Answer:
C. Allocation of fixed manufacturing costs are arbitrary at best.
Explanation:
A.- Yes, fixed cost occurs regardless of the level of production, but that is true for every costing method, and some of them do calculate a unit rate for fixed overhead. the statment is partially true
B.- If fixed cost changes with the level of production then, are variable cost, not fixed. Statement is FALSE
C. The allocation of fixed manufacturing costs is arbitrary at best. This is the reasoning for variable costing to consider fixed cost expenses, the method of allocating cost, using a rate always generates a difference in applied and overapplied MO It generates distortions and is not objective, it is based on personal option. The use of direct labor hours, cost or machine hours is evidence of that. TRUE
D.- There is such a cost, like depreciation, but others do incur in cash disbursements, like rent, indirect materials, supervisors, maintenance cost and others.is Statment is FALSE
Fixed manufacturing overhead costs are expensed in variable costing as they occur regardless of production levels, aiding in cost analysis and decision-making.
One of the reasons behind expensing fixed manufacturing overhead costs in variable costing is that fixed manufacturing overhead costs occur regardless of the level of production. This means that even if production levels change, fixed overhead costs remain constant.
Expensing fixed manufacturing overhead costs aligns with the principle of variable costing, where only variable costs are included in the cost of goods sold. This method helps in providing a clear understanding of the costs directly tied to production.
By immediately expensing fixed manufacturing overhead costs, companies can better analyze the cost of producing each unit and make informed decisions on pricing and production levels.
Absorption-Costing Income Statement During the most recent year, Osterman Company had the following data: Units in beginning inventory — Units produced 10,000 Units sold ($47 per unit) 9,300 Variable costs per unit: Direct materials $9 Direct labor $6 Variable overhead $4 Fixed costs: Fixed overhead per unit produced $5 Fixed selling and administrative $138,000 Required: 1. Calculate the cost of goods sold under absorption costing. $ 223,200 2. Prepare an income statement using absorption costing. Enter amounts as positive numbers.
Answer:
Income Statment for the year ended december 31th, 20X9
Sales Revenue 437,100 (9,300 units x 47 price per unit)
COGS 223,200 (9,300 units x 24 unit cost)
Gross Profit 213,900
S&A 138,000
Net Income 75900
Explanation:
Unit cost:
DM + DL + VO + FO = 9 + 6 + 4 + 5 = 24
Final answer:
The cost of goods sold under absorption costing for the Osterman Company is $223,200. An income statement prepared using absorption costing shows a net income of $75,900, after accounting for sales revenue, cost of goods sold, gross margin, and fixed selling and administrative costs.
Explanation:
To calculate the cost of goods sold (COGS) under absorption costing, we must account for all manufacturing costs, including both variable and fixed costs, that are associated with the production of the goods sold. Given the information that the Osterman Company produced 10,000 units, sold 9,300 units at $47 each, and we know the variable costs per unit (direct material $9, direct labor $6, variable overhead $4) and fixed overhead per unit produced ($5), we can perform the following calculation:
Total variable costs per unit = $9 + $6 + $4 = $19
Total cost per unit under absorption costing = Total variable costs per unit + Fixed overhead per unit produced = $19 + $5 = $24
COGS under absorption costing = Total cost per unit x Units sold = $24 x 9,300 = $223,200 (as given)
The income statement using absorption costing for the Osterman Company would include Sales Revenue, Cost of Goods Sold, Gross Margin, Selling and Administrative expenses, and Net Income.
Sales Revenue: 9,300 units x $47 = $437,100
COGS: $223,200 (as calculated above)
Gross Margin: Sales Revenue - COGS = $437,100 - $223,200 = $213,900
Fixed Selling and Administrative costs: $138,000
Net Income: Gross Margin - Fixed Selling and Administrative costs = $213,900 - $138,000 = $75,900
Panther Co. had a quality-assurance warranty liability of $356,000 at the beginning of 2018 and $311,000 at the end of 2018. Warranty expense is based on 3% of sales, which were $58 million for the year. What were the warranty expenditures for 2018?
Answer:
warranty expenditures for 2018: $ 1,785,000
Explanation:
warranty expected 3% of sales
58,000,000 x 3% = 1,740,000
Beginning - warrant expenditures + expected liab = ending warrant liability
We post our givens in the formula and solve for expenditures:
356,000 - X + 1,740,000 = 311,000
1,740,000 + 356,000 - 311,000 = expenditures
1,785,000 = expenditures
Paid-in-capital in excess of par represents the amount of proceeds a. from the original sale of common stock b. in excess of the par value from the original sale of common stock c. at the current market value of the common stock d. at the curent book value of the common stock
Answer:
b. in excess of the par value from the original sale of common stock
Explanation:
The additional paid-in is the difference between the par value of a share and the value on which they are issued.
