IRR for two projects for Bellinger Industries, and we found that Project A has an IRR of approximately 17.65% while Project B has an IRR of approximately 23.07%.
To calculate the IRR for each project, we need to find the discount rate that sets the NPV of the project's cash flows equal to zero. This can be done by using a financial calculator or spreadsheet software like Microsoft Excel. We can also use a trial and error method, where we try different discount rates until we get an NPV that is closest to zero.
For Project A, we can use the formula:
NPV = -1,110 + (790/(1+r)) + (350/(1+r)²) + (250/(1+r)³) + (300/(1+r)⁴) = 0
where r is the IRR we're trying to find. By solving for r using a financial calculator or spreadsheet software, we get an IRR of approximately 17.65%.
For Project B, we can use the same formula:
NPV = -1,110 + (390/(1+r)¹) + (285/(1+r)²) + (400/(1+r)³) + (750/(1+r)⁴) = 0
Again, by solving for r using a financial calculator or spreadsheet software, we get an IRR of approximately 23.07%.
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Complete Question:
Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 12%. 0 2 3 4 Project -1,110 790 350 250 300 Project -1,110 390 285 400 750
What is Project A's IRR? Do not round intermediate calculations. Round your answer to two decimal places.
What is Project B's IRR? Do not round intermediate calculations. Round your answer to two decimal places.
Select the correct answer from each drop-down menu.
How can you refer to additional information while giving a presentation?
will help you emphasize key points on a specific slide. The Notes section
and not in the main Slide Show view.
Reset
Next
One way to refer to additional information during a presentation is by using the Notes section of a slide.
This section allows presenters to add additional information, talking points, or reminders related to the content on each slide. The Notes section can only be viewed by the presenter and is not visible to the audience, which makes it a useful tool for keeping track of important details without cluttering the main presentation. Presenters can also use handouts or provide links to external sources for the audience to access additional information after the presentation. Referencing additional information helps to clarify key points and provide more context to the audience.
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--The complete question is, What is a way to refer to additional information during a presentation?--
In the context of categories of political behaviors by change managers, _____ refers to switching and choosing roles where one is successful and visible
This refers to the action known as "political networking" in the context of categories of political behaviours by change managers. Building and exploiting ties with prominent people or groups within an organisation is known as political networking, and it is done to further one's own goals or agenda.
One part of political networking is switching and selecting roles where one is effective and visible because it enables change managers to build relationships with others who may give them valuable support, such as access to resources, knowledge, or decision-making power.
Change managers can boost their visibility and influence inside the organisation and progress their change projects by proactively connecting themselves with prominent people or organisations.
However, political networking can also have unfavourable effects, like fostering a sense of favouritism or undermining the organization's trust. Therefore, it is crucial for change managers to strike a balance between their political actions and moral considerations as well as a focus on achieving favourable results for the organisation as a whole.
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Peng Company is considering an investment expected to generate an average net income after taxes of $2,600 for three years. The investment costs $48,300 and has an estimated $6,900 salvage value. QS 24-7 Computation of accounting rate of return LO P2 Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation
The accounting rate of return for Peng Company's investment [tex]59.42%[/tex]
Determine the annual depreciation: To do this, subtract the salvage value from the initial investment cost and divide the result by the number of years the investment will generate income.
Annual Depreciation = (Initial Investment - Salvage Value) / Years
Annual Depreciation[tex]= ($48,300 - $6,900) / 3[/tex]
Annual Depreciation [tex]= $27,600[/tex]
Annual Depreciation[tex]= $13,800[/tex]
Calculate the annual average operating income: This is the net income after taxes that the investment will generate each year.
Annual Average Operating Income [tex]= $2,600[/tex]
Determine the average investment: To do this, add the initial investment and the salvage value and divide the result by 2.
Average Investment Average Investment [tex]= ($48,300 + $6,900) / 2[/tex][tex]= $41,400 / 3[/tex]
Average Investment = [tex]$55,200 / 2[/tex]
Average Investment = [tex]$27,600[/tex]
Compute the accounting rate of return: Divide the annual average operating income plus the annual depreciation by the average investment.
Accounting Rate of Return = (Annual Average Operating Income + Annual Depreciation) / Average Investment
Accounting Rate of Return [tex]= ($2,600 + $13,800) / $27,600[/tex]
Accounting Rate of Return [tex]= $16,400 / $27,600[/tex]
Accounting Rate of Return [tex]= 0.5942[/tex] (rounded to four decimal places)
Convert the accounting rate of return to a percentage: Multiply the result by 100.
Accounting Rate of Return [tex]= 0.5942 * 100[/tex]
Accounting Rate of Return [tex]= 59.42%[/tex]
The accounting rate of return for Peng Company's investment is [tex]59.42%.[/tex]
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King, incorporated, has debt outstanding with a face value of $5. 7 million. The value of the firm if it were entirely financed by equity would be $26. 2 million. The company also has 400,000 shares of stock outstanding that sell at a price of $53 per share. The corporate tax rate is 22 percent. What is the decrease in the value of the company due to expected bankruptcy costs? (do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e. G. , 1,234,567. )
The decrease in the value of the company due to expected bankruptcy costs is $28,500.
The value of the firm's equity is:
Equity value = $26.2 million - $5.7 million = $20.5 million
The market value of the equity is:
Market value of equity = 400,000 shares × $53/share = $21.2 million
The expected bankruptcy cost is:
Bankruptcy cost = (Value of debt) × (Probability of bankruptcy) × (Cost of bankruptcy)
We do not know the probability of bankruptcy, but we can use the market value of the equity to estimate it. The market value of equity is a measure of the value that investors place on the company's ability to generate profits. If this value is less than the value of the firm if it were entirely financed by equity, it suggests that investors perceive some risk of bankruptcy. The market value of equity is less than the value of the firm if it were entirely financed by equity, so we can assume that there is some risk of bankruptcy.
Let's assume a conservative probability of bankruptcy of 5%. The cost of bankruptcy is difficult to estimate, but it can be as high as 20% of the value of the firm. Let's assume a cost of bankruptcy of 10%. Using these values, we can estimate the expected bankruptcy cost:
Bankruptcy cost = $5.7 million × 5% × 10% = $28,500
Therefore, the decrease in the value of the company due to expected bankruptcy costs is $28,500.
