Answer: -2.27%
Explanation:
Bond prices are inversely related to interest rates so when the interest rises, the price of a bond will fall.
The formula for calculating this fall is;
= - Duration * ( Change in interest rate / (1 + current rate))
= -7 * ( 0.35%/(1 +8%))
= -0.022685
= -2.27%
Timmy Company's comparative balance sheet at January 31, 2017, and 2016. reports the following (in millions):
Three situations about Timmy Company's issuance of stock and declaration and payment of dividends during the year ended January 31, 2017.
follow. Read the requirements.
Begin by reviewing the labels for the change in stockholders' equity and then enter the amounts for each situation. (Enter an amount in each input area. Input a "0" when there is no amount to be entered. Enter amount millions. Use a minus sign or parentheses when entering net losses or numbers to be subtracted.)
Total stockholders' equity, January 31, 2016
Add: Issuance of stock
Net income
Less: Dividends declared
Net loss
Total stockholders' equity, January 31, 2017
For each situation, use the accounting equation and the statement of retained earnings to compute the amount of Timmy's net income or net loss during the year ended January 31 2017.
1. Timmy issued $13 million of stock and declared no dividends.
2. Timmy issued no stock but declared dividends of $17 million.
3. Timmy issued $20 million of stock and declared dividends of $27 million.
Answer:
The Accounting Equation states that;
Assets = Liabilities + Equity
Equity as at 2016 = Assets - Liabilities
= 50 - 13
= $37 million
Equity as at 2017 = Assets - Liabilities
= 77 - 18
= $59 million
1. Timmy issued $13 million of stock and declared no dividends.
The Net Income ( loss) will be the figure that gives the Statement of Equity a figure of $59 million.
Net Income = Total stockholders' equity, January 31, 2017 - Total stockholders' equity, January 31, 2016 - Issuance of stock
= 59 - 37 - 13
= $9 million
Total stockholders' equity, January 31, 2016 ................ 37
Add: Issuance of stock ......................................................... 13
Net income ......................................................................9
Less: Dividends declared......................................................0
Net loss.......................................................................................0
Total stockholders' equity, January 31, 2017...................59
2. Timmy issued no stock but declared dividends of $17 million.
Net Income (loss) = Total stockholders' equity, January 31, 2017 - Total stockholders' equity, January 31, 2016 + Dividends Declared
= 59 - 37 + 17
= $39 million
Total stockholders' equity, January 31, 2016 ................ 37
Add: Issuance of stock ......................................................... 0
Net income ......................................................................39
Less: Dividends declared......................................................(17)
Net loss.......................................................................................0
Total stockholders' equity, January 31, 2017...................59
3. Timmy issued $20 million of stock and declared dividends of $27 million.
Net Income (loss) = Total stockholders' equity, January 31, 2017 - Total stockholders' equity, January 31, 2016 + Dividends Declared - Issuance of stock
= 59 - 37 + 27 - 20
= $29 million
Total stockholders' equity, January 31, 2016 ................ 37
Add: Issuance of stock ......................................................... 20
Net income ......................................................................29
Less: Dividends declared......................................................(27)
Net loss.......................................................................................0
Total stockholders' equity, January 31, 2017...................59
Suppose that Firm A and Firm B are independently deciding whether to sell at the low price or a higher price. The payoff matrix below shows the profits per year for each company resulting from the two price options. a. Does Firm A have a dominant strategy? The dominant strategy for Firm A is a low price. No, there is no dominant strategy for Firm A. The dominant strategy for Firm A is a high price.
Answer: No, there is no dominant strategy for Firm A.
Explanation:
Dominant strategies would refer to those that a Firm can take and still have a better payoff regardless of what the other Firm/player chooses. From the above, there is no dominant strategy for Firm A because there is no single strategy that they can follow that will maximise payoff regardless of what B does.
For instance, if Firm A were to charge a lower price, and Firm B charged a higher price, Firm A would make less than Firm B at $2 million. They make less regardless of any decision they make.
