Answer: Option C
Explanation: Primary market refers to the market in which the securities are sold to the general public for the first time by the companies. In simple words, the initial public offering process takes place in such markets. The securities could be of any type whether debt, equity or preference.
The market in which existing securities are bough and sold is called secondary market. And the commission is paid in both secondary and primary market.
Hence the correct option is C.
Sunland Company uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows:
Units Per unit price Total
Balance, 1/1/2017 290 $5.00 $1450
Purchase, 1/15/2017 140 ..5.10 714
Purchase, 1/28/2017 140 ..5.30 742
An end of the month (1/31/2017) inventory showed that 230 units were on hand. How many units did the company sell during January 2017?
Sunland Company sold 340 units in January 2017. The calculation is based on the initial inventory, the purchased units, and the remaining units in inventory at the end of the month.
Explanation:To calculate the number of units sold by Sunland Company in January 2017, we first need to find the total number of units at the beginning of the month and the purchases made during the month. Initially, the balance shows 290 units. Then on 1/15/2017, there was a purchase of 140 units, and on 1/28/2017, another 140 units were purchased.
Thus, the total units available in January 2017 were: (290 initial units) + (140 units purchased on 15th) + (140 units purchased on 28th) = 570 units.
At the end of the month, the inventory showed that 230 units were left, which means the company sold the rest. Therefore, the number of units sold is total units available - units left in inventory = 570 units - 230 units = 340 units. That means Sunland Company sold 340 units in January 2017.
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Next, imagine that you are a manager of a start-up company with limited cash and resources. In your initial post, describe the types of motivators that you might employ as you develop your culture and attract good talent to your company. Explain why you have selected these motivators.
Answer: I want employees who are like-minded with the values and best practices in my company .
Explanation: Having a candidate attraction strategy that speaks to your company culture will increase the likeliness of attracting and engaging talent who will thrive and stay with you longer.Hiring talent that doesn’t align with your company culture creates personal conflict within the employee that will no doubt impact their work and those they work with It’s your responsibility as an employer to set your employees up for success, and making sure their values and work ethic is in line with your culture before extending an offer is the very first thing you can do for them and the rest of your workforce.Company culture expresses what the organization’s expectations, values and beliefs are and how the organization interacts with both its own employees and the people in the communities in which they do business .
Which of the following statements about property dividends is not true?
a. A property dividend is usually in the form of securities of other companies.
b. A property dividend is also called a dividend in kind.
c. The accounting for a property dividend should be based on the carrying value (book
value) of the nonmonetary assets transferred.
d. All of these statements are true.
Answer:
c. The accounting for a property dividend should be based on the carrying value (book
value) of the non-monetary assets transferred.
Explanation:
As per the Generally Accepted Accounting Principles which states the basic laws for accounting any transaction, states that,
The property dividends that is dividend distributed not in cash but dividend in the form of property like land and building, securities, other assets, etc: shall be recorded at net fair value.
These dividend are not recorded at carrying book values of the property given.
The statement of retained earnings or the statement of stockholders’ equity reconciles the net income, dividends paid, and the change in retained earnings during a particular year. Which of the following best describes shareholders equity? Equity is the initial claim on value of the assets before the firm pays off its liabilities. Equity is the difference between the company’s assets and liabilities.
Answer: "Equity is the difference between the company’s assets and liabilities" Describes shareholders equity.
Explanation: This statement is reflected in the basic equity equation:
Assets = Liabilities + Equity.
If we clear the net worth it would be:
Assets - Liabilities = Equity.
Shareholders' equity, often called stockholders' equity, represents the residual interest in a company's assets after liabilities are deducted. It's calculated as total assets minus total liabilities. It's influenced by net income earned and dividends paid out.
Explanation:Shareholders' equity, also known as stockholders' equity, represents the equity interest of the company's shareholders. It is essentially a company's residual interest in the assets of the entity after deducting liabilities. In simpler terms, equity is what's left after you subtract a company's total liabilities from its total assets, which could be distributed to the shareholders if the company was liquidated.
For instance, if a company has $100 million in assets and $75 million in liabilities, the Shareholders' equity is $25 million. This represents the net value of the company or the amount of money that would be returned to shareholders if all the company's assets were sold and all its debts paid off. Net income and dividends paid are significant components of shareholders' equity because the company can either use its profit to pay dividends to shareholders or retain it for future growth, both of which impacts shareholders' equity.
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Present value (with changing interest rates). Marty has been offered an injury settlement of $12 comma 000 payable in 3 years. He wants to know what the present value of the injury settlement is if his opportunity cost is 5%. (The opportunity cost is the interest rate in this problem.) What if the opportunity cost is 6.5%? What if it is 11.5%?
