Answer:
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Explanation:
Investment banks are guilty of conflict of interest when they A) pressure their analysts to produce research favorable to their client firms. B) permit executives of client firms to alter analysts' research on their firms. C) prohibit analysts from making negative or controversial comments about client firms. D) all of the above.
Answer:
The correct answer here is option D.
Explanation:
Investment banks are special kind of financial institutions or intermediaries who are concerned with raising capital for other companies.
They also perform advisory based transaction services on the behalf of corporations, individuals and government.
In performing these functions, they often are found guilty of pressurizing analysts to produce favorable research for their clients, attempts to alter research of client's firm and permitting executives of client's firm to do so. They also get involved in prohibiting analysts from making any negative or controversial comments about client they are serving.
They do all these to maintain credit worthiness of their client firm, so that the client is able to procure capital.
When a union raises the wage above the equilibrium level, a. the quantity of labor supplied falls and unemployment rises. b. both the quantity of labor supplied and unemployment rise. c. both the quantity of labor supplied and unemployment fall. d. the quantity of labor supplied rises and unemployment falls.
Answer:
b. both the quantity of labor supplied and unemployment rise
Explanation:
The labor market operates under the logic of balancing labor supply and labor demand. The adjustment vector for this balance is the price of wages. When a union of unions forces wages up, naturally more workers will offer work because they see an opportunity that benefits them. However, the higher salary is a cost to firms, which have hired fewer employees and eventually fired. Therefore, both labor supply and unemployment increase.
Sarah's Machinery Company is deciding to dump its current technology A for a new technology B with smaller fixed costs but bigger MCs. The current technology has fixed costs of $500 and MCs of $50 whereas the new technology has fixed costs of $250 and marginal costs of $100. At what quantity is Sarah's Machinery Company indifferent between two technologies?
Answer:
The quantity that Sarah's Machinery Company is indifferent between two technologies is 5.
Explanation:
We are looking for the quantity that Sarah's Machinery Company is indifferent between two technologies, so we have to find the quantity that the total cost with technology A is the same to the total cost with technology B
Total cost technology A=500+50x
Total cost technology B=250+100x
500+50x=250+100x
500-250=100x-50x
250=50x
x=250/50=5
Sarah's Machinery Company would be indifferent between the two technologies at a production quantity of 5 units. This is determined by setting the total costs of the two technologies equal to each other and solving for the quantity.
Explanation:The question refers to a decision Sarah's Machinery Company has to make considering the fixed costs and marginal costs (MCs) of two different technologies. To find the quantity where the company is indifferent between the two technologies, we must establish an equation that equalizes the total cost (fixed costs + MCs) for each technology.
For technology A, the total cost is $500 + $50 per quantity(Q). For technology B, it is $250 + $100 per quantity (Q). We then set these two equations equal to each other to find the indifference point.
500 + 50Q = 250 + 100Q
To solve for Q, we first isolate the terms with Q by subtracting 50Q from both sides of the equation which gives us 250 = 50Q. Then we divide both sides by 50 to solve for Q.
Therefore Q = 5.
So, Sarah's Machinery Company would be indifferent between the two technologies at a production quantity of 5 units.
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Total costs for Locke & Company at 140 comma 000 units are $ 289 comma 000, while total fixed costs are $ 195 comma 000. The total variable costs at a level of 260 comma 000 units would be (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.)
Answer: Total variable costs at a level of 260,000 units would be $1,74,460.
Explanation:
Total cost at 140,000 units = $249,000 and
Fixed cost = $195,000
Number of units = 140,000
∴ Total variable cost at 140,000 = Total cost - Total fixed cost
= 249000 - 195000
= $94000
Variable cost per unit = [tex]\frac{Total\ variable\ cost}{Number\ of\ units}[/tex]
= [tex]\frac{94000}{140000}[/tex]
= $0.671 per unit
Hence,
Total variable costs at a level of 260,000 units would be = Variable cost per unit × Number of units
= 0.671 × 260,000
= $1,74,460
Final answer:
To find the total variable costs at 260,000 units, subtract fixed costs from total costs at 140,000 units to determine total variable costs at this level, and then calculate variable cost per unit. Next, multiply the cost per unit by 260,000 units to get the total variable costs at the new production level.
