Angela is now going to evaluate a new salt process delivery system and wants to know if the upper and lower control limits at 3 standard deviations for the new system will meet the upper and lower controls specifications noted above. The population standard deviation is ? = .07. The data (in percent) from the initial trial samples are:
Sample 1: 1.98 2.11 2.15 2.06
Sample 2: 1.99 2.0 2.08 1.99
Sample 3: 2.20 2.10 2.20 2.05
Sample 4: 2.18 2.01 2.23 1.98
Sample 5: 2.01 2.08 2.14 2.16
Provide your findings to Angela. Please show all work.
a.What are the advantages and disadvantages of Frito-Lay drivers stocking their customers' shelves?
b.Why is quality a critical function at Frito-Lay?
Answers
Complete Question:
Frito•Lay's Quality•Controlled Potato Chips Frito-Lay, the multi-billion-dollar snack food giant, produces billions of pounds of odic( every year at its downs of US. and Canadian plants. From the fanning of potatoes—I brida, Moral Carolina, and Michigan—b factory and to retail stores, the ingredients and final product of Lay's chips, for example, are respected at least 11 Ines: h the field, before tnbadhg at the plant, after washing and peeling, at the sizing station, at he fryer, after seasoning, when bagged (for weight), at carton filling, h the warehouse, and as they are placed on the store shelf by Frib-Lay personnel. Similar inspections take place for ib other famous products, including Cheetos, Fritz, Ruffles, and Tostibs. In addition to these employee inspections, the firm uses proprietary vision systems to look for defective potato clips. Chips are pulled off the high-speed line and checked twice if he visits system senses them to be to brown. lire company follows the very strict standards of the American Institute of Baling (AIB), standards that are much tougher than those of the US. Food and Drug Administration. Two warnourted AIB site visits per year keep Frito-Lay's plants cn their toes. Scores, consistently in the "excellent' range, are posted, and every employee knows exactly how the plant is doing. There are two key metrics in Frito-Lay's continuous improvement quality program: (1) total customer complaints (measured on acomplabb per million bag basis) and (2) horror daily statistical process control scores (far oil, moisture, seasoning, and salt content, for chip thickness, for fryer temperature, and for weight). In the Florida plant, Angela McCormack, who holds engineering and MBA degrees, oversees a 16-member quality assurance staff. They watch all aspects of quality, including trailing employees on the factory floor, monitoring automated processing eq.ibment, and developing and updating statistical process control (SPC) charts. The upper and lower control limits for one checkpoint, salt content in Lay's chips, are 2.22% and 1.98%, respectively. To see exactly how these limits are created using SPC, watch the vkleco that accompanies this case. Angela is now gonged b evaluate a new salt process delivery system and wants to Prow if the per and bv.er control limits at 3 standard deviations for the new system will meet the upper and lower control specifications noted above. the data (in percents) from the initial trial samples ae:
Sample 1:1.98, 2.11, 2.15, 206
Sample 2: 1.99, 2.0, 208, 1.99
Sample 3: 2.20, 2.10. 220, 205
Sample 4: 2.18, 2.01, 223, 1.98
Sample 5: 2.01, 2.08, 2.14, 216
Provide the report to Angela
Answer and explanation:
check the attached file for comprehensive step by step solution
The mean of each sample was calculated and then used to determine an overall mean, which was then utilized to compute upper and lower control limits. The standard deviation was incorporated into this calculation. The computed control limits were recommended for comparison with the system's specifications.
Explanation:To evaluate the new salt process delivery system, we will first calculate the mean of each sample, and then calculate the overall mean. When we have the overall mean, we can compute the upper and lower control limits.
Mean of Sample 1 = (1.98 + 2.11 + 2.15 + 2.06)/4 = 2.075Mean of Sample 2 = (1.99 + 2.0 + 2.08 + 1.99)/4 = 2.015Mean of Sample 3 = (2.20 + 2.10 + 2.20 + 2.05)/4 = 2.1375Mean of Sample 4 = (2.18 + 2.01 + 2.23 + 1.98)/4 = 2.10Mean of Sample 5 = (2.01 + 2.08 + 2.14 + 2.16)/4 = 2.0975The overall mean is then (2.075 + 2.015 + 2.1375 + 2.10 + 2.0975)/5 = 2.085
Using the formula for control limits, which is mean ± (3 × standard deviation), and given the standard deviation is 0.07, the upper control limit will be 2.085 + (3 × 0.07) = 2.295 and the lower control limit will be 2.085 - (3 × 0.07) = 1.875. Angela should compare these control limits with the system's specifications.
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Related Questions
The City of Tutland issued $10 million, 6 percent, 10-year bonds at 101 to finance refurbishment of its water utility fund equipment. The bond is suance is reported in the water utility enterprise fund statement of cash flows as
a. A cash flow from operating activities.
b. A cash flow from noncapital financing activities.
c. A cash flow from capital and related financing activities.
d. A cash flow from investing activities.
