Final answer:
Organizations with a strong ethical climate prioritize customers' interests, leading to positive job attitudes and ethical behavior. These companies value fairness, supportiveness, and respect for individual rights, which promotes a culture where people are considered the greatest asset.
Explanation:
Most organizations with strong ethical climates usually focus on the core value of placing customers' interests first. This emphasis on customer-centric values aligns with fostering a set of shared values within the organization, ensuring that employees are encouraged and motivated to treat others the way they would like to be treated themselves. By prioritizing customers' needs and establishing an ethical foundation, companies can enhance job attitudes, behaviors, and overall ethics, leading to a work environment where people are happier, more committed, and demonstrate a stronger attachment to their organization. Moreover, a customer-focused approach contributes to long-term relationships based on ethics and trust, crucial for the sustained success of any business.
People-oriented cultures hold fairness, supportiveness, and respect for individual rights in high regard, and this is exemplified in the way they treat both their employees and customers. Companies that live by the principle that 'people are their greatest asset' create an atmosphere where employees do not feel compelled to choose between work and their personal lives, leading to healthier job attitudes and citizenship behaviors that benefit the organization as a whole. As Heineman (2007) asserts, when behaving ethically becomes part of the company's core values, it is reflected in the company's metrics and overall operations.
Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. Apr. 1 Sold merchandise for $3,000, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $1,800. Apr. 4 The customer in the April 1 sale returned $300 of merchandise for full credit. The merchandise, which had cost $180, is returned to inventory. Apr. 8 Sold merchandise for $1,000, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $700. Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4.
Answer:
Given:
Apr. 1 Sold merchandise for $3,000, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $1,800.
Apr. 4 The customer in the April 1 sale returned $300 of merchandise for full credit. The merchandise, which had cost $180, is returned to inventory.
Apr. 8 Sold merchandise for $1,000, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $700.
Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4.
The journal entries prepared to record the sales transactions of the merchandising company, using the perpetual inventory system and the gross method are as follows:
Apr. 1 Debit Accounts Receivable $3,000
Credit Sales Revenue $3,000
To record the sale of goods, credit terms n/30Debit Cost of goods sold $1,800
Credit Inventory $1,800
To record the cost of goods sold.Apr. 4 Debit Sales Returns $300
Credit Accounts Receivable $300
To record the return of goods.Debit Inventory $180
Credit Cost of goods sold $180
To record the cost of goods returned.Apr. 8 Debit Accounts Receivable $1,000
Credit Sales Revenue $1,000
To record the sale of goods, credit terms of 1/10, n/30Debit Cost of goods sold $700
Credit Inventory $700
To record the cost of goods sold.Apr. 11 Debit Cash $2,700
Credit Accounts Receivable $2,700
To record the receipt of cash from customers.Data Analysis:
Apr. 1 Accounts Receivable $3,000 Sales Revenue $3,000
credit terms n/30
Cost of goods sold $1,800 Inventory $1,800
Apr. 4 Sales Returns $300 Accounts Receivable $300
Inventory $180 Cost of goods sold $180
Apr. 8 Accounts Receivable $1,000 Sales Revenue $1,000
credit terms of 1/10, n/30
Cost of goods sold $700 Inventory $700
Apr. 11 Cash $2,700 Accounts Receivable $2,700
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Gabat Inc. is a merchandising company. Last month the company's merchandise purchases totaled $67,000. The company's beginning merchandise inventory was $19,000 and its ending merchandise inventory was $22,000. What was the company's cost of goods sold for the month?
Answer:
$64,000 COST OF GOODS SOLD
Explanation:
Beginning Inventory + Purchase = Ending Iventory + Cost of Goods Sold
The first two represent the available goods for sale
(what we had plus we we bring during the period)
The second part is what happened:
How much we sold and how much we keep to next cycle.
Posting in the formula the know values:
67,000 + 19,000 = 22,000 + COGS
67,000+19,000 - 22,000 = COGS
Solving for the unknow values
64,000 = cogs
On August 1, 2018, Towson Corp., declared a 5% stock dividend on its common stock when the market value of the common stock was $19 per share. The balance in the common stock account, before the stock dividend was declared, was $800,000. The par value of all common stock is $10. What is the total dollar amount credited to additional paid in capital - common stock on August 1, 2018?
