Answer:
B) ignore the preferred stock dividends when calculating the numerator.
Explanation:
The formula used to calculate earnings per share (EPS) = (net income after taxes - preferred dividends) / average outstanding common stocks.
Since no preferred stock dividends were declared this year, then their value on the EPS formula is $0, so you could basically ignore them since any number minus 0 is the same number.
EPS = net income after taxes / average outstanding common stocks
Answer:
ignore the preferred stock dividends when calculating the numerator
Explanation:
Hager Company's accountant calculates the company's basic EPS. In addition to common stock, the company also has nonconvertible, noncumulative preferred stock outstanding. No dividends were declared during the current year. When calculating EPS, the accountant should IGNORE THE PREFERRED STOCK DIVIDENDS WHEN CALCULATING THE NUMERATOR.
Earnings per share (EPS) is calculated as a company's profit divided by the outstanding shares of its common stock. The resulting number serves as an indicator of a company's profitability.
Many companies use celebrities or professionals in their advertisements. Which step of the communication process is represented? A. determining the communication objectives B. designing a message C. choosing the media D. selecting the message source E. collecting feedback
Answer:
The correct answer is letter "D": selecting the message source.
Explanation:
Message sources are characters a company may select at the moment of creating an advertising campaign. The character is usually related to the message the firm attempts to deliver in the promotion but it needs this persona to attract the target audience faster. Celebrities, experts, actors, or models are typically selected for such purposes.
Suppose canada has a population of 30 million people and a labor force participation rate of 2/3. furthermore, suppose the natural rate of unemployment in canada is 7%. if the current number of unemployed people is 1.4 million people, what can we conclude about canada's economy?
Answer:
There is no Cyclical Unemployment in Canada currently.
Explanation:
Labour Force Participation Rate is the proportion of people between working age group, currently working or seeking for job.
If Canada's population = 30 million people, labour force participation rate = 2/3rd. Then, people doing or seeking job in Canada = 2/3 (30) = 20 million.
Unemployment is when people able & willing to do job (labour force participants) don't get job.
Unemployment rate is determined as percentage of people from the labour force, unable to get a job. Here, = (1.4 / 20 ) x 100 = 0.07 i.e 7%
So, we can say that Canada's current unemployment is only natural (structural & fictional unemployment). There is no cyclical unemployment.
The NEC® arose as a consensus of more than 1200 individuals primarily to ____.
a.standardize price
b.schedules combat a growing
c.epidemic of electrical fires
d.standardize equipment use as a marketing tool
NEC arose to:
d.standardize equipment use as a marketing tool
Explanation:
NEC Corporation is a multinational IT and Electronics firm that is based out of Japan.
It was started in the 60s as Nippon Electric company ltd. but it re branded itself to name NEC in 1983.
It is responsible for the standardization of equipment as their USP and their prime marketing tool and made it a standard industry practice to do so as of now.
Their impact on the whole industry has been immense.
The NEC® was developed to address safety concerns, specifically to prevent electrical fires, by establishing a set of widely recognized electrical standards, correct answer is option c.
The NEC® (National Electrical Code) arose as a consensus of more than 1200 individuals primarily to combat a growing epidemic of electrical fires.
The NEC®'s principal aim is to set standards for safe electrical installation and maintenance to protect people and property from hazards arising from the use of electricity.
Alongside safety, the NEC® also plays a role in ensuring energy efficiency and reliability, reflecting changes in equipment use patterns and promoting efficiency standards, much like the CEC's efforts in regulating appliance efficiency and transforming utilities' approach to energy sales and consumption.
Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would lead to greater productivity in the fishing industry? Check all that apply. Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts Sharply increasing the interest rate on student loans to people pursuing advanced degrees in fishing Offering free public education to every worker in the country Imposing restrictions on foreign ownership of domestic capital
Answer:
Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts
Explanation:
Productivity increases when human capital increases due to higher education and training, when physical capital increases due to higher investments or when new technological breakthroughs increase productivity.
