Assume that Product Z is made of two units of A and three units of B. A is made of three units of C and four of D. D is made of two units of E Lead times for purchase or fabrication of each unit to final assembly are: Z takes two weeks; A, B, C, and D take one week each; and E takes three weeks. Sixty eight units of Product Z are required in Period 10. (Assume that there is currently no inventory on hand of any of these items.) b. Develop an MRP planning schedule showing gross and net requirements and order release and order receipt dates.

Answer:

The new required rate of return is 14.41%

Explanation:

The required rate of return (r) is the minimum return that investors require to invest in a company's stock. The required rate of return can be calculated using the CAPM approach. The formula for required rate of return  (r) is,

r = rRF + Beta * rpM

Where,

Using the old values, we calculate the beta of stock to be,

0.1175 = 0.055 + Beta * 0.0475

0.1175 - 0.055 = Beta  * 0.0475

0.0625 / 0.0475 = Beta

Beta = 1.3158 rounded off to 1.32

The new risk premium = 4.75% + 2%  =  6.75%

The new required rate of return (r) is,

r = 0.055 + 1.32 * 0.0675

r = 0.1441 or 14.41%

The rounded off figure for beta is used in calculation of new required rate of return so the answer might differ a little if the figure for beta was not rounded off.

To find Mikkelson Corporation's new required rate of return, first calculate the beta using the CAPM formula, then apply the new market risk premium and compute the new rate. The new required rate of return is 14.41%.

To find the company's new required rate of return, we'll use the Capital Asset Pricing Model (CAPM). The CAPM formula is:

CAPM: E(Ri) = Rf + β(E(Rm) – Rf)

First, we'll need to calculate the beta (β) of Mikkelson Corporation.

Step 1: Calculate the Beta (β)

Step 2: Calculate the New Required Rate of Return

Answer:

The answer is given below;

Explanation:

EPS=Net income-preferred dividends/Weighted average shares outstanding

a.Net income=$300,000*(1-30%)=$210,000

Common stocks  100,000

Bonds assumed to be converted into common stocks =$2,000,000/$1,000=2,000*15=30,000

Total common stocks=100,000+30,000=130,000

Diluted EPS=$210,000/130,000=$1.615

b.

*Net income=210,000-(1,000,000*6%)=$150,000

Common stocks=100,000

Bonds   =$1,000,000/$1,000=1,000*15=15,000

Preferred stocks=$1,000,000/$100=10,000*5=50,000

Total weighted average shares=100,000+15,000+50,000=165,000

Diluted EPS=Net income-preferred dividends/Weighted average shares

EPS=*$150,000/165,000=$.909

Answer:

$8,565

Explanation:

Sales revenue of the year 2015 = $30,010

Accrued royalty revenue on December 31, 2015 = 30,010 x 10%

= $3,001

Evan received royalties of $2,613 on April 1, 2016.

Hence, royalty receivable for the year ended December 31, 2015 = 3,001- 2,613

= $388

On October 1, 2016, Evan received royalties of $4,631.

Thus, royalty received for the first half of the year 2016 = 4,631 - 388

= $4,243

The 2nd half of 2016 sales were estimated to be $43,220

Hence, royalty for the second half of the year 2016 = 43,220 x 10%

= $4,322

Evan's 2016 royalty revenue = Royalty revenue for the first half + Royalty revenue for the second half

= 4,243 + 4,322

= $8,565

Answer:

The answer is B..

Explanation:

Stock split is the issuing of new shares to existing shareholders according to their current holdings from the total outstanding shares. It increases the number of outstanding shares.

Post-split stock price = Current price/new per old

Number of new shares = 3

Number of old shares = 1

Pre-split stock price = $150

Therefore, post-split stock price is:

1/3 x $150

=$50

Answer:

Yes, the contract is still valid.

Explanation:

Let us first clarify some terms first.

A contract is referred to as a legally binding agreement that is recognized, known and governs the rights and duties of the parties involved in an agreement. A contract is legally enforceable because it meets the features and approval of the law. An agreement basically involves the exchange of goods, transactions, services, money, or promises. In the case of breach of contract, the law awards the injured party access to legal remedies which include damages and cancellation.

Letter of revocation is an act by which a person having authority, calls back or in other words annuls a power, gift, or benefit, which had been bestowed upon another.