Answers
Answer:
b. A cash Flow from non capital financing activity
Explanation:
It is a cash flow from non capital financing activity since no shares have been issued thus option c. is not applicable
The City of Tutland has obtained financing, so it is not cash generated from operating activities.
This transaction is also not an investing activity since this is as source if fund and no long term assets are procured in this transaction
Answer: c. A cash flow from capital and related financing activities
Explanation:
It is Cash flow from Capital and financing related activities because first of all, the funds are to be used to refurbish of the Town's water utility fund equipment which is a Capital Expense.
Also it relates to the raising of funds on the capital market which goes into the Finance portion of the Cash Flow statement.
With these considerations in mind, the activity will be recorded as a cash flow from capital and related financing activities.
If you need any clarification do react or comment.
The BobCat Inc. reported gross sales of $100,000, sales returns and allowances of $5,000, and sales discounts of $2,000. The company has $25,000 in tangible assets and $120,000 in average total assets. What is the company's asset turnover ratio
Answers
Answer:0.775 times
Explanation:
Given
Gross sales 100000
Sales returns 5000
Sales discounts 2000
Tangible assets 25000
Average total assets 120000
Calculation of assets turn over ratio
Assets turnover ratio = Net sales / Average total assets
=(100000-5000-2000)/120000
=0.775 times
Assets turnover ratio is 0.775 times
Gross sales is the sales made by the company but net sales is where the actual value of sales has happened after the rebates, allowances and discounts. Assets turn over ratio is used to measure the company's abilities to utilize its assets efficiently in generating sales income to the company.
The average number of different products offered in each product line (also called assortment) ...is known as the ___________________. Examples: Procter & Gamble markets three brands of deodorants: Old Spice, Secret, and Sure
Answers
Answer:
The correct word for the blank space is: Depth of Product Mix.
Explanation:
A product mix represents the combination of product lines a company manufactures. The product mix has four (4) characteristics: width, length, depth, and consistency. The depth of the product mix refers to the diversity of each good in a product mix has. That diversity implies talking about the sizes, flavors, odors, presentations, or any other particular feature that the same product has.
Final answer:
The average number of different products in each product line, known as assortment, is a key concept in business, affecting the availability of variety for consumers in a monopolistically competitive market.
Explanation:
The average number of different products offered in each product line, also known as assortment, is an important concept in the field of business, particularly in marketing and consumer behavior.
In the context of monopolistic competition, product assortment becomes a significant factor as it relates to the degree of variety available to consumers. When a company, like Procter & Gamble, offers multiple brands of a product such as deodorants (\
Barbara Muller Services (BMS) pays its employees monthly. The payroll information listed below is for January 2018, the first month of BMS's fiscal year. Assume none of the employees' earnings reached $7,000 during the month. Salaries $ 80,000 Federal income taxes to be withheld 16,000 Federal unemployment tax rate 0.80 % State unemployment tax rate (after FUTA deduction) 5.40 % Social security tax rate 6.2 % Medicare tax rate 1.45 % The journal entry to record payroll for the January 2018 pay period will include a debit to payroll tax expense of:
Answers
Answer:
$13,296
Explanation:
Federal unemployment tax rate = 0.8% of 96,000 = 768
State unemployement tax rate = 5.4% of 96,000 = 5,184
Social security tax rate+medicare tax rate = 6.2%+1.45% = 7.65%
7.65% of 96,000 = 7,344
So total tax expense = 768+5,184+7,344 = $13,296
So answer is $13,296
Keyboard uses activity-based costing. Two of Keyboard's production activities are kitting (assembling the raw materials needed for each computer in one kit) and boxing the completed products for shipment to customers. Assume that Keyboard spends $9,000,000 per month on kitting and $21,000,000 per month on boxing. Keyboard allocates the following:
Kitting costs based on the number of parts used in the computer
Boxing costs based on the cubic feet of space the computer requires
Suppose Keyboard estimates it will use 300,000,000 parts per month and ship products with a total volume of 35,000,000 cubic feet per month. Assume that each desktop computer requires 175 parts and has a volume of 5 cubic feet. The predetermined overhead allocation rate for kitting is $0.03 per part and the predetermined overhead allocation rate for boxing is $0.60 per cubic foot.
What are the kitting and boxing costs assigned to one desktopcomputer?
Answers
Answer:
$5.25 per desktop computer and $3 per desktop computer
Explanation:
The computation of the assigned cost to the kitting and boxing costs is shown below:
The formula is
= Predetermined overhead rate × required units
For kitting, it is
= $0.03 × 175 parts
= $5.25 per desktop computer
For boxing, it is
= $0.60 × 5 cubic feet
= $3 per desktop computer
We simply applied the above formulas
Check my work Check My Work button is now enabled 1 Item 3 Item 3 2.5 points Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity Standard Price or Rate Standard Cost Direct materials 2.60 ounces $ 20.00 per ounce $ 52.00 Direct labor 0.60 hours $ 16.00 per hour 9.60 Variable manufacturing overhead 0.60 hours $ 4.50 per hour 2.70 $ 64.30 During November, the following activity was recorded relative to production of Fludex: a. Materials purchased, 13,000 ounces at a cost of $244,400. b. There was no beginning inventory of materials; however, at the end of the month, 3,300 ounces of material remained in ending inventory. c. The company employs 20 lab technicians to work on the production of Fludex. During November, they worked an average of 150 hours at an average rate of $14.00 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $6,500. e. During November, 3,600 good units of Fludex were produced .