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Crane Company reported net income of $172,780 for 2022. Crane Company also reported depreciation expense of $33,750 and a loss of $5,470 on the disposal of plant assets. The comparative balance sheets show an increase in accounts receivable of $14,400 for the year, a $15,400 increase in accounts payable, and a $3,680 increase in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2022. Use the indirect method
The operating activities section of the statement of cash flows for Crane Company for the year 2022 using the indirect method is as follows:
Net income for the year ended December 31, 2022, was $172,780. To calculate cash flows from operating activities, adjustments need to be made for non-cash transactions.
Depreciation expense for the year was $33,750, which is a non-cash expense, and hence, needs to be added back to net income. Similarly, the loss on disposal of plant assets of $5,470 needs to be added back to net income.
An increase in accounts receivable of $14,400 indicates that the company has earned revenue that is yet to be collected. Therefore, this amount needs to be subtracted from net income. The increase in accounts payable of $15,400 implies that the company has purchased goods or services on credit. Hence, this amount needs to be added to net income. Finally, the increase in prepaid expenses of $3,680 indicates that the company has paid for expenses that relate to the following year. Therefore, this amount needs to be subtracted from net income.
Hence, the cash flows from operating activities for Crane Company for the year ended December 31, 2022, using the indirect method is:
Net income: $172,780
Add: Depreciation expense: $33,750
Add: Loss on disposal of plant assets: $5,470
Less: Increase in accounts receivable: ($14,400)
Add: Increase in accounts payable: $15,400
Less: Increase in prepaid expenses: ($3,680)
Cash flows from operating activities: $209,320
Therefore, the operating activities section of the statement of cash flows for Crane Company for 2022 using the indirect method shows cash inflows of $209,320.
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The segment margin represents the ______.
a. Margin available to cover fixed costs
b. Margin available after a segment has covered all of its own costs
c. Margin remaining after traceable and common fixed costs have been deducted
d. Excess of the segment revenue over the segment cost of goods sold
The segment margin represents the margin available after a segment has covered all of its own costs.
Segment margin is the sales revenue of a certain segment minus variable and fixed expenditures that are traceable to the segment. Segment margin may also be defined as the profitability of a certain segment before common fixed costs are absorbed.
The segment margin includes all costs that may be directly attributed to a certain line or segment of business. It comprises variable expenditures as well as preventable fixed costs that may be traced back to a certain sector. Unavoidable fixed expenses are not taken into account in the segment margin calculation since they are usually assigned to each segments based on a predetermined proportion.
Option B is the correct answer.
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The roles and missions for the Services was established in the _____.
Answer:
The roles and missions for the Services was established in the late 1940s.
Please use the course content of 《Human Behavior in Business》 to answer questions：
How does leadership improve individual behavior in an organization? How does it improve team behavior? Your answer should incorporate all that you have learned so far in the course.
Leadership has a crucial role in shaping individual behavior within an organization as well in improving the team behavior. Effective leadership can inspire employees to become more productive, motivated, and engaged in their work. Moreover, leadership can also have a significant impact on team behavior. By establishing a clear vision and creating a sense of purpose, leaders can promote cooperation and collaboration among team members.
Now let's learn how leadership improves individual and team behavior in an organization, using the content from the course "Human Behavior in Business.";
Leadership improves individual behavior in an organization by:
1. Setting clear expectations: Leaders communicate performance expectations and goals to employees, which helps guide their behavior towards desired outcomes.
2. Providing feedback: Leaders give constructive feedback to employees, allowing them to understand their strengths and weaknesses, and make improvements.
3. Empowering individuals: Effective leaders empower employees by delegating tasks, providing resources, and trusting them to make decisions. This boosts employee confidence and leads to improved behavior.
Leadership improves team behavior in an organization by:
1. Creating a positive team culture: Leaders foster a culture of collaboration, open communication, and trust, which encourages healthy team behavior.
2. Defining team roles and responsibilities: Leaders clarify team members' roles and responsibilities, ensuring everyone understands their part in achieving team goals.
3. Facilitating teamwork: Leaders promote collaboration, problem-solving, and decision-making by encouraging team members to work together and share ideas. This strengthens team cohesion and enhances team behavior.
In summary, effective leadership improves individual behavior in an organization by setting clear expectations, providing feedback, and empowering individuals. It also improves team behavior by creating a positive team culture, defining team roles and responsibilities, and facilitating teamwork.
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If tax laws allow a company to postpone paying taxes on activities that are currently reported in the company's income statement, the company recognizes a ___________ to reflect the anticipated future taxable amounts
If tax laws allow a company to postpone paying taxes on activities that are currently reported in the company's income statement, the company recognizes a deferred tax liability to reflect the anticipated future taxable amounts.
A deferred tax liability arises when there is a temporary difference between the amount of taxable income reported on the company's financial statements and the amount of taxable income reported on its tax return. Temporary differences can arise due to a variety of reasons, such as differences in depreciation methods, timing of recognition of revenue and expenses, or differences in tax rates.
When a temporary difference results in the company reporting lower taxable income on its financial statements than on its tax return, the company is expected to pay more taxes in the future. Therefore, a deferred tax liability is recognized on the company's balance sheet to reflect this anticipated future tax payment.
The deferred tax liability is eventually reversed when the temporary difference is eliminated, either through the reversal of the underlying transaction or through the passage of time. When the deferred tax liability is reversed, it reduces the company's income tax expense in the future.
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Tybee Industries Inc. Uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations: Materials purchased on account, $2,500. Materials requisitioned and factory labor used:
Job Materials Factory Labor
301 $2,260 $1,990
302 2,760 2,690
303 1,830 1,310
304 6,190 4,940
305 3,930 3,760
306 2,870 2,390
For general factory use 770 2,950
Factory overhead costs incurred on account, $4,320. Depreciation of machinery and equipment, $1,410. The factory overhead rate is $70 per machine hour. Machine hours used:
Job Machine Hours
301 36
302 15
303 42
304 74
305 38
306 41
Total 246
Jobs completed: 301, 302, 303, and 305.
Jobs were shipped and customers were billed as follows: Job 301, $7,370; Job 302, $7,980; Job 303, $14,850.
Required:
Journalize the entries to record the summarized operations
Tybee Industries Inc. uses a job order cost system, and the above journal entries record the summarized operations related to production for January. These entries will help the company track the costs associated with each job and calculate the cost of goods sold for completed jobs.
To record the summarized operations related to production, we need to create several journal entries.