For example:
10,000 par value $5 issued at $8.60
[tex]$$issued - par value = additional paid-in[/tex]
8.60 - 5 = 3.60 paid-in per share
10,000 shares * $3.6 = $36,000 total paid-in
Final answer:
Paid-in-capital in excess of par value is the amount received from the original sale of common stock that is above the designated par value of the shares. This additional capital becomes part of the company's equity and is recorded separately from the base par value on the balance sheet.
Explanation:
Paid-in-capital in excess of par represents b. in excess of the par value from the original sale of common stock. This occurs when a company issues stock at a price higher than its par value, which is the nominal or face value designated per share of stock in the corporate charter. The par value is typically a very low amount, like $0.01 per share, and the excess over this amount that's paid by investors becomes 'additional paid-in capital' or 'paid-in capital in excess of par' on the company's balance sheet.
For example, if a company with a par value of $0.01 per share issues 1 million shares at $10 per share, the company receives $10 million in total. However, only $10,000 is recorded as par value (1 million shares x $0.01), and the remaining $9,990,000 is recorded as paid-in capital in excess of par.
Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $300,000, and direct labor costs to be $150,000. Actual overhead costs for the year totaled $330,000, and actual direct labor costs totaled $170,000. At year-end, Factory Overhead account is:
Final answer:
Mango Company has an overapplied Factory Overhead balance of $10,000 at year-end due to the application of a predetermined overhead rate based on the actual direct labor costs.
Explanation:
The student's question relates to the calculation of the Factory Overhead account balance at year-end for Mango Company. Mango Company applies overhead based on direct labor costs. The estimated overhead costs were $300,000, while the actual overhead costs were $330,000. Direct labor costs were estimated to be $150,000, but the actual costs ended up being $170,000.
To find out the year-end balance of the Factory Overhead account, we need to calculate the applied overhead based on actual labor costs and compare it with the actual overhead costs incurred. The predetermined overhead rate is calculated as estimated overhead costs divided by estimated direct labor costs, which is $300,000 / $150,000 = 2. So, for every dollar of direct labor cost, Mango Company applies $2 in overhead costs.
Using this predetermined overhead rate, the applied overhead for the actual direct labor costs ($170,000) is 2 × $170,000 = $340,000. Since the actual overhead costs were $330,000, this results in a year-end Factory Overhead account with an overapplied balance of $340,000 - $330,000 = $10,000.
Equipment was acquired on January 1, 2015, at a cost of $90,000. The equipment was originally estimated to have a salvage value of $5,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2018, using the straight-line method. On January 1, 2019, the estimated salvage value was revised to $6,000 and the useful life was revised to a total of 8 years. Determine the depreciation expense for 2019.
Answer:
The depreciation expense for the year 2019 is $6250
Explanation:
Firstly the straight line depreciation method is one of the most commonly used depreciation method by the companies where the depreciation expenses for a full accounting period is calculated by subtracting the total cost of the asset by the salvage value of the asset over its useful estimated life.
FORMULA FOR STRAIGHT LINE DEPRECIATION METHOD =
\frac{COST OF THE ASSET - SALVAGE VALUE}{USEFUL LIFE YEAR}
In this question the first step to do is to calculate the depreciation expenses for the asset from year 2015 to 2018, where cost of asset = $90,000
salvage value = $5,000
useful life year = 10
Calculating the depreciation expense for 1 year =
\frac{\$90,000 - \$5,000}{10} = \$8500
But we have to calculate the value for 4 years between 2015 - 2018
so, $8500 x 4 = $34,000
Now in 2019 the salvage value is revised and it is equal to $6,000, and useful life is 8 years.
So here we will subtract the $34,000 from total cost of the asset $90,000, and take out depreciation expenses for the year 2019 as,
Firstly the cost of the asset for the year 2019 would be $90,000 - $34,000,
which is equal to $56,000 and now putting this value in the formula,
\frac{\$56,000 - \$6,000}{8} = \$6250
Therefore the depreciation expense for the year 2019 is $6250
The next dividend payment by Savitz, Inc., will be $2.08 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. If the stock currently sells for $42 per share, what is the required return?
