Answer:
$506,800
Explanation:
The calculation of budgeted materials cost is shown below:-
For computing the budgeted materials cost first we need to find out the total materials for production and materials to be purchased which is here below:-
Total materials for production = Budgeted production × Pounds of raw material per unit
= 35,000 × 4
= 140,000
Materials to be purchased = Total materials for production + Ending raw materials inventory - January 1 inventory
= 140,000 + (39,000 × 4 × 30%) - 42,000
= 140,000 + 46,800 - 42,000
= 186,800 - 42,000
= 144,800
Budgeted materials cost for January = Materials to be purchased × Cost per pound
= 144,800 × $3.50
= $506,800
Answer:
$506,800
Explanation:
Material cost is the cost of raw material used in the production for the period.
First we need to calculate the purchases in the January.
January
+Production (35,000 units x 4 pounds) 140,000 pounds
-Beginning Inventory 42,000 pound
+Ending Inventory 46,800 pounds
(39,000 x 30% x 4 pounds)
Material used 144,800 pounds
Cost of Material = Material used x Rate of material
Cost of Material = 144,800 x $3.50 per pound
Cost of Material = $506,800
Franklin Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 185,000 shares of stock outstanding. Under Plan II, there would be 135,000 shares of stock outstanding and $1.92 million in debt outstanding. The interest rate on the debt is 7 percent and there are no taxes. Use MM Proposition I to find the price per share.
Answer:
The correct answer is $38.40.
Explanation:
According to the scenario, the computation of the given data are as follows:
Plan 1 shares = 185,000 shares
Plan 2 Shares = 135,000 shares
Debt = $1,920,000
So, we can calculate the price per share by using following formula:
Price per share = Debt ÷ ( Plan 1 shares - plan 2 shares)
= $1,920,000 ÷ ( 185,000 - 135,000)
= $1,920,000 ÷ 50,000
= $38.40
Bill Amends, owner of Bonita Estate Inc., buys and sells commercial properties. Recently, he sold land for $2,950,000 to the Blackhawk Group, a developer that plans to build a new shopping mall. In addition to the $2,950,000 sales price, Blackhawk Group agrees to pay Bonita Estate Inc. 1% of the retail sales of the mall for 10 years. Blackhawk estimates that retail sales in a typical mall project is $960,000 a year. Given the substantial increase in online sales that are occurring in the retail market, Bill had originally indicated that he would prefer a higher price for the land instead of the 1% royalty arrangement and suggested a price of $3,180,000. However, Blackhawk would not agree to those terms.
Required:
1. What is the transaction price for the land and related royalty payment that Bonita Estate Inc. should record?
Answer:
The transaction price for the land and related royalty payment is $2,950,000
Explanation:
Transaction cost is a fixed and certain cost where an exchange is made. Here the specific cost is $2,950,000 only, since this is the undefined selling cost. 1% commission ought not be considered here, on the grounds that it depends on deals and the deal figure may change in future. In this manner, the measure of commission isn't sure. Therefore, the transaction cost is $2,950,000
Answer: $3,046,000
Explanation: Selling price = $2,950,000
Annual sales in the mall = $960,000
Amount owed Bill in royalty = 1% of yearly sales in the next 10years
Amount proposed by bill instead of royalty based system = $3,180,000.
Royalty owed Bill yearly
= 1 × $960,000 / 100
= $9600
Royalty owed Bill in 10year
= Yearly royalty × 10years
= $9600 × 10
= $96,000
transaction price for the land and related royalty payment that Bonita Estate Inc. should record.
This would be selling price + royalty due for 10years
= $2,950,000 + $96,000
= $3,046,000
Jarrett Baker is the founder of an enterprise software company. By looking at his income statements over the past three years, you see that its working capital has declined from $42,400 in 2015 to $17,900 in 2016 to $3,100 in 2017. If this trend continues, in what ways could it jeopardize the future of his business?
Final answer:
Decreasing working capital over three years could hamper Jarrett Baker's company's ability to finance daily operations, manage debt, invest in growth, and handle sudden costs, potentially leading to insolvency.
Explanation:
Declining working capital suggests that Jarrett Baker's enterprise may be facing financial challenges that could threaten its ongoing operations. If the trend of decreasing working capital continues, it may impair the company's ability to finance day-to-day operations, invest in expansion or new projects, and handle unexpected expenses. Since working capital is the difference between a company's current assets and current liabilities, a declining working capital over three consecutive years indicates the company's liquid assets are decreasing in relation to its short-term financial obligations.
A company with low or negative working capital may struggle to pay debts, purchase inventory, or cover payroll, all of which are critical for maintaining the regular flow of business. If this trend persists without corrective measures, it could eventually lead to insolvency, as the enterprise may not be able to meet its short-term liabilities and continue operating.
