Answer:
Follows are the solution to the given choices:
Explanation:
[tex]\to CF_0 = -10600\\\\\to CF_1 to\ CF_4 = 1750\\\\\to CF_5 = 8500\\\\\to Rate =13.75 \%\\\\[/tex]
calculating NPV:
[tex]NPV = NPV(Rate,CF_1\ to \ CF_4) + CF_0[/tex]
[tex]= NPV(13.75 \% ,1750,1750,1750,1750,8500) -10600\\[/tex]
[tex]= \$ (1,011.40)[/tex]
Calculating the IRR for the project:
[tex]IRR = IRR(CFs) \\\\[/tex]
[tex]= IRR(-10600,1750,1750,1750,1750,8500)\\\\ = 10.63 \%[/tex]
Calculating the PI for the project:
[tex]PI = \frac{\text{PV of Future CFs}}{\text{Initial Investment}}[/tex]
[tex]= \frac{NPV(13.75 \% ,1750,1750,1750,1750,8500)}{10600}[/tex]
[tex]= \frac{\$ 9,588.60}{10600}\\\\ = 0.90[/tex]
So what's the plan payback time? (if it's never given directly by the venture, enter 0 for the reply).
[tex]\to 10600 - (1750+1750+1750+1750) = 3600\\\\[/tex]
The PB occurs in [tex]Y_5 = 4 + \frac{(8500-3600)}{8500}\\\\[/tex]
[tex]= 4 + \frac{(4900)}{8500}\\\\ = 4 + \frac{(49)}{85}\\\\ = 4.58 \ yrs[/tex]
The program's payback method, (if it's never paid back by the project, enter 0 for the answer)
Because CF's PV is $9,588.60, Disc Payback won't happen. '0' is the answer.
Pitkins Company collects 20% of a month's sales in the month of sale, 70% in the month following sale, and 6% in the second month following sale. The remainder is uncollectible. Budgeted sales for the next four months are: Cash collections in April are budgeted to be:
January February March April
$200,000 $300,000 $350,000 $250,000
Required:
What are the budgeted Cash collections for April?
Answer:
Total sales collection= $313,000
Explanation:
Giving the following information:
Cash collection:
20% of a month's sales in the month of sale
70% in the month following sale
6% in the second month following sale.
January February March April
$200,000 $300,000 $350,000 $250,000
Cash collection April:
Cash from sales in Arpil= (250,000*0.2)= 50,000
Sales on account March= (350,000*0.7)= 245,000
Sales on account February= (300,000*0.06)= 18,000
Total sales collection= $313,000
10. What do companies do to try to market to teenagers?
A Place newspaper ads for their products
B try to establish their brand as "cool"
C place their product on the bottom shelf in the grocery store
D use musicians from the 1960s in their commercials
Answer:
the answer is B. try to establish their brand as cool
Early in the current year, Amazon Co. purchased the Rio Silver Mine at a cost of $30,000,000. The mine was estimated to contain 400,000 tons of ore and to have a residual value of $7,500,000 after mining operations are completed. During the year, 115,000 tons of ore were removed from the mine. At year-end, the book value of the mine is: Multiple Choice $22,500,000. $6,468,750. $23,531,250. $30,000,000.
Answer:
Book value= $23,531,250
Explanation:
Giving the following information:
Purchased price= $30,000,000.
Residual value= $7,500,000
The mine was estimated to contain 400,000 tons of ore.
During the year, 115,000 tons of ore were removed from the mine.
First, we need to calculate the depletion for the year:
Annual depletion= [(original cost - salvage value)/useful life of production]*production for the year
Annual depletion=[(30,000,000 - 7,500,000) / 400,000]*115,000
Annual depletion= 6,468,750
Now, the book value:
Book value= purchase price - annual depletion
Book value= 30,000,000 - 6,468,750
Book value= $23,531,250
Straight-Line Depreciation Irons Delivery Inc. purchased a new delivery truck for $42,000 on January 1, 2019. The truck is expected to have a $2,020 residual value at the end of its 5-year useful life. Irons uses the straight-line method of depreciation. Required:
Answer:
Annual depreciation= $7,996
Explanation:
Giving the following information:
Purchase price= $42,000
Useful life= 5 years
Salvage value= $2,020
To calculate the annual depreciation under the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (42,000 - 2,020) / 5
Annual depreciation= $7,996
The demand for tickets to an Ethiopian Camparada film is given by D(p)= 200,000-10,000p, where p is the price of tickets. If the price of tickets is 12 birr, calculate price elasticity of demand for tickets and draw the demand curve
Answer:
a. The price elasticity of demand for tickets -1.50.
b. See the attached pdf file for the demand curve.
