Answer:
Explanation:
The closing entry for the following accounts are shown below:
1. Service Revenue A/c Dr $101,520
To Income Summary $101,520
(Being revenue account closed)
2. Income summary A/c Dr $67,680
To Supplies Expense $5,640
To Salaries and Wages Expense $37,600
To Utility Expense $7,520
To Rent Expense $16,920
(Being expenses accounts are closed)
3. Income summary A/c Dr $33,840
To Retained earning $33,840
(Being the difference is credited to retained earning)
4. Retained earnings A/c Dr $20,680
To Dividend A/c $20,680
(Being dividend account is closed)
The student is asked to prepare closing entries for Cullumber Company, which involves closing all temporary accounts to Retained Earnings at year-end. This includes debiting revenue accounts, crediting expense accounts, and handling dividends to reset the balances of these accounts for the new accounting period.
The student is tasked with preparing the remaining closing entries for Cullumber Company at year-end, which involves closing all temporary accounts, also known as nominal accounts, to Retained Earnings. To do this, we need to ensure that all income statement accounts with balances have been closed to the Retained Earnings account. The temporary accounts that will typically be closed include all revenue accounts, expense accounts, and dividends.
As a part of the accounting cycle, certain entries would not be necessary based on the provided data, such as for accounts receivable or supplies, which are permanent accounts and not subject to the closing process. However, to close out revenues and expenses, we must debit Service Revenue to offset the credit balance, and credit Retained Earnings. For expenses, we credit each expense account and debit Retained Earnings. Lastly, Dividends is closed by debiting Retained Earnings and crediting Dividends.
In summary:
Service Revenue would be debited and Retained Earnings credited for 101,520.All expense accounts would be credited and Retained Earnings debited for the total amount of those expenses.Dividends would be credited and Retained Earnings debited for 20,680.The following are data for an economy in billions of dollars: Net rental income 141 Depreciation 1,241 Compensation of employees 5,715 Personal consumption expenditures 6,728 Sales and excise taxes 762 Gross private domestic investment 1,767 Exports of goods and services 1,102 Imports of goods and services 1,466 Government purchases of goods and services 1,741 Net interest 532 Proprietors’ income 715 Corporate profits 876 Net factor income from rest of world -12 a. Compute GDP using the expenditure
Answer:
GDP= 9,872
Explanation:
The Expenditure Approach is a method of measuring GDP by calculating all spending throughout the economy including consumer consumption, investing, government spending, and net exports. This method calculates what a country produces, assuming that the finished goods and services of a country equals the amount spent in the country for that period.
The formula is:
GDP=C+I+G+/-NX
GDP: Gross Domestic Product
(C) consumer spending – this is the amount that all consumers spend on goods and services for personal use.
(I) investment – this is the amount that businesses or owners spend to invest in new equipment or expansions.
(G) government spending – this includes spending on new infrastructure like bridges and roads.
(NX) net exports – this includes spending on a country’s exports minus its spending on imports.
GDP= 6,728+1,767 +1,741+(1,102-1,466)
GDP= 9,872
In a state of market equilibrium, the intrinsic value of the stock will be the market price of the stock. An analyst with a leading investment bank tracks the stock of Mandalays Inc. According to her estimations, the value of Mandalays Inc.’s stock should be $11.52 per share, but Mandalays Inc.’s stock is trading at $19.57 per share on the New York Stock Exchange (NYSE). Considering the analyst’s expectations, the stock is currently:
Answer:
overrated
Explanation:
The expected vale of the stock is below their current market value.
This means the expected earnings and dividends of the company are going to decrease in the following months. Or that other stocks semes more profitable, making this stock price going down:
This may occurs because, the price earings of this stock (times the Earings per share pays the market price is greater than other stock. Investor will move from a stock with a P/E of 20 to another which P/E is % as their return in investment will be higher.
It is election day and 1800 voters vote in their precinct’s library during the 10 hours the polls are open. On average, there are 15 voters in the library and they spend on average 5 minutes in the library to complete their voting. What is the inventory of voters, the flow rate, and the flow time for each voter?
Answer:
Inventory = 15 voters
Flow rate = 3 voters per minute
Flow Time = 5 minutes
Explanation:
Flow rate is defined as the flow of units for each minute, or the minutes or each unit.
Here, number of voters is the units = 1,800 voters
Also provided number of hours = 10
Thus, flow rate shall be: 1,800/10 = 180 voters each hour
Now [tex]\frac{180}{60\ minutes}[/tex] = 3 voters per minute.
Flow time is the average time by each unit, that is time taken for each unit.
Flow time = 5 minutes
Now, that we know what flow rate and flow time is:
Inventory of voters = Flow rate [tex]\times[/tex] Flow time = 3 voters [tex]\times[/tex] 5 minutes = 15 voters.
The inventory (average number of voters at any one time) is 15 voters, the flow rate (average number of voters per hour) is 180 voters per hour, and the flow time (average time spent by each voter) is 5 minutes.