Waterway Industries records purchases at net amounts. On May 5 Waterway purchased merchandise on account, $82000, terms 2/10, n/30. Waterway returned $7000 of the May 5 purchase and received credit on account. At May 31 the balance had not been paid. By how much should the account payable be adjusted on May 31
Answer:
$1,500
Explanation:
The computation of the amount adjusted on May 31 is shown below:
= (Purchase value of the merchandise - returned goods) × discount rate
= ($82,000 - $7,000) × 2%
= $1,500
The terms 2/10, n/30 represent the 2% discount is given if the payment is made within 10 days and the net days provided is 30 days
So, the amount adjusted is $1,500
The menu at Joe's coffee shop consists of a variety of coffee drinks, pastries, and sandwiches. The marginal product of an additional worker can be defined as the number of customers that can be served by that worker in a given time period. Joe has been employing one worker, but is considering hiring a second and a third. Explain why the marginal product of the second and third workers might be higher than the first. The marginal product of the
Answer:
The marginal product of the second and third workers might be increasing because workers can take advantage of existing machinery which would cause output to increase at an alarming rate.
"The correct explanation is that the marginal product of the second and third workers might be higher than the first due to the concept of increasing marginal returns.
When Joe hires the first worker, that worker can only handle a certain number of tasks at once, given the constraints of time and resources. However, when a second worker is added, the two workers can specialize and divide tasks more efficiently, leading to an increase in the total output (number of customers served) that is greater than the output of the first worker alone. This is because the second worker not only contributes their own productivity but also enhances the productivity of the first worker by allowing for a better division of labor and reduced idle time.
Similarly, when a third worker is added, the potential for specialization and division of labor increases further. The third worker can take on additional tasks or support the first two workers in serving more customers, which can lead to another increase in total output. The marginal product of the third worker might still be high if there is enough work to be done and if the additional worker does not lead to overcrowding or coordination problems.
However, it's important to note that the principle of increasing marginal returns does not hold indefinitely. After a certain point, adding more workers will lead to diminishing marginal returns, where the additional output from each new worker starts to decrease. This happens because each new worker contributes less to the total output as the law of diminishing returns sets in due to factors such as limited space, equipment, and coordination challenges among a larger number of workers.
In summary, the marginal product of the second and third workers can be higher than the first due to the benefits of specialization and division of labor, which lead to increasing marginal returns up to a certain point. Beyond that point, the marginal product of additional workers will likely decrease due to the law of diminishing returns."
Your finance textbook sold 52,500 copies in its first year. The publishing company expects the sales to grow at a rate of 16 percent each year for the next three years and by 10 percent in the fourth year. Calculate the total number of copies that the publisher expects to sell in years 3 and 4.
Answer:
The sales figure in year 3 is 81,947
The sales figure in year 4 is 90,142
Explanation:
The number of copies the publisher expects to sell in 3rd and 4th can be determined by computing the growth rate and increased sales from year 1 to year 4.
Year growth sales
1 52,500*(1+16%) 60,900
2 60900*(1+16%) 70,644
3 70644*(1+16%) 81,947
4 81,947*(1+10%) 90,142
The sales of finance books in year 3 and 4 are 81,947 and 90,142 respectively
Note that the growth rate is continuous that accounted for the need to apply the growth rate to the previous year sales in order to arrive at current year sales
Transactions for Jayne Company for the month of June are presented below.
June 1 Issues common stock to investors in exchange for $5,000 cash.
2 Buys equipment on account for $1,100.
3 Pays $740 to landlord for June rent.
12 Sends Wil Wheaton a bill for $700 after completing welding work done
Journalize the transactions.
Answer and Explanation:
The Journal entry is shown below:-
June 1
Cash Dr, $5000
To Common stock $5000
(Being issue of common stock for cash is recorded)
June 2
Equipment Dr, $1100
To Accounts payable $1100
(Being purchase of equipment on credit is recorded)
June 3
Rent expense Dr, $740
To Cash $740
(Being rent expense is recorded)
June 12
Accounts receivable Dr, $700
To Welding service revenue $700
(Being welding service revenue is recorded)
The given transactions can be journalized as common stock issuance, equipment purchase, rent payment, and bill sent for welding work.
Explanation:The given transactions can be journalized as follows:
June 1: Common Stock Dr. $5,000, Cash Cr. $5,000
June 2: Equipment Dr. $1,100, Accounts Payable Cr. $1,100
June 3: Rent Expense Dr. $740, Cash Cr. $740June 12: Accounts Receivable Dr. $700, Service Revenue Cr. $700
In the first transaction, common stock is issued in exchange for $5,000 in cash. In the second transaction, equipment is purchased on account for $1,100. In the third transaction, the rent of $740 is paid. Finally, in the fourth transaction, a bill for welding work done is sent to Wil Wheaton for $700.