On January 1, Year 1, Friedman Company purchased a truck that cost $33,000. The truck had an expected useful life of 8 years and an $7,000 salvage value. The book value of the truck at the end of Year 1, assuming that Friedman uses the double-declining-balance method, is: _________. (Do not round intermediate calculations.)
The book value of the truck at the end of Year 1, using the double-declining-balance method, is $24,750 after accounting for a depreciation expense of $8,250.
To calculate the book value of the truck at the end of Year 1 using the double-declining-balance method, we first determine the depreciation rate. The double-declining rate is twice the straight-line rate, so for an 8-year useful life, the straight-line rate is 1/8, or 12.5%. Therefore, the double-declining rate is 25%.
The annual depreciation expense for the first year is then 25% of the truck's cost, excluding the salvage value, since the double-declining-balance method does not consider the salvage value in the first year's calculation. Hence, the depreciation for the first year is 25% of $33,000, which is $8,250. To find the book value at the end of Year 1, subtract this depreciation expense from the original cost of the truck:
Original cost of the truck: $33,000Year 1 depreciation expense: $8,250Book value at the end of Year 1: $33,000 - $8,250 = $24,750Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. Apr. 1 Sold merchandise for $3,000, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $1,800. Apr. 4 The customer in the April 1 sale returned $300 of merchandise for full credit. The merchandise, which had cost $180, is returned to inventory. Apr. 8 Sold merchandise for $1,000, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $700. Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4.
Answer:
Given:
Apr. 1 Sold merchandise for $3,000, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $1,800.
Apr. 4 The customer in the April 1 sale returned $300 of merchandise for full credit. The merchandise, which had cost $180, is returned to inventory.
Apr. 8 Sold merchandise for $1,000, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $700.
Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4.
The journal entries prepared to record the sales transactions of the merchandising company, using the perpetual inventory system and the gross method are as follows:
Apr. 1 Debit Accounts Receivable $3,000
Credit Sales Revenue $3,000
To record the sale of goods, credit terms n/30Debit Cost of goods sold $1,800
Credit Inventory $1,800
To record the cost of goods sold.Apr. 4 Debit Sales Returns $300
Credit Accounts Receivable $300
To record the return of goods.Debit Inventory $180
Credit Cost of goods sold $180
To record the cost of goods returned.Apr. 8 Debit Accounts Receivable $1,000
Credit Sales Revenue $1,000
To record the sale of goods, credit terms of 1/10, n/30Debit Cost of goods sold $700
Credit Inventory $700
To record the cost of goods sold.Apr. 11 Debit Cash $2,700
Credit Accounts Receivable $2,700
To record the receipt of cash from customers.Data Analysis:
Apr. 1 Accounts Receivable $3,000 Sales Revenue $3,000
credit terms n/30
Cost of goods sold $1,800 Inventory $1,800
Apr. 4 Sales Returns $300 Accounts Receivable $300
Inventory $180 Cost of goods sold $180
Apr. 8 Accounts Receivable $1,000 Sales Revenue $1,000
credit terms of 1/10, n/30
Cost of goods sold $700 Inventory $700
Apr. 11 Cash $2,700 Accounts Receivable $2,700
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A producer of ballpoint pens has been purchasing ink from an ink supplier and is considering acquiring the ink supplier. Would the pen company be more or less likely to vertically integrate by buying the ink manufacturer if the government imposes an ink sales tax?
Answer:
More
Explanation:
The producer of ballpoint pens would be more likely to acquire the ink supplier if the government were to impose an ink sales tax. This is because vertical integration would allow the producer to avoid paying the sales tax. Vertical integration refers to an arrangement in which the whole supply chain is owned by a particular company. This means that the company that acquired the supply chain can combine the different entities in order to satisfy all or several of its needs.
Gabat Inc. is a merchandising company. Last month the company's merchandise purchases totaled $67,000. The company's beginning merchandise inventory was $19,000 and its ending merchandise inventory was $22,000. What was the company's cost of goods sold for the month?
Answer:
$64,000 COST OF GOODS SOLD
Explanation:
Beginning Inventory + Purchase = Ending Iventory + Cost of Goods Sold
The first two represent the available goods for sale
(what we had plus we we bring during the period)
The second part is what happened:
How much we sold and how much we keep to next cycle.
Posting in the formula the know values:
67,000 + 19,000 = 22,000 + COGS
67,000+19,000 - 22,000 = COGS
Solving for the unknow values
64,000 = cogs
On January 1, 2018, Green Corporation purchased 34% of the outstanding voting common stock of Gold Company for $300,850. The book value of the acquired shares was $275,200. The excess of cost over book value is attributable to an intangible asset on Gold's books that was undervalued and had a remaining useful life of five years. For the year ended December 31, 2018, Gold reported net income of $125,150 and paid cash dividends of $25,450. What is the carrying value of Green's investment in Gold at December 31, 2018?