Answer:
If opportunity cost is 5%, PV=10,366.05
If opportunity cost is 6.5%, PV=9,934.19
If opportunity cost is 11.5%, PV=8,656.79
Explanation:
PV=Σ[tex](\frac{CF_{t} }{(1+i)^{t} })[/tex]
If opportunity cost is 5%: PV = [tex]\frac{12,000 }{(1+0.05)^{3} }[/tex] =10,366.05
If opportunity cost is 6.5%: PV = [tex]\frac{12,000 }{(1+0.065)^{3} }[/tex] =9,934.19
If opportunity cost is 11.5%: PV = [tex]\frac{12,000 }{(1+0.115)^{3} }[/tex] =8,656.79
Which of the following statements is true of a distribution channel?
a. It is almost synonymous with demand chains.
b. It traditionally encompasses outbound logistics.
c. It handles the entire process of value creation.
d. It inhibits any contribution to the world's GDP.
Answer:
The answer is: A) It is almost synonymous with demand chains.
Explanation:
A company´s distribution channel is the chain of businesses through which a good passes until it reaches its final customer.
An extremely simple example would be: Factory - Wholesale distributor - Local retail store - Customer
A demand chain is just the distribution channel but seen through the eye of the customer. It answers the following question: The good that I just bought passed through which businesses in order for me to get it?
The demand chain for the previous example would be: Customer - Local retail store - Wholesale distributor - Factory
A reserve price is a minimum price set by the auctioneer. If no bidder is willing to pay the reserve price, the item is unsold at a profit of $0 for the auctioneer. If only one bidder values the item at or above the reserve price. An auctioneer faces two bidders, each with a value of either $30 or $80, with both values equally probable. What reserve price should the auctioneer set, and what is the expected revenue from auctioning the item with and without a reserve price?
The auctioneer should set the reserve price at $30. The expected revenue from auctioning the item without a reserve price is $55.
Explanation:To determine the reserve price, we need to consider the values of the two bidders and their probabilities. In this case, both bidders have equal probabilities of valuing the item at $30 or $80. The auctioneer should set the reserve price at $30, the minimum value that one bidder may have. This way, if one bidder values the item at $30 or higher, the auctioneer can sell it, earning a profit of $30. If neither bidder values the item at $30 or higher, the item remains unsold, resulting in a profit of $0 for the auctioneer.
The expected revenue from auctioning the item without a reserve price can be calculated by multiplying the probability of each bidder value by the price the auctioneer receives for that bidder's value.
If one bidder values the item at $30, the probability is 1/2 and the auctioneer receives $30, resulting in an expected revenue of $30 * 1/2 = $15.If one bidder values the item at $80, the probability is 1/2 and the auctioneer receives $80, resulting in an expected revenue of $80 * 1/2 = $40.Therefore, the total expected revenue from auctioning the item without a reserve price is $15 + $40 = $55.
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The contribution margin ratio of Candle Corporation's only product is 65%. The company's monthly fixed expense is $455,300 and the company's monthly target profit is $41,300. Required: Determine the dollar sales to attain the company's target profit. (Round your answer to the nearest whole dollar amount.)
Answer:
Break-even point in dollars= $764,000
Explanation:
Giving the following information:
The contribution margin ratio of Candle Corporation's only product is 65%.
The company's monthly fixed expense is $455,300.
The target profit is $41,300.
Break-even point in dollars= (fixed costs + profit)/contribution margin ratio
Break-even point in dollars= (455300+41300)/0.65
Break-even point in dollars= $764,000
An elderly physician has built up his own practice into a quite valuable business. Now that he is thinking of retiring, he wants to take on a partner to learn the business and eventually buy the practice in three years. Her compensation will be a salary plus 25% of the profits if they are below the historical average and 50% for any increase above the historical average. The eventual purchase price for the practice will be 5 times the average profits over the three years. Discuss the efficiency aspects of such a contract. Are the incentives of the buyer and seller aligned?
Answer:
No
Explanation:
Tehe Overlapping tenure for the retiring and new physicians tends to increase the transfer of practice specific knowledge. The profit sharing with the new physician increases her incentives to maximize profits but since the sale price is a multiple of the profits during this 3 year, the new physician has an incentive to shirk to keep the profits low. it would be better to use a multiple of profits from the period before she began this probation.
Final answer:
The contract aligns the incentives of both the retiring physician and the incoming partner by using a tiered profit-sharing scheme and a purchase price based on average profits. This promotes efficiency and growth of the practice but could also lead to potential drawbacks like short-term focus and compromise in care quality.
Explanation:
The contract under consideration provides a form of profit-sharing compensation, where the new partner will earn a salary plus a percentage of profits. If profits are below the historical average, the partner receives 25% of the profits, and for any increase above the historical average, the partner's share jumps to 50%. The eventual purchase price of the practice is set at five times the average profits over a three-year span, incentivizing both parties to maximize profits during this period. From an efficiency standpoint, this contract aligns the incentives of the buyer and seller. The tiered profit-sharing agreement encourages the new partner to increase profits beyond the historical average, therefore boosting their personal earnings and raising the practice's sale price. The retiring physician, in turn, is incentivized to ensure a smooth transition and operational success, as this will maximize the practice's value at the time of the sale. This alignment of incentives can create an environment for growth and could potentially increase the quality and reputation of the practice. However, there are potential drawbacks. If not carefully managed, the focus on increasing profits may lead to short-term decision-making that sacrifices long-term sustainability or ethical considerations. Additionally, the pressure to increase profits might lead to cost-cutting measures that could compromise patient care or employee satisfaction.
