Answer:
The Cystoscopy Department's total expenses are $380,500
Explanation:
According to the given data we have the following:
For Cystoscopy Department,
(A) The Direct Expenses are $350,000
(B) Lab Tests are $500
We should need to calculate the allocation of Utilities for 1500 square feet and then add all these 3 costs.
Total Square feet is 10,000 and Total Expenses for Utilities is $200,000
So per Square foot expense for Utilities = $200,000 / 10,000 = 20 per square foot
(C) So, for Utilities having 1,500 square foot space, the cost allocated = 1,500 X 20 = $30,000
Adding all (A) + (B) + (C), the total expenses for Cystoscopy Department are
$350,000 + $500 + $30,000 = $380,500
The Cystoscopy Department's total expenses are $380,500
[Book Sale] Yasmeen offered to sell Dylan a used business law book for $50. She told him that he could use it in his upcoming business law class the next semester. However, there was a problem with the book; it was several editions old. Dylan was not aware of that fact, and neither was Yasmeen. When Dylan took the book to class and realized the problem, he went back to Yasmeen requesting a refund. Yasmeen refused to return his money. She claimed that she did not commit fraud because subjectively she thought that the book was correct, and that a binding contract existed. The book, however, is outdated and cannot be appropriately used in the class. Which analysis of the effect of the discovery that Dylan has a book that is not appropriate for the class would be correct?
a. He was the offeror.
b. He was the offeree.
c. He was the offeree and the assertee.
d. He was the assentee.
e. He was the sssentor
Answer:
B. he was the offeree
Explanation:
Yasmeen offered to sell Dylan the book, this makes her the Offeror. the agreement consists of an offer made by one party which is Yasmeen to enter int a term of contract and also acceptance of the terms of the offer by the other party Dylan. dylan is the offeree.
the 50 dollar to be provided by dylan and the book to be provide by Yasmeen is known as consideration. Since the parties have a mutual misunderstanding, they did not come to a meeting of the minds hence no contract.
Audreys free-throw percentage so far this season is .875. If she makes only 13 of her next 20 free throws, her percentage will drop to .860. How many free throws has Audrey made this season?
Answer:
245 free throws
Explanation:
x will be number of times Audreys makes a shot, and let y be total number of the shots.
x/y = .875
(x+13)/(y+20) = .860
Let solve for x in equation 1
x = .875y
We will plug the for x in the equation 2
(.875y+13)/(y+20)
= .860
.875y + 13
= .860y + 17.2
.015y = 4.2
y = 280
Audreys has taken 280 shots.
We will Plug that back into the equation 1 in order to find out how many Audreys made.
x/280 = .875
x = 245
Hence :
Audreys made 245 free throws
"Angela borrowed $5,000 for five years at an APR of 6.2 percent. The loan calls for equal, annual principal payments. Interest will also be paid annually. What will be her loan payment in Year 2?"
Answer:
Find below multiple choices
A: $1,248
B: $1,310
C: $1,016
D: $1,274
E: $1,157
The correct option is A,$1,248
Explanation:
The principal payment each year is the total loan amount divided 5 i.e $5,000/5=$1,000
In year one interest=$5,000*6.2%=$310
Total principal and interest in year one=$310+$1,000=$1,310
principal outstanding in year two=$5,000-$1,000=$4,000
year two interest payment=$4,000*6.2%=$248
Year principal interest and principal=$1,000+$248=$1,248
The total repayment in year 2 is $1,248,which is option A
Bakker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $100,000 and 2,500 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $102,000 and actual direct labor-hours were 2,400. The predetermined overhead rate was:
Answer:
$40
Explanation:
The formula and the computation of the predetermined overhead rate is shown below:
Predetermined overhead rate = Estimated overhead ÷ Estimated direct labor hours
= $100,000 ÷ 2,500 direct labor hours
= $40
By dividing the estimated overhead from the estimated direct labor hours we can get the predetermined overhead rate and the same is to be considered
It recognized only estimated values and activity drivers
Preparing budgeted income statement.
Gyro Company has the following totals from its operating budgets:
Selling and administrative expenses budget $244,500
Cost of goods sold budget 727,300
Sales budget 1,222,700
Prepare a budgeted income statement for the year ended December 31, 2011, assuming that income from operations is taxed at a rate of 30%.