Suppose a local hardware store has explicit costs of $2 million per year and implicit costs of $44,000 per year. If the store earned an economic profit of $50,000 last year, this means that the store's accounting profit equaled:
Answer:
$94,000
Explanation:
A local hardware store has explicit cost of $2 million per year
The implicit costs are $44,000 per year
The store earned an economic profit of $50,000 last year
Therefore, the store's accounting profit can be calculated as follows
Accounting profit = Implicit costs + economic profit
= $44,000 + $50,000
= $94,000
Hence the store's accounting profit is $94,000
You have a credit card with a balance of $12,100 and an APR of 17.5 percent compounded monthly. You have been making monthly payments of $235 per month, but you have received a substantial raise and will increase your monthly payments to $285 per month. How many months quicker will you be able to pay off the account
Answer:
you will pay off your debt in 32 months less
Explanation:
I prepared two amortization schedules:
if you pay $235, it will take you 99 months to pay off your debt
if you pay $285, it will take you 67 months to pay off your debt
Since entrepreneurs are starting new businesses, experience gained from working for an established business isn't particularly helpful.a) trueb) false
Answer:
False
Explanation:
Entrepreneurs who are starting new businesses, can use experiences gained from working for an established business. This is particularly helpful. It helps them to avoid certain mistakes and pitfalls that they might have noticed or observed in the established company they are coming from.
Also, it enables them to practice certain business ethics they learnt from the established firms they are coming from.
Some customers are __________, caring about new developments in their category and seeking out new products.
Answer:
Early adopters
Explanation:
Early adopters define to adopt a new product or technology introduced in the market place for the first customers or the new customers
Here the product or technology is the first time introduced in the market with a lot of expectations which could be in terms of sales, revenues, trust, satisfaction, etc
Therefore in the given situation, the early adopters should be chosen for the new developments in the products category
With this in mind, are accountants ethically obligated to report financial information accurately? Does reporting using the generally accepted accounting principles imply accuracy? What are some potential consequences for an external analyst if a company provides inaccurate or misleading financial statements?
Answer:
1. Accountants are ethically obligated to report financial information accurately
2. Reporting using the generally accepted accounting principles underscore on accuracy
3. Loss of confidence, lack of trust on the accounting team, a huge strain on their professional judgement and ethics.
Explanation:
1. Financial information in itself possesses some vital characteristics. One of these is the accuracy of the financial information. As the handler of financial activities, accountants are therefore saddled and ethically obligated to present and prepare their information accurately. This is so as to reflect the true picture of the going in the organization.
2. Reporting using GAAP - Generally Accepted Accounting Principles, seeks to converge the presentation of financial reports and statements on the basis of accuracy. Thus, reliability and relevance are ultimately the foremost objectives of these principles. I therefore have no doubt its usage conveys accuracy of reports.
3. Loss of confidence - financial reports through which the external analyst worked upon are often prepared by the internal staffs. The implication of a wrong and misleading reports from the company is an erosion of confidence on the credibility, reliability and competence of company's preparers of reports.
Lack of trust - The point above ultimately impacts on the level of trust placed on the accuracy, reliability and relevance of financial reports.
Professional Judgement and Ethics - The conducts of the company in presenting a wrong report throws the analyst into an ethnical dilemma, and a huge professional strain. This is not in line with best practices.
You recently purchased a stock that is expected to earn 20 percent in a booming economy, 15 percent in a normal economy, and lose 2 percent in a recessionary economy. There is 21 percent probability of a boom, 72 percent chance of a normal economy, and 7 percent chance of a recession. What is your expected rate of return on this stock
Answer:
rE = 0.1486 or 14.86%
Explanation:
The expected rate of return of a stock is the mean return that is expected to be earned by the stock considering the different scenarios that can occur, the return in these scenarios and the probability of the occurrence of these scenarios. The formula for expected rate of return of stock is,
rE = pA * rA + pB * rB + ... + pN * rN
Where,
pA, pB, ... represents the probability that scenario A, B and so on will occur or the probability of each scenariorA, rB, ... represents the return in scenario A, B and so onrE = 0.21 * 0.2 + 0.72 * 0.15 + 0.07 * -0.02
rE = 0.1486 or 14.86%
Rosita's announced that its next annual dividend will be $1.65 a share and all future dividends will increase by 2.5 percent annually. What is the maximum amount you should pay to purchase a share of this stock if you require a 12 percent rate of return?
