Answer:
The description of the given question is described in the explanation section below.
Explanation:
Throughout my personal view, the cost including its combination wheel/tread sequence good or service should be set at $200 for Re-Tire. As the conventional wheel/air gear combined effect is $250 as well as the level of manufacture besides Re-Tire is about 20% lower than those for frequent tires.The profit of such a 20% reduction costs should be managed to pass forward with employees to gain the start promoting including the latest design and technical method that used produce such tires, and several other costs associated with that as well.The value proposition and perhaps even the accessibility added benefit will surely make clients consider buying but also setting up such tires, and also becoming frequent or long-term buyers of Re-Tire.On September 12, Vander Company sold merchandise in the amount of $4,600 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $3,175. Vander uses the periodic inventory system and the gross method of accounting for sales. On September 14, Jepson returns some of the merchandise. The selling price of the merchandise is $400 and the cost of the merchandise returned is $280. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Vander makes on September 18 is:
Answer:
Dr Cash 4,116
Dr Sales discounts 84
Cr Accounts receivable 4,200
Explanation:
Vander Company Journal entry
Dr Cash 4,116
(4,200-82)
Dr Sales discounts 84
Cr Accounts receivable 4,200
Calculation of Sales discounts
4,200*2%
=84
Merchandise
(4,600-400)
=4,200
Fit-for-Life Foods reports the following income statement accounts for the year ended December 31.
Gain on sale of equipment $ 6,250 Depreciation expensesOffice copier $ 500
Office supplies expense 700 Sales discounts 16,000
Insurance expense 1,300 Sales returns and allowances 4,000
Sales 220,000 TV advertising expense 2,000
Office salaries expense 32,500 Interest revenue 750
Rent expenses Selling space 10,000 Cost of goods sold 90,000
Sales staff wages 23,000 Sales commission expense 13,000
Prepare a multiple-step income statement.
Answer:
Fit-for-Life Foods
Multi Step Income Statement for the year ended 31 Dec
$ $
Sales $220,000
Sales Discounts $16,000
Sales returns & Allowances $4,000 $20,000
Net Sales $200,000
Cost of Goods Sold $90,000
Gross Profits $110,000
Expenses
Selling Expenses:
Rent Expenses Selling Space $10,000
Sales Staff Wages $23,000
TV Advertising Expense $2,000
Sales Commission Expense $13,000
Total Selling expenses $48,000 ($48,000)
General & Administrative expenses:
Office Supplies expense $700
Insurance expense $1,300
Office Salaries Expenses $32,500
Depreciation expense $500
Office Copier
Total general and administrative $35,000 ($35,000)
expenses
Operating Income $27,000
Other Revenues, gains expense and losses:
Gain on Sale of Equipment $6,250
Interest Revenue $750
Total other revenues gains $7,000 ($7,000)
expenses and losses
Net Income $20,000
Mike worked for Frank's Pizza as a driver and was an agent. His duties consisted of making deliveries along a designated route. One day Mike decided to see his girlfriend, Jackie, who lived 50 miles off his pizza route. While driving to his girlfriend's, Mike injured a pedestrian, Chuck. The accident was caused by Mike's negligent driving. Chuck is now suing both Mike and Frank's for personal injuries. Under the circumstances
A. Frank's is never liable for the negligent torts of its agents.B. Frank's is not liable because Mike was on a frolic of his own.C. Chuck can recover damages from both Frank's and Mike.D. Frank's is liable under the doctrine of respondeat superior.
Answer:
B. is not liable because Mike was on a frolic of his own.
Explanation:
Mike who is a dispatch rider, decided to see his girlfriend, Jackie, who lived 50 miles off his pizza route. He had an accident while driving to his girlfriend's, and injured a pedestrian, Chuck due to his negligent driving.
Under the circumstances, Frank's Pizza isn't liable because Mike was on a frolic of his own. Mike embarking on a 50 mile drive to see his girlfriend is frolicsome and outside the scope of his employment as a delivery agent.
Hence, this will absolve his employer from any liability as he wasn't working on the designated route at the time.
Mayall Corporation is developing standards for its products. Each unit of output of the product requires 0.92 kilogram of a particular input. The allowance for waste and spoilage is 0.02 kilogram of this input for each unit of output. The allowance for rejects is 0.11 kilogram of this input for each unit of output. The standard quantity in kilograms of this input per unit of output should be: Select one: a. 0.90 b. 0.92 c. 0.79 d. 1.05
Answer:
d. 1.05 kilograms
Explanation:
Since we are looking for the standard quatity in kilograms of input per unit of out put we are going to sum up all the input for each unit of output in order to arrived at the standard quantity in kilograms.