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Of the different IRT roles, the _______________ is head of the team and issues the ultimate call regarding how to respond to an incident, whereas the __________________ role is to monitor and document all the activity that unfolds during an incident. IRT coordinator, IRT manager's IRT manager, IRT coordinator's IRT manager, IRT support IRT officer, IRT manager's.
Answer:
IRT manager, IRT coordinator's
Explanation:
Interactive response technology is made up of interactive voice response and interactive web response. They allow a system to gather keypad inputs and web inputs.
IRT manager is head of the team and issues the ultimate call regarding how to respond to an incident, whereas the IRT coordinator's role is to monitor and document all the activity that unfolds during an incident.
"The correct fill-in-the-blanks for the given statement is: Of the different IRT roles, the IRT manager is head of the team and issues the ultimate call regarding how to respond to an incident, whereas the IRT coordinator's role is to monitor and document all the activity that unfolds during an incident.
In an Incident Response Team (IRT), each member has a specific role to play during the incident response process. The roles are structured to ensure that all aspects of the incident are addressed efficiently and effectively.
- The IRT Manager is the head of the team and is responsible for making the final decisions on how to respond to an incident. This role involves strategic planning, coordination among team members, and communication with external stakeholders if necessary. The IRT Manager ensures that the team's response aligns with the organization's policies and objectives.
- The IRT Coordinator's role is to handle the administrative and logistical aspects of the incident response. This includes monitoring the incident as it progresses, documenting all actions taken by the team, and ensuring that all team members have the resources they need to perform their duties. The IRT Coordinator acts as a central point of contact for the team and is crucial in maintaining a clear record of the incident response activities.
The other roles mentioned, such as IRT Support and IRT Officer, are also part of the IRT but do not fit the description provided in the question. IRT Support typically assists with technical tasks and may provide additional resources as needed, while an IRT Officer might be responsible for specific tasks assigned by the IRT Manager or IRT Coordinator.
Therefore, the IRT Manager is the head of the team and makes the ultimate decisions, while the IRT Coordinator is responsible for monitoring and documenting the incident response activities.
Norma Company had 10,000 units in work in process at January 1 that were 50 percent complete. During January, 25,000 units were completed. At January 31, 6,000 units remained in work in process that were 80 percent complete. Using the average cost method, the equivalent units for January were:
a. 31,000.
b. 29,800.
c. 35,000.
d. 36,000.
Answer:
b. 29,800.
Explanation:
Number of units out in January = 25,000 units completed during month + 80% of 6,000 units completed at month end
= 25,000 + 4,800
= 29,800
Answer:
the equivalent units for January were: b. 29,800.
Explanation:
Equivalent units concept is the measurement of physical units of output in terms of their completion percentage on work done on them.
Calculation of equivalent units for January
Units were completed ( 25,000 units×100%) = 25,000
Units of ending work in process ( 6,000 units ×80%) = 4,800
Total = 29,800
Anthony Inc. purchases a machine for $15,000. This machine qualifies as a 5-year recovery asset under MACRS with the fixed percentages as follows for years 1,2,3, and 4 respectively: 20%, 32%, 19.2% and 11.52%. The tax rate is 33%. If the machine is sold at the end of 4 years for $4,000, what is the cash flow from disposal?
Answer:
The correct answer is $3,535.36
Explanation:
According to the scenario, the computation of the given data are as follows:
First we calculate the book value,
So, Book value = $15,000 × ( 1 - 20% - 32% - 19.2% - 11.52%)
= $2,592
So, we can calculate the Cash flow from disposal by using following formula:
Cash flow from disposal = Sale proceeds - ( Gain on sales × Tax rate)
Where, Gain on sales = ($4,000 - $2,592 ) = $1,408
By putting the value, we get
= $4,000 - ( $1,408 × 33% )
=$3,535.36
Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 15.10 $ 11.00 $ 11.80 $ 11.40 Direct labor 20.20 28.20 34.40 41.20 Variable manufacturing overhead 5.10 3.50 3.40 4.00 Fixed manufacturing overhead 27.30 35.60 27.40 38.00 Unit product cost $ 67.70 $ 78.30 $ 77.00 $ 94.60 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 4.60 6.10 5.10 4.20 Selling price per unit $ 76.90 $ 94.30 $ 88.20 $ 105.00 Variable selling cost per unit $ 3.00 $ 2.00 $ 4.10 $ 2.40 Monthly demand in units 4,800 4,800 3,800 2,800 The grinding machines are potentially the constraint in the production facility. A total of 54,400 minutes are available per month on these machines. Direct labor is a variable cost in this company. How many minutes of grinding machine time would be required to satisfy demand for all four products? Multiple Choice 82,500 54,400 19,480 60,420
Answer:
82,500
Explanation:
The computation of the minutes of grinding machine required to satisfy demand is shown below
= (4,800 units × 4.60 + 4,800 units × 6.10 + 3,800 × 5.10 + 2,800 × 4.20)
= 22,080 + 29,280 + 19,380 + 11,760
= 82,500
We simply multiplied the Grinding minutes per unit with the Monthly demand in units and the same is to be considered above
Goodday is merging with Baker, Inc. Goodday has debt with a face value of $80 and Baker has debt with a face value of $40. The pre-merger values of the firms given two economic states with equal probabilities of occurrence are as follows: Picture What will be the gain or loss to the current shareholders of Goodday if the merger provides no synergy?