Explanation:In this question, you are looking to find out the inventory of voters, the flow rate, and the flow time for each voter. Let's define these terms first:
Inventory: This is the average number of voters present in the library at any given time.Flow rate: This is the average number of voters that flow through the library per hour.Flow time: This is the average time a voter spends in the library.From the problem, we are provided with the following information:
There are 1800 voters in total for the 10-hour voting window.On average, there are 15 voters in the library at any one time.Each voter spends an average of 5 minutes in the library.Now to calculate the specifications:
The inventory of voters is 15 (given in the question).The flow rate of voters is 1800 voters divided by 10 hours, which gives 180 voters per hour.The flow time for each voter is 5 minutes (also given in the question).Learn more about Flow Rate & Time Calculation here:https://brainly.com/question/29784120
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Cass Corporation reported pretax book income of $10,840,000. During the current year, the reserve for bad debts increased by $170,000. In addition, tax depreciation exceeded book depreciation by $300,000. Cass Corporation sold a fixed asset and reported book gain of $73,500 and tax gain of $117,000. Finally, the company received $258,000 of tax-exempt life insurance proceeds from the death of one of its officers. Compute the company’s current income tax expense or benefit for 2010
Answer:
10,970,000 x 21% = 2,303,700 income tax expense
10,755,000 x 21% = 2,258,550 income tax payable
Explanation:
permanent difference:
sale of fixed asset (117,000-73,500) 43,000
tax-exempt life insurance proceeds. (258,000)
total (215,000)
temporary difference ( which generates tax liability or benefit )
170,000 bad debt expense
(300,000) higher tax depreciation
(130,000) deferred tax liability
The taxable income will be for
10,840,000
- 215,000 permanent difference
+ 130,000 temporary difference
10,755,000
Then, we apply the 21% corporate tax rate which is the income tax rate for 2019
10,755,000 x 21% = 2,258,550 income tax payable
The accounting income tax expense will be calculate based on the temporary difference only:
10,840,000 + 130,000 = 10,970,000 x 21% = 2,303,700 income tax expense
Is the statement below true or false? ▼ True False . (Select from the drop-down menu.) The cash surplus can be used for a variety of purposes. In the short-term, they may replace their car, buy better furniture, or more quickly pay off their home. Alternatively, they may purchase stocks and bonds, or increase their savings for future needs. Investments in the stock market are generally designed to increase an individual's future wealth, the purchase of bonds typically allows one to at least retain their purchasing power, while investment in savings accounts provide liquidity.
Answer:
true
Explanation:
Final answer:
True, the cash surplus can be used for short-term consumption needs or long-term investments. People choose various financial options like savings accounts, stocks, and bonds, weighing liquidity against potential returns to manage their finances and accumulate wealth.
Explanation:
The statement regarding the utilization of a cash surplus is true. Individuals and households can choose from various options to manage their finances depending on their goals, such as increasing future wealth, preserving purchasing power, or ensuring liquidity. For instance, they may opt to replace consumables or enhance their living standards in the short term. Alternatively, they can focus on financial investments like savings accounts, stocks, and bonds for long-term benefits.
In the context of wealth preservation and accumulation, individuals might consider the liquidity of checking accounts, the higher returns from bond market mutual funds, or investments in real assets. These choices reflect a balance between immediate accessibility of funds for everyday transactions or emergencies and the prospects of higher earnings through financial markets.
Ultimately, financial decisions are influenced by preferences for liquidity versus returns, and the potential uses of money - for consumption, investment, or saving - which can contribute to wealth accumulation over time.
Lightwire Co. made the decision a decade ago to make the copper wires it needs for its products in house rather than outsourcing this need. As a consequence, Lightwire was stuck with relatively higher costs over the long term, and is currently in negotiations to be bought out. Where, in the context of supply chain management, did Lightwire go wrong?
a. Adaptability
b. Alignment
c. Adjustment
d. Agility
Answer: Option (A) is correct
Explanation:
Here in the given case, in the context of supply change, the corporation did go wrong on part of adaptability. Adaptability is known as a feature of a process or of a system. This term has been utilized in several different discipline and organization operations. According to Gronau and Andresen, adaptability in organizational management can be referred to as ability to bring changes to oneself or something in order to fit the changes occurring.
Database Systems is considering expansion into a new product line. Assets to support expansion will cost $750,000. It is estimated that Database can generate $2,150,000 in annual sales, with an 7 percent profit margin. What would net income and return on assets (investment) be for the year? (Input your return on assets answer as a percent rounded to 2 decimal places.)
Answer:
Net income = $ 150500
Return on assets = 20.07 %
Explanation:
Net income = (annual sales)*7%
= $ 2150000*7%
= $ 150500
return on assets = [net income*100]/[assets to support expansion]
= (150500)(100)/(750000)
= 20.07 %
Therefore, the Net income for the year is $ 150500 and the Return on assets for the year is 20.07 %.