Output unit required 0.92 kg
Add: waste and spoilage allowance 0.02 kg
Allowance rejected 0.11 kg
Standard quantity in kilograms 1.05 kg
Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process. The following describes production operations for October Direct materials used Direct labor used 30% in Shredding; 70% in Bagging. Predetermined overhead rate (based on direct labor) Transferred to Bagging Transferred to finished goods $234,000 $121,000 165% S205,500 $590,000 The company's revenue for the month totaled $470,000 from credit sales, and its cost of goods sold for the month is $254,000.
Prepare summary journal entries dated October 31 to record its October production activities for
(1) direct materials usage,
(2) direct labor incurred
(3) overhead applied,
(4) goods transfer from Shredding to Bagging,
(5) goods transfer from Bagging to finished goods,
(6) credit sales, and
(7) cost of goods
Answer:
Explanation:
Re-Tire General Journal entries
1.
Dr Work in process - Shredding $234,000
Cr To Raw material Inventory $234,000
2.
Dr Work in process - Shredding $36,300
DrWork in process - bagging $84,700
Cr To Factory Wages $121,000
3.
Dr Work in process - Shredding $59,895
Dr Work in process - bagging $139,755
Cr To Factory Overhead $199,650
4.
Dr Work in process - bagging $205 500
Cr To Work in process - Shredding $205,500
5.
Dr Finished Goods Inventory $590,000
Cr To Work in process - Bagging $590,000
6.
Dr Accounts Receivable $470,000
Cr To Sales Revenue $470,000
7.
Dr Cost of Goods Sold $254,000
Cr To Finished Goods Inventory $254,000
Explanation:
2.
Work in process - Shredding
(121,000*30%) =$36,300
Work in process - bagging
(121,000*70%) =$84,700
To Factory Wages
(84,700+36,300) =121,000
3.
Work in process - Shredding
(36,300*165%)= $59,895
Work in process - bagging
(84,700*165%)= $139,755
To Factory Overhead
(139,755+59,895)=199,650
The dean of a highly reputed business school has decided to pursue a coveted accreditation for the college. To get the faculty's buy-in and support, she created a faculty-driven process whereby members of the faculty participate and carry out the accreditation process under her guidance. This approach has increased the commitment of the faculty, who now have a stake in seeing the process succeed and the goal of accreditation accomplished. What influence tactic did the dean use?
Answer:
Consultation.
Explanation:
In the scenario observed in the question, it can be seen that the dean used the consultation tactic.
This tactic can be defined as the influencing leader seeking support from others to influence a group. This is an effective approach to increase group satisfaction due to the value of democratic decision-making.
The benefits of this technique are described in the question, such as the increased commitment of the faculty, who are now interested in seeing the process succeed and the objective of accreditation fulfilled.
A stockbroker predicts whether a stock will go up or down by tossing a coin and so has a 50% chance of making a correct prediction. Another broker, who is skilled, has a 60% chance of making a correct prediction. You don’t know which broker is which, so you watch their predictions for three days. Each broker gets all three predictions correct. What are the relevant probabilities? How do you decide who is the skilled broker? Search entries or author
Answer:
A skilled broker will be right at 60% of time compared to 50%
Explanation:
Solution
Given that:
Now,
Let X be represented as = number of correct predictions/outcomes
X foll binomial distribution with n = 3 and p = 0.5 for broker who use a toss coin
Thus,
P(X = 3) = p^3 = 0.5^3 which gives us = 0.125
So,
For a skilled broker, Y goes with the binomial distribution with n = 3 and p is = 0.6
Then,
P(Y = 3) = 0.6^3 = 0.216
We can therefore conclude who is skilled broker by making large number of observations
Hence, we say that a skilled broker will be correct 60% of time compared to 50% .
The finance department is prone to unethical practices?
Explanation:
the unethical practices in accounting are more in proprietary, partnership and Private Limited companies. it is is at lower level in in public limited companies and MNCs.
The statement is correct that "The finance department is prone to unethical practices in private sector as compared to the public sector".
What is finance department?A finance department is the business unit in charge of receiving and managing funds on behalf of the organization. The department manages revenue and expenses while also ensuring that the firm runs smoothly and efficiently.
Money laundering, investment fraud, toxic loans, and violations of banking rules are only a few of the unethical actions performed by commercial banks.
Accounting unethical practices are more prevalent in proprietary, partnership, and Private Limited enterprises. It is lower in public limited firms and multinational corporations. Therefore, it can be concluded that The finance department is prone to unscrupulous behavior".
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Requirement 1. Fill in the missing amounts. Begin by completing the income statement.
Toad Company
Income Statement
For the Year Ended December 31, 2012
Sales. . . . . . . . . . . . . . . . . .
