Answer:
C. 12
Explanation:
As the expected number of new claims filed per day is 2.4 and the office is open 5 days per week, to be able to find the expected number of new claims filed per week, you have to multiply the expected number of claims per day for the number of days that the office is open in a week:
Expected number of new claims filed per week= 2.4*5= 12
According to this, the answer is that the expected number of new claims filed per week at this office is 12.
The expected number of new claims filed per week at this office is option C. 12
Calculation of the expected number of new claimed:Since the expected number of new claims filed per day is 2.4 with a standard deviation of 0.8688.
So per week, there is 5 days
So, here the expected number should be
= 2.4*5
= 12
hence, option c is correct.
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The following information pertains to the Packer Corporation. Calculate the cost of goods sold for the period:
Beginning Raw Materials $30,000
Ending Raw Materials $70,000
Beginning Work in Process Inventory $40,000
Ending Work in Process Inventory $46,000
Beginning Finished Goods Inventory $72,000
Ending Finished Goods Inventory $68,000
Cost of Goods Manufactured for the period $246,000
a. $250,000.
b. $290,000.
c. $242,000.
d. $246,000.
e. $258,000.
Answer:
COGS= $250,000
Explanation:
Giving the following information:
Beginning Finished Goods Inventory $72,000
Ending Finished Goods Inventory $68,000
Cost of Goods Manufactured for the period $246,000
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 72,000 + 246,000 - 68,000
COGS= $250,000
816A company purchased $1,900 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $250 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is:000-12540-18810-397100
Answer:
Dr accounts payable $1,650
Cr merchandise inventory $33
Cr cash $1,617
Explanation:
After having returned goods worth $250 , the balance of goods in good condition not returned is $1,650 ($1,900-$250).
Paying the balance due on July 12 implies that payment was made during the discount period, hence payment would be net of discount.
Discount=$1,650*2%=$33.
The entries to record the payment would a debit of $1,650 in accounts payable while cash is credit with $1,617 while the $33 discount is credited to merchandise inventory
Sunland Corporation’s recent sale to a firm in Mexico produced revenues of 13,520,000 Mexican pesos (MPs). If the firm sold the pesos to its bank and was credited with $1,189,760.00, what was the spot rate at which the pesos were converted?
Answer:
11.3636 Mexican pesos per US dollar
Explanation:
total revenue in Mexican pesos = 13,520,000
total US dollars received = 1,189,760
spot rate = 13,520,000 Mexican pesos / 1,189,760 US dollars = 11.3636 Mexican pesos per US dollar
The spot exchange rate is the current price of a currency compared to another currency, e.g. if you have US$1,000, you could purchase 11,363.6 Mexican pesos.
Until recently, many developing countries:______.
a. sealed themselves off from foreign investment.
b. were quite open to foreign investment.
c. encouraged foreign portfolio investment but discouraged foreign direct investment.
d. encouraged foreign direct investment but discouraged foreign portfolio investment.
Answer:
a. sealed themselves off from foreign investment.
Explanation:
Traditionally it was believed that foreign direct investment means giving up the country's sovereignty to the foreign nation, on the other hand, the current people see it as a gift to the economy of a country. It becomes a known fact today that the world's economy so closely intertwined, that developing countries have no choice but to accept foreign direct investment. Opening up the domestic markets results in benefits for several nations because they might not have the resources to start profitable operations in these sectors.
New Vision Company completed its income statement and balance sheet and provided the following information:
Service Revenue $66,000
Expenses:
Salaries and Wages $42,000
Depreciation 7,300
Utilities 6,000
Office 1,700 57,000
Net Income $9,000
Decrease in Accounts Receivable $12,000
Paid Cash for Equipment 5,000
Increase in Salaries and Wages Payable 9,000
Decrease in Accounts Payable 4,250
Required:
1. Present the operating activities section of the statement of cash flows for New Vision Company using the indirect method
2 Of the potential causes of differences between cash flow from operations and net income, which are the most important to financial analysts?