The revenues and expenses of Sunset Travel Service for the year ended April 30, 2014,
are listed below.
Fees earned $1,673,000
Office expense 488,000
Miscellaneous expense 34,000
Wages expense 660,000
Prepare an income statement for the current year ended April 30, 2014.
Answer:
Net profit= $491,000
Explanation:
An income statement is one of the three important financial statements used for reporting a company's financial performance over a specific accounting period. The income statement focuses on the four key items - revenue, expenses, gains, and losses. It does not cover receipts (money received by the business) or the cash payments/disbursements (money paid by the business).
It follows the general structures:
Revenues (+)
Operating Revenue
Non-Operating Revenue
Total
Expenses (-)
Primary Activity Expenses
Secondary Activity Expenses
Total
Gains (+)
Losses (-)
Net income/loss
In this exercise:
Total revenues=$1,673,000
Expenses:
Office expense 488,000
Miscellaneous expense 34,000
IWages expense 660,000
Total Expenses=$1,182,000
Net profit= $491,000
Hank Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 210-gallon batch. 3,300 ounces of grape concentrate at $0.03 per ounce 357 pounds of granulated sugar at $0.36 per pound 294 lemons at $0.63 each 840 yeast tablets at $0.28 each 1,050 nutrient tablets at $0.11 each 3,100 ounces of water at $0.001 per ounce Hank estimates that 1% of the grape concentrate is wasted, 15% of the sugar is lost, and 30% of the lemons cannot be used. Compute the standard cost of the ingredients for one gallon of wine. (Round intermediate calculations and final answer to 2 decimal places, e.g. 1.25.) Standard Cost Per Gallon $
Answer: $4.140 per gallon
Explanation:
Costs including wastage for 210 gallons:
3,300 ounces of grape concentrate at $0.03 per ounce:
= [tex]3,300\times\frac{0.03}{0.99}[/tex]
= 100
357 pounds of granulated sugar at $0.36 per pound :
= [tex]357\times\frac{0.36}{0.85}[/tex]
= 151.2
294 lemons at $0.63 each = [tex]294\times\frac{0.63}{0.70}[/tex]
= 264.6
840 yeast tablets at $0.28 each = 840 × 0.28
= 235.2
1,050 nutrient tablets at $0.11 each = 1,050 × 0.11
= 115.5
3,100 ounces of water at $0.001 per ounce = 3,100 × 0.001
= 3.1
Hanks estimates that,
1% of the grape concentrate is wasted
15% of the sugar is lost
30% of the lemons cannot be used
Hence,
Cost for 210 gallons = 100 + 151.2 + 264.6 + 235.2 + 115.5 + 3.1
= $869.6
Hence, cost per gallon = [tex]\frac{Cost\ for\ 210\ gallons}{210\ gallons}[/tex]
= [tex]\frac{869.6}{210}[/tex]
= $4.140 per gallon
The standard cost of the ingredients for one gallon of wine, considering all the wastes and losses is calculated as $3.29.
Explanation:To find the standard cost of the ingredients for one gallon of wine, we first compute the cost for each ingredient.
The cost for grape concentrate is 0.03*3300 = $99. However, since 1% is wasted, the usable cost becomes $99*0.99 = $98.01.
The cost for granulated sugar is 0.36*357 = $128.52. As 15% is lost, the usable cost would be $128.52 *0.85 = $109.24.
The cost for lemons is 0.63*294=$185.22. With 30% not usable, the cost becomes $185.22*0.70 = $129.65.
The cost for yeast tablets is 0.28*840 = $235.20 and for nutrient tablets, it's 0.11*1050 = $115.50. For water, the cost is 0.001*3100 = $3.10.
To find the total cost of ingredients for the 210-gallon batch, we add up all the calculated costs, which equals to $690.70. Dividing this by 210, we get $3.29 as the standard cost per gallon.
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Which of these is an example of third-degree price discrimination?
(A) charging different prices to consumers at a flea market
(B) charging different prices at a used car dealership
(C) charging block rates on utilities
(D) charging airline business passengers and regular travelers different prices
Answer:
(D) charging airline business passengers and regular travelers different prices
Explanation:
Third degree price discrimination – the price varies according to consumer attributes such as age, sex, location, and economic status. Price discrimination is present throughout commerce. Examples include airline and travel costs, coupons, premium pricing, gender based pricing, and retail incentives.
On March 3, Splish Brothers Inc. sells $666,900 of its receivables to National Factors Inc. National Factors Inc. assesses a service charge of its receivables to Western Factors Inc. Western Factors Inc. assesses a service charge of 5% of the amount of receivables sold. Prepare the entry on Sheridan Company books to record the sale of the receivables.
