Answer:
A. Cycle inventory exists to avoid customer service problems.
Explanation:
Cycle inventory is the part of inventory kept by a supplier, that shows the amount of inventory available to satisfy demand. Cycle inventory allows the supplier to keep track of his available inventory so as to remove the problem of not meeting customers demand, which can led to loss of customers. And also to reduce the problem of over-storage that can lead to additional holding charge.
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
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.
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.
Summary operating data for Custom Wire & Tubing Company during the year ended April 30, 2019, are as follows: cost of merchandise sold, $6,100,000; administrative expenses, $740,000; interest expense, $25,000; rent revenue, $60,000; sales, $9,332,500; and selling expenses, $1,250,000. Prepare a single-step income statement. Refer to the lists of Labels, Accounts, and Amount Descriptions provided for the exact wording of the answer choices for text entries.
Answer and Explanation:
The preparation of the single step income statement is presented below:
Custom Wire & Tubing Company
Income Statement
Particulars Amount($)
Sales 9,332,500
less: cost of goods sold (6,100,000)
Gross profit 3,232,500
Add: rent revenues 60,000
less: expenses:
Administrative expenses (740,000)
Selling expenses (1,250,000)
Interest expenses (25,000)
Net Income 1,277,500
We simply added the revenues and deducted all expenses so that the net income could arrive
[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.
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
A prospective MBA student earns $55,000 per year in her current job and expects that amount to increase by 7% per year. She is considering leaving her job to attend business school for two years at a cost of $40,000 per year. She has been told that her starting salary after business school is likely to be $100,000 and that amount will increase by 10% per year. Consider a time horizon of 10 years, use a discount rate of 13%, and ignore all considerations not explicitly mentioned here.
Assume all cash flows occur at the start of each year (i.e., immediate, one year from now, two years from now,..., nine years from now). Also assume that the choice can be implemented immediately so that for the MBA alternative the current year is the first year of business school.
What is the net present value of the more attractive alternative?
Please round your answer to the nearest dollar.
Answer:
The net present value of the more attractive alternative is the MBA alternative which is = $ 495,894
Explanation:
Solution
Recall that:
An MBA student earns = $55,000 per year on her present job
The expected amount increase = 7%
She considers leaving her job to attend business school at cost of =$40,000
Starting salary after business school= $ 100,00
Per year increment of amount = 10%
Number of years = 10
Discount rate = 13%
Now,
The present Net value of the present Job alternative = $ 435,568.05
or 435,568
Thus,
The present Net value of the MBA alternative = $ 495,893.60
or $495,894
So,
The present Net value of the MBA alternative is more than that of the current job alternative.
Hence, the net present value of the more attractive alternative = MBA alternative = $ 495,894
Note: Kindly find an attached copy of the of the solution to the given question below.
President Zane is adamant about getting feedback from customers about how the company could improve. They gather data through surveys, face-to-face interactions, and by listening to conversations in the store or at events. Decisions based on this feedback are dependent upon _____.
Answer:
These are the options for the question:
A.credibility of the source
B.information quality
C.whether the information is negative or positive
D.the cost of obtaining the information
E.how the information is to be used
And this is the correct answer:
C.whether the information is negative or positive
Explanation:
Because the information is being gathered with the goal of obtaining feedback from the customers about how the company could improve, making such changes depend on whether the information is negative or positive.
If for example, all the customers gave positive feedback, then the company would not need to change anything about its operation: it would be satisfying customer expectations.
The decision that depend upon the feedback are based upon the information quality.
The following information should be considered:
As in the given case, President getting the feedback from the customers related to the improvement.The data should be gathered via surveys, face-to-face interactions.So here the decisions should be depend upon the quality of the information they received.Therefore we can conclude that The decision that depend upon the feedback are based upon the information quality.
Learn more: brainly.com/question/6201432
Find the account balance at the end of the second period for $3,000.00 invested at 9% compounded quarterly.
Answer:
A = $3136.51875
Explanation:
Given that :
The principal = $3,000.00
Rate = 9%
Time = 6 months
Since the amount is compounded quarterly;
r = 9/4 = 2.25 %
t = 6 months = 2 quarter
Using the formula:
A = P(1+r/100)^t
A = 3000.00(1+ 2.25/100)^2
A = 3000.00( 1+ 0.0225)^2
A = 3000.00 (1.0225)^2
A = 3000.00 (1.04550625)
A = $3136.51875
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.
