Question Completion:
Existing Store Revenue 2nd Store Cannibalization Revenue Net Revenue
Revenue Estimate Drop Increase for
Market
Los Angeles 1,450,000 1,570,000 10% 145,000 1,425,000
Houston 1,400,000 1,475,000 25% 350,000 1,125,000
Orlando 2,100,000 2,155,000 30% 630,000 1,525,000
Atlanta 1,600,000 1,780,000 55% 880,000 900,000
Chicago 1,950,000 1,730,000 40% 780,000 950,000
San Diego 3,400,000 3,090,000 10% 340,000 2,750,000
Portant 1,000,000 1,075,000 25% 250,000 825,000
Dallas 2,000,000 1,850,000 60% 1,200,000 650,000
Boston 2,300,000 2,200,000 50% 1,150,000 1,050,000
1. Ignoring cannibalization rates for now, what two markets have the highest net revenue increases when adding a second store?
San Diego and Orlando
Atlanta and Dallas
Orlando and Dallas
San Diego and Portland
Dallas and Portland
2. What two markets should be chosen for a second store based on management's criteria that the cannibalization rate for the existing store should be less than 30%
Note: Cannibalization rates and net revenue increase amounts need to be considered when making this determination.
San Diego and Orlando
San Diego and Los Angeles
Chicago and Los Angeles
Chicago and Portland
San Diego and Portland
Answer:
Better Beans Coffee Company
1. San Diego's $2,750,000 and Orlando's $1,525,000 presented the highest net revenue increases when adding a second store.
2. Based on management's criteria that the cannibalization rate for the existing store should be less than 30%, San Diego with 10% and Los with 10% Cannibalization rates should be chosen.
Explanation:
Cannibalization Rate is a measure of the impact of new products or the presence of new stores on sales revenue for existing products or stores. Cannibalization happens when a business, like the Better Beans Coffee Company, opens a new store in a town where there is an existing store. It can also happen when Better Beans releases new coffee products. Consumers' attention and demand for existing products can decrease, as a switch to new products or new stores takes place.
Keller Cosmetics maintains an operating profit margin of 7% and asset turnover ratio of 4.
a. What is its ROA? (Enter your answer as a whole percent.)
b. If its debt-equity ratio is 1, its interest payments are $9,300 and taxes are $10,600, and EBIT is $26,500, what is its ROE?
Answer:
a. What is its ROA?
return on assets (ROA) = profit margin x asset turnover = 7% x 4 = 28%
mathematically it can be solved this way:
profit margin = net income / total sales
total sales = net income / 7%
asset turnover = total sales / total assets
total sales = 4 x total assets
net income / 7% = 4 x total assets
ROA = net income / total assets = 7% x 4 = 28%
b. If its debt-equity ratio is 1, its interest payments are $9,300 and taxes are $10,600, and EBIT is $26,500, what is its ROE?
ROE = profit margin x asset turnover x leverage
leverage = net income / earnings before taxes
net income = EBIT - interests - taxes
net income = $26,500 - $9,300 - $10,600 = $6,600
earnings before taxes = EBIT - interests = $26,500 - $9,300 = $17,200
leverage = $6,600 / $17,200 = 0.38372
ROE = 7% x 4 x 0.38372 = 10.74416% ≈ 10.74%
g Larry recorded the following donations this year: $540 cash to a family in need $2,440 to a church $540 cash to a political campaign To the Salvation Army household items that originally cost $1,240 but are worth $340. What is Larry's maximum allowable charitable contribution if his AGI is $60,400
Answer:
$2780
Explanation:
Given the following donations by Larry:
Cash to family in need $540
Cash to political campaign = $540
Church donation = $2440
Donation to salvation Army household = $340 (worth)
The allowable charitable contribution when applied to the an individual's adjustable Gross income. These contribution must be made to qualified charitable organizations in other to become eligible for deduction. In the scenario above, the qualified charitable organization include the donation to church and the salvation Army household :
Hemce, maximum allowable charitable contribution is :
$(2,440 + 340) = $2780
You and your best friend watch the same television commercial together. You think that thespokesperson in the ad is quite humorous. Your friend thinks that the spokesperson is just plain stupid. This is an example of:
Answer:
the creation of different meanings based on social and cultural context.
