Answer:
The company would report in a disclosure note accompanying its financial statements:
Lifo assigns an amount to cost of goods sold on the income statement that approximates its current cost; it also better matches current costs with revenues in computing gross profit.
Explanation:
Lifo assigns the highest amount to cost of goods sold - yielding the lowest gross profit and net income which also yields a temporary tax advantage by postponing payment of some income tax.
The tax of LIFO method would be $ 42,500 than the tax of FIFO method.
January 1, 2021 Inventory , $950,000 (38,000 units at $25 each)
Purchases 116,000 units $30 per unit = $ 3480,000
Sales 120,000
LIFO Ending Inventory 34,000 units at $ 25 = $ 850,000
LIFO Cost of Goods Sold = $ 3480,000+ $950,000-$ 850,000= $ 3580,000
If FIFO was used the ending Inventory would be 34,000 units at $ 30
= $ 1020,000
And FIFO Cost of Goods Sold = $ 3480,000+ $950,000-$ 1020,000=
$ 3410,000.
There would be difference of $ 170,000 in the LIFO and FIFO Cost of goods sold. The LIFO COGS is $ 170,000 more than FIFO COGS .
That difference would also be in the income LIFO method. The income of LIFO would be $ 170,000 less therefore having ($ 170,000* 25%) $ 42,500 less income tax.
Based on the amounts of inventory and the income tax rate, the LIFO liquidation profit would be $15,000.
What would be the LIFO liquidation profit?First find the COGS:
= (116,000 x 30) + (4,000 x 25)
= $3,580,000
The LIFO liquidation profit is:
= (Sales - COGS) x ( 1 - Tax rate)
= ((120,000 x 30) - 3,580,000) x (1 - 25%)
= $15,000
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Imagine that you are a management coach and one of your clients, a new manager, says, "I’ve heard that about two thirds of managers fail within 18 months. I don’t want to be part of that statistic! I’ve heard that asking questions and really listening to people’s responses is key to success. But as a manager, shouldn’t I have the answers? Why should I be asking questions?"
a. How do you respond? Check all that apply.
O asking employees how to solve problems empowers them to arrive at solutions to which they're committed.
O asking employees questions enhances their sense that the manager is the only person they should be in dialogue with, so they start talking less to each other.
O asking employees questions develop their critical thinking skills.
O asking employees questions boosts their morale by them feel like experts, even though they're not.
Answer:
I think 1 and 3
Explanation:
Management is the activity or the tasks that take place within the group of people holding some of the roles, responsibilities, and accountability to perform the tasks efficiently and effectively.
The correct answer is
Asking employees how to solve problems empowers them to arrive at solutions to which they're committed.Asking employees questions develop their critical thinking skills.These options are correct because these can be the question that the manager asks to evaluate the performance of the employees and by this, he can also get to the answer to the question about which he is in question.
Options:
Asking employees questions enhances their sense that the manager is the only person they should be in dialogue with, so they start talking less to each other.Asking employees questions boost their morale by them feel like experts, even though they're not.These are the wrong options because they do not specify the correct answer to the context and also do not provide the answer to the questions of the manager in the management process.
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Six months ago, you purchased 2,300 shares of ABC stock for $28.08 a share. You have received dividend payments equal to $.80 a share. Today, you sold all of your shares for $30.07 a share. What is your total dollar return on this investment?
Answer:
Dollar Return $2.79
$6417 as per investment in shares
Explanation:
The return from an investment is the difference between value of stock when is was purchased to when it is sold plus any income received during the period
Dollar return will be divided into two
Capital gain which is the difference between purchasing price and selling price
Capital Gain = 30.07-28.08= 1.99
Income which is any income distributions made
Income = dividend Income = $0.80
Return = 1.99+0.8=$2.79
As per investment =2300*2.79 = $6417
At December 31, 2020, Sager Co. had 1,200,000 shares of common stock outstanding. In addition, Sager had 450,000 shares of preferred stock which were convertible into 750,000 shares of common stock. During 2021, Sager paid$1,200,000 cash dividends on the common stock and $800,000 cash dividends on the preferred stock. Net income for 2021 was $6,800,000 and the income tax rate was 40%.
The diluted earnings per share for 2021 is (rounded to the nearest penny) _______.
Answer:
$3.48
Explanation:
Net income ÷Shares of common stock outstanding + Preferred stock convertible shares of common stock.
Net income 6,800,000
Shares of common stock outstanding 1,200,000
Preferred stock convertible 750,000
Hence:
$6,800,000/ ($1,200,000 + $750,000)
=$6,800,000/$1,950,000
=$3.48
Therefore the diluted earnings per share for 2021 is $3.48
40. Using simple math, the Water Utility Fund of Eugene, Oregon has the following subtotals on its December 31, 2019 Statement of Net Position: Total Current and Accrued Assets, $2,000; Total Restricted Assets, $1,050; Net Utility Plant, $10,500; Other Assets, $60; Total Current Liabilities, $800; Liabilities payable from restricted assets, $250; and Long-term Liabilities, $7,900. How much would be the net position—Unrestricted? A. $1,200. B. $1,260. C. $950. D. $2,000.
Answer:
B. $1,260
Explanation:
The computation of the net position unrestricted is shown below
Unrestricted Net Position is
= Total Current and accrued Assets + Other assets - current liabilities
= $2,000 + $60 - $800
= $1,260
We simply added the other assets and deduct the current liabilities to the total current and accrued assets so that the amount could come in a correct way
Therefore all other information that is not considered is irrelevant. Hence, ignored it
A&B Enterprises may add customer appraisals as a component of employee performance appraisals. All of the following are most likely reasons for A&B to use customer appraisals EXCEPT ________. fostering change evaluating development programs holding employees accountable demonstrating customer commitment
Answer: Evaluating Development Programs
Explanation:
Customer Appraisal is very and should be very important to companies because it is a critical source of information that guides a company on knowing Consumer Behavior.
Knowledge of Consumer Behavior can make or break a company as it enables them to know if they are satisfying their customer's needs.
Fostering Change, Holding Employees Accountable and Demonstrating a commitment to Customers are main reasons for Customer Appraisals. Evaluating Development Programs is not likely to be a reason so is the correct answer here.
If a company has $2,000,000 invested in buildings, equipment, and other assets and desires to earn a return on investment of 30%, the company will need to earn a net income of $
Answer:
600,000
Explanation:
Answer:
The company will be required to earn a net income of $600,000.
Explanation:
The return on investment shows the relation between the net income and the investment.
In the case when there is a high return on investment so the gain on investment should be favorable to its cost.
The following formula should be used to determine the net income.
As we know that
Return on investment = Net income ÷ investment made
30% = Net income ÷ $2,000,000
So, the net income is
= $2,000,000 × 30%
= $600,000
Hence, we can conclude that the company will be required to earn a net income of $600,000.
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Jill plants flowers in her yard to supply a local florist. Her neighbor enjoys the flowers. Therefore:a. Jill should stop planting flowers because her neighbor does not pay for the benefit he gets.b. Jill should not plant flowers because their economic value is low and opportunity cost is high.c. Jill should plant fewer flowers because the external cost is greater than the external benefit.d. Jill is creating an external benefit for her neighbor.
Answer:
D.Jill is creating an external benefit for her neighbor.
Explanation:
An external benefit is also called positive externality. This is a benefit that a transaction or activity provides to someone who is not part of the transaction or activity.
In this scenario Jill is the one who engaged in the activity of planting flowers. But her neighbor who is not a part of the activity is the one enjoying/benefitting from the flowers.
A company that uses the perpetual inventory system sold goods to a customer on account for $ 2,100. The cost of the goods sold was $ 1,050. Which of the following journal entries correctly records this transaction? A) Cost of Goods Sold $2,100 Sales Revenue $2,100B) Merchandise Inventory $2,100 Sales Revenue $2,100C) Accounts Receivable $2,100 Cash $2,100D) Cash $2,100 Sales Revenue $2,100 Cost of Goods Sold $1,050 Merchandise Inventory $1,050
Answer:
Journal Entry
Explanation:
The Journal entry is shown below:-
1. Accounts receivable Dr, $2,100
To Sales $2,100
(Being sales made on account is recorded)
2. Cost of Goods Sold Dr, $ 1,050
To Merchandise Inventory $1,050
(Being cost of goods sold is recorded)
Therefore option is not available.
A small business that makes household products buys new injection molding equipment for a cost of $500,000. This will allow the manufacturer to make more clothespins in the same amount of time with an estimated increase in sales of 20%. If the manufacturer currently makes 75 tons of clothespins per year, which sell at $18,000 per ton, what will be the increase in revenue next year from the new equipment
Answer:
$270,000
Explanation:
Estimated increase in sales of 20%
Clothespins per year 75 tons
Sales of Clothespins 18,000 per ton
Hence
0.20 × 75 × 18,000 = $270,000
Therefore what will be the increase in revenue next year from the new equipment will be $270,000
On July 31, 2022, Blossom Company had a cash balance per books of $6,295.00. The statement from Dakota State Bank on that date showed a balance of $7,845.80. A comparison of the bank statement with the Cash account revealed the following facts.
1. The bank service charge for July was $24.00.
2. The bank collected $1,675.00 from a customer for Blossom Company through electronic funds transfer.
3. The July 31 receipts of $1,349.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.
4. Company check No. 2480 issued to L. Taylor, a creditor, for $354.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $345.00.
5. Checks outstanding on July 31 totaled $1,988.10.
6. On July 31, the bank statement showed an NSF charge of $730.00 for a check received by the company from W. Krueger, a customer, on account.
Required:
a. Prepare the bank reconciliation as of July 31.
Answer:
Adjusted book/Bank balance = $7,207
Explanation:
Blossom Company
Bank Reconciliation Statement
For the year ended July 31, 2022
Bank balance as per July 31 $7,845.80
Add: Deposit in Transit $1,349.30
Less: Outstanding check $(1,988.10)
Adjusted bank balance $7,207
Cash balance as per July 31 $6,295.00
Add: Collection from EFT $ 1,675.00
Less: Bank service charge $(24.00)
NSF check $(730.00)
Error in bank $(9.00)
Total deduction $(763.00)
Adjusted book balance $7,207
Therefore, the bank balance and book balance have been adjusted through bank reconciliation statement.
Consider the race for governor of a small state. The population of the state is evenly divided between three cities—Summertown, Tarrytown, and Auburn. The governor's race is between Ralph Rubin (the mayor of Summertown) and Travis Turner (the mayor of Tarrytown). Assume that no matter what is said during the campaign, Rubin can count on the support of 100% of the Summertown population, and Turner can count on the support of 100% of the Tarrytown population. Assume 100% voter participation.
a. According to the result of majority-rule voting, the next governor will be the one preferred by the majority of the residents of ___________.
Options:
a. Summertown
b. Tarrytown
c. Auburn
Answer:
C
Explanation:
The first point here is that the State is evenly distributed among the three cities that made up the state. That means if the state population is 300 , each city population is 100 .
Now , if Ralph Rubin get a 10% support from Summerton (100 people) and Turner got the 100% support of Tarrytown (100 people) assuming 1005 participation. The decider of the election will be the people of Auburn.
The preferred candidate by the majority ((more tha 50%)people of auburn will be the winner
According to the result of majority-rule voting, the next governor will be the one preferred by the majority of the residents of Auburn.
In a race for governor between two candidates with city-specific support, the winner will be the one preferred by the majority of the residents of Auburn due to the even division of the state's population among three cities.
In this scenario, even though each candidate has the complete support of their city's population, the winner will be chosen based on the majority of votes from all three cities combined.Since the population is evenly divided among the three cities, the majority will be determined by the combined total of votes from Auburn, making it crucial for a candidate to secure the majority support there.Entries to Write Off Accounts Receivable Creative Solutions Company, a computer consulting firm, has decided to write off the $13,780 balance of an account owed by a customer, Wil Treadwell. a. Journalize the entry to record the write-off, assuming that the direct write-off method is used. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the write-off, assuming that the allowance method is used. If an amount box does not require an entry, leave it blank.
Answer:
A. Debit Bad Debt Expense 13780
Credit Accounts Receivable Wil Treadwell 13780
B. Debit Allowance for Doubtful Accounts 13780
Credit Accounts Receivable Wil Treadwell 13780
Explanation:
When a debtor defaults on a payment, the creditor is forced to write off that amount of money as a bad debt.
What is Bad Debt ?Bad debts are documented as charge-offs when they become uncollectible and are present on a creditor's books.
An account receivable that has been specifically determined to be uncollectible and, as a result, is written off is referred to as a bad debt.
When a borrower or debtor defaults—that is, fails to pay back a loan or other obligation—bad debt results. These accounts are eliminated from the receivables list.
For the stated transaction Journal Entry will be
Transaction Dr ($) Cr ($)
Bad Debt Expense 13780
To Accounts Receivable
(Wil Treadwell) 13780
B. Allowance for Doubtful Accounts 13780
To Accounts Receivable Wil Treadwell 13780
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# SPJ 2
If a firm is currently in a short-run equilibrium earning a profit, what impact will a lump-sum tax have on its production decision? A. The firm will not change output and earn a higher profit. B. The firm will decrease output to earn a higher profit. C. The firm will not change output but earn a lower profit. D. The firm will increase output but earn a lower profit. If a firm is currently in a short-run equilibrium earning a profit, what impact will an increase in variable factor prices have on its production decision? A. The firm will decrease output to earn a higher profit. B. The firm will not change output but earn a lower profit. C. The firm will not change output and earn a higher profit. D. The firm will decrease output and earn a lower profit.
Answer:
Question 1:
The correct option is "C"
Question 2:
The correct option is "D"
Explanation:
Question 1:
A firm amplifies benefit b comparing minimal income (MR) with peripheral cost (MC). A change in fixed costs like singular amount charge doesn't change MC, in this way firm delivers same yield. Be that as it may, higher fixed cost expands absolute expenses, consequently benefit diminishes.
Question 2:
Increment in factor cost will build MC and increment ATC, along these lines firm will diminish yield and benefit will fall.
On December 18, Intel receives $259,000 from a customer toward a cash sale of $2.59 million for computer chips to be completed on January 23. The computer chips had a total production cost of $1.59 million. What journal entries should Intel record on December 18 and January 23
Answer:
Date General Journal Debit Credit
Dec. 18 Cash $259,000
Unearned revenue $259,000
(To record advance receipt of cash)
Jan. 23 Cash (2590000 - 259000) $2,331,000
Unearned revenue $259,000
Sales revenue $2,590,000
(To record cash sale)
Jan. 23 Cost of goods sold $1,590,000
Inventory $1,590,000
(To record cost of goods sold)
Billy Ray owns several parcels of rental real estate, and he actively participates in managing the properties. His total loss from these activities in 2019 is $30,000 and his AGI for 2019 is $110,000. How much of the disallowed loss from rental real estate activities may be carried over to future years?
Answer:
your answer is
$160,00
Libre, Inc. has experienced bad debt losses of 5% of credit sales in prior periods. At the end of the year, the balance of Accounts Receivable is $125,000 and the Allowance for Doubtful Accounts has an unadjusted credit balance of $1,750. Net credit sales during the year were $200,000. Using the percentage of credit sales method, what is the estimated Bad Debt Expense for the year?
Answer:
Bad Debt Expense = $10,000
Explanation:
Using the percentage of credit sales method, estimated Bad Debt Expense for the year is
Bad Debt Expense = Net credit sales × Percentage of credit sales uncollectible
Given,
Net credit sales = $200,000
Percentage of credit sales = 5%
Putting the values into the formula, we can get
Bad Debt Expense = Net credit sales × Percentage of credit sales uncollectible
Bad Debt Expense = $200,000 × 5%
Bad Debt Expense = $10,000
As the company is using the Percentage of credit sales method, they do not need to adjust Allowance for Doubtful Accounts.
Brown Company purchased equipment in 2011 for $150,000 and estimated a $10,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2017, there was $98,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2018, the equipment was sold for $40,000.
Answer:
The journal entry for disposal of equipment will be as follows;
Explanation:
Accumulated Depreciation Dr.$98,000
Cash Dr.$40,000
Loss on disposal (150-98-40) Dr.$12,000
Equipment Cr.$150,000
Answer:
Dr Depreciation Expense 3,500
Cr Accumulated Depreciation—Equipment 3,500
Dr Cash 40,000
Dr Loss on Disposal of Plant Assets 8,500
Dr Accumulated Depreciation—Equipment 101,500
Cr Equipment 150,000
Explanation:
Brown Company Journal entry
(a)
Dr Depreciation Expense 3,500
Cr Accumulated Depreciation—Equipment 3,500
( $14,000 × 1/4 = $3,500)
Dr Cash 40,000
Dr Loss on Disposal of Plant Assets 8,500
Dr Accumulated Depreciation—Equipment ($98,000 + $3,500) 101,500
Cr Equipment 150,000
Lakisha is a professor of economics. She is currently earning $100,000 a year as a professor. She decides to quit her job as a professor and opens a consulting firm. In order to do this, she cashes out her retirement fund of $200,000. Her retirement fund has been earning 10% interest each year. At the end of her first year as an economic consultant, she earns $120,000 in accounting profit. What was her economic profit for the year?
Answer:
The correct answer is $0.
Explanation:
According to the scenario, computation of the given data are as follows:
Accounting Profit = $120,000
Current earning = $100,000
retirement fund = $200,000
Interest from retirement fund = 10% × $200,000 = $20,000
So, we can calculate the economic profit by using following formula:
Economic profit = Accounting profit - Current earning - Interest from retirement fund
By putting the value, we get
= $120,000 - $100,000 - $20,000
= $20,000 - $20,000
= $0
Lkisha economic profit for the year equal $0
Economic profit is the profit derived after deduction of costs of inputs and opportunity cost from revenue made from sale of output.
The Formula to use to calculate Lkisha economic profit is {Accounting profit - Salary given up - Interest from retirement fund given up}Given Information
Accounting Profit = $120,000
Current earning = $100,000
Retirement fund = $200,000
Economic Profit = $120,000 + $100,000 - (200,000 * 10%)
Economic Profit = $120,000 + $100,000 - $20,000
Economic Profit = $0
Therefore, Lkisha economic profit for the year equal $0.
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Sandusky Company borrowed $28,000 from the Lakeside Bank by issuing a 10% three-year installment note. Sandusky agreed to repay the principal and interest by making annual payments in the amount of $11,259.21. Based on this information, the amount of the interest expense associated with the second payment would be: (round your answer to the nearest dollar)
Answer:
the amount of the interest expense associated with the second payment would be $1,954
Explanation:
According to the given data we have the following:
Amount borrowed= $28,000.00
10% interest=$28,000×0.10=$2,800
Therefore, Total outstanding at end of year 1=$28,000+$2,800
Total outstanding at end of year 1=$30,800
Sandusky agreed to repay the principal and interest by making annual payments in the amount of $11,259.21, therefore
Net balance at end of year 1= $30,800-$11,259.21
Net balance at end of year 1=$19,540.79
Hence, To calculate the amount of the interest expense associated with the second payment we would have to make the following calculation:
amount of the interest expense associated with the second payment= $19,540.79×10%=$1,954
Think about the statement, “Business people are moral people”. Briefly write your
reaction to the statement...what does this mean?
Which of the following is not a function of public relations?
a. Building excitement for new product launches.
b. Getting the firm’s message to mass audiences very quickly.
c. Introducing new products with limited associated advertising.
d. Defending or improving the firm’s image.
e. Providing value-added customer services.
The Introduction of new products with limited associated advertising is is not a function of public relations.
A public relations is a department that helps to maintain the favorable public image of a company.
A public relations helps building excitement for a new product launches.
The department ensures that the firm’s message gets to the mass audiences very quickly.The department also defending, improving the firm’s image as well as providing value-added customer services.
In conclusion, the Option C is correct because Introduction of new products with limited associated advertising is is not a function of public relations.
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Ayayai Corp. had the following inventory transactions occur during 2022: Units Cost/unit Feb. 1, 2022 Purchase 102 $42 Mar. 14, 2022 Purchase 175 $44 May 1, 2022 Purchase 124 $46 The company sold 288 units at $59 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, and operating expenses of $1692, what is the company’s after-tax income using LIFO?
Answer:
Income after tax = $1666
Explanation:
LIFO (Last-In-First-Out) is a method of inventory valuation where the goods that are received last are used first. In other words, the latest stock is used first. This is common for bulky inventory, stacked one on top of another.
In order to obtain the after-tax income, both the gross profit and income before tax are required. To obtain gross profit, we require the cost of goods sold information. The inventory information is as follows:
Feb 1 : Purchases : 102 units x $42 = $4284
Mar 14 : Purchases : 175 units x $44 = $7700
May 1 : Purchases : 124 units x $46 = $5704
288 units were sold
The COGS would be:
124 x $46 = $5704
164 x $44 = $7216
Thus COGS : $5704 + $7216 = $12920
Gross profit : Sales - COGS
Sales : $59 x 288 = $16992
Gross Profit = $16992 - $12920 = $4072
Income before tax : Gross Profit - Expenses
Operating expenses : $1692
Income before tax = $4072 - $1692 = $2380
Income after tax : Income before tax - (tax rate x income before tax)
Tax rate : 30%
Income after tax = $2380 - ($2380 x 30%) = $1666
Build interest in your sales message by developing your central selling points with rational, emotional, or dual appeals. Rational appeals are appropriate when a product is, for example, important to BLANK . Emotional appeals are appropriate when a product is, for example, BLANK . Whether using rational or emotional appeals, remember to translate cold facts into BLANK .THIS IS THE OPTIONS DO THEM PLEASE :)option 1-health-appearance-egooption 2-short-lived-expensive-essentialoption 3-scare tactics related to current events-warm feelings and reader benefits -logical arguments
Answer:
1. Health
2. Essential
3. Warm feelings and reader benefits
Explanation:
Note that, in marketing Rational appeals are appropriate when a product is, for example, important to herlth. While Emotional appeals are appropriate when a product is, for example, essenal products.
Whether using rational or emotional appeals, remember to translate cold facts into warm feelings and reader benefits.
An excise tax levied on a product will impose a smaller relative burden on consumers (and a larger relative burden on sellers) when: Group of answer choices the supply of the product is relatively inelastic. the supply of the product is relatively elastic. the demand for the product is relatively elastic. either a or c is true.
Answer: the demand for the product is relatively elastic
Explanation:
When a product is said to be Elastic, it means that for every 1% change in price, there is a more than 1% change in the Quantity Demanded of that product. For example, if the price of a good rises by 2% and the Quantity Demanded drops by 2.5% that good is considered Elastic.
Now, if an excise tax is intruduced on a good that is Elastic that means that the price would rise and the demand would drop. This will impose a larger burden on suppliers because in an attempt to keep the price relatively stable, they will absorb most of the tax thus reducing their profitability in order to avoid a more than proportional decrease in Quantity Demanded.
An excise tax impacts consumers and sellers differently based on the elasticity of demand and supply. When demand is more elastic than supply, consumers bear less tax burden; when supply is more elastic than demand, consumers bear a larger burden. The tax incidence falls on the group with the most inelastic price-quantity curve.
An excise tax introduces a wedge between the price paid by consumers (Pc) and the price received by producers (Pp). When the demand is more elastic than supply, the tax incidence on consumers is lower, but when the supply is more elastic than demand, the tax incidence on consumers is larger.
The tax burden falls on the group with the most inelastic price-quantity curve. If demand is inelastic relative to supply, buyers bear most of the tax burden; if demand is elastic relative to supply, sellers bear most of it.
The more elastic the demand and supply curves, the lower the tax revenue generated. In cases of relatively elastic supply and relatively inelastic demand, the tax burden falls more on consumers than on sellers.
Carmel Company has a frequent buyer program for its customers, where the customers can attain an "elite" level based on the number of orders and the total revenue of the orders. There are two elite levels: Platinum and Titanium. The benefits of elite membership include discounts and access to special customer service representatives who can resolve problems. The company has one full-time customer representative per 200 Titanium customers and one full-time customer representative per 2,000 Platinum customers. Customer representatives receive salaries plus bonuses of 1 percent of customer gross margin. Carmel spends 80 percent of its promotion costs on Titanium customers to encourage their loyalty. Customer Costs Total Titanium Platinum Number of customers 25,000 5,000 20,000 Average customer representative salary $ 68,000 $ 68,000 Promotion costs $ 2,850,000 Average gross margin per customer $ 1,590 $ 325 Required: a. Calculate the totals of the items below for both titanium and platinum customers, as well as the excess of gross margin over customer costs for each category. b. Which customers are more profitable?
Answer:
a.Titanium = $2,890,500
Platinum = $5,185,000
b. Platinum is more profitable
Explanation:
The computation of given question is shown below:
For Titanium
Total gross margin = 5,000 × $1,590
= $7,950,000
Salaries and bonus of Customer representative = ($68,000 × 5,000 ÷ 200) + (1% × $7,950,000)
= $1,700,000 + $79,500
= $1,779,500
b.
Promotion cost = $2,850,000 × 80%
= $2,280,000
Excess of gross margin over customer costs = Total gross margin - Salaries and bonus of Customer representative - Promotion cost
= $7,950,000 - $1,779,500 - $2,280,000
= $2,890,500
For Platinum
Total Gross margin = 20,000 × $ 325
= $6,500,000
Salaries and bonus of Customer representative = ($68,000 × 20,000 ÷ 2,000) + (1% × $6,500,000 )
= $680,000 + $65,000
= $745,000
Cost of promotion = $2,850,000 × 20%
= $570,000
Since, 80% is allocated for promotion expenses of titanium so we assume 20% for Platinum
Excess of gross margin over customer costs = Total Gross margin - Salaries and bonus of Customer representative - Cost of promotion
= $6,500,000 - $745,000 - $570,000
= $5,185,000
B. Since, Platinum is higher than Titanium. So, Platinum is more profitable.
Presented below is information related to Sunland CompanyPresented below is information related to Sunland Company. Cost Retail Beginning inventory $131,980 $286,000 Purchases 1,361,000 2,123,000 Markups 95,000 Markup cancellations 15,700 Markdowns 38,400 Markdown cancellations 4,700 Sales revenue 2,216,000 Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.) Ending inventory using conventional retail inventory method
Answer:
$238,600
Explanation:
Cost Retail
Beginning inventory $131,980 $286,000
Purchases $1,361,000 $2,123,000
Goods available for sale
$1,492,980 $2,409,000
Add Markups 95,000
Less Markup cancellations (15,700)
($2,409,000+$95,000-$15,700)
Total $1,492,980 $2,488,300
Less Markdowns ($38,400 )
($2,488,300-$38,400) $2,449,900
Add Markdown cancellations $4,700
($2,449,900+$4700) $2,454,600
$1,492,980 $2,454,600
Less Sales revenue ($2,216,000)
($2,454,600-$2,216,000)
Ending Inventory at Retail $238,600
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,520,000. Harding paid $385,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $407,000; Building, $1,210,000 and Equipment, $803,000. (Round your intermediate percentages to the nearest whole number: i.e 0.054231 = 5%. Do not round any other intermediate calculations.) Assume that Harding uses the units-of-production method when depreciating its equipment. Harding estimates that the purchased equipment will produce 1,060,000 units over its 5-year useful life and has salvage value of $18,000. Harding produced 271,000 units with the equipment by the end of the first year of purchase. Which amount below is closest to the amount Harding will record for depreciation expense for the equipment in the first year?
Answer:
$123,630.2
Explanation:
Harding Corporation
33%× $1,520,000=$501,600
$501,600-$18,000=$483,600
$483,600/$1,060,000 units
=$0.4562
=45.62 per unit
$0.4562x 271,000 units = $123,630.2
Or
($501,600 cost of equipment (33% of $1,520,000 purchase price) minus $18,000 salvage value) / $1,060,000 units = $0.4562 per unit.
$0.4562x 271,000 units = $123,630.2
Therefore the amount below which is closest to the amount Harding will record for depreciation expense for the equipment in the first year is $123,630
Which one of the following is a way to improve the S/Q rating of branded pairs produced at a particular production facility? Avoiding use of green/environmentally-friendly materials (which are of lower quality than superior materials) Avoiding the use of overtime Increasing the number of models/styles produced Increasing worker base pay by more than 2% annually Increasing expenditures for best practices training for workers
Answer: Avoiding use of green/environmentally-friendly materials (which are of lower quality than superior materials)
Explanation:
The International Footwear Federation is a consumer group that issues s/q ratings for footware makers around the world.
The S/Q ratings range from 0 - 10 stars and measure everything between the quality and appearance of the footware apparel.
Footware with high quality materials that are durable rank high in the S/Q matrix and as such it is imperative that companies aiming to move higher up the S/Q scale, use high quality materials.
Avoiding the use of green/environmentally-friendly materials (which are of lower quality than superior materials) and instead using Superior materials, whilst not entirely good for the Environment, will make a shoe stronger which would increase the S/Q rating.
Mayfield Inc. will pay a dividend of $3.14 per share next year. The company pledges to increase its dividend by 3.7 percent per year indefinitely. If you require a return of 10 percent on your investment, how much will you pay for the company's stock today
Answer:
The price that will be paid for the stock today is $49.84
Explanation:
The company is expected to grow the dividends at a constant rate, thus the constant growth model of DDM will be used to calculate the price of the stock today. The formula for the price of the stock is:
P0 = D1 / r - g
Where,
D1 is the dividend expected for the next periodr is the required rate of returng is the growth rate in dividendsP0 = 3.14 / (0.1 - 0.037)
P0 = $49.84
Using the Gordon Growth Model, an investor who requires a 10% return on their investment should pay $49.84 for Mayfield Inc.'s stock today, given a future dividend of $3.14 with a perpetual annual increase of 3.7%.
The student is asking how much they should pay for a company's stock today given that Mayfield Inc. will pay a dividend of $3.14 next year, and the dividends are expected to increase by 3.7% each year indefinitely. This question involves determining the present value of an infinite series of dividends growing at a constant rate, which is a Dividend Discount Model (DDM) application, a concept found within finance and investment analysis.
To calculate the price of the stock today, we will use the Gordon Growth Model (a version of the DDM for perpetuity with growth):
P = D / (r - g)
where P is the price of the stock today, D is the next year's dividend, r is the required rate of return, and g is the growth rate in dividends.
Plugging in the numbers, we get:
P = 3.14 / (0.10 - 0.037)P = 3.14 / 0.063P = $49.84
So, if an investor requires a 10% return on their investment, they should be willing to pay $49.84 for Mayfield Inc.'s stock today.
Suppose that in year 2025, the US economy enters once of its worst recessionary gaps in history. Address these two related questions below: Compare and contrasts how fiscal policy and monetary policy could be used to help address this economic downturn. Explain. The US government is currently trillions of dollars in debt. If economists view reducing this debt to be critically important, do you think fiscal or monetary policy is a better response to the economic downturn? Explain.
Answer:
Answer 1
Recession is a stage in a business pattern of transitory financial decay during which trade,industrial and monetary movement are diminished, for the most part recognized by a fall in GDP in two progressive quarters. Downturn brings about expansion and joblessness. In such a situation an expansionary monetary arrangement would help a lot in improving the condition of the economy. Monetary strategy is the utilization of government spending and expense approach to address the economy. In an expansionary financial strategy, the administration takes estimates, for example, diminishing assessments, expanding government uses or both, so as to battle recessionary weights.
A decline in charges implies that families have more removal pay to spend. Higher removal pay builds utilization which expands the (GDP). Further, a lessening in charges imparts to the organizations that the legislature is keen on resuscitating the economy. It expands their certainty which thus builds the private speculation part of GDP. Since government uses is a segment of GDP, an expansion in government consumptions brings about an increment in GDP . Further, such an expansion additionally brings about aberrant increment in utilization and different parts of GDP. Along these lines the total interest and the total inventory are both expected to increment. In any case, they don't move together or in extent because of the negative slant in the general public. Family unit will be a little reluctant about spending and the first might be a little suspicious about venture. Deficiency of merchandise can cause swelling and less interest for them can make the organizations stop creation and in this manner bring about joblessness.
Answer 2
Tending to the issue of debt is blustery significant on the grounds that in any case the nation will end up in an debt trap. US may confront expanding inflationary weights, low fare acquiring, less beneficial utilization of assets. It is natural to imagine that contractionary financial arrangement that diminishes the spending is valuable for the decrease for obligation. Yet, on the off chance that the economy in a recessionary express the assessment salary will be exceptionally less and chopping down spending will be of nothing worth mentioning. In such a case inspiring the economy through an expansionary money related arrangement and keeping the swelling in charge is the best choice US can take. In the event that the GDP increments, and the economy come back to its balance, individuals will have the option to make good on charges. Government can then easing back lessen the spending and spotlight on clearing the obligation. In this manner, in the given situation, financial strategy is a superior reaction to a monetary downturn.
Fiscal policy and monetary policy are two primary tools that can be used to address an economic downturn such as a recessionary gap.
Fiscal policy involves changes in government spending and taxation to influence the economy. In the face of a recession, the government can increase spending on infrastructure, social programs, or defense to inject money into the economy, which can create jobs and stimulate demand. Alternatively, the government can cut taxes to increase consumers' disposable income, encouraging spending and investment. The increased government debt that results from higher spending or lower tax revenues can be justified if it leads to a more rapid economic recovery and a return to higher levels of employment and output.
Monetary policy, on the other hand, is controlled by the central bank (the Federal Reserve in the US) and involves managing the money supply and interest rates. During a recession, the central bank can lower interest rates to reduce the cost of borrowing, thereby encouraging businesses to invest and consumers to spend. Additionally, the central bank can engage in quantitative easing, buying government securities and other financial assets to inject liquidity into the economy. This can lower long-term interest rates and increase the money supply, which can help to stimulate economic activity.
Considering the current situation where the US government is deeply in debt, monetary policy might be seen as a more immediate and less politically contentious response to an economic downturn. Monetary policy can be implemented quickly and does not directly increase government debt. However, its effectiveness can be limited if interest rates are already low or if there is a lack of confidence in the economy.
In contrast, fiscal policy can be more direct and targeted in its stimulus but would increase the national debt, which could be problematic given the already high levels of debt. Nevertheless, if the recession is severe enough, the increase in debt might be considered a necessary investment to revive the economy. Moreover, if the government invests in productive capacities, it can lay the groundwork for future economic growth, which can help pay down the debt over time.
In conclusion, both fiscal and monetary policy have roles to play in addressing a severe economic downturn. The choice between them depends on the specific circumstances of the downturn, the current level of interest rates, the effectiveness of monetary policy transmission mechanisms, and the political will to either increase government debt in the short term or risk a deeper and more prolonged recession. If reducing debt is a priority, monetary policy might be preferred initially, but if the downturn is severe, fiscal policy may become necessary despite the increase in debt.
The logic behind this answer is that each policy tool has its strengths and limitations, and the best response to an economic downturn may involve a combination of both fiscal and monetary measures, tailored to the specific needs of the economy at the time. The decision also depends on the effectiveness of past policies, the current economic environment, and the long-term goals of economic stability and growth.