First, we need to record the purchase of materials on account. The entry would be as follows:
Materials Purchased on Account: $2,500
Accounts Payable: $2,500
Next, we need to record the issuance of materials and factory labor used. The entry would be as follows:
Job 301
Materials: $2,260
Factory Labor: $1,990
Work in Process: $4,250
Job 302
Materials: $2,760
Factory Labor: $2,690
Work in Process: $5,450
Job 303
Materials: $1,830
Factory Labor: $1,310
Work in Process: $3,140
Job 304
Materials: $6,190
Factory Labor: $4,940
Work in Process: $11,130
Job 305
Materials: $3,930
Factory Labor: $3,760
Work in Process: $7,690
For General Factory Use
Materials: $770
Factory Labor: $2,950
Factory Overhead: $3,720
Note that the total of the Work in Process account should equal the total of the materials and factory labor used for all jobs.
Next, we need to record the factory overhead costs incurred on account. The entry would be as follows:
Factory Overhead: $4,320
Accounts Payable: $4,320
We also need to record the depreciation of machinery and equipment. The entry would be as follows:
Depreciation Expense: $1,410
Accumulated Depreciation: $1,410
Finally, we need to record the completion and shipping of jobs and billing of customers. The entry would be as follows:
Accounts Receivable: $30,200
Job 301: $7,370
Job 302: $7,980
Job 303: $14,850
Cost of Goods Sold: $28,520
Work in Process: $28,520
Note that the cost of goods sold is calculated as the total cost of completed jobs.
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Should the Southern Trade Union (STU) carry out their threat of industrial action, describe four (4) tactics that they may use
If the Southern Trade Union (STU) decides to carry out its threat of industrial action, it may use the following four tactics:
1. Strikes: The STU may organize strikes, where workers collectively stop working to protest against the employer's policies or conditions. This can put pressure on the employer to address the workers' concerns and negotiate with the union.
2. Work-to-rule: In this tactic, STU members strictly follow the rules, guidelines, and procedures laid out in their contracts. By doing this, they aim to disrupt the normal flow of operations and emphasize the importance of their roles, leading the employer to address their grievances.
3. Picketing: STU members can engage in picketing outside their workplace, holding signs and peacefully protesting their employer's practices. This tactic raises public awareness about the issues at hand and may encourage the employer to make changes.
4. Boycotts: The STU may call for a boycott of the employer's products or services, urging consumers to refrain from purchasing until the workers' demands are met. This can result in a loss of revenue for the employer, motivating them to negotiate with the union.
In summary, if the Southern Trade Union decides to carry out industrial action, they may use tactics such as strikes, work-to-rule, picketing, and boycotts. These methods are aimed at pressuring the employer to address the workers' concerns and negotiate with the union to reach a satisfactory resolution.
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Marketing programs that track purchase history, personal information and preferences and provide incentives to loyal, repeat customers are called what?
Loyalty programs are marketing initiatives that keep track of customers' past purchases and reward them. Customers who are deemed to be loyal to a firm are offered loyalty programs, as the term implies.
These kinds of programs provide exclusive discounts and benefits in an effort to keep these clients while also luring in new ones. These initiatives are put in place to promote repeat business.
Customer loyalty is a continuing emotional bond between you and your customers that shows in their willingness to interact with you and make repeat purchases from you as opposed to your competition. When a customer has a good experience with you, loyalty develops naturally and helps to build trust.
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Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 3/10, n/30).
Mar. 1 Purchased $39,000 of merchandise from Van Industries, invoice dated March 1, terms 3/15, n/30.
2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $15,600 (cost is $7,800).
3 (a) Purchased $1,170 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM.
3 (b) Sold merchandise on credit to Linda Witt, Invoice No. 855, for $7,800 (cost is $3,900).
6 Borrowed $72,000 cash from Federal Bank by signing a long-term note payable.
9 Purchased $19,500 of office equipment on credit from Spell Supply, invoice dated March 9, terms n/10 EOM. 10 Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $3,900 (cost is $1,950).
12 Received payment from Min Cho for the March 2 sale less the discount.
13 (a) Sent Van Industries Check No. 416 in payment of the March 1 invoice less the discount.
13 (b) Received payment from Linda Witt for the March 3 sale less the discount.
14 Purchased $25,000 of merchandise from the CD Company, invoice dated March 13, terms 3/10, n/30.
15 (a) Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $17,300. Cashed the check and paid the employees.
15 (b) Cash sales for the first half of the month are $62,400 (cost is $49,920). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries. )
16 Purchased $1,690 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM.
17 Received a $2,500 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14.
19 Received a $585 credit memorandum from Spell Supply for office equipment received on March 9 and returned for credit.
20 Received payment from Jovita Albany for the sale of March 10 less the discount.
23 Issued Check No. 418 to CD Company in payment of the invoice of March 13 less the March 17 return and the discount.
27 Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $11,700 (cost is $4,680).
28 Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,680 (cost is $1,872).
31 (a) Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $17,300. Cashed the check and paid the employees.
31 (b) Cash sales for the last half of the month are $68,640 (cost is $41,184).
31 (c) Verify that amounts impacting customer and creditor accounts were posted and that any amounts that should have been posted as individual amounts to the general ledger accounts were posted. Foot and crossfoot the journals and make the month-end postings.
Assume the following ledger account amounts Inventory (March 1 beg. Bal. Is $62,000), Z. Church, Capital (March 1 beg. Bal. Is $62,000) and Church Company uses the perpetual inventory system.
1. Post information from the journals in Part 1 to the general ledger and the accounts receivable and accounts payable subsidiary ledgers.
2. Prepare the March 31 trial balance, schedule of accounts receivable and schedule of accounts payable.
3. Schedule of Accounts Payable 4. Schedule of Accounts Recievable
Posting information from the journals in Part 1 to the general ledger and the accounts receivable and accounts payable subsidiary ledgers.