Explanation:
In our daily interactions with others, we tend to come across people whose values are different from ours. The difference can be attributed to different cultural and social backgrounds. Culture is a people's way of life. This embraces their beliefs, values, religion.
When people have different values, they tend to see things differently. That can account for the reason why a friend would view an ad as humorous, while another would view it as plain stupid.
g Brandon and Jane Forte file a joint tax return and decide to itemize their deductions. The Fortes' income for the year consists of $119,000 in salary, $500 interest income, $1,000 nonqualifying dividends, and $500 long-term capital gains. The Fortes' expenses for the year consist of $2,500 in investment interest expense and $800 in tax preparation fees. Assuming that the Fortes' marginal tax rate is 32 percent and they make no special elections, what is the amount of investment interest expense deduction for the year
Answer:
$1,500
Explanation:
Investment interest expenses = Interest Income + Non qualifying dividends
Investment interest expenses = $500 + $1,000
Investment interest expenses = $1,500
$1,500 < $2,500 (Investment interest expenses)
The long term capital gains are not considered in investment income because this income is taxed at a preferential rate. Hence, the Investment interest expenses deduction for the year is $1,500.
Identify the accounting assumption or principle that is described below. (a) Belief that a company will remain in operation for the foreseeable future. (b) Indicates that personal and business record-keeping should be separately maintained. (c) Only those items that can be expressed in money are included in the accounting records. (d) Separates financial information into time periods for reporting purposes. (e) Measurement basis used when a reliable estimate of fair value is not available. (f) Dictates that companies should report all circumstances and events that make a difference to financial statement users.
Answer:
(a) Belief that a company will remain in operation for the foreseeable future.
Accounting assumption or principle: Going concern assumption
(b) Indicates that personal and business record-keeping should be separately maintained.
Accounting assumption or principle: Economic entity assumption
(c) Only those items that can be expressed in money are included in the accounting records.
Accounting assumption or principle: Monetary unit assumption
(d) Separates financial information into time periods for reporting purposes.
Accounting assumption or principle: Periodicity assumption
(e) Measurement basis used when a reliable estimate of fair value is not available.
Accounting assumption or principle: Historical cost principle
(f) Dictates that companies should report all circumstances and events that make a difference to financial statement users.
Accounting assumption or principle: Full disclosure principle
Raatz Corporation's total current assets are $370,000, its noncurrent assets are $660,000, its total current liabilities are $220,000, its long-term liabilities are $410,000, and its stockholders' equity is $400,000. Working capital is: Select one: a. $370,000 b. $150,000 c. $250,000 d. $400,000
Answer:
b. $150,000
Explanation:
The computation of the working capital is shown below:
= Total current assets - total current liabilities
= $370,000 - $220,000
= $150,000
We simply applied the above formula
And, the same is to be considered
Hence, the working capital is $150,000
Therefore the correct option is b. $150,000
All the other options are wrong.
In your own words define the political structure as presented by Bolman and Deal
and give an example of a political issue you found in the Wall Street Journal, cite
your example.
Answer:
According to Bolman and Deal, the organizational structure can be defined as the idea of the convergence of four aspects of institutional, human resources, political and symbolic aspects that function together.