Answer:
Total Green's Investment 329,607.8
Explanation:
Book Value 275,200
Goodwill 25,650
First we calculate the goodwill, which will be amortize over 5 years
[tex]\frac{goodwill}{useful \: life} = amortization \: per \: year[/tex]
Amortization of Goodwill 25,650/5 = 5,130
Goodwill at December 31th 20,520
Next we use proportional equity to adjust the Green's book value Our proportion is 34%
Book Value 275,200
+ 34% of net income 125,120 = 42,540.8
-34% of cash dividends 25,450 = (8,653)
Book Value at December 31th 309,087.8
Book Value at December 31th 309,087.8
Goodwill at December 31th 20,520
Total Green's Investment 329,607.8
An elderly client who has a documented history of dementia is intermittently alert and can currently tell you her name. Who should sign the client's informed consent for an invasive diagnostic procedure?
Answer:
The person who should sign client's informed consent for an invasive diagnostic procedure should be either relative( can be husband/wife/child) or a friend who has an durable power of attorney for healthcare of the client.
Explanation:
Dementia can be said as a group of condition where a person is suffering by impairment of at least two brain functions ,like memory loss and un able to make decisions on there own behalf. If a person is suffering from this condition , then someone else who has the authority to make decisions for that persons well being will sign the consent for the invasive diagnostic procedure.
Bloom Company management predicts that it will incur fixed costs of $160,000 and earn pretax income of $164,000 in the next period. Its expected contribution margin ratio is 25%.Required: 1. Compute the amount of total dollar sales.2. Compute the amount of total variable costs.
Answer:
SALES IN DOLLAR $1,296,000VARIABLE COST IN DOLLAR $972,000Explanation:
The process would be to use formulas of the variable costing method to solve for each term:
We are going to use the operating income formula
contribution margin - fixed cost = operating income
Replace with the know values:
contribution margin - 160,000 = 164,000
now solve for the unknow value
contribution = 164,000 + 160,000 = 324,000
Next step we use the contribution margin ratio formula to get the sales:
contribution margin/sales = contribution ratio
Replace with the know values:
324,000/sales = 0.25
now solve for the unknow value:
sales = 324,000/0.25 = 1,296,000
Lastly we use the contribution margin formula to solve for variable cost:
sales - variable cost = contribution margin
Replace with the know values:
1,296,000 - variable cost = 324,000
now solve for the unknow value:
variable cost= 1,296,000 - 324,000 = 972,000
Total dollar sales is calculated to be $1,296,000 and total variable costs is calculated to be $972,000.
Explanation:The first part of the question asks for the total dollar sales. To find this, we use the formula for contribution margin: Contribution Margin Ratio = (Sales - Variable Costs) / Sales. Rearranging this formula, you get Sales = (Fixed Costs + Pretax income) / Contribution Margin Ratio. Plugging the provided values into the formula, we get Sales = ($160,000 + $164,000) / 0.25 = $1,296,000.
The second part asks for the total variable costs. Recall that the Contribution Margin Ratio is also equal to 1 - (Variable Costs / Sales). Rearrange this to get Variable Costs = Sales - (Sales × Contribution Ratio), and substituting the given values, it gives us Variable Costs = $1,296,000 - ($1,296,000 × 0.25) = $972,000.
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Elston Company compiled the following financial information as of December 31, 2017: Service revenue $700,000 Common stock 180,000 Equipment 240,000 Operating expenses 750,000 Cash 210,000 Dividends 60,000 Supplies 30,000 Accounts payable 120,000 Accounts receivable 90,000 Retained earnings, 1/1/17 450,000
Elston's retained earnings on December 31, 2017 are:
Answer:
Elston's retained earnings on December 31, 2017 are: 340,000
Explanation:
We are asked for ending Retained Earnings that is Calculate as follows:
[tex]$$Beginning Retained Earnings$$$+/- Net Income or Net Loss$$$- Dividends$$$Equals Ending Retained Earning[/tex]
So our first step would be to know net income:
[tex]$$Net Income = Revenue - Expenses[/tex]
Revenue = 700,000 Expenses = 750,000
Net Loss = 50,000
Now, along with the other givens. We are able to calculate the Ending Retained Earnings
Dividends = 60,000
Beginning Retained Earnings = 450,000
[tex]450,000 - 50,000 - 60,000 = 340,000[/tex]
The ending RE is 340,000
Final answer:
Elston Company's retained earnings as of December 31, 2017, are calculated by subtracting the net loss and dividends from the beginning retained earnings, which totals $340,000.