On December 31, 2015, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $43,000 and $1,250, respectively. During 2016, Coolwear wrote off $775 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $5,600 at December 31, 2016. Bad debt expense for 2016 would be:
Answer:
Bad debt expense $5.125
Explanation:
Initial Balance
Accounts Receivable $ 43.000
Allowance for Uncollectible Accounts $ 1.250
Entry
Allowance for Uncollectible Accounts $ 775
Accounts Receivable $ 775
New Balance
Accounts Receivable $ 42.225
Allowance for Uncollectible Accounts $ 475
Entry Adjustment
Bad debt expense $ 5.125
Allowance for Uncollectible Accounts $ 5.125
END Balance
Accounts Receivable $ 42.225
Allowance for Uncollectible Accounts $ 5.600
The correct answer is c. The bad debt expense for 2016 would be: $5125
To calculate the bad debt expense for 2016, we need to follow these steps:
1. Determine the beginning balance of the Allowance for Uncollectible Accounts:
- Beginning balance: $1,250
2. Account for the write-offs during the year:
- Accounts written off: $775
3. Determine the required ending balance of the Allowance for Uncollectible Accounts:
- Required ending balance: $5,600
4. Calculate the Bad Debt Expense:
- The bad debt expense is the amount needed to adjust the allowance account to the required ending balance after considering the beginning balance and the write-offs.
Step-by-Step Calculation:
1. Beginning Balance of Allowance for Uncollectible Accounts:
Beginning Balance = $1,250
2. Less: Write-offs during the year:
Write-offs = $775
3. Balance after write-offs:
Adjusted Balance = $1,250 - $775 = $475
4. Required Ending Balance:
Required Ending Balance = $5,600
5. Calculate the Bad Debt Expense:
Bad Debt Expense = Required Ending Balance - Adjusted Balance
Bad Debt Expense = $5,600 - $475 = $5,125
Therefore, the bad debt expense for 2016 would be: 5125
Therefore, the correct option is c. 5125 .
The complete question is:
On December 31, 2015, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $43,000 and $1,250, respectively. During 2016, Coolwear wrote off $775 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $5,600 at December 31, 2016. Bad debt expense for 2016 would be:
a. $7400
b. $2400
c. $5100
d. $950
Saying "the marginal costs are greater than the marginal benefits" is the same as saying the average costs are greater than the average benefits. the total costs are greater than the average benefits. the benefits are greater than the costs. the additional costs are greater than the additional benefits. the costs minus the benefits equal the net costs.
Answer: Saying "the marginal costs are greater than the marginal benefits" is the same as saying "the additional costs are greater than the additional benefits."
Explanation: Marginal benefit refers to the benefit, which the company receives for the production of an additional unit of a good or service.
Therefore a marginal cost is that incurred by a person for the production of an additional unit of a good or service.
Profits and losses play an important role in helping a. to signal to government which businesses are suffering losses so that they can be subsidized. b. consumers decide which products they value the most by looking at each firm's profit. c. direct businesses toward productive projects and away from ones that are productive. d. ensure that the total profits in the economy exactly equal the total losses.
Profits and losses signal to businesses which ventures are most productive, driving them to invest in successful areas, while losses encourage firms to leave or improve. This effective resource allocation contributes to innovation and economic gains as firms compete to meet consumer needs.
Explanation:Profits and losses play a key role in the market economy and can indicate the health of a firm as well as influence resource allocation. When a business generates profits, it suggests that consumers value its products or services, which can lead to expansion and investment in that area. On the contrary, consistent losses signal that resources may be better used elsewhere, and can lead to firms exiting the market. This process of profit and loss serves to direct businesses towards the most productive projects and away from less productive ones. It does not solely signal to government which businesses to subsidize, dictate consumer preferences, or balance total profits with losses across the economy.
Comparison with Market Competition and Firm DecisionsMoreover, competition leads to innovation, better and cheaper products, and overall gains for the economy. Firms that are unable to keep up may suffer losses, and potentially cease to exist. This competitive environment helps to ensure that only businesses that efficiently meet consumer needs survive in the long run. Government intervention may be considered to balance benefits of scale against loss of competition.
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In the initial Cournot duopoly equilibrium, both firms have constant marginal costs, m, and no fixed costs, and there is a barrier to entry. Show what happens to thebest-response function of firms if both firms now face a fixed cost of F.
Let market demand be
p=a-−bQ,
where a and b are positive parameters with 2 firms.
Let q1 and q2 be the amount produced by firm 1 and firm 2, respectively. Assuming it is optimal for the firm one to produce, its best-response function is
q1=??
Answer:
[tex]q_1=\frac{a-m}{2b}-\frac{q_2}{2}[/tex]
Explanation:
Note that Total Costs are given by fixed costs (F) and marginal costs (m) that depend on the production level of the firm
[tex]CT_i=F+mq_i[/tex]
for i=1,2. The market demand is given by
[tex]p=a-bQ[/tex]
where [tex]Q=q_1+q_2[/tex] is the total production, so it's the sum of each firms production
Firm 1 will maximize it's own profits
[tex]max\,\Pi_1=p=(a-b(q_1+q_2))q_1-F-mq_1[/tex]
The first order conditions (take derivative of the profit with respect to [tex]q_1[/tex] are given by
[tex]a-2 b q_1-b q_2-m=0[/tex]
Then the best-response function for Firm 1 will be
[tex]q_1=\frac{a-m}{2b}-\frac{q_2}{2}[/tex]
and the solution for Firm 2 would be symmetric.