Answer:
1.$33,050
2.Changes that occured in the management of a company or organisation operating activities as well as those that occured in revenue and expense recognition .
Explanation:
New Vision Company operating activities section of the statement of cash flows
(INDIRECT METHOD)
Cash flow from operating activity :
Net Income 9,000
Adjustment to reconcile net income to cash provided by operating activities:
Depreciation 7300
Change in current assets and current liabilities:
Decrease in account receivable 12,000
Increase in salaries payable 9,000
Decrease in account payable (4,250)
(12,000+9,000-4,250) 16,750
Cash flow from operating activity (9,000+7,300+16,750) 33,050
2.Changes that occured in the management of a company or organisation operating activities as well as those that occured in revenue and expense recognition .
identify and discuss five ways that companies can work more closely to achieve efficient management of procurement system in Ghana
Answer: More people can come to work and do their job, but also management can work together, if they come together then they can sale more things and both of their business can go up.
Explanation: I say this because, not all companies work together because their always trying to go against each other and instead of helping one an other be great together.
Richard Palm is the accounting clerk of Olive Limited. He uses the source documents such as purchase orders, sales invoices, and suppliers’ invoices to prepare journal vouchers for general ledger entries. Each day he posts the journal vouchers to the general ledger and the related subsidiary ledgers. At the end of each month, he reconciles the subsidiary accounts to their control accounts in the general ledger to ensure they balance. Discuss the internal control weaknesses and risks associated with the above process.
Answer:
Segregation of duties
Lack of computerized system
Explanation:
One obvious internal control weakness in the scenario given is segregation of duties. This is defined as the breaking down of a critical line of task into different stages with different individuals handling different stages of the task.
The aim is to prevent error and fraud as the action performed by an individual is subjected to review by another person and as such makes it impossible for an individual to cover up a fraudulent act except there is collision with others .
A computerized system which is the use of accounting software can also be used to integrate the function to increase the accuracy and speed of completion
The risks involved are
Collision with suppliers for a fraudulent acts is made possible through thisIn case of any errors, it can not be easily detectedWhich statement best describes the trait of being tactful? A. ability to be humble in every situation B. ability to remain stress free C. ability to deal with others, especially in difficult situations D. ability to comply with given instructions E. ability to arrive at work on time
Answer:
C) Tactful means to be sensitive, thoughtful, and just constantly do the right thing each time. Thus, if you are able to deal with others properly, especially in complex and difficult situations, it shows that you are thoughtful of others feelings and do the right thing.
The correct option is C.
What is a tactful personality?
Tact is the ability, to tell the truth, and to consider other people's feelings and reactions. It allows you to give difficult feedback, communicate sensitive information, and say the right thing to preserve relationships.
What is tactful assertiveness?Being tactful means acting with sensitivity and respect. While tact requires a certain amount of thoughtfulness, it doesn't come at the expense of assertiveness. Sometimes assertiveness is incorrectly thought to be the same as aggressiveness.
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On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system and the gross method of accounting for sales. Babson pays the invoice on March 17, and takes the appropriate discount. The journal entry that Klein makes on March 17 is:
Answer:
Dr cash $7,644
Dr sales discount $156
Cr accounts receivable $7,800
Explanation:
The cash received is less of a discount of 2% since payment in respect of the sale was received within the discount period.
Cash received=$7,800-($7800*2%)=$ 7,644.00
Discount =$7800-$ 7,644=$156
The accounts receivable would be credited with $7,800 while cash and sales discount would be debited with $7,644 and $156 respectively
features of a cover note
Answer:
It will be:
a) Address and date
b) salutation
c) Body of letter.
d) Conclusion.
Explanation:
The first one is address.
The second one is one's greetings.
The third one is: one's purpose of writing the letter.
The last is the rounding up of the letter.
