A 12-year bond of a firm in severe financial distress has a coupon rate of 12% and sells for $920. The firm is currently renegotiating the debt, and it appears that the lenders will allow the firm to reduce coupon payments on the bond to one-half the originally contracted amount. The firm can handle these lower payments. What are the stated and expected yields to maturity of the bonds? The bond makes its coupon payments annually.

Answer:

Total amount = $10906400

He would receive = $ 45443.33 every month

Explanation:

Ken invested $1.6 million at 9.6% for 20 yes compounded monthly.

n = 20*12= 140

t = 20

P= 1600000

R= 9.6% = 0.096

Amount A is equal to

A = p(1+r/n)^(nt)

A =

1600000(1+(0.096/140))^ (140*20)

A =

1600000(1 + (6.857*10^-4))^(2800)

A= 1600000(1.0006857)^2800

A = 1600000*6.8165

A = 10906400

Every month, he will get

10906400/(12*20)

= 10906400/240

=$ 45443.333

Answer: Therefore, he would recieve $15,018.74 at the end of each month.

Explanation:

$1.6 million investment is the present value (PV)

PV = $1,600,000

INTEREST RATE(r) = 9.6% or 0.096 compounded monthly = (0.096÷12) = 0.008

PERIOD(n) = 20 years = (20×12) = 240 months

Ordinary value of annuity:

Annuity = (rate × PV) ÷ (1 - (1 + r)^-240)

Annuity = (0.008 × $1,600,000) ÷ (1 - (1 + 0.008)^-240)

Annuity = ($12,800) ÷ (1 - (1.008)^-240)

Annuity = $12,800 ÷ 0.8522687768

Annuity = $15,018.74

Therefore, he would recieve $15,018.74 at the end of each month.

Answer:

Partnership refers to a mutual agreement between two or more individuals to carry on a business and share it's profits and losses in a specified ratio as per the clauses in the partnership deed.

A corporation form of business refers to a business characterized by separate legal existence, perpetual existence and common ownership.

Following are the benefits of conducting business via mode of partnership instead of a corporation:

Answer:

$657,000

Explanation:

The computation of the research and development expense reported is shown below:

Salaries $280,000

Depreciation R&D facilities and equipment $155,000

Utilities and other direct costs $72,000

Payment to another company $150,000

Total R & D expense $657,000

All other items which are not taken in the computation part is irrelevant. Hence ignored it

Maxtor should report a total of $685,000 as research and development expenses in its income statement, which includes salaries, depreciation on facilities and equipment, utilities and other direct costs, patent filing and legal costs, and payment to another company for development work.

The total amount that Maxtor should report as research and development expense in its income statement is the sum of costs directly related to the research and development activity. These include the salaries of $280,000, depreciation on R&D facilities and equipment of $155,000, utilities and other direct costs incurred for the R&D facilities of $72,000, patent filing and related legal costs of $28,000, and payment to another company for performing a portion of the development work $150,000. Therefore, the total R&D expenditure would be $685,000. The cost of adapting the new monitor for the specific needs of a customer is not a part of R&D expenses, it is a production cost.

https://brainly.com/question/32245810

#SPJ3

Answer:

Cash Collection is $122,000

Receivable as on August 31, is $97,000

Explanation:

Total budgeted cash collection in the month of August is $122,000 and total receivables as on August 31 is $97,000.

A schedule for the cash collection is made in MS Excel file, which is attached with this answer, please find it.

In August, the budgeted collections for Harrington were $122,000 and the total budgeted receivables on August 31st were $136,000.

To calculate the firm's budgeted collections for August, we need to apply Harrington's collection pattern to the sales made in June, July, and August. 30% of August's sales are collected in the same month which equals $36,000 (0.3 * $120,000). The first month after July sales, 60% is to be collected amounting to $78,000 (0.6 * $130,000). The second month after June 10%, results in $8,000 (0.1 * $80,000). Thus, the total collection for August is $36,000 + $78,000 + $8,000 = $122,000.

For the budgeted receivables on August 31, the remaining amounts to be collected from July and August should be considered. This comprises of 40% from July's sale amounting to $52,000 (0.4 * $130,000), and 70% from August's sales which equals $84,000 (0.7 * $120,000). So, the total budgeted receivables on August 31 is $52,000 + $84,000 = $136,000.

https://brainly.com/question/32104516

#SPJ12

Answer:

d. A risk-free arbitrage opportunity exists.

Explanation:

A zero-investment portfolio refers to a portfolio of assets which all the investments its contains has a collective net value that is zero which is obtained when there is a simultaneously purchasing securities and selling equivalent securities.

Alpha refers to the active return on an investment. This implies that when a zero-investment portfolio has a positive alpha, its active return is positive. This can only occur when there is a risk-free arbitrage opportunity.