Note that only marginal costs are relevant for getting the best-response function, so adding fixed costs (F) don't change the results
A company issues $25300000, 7.8%, 20-year bonds to yield 8.0% on January 1, Year 17. Interest is paid on June 30 and December 31. The proceeds from the bonds are $24799240. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, Year 17 balance sheet?
Answer:
Ans. The carrying value of this bond on Dec. 31/17 is $25,185,800.90
Explanation:
Hi, the carrying value of this debt depends on the unpaid coupons and its principal, and since 2 semi-annual coupons were already paid, we have to bring to present value (to Dec /17) the remaining coupons and the principal to be paid. The formula is as follows.
[tex]Carrying Value=\frac{Coupon((1+r)^{n-1}-1) }{r(1+r)^{n-1} } +\frac{FaceValue+Coupon}{(1+r)^{n} }[/tex]
Where:
[tex]Coupon=25,300,000*\frac{0.078}{2} =986,700[/tex]
[tex]Yield(semi-annual)=(1+0.08)^{\frac{1}{2} } -1=0.03923[/tex]
[tex]n=20years*2-2(paid coupons)=38[/tex]
[tex]Carrying Value=\frac{986,700((1+0.03923)^{37}-1) }{0.03923(1+0.03923)^{37} } +\frac{25,300,000+986700}{(1+0.03923)^{38} }[/tex]
[tex]Carrying Value=25,185,800.90[/tex]
Best of luck.
Which of the following statements is (are) TRUE? I. A firm with market power maximizes profit by producing so that P = MC or MR = MC. II. If marginal revenue exceeds marginal cost, the firm should expand output to increase profits. III. If a firm has no costs of production, it should continue producing until marginal revenue falls to zero.
Answer:
Statement II and III
Explanation:
For Statement I
We know that in a perfect competitive market the profit is maximum where either Marginal Revenue = Marginal Cost, or the Price + Marginal Cost is the point defining the profit.
Therefore, firm having to exercise maximum power in market will produce more up till Marginal Revenue > Marginal Cost.
Therefore, statement I is false.
Statement II
For the time till when the marginal revenue is more than the marginal cost, more and more goods shall be produced to increase the quantum of profit.
as this will assure no losses up to the time where MR>MC.
Thus, statement II is true.
Statement III
If there is no cost of production then entire amount received for a good will be profit, accordingly till the time the marginal revenue does not fall to 0 the goods shall be supplied to consumers, as the entire amount received will be profit with no cost associated.
Thus, statement III is also True.
Antonio's makes the greatest pizza and delivers it hot to all the dorms around campus. Last week Antonio's supplier of pepperoni informed him of a 25% increase in price. Which variable determining the position of the supply curve has changed and what effect does it have on supply?
(A) future expectation; Supply decreases
(B) future expectation; Supply increases
(C) input prices; Supply decreases
(D) input prices; Supply increases
Answer:
(C) input prices; Supply decreases
Explanation:
The input prices are all the cost Anonio inccurs to produce a pizza.
The pepperoni will be part of his input price.
The lowest price at which Antonio can sale a pizza is determinate by his cost.
Now Antonio need to sell their pizzas for more cash. So this increase generated a supply decrease.
A list of financial statement items for Chin Company includes the following: accounts receivable $14,000; prepaid insurance $2,600; cash $10,400; supplies $3,800; and debt investments (short-term) $8,200. Prepare the current assets section of the balance sheet listing the items in the proper sequence. (List current assets in order of liquidity.)
Final answer:
To prepare the current assets section of Chin Company's balance sheet, the assets are listed from most liquid to least liquid: cash, debt investments, accounts receivable, supplies, and prepaid insurance.
Explanation:
Preparation of the Current Assets Section
To prepare the current assets section of the balance sheet for Chin Company, we should list the assets in order of liquidity. Liquidity refers to how quickly an asset can be converted into cash without losing value. In the given list, cash is the most liquid asset, followed by cash equivalents and investments, then accounts receivable, and finally, the least liquid of the current assets are the prepaid expenses and supplies.
Here is how the current assets section would look:
Summing up these amounts, we have the total current assets. It's important to note that although supplies have a monetary value, they are not cash equivalents and are not as liquid as the other assets listed above, hence they are placed after accounts receivable.
If the money supply exceeds money demand, people will ____ bonds which will cause bond prices to ____ and the nominal interest rate to _____ until money demand equals money supply. A. buy; rise; fall
B. sell; fall; fall
C. sell; rise; fall
D. buy; fall; rise
Answer:
A. buy; rise; fall
Explanation:
As for the provided information, we know,
As the supply of money exceeds the demand people will have more investing power, accordingly people will buy more bonds,
as more and more people will try to buy the bonds the price for bond because of high demand will automatically due to demand and supply proportion will rise,
and then to control the demand of bond, and control the purchase of bond, the nominal interest rate provided on bonds will fall.