Based on this case study, what issues with China-based suppliers require Numi’s managers to use influence and persuasion tactics? 4marks- 150 words How does Numi get suppliers to comply with its policies? 6 marks - 250 words
Answer and Explanation:
The key issues with either the distributor region of China being spiritual and societal differences. The difference comes with both the wages as well as, consequently, with both the market value including its provisions requiring Numi to also be adversely affected.Numi has always been making its providers adapt towards its policy initiatives by building intentional, significant linkage with agricultural partner organizations verify the accuracy and reliability including its product, truthful treatment of workers, strengthened operating or housing environment as well as, conclude, improvement in the quality of life besides parents and the community. Group members explore the country to visit our agricultural relationships many magnitudes a year.Numi intends to also include 3rd parties credentials throughout the entire line with Numi Organic Tea products. Numi deals in contact with some of its suppliers which helps everyone to locate the best employees and assists them with shared resources only whether they can adapt to such operations.So that the above seems to be the right answer.
Dome Metals has credit sales of $522,000 yearly with credit terms of net 30 days, which is also the average collection period. Assume the firm adopts new credit terms of 2/10, net 30 and all customers pay on the last day of the discount period. Any reduction in accounts receivable will be used to reduce the firm's bank loan which costs 8 percent. The new credit terms will increase sales by 10% because the 2% discount will make the firm's price competitive. a. If Dome earns 25 percent on sales before discounts, what will be the net change in income if the new credit terms are adopted? (Use a 360-day year.)
Answer:
The net change in income if the new credit terms are adopted would be of $ 3,770
Explanation:
In order to calculate the net change in income if the new credit terms are adopted we would have to make first the following calculations:
New sales after new credit terms = ($522,000*110%)
New sales after new credit terms = $ 574,200
Increase in profit from newsales = (Profit % * New sales)
Increase in profit from newsales = (25%*($574,200-$522.000))
Increase in profit from newsales = $ 13,050
Average accounts receivable balance without discount = (Average collection period*Average daily sales)
Average accounts receivable balance without discount = (30*($522,000/360))
Average accounts receivable balance without discount = $ 43,500
Average accounts receivable balance with discount = (Due in days with discount*Average daily sales)
Average accounts receivable balance with discount = (10*($574,200/360)) Average accounts receivable balance with discount = $ 15,950/.
Reduction in accounts Receivable = ($43,500-$15,950)
Reduction in accounts Receivable = $ 27,550
Interest savings is = (Reduction in accounts receivable*firm's bank loan cost)
Interest savings is = ($27,550*8%)
Interest savings is = $ 2,204
Cost of discount = (Discount rate * Sales) = (2%*$574.200) = $ 11,484/.
Therefore, Net Gain/(Loss) is = (Increase in Profit+Interest savings-Cost of discount)
Net Gain/(Loss) is = ($13,050+$2,204-$11,484)
Net Gain/(Loss) is = $ 3,770
The net change in income if the new credit terms are adopted would be of $ 3,770
Assume the following information for Teal Mountain Corp.
Accounts receivable (beginning balance) $143,000
Allowance for doubtful accounts (beginning balance) 11,340
Net credit sales 930,000 Collections 912,000
Write-offs of accounts receivable 6,400
Collections of accounts previously written off 2,200
Uncollectible accounts are expected to be 6% of the ending balance in accounts receivable.
1. Prepare the entries to record sales and collections during the period.
2. Prepare the entries to record the recovery of the uncollectible account during the period.
3. Determine the ending balance in Accounts Receivable and the unadjusted balance in Allowance for Doubtful Account.
4. Prepare the entry to record bad debt expense for the period.
5. Determine the ending (adjusted) balance in Allowance for Doubtful Accounts.
Answer:
Teal Mountain Corp.
1. Entries to record sales and collections during the period:
Debit Accounts Receivable $930,000
Credit Sales Revenue $930,000
To record credit sales.
Debit Cash Account $912,000
Credit Accounts Receivable $912,000
To record cash collections.
