Answer:
June 15
Dr Cash dividend 121,690
Cr Dividend payable 121,690
July 10
Dr Dividend payable 121,690
Cr Cash 121,690
Dec.15
Dr Cash dividend 138,513
Cr Dividend payable 138,513
Explanation:
Grouper Corp Journal entries
Date Accounts titles and Explanation Debit ($) Credit ($)
June 15
Dr Cash dividend 121,690
Cr Dividend payable 121,690
[($61,600+$12,150)*$1.65]
July 10
Dr Dividend payable 121,690
Cr Cash 121,690
Dec.15
Dr Cash dividend 138,513
Cr Dividend payable 138,513
[(61,600+12,150+5,400)*1.75]
Classifying events as asset source, use, or exchange Vera Company experienced the following events during its first year of operations.
1. Acquired $16,000 cash from the issue of common stock.
2. Paid $3,500 cash for salary expenses.
3. Borrowed $10,000 cash from New South Bank.
4. Paid $6,000 cash to purchase land.
5. Provided boarding services for $10,500 cash.
6. Acquired an additional $1,000 cash from the issue of common stock.
7. Paid $2,400 cash for utilities expense.
8. Paid a $1,500 cash dividend to the stockholders.
9. Provided additional services for $6,000 cash.
10. Purchased additional land for $2,500 cash.
11. The market value of the land was determined to be $24,000 at the end of the accounting period.
Required
Classify each event as an asset source, use, or exchange transaction.
Answer:
Vera Company
1. Acquired $16,000 cash from the issue of common stock. [ Exchange; Cash balance increases while Owners Equity also increases. The net effect is zero ]
2. Paid $3,500 cash for salary expenses [ Asset Use; because we deplete Cash as an asset to pay for an expense item]
3. Borrowed $10,000 cash from New South Bank. [ Exchange. We got cash (an asset) but created a liability through bank loan, net effect is zero]
4. Paid $6,000 cash to purchase land. [ Exchange; depleted Cash (an Asset) to obtain another Asset (Land) net effect is zero]
5. Provided boarding services for $10,500 cash. [ Asset Source; income is driving up our cash balance (an Asset)]
6. Acquired an additional $1,000 cash from the issue of common stock. [ Exchange; Cash balance increases while Owners Equity also increases. The net effect is zero ]
7. Paid $2,400 cash for utilities expense. [ Asset Use; because we deplete Cash as an asset to pay for an expense item]
8. Paid a $1,500 cash dividend to the stockholders. [ Asset Use; because we deplete Cash as an asset to pay for dividend to shareholders]
9. Provided additional services for $6,000 cash. [ Asset Source; income is driving up our cash balance (an Asset)]
10. Purchased additional land for $2,500 cash. [ Exchange; depleted Cash (an Asset) to obtain another Asset (Land) net effect is zero]
11. The market value of the land was determined to be $24,000 at the end of the accounting period. :[ Asset Source; improvement in fair valuation of Asset]
Explain whether the following government policies affect the aggregate demand curve or the short-run aggregate supply curve and how. a) The government reduces the minimum nominal wage. b) The government increases Temporary Assistance to Needy Families (TANF) payments, government transfers to families with dependent children. c) To reduce the budget deficit, the government announces that households will pay much higher taxes beginning next year. d) The government reduces military spending.
Answer: Please refer to Explanation
Explanation:
a) The government reduces the minimum nominal wage.
SHORT-RUN Aggregate Supply Curve shifts RIGHT.
By reducing the nominal minimum wage, the government has made one of the primary inputs in production, cheaper. They have reduced the cost of labour so suppliers can afford to produce more at a lesser cost and they will take advantage by doing just that. This increase will move the SRAS to the right.
b) The government increases Temporary Assistance to Needy Families (TANF) payments, government transfers to families with dependent children.
Aggregate Demand Curve shifts RIGHT.
By increasing Transfer Payments, the government is putting more money in the hands of people. This will mean that there is more money to spend on goods and services and this is what people will do. This will have the effect of increasing Aggregate Demand. This will shift the AD curve to the right.
c) To reduce the budget deficit, the government announces that households will pay much higher taxes beginning next year.
AD Curve shifts LEFT
By imposing higher taxes, the government is reducing the amount of income people have to spend on goods and services. This still translate to a reduction in Aggregate Demand and thus the AD curve shifts left.
d) The government reduces military spending.
Aggregate Demand Curve shifts LEFT
The Aggregate Demand Curve is essentially GDP. Government Spending is a major component of GDP so if the government reduces it, then GDP will reduce as well. This will shift the Aggregate Demand Curve LEFT to signify a reduction.
Final answer:
Government policies can impact either the aggregate demand curve or the short-run aggregate supply curve based on their implications, such as altering minimum wage, social assistance payments, taxes, or government spending.