Explanation:
a. Calculate price elasticity of demand for tickets
Given;
p = 12
D(p) = D = 200,000 - 10,000p .................................................................... (1)
Substituting p = 12 into equation (1) to find the value of D, we have:
D = 200,000 – (10,000 * 12) = 200,000 - 120,000 = 80,000
Differentiating equation (1) with respect to p, we have:
dD/dp = -10,000
To calculate elasticity of demand, we use the formula for calculating the elasticity of demand as follows:
E = Elasticity of demand = (p / D) * (dD/dp) ................... (2)
Substituting the relevant values into equation (2), we have:
E = (12 / 80,000) * (-10,000) = 0.00015 * (-10,000) = -1.50
Therefore, the price elasticity of demand for tickets -1.50.
Note: Since the absolute value of E i.e. |-1.50| is greater one, it therefore implies that the demand for tickets is elastic.
b. Draw the demand curve.
Note: See the attached pdf file for the demand curve
To draw the demand curve, we need to obtain the new price and the new quantity demanded as follows:
We start by assuming that the price of tickets decreases from 12 birr to 11 birr. Therefore, the percentage change in price is obtained as follows:
Percentage change in price = ((New price – Old price) / Old price) * 100 = ((11 - 12) / 12) * 100 = -8.33%
To calculate the percentage change in demand for tickets, we use the following formula for calculating the elasticity of demand:
E = Percentage change in demand / Percentage change in price ............. (3)
Since from part a above, E = -1.50
And, as calculated here, Percentage change in price = -8.33%, or 0.0833
Substituting the values into equation (3) and solve for Percentage change in demand, we have:
-1.50 = Percentage change in quantity demanded / -0.0833
Percentage change in quantity demanded = (-0.0833) * (-1.50) = 0.12495, or 12.495%
Approximating to 2 decimal places, we have:
Percentage change in quantity demanded = 12.50%
Since the answer is positive, this implies that the demand for tickets D increases by 12.50% when price for tickets decreases by 8.33%. This confirms that the demand for tickets is truly elastic as the percentage change in demand for ticket of 12.50% is greater than the percentage change in price of -8.33%.
The new D can therefore be calculated as follows:
New D = D + (D * Percentage change in demand demanded) = 80,000 + (80,000 * 12.50%) = 90,000
From the calculations above, we have:
Initial price = 12 birr
New price = 11 birr
Initial quantity = D = 80,000
New quantity = New D = 90,000
The values above are then used to draw the demand curve in the attached pdf file.
Since there is a negative relationship between price and quantity demanded in economics, the curve in the attached excel file shows the effect of a decrease in the price of tickets from 12 birr to 11birr (as shown by the arrow) on the quantity demanded for tickets that increases from 80,000 to 90,000 (as shown by the arrow).
Since the demand for tickets is elastic as obtained in part a above, it implies that the percentage change in the quantity demanded for ticket is greater than the percentage change in the price of tickets. This makes the demand curve to be flatter as shown in the attached pdf file
From the demand curve in the attached pdf file; the demand curve for tickets is flatter, and the gap between the initial quantity demanded 80,000 and the new quantity demanded 90,000 is wider than the gap between the initial price 12 birr and the new price 11 birr. This indicated that the percentage change in the quantity demanded of 12.50% which is an increase from 80,000 to 90,000 is higher than the percentage n the price for tickets of 8.33% which is a decrease from 12 birr to 11 birr.
Dan is 30 years old and has 12 years of education. If his estimated wage equation is: , what is the marginal effect of an additional year of education on his wage?