2. Entries to record recovery of the uncollectible account:
Debit Cash Account $2,200
Credit Allowance for doubtful accounts $2,200
To record uncollectible previously written off
3. Ending balance in Accounts Receivable and unadjusted balance in Allowance for Doubtful Account:
Accounts Receivable
Beginning balance $143,000
Credit Sales 930,000
Collections -912,000
Write-offs - 6,400
Balance $154,600
Allowance for Doubtful Accounts (Unadjusted)
Beginning balance $11,340
Uncollectible written off -6,400
Uncollectible collections 2,200
Balance (unadjusted) $2,740
4. Entry to record bad debt expense for the period:
Debit Bad Expense $6,536
Credit Allowance for Doubtful Accounts $6,536
To bring the balance to $9,276.
5. Adjusted ending balance in Allowance for Doubtful Accounts = $9,276
Explanation:
6% of accounts receivable = $154,600 x 6% = $9,276
Ataxia Fitness center is considering an investment in some additional weight training equipment. The equipment has an estimated useful life of 10 years with no salvage value at the end of 10 years. Ataxia's internal rate of return is 14%. It's discount rate is also 14%. The payback period on this equipment is closest to:___________.
a. 2.70 years
b. 1.90 years
c. 5.22 years
d. 3.70 years
Answer:
6.71 years
Explanation:
Solution
Recall that,
Ataxia Fitness center has an equipment with a useful life estimated to be = 10 years
No Savage value at the end of = 10 years
Internal rate of return of equipment = 8%
rate of discount = 8%
Now,
From the Exhibit 13B-1 and Exhibit 13B-2,
Let the initial outlay be $50000
The present value of inflows at irr be =present value of outflows.
let value of present annuity=Annuity[1-(1+interest rate)^-time period]/rate
Thus,
Be entering the values we get
Annuity[1-(1.08)^-10]/0.08 =50000
5000 =Annuity[1-(1.08)^-10]/0.08
50000=Annuity*6.710081399
Annuity=50000/6.710081399 = =$7451.474435
So, the period of payback =initial outlay/annual cash flows
=(50000/7451.474435)
=6.71 years
Therefore the pay back period on this equipment is = 6.71 years
When domestic firms enter other countries, they must typically deal with a number of issues related to their advertising. These include all of the following except: language barriers limited media available high-priced media markets lack of accurate media information
Answer: limited media available
Explanation:
When domestic firms enter into another country, they typically deal with a number of issues that are related to their advertising. One of the issue is language barrier. From example, if a firm that come from an English speaking country moves to another country like France which is French speaking, this can bring about a language barrier due to the language difference.
Other challenges are high-priced media markets and the lack of accurate media information. Dur to th fact that they're just moving into a different country, they may be charged higher than the normal price and may not have the accurate media information that are needed.
Therefore, limited media available is the right option because this is not a challenge. Media availability is usually available for everyone.
During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following transactions.
July 1 Began business by making a deposit in a company bank account of $60,000, in exchange for 6,000 shares of $10 par value common stock.
July 3 Paid the current month's rent, $3,500 July 5 Paid the premium on a 1-year insurance policy, $4,200
July 7 Purchased supplies on account from Little Company, $1,000.
July 10 Paid employee salaries, $3,500
July 14 Purchased equipment from Lake Company, $10,000. Paid $2,500 down and the balance was placed on account. Payments will be $500.00 per month until the equipment is paid. The first payment is due 8/1. Note: Use accounts payable for the balance due.
July 15 Received cash for preparing tax returns for the first half of July, $8,000
July 19 Made payment on account to Lake Company, $500.
July 31 Received cash for preparing tax returns for the last half of July, $9,000
July 31 Declared and paid cash dividends of $600.
Required:
Prepare the financial statements for the Quick Tax Corporation as of July 31
Answer:
Trial Income Statement:
Service revenue $17,000
Rent expense ($3,500)
Insurance expense ($350)
Wages expense ($10,500)
Net income $2,650
*We need to adjust other expenses like supplies or utilities. I assumed the salaries paid were for a 10 days period since no one pays salaries in advance.