Yes, the contract still holds. This is due to the reason that the letter had a date mentioned on it which is August 4, a day before the contract was accepted even though the revocation letter arrived late.

Therefore, as regards to the date on the letter, the contract is still valid.

Final answer:

A binding contract appears to have been formed between Ernie and Elsie for the sale of Ernie's car because Elsie accepted the offer via email before receiving Ernie's revocation letter. According to the mailbox rule, the acceptance is effective when dispatched, making Elsie's acceptance on August 5 effective and the contract valid.

Explanation:

The situation described involves contractual obligations and whether an agreement has been formed between Ernie and Elsie. Under contract law, an offer can typically be revoked before it has been accepted. In this case, Ernie made an offer to sell his car to Elsie for $7,600 and agreed to keep the offer open for ten days. However, Ernie changed his mind and attempted to revoke the offer on August 4, sending Elsie a letter of revocation. Elsie sent an email accepting the offer on August 5, before receiving the letter of revocation which arrived on August 6.

As per the mailbox rule, which is widely accepted in contract law, an acceptance is effective when dispatched, as long as the communication is by an expressly or impliedly authorized means of communication. Since Elsie's acceptance via email was sent before Ernie's revocation was received, the acceptance would generally be considered effective on August 5, resulting in a binding contract. Ernie's revocation would only be effective upon receipt, which happened after the acceptance was already sent. Therefore, based on the given information, it appears that a contract was formed when Elsie emailed her acceptance on August 5.

Answer:

The answer is to minimize the reodering cost

Explanation:

We have three motives for holding inventory

1. Transaction motives of holding inventory This is to enable day to day transaction running of inventories.

2. Precautionary motives of holding inventory: Holding inventory to guard against unforeseen circumstances or to meet emergencies. For example, unexpected increase in demand.

3. Speculative motives of holding inventory. This is the holding of inventory in order to take advantage of any potential Investments. For example, to hedge against risk, take advantage of discounts.

All the options EXCEPT 'to minimize reodering cost' option are the reasons holding inventories.

The Net Income For Blue Bird LTD. is $69362.

Explanation:

As per Accounting Equation;

Total Asset = total equity + total liabilities

as we  are don't have equity so we will take it as x and liabilities as y

Now our equation will be,

$223500 = x+y ........................................................................(i) equation

we are also given a debt equity ratio =    [tex]\frac{Total of Debt}{Total of equity}[/tex]

                           Debt Equity Ratio =        [tex]\frac{Y}{X}[/tex]  

                                 .45x   =          y................................................... (ii) equation

so now putting y of (ii) equation into (i) equation, we will get

               $223500 =  x+ .45x

                        x =[tex]\frac{223500}{1.45}[/tex]

                        x (i.e equity) =  $154,138

           and,        y (debt )      = $69362

to find net income , where Return on equity (ROE) =[tex]\frac{net income}{shareholder equity}[/tex]

                                                 net income  = .12×$154138

                                                 net income   = $18497

Answer:

acted with malice or reckless indifference.

Explanation:

Employment discrimination.is one that is as a result of am employer's race, gender, religion, national origin, disability, age, sex, orientation, and gender by an employer.

Under the Civil rights act of 1964 Free-Flo Pipes & Plumbing Corporation will be liable if they acted with malice or reckless indifference.

All employees must be able to express themselves and work freely without being targeted in a wrong way by employers.

Answer:

$500

Explanation:

Annual interest revenue = $10,000 × 10% = $1,000

Interest revenue earned from July 1 to December 31 = $1,000 × (6/12) = $500.

Therefore, amount of interest revenue that the bank should accrue at the end of December is $500.

Answer:

The answer is 9.12%

Explanation:

From the question stated, we calculate for the required return and use it to decide whether you should add the venture capital fund to your portfolio

Now,

For the calculation of  required return

Required return =[(risk free) + (correlation * Volatility venture/Volatility fund) (Expected return - Risk free)]

[ 4.00% + ( 0.20 * 80.00%/ 25.00%) * (12.00% - 4.00%)]

[ 4.00% + (0.20 * 320%) * (8%)]

[4.00% + ( 0.64) * (8%)]

[ 4.00% + 0.0512]

= 0.0912 =9.12

Therefore the required return is = 9.12%

Answer:

b. $340,000

Explanation:

Given

Selling price per unit $ 59

Manufacturing costs:

Variable manufacturing cost per unit produced:

Direct materials $ 11

Direct labor $ 6

Variable manufacturing overhead $ 4

Fixed manufacturing overhead per year $ 88,000

Selling and administrative expenses:

Variable selling and administrative expense per unit sold $ 4

Fixed selling and administrative expense per year $ 80,000

We calculate the Variable Cost of Goods sold by the variable costs allocated to the units sold.For this we deduct the ending inventory costs from the unit produced costs.

Year 1

Units sold during the year 10,000    

Sales Price                              $59

Sales                                  $ 590,000

Units in beginning inventory 0  

Units produced during the year 11,000

Manufacturing Variable Costs per unit  (11+6+4)= $ 21

Variable Manufacturing Costs= $231,000

Less Ending Inventory (1,000 *21)= 21,000

Variable Cost of Goods Sold = $210,000

Add Variable selling and administrative expenses ( 4*10,000)= 40,000

Total Variable Costs = $250,000

Contribution Margin $340,000

Answer:

The correct answer is D. $ 172,000

Explanation:

Variable costing Year 1

Sales (10,000 * $ 59)     (A)                      $ 590,000

Variable manufacturing costs

Direct materials (11,00 * $ 11)                    $ 121,000

Direct labor (11,000 * $ 6)                         $ 66,000

Variable overhead $ 4 (11,000 * $ 4)        $ 44,000

******************************************************************

Cost of goods available for sale  (B)         $ 231,000

Ending inventory (1,000 * $ 21)  (C)            $  21,000

*******************************************************************

Gross contribution margin  (A - B + C)       $ 380,000

Variable selling & admin expense             $   40,000

********************************************************************

Contribution margin                                    $ 340,000    

Less fixed costs

Fixed manufacturing overhead                  $  88,000

Fixed selling and administrative expense $  80,000

***********************************************************************

Net operating income                                 $ 172,000

Answer:

1) Identify a wellness speciality - conventional or a claim to fame wellness focus - and its ROI  

2) The capital required and ROI on different areas accessible  

3) Buy versus Lease on supplies  

4) The opposition investigation in the region  

5) demography of the area  

6) promoting methods that are most appropriate to the area - individual or family focused.  

7) Hiring talented staff, and sources for substitution of staff

Complete Question:

Poodle Company owns 80 percent of the common stock of Sheperd Inc. Poodle acquires some of Sheperds' bonds from an unrelated party for less than the carrying value on Sheperds' books and holds them as a long-term investment. For consolidated reporting purposes, how is the acquisition of Sheperds' bonds treated?  

As a decrease in the Bonds Payable account on Sheperds' books.

As an increase in noncurrent assets.  

Everything related to the bonds is eliminated in the consolidation worksheet, and nothing related to the bonds appears in the consolidated financial statements.  

As a retirement of bonds.

A loss on the constructive retirement of a parent's bonds by a subsidiary is effectively recognized in the individual accounting records of the parent and its subsidiary:  

I. at the date of constructive retirement.

II. over the remaining term of the bonds.

I  

II

Both I and II

Neither I nor II

When one company purchases the debt of an affiliate from an unrelated party, a gain or loss on the constructive retirement of debt is recognized by which of the following?

              Issuing  Affiliate     Purchasing Affiliate     Consolidated  Entity

A.             No                         No                                 Yes

B.             Yes                       Yes                                 No

C.             No                         No                                  No

D.             Yes                        Yes                                Yes

Option A  

Option B  

Option C

Option D  

Which of the following statements is(are) correct?

I. The amount assigned to the noncontrolling interest may be affected by a constructive retirement of bonds.

II. A constructive retirement of bonds normally results in an extraordinary gain or loss.

III. In constructive retirement, the entity would still consider the bonds outstanding, even though they are treated as if they were retired in preparing consolidated financial statements.

I  

II

I and III

I, II, and III

Answer:

1. For consolidated reporting purposes, Company M's bonds will be treated as a retirement of bonds.

2. For consolidated reporting purposes, everything related to the intercompany bonds is eliminated in the consolidation worksheet, and nothing related to the bonds appears in the consolidated financial statements.

3. A loss on the constructive retirement of a parent's bonds by a subsidiary is effectively recognized in the individual accounting records of the parent and its subsidiary:

I. at the date of constructive retirement.

II. over the remaining term of the bonds.

Both I and II

4. When one company purchases the debt of an affiliate from an unrelated party, a gain or loss on the constructive retirement of debt is recognized by

Option A

5. The incorrect statement is:

I. The amount assigned to the noncontrolling interest may be affected by a constructive retirement of bonds.

Final answer:

For consolidated reporting, Poodle Company's acquisition of Shepherd Inc.'s bonds at less than carrying value is treated by eliminating the investment and corresponding liability from the consolidated balance sheet, and any related gain is also eliminated.

Explanation:

When Poodle Company, which owns 80 percent of Shepherd Inc.'s common stock, acquires some of Shepherd's bonds for less than the carrying value and holds them as a long-term investment, the acquisition of these bonds is accounted for in consolidated financial statements. Consolidation requires elimination of intercompany balances and transactions because they are internal to the corporate group. Hence, this intra-group bond acquisition would involve eliminating the investment in the bonds from the assets of Poodle Company and the corresponding liability from the balance sheet of Shepherd Inc., to the extent of the ownership percentage. This adjustment ensures that the consolidated financial statements only reflect external transactions and balances. Any gain from purchasing the bonds below their carrying value will be eliminated in the consolidated financial statements, as the gain is considered unrealized from the perspective of the corporate group.

Answer and Explanation:

The journal entries are as follows

a. Cash A/c Dr $107,100         (5,100 shares × $21)

    To Common Stock $10,200         (5,100 shares × $2)

    To  Additional Paid-in Capital in excess of par - Common Stock $96,900

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)

b.  Cash A/c Dr $26,400         (1,100 shares × $24)

    To Common Stock $2,200        (1,100 shares × $2)

    To  Additional Paid-in Capital in excess of par - Common Stock $24,200

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)

It increased the both cash and common stock stock and the additional paid in capital account as well

Answer:

A

Explanation:

Remember, a marketing manager has limited functions. The best things to include in the report is the pros, cons and cost of the noise reduction headphones.

The pros should highlight how it increases the writers customers service delivery which goes a long way to increase the marketing success of the firm.

Also, the cost as it pertains to the overall marketing cost the company should be mentioned, while also including the cons if any.

Answer:

Explanation:

December 31, 2018 Amount. Interest Rate Total Interest expense $944,646 x 5.0% = $47,232.3 Cash. $870,000 x 5.5% = $47,850 of premium on bonds $618

June 30, 2019AmountInterest Rate

Total Interest expense $944,646 x 5.0% = $47,232.3

Cash$870,000 x 5.5% = $47,850

of premium on bonds $ 464 No Date General Journal Debit Credit 1 June 30, 2018 Cash 944,646 Bonds payable 870,000 Premium on bonds payable 74,646 December 31,2018 Interest expense 47,232.3 Premium on bonds payable 618 Cash 47,850 June 30, 2019 Interest expense 47,232.2 Premium on bonds payable 618 Cash 47,850 Record the issuance of the bond on June 30, 2018.Record the interest on December 31, 2018 (at the effective rate). Record the interest on June 30, 2019 (at the effective rate). Explanation 2. December 31, 2018 Interest expense (5% × $944,646) = $47,232.3 Cash (5.5% × $870,000) = $47,850 3.June 30, 2019Interest expense (5% × [$944,646 – $618]) = $47,201.4

Cash (5.5% × $870,000) = $47,850

Debit Income Tax Expense $102,000 (calculated as $78,000 + $24,000, the deferred tax liability increase). Credit Deferred Tax Liability $12,000 and Income Tax Payable $90,000 (computed as $260,000 × 30%).

Given:

Pretax accounting income = $300,000

Taxable income = $260,000

Tax rate = 30%

The temporary difference is $40,000 ($300,000 - $260,000).

As there were no temporary differences at the beginning of the year, the entire $40,000 difference is attributable to temporary differences.

Since temporary differences will reverse in the future, we calculate the deferred tax liability:

Deferred Tax Liability = Temporary Difference × Tax Rate

Deferred Tax Liability = $40,000 × 30% = $12,000

Now, let's prepare the compound journal entry to record income taxes:

| Account                       | Debit       | Credit      |

| Income Tax Expense (P&L)      | $78,000     |             |

| Deferred Tax Liability (BS)   |             | $12,000     |

| Income Tax Payable (BS)       |             | $90,000     |

Explanation:

Income Tax Expense is calculated as the sum of taxes payable ($90,000) and the increase in the deferred tax liability ($12,000), totaling $102,000 ($90,000 + $12,000).

Deferred Tax Liability increases by $12,000 due to the temporary differences that will lead to higher taxable income in the future.

Income Tax Payable represents the actual tax liability to be paid, calculated as the taxable income ($260,000) multiplied by the tax rate of 30%, which equals $78,000.

This journal entry reflects the tax provision, recognizing both the current tax expense and the change in the deferred tax liability on the balance sheet.

complete the question

ABC Corp. has reported pretax accounting income of $300,000 for the year. Due to certain temporary differences, the taxable income amounts to $260,000. At the beginning of the year, no temporary differences existed. ABC Corp. is subject to a tax rate of 30%.

Question:

Prepare the compound journal entry to record ABC Corp.'s income taxes based on the given information. Include the necessary calculations for deferred tax liability or asset if applicable. If no entry is required, indicate "No journal entry required."

Answer:

Step 1

a) The exchange rate is $2.80=3.70 pounds. Divide both sides by 2.8

$1= 1.32 pounds

STEP 2

b) The exchange rate is $3.10=4.65 pounds. Divide both sides by 3.1

$1=1.5 pounds

STEP 3

(S₁-S₂/S₂)  * 100 = i(s) - i(w)

S1 is the original exchange rate or 1.32 pounds per dollar. S2 is the end exchange rate or 1.5. i$ is listed as 10%, solve for iW.

[(1.32-1.5)/1.5] * 100 = 10 - i(w)

22%

Answer:

The entry to record is Debit Warranty Expense $17,900 and credit Estimated Warranty Liability $17,900

                                         Debit                     Credit

Warranty expense  $17,900  

                         Warranty payable  $17,900

Explanation:

In order to prepare the entry to record, first we would have to calculate how much would be the warranty expense for the month, this would be calculated as follows according to the given data:

warranty expense=$358,000×5%=$17,900

Therefore, the entry to record is the following:

Debit Warranty Expense $17,900 and credit Estimated Warranty Liability $17,900

                                         Debit                     Credit

Warranty expense  $17,900  

                         Warranty payable  $17,900

Answer:

$538,325

Explanation:

The computation is shown below:

Cash flow from Operating activities - Indirect method

Net income $563,160

Add : Depreciation expense $43,320

Add: Amortization expenses - Patents 5,415

Less: Gain on sale of equipment -$7,220

Less: Increase in account receivable - $15,100

Less: Decrease in account payable -$102,75

Less: Increase in inventory -$37,925

Less: Decrease in salaries payable -$3,050

Net Cash flow from Operating activities $538,325

The negative amount shows the cash outflow while the positive amount shows the cash inflow

Answer:

C) $ 80,000 $ 70,000

Explanation:

R = ($48,000/$120,000) x $200,000

=0.4×$200,000

= $80,000

S = $200,000-$50,000-$80,000

= $70,000

Therefore the sales value at split-off for products R is $80,000 and S $70,000

Answer:

Interest Expense $39,600

Cash Flow from Operating Activities $39,600

Explanation:

Payment of Interest Expense is the cash expense paid during the year which is deducted from the operating profit in the calculation of net income which is used to determine the cash flow from operating activities.

Interest on the Bond = $660,000 x 6% = $39,600

At the time of payment Journal Entry will be as follow

Dr. Interest Expense   $39,600

Cr. Cash                       $39,600

As the cash is paid against the operating activities.

Answer:

Buildings = $630,000

Land = $270,000

Explanation:

When a lump purchase price is given on buildings and land, the costs of Building and Land must be determined separately using fair values.

This is because Depreciation on Land and Building is different.

Buildings

Cost = (450,000+250,000)/ 1000,000 × $900,000

        = $630,000

Land

Cost = (300,000)/ 1000,000 × $900,000

        = $270,000

Answer:

For ACME Corporation = 1.12 times

For Wayne Enterprises = 1.29 times

Explanation:

The computation of current ratio is shown below:-

For ACME Corporation

Current Ratio = Total Current Assets ÷ Current Liabilities

= $12,767 ÷ $11,299

= 1.12 times

For Wayne Enterprises

Current Ratio = Total Current Assets ÷ Current Liabilities

= $9,538 ÷ $7,410

= 1.29 times

Here, we assume first figure for ACME Corporation and second figure for Wayne Enterprises

Answer:

The payback period for even cash flow is 4 years

The payback period for uneven cash flows is 5 years

Explanation:

The payback period is a term used in capital budgeting and is one of the ways of assessing a project. It calculates the time required to recover the total cost invested in the project initially.

Payback period for Even cash flows

Payback period = Number of years till last period + Unrecovered cost at the beginning of the last period for payback / Total cash flows during the last period

The last period here refers to the period in which the cost will be recovered.

The initial cost is $1200000

Recovery till last year of payback = 300000 + 300000 + 300000 = $900000

Payback period = 3 + 300000 / 300000   = 4 years

Payback under uneven cash flows

Initial cost = $1200000

Recovery till last year of payback = 150000 + 150000 + 400000 +400000 = 1100000

Payback period = 4 + 100000 / 100000  =  5 years

Answer to Question 1: What does this tell us about people?

The experiment shows us that people always associate higher prices with higher quality. But this is not always the case.

According to a research in 2008 by Goldstein and his team it was established that people do not derive more satisfaction or utility from more expensive wine when they don’t know much the wine cost.

In a more recent but similar study,  results showed that there is a clear correlation between price and perceived value.

When participants were told that a wine had a high price, participants gave that wine higher ratings.

So in summary:

Answer to Question 2: Can you think of other areas where that may be the case?

A similar research was carried out by Dan Ariely.

This scenario was tested on drugs and how people reported to have felt when they were given an information about the drug they are taking.

It was discovered that students who paid more for cold medicine said they felt better than students who purchased the same medicine at a discounted price.

Answer to Question 3: What does this suggest about pricing?

Pricing goes beyond numbers. Its all about how clients perceive your product in relation to the problem they are trying to solve or the pain point, or pleasure point they are trying to satisfy.

Cheers!

To calculate cash sales during 2020, subtract the change in accounts receivable from the revenue.

To calculate cash sales during 2020, we need to consider the change in the Accounts Receivable balance. Cash sales are the portion of revenue that is collected in cash rather than through accounts receivable. We can calculate cash sales by subtracting the change in accounts receivable from the revenue.

Change in Accounts Receivable = Ending Accounts Receivable - Beginning Accounts Receivable
Change in Accounts Receivable = $123.5 million - $95.4 million = $28.1 million

Cash Sales = Revenue - Change in Accounts Receivable
Cash Sales = $121.5 million - $28.1 million = $93.4 million

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To record the payment of the notes payable at maturity, you would need to make journal entries that debit Notes Payable and credit Cash for the principal amount, and debit Interest Expense and credit Interest Payable for the interest payment.

To record the payment of the notes payable at maturity, you would need to make the following journal entries:

These entries reflect the payment of the loan principal and the interest.

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Answer:

1) Key Performance Indicators (KPIs)

2) Covers per hour

Explanation:

Critical success factors (CSFs) are fundamental requirements for competitive success. They represent what a business must excel at to make it very competitive and successful.

For example, customer satisfaction, quality product, employee satisfaction, productivity

Key Performance Indicators (KPI) are metrics  which are used to measure whether or a business is achieving its CSFs

For example, a measure (KPI) of employee productivity would be amount of covers achieved per hour of labour

Answer:

The initial outlay associated with the project is $607,000

Explanation:

According to the given data we have the following:

Cost of new equipment= $650,000

delivery and installation costs=$5,000

investment in net working capital at the time of installation=$10,000

employee training program=$8,000

The firm's marginal tax rate is 34%, hence, the after tax sale value of old machine=-$100,000×(1-0.34)=-$66,000

Therefore, the initial outlay associated with the project= $650,000+$5,000+$10,000+$8,000-$66,000=$607,000