 $ 814,000
Accumulated
Depreciation-Equipment 460,000 540,000
a) $41,800.
b) $36,000.
c) $30,200.
d) $48,000.
e) $84,000.
Answer:
The correct answer is (a) $41,800.
Explanation:
Solution:
Given that:
The first step taken is to calculate for depreciation on sold equipment:
Amount($)
Accumulated depreciation in Year -1 (a) = 540000
Depreciation for the year 2 (b) = 48000
Accumulated depreciation to be in year 2 c=(a+b)=588000
Reported accumulated depreciation in year 2(d)=460000
Thus,
Depreciation on sold Equipment e= (c-d) = 128000
Now,
The second step is to calculate sale proceeds:
Cost (a)= 164000
Depreciation(b) =128000
The written dawn value c=(a-b) = 36000
Gain on sale of equipment (d)=5800
The Sale Price (c+d)=41800
Therefore, the sale of the equipment is $41,800
Badgersize Company has the following information for its Forming Department for the month of August.
Work in Process Inventory, August 1: 20,000 units
Direct materials: 100% complete $ 80,000
Conversion: 20% complete 24,000
Balance in work in process, August 1 $ 104,000
Units started during August 49,000
Units completed and transferred in August 60,000
Work in process (70% complete), August 31 ?
Costs charged to Work in Process in AugustDirect materials $140,000Conversion costs:Direct labor $105,000Overhead applied 148,000Total conversion $253,000Assume materials are added at the start of processing.Required:1. Calculate the equivalent units for the Forming Department for the month of August.2. Find the cost per equivalent of input resource.
Answer:
1. Calculate the equivalent units for the Forming Department for the month of August.
direct materials 60,000 unitsconversion 70,000 units2. Find the cost per equivalent of input resource.
direct materials per unit $2.33conversion cost per unit $3.61Explanation:
beginning WIP 20,000 units:
direct materials 100% = 20,000 equivalent units $80,000
conversion 20% = 4,000 equivalent units $24,000
total $104,000
Units completed and transferred 60,000
Ending WIP = 20,000:
direct materials 100%
conversion costs 70% = 14,000 equivalent units
costs charged:
Direct materials $140,000
Direct labor $105,000
Overhead applied 148,000
equivalent units:
direct materials 60,000 since all materials are added at the beginning
conversion = units started + ending WIP - beginning WIP = 60,000 + 14,000 - 4,000 = 70,000 units
direct materials per unit = total direct materials / equivalent units = $140,000 / 60,000 = $2.33
conversion costs per unit = total conversion costs / equivalent units = $253,000 / 70,000 = $3.61
The Mixed Nuts Division of Yummy Snacks, Inc. had the following operating results last year:
Sales (140,000 pounds of product) $70,000
Variable expenses $42,000
Contribution margin $28,000
Fixed expenses $12,000
Income $16,000
Yummy expects identical operating results in the division this year. The Mixed Nuts Division has the ability to produce and sell 200,000 pounds of product annually. Assume that the Trail Mix Division of Yummy wants to purchase an additional 20,000 pounds of nuts from the Mixed Nuts Division.
Mixed Nuts will be able to increase its profit by accepting any transfer price above:____________.
a) $0.25 per pound
b) $0.08 per pound
c) $0.15 per pound
d) $0.30 per pound
e) $0.10 per pound
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.
Waterway Industries owned 22500 shares of Carla Vista Co. purchased in 2017 for $618750. On December 15, 2020, Waterway declared a property dividend of all of its Carla Vista Co. shares on the basis of one share of Carla Vista for every 10 shares of Waterway common stock held by its stockholders. The property dividend was distributed on January 15, 2021. On the declaration date, the aggregate market price of the Carla Vista shares held by Waterway was $910000. The entry to record the declaration of the dividend would include a debit to Retained Earnings of:________
Answer:
I don't know sorry I think 123456789p
Some traits of successful individuals in our industry, as mentioned by Aimee Mangold of KOLTER Hospitality included: drive, intelligence, self-confidence, the desire to influence others, relevant knowledge, and honesty/moral character. Unfortunately, these same traits do not apply to other fields outside of the hospitality and tourism industry to any great extent.
O True
O False
Answer:
The correct answer is the second option: False.