⌛ Plan to spend approximately 30 minutes to complete this activity. The market value of the equity of Ginger, Inc., is $635,000. The balance sheet shows $39,000 in cash and $215,000 in debt, while the income statement has EBIT of $96,400 and a total of $168,000 in depreciation and amortization. What is the enterprise value–EBITDA multiple for this company? The market value of the equity of Ginger, Inc., is $635,000. The balance sheet shows $39,000 in cash and $215,000 in debt, while the income statement has EBIT of $96,400 and a total of $168,000 in depreciation and amortization. What is the enterprise value–EBITDA multiple for this company
Answer:
EBITDA Multiple = 3,067
Explanation:
The EBITDA multiple is a financial ratio that compares a company’s Enterprise Value to its annual EBITDA. This multiple is used to determine the value of a company and compare it to the value of other, similar businesses. The ratio takes a company’s enterprise value (which represents market capitalization plus net debt) and compares it to the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for a given period.
Formula:
EBITDA Multiple = Enterprise Value / EBITDA
To Determine the Enterprise Value and EBITDA:
Enterprise Value = (market capitalization + value of debt + minority interest + preferred shares) – (cash and cash equivalents)
EBITDA = Earnings Before Tax + Interest + Depreciation + Amortization
In this exercise:
Enterprise Value= market value + value of debt - cash= 635000+ 215000 - 39000=$811000
Ebitda= ebit + depreciation and amortization = 96400+168000= $264400
EBITDA Multiple = Enterprise Value / EBITDA=811000/264400=3,067
Which one of the following is least liquid?
A. Foreign currency
B. U.S. Treasury bonds
C. Real estate
D. Bank deposit
Answer: Real estate
Explanation: Liquidity refers to the ability of a security to be converted into cash without having a major change in its price. In other words, liquidity is the relationship between the speed of sale of a security and its change in price.
Real estate refers to the land or other housing facilities etc. These assets require huge amount for purchase. It takes to find a buyer willing to make such a big investment, thus, they are not liquid.
Hence from the above we can conclude that the right option is C.
You buy a share of The Ludwig Corporation stock for $21.70. You expect it to pay dividends of $1.00, $1.16, and $1.3456 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $28.15 at the end of 3 years.Calculate the growth rate in dividends. Round your answer to two decimal places. %Calculate the expected dividend yield. Round your answer to two decimal places. %Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return (assume market is in equilibrium with the required rate of return equal to the expected return)? Do not round intermediate calculations. Round your answer to two decimal places. %
Answer:
g = 16%
dividends yield:
Year 1 4.60%
Year 3: 4.78%
expected rate of return:
year 1 20.6%
year 3 20.78%
Explanation:
grow rate:
D1 /D0 = g
1.16/1.00 - 1 = 0.16
1.3456/1.16 - 1 = 0.16
the grow rate is 16%
dividend yield:
dividends/stock price = dividend yield
1/21.7 = 0,0460 = 4.60%
1.3456/28.15 = 0,04780 = 4.78%
expected rate of return:
dividend yield + grow rate
4.60% + 16% = 20.6%
4.78% + 16% = 20.78%
The growth rate in dividends is calculated to be 7.71% using the given dividends details. The expected dividend yield is found to be 4.61% by dividing the annual dividend payment by the stock’s price. Subsequently, the expected total return, which sums up the dividend yield and the dividend growth rate, is 12.32%.
Explanation:First off, to calculate the growth rate in dividends, we'd need to understand that it's the percentage increase in the amount of dividends from one year to the next. The average growth rate, g, is then calculated as: g = [(D2/D1)^(1/2)-1] * 100 where D2 is dividend in year 2, D1 is dividend in year 1. So, g = [($1.16/$1.00) ^ (1/2) - 1] * 100 = 7.71%.
To calculate the expected dividend yield, you take the annual dividend payment and divide it by the stock's price. Therefore, the dividend yield for the first year would be: Dividend yield = D1 / P = $1.00 / $21.70 = 4.61%.
Lastly, the expected total rate of return, often used to compare the performance of different investments, is the sum of the expected dividend yield and the dividend growth rate. So, in this case, Expected total return = Expected dividend yield + Dividend growth rate = 4.61% + 7.71% = 12.32%. As such, the expected total return is 12.32% if the market is in equilibrium.
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The following information pertains to the August manufacturing activities of Griss Co.: Beginning work-in-progress (BWIP): $12,000 Ending work-in-progress (EWIP): $10,000 Cost of goods manufactured (COGM): $97,000 Direct materials issued to production: $20,000 Factory overhead is assigned at 150% of direct labor. What was the August direct labor?
Answer:
direct labor= $30000
Explanation:
With the following information we need to calculate the direct labor:
Beginning work-in-progress (BWIP): $12,000
Ending work-in-progress (EWIP): $10,000
Cost of goods manufactured (COGM): $97,000
Direct materials issued to production: $20,000
Factory overhead is assigned at 150% of direct labor.