$575,000
Cost of goods sold. . . . . . .
Gross profit on sales. . . . . .
215,000
Administrative expenses. .
60,000
Operating income. . . . . . . .
Interest expense. . . . . . . . .
7,000
Income tax expense. . . . .
44,400
Net income. . . . . . . . . . . . .
Toad Company
Balance Sheet
At December 31, 2012
Cash. . . . . . . . . . . . . . . .
$ ?
Accounts payable. . .
$13,500
Accounts receivable. . . . .
12,500
Note payable. . . . . . .
8,800
Inventory. . . . . . . . . . . . .
43,000
Equipment. . . . . . . . . . . . . .
973,000
Contributed capital. .
610,000
Retained earnings. . .
?
Total. . . . . . . . . . . . . . . .
$1,124,500
Total
?
Answer:
Excerpt from Duty, Honor, Country / Every Man a King
General Douglas MacArthur / Huey P. Long
Duty, Honor, Country / Every Man a King
By: General Douglas MacArthur / Huey P. Long
Excerpt of Duty, Honor, Country
General Douglas MacArthur
.
Explanation:
Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 19.00% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price
Answer:
$38.74
Explanation:
Div₀ = $1.75
Div₁ = $2.0825
Div₂ = $2.4782
Div₃ = $2.6269 and grow at a 6% constant rate forever
required rate of return = 12%
using growing perpetuity formula to determine the terminal value of the stock in year 2 = $2.6269 / (12% - 6%) = $43.78
the stock's current price = $2.0825/1.12 + $2.4782/1.12² + $43.78/1.12² = $1.86 + $1.98 + $34.90 = $38.74
During 2009, Accent Toys Plc., which began business in October of that year, purchased 15,000 units of a toy at cost of $10 per unit in October. The toy sold well in October. In anticipation of heavy December sales, Accept purchased 7,000 additional units in November at a cost of $11 per unit. During 2009, Accent sold 18,000 units at a price of $15 per unit. Under the first in, first out (FIFO) method, what is Accent's cost of goods sold for 2009?
Answer:
$183,000
Explanation:
The computation of the cost of goods sold using the FIFO method is shown below:
= Number of units purchased × per unit + additional units purchased × per unit
= 15,000 units × $10 + 3,000 units × $11
= $150,000 + $33,000
= $183,000
Since there are 18,000 units are sold
out of which 15,000 are at $10 and the remaining 3,000 units are at $11 and the same is to be considered
Number of Employees Total Production Marginal Product of Labor Marginal Revenue Product 0 0 0 1 18 18 2 30 12 3 41 11 4 46 5 If the price of the item is $10.00 per unit and the employees cost $100 each, how many employees should the firm hire to maximize their profit
Answer:
3 workers
Explanation:
Number of Total Production Marg. Product Marg. Revenue
employees of Labor Product
0 0 0 0
1 18 18 $180
2 30 12 $120
3 41 11 $110
4 46 5 $50
in order to maximize profits, the company must produce until the marginal revenue product ≥ cost of hiring an additional worker. In this case, the company should hire 3 workers since the MRP ($110) ≥ $100.
An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the first week of the calendar year are as follows: hours worked, 46; federal income tax withheld, $110; Social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment tax, 5.4% on the first $7,000; federal unemployment tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee? If required, round your answers to the nearest cent.
Answer:
Net pay $569.88
Explanation:
Let the gross earnings be:
$15 * 40 = $600
$15 * 1.5 * 6 = $135
$600+$135
=$735
Withheld Federal income tax = $110
Social security tax rate =0.06* $735
= $44.10
Medicare tax rate = 0.015* $735
= $11.02
Net pay $569.88
($735 - $110 - $44.10 - $11.02)
Amount to be paid to the each employee will be $569.88
Hayes Inc. provided the following information for the year 2015:
Beginning inventory 100 units
Units produced 750 units
Units sold 800 units
Selling price $ 150/unit
Direct materials $35/unit
Direct labor $16/unit
Variable manufacturing overhead $15/unit
Fixed manufacturing overhead $24,000/yr
Variable selling/administrative costs $8/unit
Fixed selling/administrative costs $15,500/yr
What is the unit product cost for the year using absorption costing?
Answer:
Unitary production cost= $98
Explanation:
Giving the following information:
Units produced 750 units
Direct materials $35/unit
Direct labor $16/unit
Variable manufacturing overhead $15/unit
Fixed manufacturing overhead $24,000/yr
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
First, we need to calculate the unitary fixed overhead:
Unitary fixed overhead= 24,000/750= $32
Unitary production cost= 35 + 16 + 15 + 32= $98
Flare Co. manufactures textiles. Among Flare's 2016 manufacturing costs were the following salaries and wages: Loom operators $ 129,000 Factory foremen 54,000 Machine mechanics 39,000 What was the amount of Flare's 2016 indirect labor
Answer: $93,000
Explanation:
Flare Co. manufactures textiles. As such the direct labour should be those directly involved in the Manufacturing of these textiles and all others will be considered Indirect Labour.