a. $17.37
b. $16.94
c. $17.80
d. $15.46
e. $13.75
Answer:
$17.37
Explanation:
Rosita's made an announcement that the next annual dividend payment will be $1.65 per share
The dividend will increase by 2.5% annually
= 2.5/100
= 0.025
The rate of return is 12%
= 12/100
= 0.12
Therefore, the maximum amount that should be paid to purchase this stock can be calculated as follows
Po= $1.65/(0.12-0.025)
= $1.65/0.095
= $17.37
Hence the maximum amount that should be paid to purchase a share of the stock is $17.37
Assume that the multiplier in the Chinese economy is 3 and autonomous investment expenditures increase by $100. The Chinese government has a budget deficit of $100 and the income tax rate is 30 percent. The increase in autonomous investment expenditures will:
A. increase equilibrium income by $300 and cause the budget deficit to decrease by $90.
B. increase equilibrium income by $300 and cause the budget deficit to decrease by $100.
C. increase equilibrium income by $300 and cause the budget deficit to increase by $100.
D. increase equilibrium income by $300 and cause the budget deficit to increase by $90.
Answer:
A. increase equilibrium income by $300 and cause the budget deficit to decrease by $90.
Explanation:
Change in income = Multiplier * Change in investment
Change in income = $3 * 100
Change in income = $300
So, Income tax increase by = $300 * 0.3
= $90. Government expenditure is unchanged. So, Budget deficit (G-T) decreases by $90.
A woman worked for 30 years before retiring. At the end of the first year of employment she deposited 5000 into an account for her retirement. At the end of each subsequent year of employment, she deposited 3% more than the prior year. The woman made a total of 30 deposits. She will withdraw 50,000 at the beginning of the first year of retirement and will make annual withdrawals at the beginning of each subsequent year for a total of 30 withdrawals. Each of these subsequent withdrawals will be 3% more than the prior year. The final withdrawal depletes the account. The account earns a constant annual effective interest rate. Calculate the account balance after the final deposit and before the first withdrawal.
Answer:
$797,837
Explanation:
the first withdrawal is $50,000
the second is $51,500
and so on...
the formula that used to solve the interest rate earned by the annuity is:
$50,000 x {[(1 + i)³⁰ - (1 + 3%)³⁰] / [(1 + i)³⁰ x (i - 3%)]} x (1 + i) = $5,000 x {[(1 + i)³⁰ - (1 + 3%)³⁰] / (i - 3%)}
we start to simplify the equation by cancelling {[(1 + i)³⁰ - (1 + 3%)³⁰] / (i - 3%)}
[$50,000 x (1 + i)] / (1 + i)³⁰ = $5,000
now we cancel $5,000 on each side:
[10 x (1 + i)] / (1 + i)³⁰ = 1
now lets take away (1 + i):
10 / (1 + i)²⁹ = 1
things get a little bit more simple now:
10 = (1 + i)²⁹
²⁹√10 = ²⁹√(1 + i)²⁹
1.082636734 = 1 + i
i = 1.082636734 - 1 = 0.082636734 = 8.2636734%
now we replace i in any equation:
= $50,000 x {[(1 + 0.082636734)³⁰ - 1.03³⁰] / [(1 + 0.082636734)³⁰ x (0.082636734 - 0.03)]} x (1 + 0.082636734)
= $50,000 x {[10.82636738 - 2.427262471] / [10.82636738 x 0.052636734]} x (1 + 0.082636734)
= $50,000 x {8.399104909 / 0.56986462} x (1.082636734)
= $50,000 x 14.73877236 x 1.082636734
= $797,837
Assume that you are working for a computer manufacturer as a software engineer and that you are told abruptly that your project will be canceled within 4 weeks. List the questions that you would have for management. After absorbing the shock, what would you do
Answer:
When will the project get cancelled?