Explanation:
Government policies can affect either the aggregate demand curve or the short-run aggregate supply curve depending on their nature.
a) Reducing the minimum nominal wage affects the short-run aggregate supply curve by lowering production costs and increasing the profitability of firms, which in turn leads to an increase in aggregate supply.
b) Increasing Temporary Assistance to Needy Families (TANF) payments affects the aggregate demand curve by directly affecting consumers' purchasing power, hence influencing consumption and overall demand in the economy.
c) To reduce the budget deficit by announcing higher taxes, it directly impacts aggregate demand by reducing consumers' disposable income, leading to a decrease in consumption and overall demand.
d) Reducing military spending affects the aggregate supply curve by potentially freeing up resources that could be redirected to other sectors, impacting production levels and supply in the economy.
Mike Samson is a college football coach making a base salary of $650,400 a year ($54,200 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the FICA base amount is $128,400. 1. Compute how much will be withheld during the year for Coach Samson’s Social Security and Medicare.
Answer:
The amount that will be withheld during the year for Coach Samson’s is $7,960.80 for Social Security and $9,430.80 Medicare.
Explanation:
In order to calculate how much will be withheld during the year for Coach Samson’s Social Security and Medicare, we would have to make the following calculations:
Accoring to the given data we have that the FICA base amount is $128,400
Therefore, Ammount to be withheld for Social Security= $128,400× 6.2%
Ammount to be withheld for Social Security=$7,960.80
Ammount to be withheld for Medicare= $650,400× 1.45%
Ammount to be withheld for Medicare= $9,430.80
The amount that will be withheld during the year for Coach Samson’s is $7,960.80 for Social Security and $9,430.80 Medicare.
A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2021. Accounting records on that date indicated the following: Merchandise inventory, January 1, 2021 $ 1,970,000 Purchases to date 5,870,000 Freight-in 470,000 Sales to date 8,900,000 The gross profit ratio has averaged 20% of sales for the past four years. Required: Use the gross profit method to estimate the cost of the inventory destroyed in the fire.
Answer:
$1,190,000
Explanation:
The computation of cost of the inventory is given below:-
For computing the cost of inventory first we need to find out the cost of goods sold which is shown below:-
Cost of goods sold = Sales - Estimated gross profit
= $8,900,000 - ($8,900,000 × 20%)
= $7,120,000
Now, the Cost of the inventory = Beginning inventory + Purchase + Freight - Cost of goods sold
= $1,970,000 + $5,870,000 + $470,000 - $7,120,000
= $8,310,000 - $7,120,000
= $1,190,000
So, for computing the cost of the inventory we have applied the above formula.
"When ClubCorp had an attrition problem, they hired a market research company to get to the bottom of things. What two things did they discover were most important to members if they were to remain members?"
Things did they discover were most important to members if they were to remain members are Cost of Membership and Benefits Of being Member.
What is Membership ?The condition or standing of membership; the group of people who make up a sizable organization. Mathematics: the relationship between a set's or class's element and the set or class as a whole.
A membership model is a sort of business strategy in which customers pay a regular charge to use the value a company produces. It offers the layout for various membership tiers, revenue streams, marketing initiatives, events and conferences, and financial arrangements.
The advantages, services, and access that members get as part of their membership are known as member benefits. To put it another way, these are the benefits that members receive in return for joining the organization and, if necessary, paying membership dues.
Here are some common characteristics. Effective communication is a successful membership organization's key component. Focus on the information that members want and need frequently, and then give it to them – a process made easier by modern technology.
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A fire destroyed a large percentage of the financial records of a health system. You have the task of piecing together information to prepare a financial report. You have found the profit margin to be 5.4 percent. The sales were $4 million on total assets of $2 million and the debt financing was $800,000. Using the Du Pont equation, what was the organization's return on equity?
Answer:
18.0
Explanation:
Net income = profit margin * sales = 5.4% * 4 million = 0.216 million
Equity = total assets - debt = 2 million - 800,000 = 1.2 million
ROE = net income / equity = 0.216 / 1.2 = 18%
So answer is 18.0%
Suppose the marginal propensity to consume is 0.75 and the government spending multiplier is 4. If the government decreases its purchases by $100 million, the aggregate demand curve will shift to the by $ million. If the government increases income taxes by $100 million, the aggregate demand curve will shift to the by $ million.
Final answer:
The aggregate demand curve will shift to the left by $400 million if government purchases decrease by $100 million, and it will shift to the right by $300 million if income taxes increase by $100 million.
Explanation:
The government spending multiplier is a number that indicates how much change in aggregate demand would result from a given change in government spending. If the government decreases its purchases by $100 million, the aggregate demand curve will shift to the left by $400 million. This is because the initial decrease in government spending will lead to a decrease in income, which in turn decreases consumption. The opposite is true for an increase in income taxes by $100 million. The aggregate demand curve will shift to the left by $300 million.