Answer:
Budgeted net income is $175,630
Explanation:
The budgeted income statement for the year ended 31 December , 2 011 is presented below , starting with the sales budget amount while budgeted costs of good sold and selling and administrative expenses are deducted from sales,
Budgeted sales $1,222,700
costs of goods sold ($727,300)
operating income $495,400
Selling and administrative expenses ($244,500)
Profit before tax $250,900
Taxes($250,900*30%) ($75,270)
net income $175,630
Using the following information:
a. The bank statement balance is $4,709.
b. The cash account balance is $5,162.
c. Outstanding checks amounted to $624.
d. Deposits in transit are $1,035.
e. The bank service charge is $33.
f. A check for $60 for supplies was recorded as $51 in the ledger.
Required:
Prepare bank reconciliation for Miller Co. for August 31.
Answer and Explanation:
The preparation of the bank reconciliation statement for August 31 is presented below:
Miller Co.
Bank reconciliation statement
August 31
Particulars Amount Particulars Amount
Bank cash balance $4,709 Company cash balance $5,162
Add: Less:
Deposits in transit $1,035 Bank service charges -$33
Less: Outstanding Error in recording -$9
Check -$624
Bank balance Company balance
After reconciliation $5,120 After reconciliation $5,120
Allied made its first and only purchase of inventory for the period on
May 3 for 1,000 units at a price of $10 cash per unit (for a total cost of $10,000).
5 Allied sold 500 of the units in inventory for $14 per unit (invoice total: $7,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $5,000.
7 Macy returns 50 units because they did not fit the customer’s needs (invoice amount: $700). Allied restores the units, which cost $500, to its inventory.
8 Macy discovers that 50 units are scuffed but are still of use and, therefore, keeps the units. Allied sends Macy a credit memorandum for $300 toward the original invoice amount to compensate for the
damage.
15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount.
Required:
Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. (Allied estimates returns using an adjusting entry at each year-end.)
Answer:
Perpetual Inventory System
Gross Method
Date Particulars Debit Credit
3 May Merchandise Inventory 10,000
Cash 10,000
May 3 for 1,000 units at a price of $10 cash per unit (for a total cost of $10,000).
5 May Accounts Receivable Macy 7000
Sales 7000
May 5 :Allied sold 500 of the units in inventory for $14 per unit (invoice total: $7,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $5,000.
5 May Cost of Goods Sold 5000
Merchandise Inventory 5000
May 7: Sales Returns 700
Accounts Receivable Macy 700
May 7: Macy returns 50 units because they did not fit the customer’s needs (invoice amount: $700). Allied restores the units, which cost $500, to its inventory.
May 7 Merchandise Inventory 500
Cost of Goods Sold 500
May 8 Sales Returns & Allowance 300
Accounts Receivable Macy 300
8 Macy discovers that 50 units are scuffed but are still of use and, therefore, keeps the units. Allied sends Macy a credit memorandum for $300 toward the original invoice amount to compensate for the
damage.
May 15: Cash 6000
Sales Discounts 120
Accounts Receivable Macy 5880
Payment : $ 7000- $ 700 - $ 300= $ 6000
Discount : 2% of 6000= $ 120
May 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount.
The following information is available for Amos Company for the year ended December 31, 2017.
Balance of retained earnings, December 31, 2016, prior to discovery of error, $1,375,000.
Cash dividends declared and paid during 2017, $43,000.
It neglected to record 2015 depreciation expense of $55,500, which is net of $4,500 in tax benefits.
The company earned $126,000 in 2017 net income.
Prepare a 2017 statement of retained earnings for Amos Company. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
$1,402,500
Explanation:
AMOS COMPANY Statement of Retained EarningsFor Year Ended December 31, 2017
Retained earnings, December 31, 2016 $1,375,000
Prior period adjustment:
Depreciation expense error in 2015 (55,500)
Adjusted retained earnings, December 31, 2016 $1,319,500
($1,375,000-55,500)
Add: Net income 126,000
Less:Cash Dividends(43,000)
Retained earnings, December 31, 2017 $1,402,500
Juanita makes $16 an hour at work. She has to take time off work to purchase her skirt, so each hour away from work costs her $16 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. opportunity costs of Time price of a dress total cost (Dollars) (Dollars per dress) (Dollars)Local Department Store 103Across Town 89Neighboring City 63Assume that Juanita takes opportunity costs and the price of the dress into consideration when she shops. Juanita will minimize the cost of the dress if she buys it from the _________ .