Explanation:
Sophia's Restaurant served 5,000 meals last quarter. Sophia recorded the following costs with those meals. Variable costs: Ingredients used $ 14,000 Direct labor 10,500 Indirect materials and supplies 5,300 Utilities 1,700 Fixed costs: Managers' salaries 22,000 Rent 18,000 Depreciation on equipment (straight-line, time basis) 2,000 Other fixed costs 3,000 Required: Unit variable costs and total fixed costs are expected to remain unchanged next quarter. Calculate the unit cost and the total cost if 4,500 meals are
Answer:
The answer is below
Explanation:
Total Variable cost = Ingredients used + Direct labor + Indirect materials and supplies + Utilities = $14,000 +$10,500 + $5,300 + $1,700 = $31,500
Total Fixed cost = Managers' salaries + Rent + Depreciation on equipment (straight-line, time basis) + Other fixed costs = $22,000 + $18,000 + $2,000 + $3,000 = $45,000
Total cost = Total Variable cost + Total fixed cost + $31500 + $45000 = $76500
Unit costs = Total cost / Number of meals = $76500 / 4500 meals = $15.30 per meal
The Food King chain stocks the products of VitaVeggies Food Company at all of their supermarkets. The Teamsters are currently involved in a labor dispute with VitaVeggies. The union has already encouraged its members and the general public not to buy VitaVeggie products. Now it is threatening Food King stores with the possibility of a boycott if it continues to carry the VitaVeggies line. Food King is being threatened with a(n)
Answer: Secondary boycott
Explanation:
From the question, we are informed that the Food King chain stocks products from VitaVeggies at their supermarkets and were recently told by the union to stop purchasing from them even though the union had already told the public and its members to stop purchasing VitaVeggies products.
This is referred to as a secondary boycott. Secondary boycott occurs when a primary boycott had already taken place and the public and other organizations are further told not to buy goods from certain companies.
Assume the following (1) variable expenses = $300,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 25%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? Multiple Choice The total contribution margin = $225,000 The variable expense ratio is 300% The total sales = $400,000 The total fixed expenses = $75,000
Answer:
The total sales = $400,000
Explanation:
Given the information below,
Total sales = $10,000
Variable expenses = $300,000
Contribution margin = 25%
Net operating income = $10,000
Total sales
[300,000 / (1-25%)].
$400,000
Less: Variable expenses
($300,000)
Contribution margin
($100,000)
Less: Fixed cost
[400,000 - 300,000 - 10,000]
($90,000)
Net Operating income
$10,000
The correct answer is ; The total sales = $400,000
Bond Ratings. Companies pay rating agencies such as Moody’s and S&P to rate their bonds, and the costs can be substantial. However, companies are not required to have their bonds rated in the first place; doing so is strictly voluntary. Why so you think they do so?
Answer:
Bond Ratings
Companies employ rating agencies such as Moody's and S&P to rate their bonds despite the substantial costs and their voluntariness because ratings by these agencies add a badge of honor to the bonds. It gives investors some level of assurance that the bonds will be honored at maturity and that the pricing is right, given the company's credit risk.
Explanation:
Credit risk rating agencies assess the credit risk of a company or financial product as formal and credit-worthy benchmarks for investment decisions. While companies pay huge costs to have these ratings conducted by the big three, including Moody's, S&P, and Fitch, the main value goes to the potential investors who require the information to decide whether to invest in the rated companies.
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.
Activity Cost Activity Base
Procurement $377,300 Number of purchase orders
Scheduling 220,400 Number of production orders
Materials handling 417,500 Number of moves
Product development 779,200 Number of engineering changes
Production 1,499,100 Machine hours
Number of Number of Number of Number of Machine Number of
Purchase Production Moves Engineering Hours Units
Orders Orders Changes
Disk drives 4,030 260 1,330 10 2,000 1,500
Tape drives 1,600 185 780 8 8,800 3,600
Wire drives 11,800 780 3,600 21 11,400 2,100
The activity rate for the materials handling cost pool is:______.
a. $179.92 per move.
b. $73.12 per move.
c. $67.53 per move.
d. $21.65 per move.
Answer:
Materials handling= $73.12 per move
Explanation:
Giving the following information:
Activity Cost Activity Base
Materials handling 417,500 Number of moves
Number of moves:
Disk drives 1,330
Tape drives 780
Wire drives 3,600
Total= 5,710
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Materials handling= 417,500 / 5,710
Materials handling= $73.12 per move
Explain the risks associated with leveling resources, compressing or crashing projects, and imposed durations or "catch-up" as the project is being implemented. Why is it critical to develop a time-phased baseline? Subscribe to unlock
Answer:
Explain the risks associated with leveling resources, compressing or crashing projects, and imposed durations or "catch-up" as the project is being implemented.