Question is incomplete
Answer and Explanation:
However let us assume Wage function with number of education years is given by:
F(w)= 14+5x
Where W is wage, 120 is normal wage rate per hour without education, 5 is coefficient of X and multiplier effect of education on wage, X is number of education years
If Dan has 12 years of education, we substitute in the given equation
Wage w=14+5*12=$74 per hour
Marginal effect of Additional year of education is effect of one more year of education on wage rate:
W=14+5*13= $79 per hour
Therefore marginal effect of additional education year = $79 per hour - $74 per hour
=$5 per hour
Ramon had AGI of $165,000 in 2020. He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable charitable contribution deduction in each of the following independent situations, and indicate the treatment for any amount that is not deductible currently. Identify any planning ideas to minimize Ramon's tax liability.
Answer:
the situations are missing, so I looked for similar questions:
a. A cash gift of $68,500.
In the current year, Ramon may deduct $68,500 since his charitable contribution is limited to $165,000.
b. A gift of OakCo stock worth $68,500 on the contribution date. Ramon had acquired the stock as an investment two years ago at a cost of $61,650.
The stock's value for determining the contribution is $68,500 (fair market value). The deduction for 2020 is $49,500 (30% of AGI). The remaining $19,000 for years.
c. A gift of a painting worth $68,500 that Ramon purchased three years ago for $61,650. The charity has indicated that it would sell the painting to generate cash to fund medical research.
The contribution is valued at $61,650 (the charity will sell the painting immediately). The amount deductible in the current year is $61,650.
Explanation:
The charitable contribution limit was increased to 100% of AGI for 2020 by the CARES Act (Coronavirus Aid, Relief, and Economic Security Act).
Bambi Company manufactures fast-baking ovens in the United States at a production cost of $500 per unit and sells them to uncontrolled distributers in the United States and a wholly owned sales subsidiary in Canada. Bambi’s U.S. distributors sell the ovens to restaurants at a price of $1,000 and its Canadian subsidiary sells the ovens at a price of $1,100. Other distributors of similar ovens to restaurants in Canada can earn a gross profit (i.e., markup) of 25% of selling price. Bambi’s main U.S. competitor sells ovens at an average 50% markup on cost. Bambi’s Canadian subsidiary incurs operating costs (other than COGS), that average $250 per oven sold. The average operating profit margin earned by Canadian oven distributors is 5% (of sales). Sales $1,100 - cost 250 5%*1,100 = 55 profit Cost of goods sold = $795 1. Which of the following would be an acceptable transfer price under the resale price method? Show your calculations a. $700 b. $750 c. $795 d. $825 2. Which of the following would be an acceptable transfer price under the cost-plus method? Show your calculations a. $700 b. $750 c. $795 d. $825 3. Which of the following would be an acceptable transfer price under the comparable profits method? Show your calculations a. $700 b. $750 c. $795 d. $825
Answer:
1. d. $825
2. b. $750
3. c. $795
Explanation:
1. Transfer price under the resale price method
Acceptable price under resale method = Selling price of Subsidiary - Profit%
= $1,100 - 25%*$1,100
= $1,100 - $275
= $825
2. Transfer price under the cost-plus method
Cost plus method = Cost+Markup
= $500 + $500*50%
= $500 + $250
= $750
3. Transfer price under the comparable profits method
Comparable profits method = Selling price - Profit - Other costs
= $1,100 - $1,100*5% - $250
= $1,100 - $55 - $250
= $795
Analyze the following for ACME Fireworks Requirement 1: a-1. Calculate the current ratio at the end of January. a-2. If the average current ratio for the industry is 1.80, is ACME Fireworks more or less liquid than the industry average? multiple choice 1 More liquid Less liquid Requirement 2: b-1. Calculate the acid-test ratio at the end of January. b-2. If the average acid-test ratio for the industry is 1.50, is ACME Fireworks more or less likely to have difficulty paying its currently maturing debts (compared to the industry average)? multiple choice 2 More likely Less likely Requirement 3: c-1. Assume the notes payable were due on April 1, 2021, rather than April 1, 2022. Calculate the revised current ratio at the end of January. c-2. Indicate whether the revised ratio would increase, decrease, or remain unchanged. multiple choice 3 Decrease the current ratio Increase the current ratio Remain unchanged
Answer:
Current Ratio 2.41
more liquid
Acid test ratio 2.26
less likely
decrease the current ratio
Explanation:
Current Ratio = Total current assets / Total current liabilities
Current Ratio : 225,600 / 93,800 = 2.41
Quick Ratio : [ Total current Assets - Inventory ] / Total current liabilities
Quick Ratio : 212,400 / 93,800 = 2.26
The current ratio determines the company liquidity position. If the industry average ratio is less than the company's ratio than the company is assumed to be more liquid.