A risk-free arbitrage refers to the opportunity to make some profit with no capital investment.

Therefore, the correct option is d. A risk-free arbitrage opportunity exists.

Final answer:

A zero-investment portfolio with a positive alpha typically results from a risk-free arbitrage opportunity, which aligns with the concept of generating excess returns without additional risk. An analysis of three investments' risks and expected returns indicates the third investment as the safest, the first as the riskiest, and the second as having the highest expected return on average.

Explanation:

A zero-investment portfolio with a positive alpha suggests the existence of an arbitrage opportunity where an investor can generate excess returns without any additional investment or risk. The statement in the question "A risk-free arbitrage opportunity exists" aligns with the concept of generating a positive alpha without additional investment, thereby leading to the creation of a zero-investment portfolio with positive returns. Other statements do not logically support the creation of such a portfolio. Option d is correct .

Investment analysis involves evaluating risk and return to determine the safest and riskiest investments, along with the highest expected average returns. Considering the probabilities and potential returns for three different investments, we find:

The biotech firm represents the lowest risk due to its minimal chance of loss. Conversely, the software company carries the highest risk, stemming from its elevated probability of incurring a loss. The hardware company offers the highest expected return on average, considering the balance of probabilities and potential profits.

Throughout history, high-risk investment approaches have sometimes been detrimental to investment portfolios, particularly during times of economic downturn or market volatility, such as the 2008 financial crisis or the dot-com bubble burst.

Becton Labs' direct materials had a favorable price variance and an unfavorable quantity variance. Direct labor showed a favorable rate variance but an unfavorable efficiency variance. Variable manufacturing overhead revealed a favorable rate variance and an unfavorable efficiency variance.

Direct Materials Variances

The price variance for direct materials is calculated by comparing the standard cost to the actual cost paid for the materials. The standard cost for materials would be 2 ounces per unit of Fludex at $30 per ounce, totaling $60. With the company purchasing 10,000 ounces for $287,000, the actual price per ounce is $28.70. The price variance is thus (30 - 28.70) * 10,000 ounces, which equals a $13,000 favorable variance.

The quantity variance is found by taking the standard quantity for the actual production and comparing it to the actual quantity used. To produce 3,400 units, the standard quantity would be 3,400 units * 2 ounces/unit = 6,800 ounces. The actual quantity used is 10,000 ounces purchased minus 3,000 ounces ending inventory, equaling 7,000 ounces. The variance is then (6,800 - 7,000) * $30 per ounce, resulting in a $6,000 unfavorable variance.

To answer whether Becton Labs should enter into a long-term contract with the new supplier, we should consider both the favorable price variance and the potential reasons for the unfavorable quantity variance.

Direct Labor Variances

The rate variance for direct labor is calculated by comparing the standard rate per hour to the actual rate paid. With a standard rate of $14 per hour and an actual rate of $12 per hour, multiplied by the total hours worked (20 technicians * 130 hours), we have an $11,200 favorable rate variance.

The efficiency variance compares the standard hours for actual production to the actual hours worked. Standard hours are 0.5 hours per unit * 3,400 units, totaling 1,700 hours. Actual hours were 2,600 (20 * 130), resulting in a 900-hour difference. Multiplying by the standard rate, we get a $12,600 unfavorable efficiency variance.

Deciding on whether to continue with the new labor mix requires further investigation of the causes and effects of the unfavorable efficiency variance.

Variable Manufacturing Overhead Variances

The variable overhead rate variance is the difference between the standard rate and the actual rate. The standard rate is $3.40 per hour. With $4,700 spent for 2,600 hours, the actual rate is approximately $1.81. Therefore, the variance is a favorable variance.

The variable overhead efficiency variance is computed by comparing the standard hours to the actual hours, similar to direct labor. With 1,700 standard hours and 2,600 actual hours, the difference applied to the standard overhead rate results in an unfavorable efficiency variance.

Answer:

The answer is given below;

Explanation:

Site-cleanup costs    $138,000,000

This will give rise to deferred tax asset of $138,000,000*20%=$27,600,000

Tax Depreciation excessive for the year=$9,660,000

Excess tax depreciation deducted in current year will give rise to deferred tax liability=$9,660,000*20%=$1,932,000

Current Tax Expense =$44,160,000

Deferred Tax During 2020 are;

Deferred Tax Asset   $9,660,000

Deferred Tax Liability $1,932,000

Current Tax Expense  $44,160,000

Answer:

a. 598 units

b. $897

c. $898

Explanation:

a. The computation of the economic order quantity is shown below:

[tex]= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]

[tex]= \sqrt{\frac{2\times \text{19,900}\times \text{\$27}}{\text{\$3}}}[/tex]

= 598 units

b. The average inventory would equal to

= Economic order quantity ÷ 2

= 598 units ÷ 2

= 299 units

Carrying cost = average inventory × carrying cost per unit

= 299 units × $3

= $897

c. The number of orders would be equal to

= Annual demand ÷ economic order quantity

= $19,900 ÷ 598 units

= 33.28 orders

Ordering cost = Number of orders × ordering cost per order

= 33.28 orders × $27

= $898

Answer: The Non Compete is NOT Enforceable.