a project manager will try to level resources in order to even out the use of resources throughout the whole project, but that can result in a deficit of resources during critical times. E.g. trying to use 25% of resources during each year for a project that lasts 4 years. But some activities require a lot o resources but last a short time, while other activities might last longer and consume fewer resources. a project manager will try to compress a project's schedule because he/she wants to finish early, ideally without affecting the project's scope. The problem with compressing a project is that you might have to skip or eliminate certain activities in order to so so. E.g. a lot of pharmaceutical companies are trying to develop a vaccine that ends the current health crisis, and their rush are not following the appropriate steps. crashing activities refers to trying to finish some critical activity early by assigning more resources to it. The risks of crashing critical activities is that they might not be well done, or it might be too expensive.Why is it critical to develop a time-phased baseline?
Without a well done time-phased baseline, it is very difficult to prepare a project schedule, or at least one that actually works. It is also important because it is very useful for cost control, and projects can easily go out of control and cost more than their budget.
Receivables are valued based on their ________.
a. fair value
b. estimated amount collectible
c. lower-of-cost-or-market value
d. historical cost
Answer:
b. estimated amount collectible
Explanation:
In Financial accounting, Receivables are also known as Account Receivable. Receivables are considered to be a current asset because it is the payment a business firm would receive from its customers for goods purchased or services taken on credit. Also, accounts receivable are recorded in the current assets section of the balance sheet because they add value to a business firm.
Generally, current assets are considered to be liquid because they are listed on the balance sheet in the order (descending) in which they are expected to turn or be converted to cash within a relatively short term period.
Hence, receivables are valued based on their estimated amount collectible from customers for the goods and services taken.
Ivanhoe Construction Company had a contract starting April 2021, to construct a $23000000 building that is expected to be completed in September 2023, at an estimated cost of $21000000. At the end of 2021, the costs to date were $7560000 and the estimated total costs to complete had not changed. The progress billings during 2021 were $3800000 and the cash collected during 2021 was 3100000. Ivanhoe uses the percentage-of-completion method. At December 31, 2021 Ivanhoe would report Construction in Process in the amount of:
Answer:
$8280000
Explanation:
From the given information;
The percentage of the completion method used in construction is equal to the contract price multiplied by the percentage of estimated total cost incurred to date i.e.
Cumulative cost to date $7560000
Estimated total cost $21000000
Percentage of completion 36% ( $7560000/ $21000000 )
The contract price for this project is $23000000
Therefore,
At December 31, 2021 Ivanhole would report construction in process in the amount of: $23000000 × 36%
= $8280000
When referring to the size and scope of business, which option should be included?
Wholesale vs. Retail
For-Profit vs. Nonprofit
Domestic vs. Global
Public vs. Private
"You decide to purchase a building for $30,000 by paying $5,000 down and assuming a mortgage of $25,000. The bank offers you a 15-year mortgage requiring annual end-of-year payments of $3,188 each. The bank also requires you to pay a 3 percent loan origination fee, which will reduce the effective amount the bank lends to you. Compute the annual percentage rate of interest of this loan."
Answer:
10%
Explanation:
total loan = $25,000 x (1 - 3%) = $24,250
the present value of an annuity formula:
PV = annual payment x annuity factor
annuity factor = PV / annual payment = $24,250 / $3,188 = 7.607
the formula to calculate PV annuity factor is [1 - 1/(1 + i)ⁿ ] / i
7.607 = [1 - 1/(1 + i)¹⁵ ] / i
7.607i = 1 - 1/(1 + i)¹⁵
1/(1 + i)¹⁵ = 1 - 7.607i
1 / (1 - 7.607i) = (1 + i)¹⁵
after a lot of math:
i = 10%
1 / (1 - 0.7607) = 1.1¹⁵
4.18 = 4.18
All three of the $5000 billion GDP figures (Production, Income and Spending) are in ____________ dollars.
Answer: D inflation adjusted, real
Explanation:
The GDP calculation acquired in the flow chart of $5,000 billion were all done after adjusting for inflation which means that they were in real dollars.