Answers
Complete table :
Standard Standard Standard
Quantity Price(or rate) Cost
Direct Materials 2.60 ounces $20.00 per ounce $ 52.00
Direct labor 0.60 hours $16.00 per hours 9.60
Variable manuf 0.60 hours $4.50 per hour 2.70
-acturing Overhead
Total standard cost per unit $64.30
Required:
1) For direct materials:
a) compute the price and quantity variances
b) The materials were purchased from a new supplier who is anxious to enter into a long - term purchase contract, would you recommend that the company sign the contract?
2) For direct labor:
a) Compute the rate and efficiency variances
b) In the past 23 technicians employed in the production of Fludex consists of 4 senior technicians and 19 assistants. During November, the company experimented with fewer senior technicians and more assistants to reduce labor costs, would you recommend that the new labor mix be continued?
3) compute the variable overhead rate and efficiency variances
Answer:
Check below for answer
Explanation:
1a) Standard quantity of material for actual production(SQ) = 3600*2.60 = 9360 ounce
Actual quantity of material purchased = 13000 ounce
Actual quantity of material used(AQ) = 13000 - 3300 = 9700 ounce
Standard price of material(SP) = $20 per ounce
Actual price of material(AP) = $244,400 / 13000 = $18.80
Material price variance = (SP - AP) * AQ purchased = ($20 - $18.80) * 13000 = $15,600 F
Material quantity variance = (AQ - SQ) * SP = (9700 - 9360) * $20 = $6800 U
2a) Standard hours of direct labor = 3600*0.6 = 2160 hours
Standard rate of direct labor(SR) = $16 per hour
Actual hours of direct labor(AH) = 20*150 = 3000 hours
Actual rate of direct labor(AR) = $14 per hour
Direct labor rate variance = (SR - AR) * AH = ($16 - $14) * 3000 = $7,000 F
Direct labor efficiency variance = (AH - SH) * SR = (3000 - 2160) * $16 = $13,440U
2b) If more assistants rather senior technicians are employed, favorable direct labor rate variance will improve but efficiency variance will be unfavorable. Since unfavorable efficiency variance is higher than favorable rate variance, the new labor mix should not be continued.
3) Standard hours of direct labor = 2160 hours
Standard rate of variable overhead= $4.50 per hour
Actual hours of direct labor = 3000
Actual rate of variable overhead = $6500 / 3000 = $2.17 per hour
Variable overhead rate variance = (SR - AR) * AH = ($4.50 - $2.17) * 3000 = 6990 F
Variable overhead efficiency variance = (SH - AH) * SR = (2160 - 3000) * $4.50 = $186.67 U
The following transactions occurred during May, the first month of operations for Hunter Products, Inc: * Issued 55,000 shares of capital stock to the owners of the corporation in exchange for $660,000 cash. * Purchased a piece of land for $450,000, making a $175,000 cash down payment and signing a note payable for the balance. * Made a $65,000 cash payment on the note payable from the purchase of land. * Purchased equipment on credit from BBW, Inc. for $68,000.
Answers
Answer:
$420,000
Explanation:
Data provided as per the question
Issuance of capital stock = $660,000
Cash down payment = $175,000
Cash payment on the note payable = $65,000
The computation of balance of cash account is shown below:-
Cash balance = Issuance of capital stock - Cash down payment - Cash payment on the note payable
= $660,000 - $175,000 - $65,000
= $420,000
This question pertains to financial accounting in Business at a College level. It involves understanding the impact of different business transactions on the financial position and accounting books of a company. The transactions are indicative of the company's financial activities and can be used to prepare their financial statements.
Explanation:The subject of the question is related to the field of Business, specifically to financial accounting. During May, Hunter Products, Inc. conducted several operations, all of which influence their financial position. They issued shares of capital stock worth $660,000, made a cash down payment on the purchase of a land property, and committed to a loan for the outstanding balance. Additionally, they also repaid a part on the issued note payable, and made credit purchases for business equipment.
The impact of these actions on the company's financial books would vary. The issuance of capital stock increases owners equity, land purchase either decreases cash holdings or increases liabilities depending on the mode of purchase, payment on note payable decreases liabilities, and purchase of equipment on credit increases assets and liabilities.
The transaction details provided give a snapshot of the company's financial activities in the month of May. This information can be used to prepare a balance sheet, income statement, or cash flow statement.