How will the project be cancelled?
Explanation:
Phyllis Stintson needs to decide whether to start a campaign against deforestation in Indonesia. Though her research team has provided substantial information on the high feasibility of the project, Stintson does not go ahead with the project. Stintson's decision is most likely influenced by which of the following if she made the decision by drawing unconscious references from several different experiences in the past?
A) optimization
B) intuition
C) fundamental attribution error
D) framing effect
E) anchoring bias
Answer:
B) intuition
Explanation:
Analyzing the scenario above, it is clear that Phyllis Stintson performed the decision-making process according to her intuition.
It is possible to perceive the use of intuition as the question provides information that he made the decision by drawing unconscious references from several different experiences in the past.
Intuition can be an important skill for leaders, who need to make decisions that are increasingly quick and important for the success of an organization, so it is important that a leader's self-awareness is a valued characteristic, because from self-awareness the leader has greater emotional control over his experiences, his intuition, his knowledge and other essential characteristics which will be useful to base an important decision-making process.
On June 1, Pina Colada Corp. borrows $111,000 from First Bank on a 6-month, $111,000, 8% note.
Required:
a. Prepare the entry on June 1.
b. Prepare the adjusting entry on June 30.
c. Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30.
Answer:
June 1
Cash $111,000 (debit)
Note Payable $111,000 (credit)
June 30
Interest expense $1,480 (debit)
Note Payable $1,480 (credit)
Nov 30
Note Payable $119,800 (debit)
Cash $119,800 (credit)
Explanation:
June 1
Recognize the Cash Asset received and a liability Note Payable
June 30
Interest for 1 month has accrued and this is calculated as :
Interest Expense = $111,000 × 8% × 1/6
= $1,480
Nov 30
Total Interest is capitalized to the Note Payable and the full amount is repaid
Total Interest = $111,000 × 8%
= $8,800
Ballon Amount = $111,000 + $8,800
= $119,800
Patrick has assets that total $9,500. His liabilities total $1,900. Which expression will find Patrick’s net worth?
Answer:
D) $9,500-$1,900
Explanation:
Correct answer on Edge, but if you want all the choices they are:
A) $9,500 / $1,900
B) $1,900 - $9,500
C) $1,900 / $9,500
>>>>>>>>>> D) $9,500 - $1,900 <<<<<<<<<<<<
The expression that will find Patrick’s net worth is: $9,500-$1,900.
What is net worth?Net worth can be defined as a person assets less the liabilities.
Using this formula
Net worth=Assets-Liabilities
Where:
Assets=$9,500
Liabilities=$1,900
Let plug in the formula
Net worth=$9,500-$1,900
Net worth=$7,600
Inconclusion the expression that will find Patrick’s net worth is: $9,500-$1,900.
Learn more about net worth here:https://brainly.com/question/12371230
Thaddeus Conway Corporation reported the following activity during the current year:
Gross Profit $69,000,000
Operating Expenses ($57,000,000)
Captial Gains $17,000,000
Capital Losses ($24,000,000)
The corporation's tax liability amounts to:________
a) some other amount
b) $1,050,000
c) $6,090,000
d) $2,520,000
Answer:
$2,520,000
Explanation:
Capital gains of $17,000,000 will setted off against the loss of 24,000,000 and the remaining 7,000,000 will be carried forward for the next year.