Trial Balance Sheet
Assets:
Cash $62,200
Supplies $1,000
Prepaid insurance $3,850
Equipment $10,000
Total Assets $77,050
Liabilities and Equity:
Accounts payable $8,000
Wages payable $7,000
Common Stock $60,000
Retained earnings $2,050
Total Liabilities and Equity $77,050
Explanation:
July 1
Dr Cash 60,000
Cr Common stock 60,000 (6,000 stocks $10 par value)
July 3
Rent expense 3,500
Cr Cash 3,500
July 5
Dr Prepaid insurance 4,200
Cr Cash 4,200
Adjusting entry July 31
Dr Insurance expense 350
Cr Prepaid insurance 350
July 7
Dr Supplies 1,000
Cr Accounts payable 1,000
July 10
Dr Wages expense 3,500
Cr Cash 3,500
Adjusting entry July 31
Dr Wages expense 7,000 ($3,500 x 2 10 day periods)
Cr Wages payable 7,000
July 14
Dr Equipment 10,000
Cr Cash 2,500
Cr Accounts payable 7,500
July 15
Dr Cash 8,000
Cr Service revenue 8,000
July 19
Dr Accounts payable 500
Cr Cash 500
July 31
Dr Cash 9,000
Cr Service revenue 9,000
Dr Retained earnings 600
Cr Dividends payable 600
Dr Dividends payable 600
Cr Cash 600
Assume an asset cost $72,800 and has a current book value of $42,760. The asset is sold today for $32,900 cash. The firm's tax rate is 21 percent. As a result of this sale, the firm's net cash flow: 1. will increase by more than $32,900. 2. will increase by less than $32,900. 3. will increase by exactly $32,900 4. will decrease by the difference between the $42,760 and the $32,900.
Answer:
As a result of this sale, the firm's net cash flow will increase by more than $32,900. The right option is 1.
Explanation:
According to the given we have the following:
asset cost= $72,800
current book value=$42,760
sale=$32,900
Therefore, loss=current book value-sale
loss=$42,760-$32,900
loss=$9,860
tax saving on loss=$9,860*21%=$2,070.60
Therefore, net cash flow=$32,900+$2,070.60
net cash flow=$34,970.60
As a result of this sale, the firm's net cash flow will increase by more than $32,900
On January 1, 2020, Crane Corporation issued $660,000, 6%, 10-year bonds at face value. Interest is payable annually on January 1. Crane Corporation has a calendar year end.Prepare all entries related to the bond issue for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)2020Account Titles and ExplanationDebitCreditenter an account title for the journal entry on January 1enter a debit amount enter a credit amount enter an account title for the journal entry on January 1enter a debit amount enter a credit amount enter an account title for the journal entry on December 31enter a debit amount enter a credit amount enter an account title for the journal entry on December 31enter a debit amount enter a credit amount
Answer:
Dr cash $660,000
Cr bonds payable $660,000
Dr interest expense $ 39,600.00
Cr interest payable $39,600.00
Explanation:
The issue of the bonds at face value implies that cash proceeds equal the face value of $660,000 which is then debited to cash account and credited to bonds payable.
The interest due on the bonds on 31st December payable on 1st January 2021 =face value*coupon rate
face value is $660,000
coupon rate is 6%
interest=$660,000*6%=$39,600.00
Tyare Corporation had the following inventory balances at the beginning and end of May: May 1 May 30 Raw materials $ 35,000 $ 49,000 Finished Goods $ 84,500 $ 85,000 Work in Process $ 23,000 $ 17,963 During May, $68,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 490 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $8,000 of direct materials cost. The Corporation incurred $44,850 of actual manufacturing overhead cost during the month and applied $45,300 in manufacturing overhead cost. The actual direct labor-hours worked during May totaled:
$7,700
Explanation:
$18,500 - $6,000 - $4,800 = 7,700
As a human resources manager three selection measures you could use to select your targeted employees in 5star international resort.
Answer:
Selection measures simply refer to the yardstick that HR Managers or businesses use to make hiring decisions.
Three litmus tests which the successful candidate must pass are:
1. Culture Fit: An International Resort business with a 5-star rating must have gotten there with the right values, and culture. When a candidates attitudes, beliefs and values mirror that of the organisation, they are said to be culture fit.