Answer:
cash 633,555 debit
loss on factoring 33,345 debit
accounts receivable 666,900 credit
--to record sales of receivables--
Explanation:
666,900 x 5% fee = 33,345 factoring expense
666,900 - 33,345 = 633,555 cash proceeds
we will write-off the erceivable sold.
We will increase our cash and recognize the loss on the factoring
When Splish Brothers Inc sold its receivables to National Factors Inc., a fee of $33,345 was charged. They received a net amount of $633,555. The process involves debiting cash and service charge expenses while crediting accounts receivable.
Explanation:Splish Brothers Inc. sold its receivables worth $666,900 to National Factors Inc. The service charge assessed by National Factors Inc. on the receivables sold is 5%. So, the charges incurred would be 5% of $666,900 i.e. $33,345. Therefore, the book keeping entry for this transaction would show:
Debit: Cash $(666,900 - 33,345) = $633,555 (Net amount received)Debit: Service Charge Expense $33,345 (Fees to National Factors Inc.)Credit: Accounts Receivable $666,900 (Amount of receivables sold)Learn more about Accounting for Receivable Sale here:https://brainly.com/question/17233316
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Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2010, Deutscher-Menzies sold Arkie under the Shower, a painting by renowned Australian painter Brett Whiteley, at auction for a price of $1,100,000. Unfortunately for the previous owner, he had purchased it three years earlier at a price of $1,680,000. What was his annual rate of return on this painting?
Answer:
the annual rate of return on the painting was -13.17%
Explanation:
we will construct the equation for future value at the annual rate of return at which a principal of 1,680,000 return 1,100,000 in three years:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal 1,680,000
time 3 years
Amount 1,100,000
rate r
[tex]1,680,000 \: (1+ r)^{3} = 1,100,000[/tex]
[tex]r = \sqrt[3]{ 1,100,000 \div 1,680,000} -1[/tex]
r = -0.131650681 = -13.17%
As expected, because the amount after three years is lower than the principa the rate of return is negative
Final answer:
The annual rate of return on the painting 'Arkie under the Shower,' after being purchased for $1,680,000 and sold for $1,100,000 over three years, is approximately -12.99%.
Explanation:
The question asks for the calculation of the annual rate of return on an investment in art. The previous owner purchased 'Arkie under the Shower' for $1,680,000 and sold it for $1,100,000 three years later. To calculate the annual rate of return, we use the formula for compound interest [tex](A = P(1 + r)^n)[/tex], where A is the final amount, P is the principal amount, r is the rate of return per period, and n is the number of periods. Inverting this formula to solve for r gives us [tex]r = ((A/P)^(^1^/^n^)) - 1[/tex]. Plugging in the numbers: [tex]r = (($1,100,000 / $1,680,000)^(^1^/^3^)) - 1[/tex], which gives an annual rate of return of approximately -12.99%.
The Betterbilt Construction Company designs and builds residential mobile homes. The company is ready to construct, in sequence, 16 new homes of 2,400 square feet each. The successful bid for the construction materials in the first home is $64,800, or $27 per square foot. The purchasing manager believes that several actions can be taken to reduce material costs by 8% each time the number of homes constructed doubles. Based on this information, a. What is the estimated cumulative average material cost per square foot for the first five homes? b. What is the estimated material cost per square foot for the last (16th) home?
Answer:
(a) The estimated cumulative average material cost per square foot for the first five homes is $24.47.
(b) The estimated material cost per square foot for the last (16th) home is $19.34.
Explanation:
(a) If the cost its reduced by 8% every time the number of homes is doubled, we can express the cost of the first five houses as
C1 = C
C2 = C*(1-0.08)=0.92*C
C3 = C2 = 0.92*C
C4 = C2*(1-0.08)=0.92*0.92*C = 0.8464*C
C5 = C4 = 0.8464*C
Then, the average cost of the first five houses is
[tex]\bar{C}=(1/5)*(C1+C2+C3+C4+C5)\\\\\bar{C}=(1/5)*(C+0.92C+0.92C+0.8464C+0.8464C)\\\\\bar{C}=(1/5)*4.5328*C = 0.90656*C=0.90656*27=24.47[/tex]
The estimated cumulative average material cost per square foot for the first five homes is $24.47.
For the 16th home, the number we can estimate that the number of homes double 4 times: at house number 2,4, 8 and 16.
Other way to calculate that is [tex]n=log_2(16)=4[/tex]
We can write the cost of the 16th house as
[tex]C_{16}=0.92*C_8=0.92^{2} *C_4=0.92^{3} *C_2=0.92^{4} *C\\\\C_{16}=0.92^{4} *C=0.716*C=0.716*27=19.34[/tex]
The estimated material cost per square foot for the last (16th) home is $19.34.
The estimated cumulative average material cost per square foot for the first five homes is $22.61. The estimated material cost per square foot for the 16th home is $16.42.