Inflation adjusted GDP enables more effective comparison between different periods as inflation tends to inflate the prices of goods and services and can make one think that the economy has grown more than it actually has.
When the value of GDP is inflation adjusted, it can then be seen just how much the economy improved or shrank.
1. When will countries trade? Assuming 2 goods, food and clothing, and that both countries’ preferences are homothetic (but not necessarily identical), determine whether two countries will trade in each of the following situations: (a) Countries have identical preferences and identical endowments. (b) Countries have identical preferences, their endowments differ, and their endowments are not in the same ratio of food to clothing. (c) Countries have identical preferences, their endowments differ, but the ratio of food to clothing is the same in both countries. (d) Countries have identical endowments but different preferences. (e) Countries have both different preferences and different endowments.
Answer:
(a) Countries have identical preferences and identical endowments.
Explanation:
Analyzing the statement, there is information that the preferences of countries are homothetic (but not necessarily identical) with respect to the 2 goods, food and clothing.
That is why it is correct to state that countries will not trade with each other, as countries have identical preferences and identical allocations, which means that the demands for these goods will be related to the prices of the goods and not in relation to income or preferences.
Therefore, there is no need to commercialize these two goods between these countries, except in situations of scarcity.
Pharoah Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting business away from city areas. At the end of the company’s fiscal year on November 30, 2022, these accounts appeared in its adjusted trial balance.
Accounts Payable $ 26,400
Accounts Receivable 17,100
Accumulated Depreciation—Equipment 68,000
Cash 8,000
Common Stock 35,000
Cost of Goods Sold 609,960
Freight-Out 6,440
Equipment 159,160
Depreciation Expense 13,700
Dividends 12,000
Gain on Disposal of Plant Assets 2,000
Income Tax Expense 10,000
Insurance Expense 9,000
Interest Expense 5,000
Inventory 26,100
Notes Payable 43,500
Prepaid Insurance 6,000
Advertising Expense 33,500
Rent Expense 34,000
Retained Earnings 14,100
Salaries and Wages Expense 118,740
Sales Revenue 904,000
Salaries and Wages Payable 6,000
Sales Returns and Allowances 20,000
Utilities Expense 10,300
Answer:
Net Income = $35,360
Ending retained earnings = $37,460
Total Asset = Liabilities and Stockholders' Equity = 148,360
Explanation:
Note: This question is not complete as the requirement is omitted. The complete question is therefore presented before answering the question. See the attached pdf file for the complete question with the requirement.
The answer to the question is now presented as follows:
Prepare a classified balance sheet. (List current assets in order of liquidity.)
Note: See the third part of the attached excel file for the classified balance sheet.
A classified balance sheet can be described as a balance sheet that shows assets, liabilities, and shareholders' equity of a firm that are put or classified into different subcategories of accounts.
Note that in the attached excel file, the Income Statement and the Retained Earning Statement are prepared first in order to obtain the ending retained earning that is needed under the Stockholders' Equity in the classified balance sheet.
Gail Corporation is comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 160,000 shares of stock outstanding. Under Plan II, there would be 110,000 shares of stock outstanding and $1.4 million in debt outstanding. The interest rate on the debt is 7 percent, and there are no taxes. If Earnings Before Interest and Taxes (EBIT) is $650,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Earnings per share (EPS) are: 12.Under Plan I = $_______ 13.Under Plan ll = $______ 14.What is the break-even EBIT? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Break-even EBIT = $______
Answer:
a. Under Plan I
No debt.
EPS = Earnings / Number of shares
= 650,000 / 160,000
= $4.06 per share
b. Under Plan II
Debt of $1.4 million.
Interest = 7% * 1.4 million
= $98,000
EPS = (650,000 - 98,000) / 110,000 shares
= $5.02 per share
c. Breakeven point.
What amount of Earnings will equate the two plans.