2. Job Fit: It is the job of the Human Resources manager to ensure that the candidate can do the job. He or she can achieve this by using various recruitment, selection and interview. For a 5 Start International Resort, for instance, the employees must be very people-centric, courteous and display high levels of social and emotional intelligence.
3. Background Checks: Having satisfied the first two criteria, the prospective employees must have strong references and background checks which reveal:
consistency in the information provided during the application process; and good standing with their current and or previous employer/colleagues.
Cheers!
Part X requires machining on a milling machine (operations A and B are required).
Find the number of machines required to produce 3000 parts per week. Assume the company will be operating five days per week, 18 hours per day. The following infor- mation is known:
Operation Standard Time Efficiency Reliability Scrap
A 3 min 95% 95% 2%
B 5 min 95% 90% 5%
Note: The milling machine requires tool changes and preventive maintenance after every lot of 500 parts. These changes require 30 minutes.
Answer:atleast 5 machines
Explanation:
Quantity required (Q) = 3000
Maintainace due = 500 parts
3000 / 500 = 5 = 6 Maintainace
Repair time = 6 × 30 minutes = 300 minutes = 5 hours.
operation time = 5 × 18 × 60 = 5400 minutes
Total operation time = Total operation hours - repair time
5400 - 300 = 5100 hours
For A:
(Standard time × Q) / (reliability × time efficiency × scrap × total working hours)
(3 × 3000) / (. 95×.95×5100)
9000/4602.75 = 1.96
For B:
(Standard time × Q) / (reliability × time efficiency × scrap × total working hours)
(5 × 3000) / (.95×.9×5100)
15000/4360.5 = 3.44
(1.96 + 3.44) = 166.56
=5. 4
A recent medical study reports new benefits of cycling. Simultaneously, the price of the parts needed to make bikes falls. The demand curve would _________ and the supply curve would__________
Answer:
The demand curve would shift to the right and the supply curve would shift to the right
Explanation:
There will be a right shift in demand curve when there is an increase in demand, while there will be a right shift in supy curve when there is an increase in number of sellers or suppliers.
Here, a new medical study reports the benefits of cycling, and the price of parts needed to make bikes fall simultaneously, it is believed that the demand for bikes would increase.
Also, considering the fact that parts needed to produce bikes fall, there would likely be more producers of bike and this will also increase the supply of bikes.
Therefore, since there would be an increase in demand and supply of bikes, the demand curve for bikes would shift to the right and the supply curve would also shift to the right.
A small fast-food restaurant is automating its burger production. The owner needs to decide whether to rent a machine that can produce up to 2,000 hamburgers per week at a marginal cost of $1 per burger (excluding the cost of ingredients) or another machine that can also make up to 2,000 burgers per week but at a marginal cost of $0.50 per burger (again, excluding the cost of ingredients).
The weekly lease for the machine with the higher marginal cost is $2,300. The weekly lease for the machine with the lower marginal cost is $2,760. The restaurant can sell burgers for $10 per burger, and the cost of ingredients for each burger is $2.
Suppose the restaurant leases the machine with the higher marginal cost for the first week and sells 2,000 burgers that week. The restaurant owner earned profits of $ ___________ in the first week.
Suppose now the restaurant leases the machine with the lower marginal cost for the second week and again sells 2,000 burgers that week. The restaurant owner earned profits of $ _________ in the second week.