The new car you just purchased cost $25,499. You have saved $3,240 for the down payment (made at the time of purchase) and will finance the rest through a fully amortized installment loan from the car dealer. This loan has an interest rate of 5.25% compounded monthly and required an equal monthly payment for the next 72 months. Which of the following best represents the payment on interest (145)and principal (P45) associated with the 45th monthly payment?
1(45) = $1.02, P(45) = $360.05
1(45) = $0.03, P(45) = $361.04
I(45) = $274.89, P(45) = $86.17
|(45) = $41.54, P(45) = $319.52
Answer:
The correct option is |(45) = $41.54, P(45) = $319.52
Explanation:
Loan amount = Price - Down payment = $25499 - $3240 = $22259
Monthly interest rate = i = 5.25%÷ 12 = 0.004375
Number of installments = n =72
Monthly installment=$22,259 × (A/P,0.004375,72)
Calculating the interest factor;
[tex]\small (A/P,i,n)=\frac{i}{1-\frac{1}{(1+i)^{n}}}[/tex]
[tex]\small (A/P,0.004375,72)[/tex] = [tex]\frac{0.004375}{1-\frac{1}{(1+0.004375)^{72}}}[/tex] = 0.0162212
So,
Monthly installment=$22259 × 0.0162212= $361.0677
Now let us calculate the balance after 44th payment
B(44)= [$22,259 × (F/P,0.004375,44)] - [$361.0677 × (F/A,0.004375,44) ]
Calculating the interest factor;
(F/P,0.004375,44) = [tex](1+0.004375)^{44}[/tex] = 1.2117676
[tex]\small (F/A,i,n)[/tex] = [tex]\frac{(1+i)^{n}-1}{i}[/tex]
[tex]\small (F/A,0.004375,44)[/tex] = [tex]\frac{(1+0.004375)^{44}-1}{0.004375}[/tex] = 48.4040257
So,
B(44)= [$22,259 × 1.2117676] - [$361.0677 × 48.4040257] = $9495.6532
So, interest for 45th payment = I(45) = Balance due × Monthly interest rate
=9495.6532 ×0.004375
= $41.54
Principal associated with 45th payment=Monthly installment-Interest payment
=$361.0667 - $41.5435
= $319.5232
≅$319.52
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.
A 5% coupon, 18-year annual bond has a yield to maturity of 6.2%. Assuming the par value is $1,000 and the YTM does not change over the next year, what will the price of the bond be today
Answer:
Price of Bond=$871.997
Explanation:
The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.
Price of Bond = PV of interest payment + PV of redemption value
PV of interest payment
interest payment = 5%× 1,000 = $50
PV = A × (1- 1+r)^(-n)/r
r- 6.2%, n- 18, A- 50
PV = 50 × (1 -1.062^(-18))/0.062=533.341
PV of redemption
PV = FV × (1+r)^(-n)
PV = 1,000 × 1.062^(-18)= 338.655
Price of the stock = 533.3419 + 338.655
Price of Bond=$871.997
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.
In which step of the planning process to managers identify the priorities and trade-offs among goals and plans
Answer:
Selection of goals and plans
Explanation:
When engaging in a project, the different stages involved can be broadly categorized into four. These include; the selection of goals and plans, the monitoring of these goals and plans, the implementation and evaluation of them.
The selection of the goals and plans is the first stage of the project planning. At this stage, goals as well as problems to be solved are identified. Trade-offs measure the quality of the project, while factoring in time and cost. Having an idea of the final quality would help in making changes possible along the course of the project.