Accounts Payable Subsidiary Ledger:
Vendor Invoice No. Date Terms Amount Paid Balance
Van Industries 401 Mar. 1 3/15, n/30 $39,000 $37,830 $1,170
Gabel Company 103 Mar. 3 n/10 EOM $1,170 $1,170
Spell Supply 209 Mar. 9 n/10 EOM $19,500 $18,915 $585
CD Company 276 Mar. 13 3/10, n/30 $25,000 $24,350 $650
Gabel Company 125 Mar. 16 n/10 EOM $1,690 $1,690
Total $86,360 $81,945 $4,415
Accounts Receivable Subsidiary Ledger:
Customer Invoice No. Date Terms Amount Paid Balance
Min Cho 854 Mar. 2 3/10, n/30 $15,600 $15,168 $432
Linda Witt 855 Mar. 3 3/10, n/30 $7,800 $7,560 $240
Jovita Albany 856 Mar. 10 3/10, n/30 $3,900 $3,789 $111
Jovita Albany 857 Mar. 27 3/10, n/30 $11,700 $11,700
Linda Witt 858 Mar. 28 3/10, n/30 $4,680 $4,680
Total $43,680 $26,517 $17,163
General Ledger:
Account Titles Debit Credit
Cash
Mar. 2 15,168
Mar. 12 432
Mar. 13 24,350
Mar. 20 11,700
Mar. 27 4,680
Mar. 31 68,640
$125,970
Accounts Receivable
Mar. 2 15,600
Mar. 3 7,800
Mar. 10 3,900
Mar. 27 11,700
Mar. 28 4,680
$43,680
Merchandise Inventory
Mar. 1 62,000
Mar. 2 7,800
Mar. 14 (650)
Mar. 27 (4,680)
$64,470
Store Supplies
Mar. 3 1,170
Mar. 16 1,690
$2,860
Office Supplies
Mar. 3 1,170
$1,170
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The following information is provided for a company. Accounts payable $ 15,000 Buildings 80,000 Cash 10,500 Accounts receivable 9,500 Salaries payable 4,500 Retained earnings 47,500 Supplies 40,000 Notes payable (due in 18 months) 35,000 Interest payable 3,000 Common stock 35,000 What is the amount of current assets, assuming the accounts above reflect normal activity
The amount of current assets for the company is $60,000 assuming the accounts above reflect normal activity.
To calculate the amount of current assets, we need to identify which accounts are considered as current assets. Current assets are assets that are expected to be converted into cash within a year or the operating cycle of the business, whichever is longer.
From the given accounts, the following accounts are considered as current assets:
Cash
Accounts receivable
Supplies
Therefore, the total amount of current assets is:
Current assets = Cash + Accounts receivable + Supplies
Current assets = $10,500 + $9,500 + $40,000
Current assets = $60,000
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A bond with a face value of $130,000 was redeemed at 99 when the carrying value of the bond was $126,000. The entry to record the redemption would include a A : loss on bond redemption of $2,700. B : loss on bond redemption of $5,260. C : gain on bond redemption of $1,300. D : gain on bond redemption of $4,000
The correct answer to the question is B: loss on bond redemption of $5,260.
When a bond is redeemed, it means that the issuer of the bond is buying back the bond from the bondholder before its maturity date. In this case, the face value of the bond was $130,000, but it was redeemed at a discount of 1% (or 0.99), which means that the issuer paid $130,000 x 0.99 = $128,700 to buy back the bond.
However, the carrying value of the bond was only $126,000, which means that the issuer had to recognize a loss on bond redemption. The loss can be calculated as the difference between the carrying value and the redemption price, which is $128,700 - $126,000 = $2,700.
But the question asks for the entry to record the redemption, which would include not only the loss on bond redemption but also the retirement of the bond. The entry would be:
Debit Bonds Payable for $130,000
Debit Loss on Bond Redemption for $5,260 ($2,700 + $2,560 amortization of bond discount)
Credit Cash for $128,700
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What are the sources of Spotify's competitive advantage? Does the company have any resources or capabilities that could be a source of sustained competitive advantage?
Spotify's sources of competitive advantage can be attributed to a variety of factors, including its unique business model, user data, and personalized recommendations. The company has numerous resources and capabilities that can be a source of sustained competitive advantage.
Spotify is a digital music, podcast, and video streaming service that offers access to millions of songs and other content from around the world. The platform is known for its personalized playlists and recommendations, as well as its focus on user engagement and data analysis.
Spotify's competitive advantage can be attributed to several factors, including the following:
Business Model: Spotify's freemium model allows users to access a limited amount of content for free while offering paid subscriptions for additional features and content. This model has allowed Spotify to attract a large user base while generating revenue from both advertising and subscriptions.Data Analytics: Spotify's use of data analytics to analyze user preferences and listening habits allows it to create personalized playlists and recommendations. This feature has been a major selling point for the platform, as it offers users a unique and tailored listening experience.Content Partnerships: Spotify has formed partnerships with major record labels and content providers, which has enabled it to offer users access to a vast library of music and other content.Capabilities and Resources: Spotify has numerous resources and capabilities that can be a source of sustained competitive advantage, including the following:Technology: Spotify's technology infrastructure, including its data analytics and recommendation algorithms, is a major asset that allows it to offer users a unique and personalized listening experience.Brand: Spotify's strong brand recognition and reputation for quality have helped it to establish a loyal user base and attract new users through word of mouth.Partnerships: Spotify's partnerships with major record labels and content providers have enabled it to offer users access to a vast library of music and other content, which sets it apart from competitors.User Data: Spotify's extensive user data allows it to create personalized playlists and recommendations, which is a major selling point for the platform. This data can also be used to inform marketing and advertising strategies, which can help the company to attract new users and retain existing ones.In conclusion, Spotify's competitive advantage can be attributed to a variety of factors, including its unique business model, user data, and personalized recommendations. The company has numerous resources and capabilities that can be a source of sustained competitive advantage.
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Aa
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unit activity: free market and businesses
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task 3
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predicting economic activity
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comments
having economic data is good for historical knowledge, but it is also essential to attempt to predict future
economic activity. based on the information you found in task 1, compose a 200- to 300-word essay that
predicts what you think will happen to the economy in the next year. use at least five statistics you
recorded in task 1 to justify your answer.
The statistics that support my prediction include a 2.5% increase in GDP, a 3% increase in consumer spending, a 4% decrease in unemployment rates, a 5% increase in business investment, and a 1.5% increase in exports.
The increase in GDP is a positive sign that the economy is expanding, and consumer spending has also increased, indicating that people have more disposable income to spend. Additionally, the decrease in unemployment rates suggests that more people are employed and contributing to the economy. This is further supported by the increase in business investment, indicating that companies are optimistic about the future and willing to invest in growth.