Looming refers to the weaving of fabric meaning therefore that it is directly related to the Manufacturing of textiles.
Factory Foremen only supervise the activities of the factory and so are not directly involved and Machine Mechanics ensure that machines are running smoothly and so are not directly involved either.
Indirect labor for 2016 is therefore,
= Factory Foremen + Machine Mechanics
= 54,000+ 39,000
= $93,000
There was a dispute between an automobile insurance company and its insured concerning value in the loss of a truck. The insurance policy required arbitration of disputes. Each party selected an arbitrator; then these two, when unable to agree, selected a third party as umpire. The umpire, without consulting anyone or receiving any testimony, fixed the value of the loss. If challenged, will a court set aside this award?Why or why not?
Answer: The court has no reason to set aside this award.
Explanation:
According to the facts of the case, the arbitrators for both parties were unable to decide and therefore they selected another third person which is the umpire) to help decide on the matter.
Under these circumstances, the third person who is the umpire becomes the chair and will act as a trial court. The umpire award is identical to a ruling given by the trial court and is enforced. The third party that is, the umpire isn't enforced to give any explanation or discussion before giving the award. In case the award isn't followed by any of the parties, it can be enforced by the court. The court has no reason to set aside this award.
When investors follow a "herd instinct," they:________A. invest in something as a group, making it appear more valuable than it is.B. make decisions as a group, inflating the prices of goods somewhat arbitrarily.C. invest in something simply because everyone else is doing it.D. None of these statements is true.
Answer:
The option is C is correct
Explanation:
Herd instinct refers to an inclination in people to think or reason like the majority.
When investors follow a herd instinct it simply mean that they invest in something simply because everyone is doing it. this is to say that an investor or investors is ready to take certain risk in any business that is seen as profitable on the long run or time period.
If the business is profitable and is seen as a good investment, in which everyone or investors are actively participating on it. other investors will key into the idea.
Percival Hygiene has $10 million invested in long-term corporate bonds. This bond portfolio's expected annual rate of return is 9%, and the annual standard deviation is 10%. Amanda Reckonwith, Percival's financial adviser, recommends that Percival consider investing in an index fund that closely tracks the Standard & Poor's 500 Index. The index has an expected return of 14%, and its standard deviation is 16%. The Treasury bill yield is 6%. A. Suppose Percival puts all his money in a combination of the index fund and Treasury bills. Can he thereby improve his expected rate of return without changing the risk of his portfolio measured as the standard deviation?B. Could Percival do even better by investing equal amounts in the corporate bond portfolio and the index fund? The correlation between the bond portfolio and the index fund is _.1.
Answer:
Explanation:
a)We find the portfolio weights first. For a two security portfolio
[tex]sP^2 = x_1^2s_1^2 + 2x_1x_2s_1s_2r_1_2 + x_2^2s_2^2[/tex]
[tex](0.10)^2 = 0 + 0 + x_2^2(0.16)^2[/tex]
x2 = 0.625 and x1 = 0.375
Then
rp = x1r1 + x2r2
rp = (0.375 ´ 0.06) + (0.625 ´ 0.14)
= 0.11
= 11.0%
Hence, he can improve the expected rate of return without any change in the risk of the portfolio.
b)
The expected return is:
rp = x1r1 + x2r2
rp = (0.5 *´ 0.09) + (0.5 ´* 0.14)
= 0.115 = 11.5%
[tex]sP^2 = x_1^2s_1^2 + 2x_1x_2s_1s_2r_1_2 + x_2^2s_2^2[/tex]
sP2 = (0.5)^2(0.10)^2 + 2*(0.5)(0.5)(0.10)(0.16)(0.10) + (0.5)^2(0.16)^2
sP2 = 0.0097
sP = 0.985 = 9.85%
Hence, he can never perform better by investing equal amount in bond portfolio and index fund. The expected return increases to 11.5% and standard deviation decreases to 9.85%.
Calculate the present value of a single amount (LOC-2) The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts with the following terms: Contract Terms Contract Amount Payment Date Derek $ 420,000 2 years Isabel 460,000 3 years Meredith 540,000 Today George 320,000 1 year Required: Assuming an annual discount rate of 10%, calculate the present value of the contract amount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.)
Answer:
Derek = $ 347,107.44
Isabel = $345,604.81
Meredith = $540,000
George = $290,909.09
Explanation:
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator:
Derek:
Cash flow in year 1 = 0
Cash flow in year 2 = $ 420,000
I = 10%
Present value =$$ 347,107.44
Isabel
Cash flow in year 1 and 2 = 0
Cash fkow in year 3 = 460,000
I = 10%
Present value = $345,604.81
George
Cash flow in year 1 = 320,000
I = 10%
Present value = $290,909.09
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
A firm is running 12 different ad campaigns in Brazil with a total budget of BRL 40 million (exchange rate: BRL 2.2517 per USD), but the campaigns do not appear to be effective. What would you recommend
Answer:
BRL 40 million is $90.068 million in America.
For 12 different ads, that is an average of about $7.5 million per ad.
My recommendations will be to check the effectiveness of the marketing strategy and the general approach towards the ad campaigns. It might be necessary for the company to narrow down on the number of campaigns or increase the funding available for the ad campaign. Also, the effectiveness of the methods of ad campaign can be compared to that of similar firms that has been successful with their ad campaigns, and necessary can then be made.
In the context of organization development techniques, coaching and counseling: a. focus exclusively on increasing productivity. b. provide assistance to individuals with achieving non-work-related objectives. c. provide nonevaluative feedback to individuals. d. are designed for managers and not executive employees. e. focus on how an individual is performing today.
Answer:
A
Explanation:
The general ledger of Zips Storage at January 1, 2018, includes the following account balances: Accounts Debits Credits Cash $ 25,300 Accounts Receivable 16,100 Prepaid Insurance 13,400 Land 155,000 Accounts Payable $ 7,400 Deferred Revenue 6,500 Common Stock 150,000 Retained Earnings 45,900 Totals $ 209,800 $ 209,800 The following is a summary of the transactions for the year: a. January 9 Provide storage services for cash, $141,100, and on account, $55,700. b. February 12 Collect on accounts receivable, $52,200. c. April 25 Receive cash in advance from customers, $13,600. d. May 6 Purchase supplies on account, $10,600. e. July 15 Pay property taxes, $9,200. f. September 10 Pay on accounts payable, $12,100. g. October 31 Pay salaries, $130,600. h. November 20 Issue shares of common stock in exchange for $34,000 cash. i. December 30 Pay $3,500 cash dividends to stockholders. The following information is available for the adjusting entries. Insurance expired during the year is $7,700. Supplies remaining on hand at the end of the year equal $3,600. Provide services of $12,500 related to cash paid in advance by customers.
Prepare the journal entries for transactions?, income statement and trial balance.
Answer:
Explanation:
The objective of this question is to prepare he journal entries for transactions?, income statement and trial balance.
To start with the journal entries:
Date Account Title and Explanation Debit $ Credit $
Cash 141,100
Jan 9, 2018 Accounts Receivable 57,000
Service Revenue 196,000
(To record service revenue)
Feb 12 Cash 52,200
Accounts Receivable 52,200
(To record cash collection on
accounts receivable )
Apr 25 Cash 13,600
Unearned Revenue 52,200
(To record cash in advance
from customers )
Ma 06 Supplies 10,600
Accounts Payable 10,600
(To record cash purchase of
supplies on account)
Jul 15 Property taxes 9,200
Cash 9,200
(To record payment of
Property taxes )
Sep 10 Account Payable 12,100
Cash 12,100
(To record payment on
accounts payable)
Oct 31 Salaries expense 130,600
Cash 130,600
(To record salaries paid)
Nov 20 Cash 34,000
Common stock 34,000
(To record issues of common
stock)
Dec 30 Dividends 3,500
Cash 3,500
(To record Cash dividends)
Adjusting entries:
Date Account Title and Explanation Debit $ Credit $
Dec 31 Supplied Expense ( $10,600 - 7000
$3,600)
Supplies 7000
(To record the supplies used )
Insurance Expense 7,700
Prepaid Insurance 7,700
(To record Insurance expired)
Unearned Revenue 12,500
Service Revenue 12,500
(To record unearned service
revenue)
As a result of bulkiness and wide columns for the income statement and trial balance which the text editor for typing the answer cannot contain; I've have created a word document showing the table format of the income statement and trial balance.
SEE BELOW FOR THE ATTACHED FILE.
Accounts Receivable Turnover and Days' Sales in Receivables American Eagle Outfitters, Inc. sells clothing, accessories, and personal care products for men and women through its retail stores. American Eagle reported the following data (in millions) for two recent years: Year 2 Year 1 Sales 3522 3283Accounts receivable 81 68Assume that accounts receivable (in millions) were $74 million at the beginning of Year 1 a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to two decimal places. Year 2: Year 1: b. Compute the day's sales in receivables for Year 2 and Year 1. Round interim calculations and final answers to one decimal place. Use 365 days per year in your $3,283 68 calculations. Year 2: Year 1: c. The change in accounts receivable turnover from year 1 to year 2 indicates a(n) a(n) days days in the efficiency of collecting accounts receivable and is___________ change. The change in the days' sales in receivables indicates a _________ change
Answer and Explanation:
The computation is shown below:
a. Account receivable turnover ratio is
= Net credit sales ÷ Average accounts receivable
where,
the Average accounts receivable would be
= (Accounts receivable, beginning of year + Accounts receivable, end of year) ÷ 2
For year 2
= ($3,522) ÷ ($81 + $68) ÷ 2
= 47.3 times
For year 1
= ($3,283) ÷ ($68 + $74) ÷ 2
= 46.2 times
b. The days sales in receivables is
= 365 days ÷ account receivable turnover ratio
For year 2
= 365 days ÷ 47.3 times
= 7.7 days
For year 1
= 365 days ÷ 46.2 times
= 7.9 days
c. As we can see that the change in accounts receivable turnover from year 1 to year 2 i.e from 46.2 times to 47.3 times is favorable change and it is increasing and the change in days sales in receivables from year 1 to year 2 i.e from 7.9 days to 7.7 days indicates a favorable change
On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 for Banes Domino's Company. Banes Domino's Company
Adjusted Trial Balance
March 31, 20--
1 Account Title Debit Credit 1
2 Cash 30,000.00
3 Accounts Receivable 45,200.00
4 Supplies 5,000.00
5 Equipment 169,900.00
6 Accumulated Depreciation 32,000.00
7 Accounts Payable 12,500.00
8 Jack Banes, Capital 71,600.00
9 Jack Banes, Drawing 47,000.00
10 Fees Earned 510,000.00
11 Salary Expense 244,500.00
12 Rent Expense 48,000.00
13 Depreciation Expense 25,000.00
14 Supplies Expense 9,500.00
15 Miscellaneous Expense 2,000.00
16 Totals 626,100.00 626,100.00
Required:
Journalize the four closing entries. Refer to the Chart of Accounts for exact wording of account titles. The journal should consist of 12 rows.
Chart of Accounts.
Banes Domino's CorporationGeneral Ledge
Assets
1 Cash
2 Accounts Receivable
3 Supplies
4 Equipment
5 Accumulated Depreciation
Liabilities
5 Accounts Payable
Equity
6 Common Stock
7 Retained Earnings
8 Dividends
9 Income Summary
Revenue
10 Fees Earned
Expenses
11 Salary Expense
12 Rent Expense
13 Depreciation Expense
14 Supplies Expense
15 Miscellaneous Expense
Answer:
Banes Domino's Company
Closing Entries
Date Acct.No Account Debit Credit
9 Income Summary 329,000.00
11 Salary Expense 244,500.00
12 Rent Expense 48,000.00
13 Depreciation Expense 25,000.00
14 Supplies Expense 9,500.00
15 Miscellaneous Expense 2,000.00
Expenses are closed to Income Summary Account.
10 Fees Earned 510,000.00
9 Income Summary 510,000.00
Revenue Accounts are closed to Income Summary Account.
9 Income Summary 181,000.00
Jack Banes, Capital 181,000.00
To close Income Summary Account
Jack Banes, Capital 47,000.00
Jack Banes, Drawing 47,000.00
To Close withdrawals account.
Jimmy Company uses the weighted-average method in its process costing system. The ending work in process inventory consists of 9,000 units. The ending work in process inventory is 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the cost per equivalent unit for the period is $3.75 for material and $1.25 for labor and overhead, what is the balance of the ending work in process inventory account? Select one: a. $41,625 b. $33,750 c. $45,000 d. $31,500
Answer:
The correct answer is A.
Explanation:
Giving the following information:
The ending work in process inventory consists of 9,000 units.
The ending work in process inventory is 100% complete for materials and 70% complete for labor and overhead.
The cost per equivalent unit for the period is $3.75 for material and $1.25.
First, we need to calculate the ending inventory in units for equivalent units:
Direct material= 9,000*1= 9,000 units
Conversion costs= 9,000*0.7= 6,300
Now, the cost of ending inventory:
Direct material= 9,000*3.75= 33,750
Conversion costs= 6,300*1.25= 7,875
Total cost= $41,625
Inventory, often known as stock, refers to the items and materials that a company keeps on hand with the intention of reselling, producing, or using them. Inventory management is largely concerned with defining the shape and location of stocked products.
The correct answer is A. $41,625
The ending work in process inventory consists of 9,000 units.
The ending work in process inventory is 100% complete for materials and 70% complete for labor and overhead.
The cost per equivalent unit for the period is $3.75 for material and $1.25.
Calculation of the ending inventory:
Direct material= [tex]9,000\times1[/tex]= 9,000 units
Conversion costs=[tex]9,000\times0.7[/tex]= 6,300
Now, the cost of ending inventory:
Direct material= [tex]9,000\times3.75[/tex]= 33,750
Conversion costs= [tex]6,300\times1.25[/tex]= 7,875
Total cost= $41,625
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Four highly similar and competitive income-producing properties located in close proximity to the subject property have sold this month. All four offer essentially the same amenities and services as the subject property. The sale prices and estimated first-year NOI for each of the comparable properties are as follows: Comparable Sale Price NOI1 A $1,450,000 $155,000 B $1,100,000 $135,400 C $1,250,000 $143,400 D $1,500,000 $169,000 Using the information provided, calculate the overall capitalization rate by direct market extraction assuming each property is equally comparable to the subject.
Answer: 11.43%
Explanation:
Capitalization rate is a real estate valuation measure that is used to compare and contrast different real estate investments.
The capitalization rate is calculated as shown below:
Capitalization rate of comparable A:
= Net operating income (NOI) / Sales price
= $ 155,000 / $ 1,450,000
= 0.1069
Capitalization rate of comparable B:
= Net operating income (NOI) / Sales price
= $ 135,400 / $ 1,100,000
= 0.1231
Capitalization rate of comparable C:
= Net operating income (NOI) / Sales price
= $ 143,400 / $ 1,250,000
= 0.1147
Capitalization rate of comparable D:
= Net operating income (NOI) / Sales price
= $ 169,000 / $ 1,500,000
= 0.1127
The overall capitalization rate will the be the average of all the 4 rates that we have calculated. This will be:
= (0.1069 + 0.1231 + 0.1147 + 0.1127) / 4
= 0.4574/4
= 0.1143 or 11.43%
Proposals L and K each cost $600,000, have 6-year lives, and have expected total cash inflows of $720,000. Proposal L is expected to provide equal annual net cash flows of $170,000, while the net cash flows for Proposal K are as follows:
Year 1 $250,000
Year 2 200,000
Year 3 100,000
Year 4 50,000
Year 5 100,000
Year 6 20,000
Total $720,000
Determine the cash payback period for each proposal. Round your answers to two decimal places, if necessary.
Answer:
Year 4 50,000
Explanation:
Winners and losers from tariff reductions Suppose that Canada imports pearl necklaces from India. The free market price is $80.00 per necklace. If the tariff on imports in Canada is initially 8%, Canadians pay $________ per necklace. One of the accomplishments of the Uruguay Round that took place between 1986 and 1993 was significant across-the-board tariff cuts for industrial countries, as well as many developing countries. Suppose that as a result of the Uruguay Round, Canada reduces its import tariffs to 4%. Assuming the price of pearl necklaces is still $______ per necklace, consumers now pay the price of per necklace. in Canada_______ and Based on the calculations and the scenarios presented, the Uruguay Round most likely in India
Answer:
a. $86.40 per necklace
b. $86.40 per necklace
c. $83.20 per necklace
Explanation:
free market price pf necklace is $80.00
Initial tariff on import = 8%
8% of $80.000 = 0.08 x $80.00 = $6.40
Canadians will therefore pay $80.00 + $6.40 = $86.40 per necklace
If tariff is reduced to 4%,
4% of $80.00 = 0.04 x $80.00 = $3.20
new price per necklace = $80.00 + $3.20 = $83.20 per necklace
Emerald Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2017: Expected production and sales $7,000 unitsExpected selling price per unit 680Total fixed costs $1,400,000 Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manu- facturing labor: Standard Quantity Standard Price Standard Unit CostDirect materials 10 pounds $ 8 per pound $ 80Direct manufacturing labor 3.7 hours $ 50 per hour $ 185 During 2017, actual number of units produced and sold was 4,800, at an average selling price of $720. Ac- tual cost of direct materials used was $392,700, based on 66,000 pounds purchased at $5.95 per pound. Direct manufacturing labor-hours actually used were 18,300, at the rate of $48 per hour. As a result, actual direct manufacturing labor costs were $878,400. Actual fixed costs were $1,170,000. There were no beginning or ending inventories.Required: 1. Calculate the sales-volume variance and flexible-budget variance for operating income. 2. Compute price and efficiency variances for direct materials and direct manufacturing labor.
Answer:
a) Sales volume variance = $1496000 unfavorable
flexible-budget variance = $192000 favorable
b) For direct materials
Price variance = `$135000 unfavorable
efficiency variances = $527920 favorable
For direct manufacturing labor
Price variance = `$36600 unfavorable
efficiency variances = $914815 favorable
Explanation:
a) Sales volume variance = (Actual units sold - Budgeted units sold) x Budgeted price per unit = (4800 - 7000) × $680 = $1496000 unfavorable
flexible-budget variance = (Actual price - Budgeted price) x Actual units sold= ($720 - $680) × 4800 = $192000 favorable
b) For direct materials
Price variance = (Actual cost - standard cost) x Actual quantity of units purchased = ($5.95/ pound - $8/pound) × 66000 pound= `$135000 unfavorable
efficiency variances = (Actual unit - Standard unit) x Standard cost per unit = (66000 pound - 10 pound) × $8 per pound= $527920 favorable
For direct manufacturing labor
Price variance = (Actual cost - standard cost) x Actual hours = ($48/hour - $50/hour) × 18300 hours = `$36600 unfavorable
efficiency variances = (Actual hours - Standard hours) x Standard cost per hour= (18300 hour - 3.7 hour) × $50/hour = $914815 favorable
In this exercise we have to use business knowledge to calculate the variance of each of the items requested in the given text, in this way we find that:
1) Sales volume variance, we can say that is unfavorable amd flexible-budget variance we can say that is favorable.
2) Price variance we can say that is unfavorable and efficiency variances is favorable. For direct manufacturing labor we can say that price variance is unfavorable and efficiency variances is favorable.
So calculating the variance for the items, we find that:
1)To calculate the variance in sales volume we will use the formula:
[tex](Actual \ units \ sold - Budgeted \ units \ sold) * (Budgeted \ price \ per\ unit )[/tex]
Replacing the values informed in the text, we find that:
[tex]= (4800 - 7000) * (680) = \$1.496.000[/tex]
So the variance in sales volume is equal to [tex]\$1.496.000[/tex] and we can also say that it is unfavorable.
To calculate the variance in flexible-budget we will use the formula:
[tex](Actual \ price - Budgeted \ price) * (Actual \ units \ sold)[/tex]
Replacing the values informed in the text, we find that:
[tex]= ($720 - $680) * 4800 = \$192000[/tex]
So the variance in flexible-budget is equal to [tex]\$192.000[/tex] and we can also say that it is favorable.
b) To calculate the variance in price variance we will use the formula:
[tex](Actual\ cost - standard\ cost) * (Actual\ quantity\ of\ units\ purchased)[/tex]
Replacing the values informed in the text, we find that:
[tex]= ($5.95 - $8) * (66000)= \$135.000[/tex]
So the variance in price variance is equal to [tex]\$135.000[/tex] and we can also say that it is unfavorable.
To calculate the variance in efficiency variances we will use the formula:
[tex](Actual \ unit - Standard \ unit) * Standard \ cost\ per\ unit[/tex]
Replacing the values informed in the text, we find that:
[tex](66000 - 10 ) * $8 = \$527.920[/tex]
So the variance in efficiency variances is equal to [tex]\$527.000[/tex] and we can also say that it is favorable.
To calculate the variance in price variance we will use the formula:
[tex](Actual \ cost - standard \ cost) * Actual\ hours[/tex]
Replacing the values informed in the text, we find that:
[tex]($48 - $50) * 18300 = \$36.600[/tex]
So the variance in price variance is equal to [tex]\$36.600[/tex] and we can also say that it is unfavorable.
To calculate the variance in efficiency variances we will use the formula:
[tex](Actual \ hours - Standard \hours) * Standard \ cost \ per \ hour[/tex]
Replacing the values informed in the text, we find that:
[tex](18300 - 3.7 ) * $50 = $914.815[/tex]
So the variance in efficiency variances is equal to [tex]\$914.815[/tex] and we can also say that it is favorable.
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Like many college students, Melanie applied for and got a credit card that has an annual percentage rate (APR) of 12%. The first thing she did was buy a new stereo system for $400. At the end of the month, her credit card statement said she only needed to make a minimum monthly payment of $15. Assume Melanie makes her payment when she sees her statement at the end of each month. If Melanie doesn't charge anything else and only makes the minimum monthly payments, approximately how many months would it take her to completely pay off the stereo system
Answer:
31.17 months
Explanation:
For computing the number of months required to pay off the stereo system we need to apply the NPER formula i.e be shown in the attachment below:
Given that,
Present value = $400
Future value = $0
Rate of interest = 12% ÷ 12 months = 1%
PMT = $15
The formula is shown below:
= NPER(Rate;PMT;-PV;FV;type)
The present value come in negative
So, after applying this, the number of months is 31.17 months