Answer:
Working Capital
Year 1 = $1127772
Year 2 = $1019953
Current Ratio
Year 1 = 3.67
Year 2 = 3.13
Explanation:
Working capital is a measure of operating liquidity of a business. It is the capital that is required for the day to day operations of a business. Working Capital can be calculated as follows,
Working Capital = Current Assets - Current liabilities
Working Capital:
Year 1 = 1549399 - 421627 = $1127772
Year 2 = 1498763 - 478810 = $1019953
Current Ratio is a financial measure of the liquidity of a business. It measures the company's ability to meet its short term debts. It tells how much $ current assets are available to pay off $1 of current liability It is calculated as follows,
Current ratio = Current Assets / Current Liabilities
Current Ratio:
Year 1 = 1549399 / 421627 = 3.67
Year 2 = 1498763 / 478810 = 3.13
Partial income statements for Murphy & Murphy (M & M) reported the following summarized amounts:
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Net Sales $ 60,000 $ 59,000 $ 80,000 $ 68,000
Cost of Goods Sold 24,000 26,550 29,050 26,520
Gross Profit $ 36,000 $ 32,450 $ 50,950 $ 41,480
After these amounts were reported, M & M’s accountant determined the inventory at the end of Quarter 2 was understated by $2,950. The inventory balance at the end of the other three quarters was accurately stated.
Required:
Restate the partial income statements to reflect the correct amounts, after fixing the inventory error.
Answer and Explanation:
According to the scenario, The presentation of the given data are as follows:-
Partial Income Statement
Particular Quarter 1 amount ($) Quarter 2 amount ($) Quarter 3 amount ($) Quarter 4 amount ($)
Net Sales 60,000 59,000 80,000 68,000
Cost of sold goods 24,000 23,600 32,000 26,520
Gross Profit 36,000 35,400 48,000 41,480
($32,450 + $2,950) ($50,950 - $2,950)
Quarter 2 was understated by $2,950 at the end of the inventory.
Quarter 2 cost of sold goods
= Cost of sold goods - understated amount
= $26,550 - $2,950
= $23,600
Quarter 3 cost of sold goods
= Cost of sold goods + understated amount
= $29,050 + $2,950
= $32,000
29. The difference between noninterest income and noninterest expenses on a bank's Report of Income is
called:
A. Net Profit Margin
B. Net Interest Income
C. Net Income After Provision for Possible Loan Losses
D. Income or Loss Before Income Taxes
E. Net Noninterest Income
The company makes 12,000 units of this part each year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $ 6.30 Direct labor $ 5.70 Variable overhead $ 4.80 Fixed Costs: Supervisor's salary $ 7.00 Depreciation of special equipment $ 8.60 Common fixed overhead $ 7.20 An outside supplier has offered to produce this part and sell it to the company for $37.70 each. If this offer is accepted, the supervisor will be fired. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. If the outside supplier's offer were accepted, common fixed costs would be reduced by $17,000. Now assume that the facilities that had been used to produce part S54 could be used for something else if S54 parts are purchased from an outside supplier. If this is true, would you be more likely or less likely to outsource S54 to the outside contractor?
Answer:
we will be more likely to outsource S54 to the outside contractor
Explanation:
Calculating the outsource contractor
Make Buy
Direct material 75600
Direct labour 68400
Variable overhead 57600
Supervisor's salary 84000
Allocated general overhead 17000
Purchase cost 452400
Total 302600 452400
The annual financial gain for the company as a result of buying the part from the outsource contractor would be (149800)
we will be more likely to outsource S54 to the outside contractor
Determine whether each survey question is biased or unbiased. If biased, explain your reasoning. Do you prefer watching exciting football games or sitting through choir recitals?
1. biased; the question addresses more than one issue.
2. biased; the question encourages a certain response.
3. unbiased biased; the question causes a strong reaction.
Answer: 2. biased; the question encourages a certain response.
Explanation:
The question is biased because it already makes assumptions of the two activities.
It labels football games as EXCITING whilst asking if one would 'SIT THROUGH' choir recitals which is a way of saying that the choir recitals are BORING.
This question therefore elicits a certain response as most people would go with the Exciting activity so as not to be seen as boring people who would go to choir recitals.