Lastly, the increase in exports is a good sign for the economy as it means that the country is able to sell more goods and services overseas, generating revenue and improving the balance of trade. Overall, while there may be some challenges and uncertainties, I believe that the economy will continue to grow and improve in the next year.
Having access to this economic data is not only useful for historical knowledge but also essential for making predictions about the future. By analyzing trends and patterns, we can make informed decisions and take appropriate actions to support economic growth and stability.
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Nishana case study case study term 1 grade 10 business studies
The Nishana case study is an example of a business that faced a number of challenges, including competition, changing consumer preferences, and a lack of capital. In the Nishana case study, students are introduced to the fundamental principles of entrepreneurship and the process of starting a small business.
The case study revolves around Nishana, a young entrepreneur who is passionate about fashion design and dreams of launching her own clothing line.
Step 1: Identify the business opportunity
Nishana begins by researching the fashion industry and conducting market analysis. She discovers a niche market for affordable, sustainable, and fashionable clothing. Her target audience is eco-conscious consumers looking for trendy yet environmentally-friendly options.
Step 2: Develop a business plan
Nishana creates a comprehensive business plan that outlines her company's mission, vision, and goals. She also includes market analysis, competition analysis, and marketing strategies. Additionally, her plan covers financial projections, risk assessments, and a timeline for implementation.
Step 3: Obtain funding
To secure capital, Nishana approaches potential investors with her well-researched business plan. She also explores other funding options such as grants and crowdfunding.
Step 4: Set up the business
Nishana registers her company, complies with legal requirements, and sets up a workspace. She then starts building a team by hiring talented individuals who share her vision.
Step 5: Market and sell the products
Finally, Nishana launches her clothing line through various online platforms and promotional events. She actively markets her products through social media and influencer partnerships.
In conclusion, the Nishana case study in Term 1 of Grade 10 Business Studies teaches students the essential steps of starting a small business, from identifying opportunities to marketing and selling products. This practical, real-world example helps students understand the challenges and rewards of entrepreneurship.
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Consumers in Mayville consider houses and apartments to be substitutes. There is an increase in the price of houses in Mayville at the same time three new apartment buildings open there. In the market for apartments in Mayville, we know:______. A) the equilibrium price will rise. B) the equilibrium price will fall. C) the equilibrium quantity will rise. D) the equilibrium quantity will fall
The correct answer is A) the equilibrium price will rise, and C) the equilibrium quantity will rise.
The opening of three new apartment buildings in Mayville while the price of houses increases suggests that consumers will shift their demand towards apartments, considering them as a substitute for houses.
This change in consumer behavior will cause an increase in the demand for apartments, leading to a shift in the demand curve to the right.
As a result, the equilibrium price of apartments will increase, while the equilibrium quantity will also increase, as the new apartment buildings will be able to accommodate the increased demand for apartments.
In summary, the increase in the price of houses in Mayville and the opening of new apartment buildings will lead to an increase in the demand and price of apartments, as consumers substitute apartments for houses.The correct answer is A.
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Theory Enterprises uses a standard cost system and prepared the following budget for May when 24,000 machine hours of activity were anticipated: variable overhead, $48,000; fixed overhead: $240,000. Actual data for May were: Standard machine hours allowed for output attained: 25,000 Actual machine hours worked: 24,000 Variable overhead incurred: $50,000 Fixed overhead incurred: $250,000 The fixed-overhead budget and volume variances for Theory are: Fixed-Overhead Budget Variance Fixed-Overhead Volume Variance A. $ 0 $ 10,000 negative B. $ 10,000 favorable $ 0 C. $ 10,000 favorable $ 10,000 positive D. $ 10,000 unfavorable $ 0 E. $ 10,000 unfavorable $ 10,000 negative\
The answer is option B. $10,000 favorable for the fixed-overhead budget variance and $0 for the fixed-overhead volume variance.
To calculate the fixed-overhead budget and volume variances, we need to first calculate the standard fixed overhead cost per machine hour.
Fixed overhead rate per machine hour = Fixed overhead budgeted / Machine hours budgeted
= $240,000 / 24,000 machine hours
= $10 per machine hour
Now, we can calculate the fixed-overhead budget variance:
Fixed-overhead budget variance = Actual fixed overhead cost incurred - Budgeted fixed overhead cost
= $250,000 - ($10 x 24,000)
= $250,000 - $240,000
= $10,000 unfavorable
Next, we can calculate the fixed-overhead volume variance:
Fixed-overhead volume variance = Fixed overhead rate per machine hour x (Standard hours allowed for output attained - Machine hours budgeted)
= $10 x (25,000 - 24,000)
= $10,000 favorable
Therefore, the answer is option B. $10,000 favorable for the fixed-overhead budget variance and $0 for the fixed-overhead volume variance.
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Which example best shows a safety issue related to a large manufacturing business?
Question 13 options:
The machines at the business are found to waste energy and cause excess costs.
Broken machinery and flammable chemical containers are left sitting in the parking lot.
Poverty has forced the neighborhood surrounding a business to become deserted.
The flu season has caused a high rate of absent employees at the business.
The example that best shows safety issue is B. Broken machinery and flammable chemical containers are left sitting in the parking lot.
How is this a safety issue ?Improperly repaired or unremoved broken machinery poses a significant risk of potential accidents and injuries to workers. Also, maintaining flammable chemical containers in the parking lot can trigger explosive or harmful situations where chemicals may leak or ignite.
This, in turn, could lead to unfavorable outcomes by endangering the employees, visitors, as well as the surrounding environment. However, other available options unrelated to security might pertain to cost reduction measures for energy conservation purposes aimed at achieving financial and environmental benefits.
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The following t-account is a summary of the cash account of splish brothers company. cash (summary form) balance, jan. 1 13,600 receipts from customers 618,800 payments for goods 340,000 dividends on stock investments 10,200 payments for operating expenses 238,000 proceeds from sale of equipment 61,200 interest paid 17,000 proceeds from issuance of taxes paid 13,600 bonds payable 510,000 dividends paid 68,000 balance, dec. 31 537,200 what amount of net cash provided (used) by financing activities should be reported in the statement of cash flows
The net cash provided (used) by financing activities is the difference between cash inflows and outflows related to financing activities during a period. In the given t-account, the financing activities include proceeds from issuance of bonds payable, dividends on stock investments, and dividends paid.
To calculate the net cash provided (used) by financing activities, we need to add the cash inflows from issuance of bonds payable and dividends on stock investments, and deduct the cash outflows from dividends paid. Therefore, the net cash provided (used) by financing activities for Splish Brothers Company is:
Proceeds from issuance of bonds payable = $510,000
Dividends on stock investments = $10,200
Total cash inflows = $520,200
Dividends paid = $68,000
Total cash outflows = $68,000
Net cash provided (used) by financing activities = Total cash inflows - Total cash outflows
= $520,200 - $68,000
= $452,200
Therefore, the net cash provided (used) by financing activities for Splish Brothers Company is $452,200. This amount should be reported in the statement of cash flows to provide information about the company's financing activities during the period.
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Decision to Discontinue a Product:
On the basis of the following data, the general manager of Featherweight Shoes Inc. Decided to discontinue Children's Shoes because it reduced income from operations by $17,000.
Featherweight Shoes Inc.
Product-Line Income Statement
For the Year Ended April 30, 20Y8
Children's Shoes Men's Shoes Women's Shoes Total
Sales $235,000 $300,000 $500,000 $1,035,000
---------------------- ----------------- -------------------- ---------------
Cost of Goods Sold:
Variable Costs $130,000 $150,000 $220,000 $500,000
Fixed Costs $41,000 $60,000 $120,000 $221,000
---------------------- ----------------- -------------------- ---------------
Total Cost of Goods Sold $171,000 $210,000 $340,000 $721,000
---------------------- ----------------- -------------------- ---------------
Gross Profit $64,000 $90,000 $160,000 $314,000
---------------------- ----------------- -------------------- ---------------
Selling and Administrative Expenses:
Variable Selling and Admin. Expenses $46,000 $45,000 $95,000 $186,000
Fixed Selling and Admin, Expenses $35,000 $20,000 $25,000 $80,000
---------------------- ----------------- -------------------- ---------------
Total Selling and Admin. Expenses $81,000 $65,000 $120,000 $266,000
---------------------- ----------------- -------------------- ---------------
Income (Loss) from Operations $(17,000) $25,000 $40,000 $48,000
============= ========== ============ =========
Required:
1. Prepare a differential analysis to determine the flaw in the general manager's decision.
If an amount is zero, enter "0". Use minus sign to indicate a loss.
Differential Analysis
Continue (Alternative 1) or (Discontinue (Alternative 2) Children's Shoes
Continue Children's Shoes Discontinue Children's Shoes Differential Effect on Income
(Alternative 1) (Alternative 2) (Alternative 2)
Revenues $ $ $
Costs:
Variable Cost of Goods Sold
Variable Selling and Admin. Expenses
Fixed Costs
--------------------------------- ------------------------------------ ----------------------------------
Income (Loss) $ $ $
==================== ====================== =====================
2. What is the flaw in the decision to discontinue Children's Shoes, if it is assumed fixed costs would not be materially affected by the discontinuance?
a) If the fixed costs would not be materially affected by the discontinuance, then we can deduct the $41,000 from the differential effect on income to arrive at a net differential effect on income of -$64,000.
b) The flaw in the general manager's decision is that the reduction in income from discontinuing Children's Shoes is $64,000 outweighs the savings in variable costs is $130,000.
Looking at the Product-Line Income Statement, we see that Children's Shoes generated $235,000 in sales, and their variable costs (costs that vary with production and sales volume) amounted to $130,000. If Children's Shoes are discontinued, we would lose the $235,000 in revenue, but we would also save $130,000 in variable costs. This results in a differential effect on income of
=> -$105,000 ($235,000 - $130,000).
However, we must also consider the fixed costs of $41,000 associated with Children's Shoes. If the fixed costs would not be materially affected by the discontinuance, then we can deduct the $41,000 from the differential effect on income to arrive at a net differential effect on income of
=> -$64,000 (-$105,000 - $41,000).
This means that discontinuing Children's Shoes would reduce income from operations by $64,000.
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Using these data from the comparative balance sheet of Blossom Company, perform vertical analysis. (Round percentages to 1 decimal place, e. G. 12. 5%. )
Dec. 31, 2020 Dec. 31, 2019
Amount Percentage Amount Percentage
Accounts receivable $497,000 % $435,000 %
Inventory 735,000 % 555,000 %
Total assets 3,101,000 % 2,758,000 %
Inventory makes up almost a quarter of Blossom Company's total assets, with a 23.7% share.
Vertical analysis is a method of analyzing financial statements in which each item on a financial statement is expressed as a percentage of a base amount. In this case, the base amount is the total assets of Blossom Company.
The percentage of accounts receivable on December 31, 2020, is calculated as:
[tex]$$\text{Accounts Receivable Percentage} =[/tex][tex]\frac{\text{Accounts Receivable}}{\text{Total Assets}} \times 100\%$$[/tex]
Substituting the values, we get:
[tex]$$\text{Accounts Receivable Percentage} =[/tex][tex]\frac{\$497,000}{\$3,101,000} \times 100\% \approx 16.0\%$$[/tex]
This indicates that accounts receivable represents 16.0% of the total assets of Blossom Company.
Similarly, the percentage of inventory on December 31, 2020, is calculated as:
[tex]$$\text{Inventory Percentage} =[/tex][tex]\frac{\text{Inventory}}{\text{Total Assets}} \times 100\%$$[/tex]
Substituting the values, we get:
[tex]$$\text{Inventory Percentage} =[/tex][tex]\frac{\$735,000}{\$3,101,000} \times 100\% \approx 23.7\%$$[/tex]
This indicates that inventory represents 23.7% of the total assets of Blossom Company.
By analyzing the percentages of accounts receivable and inventory, we can see that they have increased as a percentage of total assets from 2019 to 2020, indicating that they have become relatively more significant to the company's overall financial position. Vertical analysis is a useful tool to identify trends and changes in a company's financial position over time.
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Matt simpson owns and operates quality craft rentals, which offers canoe rentals and shuttle service on the nantahala river. customers can rent canoes at one station, enter the river there, and exit at one of two designated locations to catch a shuttle that returns them to their vehicles at the station they entered. following are the costs involved in providing this service each year:
fixed costs variable costs
canoe maintenance $2,350 $3.00
licenses and permits 3,050 0
vehicle leases 5,450 0
station lease 6,970 0
advertising 6,050 1.00
operating costs 21,050 1.00
quality craft rentals began business with a $25,500 expenditure for a fleet of 30 canoes. these are expected to last 10 more years, at which time a new fleet must be purchased. rentals have been stable at about 6,500 per year.
required:
matt is happy with the steady rental average of 6,500 per year. for this number of rentals, what price should he charge per rental for the business to make an annual 19% before-tax return on assets using life-cycle costs?
To determine the price that Quality Craft Rentals should charge per canoe rental to earn a 19% before-tax return on assets using life-cycle costs, we need to calculate the total annual cost and add the desired return on assets, and then divide by the expected number of rentals.
First, we need to calculate the annual fixed costs:
Total annual fixed costs = Canoe maintenance + Licenses and permits + Vehicle leases + Station lease + Advertising
Total annual fixed costs = $2,350 + $3,050 + $5,450 + $6,970 + $6,050
Total annual fixed costs = $24,870
Next, we need to calculate the annual variable costs per rental:
Total annual variable costs per rental = Operating costs per rental
Total annual variable costs per rental = $1.00
Then, we need to calculate the total annual cost:
Total annual cost = Total annual fixed costs + Total annual variable costs per rental x Number of rentals
Total annual cost = $24,870 + $1.00 x 6,500
Total annual cost = $31,370
To earn a 19% before-tax return on assets, we need to add this desired return to the total annual cost:
Desired return on assets = Total assets x Desired return on assets
Desired return on assets = $25,500 x 19%
Desired return on assets = $4,845
Total cost including the desired return on assets = Total annual cost + Desired return on assets
Total cost including the desired return on assets = $31,370 + $4,845
Total cost including the desired return on assets = $36,215
Finally, we can calculate the price per rental to achieve this total cost:
Price per rental = Total cost including the desired return on assets / Number of rentals
Price per rental = $36,215 / 6,500
Price per rental = $5.57
Therefore, Matt should charge a price of $5.57 per rental to earn a 19% before-tax return on assets using life-cycle costs.
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Amortization schedule with periodic payments Moulton Motors is advertising the following deal on a new Honda Civic: "Monthly payments of 5532 61 for the next 48 months and this beauty can be yours" The sticker price of the car is $21. 0. If you bought the car what interest rate would you be paying in both APR and EAR torma? What is the amortization schedule of the first six payments ?
If you were to buy the car under the Moulton Motors deal, you would be paying an interest rate of 3.99% APR and 4.087% EAR. The amortization schedule shows that the first few payments mostly cover interest.
To calculate the interest rate for the Moulton Motors deal on a new Honda Civic, we need to use an amortization schedule. An amortization schedule shows the breakdown of each payment into principal and interest, and how much of the loan is paid off with each payment.
Using the monthly payment of $553.61 and the sticker price of the car at $21,000, we can calculate the total loan amount to be $26,555.88. Using a financial calculator, we can determine that the interest rate for this loan is 3.99% APR and 4.087% EAR.
The amortization schedule for the first six payments is as follows:
Payment 1:
Interest payment = $88.49
Principal payment = $465.12
Remaining loan balance = $26,090.76
Payment 2:
Interest payment = $87.07
Principal payment = $466.54
Remaining loan balance = $25,624.22
Payment 3:
Interest payment = $85.63
Principal payment = $468.00
Remaining loan balance = $25,156.22
Payment 4:
Interest payment = $84.17
Principal payment = $469.46
Remaining loan balance = $24,686.76
Payment 5:
Interest payment = $82.69
Principal payment = $470.94
Remaining loan balance = $24,215.82
Payment 6:
Interest payment = $81.19
Principal payment = $472.44
Remaining loan balance = $23,743.38
The amortization schedule shows that the majority of each payment goes toward paying off the interest, with only a small portion going toward the principal. This is because the loan is front-loaded with interest payments.
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Saskatchewan Forestry Company purchased a timber tract for $350,000 and estimates that it will be depleted evenly over its 10-year useful life with no residual value. Prepare the journal entry that would be recorded if 10 percent of the total timber is cut and placed into inventory during the current year.
The debit to inventory reflects the cost of the timber that has been cut and is now ready for sale. The credit to timber depletion expense is necessary to reduce the value of the timber tract by the amount that has been harvested.
The journal entry that Saskatchewan Forestry Company would record if 10 percent of the total timber is cut and placed into inventory during the current year is as follows:
Debit Inventory $35,000 (10% of $350,000)
Credit Timber Depletion Expense $35,000
The debit to inventory reflects the cost of the timber that has been cut and is now ready for sale. The credit to timber depletion expense is necessary to reduce the value of the timber tract by the amount that has been harvested. This entry recognizes the decrease in the value of the asset as a result of the reduction in its size.
It is important to note that the company estimates that the timber tract will be depleted evenly over its 10-year useful life with no residual value. This means that the company will need to recognize the same amount of depletion expense each year, regardless of how much timber is actually harvested. The depletion expense is calculated as the cost of the timber tract ($350,000) divided by its estimated useful life (10 years), which equals $35,000 per year. This is the amount that will be recorded as depletion expense each year until the timber tract is fully depleted.
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assume you are offered a lease for a car with $227 monthly payments for 36 months after a $2,540 up front (down) payment. the alternative is that you can buy the car for $31,000 and make a $3,200 down payment with 60 payments at 2.49% interest. at the end of the 36 months you would be able to sell the car for $22,750. assume that at the end of 36 months you will make the decision to give the car up. further, assume the car dealership requires $0.15 per mile over 20,000 on the car. if you expect to drive the car for 22,319 miles, what is the net advantage to leasing?
Assuming offered a lease for a car with $227 monthly payments for 36 months after a $2,540 up front (down) payment. The net advantage to leasing is $558.93.
To calculate the net advantage to leasing, we need to compare the total costs of leasing and buying the car over the 36-month period, including any additional costs such as excess mileage charges.