Answer:
Therefore the gain or loss to the current shareholders of Goodday if the merger provides no synergy is -$10
Explanation:
Given:
The Total debt remains same after merger at Pre-merger value = $80 + $40 = $120
The Value of entities together in Economic state 1 = $160 + $20 = $180
Net equity in economic state 1 = Value of entities – total debt
= $180 - $120 = $60
Then,
The Value of entities in Economic state 2 = $40 + $80 = $120
Net equity in economic state 2 =
= $120 - $120 = $0
The Both states are equally possible.
Expected value of combined entity = ($60 + $0)/2 = $30
Market value of Goodday equity before merger = $40
Synergy effect = Expected value of combined entity - Market value of Goodday equity before merger= $30 - $40 = -$10
Kubin Company’s relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 units, its average costs per unit are as follows:Kubin Company’s relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 units, its average costs per unit are as follows:
Cost per Unit $ 7.40 s 4.40 s 1.90 5.40 Direct labor Variable manufacturing overhead Fixed nanufacturing overhead 3.90 Fixed s 2.90 s 1.40 e.90 1. For financial accounting purposes, what is the total amount of product costs incurred to make 15,500 units? 2. For financial accounting purposes, what is the total amount of perlod costs incurred to sell 15,500 units? 3. For financial 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 13,000 units? accounting purposes, what is the total amount of product costs incurred to make 18.000 units?
Answer:
1. Total Amount of Product Costs $296,050
2. Total Amount of Period Costs Incurred $141,050
3. Total Amount of Product Costs $330,300
4. Total Amount of Period Costs $135,300
Explanation:
The computation is shown below:
1. For total product cost
Total Amount of Product Costs = Units × (Direct Material Per Unit + Direct Labor Per Unit + Variable Manufacturing Overhead + Fixed Manufacturing Overhead Per Unit)
= 15,500 units × ($7.40 + $4.40 + $1.90 + $5.40)
= $296,050
2. For total period cost
Total Amount of Period Costs = Units × (Fixed Selling Expense Per Unit + Fixed Administrative Expense Per Unit + Sales Commissions Per Unit + Variable Administrative Expense Per Unit)
= 15,500 units × ($3.90 + $2.90 + $1.40 + $.90)
= $141,050
3. For total amount of product cost incurred
Direct Material (18,000 units × $7.40) $133,200
Direct Labor (18,000 units × $4.40) $79,200
Variable Manufacturing Overhead (18,000 units × $1.90) $34,200
Fixed Manufacturing Overhead (15,500 units × $5.40) $83,700
Total Product Costs $330,300
4. For total amount of period cost incurred
Fixed Selling Expense (15,500 units × $3.90) $60,450
Fixed Administrative Expense (15,500 units × $2.90) $44,950
Sales Commissions (13,000 units × $1.40) $18,200
Variable Administrative Expense (13,000 units × $.90) $11,700
Total Period Costs $135,300
We simply applied the above formulas
and we know that the period cost includes the major portion of selling and admin expense while the product cost includes the direct labor, direct material, and the manufacturing overhead cost or we can say total manufacturing cost
"An entity has two long-term construction contracts, one of which qualifies for revenue recognition over time and the other which does not (and so requires revenue recognition upon completion of the contract). For either of these two contracts, what account would be debited when preparing the journal entry to record billings
Qualifies Doesn't qualify
a. Billings Construction Receivable Cash
b. Construction Receivable Construction Receivable
C. Cash Billings Construction in Progress
d. Constructions in Progress Constructions in Progress
Pc Multiple Choice
A) Option a
B) Option c
C) Option d
Answer:
b. Construction Receivable Construction Receivable
Explanation:
Construction Receivable will be debited in both situations to record the billings.
Lauren is 19 and has never owned a credit card. She plans to move off campus next semester because she's tired of living in the dorm. The apartment complex she's inquiring about runs background checks and views the credit reports of all the prospective tenant. She knows her credit score is zero, and she's worried that will keep her from getting in the apartment complex.