We know that:
Cost of good manufactured= Beginning work in progress+ direct materials of the period + direct labor + manufactured overhead - ending work in progress
97000=12000 + 20000 + direct labor + 1,5*direct labor - 10000
direct labor= (97000-12000-20000+10000)/2,5
direct labor= 30000
Manufacturing overhead= 30000*1,5= 45000
Comprobation:
cost of manufactured goods= 12000+20000+30000+45000-10000=97000
Final answer:
The direct labor for Griss Co. in the month of August is calculated to be $12,000 by analyzing the relationship between factory overhead, which is 150% of direct labor, and other provided manufacturing costs.
Explanation:
To find the direct labor costs for the month of August for Griss Co., we need to understand that the factory overhead, which is 150% of direct labor, plays a significant role in this calculation. First, let's use the given formula to calculate the direct labor based on the information provided:
Beginning Work in Progress (BWIP): $12,000Ending Work in Progress (EWIP): $10,000Cost of Goods Manufactured (COGM): $97,000Direct Materials Issued to Production: $20,000We know that COGM is calculated as follows: BWIP + Total Manufacturing Costs - EWIP. The Total Manufacturing Costs include Direct Materials, Direct Labor, and Factory Overhead. Given the factory overhead is 150% of direct labor, let's denote Direct Labor as DL. Thus, Factory Overhead = 1.5 * DL.
Using the information and the formula for COGM, we can set up the following equation:
$97,000 = $12,000 + ($20,000 + DL + 1.5DL) - $10,000
Solving for DL, we get:
$97,000 = $22,000 + 2.5DL
DL = ($97,000 - $22,000) / 2.5 = $30,000 / 2.5 = $12,000
Therefore, the direct labor for the month of August was $12,000.
Golden Age Retirement Planners specializes in providing financial advice for people planning for a comfortable retirement. The company offers seminars on the important topic of retirement planning. For a typical seminar, the room rental at a hotel is $1,000, and the cost of advertising and other incidentals is about $10,000 per seminar. The cost of the materials and special gifts for each attendee is $60 per person attending the seminar. The company charges $250 per person to attend the seminar as this seems to be competitive with other companies in the same business. How many people must attend each seminar for Golden Age to break even
Answer:
Ans. the break even point is 58 people, or a ravenue of $14,500
Explanation:
Hi, first we need to add up all fixed costs and expenses (Room rental+Advertising) and find the contribution margin (Price - Variable costs). The math to this is as follows.
[tex]Break EvenPoint(units)=\frac{Fixed Costs}{(Price-VariableCost)}[/tex]
[tex]Break EvenPoint(units)=\frac{11000}{(250-60)}=58 people[/tex]
[tex]BreakEvenPoint(Dollars)=58persons*\frac{250}{person} =14500[/tex]
Based on the various costs to be incurred by Golden Age Retirement Planners, the breakeven number of people will be 58 people.
What will be the breakeven number of people?First find the fixed costs:
= Cost of room + Cost of advertising
= 1,000 + 10,000
= $11,000
The breakeven point is:
= Fixed costs / (Charge - Variable cost)
= 11,000 / (250 - 60)
= 57.9
= 58 people
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For each of the following questions, indicate which financial statement would most likely be used to provide the information. Use the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C). What were the company’s net sales for the year? What assets does the company have? How much cash was generated by operating activities? Why did the company’s retained earnings change during the year? How much in total debt does the company have? How well did the company perform during the year? Did the company declare a dividend during the year? How much cash did the company generate and spend during the year? What is the company’s financial position at the end of the year? LO 4
Answer:
1) Net sales: Income statement
2) Assets: Balance Sheet
3) Cash generated by operating activities: Cash flow statement
4) Retained earnings change: Retained earning statement
5) Total debt: Balance Sheet
6) Company performance: Income statement
7) Dividend: Retained earnings
8) Cash generation and spending: Cash flow statement
9) Financial position: Cash flow, Balance sheet, Income statement
Followers of the efficient market hypothesis believe thatA) very few investors actually analyze or evaluate stocks before they make a purchase decision.B) the needed information to assess the market is available only to corporate insiders.C) investors react quickly and accurately to new information.D) individual traders can have a significant impact on the price of a security.
Answer: Followers of the efficient market hypothesis believe that "C) investors react quickly and accurately to new information.".
Explanation: The efficient market hypothesis states that the current price of an asset in the market reflects all available information that exists (historical, public and private). It considers that any news or future event that may affect the price of an asset, will make the price adjust so quickly, that it is impossible to obtain an economic benefit from it.
This adjustment happens so fast because investors act quickly and accurately in the face of new information.
The efficient market hypothesis posits that investors react quickly and accurately to new information, implying all available information is already factored into stock prices. Thus, it suggests focusing on diverse investments to match the market's performance rather than attempting to beat it.
