Answer:
Cost of manufactured period= $221000
Explanation:
We need to calculate the production during the period.
Cost of manufactured period= Beginning work in progress inventory+ direct materials + direct labor + factory overhead - ending work in progress
Beginning work in progress= $38000
Cost of raw materials= beginning inventory + purchase - ending inventory= 28000 + 70000 - 33000= $65000
Direct labor= 80000
Manufactured overhead=38000
Ending work in progress= 0
Cost of manufactured period= 38000 + 65000 + 80000 + 38000= $221000
Marginal costs exist because: A. the decision to engage in one activity means forgoing some other activity. B. wants are scarce relative to resources. C. households and businesses make rational decisions. D. most decisions do not involve sacrifices or tradeoffs. Review
Answer:
A. the decision to engage in one activity means forgoing some other activity
Explanation:
The marginal cost is the cost associated with producing an extra unit of output. It is the differnece in total cost at output k and output k+1
The reason behind cost are that using the input (labor, capital and material) to produce a certain good made them unable to use in other activities.
Marginal costs exist due to the concept of opportunity cost, meaning that when a business engages in one activity, it is forgoing some other activity. The cost incurred by producing one additional unit of a product is considered the marginal cost, taking into account everything that is sacrificed to produce that unit.
Explanation:Marginal costs exist because the decision to engage in one activity means forgoing some other activity. This statement represents the concept of opportunity cost, which is a critical element in the realm of economics and business. Marginal cost is the cost incurred by producing one more unit of a product and takes into consideration everything sacrificed to produce that unit, whether it's financial resources, time, labor etc. As such, whenever a business makes a decision to increase production, it is essentially under the influence of marginal costs.
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(1) Depreciation for the current year includes equipment $2,700(2) The beginning balance of Office Supplies was $ 2,100. During the year, Bookfield purchased office supplies for $ 3,400, and at December 31 the office supplies on hand totaled $ 1,100. (Assume that Bookfield debits an asset account when supplies are purchased.)(3) The company had earned $3,400 of unearned revenueJurnalize the adjusting entry needed on December 31 for each situation.
Answer:
depreciation expense 2,700 debit
accumualted depreciation equipment 2,700 credit
--------------------
supplies expense 4,400 debit
supplies 4,400 credit
----------------
unearned revenue 3,400 debit
service revenue 3,400 credit
Explanation:
(1) we declare the expense and credit the accumualted deperication on the long-term assets
(2)
beginning 2,100 + purchase 3,400 = 5,500 availalbe
if we end up with 1,100 then we use 4,400 this will be the suplies expense we will also adjust supplies account to match the physical count.
(3) from the unearned revenue will will write-off 3,400 and reocgnize revenue for that amount
You were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. Recently, you saw that StubHub was listing similar seats for $225 apiece. What does it cost you to attend the concert?
Answer: $450
Explanation:
Total tickets purchased = 2
The cost of one ticket three months ago = $100
Current price of one ticket = $225
Total cost of two tickets = $225 × 2
= $450
The opportunity cost is the benefit that is foregone by selecting some other alternative. So, here two options are available that either attend the concert or resell the ticket at $450. Therefore, the opportunity cost of attending the concert is $450.
Which of the following is an example of cyclical unemployment? A. Dora lost her job when the textile mill closed. She does not have skills to work in another industry and has been unemployed for over a year. B. Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up. C. George is an unskilled worker who mows lawns in the summer, but is unemployed the rest of the year. D. Jim had a job as an engineer, but quit when his wife was transferred to another state. He looked for a month before finding a new job that he liked.
Answer: B. Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel.
Explanation: One concrete example of cyclical unemployment is when an automobile worker is laid off during a recession to cut labor costs. During this downturn, people are buying fewer cars or vehicles, so the owner doesn't need as many workers to meet the demand.
I believe this is the answer
Among the given scenarios, Marsha being laid off from her job with the airline due to a recession-induced reduction in travel demand represents cyclical unemployment. Marsha expects to be rehired when the economy and travel demand rebound.
Explanation:The question asks for an example of cyclical unemployment. Cyclical unemployment refers to the type of unemployment that occurs due to downturns or recessions in the economy. It's temporary and dependent on the economic cycle. From the examples given, the instance that best matches cyclical unemployment is when Marsha was laid off from her job with the airline due to reduced demand resulting from a recession. It's cyclical unemployment because Marsha anticipates resume working once the economy recovers and demand for airline travel increases.
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If an entry to adjust depreciation is not recorded at the end of the period, Depreciation Expense on the income statement will be a. overstated. b. understated. c. unaffected because the omitted entry affects two accounts that cancel each other out. d. unaffected because Depreciation Expense is reported on the balance sheet, not on the income statement.
Answer:
Understated
Explanation:
In accounting, long-term assets are said to be subject to wear and tear. This results from their constant use in business operations. This wear and tear is also known as depreciation. Depreciation thus, is the loss of value of the long-term assets that are used in business operations. In accounting, depreciation is recorded as an expense although no cash transactions are involved. Failure to record depreciation incurred in a financial year will amount to undervaluing or understating the depreciation expense for the year.
Answer:
The answer is (B)- Understated.
Explanation:
Depreciation is charged on depreciable assets to match depreciation expenses which represent economic benefit consumed with the revenue generated for the period under consideration. It is an accounting estimate which involved alot of discretion from the users to determine which method to use for the computation i.e either straight line or reducing balance method or any other methods considered suitable.
Option A-False. It can only be overstated if more than one adjustment is posted on the same asset
Option B- True.
Option C- False. The omitted entry affects depreciation expense(DR) and Accumulated Depreciation (CR)
Option D-False. It is reported on balance sheet as accumulated depreciation and on Income statement as depreciation expense
Considers the graph that represents the supply and demand in the market for automobiles. For each of the following events, draw the new market outcome, and say whether the equilibrium price and quantity will increase or decrease. Always begin with the market at the original equilibrium. Make sure you label your curves properly.
a. Environmentalists launch a successful One Family, One Car campaign.
b. A steel tariff increases the price of steel.
c. A baby boom occurred 16 years ago.
d. An oil shortage causes the price of gasoline to soar.
e. Improvements in robotics increase efficiency and reduce costs.
f. The government offers a tax rebate for the purchase of commuter rail tickets.
Answer:
Please see figures attached
Explanation:
a. If the campaign is successful, this will shift the demand inwards decreasing the demand for cars.
b. A steel tariff increases cost so shifts supply inwards
c. Baby boom 16 years ago increases people demanding car now, thus shifting demand outwards
d. Price in gasoline increases, which is a complement of cars, then demand will shift inwards, people will demand fewer cars.
e. Improvements in robotics reduce costs, Supply shift outwards.
f. A government policy reduces the price of a substitute good (trains) this will generate demand to shift inwards.
Events like increased fuel efficiency of cars and major oil discoveries can lower equilibrium price and increase equilibrium quantity of oil.
Explanation:In each case, we need to determine whether the event affects supply or demand in the market for oil. Then, we can predict the impact on equilibrium price and quantity by considering how the event will shift the supply and demand curves.
If cars become more fuel efficient, it will increase the supply of oil because cars will need less fuel to travel the same distance. This will lower the equilibrium price and increase the equilibrium quantity of oil.If the winter is exceptionally cold, it will increase the demand for oil as people use more heating oil. This will increase the equilibrium price and quantity of oil.If a major discovery of new oil is made off the coast of Norway, it will increase the supply of oil. This will lower the equilibrium price and increase the equilibrium quantity of oil.At the beginning of the year, Novak had an inventory of $550000. During the year, the company purchased goods costing $2340000. If Novak reported ending inventory of $970000 and sales of $2920000, their cost of goods sold and gross profit rate would be
Answer:
COGS 1,920,000
Gross Profit rate 34.24%
Explanation:
We solve for COGS using the inventory identity:
[tex]Beginning \: Inventory+ purchase = ending \: Inventory + COGS[/tex]
The left side are the input of inventory and the right side, the destination afterall, a units can be either on the ending inventory or sold.
We clear for COGS
COGS = beginning + purchase - ending
then plug the values into the formula and solve.
COGS = 550,000 + 2,340,000 - 970,000 = 1,920,000
The sales value is not in the formula so, we ignore this data.
Gross profit rate:
(Sales - COGS)/Sales
(2,920,000 - 1,920,000)/2,920,000 = 1,000,000 / 2,920,000 = 0.3424 = 34.24%
From every dollar of sale, the company obtain 34.24% of gross profit
The direct labor rate for Brent Corporation is $9.00 per hour, and manufacturing overhead is applied to products using a predetermined overhead rate of $6.00 per direct labor-hour. During May, the company purchased $60,000 in raw materials (all direct materials) and worked 3,200 direct laborhours. The Raw Materials inventory (all direct materials) decreased by $3,000 between the beginning and end of May. The Work in Process inventory on May 1 consisted of one job which had been charged with $4,000 in direct materials and on which 300 hours of direct labor time had been worked. There was no Work in Process inventory on May 31. 36. (93) The balance in the Work in Process inventory account on May 1 was: A. $0 B. $6,700 C. $4,500 D. $8,500 37. (94) The debit to Work in Process for the cost of direct materials used during May was: A. $63,000 B. $61,000 C. $57,000 D. $67,000 38. (95) The debit to Work in Process for direct labor cost during May was: A. $21,000 B. $26,100 C. $28,800 D. $31,500 39. (96) If overhead was underapplied by $2,500 during May, the actual overhead cost for the month must have been: A. $16,700 B. $21,700 C. $18,500 D. $23,500
Answer:
1.- first question D. Beginning WIP: $8,500
2.- second question A raw materials used. $63,000
3.- third quesion B. $21,700 actual overhead
Explanation:
Balance in May 1st
4,000 direct materials
300 hours x $9 labor rate = 2,700
300 hours x $6 overhead rate = 1,800
Total 8,500
We have to calculate the total cost for materials added for the month
beginning + purchase - used into production = ending
We are given the fact that balance decrease by 3,000 so
ending - beginning = -3,000
we post that into the formula:
purchase - used into production = ending - beginning
60,000 - production = -3,000
production = 63,000
applied overhead:
3,200 hours x 6 = 19,200
If underapplied by 2,500 then:
applied - actual = -2,500
so
19,200 - actual = -2,500
19,200 + 2500 = actual
actual overhead = 21,700
The Work in Process Inventory on May 1 was $8,500, the cost of direct materials used in May was $57,000, the direct labor cost was $28,800, and if overhead was underapplied by $2,500 then the actual overhead cost was $21,700.
Explanation:The balance in the Work in Process Inventory account on May 1 can be calculated by adding the cost of direct labor and the applied manufacturing overhead. For 300 labor hours at $9 per hour, the labor cost is $2,700. The manufacturing overhead is $6 per labor hour, totaling $1,800 ($6 * 300). Therefore, the total Work in Process Inventory is $4,000 (direct materials) + $2,700 (labor) + $1,800 (overhead) = $8,500. That is Option D.
The cost of direct materials used during May can be calculated as follows: The beginning inventory was $60,000 and the ending inventory decreased by $3,000, therefore the cost of direct materials used is $60,000 - $3,000 = $57,000. That is Option C.
The labor cost for May is calculated by multiplying the hours worked by the cost per hour: 3,200 hours * $9/hour = $28,800. That is Option C.
If overhead was underapplied by $2,500 that means the actual overhead costs were greater than what was applied. The applied overhead was calculated as 3,200 labor hours * $6/hour = $19,200. So, the actual overhead costs must be $19,200 + $2,500 = $21,700. That is Option B.
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Which of the following statements is (or are) consistent with the view that the pie is not fixed in free markets? In every trade, there is a winner and a loser. Trade is to mutual advantage. High standards of living in free‑market economies are attributable to trade. In markets, wealth is created not just distributed or transferred. Trade maximizes the zero sum.
Answer:
(D) In markets, wealth is created not just distributed or transferred
Explanation:
(A) FALSE: Trade is done base on both parties agreement. Therefore there is no winner and loser, if one part felt that way it would stop trading.
(B) correct, there is mutual advantage, but it do not explain why the pie is not fixed
(C) correct, but also it do not explain the reason why the income is not fixed
(D) Correct, and the reason why the pie is not fixed. Wealth is being generated constantly with every trade. There is more wealth at more trade therefore, the pie is not fixed, the income of one people is tnot taken from the income of another people. It is generate base on his own trade. The person trade his labor force, goods and capital to receive income, it do not take it from another person.
(E) Trade maximizes the zero sum. FALSE here is no zero sum on trade. Both parties receive something, the parties trade goods for currency at a price which both agree. There is no loss
Derek's new office is undergoing a minor renovation and he cannot conduct business in the location for approximately six months. He decided to lease a temporary office in Samantha's building from June 1 to December 30. Which type of lease has Derek signed? An Estate for Years
Answer: An Estate for years.
Explanation: An estate for years is a type of leasehold estate that lasts for a specific period of time. The beginning and ending dates are specified in the lease, along with the amount paid in rent. No notice is required to vacate, as the tenant is expected to vacate at the end of the lease. In real estate, one type of leasehold estate is the "estate for years," or "estate for term." this type of lease, there is a defined specific beginning date and an ending date for a specific term. This means that no notice to vacate is required, as the ending date of the lease is when the tenant should vacate the property. The lease cannot be terminated before expiration unless both parties agree. The rights and obligations of the owner or landlord and the tenant are spelled out in the lease. Real estate lease agreements consist of numerous elements that set out the rights and obligations of the lessor/landlord and the lessee/tenant. In the absence of restrictions on use, the tenant can normally utilize the property for any lawful purpose.
Derek signed an Estate for Years lease, which is for a specific, fixed period and requires clear notice for termination after the lease period ends.
Explanation:Derek has signed an Estate for Years lease for his temporary office in Samantha's building. This type of lease refers to a tenancy for a specific, fixed period of time, which in this case is from June 1 to December 30. The termination clause of Derek's lease agreement indicates that after the lease period expires, it converts to a month-to-month tenancy until either party provides a 30-day written notice of intention to terminate. Moreover, it requires the tenant to clear all possessions and return keys and property to the owner upon vacating.
The journal entry to record the allocation of factory overhead to work in process is: (A) debit Work in Process Inventory and credit Factory Overhead(B) debit Factory Overhead and credit Work in Process Inventory(C) debit Cash and credit Factory Overhead(D) debit Work in Process Inventory and credit Cash
Answer:
(A) debit Work in Process Inventory and credit Factory Overhead
Explanation:
On cost accounting, the debit is the destination of the cost.
And the credit the origin, to record the allocation of factory overhead, the destination is the work in proces, and the origin, the reason of existence of the cost is the factory ovehead which, will be credited.
Same idea applies when posting the materials used and the direct labor. A debit to work in process(destination) is made and then, a credit to raw materials inventory (origin) or labor payable (origin)
Pretty Lady Cosmetic Products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an average of 35 days, and the firm receives 40 days of credit on its purchases from suppliers. Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year?
The average length of the firm's short-term operating cycle is 50 days.
Operating cycle
Operating cycle=Days inventory outstanding+Days sales outstanding
Operating cycle=15 days+35 days
Operating cycle=50 days
Cycle over a year=365 days/50 days
Cycle over a year=7.3 times
Inconclusion the average length of the firm's short-term operating cycle is 50 days.
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The average length of the firm's short-term operating cycle is 90 days, and the cycle would turn over approximately 4 times in a year.
Explanation:The average length of the firm's short-term operating cycle can be estimated by adding the average production process time, the average time finished goods are kept on hand, and the average accounts receivable outstanding. In this case, the average length of the short-term operating cycle would be 40 days (production process time) + 15 days (goods on hand) + 35 days (accounts receivable) = 90 days.
To calculate how often the cycle would turn over in a year, we divide 365 (the number of days in a year) by the average length of the operating cycle. In this case, 365 / 90 = 4.06. So, the cycle would turn over approximately 4 times in a year.
A retail store had sales of $45,650 in April and $55,215 in May. The store employs eight full-time workers who work a 40-hour week. In April the store also had six part-time workers at 11 hours per week, and in May the store had eight part-timers at 18 hours per week (assume four weeks in each month). Using sales dollars as the measure of output, what is the percentage change in productivity (dollars output per labor hour) from April to May?
The percentage change in productivity from April to May is approximately 0.44%, indicating a slight increase in productivity per labor hour.
To calculate the percentage change in productivity from April to May, we need to compare the labor hours and sales for both months.
In April:
Full-time labor hours = 8 workers × 40 hours/week × 4 weeks
= 1,280 hours
Part-time labor hours = 6 workers × 11 hours/week × 4 weeks
= 264 hours
Total labor hours = 1,280 + 264
= 1,544 hours
Sales = $45,650
Productivity in April = Sales / Total labor hours
= $45,650 / 1,544 hours
≈ $29.62 per hour
In May:
Full-time labor hours = 8 workers × 40 hours/week × 4 weeks
= 1,280 hours
Part-time labor hours = 8 workers × 18 hours/week × 4 weeks
= 576 hours
Total labor hours = 1,280 + 576 = 1,856 hours
Sales = $55,215
Productivity in May = Sales / Total labor hours
= $55,215 / 1,856 hours
≈ $29.75 per hour
Percentage change = ((Productivity in May - Productivity in April) / Productivity in April) × 100
Percentage change = (($29.75 - $29.62) / $29.62) × 100 ≈ 0.44%.
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The percentage change in productivity from April to May is approximately 0.464%.
Explanation:To calculate the percentage change in productivity from April to May, we need to determine the total labor hours worked and the total output (sales) for each month. In April, we have 8 full-time workers who work 40 hours per week, which is a total of 320 labor hours (8 workers * 40 hours). Additionally, we have 6 part-time workers at 11 hours per week, which is a total of 66 labor hours (6 workers * 11 hours). So, the total labor hours in April is 386 hours (320 + 66).
The total output (sales) in April is $45,650.
In May, we have 8 full-time workers who work 40 hours per week, which is a total of 320 labor hours (8 workers * 40 hours). Additionally, we have 8 part-time workers at 18 hours per week, which is a total of 144 labor hours (8 workers * 18 hours). So, the total labor hours in May is 464 hours (320 + 144).
The total output (sales) in May is $55,215.
To calculate the productivity (dollars output per labor hour) in April, we divide the total output by the total labor hours: $45,650 / 386 hours = $118.39 per hour. Similarly, in May, the productivity is $55,215 / 464 hours = $118.94 per hour.
To calculate the percentage change in productivity, we use the formula: ((New Value - Old Value) / Old Value) * 100. So, the percentage change in productivity from April to May is ((118.94 - 118.39) / 118.39) * 100 = 0.464%, approximately.
The CFO of Green Dating Service, Inc. has just collected the following data for December 31, 2018. Write a balance sheet and an income statement. Accounts Receivable 250,000 Accounts Payable 260,000 Capital Surplus 100,000 Cash 190,000 Common Stock 300,000 Costs 640,000 Depreciation Expense 40,000 Dividends 97,500 Net Furniture & Fixtures 200,000 Goodwill 180,000 Interest Expense 50,000 Inventory 175,000 Land 305,000 Line of Credit (used) 200,000 Long Term Loan 340,000 Retained Earnings ? Sales 980,000 Tax rate 21%
Answer:
Retained Earnings: $ 100.000
Explanation:
Assets
Cash $190.000
Accounts Receivable $250.000
Net Furniture & Fixtures $200.000
Goodwill $180.000
Inventory 175.000
Land 305.000
TOTAL 1.300.000
Liabilities
Accounts Payable 260.000
Long Term Loan 340.000
Short Term Loan 200.000
Equity
Capital Surplus 100.000
Common Stock 300.000
Retained Earnings 100.000
TOTAL 1.300.000
INCOME STATEMENT
Sales 980.000
Costs -640.000
Depreciation Expense -40.000
Interest Expense -50.000
Earnings Before Taxes 250.000
Tax RATE -52.500
Net Income 197.500
Dividends : $ 97.500
Retained Earnings : $ 100.000
Baker Mfg Inc. wishes to compare its inventory turnover to those of industry leaders, who have turnover of about 1313 times per year and 88% of their assets invested in inventory. Baker Mfg. Inc. Net Revenue $27 comma 50027,500 Cost of sales $20 comma 05020,050 Inventory $1 comma 2801,280 Total assets $17 comma 02017,020 a) What is Baker's inventory turnover? 15.6615.66 times per year (round your response to two decimal places). b) What is Baker's percentage of assets committed to inventory? 88% (enter your response as a percentage rounded to two decimal places).
Answer:
(A) 156.63 times
(B) 0.75
Explanation:
(A) The computation of the inventory turnover ratio is shown below:
Inventory turnover ratio = (Cost of goods sold) ÷ (Inventory)
= $2,005,020,050 ÷ $12,801,280
= 156.63 times
(B) The computation of the percentage of assets is shown below:
= (Total inventory) ÷ (total assets) × 100
= ($12,801,280) ÷ ($1,702,017,020) × 100
= 0.75
Jane is a middle-aged woman fond of EpidermaNow's skincare products. These products are produced and marketed globally. EpidermaNow recently released a sun-screen lotion. Despite the lotion's high price and unproven effectiveness, Jane bought the lotion on the day of its release in the market. Given this information, Jane belongs to the segment of _____.
a. global citizens
b. global dreamers
c. antiglobals
d. global agnostics
Answer: Global citizens
Explanation: In simple words, those individuals who have a wider understanding of the world than others are called global citizens. These are the citizens who take active participation in all those activities that connect world globally and in a more equal and sustainable manner.
In the given case, Jane is purchasing the product because it has a global acceptance, despite of its high price.
Hence from the above we can conclude that the she is a global citizen.
Compute the missing amount in the accounting equation for each company (amounts in billions): Assets Liabilities Stockholders' Equity Love Drycleaners $ ? $43 $38 Ernie's Bank 25 ? 20 Weekly Stop Grocery 38 9 ? Requirement 1. Which company appears to have the strongest financial position? Explain your reasoning. Calculate the missing amounts. (Enter amounts in billions.) Assets Liabilities Stockholders' equity Love Drycleaners 81 $43 $38 Ernie's Bank 25 45 20 Weekly Stop Grocery 38 9
Answer:
Love Drycleaner's Assets: 81
Ernie's Bank Liability: 5
Weekly Stop Grocery Equity: 31
Ernie's Bank has the strongest financial position as it has de better debt to equity ratio
Explanation:
Accounting equation:
Assets = Liability + Equity
Love Drycleaners:
Assets ??? = Liab 43 + Equity 38
Assets = 43 + 38 = 81
Ernie's Bank:
Assets 25 = Liab ?? + Equity 20
Liab= 25 - 20 = 5
Weekly Stop Grocery:
A 38 = L 9 + E ??
equity = 38 - 9 = 31
THe strongest financial position will be for Ernie's Bank
As the debt to equity ratio is the lowest:
Love Drycleaners: 43/38 = 1.13 there is 1 dollar of debt per every dollar of quity an increase in the interst rate may cause troubles to this company.
Ernie's Bank: 5/20 = 0.25 There is 0.25 of debt per every dollar of equity This company is finance almost through equity so it could useleverage if needed to keep operations
Weekly Stop Grocery: 9/31 = 0.29 This company is also in good position as Ernie's but the question is for the strongest and that one is Ernie's Bank
All else equal, if job turnover has people leaving jobs and finding new jobs in the same industry, this will A. increase the demand for labor and the supply of labor. B. increase the demand for labor and decrease the supply of labor. C. decrease the supply of labor, but not change the demand for labor. D. not change demand or supply in the labor market.
Answer:
D. not change demand or supply in the labor market.
Explanation:
As people is finding new jobs in the same industry, it can be said that there is no evident change in the demand of labor neither in the supply of labor.
Job turnover can be high or low, not necessarily related to a variation in demand or jobs offers.
This turnover may be produced by a increase in the demand of labor, but it is being satisfied by people in the same industry.
An individual is now 50 years old, that he plans to retire in 10 years, and that he expects to live for 25 years after he retires, that is, until he is 85. He wants a fixed annual retirement income of $65,156. His retirement income will begin the day he retires, 10 years from today, and he will then get 24 additional annual payments. He currently has $100,000 saved up; and he expects to earn a return on his savings of 8 percent per year, annual compounding. To the nearest dollar, how much must he save during each of the next 10 years (with deposits being made at the end of each year) to meet his retirement goal?
Answer:
Ans. He must save during each of the following 10 years, at the end of each year $32,452.
Explanation:
Hi, in order to find the amount of money that he should have in ten years so he can receive an annual payment of $65,156 for 25 more years (24 payments), we need to bring to present value all 24 payments to year 10. Let me show you the formula.
[tex]PresentValue_{10} =\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }[/tex]
Where:
A= $65,156
n= 24
r= 0.08
Therefore the present value in year 10 is:
[tex]PresentValue_{10} =\frac{65,156((1+0.08)^{24}-1) }{0.08(1+0.08)^{24} }=686,012[/tex]
So that is our present value in year 10, or to put it in other words, our future value (if we look at it from year 0). Now we need to find the annuity (amount to save) that with account for $686,012, plus that $100,000 that he already has saved.
Every should look like this.
[tex]686,012=100,000*(1+0.08)^{10} +\frac{A((1+0.08)^{10}-1) }{0.08(1+0.08)^{10} }[/tex]
And we solve this equation for "A".
[tex]686,012=A(14.4865625)+215,892[/tex]
[tex]A=\frac{(686,012-215,892)}{14.4865625} =32,452[/tex]
Best of luck.
A manual assembly line must be designed for a product with annual demand of 150,000 units. The line will operate 50 wk/yr, 10 shifts/wk, and 7.5 hr/shift. Work units will be attached to a continuously moving conveyor. Work content time is 58.0 min. Assume line efficiency is 0.95, balancing efficiency is 0.93, and repositioning time is 8 sec. Determine the actual number of workers required.
Answer:
The required workers will be 48
Explanation:
The first step will be calcualte the rate of production per hour:
Rate: 150,000 / (50 wk x 10/wk x 7.5hr/shift) = 150,000/3750 = 40
Then the amount it takes to do a single unit:
Cicle: 60 minutes per hours x 0.95 efficiency / 40 units per hour:
1.425 minutes per unit
Then we include repositioning:
1.425 - repositioning: 8/60 = 1,291666666666667 min
The actual workers needed will be:
working time / balancing efficient x net cycle
58 minutes per worker / 0.93 (1,291666666666667) = 48
A partially amortizing loan for $90,000 for 10 years is made at 6 percent interest. The lender and borrower agree that payments will be monthly and that a balance of $20,000 will remain and be repaid at the end of year 10. Assuming 2 points are charged by the lender, what will be the yield if the loan is repaid at the end of year 10? What must the loan balance be if it is repaid after year 4? What will be the yield to the lender if the loan is repaid at the end of year 4?
Answer:
Ans.
A) The yield if the loan is repaid at the end of year 10 will be 6.3816%
B) The loan balance be if it is repaid after year 4 will be $66,767.48
C) The yield to the lender if the loan is repaid at the end of year 4 will be 6.6416%
Explanation:
Hi, in order to find the yield of the loan, for a 10 year period at 6% for $90,000, we would have to use MS Excel to find the cash flow and then use the "IRR" function. Please relate to the attached file to this answer for further details in the calculations.
Ans. 6.3816%
In the case of the loan balance at the end of year 4, all we need to do is to bring to year 4 all future cashflows, since there are 6 left to pay, we can use the following equation.
[tex]PresentValue(4)=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }[/tex]
Before we do that, we have to find the annual payment of the loan taking into account that the balance at the end of year 10 has to be $20,000, so we solve the following equiation for "A" before we find the present value(4). This is as follows.
[tex]90,000=\frac{A((1+0.06)^{10}-1) }{0.06(1+0.06)^{10} }+\frac{20,000}{(1+0.06)^{10} }[/tex]
[tex]90,000-\frac{20,000}{(1+0.06)^{10} }=\frac{A((1+0.06)^{10}-1) }{0.06(1+0.06)^{10}}[/tex]
[tex]78,832.10=A(7.360087051)[/tex]
[tex]A=\frac{78,832.10}{7,360087051} = 10,710.76[/tex]
Ok, now that we know this value, we use the formula to find the present value of the 6 remaining payments plus 20,000 6 periods away.
[tex]PresentValue=\frac{10,710.76((1+0.06)^{6}-1) }{0.06(1+0.06)^{6} } +\frac{20,000}{(1+0.06)^{6} }[/tex]
[tex]PresentValue=66,767.48[/tex]
As in the case of the first question, we have to use MS Excel to find out the yield to the lender if the loan is repaid at the end of year 4. So please check out the attached document.
Ans. 6.6416%
Best of luck
Final answer:
Calculating the yield of a partially amortizing loan, as well as the loan balance and yield if the loan is repaid after year 4, involves complex financial calculations, including the effects of points on loan cost and yield, amortization schedules, and the distinction between principal and interest payments over time.
Explanation:
To calculate the yield of a partially amortizing loan and determine the loan balance and yield if repaid after year 4, we need to understand several concepts related to loan amortization, interest rates, and yield calculations. This question involves a complex financial calculation that requires understanding of present value, interest rates, and loan amortization schedules.
Calculating Yield on a Partially Amortizing Loan
Yield, in the context of this question, refers to the lender's return on the loan, taking into account the initial loan amount, any fees or points charged, monthly repayments, and the final balloon payment. Calculating this requires detailed financial formulae not provided in the summary, including the use of present value of annuity formulas and understanding of how points affect the effective cost of the loan and yield to the lender. Points charged upfront effectively reduce the amount of the loan disbursed and increase the lender's yield because they represent prepaid interest.
Loan Balance Repayment After Year 4
Determining the loan balance if repaid after year 4 requires calculating the amount of principal repaid by that time, factoring in monthly payments and how they are split between paying off interest and reducing the principal. This involves generating an amortization schedule for the loan.
Yield to the lender if the loan is repaid at the end of year 4 again involves complex calculations similar to those described above, adapting them to a shorter timeframe and the remaining loan balance at that time.
When the price of a bar of chocolate is $1, demand is 100,000 bars. When the price rises to $1.50, demand falls to 60,000 bars. Calculate the price elasticity of demand according to the instructions below and express your answer in absolute value. a. Suppose price increases from $1 to $1.50. Calculate the price elasticity of demand in terms of percent change. b. Suppose price decreases from $1.50 to $1. Calculate the price elasticity of demand in terms of percent change. c. Suppose the price increases from $1 to $1.50. Calculate the price elasticity of demand using the mid-point method. d. Suppose the price decreases from $1.50 to $1. Calculate the price elasticity of demand using the mid-point method.
Answer:
Instructions are listed below
Explanation:
Price elasticity of demand is an economic measure of the change in the quantity demanded or purchased of a product to its price change. If the quantity demanded of a product exhibits a large change in response to changes in its price, it is termed "elastic," that is, quantity stretched far from its prior point. If the quantity purchased has a small change in response to its price, it is termed "inelastic", or quantity didn't stretch much from its prior point.
Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price
A) PED= [(Q2-Q1)/Q1]/[(P2-P1)/P1]
PED= [(1.5-1)/1]/[(60000-100000)/100000]= 1.25
B) PED= [(1-1.5)/1.5]/[(100000-60000)/60000]= 0.5
C)Midpoint formula:
PED= {(Q2-Q1)/[(Q2+Q1)/2]}/{(P2-P1)/[P2+P1)/2]}
PED= {(60000-100000)/[(60000+100000)/2]}/{(1-1.5)/[1+1.5)/2]}
PED=0.5/0.4= 1.25
D) Midpoint formula:
PED= {(Q2-Q1)/[(Q2+Q1)/2]}/{(P2-P1)/[P2+P1)/2]}
PED= {(100000-60000)/[(100000+60000)/2]}/{(1.5-1)/[1.5+1)/2]}
PED= 0.5/0.4= 1.25
Suppose that Maroney Corporation produced and sold 4,800 laptop computers during the year. It reported $140,000 cash provided by operating activities. In order to maintain production at 4,800 laptops, Maroney paid $35,000 for equipment. Maroney paid $10,000 in dividends and it paid a $25,000 note payable. Shortly before year-end, Maroney received $20,000 by issuing additional shares of its stock. What is Maroney’s free cash flow? Group of answer choices $70,000 $95,000 $115,000 $130,000 $90,000
Answer:
$95,000
Explanation:
The computation of the free cash flow is shown below:
= Operating activities - capital expenditure - dividend paid
= $140,000 - $35,000 - $10,000
= $95,000
The dividend is also a part of the capital expenditure, that's why we deduct it.
The notes payable is already included in the operating activity, so no treatment is done, and the additional shares are also not be considered in the computation part. Hence, ignored it.
MAVERICK COMPANY Trial Balance Before Adjustment December 31, 20X1 Debit Credit Cash $ 51,000 Accounts Receivable 7,500 Supplies 2,000 Note Payable $ 10,000 Unearned Revenues 21,000 Common Stock 18,000 Retained Earnings 15,000 Dividends 2,000 Revenues 14,000 Salary & Wage Expense 6,500 Rent Expense 9,000 TOTALS $ 78,000 $ 78,000 Additional Information: Supplies on hand at the end of December were $800 Of the unearned revenues, 60% of the work had been completed during the year. On Nov. 1, 20X1, Maverick paid 6-months of rent in advance for a total of $9,000. The bookkeeper debited rent expense when recording this payment. As of December 31st, accrued salaries were $400. Payday is January 2, 20X2. The Note Payable is a one-year, 8% note, issued on October 1, 20x1 Required: To record the necessary Adjusting Journal Entry for #3 above, you would:
Answer:
rent expense 3,000 debit
prepaid rent 3,000 credit
Explanation:
To record the necessary Adjusting Journal Entry for #3
Being #3:
On Nov. 1, 20X1, Maverick paid 6-months of rent in advance for a total of $9,000.
We will calculate the value of a single month by dividing the 9,000 prepaid payment over the six month paid
9,000/6 = 1,500
Now we multiply by the months past:
1,500 x 2 (November and December) = 3,000
the entry will recognize an expense for 3,000 and decrease the prepaid for the same ammount.
Kenji is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Because his pool sessions are helping him swim more quickly, Kenji plans to reduce by 1 hour per week the time he spends training on the bike and increase by 1 hour the time he spends in the swimming pool; however, his wife says that he should stop doing any biking and running and spend all 20 hours per week in the pool. Which basic principle of individual choice does Kenji's plan illustrate that his wife's advice does not? Resources are scarce. Many decisions are made on the margin. All costs are opportunity costs. People usually exploit opportunities to make themselves better off
Answer: Option(b) is correct.
Explanation:
According to this principle, many of the economics decision are based on the cost incurred and benefit obtained from that decision. It also includes the utility or benefit obtained from an additional unit of consumption or production. In our case, Kenji wants to spend an extra hour on swimming because pool sessions are so good that would increase his chances of winning triathlon.
Therefore, Many decisions are made on the margin.
Final answer:
Kenji's plan to reallocate his training hours represents the principle of making decisions on the margin, considering the scarcity of time and opportunity costs, unlike his wife's suggestion.
Explanation:
Kenji's plan to adjust his training time for a triathlon by reallocating time between swimming and cycling illustrates the economic principle that many decisions are made on the margin. This principle acknowledges that resources, including time, are scarce, and thus we must make decisions that marginally adjust our allocations to maximize utility. Kenji is choosing to slightly increase his investment in the area where he sees greater marginal gains, swimming, instead of dropping other activities completely as suggested by his wife. Conversely, his wife's advice disregards this marginal decision-making and lacks consideration of the opportunity costs associated with forsaking biking and running training completely.
Deborah and Carlos need to decide which one of them will take time off from work to complete the rather urgent task of pruning their trees. Deborah is pretty good with a pole saw; she can prune the trees in 30 minutes. Carlos is somewhat slow; it takes him 5 hours to prune the trees. Deborah earns $130 per hour as a psychiatrist, while Carlos earns $25 per hour as a cobbler.
Keeping in mind that either Deborah or Carlos must take time off from work to prune the trees, who has the lowest opportunity cost of completing the task?
Answer:
Deborah has the lowest opportunity cost.
Explanation:
The opportunity cost of completing the task is the income they stop to earn meanwhile they are pruning their trees.
Deborah earns $130 per hour with her job of psychiatrist. If she prunes the trees, she will spend 30 minutes in doing so. Then, she will have an opportunity cost from those 30 minutes, and it is equal to 130:2 = $65.
Carlos earns $25 per hour with his job of cobbler. If he prunes the trees, he will spend 5 hours of his job. Then, he will have an opportunity cost of 5*25 = $125.
So, Deborah has the lowest opportunity cost.
The following transactions pertain to the operations of Ewing company for year 2.
1.Acquired $30,000 cash from the issue of common stock
2.Provided $65,000 of services on account
3.Paid $22,000 cash on accounts payable
4.Performed services for $8000 cash
5.Collected $51,000 cash from accounts receivable
6.Incurred $37,000 of operating expenses on account
7.Paid $6500 cash for one years rent in advance
8.Paid a $4000 cash dividend to the stockholders
9.Paid $1200 cash for supplies to be used in the future
10.Recognize $3100 of accrued salary expense
Prepare a statement of cash flow‘s. The beginning cash balance was $6700.
Answer:
ending cash balance 62,000
Explanation:
operating activities:
services on cash 8,000
collected from AR 51,000
paid to supplies (22,000)
rent paid (6,500)
supplies paid (1,200)
cash generated from operating: 29,300
financing activities:
issuance of stock 30,000
cash dividends paid (4,000)
cash generated from financing: 26,000
cash generated during the year: 55,300
beginning cash balance 6, 700
ending cash balance 62,000
The statement of cash flows shows the cash inflows and outflows of a company. Based on the provided transactions, the statement of cash flows for Ewing Company in year 2 can be prepared. The transactions are categorized into operating, investing, and financing activities.
Explanation:The statement of cash flows reports the cash inflows and cash outflows of a company during a specific period. It categorizes cash flows into three main sections: operating activities, investing activities, and financing activities.
Based on the provided transactions, here is the statement of cash flows for Ewing Company for year 2:
Cash flows from operating activities:Received $65,000 from accounts receivablePaid $22,000 on accounts payableIncurred $37,000 of operating expenses on accountRecognized $3,100 of accrued salary expenseCash flows from investing activities:Paid $1,200 for suppliesCash flows from financing activities:Acquired $30,000 cash from the issue of common stockPaid $6,500 for one year's rent in advancePaid $4,000 cash dividend to stockholdersBy considering the cash flows from each activity, you can determine the net change in cash for the period, which you can add to the beginning cash balance to obtain the ending cash balance.
1. Classify the following manufacturing costs of Business Solutions as (a) variable or fixed and (b) direct or indirect. 2. Prepare a schedule of cost of goods manufactured for Business Solutions for the month ended January 31, 2020. Assume the following manufacturing costs: Direct materials: $2,200 Factory overhead: $490 Direct labor: $900 Beginning work in process: none (December 31, 2019) Ending work in process: $540 (January 31, 2020) Beginning finished goods inventory: none (December 31, 2019) Ending finished goods inventory: $350 (January 31, 2020) 3. Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2020.
Answer:
Csot of goods sold= $2700
Explanation:
A)
Variable:
Direct materials: $2,200
Factory overhead: $490
Direct labor: $900
Fixed:
Nono
Direct:
Direct materials: $2,200
Direct labor: $900
Indirect:
Factory overhead: $490
B)
The cost of goods sold refers to the direct costs attributable to the production of the goods sold in a company. This amount includes the cost of the materials used in creating the goods along with the direct labor costs used to produce the goods. It excludes indirect expenses, such as distribution costs and sales force costs.
COGS=Beginning Inventory+Production during period−Ending Inventory
We need to calculate the production during the period.
Cost of manufactured period= Beginning work in progress inventory+ direct materials + direct labor + factory overhead - ending work in progress
Cost of manufactured period=0+2200+900+490-540= $3050
COGS=Beginning Inventory+Production during period−Ending Inventory= 0 + 3050 - 350 = $2700
Direct materials, factory overhead, and direct labor are variable and direct costs. The cost of goods manufactured for Business Solutions in January is $3,050, and the cost of goods sold is $2,700.
Explanation:1. The manufacturing costs can be classified as follows: Direct material, Factory overhead, and Direct labor are likely to be variable costs that change with the level of production, and they are all direct costs that can be traced to specific products manufactured by Business Solutions.
2. To create the schedule of the cost of goods manufactured, you start with the direct costs: Direct materials ($2,200) and Direct labor ($900). Then you add the Factory overhead($490). There is no beginning work in process so Total Manufacturing Costs is $3,590 ($2,200+$900+$490). Subtract the ending work in process ($540) to get the Cost of Goods Manufactured which is $3,050 ($3,590-$540).
3. To prepare the cost of goods sold (COGS) section of the partial income statement, begin with the Cost of Goods Manufactured ($3,050). There is no beginning finished goods inventory and subtract the ending finished goods inventory ($350) to get the final Cost of Goods Sold which is $2,700 ($3,050-$350).
Learn more about Manufacturing Costs here:https://brainly.com/question/33479454
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President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that
a. one of them must be lying.
b. both of them could be telling the truth if the labor force, and employment grew at the exact same rate.
c. both of them could be telling the truth if the labor force grew slower than employment.
d. both of them could be telling the truth if the labor force grew faster than employment
Answer:
d. both of them could be telling the truth if the labor force grew faster than employment
Explanation:
The president claims that more people are working, this is a nominal approach, if 5000 people were working at the beginning of his term and now, which is ending it has 5001 people working his statement will be true.
The senator makes a more economic approach, while there are more people employement, we must remember than the labor force grows each day, as more kids finish their studies and jump right into the search of jobs.
So, both statement can be true, example
at beginning
600/6,000 = 10& unemployement
6,000 labor force - 600 unemployee = 5,400 working
leaving the office:
1,100/10,000 = 11% unemployement
10,000 labor force - 1,100 unemployee = 8,900 working
UNder this scenario, both are true.
Catamount Company had current and accumulated E&P of $500,000 at December 31, 20X3. On December 31, the company made a distribution of land to its sole shareholder, Caroline West. The land's fair market value was $200,000 and its tax and E&P basis to Catamount was $250,000. The tax consequences of the distribution to Catamount in 20X3 would be:
Answer:
It could have an impact of -50.000 in the E&P sheet
Explanation:
It could have an impact of -50.000 in the E&P sheet. This impact is possible if the company decides to make a new record prior the written off of the assets (land), updating the fair market value in -50.000 (debit E&P, and credit in Assets in the balance sheet). With this record, the profit of the company would be 450.000 and not 500.000. It is also possible to avoid any impact on the E&P sheet by writing off the assets based in 250.000 and making a debit in the equity (reserves). In any case, the net impact in the balance sheet will be the same, -250.000 Assets, -250.000 Equity.