1. What can Lauren do to improve her chances of getting a low rate at the apartment complex?
2. Is it a bad thing to have a credit score of zero? Why or why not?
3. Should Lauren open a credit card account so she can start establishing a credit score? Why or why not?
Answer:
Explanation:
1. Lauren should attempt to fix her credit report and build her credit profile by taking a secured credit card, by depositing an amount of money which will be the limit for the credit card, taking credit builder loans. In our savings account, the credit unions deposit a small loan, which has to be paid back within 6 months to 24 months. These payments are reported to the credit reporting companies and help build the credit profile for Laurel.
2. Owning no score simply means that Lauren has not yet proved her ability that she can quickly pay off the borrowed loans. Thus, she is credit invisible and she has an absence of a score. When we do not have a credit history, then the lenders simply do not know whether we will pay back the borrowed money. Thus, Lauren should apply for credit to introduce herself to the credit bureaus.
3. Yes, Lauren should open a credit card to prove her financial worthiness. Since she never has a credit history. So, she should apply for a secured credit card with a limit equal to the amount of money that she has secured with it. After applying for the credit card, she should pay her bills on time. She should be using only 30% of her limit.
Final answer:
The answer provides advice on improving chances at an apartment complex, discusses the implications of a zero credit score, and advises on opening a credit card account to establish credit.
Explanation:
How to Improve Chances at the Apartment Complex:
Establish Credit: Lauren can start by opening a secured credit card to begin building a credit history.Alternative References: Providing alternative references such as past landlords, employers, or a co-signer can also help.Communicate: Lauren can explain her situation to the apartment complex and show willingness to meet any additional requirements.Is Having a Credit Score of Zero Bad?
Yes, having a credit score of zero can be disadvantageous as it reflects a lack of credit history, making it difficult for lenders to assess creditworthiness.
Should Lauren Open a Credit Card Account?
Yes, it's advisable for Lauren to open a credit card account responsibly to start establishing a credit score, which will benefit her in various financial situations in the future.
Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect $8,300 of its accounts receivable from Leer Co. 29 Leer Co. unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above transactions.
Answer:
Please find the journal entries in the explanation section
Explanation:
March 11
Dr Bad expense $8,300
Cr Accounts Receivable ---------------------------------------Leer Co. $8,300
(Being the write off of uncollectible accounts receivable)
March 29
Dr Accounts Receivable-- Leer Co $8,300
Cr Bad expense $8,300
(Being the reversal of the previous account write off)
March 29
Dr Cash $8,300
Cr Accounts Receivable------------------------------------------Leer Co$8,300
(Being cash receipt from the accounts receivable)
The question relates to accounting, specifically the direct write-off method and recovery of bad debts. Dexter Company will first write off the uncollected $8,300 from Leer Co., then record the subsequent unexpected payment from Leer Co.
Explanation:The subject of this question is the field of accounting, specifically related to the direct write-off method and recovery of bad debts. The direct write-off method, is a way businesses account for bad debts – amounts that customers fail to pay. The 'write-off' in this method refers to the action taken to remove such uncollectable amounts from the accounts receivable.
Let's look at the transactions for Dexter Company:
When Dexter determines it can't collect $8,300 from Leer Co. on March 11, the journal entry would be: Bad Debt Expense $8,300 (Debit), Accounts Receivable – Leer Co. $8,300 (Credit)Then, if Leer Co. unexpectedly pays its account in full to Dexter on the 29th, the entries would be: Accounts Receivable – Leer Co. $8,300 (Debit), Cash $8,300 (Credit)– to recognise receipt of cash, and Recovery of Bad Debts $8,300 (Debit), Bad Debt Expense $8,300 (Credit) – to reduce the previously recognized bad debt expense.Learn more about Direct Write-off Method here:https://brainly.com/question/31858400
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On January 1, a company borrowed cash by issuing a $300,000, 5%, installment note to be paid in three equal payments at the end of each year beginning December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
1- What would be the amount of each installment?
2- Prepare an amortization table for the installmet note.
3- Prepare the journal entry for the second installment payment.
Each annual installment of the note is roughly $114,005.68. The installment amount decreases as more of the loan principal becomes paid off, and less interest accrues. In the journal entry for the second payment, both the note liability and interest expense decrease.
Explanation:To answer this question, we need to use the concept of the Present Value of Annuity (PVA). An annuity is a series of equal payments over a specified period of time. The present value of an annuity is the current value of all those future payments.
The formula for the Present Value of an Annuity (PVA) is: PVA = Pmt × [(1-(1+r)⁻ⁿ)/r], where:
Pmt = Amount of each payment
r = Interest rate per period
n = Number of periods. In this case, r equals 5%/100 = 0.05 and n equals 3. The total PVA equals $300,000.