Answer:
She buys it from the "Neighboring city". The further explanation is given below.
Explanation:
The cost of opportunity while shopping from Local dept. store:
= [tex](15\times 2+30)\times 16[/tex]
= [tex](30+30)\times 16[/tex]
= [tex]1 \ hour\times 16[/tex]
= [tex]16[/tex]
The cost of opportunity while shopping from across town:
= [tex](30\times 2+30)\times 16[/tex]
= [tex](60+30)\times 16[/tex]
= [tex]1.5 \ hours\times 16[/tex]
= [tex]24[/tex]
The cost of opportunity while shopping from neighboring class:
= [tex](60\times 2+30)\times 16[/tex]
= [tex](120+30)\times 16[/tex]
= [tex]2.5 \ hours\times 16[/tex]
= [tex]40[/tex]
Now,
Store Opp. Cost Price Total cost
Local dept. store 16 103 119
Across town 24 89 109
Neigh. city 40 63 103
Therefore, a Neighboring city would be the right answer.
Santa Klaus Toys just paid a dividend of $3.00 per share. The required return is 11.7 percent and the perpetual dividend growth rate is 3.9 percent. What price should this stock sell for five years from today?
Answer:
P5=48.3860
Explanation:
Santa Klaus Toys
The Price of the stock 5 years from today will be :
P5=D6/(r-g)=
D0*(1+g)^6/(r-g)
Where
D0 =3
g =3.9%
r=11.7%
Hence:
P5=3*(1+3.9%)^6/(11.7%-3.9%)
P5=3*(1+0.039)^6/(0.117-0.039)
P5=3*(1.039)^6/(0.078)
P5=3.77410/0.078
P5=48.3860
Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on March 30, 2019. No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $42,000 and an estimated useful life of 5 years. Assume half-year convention for tax. Assume half-year convention for tax.
Required:
a. Calculate the amount of depreciation for 2017 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck's estimated useful life.
b. Calculate the amount of depreciation for 2017 using the straight-line depreciation election, using MACRS tables over the minimum number of years with no bonus depreciation or election to expense
c.Calculate the amount of depreciation for 2017, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables
d. Assume no income limit on the expense election. Calculate the amount of depreciation for 2017 including bonus depreciation and the election to expense that Mike can deduct
Answer:
a. Calculate the amount of depreciation for 2017 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck's estimated useful life.
depreciation expense per year = $42,000 / 5 = $8,400
depreciation expense for 2017 = $8,400 x 9/12 = $6,300
b. Calculate the amount of depreciation for 2017 using the straight-line depreciation election, using MACRS tables over the minimum number of years with no bonus depreciation or election to expense
using MACRS table, depreciation expense = $42,000 x (20%/2 due to half year) = $4,200
c. Calculate the amount of depreciation for 2017, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables
= ($42,000 / 2) + $4,200 = $21,000 + $4,200 = $25,200
d. Assume no income limit on the expense election. Calculate the amount of depreciation for 2017 including bonus depreciation and the election to expense that Mike can deduct
$42,000
Relative to Kenya, Japan has relatively higher economies of large-scale production, an abundance of resources, higher labor costs, and more research and development. The Heckscher-Ohlin theory explains Japan’s comparative advantage over Kenya as the result of differences in countries'
a. relative costs of labor
b. economies of large-scale production
c. research and development
d. relative abundance of various resources.
Answer:
a. relative costs of labor
Explanation:
The Heckscher-Ohlin theory explains Japan’s comparative advantage over Kenya as the result of differences in countries' relative costs of labor.
The Heckscher-Ohlin theory of comparative advantage predicts patterns of commerce and production based on the factors that a particular trading region's (country, state etc.) is endowed with or has in plentiful amount. The model is particular about the export of goods requiring factors of production that are plentiful in a particular region.