Explanation:
To begin with, the fact that those characteristics in individuals in that industry make it more successful does not mean that the industry mentioned is the only one with those characteristics in the individuals. Actually, it is quite understandable to find individuals with those abilities that make an industry to be better than other, that is the case of the technology industry where most of the workers must have those skills in order to achieve the goals that they look for. So that is why that it is false that those traits do not apply to other fields.
Astro Corporation was started with the issue of 5,100 shares of $10 par stock for cash on January 1, 2018. The stock was issued at a market price of $15 per share. During 2018, the company earned $66,100 in cash revenues and paid $44,287 for cash expenses. Also, a $3,700 cash dividend was paid to the stockholders.
Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Astro Corporation's 2018 fiscal year.
Answer:
Income statement
Revenue $66,100
Less Expenses ($44,287)
Net Income / (Loss) $21,813
statement of changes in stockholders' equity
Equity and Liabilities Section :
Equity :
Share Capital 5,100 shares at $10 $51,000
Share Premium 5,100 shares at $5 $25,500
Profit during the year $21,813
Dividends Paid ($3,700)
Total Equity $94,613
balance sheet
Assets
Current Assets :
Cash ( $66,100 + $51,000 + $25,500 - $44,287 - $3,700) $94,613
Total Assets $94,613
Equity and Liabilities Section :
Equity :
Share Capital 5,100 shares at $10 $51,000
Share Premium 5,100 shares at $5 $25,500
Profit during the year $21,813
Dividends Paid ($3,700)
Total Equity $94,613
Explanation:
The Income Statement is prepared first, following the Statement of Changes in Equity then follows the balance sheet and the cash flow statement.
Lucy and Fred want to begin saving for their baby's college education. They estimate that they will need $120,000 in eighteen years. If they are able to earn 5% per annum (compounded annually), how much must be deposited at the end of each of the next eighteen years to fund the education? (The future value of a single sum for 18 periods at 5% is 2.40662; The future value of an ordinary annuity of 1 for 18 periods at 5% is 28.13238).
Answer:
$4,265.55
Explanation:
Future value = $120,000
Interest rate (i) = 5%
Annual deposit = ?
Time period (n) = 18 year
Since deposit are to be made at the beginning of each year, hence the relevant factor table to be used is future value annuity due factor table.
Future value = Annual deposit x future value annuity due factor (i%, n)
120,000 = Annual deposit x FVADF (5%, 18period)
120,000 = Annual deposit x 28.13238
Annual deposit = 120,000/28.13238
=$4,265.547
=$4,265.55
Gilberto Company currently manufactures 40,000 units per year of one of its crucial parts. Variable costs are $1.60 per unit, fixed costs related to making this part are $40,000 per year, and allocated fixed costs are $30,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $2.70 per unit guaranteed for a three-year period.
Required:
a. Calculate the total incremental cost of making 40,000 and buying 40,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?
Answer:
It is cheaper to make the part. In three years the company will save $12,000.
Explanation:
Giving the following information:
Units= 40,000
Variable costs= $1.60 per unit
Fixed costs= $40,000 per year
Gilberto is considering buying the part from a supplier for a quoted price of $2.70 per unit guaranteed for three years.
We need to calculate the total cost of making and buying the part.
Make in-house:
Total cost= 1.6*40,000 + 40,000= $104,000
Buy:
Total cost= 40,000*2.7= $108,000
It is cheaper to make the part. In three years the company will save $12,000.
On January 1, 2019, Shay Company issues $290,000 of 11%, 20-year bonds. The bonds sell for $282,750. Six years later, on January 1, 2025, Shay retires these bonds by buying them on the open market for $303,050. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straight-line method is used to amortize any bond discount.
Required:
1. What is the amount of the discount on the bonds at issuance?
2. What is the carrying (book) value of the bonds as of the close of business on December 31, 2024?3. Prepare the journal entry to record the bond retirement.
Answer:
1.
$7,250
2.
$284,562.5
3.
Dr. Bond Payable $290,000
Dr. Loss on Retirement $18,487.5
Cr. Bond Discount $5,437.5
Cr. Cash $303,050
Explanation:
1.
Bond is issued on the discount when it is issued below the face value.
Discount value = Face value - Issuance value = $290,000 - $282,750 = $7,250
2.
Carrying value of the bond is the net of face value of the bond and un-amortised bond discount.
Carrying value = 290,000 - ($7,250 x (20-5) / 20) = $284,562.5
3.