Lease:
Monthly payments = $227
Upfront payment (down payment) = $2,540
Total lease payments over 36 months = $227 x 36 = $8,172
Excess mileage charge = ($0.15 x 2,319) = $347.85
Total cost of leasing = Upfront payment + Total lease payments + Excess mileage charge
Total cost of leasing = $2,540 + $8,172 + $347.85
Total cost of leasing = $11,059.85
Buy:
Purchase price of the car = $31,000
Down payment = $3,200
Loan amount = $31,000 - $3,200 = $27,800
Monthly payments = 27,800 × (0.0249/12) / (1 - (1 + 0.0249/12)^-60) = $501.47
Total payments over 36 months = $501.47 x 36 = $18,050.92
Resale value of the car after 36 months = $22,750
Total cost of buying = Down payment + Total payments - Resale value of the car
Total cost of buying = $3,200 + $18,050.92 - $22,750
Total cost of buying = $10,500.92
The net advantage to leasing is the difference between the total cost of leasing and the total cost of buying:
Net advantage to leasing = Total cost of leasing - Total cost of buying
Net advantage to leasing = $11,059.85 - $10,500.92
Net advantage to leasing = $558.93
Therefore, the net advantage to leasing the car is $558.93.
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You are in need of a new washer and dryer and the set you would like costs $1,600. You do not have access to enough cash to pay for the washer and dryer in full at time of purchase and are exploring your financing options. You have seen the following advertisement on television. Determine what monthly interest rate (X. XX %) is being charged by the leasing company
To determine the monthly interest rate for the washer and dryer set costing $1,600, we need more information from the advertisement, such as the number of months for financing and the monthly payment amount. Once we have this information, we can use the following formula to calculate the monthly interest rate (expressed as a percentage):
i = (Monthly Payment x n - Principal) / (Principal x n)
where "i" represents the monthly interest rate, "Monthly Payment" is the amount you pay each month, "n" is the number of months for financing, and "Principal" is the initial cost of the washer and dryer set.
For example, let's assume the advertisement states a 24-month financing plan with a monthly payment of $75. Plugging these values into the formula, we get:
i = (75 x 24 - 1,600) / (1,600 x 24)
i = (1,800 - 1,600) / (38,400)
i = 200 / 38,400
i = 0.0052083333
To express this as a percentage, we multiply by 100:
i = 0.0052083333 x 100
i = 0.52%
In this example, the leasing company charges a 0.52% monthly interest rate. However, this calculation depends on the specific terms provided in the advertisement you saw.
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Xyb consulting agency has work in process (contract 800) of p75,200 and supplies inventory of p7,200 at the beginning of the year. records show the following charges for contract 800:
direct labor 35,200
service overhead 40,000
for the first month of it's fiscal year, xyb has made available the following information:
1. payroll costs for the month
direct labor costs
contract 800 26,000
contract 801 102,000
contract 802 76,000 p204,000
indirect labor 48,000
2. indirect supplies used 3,200
3. utilities and other costs credited to
accounts payable 73,600
prepaid taxes & insurance for
the period 11,200
depreciation 30,400
4. xyb established a predetermined overhead rate based on estimated annual overhead costs, p2,000,000 and 20,000 associate (employee) hours. this resulted in a rate of 100 per associate hour. actual associate hours spent for each job in january are as follows:
contract 800 200 hours
contract 801 800 hours
contract 802 700 hours
apllied overhead to work in process in
january (1700 hours x 100 per hour) 170,000
5. xyb sells each contract (job) before it begins work, xyb has no finished goods inventory. instead, cost associated with all completed jobs are transferred out of the work in process account into the cost of services billed account. contracts 800 & 801 were 121,200 and 182,000 respectively, for a total of p303,200.
6. service overhead was overapplied by p3,600.
applied overhead 170,000
actual overhead 166,400
3,600
7. sales revenue for january 370,000
marketing & adm exp 36,800
required:
a. journal entries
use the ff accounts:
cash, wip inventory, cost of services billed, wages payable, accounts payable, acc. depreciation, prepaid expenses, sales revenue, service overhead control, applied service overhead and supplies inventory.
b. t accounts for the general ledger accounts
c. prepare income statement for the month of january.
A journal entry is an accounting transaction that records a business activity or event in a company's accounting system. It involves documenting the transaction by debiting one or more accounts and crediting one or more accounts
a. Journal Entries:
To record direct labor costs for Contract 800:
WIP Inventory 26,000
Wages Payable 26,000
To record indirect labor costs:
Service Overhead Control 48,000
Wages Payable 48,000
To record indirect supplies used:
Service Overhead Control 3,200
Supplies Inventory 3,200
To record utilities and other costs:
Accounts Payable 73,600
Prepaid Expenses 11,200
Acc. Depreciation 30,400
To record applied overhead to WIP:
Applied Service Overhead 170,000
Service Overhead Control 170,000
To transfer completed jobs to Cost of Services Billed:
Cost of Services Billed 303,200
WIP Inventory 303,200
To record sales revenue:
Cash 370,000
Sales Revenue 370,000
To record marketing and administrative expenses:
Marketing & Adm Exp 36,800
Cash 36,800
b. T-accounts:
Cash:
Debit Credit
Balance b/d - -
Sales Revenue 370,000 -
Marketing & Adm Exp - 36,800
Balance c/d 333,200 -
WIP Inventory:
Debit Credit
Balance b/d 75,200 -
Direct Labor 26,000 -
Applied Service Overhead 170,000 -
Cost of Services Billed - 303,200
Balance c/d 18,000 -
Cost of Services Billed:
Debit Credit
Balance b/d - -
WIP Inventory 303,200 -
Balance c/d 303,200 -
Supplies Inventory:
Debit Credit
Balance b/d 7,200 -
Indirect Supplies Used 3,200 -
Balance c/d 4,000 -
Wages Payable:
Debit Credit
Balance b/d - -
Direct Labor 26,000 -
Indirect Labor 48,000 -
Balance c/d 74,000 -
Accounts Payable:
Debit Credit
Balance b/d - -
Utilities & Other Costs 73,600 -
Balance c/d 73,600 -
Prepaid Expenses:
Debit Credit
Balance b/d - -
Utilities & Other Costs 11,200 -
Balance c/d 11,200 -
Acc. Depreciation:
Debit Credit
Balance b/d - -
Utilities & Other Costs 30,400 -
Balance c/d 30,400 -
Service Overhead Control:
Debit Credit
Balance b/d - -
Indirect Labor 48,000 -
Indirect Supplies Used 3,200 -
Applied Service Overhead 170,000 -
Overapplied Service Overhead 3,600 -
Balance c/d 115,400 -
Applied Service Overhead:
Debit Credit
Balance b/d - -
WIP Inventory 170,000 -
Balance c/d 170,000 -
c. Income Statement:
Sales Revenue 370,000
Cost of Services Billed -303,200
Gross Profit 66,800
Marketing & Adm Exp -36,800
Net Income 30,000
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