The four factors of production are land, labor, entrepreneur and capital. Of all the factors compared between Kenya and Japan, their relative labour cost is the only direct factor of production compared between them.
Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course. One small laser gun, called LittleLaser, appears to have a very large potential market. Because of competition, Eckert does not believe that it can charge more than $84 for LittleLaser. At this price, Eckert believes it can sell 119,000 of these laser guns. Eckert will require an investment of $14,875,000 to manufacture, and the company wants an ROI of 16%. Determine the target cost for one LittleLaser.
Answer:
Target cost per unit = $64
Explanation:
Target cost is the cost at which a product must be produced and sold to achieve a desired profit margin
Target cost =(Sales revenue - (ROI × capital) )/ No of units
Target cost =( (84 × 119,000) - (16%× $14,875,000 ) )/ 119,000 guns
Target cost per unit = (9996000 - 2380000) / 119,000 units= $ 64 per unit
Target cost per unit = $64
While hyperinflations are always caused by rapid growth in the money supply, they can be intensified by the actions of households and firms trying to protect themselves from inflation by spending money as soon as they receive it.
a. During a hyperinflation, the velocity of money is likely to:______
b. Use the quantity equation to show how the change in velocity affects the inflation rate
c. Holding the growth rate of real GDP constant, this change in velocity must _________ inflation
The following information is available for Splish Brothers Inc. for the year ended December 31, 2022.
Beginning cash balance $34,800
Accounts payable increase 8,265
Depreciation expense 59,450
Accounts receivable decrease 6,960
Inventory decrease 4,495
Net income 82,940
Cash received for sale of land at book value 150,800
Cash dividends paid 55,100
Income taxes payable decrease 5,655
Cash used to purchase land 117,450
Cash used to redeem bonds 95,700
Cash received from issuing stock 232,000
Required:
Prepare a statement of cash flows using the indirect method.
Answer:
Cash balance at end of the year is $305,805
Explanation:
The statement of cash flow for Splish Brothers Inc is prepared below:
Net income $82,940
depreciation $59,450
accounts payable increase $8,265
accounts receivable decrease $6,960
inventory decrease $4,495
income tax payable decrease ($5,655)
Net cash from operating activities $156,455
Cash dividends paid ($55,100)
Redemption of bonds ($95,700)
Issue of common stock $232,000
Net cash from financing activities $81,200
Cash received for sale of land $150,800
purchase of land ($117,450)
Net cash from investing activities $33,350
Total increase in cash and equivalent $271,005
Cash at the beginning $34,800
Cash at the end of the year $305,805
On January 1, 2018, Westside Sales issued $ 20 comma 000 in bonds for $ 21 comma 800. These are eightminusyear bonds with a stated interest rate of 10% that pay semiannual interest. Westside Sales uses the straightminusline method to amortize the bond premium. After the first interest payment on June 30, 2018, what is the bond carrying amount? (Round your intermediate answers to the nearest dollar.)
Answer:
$21,687.5
Explanation:
Premium on bonds payable = $21,800 - $20,000 = $1,800
Interest payments = 8 years X 2 semiannual interest payments per year = 16 payments
Premium ammortisation = $1,800 / 16 = $112.5
Carrying value of the bond = $21,800 - $112.5 = $21,687.5
A zero coupon bond with a face value of $1,000 is issued with an initial price of $415.50. The bond matures in 10 years. What is the implicit interest, in dollars, for the first year of the bond's life
Answer:
$38.14
Explanation:
The yield to maturity on the bond can be computed using the rate formula in excel as shown below:
=rate(nper,pmt,-pv,fv)
nper is the bond life measured in years which is 10
pmt is the annual coupon payment since the bond zero coupon ,pmt is $0
pv is current price of the bond which is $415.50
fv is the face value of the bond i.e $1000
=rate(10,0,-415.50,1000)=9.18%
implicit interest in dollars for first year=cash proceeds*yield to maturity
cash proceeds which is the same as price of bond is $415.50
implicit interest in dollars=$415.50*9.8%=$38.14
Suppose demand for U.S. products across the world increases. What is the impact on the flow of financial capital as a result of the increase in demand for products, the value of the U.S. dollar, and the foreign money price of the U.S. dollar? Financial capital flow / Value of the U.S. dollar / Price of the U.S. dollar No Change / Appreciate / Increase Inflow / Depreciate / Decrease Inflow / Appreciate / Increase Outflow / Depreciate / Increase Outflow / Appreciate / Decrease
Answer:
Impact on the flow of financial capital:
Financial capital flow / Value of the U.S. dollar / Price of the U.S. dollar:
No Change / Appreciate / Increase
Financial capital flow will not change. Financial capital flow does not refer to the flows for purchase of goods and services, but only for investments.