Explanation:

An Agreement not to compete with your previous company is a RESTRICTIVE covenant that was generally introduced to ensure that Upper and Middle Management who were generally privy to Trade Secrets in an Organization do not take that information somewhere else and use it against that old company usually in exchange for better compensation packages.

Hernandez joined Access Organics and regrettably was not given a pay increase or any other special considerations. This is very relevant.

For a Non-compete to hold relevance especially if it is signed AFTER an employee has already being working in an organization, there needs to be SUFFICIENT Considerations that gave the employee better terms such as more job security or better benefits as a result of signing said agreement.

Andy Hernandez received no such benefits in return for signing the agreement and so the Non-compete Agreement lacks said Sufficient Considerations.

The Non-compete is therefore NOT ENFORCEABLE.

It is worthy of note that in the actual case, the Judge ruled in favor of of Andy Hernandez.

If you require further clarification do react or comment.

Answer:

Yes, a valid non-compete is enforceable as a state law once one party violates is provision.

Explanation:

If the non compete did not categorically state that Hernandez will receive a pay increase or any other new benefits in return for signing the agreement and yet he endorsed it, going against the agreement not to compete with Access for two years following the termination of his employment is a clear case of violation.

Penalty for violating a non compete include payment for damages. In this case, Access Organics Inc. could also file  lawsuit against Hernandez for both money damages and an injunction.

Answer:

See the explanation below.

Explanation:

Details                                                         Dr ($)                 Cr ($)  

Salary expenses                                     1,100,000

Employee portion of FICA payable                                    84,150

Federal income tax payable                                             165,000

Employee's State income tax payable                              68,750

Employee portion of health ins. payable                            11,000

Net salaries payable                                                           771,100

To record gross salaries, withholding taxes and net salaries      

Employer portion of FICA expenses          84.150

Federal and state unemployment tax        68,200

Employer portion of health insurance        33,000

Employer portion of FICA payable                                     84,150

Fed. and state unemploymt tax payable                           68,200

Employer portion of health ins. payable                            33,000

To record employer's payroll taxes and other expenses              

Employee portion of FICA payable              84,150

Federal income tax payable                       165,000

State income tax payable                             68,750

Employee portion of health ins. payable      11,000

Net salaries payable                                     771,100

Employer portion of FICA payable               84,150

Fed. and state unemploymt tax payable     68,200

Employer portion of health ins. payable      33,000

Cash                                                                                  1,285,350

To record payment of payroll liabilities and other expenses        

Solution:

The unit-of-production approach allocates depreciation on the basis of the usage of the commodity.

The first step is to measure depreciation per unit by calculating the sum of less residual value by usable life in units.

For this scenario, we measure ($300,000-$50,000)/40,000 hours

= $6.25 per computer hour as the deprecation cost per device.

That number is compounded by the real use for the year.

In this scenario, 6,000 hours * $6.25 depreciation cost

= $37,500 depreciation bill.

Answer:

c) Credit interest revenue

Explanation:

Financing Charge = Price X Rate

Financing Charge = $2,000 X 1.5% = $30

The accounts receivable will increase by way of debit of an amount of $30.

Interest revenue will increase by way of credit of an amount of $30.

The correct answer is: a. Credit Interest Revenue $30. The correct entry to record the finance charge on Greg’s Sport Shop’s books involves debiting Accounts Receivable and crediting Interest Revenue for $30.

To determine the correct entry to record the finance charge on Greg’s Sport Shop’s books, we need to calculate the finance charge and then identify the correct accounting entries. The treadmill cost $2,000, and the finance charge is 1.5% per month. Therefore, the finance charge is:

Finance Charge = $2,000 x 0.015 = $30

The correct journal entries involve debiting Accounts Receivable and crediting Interest Revenue to record the finance charge added to the customer's account:

Thus, the correct choice is: a. Credit Interest Revenue $30

Answer:

The big five characteristics include agreeableness, conscientiousness, extraversion, neuroticism and open to new experience.

Explanation:

The data captured within the big five characteristics can be used to inform the decisions about combining areas of expertise in job specifications.

The profile of someone who could take on a lot more will include all the characteristics in the big five except neuroticism.

Someone that is neurotic expresses anger easily and is prone to depression. This is a self conscious individual that is easily irritated.