Bia garden store makes two types of gazebo. Making a wooden gazebo requires 4 hours of labor while making a metal gazebo requires 10 hours of labor. During the most recent accounting period the company made 2,000 wooden gazebos and 500 metal gazebos. Indirect manufacturing costs amounted to $52,000 and are allocated based on labor hours. Based on this information: OA. $4 of overhead cost should be allocated to each gazebo regardless of the type. OB. $20.80 of overhead cost should be allocated to each gazebo regardless of the type. O C.$16 of overhead cost should be assigned to each wooden gazebo and $40 of overhead cost should be assigned to each metal gazebo. None of the answers are correct.
Answer:
C.$16 of overhead cost should be assigned to each wooden gazebo and
$40 of overhead cost should be assigned to each metal gazebo
Explanation:
2,000 wooden x 4 hours = 8,000 labor hours
500 metal x 10 = 5,000 labor hours
total hours 13,000
single manufacturing overhead: 52,000 / 13,000 = $4 per labor hours
wooden gazebos: 4hours x $4 = $ 16
metal gazebos: 10 hours x $4 = $40
A client in the 33 percent marginal tax bracket is comparing a municipal bond that offers a 5 percent yield to maturity and a similar-risk corporate bond that offers a 6.25 percent yield. Which bond will give the client more profit after taxes
Answer:
The municipal bond
Explanation:
5%/1-.33 = 7.46
1.7.46>6.25, so the client should take the municipal bond
Northwoods Backpackers is a retail catalog store in Vermont that specializes in outdoor clothing and camping equipment. Phone orders are taken each day by a large pool of computer operators, some of whom are permanent and some temporary. A permanent operator can process an average of 76 orders per day, whereas a temporary operator can process an average of 53 orders per day. The company averages at least 600 orders per day. The store has 10 computer workstations. A permanent operator processes about 1.3 orders with errors each day, whereas a temporary operator averages 4.1 orders with errors daily. The store wants to limit errors to 24 per day. A permanent operator is paid $81 per day, including benefits, and a temporary operator is paid $50 per day. The company wants to know the number of permanent and temporary operators to hire to minimize costs.
Formulate an integer programming model for this problem and solve it by using the computer.
The integer linear programming model for the question can be formed as Minimize Z = 81P + 50T subject to the constraints 76P + 53T >= 600, 1.3P + 4.1T <= 24, and P + T <= 10. This problem is then solved using a computer software tool.
Explanation:This problem can be approached with linear programming, a mathematical method used for optimizing resource allocation. In this case, the resources are the permanent and temporary operators, and the goal is to minimize costs while meeting business constraints.
Let 'P' represent the number of permanent operators and 'T' the number of temporary operators,The Constraint for orders: 76P + 53T >= 600,The Constraint for errors: 1.3P + 4.1T <= 24, andThe Constraint for Workstations: P + T <= 10.
A linear programming problem considering the above factors can be formed to minimize cost, i.e., Minimize Z = 81P + 50T Given the constraints.
You can then solve this integer linear programming problem using computer software like Excel Solver, LINGO, or similar tools to obtain optimal values of P and T, i.e., the number of permanent and temporary operators to hire.
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An integer programming model was formulated to minimize costs for Northwoods Backpackers. The model incorporates constraints for order processing, error limits, and workstations. Integer values for permanent and temporary operators are determined using a solver to find the optimal solution.
To determine the optimal number of permanent and temporary operators to minimize costs while meeting order and error constraints, we can set up an integer programming model:
Objective Function:
Minimize Cost: 81P + 50TConstraints:
Order capacity: 76P + 53T ≥ 600Error limit: 1.3P + 4.1T ≤ 24Workstation limit: P + T ≤ 10Non-negativity: P, T ≥ 0 (P and T are integers)Definitions:
P = number of permanent operatorsT = number of temporary operatorsUsing a solver or specialized software, find integer values of P and T that minimize the cost function, 81P + 50T, while satisfying all constraints.Calculate the value of a bond that matures in 12 years and has a $ 1 comma 000 par value. The annual coupon interest rate is 13 percent and the market's required yield to maturity on a comparable-risk bond is 11 percent.
Answer:
Price of bond=$ 1,129.847
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
Step 1
PV of interest payments
annul interest payment
= 13% × 1000 = 130
PV = A × ( (1- (1+r)^(-n))/r
Annual yield - r= 11% per annum
Total period to maturity- n = 12 years
PV of interest
=130× (1- 1.11^(-12) )/0.11
= 844.00
Step 2
PV of Redemption Value
= 1,000 × (1.11)^(-12)
= 285.84
Step 3
Total PV = 844.00 + 285.84 = 1129.847123
Price of bond=$ 1,129.8471
Prepare the journal entries to record the following transactions on Ivanhoe Company’s books using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (a) On March 2, Ivanhoe Company sold $882,900 of merchandise to Metlock Company on account, terms 3/10, n/30. The cost of the merchandise sold was $527,900. (b) On March 6, Metlock Company returned $107,600 of the merchandise purchased on March 2. The cost of the merchandise returned was $66,800. (c) On March 12, Ivanhoe Company received the balance due from Metlock Company.