Explanation:
The question asks for the calculation of total variable costs at a different level of production, using given information about totals at another production level. In order to find the total variable costs at 260,000 units, we first need to find the variable cost per unit by subtracting total fixed costs from total costs at 140,000 units, and then dividing the remaining variable costs by the number of units.
Variable Costs Calculation:
Subtract total fixed costs from total costs to find total variable costs at 140,000 units: $289,000 - $195,000 = $94,000.
Calculate variable cost per unit: $94,000 / 140,000 units = $0.67 per unit.
Multiply the variable cost per unit by the new production level to get total variable costs for 260,000 units: $0.67 * 260,000 units = $174,200 (rounded to the nearest dollar).
Therefore, the total variable costs at a production level of 260,000 units would be $174,200.
Pinacle Corp. budgeted $700,000 of overhead cost for the current year. Actual overhead costs for the year were $650,000. Pinacle's plantwide allocation base, machine hours, was budgeted at 100,000 hours. Actual machine hours were 80,000. A total of 100,000 units was budgeted to be produced and 98,000 units were actually produced. Pinacle's plantwide factory overhead rate for the current year is: a. $6.50 per machine hour b. $8.13 per machine hour c. $7.00 per machine hour d. $8.75 per machine hour
Answer: Plantwide factory overhead rate for the current year is $7.00 per machine hour.
Explanation:
Given that,
Budgeted overhead cost for the current year = $700,000
Actual overhead costs for the year = $650,000
Budgeted machine hours = 100,000 hours
Actual machine hours = 80,000 hours
Total units budgeted to be produced = 100,000 units
Total units actually produced = 98,000 units
Plantwide factory overhead rate for the current year is:
= [tex]\frac{Budgeted\ Overhead\ Cost\ in\ current\ year}{Budgeted\ machine\ hours}[/tex]
= [tex]\frac{700000}{100000}[/tex]
= $7.00 per machine hour
Final answer:
Pinacle Corp.'s plantwide factory overhead rate for the current year is calculated by dividing the budgeted overhead costs ($700,000) by the budgeted machine hours (100,000 hours), which results in a rate of $7.00 per machine hour. The correct option is c.
Explanation:
To calculate Pinacle Corp.'s plantwide factory overhead rate for the current year, we use the budgeted overhead costs and the budgeted machine hours. The overhead rate is computed by dividing the total budgeted overhead costs by the total budgeted machine hours.
The calculation is as follows:
Total budgeted overhead costs: $700,000.
Total budgeted machine hours: 100,000 hours.
Plantwide factory overhead rate: $700,000 / 100,000 hours = $7.00 per machine hour.
Therefore, the correct answer to the question is c. $7.00 per machine hour.
Scott Incorporated has been in business for several months. Because of increased competition in the region for part adapters, the managers at Scott Incorporated is considering cutting sales price from $ 27 per adapter to $ 24 per adapter. New sales price per poster $ 24 Variable price per adapter $ 17 New contribution margin per adapter $ 7 If the variable expenses remain at $ 17 per adapter and the fixed expenses remain at $ 6,000, how many adapters will the managers need to sell to break even? Compute the breakeven sales in units.
Answer:
Break even units = 858 adapters.
Explanation:
Revised selling price = $24 per adapter
Variable cost = $17 per adapter
Contribution per adapter = $24 - $17 = $7
Provided fixed cost = $6,000
Break even point in units = [tex]\frac{Fixed Cost}{Contribution per unit}[/tex]
= $6,000/$7 = 857.14
Since the unit cannot be rounded off downwards, we have
Final Answer
Break even units = 858 adapters.
Someone who relies on his or her ability to show empathy and express his or her emotions to win his or her employees' trust and build cohesion is a good example of a _______ leader
Answer:
Here the correct answer is empathetic leader.
Explanation:
Empathy can be best described as recognizing other people's needs and wants and also understanding their perspective and feelings.
It is often said that a leader should be empathetic because how would a leader be able to motivate his or her employees if doesn't know about them or their feelings. It is very important for an leader to be empathetic so that he or she is able to gain the trust of his employees .
On June 30, 2018, L. N. Bean issued $10 million of its 8% bonds for $9 million. The bonds were priced to yield 10%. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, how much bond interest expense should the company report for the 6 months ended December 31, 2018?
Answer:
interest expense 450,000
Explanation:
The interest expense will be the carrrying value times the market rate
face value 10,000,000
issued at 9,000,000
discount 1,000,000
face - discount = carrying value = 10 - 1 = 9 millions
9,000,000 x 10%/2 = 450,000 interest expense
then face value x bond rate = cash proceeds
10,000,000 x 8%/2 = 400,000 cash proceeds
the diference wil lbe the amortization
amortization 450,000 - 400,000 = 50,000
interest expense 450,000
cash 400,000
discount on BP 50,000
next period the carrying value will be
10,000,000 - 950,000 = 9,050,000
The bond interest expense for L. N. Bean for the 6 months ended December 31, 2018, using the effective interest method, is calculated as 10% of the issue price ($9 million) for half a year, resulting in an expense of $450,000.
The question asks how to calculate the bond interest expense using the effective interest method for L. N. Bean's bonds for the 6 months ended December 31, 2018. As the bonds were issued at a discount (issued for $9 million but with a face value of $10 million), the effective interest rate of 10% must be used for the calculation.
To calculate the bond interest expense, we first find the interest for the 6-month period by taking 10% (annual yield) of the issue price ($9 million) for half a year. This is calculated as:
Interest expense for 6 months: ($9,000,000 x 10%) / 2 = $450,000.This interest expense represents the amount that will be reported by the company for the period.
All of the following are advantages of using the average rate of return method except ________. a. it is easy to compute b. it includes the entire amount of income earned over the life of the proposal c. it emphasizes accounting income, which is often used by investors and creditors in evaluating management performance d. it directly considers the expected cash flows from the proposal
Answer:
C. it emphasizes accounting income, which is often used by investors and creditors in evaluating management performance
Explanation:
All of the following are advantages of using the average rate of return method except it emphasizes accounting income, which is often used by investors and creditors in evaluating management performance.
The average rate of return method does not directly consider the expected cash flows from the proposal; it focuses on accounting income.
Explanation:The correct answer is d. it directly considers the expected cash flows from the proposal. This is because the average rate of return method primarily focuses on accounting net income rather than cash flows. The actual rate of return, on the other hand, signifies the total rate of return, including capital gains and interest paid on an investment at the end of a time period.
The advantages of using the average rate of return method include its simplicity in computation (a. it is easy to compute), the fact that it takes into account the entire amount of income earned over the life of the proposal (b. it includes the entire amount of income earned over the life of the proposal), and its emphasis on accounting income, which stakeholders often rely on when evaluating management performance (c. it emphasizes accounting income, which is often used by investors and creditors in evaluating management performance).
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Which of the following causes the unemployment rate to understate the true extent of joblessness?A) Many fulltime workers really want to be part time workers.B) Persons who collect unemployment benefits report themselves to be searching for a job.C) Discouraged workers are not counted as unemployed.D) A drug dealer reports herself as unemployed.E) Discouraged workers are counted as unemployed.
Answer:
E) Discouraged workers are counted as unemployed
Unemployment is the nonworking people who are abv the age of 15 and are not being employed or contributing something to the economy of the country.
The workers that are not given jobs or are disapproved of jobs are ones that face unemployment. This could be due to the competition, newer technology, market regulation, etc. The labor force activity is seeing employment but is unable to find one. Is the rue sense of unemployment. Hence the option E is correct.Learn more about the causes of the unemployment rate to.
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Consumers in Louisiana love hot sauce, and Tabasco and Crystal brands are particularly popular there. Consumers in Michigan do not like hot food, so they purchase very little hot sauce. A national chain of grocery stores would likely use __segmentation when stocking condiment merchandise
Answer:
Consumers in Louisiana love hot sauce, and Tabasco and Crystal brands are particularly popular there. Consumers in Michigan do not like hot food, so they purchase very little hot sauce. A national chain of grocery stores would likely use geographic segmentation when stocking condiment merchandise
Explanation:
Geographic sementation is when a business divides its market considering geography.
A store has clearance items that have been marked down by 20%. They are having a sale, advertising an additional 30% off clearance items. What percent of the original price do you end up paying?
Answer: the correct answer is 56% of the original price.
Explanation: Let's say the original price is 100 - (0.20*100) = 80. the price is now 80 with the discount. The new discount is now 80- (0.30*80) =80-24 = 56. If 100 is 100%. How much is 56 of 100 in terms of percentage and the answer is 56%.
The UCC's entrustment rule a. allows a person who has no legal right to possession of particular goods (i.e., a thief) to sell them to a good faith purchaser. b. allows a person who has been entrusted with goods to sell those goods to anyone who is doing business in the seller's store as long as the seller normally sells good of that kind (i.e., bicycle store selling a bicycle). c. illustrates the UCC's objective of protecting a good faith purchaser. d. All the above answers are correct.
Answer: The UCC's entrustment rule allows a person who has been entrusted with goods to sell those goods to anyone who is doing business in the seller's store as long as the seller normally sells good of that kind (i.e., bicycle store selling a bicycle).
Under this rule, an proprietor who confide goods to a “merchant” i.e. someone who trades in that particular commodity of that type or holds himself as having cognition or ability in context to the practices or commodity involved in the dealing.
The UCC's entrustment rule allows goods to be sold by both unauthorized individuals and individuals who have been entrusted with the goods. This protects the rights of good faith purchasers and ensures that they can acquire lawful ownership of goods.
Explanation:The correct answer is d. All the above answers are correct.
The UCC's entrustment rule allows a person who has no legal right to possession of particular goods (i.e., a thief) to sell them to a good faith purchaser. It also allows a person who has been entrusted with goods to sell those goods to anyone who is doing business in the seller's store as long as the seller normally sells goods of that kind. This rule illustrates the UCC's objective of protecting a good faith purchaser by ensuring that they can acquire lawful ownership of goods that were improperly obtained.
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Much of macroeconomics attempts to explain a. changes in the growth rate of state government spending. b. changes in the prices and quantities of individual goods and services. c. long-run growth and short-run fluctuations in real GDP. d. changes in the price of oil and gasoline.
Answer:
C) long-run growth and short-run fluctuations in real GDP
Explanation:
Macroeconomics is a strand of economic science that discusses large economic aggregates, such as income, inflation, and employment variations. It is an approach that aims to discuss these factors and bring about improvements through economic policies. The concerns of the macroeconomy are mainly to maintain a stabilized economic system, with sustainable growth of GDP, income and social and economic indicators.
Laramie produces two products: Basic and Deluxe. The plant’s overhead for January was $45,000 and the plant used 600 direct labor (DL) hours. The factory has two departments: Preparation and Processing. The Preparation Department incurred $25,000 of overhead and used 400 DL hours. In the Processing Department, $20,000 of manufacturing overhead was incurred and 160 DL hours were used. During January, 300 DL hours were used by the Basic model and 300 DL hours were used by the Deluxe model to make 100 units of each. What is Laramie departmental overhead rates based on DL hours (DLH)?
Final answer:
Laramie's departmental overhead rates are calculated based on the manufacturing overhead and direct labor hours by department, resulting in $62.50 per DLH for the Preparation Department and $125.00 per DLH for the Processing Department.
Explanation:
To calculate the departmental overhead rates based on direct labor hours (DLH) for Laramie's departments, we begin by understanding that total manufacturing overhead costs are distributed across the Preparation and Processing Departments. The total overhead for the plant for January is given as $45,000, divided between the Preparation Department ($25,000) and the Processing Department ($20,000). The total direct labor hours used in the Preparation Department are 400 DL hours, and in the Processing Department, 160 DL hours are used.
Departmental overhead rates are calculated by dividing the total overhead for each department by the total direct labor hours used in that department. Therefore, the calculation is as follows:
Preparation Department Overhead Rate: $25,000 / 400 DLH = $62.50 per DLHProcessing Department Overhead Rate: $20,000 / 160 DLH = $125.00 per DLHThis means that for every direct labor hour used in the Preparation Department, $62.50 is allocated for overhead, and for every direct labor hour used in the Processing Department, $125.00 is allocated for overhead.
What is generally true concerning family income and happiness? a. There is a huge difference in happiness between those who have family incomes of $70,000 and those who make more than $100,000 a year. b. As average income rose from 1955 to 1995, the number of very happy people rose sharply. c. Money cannot buy us as much happiness as our culture has led us to believe. d. People with family incomes of more than $200,000 are unhappier than those who make less than $20,000.
Answer:
C. Money cannot buy us as much happiness as our culture has led us to believe.
Explanation:
Money cannot buy us as much happiness as our culture has led us to believe is generally true concerning family income and happiness.
Most celebrities are saying that they are happy because of their money.
However, money can't buy happiness.
What is the oldest retailer still operating in the u.S.?
Answer:
Brook brothers is the oldest that is still doing business today
First store was open in 1818
The consumer price index is used to a. monitor changes in the stock market. b. monitor changes in the level of real GDP over time. c. monitor changes in the level of wholesale prices in the economy. d. monitor changes in the cost of living over time.
Answer:
c. monitor changes in the level of wholesale prices in the economy.
Explanation:
The consumer price index is a measure of the variation in the price of products and services offered to consumers in the US market. This is an index that serves to measure inflation or deflation. Through the price index, the Federal Reserve monetary authorities make decisions to warm or slow economic activity.
Which of the following is the most likely explanation for the imposition of a price ceiling on the market for milk? a. Policymakers have studied the effects of the price ceiling carefully, and they recognize that the price ceiling is advantageous for society as a whole. b. Buyers of milk, recognizing that the price ceiling is good for them, have pressured policymakers into imposing the price ceiling. c. Sellers of milk, recognizing that the price ceiling is good for them, have pressured policymakers into imposing the price ceiling. d. Buyers and sellers of milk have agreed that the price ceiling is good for both of them and have therefore pressured policymakers into imposing the price ceiling.
Answer: i think the third one maybe... (APEX)
Explanation: this should work
Under the doctrine of merger, the contract merges into the deed, and the terms of the contract are meaningless. Even though the contract specified a “good and marketable title,” it is the deed that controls, and the deed contained no covenants of title. A deed does not incorporate the title terms of a contract
Answer: the doctrine of merger is specified the way in which was enunciated in the question.
Explanation: there is no question here but the doctrine of merger is exactly enunciated in the question:
Under the doctrine of merger, the contract merges into the deed, and the terms of the contract are meaningless. Even though the contract specified a “good and marketable title,” it is the deed that controls, and the deed contained no covenants of title. A deed does not incorporate the title terms of a contract.
If domestic residents of France purchase 1.2 trillion euros of foreign assets and foreigners purchase 1.5 trillion euros of French assets, then France’s net capital outflow is
a. .3 trillion euros, so it must have a trade deficit.
b. .3 trillion euros, so it must have a trade surplus.
c. -.3 trillion euros, so it must have a trade surplus.
d. -.3 trillion euros, so it must have a trade deficit.
Answer:
b. .3 trillion euros, so it must have a trade surplus.
Explanation:
In order to have a trade surplus your exports must be greater than your imports. In this case imports were valued at 1.2 trillion euros and exports were valued at 1.5 trillion euros. As we can evidently see the exports are bigger than imports this is therefore a trade surplus and a surplus is always positive.
Which of the following statements regarding sales organization structure is false? Developing a sales organization structure is typically more difficult than implementing a change in sales organization structure Sales organization structures are the vehicle through which strategic plans are translated into selling operations in the marketplace. Sales organization structures can be extremely complex with many boxes and arrows Strategic changes almost always necessitate adjustments in sales organization structure. The sales organization structure helps salespeople and sales managers perform required activities in an effective and efficient manner.
Answer:
Developing a sales organization structure is typically more difficult than implementing a change in sales organization structure.
Final answer:
The false statement regarding sales organization structure is that developing a structure is typically more difficult than changing one. While development requires in-depth planning and analysis, changes often tweak existing structures, which may be a more straightforward process.
Explanation:
The statement that is false regarding sales organization structure is: Developing a sales organization structure is typically more difficult than implementing a change in sales organization structure. This is because developing a completely new structure requires thorough analysis and understanding of the business's goals, the marketplace, and the roles needed to execute the company's strategy. On the other hand, implementing a change, although still challenging, often involves modifying an existing structure which is a more straightforward process.
Sales organization structures serve as a system through which strategic plans are executed in the marketplace. Such structures can be complex, and they typically facilitate the performance of salespeople and managers. Strategic changes in a business necessitate adjustments in sales organization structure to ensure that the structure remains aligned with the strategic objectives of the company.
Businesses, large and small, select an organizational structure that suits their needs. Some may opt for a hierarchical structure, while others may prefer flatter arrangements that focus on teamwork and collaboration. These structures need to adapt and evolve in response to shifts in the business environment, and the move towards team-based structures exemplifies this adaptability.
In the early 2000s, the Mattel Company was faced with a major problem with some of its toys due to faulty magnets and high levels of lead-based paint. When the company realized it was facing a serious problem, it immediately involved federal agencies on product safety, recalled millions of toys from the shelves, and launched a massive campaign to inform consumers about the recall. In addition, the company set up a crisis link on its webpage and posted updates regularly. Mattel's actions can be classified as _________.
Answer:
The answer is crisis management.
Explanation:
Crisis management is defined as a way to manage unexpected events that may impact an organization negatively. It is part of a public relations management role, since often times these negatively impacting events occur in a public setting. There are two broad types of crises, sudden – which happen without any notice; and smoldering – where it initially begins as a small-scale issue that suddenly have a bigger impact.
Producer surplus: A. is the difference between the maximum amount a person is willing to pay for a good and its current market price. B. is the difference between the true value of a product and the amount the firm wants to receive. C. represents the minimum amount a firm must receive for a particular product in order to be able to produce the product . D. is the difference between the current market price and the cost of production for the firm.
Answer:
B. is the difference between the true value of a product and the amount the firm wants to receive.
Explanation:
Producer surplus refers to the surplus received by a producer, that is the amount in which the producer will sell the goods less the amount the actually received on sale of the product.
In the given statement true value will be the market value the product will fetch and the value the firm expects is the value expected by producer therefore, above statement is best suitable to define producer surplus.
B. is the difference between the true value of a product and the amount the firm wants to receive.
A nut store normally sells cashews for $4.00 per pound and peanuts for $1.50 per pound. But at the end of the month the peanuts had not sold well, so, in order to sell 40 pounds of peanuts, the manager decided to mix the 40 pounds of peanuts with some cashews and sell the mixture for $ 2.00 per pound. How many pounds of cashews should be mixed with the peanuts to ensure no change in the revenue?
Final answer:
The manager needs to mix 10 pounds of cashews with the 40 pounds of peanuts to ensure no change in revenue when the nuts are sold for $2.00 per pound.
Explanation:
To ensure there is no change in revenue when mixing cashews, which normally sell for $4.00 per pound, with peanuts that sell for $1.50 per pound, and selling the mixture for $2.00 per pound, we must calculate the required amount of cashews to add to 40 pounds of peanuts. We can set up an equation where the total revenue of the nuts before mixing must equal the total revenue after mixing. This can be represented by:
(Cashews weight) × (Cashews price) + (Peanuts weight) × (Peanuts price) = (Total weight after mixing) × (Mixture price)
Let's denote the weight of cashews to be mixed as x. The equation based on the provided prices would then be:
(x pounds of cashews × $4.00) + (40 pounds of peanuts × $1.50)= (x + 40 pounds) × $2.00
Solving this equation for x gives us:
(4x + 60) = 2x + 80
Simplifying further, we get:
2x = 20
Dividing both sides by 2, we find that x = 10.
Therefore, the manager needs to mix 10 pounds of cashews with the 40 pounds of peanuts to ensure that the revenue remains unchanged.
While shopping at the mall, Jane was asked by one of the sales representatives at the cosmetics counter to try out a new lipstick that her company was test marketing. The company representative asks her how much she would be willing to pay for the lipstick. After trying it out, Jane is of the opinion that $5 is just the right price for it. What type of a reference price is Jane using?
A. Usual discounted priceB. Fair priceC. Maximum retail priceD. Last price paidE. Historical competitor price
Answer: Fair price is the type of a reference price that Jane is using.
Here, Jane is of the opinion and how she pursues the price of the commodity in the market .i.e. fair price is the quantity of money that it you pursue to be sensible for a commodity.
Tulip Co. owns 100% of Daisy Co.'s outstanding common stock. Tulip's cost of goods sold for the year totals $600,000 and Daisy's cost of goods sold totals $400,000. During the year, Tulip sold inventory costing $60,000 to Daisy for $100,000. By the end of the year, all transferred inventory was sold to third parties. What amount should be reported as cost of goods sold in the consolidated statement of income?
Answer:
Amount to be reported as cost of goods sold in the consolidated financial statement = $900,000
Explanation:
When a company holds 100% shares or more than 50% shares of another company that is common stock, they establish a holding subsidiary relationship in which equity method is to be followed.
As per equity method all the cost of goods sold by that of subsidiary is to be added to financial statements of holding while making consolidated financial statements.
In this if there are any sales or purchase between holding and subsidiary then such profit is not be added up till that inventory is further sold to third party.
In case the inventory is sold to third party then entire profit that is inclusive of holding to subsidiary is to be included as part of consolidated financial statements.
Therefore in the above case since Daisy has sold the inventory purchased from Tulip, entire cost of goods sold shall form part of consolidated financial statements.
Here amount to be reported as cost of goods sold in the consolidated financial statement = $600,000 + $400,000 = $1,000,000
Further the cost of goods sold is included 2 times, first in Tulip's account for $60,000 and then the same in Daisy's account for $100,000. In consolidated statement double amount should not be added, thus net cost of goods sold = $1,000,000 - $100,000 = $900,000
The consolidated cost of goods sold in the statement of income for Tulip Co. and Daisy Co. should be reported as $940,000, which is the sum of both companies' costs less the cost of inventory Tulip sold to Daisy to eliminate the intercompany markup.
Tulip's cost of goods sold is $600,000, and Daisy's is $400,000. However, since Tulip sold inventory to Daisy with a markup, the $60,000 originally costing the inventory must be removed from the consolidated total, to eliminate the effect of the intercompany profit.
Thus, we calculate the consolidated cost of goods sold as follows:
Tulip's cost of goods sold: $600,000Daisy's cost of goods sold: $400,000Less: Markup on inventory sold by Tulip to Daisy: $60,000 (Tulip's cost)Tulip Co. and Daisy Co.'s consolidated cost of goods sold would therefore be $940,000 ($600,000 + $400,000 - $60,000).
A company is setting its direct materials and direct labor standards for its leading product. Direct material costs from the supplier are $9 per square foot, net of purchase discount. Freight-in amounts to $0.20 per square foot. Basic wages of the assembly line personnel are $14 per hour. Payroll taxes are approximately 22% of wages. How much is the direct labor cost standard per hour? (Round your answer to the nearest cent.)
To calculate the direct labor cost standard per hour, combine the base wages of $14 per hour with payroll taxes, which are 22% of wages. This results in total direct labor costs of $17.08 per hour after rounding to the nearest cent.
The question is asking us to calculate the direct labor cost standard per hour for a company's leading product. The base wages for assembly line personnel are $14 per hour, and payroll taxes are an additional 22% of wages. To calculate the total direct labor cost per hour, we need to account for both the wages and the payroll taxes.
First, we find the amount of payroll taxes by calculating 22% of the base wage rate:
Payroll taxes = 22% imes $14 = 0.22 imes $14 = $3.08
Next, we add the payroll taxes to the base wages to determine the total direct labor cost per hour:
Total direct labor cost per hour = Base wages + Payroll taxes
Total direct labor cost per hour = $14 + $3.08 = $17.08
After rounding to the nearest cent, the direct labor cost standard per hour is $17.08.
Sam expressed interest in buying a painting from Jasper, whose asking price was $15,000. Sam was only willing to offer $13,000. Jasper told him that it was a very old painting worth a fortune and that others would gladly pay $20,000 for it. Sam decided to buy the painting for $15,000 on the condition that if he found that the painting was worth less than $15,000, Jasper would have to take the painting back and refund Sam. Which of the following warranties did this sales contract have?
A. an express warranty
B. an implied warranty of merchantability
C. an oral contract
D. a statement of opinion
Answer: A statement of opinion is the warranty that was associated with this contract.
Here, it is important to ponder upon the fact that Sam decided to buy the painting for $15,000 on the condition that if he found that the painting was worth less than $15,000, Jasper would have to take the painting back and refund Sam.
This indeed makes Sam's purchase validated with a warranty that is known as a statement of opinion. Although , it should be duly noted that the opinion does not make significant impact on the purchase.
On February 13, a jewelry store sells an engagement ring with a sales price of $10,000 to a nervous young man, who pays in cash. The sale is subject to a 9.75 percent sales tax. Prepare the revenue portion of the February 13 by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
cash 10,000 debit
sales tax tayable 975
sales revenue 9.025
Explanation:
the sale was made on cash, so we use cash account.
then to calculate the sale tax tayable:
sales price x tax sale rate = sale tax payable
10,000 x 0.0975 = 975
finally the revenue will be the diference between the proceeds of the sale and the taxes.
revenue = price - tax = 10,000 - 975 = 9,025
Final answer:
To calculate the revenue portion for the jewelry store's sale on February 13, multiply the $10,000 price by the 9.75% sales tax rate to determine the sales tax amount of $975. Add the tax to the original price to record a total revenue of $10,975, with entries to cash (debit), sales revenue (credit), and sales tax payable (credit).
Explanation:
Calculating Sales Tax and Total Revenue
To prepare the revenue portion of the February 13 transaction, we must calculate the sales tax that the jewelry store must collect and then determine the total amount that the store will record as revenue. The engagement ring is sold for $10,000 and the sales tax rate is 9.75 percent.
Firstly, we convert the sales tax rate from a percent to a decimal by dividing by 100:
Sales tax rate in decimal = 9.75% ÷ 100 = 0.0975
Next, we multiply the sales price by the sales tax rate to find the amount of sales tax:
Sales tax amount = $10,000 × 0.0975 = $975
Now, add the sales tax amount to the original sales price to find the total revenue:
Total revenue = Sales price + Sales tax amount
Total revenue = $10,000 + $975 = $10,975
The revenue portion of the transaction will include a debit to the cash account for the total amount received, which is $10,975, and a credit to the sales revenue account for the sales price of $10,000. Additionally, there will be a credit to the sales tax payable account for the sales tax collected, which is $975.