Explanation:
The subject of the question is to calculate the retained earnings of the Elston Company as of December 31, 2017. To determine the retained earnings, we need to consider the company's net income or loss and dividends. We begin with the retained earnings at the start of the year (Retained earnings, 1/1/17) and then adjust for the net income (or loss) and the dividends paid during the year.
The formula to calculate the ending retained earnings is:
Retained earnings, end of year = Retained earnings, beginning of year + Net Income (or Loss) - DividendsIn Elston's case:
Retained earnings, beginning of year (1/1/17): $450,000Net Income: Service revenue ($700,000) - Operating expenses ($750,000) = -$50,000 (net loss)Dividends: $60,000So the retained earnings at the end of 2017 would be:
$450,000 (beginning retained earnings) - $50,000 (net loss) - $60,000 (dividends) = $340,000 (retained earnings, end of year).A television costs $100, but a new excise tax law imposes a $5 tax on the sale of the set. If Takeshi wants to buy a television, what would have to be his minimum willingness to pay? $105 more than $105 $100 between $100 and $105
Answer:
$105
Explanation:
It is obvious when any tax is imposed on the product it is ultimately collected from the consumer. Here, original cost was $100.00 and thereafter new excise tax of $5.00 on sales is imposed.
Which resulted in increase in price of Television from $100.00 to $105.00
Therefore, when a normal consumer buys such Television he shall be willing to pay $105.00
The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 20% a year for the next four years and then decreasing the growth rate to 5% per year. The company just paid its annual dividend in the amount of $1.00 per share. What is the current value of one share if the required rate of return is 9.25%?
Answer:
Intrinsic Value = $38.0025
Explanation:
[tex]\left[\begin{array}{ccc}Year&Dividends&Present \: Value\\0&1&-\\1&1.2&1.0984\\2&1.44&1.2065\\3&1.728&1.3252\\4&2.0736&1.4556\\5&51.2301&32.9168\\Intrinsic&Value&38.0025\\\end{array}\right][/tex]
Fist, we calcualte the increase of the dividends, by multipling by (1+growth) 1.20 until year 4.
At year 5 we multiply by 1.05
Because from here the company will have a fixed growth rate, we can apply the dividend growth model
[tex]\frac{divends}{return-growth} = Intrinsic \: Value[/tex]
1.52838/ (0.0925-0.05) = 51.2301
Next we have to bring all these dividends, which are placed in futures date, to present value:
[tex]\frac{Principal}{(1 + rate)^{time} } = PV[/tex]
for example
[tex]\frac{1.728}{(1 + 0.0925)^{3} } = PV[/tex]
PV = 1.3252
Lastly, we add all the PV to get the intrinsic value of the share today.
MNO Corporation uses a job-order costing system with a predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:Total estimated direct labor-hours 50,000Total estimated fixed manufacturing overhead cost $ 285,000Estimated variable manufacturing overhead per direct labor-hour $ 3.80Recently, Job P123 was completed with the following characteristics:Total actual direct labor-hours 20Direct materials $ 710Direct labor cost $ 500The total job cost for Job P123 is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
Total cost for Job P123 = $1,400
Explanation:
For Job P123 we have following information
Total labor hours = 20
Direct Materials = $710
Direct Labor cost = $500
Manufacturing Overhead cost = 20 hours X $3.8 per labor hour = $76
Fixed Manufacturing Overhead Cost Allocated to this job =
($285,000 / 50,000 ) X 20 hours = $114
The total cost for Job P123 = $710 + $500 + $76 + $114 = $1,400
Note: Fixed Manufacturing cost is allocated based on number of actual direct labor hours, as the entire activity of the organisation is not provided.
The total cost for Job P123 = $1,400
Our company originally issued 1,000 shares of $1 par value common stock for $9 per share. We repurchased 200 shares of the stock as treasury stock for $10 per share. On September 5, we sold 100 shares of treasury stock for $12 per share. What account(s) and amount(s) would we credit when we record the journal entry for the September 5 transaction? (a) cash, $2,000 (b) treasury stock, $2,000 (c) treasury stock, $18,000 (d) cash, $18,000.
Answer:
D.cahs $18,000
Explanation:
cash $18,000
$2,000, account(s) and amount(s) would we credit when we record the journal entry for the September 5 transaction. So, the journal entry is Cash $2,000…dr.