Answer:
Additional Paid-in credited by 360,000
Explanation:
Retained Earnings 760,000
Common Stock 800,000 x 5% x 10 = 400,000
Additional Paid-In 800,000 x 5% x 9= 360,000
Answer:
The dollar amount credited to common stock is $40,000
The dollar amount credited to additional paid in capital - common stock is $36,000
Explanation:
Before stock dividend is declared, there is 80,000 stocks outstanding ( that is, Common stock account balance/par value per stock = 800,000/10)
=> Stock to be distributed as dividend = 80,000 * 5% = 4,000 stocks
As the stock dividend is 5%, this is a small stock dividend => stock dividend is to be recorded at market value.
We have the entries:
Dr Retained Earnings 76,000
Cr Common stock dividend distributable 40,000
Cr Additional paid-in capital - common stock 36,000
So:
The dollar amount credited to common stock is $40,000
The dollar amount credited to additional paid in capital - common stock is $36,000
On 1/2/20X6, ALPHA acquired 100 shares of CHARLIE Corporation stock at $20 per share, 200 shares of DELTA Corporation stock at $40 per share, and 100 shares of ECHO Corporation stock at $30 per share. All of these shares were purchased as trading securities. The market price per share of these securities at the end of 20X6 and 20X7, respectively, are:
company 12/31/x6 12/31/x7
charlie $8 $22
delta. $38 $34
echo. $34 $30
What is the balance sheet amount for trading securities at the end of 20x7?
Answer:
The balance sheet amount for trading securities will be 12,000
Explanation:
The trading securities are valued at fair value, their diference through dates will generate Other Comprehensive Income.
For the matter of valuation, the gain/loss is not relevant. We just need to multiply market value with the number of shares to get the total for each company, then we add them to get the total for trading securities.
[tex]\left[\begin{array}{cccc}-&shares&market \:price& subtotal\\CHARLIE&100&22&2200\\DELTA&200&34&6800\\ECHO&100&30&3000\\Total&400&-&12000\\\end{array}\right][/tex]
The balance sheet amount for trading securities will be 12,000
Suppose Joe and Mike purchase identical houses for $200,000. Joe makes a down payment of $40,000 while Mike only puts down $10,000. Assuming everything else equal, who is more highly leveraged? If house prices in the neighborhood immediately fall by 10 percent (before any mortgage payments are made), what would happen to Joe’s and Mike’s net worth?
Explanation:
Joe and Mike both purchase identical houses which has a net worth of $200,000.
Down Payment made by Joe: $40,000
Down Payment made by Mike: $10,000
Down Payment is the total of his net worth for both individuals.
A) Who is more highly leveraged?
Mike borrowed $190,000 and Joe borrowed $160,000
Mike is more leveraged because he borrows much more to purchase a $200,000 house.
Mike's leverage ratio:
LR = $200,000/$10,000 = 20.
Joe's leverage ratio:
LR = $200,000/$40,000 = 5.
B) If housing prices in the neighborhood immediately fall by 10%, what would happen to Joe'sand Mike's net worth?
ROE = (ROA) (LR)
Mike:
ROE = (-10%) (20) = -200%
Mike will have a decrease of 200% in his net worth. He will surly go bankrupt as the value of his assets are less than the value of the liabilities on him.
Joe:
ROE = (-10%) (5) = -50%
Mike will have a decrease of 50% in his net worth. He still has the worth of his property because his assets are still greater than his liabilities.
An elderly client who has a documented history of dementia is intermittently alert and can currently tell you her name. Who should sign the client's informed consent for an invasive diagnostic procedure?
Answer:
The person who should sign client's informed consent for an invasive diagnostic procedure should be either relative( can be husband/wife/child) or a friend who has an durable power of attorney for healthcare of the client.
Explanation:
Dementia can be said as a group of condition where a person is suffering by impairment of at least two brain functions ,like memory loss and un able to make decisions on there own behalf. If a person is suffering from this condition , then someone else who has the authority to make decisions for that persons well being will sign the consent for the invasive diagnostic procedure.
You are the CEO of a company that has to choose between making a $100 million investment in either Russia or Poland. Both investments promise the same long-run return, so your choice of which investment to make is driven by considerations of risk. Assess the various risks of doing business in each of these nations. Which investment would you favor and why?
Answer: When assessing the risks of investment, one should consider the political, economic, and legal risks of doing business in either Russia or Poland. The risk in Russia would probably be considered higher than the risk in Poland since Poland has been a member state of the European Union since 1 May 2004, with the Treaty of Accession 2003 signed on 16 April 2003 in Athens as the legal basis for Poland's accession to the EU.
Poland has already gained benefits and stability offered by the EU. Russia, by contrast, is still many years away from even being in a position to be considered by the EU for membership.
Explanation: A diligent investor wouldn't put a penny in a risky country.
As a CEO of a company, one must decide to invest an amount like $100 million in Poland, if given an opportunity to choose between Russia and Poland, because this investment will result in less chances of being a risky investment.
What is the significance of an investment risk?An investment risk can be referred to or considered as the risk that is associated with the loss of capital, partly or wholly, while being involved in a monetary engagement into classes of investments. Risk assessment is an essential tool of identifying and reducing the risks associated with investments.
In the condition given above, the investment risks in Russia will be higher than in Poland. This is because Russia is a country with higher fluctuations in its economies over a longer period of time, and thus, Poland investment will be less risky.
Therefore, the significance regarding investment risks has been aforementioned.
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Which of the following statements is FALSE? A. Emergency plans ensure that all resources can be obtained through internal sources within the jurisdiction. B. Emergency plans delineate roles and responsibilities. C. Emergency plans clarify how functions and activities are to be coordinated and how they complement one another. D. Emergency plans communicate what should happen, why it is done, and what to expect from it.
Answer: the one that is false is A. Emergency plans ensure that all resources can be obtained through internal sources within the jurisdiction.
A. Emergency plans ensure that all resources can be obtained through internal sources within the jurisdiction. the statements is FALSE.
What is jurisdiction of the court?To have jurisdiction, a court must have authority over the subject matter of the case and. the court must be able to exercise control over the defendant, or the property involved must be located in the area under the court's control.
What are the 4 types of jurisdiction?The 5 Types of Jurisdiction That May Apply to Your Criminal Case
Subject-Matter Jurisdiction.Territorial Jurisdiction.Personal Jurisdiction.General and Limited Jurisdiction.Exclusive / Concurrent Jurisdiction.To learn more about jurisdiction, refer
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Activity-Based Costing: Selling and Administrative Expenses Jungle Junior Company manufactures and sells outdoor play equipment. Jungle Junior uses activity-based costing to determine the cost of the sales order processing and the customer return activity. The sales order processing activity has an activity rate of $20 per sales order, and the customer return activity has an activity rate of $100 per return. Jungle Junior sold 2,500 swing sets, which consisted of 750 orders and 80 returns. a. Determine the total sales order processing and customer return activity cost for swing sets. $ b. Determine the per-unit sales order processing and customer return activity cost for swing sets. Round your answer to the nearest cent. $ per unit
Answer: (a.) Sales order processing = $ 15000
Customer return activity = $8000
(b.) Per-unit sales order processing = $ 6
Per-unit customer return activity cost for swing sets = $ 9.20
Explanation:
Total activity cost is given as :
Total activity cost = Sales order processing + Customer return activity
∵ Sales order processing = No. of sales order × Activity rate
Sales order processing = 750×20 = $15000
∵ Customer return activity = No. of sales return × Activity rate
Customer return activity = 80×100 = $8000
∴ Total activity cost = $15000 + $8000 = $23000
Now,
Sales order processing = $15000
No. of outdoor equipment sold = 2500
Sales order processing per unit = $15000 ÷ $2500 = $6
Customer return activity = $8000
No. of outdoor equipment sold = $2500
Customer return activity cost for swing sets = $8000 ÷ $2500 = 3.20
∴Total activity cost = $6 + $3.20 = $9.20
Final answer:
The total sales order processing and customer return activity cost for swing sets is $23,000. The per-unit cost is $9.20 when rounded to the nearest cent.
Explanation:
To determine the total sales order processing and customer return activity cost for swing sets, we can multiply the number of each activity by their respective activity rates. For sales order processing, with a rate of $20 per sales order, and 750 orders, the calculation would be 750 orders × $20/order = $15,000. For customer returns, with an activity rate of $100 per return, and 80 returns, the calculation would be 80 returns × $100/return = $8,000. Adding the two costs together, the total activity cost for swing sets is $15,000 + $8,000 = $23,000.
To determine the per-unit sales order processing and customer return activity cost for swing sets, we divide the total activity cost by the number of units sold. With a total activity cost of $23,000 and 2,500 swing sets sold, the per-unit cost is $23,000 ÷ 2,500 units = $9.20 per unit (rounded to the nearest cent).
Seeking to lower overall costs, a South Korean car manufacturer sources many of the parts for its cars from other Asian countries. This practice demonstrates the:
globalization of production.
globalization of markets.
emergence of global institutions.
regulation of the environment.
rivalry between countries.
Answer:
Seeking to lower overall costs, a South Korean car manufacturer sources many of the parts for its cars from other Asian countries. This practice demonstrates the: globalization of production. - first choice
The process whereby Starbucks works to provide satisfying jobs, a positive work environment, and fair compensation and benefits is called human resource management (HRM). True or False
Answer:
The answer is True.
Explanation:
When Starbucks chose to focus on improving these aspects at work, Starbucks is engaging in human resources management initiatives that put employee first. There are many form of human resources management activities; those mentioned in the question include impacts through efforts made in the these HRM subfield: compensation and benefit, job design, and organizational culture.
On January 1, Year 1, Friedman Company purchased a truck that cost $33,000. The truck had an expected useful life of 8 years and an $7,000 salvage value. The book value of the truck at the end of Year 1, assuming that Friedman uses the double-declining-balance method, is: _________. (Do not round intermediate calculations.)
The book value of the truck at the end of Year 1, using the double-declining-balance method, is $24,750 after accounting for a depreciation expense of $8,250.
To calculate the book value of the truck at the end of Year 1 using the double-declining-balance method, we first determine the depreciation rate. The double-declining rate is twice the straight-line rate, so for an 8-year useful life, the straight-line rate is 1/8, or 12.5%. Therefore, the double-declining rate is 25%.
The annual depreciation expense for the first year is then 25% of the truck's cost, excluding the salvage value, since the double-declining-balance method does not consider the salvage value in the first year's calculation. Hence, the depreciation for the first year is 25% of $33,000, which is $8,250. To find the book value at the end of Year 1, subtract this depreciation expense from the original cost of the truck:
Original cost of the truck: $33,000Year 1 depreciation expense: $8,250Book value at the end of Year 1: $33,000 - $8,250 = $24,750Absorption-Costing Income Statement During the most recent year, Osterman Company had the following data: Units in beginning inventory — Units produced 10,000 Units sold ($47 per unit) 9,300 Variable costs per unit: Direct materials $9 Direct labor $6 Variable overhead $4 Fixed costs: Fixed overhead per unit produced $5 Fixed selling and administrative $138,000 Required: 1. Calculate the cost of goods sold under absorption costing. $ 223,200 2. Prepare an income statement using absorption costing. Enter amounts as positive numbers.
Answer:
Income Statment for the year ended december 31th, 20X9
Sales Revenue 437,100 (9,300 units x 47 price per unit)
COGS 223,200 (9,300 units x 24 unit cost)
Gross Profit 213,900
S&A 138,000
Net Income 75900
Explanation:
Unit cost:
DM + DL + VO + FO = 9 + 6 + 4 + 5 = 24
Final answer:
The cost of goods sold under absorption costing for the Osterman Company is $223,200. An income statement prepared using absorption costing shows a net income of $75,900, after accounting for sales revenue, cost of goods sold, gross margin, and fixed selling and administrative costs.
Explanation:
To calculate the cost of goods sold (COGS) under absorption costing, we must account for all manufacturing costs, including both variable and fixed costs, that are associated with the production of the goods sold. Given the information that the Osterman Company produced 10,000 units, sold 9,300 units at $47 each, and we know the variable costs per unit (direct material $9, direct labor $6, variable overhead $4) and fixed overhead per unit produced ($5), we can perform the following calculation:
Total variable costs per unit = $9 + $6 + $4 = $19
Total cost per unit under absorption costing = Total variable costs per unit + Fixed overhead per unit produced = $19 + $5 = $24
COGS under absorption costing = Total cost per unit x Units sold = $24 x 9,300 = $223,200 (as given)
The income statement using absorption costing for the Osterman Company would include Sales Revenue, Cost of Goods Sold, Gross Margin, Selling and Administrative expenses, and Net Income.
Sales Revenue: 9,300 units x $47 = $437,100
COGS: $223,200 (as calculated above)
Gross Margin: Sales Revenue - COGS = $437,100 - $223,200 = $213,900
Fixed Selling and Administrative costs: $138,000
Net Income: Gross Margin - Fixed Selling and Administrative costs = $213,900 - $138,000 = $75,900
The Kaiser Medical Foundation claims that the cost to rehabilitate a football player following a head injury is at most $28,500. To test this claim a researcher surveys the medical billing records of 45 football players who were treated for head injuries. The average cost for rehabilitation in this randomly selected sample is $30,885 with a standard deviation of $1,123. Is the actual cost of rehabilitation at most $28,500 as Kaiser claims?
Answer: t-statistic > t-critical, we reject the null hypothesis.
Therefore, we conclude that kaiser claim is valid.
Explanation:
In this question,
Null hypothesis, [tex]H_{0}[/tex] : Actual cost of rehabilitation is greater than $28,500
Alternative Hypothesis, [tex]H_{a}[/tex] : Actual cost of rehabilitation at most $28,500
the medical billing records of 45 football players, n = 45
\bar{X} ⇒ average cost for rehabilitation = $30,885
[tex]H_{0}[/tex]: u > 28500 ⇒ Kaiser claims is not valid
[tex]H_{a}[/tex]: u ≤ 28500 ⇒ Kaiser claims is valid
t - statistic = [tex]\frac{\bar{X} - u}{\frac{SD}{\sqrt{n} } }[/tex]
= [tex]\frac{30885 - 28500}{\frac{1123}{\sqrt{45} } }[/tex]
= 14.25
From the t- distribution, with degree of freedom = n-1 ⇒ 45-1 = 44 and level of significance 0.05
t-critical value = 1.6802
So,
t-statistic > t-critical, we reject the null hypothesis.
Therefore, we conclude that kaiser claim is valid.
A university is trying to determine what price to charge for tickets to football games. At a price of $24 per ticket, attendance averages 40 comma 000 people per game. Every decrease of $3 adds 10 comma 000 people to the average number. Every person at the game spends an average of $6.00 on concessions. What price per ticket should be charged in order to maximize revenue? How many people will attend at that price?
Answer: Price per ticket should be charged in order to maximize revenue is $15.
70000 people will attend at this price.
Explanation:
Let 'x' represent the decrease .
Using the given information,
Price per ticket = 24 - 3x
Average no. of people that watch the game = 40000 + 10000x
Additional money spent by every person = 6(40000 + 10000x)
Revenue [R(x)] = Price per ticket [tex]\times[/tex] Average no. of people that watch the game + Additional money spent
Revenue [R(x)] = (24 - 3x)[tex]\times[/tex](40000 + 10000x) + 6(40000 + 10000x)
On solving the above equation we get ,
Revenue [R(x)] = -30000[tex]x^{2}[/tex] + 180000x + 1200000
In order to find the critical point we'll differentiate the following with respect to x;
R'(x) = -60000x + 180000
∵ R'(x) = 0
x = 3
Thus, the price per ticket that should be charged in order to maximize revenue is (24 - 3[tex]\times[/tex]3 = 24 - 9 = $15)
People that will attend at this price = (40000 + 10000[tex]\times[/tex]3) = 70000
A television costs $100, but a new excise tax law imposes a $5 tax on the sale of the set. If Takeshi wants to buy a television, what would have to be his minimum willingness to pay? $105 more than $105 $100 between $100 and $105
Answer:
$105
Explanation:
It is obvious when any tax is imposed on the product it is ultimately collected from the consumer. Here, original cost was $100.00 and thereafter new excise tax of $5.00 on sales is imposed.
Which resulted in increase in price of Television from $100.00 to $105.00
Therefore, when a normal consumer buys such Television he shall be willing to pay $105.00
A producer of ballpoint pens has been purchasing ink from an ink supplier and is considering acquiring the ink supplier. Would the pen company be more or less likely to vertically integrate by buying the ink manufacturer if the government imposes an ink sales tax?
Answer:
More
Explanation:
The producer of ballpoint pens would be more likely to acquire the ink supplier if the government were to impose an ink sales tax. This is because vertical integration would allow the producer to avoid paying the sales tax. Vertical integration refers to an arrangement in which the whole supply chain is owned by a particular company. This means that the company that acquired the supply chain can combine the different entities in order to satisfy all or several of its needs.
Alpha Company uses a process cost system. During 2017, Alpha had no beginning work in process inventory. During 2017, Alpha started 700 units. Alpha had 200 units in work in process at the end of 2017. These units were 50% complete with respect to materials. Use this information to determine the equivalent units for direct materials. (Round & enter final answers to nearest whole number of units)
Answer:
The equivalent units for direct materials is 800 units
Explanation:
The following information is giving in the question which is shown below:
1. Starting units = 700 units
2. Ending Work in progress = 200 units
3.Material = 50% of Ending WIP
= 100 units
By using these information, the equivalent units for direct materials is shown below:
= Starting units + units of Material
= 700 + 100
= 800 units
Thus, the equivalent units for direct materials is 800 units.
Jethroe Co. reported a retained earnings balance of $200,000 at December 1, 2018. In June 2019, Jethroe discovered that merchandise costing $50,000 had not been included in inventory in its 2018 financial statements. Jethroe has a 35% tax rate. What amount should Jethroe report as adjusted beginning retained earnings in its statement of retained earnings at December 31, 2019?
Answer:
Adjusted opening balance of retained earnings in its statement of retained earnings at December 31, 2019 = $232,500
Explanation:
Provided inventory of $50,000 not included in stock of the year 2018, which means closing inventory is understated with the same amount for the year 2018, which concludes profit of the year 2018 are understated with the same amount.
Now if that amount is added to closing inventory then profits for the year 2018 will increase net profit will increase by $50,000 - Taxes @35%
Net profit understated = $50,000 - ($50,000 X 35%) = $32,500
Balance of retained earnings at year end will be $200,000 + $32,500 = $232,500
Thus adjusted opening balance of retained earnings in its statement of retained earnings at December 31, 2019 = $232,500
To calculate the adjusted beginning retained earnings, subtract tax expense from net income by adjusting for the merchandise cost.
Explanation:The amount that Jethroe Co. should report as adjusted beginning retained earnings in its statement of retained earnings at December 31, 2019 can be calculated by subtracting the tax expense from the net income.
First, calculate the net income by subtracting the merchandise cost of $50,000 that was not included in the 2018 financial statements.Next, calculate the tax expense by multiplying the net income by the tax rate of 35%.Finally, subtract the tax expense from the net income to find the adjusted beginning retained earnings.For example, if the net income after adjusting for the merchandise cost is $250,000, then the tax expense would be $87,500 (35% of $250,000). Therefore, the adjusted beginning retained earnings would be $162,500 ($250,000 - $87,500).
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Which of the following statements is CORRECT? Preferred stockholders have a priority over bondholders in the event of bankruptcy to the income, but not to the proceeds in a liquidation. The preferred stock of a given firm is generally less risky to investors than the same firm's common stock. Corporations cannot buy the preferred stocks of other corporations. Preferred dividends are not generally cumulative.
Answer:
(B) The preferred stock of a given firm is generally less risky to investors than the same firm's common stock
Explanation:
(A) preferred shareholders have the rights to company assets first FALSE
(B) the preferred shareholders receive dividends before the common stock, and their dividend can be cumulative over time. So their risk is lower than common stock. TRUE
(C) corporation can purchase the preferred stock of other corporation FALSE
(D) the preferred dividends can be cumulative FALSE
Final answer:
Preferred stockholders have priority over bondholders in bankruptcy. Preferred stock is less risky than common stock.
Explanation:
Preferred stockholders have priority over bondholders in the event of bankruptcy to the income, but not to the proceeds in a liquidation. Preferred stock is generally less risky to investors than common stock, as it pays fixed dividends and enjoys a favored position in case of liquidation.
The Supply/Demand equilibrium price is __________ with an equilibrium quantity of _________. PRICE Column 1 Quantity Column 2 Quantity $5 11 92 $6 36 68 $7 50 50 $8 73 37 $9 88 26 $10 102 9 A. $7; 50 units B. $8; 110 units C. $5; 11 units D. $7; 100 units
Answer:
a) price of $7 and quantity of 50 units
Explanation:
According to what I'm understanding of the table you got the following:
[tex]\left[\begin{array}{ccc}Price&Supply&Demand\\5&11&36\\6&36&68\\7&50&50\\7&73&37\\...&....&...\end{array}\right][/tex]
The equilibrium will be when both forces meet in this case, it is clear that it is happening at a price equal to $7 which generates a supply of 50 units and a demand for 50 units. Both have the same value so it is equilibrium
Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $300,000, and direct labor costs to be $150,000. Actual overhead costs for the year totaled $330,000, and actual direct labor costs totaled $170,000. At year-end, Factory Overhead account is:
Final answer:
Mango Company has an overapplied Factory Overhead balance of $10,000 at year-end due to the application of a predetermined overhead rate based on the actual direct labor costs.
Explanation:
The student's question relates to the calculation of the Factory Overhead account balance at year-end for Mango Company. Mango Company applies overhead based on direct labor costs. The estimated overhead costs were $300,000, while the actual overhead costs were $330,000. Direct labor costs were estimated to be $150,000, but the actual costs ended up being $170,000.
To find out the year-end balance of the Factory Overhead account, we need to calculate the applied overhead based on actual labor costs and compare it with the actual overhead costs incurred. The predetermined overhead rate is calculated as estimated overhead costs divided by estimated direct labor costs, which is $300,000 / $150,000 = 2. So, for every dollar of direct labor cost, Mango Company applies $2 in overhead costs.
Using this predetermined overhead rate, the applied overhead for the actual direct labor costs ($170,000) is 2 × $170,000 = $340,000. Since the actual overhead costs were $330,000, this results in a year-end Factory Overhead account with an overapplied balance of $340,000 - $330,000 = $10,000.
Bloom Company management predicts that it will incur fixed costs of $160,000 and earn pretax income of $164,000 in the next period. Its expected contribution margin ratio is 25%.Required: 1. Compute the amount of total dollar sales.2. Compute the amount of total variable costs.
Answer:
SALES IN DOLLAR $1,296,000VARIABLE COST IN DOLLAR $972,000Explanation:
The process would be to use formulas of the variable costing method to solve for each term:
We are going to use the operating income formula
contribution margin - fixed cost = operating income
Replace with the know values:
contribution margin - 160,000 = 164,000
now solve for the unknow value
contribution = 164,000 + 160,000 = 324,000
Next step we use the contribution margin ratio formula to get the sales:
contribution margin/sales = contribution ratio
Replace with the know values:
324,000/sales = 0.25
now solve for the unknow value:
sales = 324,000/0.25 = 1,296,000
Lastly we use the contribution margin formula to solve for variable cost:
sales - variable cost = contribution margin
Replace with the know values:
1,296,000 - variable cost = 324,000
now solve for the unknow value:
variable cost= 1,296,000 - 324,000 = 972,000
Total dollar sales is calculated to be $1,296,000 and total variable costs is calculated to be $972,000.
Explanation:The first part of the question asks for the total dollar sales. To find this, we use the formula for contribution margin: Contribution Margin Ratio = (Sales - Variable Costs) / Sales. Rearranging this formula, you get Sales = (Fixed Costs + Pretax income) / Contribution Margin Ratio. Plugging the provided values into the formula, we get Sales = ($160,000 + $164,000) / 0.25 = $1,296,000.
The second part asks for the total variable costs. Recall that the Contribution Margin Ratio is also equal to 1 - (Variable Costs / Sales). Rearrange this to get Variable Costs = Sales - (Sales × Contribution Ratio), and substituting the given values, it gives us Variable Costs = $1,296,000 - ($1,296,000 × 0.25) = $972,000.
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The next dividend payment by Savitz, Inc., will be $2.08 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. If the stock currently sells for $42 per share, what is the required return?
A U.S. exporter has a Thai baht account receivable resulting from an export sale on June 1 to a customer in Thailand. The exporter signed a forward contract on June 1 to sell Thai baht and designated it as a cash flow hedge of a recognized Thai baht receivable. The spot rate was $0.022 on that date, and the forward rate was $0.021. Which of the following did the U.S. exporter report in net income?
a. Discount expense
b. Discount revenue
c. Premium expense
d. Premium revenue
Answer: the correct answer is a. discount expense
Explanation: The spot price is the current price at which a commodity is traded. The exporter will report in its net income a discount because in the future the rate is lower.
On January 1, 2018, Green Corporation purchased 34% of the outstanding voting common stock of Gold Company for $300,850. The book value of the acquired shares was $275,200. The excess of cost over book value is attributable to an intangible asset on Gold's books that was undervalued and had a remaining useful life of five years. For the year ended December 31, 2018, Gold reported net income of $125,150 and paid cash dividends of $25,450. What is the carrying value of Green's investment in Gold at December 31, 2018?
Answer:
Total Green's Investment 329,607.8
Explanation:
Book Value 275,200
Goodwill 25,650
First we calculate the goodwill, which will be amortize over 5 years
[tex]\frac{goodwill}{useful \: life} = amortization \: per \: year[/tex]
Amortization of Goodwill 25,650/5 = 5,130
Goodwill at December 31th 20,520
Next we use proportional equity to adjust the Green's book value Our proportion is 34%
Book Value 275,200
+ 34% of net income 125,120 = 42,540.8
-34% of cash dividends 25,450 = (8,653)
Book Value at December 31th 309,087.8
Book Value at December 31th 309,087.8
Goodwill at December 31th 20,520
Total Green's Investment 329,607.8
The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 20% a year for the next four years and then decreasing the growth rate to 5% per year. The company just paid its annual dividend in the amount of $1.00 per share. What is the current value of one share if the required rate of return is 9.25%?
Answer:
Intrinsic Value = $38.0025
Explanation:
[tex]\left[\begin{array}{ccc}Year&Dividends&Present \: Value\\0&1&-\\1&1.2&1.0984\\2&1.44&1.2065\\3&1.728&1.3252\\4&2.0736&1.4556\\5&51.2301&32.9168\\Intrinsic&Value&38.0025\\\end{array}\right][/tex]
Fist, we calcualte the increase of the dividends, by multipling by (1+growth) 1.20 until year 4.
At year 5 we multiply by 1.05
Because from here the company will have a fixed growth rate, we can apply the dividend growth model
[tex]\frac{divends}{return-growth} = Intrinsic \: Value[/tex]
1.52838/ (0.0925-0.05) = 51.2301
Next we have to bring all these dividends, which are placed in futures date, to present value:
[tex]\frac{Principal}{(1 + rate)^{time} } = PV[/tex]
for example
[tex]\frac{1.728}{(1 + 0.0925)^{3} } = PV[/tex]
PV = 1.3252
Lastly, we add all the PV to get the intrinsic value of the share today.
MNO Corporation uses a job-order costing system with a predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:Total estimated direct labor-hours 50,000Total estimated fixed manufacturing overhead cost $ 285,000Estimated variable manufacturing overhead per direct labor-hour $ 3.80Recently, Job P123 was completed with the following characteristics:Total actual direct labor-hours 20Direct materials $ 710Direct labor cost $ 500The total job cost for Job P123 is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
Total cost for Job P123 = $1,400
Explanation:
For Job P123 we have following information
Total labor hours = 20
Direct Materials = $710
Direct Labor cost = $500
Manufacturing Overhead cost = 20 hours X $3.8 per labor hour = $76
Fixed Manufacturing Overhead Cost Allocated to this job =
($285,000 / 50,000 ) X 20 hours = $114
The total cost for Job P123 = $710 + $500 + $76 + $114 = $1,400
Note: Fixed Manufacturing cost is allocated based on number of actual direct labor hours, as the entire activity of the organisation is not provided.
The total cost for Job P123 = $1,400
On July 1 of year 1, Elaine purchased a new home for $665,000. At the time of the purchase, it was estimated that the property tax bill on the home for the year would be $13,300 ($665,000 × 2%). On the settlement statement, Elaine was charged $6,650 for the year in property taxes and the seller was charged $6,650. On December 31, year 1 Elaine discovered that the real property taxes on the home for the year were actually $14,300. Elaine wrote a $14,300 check to the local government to pay the taxes for that calendar year (Elaine was liable for the taxes because she owned the property when they became due). What amount of real property taxes is Elaine allowed to deduct for year 1? (Assume not married filing separately.)
Answer:
The amount of real property taxes that Elaine is allowed to deduct for year 1 is $7150.
Explanation:
Elaine started living in the new home from July, which means that she has been living there for 6 months ( as per current date). But at the time when she purchased the house the total amount of property tax was $13,300 and now it is $14,300.
Since last 6 months she has been living in that home, and current property tax is $14,300 , that means now she is allowed a 50% deduction on the property taxes ,
$14,300 / 2 = $7150
Therefore Elaine is allowed $7150 as amount of deduction on property tax.
Kim is thinking of organizing a fundraiser to support a local charity. She has planned to rent a banquet hall and provide the guests with food, entertainment, and various party favors. She has decided to charge $500 a person. After researching around town, Kim has discovered the following costs:
Fixed Costs
Rental fee of banquet hall $150,000Advertising 50,000Entertainment 4,000Variable Costs Per Guest
Food $12Other miscellaneous costs 8How many guests must attend in order for Kim to break even?
Kim must have 425 guests attend her fundraising event in order to break even, considering her total fixed costs of $204,000 and variable costs of $20 per guest with a ticket price of $500 per person.
Explanation:Break-Even AnalysisTo calculate the number of guests needed for Kim to break even on her fundraiser, we need to consider both fixed and variable costs. The fixed costs, which include the rental fee, advertising, and entertainment, total $204,000 ($150,000 + $50,000 + $4,000). The variable costs per guest are the sum of food and miscellaneous costs, which total $20 per guest ($12 for food + $8 for miscellaneous costs). Kim is planning to charge each guest $500.
To find the break-even point, we can use the following formula:
Fixed Costs / (Price per Person - Variable Costs per Person) = Break-Even Point
Using this formula, we get $204,000 / ($500 - $20) = $204,000 / $480 = 425 guests. Therefore, Kim must have 425 guests attend her fundraising event to break even.