Morganton Company makes one product, and it provided the following information to help prepare the master budget for its first four months of operations:a. The budget selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 9,100, 22,000, 24,000, and 25,000 units, respectively. All sales are credit.b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month.c. The ending finished goods inventory equals 20% of the following month's unit sales.d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit requires 4 pounds of raw materials at $2.50 per pound.e. 40% of raw materials purchases are paid for in the month of purchase and 60% in the following month.f. The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct labor hours.g. The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $61,000.1. If 96,800 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?2. What is the estimated cost of raw materials purchases for July?3. If the cost of raw material purchases in June is $127,520, what are the estimated cash disbursements for raw materials purchases in July?4. What is the estimated accounts payable balance at the end of July?5. What is the estimated raw materials inventory Balance (in dollars) at the end of July?6. What is the total estimated direct labor costs for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced?7. If the company always uses an estimated predetermined plantwide overhead rate of $12 per direct labor hour, what is the estimated unit product cost?8. What is the estimated finished goods inventory balance at the end of July, if the company always uses an estimated predetermined plantwide overhead rate of $12 per direct labor-hour?9. What is the estimated cost of goods sold and gross margin for July, if the company always uses an estimated predetermined plantwide overhead rate of $12 per direct labor hour?10. What is the estimated net operation income for July, if the company always uses an estimated predetermined plantwide overhead rate of $12 per direct labor hour?
Answer and Explanation:
1)
BUDGETED SELLING PRICE $ 70 *
BUDGETED UNITS IN JULY 22000
BUDGETED SALES $ 1,540,000
2)
SALES
CASH 40% $ 616,000
CREDIT 60 % OF PREVIOUS MONTH $ 382,200
RAW MATERIAL
RAW MATERIAL PURCHASES COST
40 % PAID NOW JULY $260900 $ 104,360
60 % PREVIOUS MONTH JUNE $ 159980 $ 95,988
LABOR
$12 PER HOUR * (24980 * 2)$ 599,520
VARIABLE EXPENSES $ 37,400
($1.70 * 22000)
FIXED EXPENSES $ 61,000
CASH INFLOW $ 99,932
3)
SALES IN JULY $ 1,540,000
60 % OUTSTANDING $ 924,000
4) 2980 UNITS SHOULD BE PRODUCED
JUNE JULY AUGUST SEP
SALES UNIT 9100 22000 24000 25000
CLOSING UNITS4400 4800 5000 -
20% OF NEXT MONTH SALE
OPENING UNITS - 1820 4400 4800
20% OF PREVIOUS MONTH SALE
FINISHED GOODS REQUIRED
13500 24980 24600 20200
SALES + CLOSING - OPENING
RAW MATERIAL REQUIRED
54000 99920 98400 80800
FINISHED GOODS REQUIRED * 4
CLOSING UNITS9992 9840 8080 -
10% OF NEXT MONTH NEEDS
OPENING UNITS - 5400 9992 9840
10% OF PREVIOUS MONTH NEEDS
RAW MATERIAL PURCHASES
63992 104360 96488 70960
The adjusted trial balance for Waterway Industries at the end of the current year, 2021, contained the following accounts. 5-year Bonds Payable 9% $3000000 Interest Payable 48000 Premium on Bonds Payable 98000 Notes Payable (3 months.) 38000 Notes Payable (5 yr.) 166000 Mortgage Payable ($13000 due currently) 200000 Salaries and wages Payable 16000 Income Taxes Payable (due 3/15 of 2022) 23000 The total long-term liabilities reported on the balance sheet are $_______.
Answer:
The total long-term liabilities reported on the balance sheet are $3,451,000.
Explanation:
Details Amount ($)
Bonds Payable 9% 3,000,000
Premium on Bonds Payable 98,000
Notes Payable (5 yr.) 166,000
Mortgage Payable (200,000 - 13,000) 187,000
The total long-term liabilities 3,451,000
The following information is available for Sage Hill Corporation for the year ended December 31, 2022.
Beginning cash balance $43,000
Accounts payable decrease 3,500
Depreciation expense 75,000
Accounts receivable increase 8,700
Inventory increase 12,100
Net income 337,000
Cash received for sale of land at book value 43,000
Sales revenue 740,000
Cash dividends paid 11,800
Income tax payable increase 4,400
Cash used to purchase building 145,000
Cash used to purchase treasury stock 33,900
Cash received from issuing bonds 258,000
Required:
1. Prepare a statement of cash flows 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:
Statement of cash flows for the year ended December 31, 2022
Cash flow from Operating Activities
Net income 337,000
Adjustment for Non - Cash Items :
Depreciation expense 75,000
Adjustment for Working Capital Items :
Accounts payable decrease (3,500)
Accounts receivable increase (8,700)
Inventory increase (12,100)
Income tax payable increase 4,400
Net Cash from Operating Activities 392,100
Cash flow from Investing Activities
Cash received for sale of land at book value 43,000
Cash used to purchase building (145,000)
Net Cash from Investing Activities (102,000)
Cash flow from Financing Activities
Cash dividends paid (11,800)
Cash used to purchase treasury stock (33,900)
Cash received from issuing bonds 258,000
Net Cash from Financing Activities 212,300
Movement During the year 502,400
Cash and Cash Equivalents at Beginning of the year 43,000
Cash and Cash Equivalents at End of the year 545,400
Explanation:
Prepare the Cash flow Statement under the following headings :
Cash flow from Operating ActivitiesCash flow from Investing ActivitiesCash flow from Financing ActivitiesThe term "benchmarking" as it relates to the hotel industry refers to a line-by-line analysis of an operating statement, comparing metrics for hotels of similar size or profile
Answer:
The term "benchmarking" as it relates to the hotel industry refers to comparing metrics for hotels of similar size or profile.