The quick ratio or acid test ratio determines company liquidity based on the most liquid assets. It usually excludes the inventory from the numerator.
The operations of Bridgeton Corporation are divided into the Adams Division and the Carter Division. Projections for the next year are as follows: Adams Division Carter Division Total Sales $ 560,000 $ 336,000 $ 896,000 Variable costs 196,000 154,000 350,000 Contribution margin $ 364,000 $ 182,000 $ 546,000 Direct fixed costs 168,000 140,000 308,000 Segment margin $ 196,000 $ 42,000 $ 238,000 Allocated common costs 84,000 63,000 147,000 Operating income (loss) $ 112,000 $ (21,000 ) $ 91,000 Operating income for Bridgeton Corporation as a whole if the Carter Division were dropped would be:
Answer:
$49,000
Explanation:
Operating Income = Sales - Variable Cost - Direct Fixed cost - Common Unavoidable Cost
Operating Income = $560,000 - $196,000 - $168,000 - ($84,000+$63,000)
Operating Income = $560,000 - $196,000 - $168,000 - $147,000
Operating Income = $49,000
Therefore, the operating income for Bridgeton Corporation when Carter Division was dropped is $49,000.
A cover letter should _____ a résumé. replace complement contradict be sent separately from
Answer:
complement
Explanation:
A cover letter or a Job application letter and the resume are sent together to potential employers. The cover letter details the position being applied for and the applicant's specific skills and experiences for that position. The letter allows the applicant to elaborate on why they are the best candidate for the job.
A resume provides the technical aspects of the applicant, but the cover letter show shows their personality. The applicant demonstrates their passion, interest, and why hiring them is the best decision in the cover letter. Therefore, a cover letter complements the resume.
Donghai transferred the following assets to Starling Corporation. Adjusted Basis Fair Market Value Cash $120,000 $120,000 Machinery 48,000 36,000 Land 108,000 144,000 In exchange, Donghai received 50% of Starling Corporation's only class of stock outstanding. The stock has no established value. However, all parties believe that the value of the stock Donghai received is the equivalent of the value of the assets she transferred. The only other shareholder, Rick, formed Starling Corporation five years ago. a.Donghai has a basis of $276,000 in the stock of Starling Corporation. b.Starling Corporation has a basis of $48,000 in the machinery and $108,000 in the land. c.Donghai has no gain or loss on the transfer. d.Starling Corporation has a basis of $36,000 in the machinery and $144,000 in the land.
Answer:
Option D
Explanation:
Starling Corporation has a basis of $36,000 in the machinery and $144,000 in the land.
Note: As Donghai transferred the assets to Starling Corporation. Option D is absolutely correct because Acquiring Company should record asset at fair value therefore Starling Corporation has to record machinery & Land at Fair value
On January 1, 2018, the general ledger of Big Blast Fireworks includes the following account balances:
Accounts Debit Credit
Cash $ 24,300
Accounts Receivable 42,500
Inventory 42,000
Land 79,600
Allowance for Uncollectible Accounts 2,700
Accounts Payable 29,200
Notes Payable (8%, due in 3 years) 42,000
Common Stock 68,000
Retained Earnings 46,500
Totals $ 188,400 $ 188,400
The $42,000 beginning balance of inventory consists of 420 units, each costing $100.
During January 2018, Big Blast Fireworks had the following inventory transactions:
January 3 Purchase 1,050 units for $115,500 on account ($110 each).
January 8 Purchase 1,150 units for $132,250 on account ($115 each).
January 12 Purchase 1,250 units for $150,000 on account ($120 each).
January 15 Return 160 of the units purchased on January 12 because of defects.
January 19 Sell 3,600 units on account for $576,000. The cost of the units sold is determined using a FIFO perpetual inventory system.
January 22 Receive $529,000 from customers on accounts receivable.
January 24 Pay $359,000 to inventory suppliers on accounts payable.
January 27 Write off accounts receivable as uncollectible, $2,100.
January 31 Pay cash for salaries during January, $110,000.
The following information is available on January 31, 2018.
a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
b. At the end of January, $5,200 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected.
c. Of the remaining accounts receivable, the company estimates that 5% will not be collected.
d. Accrued interest expense on notes payable for January.
1. Record adjusting entries on January 31 for the above transactions.
2. Interest is expected to be paid each December 31. Accrued income taxes at the end of January are $13,500.
3. Prepare an adjusted trial balance as of January 31, 2021.
4. Prepare a multiple-step income statement for the period ended January 31, 2021.
5. Prepare a classified balance sheet as of January 31, 2021.
6. Record closing entries.
Answer:
journal entriesJanuary 3 Purchase 1,050 units for $115,500 on account ($110 each).
Dr Inventory 115,500
Cr Accounts payable 115,500
January 8 Purchase 1,150 units for $132,250 on account ($115 each).
Dr Inventory 132,250
Cr Accounts payable 132,250
January 12 Purchase 1,250 units for $150,000 on account ($120 each). *110
Dr Inventory 150,000
Cr Accounts payable 150,000
January 15 Return 160 of the units purchased on January 12 because of defects.
Dr Accounts payable 19,200
Cr Inventory 19,200
January 19 Sell 3,600 units on account for $576,000. The cost of the units sold is determined using a FIFO perpetual inventory system.
Dr Accounts receivable 576,000
Cr Sales revenue 576,000
Dr Cost of goods sold 407,350
Cr Inventory 407,350
January 22 Receive $529,000 from customers on accounts receivable.
Dr Cash 529,000
Cr Accounts receivable 529,000
January 24 Pay $359,000 to inventory suppliers on accounts payable.
Dr Accounts payable 359,000
Cr Cash 359,000
January 27 Write off accounts receivable as uncollectible, $2,100.
Dr Bad debt expense 2,100
Cr Allowance for uncollectible accounts 2,100
January 31 Pay cash for salaries during January, $110,000.
Dr Wages expense 110,000
Cr Cash 110,000
adjusting entries
a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
Dr Cost of goods sold [110 units x ($120 - $100)] 2,200
Cr Inventory 2,200
b. At the end of January, $5,200 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected.
Dr Bad debt expense 1,560
Cr Allowance for uncollectible accounts 1,560
c. Of the remaining accounts receivable, the company estimates that 5% will not be collected.
Dr Bad debt expense 3,975
Cr Allowance for uncollectible accounts 3,975
d. Accrued interest expense on notes payable for January.
Dr Interest expense 280
Cr interest payable 280
Accrued income taxes at the end of January are $13,500.
Dr Income taxes expense 13,500
Cr Income taxes payable 13,500
adjusted trial balancedebit credit
Cash $84,300
Accounts Receivable $89,500
Inventory $11,000
Land $79,600
Allowance for Uncollectible Acc. $10,335
Accounts Payable $48,750
Interest payable $280
Income taxes payable $13,500
Notes Payable $42,000
Common Stock $68,000
Retained Earnings $46,500
Sales revenue $576,000
Cost of goods sold $409,550
Wages expense $110,000
Bad debt expense $7,635
Interest expense $280
Income taxes expense $13,500
Totals $805,365 $805,365
income statementSales revenue $576,000
COGS ($409,550)
Gross profit $166,450
Operating expenses:
Wages expense $110,000Bad debt expense $7,635 ($117,635)Operating profit (EBIT) $48,815
Interest expense ($280)
Income taxes expense ($13,500)
Net income $35,035
closing entriesDr Sales revenue 576,000
Cr Income summary 576,000
Dr Income summary 540,965
Cr Cost of goods sold 409,550
Cr Wages expense 110,000
Cr Bad debt expense 7,635
Cr Interest expense 280
Cr Income taxes expense 13,500
Dr Income summary 35,035
Cr Retained earnings 35,035
balance sheetAssets:
Current assets
Cash $84,300
Accounts Receivable, net $79,165
Inventory $11,000
Total current assets $174,465
Property, plant and equip.
Land $79,600
Total P, P & E $79,600
Total assets $254,065
Liabilities:
Current liabilities
Accounts Payable $48,750
Interest payable $280
Income taxes payable $13,500
Total current liabilities $62,530
Long term liabilities:
Notes Payable $42,000
Total long term liabilities $42,000
Stockholders' equity:
Common Stock $68,000
Retained Earnings $81,535
Total stockholder's equity $149,535
Total liabilities + stockholders' equity $254,065
What is corporation management
Answer: The process of leading.
Explanation: The process of leading, administrating and directing a company. Business tasks often performed by corporate management might include strategic planning, as well as managing company resources and applying them toward attaining the company's objectives.
Explanation:
The process of leading, administrating and directing a company. Business tasks often performed by corporate management might include strategic planning, as well as managing company resources and applying them toward attaining the company's objectives.
Ben and Carla Manchester plan to buy a condominium. They will obtain a $210,000, 20-year mortgage at 8.0 percent. Their annual property taxes are expected to be $2,676. Property insurance is $1,296 a year, and the condo association fee is $305 a month. Based on these items, determine the total monthly housing payment for the Manchesters. Use Exhibit 9-9. (Round time value factor to 2 decimal places and final answer to the nearest whole number.)
Answer:
$2,393
Explanation:
Property taxes and insurance can be added to the Manchester's monthly mortgage payment.
The mortgage payment without the property taxes or insurance expense = $210,000 / 119.5546 PV annuity factor, 0.667%, 240 periods) = $1,756.52
monthly installment for property taxes = $2,676 / 12 = $223
monthly installment for insurance expense = $1,296 / 12 = $108
condo association fee = $305
total monthly payment = $2,392.52 ≈ $2,393
Bowen Corporation owns 70 percent of Roan Corporation’s voting common stock. On March 12, 20X2, Roan sold land it had purchased for $140,000 to Bowen for $185,000. Bowen plans to build a new warehouse on the property in 20X3. Required: a. Prepare the worksheet consolidation entries to remove the effects of the intercompany sale of land in preparing the consolidated financial statements at December 31, 20X2 and 20X3. (If no entry is
Answer: Check attachment
Explanation:
The worksheet consolidation entries to remove the effects of the intercompany sale of land in preparing the consolidated financial statements at December 31, 20X2 and 20X3 has been prepared and attached.
Note:
Gain on land sale = 185,000 - $140,000
= $45,000
Investment in Roan Corporation:
= 70% × $45,000
= 0.7 × $45,000
= $31,500
Non controlling interest of Roan Corporation = $45,000 - $31,500
= $13,500
Check the attachment for further explanation.
The estimated current purchasing price of a discount bond with a face value of $ and a yield to maturity of
Answer:
The numbers are missing, so I looked for a similar question:
The estimated current purchasing price of a discount bond with a face value of $2,000 and a yield to maturity of 7% is ...
to determine the market price of discount bonds, we can use the following formula:
market price = face value / (1 + yield to maturity)
market price = $2,000 / (1 + 7%) = $2,000 / 1.07 = $1,869.16
To fund your dream vacation, you plan to save $1,475 per year for the next 15 years starting one year from now. If you can earn an interest rate of 6.25%, how much will you have saved for your vacation?
Answer:
FV= $34,993.05
Explanation:
Giving the following information:
Annual deposit= $1,475
Number of periods= 15 years
Interest rate= 6.25%
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {1,475*[(1.0625^15) - 1]} / 0.0625
FV= $34,993.05
What is the PV of an ordinary annuity with 10 payments of $2,700 if the appropriate interest rate is 5.5%?
Answer:
$20,352
Explanation:
Use the time value of money techniques to find the PV as follows :
n = 10
p/yr = 1
i = 5.5%
Fv = $0
Pmt = $2,700
PV = ?
Using a financial calculator to enter the values as above the PV is $20,352
If someone drank a six pack beer ($10) everday for ten years what would the opportunity cost be relative to putting that same money in a stock fund earning 7%
Your boss wants to purchase a graphics design application to be distributed to approximately 40 users in the company. Although the vendor says the application has broad OS support, your boss wants to be sure it will work on the five different OSs running on the company’s user workstations. He wants you to verify compatibility by using evaluation copies of the software without disrupting users or their computers. You have the installation disks for all five OSs your company uses, but you don’t have a lot of computers available to install the OSs. a. What’s your plan?
Explanation:
My plan is to use this same machine for testing more than one operating system available in more than one disk. Virtual machines can be run with more than one operating systems. Now this is the idea, firstly install the first operating system in a machine. After testing well enough, then reboot. Then install second operating system in same machine and also test. Follow this process for testing all the operating systems with the aid of installation disks without causing any Interference to the users in the company.
During 2021, WMC Corporation discovered that its ending inventories reported in its financial statements were misstated by the following material amounts: 2019 understated by $ 124,000 2020 overstated by 154,000 WMC uses a periodic inventory system and the FIFO cost method. Required: 1. Determine the effect of these errors on retained earnings at January 1, 2021, before any adjustments. (Ignore income taxes.) 2. Prepare a journal entry to correct the errors.
Answer:
WMC Corporation
Misstatement of Ending Inventories:
1. Effect of these errors on Retained Earnings at January 1, 2021:
a) The understated amount by $124,000 in 2019 has self-corrected in 2020 with the Beginning Inventory also understated. So, it has no effect on the Retained Earnings at January 1, 2021.
b) The overstated ending inventories by $154,000 will overstate the Retained Earnings at January 1, 2021 by the same amount. Since it has not self-corrected like (a), the correction will be to reduce the Retained Earnings and reduce the Beginning Inventories by $154,000.
2. Journal Entry:
Debit Retained Earnings $154,000
Credit Beginning Inventories $154,000
To reverse the overstated inventories.
Explanation:
a) Data:
2019 understated by $ 124,000
2020 overstated by 154,000
Inventory system = periodic
Inventory method = FIFO
Monica is going to college full-time to become a nurse, so she has to quit her job at the supermarket. Not having that weekly paycheck is considered a(n): *
Answer:
Opportunity cost
Explanation:
Opportunity cost is the sacrificed benefits in decision making. Making a decision involves selecting one option from several choices. The forfeited advantage from the next best alternative is the opportunity cost.
Monica has chosen to join college. She has sacrificed her job at the supermarket to make time for college. Her forfeited weekly pay from her job is the opportunity cost for joining college.
The SP Corporation makes 48,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is: Direct materials $ 10.70 Direct labor $ 9.70 Variable manufacturing overhead $ 4.05 Fixed manufacturing overhead $ 5.00 An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Corporation for this motor is $27.55. If SP Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be: Multiple Choice $240,000 ($91,200) $343,200 148,800
Answer:
f the company buys the component, income will decrease by $148,800.
Explanation:
We will take into account only the avoidable costs.
Make in-house:
Direct materials $ 10.70
Direct labor $ 9.70
Variable manufacturing overhead $ 4.05
Total unitary cost= $24.45
Buy:
Price= $27.55
We need to determine the total cost of both options:
Make in-house= 24.45*48,000= $1,173,600
Buy= 27.55*48,000= $1,322,400
Difference= 1,173,600 - 1,322,400= $148,800
If the company buys the component, income will decrease by $148,800.
Aggregate supply will shift when there is a change in all or any of the following EXCEPT __________.
Answer:
Government spending
Explanation:
Government spending influences demand, not supply.
Increased budget spending is expected to result in higher in aggregate demand. This will lead to faster growth in the near term. If investment is centered on infrastructure development, this could lead to improved efficiency and increased long-term aggregate supply.
Tyler wants to brand the new location with the service-oriented environment, providing timely and quality service for its customers. He believes that the use of technology would not only create that environment, but also show customers a well-managed business using technology. What alternatives could fulfill this branding for a restaurant? Should they use handheld devices to process customer orders at the tables? Would this be an efficient method of entering orders? What types of devices could be used?
Explanation:
For a restaurant, there are many technology options available to improve the quality of services for customers. Some interesting strategies to achieve Tyler's goal could be the development of a restaurant-specific application, where the customer can make reservations quickly, access the menu, place an order in advance or leave feedback on the products and services offered by the restaurant.
Using portable devices to process customer orders at tables could also be an efficient alternative for order entry, such as tablets or some software spread around the restaurant that would allow the customer to choose whether they prefer automated or personal service.