The value of U.S. dollar will appreciate relative to the increased demand.
The price of the U.S. dollar will increase, given the law of supply and demand.
Explanation:
a) Financial Capital Flow refers to the movement of investment capital, in and out of countries. When money for investment goes from one country to another, it is a capital flow, in-flow for the country receiving and out-flow for the country investing. The term does not include money people and businesses use to purchase each others' goods and services. There is why, in this scenario, there is no recorded change in financial capital flow in the U.S.
b) The value of the U.S. dollar is the total amount of U.S. dollar which a foreign currency can purchase at a particular exchange rate. It is based on the exchange rate, otherwise called the price of the U.S. dollar to another currency.
c) Price of the U.S. dollar is the exchange rate. It shows the value of one U.S. dollar vis-a-vis a foreign currency.
On January 1, 2020, Oriole Company had Accounts Receivable $137,400, Notes Receivable $24,000, and Allowance for Doubtful Accounts $12,200. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2019. Oriole Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred.
Jan. 5 Sold $20,000 of merchandise to Sheldon Company, terms n/15.
20 Accepted Sheldon Company’s $20,000, 3-month, 8% note for balance due.
Feb. 18 Sold $9,000 of merchandise to Patwary Company and accepted Patwary’s $9,000, 6-month, 9% note for the amount due.
Apr. 20 Collected Sheldon Company note in full.
30 Received payment in full from Willingham Company on the amount due.
May 25 Accepted Potter Inc.’s $5,200, 3-month, 7% note in settlement of a past-due balance on account.
Aug. 18 Received payment in full from Patwary Company on note due.
25 The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated.
Sept. 1 Sold $13,100 of merchandise to Stanbrough Company and accepted a $13,100, 6-month, 10% note for the amount due.
Required:
Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year life and no salvage value. The equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement
Answer:
Oriole Company
Journal entries:
Jan. 5
Debit Accounts Receivable (Sheldon Company) $20,000
Credit Sales Revenue $20,000
To record sale of merchandise, terms n/15.
Jan. 20
Debit Notes Receivable (Sheldon Company) $20,000
Credit Accounts Receivable (Sheldon Company) $20,000
To record acceptance of 3-month, 8% note
Feb 18
Debit Notes Receivable (Patwary Company) $9,000
Credit Sales Revenue $9,000
To record sale of merchandise for a 6-month, 9% note
April 20
Debit Cash Account $20,400
Credit Notes Receivable (Sheldon Company) $20,000
Credit Interest on Notes Receivable $400
To record full settlement on account
April 30
Debit Cash Account $24,720
Credit Notes Receivable (Willingham Company) $24,000
Credit Interest on Notes Receivable $720
To record full settlement on account.
May 25
Debit Notes Receivable (Potter Inc.) $5,200
Credit Accounts Receivable (Potter Inc.) $5,200
To record acceptance of a 3-mont, 7% note.
Aug 18
Debit Cash Account $9,405
Credit Notes Receivable (Patwary Company) $9,000
Interest on Notes Receivable $405
To record full settlement on account.
Aug 25
Debit Accounts Receivable $5,291
Credit Notes Receivable (Potter Inc.) $5,200
Credit Interest on Notes Receivable $91
Sept. 1
Debit Notes Receivable (Stanbrough Company) $13,100
Credit Sales Revenue $13,100
To record sale of merchandise with a 6-month 10% notes receivable.
Dec. 31
Debit Depreciation Expense - Building $
Credit Accumulated Depreciation - Building $
To record depreciation expense for the year.