Explanation:
a) Benchmarking is a process wherein a company's products, services, business processes, or performance metrics are compared with a “best in class” competitor. The purpose of benchmarking is to enable organizations to make improvements by adapting specific best practices. A retail shop's metrics can be compared with the leading retail shop in your area. Given the deep insight gathered from benchmarking, this retail shop can decide to alter its line of products, the way it competes in the marketplace, or to undertake some improvements in her business processes.
There are four types of benchmarking, including internal, competitor, functional, and generic. Internal benchmarking is limited to internal processes. Competitor benchmarking compares one company's processes, products, or services to another. Functional benchmarking compares one function of an entity to another entity's. While generic benchmarking compares unrelated companies' processes or functions.
An office has 5 copy machines that need to be serviced approximately once an hour either for paper, staples, or toner or repair. Each machine therefore runs approximately 1 hour before needing some attention. The average service time is 7 minutes. Copier downtime in this busy office costs approximately $20 per hour. The cost of attendant is $15 per hour. Using the finite queuing analysis, answer the following questions:________.
a. What is the average number of copiers in line?
b. What is the average number of copiers still in operation?
c. What is the average number of copiers being serviced?
d. The firm is considering adding another attendant at the same $15 rate. Should the office do it?
Answer:
a. Average number of copiers in line is 0.275
b. Average number of copiers still in operation is 4.23
c. Average number being serviced is 0.496
d. No, the office should not do it
Explanation:
N = number of copy machines = 5
U = average time between unit service requirements = 1 hour = 60 minutes
T = average service time = 7 minutes
M = number of servers = 1
Cost of copier downtime = $20
Cost of attendant = $15
(a) Service factor, X = T / (T+U) = 7 / (60+7) = 0.105
From the Finite Queuing Tables for a Population of N = 5,
For X = 0.105 and M=1, the efficiency factor, F = 0.945
So, The average number waiting in line, L = N × (1 - F) = 5 × (1 - 0.945) = 0.275
(b) Average number in operation, J = N×F×(1 - X) = 5×0.945×(1 - 0.105) = 4.23
(c) Average number being serviced, H = F×N×X = 0.945×5×0.105 = 0.496
(d) For M=1
The average number of copier down = N - J = 5 - 4.23 = 0.77
So, cost of downtime per hour = $20×0.77 = $15.4
Also, the cost of the server per hour = $15×M = $15×1 = $15
So, total cost = 15.4 + 15 = $30.4 per hour (i)
For M=2
From the Finite Queuing Tables for a Population of N = 5, with X = 0.105 and M=2, the efficiency factor, F = 0.997
J = N×F×(1 - X) = 5×0.997×(1 - 0.105) = 4.46
The average number of copier down = N - J = 5 - 4.46 = 0.54
So, cost of downtime per hour = $20×0.54 = $10.8
Also, the cost of the server per hour = $15×M = $15×2 = $30
So, total cost = 10.8 + 30 = $40.8 per hour (ii)
Comparing (i) and (ii), we can say that having another attendant is not cost-effective.
Employees who report unethical behavior in their own workplace (whistleblowers) are protected by law. However, many are reluctant to draw negative attention to their companies because of loyalty to the company or fear of reprisals. Chances are good you will encounter questionable behavior at your workplace at some point during your career. How you respond will be a measure of your ability to analyze issues and choose the responsible option.
How can you blow the whistle legally and ethically?
A. If you can't find any satisfactory solutions to the problem, change jobs.
B. If you can't find any satisfactory solutions to the problem, accept the situation.
C. If you can't find any satisfactory solutions to the problem, sue the company
Answer:
Try to correct the problem from within the company.
Explanation:
In many cases, the ability to respond more responsibly to a problem in the workplace can be resolved internally. Communicating the unethical problem to the supervisor or a responsible person you trust within the company, can generate a quick and immediate solution for the problem to be solved, before taking the situation to a deeper level, such as a process for example. Because it is not always possible for the supervisor to be aware of all the problems that involve the organizational environment, so communication is the most effective way of trying to solve the problems.
Answer:
Talk to someone you trust for advice
Explanation:
On November 1, 2021, Warren Co. adopted a plan to discontinue its barge division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by April 30, 2022. On December 31, 2021, the company's year-end, the following information relative to the discontinued division was accumulated:Operating loss Jan. 1–Dec. 31, 2021 $ 74 million Estimated operating losses, Jan. 1 to April 30, 2022 96 million Excess of fair value, less costs to sell, over book value at Dec. 31, 2021 11 million In its income statement for the year ended December 31, 2021, Warren would report a before-tax loss on discontinued operations of:A. $170 million.B. $159 million.C. $74 million.D. $63 million.
Answer:
C. $74 million
Explanation:
The computation of before-tax loss on discontinued operations is shown below:-
Before-tax loss on discontinued operations = Operating loss (From Jan 1 to 31 Dec 2021)
= $74 million
Here, the assets are not impaired, because the fair value is greater than the book value. So, $74 million can be recorded as it is the operating loss and the same is to be considered
There are two firms in an industry. The industry demand curve is given by p = 3,600 - 4q. Each firm has one manufacturing plant and each firm i has a cost function C(q_i) = q^2_i, where q_i is the output of firm i. The two firms form a cartel and arrange to split total industry profits equally.
Required:
a) Under this cartel arrangement, they will maximize joint profits if ___________.
Answer:
Under this cartel arrangement, they will maximize joint profits if each of the firms produces 257.14 units and sells at $1,542.88 per unit.
Explanation:
p = 3,600 - 4q ..................................................... (1)
C(q_i) = q_i^2 ………………………………… (2)
MC_i = dC(q_i)/dq = 2q_i ……………………. (3)
Since q = q_1 + q_2, we have:
p = 3,600 - 4(q_1 + q_2)
p = 3,600 - 4q_1 - 4q_2 .................................... (4)
For Firm 1:
TR_1 = p * q_1 = (3,600 - 4q_1 - 4q_2)q_1
TR_1 = 3,600q_1 - 4q_1^2 - 4q_2q_1
MR_1 = dTR_1/dq_1 = 3,600 - 8q_1 - 4q_2
From equation (3), MC_1 = 2q_1
Since at the optimum MC_1 = MR_1, we have:
2q_1 = 3,600 - 8q_1 - 4q_2
10q_1 = 3,600 - 4q_2
q_1 = (3,600 - 4q_2)/10
q_1 = 360 - 0.4q_2 .......... (5)
For Firm 2:
TR_2 = p * q_2 = (3,600 - 4q_1 - 4q_2)q_2
TR_2 = 3,600q_2 - 4q_2q_1 - 4q_2^2
MR_2 = dTR_2/dq_2 = 3,600 - 4q_1 - 8q_2
From equation (3), MC_2 = 2q_2
Since at the optimum MC_2 = MR_2, we have:
2q_2 = 3,600 - 4q_1 - 8q_2
10q_2 = 3,600 - 4q_1
q_2 = (3,600 - 4q_1)/10
q_2 = 360 - 0.4q_1 .......... (6)
a. Calculation of Cournot equilibrium quantities
Substituting equation (6) for q_2 into equation (5), we have:
q_1 = 360 - 0.4(360 - 0.4q_1)
q_1 = 360 – 144 + 0.16q_1
q_1(1 – 0.16) = 216
q_1 = 216 / 0.84
q_1 = 257.14 <------------- Cournot equilibrium quantity for firm 1
Substitute for q_1 in equation (6), we have:
q_2 = 360 - 0.4(257.14)
q_2 = 360 – 102.86
q_2 = 257.14 <------------- Cournot equilibrium quantity for firm 2
b. Calculation of Cournot equilibrium price
Substitute for q_1 and q_2 into equation (4), we have:
p = 3,600 – 4(257.14) – 4(257.14)
p = 1,542.88
Therefore, under this cartel arrangement, they will maximize joint profits if each of the firm produces 25.14 and sells at $1,542.88 per unit.
Nick’s Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $300,000, have an eight-year useful life, and have a total salvage value of $20,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 200,000 Less operating expenses: Commissions to amusement houses $ 100,000 Insurance 7,000 Depreciation 35,000 Maintenance 18,000 160,000 Net operating income $ 40,000 Garrison 16e Rechecks 2017-05-22 Exercise 12-8 Part 2 2a. Compute the simple rate of return promised by the games. 2b. If the company requires a simple rate of return of at least 12%, will the games be purchased?
Answer:
13.33%
Yes , the recent games should be purchased.
Explanation:
Relevant data provided to figure out the simply rate of return is here below:-
Net income = $40,000
Initial investment = $300,000
As per the given question the solution of simple rate of return is provided below:-
Simple rate of return = Net income ÷ Initial investment × 100
= $40,000 ÷ $300,000 × 100
= 0.13333 × 100
= 13.33%
The recent games should be purchased for the reason that simple rate of return exceed least rate of return = Simple rate of return - Least simple rate of return
= 13.33% - 12%
= 1.33%
Which of the following is the closest example of perfect price discrimination? Group of answer choices At an auction of antique furniture, each piece of furniture is sold to the highest bidder An electric utility charging higher rates to the customers in the summer season than in the winter season An airline providing discounts to its frequent-flyers as they fly more A golf-club imposing a very high entry fee to reduce membership requests
Answer:
At an auction of antique furniture, each piece of furniture is sold to the highest bidder
Explanation:
Price discrimination is when a seller charges different prices for the same good to different consumers based on their willingness to pay.
The aim of price discrimination is to eliminate consumer surplus
I hope my answer helps you
If you can download 10 ring tones for your cell phone
for $15 or you could download 11 ring tones for
your cell phone for $16, then the marginal cost of the
eleventh ring tone is
Answer:
Marginal cost of eleventh ring tone = $1
Explanation:
Given:
Cost of 10 ringtone = $15
Cost of 11 ringtone = $16
Find:
Marginal cost of eleventh ring tone = ?
Computation:
Marginal cost = change in cost / change in quantity
Marginal cost of eleventh ring tone = change in total cost / change in number of ringtone
Marginal cost of eleventh ring tone = ($16 - $15) / (11 - 10)
Marginal cost of eleventh ring tone = $1 / 1
Marginal cost of eleventh ring tone = $1
Scarbrough Corp. factored $600,000 of accounts receivable to Duff Corp. on October 1, year 2. Control was surrendered by Scarbrough. Duff accepted the receivables subject to recourse for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts receivable. In addition, Duff charged 15% interest computed on a weighted-average time to maturity of the receivables of fifty-four days. The fair value of the recourse obligation is $9,000. Scarbrough will receive and record cash of
$556,685
$547,685
$538,685
$529,685
Vaughn Manufacturing assigns $4570000 of its accounts receivables as collateral for a $2.99 million loan with a bank. The bank assesses a 3% finance charge on the loan amount and charges interest on the note at 5%. What would be the journal entry to record this transaction?
Debit Cash for $2026800, debit Interest Expense for $89700, debit Due from Bank for $1580000, and credit Accounts Receivable for $4570000.
Debit Cash for $2900300, debit Interest Expense for $89700, and credit Notes Payable for $2990000.
Debit Cash for $2900300, debit Interest Expense for $89700, and credit Accounts Receivable for $2990000.
Debit Cash for $2750800, debit Interest Expense for $239200, and credit Notes Payable for $2990000.
Answer:
Scarbrough will receive and record cash of $538,685
The journal entry to record this transaction would be:
Debit Credit
Cash $2,900,300
Interest Expense $89,700
Notes Payable $2,990,000
Debit Cash for $2900300, debit Interest Expense for $89700, and credit Notes Payable for $2990000
Explanation:
In order to calculate the amount Scarbrough will receive and record cash we would have to make the following calculation:
Scarbrough will receive and record cash=Receivables-Amount of the hold back-Withheld as fee income-Less: Withheld as interest expense
Receivables= $600,000
Amount of the hold back=$600,000 x 5%=$30,000
Withheld as fee income=$600,000 x 3%=$18,000
Withheld as interest expense=$600,000 × 15% × 54/365=$13,315
Therefore, Scarbrough will receive and record cash=$600,000- $30,000-$18,000-$13,315=$538,685
Scarbrough will receive and record cash of $538,685
According to the given data to journal entry to record this transaction would be the following:
Debit Credit
Cash $2,900,300
Interest Expense $89,700
Notes Payable $2,990,000
Interest Expense=$2,990,000 x 3%=$89,700
Consider the following situations for Shocker:
a) On November 28, 2021, Shocker receives a $4,500 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited.
b) On December 1, 2021, the company pays a local radio station $2,700 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited.
c) Employee salaries for the month of December totaling $8,000 will be paid on January 7, 2022.
d) On August 31, 2021, Shocker borrows $70,000 from a local bank. A note is signed with principal and 9% interest to be paid on August 31, 2022.
Required:
Record the necessary adjusting entries for Shocker at December 31, 2021. No adjusting entries were made during the year. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
Answer:
a.
Cash $4,500 (debit)
Deferred Revenue $4,500 (credit)
b.
Prepaid Advertising $2,700 (debit)
Cash $2,700 (credit)
c.
Salaries Expense $8,000 (debit)
Salaries Accrued $8,000 (credit)
d.
J1
Cash $70,000 (debit)
Note Payable $70,000 (credit)
J2
Interest Expense $2,100 (debit)
Note Payable $2,100 (credit)
Explanation:
a.
Recognize Cash and Deferred Revenue
b.
Recognize Asset - Prepaid Advertising and De-recognize Cash
c.
Recognize Salaries Expense and Recognize Salaries Accrued Liability
d.
J1
Recognize Cash Asset and Recognize Liability - Note Payable
J2
Recognize Interest income accrued on the Note Payable during September to December.
Coronado manufactures competition stunt kites. In November, Jerry Box prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. January February March Quarter Budgeted unit Sales 24,100 39,300 32,200 95,600 Budgeted ending inventory 7,860 6,440 2,870 2,870 Total units required 31,960 45,740 35,070 98,470 Beginning inventory 4,820 7,860 6,440 4,820 Budgeted production 27,140 37,880 28,630 93,650 Following higher-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had only 2,260 completed kites on hand. He decided that given the brisk sales in December, the company should increase its desired ending inventory level from 20 to 25 percent of the next month's sales volume. Prepare a new production budget for the first quarter. (Round answers to 0 decimal places, e.g. 5,275.) January February March Quarter
Answer:
New Production Budget:
January February March Quarter
Budgeted unit Sales 24,100 39,300 32,200 95,600 Budgeted ending inventory 9,825 8,050 3,588 3,588 Total units required 33,925 47,350 35,788 99,188 Beginning inventory 6,025 9,825 8,050 6,025 Budgeted production 27,900 37,525 27,738 93,163
Explanation:
a) Prepared Production Budget:
January February March Quarter
Budgeted unit Sales 24,100 39,300 32,200 95,600 Budgeted ending inventory 7,860 6,440 2,870 2,870 Total units required 31,960 45,740 35,070 98,470 Beginning inventory 4,820 7,860 6,440 4,820 Budgeted production 27,140 37,880 28,630 93,650
b) Budgeted Ending Inventory changed from 20% to 25% of the next month's sales. The April sales was estimated using the ending inventory of March for the prepared budget. This is calculated as follows:
Sales for April = 2,870/20% = 14,350 units
Therefore, the March ending inventory for the new production budget is equal to 25% of 14,350 = 3,588 units.
c) Production budget is an estimate of the units to be produced based on the sales forecast, desired ending inventory (safety stock to cover for unexpected increases in sales) and the period's beginning inventory level.
A Company is evaluating rental prices. Historical data show that Friday and Saturday have twice the rentals of other days of the week. The following information pertains to the store's normal operations per week: Average rentals per day on Friday and Saturday 1,350 Average rentals per day on Sunday through Thursday 600 Store hours per day 10 Total units available for rent 10,000 Variable operating costs per hour $43 Marketing costs per week $1,800 Customer service costs per week $250 The store manager wants to charge more for rentals on Friday and Saturday. What is the minimum price that should be charged during peak rental days? (Round your answer to the nearest cent.)
Answer:
$1.01
Explanation:
For computing the minimum price first we need to find the following things which are shown below:
1. Variable operating cost per week.
= Variable operating costs per hour × Store hours per day × number of days
= $43 × 12 hours per day × 7 days
= $3,612
2. Now total cost per week is
Total cost per week = Variable operating costs per week + Marketing costs per week + Customer service costs per week
= $3,612 + $1,900 + $250
= $5,762
3. After calculating, the minimum price is
= Total costs per week ÷ Rental per week
where,
Total cost per week is $5,762
And, the rental per week is
= ($1,350 × 2 days) + ($600 × 5 days)
= $2,700 + $3,000
= $5,700
So, the minimum price is
= $5,762 ÷ $5,700
= $1.01
The buyer for the housewares department purchased 40 blenders which retailed for $200 each. Eight blenders sold at the $200 price. For a special sales event, 32 remaining blenders were marked down to $140 each. Ten of the blenders were sold during the sale, and the remaining 22 blenders were marked back up to the original $200 unit price. All of the remaining blenders sold at the orignal price.
Required:
1. Calculate the total markdown dollars.
Answer:
The total markdown dollars is $1,920
Explanation:
According to the given data 32 remaining blenders were marked down to $140 each.
Therefore, to calculate the total markdown dollars we would have to make the following calculation according to the given data:
the total markdown dollars=32*($200-$140)
the total markdown dollars=32*$60
the total markdown dollars=$1,920
The total markdown dollars is $1,920
Match the items below by entering the appropriate code letter in the space provided.A twelve month accounting periodExpenses paid before they are incurredCost less accumulated depreciationDivides the economic life of a business into artificial time periodsA contra asset accountRecognition of revenue when the performance obligation is satisfiedRevenues recognized but not yet receivedExpenses incurred but not yet paidA cost allocation processAn optional tool which facilitates the preparation of financial statements.A temporary account used in the closing process.Balance sheet accounts whose balances are carried forward to the next period.Entries at the end of an accounting period to transfer the balances of temporary accounts to a permanent stockholders’ equity account.Entries to correct errors made in recording transactions.The exact opposite of an adjusting entry made in a previous period.A. Fiscal yearB. Income SummaryC. Revenue recognition principleD. Closing entriesE. Accrued expensesF. Accumulated depreciationG. Book valueH. Prepaid expensesI. WorksheetJ. Accrued revenuesK. Reversing entryL. DepreciationM. Time period assumptionN. Correcting entriesO. Permanent accounts
Answer:
A. Fiscal year: A twelve month accounting period.
H. Prepaid expenses: Expenses paid before they are incurred.
G. Book value: Cost less accumulated depreciation.
M. Time period assumption: Divides the economic life of a business into artificial time periods.
F. Accumulated depreciation: A contra asset account
C. Revenue recognition principle: Recognition of revenue when the performance obligation is satisfied.
J. Accrued revenues: Revenues recognized but not yet received.
E. Accrued expenses: Expenses incurred but not yet paid.
L. Depreciation: A cost allocation process.
I. Worksheet: An optional tool which facilitates the preparation of financial statements.
B. Income Summary: A temporary account used in the closing process.
O. Permanent accounts: Balance sheet accounts whose balances are carried forward to the next period.
D. Closing entries: Entries at the end of an accounting period to transfer the balances of temporary accounts to a permanent stockholders' equity account.
