CASE: CHARTING A COURSE FOR CONFLICT RESOLUTION—"IT’S A POLICY" Background The setting is an 82-bed hospital located in a small city. One day an employee of the maintenance department asked the supervisor, George Mann, for an hour or two off to take care of some per-sonal business. Mann agreed, and he asked the employee to stop at the garden equipment dealer-ship and buy several small lawnmower parts that the department required. While transacting business at a local bank, the employee was seen by Sally Carter, the supervisor of both human resources and payroll, who was in the bank on hospital business. Carter asked the employee what he was doing there and was told the visit was personal.On returning to the hospital, Sally Carter examined the employee’s time card. The employee had not punched out to indicate when he had left the hospital. Carter noted the time the employee returned, and after the normal working day she marked the card to indicate an absence of 2 hours on personal business. Carter advised the chief executive officer (CEO), Jane Arnold, of what she had done, citing a long-standing policy (in their dusty, and some would say infrequently used, policy manual) requiring an employee to punch out when leaving the premises on personal busi-ness. The CEO agreed with Sally Carter’s action.Carter advised Mann of the action and stated that the employee would not be paid for the 2 hours he was gone.Mann was angry. He said he had told the employee not to punch out because he had asked him to pick up some parts on his trip; however, he conceded that the employee’s personal business was probably the greater part of the trip. Carter replied that Mann had no business doing what he had done and that it was his—Mann’s—poor management that had caused the employee to suffer.Mann appealed to the CEO to reopen the matter based on his claim that there was an important side to the story that she had not yet heard. Jane Arnold agreed to hear both managers state their position.
Instructions
1. In either paragraph form or as a list of points, develop the argument you would be advanc-ing if you were in George Mann’s position.
2. In similar fashion, thoroughly develop the argument you would advance if you were in Sally Carter’s position.
3. Assuming the position of the CEO, Jane Arnold, render a decision. Document your deci-sion in whatever detail may be necessary, complete with explanation of why you decided in this fashion.
4. Based on your responses to Questions 1 to 3, outline whatever steps—policy changes, guidelines, payroll requirements, or something else—you believe should be considered to minimize the chances of similar conflict in the future.
Answers
Answer:
Explanation:
Find attached my decisions
George Mann would highlight the dual nature of the errand, arguing it wasn't wholly for personal purposes. Sally Carter would emphasize the importance of policy adherence. Jane Arnold, mediating the disagreement, would decide on a compromise adjustment of the employee's time card.
George Mann's Position
If I were in George Mann's position, my argument would focus on the context of the situation. I would assert that while the employee did engage in personal business, they also completed a work-related task by picking up lawnmower parts needed by the maintenance department, as instructed by me. Despite the policy referenced by Sally Carter, I would argue that the employee's time should not be wholly classified as personal absence because work was also done on behalf of the hospital. I would present my directive as a decision in the interest of efficiency and possibly suggest that I should have better communicated the mixed nature of the employee's errand.
Sally Carter's Position
Arguing from Sally Carter's standpoint, I would maintain that policies are in place to ensure fairness and transparency. They must be applied consistently to prevent instances of preferential treatment and potential abuse. Since the policy clearly states that an employee must punch out when taking care of personal business, and the employee failed to do so, corrective action was warranted. I would stress the importance of following established procedures to protect the institution and its employees.
Jane Arnold's Decision
As CEO Jane Arnold, after considering both sides, I would decide to partially uphold Carter's action, but also acknowledge Mann's valid point. The employee's time card would be adjusted to reflect the time spent on hospital business, for which the employee will be compensated, and the remaining time as personal, for which they will not be paid. This compromise respects the policy, but also recognizes the dual nature of the errand. The decision emphasizes the need for clear communication and a review of policies to avoid future misunderstandings.
Minimizing Future Conflicts
To minimize the chances of similar conflicts in the future, several steps should be taken:
Create clear guidelines specifying how to handle situations where an employee carries out both personal and professional tasks during one trip.
Implement a system for pre-approvals of mixed-nature errands, including methods for verifying completion of professional tasks.
Conduct regular policy training sessions to ensure all managers and employees understand existing policies and procedures.
Establish clear communication channels and protocols between departments to manage approvals and reporting of off-site tasks.
Related Questions
The not-for-profit organization Accountants Rule has a mission to promote the accounting profession in the local community.
It is heavily supported by local accounting firms and businesses seeking to increase the number of individuals entering the profession.
Following is the pre-closing trial balance for the organization:
Debit Credit
Cash and cash equivalents $985
Investments 2,605
Pledges receivable 830
Allowance for uncollectable pledges $35
Accounts payable and accrued liabilities 1,090
Unrestricted net assets 1,267
Temporary restricted net assets 2,148
Contributions unrestricted 3,460
Contributions temporarily restricted 1,720
Interest income-unrestricted 55
Net assets released-satisfaction of program restriction, unrestricted 1,850
Net assets released-satisfaction of program restriction, temporarily restricted 1,850
Outreach expenses 2,800
College recruitment expense 1,955
Management and general expenses 425
Fund raising expenses 175
Total $11,625 $11,625
Required:
In good form, prepare a Statement of Activities for the organization for the year ended December 31, 2017.
Answers
Answer:
See attached
Explanation:
I have prepared a Statement of Activities for the not-for-profit organization for the year ended December 31, 2017. Please see attached file for the statement.
The Statement of Activities for the not for profit organization for the year ended December 31, 2017 is prepared in good form. It has been found from the Statement of Activities that the total change in net assets from restricted and unrestricted activities are $9,577 and $2,813 respectively.
What is a not-for-profit organization?A nonprofit organisation is one that meets the IRS's criteria for tax-exempt status because its mission and purpose are to advance a social cause and provide a public benefit. Hospitals, universities, national charities, and foundations are examples of nonprofit organizations.
A statement of activities quantifies a non-profit entity's revenue and expenses for a given reporting period. This is the non-profit version of the income statement, which is used to report a for-profit company's financial results.