By rearranging the formula, we can solve for Pmt. Pmt = PVA/[(1-(1+r)¹⁻ⁿ)/r] which equals about $114,005.68. The amortization table shows the payment amount being split into principal and interest areas. The journal entry for the second installment payment would subtract the principal paid from the installment liability, and the interest from the expense of the business.
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Engineering Wonders reports net income of $56.0 million. Included in that number is building depreciation expense of $4.6 million and a gain on the sale of land of $1.4 million. Records reveal decreases in accounts receivable, accounts payable, and inventory of $1.6 million, $2.6 million, and $3.6 million, respectively.
What are Engineering Wonders' net cash flows from operating activities?
Answer:
Engineering Wonders' net cash flows from operating activities are $61.8 million
Explanation:
Net income from operating activities = net income - gain on the sale of land + building depreciation expense = $56.0 - $1.4 + $4.6 = $59.2 million
Engineering Wonders' net cash flows from operating activities = Net Income from operating activities + Decrease in Accounts Receivable + Decrease in Inventory - Decrease in accounts payable = $59.2 + $1.6 + $3.6 - $2.6 = $61.8 million
Answer:
The answer is attached;
Explanation:
Which of the following statements do not correctly describe push manufacturing? (1). The serial operations are independently optimized (2). Compared to pull, push manufacturing is a relatively new concept (3). Forecasts of demands is a significant factor in deciding on material flow (4). It focuses on maximizing inventory investment
Answer:
Option 3
Explanation:
Simply put, Push manufacturing doesn't even use consumer's demand for manufacture and continues to manufacture the content, thereby growing the inventory cost. Thus demand projections are not an important basis for determining on product flow. Hence, from the above we can conclude that the correct option is 3.
Suppose the 2014 financial statements of 3M Company report net sales of $21.9 billion. Accounts receivable (net) are $3.43 billion at the beginning of the year and $3.51 billion at the end of the year.1?Compute 3M’s receivable turnover. (Round answers to 1 decimal place, e.g. 12.5.)Accounts receivable turnover ratio ______Suppose the 2014 financial statements of 3M Ctimes2)Compute 3M’s average collection period for accounts receivable in days. (Round answer to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)Average collection period Suppose the 2014 financial statements of 3M C________days
Answer:
The answer is attached for ready reference.
Explanation:
A company wants to set up their headquarters in Spain where the corporate tax rates are as follows: 11% of first $40,000 profits, 22% of next $26,000, 39% of next $29,000, and 42% of everything over $110,000. Consultants estimate that they will have gross revenues of $350,000, total costs of $100,000, and $10,000 in allowable tax deductions. What is taxable income for the first year and how much should the company expect to pay in taxes?
Answer:
The correct answer is $240,000 and $76,030.
Explanation:
According to the scenario, the computation for the given data are as follows:
Total Revenue = $350,000
Total cost = $100,000
So, Profit = $350,000 - $100,000 = $250,000
Allowable tax deduction = $10,000
So,Taxable income = $250,000 - $10,000 = $240,000
Tax to pay:
11% on first $40,000 = ( 11% × $40,000) =$4,400
22% on next $26,000 = ( 22% × $26,000) = $5720
39% on next $29,000 = ( 39% × $29,000) = $11,310
42% on ($240,000 - $110,000) = ( 42% × $130,000) = $54,600
So, Total tax payable = $4,400 + $5,720 + $11,310 + $54600
= $76,030
Larry estimates that the costs of insurance, license, and depreciation to operate his car total $470 per month and that the gas, oil, and maintenance costs are 49 cents per mile. Larry also estimates that, on average, he drives his car 2,000 miles per month. Required: a. How much cost would Larry expect to incur during April if he drove the car 1,557 miles? (Round your answer to 2 decimal places.)
Answer:
The expected cost for the month of April is $1232.93
Explanation:
The total cost per month for Larry contains a fixed cost of $470 per month for insurance, licensing and depreciation along with a variable cost of $0.49 per mile multiplied by the number of miles drove during the month. Thus, the total cost per month for Larry can be written as,
Let x be the number of mile driven for the month.
Total cost per month = 0.49x + 470
Expected Cost for April will be = 0.49 * 1557 + 470 = $1232.93
The ledger of Sage Hill Inc. at the end of the current year shows Accounts Receivable $78,000; Credit Sales $855,000; and Sales Returns and Allowances $36,000. (a) If Sage Hill uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Sage Hill determines that Matisse’s $750 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $1,150 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 9% of accounts receivable. (c) If Allowance for Doubtful Accounts has a debit balance of $450 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 7% of accounts receivable.