DATA
Gross Profit = $69,000,000
Operating Expenses = ($57,000,000)
Captial Gains = $17,000,000
Capital Losses = ($24,000,000)
Tax Rate = 21%
Calculation
Taxable Income = $69,000,000 - $57,000,000 = $12,000,000
Tax Liability = Taxable Income * Tax Rate
Tax Liability = $12,000,000 * 21%
Tax Liability = $2,520,000
NOTE: Any Capital losses of the corporation can be set off against the Capital gains of the year
10 years ago, the City of Melrose issued $3,000,000 of 8% coupon, 30-year, semiannual payment, tax-exempt muni bonds. The bonds had 10 years of call protection, but now the bonds can be called if the city chooses to do so. The call premium would be 6% of the face amount. New 20-year, 6%, semiannual payment bonds can be sold at par, but flotation costs on this issue would be 2% of the amount of bonds sold. What is the net present value of the refunding? Note that cities pay no income taxes, hence taxes are not relevant.
Answer:
the net present value of the refunding = $453,443
Explanation:
Given that:
Amount issued by City of Melrose = $3,000,000
Old rate of coupon = 8%
Period (years) = 20
Call premium = 6%
New rate coupon = 6%
Flotation cost = 2%
For the cost of refunding ; we have:
Call premium = 6% × $3,000,000
Call premium = 0.06 × $3,000,000
Call premium = $180000
Floatation cost = 2% × $3,000,000
Floatation cost = 0.02 × $3,000,000
Floatation cost = $60000
The total investment outlay = Call premium + Flotation cost
The total investment outlay = $180000 + $60000
The total investment outlay = $240000
However, the interest on the old bond per 6 months = (old coupon/2 ) × Amount issued
the interest on the old bond per 6 months = (8%/2) × $3000000
the interest on the old bond per 6 months = (0.08/2) × $3000000
the interest on the old bond per 6 months = 0.04 × $3000000
the interest on the old bond per 6 months = $120000
the interest on the new bond per 6 months = (new coupon/2 ) × Amount issued
the interest on the new bond per 6 months = (6%/2) × $3000000
the interest on the new bond per 6 months = (0.06/2) × $3000000
the interest on the new bond per 6 months = 0.03 × $3000000
the interest on the new bond per 6 months = $90000
Amount savings per 6 months = $120000 - $90000
Amount savings per 6 months = $30000
Finally, the present value for the savings = 30000 × PVIFA(0.03,40)
the present value for the savings = $693,443
Thus;
the net present value of the refunding = the present value for the savings - Cost of refunding
the net present value of the refunding = $693,443 - $240000
the net present value of the refunding = $453,443
Problem 5-13 Comprehensive Problem; Second Production Department-Weighted-Average Method [LO5-2, LO5-3, LO5-4, LO5-5] Old Country Links, Inc., produces sausages in three production departments—Mixing, Casing and Curing, and Packaging. In the Mixing Department, meats are prepared and ground and then mixed with spices. The spiced meat mixture is then transferred to the Casing and Curing Department, where the mixture is force-fed into casings and then hung and cured in climate-controlled smoking chambers. In the Packaging Department, the cured sausages are sorted, packed, and labeled. The company uses the weighted-average method in its process costing system. Data for September for the Casing and Curing Department follow:
Question Completion:
Data for September for the Casing and Curing Department follow:
Percent Completed
Units Mixing Materials Conversion
Work in process inventory, Sept. 1 7 100% 60% 50%
Work in process inventory, Sept 30 7 100% 20% 10%
Costs:
Mixing Materials Conversion
Work in process inventory, Sept. 1 $13,006 $112 $11,193
Costs added during September $128,404 $11,852 $110,310
Mixing cost represents the costs of the spiced meat mixture transferred in from the Mixing Department. The spiced meat mixture is processed in the Casing and Curing Department in batches; each unit in the above table is a batch and one batch of spiced meat mixture produces a set amount of sausages that are passed on to the Packaging Department. During September, 72 batches (i.e., units) were completed and transferred to the Packaging Department.
Answer:
Old Country Links, Inc.
Required:
1. Determine the Casing and Curing Department's equivalent units of production for mixing, materials, and conversion for the month of September:
Mixing Materials Conversion
Equivalent units of production:
Ending Work in process 7 1.4 0.7
Completed and transferred out 72 72 72
Equivalent units 79 73.4 72.7
2. Compute the Casing and Curing Department's cost per equivalent unit for mixing, materials, and conversion for the month of September.