Assume earnings is e.
e / 160,000 = (e - 98,000) / 110,000
e * 110,000 = 160,000 * (e - 98,000)
110,000e = 160,000e - 15,680,000,000
160,000e - 110,000e = 15,680,000,000
e = 15,680,000,000/50,000
e = $313,600
A project that will last for 10 years is expected to have equal annual cash flows of $103,900. If the required return is 8.4 percent, what maximum initial investment would make the project acceptable? Multiple Choice $638,392.96 $595,833.43 $1,534,047.75 $655,213.49 $684,772.10
Answer:
PV= $684,772.1
Explanation:
Giving the following information:
A project that will last for 10 years is expected to have equal annual cash flows of $103,900. If the required return is 8.4 percent.
First, we need to calculate the future value of the cash flows:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {103,900*[(1.084^10) - 1]} / 0.084
FV= $1,534,047.75
Now, we can determine the present value:
PV= FV/(1+i)^n
PV= 1,534,047.75 / (1.084^10)
PV= $684,772.1
Graciela Treadwell won a lottery. She will have a choice of receiving $25,000 at the end of each year for the next 30 years, or a lump sum today. If she can earn a return of 10 percent on any investment she makes, what is the minimum amount she should be willing to accept today as a lump-sum payment? (Round to the nearest hundred dollars.
A. $235,700
B. $750,000
C. $334,600
D. $212,400
Answer: A. $235,700
Explanation:
Minimum value will be the present value of the yearly payments for the next 30 years at 10%.
This is a steady amount so it is an annuity.
Present value of annuity = 25,000 * Present value annuity factor, 30 years , 10%
= 25,000 * 9.4269
= $235,672.5
= $235,700
suppose you want to open a shoe company sugges names for this
Answer:
New Kick
Boundless
Brave Sole
Laced
Determine the amount of depletion expense that would be recognized on the Year 1 income statement for each of the two reserves, assuming 14,800 tons of silver were mined and 510,000 board feet of lumber were cut. Determine the amount of depletion expense that would be recognized on the Year 2 income statement for each of the four reserves, assuming 29,000 tons of silver are mined, 370,000 board feet of lumber are cut, 4,200 tons of gold ore are mined, and 83,000 barrels of oil are extracted. Prepare the portion of the December 31, Year 2, balance sheet that reports natural resources.
Answer:
Kindly check the explanation section.
Explanation:
STEP ONE: calculate or Determine the depletion expense per unit. .
For oil reserves, the depletion expense = 1376000 - 0/ 257000 - 12000 = $5.76.
For timber, the depletion expense = 2080000 - 112000/ 1770000 = $1.11.
For silver mine, the depletion expense = 1840000 - 0/ 131000 = $14.05.
For Gold mine, the depletion expense = 3070000 - 0/63000 = $48.73.
STEP TWO : Determine or calculate the total depletion expense.
For the year 2018, the total depletion expense for; (a). silver mine= 14.05 × 14800 = $ 207,940.
(b). Timber = 1.11 × 51000 = $566100.
For 2019, the the total depletion expense for; (a). silver mine= 14.05 × 29000 = 407,450
(b). Timber = 1.11 × 370,000 = 410,700.
(c). Gold mine = 48.73 × 4200 = 204,666.
(d). Oil reserve = 5.76 × 83,000 = 478,080.
STEP THREE:
SILVER MINE: 1840000
- Accumulated depletion = ($ 407,450 + $ 207,940) = 615,390.
(1). Thus, 1840000 - 615,390 = 1,224,610.
GOLD MINE = 3070000.
Accumulated depletion = 204,666.
(2). Therefore, we have 3070000 - 204666 = 2,865,334.
TIMBER: 2080000.
Accumulated depletion = ( $566100 + 410,700) = 976,800.
Residual value of land = #112000.
(3). Therefore, (2080000 - 976,800) - 112,000 = 991,200.
OIL RESERVES: 1376000.
Accumulated depletion= 478,080.
(4). Therefore, 1376000 - 478,080 = 897,920.
Hence, we have the total natural resources = (1) + (2). + (3). + (4). =
1,224,610 + 2,865,334 + 991,200 + 897,920 = $ 5,979,064.
Therefore, 5,979,064 - 112,000 = $ 5,867,064.