Debit Depreciation Expense - Equipment $
Credit Accumulated Depreciation - Equipment $
To record depreciation expense for the year.
Explanation:
Journal entries are prepared to record business transactions in the accounting books. They show which account is to be debited and which is to be credited in the ledger.
Note that the book values of building and equipment were not included in this question, hence no figures were added to the adjusting journal entries for depreciation expenses.
6. On 3/1/19, Kepple Inc. borrowed funds on a 12%, two-year note, to finance the construction of a new warehouse which qualifies for interest capitalization. Construction on the project began on 4/1/19 and was completed on 11/1/19. Kepple has a calendar year-end. Rounded to the nearest whole month, over how many total months in 2019 should interest be capitalized under the current interest capitalization rules?
Answer:
The interest would be capitalized for 7 months time and must be calculated at 12% of the actual amount used for the construction of the new warehouse.
Explanation:
The interest can only be capitalized for the period the loan amount was used to make the asset ready for use. Also note that the part of loan amount used will only be used to calculate the interest which would be capitalized which means if the company borrowed $1.2 million at 12% and used only $0.6 million of the total loan for construction of the building then the amount used will be $0.6 to compute the interest that will be capitalized.
The time period will be the corresponding time of commencement of construction and amount borrowed to the date the construction of the asset has been completed. So here, the time period for which the interest would be capitalized would be for 7 months (4/1/19 - 11/1/19) because the construction was completed within 7 months.
A garment manufacturing company makes 380,000 articles per year. Each article takes 95 minutes of direct labor at the rate of $9.00 per hour. The overhead costs are $7.50 per direct labor hour. The average price of the finished product is $80 per article. A new machine will reduce the direct labor hour by 15 minutes per article. What is the maximum amount the company should pay for the new machine if it wants to break even by the end of the first year
Answer:
The maximum amount the company should pay for the new machine is $1,567,500 if it wants to break even by the end of the first year
Explanation:
Number of article (N) = 380.000
Time for each articles (T) = 95 minutes = 1.583 hours
Direct Labour Cost (D1) = $9 per hour
Overhead Cost (O1)= $7.50 per direct labour hour
Total cost for labour(C)= D1 + O1= $16.50 per hour
Selling price of articles(S1) = $80 per article
- Cost of Production (P1)= N * T * C
= 380,000 * 1.583 * 16.50
=$9,925,410
-Total amount got by selling (S) = N * S1
=380,000 * 80
=$30,400,000
Profit in this process (R1) = S - P1
=30,400,000 - 9,925,410
=$20,474,590 per year
-Time for each article with new machines (T)= 95 - 15 = 80 minute = 1.333 hour
-Cost for production (P2)= N * T * C
=380,000 * 1.333 * 16.50
=$8,357,910
Profit in this Process(R2)= S-P2=
=30,400,000 - 8,357,910
=$22,042,090 per year
Net Profit gain by new machine = R2 - R1
=$22,042,090 - $20,474,590
=$1,567,500 per year
The maximum amount the company should pay for the new machine is $1,567,500 if it wants to break even by the end of the first year
Kathleen Reilly and Ann Wolf decide to form a partnership on August 1. Reilly invested land valued at $100,000, a Building valued at $300,000 and a note payable worth $198,000. Wolf invested $60,000 in cash and $105,000 in equipment in the new partnership. Prepare the journal entries to record the two partners' original investments in the new partnership
Answer:
Explanation:
Given that:
Kathleen Reilly and Ann Wolf decide to form a partnership on August 1
NOW:
Reilly invested land valued at $100,000, a Building valued at $300,000 and a note payable worth $198,000.
Similarly:
Wolf invested $60,000 in cash and $105,000 in equipment in the new partnership.
The objective of this question is to prepare the journal entries to record the two partners original investments in the new partnership.
.Since the partners agreed to be equally capital interest in their business.