Answer and Explanation:
The journal entries are shown below:
(a) Bad debt expense $750
To Accounts receivable $750
(Being the bad debt expense is recorded)
(b) Bad debt expense $5,870
To Allowance for doubtful accounts $5,870
(Being the allowance is recorded)
The computation is below:
Bad debt expense = Accounts receivable × estimated percentage - credit balance in allowance for doubtful accounts
= $78,000 × 9% - $1,150
= $5,870
(c) Bad debt expense $5,910
To Allowance for doubtful accounts $5,910
(Being the allowance is recorded)
The computation is below:
Bad debt expense = Accounts receivable × estimated percentage + debit balance in allowance for doubtful accounts
= $78,000 × 7% + $450
= $5,910
The accounting depmiment at Aglaya Telecom records an average of 5,000 transactions per hour. By cost-benefit analysis, managers have concluded that the maximum acceptable loss of data in the event of a system failure is 50,000 transactions. The firm's recovery point objective is therefore (by relying on redundant systems) ________.
Answer:
10 hours
Explanation:
A recovery point objective (RPO) is the maximum acceptable amount of data loss measured in time. It is the age of the files or data in backup storage required to resume normal operations if a computer system or network failure occurs. It helps system administrators to determine appropriate disaster recovery policies and procedures and decide which backup and recovery technologies to employ.
Worst case RPO = Maximum Acceptable Loss/Average Transactions per hour
Worst case RPO = 50,000 / 5000 = 10
The firm's recovery point objective is therefore 10 hours.
NNR Inc.'s balance sheet showed total current assets of $1,875,000 plus $4,225,000 of net fixed assets. All of these assets were required in operations. The firm's current liabilities consisted of $475,000 of accounts payable, $375,000 of 6% short-term notes payable to the bank, and $150,000 of accrued wages and taxes. Its remaining capital consisted of long-term debt and common equity. What was NNR's total investor-provided operating capital?
Answer:
$5,475,000
Explanation:
The computation of the total investor provided operating capital is shown below:
Total investor provided operating capital = Long term Debt & Equity + short term note payable
where,
Long term debt & equity = Total assets - current liabilities
where,
Total assets = Current assets + net fixed assets
= $1,875,000 + $4,225,000
= $6,100,000
And, the current liabilities = Account payable + short term note payable + accrued wages and taxes
= $475,000 + $375,000 + $150,000
= $1,000,000
So, the long term debt & equity is
= $6,100,000 - $1,000,000
= $5,100,000
Now the total investor-provided operating capital is
= $5,100,000 + $375,000
= $5,475,000
We simply applied the above formula
Which of the following generate the type of externality previously described? Check all that apply. The city where you live has granted a permit to put a movie theater in your neighborhood, causing traffic jams at night and on weekends. A microbiology lab has published its breakthrough in swine flu research. Your roommate Jacques has bought a bird that keeps you up at night with its chirping. Darnell has planted several trees in his backyard that increase the beauty of the neighborhood, especially during the fall foliage season.
There are two types of externality that is:
The First is Positive externality
The Second is Negative externality
What is an externality?A positive externality is when the usefulness of economic activities to third parties exceeds the costs. An illustration of an activity that generates a positive externality is research.
Activities that generate positive externality are usually underproduced in the economy. For this explanation, the government usually gives a subsidy to motivate its production.
A negative externality is when the cost of movements to third detachments not interested in the activity is greater than its benefit. An example of an activity that induces a negative externality is pollution. Activities that induce negative externality are usually overproduced in the economy, so, the government imposes a tax on such activities to reduce its production.
In the above inquiry, the following activities that generate positive externalities are:
1. A microbiology lab has disseminated its breakthrough in swine flu examination
2. Darnell has planted several trees in his backyard that improve the beauty of the neighborhood, particularly during the fall foliage season.
In the above query, the subsequent activities generate negative externality:
1. The city where you live has awarded a permit to put a movie amphitheater in your neighborhood, forcing traffic jams at night and on weekends
2. Your roommate Jacques has purchased a bird that maintains you up at night with its chirping
Find more information about externality here:
https://brainly.com/question/477170
The type of externality described in the question is a negative externality. The movie theater being granted a permit in the neighborhood causes traffic jams at night and on weekends, which negatively affects the residents.
Explanation:The type of externality described in the question is a negative externality. A negative externality occurs when the actions of a person or entity impose costs on others.
In this case, the situation of a movie theater being granted a permit in a neighborhood causing traffic jams at night and on weekends is an example of a negative externality. The traffic jams negatively affect the residents of the neighborhood by increasing congestion and potentially causing inconvenience or delays.