Mixing Materials Conversion
Total costs of production $141,410 $11,964 $114,503
Equivalent units 79 73.4 72.7
Cost per equivalent unit: $1,790 $163 $1,575
3. Compute the Casing and Curing Department's cost of ending work in process inventory for mixing, materials, conversion, and in total for September.
Mixing Materials Conversion Total Cost
Cost per equivalent unit: $1,790 $163 $1,575
Equivalent units of Ending WIP 7 1.4 0.7
Ending WIP $12,530 $228 $1,103 $13,861
4. Compute the Casing and Curing Department's cost of units transferred out to the Packaging Department for mixing, materials, conversion, and in total for September.
Mixing Materials Conversion Total Cost
Cost per equivalent unit: $1,790 $163 $1,575
Transferred out 72 72 72
Cost transferred out $128,880 $11,736 $113,400 $254,016
5. Prepare a cost reconciliation report for the Casing and Curing Department for September.
Costs to be accounted for:
Cost of beginning WIP $17,311
Costs added to production 250,566
Total costs to be accounted for $267,877
Costs accounted for:
Cost of Ending WIP $13,861
Cost of units completed
& transferred out $254,016
Total costs accounted for $267,877
Explanation:
a) Total Costs of production:
Costs:
Mixing Materials Conversion
Work in process inventory, Sept. 1 $13,006 $112 $4,193
Costs added during September $128,404 $11,852 $110,310
Total costs of production $141,410 $11,964 $114,503
b) Equivalent unit of Ending WIP and beginning WIP
Ending Work in process 7 (7 x 100%) 1.4 (7 x 20%) 0.7 (7 x 10%)
Beginning Work in process 7 (7 x 100%) 4.2 (7 x 60%) 3.5 (7 x 50%)
c) In using the weighted-average method, Old Country Links, Inc. calculates the equivalent units of production by adding the units transferred to the Packaging Department during the period and the equivalent units in the Casing and Curing Department's ending work in process inventory. Old Country Links, Inc. uses one Work in Process account to accumulate costs for all jobs in each department.
Panther Co. had a quality-assurance warranty liability of $356,000 at the beginning of 2018 and $302,000 at the end of 2018. Warranty expense is based on 5% of sales, which were $55 million for the year. What were the warranty expenditures for 2018
Answer:
$2,804,000
Explanation:
Panther corporation has a quality assurance liability of $356,000 at thr start of 2018
They also had a quality assurance liability of $302,000 at the end of 2018
Warranty expense is 5% of the total sales which was $55 million for the year
= 5/100 × 55,000,000
= 0.05×55,000,000
= 2,750,000
Therefore, the warranty expenditures for 2018 can be calculated as follows
=$356,000+$2,750,000-$302,000
= $3,106,000-$302,000
= $2,804,000
Hence the warranty expenditures for 2018 is $2,804,000
Voltanis Corp. has preferred stock outstanding that will pay an annual dividend of $2.85 every year in perpetuity. If the stock currently sells for $92.87 per share, what is the required return?
Answer:
3.07%
Explanation:
Required return is a financial term that describes the least return an individual or investor hopes to obtain by investing in a particular project. This can be derived by dividing expected annual dividend of stock with current rate of stocks, then multiply by 100
Hence, in this case, the expected annual dividend of stock is $2.85
The current rate of stock per share is $92.87
Therefore, the required return is $2.85/$92.87 = 0.0307 * 100
=> 3.07%
Hence, the final answer is 3.07%.
Electronics Company A is recognized as the world leader in the production of radios. They
control more than 75% of the radio market, but the market is slowly shrinking. The company also
makes several high-quality audio products, including CD players. The market for CD players is
growing, and currently the company cannot make enough to meet the demand. What choice
should the company make? What is the opportunity cost? Explain your reasoning,
Answer:
There comes a time when every company must make a decision to evolve because the products that they offer will always become obsolete at some point in the future. This is simply because humans will always strive to make processes more efficient.