Answer:

Effect on income= $37,240 increase

Explanation:

Giving the following information:

Production= 12,500 units

Variable manufacturing expenses 885,000

Variable selling and administrative expenses 120,000

The American Motorcycle Club has offered to purchase 1,900 helmets for $100 each.

Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.

First, we need to calculate the unitary variable costs:

Unitary variable manufacturing expense= 885,000/12,500= $70.8

Unitary selling and administrative expenses= 120,000/12,500= $9.6

Total variable cost= $80.4

Effect on income= 1,900*(100 - 80.4)= $37,240 increase

Answer:

all-current-rate method

Explanation:

The all-current-rate method is the method by which most items in the financial statements are translated at the current exchange rate

In current-rate-method,

the income statement is translated at the weighted average exchange rate,

assets and liabilities are translated at the current rate, issued capital stock is translated at the exchange rate.

The balance sheet must be balanced. Cumulative Translation Adjustment (CTA) balances the asset side of the balance sheet with the liabilities and owner’s equity side of the balance sheet.

Answer: a) a commitment to the owner and are standardized.

Explanation:

Futures are generally traded through Exchanges as opposed to Forwards which are not.

Futures are a commitment to the owner to buy or sell an underlying asset and as they are sold at Exchanges, they are standardized to allow for easier trading. The prices that the sellers are to get are certain as the Exchange protects the transaction.

Unlike Forwards that can be tailor made to the specifications of the owner, Futures come as already made and standardized and so are not tailor made. This is to enable as many participants as possible.

This is why option A is correct because Futures contain a commitment to the owner and are standadized as well.

Answer:

Option A; DELEGATION.

Explanation:

Delegation is an administrative process of getting things done by others by giving them responsibility.

Example is a manager asking a subordinate to take over his duties at a meeting. However, the person who delegated the work remains accountable for the outcome of the delegated work.

Delegation simply means empowering a subordinate to get a work done (i.e. a transfer of authority from a superior to a subordinate).

Since Edmond asks Ferdie to perform his duties at closing because of his own conflicting schedule, therefore, this transfer of duties is called DELEGATION.

Answer:

A

Explanation:

Delegation

Delegation is the act of transfering of authority or responsibility from a superior to a subordinate Indeed, delegation is the downward transfer of authority from a superior to a subordinate. Edmond for some reason was unavoidable absent due to schedule conflicts and delegates the work to Ferdie, to perform his duties at the closing

Answer:

B. Gain $8,000

Explanation:

The calculation of exchange translation is shown below:-

Old exchange rate = Net exposed assets × Value of Euro

= 200,000 × ​$1.22

= $244,000

New value in euro = Net exposed assets × Increased exchange rate

= 200,000 × $1.26

= $252,000

Translation Profit  = New value in euro - Old exchange rate

= $252,000 - $244,000

= $8,000

Final answer:

To recognize the 2021 income tax benefit from the net operating loss, multiply the $137 million loss by the 25% tax rate to determine the tax benefit, which is $34.25 million, reflected as a Deferred Tax Asset. The net operating loss on the income statement remains $137 million.

Explanation:

To recognize the income tax benefit of the net operating loss in 2021, we first need to determine the tax benefits of the $137 million operating loss, the $5 million EPA penalty, and the $12 million estimated loss contingency.

In this case, the entire $137 million loss is tax-deductible. However, the $12 million estimated loss contingency will be tax deductible when actually paid in 2022, not in 2021. Yet, for financial accounting purposes, we recognize the benefit in the year that the loss is reported. Therefore, the income tax benefit will be based on the full $137 million loss.

The journal entry to recognize the income tax benefit is:

To calculate the benefit, multiply the $137 million by the tax rate of 25% (137 million * 0.25 = $34.25 million).

The net operating loss reported in the 2021 income statement is $137 million since that is the pretax operating loss before considering the tax benefit.

Final answer:

The journal entry to recognize the income tax benefit of the net operating loss for Fore Farms in 2021 debits Income Tax Benefit and credits Deferred Tax Asset for $34.25 million, which is 25% of the $137 million pretax operating loss. The net operating loss reported on the 2021 income statement is $137 million.

Explanation:

To recognize the income tax benefit of the net operating loss for Fore Farms in 2021, we need to consider the penalty and the estimated loss from accruing a loss contingency. Since the tax rate is 25% and the total pretax operating loss is $137 million (including both the penalty and the loss contingency), the journal entry would reflect an income tax benefit at this tax rate on the taxable portions of the operating loss.

The journal entry is as follows:

The net operating loss for the income statement would be the pretax operating loss amount, which is $137 million.

Answer:

Pillows to be produced next year =14,850 units

Explanation:

The expected units of a product that a business estimates to manufacture gives its sales budget and inventory is known as the production budget.

The production budget can bed determined by adjusting the sales budget for closing and opening inventories.

Production budget = Sales budget +closing inventory - opening inventory

No that the opening inventory for next year would be the closing inventory for the current year. Therefore, the opening inventory for next year is 1,500 units.

Sales budget for next year - 15,000, closing inventory -1,350

Production budget = 15,000 + 1,350 - 1,500

                               =  14,850 units

Pillows to be produced next year =14,850 units

Answer:

Detailed workings are in the explanations.

Explanation:

August 1

On August 1, Ling Harvey entered into a forward contract to purchase 400000 ringgits in 3 months at a forward rate of $0.60.

If Ling Harvey has to pay 400000 ringgits now, total outflow would be $ 240000 (400000*0.60) and in forward contract it has to pay $ 240000 also (400000*0.60), so ling harvey has not incurred any loss

So, there is a firm commitment to pay $ 240000 on October, 31

For entering into a forward contract, there will be no entry.

On September, 30

Forward contract rate has increased to 0.66 from 0.60 (august, 1), so there is a increase in the fair value of the Forward Contract. Earlier its value was $240,000 on Aug,1 but now its value is $ 264,000, so there is a increase in fair value by $24,000

Since this $24000 will be realized on Oct, 31, we will book it today at present value

Present value = $24000*0.9901= $23,762.4

Journal entry would be  as follows:

Debit: Forward Contract a/c  $23,762.4

Credit: Gain on Forward Contract $23,762.4

Now, the spot rate determines the fair value of Commitment, so there is an increase in fair value of firm commitment by (0.63 - 0.60) * $400,000 =$12,000.

0.63 is the spot rate on September, 30

Since our Firm commitment value increased by $12,000, we need to book it at present value .

Present Value = $12,000*0.9901=$11,881.2

Journal Entry is as follows:

Debit: Loss on Firm Commitment a/c $11,881.2

Credit: Firm Commitment $11,881.2

So its effect on Net income is as follows:

Debit: Gain on Forward Contract a/c $23,762.4

Credit: Loss on Firm Commitment $11,881.2

Credit: Retained Earnings $11,881.2

On October 31

Today spot rate is 0.68, so the value of the forward contract when compared to its value on Aug 1

= (0.68 - 0.60) *$400,000

= $32,000

So there is an increase in Forward Contract Value by $32,000, since we have already booked $23,762.4, we will book the additional value $82,37.6 as follows:

Debit: Forward Contract a/c $8,237.6

Credit: Gain on Forward Contact $8,237.6

So, the Firm Commitment value has also increased from 0.60(Aug 1) to 0.68

Increase in value = (0.68-0.60) *$400,000 = $32,000

As we have already booked a liability of $11,881.2, we will be book the additional increase in value of $20,118.8 as follows

Debit: Loss on Firm Commitment a/c $20,118.8

Credit: Firm Commitment $20,118.8

So, its effect on Net Income is as follows

Debit: Gain on Forward Contract a/c $8,237.6

Debit: Retained Earnings a/c $11,881.2

Credit: Loss on Firm Commitment $20,118.8

So the total effect on Net income is 0, as on Sept 30 retained earnings has been credited by $11881.2 and on Oct 31, it has been debited by $11881.2... This is due to as there was no difference between spot rate & forward rate on August 1

As on 31st October, there is a debit balance of $32,000 in Forward Contract & credit balance of $32000 in Firm commitment.

Entry for Goods received & payment to foreign supplier is as follows

Debit: Inventory (At spot rate on Aug 1) $240,000

Debit: Firm Commitment (offset) $32,000

Credit: Forward contract (offset) $32,000

Credit: Cash (At forward rate on Aug 1) $240,000

The net cash outflow to foreign supplier is $240,000.

0.4 cross price elasticity of demand means that there is direct effect of change of price of wool socks on the demand of shaved ice but they are not very closely related to each other.

Explanation:

Cross Price elasticity of demand is the concept in Economics which focuses on the effect of change of price of one good leading to the change of the demand of the other good, but in this matter, the other things have to kept the same which is also known as ceteris paribus.

For example when the price of coffee increases, the demand of tea will increase because the people will start preferring to have tea because of the increase in the price of coffee.

Answer: $975 million

Explanation:

Given the above details, we can solve for Earnings Before Tax and Interest with the following formula,

Operating Cash Flow = EBIT – Taxes on EBIT + Depreciation

Making EBIT the subject would turn it to be,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

We have all of the above except the EBIT and Operating Cash Flow.

Luckily we can solve for the Operating Cash Flow with the details given using,

Operating cash flow = Free Cash Flow + Investment in operating capital

Therefore,

= $491 million + $321 million

= $812 million

Operating cash flow is $812 million

Plugging it into the original formula we have,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

EBIT = $812 million + $309 million - $146 million

EBIT = $975 million

Earnings before Taxes and Interest is $975 million.

