Answer:
Cash borrow = $14,900.
Explanation:
Given,
The company budgeted ending cash balance is $30,700.
We know,
Budgeted ending cash balance = Budgeted beginning cash balance + Budgeted cash receipts - Budgeted cash disbursements + Budgeted cash borrow
Given,
Budgeted ending cash balance = $30,700.
Budgeted beginning cash balance = $18,700
Budgeted cash receipts = $186,500
Budgeted cash disbursements = $189,400
Budgeted cash borrow = ?
Putting the values into the formula, we can get
$30,700 = $18,700 + $186,500 - $189,400 + Cash borrow
Or, $30,700 - ($18,700 + $186,500 - $189,400) = Cash borrow
Or, $30,700 - $18,700 - $186,500 + $189,400 = Cash borrow
Or, $220,100 - $205,200 = Cash borrow
Or, $14,900 = Cash borrow
Or, Cash borrow = $14,900.
Therefore, cash borrow is $14,900.
A consumer products company wants more creativity in its research and development operations. The company has spent large amounts of money on creativity training sessions that have helped somewhat, but the VP of research and development believes that the fundamental work environment must be altered to foster more creativity.
Describe three conditions (other than training) that this organization should establish to increase the level of creativity in its research and development operations. Briefly explain how each condition might improve creativity.
Answer:
• Diversify the workplace
• Use creativity- and mind-stimulating games
• Use (a) flexible workplace(s)
Explanation:
1. Diversify the workplace
Employees consisting of different types of people, in terms of age, social status, race, gender and ethnicity, can help boost creativity in the workplace. Different backgrounds and experiences from the members will allow for different ideas to flow among the team. Differences will also make the team appreciate each other and make the entire team versatile.
2. Use creativity- and mind-stimulating games
Games that are open ended and not structured can help boost creativity. Each participant will have a different response which will allow more development and inventive ideas. Research can be done through guessing games that stimulate the mind or artistic games such as acting scenes, etc.
3. Use (a) flexible workplace(s)
Office space with air-conditioners and four walls may restrict the amount of creativity and result in the same, dull, exhausted ideas over time. To increase the level of creativity, the team should use different workplaces randomly for a change of scenery. One day spent at a park, the next day could be spent in a laboratory and the next could be spent in a library. Different environments can spark new, fresh ideas that can assist with research and development.
Answer:
Three conditions other than training that this organization should establish to increase the level of creativity in its research and development operations is to:
1. Get new perspectives
2. Create a flexible workplace
3. Provide Incentives for employers
Explanation:
1. Get new perspectives: be open to new ideas, do not reject changes. Ask for a fresh perspective from your employees ans external professional source because that could be the game changer.
2. Create a flexible workplace: Allow your workers to explore remote work as well as regular office work. Try to switch up the work place mechanism a bit then reconvene to brainstorm about the experience.
3. Provide Incentives for employers: A little incentive such as a time out to play, reward for exceptional work and welfare packages every now and then can foster a kindred spirit among colleagues and stimulate creativity.
Assume the M&M with corporate taxes. The corporate tax rate is 40%. Your firm is currently unlevered with 100% equity. As of now, the value of the firm’s equity is $400K, and the firm’s cost of capital is 10%. Assume that your firm can borrow at 4% from a bank.Suppose that you decided to lever up by reducing equity and increasing debt. As the result, your firm now has $250K in debt. Your firm plans to maintain this debt amount forever. What is the present value of the interest tax shield?A. $40KB. $160KC. $80KD. $100K
Answer:
D. $100 K
Explanation:
Data provided
Debt = $250 K
Corporate tax rate = 40%
Corporate tax rate
The computation of present value of the interest tax shield is shown below:-
Present value of the interest tax shield = Debt × Corporate tax rate
= $250 K × 40%
= $100 K
Therefore for computing the present value of the interest tax shield we simply multiply the debt with corporate tax rate.
Why might fiscal stimulus crowd out investment? Fiscal stimulus that increases an existing government budget deficit ______ loanable funds, which ______ investment. A. decreases the demand for; decreases the real interest rate and increases B. increases the demand for; decreases the real interest rate and increases C. increases the demand for; increases the real interest rate and decreases D. decreases the supply of; increases the real interest rate and decreases
Answer:
C. increases the demand for; increases the real interest rate and decreases
Explanation:
Market congestion is an event that occurs when government involvement in one sector significantly affects the rest of the market, the supply or demand side of the market. A type of expansionary economic policy is often discussed when the private sector reduces investment costs. Government spending "out" investments because it seeks more borrowable funds and increases interest rates and therefore reduces investment spending. This basic analysis has been extended to multiple channels, which can change the overall output very little or very little.Fish Fillet Incorporated obtains fish and then processes them into frozen fillets and then prepares the frozen fish fillets for distribution to its retail sales department. Direct materials are added at the initiation of the cycle. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some fillets are spoiled due to nondetectible defects. Inspection occurs when units are 100% completed. Spoiled fillets generally constitute 3.5% of the good fillets.
Data for April 2013 are as follows:
WIP, beginning inventory 4/1/2013 40,000 fillets
Direct materials (100% complete)
Conversion costs (50% complete)
Started during April 75,000 fillets
Completed and transferred out 4/31/2013 100,000 fillets
WIP, ending inventory 431/2013 8,000 fillets
Direct materials (100% complete)
Conversion costs (20% complete)
Costs for April:
WIP, beginning Inventory:
Direct materials $55,000
Conversion costs 40,000
Direct materials added 145,100
Conversion costs added 188,065
Required:
a) What is the number of total spoiled units? Normal spoilage totals? Abnormal spoilage totals?
b) Compute the equivalent units for both direct materials and conversion costs using the weigh average method of process costing? What is the total cost per equivalent unit? Show computations.
c) How much costs are assigned to cost of goods manufactured and cost of ending inventory of work in process? Show computations.
Answer:
Total spoiled units = 7000
Normal spoilage total = 3500
Abnormal spoilage total = 3500
Total cost per equivalent unit = $3.80
Cost of goods manufactured = $224,000
Ending WIP = $201,165
Explanation:
Kindly check attached pictures
Final answer:
The solution involves calculating normal spoilage based on the percentage provided, computing equivalent units for direct materials and conversion costs using the weighted average method, and assigning costs to manufactured goods and ending inventory based on these computations.
Explanation:
To address the question regarding Fish Fillet Incorporated and its production process, let's break down the inquiry into parts for clarity. The problem involves calculating spoiled units, determining normal and abnormal spoilage, computing equivalent units using the weighted average method, and finally assigning costs to goods manufactured and ending inventory of work in process.
a) Spoiled Units Calculation
Given that spoiled fillets constitute 3.5% of the good fillets and 100,000 fillets were completed and transferred out, we can calculate the normal spoilage totals. Assuming all spoilage is considered normal, the calculation would be (100,000 / (1 - 0.035)) * 0.035 to find the spoiled units. However, without knowing the exact total produced before spoilage, a precise number for spoiled units cannot be readily provided without assumptions.
b) Equivalent Units for Direct Materials and Conversion Costs
To compute equivalent units for both direct materials and conversion costs using the weighted average method, one must account for the percentage completion of beginning work in process, units introduced and completed during the period, and the ending inventory's stage of completion. Direct materials are added at the beginning, making their equivalent units the total units started plus beginning inventory. Conversion costs, incurred evenly, would be calculated by weighting the percentage completion.
c) Cost Assignment to Goods Manufactured and Ending Inventory
The costs are assigned based on the equivalent units computed for direct materials and conversion costs, considering the costs added during the period and the beginning inventory costs. The total cost per equivalent unit would guide the allocation to the cost of goods manufactured and the ending inventory.
Moses Supply Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31. Nov. 1 Dec. 11 16 Loaned $60,000 cash to C. Bohr on a 12-month, 7% note. Sold goods to K. R. Pine, Inc., receiving a $3,600, 90-day, 8% note. Received a $12,000, 180-day, 9% note to settle an open account from A. Murdock. 31 Accrued interest revenue on all notes receivable Instructions Journalize the transactions for Moses Supply Co. (Omit cost of goods sold entries.)
The journal entries for Moses Supply Co.'s transactions involve debiting 'Notes Receivable' for each note issued and 'Interest Receivable' for the accrued interest, and crediting 'Cash' for the loan to C. Bohr, 'Accounts Receivable' to reflect note receipts, and 'Interest Revenue' for the recognized interest income.
Explanation:Moses Supply Co. will record the following journal entries for these transactions:
Nov. 1: Notes Receivable ... 60,000 Cash ................... 60,000 [loan of $60,000 to C. Bohr] Dec. 11: Notes Receivable ... 3,600 Accounts Receivable ......... 3,600 [receipt of a note for purchase by K.R. Pine] Dec. 16: Notes Receivable ... 12,000 Accounts Receivable ........... 12,000 [note received to settle the account with A. Murdock] Dec. 31: Interest Receivable ..... 1,470 Interest Revenue ............. 1,470 [interest accrued on notes receivable]These entries account for the issuance of the notes and the recognition of interest income.
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To journalize the transactions for Moses Supply Co., record each transaction separately. The entries include notes receivable, sales revenue, accounts receivable, and interest revenue.
Explanation:To journalize the transactions for Moses Supply Co., we need to record each transaction separately. Let's break down each transaction:
On November 1, Moses Supply Co. loaned $60,000 cash to C. Bohr on a 12-month, 7% note. The journal entry would be:https://brainly.com/question/30273292
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The World Income Appreciation Fund has current assets with a market value of $10.1 billion and has 440 million shares outstanding. What is the net asset value (NAV) for this mutual fund?
Answer:
$22.95
Explanation:
Given that,
Market value of the current assets = $10.1 billion
Number of shares outstanding = 440 million
The net asset value is determined by the ratio of Market value of the current assets and Number of shares outstanding.
Net asset value (NAV) for this mutual fund:
= Market value of the current assets ÷ Number of shares outstanding
= $10,100,000,000 ÷ 440,000,000
= $22.95
Therefore, the net asset value (NAV) for this mutual fund is $22.95.
Suppose that you use duration to approximate the changes in bond price. When interest rate goes up, the absolute value of duration approximation is ____ than the absolute value of actual bond price changes. When interest rate goes down, the absolute value of duration approximation is ____ than the absolute value of actual bond price changes. A. smaller, larger B. smaller, smaller C. larger, larger D. larger, smaller
Answer:
Smaller , Larger A
Explanation:
When interest rates are changed , the shorter the duration , the less the volatility and the higher the duration , the more the volatility. This explains the reason that duration decrease at a higher rate when interest increases and vice versa.
A slight increases in the interest rate triggers a higher fall in the duration and an slight decrease in the interest rate triggers a higher rise in the duration
Stock Y has a beta of 1.59 and an expected return of 25%. Stock Z has a beta of 0.44 and an expected return of 12%. If the risk free rate is 6% and the market risk premium is 11.3%. Which of the following statements is correct:
a. Stock Y and stock Z are correctly priced
b. Stock Y is underpriced and stock Z is overpriced
c. Stock Y is overpriced and Stock Z is underpriced
d. Both stock Y and stock Z are underpriced
Answer:35%
Explanation:
Stock Y is overpriced and Stock Z is underpriced based on the Capital Asset Pricing Model calculations.
Stock Y is overpriced and Stock Z is underpriced. We can determine this by comparing the expected return of each stock with their required returns calculated using the Capital Asset Pricing Model (CAPM).
The required return for Stock Y = Risk-Free Rate + Beta of Stock Y * (Market Risk Premium) = 6% + 1.59 * 11.3% = 20.5%
The required return for Stock Z = Risk-Free Rate + Beta of Stock Z * (Market Risk Premium) = 6% + 0.44 * 11.3% = 11.9%
Since Stock Y's expected return is 25% and the required return is 20.5%, it is overpriced. Conversely, Stock Z's expected return is 12% while the required return is 11.9%, indicating it is underpriced.
A cap and trade system: 1. was used in nineteenth-century England to limit coal consumption. 2. encourages fair trade by limiting the amount of many vegetables that can be imported from Mexico. 3. reduces climate change by requiring individuals and firms to buy licenses to emit greenhouse gases. 4. exempts Chinese imports from Food and Drug Administration regulations.
Answer:
reduces climate change by requiring individuals and firms to buy licenses to emit greenhouse gases.
Explanation:
Cap and trade reduce emissions, such as those from power plants, by setting a limit on pollution and creating a market. ... It's a system designed to reduce pollution in our atmosphere. The cap on greenhouse gas emissions that drive global warming is a firm limit on pollution.
Today, cap and trade is used or being developed in all parts of the world. For example, European countries have operated a cap-and-trade program since 2005. Several Chinese cities and provinces have had carbon caps since 2013, and the government is working toward a national program.
the market-based pollution control system in which the government sets an overall limit on how much of a pollutant is acceptable from an entire industry or country and issues vouchers to pollute to each company; individual companies are then free to trade these vouchers.
Answer: 3. Reduces climate change by requiring individuals and firms to buy licenses to emit greenhouse gases.
Explanation:
The Cap and Trade system is a policy that seeks to reduce the emission of gases to the environment to the barest minimum.
There is a standard or cap which companies are expected to adhere to. Noncompliance to these standards attracts fines. It is a measure that seeks to combat global warming.
Trading ensures that companies who are able to cut down on their emissions can have extra allowances or revenue which can be sold to other companies.
On September 1, Year 1, the Central Illinois University ticket office sold $1,800,000 worth of season basketball tickets. Ten home games will be played: four games will be played during Year 1 and six games will be played during Year 2. What is the adjusted balance in Deferred Revenue account at December 31, Year 1?
Answer:
The adjusted balance in Deferred Revenue at the end of year 1 is $1,080,000.
Explanation:
Deferred revenue is also known as unearned revenue which means that income is received but not earned. In accrual basis accounting, we record revenues only after we deliver the goods or perform the services.
In this case, the $1,800,000 is received for 10 home games which means that per game we received 1,800,000/10 = 180,000.
Since only 4 games were played during the year, the revenue earned at the end of year 1 is: 180,000*4= 720,000
The remaining 6 games will be played in year 2 but we have already received the payment of games, so it will be considered as a Deferred Revenue. The amount of Deferred Revenue at the end of year 1 is:
⇒ 180,000*6 = 1,080,000
At end of Year 1, only 40% of the total basketball season games have been played so this proportion of the ticket revenue can be recognized. The remaining 60% of the ticket revenue ($1,080,000 from $1,800,000 paid) remains in the Deferred Revenue account, treated as a liability until the services (games) are fully delivered in Year 2.
Explanation:The Deferred Revenue account represents money that has been received, but for which the goods or services have not yet been delivered, hence it is treated as a liability. In this case, the Central Illinois University has sold $1,800,000 worth of season basketball tickets, with four games being played during Year 1, and six games in Year 2. At the end of Year 1, only 40% (4 out of 10) of the games would have been played.
The revenue recognized in Year 1 should therefore be 40% of $1,800,000, which equals $720,000. The remaining 60%, or $1,080,000 should be the adjusted balance in the Deferred Revenue account at the end of Year 1 (December 31, Year 1). So, the answer is $1,080,000.
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Bay City uses the purchases method to account for supplies. At the beginning of the year the city had no supplies on hand. During the year the city purchased $600,000 of supplies for use by activities accounted for in the general fund. The city used $400,000 of those supplies during the year. Assuming that the city maintains its books and records in a manner that facilitates the preparation of its fund financial statements, at fiscal year-end the appropriate account balances related to supplies expenditures and supplies inventory would be Expenditures $600,000; Supplies inventory $200,000 Expenditures $600,000; Supplies inventory $0 Expenditures $400,000; Supplies inventory $200,000 Expenditures $400,000; Supplies inventory $0
Answer:
Expenditures $600,000; Supplies inventory $200,000
Explanation:
Expenditures $600,000; Supplies inventory $200,000
Purchased supplies for use - Part of the supplies used.
$600,000-$400,000=$200,000
If at the beginning of the year the city had no supplies on hand in which it purchased $600,000 of supplies for use by activities accounted for in the general fund that means city used $400,000 out of the $600,000 of those supplies during the year in which the balance left of those supplies is $200,000 which will be the supplies inventory while the Purchased supplies for use of $600,000 will be the expenditure .
Marigold Corp. sells radios for $50 per unit. The fixed costs are $545000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $35000 and variable costs will be 50% of the selling price. The new break-even point in units is:
The new break-even point in units is: $23,200
Solution:
Given,
Marigold Corp. sells radios for $50 per unit
Fixed costs = $545000
Variable costs = 60%
As a consequence of the modern electronic facilities, the fixed costs are projected to rise by $35,000 and the variable costs would be 50% of the purchase price.
Now,
The new break-even point in units is:
= $545000 + $35000
= $580,000
=> 580,000/25 = $23,200
Chelsea Paper Products is a large manufacturer that employs nearly 800 workers. Executives at the company are interested in implementing a training and development program in order to improve employee competencies and enhance the firm's overall performance. Which of the following most likely supports the plan to establish a training and development program at Chelsea? Firms of similar size typically provide mentors to new employees. Other firms in the paper industry are implementing T&D programs. The firm's new CEO established a T&D program at a previous firm. The firm has consistently had a high turnover rate in all departments.
Answer: The firm has consistently had a high turnover rate in all departments.
Explanation:
If the firm has a high turnover rate in all departments this means that there is a high number of employees leaving the company.
For this reason, it would be best to initiate a Training and Development program at Chelsea Paper Products.
Some of the benefits of T&D programs include, increased job satisfaction, morale and motivation amongst employees. This would reduce the high turnover rate as employees would be happier to work at Chelsea PP as they feel more fulfilled.
Additional benefits include a better bottomline and increased innovation in the company which can give them an edge in the industry.
If you require any clarification do react or comment.
Final answer:
The most likely support for establishing a training and development program at Chelsea Paper Products comes from other firms in the paper industry implementing similar programs, along with the practice of providing mentors to new employees. The previous experience of the firm's new CEO in establishing a T&D program also supports the plan.
Explanation:
To establish a training and development program at Chelsea Paper Products, the most likely support would come from other firms in the paper industry implementing T&D programs. This indicates that training and development programs are a common practice in the industry, and Chelsea would benefit from implementing one as well.
Furthermore, firms of a similar size typically provide mentors to new employees, which suggests that Chelsea can also adopt a mentorship program as part of their training and development efforts.
The fact that the firm's new CEO established a T&D program at a previous firm is another supportive factor, as it demonstrates the CEO's belief in the effectiveness and importance of such programs for overall performance improvement.
Suppose that on your 21st birthday you are given a $1,000,000 trust fund. What interest rate must you earn to ensure that if you withdraw $50,000 per year there is money in the account forever
Answer:
The correct answer is 5%.
Explanation:
According to the scenario, the given data are as follows:
Annual withdrawal = $1,000,000
Annual withdrawal = $50,000
So, we can calculate the interest rate by using following formula:
Interest rate = Annual withdrawal ÷ Annual withdrawal
by putting the value in the formula, we get
Interest Rate = $50,000 ÷ $1,000,000
= 0.05
Or 5%
Hence, the Interest rate should be 5%.
The rule of 70 applies in any growth-rate application. Let’s say you have $3500.00 in savings and you have three alternatives for investing these funds. How many years would it take to double your savings in each of the following three accounts? In all cases, give your answers to two decimals.a. a savings account earning 0.50% interest b. a U.S. Treasury bond earning 3.50% interest c. a stock market mutual fund earning 8.00% interest years years years
Answer:
(a)140 years
(b)20 years
(c)8.75 years
Explanation:
The Rule of 70 is used in accounting to estimate the duration(number of years) it will take for the initial investment (P) to double in value given a particular interest rate (r) and an annual compounding period.
The Formula for the Rule of 70 is:
[tex]\text{Number of Years to Double}=\frac{70}{\text{Annual Rate of Return}}[/tex]
(a)Savings account earning 0.50% interest
[tex]\text{Number of Years to Double}=\frac{70}{0.5}=140 years[/tex]
(b)A U.S. Treasury bond earning 3.50% interest
[tex]\text{Number of Years to Double}=\frac{70}{3.5}=20 years[/tex]
(c)A stock market mutual fund earning 8.00% interest
[tex]\text{Number of Years to Double}=\frac{70}{8}=8.75 years[/tex]
When the unemployment rate is at a steady state: Group of answer choices the number of people finding jobs exceeds the number of people losing jobs. the number of people losing jobs exceeds the number of people finding jobs. no hiring or firings are occurring. the number of people finding jobs equals the number of people losing jobs.
Answer:
The number of people finding jobs equals the number of people losing jobs.
Explanation:
Unemployment rate can be defined as the percentage of unemployed workers that are present in the the labor force. The Labor force of a country comprises of both employed and unemployed individuals that are present in the country. Unemployment rate can also be described as the percentage of the total workforce of a country that is yet to be gainfully employed.
High unemployment rate poses an adverse effect on the economy, it leads to an increase in crime rate this is due to the fact that unemployed individuals have no source of income to take care of their respective families and as such have to turn to the life of crime inorder to earn money.
The R.C.Willey furniture store has a sale for Memorial day weekend that if you purchase products that come over $499 a 60" TV can be purchased for only $300. This sales practice is known as ________.
Answer:
The correct answer is letter "C": bundling.
Explanation:
Bundling sales refers to marketing strategies by which one good is sold along with others usually offering the second at a discount price. The objective of this approach is to increase the company's sales moreover when a purchase has already taken place. Stores also use this practice to free items stored for long periods in their inventory.
The sales practice described in the question is known as a loss leader.
A loss leader is a product sold at a low price (at or below its market cost) to stimulate other profitable sales. In this case, the R.C.Willey furniture store offers a 60" TV for only $300 if the customer purchases other products totaling over $499.
This encourages customers to spend more on other items in order to qualify for the deeply discounted TV.For example, if a customer buys a sofa and a dining table for $500, they can then purchase the 60" TV at $300, which is a significant discount from its usual price. This strategy boosts overall sales and can increase customer traffic to the store.Required information P10-10 (Algo) Preparing a Bond Amortization Schedule for a Bond Issued at a Premium LO10-5 [The following information applies to the questions displayed below.] On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Date Cash Interest Amortization Balance January 1, Year 1 $ 32,566 End of Year 1 $ 1,792 $ 1,661 $ 131 32,435 End of Year 2 ? ? ? 32,297 End of Year 3 ? ? 145 ? End of Year 4 ? 1,640 ? 32,000
Answer:
Find attached complete schedule
Explanation:
Find attached bond amortization schedule.
In the preparing the schedule I divide $1792 first coupon interest by the face value of the bond of $32,000 ,I got 6% semiannual coupon rate
I divided the interest expense of $1661 by the carrying value at the beginning of year one of $32,566,I got 5.10% semiannual yield
An advantage of absorption cost transfer pricing arises from the fact that Select one: A. This method keeps the purchasing division content. B. This method encourages the selling division to operate efficiently. C. This method allows the selling division to make a contribution toward covering long run fixed costs. D. This method is not as easy to implement as other methods.
Answer:
This method encourages the selling division to operate efficiently.
Explanation:
Absorption cost transfer pricing is very essential to determine the right amount in which goods and services will be sold in the market. It involves setting a price for a particular product with inclusion of all its variable costs.
Absorption cost transfer pricing enables an organization to maximise profit this is because all the different cost incurred during production are added to the price of the product.
Absorption cost transfer pricing's advantage allows the selling division to contribute towards long-term fixed costs. This doesn't necessarily encourage operational efficiency.
Explanation:An advantage of absorption cost transfer pricing is that it allows the selling division to contribute towards covering long-term fixed costs (option C). This method is based on the idea that every cost associated with producing a product, both variable and fixed, is absorbed into the product cost. Hence, when the selling division sells the product, part of the sale also covers fixed costs, thus contributing to the overall company income. It’s important to note that while this method encourages financial efficiency, it does not necessarily incentivize operational efficiency (option B).
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Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,100 direct labor-hours will be required in May. The variable overhead rate is $1.40 per direct labor hour. The company's budgeted fixed manufacturing overhead is $100,440 per month, which includes depreciation of $8,910. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
Answer:
May cash disbursement is $102,870
Explanation:
May cash disbursement for manufacturing overhead is the planned cash expenditure based on the budgeted manufacturing overhead for the month.
Cash would be paid to labor at $1.40 for every direct labor incurred for a total number of 8,100 direct labor hours i.e $11,340 cash in all($1.40*8100)
Also,company budgeted fixed manufacturing overhead would also require $91,530 in cash,which is the budgeted manufacturing fixed overhead of $100,440 minus the depreciation charge included in it ($100,440-$91530)
In total cash disbursement is $102,870($11,340+$91,530)
onas is the only history tutor in his town. He has three potential customers. Xavier is willingto pay $70 for tutoring, Yasha is willing to pay $50 and Zander is willing to pay $25. SupposeJonas has to charge the same price to each of his customers, and each student he tutors costshim $15 (which mostly consists of the opportunity cost of his time). What price will Jonasset, and what will be the consumer surplus, producer surplus, and deadweight loss? AssumeJonas has no fixed costs to operate his tutoring bu
;
Answer:
a. $25
b. & c. $45, $25, $0
Explanation:
a. To charge the same price to each of his customers, Jonas will charge the least amount= $25 (offered by Zander)
b. Consumer surplus
I) For Xavier = $70 - $25 = $45
II) For Yasha = $50 - $25 = $25
III) For Zander = $25 - $25 = $0
c. Producer Surplus
I) For Xavier = $70 - $25 = $45
II) For Yasha = $50 - $25 = $25
III) For Zander = $25 - $25 = $0
Stephanie is a 40 percent partner in the SKY Partnership. During the current tax year, the partnership reported ordinary income of $210,000 before payment of guaranteed payments and distributions to partners. The partnership paid guaranteed payments to partners Stephanie, Kirsten, and Yule of $30,000 each ($90,000 total). How much will Stephanie's adjusted gross income increase as a result of the above items?
A. $88,000
B. $48,000
C. $78,000
D. $66,000
Answer:
The answer is Option B.
$48000
Explanation:
Guaranteed payment $30,000.00
Balance distribution [($210000-$90000)*40%] $48,000.00
Stephanie's adjusted gross income $78,000.00
Less : Guaranteed Payment every year $30,000.00
Increase in Stephanie's adjusted gross income $48,000.00
Aegis Industries Inc., is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions): 2012 2013 2014 2015 Net Sales Revenue $ 3,300 $ 2,760 $ 2,090 $ 1,670 Cost of Goods Sold 2,380 2,000 1,560 1,270 Average Inventory 330 280 220 210 Required: 1-a. Calculate the inventory turnover ratio for 2015, 2014, and 2013. 1-b. Calculate the average days to sell inventory for 2015, 2014, and 2013. 2. Is Aegis performing better than its competitor Snow Pack Corporation where the inventory turned over is 5.5 times in 2015 (66.4 days to sell). Both companies use the same inventory costing method (FIFO).
Answer:
The calculations are shown below:
Explanation:
The computation is shown below:
As we know that
Inventory turnover ratio is
= Cost of goods sold ÷ Average inventory
So
For year 2015, it is
= $1,270 ÷ $210
= 6.05 times
For year 2014, it is
= $1,560 ÷ $220
= 7.09 times
For year 2013, it is
= $2,000 ÷ $380
= 7.14 times
1-b Average days to sell inventory is computed by considering the
= Total number of days in a year ÷ inventory turnover ratio
So
For year 2015, it is
= 365 ÷ 6.05
= 60.33 days
For year 2014, it is
= 365 ÷ 7.09
= 51.48 days
For year 2013, it is
= 365 ÷ 7.14
= 51.12 days
2. As we can see that the aegis industries inc is performing better than the Snow Pack Corporation as aegis industries has 7.14 times in 2015 as compare to the 5.5 times in 2015
Entrepreneurship starts with an idea. Without being critical or judgmental, brainstorm a set of 10 ideas that could lead to the start up of a new business. Screen your ideas and select those that would enjoy the greatest market demand, the most attractive market structure and size, and the best profit margins. which if these screens caused most of the ideas to be discarded? What additional information would you need to seek out to answer all the screening questions?
Answer:
Personal or Virtual Assistant — While individual and menial helpers are not fabulous, they pay well. They are definitely not. On the off chance that you have held this activity as of now in an office, the advanced rendition gives you significantly more opportunity.
Marketing services — There is a sure level of foundation information in promoting. Putting resources into an online course isn't simply modest, yet will furnish you with the sufficient instruments to set up an internet showcasing organization you can extend in future. Numerous new promoting regions, for example, impact showcasing, are being opened up.
Social Media Advisor— Twitter and Google offer total, perceived, almost no cash requiring, proficient courses, among different stages. Online life is likewise an organization with boundless potential and a worldwide client base. This pattern most likely won't before long bite the dust, and every year new stages will be distributed, making the alternatives for extension boundless. To make your activity simple, you can utilize instruments for internet based life the board.
Affiliate marketing — Affiliate showcasing is extraordinarily simple to take part in and includes you accepting a charge by promoting the merchandise and enterprises of different organizations. Basically, you're picking an item you like, selling it, and putting forth a benefit out of your promoting attempts at each deal.
Tester or Reviewer — Companies or new businesses likewise look for organizations to audit their items and permit others and get them. You can either begin with a profile on outsourcing sites or straightforwardly approach organizations, by being an influencer, giving them an audit as an end-result of a fiscal prize.
ebay Assistant or Seller — An advertising partner is like an Ebay aide or dealer. The key distinction is that you are selling it straightforwardly to the client, rather than advertising the item. At the point when you sell on Ebay or some other stage for other people, you will sell the item and keeping a commission as remuneration.
Lasko's has 250,000 shares of stock outstanding, $400,000 in perpetual annual earnings, and a discount rate of 16 percent. The firm is considering a new project that has initial costs of $350,000 and annual perpetual cash flows of $60,000. How many new shares must be issued to fund the new project
Answer:
Extra shares required is 1,314,975
Explanation:
Outstanding shares of a firm are those shares that have already been issued to the general public and finds have been received by the company in exchange.
Current price per share = (Total value of shares ÷ Number of shares) ÷ Discount rate
Current price per share= (400,000 ÷ 250,000) ÷ 0.16
Current price per share= $10
Value of firm with project= Initial cost + {(Value of outstanding stock + Annual Perpetual cash flow) ÷ Discount rate}
Value of firm with project= -350,000+ {(400,000+ 60,000)÷0.16}
Value of firm with project= $2,525,000
New price per share= 2,525,000 ÷ 250,000= $10.10
Extra amount needed for project= 2,525,000 - 400,000= 2,152,000
Extra shares required= (2,152,000 ÷ $10.10)÷ 0.16
Extra shares required= 1,314,975
You manage a risky portfolio with an expected rate of return of 21% and a standard deviation of 32%. The T-bill rate is 8%. Your client chooses to invest 65% of a portfolio in your fund and 35% in a T-bill money market fund. What are the investment proportions of your client’s overall portfolio, including the position in T-bills?
Answer: Treasury Bills - 35%
Stock A - 17.55%
Stock B - 23.4%
Stock C - 24.05%
Explanation:
Hello.
The question was a tad incomplete so I attached the relevant portion from a similar question as a guide.
The client already has 35% invested in T- bills so that would be the T- bill proportion.
Now we need the proportions of the other 3 stocks.
Stock A will be,
= 0.65 (proportion of total portfolio in the fund) * 0.27 (proportion of stock in fund)
= 0.1755
= 17.55% of total portfolio
Stock B will be,
= 0.65 (proportion of total portfolio in the fund) * 0.36 (proportion of stock in fund)
= 0.234
= 23.4% of total portfolio
Stock C will be,
= 0.65 (proportion of total portfolio in the fund) * 0.37 (proportion of stock in fund)
= 0.2405
= 24.05% of the total portfolio.
To check the figures we can add them up.
That would be
= 0.35 + 0.2405 + 0.234 + 0.1755
= 1
So those are the correct proportions of your client’s overall portfolio, including the position in T-bills.
Culture creation occurs in all of the following ways exceptwhen ________.
A) founders hire and keep employees who think and feel the way they do
B) founders indoctrinate and socialize employees to their way of thinking and feeling
C) founders develop their vision covertly
D) founders' behavior acts as a role model
E) founders refuse to be constrained by previous ideologies
Answer:
C) founders develop their vision covertly.
Explanation:
Culture can be defined as the general way of life of people and it is the essence of an organization.
Culture creation occurs in all of the following ways;
- founders hire and keep employees who think and feel the way they do.
- founders indoctrinate and socialize employees to their way of thinking and feeling.
- founders' behavior acts as a role model, thereby causing employees to adopt and implore their beliefs, ethics, assumptions and core values.
Culture creation does not take place when founders develop their vision covertly. Founders influence culture by hiring like-minded employees, socializing them into the company's mindset, and serving as role models. Values that provide competitive advantages, such as those of Ben & Jerry's and Microsoft, become integral to corporate culture.
Culture creation occurs in unique ways within a company, but it does not happen when founders develop their vision covertly. Founders play a crucial role in shaping their organization's culture, particularly during its early years, by hiring employees who share their mindset, indoctrinating and socializing employees to their way of thinking and feeling, and by acting as role models. For example, the culture at Ben & Jerry's Homemade Holdings Inc. reflects the founders' values of social activism and sustainability, attributing to the company's ongoing devotion to these principles even after its acquisition by Unilever PLC. Moreover, the early success of businesses like Microsoft highlights how founders' values, when they confer a competitive advantage, become ingrained in the corporate culture and guide business practices.
There are ten firms in an industry. Five of the firms each have a market share of 12 percent and five of the firms each have a market share of 8 percent. The Herfindahl index is Group of answer choices 1,000. 1,040. 100. 920. none of the above
Answer:
1,040
Explanation:
The Herfindahl index is an index that is used to measure the size of firms in relation to the industry and it also shows the level of competition among the firms in the industry. The Herfindahl index is also known as Herfindahl–Hirschman Index (HHI).
The Herfindahl index is calculated by summing the square of the market share of all firms in the industry. For this question, it can be calculated as follows:
Herfindahl index = (12^2 * 5) + (8^2 * 5) = 720 + 320 = 1,040.
Ryan is self-employed. This year Ryan used his personal auto for several long business trips. Ryan paid $1,500 for gasoline on these trips. His depreciation on the car if he was using it fully for business purposes would be $3,000. During the year, he drove his car a total of 12,000 miles (a combination of business and personal travel). (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)
Answer:
A.$2,250
B.$1,152
Explanation:
A.
$1500 + 3000*[3000/12000]
$1,500 + $750
= $2,250
B.
{[820/12000]*3000} + {[820/1300]*1500}
=$205 +$946
=$1,152
Find the operating cash flow for the year for Harper Brothers Incorporated if they had sales revenue of $300,000,000, cost of goods sold of $140,000,000, sales and administrative costs of $40,000,000, depreciation expense of $65,000,000, and a tax rate of 40%.
Answer:
Operating cash flow for the year for Harper Brothers Incorporated is -$65,000,000
Explanation:
Operating Cash Flow is the total cash generated from operating business, within a specific time period.
The formula here applicable is
Operating Cash Flow= Total Revenue - Total Operating Costs
OCF= TR - TOC
The total revenue is sales revenue of $300million
Total operating cost= $140million + $40million + $65million + Tax amount which is 40% of sales revenue
40% of sales revenue is equal to 40% of $300milion = $120million
So total operating cost = $245,000,000 + $120,000,000 = $365,000,000
OCF= $300,000,000 - $365,000,000 = -$65,000,000
Final answer:
The operating cash flow for Harper Brothers Incorporated is calculated by adjusting the net income for non-cash expenses. The calculation yields an operating cash flow of $176,000,000 for the year.
Explanation:
To determine the operating cash flow for Harper Brothers Incorporated, we need to adjust the net income for non-cash expenses and changes in working capital. However, since we are not provided with changes in working capital, we will focus on the net income adjustment.
Calculating Operating Cash Flow
Start with total sales revenue: $300,000,000.
Subtract the cost of goods sold: $140,000,000.
Subtract sales and administrative costs: $40,000,000.
Add back the depreciation expense: $65,000,000 (since it's a non-cash expense).
Calculate the earnings before tax (EBT): $300M - $140M - $40M + $65M = $185,000,000.
Calculate the tax expense: $185,000,000 * 40% = $74,000,000.
Subtract the tax expense from EBT to get net income: $185M - $74M = $111,000,000.
Add the depreciation expense back to the net income to find the operating cash flow: $111,000,000 + $65,000,000 = $176,000,000.
The operating cash flow for Harper Brothers Incorporated for the year is therefore $176,000,000.