Explanation:To find the estimated cumulative average material cost per square foot for the first five homes, we need to apply the 8% reduction in material costs each time the number of homes doubles. Let's calculate:
The material cost for the first home is $27 per square foot, so the estimated material cost for the second home would be $27 - 8% of $27 ($2.16) = $24.84 per square foot.The estimated material cost for the third home would be $24.84 - 8% of $24.84 ($1.99) = $22.85 per square foot.The estimated material cost for the fourth home would be $22.85 - 8% of $22.85 ($1.83) = $21.03 per square foot.The estimated material cost for the fifth home would be $21.03 - 8% of $21.03 ($1.68) = $19.35 per square foot.Therefore, the estimated cumulative average material cost per square foot for the first five homes is $(27+24.84+22.85+21.03+19.35)/5 = $22.61 per square foot.
To find the estimated material cost per square foot for the last (16th) home, we need to apply the 8% reduction eight times since the number of homes doubles four times.
The estimated material cost for the 16th home would be $27 - (8% of $27) * 8 = $16.42 per square foot.
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Vista Camera Services started the year with total assets of $ 100 comma 000 and total liabilities of $ 55 comma 000. The revenues and the expenses for the year amounted to $ 120 comma 000 and $ 80 comma 000, respectively. During the year, the company did not issue any common stock, but it distributed dividends of $ 50 comma 000. What is the amount of stockholders' equity at the end of the year?
Answer:
The amount of stockholders' equity at the end of the year is $35,000
Explanation:
For computing the ending balance of the stockholder equity, first we have to compute the beginning balance of equity which is shown below:
Total assets = Total liabilities + stockholder equity
$100,000 = $55,000 + stockholder equity
So, stockholder equity = $100,000 - $55,000
= $45,000
Now the ending balance of stockholder equity would equal to
= Opening balance of stockholder equity + revenues - expenses - dividend paid
= $45,000 + $120,000 - $80,000 - $50,000
= $35,000
On September 1, 2012, Valdez Company reacquired 16,000 shares of its $10 par value common stock for $15 per share. Valdez uses the cost method to account for treasury stock. The journal entry to record the reacquisition of the stock should debit
a. Treasury Stock for $160,000.
b. Common Stock for $160,000.
c. Common Stock for $160,000 and Paid-in Capital in Excess of Par for $60,000.
d. Treasury Stock for $240,000
Answer:
d. Treasury Stock for $240,000
Explanation:
The journal entry for re-acquisition of the stock under the cost method is shown below:
Treasury stock A/c Dr $240,000
To Cash A/c $240,000
(Being the stock are reacquired for cash)
The $240,000 amount should be come from
= Number of shares × common stock per share
= 16,000 shares × $15
= $240,000
Since the stock is reacquired so we used the treasury stock account instead of the common stock account
As you know, Barbie has broken up with her long term squeeze, Ken. She's decided she wants to get involved in some projects to keep her mind off heart-broken Ken. So Barbie decided to create a clothing line, snack foods, hair products, and new aerobics equipment. All of these products will be manufactured in Barbie's very own pink factory and will be sold with the Barbie brand on them. This type of branding is best described as:
Answer:
This type of branding is best described as Brand extension
Explanation:
Barbie create products of different categories and the existing brand name is extended to a new product category. Brand extension strategy assumes an existing brand name, but combines it with a new product category. Benefits of this strategy are instant recognition and faster acceptance and saving substantial advertising costs. The risk is that may confuse the image of the main brand.
Final answer:
Barbie is using a corporate branding strategy to leverage her brand's reputation across a variety of new products. This approach helps to ensure consistency and recognition among consumers, building brand trust and loyalty, much like the branding strategies used by other successful companies.
Explanation:
The branding strategy that Barbie is adopting for her new ventures can be described as a corporate branding strategy. This approach involves using the Barbie brand, which already has a strong presence and recognition, across a variety of products such as clothing, snack foods, hair products, and aerobics equipment. By doing so, Barbie is leveraging her brand's reputation to create synergies among her product offerings and ensuring that consumers receive a consistent message across multiple platforms and sources.
This strategy is akin to other corporate branding strategies where a central theme or image, such as Abercrombie & Fitch's "casual luxury" or the physical aspects of a product touted in advertisements (unbreakable bottle, nonstick surface, etc.), is used to unify a range of products. The use of a strong, recognizable brand name helps in building trust and loyalty among consumers while also facilitating the entry of new products into the market.
Furthermore, as Naomi Klein pointed out in her text No Logo, such branding practices are deeply woven into the fabric of modern economies, shaping consumer behaviors and corporate dynamics alike. Companies aim to protect and capitalize on their brands, which often become their most valuable assets.
Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its factory. Classify the below items into the following categories: (a) direct materials, (b) direct labor, and (c) manufacturing overhead. Item Category 1. Salaries for assembly line inspectors. select a category 2. Insurance on factory machines. select a category 3. Property taxes on the factory building. select a category 4. Factory repairs. select a category 5. Upholstery used in manufacturing furniture. select a category 6. Wages paid to assembly line workers. select a category 7. Factory machinery depreciation. select a category 8. Glue, nails, paint, and other small parts used in production. select a category 9. Factory supervisors’ salaries. select a category 10. Wood used in manufacturing furniture.