If you need any clarification do react or comment.

Answer:

The risk management plan describes how risk management activities will be structured and performed. There are 6 elements to be included in the risk management plan

Explanation:

According to the Project Management Institute (PMI, 2017), a risk management plan should consist of the following elements:

•Risk strategy – a risk strategy describes the approach to managing risk. It consists of looking at the project from all perspectives, identifying risks and choosing the best possible solution to the risk.

•Methodology – this defines the specific tools, ideas, and sources of data that will be used to undertake the risk management task

•Roles and Responsibilities – everyone on the team should have a clear understanding of what is expected of them and how they should react should a certain problem arise. Leaders, supporters and the entire team should have a specific task assigned to them.

•Funding – possible sources of financial assistance and calculated estimates of how much would be needed for each specific risk identified, should be established in the plan and potential funders should be contacted

•Timing – defines when and how often the processes will be performed and defines risky activities and how much time would be needed to deal with each risk

•Risk categories – risks should be categorized in terms of their severity and/ or likeliness to occur. A scale of 1 – 5 can be used, where 1 is lease likely to occur and 5 is most likely, or, 1 being least severe and 5 being very severe

It is important to monitor, evaluate and review the plan once it is implemented.

Answer:

a)

1. Make Cisco, total cost is $74930

2. Buy Cisco, total cost is $83152

3. Net income decrease is $8222

b. Based on the above, management should continue manufacturing Cisco since the option of purchasing results in a net income decrease of $8222

C. If Shatner Company has the opportunity to produce $3,000 of net income with the facilities currently being used to manufacture CISCO, the decision will not be different because the additional income does not offset the net decrease in income.

d. Other non financial factors to be considered by management in making its decisions are:

1. The time it takes to manufacture the product.

2. The inventory of materials and work in progress

3. Difference in quality between manufactured and purchased products

4. Delay in delivery

5. Damages due to freight

Explanation:

8000 units of Cisco was produced

Variable costs:

direct materials = $5.00

Direct labor = $4.35

indirect labor = $0.40

utilities = $0.39

Total variable cost = 8000 * (5+4.35+0.4+0.39)

TVC = 8000*9.14 = $73120

Total allocated fixed cost = $1,810

Total cost = TVC + TFC

TC = 73120+1810 = $74930

If on the other hand the units are purchased, we have :

freight and inspection = $0.34 per unit

Receiving costs = $1,290 per year

Therefore total cost = 8000*(0.34) + 1290 = $1562

If the lowest quotation for 8000 units of Cisco is $81,590, therefore the total cost of purchasing the product is 81590+1562 = $83152

(a)

1. Make Cisco, total cost is $74930

2. Buy Cisco, total cost is $83152

3. Net income decrease is $8222

b. Based on the above, management should continue manufacturing Cisco since the option of purchasing results in a net income decrease of $8222

C. If Shatner Company has the opportunity to produce $3,000 of net income with the facilities currently being used to manufacture CISCO, the decision will not be different because the additional income does not offset the net decrease in income.

d. Other non financial factors to be considered by management in making its decisions are:

1. The time it takes to manufacture the product.

2. The inventory of materials and work in progress

3. Difference in quality between manufactured and purchased products

4. Delay in delivery

5. Damages due to freight

The incremental analysis favors manufacturing CISCO in-house over purchasing, with a cost saving of $1,070. If the company can use the facilities to generate an additional $3,000 net income, buying becomes the more profitable option by $1,930. Nonfinancial factors also play a significant role in the decision-making process.

When making a decision whether to make or buy a component, Shatner Manufacturing Company must conduct an incremental analysis to compare the net costs associated with each option.

To start, calculate the variable costs of making CISCO: Direct materials ($5.00) + direct labor ($4.35) + indirect labor ($0.40) + utilities ($0.39) = $10.14 per unit. For 8,000 units, this amounts to $81,120. Then add direct fixed manufacturing costs ($3,410), but not allocated costs ($1,810), which are sunk in either scenario. Thus, the total cost to Make CISCO is $84,530.

For Buy CISCO, the quoted price from the supplier is $81,590. Additional costs include freight and inspection costs ($0.34/unit x 8,000 units = $2,720) and receiving costs ($1,290). Therefore, the total cost to Buy CISCO is $85,600.

Incremental Analysis:

Based on this analysis, management should make the decision to continue manufacturing CISCO as it is cheaper by $1,070 compared to buying.

If Shatner Company can generate $3,000 of net income by using the facilities for something else, the analysis changes. The opportunity cost of not generating this income must be considered. When subtracted from the saving of making CISCO ($1,070), the net decrease in income would be $3,000 - $1,070 = $1,930. In this case, buying might be the more profitable option.