Treasury Stock $2,000…. Cr.
In this instance, we sold 100 shares of treasury stock at a price of $12 each, resulting in total profits of $1,200 ($12 x 100 shares). The initial cost of the repurchased treasury stock was $10 per share, making the whole price $2,000 ($10 x 200 shares).
We would credit the cash account with the $2,000 received in order to record the sale. The treasury stock account is likewise credited, but only for $2,000 because that is how much the stock originally cost.
When selling treasury stock, the difference between the cash received and the stock's cost will be recorded as a gain or loss.
Journal entry is:
Cash $2,000Treasury Stock $2,000Learn more about on journal entry, here:
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The process whereby Starbucks works to provide satisfying jobs, a positive work environment, and fair compensation and benefits is called human resource management (HRM). True or False
Answer:
The answer is True.
Explanation:
When Starbucks chose to focus on improving these aspects at work, Starbucks is engaging in human resources management initiatives that put employee first. There are many form of human resources management activities; those mentioned in the question include impacts through efforts made in the these HRM subfield: compensation and benefit, job design, and organizational culture.
What adjustments would need to be made in the Operating Section of the statement of cash flows prepared under the indirect method to account for the changes in the Accounts Payable and Accrued Expenses account balances for Google?
Explanation:
You will have to compare the Accounts payable of the current and previous year, and check the diference.
If the current year Account Payable is higher then the previous year, this means Google didn't pay as much, so it "save" cash for that diference so the diference will be positive.
If the opposite ocours, then Google pay more than previous year, so the diference will be posted as negatinve in the cash flow statment.
Accrued Expenses for this account, when doing the comparrison, if current is higher this means Google didn't pay as much expenses as it should be, so it save cash, the diference will be posted as positive.
If the actual is smaller, then Google pay more and the diference is posted as negtive.
Resuming, compare current with previous for each account,
when current is higher then adjustment is positive (save cash) when previous is higher then adjustment is negative(use cash)Which of the following statements is CORRECT? Preferred stockholders have a priority over bondholders in the event of bankruptcy to the income, but not to the proceeds in a liquidation. The preferred stock of a given firm is generally less risky to investors than the same firm's common stock. Corporations cannot buy the preferred stocks of other corporations. Preferred dividends are not generally cumulative.
Answer:
(B) The preferred stock of a given firm is generally less risky to investors than the same firm's common stock
Explanation:
(A) preferred shareholders have the rights to company assets first FALSE
(B) the preferred shareholders receive dividends before the common stock, and their dividend can be cumulative over time. So their risk is lower than common stock. TRUE
(C) corporation can purchase the preferred stock of other corporation FALSE
(D) the preferred dividends can be cumulative FALSE
Final answer:
Preferred stockholders have priority over bondholders in bankruptcy. Preferred stock is less risky than common stock.
Explanation:
Preferred stockholders have priority over bondholders in the event of bankruptcy to the income, but not to the proceeds in a liquidation. Preferred stock is generally less risky to investors than common stock, as it pays fixed dividends and enjoys a favored position in case of liquidation.
At 12 weeks‘ gestation, a client who is Rh negative expels the total products of conception. What is the nursing action after it has been determined that she has not been previously sensitized?
Answer:
In most cases, your blood will not mix with your babies until delivery.
It takes a while to make antibodies that can affect the baby, so during the first pregnancy the baby should not be affected. If you are Rh-negative and are not sensitized. Your doctor may have the blood test repeated between 24 and 28 weeks of pregnancy. If the test still shows that you still have not been sensitized, you probably will not need another antibody test until delivery.
Explanation:
The nursing action that needs to be taken once it is decided that the client has not been formerly sensitized through red blood cells that are Rh-positive would be:
- Administering Rho(D) immune globulin within 72 hours.
The regime of offering "Rho(D) Immune Globulin" in the period of 72 hours would be the most appropriate nursing action post determination of the fact that the client has not been priorly crippled to Rh-positive blood cells. This will assist in preventing the kind from any future threats that might arise due to this negative evacuation of Rh-negative blood cells. Now, the immune globulin would neutralize any of the probable side effects and make the gestation entirely safe and secure.Learn more about "Gestation" here:
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Seeking to lower overall costs, a South Korean car manufacturer sources many of the parts for its cars from other Asian countries. This practice demonstrates the:
globalization of production.
globalization of markets.
emergence of global institutions.
regulation of the environment.
rivalry between countries.