By encouraging savings, investments will increase as well as physical capital which results in an increase in productivity.
2) The primary deficit is equal to A) the amount by which government purchases, transfers, and net interest exceed tax revenues. B) the amount by which government purchases and transfers exceed tax revenues. C) the deficit plus net interest payments. D) total tax revenues minus net interest minus government expenditures.
Answer:
B. the amount by which government purchases and transfers exceed tax revenues.
Explanation:
Primary deficit is the borrowing requirements of government excluding interest. It is the addition of government purchases and transfers less tax revenues. It is the amount by which spending exceeds money received in form of revenues.
Mathematically
Primary Deficit = Government purchases + transfers - tax revenues.
Primary deficits is different from deficits as net interest isn't added.
what is partnership business?
Answer:
when you are in a pare working together
Explanation:
Answer:
Partnership business is a type of business in which two individuals share the profits and management for the sake of increasing business.
Explanation:
There is formal contract between two parties so that they work with each other to get huge amount of profit.
Alfred, an architect at Abode Inc., uses the term "spatial organization" while communicating to his client. The client is unable to understand the term used by Alfred because he does not have any experience in the field of architecture. In this scenario, the term "spatial organization" exemplifies _____
Answer:
Jargon
Explanation:
Based on the scenario being described within the question it can be said that the term "spatial organization" exemplifies Jargon. This term refers to any and all specialized terminology associated with a specific field or area of expertise. It is usually used between individuals of the same field who understand the word's meaning in a certain context, since those outside of the field may not understand it.
Mary agrees to prepare Georgia's taxes for $150 plus costs. Georgia decides that she wants extra help on other business matters, and calls Mary to discuss the changes to their contract. Mary says the extra professional services will increase the total cost to $250 and Georgia agrees to the new price. When Mary finishes all of the work, Georgia is legally obligated to pay:
Answer:
$250
Explanation:
The first agreement between Mary and Georgia stated a $150 payment plus costs. But later Georgia decided to modify the agreement by including other services provided by Mary, and Mary accepted with a new price that Georgia accepted. The acceptance by both parties means that the modified agreement is supported by additional consideration.
Your neighbor asks you to invest $500 at 5 percent interest in her catering business. She insists that with all the working parents in the neighborhood, a business that provides home-cooked meals has the potential for making huge profits. You want to invest but are concerned because your neighbor has not had any business experience. How can you offset your risk?
Answer: Ask for a higher interest rate
Explanation:
The best way to offset the risk is to ask for a higher interest rate which is more than the five percent that is proposed by my neighbor.
Even though I want to invest in her catering business, her lack of experience in the catering business is of concern to me, hence, I've to settle for a higher percentage than the percentage which she proposed.
The first step in problem solving is to:
A. propose as many cost-effective solutions as possible.
B. discuss and document individual views until everyone agrees the nature of the problem.
C. evaluate team resources to ensure problem can be solved.
D. evaluate individual resources to ensure the problem can be solved.
Answer:
The correct answer is B
Explanation:
Problem solving is the act which states or defines the problem, identifying, determining the problem cause, choosing the alternatives for the solution, prioritizing and executing the solution.
The problem solving involves or comprise of the four stages of the team which are performing, storming, forming and norming. And the first or basic step comprise of the discussing as well as documenting the views of the individual until everyone agrees the problem nature.
Which of the following is true? a. If using the double-declining-balance the total amount of depreciation expense during the life of the asset will be the highest. b. If using the units-of-production method, it is possible to depreciate more than the depreciable cost. c. If using the straight line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance. d. Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.
Answer:
d. Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.
Explanation:
Depreciation can be defined as the reduction of cost of a fixed asset systematically until the value of the asset becomes zero.
In Accounting, regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.
However, using a particular depreciation method affects the amount of depreciation expense of an asset charged in each year.
The interaction between information systems and organizations is:_____________
1. primarily guided by the decision making of middle- and senior-managers.
2. a complex, two-way relationship mediated by factors such as the environment and organizational structure.
3. is driven by the microeconomic forces of capital and labor.
4. successfully managed when the organization's existing culture and goals are seen as the driving force.
Answer:
The correct answer is 2
Explanation:
Information system is the system which aims to support the operations, decision making and management of the organization. The system of organization is created or established in order to process, store, collect as well as distribute the information.
Organizations are those who uses the information system.
So, the interaction among the organizations and information system is the complex procedure, involve two way relationship which is mediated through factors like the structure of organization and environment.
Final answer:
The interaction between information systems and organizations is complex and mediated by numerous factors, including organizational structure and external environment, with the decision-making process playing a critical role.
Explanation:
The interaction between information systems and organizations is a complex, two-way relationship mediated by factors such as the environment and organizational structure. It includes human software interactions in complex automated systems, especially the decision-making processes of workers as they are supported by the software system. This interplay is not solely guided by the decision-making of middle- and senior-managers, nor is it driven purely by microeconomic forces of capital and labor. Furthermore, though the existing culture and goals of an organization are important, they are not the only driving force behind the successful management of this interaction. The world of making decisions and processing in economics is heavily influenced by how well and how fast information disseminates through a society, resembling the deep and liquid markets operating under conditions of perfect information.
Real GDP measures the ______ of production; nominal GDP measures the ______ of production. current dollar value; physical volume current dollar value; current dollar value current dollar value; market value physical volume; current dollar value
Answer:
Physical volume; current dollar value
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
Real GDP is GDP adjusted for inflation. It calculates physical volume. It is calculated using base year prices.
Nominal GDP is GDP calculated using current year prices.
I hope my answer helps you
Adkins Company is hired on December 15, 2018 to perform services, beginning on December 16, 2018. Under this agreement, Adkins will earn $ 4 comma 000 monthly and receive payment on January 15, 2019. What amount of service revenue should be recorded for the year ending December 31, 2018?
Answer:
$2,000
Explanation:
The amount which is to be recorded for the service revenue for the month of the December 2018 is computed as:
Service revenue = Monthly Salary / Number of days in the month of December × Number of days from being hired
where
Monthly salary is $4,000
Number of days in the month of December is 30 days
Number of days from being hired is 15 days (From 15 December to 30 December)
Service revenue = $4,000 / 30 days × 15 days
Service revenue = $133.33 × 15 days
Service revenue = $1999.95 or $2,000
Therefore, the service revenue for the month of December amounts to $2,000.
Money market mutual funds
a.are very risky investments.
b.require significant investments, so are out of reach of the common investor.
c.carry no loads.
d.none of the above.
e.Both are very risky investments and require significant investments, so are out of reach of the common investor are correct.
Answer:
c. carry no loads.
Explanation:
They are also called as the mutual funds and are open-ended mutual fund investments in short debit security as the U.S treaty bills and the commercial papers. They are made with the goal of maintaining high stable assets values by liquid investments. Regulated by the investments company act of the U.S of 1940, are important providers of the liquidity to the financial institutions. These funds seek to limit the exposure of the losses due to the credit, market, and liquidity risks.In a cost reconciliation schedule, costs accounted for is computed by adding the cost of the beginning work in process and the cost of units transferred out. ending work in process and the cost of units started into production. beginning work in process and the cost of ending work in process. ending work in process and the cost of units transferred out.
Answer:
ending work in process and the cost of units transferred out.
Explanation:
In a cost reconciliation schedule, costs accounted for is computed by adding the cost of the ending work in process and the cost of units transferred out.
The cost reconciliation schedule gives the relationship between total costs accounted for and total costs to be accounted for.
When the total costs accounted for equal the total costs to be accounted for, this is a cost reconciliation schedule.
A company that uses a perpetual inventory system purchased inventory on account and later returned goods worth $500 to the vendor. Which of the following would be the correct journal entry to record these returns?
A) Debit Purchase Returns $500; credit Accounts Payable $500B) Debit Accounts Payable $500; credit Merchandise Inventory $500C) Debit Merchandise Inventory $500; credit Accounts Payable $500D) Debit Accounts Payable $500; credit Purchase Returns $500
Answer:
B) Debit Accounts Payable $500; credit Merchandise Inventory $500
Explanation:
For recording the returned inventory using the perpetual inventory, the journal entry is shown below:
Account payable $500
To Merchandise inventory $500
(Being the returned inventory is recorded)
For recording this, we debited the account payable as it decrease the current liabilities and at the same time it decreased the assets also so the merchandise inventory is credited
Final answer:
To record the return of inventory worth $500 in a perpetual inventory system, the correct journal entry is to debit Accounts Payable and credit Merchandise Inventory, reflecting a decrease in both liability and assets.
Explanation:
The student's question about recording the return of inventory is rooted in fundamental accounting practices within a perpetual inventory system. In such a system, the appropriate journal entry to record the return of goods purchased on account with a value of $500 would be as follows:
B) Debit Accounts Payable $500; credit Merchandise Inventory $500
Why? Because when inventory is returned, the company no longer owes the vendor for those goods, so the liability (Accounts Payable) decreases. At the same time, the asset (Merchandise Inventory) that was previously increased upon purchase is now reduced because those items are no longer in the company's possession.
Macy Corporation's relevant range of activity is 5100 units to 11,500 units. When it produces and sells 8300 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.00 Direct labor $ 3.45 Variable manufacturing overhead $ 1.45 Fixed manufacturing overhead $ 3.80 Fixed selling expense $ 1.40 Fixed administrative expense $ 0.95 Sales commissions $ 1.35 Variable administrative expense $ 0.85 If the selling price is $27.00 per unit, the contribution margin per unit sold is closest to:
Answer:
Contribution margin per unit= $14.9
Explanation:
Giving the following information:
Variable costs:
Direct materials= $5
Direct labor= $3.45
Variable manufacturing overhead= $1.45
Sales commissions= $1.35
Variable administrative expense= $0.85
Total variable cost= $12.1
The selling price is $27.00 per unit
The contribution margin is the result of deducting from the selling price all the unitary variable costs.
Contribution margin per unit= 27 - 12.1
Contribution margin per unit= $14.9
Final answer:
The contribution margin per unit can be found by subtracting the total variable costs per unit from the selling price per unit.
Explanation:
Contribution Margin is calculated as the difference between the selling price per unit and the variable costs per unit. In this case, the selling price per unit is $27.00, and the total variable costs per unit sum up to $13.85 ($5.00 + $3.45 + $1.45 + $0.85 + $1.10 = $13.85). Therefore, the contribution margin per unit sold is $27.00 - $13.85 = $13.15.
Which of the following are advantages and characteristics of hot working relative to cold working (three correct answers):
a. Fracture of workpart is less likely
b. Friction is reduced
c. Increased strength properties
d. Less overall energy is required
e. Lower deformation forces are required F. More significant shape changes are possible
Answer:
(a), (e), (f)
Explanation:
A)Fracture of workpart is less likely
E) Lower deformation forces are required F). More significant shape changes are possible
As the winter holiday season was approaching, Margie decided to give each team a window display or an indoor display to decorate. She gave minimal instructions about how to do the displays but was firm on the deadline and also explained that it was not a competition. Margie really wanted the different teams throughout the store to have fun and get in the spirit. Margie was trying to instill:
a.competence.
b.relatedness.
c.responsibility.
d.autonomy.
e.relationships.
Answer:
The answer is autonomy (Option D)
Explanation:
Autonomy in human resource management refers to the level or degree of discretion and freedom which an employee is permitted to exercise when performing his/her job. In other words, it means granting employees the freedom on how to approach work.
A manager or superior like Margie (in the question) who gives employees autonomy simply gives minimal instruction on what needs to be achieved but allows the employees to go about the job in ways that best suit them.
If quick response allows multiple orders in the season:___________.
1. profits increase and the overstock quantity decreases.
2. profits decrease and the overstock quantity increases.
3. profits decrease and the overstock quantity decreases.
4. profits increase and the overstock quantity increases
Answer:
1. profits increase and the overstock quantity decreases.
Explanation:
Quick response entails frequent requisites in smaller batches. Frequently increases profits and Smaller batches decreases overstock quantity.Thus, profits increase and the overstock quantity decreases.
Final answer:
Quick response systems in business operations tend to increase profits by reducing excess inventory and associated costs, leading to optimal stock levels that match customer demand.
Explanation:
If quick response allows multiple orders in the season, the most likely outcome would be that 1. profits increase and the overstock quantity decreases. Quick response systems allow businesses to react swiftly to changes in demand, replenish stocks based on actual sales data, and reduce lead times. This ability to rapidly adjust inventory levels to meet actual customer demand typically leads to a reduction in excess inventory and related holding costs, thus improving profitability while lowering the risk of overstocking.
In terms of supply and demand, when a company efficiently manages its inventory with a quick response approach, the supply chain becomes more dynamic and responsive. It aligns more closely with the shifts in market demand. The supply does not drastically exceed demand which would otherwise decrease the equilibrium price and leave a surplus (overstock).
Holding other factors constant, if the consumption tax is replaced with an income tax so that saving is taxed, then the real interest rate will ________ and the equilibrium quantity of saving and investment will ________.
Answer:
Increase, decrease
Explanation:
One can answer the above case by applying simple concepts of demand and supply. If the savings are taxed in an economy then individuals will spend more as they will get more benefit from their income by spending rather than by saving, this will lead to more consumption and demand which further leads to more supply of money leading to decrease in the interest rates.
As people will spend more from their income due to higher taxes the savings in the economy will automatically decrease. Such decisions are usually made by governments to tackle recession in the economy.
________ Trends :Toward the pervasive use of the Internet, enterprise intranets, and interorganizational extranets to support electronic business and commerce, enterprise collaboration, and strategic advantage in local and global markets.
Answer:
Application Trends
Explanation:
The widespread impact of the internet, enterprise intranets, and inter-organizational extranets have been a key factor in the support and success of businesses in local and global markets.
The use of applications in business for different unique activities greatly enhanced production, analysis, evaluations, support and quality delivery in businesses. The use of the internet and other technological infrastructures have enhanced enterprise collaboration, strategic advantage, and commerce in local and global markets.
The question explores trends and technological advancements, including virtualization, botnets, and the Internet of Things (IoT), that influence the pervasive use of the Internet in business, commerce, and social interactions. These developments have revolutionized how businesses operate and how individuals interact, leading to a digitally engaged society.
Explanation:The question revolves around trends toward the pervasive use of the Internet, enterprise intranets, and interorganizational extranets to support electronic business and commerce, enterprise collaboration, and strategic advantage in local and global markets. The Internet, as a global system of interconnected computer networks, plays a critical role in today's digital world, allowing for communication and information sharing across various domains. It has led to the creation of virtual environments where information is gathered, shared, and engaged with. Important aspects of the Internet include the World Wide Web and social media, which have become central to our digital interactions.
Technological advancements and the development of the Internet have dramatically influenced social interactions, commerce, and the way businesses operate. Innovations such as virtualization, botnets, and the Internet of Things (IoT) are just a few examples of emerging technologies shaping our future. These technologies not only provide new opportunities for businesses and consumers but also present challenges in terms of security, privacy, and ethical considerations.
The convergence of the Internet with personal electronics like smartphones and the development of cell phone networks capable of handling data traffic have further integrated the Internet into our daily lives. This integration supports the notion that we are moving towards a more connected and digitally engaged society, which relies on the Internet for social purposes, including personal media and social media interactions. Therefore, understanding these trends and technologies is critical for gaining strategic advantages in local and global markets.
An American office manager working in South Korea asks his subordinates to treat him as an equal. In South Korean culture there is traditionally deference from subordinates. The office manager is experiencing a difference in _________.
Final answer:
The American office manager in South Korea is facing differences in cultural norms, specifically in traditional expectations of workplace behavior and respect, due to contrasting power distance beliefs between the two countries.
Explanation:
The American office manager working in South Korea is experiencing a difference in cultural norms and workplace behaviors. In South Korean culture, there is a traditional expectation of deference from subordinates to their superiors, which is rooted in the country's high power distance culture.
This contrasts with the more egalitarian or low power distance approach prevalent in the United States, where subordinates may be encouraged to treat and view their managers as equals. The manager's request for his subordinates to treat him as an equal may create confusion or discomfort due to these conflicting cultural expectations regarding authority, respect, and workplace dynamics. Understanding these differences is crucial for effective cross-cultural communication and management strategies.
Suppose that the Federal Reserve conducts open market operations by purchasing $1,000 worth of government securities from Bank A. As a result, Bank A finds itself with $1,000 in excess reserves that it lends out and those funds end up in Bank B. What dollar value goes in banks (A) and (B), respectively?.
Answer:
$100 in bank A
$900 in bank B
Explanation:
Since the required reserve ratio is 10%, then bank A can lend up to 90% of the funds to bank B, and must keep the remaining 10%.
bank A = $1,000 x 10% = $100bank B = $1,000 x 90% = $900If bank B borrowed the money to another client, then they would be able to borrow $900 x 90% = $810, and they should keep $90 as reserves.
The government of Wrexington, a country which has adopted American GDP accounting conventions, has calculated that the seasonally-adjusted market value of all final goods and servicesproduced within Wrexington in quarter 1 was $5 billion. The government will report that GDP in quarter 1 was a.$1.25 billion at an annual rate.b.$4 billion at an annual rate.c.$5 billion at an annual rate.d.$20 billion at an annual rate
Answer:
d.$20 billion at an annual rate
Explanation:
As $5 billion was quarter 1 market value of final goods and services produced,the annual rate will be $5*4=$20 billion annually
Suppose that an economy produces 2400 units of output, employing the 60 units of input, and the price of the input is $30 per unit. refer to the information above. the per-unit cost of production is: $0.50 $0.75 $2.00 $0.25
Answer:
cost per unit = $0.75
Explanation:
The cost per unit of production
= Total cost of inputs used / Number of units produced
= ($30× 60)/2,400 units
=$0.75
We have simply done is to spread the total cost of the product the over the number of units
The payroll register of Heritage Co. indicates $4,200 of social security withheld and $1,050 of Medicare tax withheld on total salaries of $70,000 for the period. Federal withholding for the period totaled $15,350. Retirement savings withheld from employee paychecks were $2,800 for the period. Provide the journal entry for the period's payroll. If an amount box does not require an entry, leave it blank.
Answer:
the journal entry should be:
Dr Salaries expense 70,000
Cr FICA - Social security taxes payable 4,200
Cr FICA - Medicare taxes payable 1,050
Cr Employee federal income taxes withheld payable 15,350
Cr Retirement saving withheld from employees payable 2,800
Cr Salaries payable 46,600
Explanation:
If the company was to journalize their payroll taxes expense:
Dr Payroll tax expense 5,250 + (depends on FUTA and SUTA taxes)
Cr FICA - Social security taxes payable 4,200
Cr FICA - Medicare taxes payable 1,050
Cr State unemployment taxes (SUTA) payable (varies depending on salaries)
Cr Federal unemployment taxes (FUTA) payable (varies depending on salaries)
To create a journal entry for Heritage Co.'s payroll, debit the Salaries Expense with $70,000 and credit respective payable accounts with the amounts withheld (Social Security Payable - $4,200, Medicare Payable - $1,050, Federal Withholding Payable - $15,350, and Retirement Savings Payable - $2,800). These figures represent the employees' contributions.
Explanation:The question asks for a journal entry for Heritage Co.'s payroll for a specific period, given certain details. Here's how to record it:
Salaries Expense - $70,000 ($4,200 for Social Security, $1,050 for Medicare, $15,350 for federal withholding, and $2,800 for retirement savings) To Social Security Payable - $4,200 To Medicare Payable - $1,050 To Federal Withholding Payable - $15,350 To Retirement Savings Payable - $2,800
The journal entry above shows the employer’s record of the payroll expenses and the relevant liabilities. Note that these figures are in relation to employee deductions - they do not include the employer’s contribution to Social Security, Medicare and any other benefit which usually match the employee's contribution.
Learn more about Payroll Journal Entry here:
https://brainly.com/question/31707392
#SPJ3
BE6-5 In its first month of operation, Hoffman Company purchased 100 units of inventory for $6, then 200 units for $7, and finally 140 units for $8. At the end of the month, 180 units remained. Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.
Explain why this amount is referred to as phantom profit. The company uses the periodic method. Identify the impact of LIFO versus FIFO.
Answer:
Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.
If the company used FIFO instead of LIFO, their profits would increase by $1,960 - $1,720 = $240 because their COGS would be lower.Explain why this amount is referred to as phantom profit.
Phantom profit basically refers to the profit that the company could have made using a different accounting method.Identify the impact of LIFO versus FIFO.
LIFO increases COGS by $240, reducing gross profits by the same amount.Explanation:
units price total
purchase 100 $6 $600
purchase 200 $7 $1,400
purchase 140 $8 $1,120
total 440 $3,120
ending inventory 180
using LIFO $1,160
using FIFO $1,400
COGS using LIFO = $3,120 - $1,160 = $1,960
COGS using FIFO = $3,120 - $1,400 = $1,720
If the company used FIFO instead of LIFO, their profits would increase by $1,960 - $1,720 = $240 because their COGS would be lower.
To calculate the phantom profit resulting from using FIFO instead of LIFO, compare the ending inventory value under both methods. The impact of LIFO versus FIFO is seen in the calculation of inventory cost and resulting profitability.
Explanation:Phantom profit is the hypothetical profit that would result if a company used a different inventory costing method, such as FIFO instead of LIFO. To calculate the phantom profit caused by using FIFO instead of LIFO, we need to compare the ending inventory value under both methods. In this case, the phantom profit would be the difference between the ending inventory value using FIFO and LIFO.
In this situation, using the periodic method, if the company used FIFO instead of LIFO, the ending inventory value would be higher because the older, lower-cost units would be assumed to be sold first. Therefore, the phantom profit would be the difference between the ending inventory value using FIFO and LIFO in this specific scenario.
The impact of LIFO versus FIFO is mainly seen in the calculation of inventory cost and the resulting profitability. LIFO, which stands for Last-In, First-Out, assumes that the most recently purchased inventory is sold first, resulting in higher cost of goods sold and lower profit. On the other hand, FIFO, which stands for First-In, First-Out, assumes that the oldest inventory is sold first, resulting in lower cost of goods sold and higher profit.
Learn more about Phantom Profit here:https://brainly.com/question/33670855
#SPJ3
"Jack is getting ready to retire. He has a salary of $100,000 and is saving 15% annually in his 401(k) plan and he just made his last principal and interest monthly payment on his mortgage of $2,350. His home is now debt free. What would you recommend regarding a wage replacement ratio, assuming he wants to maintain his lifestyle. "
Answer:
Explanation:
Wage replacement ratio is the ratio of a person's gross income after retirement divided by his gross income before retirement.
We use the given information to asses his spending on his lifestyle
Salary = 100000
Saving = 15% of 100000 = 15000
Mortgage payment = 2350
The amount spent on lifestyle = 100000 - 15000 - 2350
= 82650
Thus considering only the available information
Wage replacement ratio = 82650/100000 = 82.65%
Hence,
among the given option
Jack must have 80% wage replacement ratio