SO let's an imaginary table for that and our data for the journal entries is being computed as follows:
DATE GENERAL JOURNAL DEBIT CREDIT
August 1 Land $100,000
Building $300,000
Note payable $198,000
Kathleen Reilly, Capital $202,000
August 1 Cash $60,000
Equipment $105,000
Ann Wolf, Capital $165,000
Although appealing to more refined tastes, art as a collectible has not always performed so profitably. Assume that in 2015, an auction house sold a statute at auction for a price of $10,332,500. Unfortunately for the previous owner, he had purchased it in 2008 at a price of $12,585,000. What was his annual rate of return on this sculpture
Answer:
lost 321,785.71 a year
Explanation:
Define the term feedback
Answer:
information or an opinion you give someone which is used for improvement.
Explanation:
information about reactions to a product, a person's performance of a task, etc. which is used as a basis for improvement.
Hill Industries had sales in 2019 of $7,600,000 and gross profit of $1,199,000. Management is considering two alternative budget plans to increase its gross profit in 2020. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2019 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 107,000 units. At the end of 2019, Hill has 48,000 units of inventory on hand. If Plan A is accepted, the 2020 ending inventory should be equal to 5% of the 2020 sales. If Plan B is accepted, the ending inventory should be equal to 64,000 units. Each unit produced will cost $1.80 in direct labor, $1.40 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2020 should be $1,767,480.
Prepare a sales budget for 2020 under each plan.
Answer:
Plan A:
Sales in units= 855,000
Sales revenue= $7,182,000
Plan B:
Sales in units= 1,057,000
Sales revenue= $7,927,500
Explanation:
Giving the following information:
Hill Industries had sales in 2019 of $7,600,000
Plan A:
Selling price= $8.4
Sales= 10% lower
Plan B:
Selling price= $7.5
Sales= 107,000 units higher
First, we need to determine the number of units sold in 2019:
Units sold= 7,600,000/8= 950,000 units
Plan A:
Sales in units= 950,000*0.9= 855,000
Sales revenue= 855,000*8.4= $7,182,000
Plan B:
Sales in units= 950,000 + 107,000= 1,057,000
Sales revenue= 1,057,000*7.5= $7,927,500
According to the Florida bureau of economic research, the mean rent price for condo in Florida is $ 700, We want to test this hypothesis:_______
a) A random sample of 50 condos rented was taken.
b) The mean was $ 800.
c) The assumption here is that the standard deviation of the population is known and is $ 400.
d) Alpha
Answer:
The answer is a.
Explanation:
I can safely say that in order to have an exact value of an average of $ 700, it is because an initial survey had to be made of people in 50 condominiums that allowed finding several sample means and finally finding the total sample mean, this data allows determining an exact average of reliable values supplied by respondents in the sample.
Grays Company has inventory of 16 units at a cost of $11 each on August 1. On August 3, it purchased 26 units at $10 each. 18 units are sold on August 6. Using the perpetual FIFO inventory method, what amount will be reported as cost of goods sold for the 18 units that were sold
Answer:
Cost of goods sold is $196
Explanation:
Using FIFO inventory sold are valued at the price of the most earliest stock in inventory.
The 16 units would be valued at $11 per one while the remaining 2 units would be valued at price of the purchase made on August 3 which cost $10 each
costs of goods sold=($11*16)+($10*2)
=$176+$20=$196
The costs of goods sold would be $196 if FIFO method of inventory valuation is used
Spring is here, and Frances and her brother would like to go fishing for the weekend in Washington. Frances could either go to the river in town where anyone can fish without a permit, or she could drive up to a stream located on her family's property in the countryside to fish. Assume that, no matter where people fish, all of the fish that are caught would be kept (that is, there is no "catch and release" policy).
The fish in the private stream are considered (rival in consumption / nonrival in consumption) and (excludable / nonexcludable) whereas the fish in the river are (rival in consumption / nonrival in consumption) and (excludable / nonexcludable). In other words, the fish in the private stream are an example of (Private good, public good, club good, common resource), and the fish in the river are an example of (private good, public good, club good, common resource)
Fishing in the river will likely lead to (adverse selection, natural monopoly, tragedy of the commons) because of which of the following reasons?
1. Nobody will enjoy fishing because of the lack of private contributions to the maintenance of the river.
2. All fishermen will choose to fish in the stream believing that there are more fish there.
3. All fishermen will choose to fish in the river because of the limited access to the stream.
4. Anyone can fish in the river, and one person's fishing activity decreases the ability of someone else to fish with success.