N. Correcting entries: Entries to correct errors made in recording transactions.
L. Reversing entry: The exact opposite of an adjusting entry made in a previous period.
Automobile firms can use their inputs to make hybrid cars or "regular" (non-hybrid) cars. If the equilibrium price of hybrid cars rises sharply, the resulting shift in the supply curve for "regular" cars will cause:
Answer: a) an increase in the Equilibrium price of "regular" cars.
Explanation:
It is stated that the automobile companies use their inputs to make either the hybrid cars or the regular cars.
If the price of the Hybrid cars rises sharply, Automobile companies will make more Hybrid cars so as to take advantage of the situation and make more profit.
This would reduce the amount of inputs that they have available for regular cars and so they will make less regular cars.
As this supply of regular cars decreases,the supply curve will shift to the left and the price will increase to cater for this reduction in supply.
The Assembly Department of Interface, Inc., manufacturer of computers, had 1 comma 500 units of beginning inventory in September, and 9 comma 000 units were transferred to it from the Production Department. The Assembly Department completed 4 comma 500 units during the month and transferred them to the Packaging Department. The weightedminusaverage method is used. Calculate the total number of units to account for by the Assembly Department.
Answer:
The correct answer is 10,500 Units
Explanation:
Solution:
Given that:
Now
Beginning WIP inventory in September = 1500
Units transferred in from Production Department = 9000
The next step is to calculate the total number of units to account for by the Assembly Department.
Hence,
The WIP inventory beginning in September + The Units transferred in from Production Department
= 1500 + 9000 = 10,500 units
Suppose the following items were taken from the December 31, 2017, assets section of the Boeing Company balance sheet. (All dollars are in millions.)
Inventory $16,933
Patents $12,528
Notes receivable—due after December 31, 2018 5,466
Buildings 21,579 Notes receivable—due before December 31, 2018 368
Cash 9,215
Accumulated depreciation—buildings 12,795
Accounts receivable 5,785
Debt investments (short term) 2,008
Required:
1. Prepare the assets section of a classified balance sheet, listing the current assets in order of their liquidity.
Answer:
Inventory $16,933
Notes receivable—due before December 31, 2018 368
Debt investments (short term) 2,008
Accounts receivable 5,785
Cash 9,215
Explanation:
Current Assets Section consists of Asset items that can be converted into cash within the period of 12 months.
Conversion happens in order of liquidity. Which means how much cash can be realized from conversion of a non-monetary asset in short term.
The order is given as below:
Inventory $16,933
Notes receivable—due before December 31, 2018 368
Debt investments (short term) 2,008
Accounts receivable 5,785
Cash 9,215
If an email message is going _________of the organization, the writer should include a salutation that can simply state the individual's name.
Options:
1) Inside
2) Outside
3) Inside and Outside
4) All of the Above
Answer:
2) Outside
Explanation:
When writing an email, let's say the email is going outside of the the company, the name, salutation are suppose to be included so as to indicted who the email is meant for, without indicating the name, it would not be known who the email is meant for, since the email is going outside the organization and not within it.
Answer:
1) Inside
Explanation:
When a mail is being sent the salutation used is dependent on if the recipient is internal or external.
A more casual salutation is used for internal recipients like colleagues or team mates, with the first name of the person stated then comma.
For example Hi John,
For external recipients it is more formal. It can be in the format Dear (Title) (Name) and then comma.
For example Dear Mr. Samuel,
Centre College, a private liberal arts college in Central Kentucky, charged (billed) tuition and fees of $50,000 based on the registration of students; Centre provided scholarships of $12,000 to the registered students. The entry to bill the tuition and fees and scholarships would include a: A. Debit to Tuition and Fees, $50,000. B. Debit to Tuition Discounts and Allowances, $12,000. C. Credit to Tuition and Fees, $38,000. D. Credit to Tuition Discounts and Allowances, $14,000.
Answer: B. Debit to Tuition Discounts and Allowances, $12,000.
Explanation:
A scholarship is considered a discount so should be recorded as one. When recording a discount, it is debited to its own account which in this case will be the Tuition Discounts and Allowances account.