Explanation:Followers of the efficient market hypothesis believe that investors react quickly and accurately to new information (option C). This hypothesis suggests that the stock market is always correctly priced because it assumes all relevant information about each stock is already incorporated into its price, leaving no room for above-average, risk-adjusted returns through stock selection or market timing. This theory suggests that instead of trying to 'beat the market', investors should focus on creating a diversely balanced portfolio, such as through index funds, to match the market's performance. This removes the pressure of trying to predict which stocks will perform better than others.
A common visual representation of this theory is the random walk hypothesis, which depicts price changes in the stock market as a random walk and implies that the past movement or trend of a stock price or market cannot be used to predict its future movement.
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Draper Company sold $200,000 of extended warranties in 20X8. The warranty represents a separate performance obligation and covers any repairs needed over the next four years. The warranty takes effect on January 1, 20X9. Draper uses a straight‐line approach to recognize warranty revenue. What amounts of Warranty Revenue and Unearned Warranty Revenue, respectively, should Draper report in its December 31, 20X9, Income Statement and Balance Sheet?
Answer:
What amounts of
Warranty Revenue 50000
Unearned Warranty Revenue 150000
Explanation:
Cash 200000
Unearned revenue 200000
Sold warranty
Unearned Revenue 50000
Extended warranty 50000
Based on the warranty period, the warranty revenue will be $50,000 and the unearned warranty revenue will be $150,000.
What is the warranty revenue?This refers to the warranty for the year that wasn't claimed by customers.
This amount is:
= Total warranty / Number of years served
= 200,000 / 4
= $50,000
What is the unearned warranty revenue?This is the warranty left to be claimed:
= Total warranty - Warranty for 20X9:
= 200,000 - 50,000
= $150,000
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A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 100,080 20,500 Labor (hours) 19,880 14,880 Raw materials (currency) $ 19,600 19,880 (FC) Capital equipment (hours) 59,400 4,880 *Foreign Currency unit a. Calculate partial labor and capital productivity figures for the parent and subsidiary.
Answer:
The partial labor and capital productivity figures for the parent and subsidiary is 5.03 units per hour, 1.37 units per hour and, 1.68 units per hour, 4.20 units per hour
Explanation:
The computation of the partial labor for the parent and subsidiary is calculated by applying the formula which is shown below:
= Sales ÷ Labor (hours)
For U.S = 100,080 units ÷ 19,880 hours = 5.03 units per hour
For LDC = 20,500 units ÷ 14,880 hours = 1.37 units per hour
The computation of the capital productivity for the parent and subsidiary is calculated by applying the formula which is shown below:
= Sales ÷ Capital equipment (hours)
For U.S = 100,080 units ÷ 59,400 hours = 1.68 units per hour
For LDC = 20,500 units ÷ 4,880 hours = 4.20 units per hour
The following data is available for Sampson Corporation. Sampson Corporation Accounts Item Amount Net income $200,000 Depreciation expense 60,000 Dividends paid 90,000 Loss on sale of land 15,000 Decrease in accounts receivable 30,000 Decrease in accounts payable 45,000 Net cash provided by operating activities is $Placeholder for missing word.
Answer:
cash flow provided by operation 260,000
Explanation:
net income 200,000
adjustment for non-monetary terms: (A)
depreciation expense 60,000
loss on sale of land 15,000
adjusted net income 275,000
Change in working capital:
decrease in AR 30,000
Decrease in AP (45,000) (B)
net change in WC: (15,000) (C)
cash flow provided by operation 260,000
(A) we must focus on cahs movement so the depreciation and loss on sale which are non-mentary term. This are not related to cash
(B) the decrease in account receivable means we colelct from our customer more.
(C) the decrease in accounts payable represent we use more cash to pay up the suppliers
Over the last 10 years four mutual funds all had the same mean rate of return, 12%. These mutual funds had different standard deviations. The standard deviations for Mutual Fund A 8%, Mutual Fund B 6%, Mutual Fund C 4%, Mutual Fund D 9%. Which mutual fund investment is the most consistent in rate of return?
(A) Together Fund
(B) All for One Fund
(C) Co-joined Investments
(D) Mutual Money
The mutual fund that has the lowest standard deviation also has the highest rate of return consistency. The solution is (C), thus.
The least unpredictable Mutual Fund C has a 4% standard deviation. This indicates that its returns are the most stable and least likely to change drastically.
Mutual Fund A, Mutual Fund B, and Mutual Fund D all have standard deviations of 8%, 6%, and 9%, respectively. As a result, the returns from all of these funds are more likely to fluctuate dramatically than those from Mutual Fund C.
Mutual Fund C is the mutual fund investment that has produced the highest consistent returns.
Hence, the correct option is C, Co-joined Investments.
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Mutual Fund C is the most consistent mutual fund investment in terms of rate of return as it has the lowest standard deviation, which indicates less variability in its returns.
Explanation:Among the four mutual funds (A, B, C, and D) that all had the same mean rate of return of 12% over the last 10 years, the mutual fund with the most consistent rate of return would be the one with the lowest standard deviation. The standard deviation is a measure of the dispersion of returns around the mean return, where a lower standard deviation indicates less variability and thus more consistency in the rate of return.
Therefore, Mutual Fund C, with the lowest standard deviation of 4%, is the most consistent in terms of rate of return. Comparatively, Mutual Fund D has the highest standard deviation of 9%, making it the riskiest in terms of return variability.
Which of the following is an example of structural unemployment? A. Dora lost her job when the textile mill closed. She does not have skills to work in another industry and has been unemployed for over a year. B. Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up. C. Alan, a software engineer, lost his job when the internet startup he worked for went bankrupt. He interviewed with five companies in the area before taking a job with another firm in the industry. D. Jim had a job as an engineer, but quit when his wife was transferred to another state. He looked for a month before finding a new job that he liked.
Answer:
The correct answer is option A.
Explanation:
Structural unemployment is the type of unemployment that arises because of mismatch in skills that the workers possess and the skills that the employers want.
In the given example, Dora is unemployed because she does not have the skills required to work in industries other than a textile mill. This is an example of structural unemployment.
Marsha's case is an example of cyclical unemployment as it caused due to recession.
Alan and Jim's cases are examples of frictional unemployment. Both of them remained unemployed for a short time when moving from one job to another.
In the provided options, Dora's case where she lost her job when the textile mill closed and doesn't possess the skills for another industry, resulting in her being unemployed for over a year, is an example of structural unemployment. Structural unemployment is due to the mismatch of skills between unemployed individuals and those needed for available jobs.
Explanation:The example of structural unemployment in the options provided is: A. Dora lost her job when the textile mill closed. She does not have skills to work in another industry and has been unemployed for over a year.
Structural unemployment occurs when a labor market is unable to provide jobs for everyone who wants one because there is a mismatch between the skills of the unemployed and the skills needed for the available jobs. In Dora's case, the industry she was employed in closed down, and she does not possess the skills necessary to secure another job in a different industry. This leads to a long term unemployment scenario because she can't transfer her skills to another industry or job. This is a classic example of structural unemployment.
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Exercise 4-4A Recording inventory transactions in the general journal and posting entries to T-accounts: Perpetual system LO 4-1 Milo Clothing experienced the following events during 2016, its first year of operation: 1. Acquired $12,000 cash from the issue of common stock. 2. Purchased inventory for $5,600 cash. 3. Sold inventory costing $3,360 for $5,712 cash. 4. Paid $650 for advertising expense. Required a. Record the general journal entries for the preceding transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Required a. Record the general journal entries for the preceding transactions:
cash 12,000 debit
common stock 12,000 credit
--to record issuance of stocks --
inventory 5,600 debit
cash 5,600 credit
-- to record purhcase of inventory--
cash 5,712 debit
sales revenue 5,712 credit
COGS 3,360 debit
Invenotry 3,360 credit
--to record sale and subsequent cost--
advertizing expense 650 debit
cash 650 credit
Explanation:
We will post baed on the accounting principles:
debit = creidt
1)we debit cash and credit how we obtain the cash
2) we debit inventory and credit cash which is how we acquire the inventory (if it was o naccount it will be account payable)
3) we recognize the gain and the cash which was obtain for it.
also we recognize the expenses, which are the cost of the goods used so decrease inventory
4) we recognize the expense and decrease the cash used to pay for it.
General journal entries for Milo Clothing are provided for its first year of operation transactions under a perpetual inventory system. Additionally, the self-check question on accounting profit is answered, detailing the calculations for determining the profit after subtracting explicit costs from total revenue.
Explanation:Journal Entries and Accounting ProfitFor Milo Clothing's transactions using a perpetual inventory system, the general journal entries would be as follows:
Debit Cash $12,000, Credit Common Stock $12,000 (to record the issuance of common stock for cash).Debit Inventory $5,600, Credit Cash $5,600 (to record the purchase of inventory for cash).Debit Cash $5,712, Credit Sales Revenue $5,712 (to record the sales revenue from inventory sold for cash). Furthermore, Debit Cost of Goods Sold $3,360, Credit Inventory $3,360 (to record the cost of inventory that was sold).Debit Advertising Expense $650, Credit Cash $650 (to record the payment for advertising expense).Regarding the self-check question on accounting profit, if a firm had total revenues of $1,000,000 and explicit costs including $600,000 on labor, $150,000 on capital, and $200,000 on materials, the firm's accounting profit would be calculated as follows:
Accounting Profit = Total Revenues - Explicit Costs = $1,000,000 - ($600,000 + $150,000 + $200,000) = $1,000,000 - $950,000 = $50,000.
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Financial information is presented below:
Operating expenses $ 32000
Sales returns and allowances 6000
Sales discounts 5000
Sales revenue 190000
Cost of goods sold 93000
Gross profit would be
Answer:
Gross profit would be $86.000
Explanation:
Gross Margin income statement
Sales $ 190.000
Sales Discount -$ 5.000
Sales Return & Allowances -$ 6.000
Cost of Goods -$ 93.000
Gross Profit $ 86.000
Gross Profit does not take operating expenses into account.