Answer:
1. Salaries for assembly line inspectors - Direct labor or Manufacturing overhead
2. Insurance on factory machines - Manufacturing overhead
3. Property taxes on the factory building - Manufacturing overhead
4. Factory repairs - Manufacturing overhead
5. Upholstery used in manufacturing furniture - Direct materials
6. Wages paid to assembly line workers - Direct labor
7. Factory machinery depreciation - Manufacturing overhead
8. Glue, nails, paint, and other small parts used in production - Manufacturing overhead
9. Factory supervisors’ salaries - Manufacturing overhead
10. Wood used in manufacturing furniture - Direct materials
At the beginning of the year, Cullumber Company had total assets of $864,000 and total liabilities of $523,000. (Treat each item independently.) (a) If total assets increased $156,000 during the year and total liabilities decreased $86,000, what is the amount of stockholders’ equity at the end of the year? Stockholders’ equity $enter a dollar amount (b) During the year, total liabilities increased $91,000 and stockholders’ equity decreased $77,000. What is the amount of total assets at the end of the year? Total assets $enter a dollar amount (c) If total assets decreased $90,000 and stockholders’ equity increased $103,000 during the year, what is the amount of total liabilities at the end of the year? Total liabilities $enter a dollar amount
Answer:
a. $583,000
b. $878,000
c. $330,000
Explanation:
In this question, we have to use the accounting equation which is presented below:
Total assets = Total liabilities + stockholder's equity
$864,000 = $523,000 + stockholder's equity
So, the stockholder's equity = $864,000 - $523,000 = $341,000
a. New assets = Old assets + addition
= $864,000 + $156,000
= $1,020,000
New liabilities = Old liabilities - reduction
= $523,000 - $86,000
= $437,000
So, the stockholder's equity = $1,020,000 - $437,000 = $583,000
b. New liabilities = Old liabilities + addition
= $523,000 + $91,000
= $614,000
New equity = Old equity - reduction
= $341,000 - $77,000
= $264,000
So, the total assets = New liabilities + New equity
= $614,000 + $264,000
= $878,000
c. New assets = Old assets - reduction
= $864,000 - $90,000
= $774,000
New equity = Old equity + addition
= $341,000 + $103,000
= $444,000
So, the total liabilities = $774,000 - $444,000 = $330,000
Using the accounting equation (Assets = Liabilities + Stockholders' Equity) we find that at the end of the year the stockholders’ equity is $583,000 (a), total assets amount to $878,000 (b) and total liabilities sum up to be $330,000 (c).
Explanation:The subject of this question is business, specifically the calculation of asset, liability, and stockholder's equity values. Stockholder's equity represents the value of a business after all debts have been settled. It's calculated using the equation: Assets = Liabilities + Stockholder's equity.
For section (a), the initial stockholders' equity is $864,000 (assets) - $523,000 (liabilities) = $341,000. If assets increased by $156,000 to $1,020,000, and liabilities decreased by $86,000 to $437,000, then at the end of the year, stockholders' equity will be $1,020,000 - $437,000 = $583,000.
For section (b), if liabilities increased by $91,000 to $614,000, and the stockholders equity decreased by $77,000 to $264,000, then the total assets at the end of the year would be $614,000 (liabilities) + $264,000 (Stockholders’ equity) = $878,000.
In section (c), if the assets decreased $90,000 to $774,000, and the stockholders' equity increased by $103,000 to $444,000, then the total liabilities will be total assets - stockholders' equity = $774,000 - $444,000 = $330,000.
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In the RST partnership, Ron's capital is $80,000, Stella's is $75,000, and Tiffany's is $50,000. They share income in a 3:2:1 ratio, respectively. Tiffany is retiring from the partnership. Each of the following questions is independent of the others.
Refer to the above information. Tiffany is paid $60,000, and no goodwill is recorded. What is the Ron's capital balance after Tiffany withdraws from the partnership?
A. $74,000
B. $71,000
C. $75,000
D. $86,000
Answer:
A. $74,000
Explanation:
Since in this question, Tiffany is retired so we have to find the new ratio which is shown below:
As Tiffany take the shares of both the partners in 3: 2
So, the new ratio would be
Ron share = (3 ÷ 5) × (1 ÷ 6) = 3 ÷ 30
Stella share = (2 ÷ 5) × (1 ÷ 6) = 2 ÷ 30
So the ratio would be 3: 2
The 1 ÷ 6 is the Tiffany ratio
Now the balance after Tiffany withdraws from the partnership equals to
= Paid amount by Tiffany - Tiffany capital
= $60,000 - $50,000
= $10,000
Ron's given amount = ($10,000 × 3 ÷ 5) = $6,000
So, Ron's capital balance equals to
= Ron's capital - Ron's given amount
= $80,000 - $6,000
= $74,000
Floor Coverings reported the following summarized data at December 31, 2018. Accounts appear in no particular order, and all have normal balances. Prepare the trial balance of Smith Floor Coverings at December 31, 2018.