Answer:
Seeking to lower overall costs, a South Korean car manufacturer sources many of the parts for its cars from other Asian countries. This practice demonstrates the: globalization of production. - first choice
You are the CEO of a company that has to choose between making a $100 million investment in either Russia or Poland. Both investments promise the same long-run return, so your choice of which investment to make is driven by considerations of risk. Assess the various risks of doing business in each of these nations. Which investment would you favor and why?
Answer: When assessing the risks of investment, one should consider the political, economic, and legal risks of doing business in either Russia or Poland. The risk in Russia would probably be considered higher than the risk in Poland since Poland has been a member state of the European Union since 1 May 2004, with the Treaty of Accession 2003 signed on 16 April 2003 in Athens as the legal basis for Poland's accession to the EU.
Poland has already gained benefits and stability offered by the EU. Russia, by contrast, is still many years away from even being in a position to be considered by the EU for membership.
Explanation: A diligent investor wouldn't put a penny in a risky country.
As a CEO of a company, one must decide to invest an amount like $100 million in Poland, if given an opportunity to choose between Russia and Poland, because this investment will result in less chances of being a risky investment.
What is the significance of an investment risk?An investment risk can be referred to or considered as the risk that is associated with the loss of capital, partly or wholly, while being involved in a monetary engagement into classes of investments. Risk assessment is an essential tool of identifying and reducing the risks associated with investments.
In the condition given above, the investment risks in Russia will be higher than in Poland. This is because Russia is a country with higher fluctuations in its economies over a longer period of time, and thus, Poland investment will be less risky.
Therefore, the significance regarding investment risks has been aforementioned.
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Which of the following is true of performance management? Select one: a. It focuses on analyzing employee performance by grouping them into predefined frequencies of performance ratings. b. It is a more specific process when compared to performance appraisal. c. It emphasizes instances of poor performance by employees. d. It is the ultimate goal of all performance-appraisal activities. e. It plays a role as part of the larger performance-appraisal process.
Answer: The following is true of performance management: It focuses on analyzing employee performance by grouping them into predefined frequencies of performance ratings.
Performance management are predefined activities that check whether the short term and long term goals are achieved in an effective and cost-effective manner. It also focus on the performance of an organization, a sector, an worker, or the activity.
Therefore, the correct option is (a.)
Performance management is a broad process within an organization with the aim to better employee performance and competence. It comprises the process of performance appraisal, with the latter's ultimate goal being effective performance management. It plays a critical role in a firm's human resources strategy, central to employee motivation, development, and retention.
Explanation:Performance management is an expansive process within an organization that aims at improving employee performance as well as enhancing their competence levels. It includes the process of performance appraisal but is not limited to it - the ultimate goal of all performance appraisal activities is to achieve effective performance management. Therefore, d. It is the ultimate goal of all performance-appraisal activities is the most accurate statement.
Performance appraisal is typically carried out multiple times a year, often involving a formal face-to-face meeting between the employee and their supervisor. This meeting provides a platform for communication about the employee’s performance, which could be praise for their excellent performance or concerns about aspects of their work needing improvement.
Overall, it is important to note that performance management is a critical aspect of an organization's human resources strategy, crucial to the motivation, development and retention of employees. It is a more comprehensive, ongoing process that consists of various performance appraisal activities, including feedback sessions, trainings, reward systems and progress monitoring.
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Alpha Company uses a process cost system. During 2017, Alpha had no beginning work in process inventory. During 2017, Alpha started 700 units. Alpha had 200 units in work in process at the end of 2017. These units were 50% complete with respect to materials. Use this information to determine the equivalent units for direct materials. (Round & enter final answers to nearest whole number of units)
Answer:
The equivalent units for direct materials is 800 units
Explanation:
The following information is giving in the question which is shown below:
1. Starting units = 700 units
2. Ending Work in progress = 200 units
3.Material = 50% of Ending WIP
= 100 units
By using these information, the equivalent units for direct materials is shown below:
= Starting units + units of Material
= 700 + 100
= 800 units
Thus, the equivalent units for direct materials is 800 units.
Suppose that global warming might raise sea levels such that much of Bangladesh would be flooded soon after the year 2050. The government of Bangladesh is considering two options for addressing this issue. Option 1 is to pay $8 billion today (year 2016) to reduce emissions. Option 2 is to build up levies in 34 years (year 2050) which is estimated to cost $25 billion at that time. Should government act now or later if the discount rate is 3%?
What is the present value of reducing emissions in year 2016? (Express your answer as an integer.)
What is the present value of building up levies in 34 years? (Include two digits after the decimal point.)
Should government act now or later, under these assumptions, and based on economic grounds?