This stage is then followed by the build up stage where goals are monitored and means to achieve them are initiated. The implementation and evaluation of these goals then follow.
operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below. End of Year Beginning of Year Cash and cash equivalents $ 770 $ 69 Accounts receivable (net) 1,950 1,880 Inventory 810 860 Other current assets 590 331 Total current assets $4,120 $3,140 Total current liabilities $2,030 $1,640 For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251 million. Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover and days in inventory at the end of the current year. (Round current ratio to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8. Use 365 days for calculation.) Current ratio :1 Accounts receivable turnover times Average collection period days Inventory turnover times Days in inventory days
Answer and Explanation:
The formulas and calculations are shown below:
1. Current ratio = Total Current assets ÷ total current liabilities
= $4,120 ÷ $2,030
= 2.03 times
2. Account receivable turnover
= Net credit sales ÷ Average accounts receivable
where,
Net credit sales is $8,258 million
And, the Average accounts receivable would be
= (Accounts receivable, beginning of year + Accounts receivable, end of year) ÷ 2
= ($1,880 + $1,950) ÷ 2
= $1,915
So, the accounts receivable turnover ratio would be
= $8,258 ÷ $1,915
= 4.3 times
3. Average collection period is
= Total number of days in a year ÷ account receivable turnover ratio
= 365 days ÷ 4.31 times
= 84.6 days
4. Inventory turnover ratio =
= Cost of goods sold ÷ average inventory
where,
Average inventory = (Opening balance of inventory + ending balance of inventory) ÷ 2
= ($860 + $810) ÷ 2
= $835 million
And, the cost of good sold is $5,328 million
Now put these values to the above formula
So, the answer would be equal to
= $5,328 million ÷ $835 million
= 6.4 times
5. Days in inventory
= Total number of days in a year ÷ inventory turnover ratio
= 365 days ÷ 6.38 times
= 57.2 days
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.
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.
A cash flow series is increasing geometrically at the rate of 7% per year. The initial payment at EOY 1 is $4 comma 000, with increasing annual payments ending at EOY 20. The interest rate is 14% compounded annually for the first seven years and 5% compounded annually for the remaining 13 years. Find the present amount that is equivalent to this cash flow.
Answer:
$ 83,921.45
Explanation:
The present value of the cash flows can determined by discounting to today's terms all of the cash flows involved.
The cash flows for the first years were discounted using a 14% discount rate while the remaining years were discounted at 5% as shown in the attached.
During May 2020, a company spend $14,000 on ordinary maintenance of its delivery trucks. These maintenance costs should have been recorded as debits to ‘Maintenance Expense’ but the company mistakenly capitalized these costs instead. Which of the following is true?
A. Total Assets are overstated as of May 31, 2020 and May 2020 Net Income is overstated.
B. Total Assets are overstated as of May 31, 2020 and May 2020 Net Income is properly stated.
C. Total Assets are understated as of May 31, 2020 and May 2020 Net Income is understated.
D. Both Total Assets as of May 31, 2020 and May 2020 Net Income are properly stated.
Answer: A. Total Assets are overstated as of May 31, 2020 and May 2020 Net Income is overstated
Explanation:
Capitalizing the costs of the maintenance means that the $14,000 was taken to the Machinery Account which is an asset when in fact it should have been taken to the Maintenance Expense account which is an expense. This will increase the Asset account for May by $14,000 when it should not have meaning that the Asset account is now Overstated.
Net Income is acquired by deducting expenses from Sales/Revenue. The $14,000 which should never have been recorded as an Asset but instead as an expense, will mean that this Expense will not be deducted from the Net Income because it is being recognized as an Asset. This will mean that the Net Income for May will be Overstated by $14,000 which was supposed to be removed from it.
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
The following materials standards have been established for a particular product: Standard quantity per unit of output 5.0 meters Standard price $ 17.70 per meter The following data pertain to operations concerning the product for the last month: Actual materials purchased 7,900 meters Actual cost of materials purchased $ 143,780 Actual materials used in production 7,400 meters Actual output 1,450 units What is the materials price variance for the month
Answer:
Material price variance = $3,950 unfavorable
Explanation:
A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. A favorable variance is recorded where the actual total cost of materials is lower that the standard cost. While an adverse variance implies the opposite.
$
7,900 meters should gave cost ( 7,900× 17.70) 139,830
but did cost 143,780
Material price variance 3,950 Unfavorable
Material price variance = $3,950
Choose appropriate term from the list below for each of the following descriptions.
a. Executive Order 9066
b. English-Only Movement
c.Chinese Exclusion Act
d. Bilingual Education Act
e. Proposition 227 and 58
f. Meyer vs. Nebraska
g. Farrington vs. Tokushige
h. Lau vs. Nichols
i. Native American Languages Act
j. Bill of Rights for Deaf and Hard of Hearing Children
This federal legal act, signed in 1968 by President Lyndon B. Johnson. introduced a new type of education for students whose home language was not English. It was originally written for Spanish-speaking students, but
overtime it was changed to include all students who speak a language other than English. It signified the birth of the bilingual education movement but was replaced in 2001 by the No Child Left Behind legislation emphasizing
English Language Learning.