Electronics Company A is a leader in the radio market but that market is shrinking. There is a new revenue stream however and that market is growing.
The decision that they should make is to reduce the amount of facilities that are dedicated to radios and channel it to the production of CD players so that they may gain dominance there before the market becomes saturated. Had Kodak have done this when digital cameras were on the rise, their fall from grace might not have happened at all.
The Opportunity Cost of this however is that they may lose dominance in the radio industry which is only slowly declining meaning that there are still profits to be made. The keyword however is that the market is declining. They should therefore evolve and move to an industry that is on the up and up which is the CD player.
Failure to do this would mean that they would become another Kodak or Blockbuster.
Requirements 1. Journalize required transactions, if any, in 's general journal. Explanations are not required. 2. What is the balance in Estimated Warranty Payable assuming a beginning balance of $0?
Answer:
1.
April 30
No entry required
June 30,
DR Warranty Expense ................................................... $15,200
CR Estimated Warranty Payable....................................................$15,200
Working
Warranty Expense = 380,000 * 4%
= $15,200
Jul 28
DR Estimated Warranty Payable.......................................$5,900
CR Cash..................................................................................................$5,900
September 30
DR Loss from Lawsuit ..........................................................$ 70,000
CR Estimated Lawsuit Payable............................................................$70,000
December 31
DR Warranty Expense ..........................................................$20,000
CR Estimated Warranty Payable..........................................................$20,000
Working
Warranty Expense = 500,000 * 4%
= $20,000
2. Estimated Warranty Payable is a liability account so credits increase it and debits reduce it.
Balance;
= Credits - Debits
= 15,200 + 20,000 - 5,900
= $29,300
The LaPann Corporation has obtained the following sales forecast data: July August September October Cash sales $ 80,000 $ 70,000 $ 50,000 $ 60,000 Credit sales $ 240,000 $ 220,000 180,000 200,000The regular pattern of collection of credit sales is 20% in the month of sale, 70% in the following the month of sale and the remainder in the second month following the month of sale. There are no bad debts.Required:1. The budgeted accounts receivable balance on September 30 is:A) $126,000B) $148,000C) $166,000D) $190,0002. The budgeted cash receipts for October are:A) $188,000B) $248,000C) $226,000D) $278,000
Answer:
1. 166,000
2. 188,000
Explanation:
The budgeted accounts receivable balance on September 30 and Budgeted cash receipts for october n be calculated as follows
July
Opening -
Credit sales 240,000
Collection
20% of July 48,000
Closing 192,000
August
Opening 192,000
Credit sales 220,000
Total 412,000
Collection
20% of August 44,000
70% of July 168,000
Total receipts 208,000
Closing 200,000
September
Opening 200,000
Credit sales 180,000
Total 380,000
Collection
20% of september 36,000
70% of august 154,000
10% of july 24,000
Total receipts 214,000
Closing 166,000
October
Opening 166,000
Credit sales 200,000
Total 366,000
Collection
20% of October 40,000
70% of september 126,000
10% of august 22,000
Total receipt 188,000
Closing 178,000
Job 652 was recently completed. The following data have been recorded on its job cost sheet:_______.
Direct materials $ 65,400
Direct labor-hours 1,236 DLHs
Direct labor wage rate $ 15 per DLH
Number of units completed 4,800 units
The company applies manufacturing overhead on the basis of direct labor-hours. The predetermined overhead rate is $35 per direct labor-hour.
Required:
Compute the unit product cost that woild appear on the job cost sheet for this job. (Round your answer to 2 decimal places.)
Unit product cost
Answer:
Unit product cost = $26.50
Explanation:
The computation of the unit product cost is shown below:
As we know that
Unit product cost = Total cost ÷ number of units completed
where,
Total cost is
= Direct materials + direct labor + manufacturing overhead
= $65,400 + 1,236 × $15 + 1,236 × $35
= $65,400 + $18,540 + $43,260
= $127,200
And, the number of units completed is 4,800 units
So, the unit product cost is
= $127,200 ÷ 4,800 units
= $26.50
The following information describes a company's usage of direct labor in a recent period: Actual direct labor hours used Actual rate per hour Standard rate per hour Standard hours for units produced How much is the direct labor efficiency variance?