To make this decision, the government of Bangladesh needs to make a cost-benefit analysis between the two options.
The present value shows the cost of reducing emissions in the year 2016: $ 8bi
The value of the future rate should be calculated by financial mathematics, by the compound interest formula for the future value. Let's find out how much the present value in 2016 $ 8bi will be worth in 2050.
Future value = Present Value (1 + i) ^ n
Where: i = interest rate = 3% per annum
n = number of periods = 34
Future Value = 8,000,000,000 (1 +0.03) ^ 34
Future value = 21,855,242,364
Therefore, comparing both costs for the year 2050
2016: $ 21bi
2050: $ 25bi
The government should invest now because it will cost US $ 4 billion.
Which of the following statements is FALSE? A. Emergency plans ensure that all resources can be obtained through internal sources within the jurisdiction. B. Emergency plans delineate roles and responsibilities. C. Emergency plans clarify how functions and activities are to be coordinated and how they complement one another. D. Emergency plans communicate what should happen, why it is done, and what to expect from it.
Answer: the one that is false is A. Emergency plans ensure that all resources can be obtained through internal sources within the jurisdiction.
A. Emergency plans ensure that all resources can be obtained through internal sources within the jurisdiction. the statements is FALSE.
What is jurisdiction of the court?To have jurisdiction, a court must have authority over the subject matter of the case and. the court must be able to exercise control over the defendant, or the property involved must be located in the area under the court's control.
What are the 4 types of jurisdiction?The 5 Types of Jurisdiction That May Apply to Your Criminal Case
Subject-Matter Jurisdiction.Territorial Jurisdiction.Personal Jurisdiction.General and Limited Jurisdiction.Exclusive / Concurrent Jurisdiction.To learn more about jurisdiction, refer
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Jethroe Co. reported a retained earnings balance of $200,000 at December 1, 2018. In June 2019, Jethroe discovered that merchandise costing $50,000 had not been included in inventory in its 2018 financial statements. Jethroe has a 35% tax rate. What amount should Jethroe report as adjusted beginning retained earnings in its statement of retained earnings at December 31, 2019?
Answer:
Adjusted opening balance of retained earnings in its statement of retained earnings at December 31, 2019 = $232,500
Explanation:
Provided inventory of $50,000 not included in stock of the year 2018, which means closing inventory is understated with the same amount for the year 2018, which concludes profit of the year 2018 are understated with the same amount.
Now if that amount is added to closing inventory then profits for the year 2018 will increase net profit will increase by $50,000 - Taxes @35%
Net profit understated = $50,000 - ($50,000 X 35%) = $32,500
Balance of retained earnings at year end will be $200,000 + $32,500 = $232,500
Thus adjusted opening balance of retained earnings in its statement of retained earnings at December 31, 2019 = $232,500
To calculate the adjusted beginning retained earnings, subtract tax expense from net income by adjusting for the merchandise cost.
Explanation:The amount that Jethroe Co. should report as adjusted beginning retained earnings in its statement of retained earnings at December 31, 2019 can be calculated by subtracting the tax expense from the net income.
First, calculate the net income by subtracting the merchandise cost of $50,000 that was not included in the 2018 financial statements.Next, calculate the tax expense by multiplying the net income by the tax rate of 35%.Finally, subtract the tax expense from the net income to find the adjusted beginning retained earnings.For example, if the net income after adjusting for the merchandise cost is $250,000, then the tax expense would be $87,500 (35% of $250,000). Therefore, the adjusted beginning retained earnings would be $162,500 ($250,000 - $87,500).
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Astro Co. sold 20,600 units of its only product and incurred a $55,028 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018’s activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $156,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales $ 784,860 Variable costs 627,888 Contribution margin 156,972 Fixed costs 212,000 Net loss $ (55,028 ) Prepare a forecasted contribution margin income statement for 2018 that shows the expected results with the machine installed. Assume that the unit selling price and the number of units sold will not change, and no income taxes will be due.
Answer:
Explanation:
Contribution : Contribution tells the availability of funds. It is computed by taking a difference of sales and variable cost.
The equation to compute net income is shown below:
Sales - Variable cost = Contribution ;
Contribution - Fixed expense = Net income
For computing the foretasted contribution for 2018, the following information is need to be considered which is shown below.
1. As for variable cost, 50% should be recognized i.e 627,888 × 50% = $313,944
2. The fixed cost is increased by $156,000. So the revised fixed cost = 212,000 + $156,000 = $368,000
3. Other things remain same.
The calculation attachment is given below: