Answer:
1. a. 4.081%
2. c. $23,536.36
Explanation:
1. Periodic rate=(4.4%/4) = 1.1%
EAR=(1+APR/m)^m-1
where m=compounding periods
= (1+0.044/4)^4-1
= 1.011^4 - 1
= 1.04473133864 - 1
= 0.04473133864
= 4.47%
EAR=(1+APR/m)^m-1
where m=compounding periods
=(1+0.04/365)^365-1
= (1+0.00010958904)^365 - 1
= 1.00010958904^365 - 1
= 1.04080849272 - 1
= 0.04080849272
= 4.081%
2. A=P(1+r/365)^365*n
where A=future value, P=present value, r=rate of interest, n=time period.
= 22000*(1+9%/365)^(9/12*365)
= $23,536.36
The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Rails Division Locomotive Division Corporate Total Cost of goods sold $45,500 $31,400 Direct operating expenses 27,800 22,800 Sales 91,800 66,500 Interest expense $2,800 General overhead 18,400 Income tax 4,500 The income from operations for the Rails Division is a.$46,300 b.$91,800 c.$18,500 d.$64,000
Answer: $18500
Explanation:
The income from operations for the rail divisions will be calculated thus:
For the rail division,
Sales = $91800
Cost of goods sold = $45500
Direct operating expense = $27800
Income from operations:
= $91800 - $45500 - $27800
= $18500
During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000 and $18,000 has been written off. At the end of the year, company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 2.5%. The ending balance in the Allowance for Bad Debts would be ________. Prepare all necessary journal entries.
Answer:
the journal entry to record bad debt expense should be:
December 31, 202x, allowance for uncollectible accounts
Dr Bad debt expense 550
Cr Allowance for bad debts 550
The balance of the allowance for bad debts (uncollectible accounts) is $550.
Explanation:
Accounts receivable
debit credit
800,000
760,000
18,000
22,000
550
21,450
$22,000 x 2.5% = $550
When accounts were written off, the journal entry was:
Dr Bad debt expense 18,000
Cr Accounts receivable 18,000
Show how Cablevision can conduct an ROI analysis. Describe the information that the company should collect and how it should b collected.
Answer:
Explanation:
Cablevision can easily accomplish this by doing the following. First gather the number of sales of premium services and other products that non-trained individuals are accomplishing in a given time period (example, one month). Next, under the same conditions place the newly trained individuals and gather the same data from them (number of sales/subscribers gained, premium products, and other products). Finally, they would simply need to compare the difference in the number of sales to see if the training paid off. They would also need to calculate if the difference in sales surpasses the costs of training.
Kahn Company paid $240,000 to purchase a machine on January 1, Year 1. During Year 3, a technological breakthrough resulted in the development of a new machine that costs $300,000. The old machine costs $100,000 per year to operate, but the new machine could be operated for only $36,000 per year. The new machine, which will be available for delivery on January 1, year 3, has an expected useful life of four years. The old machine is more durable and is expected to have a remaining useful life of four years. The current market value of the old machine is $80,000. The expected salvage value of both machines is zero.
Required:
Based on this information, recommend whether to replace the machine. Support your recommendation with appropriate computations.
Answer:
Yes, the machine should be replaced
Explanation:
The computation is shown below:
Particulars old Machine New machine
Purchase price $300,000
Less:
Salvage value -$80,000
Operating cost $400,000 $144,000
($100,000 × 4 ) ($36,000 × 4)
Total cost $400,000 $364,000
So, the financial advantage is
= $400,000 - $364,000
= $36,000
Since there is a financial advantage of $36,000 so the old machine should be replaced with the new machine
ear Net Income Profitable Capital Expenditure 1 $ 14 million $ 8 million 2 18 million 11 million 3 9 million 6 million 4 20 million 8 million 5 23 million 9 million The Hastings Corporation has 2 million shares outstanding. (The following questions are separate from each other). a. If the marginal principle of retained earnings is applied, how much in total cash dividends will be paid over the five years? (Enter your answer in millions.)
Answer:
$42 Million
Explanation:
The computation of the total cash dividend is shown below:-
Year Net Income Profitable capital Expenditure Dividends
1 $14 Million $8 Million $6 Million
2 $18 Million $11 Million $7 Million
3 $9 Million $6 Million $3 Million
4 $20 Million $8 Million $12 Million
5 $23 Million $9 Million $14 Million
Total cash dividends $42 Million
A bank offers 8.00% on savings accounts. What is the effective annual rate if interest is compounded semi-annually?Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))
Answer:
Effective Annual Rate = 8.1600%
Explanation:
The effective annual rate the interest rate that is adjusted for compounding over a given period of time. It is given by the formula:
[tex]r = (1+\frac{i}{n})^n -1\\where:\\r = effective\ annual\ rate\\i = nominal\ interest\ rate\ = 8.00\% = 0.08 \\n = number\ of\ compounding\ periods\ per\ year\ = 2\ (semi-annually)[/tex]
[tex]r = (1+\frac{0.08}{2})^2 -1\\r = (1\ +\ 0.04)^2 - 1\\r = (1.04)^2 - 1\\r = 1.0816 - 1\\r = 0.0816\\r = 8.1600 \%[/tex]
Accounts receivable had a debit balance of $4,000 at the beginning of the period, and a debit balance of $3,000 at the end of the period. Credit sales for the period totaled $22,000. Using this information, cash receipts for the period totaled:
a. $26,000
b. $32,000
c. $28,000
d. $20,000
Answer:
$23,000
Explanation:
The computation of the cash receipts is shown below:
= Opening balance of account receivable + credit sales - ending balance of account receivable
= $4,000 + $22,000 - $3,000
= $23,000
We simply applied the above formula
Hence, the cash receipts is $23,000
The above is the answer.
The options that are given is wrong
A company reported net income of $260,000. Beginning balances in Accounts Receivable and Accounts Payable were $18,000 and $23,000 respectively. Ending balances in these accounts were $13,500 and $28,000, respectively. Assuming that all relevant information has been presented, what is the company's net cash flows from operating activities
Answer:
$260,500
Explanation:
Cash flow from Operating Activities
Net income $260,000
Adjustment for changes in working capital :
Decrease in Accounts Receivable ($4,500)
Increase in Accounts Payable $5,000
Net Cash From Operating Activities $260,500
Below is Salem Company’s income statement for 2019 that was prepared by an inexperienced accountant.
Salem Company
Income Statement
As of December 31, 2019
Revenues:
Sales revenue ……………..…………………………………… $298,000
Wages payable…………..……………………………………….. 4,000
Gain on sale of investment…………………………………….. 5,250
Deferred revenue………………………………………………. 2,500
Interest payable………………………………………………… 1,000
Accumulated depreciation……………………………………… 8,000
Total revenues ………………………………………………….. $318,750
Less operating expenses:
Selling expenses….……………………… …………………. $32,250
Research and development expense………………….…….. 4,75
Question Completion:
Research and development expense………………….…….. 4,750
Prepaid advertising …….…………………………………. 3,000
Indirect manufacturing labor cost..………………………… 16,200
Utilities expense..…. .....................………………………… 10,200
Direct manufacturing labor cost. ………………………..… 41,000
Factory equipment………………………………………….. 40,000
Insurance expense…………………….………………. …… 3,500
Restructuring costs………………………………………….. 4,000
Direct materials purchased………………………………..... 93,000
Interest expense……………………………………………. 1,750
Rent expense…..…………….………………. …………….. 18,000
Other factory indirect costs…………………………………. 3,000
Dividend paid………………………………………………. 1,500
Administrative expenses………………….…………………. 40,400
Short-term investment……………………………………… . 19,000
Total operating expenses …………………………………….. 331,550
Net operating loss …………………………………………….. ($10,800)
a. Seventy percent (70%) of utilities expense and 80% of insurance expense are for factory operations. Apply the remaining utilities and insurance expenses equally to selling expense and administrative expenses.
b. Sixty percent (60%) of the rent expense is associated with factory operations. Allocate the remaining rent equally to selling expense and administrative expenses.
c. Factory equipment was purchased January 1, 2017. It was estimated that the useful life of the equipment is 10 years and the residual value, $4,000. The $10,000 accumulated depreciation above is for 2017. No depreciation was charged for 2018. The company uses the double-declining balance method of depreciation.
d. Inventory balances are: January 1, 2018 December 31, 2018
Direct materials……………… $5,000 $6,600
Work-in-process ……………..$8,000 $10,000
Finished goods ……………$25,000 $28,000
e. The company’s tax rate is 21%. The president is disappointed with the results of operations and has asked you to review the income statement and make a recommendation as to whether the company should look for a buyer for its assets. Required:
1. As one step in gathering data for the president, prepare a corrected schedule of cost of goods manufactured for the year ended December 31, 2018.
2. As a second step, prepare a new multiple-step income statement for the year ended December 31, 2018.
3. Calculate the cost of producing one unit if the company produced 120,000 units in 2018 (round your answer to two decimal points).
Answer:
Salem Company
Income Statement
For the year ended December 31, 2019
Description Reference Amount ($) Amount ($)
Sales Revenue A 298,000.00
Cost of goods Sold:
Purchases - Change in Inventory 6,600.00
Direct Materials purchased 93,000.00
Direct Manufacturing labor cost 41,000.00
Manufacturing Costs:
Utilities Exp (70%) 7,140.00
Insurance Exp (80%) 2,800.00
Rent Exp (60%) 10,800.00 20,740.00
Total Cost of Goods Sold 161,340.00
Gross Profit $136,660.00
Operating Expenses:
Indirect Manufacturing labor cost 16,200.00
Other factory indirect cost 3,000.00
Selling Expenses 32,250.00
Utilities Exp (15%) 1,530.00
Insurance Exp (10%) 350.00
Rent Exp (20%) 3,600.00
Administrative Exp 40,400.00
R&D Expenses 4,750.00
Restructuring cost 4,000.00
Depreciation 7,200.00
Total Operating Expense 118,760.00
Operating Income $17,900.00
Non - Operating Expenses:
Interest Exp 1,750.00
Dividend Paid 1,500.00
Total Non- Operating Expense (3,250.00 )
Non-operating / Other Income
Gain on sale of investment 5,250.00
Total Non- Operating Income
Net Income before tax 19,900.00
Tax at 21% 4,179.00
Net Income after taxes $15,721.00
3. Assume company produced 120,000 units for year 2018, then cost per unit would be
Total cost of goods sold = $ 161,340 divided by 120,000 units
= $ 1.34 per unit
Explanation:
a) Data and Calculations:
Salem Company
Income Statement
As of December 31, 2019
Revenues:
Sales revenue ……………..…………………………………… $298,000
Wages payable…………..……………………………………….. 4,000
Gain on sale of investment…………………………………….. 5,250
Deferred revenue………………………………………………. 2,500
Interest payable………………………………………………… 1,000
Accumulated depreciation……………………………………… 8,000
Total revenues ………………………………………………….. $318,750
Less operating expenses:
Selling expenses….……………………… …………………. $32,250
Research and development expense………………….…….. 4,750
Depreciation= (40000-4000)*(100%/10yrs*2) = $7,200.00
Cantlay, Inc., earns pretax book net income of $800,000 in 2019. Cantlay acquires a depreciable asset that year, and first-year tax depreciation exceeds book depreciation by $80,000. Cantlay reported no other temporary or permanent book-tax differences. The pertinent U.S. Federal corporate income tax rate is 21% and Cantlay earns an after-tax rate of return on capital of 8%. What is Cantlay’s current income tax expense for the year?
Answer: $151,200
Explanation:
The Tax depreciation exceeds book depreciation so this excess will have to be removed from the income before tax is calculated as it is tax deductible.
Current Income Tax = (Pretax book income - Excess tax depreciation) * Income tax rate
= (800,000 - 80,000) * 21%
= $151,200
A machine with a cost of $150,000 and accumulated depreciation of $95,000 is sold for $70,000 cash. The amount that should be reported in the operating activities section reported under the direct method is:
Answer:
$0
Explanation:
The operating activities section of the cash flow statement under the direct method records the cash receipts with regard to sale of the products and the cash payments with regard to expenses
Therefore in the given case, it would be $0 as there is no transaction occured that should be reported in the operating activities section of the cash flow statement
The same is to be considered
If the budget at completion for a project is $200,000 and the cost performance index is .5, what is the estimate at completion
Answer:
$400,000
Explanation:
Estimate at completion in finance can be explained as forecast cost of a particular project. It can be estimated by using the expression below
Estimate at completion =[Budget at Completion] /(Cost Performance Index)
From the question, our budget at completion for a project = $200,000
cost performance index is = 0 .5,
Then just input the values we have,
Estimate at completion= 200000/0.5
=$400,000
Therefore, Estimate at completion is
$400,000
If $800 is borrowed at 8% interest, find the amounts due at the end of 4 years if the interest is compounded as follows. (Round your answers to the nearest cent.)(i) annually(ii) quarterly(iii) monthly(iv) weekly
Answer:
(i) $133.12
(ii) $297.6
(iii) $300.8
(iv) $301.6
Explanation:
From the compounding formula;
Future value = Present value [tex](1+\frac{r}{m}) ^{mn}[/tex]
where r is the rate, m is the number of payment per year, and n is the number of years.
Interest = future value - present value
Given that present value = $800, r = 8%, n = 4 years.
(i) annually,
m = 1, so that;
Future value = 800[tex](1.08)^{4}[/tex]
= $933.12
Interest = $933.12 - $800
= $133.12
(ii) quarterly,
m = 3, so that;
Future value = 800[tex](1+\frac{0.08}{3}) ^{(4x3)}[/tex]
= 800(1.372)
= $1097.6
Interest = $1097.6 - $800
= $297.6
(iii) monthly,
m = 12, so that;
Future value = 800[tex](1+\frac{0.08}{12}) ^{(4x12)}[/tex]
= 800(1.376)
= $1100.8
Interest = $1100.8 - $800
= $300.8
(iv) weekly,
m = 54, so that;
Future value = 800[tex](1+\frac{0.08}{54}) ^{(4x54)}[/tex]
= 800(1.377)
= $1101.6
Interest = $1101.6 - $800
= $301.6
Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. $3,000 cash deposit in checking account. $20,000 bond investment due in 20 years. $5,000 U.S. Treasury bill due in 1 month. $200, 3-year loan to an employee. $1,000 of currency and coins. $500 of accounts receivable.
Answer:
Total Cash and Cash Equivalent = $8,000
Explanation:
Particulars Amount (in $) Reason
Checking Account 3,000 Readily realizable
U.S. Treasury Bill 5,000 Due in 1 month
Currency and Coins 1,000 They are cash itself
Total Cash and Cash 8,000
Equivalents
If your business receives a loan for $40,000,
what account will you debit and what
account will you credit?
A. Debit Notes Payable and Credit Cash
B. Debit Cash and Credit Expenses
C. Debit Accounts Payable and Credit Cash
D. Debit Cash and Credit Notes Payable
the answer:
I would do c
Your firm has a credit rating of BBB. You notice the credit spread for 5yr maturity BBB debt is 1.1% or 110 basis points. Your firm's 5yr debt has a coupon rate of 6% with annual payments. You see that new 5yr Treasury bonds are being issued at par with a coupon rate of 2.6%. What should the price of your outstanding 5yr bonds be per $100 face value?
a. $110.33.b. $115.75.c. $123.71.d. $112.54.
Answer:
Bond Price = $110.3260609 rounded off to $110.33
Option A is the correct answer.
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual interest rate in the market will be,
Coupon Payment (C) = 100 * 0.06 = $6
Total periods (n) = 5'
i or market interest rate = 2.6% + 1.1% = 3.7%
We use the market interest rate for BBB rated bonds in the calculation. The market rate can be found by taking the risk free rate and adding the credit spread for BBB rating bond in this case. The market rate comes out to be 3.7%
The formula to calculate the price of the bonds today is attached.
Bond Price = 6 * [( 1 - (1+0.037)^-5) / 0.037] + 100 / (1+0.037)^5
Bond Price = $110.3260609 rounded off to $110.33
K Manufacturing would like to install a machine costing $37,500 with a life of 12 years to bring in benefits to the company of $5,100 per month. The monthly expenses for the machine are $4,650. If the MARR that the company uses is 12% per year, what should be the minimum salvage value as a percentage of the initial machine cost that the company should get at the end of the machine life to justify installing the machin
Answer:
$12,585
Explanation:
initial investment = -$37,500
then you have 143 cash flows = $5,100 - $4,650 = $450
the last cash flow = $450 + salvage value
we can use an annuity factor to determine the present value of the first 143 payments = $450 x 75.89853 (PV annuity factor, 1%, 143 periods) = $34,154.34
not considering the last cash flow, the NPV = -$37,500 + $34,154.34 = $3,345.66
we need to find the future value of $3,345.66:
FV = $3,345.66 x (1 + 12%)¹² = $13,034.61
the last cash flow = $13,034.61
salvage value = $13,034.61 - $450 = $12,584.61 ≈ $12,585
ACE Co. stock is not paying a dividend today, but has announced it will start paying a dividend in year 4 of $2.00 per share, and that will increase 5% per year forever. What is an estimate of the price of the stock today if r
Answer:
$77.22
Explanation:
the question is incomplete, so I looked for a similar question and found that Re = 9%
Div₀ = 0
Div₁ = 0
Div₂ = 0
Div₃ = 0
Div₄ = $2
the terminal value at year 3 = Div₄ / (Re - g) = $4 / (9% - 5%) = $100
in order to determine the current stock price we must discount $100 by 9% for 3 periods = $100 / 1.09³ = $77.22
Sampson Industries has an annual plant capacity of 70,000 units; current production is 59,000 units per year. At the current production volume, the variable cost per unit is $26.00 and the fixed cost per unit is $4.80. The normal selling price of Sampson's product is $41.00 per unit. Sampson has been asked by Caldwell Company to fill a special order for 7,000 units of the product at a special sales price of $20.00 per unit. Caldwell is located in a foreign country where Sampson does not currently operate. Caldwell will market the units in its country under its own brand name, so the special order is not expected to have any effect on Sampson's regular sales. Read the requirementsLOADING.... Requirement 1. How would accepting the special order impact Sampson's operating income? Should Sampson accept the special order? Complete the following incremental analysis to determine the impact on Sampson's operating income if it accepts this special order. (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in contribution margin and/or operating income from the special order.) Incremental Analysis of Special Sales Order Decision Total Order (7,000 units) Revenue from special order $140,000 Less expenses associated with the order: Less: Variable manufacturing cost 182,000 Contribution margin $(42,000) Less: Additional fixed expenses associated with the order – Increase (decrease) in operating income from the special order
Answer:
Sampson Industries
1. How would accepting the special order impact Sampson's operating income?
The acceptance of the special order will decrease Sampson's operating income by $42,000.
2. Should Sampson accept the special order?
No. Sampson should not accept the special order. It does not make any contribution in reducing the fixed costs. Instead, it decreases the net income. Special orders should be accepted when they add to the contribution in defraying the fixed costs, even if they do not add to the net income.
Explanation:
a) Data and Calculations:
Annual plant capacity = 70,000 units
Current production = 59,000
Variable cost per unit = $26.00
Fixed cost per unit = $4.80
Normal Selling price per unit = $41
Special order = 70,000
Price of special order = $20
Incremental Analysis of Special Sales Order Decision
Total Order (7,000 units)
Revenue from special order $140,000
Less expenses associated with the order:
Less: Variable manufacturing cost 182,000
Contribution margin $(42,000)
Less: Additional fixed expenses associated with the order –
Increase (decrease) in operating income from the special order ($42,000)
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3 per unit. Bluebird currently produces and sells 75,000 units at $7.00 each. This level represents 80% of its capacity. Production costs for these units are $3.50 per unit, which includes $2.25 variable cost and $1.25 fixed cost. If Bluebird accepts this additional business, the effect on net income will be:
Answer:
Effect on income= $11,250
Explanation:
Giving the following information:
Production costs:
Variable= $2.25
Special offer:
Selling price= $3
Units= 15,000
Because it is a special offer, and there is unused capacity, we will not take into account the fixed costs.
Effect on income= Number of units*unitary contribution margin
Unitary contribution margin= 3 - 2.25= $0.75
Effect on income= 15,000*0.75= $11,250
Monitor Muffler sells franchise arrangements throughout the United States and Canada. Under a franchise agreement, Monitor receives $760,000 in exchange for satisfying the following separate performance obligations: (1) franchisees have a five-year right to operate as a Monitor Muffler retail establishment in an exclusive sales territory, (2) franchisees receive initial training and certification as a Monitor Mechanic, and (3) franchisees receive a Monitor Muffler building and necessary equipment. The stand-alone selling price of the initial training and certification is $18,200, and $578,000 for the building and equipment. Monitor estimates the stand-alone selling price of the five-year right to operate as a Monitor Muffler establishment using the residual approach.
Monitor received $89,000 on July 1, 2016, from Perkins and accepted a note receivable for the rest of the franchise price. Monitor will construct and equip Perkin's building and train and certify Perkins by September 1, and Perkin's five-year right to operate as a Monitor Muffler establishment will commence on September 1 as well.
Required:
1. What amount would Monitor calculate as the stand-alone selling price of the five-year right to operate as a Monitor Muffler retail establishment?
2. What journal entry would Monitor record on July 1, 2016, to reflect the sale of a franchise to Dan Perkins?
3. How much revenue would Monitor recognize in the year ended December 31, 2016, with respect to its franchise arrangement with Perkins? (Ignore any interest on the note receivable.)
Total revenue
Answer:
1. $163,800
2. Dr Cash $ 89,000
Dr Notes receivable $ 671,000
Cr Deferred revenue $ 760,000
3. $ 607,120
Explanation:
1. Computation of the amount that Monitor would calculate as the stand-alone selling price
Total amount of franchise agreement $760,000
Less: stand-alone selling price of training $ (18,200)
Less: stand-alone selling price of building and equip $ (578,000)
Stand-alone selling price of five-year right $163,800
2. Preparation of journal entry that Monitor would record on July 1, 2016,
Dr Cash $ 89,000
Dr Notes receivable $ 671,000
(760,000-89,000)
Cr Deferred revenue $ 760,000
3. Calculation for the amount of revenue that Monitor would recognize in the year ended December 31, 2016,
Revenue to be recognised on:
1st Sep 2021:
Training $ 18,200
Building and Equipment sale $ 578,000
31st Dec 2021:
$163,800/60 Months*4 Months $ 10,920
Total Revenue to be recognized $ 607,120
Note that five-year will give us 60 months (5*12months and September to December will give us 4 months
Assume the sales budget for April and May is 48,000 units and 50,000 units, respectively. The production budget for the same two months is 45,000 units and 46,000 units, respectively. Each unit of finished goods required 3 pounds of raw materials. The company always maintains raw materials inventory equal to 20% of the following month's production needs. How many pounds of raw material need to be purchased in April
Answer:
Purchases= 135,600 pounds
Explanation:
Giving the following information:
The production budget for the same two months is 45,000 units and 46,000 units, respectively.
Each unit of finished goods required 3 pounds of raw materials.
To calculate the purchases for April, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 45,000*3 + (46,000*3)*0.2 - (45,000*3)*0.2
Purchases= 135,000 + 27,600 - 27,000
Purchases= 135,600 pounds
Given the data, the number of pounds of materials to be purchased in April is 135,600 pounds.
Data and Calculations:
April May
Sales units 48,000 50,000
Production units 45,000 46,000
Number of pounds of raw materials per unit = 3
Material Requirement:
April May
Production materials required 135,000 138,000 (46,00 x 3)
Ending inventory required 27,600 0
Total materials for production 162,600
Beginning inventory 27,000 27,600 (138,000 x 20%)
Purchases of materials 135,600
Thus, the number of pounds of raw materials to be purchased for April production is 135,600.
Learn more: https://brainly.com/question/24277943
II. In order to establish a p-chart with 3-sigma control limits, you have collected the following 10 samples of size 300.
Sample Defects Sample Defects
1 25 6 15
2 22 7 14
3 17 8 15
4 42 9 16
5 16 10 16
Required:
a. Determine CL, UCL, and LCL for the p-chart.
b. Is the process in statistical control? Explain.
Answer and Explanation:
Please find answer and explanation attached
A company purchased a weaving machine for $350,170. The machine has a useful life of 8 years and a residual value of $19,500. It is estimated that the machine could produce 769,000 bolts of woven fabric over its useful life. In the first year, 114,500 bolts were produced. In the second year, production increased to 118,500 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year
Answer:
$50955
Explanation:
Purchase value = $350170
Residual value = $19500
Total Production = $769000
Increase in production = $118500
Depreciation expense for second year = (Purchase value - Residual value)/Total Production * Increase in Production
Depreciation expense for second year = ($350170 - $19500 / $769000) * $118500
Depreciation expense for second year = $330670 / $769000 * $118500
Depreciation expense for second year = $50955
Link Communications programs voicemail systems for businesses. For a recent project, they charged $135,000. The customer secured this amount by signing a note bearing 7% interest on February 1, 2019. Required: 1. Prepare the journal entry to record the sale on February 1, 2019. Record sale 2. Determine how much interest Link will receive if the note is repaid on December 1, 2019. Round your answer to the nearest whole dollar. $ 3. Prepare Link's journal entry to record the cash received to pay off the note and interest on December 1, 2019. If an amount box does not require an entry, leave it blank. Record collection of note
Answer:
1) February 1, 2019, service revenue
Dr Notes receivable 135,000
Cr Service revenue 135,000
2) if the note is collected on December 1, 2019, the amount of interest revenue = $135,000 x 7% x 10/12 months = $7,875
3) December 1, 2019, cash collected
Dr Cash 142,875
Cr Notes receivable 135,000
Cr Interest revenue 7,875
Revenues and gains included in arriving at net income that do not provide cash.
Answer:
Non-cash revenues.
Explanation:
Non-cash revenues can be defined as revenues and gains included in arriving at net income that do not provide cash.
Basically, on the statement of cash-flow, non-cash revenues are considered not to be a real cash-flow because they don't add to the total inflow of cash.
Some examples of noncash revenues are amortization of premium relating to bonds payable, cash flow from investments that are carried under the equity method, accrued revenues, and gains from disposals of non-current assets.
The rate of economic growth per capita in France from 1996 to 2000 was 1.9% per year, while in Korea over the same period it was 4.2%. Per capita real GDP was $28,900 in France in 2003, and $12,700 in Korea. Assume the growth rates for each country remain the same.
Compute the doubling time for France’s per capita real GDP.
Compute the doubling time for Korea’s per capita real GDP.
What will France’s per capita real GDP be in 2045?
What will Korea’s per capita real GDP be in 2045?
Answer:
Per capita real GDP was $28,900 in France in 2003, and $12,700 in Korea. Assume the growth rates for each country remain the same. 1. Compute the doubling ... remain the same. 2. For Korea, the doubling time will be 72 ÷ 4.2 = 17.1years 3. ... Same with the above, there are 42yrs between 2003 and 2045.
Per capita real GDP was $28,900 in France in 2003, and $12,700 in Korea. We use the rule of 70. The doubling time for France’s per capita real GDP is 70/1.9 = 36.8 years, so France's GDP will double in 2040. Explanation:
You invested $1,400 in an account that pays 7 percent simple interest. How much more could you have earned over a 20-year period if the interest had compounded annually
Answer:
$4,017,56
Explanation:
The Future Value is the amount that you would have earned over the 20year period. This will be greater than the amount of the initial investment due to the interest compounded.
The Future Value (FV) is calculated as follows :
PV = - $1,400
I = 7 %
N = 20
P/yr = 1
PMT = $0
FV = ?
Using a financial calculator to in put the values as shown, the Future Value will be $5,417.56.
The Total Interest on this Investment was $4,017,56 ($5,417.56 - $1,400).
Check my work Check My Work button is now enabledItem 10Item 10 1.42 points Helix Company has been approached by a new customer to provide 2,000 units of its regular product at a special price of $6 per unit. The regular selling price of the product is $8 per unit. Helix is operating at 75% of its capacity of 10,000 units. Identify whether the following costs are relevant to Helix's decision as to whether to accept the order at the special selling price. No additional fixed manufacturing overhead will be incurred because of this order. The only additional selling expense on this order will be a $0.50 per unit shipping cost. There will be no additional administrative expenses because of this order. Calculate the operating income from the order.
Question Completion:
b. Direct materials cost of $1 per unit
c. Direct labor of $2 per unit
d. Variable manufacturing overhead of $1.50 per unit
e. Fixed manufacturing overhead of $0.75 per unit
f. Regular selling expenses of $1.25 per unit
g. Additional selling expenses of $0.50 per unit
h. Administrative expenses of $0.60 per unit
Answer:
Helix Company
1. Relevant Costs for special orders:
a. is not relevant
b. is relevant
c. is not relevant.
2. Operating income from the special order:
= $2,000
Explanation:
Special order = 2,000 units
Normal selling price = $8
Special selling price = $6
Operating capacity = 75%
Relevant selling expense = $0.50 per unit
Units being produced = 7,500 (10,000 * 75%)
Revenue from the special order:
Sales revenue = $12,000 ($6 * 2,000)
Cost of goods = $9,000 ($4.50 * 2,000)
Total expenses $1,000 ($0.50 * 2,000)
Operating income = $2,000
b. Direct materials cost of $1
c. Direct labor of $2
d. Variable manufacturing overhead of $1.50
Total variable manufacturing costs = $4.50
e. Fixed manufacturing overhead of $0.75 per unit
f. Regular selling expenses of $1.25 per unit
g. Additional selling expenses of $0.50 per unit
h. Administrative expenses of $0.60 per unit
Assume that if Ivanhoe Water accepts Clifton’s offer, the company can use the freed-up manufacturing facilities to manufacture a new line of growing lights. The company estimates it can sell 80,410 of the new lights each year at a price of $13. Variable costs of the lights are expected to be $10 per unit. The timer unit supervisory and clerical staff would be transferred to this new product line. Calculate the total relevant cost to make the timer units and the net cost if they accept Clifton's offer.
Question Completion:
Question 2 Ivanhoe Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in each of its systems. Based on an annual production of 40,330 timers, the company has calculated the following unit costs Direct fixed costs include supervisory and clerical salaries and equipment depreciation. Direct materials Direct labor Variable manufacturing overhead Direct fixed manufacturing overhead Allocated fixed manufacturing overhead $12 10 (30% salaries, 70% depreciation) 10 Total unit cost $42 Clifton Clocks has offered to provide the timer units to Sandhill at a price of $34 per unit. If Sandhill accepts the offer, the current timer unit supervisory and clerical staff will be laid off (a1) Your answer is correct. Calculate the total relevant cost to make or buy the timer units. (Round answers to O decimal places, eg, S250.) Make Buy 100825 1371220
Answer:
Ivanhoe Water
1. Total relevant cost to make the timer units:
If Ivanhoe does not accept the Clifton's offer, its total cost = $35 * 40,330 = $1,411,5500
If it accepts Clifton's offer, the total cost = $34 * 40,330 = $1,371,220
2. Net cost = $40,330
Explanation:
a) Data and Calculations:
Cost of producing 40,330 timers
Direct materials $12
Direct labor 7
Variable manufacturing overhead 3
Direct fixed manufacturing overhead 10
Allocated fixed manufacturing overhead 10 (30% salaries, 70% depreciation)
Total unit cost $42
Clifton's offer = $34 per unit
Total relevant cost to make the timer units:
If Ivanhoe does not accept the Clifton's offer, its total cost = $35 * 40,330 = $1,411,5500
If it accepts Clifton's offer, the total cost = $34 * 40,330 = $1,371,220
Net cost = $40,330
Out of the total cost of $42, $7 for the depreciation is not considered relevant. This leaves the relevant cost at $35 per unit. Any cost that cannot be eliminated by a decision is not relevant, it is a sunk cost. The salaries of the supervisory and clerical staff can be eliminated, so it is relevant here.