The full entries are,
DR Cash (50,000 - 12,000) $38,000
DR Tuition Discounts and Allowances $12,000
CR Tuition and Fees $50,000
Crane Co. incurred research and development costs in 2021 as follows: Materials used in research and development projects $ 945000 Equipment acquired that will have alternate future uses in future research and development projects 2950000 Depreciation for 2021 on above equipment 491666 Personnel costs of persons involved in research and development projects 745000 Consulting fees paid to outsiders for research and development projects 295000 Indirect costs reasonably allocable to research and development projects 220000 $5646666 The amount of research and development costs charged to Crane's 2021 income statement should be
Answer:
The amount of research and development costs charged to Crane's 2021 income statement = $2,696,666
Explanation:
Materials used in research and development projects = $945,000
Equipment acquired that will have alternate future uses in future research and development projects = $2,950,000
Depreciation = $491,666
Personnel costs = $745,000
Consulting fees = $295,000
Indirect costs = $220,000
The amount of research and development costs charged to Crane's 2021 income statement would be:
Materials used + Depreciation for 2021 + Personnel costs + Consulting fees + Indirect costs
= $945,000 + $491,666 + $745,000 + $295,000 + $220,000
= $2,696,666
Therefore, the amount of research and development costs charged to Crane's 2021 income statement =$2,696,666
For each of the following financial ratios that are based on comprehensive annual financial report (CAFR) information by selecting the appropriate letter of the explanation for that ratio. Answers can only be used once.
A. An indicator of interperiod equity.
B. An indicator of the government’s commitment to replacement of capital assets.
C. An indicator of the government’s reliance on revenues it does not directly control.
D. A measure of the degree to which government assets have been funded with debt.
E. An indicator of the government’s ability to pay its 60- to 90-day obligations.
F. A measure of the government’s capacity to issue debt.
G. A measure of capital asset useful service life.
H. A measure of the government’s liquidity.
I. An indicator of taxpayer debt burden.
J. An indicator of the government’s ability to withstand financial emergencies.
Ratio
1. General fund balances/General Fund operating revenues
2. (Cash + short-term investments)/Current liabilities
3. General obligation long-term debt/Assessed valuation
4. Capital outlay from operating funds/Operating expenditures
5. General bonded debt Legal debt limit
6. Accumulated depreciation/Average cost of depreciable assets
7. Net revenues/Total expenses
8. Charges for services/Total revenues
9. Total liabilities/Total assets
10. Current assets/Current liabilities
Answer:
An indicator of interperiod equity.
Net revenues/Total expenses
An indicator of the government's commitment to replacement of capital assets
Capital outlay from operating funds/Operating expenditures
An indicator of the government's reliance on revenues it does not directly control.
. Non-tax revenues/Total revenues
A measure of the degree to which government assets have been funded with debt.
Total liabilities/Total assets
An indicator of the government's ability to pay its 60 to 90-day obligations.
(Cash + short-term investments)/Current liabilities
A measure of the government's capacity to issue debt.
General bonded debt/Legal debt limit
A measure of capital asset useful service life.
Accumulated depreciation/Average cost of depreciable assets
A measure of the government's liquidity.
Current assets/Current liabilities
An indicator of taxpayer debt burden.
General obligation long-term debt/Assessed valuation
An indicator of the government's ability to withstand financial emergencies
General fund balances/Operating revenues
The city of Trenton, New Jersey, passed an ordinance making it unlawful to use any form of sound amplification on the city streets. A city prosecutor, Charles Kovac, mounted an amplifier on a truck through which he played music and spoke on the microphone while driving on city streets. Kovac was tried and convicted in the Trenton Police Court and fined fifty dollars. Kovac appealed, arguing that the ordinance violated his rights of free speech and free assembly, The city claimed that the ordinance served a legitimate governmental function in keeping the city streets safe and orderly and did not prohibit free speech or assembly. How would a court likely rule in regards to the ordinance?
a. The court probably found that the ordinance was unconstitutional as an unreasonable restriction on fundamental rights.
b. The court probably found that the ordinance was unconstitutional under the equal protection clause.
c The court probably found that the ordinance was constitutional under the establishment cause.
d. The court probably found that the ordinance was constitutional as a reasonable restriction on fundamental rights.
Answer: d. The court probably found that the ordinance was constitutional as a reasonable restriction on fundamental rights.
Explanation: Human rights maybe defined as the basic right that all human should be guaranteed by virtue of them being human, while an ordinance is given as a local law. The ruling of the court in regards to the ordinance would be that the ordinance was constitutional as a reasonable restriction on fundamental rights. This is because the ordinance was already in place to keep the city streets safe and orderly to which Charles Kovac flouted and as such was convicted.
Answer:
the answer would be D
Explanation:
The court probably found that the ordinance was constitutional as a reasonable restriction on fundamental rights.
client is using the Sales on Account workflow. Instead of receiving a payment against the invoice, they add a new deposit categorized to an income account.
Answer:two answers. Their accounts receivable balance will not be accurate. And the income account will show duplicate income.
Explanation: