Solution:
S.NO. Accounts title and Explanations Debit Credit
1 Cash $25,000
Accumulated Depreciation- Machine A $63,960
Gain on Dispose: $10,400
Machine A $78,560
Accumulated Depreciation - Machine B $16,500
Loss on Disposal $10,700
Machine B $27,200
Note: -When the net value of the commodity disposed of is smaller than the amount paid, there is a benefit. If the worth of the book is MOT, there is a cost.
The dividend policy of Berkshire Gardens Inc. can be represented by a gradual adjustment to a target dividend payout ratio. Last year Berkshire had earnings per share of $3.00 and paid a dividend of $0.60 a share. This year it estimates earnings per share will be $4.00. Find its dividend per share for this year if it has a 25% target payout ratio and uses a five-year period to adjust its dividend.
The dividend per share for this year can be calculated using the target payout ratio and estimated earnings per share. In this case, the dividend per share is $1.00.
Explanation:To find the dividend per share for this year, we need to calculate the target dividend payout based on the target payout ratio and estimated earnings per share.
The target dividend payout ratio is 25%, which means the company aims to distribute 25% of its earnings as dividends.
The estimated earnings per share for this year is $4.00.
So, the dividend per share for this year can be calculated as:
= $4.00 * 0.25
= $1.00
Therefore, the dividend per share for this year is $1.00.
Berkshire Gardens Inc.'s dividend per share for this year, considering a five-year adjustment period to a 25% payout ratio with estimated earnings per share of $4.00, is $0.68.
To calculate the dividend per share for this year:
Last year, earnings per share (EPS) were $3.00 and the dividend was $0.60 per share.This year, the estimated EPS is $4.00.The target payout ratio is 25%, so the target dividend would be 0.25 × $4.00 = $1.00 per share.However, the company uses a five-year period to adjust its dividend.Last year's dividend was $0.60, and the target dividend was $1.00. The adjustment needed is $1.00 - $0.60 = $0.40.Over five years, the annual adjustment is $0.40 / 5 = $0.08.Therefore, the dividend per share for this year will be $0.60 + $0.08 = $0.68.Contingency questions
a. Questions in a questionnaire that allow the respondent to answer in his or her own words.
b. Sets of questions in a questionnaire that use the same set of response categories.
c. Questions in a questionnaire that force the respondent to select from a list of possible responses.
d. Questions in a survey that depend on the responses to earlier questions or which have questions dependent on them.
Answer: d. Questions in a survey that depend on the responses to earlier questions or which have questions dependent on them.
Explanation: Questions in surveys are chief tools used in the collection of necessary information from the respondents. Contingency questions as a type of survey questions depend on the responses to earlier questions or which have questions dependent on them. They are answered only if the respondent gives a particular response to a previously asked question and this helps to avoid asking questions of people that do not apply to them.
Answer:
The correct answer is letter "D": Questions in a survey that depend on the responses to earlier questions or which have questions dependent on them.
Explanation:
Contingency questions are those that come after another dependent question has been answered. Contingency questions explore more details of the first question asked and can only be answered depending on what previous answers were. The first question typically requires a Yes/No answer such as "Are you over age?" or "Do you have a car?". Contingency questions examples would be "How old are you?" or "What color is your car?".
Brief Exercise 11-8 Calculate net cash flows from investing activities (LO11-4) Creative Sound Systems sold investments, land, and its own common stock for $40 million, $16 million, and $42 million, respectively. Creative Sound Systems also purchased treasury stock, equipment, and a patent for $22 million, $26 million, and $13 million, respectively. What amount should the company report as net cash flows from investing activities?
Answer: $17,000,000
Explanation:
Investing Activities in the Cash Flow Statement refers to any cash inflows or outflow that is related to investments as well as the fixed assets and securities of other companies and patents.
In the above question the following are considered investment activities,
Sale of investment and Land
Purchase of Equipment and Patents.
Net Cash = ( Cash Inflows) - (Cash Outflows)
Net Cash = ( 40 million (investment sale) + 16 million ( land sale) ) - ( 26 million (equipment purchase) + 13 million (patent purchase) )
Net Cash = 56,000,000 - 39,000,000
Net Cash = $17,000,000
Net cash flows from investing activities is $17,000,000
Prior to the receipt of the bond proceeds, Oxford needed funds and went to United Southern Bank to borrow $600,000 in bond anticipation notes (BANs), at 5 percent, which were to be paid back using the proceeds of the $2,500,000 bond issue. The entry at the government-wide level to record the receipt of the bond anticipation notes would include a: A. Credit to Other Financing Sources—proceeds of BANs, $600,000. B. Debit to Cash, $1,900,000. C. Credit to Bonds Payable, $600,000. D. Debit to Cash, $600,000.
Answer:
D. Debit to Cash, $600,000.
Explanation:
The journal entry is shown below:
Cash Dr $600,000
To Bond anticipated note payable $600,000
(Being the receipt of the bond is recorded)
For recording this we debited the cash as it increased the asset and credited the bond anticipated note payable as it also increased the liabilities so that the correct posting could be done
According to Milton Friedman, "Business has only one social responsibility – to make profits (as long as it stays within the legal and moral rules of the game established by society). Few trends could so thoroughly undermine the very foundations of our society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible." Explain why you agree or disagree with such a statement.
Answer:
Read answer carefully
Explanation:n a 1970 Times magazine article, the economist Milton Friedman argued that businesses' sole purpose is to generate profit for shareholders. Moreover, he maintained, companies that did adopt "responsible" attitudes would be faced with more binding constraints than companies that did not, rendering them less competitive.
The occasion of Friedman's passing last week offers an opportunity to revisit that argument. It remains the basis for many companies' contention today that "corporate social responsibility," "sustainable business," and other such monikers are a distraction from their core obligation: to act in their shareholders' best interests. That is, acting "responsibly" risks reducing profits or forgoing revenue in the name of social good.
"What does it mean to say that the corporate executive has a 'social responsibility' in his capacity as businessman?" asked Friedman in his 1970 article.
"If this statement is not pure rhetoric, it must mean that he is to act in some way that is not in the interest of his employers. For example, that he is to refrain from increasing the price of the product in order to contribute to the social objective of preventing inflation, even though a price increase would be in the best interests of the corporation. Or that he is to make expenditures on reducing pollution beyond the amount that is in the best interests of the corporation or that is required by law in order to contribute to the social objective of improving the environment. Or that, at the expense of corporate profits, he is to hire 'hardcore' unemployed instead of better-qualified available workmen to contribute to the social objective of reducing poverty.
"In each of these cases, the corporate executive would be spending someone else's money for a general social interest. Insofar as his actions in accord with his 'social responsibility' reduce returns to stockholders, he is spending their money. Insofar as his actions raise the price to customers, he is spending the customers' money. Insofar as his actions lower the wages of some employees, he is spending their money." Friedman argued that such actions in effect turned executives into public employees or civil servants, levying "taxes" (in the form of corporate money allocated to social causes) and making "expenditures" -- a part of "the socialist view that political mechanisms, not market mechanisms, are the appropriate way to determine the allocation of scarce resources to alternative uses."
Friedman concluded:
"The difficulty of exercising 'social responsibility' illustrates, of course, the great virtue of private competitive enterprise -- it forces people to be responsible for their own actions and makes it difficult for them to 'exploit' other people for either selfish or unselfish purposes. They can do good -- but only at their own expense."
We know better now. For example, we understand that ignoring environmental and social issues can be bad for business. Companies that pollute their local communities risk poisoning their customers. Ignoring the state of the local school system risks depleting the pool of qualified workers. Abusing workers risks higher turnover and training costs, not to mention greater difficulty attracting the most qualified candidates.
It's never that simple, of course. In a globalized world, companies are free to exploit or pollute a local community, then move on to the next place. Unfettered markets and exploitation-friendly tax schemes reward companies for acting in their own interests in the name of economic growth and competitiveness. So, Friedman's philosophy still reigns supreme.
Friedman's philosophy is far from universally shared, even in the business community. In 1979, for example, Quaker Oats president Kenneth Mason, writing in Business Week, declared Friedman's profits-are-everything philosophy "a dreary and demeaning view of the role of business and business leaders in our society." Wrote Mason: "Making a profit is no more the purpose of a corporation than getting enough to eat is the purpose of life. Getting enough to eat is a requirement of life;
Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2016. Annual amortization of $24,300 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2017, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $11,000 per year. For 2018, each of the three companies reported the following information accumulated by its separate accounting system. Separate operating income figures do not include any investment or dividend income. Separate Operating Income Dividends Declared Boulder $336,500 $124,000 Rock 116,500 30,000 Stone 180,000 41,000 What is consolidated net income for 2018?
Answer: $597,700
Explanation:
To find the Consolidated Net Income, one must sum up all the Separate Operating Incomes and then account for Amortization expense by deducting it.
In this scenario it will look like this,
= Operating Income of Boulder Inc + Operating Income of Rock Corporation + Operating Income of Stone Company - Amortization expense (Boulder's investment in Rock Corporation) - Amortization Expense (Rock's investment in Stone Company)
= 336,500 + 116,500 + 180,000 - 24,300 - 11,000
= $597,700
The Consolidated Net Income for the year 2018 was $597,700.
Answer:
A. Consolidated net income $597,700
B.Noncontrolling interest in Stone's income $42,250
Noncontrolling interest in Rock's net income $21,895
Total net income attributable to noncontrolling interests $64,145
Reconciliation:
Controlling interest in consolidated net income$533,555
Net income attributable to noncontrolling interest $64,145
Consolidated net income$597,700
Explanation:
a.
Boulder's operating income$336,500
Rock's operating income $116,500
Stone's operating income $180,000
Amortization expense–Boulder's investment in Rock( $24,300)
Amortization expense–Rock's investment in Stone($11,000)
Consolidated net income $597,700
b.Stone's operating income$180,000
Amortization expense (on Rock's investment) (11,000)
Stone's accrual-based net income$169,000
Outside ownership 25%
Noncontrolling interest in Stone's income $42,250
Rock's operating income $116,500
Amortization expense (on Boulder's investment) ($24,300)
Equity accrual from ownership of Stone ($169,000 × 75%) $126,750
Rock's accrual-based net income$218,950
Outside ownership 10%
Noncontrolling interest in Rock's net income $21,895
Total net income attributable to noncontrolling interests $64,145
($42,250+ $21,895 )
Reconciliation:
Boulder’s operating income $336,500
Boulder’s share of Rock’s operating income (90% × $116,500) $104,850
Boulder’s share of Stone’s operating income (90% × 75% × $180,000)$121,500
Boulder’s share of Rock’s excess amortization (90% × $24,300) ($21,870)
Boulder’s share of Stone’s excess amortization (90% × 75% × $11,000)($7,425)
Controlling interest in consolidated net income$533,555
Net income attributable to noncontrolling interest $64,145
Consolidated net income$597,700
Quill Manufacturing Business makes two models of marking pens. The requirements for each lot of pens in the three manufacturing departments are given below. All three departments are necessary in the production of both types of pens. The profit for both types of pen is $1000 per lot. What is the optimal production quantity for the Tiptop model pen?
Fliptop Model Tiptop Model Available production hours
Ink Assembly 3 4 36
Molding Time 5 4 40
Plastic 5 2 30
Answer:
Optimal production quantity for the Tiptop model pen is 7.5 lot
Explanation:
Say, X and Y is the is the fliptop and tiptop quantity respectively, then
Profit = 1000*(X + Y)
Objective function: Maximize 1000*(X+Y) subject to;
Eq:1 3X+4Y=< 36
Eq:2 5X+4Y=< 40
Eq:3 5X+2Y=< 30
Using Excel Solver, we get:
Optimal production quantity for the Tiptop model pen is 7.5 lot
The optimal production quantity for the Tiptop model pen is 9 lots.
Explanation:To find the optimal production quantity for the Tiptop model pen, we need to determine how many lots of pens can be produced given the constraints of the available production hours in each department. We can start by calculating the maximum number of lots that can be produced based on the available production hours in each department.
In the Ink Assembly department, the Tiptop model pen requires 4 hours per lot. With 36 available production hours, the maximum number of lots that can be produced is 36 / 4 = 9 lots.In the Molding Time department, the Tiptop model pen requires 4 hours per lot. With 40 available production hours, the maximum number of lots that can be produced is 40 / 4 = 10 lots.In the Plastic department, the Tiptop model pen requires 2 hours per lot. With 30 available production hours, the maximum number of lots that can be produced is 30 / 2 = 15 lots.The maximum number of lots that can be produced in the Tiptop model pen is 9 lots, as it is limited by the Ink Assembly department. Therefore, the optimal production quantity for the Tiptop model pen is 9 lots.
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Suppose Keyboard estimates it will use 125 comma 000 comma 000 parts per month and ship products with a total volume of 27 comma 500 comma 000 cubic feet per month. Assume that each desktop computer requires 175 parts and has a volume of 9 cubic feet. What are the predetermined overhead allocation rates
Answer:
a)
Kitting: $0.072 per part and Boxing: $0.764 per cubic feet
b)
Kitting: $12.6 and Boxing: $6.9
Explanation:
Given that Keyboard spends $9,000,000 per month on kitting and $21,000,000 per month on boxing.
Keyboard estimates it will use 125,000,000 parts per month and ship products with a total volume of 27,500,000 cubic feet per month.
a) Since Kitting costs based on the number of parts used in the computer:
The predetermined overhead allocation rate for kitting = Money spent on kitting / number of parts used per month = $9000000 / 125000000 = $0.072 per part
Since Boxing costs based on the cubic feet of space the computer required:
The predetermined overhead allocation rate for Boxing = Money spent on Boxing / total = $21000000 / 27500000 = $0.764 per cubic feet.
a) each desktop computer requires 175 parts and has a volume of 9 cubic feet
For kitting, Activity cost per desktop = Predetermined overhead allocation rate x quantity per desktop = $0.072 × 175 = $12.6
For Boxing, Activity cost per desktop = Predetermined overhead allocation rate x quantity per desktop = $0.764 × 9 = $6.9
There are zero coupon bonds outstanding that have a YTM of 5.73 percent and mature in 23 years. The bonds have a par value of $10,000. If we assume semiannual compounding, what is the price of the bonds?
To calculate the price of the zero coupon bond with a par value of $10,000, a YTM of 5.73%, and semiannual compounding for a 23-year maturity, the present value formula yields a bond price of $2,030.88.
Explanation:To calculate the price of a zero coupon bond, we need to discount the par value of the bond to the present using the yield to maturity (YTM). The formula to find the present value (PV) of a zero coupon bond is PV = F / (1 + r/n)^(n*t), where F is the par value of the bond, r is the YTM, n is the number of times interest is compounded per year, and t is the number of years until maturity.
Given the par value (F) of $10,000, a YTM (r) of 5.73%, semiannual compounding (n = 2), and a maturity of 23 years (t = 23), the calculation is as follows:
PV = $10,000 / (1 + 0.0573/2)^(2*23)
PV = $10,000 / (1.02865)^(46)
PV = $10,000 / (4.9244)
PV = $2,030.88
The price of the bond is $2,030.88 when assuming semiannual compounding at a YTM of 5.73 percent for a 23-year maturity.
Hilary had an outside basis in LTL General Partnership of $15,000 at the beginning of the year. LTL reported the following items on Hilary's K-1 for the year: ordinary business income of $10,000, a $15,000 reduction in Hilary's share of partnership debt, a cash distribution of $25,000, and tax-exempt income of $8,000. What is Hilary's adjusted basis at the end of the year
Answer:
$0
Explanation:
$15,000 (Hillary's partnership basis at the beginning of the year) + $10,000 (ordinary business income) + $8,000 (tax exempt income) - $15,000 (reduction in share of partnership's debt) - $25,000 (cash distribution) = -$7,000. Since the basis cannot be negative, it is $0.
Also, since Hillary's adjusted basis resulted in a negative value, she must report a capital gain of $7,000. That way her basis = -$7,000 + $7,000 = $0
Answer:
$7,000 Gain and $0 Adjusted basis
Explanation:
Hilary adjusted basis is calculation below.
Hilary outside basis in LTL General Partnership of $15,000
Add:Ordinary business income $10,000
Tax-exempt income $8,000
Less: reduction in Hilary's share of partnership debt $15,000
Cash distribution of $25,000
Adjusted basis loss $7,000
Hence;
= ( $ 7,000 ) + $ 7,000 ( gain )
= $ 0
Therefore Hilary's adjusted basis at the end of the year will be adjusted basis of $ 0 because
Hilary's basis increased by her share of ordinary business income and tax exempt income and then decreased by her actual cash distribution as well as her deemed cash distribution from the reduction in her share of debt which makes her actual and deemed cash distribution exceed her basis which is Hilary must report $ 7,000 of capital gain leaving her with a $0 basis in her partnership interest.
University Car Wash built a deluxe car wash across the street from campus. The new machines cost $213,000 including installation. The company estimates that the equipment will have a residual value of $19,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows:
Year Hours Used
1 3,000
2 1,200
3 1,300
4 2,700
5 2,500
6 1,800
2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.)
Depreciation Accumulated Depreciation Book Value
3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimal places and use this amount in all subsequent calculations.)
Same criteria as above
Answer:
Please refer explanation and tables attached
Explanation:
1. Double-declining balance Method:
This is where the asset's value is depreciated at twice the rate than the straight line method. The depreciation amounts would be higher in the early years of the asset's life and gradually reduce towards the end. Hence, it does not mean that the depreciation amount would be higher than the straight line basis.
Straight Line depreciation per year = 1/6* x 100 = 16.67%
*as it is useful for six years
Hence double-depreciation value = 16.67% x 2 = 33.34%
It is calculated as depreciation rate x book value of asset at the beginning of the period.
Please refer attached table one for all years depreciation.
2. Activity based depreciation is whereby an asset is depreciated based on the asset’s activity such as the number of hours worked or the number of units produced, during a particular period of time. Activity based depreciation per year is calculated as:
[(Cost - Salvage value) x activity performed during the period] / Total estimated life activity of the asset
Please refer attached table two for all years depreciation.
To prepare a depreciation schedule for six years using the double-declining-balance method, calculate the straight-line depreciation rate, the double-declining-balance depreciation rate, depreciation expense, accumulated depreciation, and book value for each year. To prepare a depreciation schedule using the activity-based method, calculate the depreciation rate, depreciation expense, accumulated depreciation, and book value.
Explanation:Double-declining-balance method:
Calculate the straight-line depreciation rate: (Cost - Residual Value) / Useful Life in hours => (213,000 - 19,500) / 12,500 = 15.76 per hourCalculate the double-declining-balance depreciation rate: 2 * straight-line depreciation rate => 2 * 15.76 = 31.52 per hourCalculate depreciation expense for each year: hours used * double-declining-balance depreciation rateCalculate accumulated depreciation for each yearCalculate book value for each year: Cost - accumulated depreciationActivity-based method:
Calculate the depreciation rate: (Cost - Residual Value) / Total hours of expected use => (213,000 - 19,500) / 12,500 = 15.08 per hourCalculate the depreciation expense for each year: hours used * depreciation rateCalculate accumulated depreciation for each yearCalculate book value for each year: Cost - accumulated depreciationLearn more about the Depreciation Schedule here:https://brainly.com/question/33760311
Suppose that a car manufacturer discovers that it can lower its average costs if it diversifies its operation by also producing pickup trucks and SUVs.What concept does this illustrate
Final answer:
This scenario demonstrates economies of scale, where diversifying production to make pickup trucks and SUVs alongside sedans reduces average costs. International trade is critical for this strategy to succeed, leading to improved efficiency and consumer choice while fostering dynamic comparative advantage through global competition.
Explanation:
The concept illustrated by a car manufacturer realizing it can lower its average costs by diversifying operations to include the production of pickup trucks and SUVs is known as economies of scale. This occurs when increasing production allows for the average cost per unit to decrease, due to the spreading out of fixed costs over more units and, often, more efficient use of resources.
In the provided scenario, international trade facilitates these economies of scale by allowing the company to focus each assembly plant on a single model, leading to increased production without additional capital or labor. It also introduces the concept of dynamic comparative advantage, where advantages develop over time through learning and competition, as opposed to being inherently obtained. This has a significant impact on international trade, as it combines lower costs with increased competition and consumer choice.
Nolan Mills uses a standard cost system. During May, Nolan manufactured 15,000 pillowcases, using 27,300 yards of fabric costing $3.05 per yard and incurring direct labor costs of $17,278 for 3,260 hours of direct labor. The standard cost per pillowcase assumes 1.75 yards of fabric at $3.10 per yard, and 0.20 hours of direct labor at $5.95 per hour. a. Compute both the price variance and quantity variance relating to direct materials used in the manufacture of pillowcases in May. b. Compute both the rate variance and efficiency variance for direct labor costs incurred in manufacturing pillowcases in May.
Answer:
direct materials price variance = 1.365 Favourable
direct materials quantity variance =3,255 Adverse
direct labor rate variance = 2,119 Adverse
direct labor efficiency variance = 4,973 Adverse
Explanation:
direct materials price variance = Aq×Ap -Aq×Sp
=(27,300×$3.05)-(27,300×$3.10)
= 1.365 Favourable
direct materials quantity variance = Aq×Sp-Sq×Sp
= (27,300×$3.10)-(26,250×$3.10)
=3,255 Adverse
direct labor rate variance = Aq×Ap -Aq×Sp
=(3,260×$5.95)-(3,260×$5.30)
= 2,119 Adverse
direct labor efficiency variance = Aq×Sp-Sq×Sp
= (3,260×$3.95)-(3,000×$5.95)
= 4,973 Adverse
Robert Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been following the mining industry for the past 10 years and needs to determine the constant growth rate that he should use while valuing Pan Asia Mining Co. Robert has the following information available: • Pan Asia Mining Co.’s stock (Ticker: PAMC) is trading at $15.00. • The company’s stock is expected to pay a year-end dividend of $0.72 that is expected to grow at a certain rate. • The stock’s expected rate of return is 7.20%. Based on the information just given, what will be Robert’s forecast of PAMC’s growth rate?
Answer:
Growth rate 2.4%
Explanation:
MV=D1/(Ke-g)
Where MV=share market value=$15
D1=Dividend at year end=$.72
Ke=stock's expected rate of return=7.2%
By putting above values in formula, we get;
MV=D1/(Ke-g)
15=.72/(7.2%-g)
15*7.2%-15g=.72
1.08-15g=.72
.72-1.08=-15g
g= -.36/-15
g=2.4%
Answer:
Growth rate = g = 7.152%
Explanation:
To calculate the Robert forecast of the PAMC's growth rate in the question, we are give the following values
Share market value(MV)=$15
The stock's expected rate of return(Ke)=7.2%
Dividend at end of the year (D)=$0.72
Using the this formula, we can find the growth rate by making g the subject of formula in this formula
MV=D1/(Ke-g)
Substituting the values we have
15 = 0.72/(7.2-g)
15(7.2-g) = 0.72
108 - 15g = 0.72
Rearranging and collecting like terms, we have
108 - 0.72 = 15g
107.28 = 15g
Making g the subject of formula by dividing both sides by 15 we have
g= 7.152%
Johann, a well-known musician, agrees to give ten guitar lessons to Elton for $2,000. Nothing in the contract itself prohibits a delegation. If Johann delegates his obligation to Eugene, a second-year musical student and enthusiastic guitar player, then the delegation will probably be ___________.
A. permitted because contracts may be freely delegated.
B. permitted because the contract is just for music lessons.
C. prohibited because the contract is for service from a specific person.
D. prohibited by the UCC because this is a sale of services.
Answer:
The correct answer is (b)permitted because the contract is just for music lessons.
Explanation:
Recall that,
Johann, a well known musician agrees to give out ten lessons of guitar to Elton for an amount of $ 2000. this contract forbids delegation.
Since Johann delegates his obligation to Eugene who is a second year student in music, then his delegation is only allowed because the contract is to take music lessons and nothing more.
Tom Klem is the controller of Watson Manufacturing, Inc. He estimates that the company’s breakeven point in sales dollars is $2 million. However, he recently told all of the regional sales managers that sales of $3 million were needed to break even. He also told them that if the company failed to break even, the sales force would be reduced in size by 40 percent. Klem believes that his tactics will motivate the sales force to generate record profits for the upcoming year. Is his approach to motivating employees ethical
Answer: NO. His approach to motivating employees is NOT ETHICAL.
Ethical is relating to the accepted principles of right and wrong, especially those of some organization or profession.
In any Organisation or morally, lying is wrong. Being ethical means conforming to accepted moral standards. Morally, lying is wrong. That's exactly what Tom Klem has done here.
Zilly Co. predicts sales of $176,000 for June. Zilly pays a sales manager a monthly salary of $6,900 and a commission of 7% of that month’s sales dollars. Prepare a selling expense budget for the month of June.
Final answer:
The selling expense budget for Zilly Co. for June is $19,220, which includes the sales manager's salary and the commission on predicted sales.
Explanation:
The selling expense budget for Zilly Co. for the month of June can be calculated by adding the fixed salary of the sales manager to the commission that is based on the sales for that month. To calculate the commission, we use the given sales prediction and commission rate. Here's the step-by-step calculation:
First, calculate the commission by multiplying the predicted sales by the commission rate: $176,000 * 0.07 = $12,320.
Add the fixed monthly salary of the sales manager to the commission to get the total selling expenses: $6,900 + $12,320 = $19,220.
Therefore, the selling expense budget for Zilly Co. for the month of June is $19,220.
. From the following list of account balances, calculate the correct amount of current liabilities: Accounts receivable $ 5,000 Accounts payable 5,300 Unearned revenue 900 Rent expense 2,400 Sales revenue 46,300 Sales tax payable 3,700 Estimated warranty payable 900 Note payable, due in 90 days 1,300 Accumulated depreciation 1,400 a. $12,100 d. $13,000 b. $61,200 e. $13,100
Answer:
The answer is A.
Explanation:
Current liabilities are the total amount of money due within a period of s year. Current liabilities must be repaid within a year(less than 12 months.
Current liabilities in this question are:
Payable. $5,300
Unearned revenue $900
Sales tax payable. $3,700
Estimated warranty payable $900
Note payable due in 90days $1,300
Total. $12,100
$12,100 is therefore the total current liabilities
As of December 31, 2020, Gill Co. reported accounts receivable of $230,000 and an allowance for uncollectible accounts of $9,000. During 2021, accounts receivable increased by $22,400, (that change includes $7,300 of bad debts that were written off). An analysis of Gill Co.'s December 31, 2021, accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. Bad debt expense for 2021 would be:
Answer:
$3,348
Explanation:
At the year end
Account Receivable Balance = $230,000 + $22,400 = $252,400
Allowance for uncollectible accounts = $9,000 - $7,300 = $1,700
Bad debt Expense will be calculated using the percentage of debt loss. The expense will be calculated using the account receivable balance.
Closing Value of the Allowance for Doubtful Accounts will be as follow
Closing Balance = $252,400 x 2% = $5,048
As Allowance for Doubtful Accounts already have credit balance of $1,700, we need to adjust the remainder to make the closing balance of Allowance for Doubtful Accounts $5,048 at the year end.
Adjustment Value = $5,048 - $1,700 = $3,348
Ivanhoe Company took a physical inventory on December 31 and determined that goods costing $669,000 were on hand. Not included in the physical count were $11,000 of goods purchased from Pharoah Corporation, f.o.b. shipping point, and $27,000 of goods sold to Ro-Ro Company for $36,000, f.o.b. destination. Both the Pharoah purchase and the Ro-Ro sale were in transit at year-end. What amount should Ivanhoe report as its December 31 inventory
Answer:
Ivanhoe should report as its December 31 inventory $707,000
Explanation:
According to the given data we have the following:
Inventory in hand= $669,000
goods purchased from Pharoah Corporation, f.o.b. shipping point= $11,000
cost of goods sold to Ro-Ro Company=$27,000
Therefore, in order to calculate the amount should Ivanhoe report as its December 31 inventory we have to make the following calculation:
inventory = Inventory in hand+goods purchased from Pharoah Corporation, f.o.b. shipping point+cost of goods sold to Ro-Ro Company
inventory =$669,000+$11,000+$27,000
inventory =$707,000
Ivanhoe should report as its December 31 inventory $707,000
Final answer:
Ivanhoe Company should report an adjusted inventory value of $653,000 on December 31, including the $11,000 of goods in transit from Pharoah Corporation (f.o.b. shipping point) and excluding the $27,000 of goods in transit to Ro-Ro Company (f.o.b. destination).
Explanation:
The amount Ivanhoe should report as its December 31 inventory can be determined by taking into account the goods in transit. The $11,000 of goods purchased from Pharoah Corporation, which were shipped f.o.b. shipping point, should be included in Ivanhoe's inventory because the ownership of the goods transfers to the buyer once the seller ships the goods. However, the $27,000 of goods sold to Ro-Ro Company, which were shipped f.o.b. destination, should not be included in Ivanhoe's inventory since the ownership doesn't transfer until the goods arrive at the destination. Therefore, the inventory on December 31 would be calculated as follows:
Physical inventory count: $669,000
+ Goods in transit from Pharoah Corporation: $11,000
- Goods in transit to Ro-Ro Company: $27,000
Adjusted inventory value: $653,000
What can be done to soften unexpected bad news? It can be followed by reasons for the bad news. It can be written using "you" language. It can be implied, allowing the receiver to guess at the bad news. It can be placed later in the message. It can be apologized for.
Answer:
The correct answer is letter "D": It can be placed later in the message.
Explanation:
The indirect method of writing messages involves first giving details of the speech and ending with the conclusion of the matter. This is achieved by using passive voice and subordinate phrases. This strategy is more often used while providing bad news to give the audience the reasons why the bad news is taking place. Otherwise, if it is given at the start of the message, it is more likely that people will be discouraged from seeking information on the reasons for the bad news.
Which of the following is the location where notes can be added?
The location to add notes depends on the context. In software like Microsoft Word, notes can be added under 'New Comment' in the 'Review' tab. Similarly, in a PowerPoint presentation, notes can be added in the 'Notes' pane, and in many email clients and physical notebooks or sticky-notes.
Explanation:There are several places where you can add notes depending on the context. If you are using a computer software like Microsoft Word, notes can be added in the 'Review' tab under 'New Comment'. Similarly, in a PowerPoint presentation, you can add notes in the 'Notes' pane at the bottom of each slide.
In many email clients, you can also add notes to emails or contacts. In a physical context, notes can be added in notebooks or on sticky-notes. Thus, the specific location to add notes will depend largely on the platform or context in which you are working.
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Which of the following organizations is a discrete manufacturer? a. A pharmaceutical company in Arizona that manufactures skin creams b. A detergent and soap manufacturing company in Mexico City c. A glass manufacturing company in Canada that manufactures windshields for buses d. A plane turbine manufacturing company in South Africa
Answer: is Option D. A plane turbine manufacturing company in South Africa
Explanation:
Discrete manufacturing is the production of distinguishable items that can be decayed back into their basic parts. For example: Automobiles, airplanes, furniture, and toys are the examples of discrete manufacturing products.
For industrial purpose the discrete manufacturing contains production of consumer electronics, appliances, computer and related accessories, as well as many other household items. Production of cars and airplanes also falls under discrete manufacturing products. Discrete manufacturing companies manufactures physical items that go straight to the consumers and businesses.
Eureka Forbes, an Asian consumer appliances company, sells its vacuum cleaners through door-to door sales in Asia. This allows the company to obtain a high conversion ratio. Comment on the length of the channel in the case of Eureka Forbes' vacuum cleaners. Do you think such a distribution method is feasible in the U.S? Why or why not?
Answer:
Answer: Comment on the length of the channel in the case of Eureka Forbes's vaccum cleaner
Explanation:
Eureka Forbes, India"s leading water cleanser maker, is making a bet on outlets as an alternative to achieve share in an increasingly crowded market than his major direst sales which now has more than a hundred and fifty brands.
The Shapoorji Pallonji crew manufacturer stated it won 9% share in water purifiers past three years to contact 67% as a result of an increase in retail exchange regardless of large firms e.g. Hindustan Unilever and a number of multinationals in the market.
Accomplice vice chairman (advertising and marketing) Shashank Sinha said the company will quickly increase the community of retail shops, where the products are sold from 20,000 to 25,000. He said, the organization is developing a model whereby direct revenue executives are present to assist buyers who prefer a mannequin and purchase it straight from the companys internet site. "The knock-and-sale mannequin is losing relevance in digital world.
Eureka Forbes has about 7,000 direct sales executives, making it the biggest direct promoting company in Asia. When we get leads from digital world, assisted revenue can be helping lower return charges since 60% of orders positioned are on money-on-delivery mode, Sinha said. The corporation is increasing its sales in more its direct revenue to smaller towns and for more recent products such as air purifiers and home security solutions, cognizance for which is still in its infancy. The water cleaner industry accounts for 70% of Eureka Forbes turnover, which grew 59% in 2016-17 over the earlier 12 months to touch Rs three,040 core.
Apart from water purifiers, the enterprise is the market chief in vacuum cleaners, with 80% share, and in air purifiers, with 44% share.
Sinha mentioned, the organization is launching value-added products of water purifiers examples are water purifiers which have tea/espresso maker developed into it, they offer flavoured water, sparkling water and also sizzling or cold water from identical unit. He said the company is working on achieving this.
Sinha said tax on water purifiers will go up beneath the goods and offerings tax regime from 14.5% to 18%, while vacuum cleaners and air purifiers will fall in the 28% tax bracket. Also, sales to retail channel have slowed down because outlets are not keen to inventory and direct sales to purchasers are no longer affected, he said.
Cost will no longer be broaden as a result of the larger taxation due to the fact that we wish to study the effect utterly as one of the crucial components are imported. Decision will be made within a month or two he said.
Eureka Forbes uses a short, direct-to-consumer distribution channel in Asia. Its door-to-door sales method may not be as feasible in the U.S. due to cultural preferences, privacy concerns, and higher labor costs.
The length of the distribution channel for Eureka Forbes' vacuum cleaners is relatively short since the company sells its products directly through door-to-door sales. This direct-to-consumer (D2C) approach eliminates the need for intermediaries such as distributors and retailers, allowing Eureka Forbes to achieve higher conversion ratios in Asian markets. However, the feasibility of this distribution method in the U.S. market is questionable due to cultural, economic, and market differences. For example, American consumers may be less receptive to door-to-door selling due to privacy concerns and the convenience of online shopping. Additionally, the high labor costs associated with personal selling might make this approach less viable in the U.S. Market characteristics, such as a preference for large-scale retail outlets and online retail, suggest that alternative distribution strategies could be more effective in reaching consumers in the U.S.
Kent and Craig, who want to start a horse-training business, spoke to an insurance agent about getting insurance to cover potential liabilities, but were told that they could not get liability insurance because of the high risk nature their proposed business. What business entities would you recommend to Kent and Craig? Why?
Dave and Cindy, who want to start a law firm, each have $1,000 to invest in the business and no personal assets and want limited liability protection and only 1 level of taxation.They want your advice on whether they should form their law firm as: 1) a general partnership; or 2) a limited liability company (LLC). What business entity would you recommend? Why?
Answer:
Solution: the answer in delivered in 2 stages because of the character of dualistic problems:-
Part (1)
As Kent and Craig are concerned during a professional with prospective risk and that they wish to hide their prospective accountability. the character of the industry which can be utmost applicable in corporate against the other variety of industry like individual merchant or partnership company because of the subsequent details:-
Reason I: Unrestricted accountability- just in case of insolvency or industry letdown, Kent and Craig don't seem to be obligated to trade their particular resources.
Reason II: convenience of Business- because of the Supply of additional investment compared to restricted investment in sole profession and partnership company, they're ready to manage with the qualms related to the industry.
Part (2)
Wanting to the purposes of Dave and Cindy, the indebtedness corporation is desirable because of the subsequent details:-
Reason I: No danger to non-public assets because the corporation is proscribed accountability.
Reason II: just one level of tax within the variety of company tax .
Suppose that call options on ExxonMobil stock with time to expiration 3 months and strike price $104 are selling at an implied volatility of 28%. ExxonMobil stock currently is $104 per share, and the risk-free rate is 6%. If you believe the true volatility of the stock is 30%. a. If you believe the true volatility of the stock is 30%, would you want to buy or sell call options? Buy call options Sell call options b. Now you need to hedge your option position against changes in the stock price. How many shares of stock will you hold for each option contract purchased or sold? (Round your answer to 4 decimal places.)
Final answer:
Buy call options if you believe the true volatility is higher than the implied volatility, and to hedge your position, hold a number of shares equal to the Delta of the option for each contract purchased.
Explanation:
If the implied volatility of ExxonMobil stock call options is 28% and you believe the true volatility is 30%, you would want to buy call options. This is because options with a higher volatility are undervalued; hence, if the stock's volatility increases to the true volatility that you expect, the price of the options will rise, leading to a potential profit.
To hedge your option position, you would use the Delta of the option, which measures the rate of change of the option price with respect to the price of the underlying asset. The Delta can be found using option pricing models like the Black-Scholes model. You would hold a fraction of a share for each option contract equivalent to the Delta to be Delta-neutral. For example, if the Delta was 0.5000, you would hold 0.5000 shares for each call option purchased to maintain a hedged position.
A stock is expected to pay a dividend of $0.5 at the end of the year (D1=0.5), and it should continue to grow at a constant rate of 7% a year. If its required return is 12%, what is the stock’s expected price 5 years from today?
Answer:
The stock’s expected price 5 years from today is $14.03
Explanation:
Today's stock price: $0.5 / (12% - 7%) = $10
Because the stock should continue to grow at a constant rate of 7% a year, the stock’s expected price 5 years from today: $10 x (1 + 7%)^5 = $14.03
Answer:
You can Derive the answer like this. Using simple dendritic growth model.
$0.5 / (12% - 7%) = $10
Now to get the expected price 5 years from today, do this: $10 x (1 + 7%)^5 = $14.03
What we did was we used the annual growth rate and calculates the growth over the next 5 years.
Explanation:
1. Pane Corp. manufactures and sells a nutrition drink for children. It wants to develop a standard cost per gallon. The following are required for production of one gallon: Ingredient Lime Kool-Drink Sugar Protein Tablets Water Amount per Gallon 24.0 oz. .72 lb. 2 50 oz. Standard Waste 4% 10% 0% 0% Standard Price $0.15 per oz $0.65 per lb $0.40 per tablet $0.01 per oz Compute the standard usage (quantity) and standard cost of the ingredients for one gallon of the nutrition drink.
Final answer:
The standard cost for one gallon of Pane Corp.'s nutrition drink is calculated by adjusting each ingredient's required amount for standard waste, then multiplying by the standard price, resulting in a total cost of $5.57.
Explanation:
To calculate the standard cost for one gallon of the nutrition drink, we need to determine the standard usage (quantity) of each ingredient that accounts for the standard waste and then compute the cost by multiplying this adjusted quantity by the standard price.
For Lime Kool-Drink: The amount required is 24.0 oz with a 4% waste, thus the standard usage is 24.0 oz / (1 - 0.04) = 25 oz. Multiplying the standard usage by the standard price gives us $0.15 per oz × 25 oz = $3.75.
For Sugar: The amount needed is 0.72 lb with a 10% waste, so the standard usage is 0.72 lb / (1 - 0.10) = 0.8 lb. Therefore, the cost is $0.65 per lb × 0.8 lb = $0.52.
For Protein Tablets: No waste is considered, hence the standard usage is 2 tablets. The cost is $0.40 per tablet × 2 tablets = $0.80.
For Water: The quantity required is 50 oz with no waste, hence the standard usage remains 50 oz. The cost is $0.01 per oz × 50 oz = $0.50.
Adding up the cost of each ingredient, we get the total standard cost for one gallon of the nutrition drink which is $3.75 + $0.52 + $0.80 + $0.50 = $5.57.
Headland Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,040,900 on January 1, 2017. Headland expected to complete the building by December 31, 2017. Headland has the following debt obligations outstanding during the construction period.
Construction loan-12% interest, payable semiannually, issued December 31, 2016 $2,017,900
Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2018 1,586,200
Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2021 995,900
a. Assume that Headland completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,197,700, and the weighted-average amount of accumulated expenditures was $3,781,600. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.)
Avoidable Interest $
b. Compute the depreciation expense for the year ended December 31, 2018. Headland elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $298,200. (Round answer to 0 decimal places, e.g. 5,275.)
Depreciation Expense $
Answer:
a) $425,320,48
b) $177,494,02
Explanation:
The avoidable interest = $425,320,48
The Depreciation Expense= $177,494,02.
Kindly go through the attached file to see the step by step approach that yielded the answers from the question.
Caroline has several options for how to spend her Saturday night, listed in order of descending preference: 1. Go to a folk music concert with a friend. 2. Get dinner with several of her sorority sisters. 3. Go shopping with her mom. Caroline can only do one activity. Match each activity (on the left) with its opportunity cost (on the right).
Answer:
Please go through the explanation and then the attached fine for the answer.
Explanation:
Opportunity cost is defined as what you have to sacrifice to get something. It is the lose of other alternatives when one alternative is chosen.
For further insight to the answer please go through the attached file.