To be successful strategies, Tyler should conduct a survey and analyze the tastes and preferences of his potential audience, as there are more traditional restaurants frequented by an audience that still prefers personalized service by an employee who gives him tips and recommendations on the dishes served and wines for example.
It is also ideal to train the team so that new technologies are used well and the quality of service is faster and quality.
What 3 sources that offer specialized information on records management
The correct answer to this open question is the following.
Although there are no options attached, we can say the following.
The three sources that offer specialized information on records management are accounting records, legal records, and personal records.
Keeping records in management is a very important activity that can prevent many hardships and sufferings.
When a manager keeps records correctly, it knows what to look for, where, why, and as soon as possible. Information is a key resource in companies, so knowing where to find it is of the utmost importance.
Legal records and accounting records are the foundation of corporations. Personal records help us to better control our personal information when needed or helps the Human Resources department to properly manage our information as employees.
Kayla Sampson, an antiques dealer from Mankato, Minnesota, received her monthly billing statement for April for her MasterCard account. The statement indicated that she had a beginning balance of $600, on day 5 she charged $150, on day 12 she charged $300, and on day 15 she made a $200 payment. Out of curiosity, Kayla wanted to confirm that the finance charge for the billing cycle was correct. (a) What was Kayla’s average daily balance for April without new purchases?
Answer: $493.3
Explanation:
Kayla's average daily balance for April without new purchases will be:
We should note that she has opening balance of $600 for 14 days without purchase, $400 balance for 16 days from April 15-30. This will be:
= [($600 × 14) + ($400 × 16)]/2
= ($8400 + $6400)/30
= $14800/30
= $493.3
Baltimore Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of: Dollar Value Age of Account Estimated Collectible $165,000 < 30 days old 98% 75,000 30 to 60 days old 90% 40,000 61 to 120 days old 79% 11,000 > 120 days old 18% The current unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the Allowance for Doubtful Accounts? Round to nearest whole dollar.
Answer:
Baltimore Company
After the adjustment is made, the dollar balances in the Allowance for Doubtful Accounts will be $26,220 ($28,220 - $2,000) credit.
Explanation:
a) Data and Calculations:
Dollar Value Age of Account Estimated Collectible
$165,000 < 30 days old 98% $161,700
75,000 30 to 60 days old 90% 67,500
40,000 61 to 120 days old 79% 31,600
11,000 > 120 days old 18% 1,980
$291,000 $262,780
Uncollectible expense = $28,220 ($291,000 - $262,780)
Adjustment to the Allowance for Uncollectible accounts:
Unadjusted balance (debit) ($2,000)
Uncollectible expense $28,220
Adjusted balance (credit) $26,220
Sandersen Inc. sells minicomputers. During the past year, the company's sales were million. The cost of its merchandise sold came to $ million, and cash operating expenses were $; depreciation expense was $, and the firm paid $ in interest on its bank loans. Also, the corporation paid $ in the form of dividends to its own common stockholders. Calculate the corporation's tax liability by using the corporate tax rate structure in the popup window,
Question Completion:
Sandersen Inc, sells minicomputers. During the past year, the company's sales were 3.00 million. The cost of its merchandise sold came to 2.00 million, and cash operating expenses were 400,000; depreciation expense was 100,000, and the firm paid 150,000 in interest on its bank loans. Also, the corporation paid 25,000 in the form of dividends to its own common stockholders.
Calculate the corporation tax liability.
The corporate tax rates are listed here:
15% $0-$50,000
25% $50,001-$75,000
34% $75,001-$10,000,000
35% over $10,000,000
Answer:
Sandersen Inc.
Computation of the Corporation's Tax Liability:
Taxable profit = $350,000
15% $0-$50,000 $7,500 ($50,000 * 15%)
25% $50,001-$75,000 6,250 ($25,000 * 25%)
34% $75,001-$10,000,000 93,500 ($275,000 * 34%)
35% over $10,000,000 0
Total Tax Liability = $107,250
Explanation:
Data and Calculations:
Sales Revenue $3,000,000
Cost of goods sold 2,000,000
Gross profit $1,000,000
Operating expenses 400,000
Depreciation expense 100,000
Operating profit $500,000
Interest expense 150,000
Profit before taxes $350,000
Income Taxes 107,250
Profit after taxes $242,750
Dividend 25,000
Retained Earnings $217,750