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A firm experiences constant returns to scale when _______. A. the LRAC curve is upward sloping B. average total cost does not change when output changes C. the plant the firm uses and the quantity of labor the firm hires remain constant D. the LRAC curve is downward sloping
Answers
Answer:
B. average total cost does not change when output changes
Explanation:
A firm can experience increasing or decreasing return to scale and constant return to scale, it depends on various factors from the average total cost to output changes. If a firm experiences constant return to scale it means that the average total cost does not change when output changes. If the average total cost increases that mean increasing return to scale and if it decreases than decreasing return to scale
A person who decides to buy or sell securities based on publicly available information and analysis is called a(n) ______ trader. 1. public 2. inside 3. normal 4. informed 5. block
Answers
Answer:
4. informed
Explanation:
An Informed trader only makes his buying or selling decision based on publicly available information.
Retirement savings
A couple thinking about retirement decides to put aside $3,000 each year in a savings plan that earns 8% interest. In 5 years, they will receive a gift of $10,000 that also can be invested.
a. How much money will they have accumulated 30 years from now?
b. If the goal is to retire with $800,000 savings, how much extra do they need to save every year?
Answers
Answer:
a. $408,334.39
b. $3,457.40
Explanation:
r = rate per period = 8% = 0.08
P = Initial Value of Gift = $10,000
t = time = 30 - 5 = 25, As received after 5 years.
[tex]A = P (1 + r)^{t}[/tex]
[tex]A = $10,000 (1 + 0.08)^{25}[/tex]
[tex]A = $10,000 x 1.08^{25}[/tex]
A = $10,000 x 6.8485
A = $68,484.75
[tex]FV of annuity = P [\frac{(1 + r)^{n} - 1}{r} ][/tex]
P = Periodic Payment = $3,000
a.
n = number of periods = 30
[tex]FV of annuity = 3,000 [\frac{(1 + 0.08)^{30} - 1}{0.08} ][/tex]
[tex]FV of annuity = 3,000 [\frac{(1.08)^{30} - 1}{0.08} ][/tex]
[tex]FV of annuity = 3,000 [\frac{10.0627 - 1} {0.08} ][/tex]
[tex]FV of annuity = 3,000 [\frac{9.0627} {0.08} ][/tex]
FV of annuity = $3,000 x 113.2832
FV of annuity = $339,849.63
Accumulated value of money can be calculated as follows;
$68,484.75 + $339,849.63
$408,334.39
b.
If they wish to retire with $800,000 savings, they need to save additional amount of money every year to provide additional amount of money, as follows;
$800,000 - $68,484.75
$731,515.24
The extra annual savings can be calculated as follows;
[tex]731,515.24 = P [\frac{(1 + 0.08)^{30} - 1 }{0.08} ][/tex]
$731,515.24 = P x 113.28
Divide the above equation by 113.28 we get;
[tex]P = \frac{731,515.24}{113.28}[/tex]
P = $6,457.40
They are already paying $3,000, So the extra saving they need make every year is calculated as follows;
$6,457.40 - $3,000
$3,457.40
) Healthy Living, a diet magazine, collected $240,000 in subscription revenue on May 31. Each subscriber will receive an issue of the magazine in each of the next 12 months, beginning with the June issue. The company uses the accrual method of accounting. What is the amount of Subscription Revenue that has been earned by the end of December
Answers
Answer:
$140,000
Explanation:
$240,000*7/12= $140,000
The journal entry to record accrual of subscription will be as follows;
Unearned Subscription Income Dr.$140,000
Subscription Income Cr.&140,000
The entry made at time of receipt of subscription was;
Bank Dr.$240,000
Unearned Subscription income Cr.$240,000
Suppose a basket of goods and services has been selected to calculate the consumer price index. In 2005, the basket of goods cost $108.00; in 2006, it cost $135.00; and in 2007, it cost $168.75. Which of the following statements is correct?
a. Using 2005 as the base year, the economy's inflation rate was higher in 2007 than it was in 2006.
b. If 2007 is the base year, then the CPl is 33.75 in 2006.
c. If the CPI is 156.25 in 2007, then 2005 is the base year.
d. Using 2005 as the base year, the economy's inflation rate for 2006 was 27 percents of Eoo milion and Tas rotained 30 nercent of
Answers
Answer:
Correct option is C.
If the CPI is 156.25 in 2007, then 2005 is the base year.
Explanation:
The CPI js given by the formula:
Current year prices/base year prices x 100
Given the values in years 2005,2006 and 2007, of all the given options, option (c) if the CPI is 156.25 in 2007, then 2005 is the base year is corrrect. This is because calculating CPI for 2007 using the above formula and 2005 as base year gives us CPI as 156.25.
Present value of an annuity On January 1, you win $54,000,000 in the state lottery. The $54,000,000 prize will be paid in equal installments of $6,750,000 over eight years. The payments will be made on December 31 of each year, beginning on December 31 of this year. The current interest rate is 4.5%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the present value of your winnings. Round your answer to the nearest dollar.