Bond Discount = $7,250 x 15/20 = $5,437.5
Department E had 4,000 units in Work in Process, that were 40% completed at the beginning of the period, at a cost of $12,500. 14,000 units of direct materials were added during the period, at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450, and factory overhead was $18,710. The number of equivalent units of production for the period for materials, if the average cost method is used to cost inventories was:____________.a. 15,650b. 18,000c. 17,250
d. 17,700
Answer:
Total equivalent units= 17,250 units
Explanation:
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required to a complete a set of work is done in the period under consideration.So there is no separation of the completed units into opening inventory and fully worked.
Equivalent units = Degree of completion× units of inventory
Item units Equivalent unit
Completed 15,000 100%× 15,000 = 15,000
Closing inventory 3,000 75%× 3,000 = 2,250
Total equivalent units 17,250
Total equivalent units= 17,250 units
Chen Inc. accepted a two-year noninterest-bearing note for $605,000 on January 1, 2021. The note was accepted as payment for merchandise with a fair value of $500,000. The effective interest rate is 10%. What is the correct entry to record the note? Multiple Choice Notes receivable 605,000 Interest revenue 105,000 Cost of sales 500,000 Notes receivable 605,000 Accounts receivable 605,000 Notes receivable 605,000 Discount on notes receivable 105,000 Sales revenue 500,000 Notes receivable 500,000 Accounts receivable 500,000
Answer:
Notes receivable 605,000 Discount on notes receivable 105,000 Sales revenue 500,000
Explanation:
The Journal entry are as follow:
Notes receivable Dr, 605,000
To Discount on notes receivable $105,000
To Sales revenue $500,000
(Being notes receivable is recorded)
Therefore here we debited the Note receivable and sales revenue will be paid at the time of issuing sales statements. If notes interest free then the excess amount will be credited on the receivable note and adjusted monthly to interest income.
Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 2,000 units):
Direct materials $ 25
Direct labor 53
Variable overhead 16
Fixed overhead 47
Total $ 141
Trailblazers offered to sell the assembly to Mobility for $110 each. The total order would amount to 2,000 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $10,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $40,000.
Required:
(a) Prepare a schedule that shows the differential costs on the 2,000 rear wheel assemblies order. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.)
(b) Should Mobility make rear wheel assemblies or buy them from Trailblazers?
Answer:
Net savings from buying $ 8,000
Decision : The company should assemble
Explanation:
Unit variable cost of making = 25+ 53+ 16+ 47 = $94
$
Total variable cost ( $94 × 2,000) = 188,000
Total cost of external purchase ($110× 2000) 220,000
Extra variable cost from external purchase (32,000 )
add Savings in fixed overheads 40,000
Net savings from buying 8,000
Note that the fixed cost were not included because they not relevant for the decision. They would be incurred either way.
Decision.
Since the management wishes tom save at least $10,000 per year but the analysis above shows that the company can only save $8,000, then Mobility should not buy the product but rather assemble them
Record the following transactions on the books of Crane Co. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (a) On July 1, Crane Co. sold merchandise on account to Stacey Inc. for $23,380, terms 3/10, n/30. (b) On July 8, Stacey Inc. returned merchandise worth $3,380 to Crane Co. (c) On July 11, Stacey Inc. paid for the merchandise.
Answer:
a. July 1 Accounts Receivable $23380 Dr
Sales Revenue $23380 Cr
b. July 8 Sales Returns $3380 Dr
Accounts Receivable $3380 Cr
c. July 11 Cash $20000 Dr
Accounts Receivable $20000 Cr
Explanation:
a.
The sales are made on credit so the accounts receivable will be debited and the sales revenue will be credited. Assuming that we are using the gross method to record sale, we will record the sale at the invoice price as quoted and will not record it at net of discount amount.
b.
The sales returns are made on July 8 which will reduce the sales revenue. We do this by opening a contra account to sales revenue which is of Sales returns. The increase in sales returns will be debited to this account and the accounts receivable will be reduced and credited by the amount of return made.
c.
As the sales term are 3/10 n/30 which means a 3% discount if payment for credit sales is made within 10 days of sale and the credit term is 30 days. The Crane Co. received the payment from accounts receivable on July 11 which is after the discount period has ended. Thus the accounts receivable will pay the full amount outstanding which is (23380 - 3380) = $20000.