Therefore, Statement of Activities for the not for profit organization for the year ended December 31, 2017 is attached below.
To learn more about not-for-profit organization, click here:
https://brainly.com/question/29848054
#SPJ5
In November 2006, Citigroup's stock (NYSE: C) was trading at $49.59. Following the credit crisis of 2007-2008 and by the end of October 2009, Citigroup's stock price had plummeted to $4.27. Several banks went under, and others saw their stock prices lose more than 60% of their value. Based on your understanding of stock prices and intrinsic values, which of the following statements is true?
A) A stock's intrinsic value is based on true risk in the company
B) A stock's market price is based only on true investor returns.
You can estimate the value of a company's stock using models such as the corporate valuation model and the dividend discount model. Which of the following companies would you choose to evaluate if you were using the discounted dividend model to estimate the value of the company's stock?
A) A company that is in a high-growth stage and plans to retain all its earnings for the next few years to support its growth
B) A company that has been distributing a portion of their earnings every quarter for the past six years
Which of the following describe the reason(s) why maximization of intrinsic stock value benefits society. Check all that apply.
A) Most investors appreciate the risk companies take to maximize their stocks
B) Successful companies benefit consumers
C) Most people have an important stake in the stock market.
D) People like to work for companies that minimize operating costs.
Answers
Answer:
1. A) A stock's intrinsic value is based on true risk in the company
2. B) A company that has been distributing a portion of their earnings every quarter for the past six years
3. B) Successful companies benefit consumers
C) Most people have an important stake in the stock market.
Explanation:
1. ..... Based on your understanding of stock prices and intrinsic values, which of the following statements is true?
A) A stock's intrinsic value is based on true risk in the company.
The Intrinsic value of a stock takes into account the market sentiment of a given stock which means that I shows the riskiness of it.
2. Which of the following companies would you choose to evaluate if you were using the discounted dividend model to estimate the value of the company's stock?
B) A company that has been distributing a portion of their earnings every quarter for the past six years.
The Dividend Discount Model uses constant dividends in calculation of stock price so a company that has been paid dividends is very much Preferred than one that isn't.
3. Which of the following describe the reason(s) why maximization of intrinsic stock value benefits society. Check all that apply.
B) Successful companies benefit consumers
C) Most people have an important stake in the stock market.
Successful companies do indeed benefit consumers as they will pass on their wealth as well as paying workers better to stimulate growth.
Also a lot of people are invested in the stock market. Maximising Intrinsic value thus increases worth.
If you need any clarification do react or comment.
Final answer:
The intrinsic value of a stock is based on the company's true risk, and a company that consistently pays dividends is suitable for the discounted dividend model. Maximizing intrinsic stock value benefits society by benefiting consumers and providing job opportunities.
Explanation:
The correct statement regarding a stock's intrinsic value and market price is A) A stock's intrinsic value is based on true risk in the company. The intrinsic value of a stock is an estimate of its true value based on the company's assets, earnings, and potential growth. On the other hand, a stock's market price is determined by the supply and demand in the stock market and can be influenced by factors beyond the company's fundamentals.
If you were using the discounted dividend model to estimate the value of a company's stock, you would choose option B) A company that has been distributing a portion of their earnings every quarter for the past six years. The discounted dividend model calculates the present value of a stock's future dividends, so a company that consistently pays dividends is more suitable for this valuation method.
The reasons why maximization of intrinsic stock value benefits society are: B) Successful companies benefit consumers, C) Most people have an important stake in the stock market, and D) People like to work for companies that minimize operating costs. Successful companies contribute to the economy, provide jobs, and generate wealth for investors and stakeholders, which ultimately benefits society as a whole.
A goal programming problem had two goals (with no priorities assigned). Goal number 1 was to achieve a profit of $2,400 and goal number 2 was to have no idle time for workers in the factory. The optimal solution to this problem resulted in a profit of $2,300 and no idle time. What was the value for the objective function for this goal programming problem?
Answers
Answer:
100
Explanation:
Goal programming is an optimization technique that allows for multiple, normally conflicting objectives and then attempts to solve each goal sequentially to a satisfactory level. In goal programming, differential variables are being used.
Since the goal programming problem had two goals. Goal number 1 was to achieve a profit of $2,400 and goal number 2 was to have no idle time for workers in the factory. The optimal solution to this problem resulted in a profit of $2,300 and no idle time
This means that goal number 2 was achieved since the optimal solution resulted in no idle time. But goal number 1 was not achieved because a profit of $2300 was achieved in the solution instead of $2400.
Therefore, the value for the objective function for this goal programming problem = 2400 - 2300 = 100
In each of the following situations, state whether the bonds will sell at a premium or discount. Required a. Valley issued $300,000 of bonds with a stated interest rate of 7 percent. At the time of issue, the market rate of interest for similar investments was 6 percent. Premium Discount b. Spring issued $220,000 of bonds with a stated interest rate of 5 percent. At the time of issue, the market rate of interest for similar investments was 6 percent. Discount Premium c. River Inc. issued $150,000 of callable bonds with a stated interest rate of 5 percent. The bonds were callable at 102. At the date of issue, the market rate of interest was 6 percent for similar investments. Discount Premium
Answers
Answer:
a. Premium
b. Discount
c. Discount
Explanation:
a. Valley issued $300,000 of bonds with a stated interest rate of 7 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.
Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 7% - 6% = 1% premium
Therefore, Valley's bond will sell at a premium.
b. Spring issued $220,000 of bonds with a stated interest rate of 5 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.
Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount
Therefore, Spring's bond will sell at a discount.
c. River Inc. issued $150,000 of callable bonds with a stated interest rate of 5 percent. The bonds were callable at 102. At the date of issue, the market rate of interest was 6 percent for similar investments.
Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount
Therefore, River Inc.'s bond will sell at a discount.
Valley's bonds sell at a premium, while Spring's and River Inc.'s bonds sell at a discount.