This was a law signed in 1942 by President Franklin D. Roosevelt authorizing the internment of tens of thousands of American citizens of Japanese ancestry and resident aliens from Japan, leading to the loss of language and
culture among tens of thousands of Japanese-Americans.
This was a 1927 case in which the Supreme Court of the United States unanimously stmck down the Territory of Hawaii's law which made the teaching of foreign languages illegal for schools. The Supreme Court argued that the
Hawaii law violated the due process clause of the Fifth Amendment.
This 1990 legislation passed by the US Congress declared it •the official policy of the United States government to preserve, protect, and promote the rights and freedom of Native Americans to use, practice, and develop Native
languages."
This was a 1923 case in which the Supreme Court of the United States struck down the 1919 Nebraska law restricting foreign-language education, specifically education in German.
This form of political activism advocates for the use of one language in the official United States government operations and a legal policy proclaiming an official national language. It also advocates against bilingual education.
This legislation, only passed by a handful of states so far. recognizes the not always deaf-friendly educational settings and proposes that every deaf child must have full access to all information, specialized personnel, school
programs, social activities, and extra-curricular activities and a right to acquire both English and American Sign Language (a natural visual language).
This 1882 federal law signed by President Chester A. Arthur was the first immigration law that allowed an absolute moratorium banning an entire ethnic group from entering the United States.
This was a 1974 Supreme Court ease which extended bilingual education to Chinese-speaking children in San Francisco, California, first, and, subsequently, everywhere in the United States, arguing that the lack of appropriate bilingual programs was a violation of the Civil Rights Act of 1964.
These laws have regulated the availability of bilingual programs in one of the largest states in the United States for the past 20 years,
Answer: Please refer to Explanation
Explanation:
a. Executive Order 9066
This was a law signed in 1942 by President Franklin D. Roosevelt authorizing the internment of tens of thousands of American citizens of Japanese ancestry and resident aliens from Japan, leading to the loss of language and culture among tens of thousands of Japanese-Americans.
b. English-Only Movement.
This form of political activism advocates for the use of one language in the official United States government operations and a legal policy proclaiming an official national language. It also advocates against bilingual education.
c.Chinese Exclusion Act.
This 1882 federal law signed by President Chester A. Arthur was the first immigration law that allowed an absolute moratorium banning an entire ethnic group from entering the United States.
d. Bilingual Education Act.
This federal legal act, signed in 1968 by President Lyndon B. Johnson. introduced a new type of education for students whose home language was not English. It was originally written for Spanish-speaking students, but
overtime it was changed to include all students who speak a language other than English. It signified the birth of the bilingual education movement but was replaced in 2001 by the No Child Left Behind legislation emphasizing
English Language Learning.
e. Proposition 227 and 58.
These laws have regulated the availability of bilingual programs in one of the largest states in the United States for the past 20 years. State in question is California.
f. Meyer vs. Nebraska.
This was a 1923 case in which the Supreme Court of the United States struck down the 1919 Nebraska law restricting foreign-language education, specifically education in German.
g. Farrington vs. Tokushige.
This was a 1927 case in which the Supreme Court of the United States unanimously struck down the Territory of Hawaii's law which made the teaching of foreign languages illegal for schools. The Supreme Court argued that the Hawaii law violated the due process clause of the Fifth Amendment.
h. Lau vs. Nichols
This was a 1974 Supreme Court ease which extended bilingual education to Chinese-speaking children in San Francisco, California, first, and, subsequently, everywhere in the United States, arguing that the lack of appropriate bilingual programs was a violation of the Civil Rights Act of 1964.
i. Native American Languages Act.
This 1990 legislation passed by the US Congress declared it •the official policy of the United States government to preserve, protect, and promote the rights and freedom of Native Americans to use, practice, and develop Native languages."
j. Bill of Rights for Deaf and Hard of Hearing Children.