Answer:
$11,700 and $12,240
Explanation:
According to the scenario, computation of the given data are as follow:-
Total Revenue = No. of Sale Units × Selling Price Per Unit
= 2,000 × $10
= $20,000
In case if the restaurant lease the machine with the higher marginal cost, restaurant owner earned profits
= Total Revenue - Total Cost
where,
Total cost is is Fixed cost + variable cost
Variable Cost = No. of Sale Units × (Marginal Cost + Cost of Ingredients for Each Burger)
= 2,000 × ($1 + $2)
= $6,000
Total Cost = Fixed Cost + Total Variable Cost
= $2,300 + $6,000
= $8,300
And, the total revenue is $20,000
So, the profit earned is
= $20,000 - $8,300
= $11,700
In case if the restaurant lease the machine with the lower marginal cost, restaurant owner earned profits
= Total Revenue - Total Cost
where,
Total cost is Fixed cost + variable cost
Variable Cost = No. of Sale Units × (Marginal Cost + Cost of Ingredients for Each Burger)
= 2,000 × ($0.50 + $2)
= $5,000
Total Cost = Fixed Cost + Total Variable Cost
= $2,760 + $5,000
= $7,760
And, the total revenue is $20,000
So, the earned profit is
= $20,000 - $7,760
= $12,240
A small company that builds wooden fences can currently construct five fences per month for a total revenue of $5,000 and a total cost of $750. One month, the firm owner decides to invest in more equipment. This extra equipment allows the company to build a sixth fence per month, but raises total cost to $825. Assuming the firm charges the same price for the sixth fence as it did for each of the other five, what is the change in total profit that results from increasing output?
Answer:
$925
Explanation:
Initial number of fences = 5
Initial total revenue = $5,000
Initial total cost = $750
Initial total profit = Initial total revenue - Initial total cost = $5,000 - $750 = $4,250
Since the firm charges the same price for the sixth fence as it did for each of the other five, we have:
Price per unit = Initial total revenue / Initial total cost = $5,000 / 5 = $1,000
New number of fences = 6
New total revenue = Price per unit * New number of fences = $1,000 * 6= $6,000
New total profit = $6,000 - $825 = $5,175
Change in total profit = New total profit - Initial total profit = $5,175 - $4,250 = $925.
Therefore, the change in total profit that results from increasing output is $925.
Exercise 3-2 (Static) Balance sheet classification [LO3-2, 3-3] The following are the typical classifications used in a balance sheet: a. Current assets f. Current liabilities b. Investments g. Long-term liabilities c. Property, plant, and equipment h. Paid-in capital d. Intangible assets i. Retained earnings e. Other assets Required: For each of the following balance sheet items, use the letters above to indicate the appropriate classification category. (If the item is a contra account, select the appropriate letter with a minus sign.)
Answer:
1. Accrued interest payable: f. Current liabilities
2. Franchise: e. Other assets (intangible asset)
3. Accumulated depreciation: c. Property, plant, and equipment (contra asset account)
4. Prepaid insurance, for 2017: a. Current assets
5. Bonds payable, due in 10 years: g. Long-term liabilities
6. Current maturities of long-term debt: f. Current liabilities
7. Note payable, due in three months: f. Current liabilities
8. Long-term receivables: b. Investments
9. Restricted cash, will be used to retire bonds in 10 years: b. Investments
10. Supplies: a. Current assets
11. Machinery: c. Property, plant, and equipment
12. Land, in use: c. Property, plant, and equipment
13. Deferred revenue: f. Current liabilities
14. Copyrights: e. Other assets (intangible asset)
15. Preferred stock : h. Paid-in capital
16. Land, held for speculation: b. Investments
17. Cash equivalents: a. Current assets
18. Wages payable: f. Current liabilities
If you advertise and your rival advertises, you each will earn $3 million in profits. If neither of you advertises, you will each earn $7 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $10 million and the non-advertising firm will earn $1 million. If you and your rival plan to be in business for 15 years, then the Nash equilibrium is for:
Answer:
Each company should advertise
Explanation:
Nash equilibrium a concept in game theory which describes the optimal strategy for a party in a non co-operative game. It is the best strategy for the player regardless of what the other player is playing.
In this question, if both parties advertise, they earn $3 million .
If one of you advertises and the other does not, the firm that advertises will earn $10 million and the non-advertising firm will earn $1 million
If neither of you advertises, you will each earn $7 million in profits.
The profits from advertising can either be 3 million or 10 million while the profit from not advertising can either be 7 million or 1 million.
We can see the gains from advertising is more than the gain of not advertising. So the bash equilibrium is to advertise.