The valuations of the bonds issued by Valley, Spring, and River Inc. depend on whether the stated interest rates are higher or lower than the market rates. Bonds sell at a premium when the stated interest rate is higher, and at a discount when lower.
When determining whether bonds will sell at a premium or discount, the relationship between the stated interest rate on the bond and the market interest rate is crucial.
Valley issued $300,000 of bonds with a stated interest rate of 7 percent. At the time of issue, the market rate of interest for similar investments was 6 percent. The bonds will sell at a premium because the stated interest rate is higher than the market rate.Spring issued $220,000 of bonds with a stated interest rate of 5 percent. At the time of issue, the market rate of interest for similar investments was 6 percent. The bonds will sell at a discount because the stated interest rate is lower than the market rate.River Inc. issued $150,000 of callable bonds with a stated interest rate of 5 percent. The bonds were callable at 102. At the date of issue, the market rate of interest was 6 percent for similar investments. The bonds will sell at a discount because the stated interest rate is lower than the market rate.Premium and Discount Definition
Premium: Bonds sell at a premium when the stated interest rate is higher than the market rate because they offer higher returns.
Discount: Bonds sell at a discount when the stated interest rate is lower than the market rate because they offer lower returns.
There are many roles and responsibilities entailed in the management and identification of risks and the enforcement of policies related to information security. One such role is ________________, which has the responsibility of enforcing policies at the employee level.
Answers
Answer:
front-line manager/supervisor
Explanation:
Front-line manager-
It refers to the person responsible to look after the primary production activities of the company, is referred to as a front line manger or supervisor.
They helps the other employees by motivating other people to perform the given task with utmost sincerity and hard work, which helps to produce more production, which helps the company to grow and flourish.
From the given question,
As there are various task and activity which need to be done by the company, the front-line manger helps to perform the duties at the employee level.
The Information System Security Officer (ISSO) is responsible for enforcing policies at the employee level related to information security. This role includes mandatory compliance, training, dealing with the user domain, and balancing security with privacy concerns. The ISSO has a critical part in establishing a secure environment within the company.
The role responsible for enforcing policies at the employee level within an organization is often referred to as the Information System Security Officer (ISSO) or a similar position. This role is crucial in managing and identifying risks associated with information security by collecting important data, ensuring compliance with company policies, and overseeing training programs for both new hires and existing employees. The ISSO is also tasked with maintaining the balance between enforcing security policies and minimizing regulatory burdens or privacy intrusions. Moreover, employees are expected to play an active part in maintaining security and safety by adhering to professional and ethical communication protocols and reporting incidents or unsafe conditions. Therefore, the ISSO's responsibilities extend to creating an environment where employees understand their role in the security posture of the company.
An essential aspect of the ISSO's job is to work with the user domain, which includes all employees and users who have access to organizational systems. The ISSO has to educate and manage these individuals to protect the company against threats that may arise from user actions or negligence. Additionally, ISSO must guide the organization in implementing workplace harassment policies, safety training, and other strategic policies that target overall organizational security.
David Desgro hired Paul Pack to inspect a house that Desgro wanted to buy. Pack had Desgro sign a standard-form contract that included a twelve-month limit for claims based on the agreement. Pack reported that the house had no major problems, but after Desgro bought it, he discovered issues with the plumbing, insulation, heat pump, and floor support. Thirteen months after the inspection, Desgro filed a suit in a Tennessee state court against Pack. Was Desgro’s complaint filed too late, or was the contract’s twelve-month limit unenforceable? Discuss. [Desgro v. Pack, 2013 WL 84899 (Tenn.App. 2013)] (See Adhesion Contracts and Unconscionability.) Miller, Roger LeRoy. Business Law: Text & Cases - The First Course - Summarized Case Edition (p. 274). Cengage Learning. Kindle Edition.
Answers
Answer:
Desgro’s complaint was filed too late. With this being stated, the suit would be dismissed because the contract explicitly states that complaints have to be within the 12 month timespan.
Explanation:
Desgro’s complaint was filed too late. With this being stated, the suit would be dismissed because the contract explicitly states that complaints have to be within the 12 month timespan due to the fact that Desgro discovered issues with the plumbing, insulation, heat pump, and floor support after buying the house in which he decided to filled a suit in a Tennessee state court against Pack after Thirteen months which was after the inspection and after signing the standard-form contract that included a twelve-month limit for claims based on the agreement which is why the suit would be dismissed because the contract explicitly states that complaints have to be within the 12 month timespan which Desgro failed to comply with.
Final answer:
The case of Desgro v. Pack revolves around the enforceability of a contract clause limiting the time for filing claims. Contracts can include terms that restrict rights, but courts can deem such terms unenforceable if they're unreasonable or unconscionable. Understanding contract terms is crucial for legal protection.
Explanation:
The legal issue at hand involves whether David Desgro's complaint against Paul Pack for inspection deficiencies was filed too late, based on a twelve-month claim limit in their contract. In Desgro v. Pack, the court had to determine the enforceability of a standard-form contract's clause that limited the time for filing claims. Contracts, especially standard-form contracts, can include clauses that seem to restrict rights; however, the enforceability of such clauses can be challenged on grounds such as unconscionability or being against public policy.
In general, parties to a contract are bound by its terms, including any limitations on the time to file a lawsuit. However, if such a limitation is found to be unreasonable or unconscionable, or if it significantly undermines the rights of one party, a court may deem it unenforceable. The background of this question underscores the importance of understanding contract terms thoroughly before agreement and the legal protections that can come into play when a party feels aggrieved under a contract.
Narrative 1: Freshplace Grocery At Freshplace Grocery, customers give their purchases to a sales clerk along with cash. The sales clerk enters the sale in a cash register and puts the money in the register drawer. At the end of the day, the sales clerk gives the cash and the register tape to the cashier. The cashier reconciles the cash and the tape to make sure all of the cash is present.
Create a physical DFD based on the narrative
Answers
Answer:
See the attaches file for the DFD
Explanation:
A data flow diagram (DFD) is a graphical representation of the flow of information through a system or an organisation. An information can well be represented using a data flow diagram.
See the attached file for the DFD
Postponement is:
a. not very effective if a small fraction of demand comes from a single product.
b. effective even if a large fraction of demand comes from a single product.
c. only effective if a large fraction of demand comes from a single product.
d. not very effective if a large fraction of demand comes from multiple products.
Answers
Answer:
A. Not very effective if a small fraction of demand comes from a single product.
Explanation:
Postponement is known to be a business strategy that maximizes possible benefits and minimizes possible risks by holding on or delaying in n investment.
Its concept entails in supply chain management where the manufacturer produces a generic product, which can be modified at the later stages before the final transport to the customer.
A risk exposure is defined as the impact to the organization when a situation transpires. The widely accepted formula for calculating exposure is as follows: Risk exposure =________________ the event will occur + ____________ if the event occurs where, outcome likelihood, impact how, impact likelihood, cost
Answers
Answer:
Likelihood, impact
Explanation:
Risk exposure is defined as an estimation of future loss that can be experienced when a particular line of action is taken. There is ranking of risks according to the likelihood of them occuring multiplied by potential loss if the risk occurs.
The formula for risk exposure is the likelihood that an event will occur plus impact if the event occurs.
For example if an investor invests $1,000 in a high risk investment, he stand s the chance of losing the whole of the capital invested.
Final answer:
The formula for risk exposure is the sum of the likelihood that an event will occur and the impact if it does. Risk exposure = likelihood the event will occur + impact if the event occurs
Explanation:
The widely accepted formula for calculating risk exposure is as follows: Risk exposure = likelihood the event will occur + impact if the event occurs. In the context of public health and epidemiology, relative risk is calculated by dividing the incidence of the health event for the exposed group by the incidence of the health event in the unexposed group:
RR = incidence of outcome in exposed group / incidence of outcome of non-exposed group
An RR value greater than one indicates an increased risk associated with exposure to the risk factor. For example, a RR of 3.25 means the exposed group is 3.25 times more likely to have the health event than the non-exposed group.
Risk management often includes assessing different types of investment risks such as default risk and interest rate risk which can affect the expected rate of return. A high-risk investment will have actual returns that fluctuate significantly from the expected rate, whereas a low-risk investment typically yields returns closer to the expected rate annually.
The ending inventory has 83,000 units, which are 100 percent complete for Department R costs. Required: a. Assume that Saline Solutions used weighted-average process costing and that the cost per equivalent unit for May for materials in Department S is $6.40 and for conversion costs it is $2.40. Prepare a production cost report for Saline Solutions' Department S for the month of May. b. What is the cost of product transferred out of Department S for May
Answers
Answer:
Total unit cost $8.80
Total Costs Transferred out $730,400
Explanation:
In Process Costing we find the individual unit costs and total costs transferred by multiplying it with the equivalent no of units.
As the units are 100 percent complete the Equivalent units are 83,000 units for both materials and conversion.
Saline Solutions
Weighted-Average Process
Materials in Department S $6.40
Conversion costs Department S $2.40
Total unit cost $8.80
Total No of units 83,000
Total Costs $8.80
Total Cost Transferred Out $730,400
Total Costs Transferred to Materials = $ 6.4 * 83,000=$ 531200
Total Costs Transferred to Conversion = $ 2.4 * 83,000=$ 199200
Total Costs Transferred= $ 531200+$ 199200= $ 730400
On January 2, 2018, Bonita Industries issued at par $2020000 of 5% convertible bonds. Each $1000 bond is convertible into 10 shares of common stock. No bonds were converted during 2018. Bonita had 197000 shares of common stock outstanding during 2018. Bonita’s 2018 net income was $902000 and the income tax rate was 25%. Bonita’s diluted earnings per share for 2018 would be (rounded to the nearest penny
Answers
Answer:
Bonita’s diluted earnings per share for 2018 would be $3,80
Explanation:
Step 1 Calculate the Basic Earnings Per Share
Basic Earnings Per Share = Income Attributable to Common Stockholders / Weighted Average Number of Common Stocks
Income Attributable to Common Stockholders
Net income $902000
less Interest on bonds ($2020000×5%)×75% ($75,750)
Income Attributable to Common Stockholders $826,250
Basic Earnings Per Share =$826,250 / 197000
=$4,19
Step 1 Calculate the Diluted Earnings Per Share
Diluted Earnings Per Share =Adjusted Income Attributable to Common Stockholders / Adjusted Weighted Average Number of Common Stocks
Adjusted Income Attributable to Common Stockholders
Income Attributable to Common Stockholders $826,250
Add Interest on bonds ($2020000×5%)×75% ($75,750)
Income Attributable to Common Stockholders $826,250
Adjusted Weighted Average Number of Common Stocks
common stock outstanding 197000
add convertible bond ( $2020000/$1000×10 shares) 20200
Weighted Average Number of Common Stocks 217200
Diluted Earnings Per Share = $826,250/217200
= $3,80
NewKirk Inc.., is an unlevered firm with expected annual earnings before taxes of $21 million in perpetuity. The current required return on the firm's equity is 16 percent, and the firm distributes all of its earnings as dividends at the end of each year. The company has 1.3 million shares of common stock outstanding and is subject to a corporate tax rate of 35 percent. The firm is planning a recapitalization under which it will issue $30 million of perpetual 9 percent debt and use the proceeds to buy back shares. What is cash flows available to equity holders after recapitalization?
Answers
Answer:
$11,895,000
Explanation:
Expected annual earnings before tax = $21,000,000
Debt issue = $30,000,000
Interest rate = 9%
Annual Interest expenses = $30,000,000 × 9%
= $2,700,000
EBT = EBIT - Interest expenses
= $21,000,000 - $2,700,000
= $18,300,000
Net income = $18,300,000 × (1 - 35%)
= $11,895,000
Cash flows available to equity holders after recapitalization will be $11,895,000.
Delta Corporation has a bond issue outstanding with an annual coupon interest rate of 7 percent and 4 years remaining until maturity. The par value of the bond is $1,000. Determine the current value of the bond if present market conditions justify a 14 percent required rate of return. The bond pays interest annually.
Answers
Answer:
The current value of the bond is $796.04
Explanation:
The current value of a bond is the present value of all the cash inflows expected from the bond in the form of an annuity of interest payments and the term end face value payment discounted by the required rate of return or market interest rates. Thus, the current price of this bond will be,
Interest payment from the bond per year = 1000 * 0.07 = $70
The present value of ordinary annuity formula is attached in the answer.
Price = 70 * [ (1 - (1+0.14)^-4) / 0.14 ] + 1000 / (1.14)^4
Price of the bond = $796.04
On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available: Sales, January 1 through July 8 $ 695,000 Inventory, January 1 140,000 Purchases, January 1 through July 8 655,000 Gross profit ratio 30 % What is the estimated inventory on July 8 immediately prior to the fire
Answers
Answer:
$308,500
Explanation:
The computation of estimated inventory is given below:-
Cost of Goods Available = Beginning Inventory + Net Purchases
= $140,000 + $655,000
= $795,000
Cost of goods Sold = (100 - 30) ÷ 100 × $695,000
= $486,500
Ending Inventory = Cost of goods available - Cost of good sold
= $795,000 - $486,500
= $308,500
Therefore for computing the ending inventory we simply deduct the cost of goods sold from cost of goods available.
: On January 1, 2012, Smeder Company, an 80% owned subsidiary of Collins, Inc. transferred equipment with a 10-year life (six of which remain with no salvage value) to Collins in exchange for $84,000 cash. At the date of transfer, Smeder's records carried the equipment at a historical cost of $120,000 less accumulated depreciation of $48,000. Straight-line depreciation is used. Smeder reported net income of $28,000 for 2012 and 2013, respectively. Prepare the consolidation entries related to the equipment for year 2012 and year 2013
Answers
Answer:
See the explanation below
Explanation:
Net book value (NBV)) = $120,000 - $48,000 = $72,000
Unrealized profit on sales of equipment = Selling price - NBV = $84,000 - $72,000 = $12,000
Annual depreciation = $120,000/10 = $12,000
Overcharged depreciation included = $12,000 * 10% = $1,200
Consolidation entries in 2012:
Details Dr ($) Cr ($)
Depreciation expenses 1,200
Reserve account 10,800
Equipment 12,000
Being the unrealized profit on equipment
Accumulated depreciation 12,000
Depreciation expenses 12,000
Being the depreciation charge for the year 2012
Consolidation entries in 2013:
Details Dr ($) Cr ($)
Accumulated depreciation 12,000
Depreciation expenses 12,000
Being the depreciation charge for the year 2013
Cycle Wholesaling sold merchandise on account, with terms n/60, to Sarah’s Cycles on February 1 for $1,250 (cost of goods sold of $725). On February 9, Sarah’s Cycles returned to Cycle Wholesaling one-quarter of the merchandise from February 1 (cost of goods returned was $195). Cycle Wholesaling uses a perpetual inventory system, and it allows returns only within 15 days of initial sale. Required: 1. to 3. Prepare the journal entry to record the sales, Goods returned on February 9 and Cash collected on March 2. 4. Calculate the gross profit percentage for the sale to Sarah’s Cycles.
Answers
Answer and Explanation:
Cycle Wholesaling
1. Journal entry
Dr Accounts receivable 1,250
Cr Sales revenue 1,250
Dr Cost of goods sold 725
Cr Inventory 725
2. Journal entry
Dr Cash 1,225
(98%×1250)
Dr Sales discounts 25
(2%×1250)
Cr Accounts receivable 1,250
3.
Dr Cash 1,250
Cr Account receivable 1,250
4.
Gross profit
percentage /Net sales *100
500/1,225*100
=40.81
Gross profit percentage 40.81 %
$1,250– 725– (2% × $1,250) =500
= $1,250 – (2% × $1,250) = 1,225
Final answer:
Cycle Wholesaling's journal entries would reflect the sale, the return of goods, and the collection of cash. Additionally, the gross profit percentage is calculated by subtracting the adjusted cost of goods sold from sales revenue after the return and dividing by the final sales revenue, then multiplying by 100.
Explanation:
When Cycle Wholesaling sold merchandise to Sarah’s Cycles on February 1 for $1,250, the journal entry to record the sale on account with terms n/60 would debit Accounts Receivable and credit Sales Revenue. On February 9, when one-quarter of the merchandise was returned, the entry would debit Sales Returns and Allowances and credit Accounts Receivable to reflect the return. For cash collected on March 2, the entry would debit Cash and credit Accounts Receivable for the amount received after the return.
The merchandise returned had a cost of $195, which is one-quarter of the original cost ($725), indicating that the cost of goods sold originally was correctly reduced by the cost of goods returned. To calculate the gross profit percentage for the sale to Sarah’s Cycles, take the gross profit (sales revenue minus cost of goods sold after return) divided by the final sales revenue (after return) and multiply by 100 to get the percentage.
The Rule of 70 applies in any growth rate application. Let’s say you have $1000 in savings and you have three alternatives for investing these funds.
A savings account earning 1% interest per year.
A U.S. Treasury bond mutual fund earning 3% interest per year.
A stock market mutual fund earning 8% interest per year.
How long would it take to double your savings in each of these 3 accounts?
Answers
Using the Rule of 70, it would take approximately 70 years for savings to double at a 1% interest rate, about 23.33 years at a 3% rate, and about 8.75 years at an 8% rate.
The Rule of 70 is a simple way to estimate the number of years it will take for an investment to double at a given interest rate. By dividing 70 by the interest rate, you get the approximate time in years for the money to double due to compound interest. Let's apply the Rule of 70 to the three investment options provided:
A savings account earning 1% interest per year: 70 / 1 = 70 years
A U.S. Treasury bond mutual fund earning 3% interest per year: 70 / 3 = approximately 23.33 years
A stock market mutual fund earning 8% interest per year: 70 / 8 = 8.75 years
The results show that the stock market mutual fund offers the quickest growth with the savings account being the slowest. It's important to note that actual interest may vary and investments come with varying levels of risk.
You manage a plant that mass-produces engines by teams of workers using assembly machines. The technology is summarized by the production function qequals5KL where q is the number of engines per week, K is the number of assembly machines, and L is the number of labor teams. Each assembly machine rents for requals$10 comma 000 per week, and each team costs wequals$5 comma 000 per week. Engine costs are given by the cost of labor teams and machines, plus $3 comma 000 per engine for raw materials. Your plant has a fixed installation of 5 assembly machines as part of its design. The total cost of producing q units of output (TC) is:
Answers
Answer:
$2200
Explanation:
will be Lq25.The total cost function is thus given by the sum of the costs of capital, labor, and rawmaterials:TC(q) = rK +wL +2000q = (10,000)(5) + (5,000)(q25) + 2,000 qTC(q) = 50,000 +2200q.The average cost function is then given by:AC(q) TC ( q ) q 50,000 2200 q q . and the marginal cost function is given by: MC ( q ) TC q 2200.
A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building: Purchase price of the land $ 570,000 Sale of salvaged parts already on land $ 23,000 Demolition of the old building $ 33,000 Ground-breaking ceremony (food and supplies) $ 2,100 Land preparation and leveling $ 7,300 What amount should be recorded for the purchase of the land
Answers
Answer:
$582,100
Explanation:
Cost of land $570,000
Less;Salvage parts sold ($23,000)
Demolition of old building $33,000
Land preparation and leveling $2,100
Total cost of land $582,100
The ground breaking ceremony expenses are not capital expenditures therefore ignored in above working.
Brianna needs to get her employee, Devon, to perform as best as possible. Devon is a nice person and very willing to work hard, though he lacks certain skills that make him able to do his job at the level Brianna would like. Given this situation, what leadership style should Brianna use, according to Hersey and Blanchard’s model?
Answers
Answer:
Selling style
Explanation:
Hersey and Blanchard’s model states that leaders have to adapt their styles to the followers and their skills and it established 4 leadership styles:
-Telling style: It is used when the follower is unable to perform the tasks and unwilling to do it so the leader needs to provide directions and explain the consequences of not doing the tasks.
-Selling style: It is used when the follower is willing but unable to perform the tasks and the leader has to be supportive to help the followers to be confident.
-Delegating style: It is used when the follower is willing and able to perform the tasks and the leader provides autonomy but gives support if it is required.
-Participating style: Follower is able but unwilling to perform the tasks and the leader allows the follower to perform the job and focuses on motivating the person.
According to this, the leadership style that Brianna should use according to Hersey and Blanchard’s model is the selling style because Devon is willing but unable to perform the job at the level Brianna would like.
Final answer:
For an employee like Devon with high commitment but low competence, Brianna should use a coaching leadership style according to Hersey and Blanchard's SLT to provide high directive and supportive behaviour to enhance his performance.
Explanation:
According to Hersey and Blanchard's Situational Leadership Theory (SLT), a leader must adapt their style to fit the development level of the follower they are trying to influence. In the case of Brianna and her employee, Devon, who has a willingness to work hard (high commitment) but lacks certain skills (low competence), Brianna should utilize a coaching leadership style. This style involves a high level of directive behaviour to compensate for the employee's lack of competence, as well as a high level of supportive behaviour due to the employee's commitment. By using a coaching approach, Brianna will provide the guidance Devon requires to perform his tasks effectively while also fostering his skills development, which would involve more interaction and input solicitation compared to a strictly directive approach.
According to GAAP, the disclosure of accounting policies adopted by a reporting entity is important to financial statement readers in determining whether accounting policies are consistently applied from year to year. net income for the year. the value of obsolete items included in ending inventory. whether the working capital position is adequate for future operations.
Answers
Answer:
A. whether accounting policies are consistently applied from year to year.
Explanation:
Accounting policies need to be disclosed to ensure proper understanding of financial statements, it is necessary that all significant accounting policies adopted in the preparation and presentation of financial statements must be disclosed. Any change in an accounting policy that has a significant effect should be disclosed. Also to disclose significant accounting policies; Such disclosure helps users of financial statements (e.g., investors, creditors, vendors) to understand how particular accounting principles were used in preparing the company's financial statements.
On May 1 comma 2019May 1, 2019, JasperJasper Company purchased inventory costing $ 95 comma 000$95,000 by signing aa 66%, nine-month, short-term note payable. JasperJasper will pay the entire note (principal and interest) on the note's maturity date. Journalize the company's (a) purchase of inventory; and (b) accrual of interest on the note payable on November 31 comma 2019November 31, 2019. (Record debits first, then credits. Exclude explanations from any journal entries.)
Answers
Answer:
(a) Journals to record the purchase of inventory:
Debit Inventory $95,000
Credit Note payable $95,000
(To record the purchase of inventory)
(b) Accrual of interest on the note payable on November 31, 2019:
Debit Interest expense $47,025
Credit Interest payable $47,025
(Total interest accrual on notes)
Explanation:
Note receivable is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.
The interest expense on the notes is calculated as: Principal x Interest Rate x Time
In this case, the total interest expense is $95,000 x 66%/12 x 9 months = $47,025.
Monthly interest expense is $47,025 / 9 months = $5,225.
For accrual purpose, Jasper Company would be recording the following journals on a monthly basis before the actual cash payment:
Debit Interest expense $5,225
Credit Interest payable $5,225
(Monthly recognition of interest expense on notes)
Final answer:
The student's question involves journalizing a purchase of inventory on credit and the subsequent accrual of interest on the note payable. The inventory purchase is recorded as a debit to Inventory and a credit to Notes Payable, while interest is accrued as a debit to Interest Expense and a credit to Interest Payable, calculated based on the principal, the interest rate, and the period.
Explanation:
The question posed involves recording accounting transactions based on the accrual accounting principle. Jasper Company's purchase of inventory and the associated note payable highlight the need for businesses to journalize transactions when they occur and account for interest accrual, in adherence to the matching principle in accounting.
Journal Entry for Purchase of Inventory
(a) May 1, 2019
Inventory $95,000
Notes Payable $95,000
This entry records the purchase of inventory by debiting inventory and crediting notes payable.
Journal Entry for Accrual of Interest
(b) November 31, 2019 (Assuming this is a typo and should be November 30, 2019)
Interest Expense (to be calculated)
Interest Payable (to be calculated)
To calculate the interest expense, the following formula is used: Principal ($95,000) × Annual Interest Rate (6%) × Time in Terms of Year (7/12 months since the purchase until November 30). The result would be the interest expense for the seven months, which would be debited to Interest Expense and credited to Interest Payable.
Overland Corporation is authorized to issue 250,000 shares of $1 par value common stock. During 2020, Overland Corporation took part in the following selected transactions.
1. Issued 55,000 shares of stock at $76 per share, less costs related to the issuance of the stock totaling $27,000.
2. Issued 10,000 shares of stock for land appraised at $815,000. The stock was actively traded on a national stock exchange at approximately $78 per share on the date of issuance.
3. Purchased 6,000 shares of treasury stock at $74 per share. The treasury shares purchased were issued in 2009 at $46 per share.
Required:
(a) Prepare the journal entry to record item 1.(b) Prepare the journal entry to record item 2.(c) Prepare the journal entry to record item 3 using the cost method.
Answers
Answer:
See attached file
Explanation:
Ray's Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 2,000 units. His cost to carry one unit is $105 per year per unit, and he has estimated that each order costs $35 to place. Using the EOQ model, how many should Ray order each time
Answers
Answer:
The EOQ is 37 units that is rounded off to the nearest whole unit.
Explanation:
The economic order quantity or EOQ is the number of units that should be ordered each time to minimize the cost of ordering and holding the inventory. The EOQ can be calculated using the following formula,
EOQ = √(2 * D * O) / H
Where,
D is the annual demand in unitsO is the ordering cost per orderH is the holding cost per unit per yearEOQ = √(2 * 2000 * 35) / 105
EOQ = 36.51 units rounded off to 37 units
NextLinx Corporation provides a wide range of strategic implementation services for small- and medium-sized organizations. It allows all trading partners to collaborate in a single online location, using the same information and processes. Therefore, NextLinx is an example of a(n) ____________.
Answers
Answer:
The correct answer is: e-commerce enabler.
Explanation:
An e-commerce enabler is an online-based business that allows other individuals and businesses to offer their products as part of the enabler's webpage. The e-commerce enabler acts as a mall where different stores offer their goods without the need of having a correlation. One of the most famous e-commerce enabler worldwide is Alibaba.
A nonprofit organization has generated a following of people who have created websites about the organization. Most of these sites are positively-inclined toward the organization; only a few are negative. The organization begins to buy up some of these sites (mostly the positive sites) and redirecting these URLs to their own home URL. What is the downside of this strategy
Answers
Answer: b) By redirecting the URLs, those URLs will no longer rank independently on search engines, moving other (potentially negative) sites up higher in the rankings
Explanation:
The Non-profit Organization is shooting itself in the foot by purchasing the more positive sites and then setting them up in such a way that they will be redirected to their home page.
This is because when sites merely redirect, they lose their independence ranking. As this happens their place will be taken on search engines.
Seeing as the Nonprofit did this more with positive sites, there is a high chance that the sites that will replace those positive sites will be negative sites meaning that when people search for the Organization, they might see more negative information.
The downside of buying up positive websites and redirecting them to the organization's own URL is a potential reputation damage and missed opportunity for diverse perspectives.
Explanation:The downside of the nonprofit organization buying up positive websites and redirecting them to their own URL is that it may be perceived as manipulative and deceptive. This could damage the organization's reputation and undermine the trust of its supporters. Additionally, by redirecting URLs, the organization may miss out on the opportunity to engage with the diverse perspectives and feedback of their supporters.
Learn more about Nonprofit organization's website redirection strategy here:https://brainly.com/question/5584094
#SPJ12
The ending balance of accounts receivable was $74,000. Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $359,000. Sales reported on the income statement were $385,500. Based on this information, the beginning balance in accounts receivable was:
Answers
Answer:
The beginning balance in accounts receivable was: $47,500
Explanation:
Sales reported on the income statement were $385,500, Accounts receivable increased of $385,500 during the period.
Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $359,000. The company collected $359,000 from the sales. Accounts receivable decreased of $359,000 during the period.
The beginning balance in accounts receivable = The ending balance of accounts receivable + Accounts receivable decreased during the period - Accounts receivable increased during the period = $74,000 + $359,000 - $385,500 = $47,500
Final answer:
To find the beginning balance of accounts receivable, we used the accounting equation: Beginning Accounts Receivable + Sales on Credit - Cash Collected = Ending Accounts Receivable. With the given data, the calculation indicated that the beginning balance was $47,500.
Explanation:
The question requires us to calculate the beginning balance of accounts receivable using the given ending balance of accounts receivable, cash basis sales, and the income statement sales. To do so, we can use the following formula derived from accrual accounting principles:
Beginning Accounts Receivable + Sales on Credit - Cash Collected from Customers = Ending Accounts Receivable
In this particular case, we know the following:
Ending Accounts Receivable = $74,000,Sales on Credit (Income Statement Sales) = $385,500,Cash Collected from Customers (Sales adjusted to cash basis) = $359,000.Turning this information into an equation, we get:
Beginning Accounts Receivable + $385,500 - $359,000 = $74,000
Solving this equation for the beginning balance :
Beginning Accounts Receivable = $74,000 + $359,000 - $385,500
Beginning Accounts Receivable = $47,500
Thus, the beginning balance in accounts receivable was $47,500.
Engineworks Co. provides the following fixed budget data for the year: Sales (20,000 units) ……………………………. $600,000 Cost of sales: Direct materials …………………………….. $200,000 Direct labor ………………………………… 160,000 Variable overhead ………………………….. 60,000 Fixed overhead …………………………….. 80,000 500,000 Gross profit ……………………………………. $100,000 Operating expenses: Fixed ……………………………………….. $12,000 Variable ……………………………………. 40,000 52,000 Income from operations ……………………….. $ 48,000 The company's actual activity for the year follows: Sales (21,000 units) ……………………………. $651,000 Cost of goods sold: Direct materials …………………………….. $231,000 Direct labor ………………………………… 168,000 Variable overhead ………………………….. 73,500 Fixed overhead …………………………….. 77,500 550,000 Gross profit ……………………………………. $101,000 Operating expenses: Fixed ………………………………………. 12,000 Variable ……………………………………. 39,500 51,500 Income from operations ………………………. $ 49,500 Required: Prepare a flexible budget performance report for the year using the contribution margin format. (15 points, please label your answer in the flexible budget format)
Answers
Answer:
Flexible Contribution Margin 147,000
Actual Contribution Margin 139,000
Variance 8000 unfavorable
Explanation:
Engine Works Company
Flexible Budget Performance Report
For the year using the Contribution Margin Format
Actual Static Flexible
(21,000 units) (20,000 units) (21,000 units)
Sales …$651,000 $600,00 630,000 Fav
V. Cost of goods sold: 512,000 $ 460,000 483,000 Unfav
Direct materials .$231,000 $200,000 210,000
Direct labor 168,000 160,000 168,000
Variable overhead 73,500 60,000 63,000
Variable Operating Expenses 39,500 40,000 42,000
Contribution Margin $139,000 140,000 147,000 Unfav
Fixed Expenses
Fixed Operating Expenses 12,000 12000 12000
Fixed overhead 77,500 80,000 84,000
Income from operations $ 49,500 $ 48,000 $51,000 Fav
Working
Flexible Calculations = (600,000/20,000)*21,000= $ 630,000
V. Cost of goods sold= ($ 460,000 /20,000)*21,000= 483,000
Direct materials . = $200,000 /20,000)*21,000= 210,000
Direct labor = 160,000/20,000)*21,000= 168,000
Variable overhead = 60,000 /20,000)*21,000= 63,000
Variable Operating Expenses = 40,000 /20,000)*21,000= 42,000
All calculations are carried out in the same way. Dividing the amount in the given budget with the number of units and multiplying it with actual number of units.
Flexible Contribution Margin 147,000 and Actual Contribution Margin 139,000 which shows a Variance of 8000 which is unfavorable.
Consider the relationship between monopoly pricing and price elasticity of demand. If demand is inelastic and a monopolist raises its price, total revenue would and total cost would , causing profit to . Therefore, a monopolist will produce a quantity at which the demand curve is inelastic. Use the purple segment (diamond symbols) to indicate the portion of the demand curve that is inelastic. (Hint: The answer is related to the marginal-revenue (MR) curve.) Then use the black point (plus symbol) to show the quantity and price that maximizes total revenue (TR). Inelastic Demand Max TR 0 1 2 3 4 5 6 7 8 9 10 10 9 8 7 6 5 4 3 2 1 0 -1 -2 -3 -4 -5 Price Quantity Demand Marginal Revenue
Answers
Answer:
itll be 10
Explanation:
because on how itll show for the energy on demand
When a monopolist faces inelastic demand and increases the price, total revenue increases, and profits could potentially rise, assuming costs remain constant. A monopolist chooses to produce a quantity at which demand is inelastic because this maximizes total revenue. The point of maximized total revenue corresponds to where marginal revenue equals marginal cost.
Explanation:With respect to inelastic demand, when a monopolist raises its prices, total revenue would increase because the percentage change in quantity demanded is less than the percentage change in price. In contrast, total cost would not necessarily change unless the monopolist's supply or production costs also change. This scenario could cause profits to increase, assuming that costs remain constant.
Now, a monopolist will produce a quantity at which demand is inelastic to increase total revenue. This portion of the demand curve is often at lower quantities where consumers are less responsive to price changes. The marginal-revenue (MR) curve plays a significant role here, with the monopolist maximizing revenue where MR=0. Remember, inelastic demand occurs when the absolute value of the price elasticity of demand is less than 1.
So, using the purple segment (diamond symbols) for indicating the inelastic part of the demand curve, there will often be on the steeper upper portion of the curve. The black point (plus symbol) that shows the quantity and price maximizing total revenue (TR) will be where marginal revenue (MR) equals marginal cost (MC) - this is also the profit-maximizing point for the monopolist.
Learn more about Monopoly and Inelastic Demand here:https://brainly.com/question/31802801
#SPJ2
Assume a parent company acquired 80% of the outstanding voting common stock of a subsidiary on January 1, 2018. On the acquisition date, the identifiable net assets of the subsidiary had fair values that approxi-mated their recorded book values except for a patent, which had a fair value of $200,000 and no recorded book value. On the date of acquisition, the patent had five years of remaining useful life and the parent com-pany amortizes its intangible assets using straight line amortization. During the year ended December 31, 2019, the subsidiary recorded sales to the parent in the amount of $240,000. On these sales, the subsidiary recorded pre-consolidation gross profits equal to 25%. Approximately 30% of this merchandise remains in the parent’s inventory at December 31, 2019. The following summarized pre-consolidation financial state-ments are for the parent and the subsidiary for the year ended December 31, 2019:
Answers
Answer:
Explanation:
The file attached shows the full question
The picture attached shows the solution to the problem