In addition to financial analyses, management should also consider nonfinancial factors such as the quality of the parts, supplier reliability, and potential long-term strategic benefits of in-house production or sourcing.

Final answer:

Staples has found it pays to departmentalize by customer, as exemplified by its subsidiary Quill, which targets small and mid-sized U.S. businesses with specific product offerings like medical supplies for doctors' offices. This approach takes advantage of specialization and addresses the unique needs of different customer segments.

Explanation:

Staples, the office supply store, owns Quill, which specializes in selling to small and mid-sized U.S. businesses, such as providing medical supplies to doctors' offices. When we consider the organization of departments in major grocery stores in the United States, which are sorted into departments like dairy, meats, produce, etc., this is an example of a business that is departmentalized by product. Each product category is specialized to cater to the needs of different consumers and to manage the vast array of items effectively.

In the context of business operations, companies like Staples departmentalize to take advantage of specialization, which allows employees to focus on a part of the production process where they have an advantage, similar to how people have different skills and interests. Whether it be educational choices, regional advantages, or the scale of operation, specialization can lead to greater productivity and effectiveness. In Staples' case, through Quill, it has chosen to departmentalize by customer type, which allows the organization to cater specifically to the needs of small and mid-sized businesses, providing them with tailored products and services.

Answer: Machiavellian

Explanation:

In Business Brilliant, Louis Schiff writes that most millionaires are MACHIAVELLIAN; for example, they believe that "it's important in negotiations to exploit the weaknesses in others" to come out on top. Thus, option B is the correct option.

According to Machiavelli, it is preferable for a ruler to be universally feared rather than deeply loved since the former maintains power via duty and the latter through dread of retribution. In his role as a political theorist, Machiavelli stressed the "necessity" of using brutal force or deception methodically, even the eradication of whole noble families, to prevent any possibility of a challenge to the prince's rule.

Historians frequently point out that Machiavelli exalts instrumentality in the establishment of states, an attitude exemplified by the proverb "The aims justify the means," which is frequently linked to readings of The Prince. According to Machiavelli, a ruler must utilize fraud and deception. For the effective stability of power and the installation of new regimes, violence may be required.

Learn more about Machiavellian beliefs here:

https://brainly.com/question/30414802

#SPJ2

Answer:

The debit to Cash Short​ & Over would be​:    $ 8

Explanation:          

                           Particulars              Debit              Credit                                                    

                         Cash                         $ 18

                        Miscellaneous           $ 3

                       Additional Tickets      $ 191

                     Cash Over and Short     $ 8

                                    Petty Cash Fund                    $ 220

Sometimes a petty cashier fails to get a receipt for a payment or over pays for the amount due. When this occurs and the fund is later reimbursed the petty cash payments report plus  the cash remaining will not total to the fund balance . This mistake causes the fund to be short. This shortage is recorded as an expense in the reimbursing entry with a debit to Cash Short​ & Over .

Final answer:

The debit to Cash Short & Over would be $8. This is calculated by subtracting the sum of the current cash on hand and petty cash tickets ($212) from the initial imprest balance ($220).

Explanation:

The petty cash fund had an initial imprest balance of $220. The question involves reconciling the petty cash, which includes counting the remaining cash and accounting for the petty cash tickets. The current cash on hand is $18 and there are petty cash tickets totaling $194 ($3 in miscellaneous tickets plus $191 in specific petty cash tickets). The total of cash and tickets should equal the initial imprest balance. To find the debit to Cash Short & Over, we need to calculate the difference between the initial balance and the sum of current cash and tickets.

Calculation:
Initial imprest balance: $220
Current cash on hand: $18
Petty cash tickets: $194 ($3 + $191)
Total cash and tickets: $18 + $194 = $212
Debit to Cash Short and Over = Initial imprest balance - Total cash and tickets
Debit to Cash Short and Over = $220 - $212 = $8

Therefore, the debit to Cash Short & Over would be $8.

Answer:

Explanation:

For example: Suppose you want to check the average working hour of employees. You may think that the average duration of an employees is 7.6 hours. You want to check this claim so you collect a sample of 20 employees and note their duration of work. (please check attached file for this, and continue)

NULL HYPOTHESIS H0:u= 7.6 HOURS

ALTERNATIVE HYPOTHESIS Ha: ≠7.6 HOURS

alpha=0.05

t= 7.765-7.6/1.25/sqrt(20)

t= 0.165/1.25/4.47

t= 0.165/0.28

t= 0.589

degrees of freedom= n-1=20-1=19

t critical = 2.09

Since t critical is GREATER than t calculated therefore we fail to reject null hypothesis H0.

From this we can conclude that We don't have enough or sufficient evidence to say that the mean working duration is different than 7.6 hours.