Service revenue %38,000
Equipment 45,000
Rent expenses 10,000
Common stock 25,000
Account payable 1,500
Dividens 12,900
Salaries payable 15,000
Salaries expenses 1,800
Cash 12,000
Accont receivable 4,000
Interest payable 7,500
Utility expanse 1,300
Answer:
Cash 12,000 debit
Accont receivable 4,000 debit
Equipment 45,000 debit
Account payable 1,500 credit
Salaries payable 15,000 credit
Interest payable 7,500 credit
Common stock 25,000 credit
Dividens 12,900 debit
Service revenue 38,000 credit
Salaries expenses 1,800 debit
Utility expanse 1,300 debit
Rent expenses 10,000 debit
Total 87,000 87,000 credit
Explanation:
Assets and expenses account will have a debit balance
Dividends will also have a debit balance
Then liabilities (payable) accounts, equity accounts (common stock) and revenues account have a credit balance
With this in mind we arrenge the accounts and create the trial balance.
Last, we add each column. This is to make sure it is correct, debit = credit
Final answer:
To prepare the trial balance of Smith Floor Coverings, each account with a normal balance is listed alongside the respective debit or credit columns. The trial balance shows that total debits equal total credits, which confirms that the ledger accounts are balanced.
Explanation:
To prepare the trial balance of Smith Floor Coverings at December 31, 2018, we need to list each account and its balance in the correct debit or credit column. A trial balance aims to verify that the total debits equal the total credits in the ledger accounts. The summarized data will be listed as follows:
AccountDebitCreditCash12,000Accounts Receivable4,000Equipment45,000Service Revenue38,000Rent Expenses10,000Salaries Expenses1,800Utility Expense1,300Account Payable1,500Interest Payable7,500Salaries Payable15,000Common Stock25,000Dividends12,900
Total
87,000
87,000
The trial balance totals for debits and credits should both be $87,000, showing that the ledger is balanced.
Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. Microeconomics Macroeconomics A firm's decision about the size of its new factory The effects of the Internet on the pricing of used cars The effect of a large government’s budget deficit on the economy's price level A consumer's optimal choice when buying a flat-screen TV
Explanation:
In this question we need to categorize the given statements in either micro or macro economics.
Micro economics deals with the economics at individual, group or company level. Macro economics deals with the economics at national or international level.
So the statements are categorized as follows:
1) A firm's decision about the size of its new Factory. Micro Economics.
2) The effects of the internet on the pricing of used cars. Macro Economics
3) The effect of a large government's budget deficit on the economy's price. Macro Economics.
4) A consumer's optimal choice when buying a flat screen TV. Micro Economics.
Final answer:
The firm's factory decision and a consumer's choice of TV fall under microeconomics, while the impact of the budget deficit on price levels is a macroeconomic issue. The effects of the Internet on pricing can relate to microeconomics.
Explanation:
Microeconomics vs. Macroeconomics
To determine whether the topics provided would be studied in microeconomics or macroeconomics, we look at the scale and scope of the issues. A firm's decision about the size of its new factory and a consumer's optimal choice when buying a flat-screen TV are individual decisions, thus they fall under microeconomics, which studies individual decision-making units such as consumers and firms.
On the other hand, the effects of the Internet on the pricing of used cars can be seen from both perspectives; however, it typically relates to market dynamics and therefore can be associated with microeconomics. The effect of a government's budget deficit on the economy's price level is a broad issue that impacts the economy as a whole, therefore it is studied within macroeconomics.
Why is the shape of the production possibilities frontier (PPF) often curved instead of straight? Because the production possibilities frontier is based on the productive capabilites, and of a nation overall, rather than the productive capacity of an individual. Typically, some resources are better suited for producing one good than another, which means that there are diminishing returns when moving such resources away from producing what they are best suited for. The productive efficiency of an economy decreases as it moves from left to right along the PPF. To take a potential sunk cost into account, the PPF is curved to distribute the burden of the sunk cost based on allocative effieciency.
Answer:
The correct answer is the second statement.
Explanation:
A production possibility frontier shows the maximum possible combinations of two goods that can be produced using the given resources. This frontier is concave to the origin. The curve shape of this frontier is because of increasing marginal opportunity cost.
We have limited resources that serve alternative uses. To increase the production of one commodity we need to decrease the production of the other. but the resources are not perfectly substitutable between these two goods. So when we increase the production of one good the marginal opportunity cost of the giving up the alternative goes on increasing.