Budgets are prepared in which of the following orders? Group of answer choices sales budget, production budget, direct materials purchases budget sales budget, cash budget, production budget production budget, cost of goods sold budget, direct labor budget production budget, sales budget, direct labor budget
Answer:
Sales Budget,
Production Budget,
Direct Materials Purchases Budget
Explanation:
The budgets are prepared so that the company could get to know how much revenue earned and the expenses to be incurred during a particular period of time. It gives an idea of how much would be earned and how much would be incurred
Here, in the following orders, the budgets could be prepared
Sales Budget,
Production Budget,
Direct Materials Purchases Budget
Canfield Technical School allocates administrative costs to its respective departments based on the number of students enrolled, while maintenance and utilities are allocated per square feet of the classrooms. Based on the information below, what is the total amount of administrative cost to the Accounting Department (rounded to the nearest dollar) if administrative costs for the school were $58,000, maintenance fees were $12,800, and utilities were $6,400
Answer: $10,357
Explanation:
Details were missing so I used details from a similar question.
Administrative costs are allocated based on the number of students enrolled.
There are 280 students enrolled and of these, Accounting has 50 students.
Administrative costs are $58,000.
Administrative cost to the Accounting Department is;
= 50/280 * 58,000
= $10,357
Suppose that Congress passes legislation making it more difficult for firms to fire workers. One example might be a law requiring severance pay for fired workers. The goal of this legislation is to reduce the rate of job separation without affecting the rate of job finding. Use this information to answer the following three questions. (Assume the size of the labor force remains constant.) If this legislation reduces the rate of job separation (s) without affecting the rate of job finding (f), how would the natural rate of unemployment change
Answer:
If the new law reduces the rate of job separation without affecting the rate of job finding, then, the natural rate of unemployment will fall.
This is because of the formula
U / L = s / (s + f)
Where U is unemployment, L is labor force, s is rate of separation, and f is rate of job finding.
The reason why the rate of natural unemployment will fall is because if employees are harder to fire, companies will be more careful when hiring workers, since the cost of firing a worker is now higher.
Lakeside, Inc. estimated manufacturing overhead costs for the year at $377,000, based on 180,000 estimated direct labor hours. Actual direct labor hours for the year totaled 196,000. The manufacturing overhead account contains debit entries totaling $391,000. The Manufacturing Overhead for the year was ________. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) A. $18,640 underallocated
Answer:
$18,640 over - applied
Explanation:
For calculating the over-allocated or under-allocated amount, first, we have to compute the predetermined overhead rate which is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)
= $377,000 ÷ 180,000 hours
= $2.09
Now we have to find the actual overhead i.e.
= Actual direct labor-hours × predetermined overhead rate
= 196,000 hours × $2.09
= $409,640
So, the ending overhead equals to
= Actual manufacturing overhead - actual overhead
= $391,000 - $409,640
= $18,640 over - applied
Catharine, Inc. is considering issuing additional long-term debt to finance an expansion. The company currently has $20 million in 5% debt outstanding. Its earnings after-tax (EAT) are $3.0 million, and its marginal and average tax rate is 40 percent. The company is required by the debt holders to maintain its times interest earned ratio at 3.0 or greater. How much additional 10 percent debt can Catharine, Inc issue now and maintain its times interest earned ratio at 3.0
Answer:
$10 million
Explanation:
Calculation for How much additional 10 percent debt can Catharine, Inc issue
First step is to find the EBT
EBT = $3.0 / (1 - 0.40)
EBT= $5.0
Second step is to find the EBIT
EBIT = $5.0 + $1.0
EBIT= $6.0
Third step is to find the Interest permitted using this formula
Interest permitted = EBIT / Times interest earned
Let plug in the formula
Interest permitted = $6.0 / 3.0
Interest permitted = $2.0
Fourth step is to find the Additional interest amount
Additional interest = $2.0 - $1.0
Additional interest = $1.0
Last step is to compute the Additional debt amount
Additional debt = $1.0 / 0.1
Additional debt= $10 million
Therefore the Additional debt will be $10 million