To record the transactions in Ivanhoe Company's books, you would make the following journal entries:
Accounts Receivable 882,900Sales Revenue 882,900
2. Cost of Goods Sold 527,900
Inventory 527,900
3. Metlock Company 107,600
Accounts Receivable 107,600
4. Inventory 66,800
Cost of Goods Sold 66,800
5. Cash 813,645
Sales Discount 21,255
Accounts Receivable 835,900
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A profit-maximizing firm in a competitive market is able to sell its product for $7. At its current level of output, the firm's average total cost is $10. The firm’s marginal cost curve crosses its marginal revenue curve at an output level of 9 units. The firm experiences a
a. profit of more than $27.
b. profit of exactly $27.
c. loss of more than $27.
d. loss of exactly $27.
Answer:
d. loss of exactly $27.
Explanation:
Under a competitive firm, a profit-maximizing firm level of output can be find out by equating the marginal revenue with its marginal cost i.e
Marginal revenue = Marginal cost
As we know that
Average total cost = Total cost ÷ Quantity
$10 = Total cost ÷ 9
So, the total cost is
= $10 × 9
= $90
And,
Total revenue = Price × quantity
= $7 × 9
= $63.
So,
Profit = Total revenue - total cost
= $63 - $90
= -$27
This amount comes in a negative which reflects that there is a loss of $27
On January 1, Year 2 Grande Company had a $15,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $66,000 of service on account. The company collected $62,500 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account. What is the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows? Multiple Choice $62,500 $61,250 $66,000 $51,300
Answer:
$62,500
Explanation:
As we know that cash flow statement records the cash inflow and cash outflow and ignored all other transactions which are not made in cash
Since in the question it is given that $62,500 is cash collected from account receivable and the same is to be shown in the operating activities in a positive sign that indicates an inflow of cash
The demand for cars in Home is q = 30 – P and the supply of cars in Home is q = P. The demand for cars in Foreign is q = 20 – P and the supply of cars in Foreign is q = P.a) Calculate the equilibrium price and quantity in each country under isolation.b) Who is the importer of cars and who is the exporter?c) Write the import demand for Home and the export supply for Foreign.
Answer:
Equilibrium price and Quantity are the price at which Demand and Supply equal each
1. Local
If quantity demanded = 30 - p
And quantity supplied = p
And we know equilibrium is achieved when both are equal.
Therefore 30 - p = p is equilibrium
2p = 30
P = 15
Equilibrium Quantity demanded & supplied = 30 - 15 = 15.
2. Foreign
If quantity demanded = 20 - p
And quantity supplied = p
And we know equilibrium is achieved when both are equal.
Therefore 20 - p = p is equilibrium
2p = 20
P = 10
Equilibrium Quantity demanded & supplied = 20 - 10 = 10
3. The importer of cars is the demand for foreign = 20 - P
4. The exporter of cars is the supply of foreign cars = P.
Lambert Company acquired machinery costing $110,000 on January 2, 2016. At that time, Lambert estimated that the useful life of the equipment was 6 years and that the residual value would be $15,000 at the end of its useful life. Compute depreciation expense for this asset for 2016, 2017, and 2018 using the a. Straight-line method b. Double-declining balance method C. Assume that on January 2, 2018, Lambert revised its estimate of the useful life to 7 years and changed its estimate of the residual value to $ 10,000. What effect would this have on depreciation expense in 2018 for each of the above depreciation methods?
Answer:
Depreciation expense for 2016 2017 2018
Method: Straight-line $15,833 $15,833 $15,833
Double-declining $36,663 $24,443 $16,296
The revision of the estimates at the beginning of 2018 would lead to lower yearly depreciation expense.
Explanation:
(a) Under straight-line method, depreciation expense is (cost - residual value) / No of years = ($110,000 - $15,000) / 6 years = $15,833 yearly depreciation expense. This depreciation expense of $15,833 applies to Years 2016, 2017 and 2018. Accumulated depreciation for those years is $15,833 x 3 years $47,499.
(b) The double-declining method is otherwise known as the reducing balance method and is given by the formula below:
Double declining method = 2 X SLDP X BV
SLDP = straight-line depreciation percentage
BV = Book value
SLDP is 100%/6 years = 16.67%, then 16.67% multiplied by 2 to give 33.33%
At Year 2016, 33.33% X $110,000 = $36,663
At Year 2017, 33.33% X $73,337 ($110,000 - $36,663) = $24,443
At Year 2018, 33.33% X $48,894 ($73,337 - $24,443) = $16,296
Accumulated depreciation expense for Years 2016 to 2018, under this method, is $77,402 (addition of all the yearly depreciation).
(c) If after 2 years, the revised estimated useful life becomes 7 years and the residual value is $10,000, depreciation would be calculated as follows:
Under the straight-line method, NBV (net book value) at the end of 2017 is: $110,000 - $15,833 x 2 years = $78,334
Depreciation expense is: ($78,334 - $10,000) / 7 years = $9,762 (decrease in 2018 yearly depreciation charge)
Under the double-declining method, SLDP is 100%/7 years = 14.29%, then multiplied by 2 to give 28.57%.