Charles lackey operates a bakery in Idaho, Falls Because of its excellent product location, demand has increased by 35% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be backed at one time. this new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,800 loaves per month. Employees are paid $8.00 per hour. In addition to the labor cost, Charles has a constant utility cost per month of $800 and a per loaf ingredient cost of $0.40.
current multifactor productivity for 640 work hours per month=
Answer: 0.27 loaves per dollar
Explanation:
Given that,
Bakery currently makes(Output) = 1,800 loaves per month
Paid Employees = $8.00 per hour
Constant utility cost = $800 per month
Ingredient cost = $0.40 × 1,800
= $720
Wages = 640 work hours × $8.00 per hour
= $5,120 per month
Total cost (Input) = Ingredient cost + Wages + Constant utility cost
= $720 + $5,120 + $800
= $6,640
Where,
O/P - Output
I/P - Input cost
current multi factor productivity = [tex]\frac{O/p}{I/P\ cost}[/tex]
= [tex]\frac{1,800}{6,640}[/tex]
= 0.27 loaves per dollar
Assuming Net Income for the year is $250,000, what is the cash flows from operating activity given in the following information:
Increase in Salaries Payable $17,500
Depreciation Expense $7,500
Increase in Prepaid Rent $26,500
Loss on sale of asset $1,150
Increase in Accounts Payable $29,000
Increase in Inventory $76,000
Answer: $202,650
Explanation:
Given that,
Net Income for the year = $250,000
Increase in Salaries Payable = $17,500
Depreciation Expense = $7,500
Increase in Prepaid Rent = $26,500
Loss on sale of asset = $1,150
Increase in Accounts Payable = $29,000
Increase in Inventory = $76,000
Cash flows from operating activity:
= Net Income + Salaries Payable + Depreciation Expense - Prepaid Rent + Loss on sale of asset + Accounts Payable - Inventory
= $250,000 + $17,500 + $7,500 - $26,500 + $1,150 + $29,000 - $76,000
= $202,650
The following information is available for Windsor, Inc. for the year ended December 31, 2017. Beginning cash balance $ 45,720 Accounts payable decrease 3,759 Depreciation expense 164,592 Accounts receivable increase 8,331 Inventory increase 11,176 Net income 288,646 Cash received for sale of land at book value 35,560 Cash dividends paid 12,192 Income taxes payable increase 4,775 Cash used to purchase building 293,624 Cash used to purchase treasury stock 26,416 Cash received from issuing bonds 203,200 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer:
Cash generated for the year: 348,793
ending cash: 394,513
Explanation:
Operating Activities:
Net Income 288,646
depreciation 164,592
adjusted 453,238
change in Working capital:
AP decrease 3,759
Tax Payable 4,775
AR increase (8,331)
Inventory increase (11,176)
total change (10,973)
cash generated from operating activities 442.265
Investing Activities
proceed from land 35,560
purchase of building (293,624)
cash used from investing activities 258,064
Financing Activities
issuance of shares 203,200
TS purchase (26,416)
dividends paid (12,192)
cash generated from financing activities 164,592
Cash generated for the year: 348,793
beginning cash 45,720
ending cash 394,513
K. Johnson, Inc.'s managers want to evaluate the firm's prior-year performance in terms of its contribution to shareholder value. This past year, the firm earned an operating income return on investment of 12 percent, compared to an industry norm of 11 percent. It has been estimated that the firm's investors have an opportunity cost on their funds of 14 percent, which is the same as the firm's overall cost of capital. The firm's total assets for the year were $ 100 million. Compute the amount of economic value created or destroyed by the firm. How does your finding support or fail to support what you would conclude using ratio analysis to evaluate the firm's performance? Assume that the firm has no debt.
Answer:
The company destroyed 2,000,000 capital
As the returns are less than the cost of create the assets.
It is destroys wealth to the stockholders
Explanation:
operating return on investment 12%
industry 11%
opportunity cost 14% overall cost of capital
Assets: 100 millions
Economic Value Added:
income - Assets x WACC
as there is no debt , the WACC will be the cost of capital
Return: 100,000,000 x 12% = 12,000,000
Assetx x cost of capital
100,000,000 x 14% = 14,000,000
EVA = 12,000,000 - 14,000,000 = -2,000,000
The company destroyed 2,000,000 capital
As the returns are less than the cost of create the assets.
Which one of the following statements is not characteristic of mutual funds?
A. They are always considered to be financial institutions.
B. They raise money by selling shares to investors.
C. They pool the savings of many investors.
D. They offer professional management and portfolio diversification.
Answer: Option A
Explanation: Mutual funds are introduced by the financial institutions in the market and are not financial institutions themselves.
These funds collect money from various different investors and pool them together to invest in securities of different companies. These funds are managed by the investment professionals who receive both fixed and variable fees depending on the performance of portfolio.
The portfolio is divided into shares and such shares are then sold into the stock market.
Hence from the above we can conclude that option A.
how do debits to a bank accounts help us understand why subtracting a negative number result in addition?
Answer:
See explanation below
Explanation:
Subtracting a negative number result in addition, also as debiting a negative amount instead of crediting a positive number have the same outcome:
Debits to a bank account help us understand why subtracting a negative number results in addition.
Explanation:In accounting, a debit is an entry that represents an increase in assets or a decrease in liabilities. When we subtract a negative number, it is equivalent to adding a positive number. This is because subtracting a negative is the same as adding a positive. Let's take an example:
A bank account has a balance of $100.A debit of -$50 is made to the bank account.To find the new balance, we can subtract the negative number: $100 - (-$50).The subtraction can be rewritten as addition: $100 + $50.The new balance of the bank account is $150.Therefore, debits to a bank account help us understand why subtracting a negative number results in addition.