Answers
Answer:
The present value of the winnings is $44,522,230.95
Explanation:
The present value of the winnings is determined by multiplying by each cash flow in relevant year with the discounted factor for that specific year.
formula for discount factor=1/(1+r)^n
r is the current interest rate of 4.5% used a discounting rate
n is the year to which the cash flow relates.
Based on the explanation above,the present value of the winnings cash inflows is $44,522,230.95 as found in the attached.
Under U.S. GAAP, if the carrying value of a fixed asset was $50,000, the undiscounted expected future cash flows was $55,000, the discounted expected future cash flows was $51,000, and the selling price was $53,000, what is the amount of impairment loss?
Answers
Answer:
$0
Explanation:
According to US GAAP the reduction in the value of the asset due to a decrease in the fair value. It means when fair value of the asset is reduced than the book value of the asset.
Amortized Cost / Book value = $50,000
Market Value = $53,000
Discounted Value = $51,000
There is no Impairment loss on this asset as the fair market value is more than the book value of the asset.
Answer:
Nil, asset is not impaired.
Explanation:
An asset is said to be impaired if and only if the carrying amount of the asset is more than the recoverable amount.
The recoverable amount is the higher of the value in use (which is the discounted expected future cash flows) and the fair value less cost to sell.
Recoverable amount = $53,000 (being the higher of the selling price and the discounted expected future cash flow)
Since this is higher than the carrying value of the asset, it is not impaired.
Suppose the current level of output is 5000 and the elasticity of output with respect to capital is 0.4. A 10% increase in capital would increase the current level of output to ___________.
A) 5020
B) 5050
C) 5200
D) 5500
Answers
Final answer:
A 10% increase in capital, based on an elasticity of 0.4, results in a 4% increase in output. The new output level is calculated to be 5200 after factoring in the increase from the initial 5000 output.
Explanation:
The question asks for the calculation of a new level of output based on the elasticity of output with respect to capital. The output elasticity coefficient is given as 0.4, and we are told that there is a 10% increase in the capital. Using these figures, we can calculate the percentage increase in output and then apply it to the initial output level.
To calculate the increase, we use the formula for elasticity: percentage change in output = elasticity × percentage change in capital. Hence, the percentage increase in output is 0.4 (elasticity) × 10% (increase in capital) = 4%. To find the new level of output, we add the 4% increase to the original output:
5000 + (4% of 5000) = 5000 + 200 = 5200.
Therefore, a 10% increase in capital would increase the current level of output to 5200.
If the price of good X increases by 2%, and that causes the quantity demanded of good Y to increase by 10%, then the cross-price elasticity of demand for good Y, with respect to the price of good X, is ________ ,and the two goods are _______.
Answers
Answer:
The cross elasticity of good X 5%, divide 10% of change in demand from the 2% of price increase in good Y.
The two goods are SUBSTITUTE Goods.
Explanation:
In substitute goods, when the price of one good increases, people start using less of that good and move onto use cheaper other goods that can be used instead of that good.
Define project cost terms and tell how each is used in estimating project cost. Compare and contrast analogous, parametric, and bottom-up methods of estimating costs. Describe issues in project cost estimating and how to deal with each.
Answers
Answer:
The project cost is a cost required to procure all the needed products, services and resources to deliver the project successfully.
Explanation:
Analogous estimation: involves comparing a past similar project to your current project and the use of analogy to estimate cost.
Parametric Estimation: This estimation uses the historical data based on the real data and saves lots of time to calculate the cost estimation.
Bottom-up approach: also called definitive technique breaks up all activities of the project to the micro level in order to conduct comprehensive cost estimation.
The issues in project cost estimation include cost overruns, inefficiencies and project surprise. To effectively mitigated them, Bottom-up approach should be applied. It is an expensive but very reliable method.
Chu Company provided the following information related to its inventory sales and purchases for December Year 1 and the first quarter of Year 2:
Dec. Year 1 Jan. Year 2 Feb. Year 2 Mar. Year 2
(Actual) (Budgeted) (Budgeted) (Budgeted)
Cost of goods sold $ 50,000 $ 80,000 $ 100,000 $ 70,000
Desired ending inventory levels are 35% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February Year 2 would be:
Answers
Answer:
$89,500
Explanation:
The computation Budgeted purchases of inventory is shown below:-
February,opening inventory = $100,000 × 35%
= $35,000
Ending inventory = $70,000 × 35%
= $24,500
Cost of goods sold = Opening inventory + Purchase - Ending inventory
= $100,000 = $35,000 + Purchase - $24,500
Purchase = $89,500
Therefore for computing the purchase inventory we simply applied the above formula.
A company has got $500 in cash and cash equivalents, $300 in inventory and $200 in account receivables. The firm has long term assets of $500. The firm has accounts payables of $200. All other current liabilities total $400. The firm had sales of $10000, EBIT of $5000, interest expenses of $2000 and net income of $800.
Compute the following ratios:
Current ratio, Debt Ratio, TIE, profit margin, total asset turnover.
Answers
Answer:
The computation is shown below:
Explanation:
The computation is shown below:
Current ratio = current assets ÷ current liabilities
where,
Current assets = cash + inventory + account receivables
= $500 + $300 + $200
= $1000
Current liabilities is
= $200 + $400
= $600
So, the current ratio is
= $1,000 ÷ 600
= 1.67 times
Debt Ratio is
= Total Liabilities ÷ Total Assets
= $600 ÷ $1,500
= 40%
TIE is Time Interest Earned ratio
= EBIT ÷ Interest Expense
= $5,000 ÷ $2,000
= 2.5
Profit margin is
= Net Income ÷ Total Sales
= $800 ÷$10,000
= 8%
And,
Total asset turnover is
= Sales ÷ Total Assets
= $10,000 ÷ $1,500
= 6.67
The examined financial ratios given the company's specifics are as follows: Current Ratio is 1.67, Debt Ratio is 0.4, TIE is 2.5, Profit Margin is 8%, and Total Asset Turnover is 6.67.
Explanation:Given data allows us to calculate several important financial ratios.
Current Ratio is calculated as Current Assets / Current Liabilities. Here, current assets ($500 cash + $300 inventory + $200 account receivables = $1000) and current liabilities ($200 account payables + $400 other current liabilities = $600). So, Current Ratio = 1000 / 600 = 1.67.Debt Ratio is calculated as Total Debt/Total Assets. Here, Total Assets = Current Assets + Long term assets, which equals to $1000 + $500 = $1500. Total Debt is the same as total liabilities = $600. So, Debt Ratio = 600 / 1500 = 0.4.TIE (Times Interest Earned) ratio is calculated as EBIT / Interest Expenses, which is 5000/2000= 2.5.Profit Margin is calculated as Net Income / Sales, equaling 800 / 10000 = 0.08 or 8%.Total Asset Turnover is calculated as Sales / Total Assets, which comes out as 10000 / 1500 = 6.67.Learn more about Financial Ratios here:https://brainly.com/question/31531442
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Which one of the following statements concerning capital budgeting is not true? Multiple Choice Capital budgeting uses after-tax cash flows in the analysis of proposed investments. A basic objective underlying capital budgeting is to select assets that will earn a satisfactory return. Because of the existence of advanced forecasting techniques, capital budgeting is based on precise estimates of future events. Capital budgeting is the process of identifying, evaluating, selecting, and controlling long-term investment projects. Capital budgeting involves estimating the revenues and costs of each proposed project, evaluating their merits, and choosing those worthy of investment.
Answers
Answer:
Because of the existence of advanced forecasting techniques, capital budgeting is based on precise estimates of future events.
Explanation:
Capital budgeting is the process of identifying, evaluating, selecting, and controlling long-term investment projects and it involves estimating the revenues and costs of each proposed project, evaluating their merits, and choosing those worthy of investment.
Capital budgeting uses after-tax cash flows in the analysis of proposed investments.
Thus, the basic objective underlying capital budgeting is to select assets that will earn a satisfactory return.
A friend of yours trades stocks based on confidential information he overhears at his work. He even told you once that this information is not available to the general public. However, he keeps complaining to you that he can never make any profit on his stock trades. Based on this, you can argue that the stock market is ___ form efficient.
Answers
Answer:
The correct answer is letter "B": either weak, semi-strong, or strong.
Explanation:
The Efficient Market Hypothesis (EMH) is a theory that states that stocks reflect all the information there is so there is no form investors can beat the market even if having insider information. The EMH establishes then, that technical or fundamental analysis is useless at the moment of "predicting" stock prices.
There are three (3) forms of EMH: weak, semi-strong, and strong. Therefore, if a friend of ours mentions that he cannot beat the market even when having insider information, it implies the market he is trading at is either weak, semi-strong, or strong.
What does the principle of horizontal equity state? Taxpayers with a greater ability to pay taxes should pay larger amounts. People should pay taxes based on the benefits they receive from government services. Taxpayers with a similar ability to pay taxes should pay the same amount. Taxpayers with a lesser ability to pay taxes should pay larger amounts.
Answers
Answer:
The correct answer is letter "C": Taxpayers with a similar ability to pay taxes should pay the same amount.
Explanation:
Horizontal equity is considered the fairest taxation system because it proposes that individuals with a relatively similar income should pay the same amount of taxes. Therefore, those people will be subject to the same deductions and tax credits. This approach opposes the vertical equity theory that states individuals who perceive more income should pay more taxes.
Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its average cost per unit for each product at this level of activity are given below: AlphaBeta Direct materials $24 $12 Direct labor 23 26 Variable manufacturing overhead 22 12 Traceable fixed manufacturing overhead 23 25 Variable selling expenses 19 15 Common fixed expenses 22 17 Total cost per unit $133 $107 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 6. Assume that Cane normally produces and sells 97,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line
Answers
Answer:
-$2,100,000
Explanation:
The computation of the financial advantage or disadvantage is shown below
= Fixed costs avoided - contribution margin lost
where,
Fixed cost avoided is
= 110,000 units × $25
= $2,750,000
And, the contribution margin lost is
= (Selling price per unit - direct material per unit - direct labor per unit - variable manufacturing overhead per unit - Variable selling expenses per unit) × normally production & sales units
= ($115 - $12 - $26 - $12 - $15) × 97,000
= $4,850,000
So, the financial disadvantage is
= $2,750,000 - $4,850,000
= -$2,100,000
Cane Company would have a financial advantage of $2,425,000 by discontinuing the Beta product line, calculated by subtracting the total avoidable costs from the revenue generated by selling 97,000 units.
Explanation:To evaluate the financial advantage or disadvantage of discontinuing the Beta product line at Cane Company, we need to consider the avoidable costs associated with the product, including direct materials, direct labor, variable manufacturing overhead, traceable fixed manufacturing overhead, and variable selling expenses. Since common fixed expenses are unavoidable and allocated, we will not consider them in this calculation.
The total cost to produce and sell 97,000 units of Beta is:
Direct materials: 97,000 units x $12 = $1,164,000Direct labor: 97,000 units x $26 = $2,522,000Variable manufacturing overhead: 97,000 units x $12 = $1,164,000Traceable fixed manufacturing overhead: 97,000 units x $25 = $2,425,000Variable selling expenses: 97,000 units x $15 = $1,455,000The total avoidable cost is therefore $8,730,000.The total revenue from selling 97,000 units of Beta is: 97,000 units x $115 = $11,155,000.The net financial advantage of discontinuing Beta, therefore, would be the total revenue minus the avoidable costs:
$11,155,000 - $8,730,000 = $2,425,000.
Cane Company would have a financial advantage of $2,425,000 if it discontinues the Beta product line.
Which step in project management requires project managers to consider the types of records and reports they and their clients will require at the completion of the project?
Project closeout
Completion phase
Planning
Reporting
Answers
Answer:
The correct answer is letter "C": Planning.
Explanation:
The project management plan is a process that involves all the steps necessary to create and put into practice a project within a firm. It is composed of five (5) stages: initializing, planning, executing, monitoring and controlling, and closing.
In the planning stage, firms generate a budget, establish the teams of work and assign them the responsibilities they will be in charge following the project, develop a schedule, and determine the reports that will measure the project's success by the end of the project.
The C) planning phase in project management involves considering the types of records and reports needed at project completion. This ensures adequate documentation and evaluation later. Key elements include defining scope, objectives, and establishing communication plans.
The step in project management that requires project managers to consider the types of records and reports they and their clients will require at the completion of the project is the planning phase.
During the planning phase, project managers identify all necessary reports and records to ensure adequate follow-up and control processes. This phase involves:
Defining the scope and objectives of the projectEstablishing project deliverables and milestonesDeveloping communication plans to outline the progress reports requiredSetting up systems for documenting financial, resource, and progress dataConsidering these elements during the planning phase ensures accurate and appropriate evaluation of the project upon completion.
Which step in project management requires project managers to consider the types of records and reports they and their clients will require at the completion of the project?
A) Project closeout
B) Completion phase
C) Planning
D) Reporting
Preparing an Accounts Payable Schedule Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: April $374,400 May 411,200 June 416,000 Pilsner typically pays 25% on account in the month of billing and 75% the next month.Required: 1. How much cash is required for payments on account in May?
2. How much cash is expected for payments on account in June?
Answers
Answer:
1. $383 300 is due for the month of May.
2. $412 400 is due for the month of June
Explanation:
1. May = ($374000 * 75% from April purchases) + ($411 200 * 25% from May purchases)
= $280 500 + $102 800
= $383 300 is due for the month of May
2. June = ($411 200 * 75% from May purchases) + ($416 000 * 25% from June purchases)
= $308 400 + $104 000
= $412 400 is due for the month of June
Answer:
1. Cash required for payment in May - $383,600
2. Cash expected for payment in June - $412,400
Explanation:
Payments are made in two parts for the purchase of direct materials. From which 25% is being paid in the same month as bill and remainder (75%) in the next month. Therefore, the cash required for May would be calculated as follows:
$411,200 x 25% = $102,800 (Payment made same month)
$374,400 x 75% = $280,800 (Payment for the previous month, April)
Cash Required for payment in May is $383,600 ($102,800 + $280,800)
Cash expected for payments for June would be as follows:
$416,000 x 25% = $104,000 (Payment made same month)
$411,200 x 75% = $308,400 (Payment for the previous month, May)
Cash Expected for payment in June is $412,400 ($104,000 + $308,400)
An investor took out a loan of 150,000 at 8% compounded quarterly, to be repaid over 10 years with quarterly payments of 5,483.36 at the end of each quarter. After 12 payments, the interest rate dropped to 6% compounded quarterly. The new quarterly payment dropped to 5,134.62. After 20 payments in total, the interest rate on the loan increased to 7% compounded quarterly. The investor decided to make an additional payment of
X at the time of his 20
th payment. After the additional payment was made, the new quarterly payment was calculated to be 4,265.73 payable for 5 more years. Determine X.
Answers
Final answer:
To determine the value of X, we need to calculate the remaining balance on the loan after 20 payments and then use that balance to calculate the new quarterly payment. After performing the calculations, X is determined to be $53,724.33.
Explanation:
To determine the value of X, we need to calculate the remaining balance on the loan after 20 payments and then use that balance to calculate the new quarterly payment. Here are the steps:
Calculate the remaining balance after 20 payments:Calculate the present value of the remaining payments using the formula: PV = PMT * ((1 - (1 + r)^(-n)) / r), where PMT is the quarterly payment, r is the interest rate per quarter, and n is the number of remaining payments.Subtract the present value from the initial loan amount to get the remaining balance.Now we know that the remaining balance after 20 payments is $57,990.06.Calculate the new quarterly payment using the same formula:Plug in the remaining balance as the present value, the new interest rate (7% compounded quarterly) as r, and the remaining term (5 years) as n.Now we can solve for the new quarterly payment, which is $4,265.73.Next, subtract the new quarterly payment from the remaining balance to get the amount of the additional payment made at the time of the 20th payment.Therefore, X = $57,990.06 - $4,265.73 = $53,724.33.Monica, a sales consultant, will receive a performance appraisal soon. Monica's supervisor will be assessing Monica's ability to deliver products to clients according to schedule and her ability to meet customer quality requirements. Which performance standard is most likely important to Monica's employer? goal achievement strategic contribution improvement potential employee traits
Answers
Answer:
The correct answer is letter "A": goal achievement.
Explanation:
Performance appraisals are evaluations employers conduct based on a standard established by their companies where workers' performance is tested. It is useful to determine if the employees are fulfilling the expectations of the firm and if they are actually accomplishing the goals of why employees were hired for.
If a performance appraisal is focused on meeting customers' demands and delivering clients' products on time, the evaluation is likely to be focused on goal achievement or the ability to reach achievements in time and form based on what consumers may ask for.
Bingerton Industries uses a perpetual inventory system. The company began the year with inventory of $77,000. Purchases of inventory on account during the year totaled $302,000. Inventory costing $327,000 was sold on account for $504,000. Required: Record transactions for the purchase and sale of inventory. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answers
Answer:
Refer explanation
Explanation:
1. Purchase of Inventory ($302000)
This transaction has occurred on account which means that payment was not made immediately but would be made at a future date, thus a creditor to the business.
Debit : Purchases account : $302000
Credit : Accounts Payables account : $302000
2. Sale of inventory ($504000)
The sale of inventory requires two separate transactions. The sale is accounted and along with this, the amount of inventory sold would also have to be accounted as an asset reduction.
A. To reduce inventory:
Debit : Cost of Sales account : $327000
Credit : Inventory account : $327000
B. Record the sale:
Debit : Accounts Receivables account : $504000
Credit : Sales account : $504000
This too is a sale on account which means that a debtor has been incurred who will pay for the sale at a later date.
A customer buying a personal computer defines the types of disk drives, modem, memory configurations, and types of hardware when buying the product. Thus, the personal computer is an example of a _____ product.
Answers
Answer: option oriented
Explanation: By specifying the types of disk drives, modem, memory configurations, and types of hardware when buying a personal computer, the customer is engaged in an option oriented buying. The personal computer therefore is an example of an option-oriented product. An option-oriented product is defined as one in which configurations of standard parts can be selected by customers from a set of varying options. Such products are usually produced in flow-shop settings.
Answer:
The correct answer is letter "B": option-oriented.
Explanation:
Option-oriented products are those characterized for featuring certain characteristics that are not provided in regular mass-produced items. This is done to meet the needs of more demanding customers who look for goods that fit their personal use. These items are mostly manufactured by demand instead of mass-production.
An audience is first asked to write the last 2 digits of their social security number, and, second, to submit mock bids on items such as wine and chocolate. The half of the audience with higher two-digit numbers would submit bids that were between 60 percent and 120 percent higher than those of the other half. This is an example of:
Answers
Answer: Anchoring bias
Explanation: Anchoring bias is described as the tendency to focus on one value or idea known as the “anchor” and not adjust away from it sufficiently (the simple act of thinking of the first number strongly influences the second, even though there is no logical connection between them); It is also defined as the tendency of people to place subsequently refined answers to a given question close to the initially estimated answer, giving unduly weight to the initial answer, such as adjusting the initial estimate of 10% to 20% when 90% would have been more appropriate.
Some examples of anchors might include: real estate listing prices, initial cost estimates for development projects, salary of your last job etc.