The trial balance of Barger Company at the end of the accounting period, immediately prior to recording closing entries, showed the following:________.
Debit Credit
Cash 29,000
Land 56,000
Notes payable 32,400
Common stock 22,000
Retained earnings 15,800
Service revenue 62,000
Expenses 44,900
Dividends 2,300
Total $ 132,200 $ 132,200
What will the balance of the retained earnings account be after the closing entries are recorded?
Answer: $30,600
Explanation:
First calculate the earnings for the year.
Revenue is given. Expenses are also given and come out of revenue. Dividends also come out of revenue as well.
Retained Earnings for the year is therefore,
Retained Earnings for the year = Revenue - Expenses - Dividends
= 62,000 - 44,900 - 2,300
Retained Earnings for the year = $14,800
This figure should be added to the retained earnings of the previous period to find the total balance.
= 14,800 + 15,800
= $30,600
$30,600 is the closing Balance on Retained Earnings after closing entries.
1. Answer the below question based upon the following information on Fitbit: Fitbit Year0 Year1 RRF 2% Initial Investment -$5,000,000 RM 9% Units of Sales 150,000 Investment Banking Fee or Floating Rate 7% Price per Unit $400 Existing Fitbit Shares 2,000,000 Variable Cost per Unit $250 New IPO Shares 36,500,000 Fixed Cost $1,000,000 Pre-IPO Value $91,100,000 Depreciation $1,500,000 Tax Rate 35% What is the price per share for the Fitbit IPO?
Answer:
$8.53
Explanation:
As per the data given in the question,
Total sales
= 150,000 × $400
= $60,000,000
Variable = $37,500,000
Fixed cost = $1,000,000
Depreciation = $1,500,000
Tax rate = 35% = 0.35
Net Income = (Sales - Variable - Fixed cost - Depreciation) (1 -Tax rate)
= ( $60,000,000 - $37,500,000 - $1,000,000 - $1,500,000)(1 -0.35)
= $13,000,000
Price per share
= Net income ÷ Existing Fit-bit shares
= $13,000,000 ÷ 2,000,000
= $6.5
Total IPO value = Pre-IPO value + Post-IPO value
= [$91,100,000 + (6.5 × 36,500,000)] ÷ ( 2,000,000 + 36,500,000)
= $8.53
We simply applied the above formula
TravelLite and FareLine compete as online travel agencies. Historically, TravelLite has focused more on flights, whereas FareLine has focused on hotel bookings. The following amounts were reported by the two companies in 2015. (in millions) Net Income Total Assets Total Liabilities Total Revenues TravelLite $ 1,080 $ 9,010 $ 6,400 $ 6,430 FareLine 3,020 8,490 4,270 7,660 Required: Calculate each company’s net profit margin expressed as a percent. (Round your answers to 1 decimal place.)
Answer:
16.80% and 39.43%
Explanation:
The formula to compute the net profit margin is shown below:
Net profit margin = Net income ÷ Total revenues × 100
For Travel lite, the net profit margin is
= $1,080 ÷ $6,430 × 100
= 16.80%
And, for fare line, the net profit margin is
= $3,020 ÷ $7,660 × 100
= 39.43%
By dividing the net income or net profit by the total revenues we can get the net profit margin or we can say it is profit percentage that is earned by the company
It is always expressed in percentage
Crafting a strategy to compete in one or more foreign markets can be considered complex because 34) A) factors that affect industry competitiveness are the same from country to country. B) different government policies and economic conditions make the business climate more favorable in some countries than in others. C) the potential for location-based advantages to conducting value chain activities in certain countries. D) buyer tastes and preferences differ among countries and present a challenge for companies concerning. customizing versus standardizing their products and services. E) currency exchange rates among countries are generally fixed and rarely change.
Answer:
Options A, B, C, and E.
(Please check the explanation section before you judge or pick your answer)
Explanation:
The options A, B, C, and E are the options that are considered complex if we want to Craft a strategy to compete in one or more foreign markets.
Please take note that if the question asked us to pick which of the options is NOT a inherently complex reason when crafting a strategy to compete in one or more foreign markets then we would have picked Option D.
As given in the question, that is option D which says; '' buyer tastes and preferences creates challenges in standardizing products and services." Will not be a reason for crafting a strategy to compete in one or more foreign markets is inherently complex.
Countries due to globalization tends to participate in international trades. Competition in the international trade has its advantages as well as its disadvantages or risks.
To trade in the international market, countries must have their individual strategies and Option D above is NOT a inherently complex reason when crafting a strategy to compete in one or more foreign markets
Answer:
The correct answer is the option D: buyer tastes and preferences differ among countries and present a challenge for companies concerning customizing versus standardizing their products and services.
Explanation:
To begin with, the fact that a company is looking forward to expand its business to other countries needs to be very carefully planned because every business would be manage in different ways in differents areas and that is due to the differences in those countries, in their cultures and social believes as well. That is why, that to craft a strategy to compete in one or more foreign markets can be considered complex because of the different preferences and tastes that buyers in those places will have and due to that the company will need to adjust to that type of customer and therefore to customize their product in order to achieve sale's goals.
You have a team of four employees. Liam, the financial analyst, is from Ireland, and he knows everything there is to know about protecting and growing donations. Destiny, the events planner, is from Charleston, South Carolina, and she is a genius at handling all the details of a fundraiser. Andry is from Madagascar, and he writes all of the content for your fundraising letters and website. Finally, Marjorie is from Berkeley, California, and she prepares profiles of potential donors and makes suggestions about what types of fundraising events might appeal to them.
Although all of your employees are very good at what they do, the group has had some problems in the past. Andry and Marjorie have decided that they will write no more than one discrete piece of work per day, even if they are capable of writing more. If Andry writes more than one part of a website, Marjorie torments him by sending him a stream of instant messages questioning his mental abilities. Destiny and Marjorie tend to disagree about what kinds of events will appeal to donors, and they have had some heated arguments in the past. Marjorie usually wins these fights, which is making Destiny very resentful. Liam has told you that the group needs a strong leader who will make sure that the organization's goals are met.
After reading about the history of management in your textbook, you find yourself particularly fascinated by the human relations approach to management.
The theories seem so modern, but could they really be used in today's world? You decide to put them to the test.
Liam's idea that a strong leader could pull the group together is very similar to Chester Barnard's concept of _________ in organizations.
Finally, you consider how to start solving the problems in the organization. What would Mary Parker Follett recommend you do in this situation? Check all that apply:
a) Try to understand why Andry and Marjorie feel that one piece of writing per day is an acceptable work output. Be a role model in establishing new productivity norms, but recognize that your actions may not have much of an impact on them.
b) Get Destiny and Marjorie into one room. Have them present their visions of what a fundraising event should be, and then brainstorm with them to find ways to achieve both of their goals.
c) Remember that you must have power with, not over, your team. So when you ask Andry and Marjorie to write more, be sure to give them facts and information they need to understand the reason for your request.
d) Be sure that your orders are understood and that your employees have the ability to carry them out. Match your directions with the overall strategy of the organization; at the same time, help people achieve their personal goals.
Answer: 1. Acceptance Theory to Authority
2. All of the Above.
Explanation:
1. Acceptance Theory to Authority
According to Chester Barnard's concept of Acceptance Theory of Authority, people respond more to in an Organisation to a strong leader whose authority they accept. The main premise here is that the leader's authority has to be accepted and people only usually respect strong leaders. A weaker leader will not be able to bring the team together because the employees will not listen to them as much as they should because they have not accepted their authority.
2. According to Mary Parker Follett, all the above options are correct for initiation in this scenario.
Mary Parker Follett came up Principles of Coordination to help companies better themselves. Some of the principles she came up with cover the options.
A. This has to do with the Reciprocal Relationship Principle of Coordination. Mary Follet argued that there must be a reciprocal relationship at work because people work together. This means that should you start to work harder, it will influence Andry and Majorie to work harder as well.
B. Falls under the Principle of Direct Contact.
According to this principle, Heads of Department should meet and discuss their problems since they are closer to the situation on the ground. Destiny and Majorie should therefore meet and discuss a way forward.
C. Falls under the Early Stages section of Coordination.
Here Mary Follett believed that managers should not unilaterally come up with strategy but rather consult the members of their team and talk to them so that they understand why something must be done.
D. Also falls under the Early Stages section.
Mary also believed that as well as consulting your team to come up with strategy, that strategy needs to be aligned to the goals of the organizations. By discussing with employees before a strategy is implemented, you make sure that they understand it as well and they will then know if or not they are able to perform and voice any objections they may have.
Turk Manufacturing is considering purchasing two machines. Each machine costs $9,000 and will produce cash flows as follows:
End of Year Machine A Machine B
1 $ 5,000 $ 1,000
2 4,000 2,000
3 2,000 11,000
Turk Manufacturing uses the net present value method to make the decision, and it requires a 15% annual return on its investments. The present value factors of 1 at 15% are: 1 year, 0.8696; 2 years, 0.7561; 3 years, 0.6575.
Which machine should Turk purchase?
A) Both machines are acceptable, but B should be selected because it has the greater net present value.
B) Only Machine A is acceptable.
C) Both machines are acceptable, but A should be selected because it has the greater net present value.
D) Neither machine is acceptable.
E) Only Machine B is acceptable.
Answer:
B) Only Machine A is acceptable.
Explanation:
NPV of Machine A = $9,000 - ($5,000 * 0.8696) - ($4,000 * 0.7561) - ($2,000 * 0.6575) = $312.60
NPV of Machine B = $9,000 - ($1,000 * 0.8696) - ($2,000 * 0.7561) - ($11,000 * 0.6575) = - $614.30
Since Machine B NPV is negative at minus $614.30, Machine B is therefore not acceptable. Only Machine A is acceptable because it has a positive MPV of $312.60.
The correct option is therefore B) Only Machine A is acceptable.
Turk manufacturing company should purchase only the Machine B.
Computation of PV of cash-flow for Machine A
Year Cash Flow PV Factor PV of Cash Flow
0 -9000 1 -9000
1 5000 0.8696 4348
2 4000 0.761 3044
3 2000 0.6575 1315
NPV -$293
Computation of PV of cash-flow for Machine B
Year Cash Flow PV Factor PV of Cash Flow
0 -9000 1 -9000
1 1000 0.8696 869.6
2 2000 0.761 1522
3 11000 0.6575 7232.5
NPV $624.1
Here, the Machine A has negative NPV, thus, should not be accepted. Machine B has positive NPV, thus, it should be accepted.Therefore, the Option E is correct because Turk manufacturing company should purchase only the Machine B.
See similar solution here
brainly.com/question/16563422
Wozniacki and Wilcox form Jewel LLC, with each receiving a one-half interest in the capital and profits of the LLC. Wozniacki receives his one-half interest as compensation for tax planning services he rendered prior to the formation of the LLC. Wilcox contributes $50,000 cash. The value of a one-half capital interest in the LLC (for each of the parties) is $50,000.
How much income does Wozniacki recognize as a result of this transaction, and what is the character of the income?
Answer:
Recognize the $50,000 as a compensation income received.
Explanation:
The reason is that the Compensation of $50,000 that Wozniacki received for the services that he previously used to render which means this whole amount received must be recognized as income.
The income statement of Vince Gill Company is shown below.
VINCE GILL COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue
$6,900,000
Cost of goods sold
Beginning inventory
$1,900,000
Purchases
4,400,000
Goods available for sale
6,300,000
Ending inventory
1,600,000
Cost of goods sold
4,700,000
Gross profit
2,200,000
Operating expenses
Selling expenses
450,000
Administrative expenses
700,000
1,150,000
Net income
$1,050,000
Additional information:
1. Accounts receivable decreased $360,000 during the year.
2. Prepaid expenses increased $170,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $275,000 during the year.
4. Accrued expenses payable decreased $100,000 during the year.
5. Administrative expenses include depreciation expense of $60,000.
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Vince Gill Company, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer and Explanation:
The preparation of the operating activities section of the statement of cash flows is presented below:
Vince Gill Company
Operating activities section
Statement of cash flows
For the year ended December 31, 2017
Cash flow from operating activities
Net operating income $1,050,000
Adjustment made
Add: Depreciation expenses $60,000
Add: Decrease in account receivable $360,000
Add: Decrease in inventory $300,000 ($1,600,000 - $1,900,000)
Less: Increase in prepaid expenses -$170,000
Less: Decrease in accrued expenses -$100,000
Less: Decrease in account payable -$275,000
Net cash provided by operating activities $1,225,000
The given terms refer to different approaches to regulating natural monopolies. Place each with its corresponding description.A firm is allowed to price its product so that it earns a normal return on capital invested.Firms are directed to charge the price associated with the extra cost of making each unit. This pricing rule often leads to firms earning a negative profit.Firms charge a price that allows them to earn only a normal economic profit.This places maximum limits on the price firms can charge for a good or service.
Answer: Please refer to Explanation
Explanation:
Sometimes Monopolies need to be regulated to ensure the protection of consumers from unfair pricing business strategies.
The below are some of the ways the Government does so.
A firm is allowed to price its product so that it earns a normal return on capital invested. RATE of RETURN REGULATION.
Firms are directed to charge the price associated with the extra cost of making each unit. This pricing rule often leads to firms earning a negative profit. MARGINAL COST PRICING RULE.
Firms charge a price that allows them to earn only a normal economic profit. AVERAGE COST PRICING RULE.
This places maximum limits on the price firms can charge for a good or service. PRICE CAPS.
Sundance Systems has the following transactions during July. July 5 Purchases 56 LCD televisions on account from Red River Supplies for $3,300 each, terms 3/10, n/30. July 8 Returns to Red River two televisions that had defective sound. July 13 Pays the full amount due to Red River. July 28 Sells remaining 54 televisions from July 5 for $3,800 each on account.
Required:
Record the transactions of Sundance Systems, assuming the company uses a perpetual inventory system.
Answer:
July 5
LCD televisions $184,800 (debit)
Trade Payable : Red River Supplies $184,800 (credit)
July 8
Trade Payable : Red River Supplies $6,600 (debit)
LCD televisions $6,600 (credit)
July 13
J1
Trade Payable : Red River Supplies $5,346 (debit)
Discount Received $5,346 (credit)
J2
Trade Payable : Red River Supplies $172,854 (debit)
Cash $172,854 (credit)
July 28
J1
Cost of Goods Sold $172,854 (debit)
LCD televisions $172,854 (credit)
J2
Trade Receivable $205,200 (debit)
Revenue $205,200 (credit)
Explanation:
July 5
Recognize Televisions Inventory and Recognize a Liability Account Payable
July 8
De-recognize the Liability and the Inventories to the extend to the amount of televisions returned to supplier
July 13
J1
Recognize the discount received from Supplier for prompt settlement of account within the credit terms of 3/10, n/30. (Account was settled within 10 days)
J2
De-recognize the liability on settlement of the Account
July 28
J1
Recognize cost of goods sold on the sale since the entity uses perpetual inventory method.
J2
Recognize an Asset - Trade Receivable and Revenue from Sale of the Televisions.
Process further or sell Benjamin Signal Company produces products R, J, and C from a joint production process. Each product may be sold at the split-off point or be processed further. Joint production costs of $92,000 per year are allocated to the products based on the relative number of units produced Data for Benjamin's operations for the current year are as follows: Sales Value at Split-off $76,000 $71,000 $48,000
Units Produced 8,000 10,000 5,000 Allocated Joint Production Cost $32,000 $40,000 $20,000 Product R... Product J... Product C... Product R can be processed beyond the split-off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split-off point for an additional cost of $38,000 and can then be sold for $117,000. Product C can be processed beyond the split-off point for an additional cost of $12,000 and can then be sold for $57,000
Required: Which products should be processed beyond the split-off point?
A. R $3,000 profit
B. J 8,000 profit
C (3,000) loss
So R and J should be processed beyond the split off point. (Show computations)
Answer:
Products R and J should be processed beyond split-off point
Explanation:
In determining whether or not a product should be further processed,the incremental benefit of further processing should be determined as follows:
incremental benefit/(cost)=sales value after split-additional cost of further processing-sales value at split-off point:
Product R =$105,000-$26,000-$76,000=$3,000
Product J=$117,000-$38,000-$71,000=$8,000
Product C=$57,000-$12,000-$48,000=-$3000
Product R and J should be processed further as they give profit of $3,000 and $8,000 respectively.
Product C should not be further processed as loss of $3,000 would result from that.
The following account balances were taken from the adjusted trial balance for Urgent Messenger Service, a delivery service firm, for the fiscal year ended November 30, 2018:Depreciation Expense $10,650Fees Earned 724,500Insurance Expense 5,000Miscellaneous Expense 6,650Rent Expense 75,000Salaries Expense 393,100Supplies Expense 6,150Utilities Expense 41,200Required:1. Prepare an income statement.
Answer:
$186,750
Explanation:
Urgent Messenger Service,INCOME STATEMENT for the year ended
Fees Earned 724,500
Less Expenses:
Salaries expenses 393,100
Rent expenses 75,000
Utilities expense 41,200
Depreciation expenses 10,650
Miscellaneous expenses 6,650
Supplies expense 6,150
Insurance expense 5,000
Net income (724,500-537,750 ) 186,750
Ellie has been working for an engineering firm and earning an annual salary of $80,000. She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Ellie will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning annual interest of $500.
Ellie's annual implicit costs will equala. $55,200.b. $75,200.c. $80,500.d. $165,700.
Answer:
c. $80,500
Explanation:
The computation of the implicit cost is shown below:
Implicit cost = Annual salary earned + annual interest earned on certificate of deposit
= $80,000 + $500
= $80,500
We simply added the annual salary earned and annual interest earned i.e income that is foregone so that the implicit cost could arrive
All other information which is mentioned in the question is not relevant. Hence, ignored it
You want to invest in a riskless project in Sweden. The project has an initial cost of SKr3.86 million and is expected to produce cash inflows of SKr1.76 million a year for three years. The project will be worthless after three years. The expected inflation rate in Sweden is 3.2 percent while it is 2.8 percent in the U.S. A risk-free security is paying 4.1 percent in the U.S. The current spot rate is $1 = SKr7.7274.
Required:
1. What is the net present value of this project in Swedish krona if the International Fisher effect applies?
O SKr1,087,561
O SKr958,029
O SKr701,458
O SKr823,333
O SKr978,177
Answer:
SKr978,177
Explanation:
Note: Find attached the attached excel file for the full calculation of the net present value of this project in Swedish krona.
Applying International Fisher effect, the risk-free rate of return in Sweden is calculated as follows:
USRF = Risk-free rate of return in the US = 4.1%, or 0.041
USEI = Expected inflation in the US = 2.8%, or 0.028
SWRF = Risk-free rate of return in Sweden = ?
SWEI = Expected inflation in Sweden = 3.2%, or 0.032
Applying International Fisher effect, we have:
USRF - USEI = SWRF - SWEI
Substituting for the values, we have:
0.041 - 0.028 = SWRF - 0.032
0.013 = SWRF - 0.032
SWRF = 0.045
The SWRF of 0.045 as the discount rate to calculate the discounting factor in the attached excel file.
Suppose Lisa's utility function is 4XY, where X is the consumption of beer and Y is consumption of pizza. For this utility function, the marginal utility of X is given by MUX=4Y, and the marginal utility of Y is given by MUY=4X .
a. Suppose Lisa wants to obtain a utility level of 48 utils. For each of the following, calculate the consumption of pizza (Y) that corresponds with the given consumption of beer (X) when U=48 .
i. Bundle 1: Beer = 2; Pizza = __________
ii. Bundle 2: Beer = 3; Pizza = __________
iii. Bundle 3: Beer = 4; Pizza = __________
iv. Bundle 4: Beer = 12; Pizza = ____________
Answer:
Bundle 1: Beer = 2; Pizza = 6
Bundle 2: Beer = 3; Pizza = 4
Bundle 3: Beer = 4; Pizza = 3
Bundle 4: Beer = 12; Pizza = 1
Explanation:
Given that;
Lisa utility function UF(X,Y) = 4XY
where;
X = beer
Y = Pizza
[tex]MU_X = 4Y[/tex]
[tex]MU_Y = 4X[/tex]
The utility level = 48
so, UF(X,Y) = 4XY
putting different values of X (i.e beer ) given to us in this equation, we can calculate the values of Y(i.e pizza) to fulfill the utility
So; when X (beer) = 2
48 = 4×2×Y
48 = 8Y
Y = 48/8
Y = 6
Thus, Bundle 1: Beer = 2; Pizza = 6
when X (beer) = 3
48 = 4×3×Y
48 = 12 Y
Y = 48/12
Y = 4
Thus; Bundle 2: Beer = 3; Pizza = 4
when X (beer) = 4
48 = 4×4×Y
48 = 16 Y
Y = 48/16
Y = 3
Thus; Bundle 3: Beer = 4; Pizza = 3
when X(beer) = 12
48 = 4×12×Y
48 = 48 Y
Y = 48/48
Y = 1
Thus; Bundle 4: Beer = 12; Pizza = 1