Answer:

1. Prepare an income statement for each year using full costing.

                                                                           2018                       2019

Sales                                                               1,116,000               1,278,000

Less Cost of Sales                                         (520,800)              (596,400)

Opening Stock                                                      0                        37,800

Add Cost of Goods Manufactured                 558,600                558,600

Less Closing Stock                                          (37,800)                      0

Gross Profit                                                      595,200                681,600

Less Expenses

variable selling costs ($0.70)                           (17,360)                 (19,880)

fixed selling costs are                                        ($660)                  ($660)

Net Income                                                       577,180                 661,060

2. Prepare an income statement for each year using variable costing.

                                                                           2018                       2019

Sales                                                               1,116,000               1,278,000

Less Cost of Sales                                         (396,800)              (454,400)

Opening Stock                                                      0                        28,800

Add Cost of Goods Manufactured                 425,600                425,600

Less Closing Stock                                          (28,800)                      0

Gross Profit                                                      719,200                823,600

Less Expenses

fixed manufacturing costs                              (133,000)             (133,000)

variable selling costs ($0.70)                           (17,360)                 (19,880)

fixed selling costs are                                        ($660)                  ($660)

Net Income                                                       568,180                 670,060

3. Prepare a reconciliation of the difference each year in the operating income resulting from the full and variable costing methods.

                                                                           2018                      2019

Full Costing Operating Income                      577,180                 661,060

Add Fixed Costs in Opening Inventory              0                          9,000

Less Fixed Costs in Closing Inventory           (9,000)                       0

Variable Costing Operating Income             568,180                 670,060

Explanation:

Full Costing Product Cost = Variable Overheads + Fixed Overheads

                                             = $16 + ($133,000/26,600 units)

                                             = $21

1. Prepare an income statement for each year using full costing.

                                                                           2018                       2019

Sales                                                               1,116,000               1,278,000

Less Cost of Sales                                         (520,800)              (596,400)

Opening Stock                                                      0                        37,800

Add Cost of Goods Manufactured                 558,600                558,600

Less Closing Stock                                          (37,800)                      0

Gross Profit                                                      595,200                681,600

Less Expenses

variable selling costs ($0.70)                           (17,360)                 (19,880)

fixed selling costs are                                        ($660)                  ($660)

Net Income                                                       577,180                 661,060

Variable Costing Product Cost = Variable Overheads

                                                     = $16

2. Prepare an income statement for each year using variable costing.

                                                                           2018                       2019

Sales                                                               1,116,000               1,278,000

Less Cost of Sales                                         (396,800)              (454,400)

Opening Stock                                                      0                        28,800

Add Cost of Goods Manufactured                 425,600                425,600

Less Closing Stock                                          (28,800)                      0

Gross Profit                                                      719,200                823,600

Less Expenses

fixed manufacturing costs                              (133,000)             (133,000)

variable selling costs ($0.70)                           (17,360)                 (19,880)

fixed selling costs are                                        ($660)                  ($660)

Net Income                                                       568,180                 670,060

3. Prepare a reconciliation of the difference each year in the operating income resulting from the full and variable costing methods.

Reconciliation of Full Costing Operating Income to Variable Costing Operating Income.

Hint : Difference lies in the Fixed Cost Component deferred in Closing Inventory under the Absorption Cost

                                                                           2018                      2019

Full Costing Operating Income                      577,180                 661,060

Add Fixed Costs in Opening Inventory              0                          9,000

Less Fixed Costs in Closing Inventory           (9,000)                       0

Variable Costing Operating Income             568,180                 670,060

Income statements for STI would be prepared for two years using full costing (absorption costing) and variable costing. Full costing includes both fixed and variable costs in the inventory valuation, while variable costing includes only variable costs, treating fixed overhead as a period expense. The operating income will differ between the two methods due to the treatment of fixed manufacturing overhead.

The student has asked to prepare an income statement for two years using both full costing and variable costing methods and to reconcile differences in operating income between the two methods for Security Technology Inc. (STI), a manufacturer of electronic control systems for special-duty auto transmissions. Given that the part sells for $45 per unit, the annual fixed manufacturing costs amount to $133,000, the variable manufacturing costs are $16 per unit, and the variable selling costs are $0.70 per unit, we would calculate the income statements reflecting these costs and the given production and sales units.

Full costing, also known as absorption costing, includes both fixed and variable costs in the cost of goods sold and thus in the inventory valuation. Variable costing, on the other hand, only includes variable costs in the cost of goods sold; fixed manufacturing overhead is treated as a period expense. The operating income will differ between the two methods due to the treatment of fixed manufacturing overhead.

To complete the student's request, we would calculate the cost of goods sold and operating income under each method for both years, then reconcile any differences due to the accounting treatment of fixed manufacturing overhead.

https://brainly.com/question/33690617

#SPJ3