Therefore, the correct options that generate this type of externality are:
The city granting a permit for the movie theaterThe movie theater causing traffic jams at night and on weekendsLearn more about Negative externality here:https://brainly.com/question/34051758
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On December 28, 2021, Videotech Corporation (VTC) purchased 15 units of a new satellite uplink system from Tristar Communications for $26,000 each. The terms of each sale were 1/10, n/30. VTC uses the gross method to account for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on January 6, 2022. Prepare the journal entries on December 28 and January 6 to record the purchase and paymen
Answer:
December 28, 2021
Merchandise $26,000 (debit)
Trade Payable $26,000 (credit)
January 6, 2022
Trade Payable $260 (debit)
Discount Received $260 (credit)
Being recognition of discount received
Trade Payable $25,740 (credit)
Cash $25,740 (credit)
Being settlement of an account
Explanation:
December 28, 2021
Recognise Liability and an Asset
January 6, 2022
Recognise Cash and an Income and also de-recognise a Liability
Answer:
December 28, 2021 Entry:
DR: Satellite uplink systems($26,000*15) $390,000
CR: Accounts Payable(Tristar Communication) $390,000
(To record purchase of Satellite uplink systems from Tristar Communication on credit)
Entry on January 6, 2022:
DR: Accounts Payable(Tristar Communication) $ 390,000
Cr: Cash Discount (390,000×1%) $3,900
Cr: Cash/Bank $ 386,100
Explanation:
On Dec 28, 2021 as the units were purchased on credit so a liability is recognized against the purchase of assets.
On Jan 6, 2022 there has been a cash discount received of 1% of invoice value if payment has been made with 10 days of invoice. As the payment has been made with in 10 days so a cash discount is received which is categorized as an income for the business.
Suppose that the production function is qequalsUpper L Superscript 0.50Upper K Superscript 0.50. What is the average product of labor AP Subscript Upper L, holding capital fixed at ModifyingAbove Upper K with caret? A. AP Subscript Upper Lequalsq divided by Upper L. B. AP Subscript Upper LequalsUpper L Superscript negative 0.50ModifyingAbove Upper K with caret Superscript 0.50. C. AP Subscript Upper Lequals0.50Upper L Superscript negative 0.50ModifyingAbove Upper K with caret Superscript 0.50. D. Both a and b. E. All of the above.
Answer:
D. Both a and b
Explanation:
The average product of worker is a term of economy in which we identify the output per worker. This function enables to understand the output by each worker. The function can be written as
AP q/L
Where q is output and L is number of worker.
It enables to understand the average product of output over the input. The average product is useful to identify the production at specific level of input. This is a common measure for labor productivity.
A corporation purchases 35000 shares of its own $20 par common stock for $30 per share, recording it at cost. What will be the effect on total stockholders’ equity? Decrease by $700000. Decrease by $1050000. Decrease by $350000. Increase by $1050000.
Answer:
Decrease by $1,050,000
Explanation:
Data provided as per the question
Purchase shares = 35,000
Common stock per share = $30
The computation of total stockholders’ equity is shown below:-
Treasury stock = Purchase shares × Common stock per share
= 35,000 × $30
= $1,050,000
Shareholder's Equity will be reduced by $1,050,000. So, for calculating the shareholder equity we simply applied the above formula.
Troy Engines, Ltd., Manufactures A Variety Of Engines For Use In Heavy Equipment. The Company Has Always Produced All Of The Necessary Parts For Its Engines, Including All Of The Carburetors. An Outside Supplier Has Offered To Sell One Type Of Carburetor To Troy Engines, Ltd., For A Cost Of $31 Per Unit. To Evaluate This Offer, Troy Engines, Ltd., ...
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Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $31 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally:
Per Unit 15,000 Units
Per Year
Direct materials $ 9 $ 135,000
Direct labor 11 165,000
Variable manufacturing overhead 2 30,000
Fixed manufacturing overhead, traceable 6* 90,000
Fixed manufacturing overhead, allocated 13 195,000
Total cost $ 41 $ 615,000
*40% supervisory salaries; 60% depreciation of special equipment (no resale value).
Required:
1a.
Assuming that the company has no alternative use for the facilities that are now being used to produce the carburetors, compute the total cost of making and buying the parts. (Round your Fixed manufacturing overhead per unit rate to 2 decimals.)
Answer:
Total relevant cost for making the parts =$387,400
Total relevant cost for buying the parts = $465,000
Explanation:
The computation of total cost of making and buying the parts is shown below:-
Make Buy
Cost of purchasing 0 $465,000
(15,000 × $31)
Direct material $135,000 0
Direct labor $165,000 0
Variable manufacturing
overhead $30,000 0
Fixed manufacturing
overhead $57,240 0
Total relevant cost $387,400 $465,000