At Year 2018, 28.57% X $48,894 ($73,337 - $24,443) = $13,969 (decrease in 2018 yearly depreciation charge)
Final answer:
Depreciation expense for Lambert's machinery is calculated using straight-line and double-declining balance methods. In 2018, a revision of estimates affects the straight-line method, resulting in a new rate, while the double-declining method remains based on the original estimation unless materially impacted.
Explanation:
Lambert Company must calculate the depreciation expense for machinery acquired in 2016 using various methods, and understand the impact of revised estimates in 2018.
a. Straight-Line Depreciation Method:
Original cost: $110,000
Residual value: $15,000
Useful life: 6 years
Depreciation expense [(Original cost - Residual value) / Useful life]:
[(110,000 - 15,000) / 6] = $95,000 / 6 = $15,833.33 per year for 2016 and 2017.
b. Double-Declining Balance Method:
2016: 2 x (1/6) x $110,000 = $36,666.672017: 2 x (1/6) x ($110,000 - $36,666.67) = $24,444.44In 2018, with the revised estimate of 7 years total useful life and a residual value of $10,000, the straight-line depreciation would be recalculated over the remaining 5 years as follows:
(Original cost - Accumulated depreciation - New residual value) / New remaining useful life: ($110,000 - $31,666.67 - $10,000) / 5 = $68,333.33 / 5 = $13,666.67 for 2018.
c. The double-declining balance method would not change for 2018 as it is typically recalculated each year based on the book value at the start of the year and the original useful life of the asset, unless there is a significant adjustment due to impairment or change in estimated useful life.
During March, 80,000 units of a standard product were produced. The standard quantity of direct material allowed for one unit was two pounds at a standard price of $5 per pound. If there was a favorable direct material quantity variance of $40,000 for March, the actual quantity of direct material used must have been Multiple Choice 168,000 pounds 152,000 pounds 84,000 pounds 76,000 pounds
Answer: 152,000 pounds
Explanation:
Right. Variance is refered to as the difference between the Actual units it took to produce and the budgeted/ standard unit it took
When the Actual units are less than the standard units, the Variance is said to be Favourable. The reverse is true.
So first we will calculate the standard quantity of direct material.
The standard quantity of direct material allowed for one unit was two pounds at a standard price of $5 per pound with 80,000 units produced,
Calculating therefore would give us,
= 80,000 * 5 * 2
= $800,000
$800,000 was the standard variance.
It was said that the variance is favourable meaning that the Standard Variance is more than the actual.
So subtracting the variance we have,
= 800,000 - 40,000
= $760,000
$760,000 is the actual quantity amount so we have to convert to pounds,
= 760,000 / $5 per pound
= 152,000 pounds
The actual quantity of direct material used for March must have been $152,000 pounds.
Family Furniture Corporation incurred the following costs. Identify the costs as variable, fixed, or mixed. 1. Wood used in the production of furniture. 2. Fuel used in delivery trucks. 3. Straight-line depreciation on factory building. 4. Screws used in the production of furniture. 5. Sales staff salaries. 6. Sales commissions. 7. Property taxes. 8. Insurance on buildings. 9. Hourly wages of furniture craftsmen. 10. Salaries of factory supervisors. 11. Utilities expense. 12. Telephone bill.
Answer: Please refer to Explanation
Explanation:
1. Wood used in the production of furniture. VARIABLE COST
2. Fuel used in delivery trucks. VARIABLE COST
3. Straight-line depreciation on factory building. FIXED COST
4. Screws used in the production of furniture. VARIABLE COST
5. Sales staff salaries. FIXED COST
6. Sales commissions. VARIABLE COST
7. Property taxes. FIXED COST
8. Insurance on buildings. FIXED COST
9. Hourly wages of furniture craftsmen. VARIABLE COST
10. Salaries of factory supervisors. FIXED COST
11. Utilities expense. MIXED COST
12. Telephone bill. MIXED COST
When a recessionary gap occurs,
a. Real output exceeds the natural level of output, and unemployment exceeds its natural rate
b. Real output exceeds the natural level of output, and unemployment is less than its natural rate.
c. Real output is less than the natural level of output, and unemployment exceeds its natural rate.
d. Real output is less than the natural level of output, and unemployment is less than its natural rate.
Answer: Real output is less than the natural level of output, and unemployment exceeds its natural rate. (C)
Explanation:
The recessionary gap is a term in macroeconomic which describes an economy that is operating at a level which is below its full-employment equilibrium. The recessionary gap is also known as a contractionary gap, it is the difference between the potential gross domestic product of a country at full employment and its current employment level which puts pressure on the price in the long run.
The recessionary gap is seen during economic downturn and usually associated with increase in unemployment.
Ultimately, the study of international business is no different from the study of domestic business. Thus, there is no point in having a separate course on international business." Evaluate this statement. Is it true? Why? Why not?
Answer:
Explanation:
Where the culture and the mode of living are completely different, international business is going beyond boundaries.
People of single culture and region are been dealt with in the domestic business, and it is easy to know what the customer needs. Many cultures are been dealt with when it comes to international business, and there is a need for product customization as per the location. This would require a team that manages these issues in each region.
Hence, when compared to domestic business, the business will be in a large mode. Thus, there is a separate course for international business which helps us to reach the heights we require to see the whole world.
Based on the explanation above, the statement given in the question is false.
The assertion that the study of international business is no different from the study of domestic business is incorrect. International business involves dealing with different cultural expectations, diverse legal systems, diverse market conditions, multiple economic systems, and logistical challenges that are unique to operating across borders. Therefore, there is a clear need for separate courses on international business.
Explanation:The premise that the study of international business is no different from the study of domestic business implies both disciplines require similar skills and knowledge. However, this is not entirely accurate. While there may be similarities, there are also many distinct elements that differentiate the two.
First, international business often involves dealing with different cultures, legal systems, and market conditions. Understanding these factors is crucial when trying to achieve success in international markets. For instance, successful marketing strategies in one country may not work in another due to cultural differences.
Second, in domestic business, one deals with a single economic, social and political environment. However, in international business, one has to deal with varying economic systems, regulatory structures, and political climates. There's also the issues of dealing with different currencies and complex tax regulations in international business.
Lastly, there are logistical challenges and strategic considerations unique to international businesses such as handling international logistics, managing subsidiaries in different countries, and dealing with geopolitical risks. Given the complexities and differences highlighted, it is clear that there is a need for separate, dedicated courses on international business.
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Keck Co. had 300 units of product A on hand at January 1, 2017, costing $21 each. Purchases of product A during January were as follows:Date Units Unit CostJan. 10 400 $2218 500 2328 200 24A physical count on January 31, 2017 shows 400 units of product A on hand. The cost of the inventory at January 31, 2017 under the LIFO method isa. $9,400.b. $8,900.c. $8,500.d. $8,200.
Answer:
c. $8,500
Explanation:
The computation of the ending inventory using the LIFO method is shown below:
Since it is given that 400 units of product A are on hand which reflects the ending inventory units
So
= 300 units × $21 + 100 units × $22
= $6,300 + $2,200
= $8,500
The 100 units depicts the remaining units i.e
= 400 units - 300 units
= 100 units
First we take the Jan 1 units than the remaining units would take from Jan 10
Perry Corporation produces and sells a single product. Data for that product are:
Sales price per unit $250
Variable cost per unit $180
Fixed expenses for the month $600,000
Currently selling 12,000 units
Upper management is considering using a biodegradable packaging which costs $5 more per unit but it produces less waste in the long run. Management plans to increase advertising by $10,000 per month to advertise this new feature to their packaging. They believe that environmentally friendly people will switch to their product resulting in an increase in sales of 2,000 units per month.
How many units would the company have to sell to maintain current operating income if these changes are implemented? Round up to the nearest whole unit.
Answer:
13,077 units
Explanation:
Hint : Work from bottom to top
Current Operating Income = Sales - Expenses
= (12,000×$250) - ($180×12,000+$600,000)
= $3,000,000 - $2,760,000
= $240,000
Income Statement - New
Sales ( $250× 13077) $3,269,250
Less Variable Costs :
Current ( $180 × 13077) ($2,353,860)
Biodegradable packaging($5 × 13077) ($65,385)
Contribution $850,000
Less Fixed Costs :
Current ($600,000)
Advertising ($10,000)
Target Operating Income $240,000
Contribution per unit = 250-180-5
= $65
Number of Units = $850,000/ $65
= 13077
Final answer:
To maintain current operating income with the changes in packaging and advertising, Perry Corporation would need to sell approximately 11,385 units, when the anticipated increase in sales is included.
Explanation:
To calculate the number of units Perry Corporation needs to sell to maintain current operating income after the changes, we need to consider the increase in the variable cost per unit due to the new packaging and the increased advertising expenses. The current contribution margin per unit is the sales price per unit minus the variable cost per unit, which is $250 - $180 = $70. With the new packaging, the variable cost will be $180 + $5 = $185 per unit, reducing the contribution margin to $250 - $185 = $65 per unit.
The total fixed costs will be the original amount plus the additional advertising cost, $600,000 + $10,000 = $610,000. We can use the following formula to determine the new break-even point in units:
Break-even point in units = Total Fixed Costs / Contribution Margin per Unit
Plugging in the values:
Break-even point in units = $610,000 / $65 ≈ 9385 units (rounded up)
Since the company expects to increase sales by 2,000 units due to the environmentally friendly packaging, we need to add these to the break-even number:
New required sales to maintain income = 9385 + 2000 = 11,385 units (rounded up)
Rick Alexander is a master builder who spent three decades running a successful home-restoration business in Connecticut. When his elderly parents fell ill in 2008, he gave up his business and moved to Florida to look after them. He thought it would be easy to find work-after all, he had a certified trade and more than 30 years' experience. He looked first for jobs as a supervisor at construction sites, but didn't find anything Lowering his sights, he next looked for work at wholesalers and lumberyards, and then he applied for any job at hardware stores. Still he experienced a constant stream of rejections. He tried to start his own business, but couldn't generate enough sales to make it profitable. Tired and frustrated, Rick Alexander gave up looking for work For each of the following situations, is Rick Alexander counted as employed, unemployed, or not in the labor force by the Bureau of Labor Statistics? a. Alexander is self-employed in his old job as a carpenter According to the Bureau of Labor Statistics. he is counted as Kiatosend b. Alexander moves to Florida and begins looking for work According to the Bureau of Labor Statistics, he is counted asick to seleciv According to the Bureau of Labor Statistics, he is counted as CTOsee According to the Bureau of Labor Statistics, he is counted as ec o According to the Bureau of Labor Statistics, he is counted as c. Alexander feels discouraged looking for work and stops anplying for jobs d Alexander starts looking for work again e. Alexander starts work at a new job (e employed unemployed not in the labor force
Answer:
a. Employed
(As he have a job)
b. Unemployed
(As he doesn't have a job but is looking for one)
c. not in labor force
(He neither have a job nor is looking for a job, so he is not a part of labor force)
d. Unemployed
(As he is looking fir a job)
e. Employed
(As he is working)
Pauline Found Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed. Setup cost $30 Annual holding cost $100 per subassembly Daily production 25 subassemblies Annual usage 4 comma 500 (50 weekstimes5 days eachtimesdaily usage of 18 subassemblies) Lead time 16 days Safety stock 2 days' production Kanban container size = 98 units (round your response to the nearest whole number). Number of kanbans needed = 3 kanbans (round your response to the nearest whole number).
Answer:
Container size = 52
Number of kanbans required ≈ 7 kanbans
Explanation:
Given the data in the question, to find the Kanban container size, we calculate the economic order quantity (EOQ) using the formula below :
[tex]EOQ = \sqrt{(2*annual usage A*setup cost S)/annual holding cost H}[/tex]
Where
Annual usage A = 4500
Setup cost S = $30
Annual holding cost H = $100
Container size = √{(2×4500×30)÷100} = √2700 = 51.96 ≈ 52
Container size = 52
Number of Kanbans required = (demand during lead time + safety stock) / container size
Where:
Demand during lead time = lead time (16) * daily usage (18)
Demand during lead time = 16*18 = 288
Safety stock = 2 days production, where daily production is 25 subassemblies.
Safety stock = 2*25 = 50 units
Container size = 52 units
Imputing the data into the equation, we obtain :
Number of kanbans required = (288 + 50)/52 = 338/50 = 6.5
Number of kanbans required ≈ 7 kanbans
Safety stock is a word used by logicians to define a quantity of additional stock kept on hand to avoid stock outs due to supply and demand fluctuations.
Container size = 52Number of kanbans required ≈ 7 kanbansGiven the data in the question, to find the Kanban container size, we calculate the economic order quantity (EOQ) using the formula below :
[tex]EOQ=\sqrt{(2*annualusage*setup cost)/annualholding cost}[/tex]
Where,
Annual usage A = 4500
Setup cost S = $30
Annual holding cost H = $100
Container size = √{(2×4500×30)÷100} = √2700 = 51.96 ≈ 52
Container size = 52
Number of Kanbans required = (demand during lead time + safety stock) / container size
Where,
Demand during lead time = lead time (16) * daily usage (18)
Demand during lead time = 16*18 = 288
Safety stock = 2 days production, where daily production is 25 sub assemblies.
Safety stock = 2*25 = 50 units
Container size = 52 units
Imputing the data into the equation, we obtain :
Number of kanbans required = (288 + 50)/52 = 338/50 = 6.5
Number of kanbans required ≈ 7 kanbans
To know more about safety stock, refer to the link:
https://brainly.com/question/19132349
Gundy Corporation produces area rugs. The following per unit cost information is available: direct materials $19, direct labor $7, variable manufacturing overhead $2, fixed manufacturing overhead $4, variable selling and administrative expenses $5, and fixed selling and administrative expenses $7. Using a 30% markup on total per unit cost, compute the target selling price.
Answer:
$57.20
Explanation:
Total unit cost = $19 + $7 + $2 + $4 + $5 + $7 = $44
Target selling price = Total unit cost × (1 + Markup)
Since markup percentage is 30%, or 0.3, we therefore have:
Target selling price = $44 × (1 + 0.3) = $57.20
Therefore, the target selling price is $57.20.
The target selling price for Gundy Corporation's area rugs, using a 30% markup on the total per unit cost of $44, is calculated to be $57.20.
To compute the target selling price for Gundy Corporation's area rugs, we first need to calculate the total per unit cost by adding all the given costs (direct materials, direct labor, variable manufacturing overhead, fixed manufacturing overhead, variable selling and administrative expenses, and fixed selling and administrative expenses). Then we apply a 30% markup on the total per unit cost to find the target selling price.
Direct materials: $19Direct labor: $7Variable manufacturing overhead: $2Fixed manufacturing overhead: $4Variable selling and administrative expenses: $5Fixed selling and administrative expenses: $7The total per unit cost is calculated as $19 + $7 + $2 + $4 + $5 + $7 = $44. The target selling price with a 30% markup is then calculated as $44 * 1.30 = $57.20.
Thus, the target selling price per unit for Gundy Corporation's area rugs is $57.20.
When firms use multiple sources of capital, they need to calculate the appropriate discount rate for valuing their firm's investment cash flows as: Group of answer choices a simple average of the capital components costs a sum of the capital components costs they apply to each asset as they are purchased with their respective forms of debt or equity a weighted average of the capital components costs
Answer:
A Weighted average of the capital components costs.
Explanation:
The weighted average cost of capital (WACC) is, in simple language, the amount a corporation is required to reimburse on aggregate for all its security investors to fund its capital. The WACC is normally applied to by the cost of debt for the company. Crucially, it is determined by the outside market rather than by administrators.
Companies borrow capital from a variety of sources:: preferred stock, common stock, regular debt, contingent debt, transferable debt, options, shares, pension obligations, employee stock options, government grants, etc. Various securities, representing various sources of capital, are supposed to yield various returns.
Dexter Metals, paid its first annual dividend yesterday in the amount of $0.18 a share. The company plans to double each annual dividend payment for the next 3 years. After that time, it plans to pay $1.25 a share for 2 years than then pay a constant dividend of $1.60 per share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 10.24 percent
Answer:
The price per share of this stock is $13.20
Explanation:
Using the dividend discount model, we can calculate the price per share today of this stock. The DDM values a stock based on the present value of the expected future dividends of the stock discounted using the required rate of return on the stock. The price o=per share today for this stock is,
P0 = 0.18 * (1+1) / (1+0.1024) + 0.18 * (1+1)^2 / (1+0.1024)^2 +
0.18 * (1+1)^3 / (1+0.1024)^3 + 1.25 / (1+0.1024)^4 + 1.25 / (1+0.1024)^5 +
(1.60 / 0.1024) / (1+0.1024)^5
P0 = $13.20
Suppose that JPMorgan Chase sells call options on $1.35 million worth of a stock portfolio with beta = 1.70. The option delta is 0.70. It wishes to hedge its resultant exposure to a market advance by buying a market-index portfolio. Suppose it use market index puts to hedge its exposure. The index at current prices represents $1,000 worth of stock. a. How many dollars’ worth of the market-index portfolio should it purchase to hedge its position?
Answer:
Particulars Amount Explanation
Call options 1350000
Beta of stock 1.7
Delta 0.7
Market change 1% Implied stock change is 1.7
Stock changes by 1.7 1.19 Implied exposure on call
options on stock ( ie 1.7*0.7)
Amount of exposure 1606500 Derived by multiplying
1.19*1,350,000
Hence market index portfolio worth $1,606,500 should be bought , however the market index portfolio trade in multiples of 1000 hence $1,607,000 worth should be obtained to hedge the exposure
Explanation:
Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $350 per month plus $89 per job plus $9 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in September to be 21 jobs and 144 meals, but the actual activity was 17 jobs and 141 meals. The actual cost for catering supplies in September was $3,035. The catering supplies in the planning budget for September would be closest to:
Answer:
$3,515
Explanation:
The computation of the catering supplies is shown below:
= Catering supplies per month + per job cost × expected number of jobs + per meal cost × expected number of meals
= $350 + $89 × 21 jobs + $9 × 144 meals
= $350 + $1,869 + $1,296
= $3,515
Since the question is asking for planning budget so we considered the expected units in terms of jobs and meals
Dakota Inc. and Jersey & Company are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry industries. The companies reported the following data (in millions) for two recent years:
Dakota Jersey
Year 2 Year 1 Year 2 Year 1
Net income $2,182 $3,715 $1,925 $3,187
Average number of common shares outstanding 594 599 334 363
Required:
a. Determine the earnings per share in Year 2 and Year 1 for each company. Round your answers to two decimal places.
Answer and Explanation:
The computation of the earning per share is shown below:
As we know that
Earning per share = Net income ÷ Average number of common shares outstanding
For year 1
Dakota
= $3,715 ÷ 599 shares
= $5.30 per share
Jersey
= $3,187 ÷ 363 shares
= $8.78 per share
For year 2
Dakota
= $2,182 ÷ 594 shares
= $3.67 per share
Jersey
= $1,925 ÷ 334 shares
= $5.76 per share