Please check the attached image for a table showing this game
I hope my answer helps you
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $340,000. During 2021, Halifax sold merchandise on account for $11,600,000. Halifax's merchandise costs is 75% of merchandise selling price. Also during the year, customers returned $575,000 in sales for credit, with $319,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year.
Required:
a. Prepare the entry to record the merchandise returns and the year-end adjusting entry for estimated returns.
b. What is the amount of the year-end allowance for sales returns after the adjusting entry is recorded?
Answer:
1.
2021
Dr sales return $575,000
Cr Refund liability $575,000
2021
Dr Allowance for sales return $340,000
Cr Sales return $340,000
2021
Dr sales returns 345,000
Cr Allowance for sales returns 345,00
2021
Dr Inventory estimated return 258,750
Cr Cost of goods sold 258,750
2. $345,000
Explanation:
Halifax Manufacturing
1.
2021
Dr sales return $575,000
Cr Refund liability $575,000
2021
Dr Allowance for sales return $340,000
Cr Sales return $340,000
2021
Dr sales returns 345,000
($11,600,000×5%)-235,000
580,000-235,000
Cr Allowance for sales returns 345,00
2021
Dr Inventory estimated return 258,750
(345,000×75%)
Cr Cost of goods sold 258,750
2.
Beginning balance $340,000
Less adjustment for last year made ($340,000)
Add current year created $580,000
($11,600,000×5%)
Less Adjustment for current year (235,000)
Ending balance in year end allowance $345,000
(575,000-340,000)
=235,000
Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $36,000 and $24,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $45,000.a. What is the amount of a gain or loss on realization?$b. How should the gain or loss be divided between Hewitt and Patel?Hewitt Patel c. How should the cash be divided between Hewitt and Patel? If an amount is zero, enter "0".
Answer:
A. ($15000) Loss
B. Hewitt= $7500, Patel= $7500
C. Hewitt= $28500, Patel= $16500
Explanation:
Workings:
A. Gain/loss = Cash balance-(Hewitt Capital+ Patel Capital)
Gain/loss = $45000-($36000+$24000)
Loss = ($15000)
B.
Hewitt = ($15000*50%) = $7500
Patel = ($15000*50%) = $7500
C. Hewitt Patel
Remaining cash $36000-$7500 $24000-$7500
$28500 $16500
An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called: Multiple Choice Continuous improvement. Customer orientation. Just-in-time manufacturing. Theory of constraints. Total quality management.
Answer:
Just-in-time manufacturing.
Explanation:
A Just in Time (JIT) is a manufacturing control system in which no materials are purchased and no products are manufactured until they are needed.
A primary goal of the JIT production system is to eliminate inventories at every stage of production from raw materials to finished goods.
Raw materials are purchased only when need at some stage of production. Finished Goods are manufactured only as needed to fill customers orders.
Tremendous cost savings have been realized by many companies that have adopted the JIT approach.
Walther owns a home in flood-prone Paradise Basin. If there is no flood the home and land together will be worth $2100. If there is a flood, Walther's home will be destroyed but the land will still be worth $800. There is 1/10 of chance that Walther's house will be destroyed by the flood. Walther can buy flood insurance for $0.2 per dollar of coverage. Let CF and CNF be the value of respective values of his land in the case of a flood or no flood. Suppose the equation CNF = a - CF/b represents the possible values of CNF and CF that Walther can achieve by buying some amount of insurance. What is the value a +b?
Answer:
a + b = 1,900 - 4 = 1,896
Explanation:
i = amount insured in $
CNF = $2,100 - $0.20i
CF = $800 - $0.20i + i = $800 + $0.80i
CNF = a - CF/b
$2,100 - $0.20i = a - ($800 + $0.80i)/b
$2,100 - $0.20i = a - $800/b - $0.80i/b
now we equate:
-0.2i = 0.8i/b
b = 0.8/-0.2 = -4
2,100 = a - 800/b
2,100 = a - 800/-4
2,100 = a + 200
a = 1,900
a + b = 1,900 - 4 = 1,896