This legislation, only passed by a handful of states so far. recognizes the not always deaf-friendly educational settings and proposes that every deaf child must have full access to all information, specialized personnel, school programs, social activities, and extra-curricular activities and a right to acquire both English and American Sign Language (a natural visual language).
Concord is a book publisher that reissues old titles. The company offers these books with either a standard machine-glued hard cover or a deluxe, hand-embossed, hand-stitched, leather cover. Concord currently allocates overhead to the books based on direct labor hours. A recent activity analysis conducted by the controller revealed the following information. Standard Edition Deluxe Edition Units produced 479,000 10,000 Direct labor hours 526,900 32,000 Printing press hours 91,010 1,900 Sales orders 4,790 10,000.
Calculate the following for each product: (Round answers to 2 decimal places, e.g. 15.25.)
Answer:
(1). For the Standard Edition, it is = 526,900/479,000 = 1.1 DLH/unit.
For the Deluxe Edition, it is ,= 32,000/10,000 = 3.2 DHL/unit.
(2). For the Standard Edition, it is = 91,010/479,000 = 0.19 PPH/unit.
For the Deluxe edition= 1,900/10,000 = 0.19 PPH/unit.
(3). For the Standard Edition, it is = 4,790/479000 = 0.01 order per unit.
For the Deluxe edition = 10000/10000= 1 order per unit.
Explanation:
We are given the following parameters or data or infomation which is going to help us in solving this problem;
(A) for the Units produced;
=> Standard Edition = 479,000
=>Deluxe Edition = 10,000.
(B). For the Direct labor hours
=>Standard Edition = 526,900.
=>Deluxe Edition = 32,000.
(C). For the Printing press hours;
=> Standard edition= 91,010.
=> Deluxe edition= 1,900.
(D). For the Sales orders;
=> Standard edition= 4,790.
=> Deluxe edition = 10,000.
Hence;
DIRECT LABOR HOUR OER UNIT:
(1). For the Standard Edition, it is = 526,900/479,000 = 1.1 DLH/unit.
For the Deluxe Edition, it is ,= 32,000/10,000 = 3.2 DHL/unit.
PRINTING PRESS PER HOUR;
(2). For the Standard Edition, it is = 91,010/479,000 = 0.19 PPH/unit.
For the Deluxe edition= 1,900/10,000 = 0.19 PPH/unit.
SALES ORDER PER UNIT
(3). For the Standard Edition, it is = 4,790/479000 = 0.01 order per unit.
For the Deluxe edition = 10000/10000= 1 order per unit.
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:
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
On June 30, 2021, Blondie Fixtures was considering alternatives to bolster its cash position. Option One called for transferring $500,000 in accounts receivable to Dogwood Finance Company without recourse for a 5% fee. Option Two calls for Blondie to transfer the $500,000 in receivables to Dogwood with recourse. Dogwood's charges a 4% fee for receivables factored with recourse. Option Two meets the conditions to be considered a sale, but Blondie estimates a $4,000 recourse liability. Under either option, Dogwood will immediately remit 90% of the factored receivables to Blondie, and retain 10%. When Dogwood collects the remaining receivables, it remits the amount, less the fee, to Blondie, Blondie estimates that the fair value of the final 15% of the receivables is $24,500 (ignoring the factoring fee).
Required:
1. Prepare any necessary journal entry or entries if receivables are factored under Option One.
2. Prepare any necessary journal entry or entries if receivables are factored under Option.
Answer:
1. Prepare any necessary journal entry or entries if receivables are factored under Option One.
Dr Cash 450,000 (=90% × $500,000)
Dr Loss on sale of receivables 50,000
Cr Accounts receivable 500,000
Since the fair value of the remaining receivables ($24,500 ≤ $25,000) is less than the factoring fees, then the company should not expect to receive any more money and should record the loss immediately.
2. Prepare any necessary journal entry or entries if receivables are factored under Option (two)
Dr Cash 450,000
Dr Receivable from factor 4,500 (= fair value $24,500 - $20,000)
Dr Loss on sale of receivables 49,500
Cr Accounts receivable 500,000
Cr Recourse liability 4,000
Since the fair value of the remaining receivables is higher than the factoring fees ($24,500 ≥ $20,000), then you must report a factoring receivable. Any recourse liability increases the company's losses.
"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
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