Answer: Please refer to Explanation
Explanation:
A. The fish in the private stream are considered rival in consumption and excludable whereas the fish in the river are rival in consumption and nonexcludable.
When a good is said to be Rival in Consumption, it means that consumption of the good reduces the chances that others have of consuming the same good. Every Fish that Frances catches regardless of whether it is in the Private or the Non-Private stream, means one more fish that no one else will.be able to catch and consume.
Excludable goods are goods that one can refuse people access to if they have not paid or reached some sort of agreement with the owner of the good.
Non-Excludable Goods are goods that cannot be refused people access to. People can use them without having to pay a fee.
B. In other words, the fish in the private stream are an example of Private good, and the fish in the river are an example of a public good.
A Private Good is one that is Excludable and under the ownership of a person or entity who derives benefits from it and can choose whether or not to allow others the chance to get a benefit from the good as well. The Stream is private and so it is up to Frances's family as to who they want to use it.
Public goods are more often than not, Non-Excludable and open to use for the public. Anyone can use the river to fish without a permit thereby making the fish a Public good.
C. Fishing in the river will likely lead to tragedy of the commons because of which of the following reasons?
4. Anyone can fish in the river, and one person's fishing activity decreases the ability of someone else to fish with success.
The Tragedy of the Commons is refers to a situation described in Economics where because of a lack of restrictions on the use of a good, individual members of the public use the good in such a way that it is not sustainable which will lead to the depletion of the good.
Because anyone can fish in the river, one person fishing can reduce the ability of another person to get fish because the fish will keep going down if caught faster than they can reproduce.
When using a pure chase strategy with hires and fires, calculate the number of employees needed to satisfy each period’s demand. Once you have established the number of employees needed, either hire or fire as required. Use the following data and the pure chase strategy to calculate the cost of satisfying demand in Periods 1 through 8: A B 4 Cost Data $12.505 Regular-time labor cost per hour $18.75 6 Overtime labor cost per hour $125.00 7 Subcontracting cost per unit (labor only) $25.00 8 Back-order cost per unit per period $10.00 9 Inventory holding cost per unit per period $800.00 10 Hiring cost per employee $500.00 11 Firing cost per employee1213 Capacity Data 14 Beginning workforce (employees) 15 Beginning inventory (units) 16 Production standard per unit (hours) 17 Regular-time available per period (hours) 18 Overtime available per period (hours) 19 20 Demand Data (units) 21 Period 1 192022 Period 2 2160 23 Period 3 144024 Period 4 1200 25 Period 5 204026 Period 6 240027 Period 7 174028 Period 8 150029 30 Total Number of Periods 8After evaluating the chase strategy, select all statements below which is are true. A. The total firing cost is larger than the total firing cost. B. The total hiring cost is $62,400.C. The total production cost is $1,548,900.D. The total hiring cost is larger than the total firing cost. E. Overtime labor cost is $200,000.F. The total regular-time labor cost is $1,440,000.
Answer:
B. The total hiring cost is $62,400
D. The total hiring cost is larger than the total firing cost.
E. Overtime labor cost is $200,000.
Explanation:
The hiring cost of the labor is greater than the firing cost because the company needs more workforce to meet the finished goods demand in the certain period. The hiring cost of the employees is $800 per labor and company needs 78 more labor to meet the demand. The total hiring cost will be $800 * 78 labors = $62,400.
Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $250.00 at the end of each quarter and then pay off the principal amount at the end of the year. What is the effective annual rate on the loan
Answer:
10.38%
Explanation:
From the question above a bank offers to lend an amount of $10,000 for a period of 1 year
The bank expects an interest of $250 to be paid every 4 months
= $250×4
= $1,000
Total amount of interest= $1,000
The first step is to calculate the nominal interest
= (1000/10,000)×100
= 0.1×100
= 10%
Therefore, the effective annual rate on the loan can be calculated as follows
= (1+r/m)^m-1
r = 10% , m = 4
= [1+(10/100)/4]^-1
=[ (1+0.1/4)^4]-1
= (1+0.025^4)-1
= (1.025^4)-1
= 1.1038-1
= 0.1038×100
= 10.38%
Hence the effective annual rate in the loan is 10.38%