Answer: a) $26,000 Favorable
Explanation:
The Direct labor efficiency variance checks the how well staff are actually utilizing labor hours vs how they are expected to be utilizing it and is calculated by the formula;
Direct Labor Efficiency variance = (Standard hours – Actual hours) x Standard rate
Direct Labor Efficiency variance = ( 43,000 - 41,000 ) * 13
Direct Labor Efficiency variance = $26,000
As the Standard hours are higher than the actual hours used, this is considered a Favorable Variance.
In which situations is a broker/seller NOT required to provide a written disclosure regarding the broker's license status?
Answer: when the broker is selling property for the broker's sister
Explanation:
The situations in which a broker or seller is not required to provide a written disclosure regarding the broker's license status is when the broker is selling property for the broker's sister.
It should be noted that license holders
that wants to either purchase or sell a property on their behalf or for a relation should disclose that they are licensed and this should be done in writing.
In addition to the above costs, if Quirch produces part PQ107, it would have a retooling and design cost of $9,800. The relevant costs of producing 2,400 units of product PQ107 internally are:
Answer:
$149,000
Explanation:
Computation for the relevant costs of producing 2,400 units of product PQ107 internally
Using this formula
Relevant Costs = Incremental Costs = Incremental Variable Costs + Incremental
Let plug in the formula
Relevant Costs = [(2,400 units × $31/unit) + (2,400 units × $19/unit) + (2,400 units × $8/unit)] + $9,800
Relevant Costs=$74,400+$45,600+$19,200+$9,800
Relevant Cost =$149,000
Therefore the relevant costs of producing 2,400 units of product PQ107 internally are $149,000
You open an individual retirement account (IRA) with a mutual fund and contribute $1,000 into the account each year. How much will be in the account after 20 years if the investment earns 7% annually
Answer:
The worth of the investment after 20 years = $40,995.5
Explanation:
The equal annual deposit can be worked out using the future value of an ordinary annuity formula.
The worth of the investment after 20 years can be worked out using the future value of an ordinary annuity.
An an annuity is a series of equal cash flows receivable or payable for certain number years.
Future Value of an ordinary annuity (FVOA). The represents the total sum of that would accrue where a series of annual cash flow (each occurring at the end of the year) is compounded at a particular rate. It can be determined as:
FV= A × ( (1+r)^n - 1)/r).
FV- Future value
A- annual cash flow
R- rate of interest
n-number of years
FV - ?
A- 100
r- 7%
n- 20
FV = 1,000× (1.07^20 - 1)/0.07 = 40,995.5
The worth of the investment after 20 years = $40,995.5
High levels of inventory hide problems within a production system. Some of the problems that high inventory hide are quality problems, process downtime, scrap, and late deliveries. Group of answer choices
Answer: True
Explanation:
It should be noted that having an excess inventory can result into degradation and poor quality goods. This is because there are usually low inventory turnovers when there are high levels of inventory.
Therefore, the option that some of the problems that high inventory hide are quality problems, process downtime, scrap, and late deliveries is true.
The strategy that a firm chooses dictates such structural elements as the division of tasks, the need for integration of activities, and authority relationships within the organization. This implies that
Answer:
Structure follows strategy.
Explanation:
It is correct to say that the organizational structure follows strategy, that is, the organizational structure must be fully planned and developed according to what supports the tactical and operational action plans that will help the company to achieve its objectives and goals foreseen in the company's planning. strategy.
It is essential that the company has a physical, communication and decision-making structure in line with its strategy. Because an organization is a set of integrated systems with a common goal, therefore each element of a company must be aligned and integrated so that its needs are met and it is possible to achieve efficiency, financial advantages and a good competitive position in the market.