On May 1, Cullumber Company, a company that provides flying lessons, was started by issuing common stock in exchange for cash of $45,100. Following are the assets and liabilities of the company on May 31, 2019, and the revenues and expenses for the month of May. Cash $ 4,800 Notes Payable $28,000 Accounts Receivable 7,550 Rent Expense 1,150 Equipment 64,150 Maintenance and Repairs Expense 600 Service Revenue 6,950 Gasoline Expense 2,250 Advertising Expense 650 Utilities Expense 150 Accounts Payable 1,550 No additional investments were made in May, but the company paid dividends of $350 during the month. Prepare an income statement for the month of May.
Answers
Answer:
Explanation:
Before preparing the income statement, first, we have to compute the net income or net loss. So, the calculation is shown below:
In the simplest form, the net income = Total revenue - total expenses
= Service Revenue - Rent Expense - Maintenance and Repairs Expense - Gasoline Expense - Advertising Expense - Utility Expense
= $6,950 - $1,150 - $600 - $2,250 - $650 - $150
= $2,150
The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:
Related Questions
During the month of June, Blue Boutique had cash sales of $312,440 and credit sales of $183,612, both of which include the 7% sales tax that must be remitted to the state by July 15. Prepare the adjusting entry that should be recorded to fairly present the June 30 financial statements. (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.)
Answers
Answer:
sales revenue 32,452 debit
sales tax payable 32,452 credit
Explanation:
total sales:
cash sales: 312,440
credit sales 183,612
total 496,052
sales tax is 7%
So we have the following:
sales revenue x ( 1 + sales tax) = invoice nominal
so sales revenue: nominal / 1.07
496,052 / 1.07 = 463,600
now we can calculate sales tax by the difference or simply multiply by 7%
463,600 x 1.07 = 32,452
496,052 - 463,600 = 32,452
We will assume no sales tax entry was ever done along wiht the sales, so we will decrease revenue against sales tax payable.
Jack has worked for Widgets, Inc. for 35 years, and he is the only employee who can decipher the old coding on products in the warehouse before computerization took place. Due to the economic downturn, Jack was forced into early retirement. What type of knowledge will Widgets lose?
Answers
Answer: Human capital
Explanation:
Human capital is the stock of habits, knowledge, social and personality attributes (including creativity) embodied in the ability to perform labour so as to produce economic value. Human capital is unique and differs from any other capital. It is needed for companies to achieve goals, develop and remain innovative. Companies can invest in human capital for example through education and training enabling improved levels of quality and production . Human capital is an intangible asset or quality not listed on a company's balance sheet. It can be classified as the economic value of a worker's experience and skills. This includes assets like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.
The concept of human capital recognizes that not all labor is equal. But employers can improve the quality of that capital by investing in employees the education, experience, and abilities of employees all have economic value for employers and for the economy as a whole . In the case for Jack , 35 years of experience is very valuable human capital and also Jack’s skill are very scarce in general , so the company is losing .
Suppose that a politician wants to build more production facilities for solar power and wind power. At the same time, the politician is unwilling to cut any other programs. If the resources that would be used to produce the solar and wind power facilities are already being efficiently used in other programs, where is the point the politician is trying to reach located on the production possibilities frontier?
Answers
Answer:
The politician is trying to reach a point above the production possibility frontier.
Explanation:
Suppose that a politician wants to build more wind power and solar power production facilities. The resources that are to be spent on wind and power facilities are already being efficiently used in other programs. But the politician is not willing to decrease expanse on any other program.
We know that to increase expense on one alternative we need to decrease expense on others. If resources are being efficiently used, to spend on wind and solar power facilities the economy will need more resources.
This means that the politician is trying to reach a point higher than the production possibility frontier.
Final answer:
The politician aims to stay on the production possibilities frontier while increasing solar and wind power facilities, indicating a point of allocative efficiency but also facing the law of increasing opportunity cost as resources would have to be reallocated.
Explanation:
The point the politician is trying to reach on the production possibilities frontier (PPF) is one that is already on the frontier curve, assuming current resources are being efficiently used in other programs. Since the PPF represents all possible efficient combinations of two goods (in this case, production of solar and wind power vs. all other programs), the intention to build more production facilities for solar and wind power without cutting other programs means that the politician is trying to maintain an allocatively efficient point on the PPF. However, if the resources are truly being used efficiently elsewhere, then increasing production of solar and wind power would mean having to reallocate resources, potentially increasing the opportunity cost and causing a movement along the PPF. This change must come at the expense of some other production due to the law of increasing opportunity cost, as resources are transferred from the most efficient use to less efficient uses for the production of additional solar and wind power.
Ray’s Satellite Emporium wishes to determine the optimal order size for its best-selling satellite dish (Model TS111). Ray has estimated the monthly demand for this model to be 230 units. This model costs Ray $396 to purchase from his supplier. His annual cost to carry inventory is 10% and he estimates that orders cost $38 to process. If Ray used an order quantity of 2000 instead of the optimal order quantity, how much money would he be wasting each year?
Answers
Answer:
It waster $74,941.2 per year
Explanation:
The procedure is as follow:
We calcualte the Economic order QuantityThen we calculatethe cost for EOQ and current order sizecompare to know the loss for inefficiency in inventory1.- EOQ
[tex]Q_{opt} = \sqrt{\frac{2DS}{H}}[/tex]
D = annual demand 230 units x 12 month = 2,760
S= setup cost = ordering cost = 38
H= Holding Cost= 10% of unit cost 39.60
[tex]Q_{opt} = \sqrt{\frac{2*2760*38}{39.6}}[/tex]
EOQ = 72.78028371 = 73
2.- Calculate Cost:
EOQ cost:
orders 2,760 / 73 = 37.80 = 38 order x $38 each = $1,444
holding cost: 73 x 39.6 = $2,890.8
Total: 1,444 + 2,890.8 = 4,334.8
Current Cost:
orders: 2,760 / 2,000 = 1.* = 2 order per year x $38 each = $76
holding cost: 2,000 x 39.6 = 79.200
Total 79,200 + 76 = 79,276
3.- Difference:
79,276 - 4,334.8 = 74,941.2
ndicate in which part of the statement of cash flows each item would appear: operating activities, investing activities, or financing activities. (a) select a part of the statement of cash flows Cash received from customers. (b) select a part of the statement of cash flows Cash paid to stockholders (dividends). (c) select a part of the statement of cash flows Cash received from issuing new common stock. (d) select a part of the statement of cash flows Cash paid to suppliers. (e) select a part of the statement of cash flows Cash paid to purchase a new office building.
Answers
Answer:
(a) Cash received from customers = Cash flow from operating activities as this is the regular transaction of every business.
(b) Cash paid to stockholders = Cash flow from financing activities as this is the payment for any investment made by shareholders, in return when the shares are matured or treasury stock is purchased then, this is financing activity.
(c) Cash received from issuing new common stock = Cash flow from financing activity, as this will generate funds for the company, therefore it is a financing activity.
(d) Cash paid to suppliers = Cash flow from operating activities, this a regular payment in exchange of goods purchased, cash outflow.
(e) Cash paid to purchase a new office building = Cash outflow from investing activity, as this is an investment capital in nature, and will provide in return capital base or other income in form of rent.
Big Sky Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Big Sky Sports is owned and operated by Joe Flannery, a well-known sports enthusiast and hunter. Joe’s wife, Pam, owns and operates Glacier Boutique, a women’s clothing store. Joe and Pam have established a trust fund to finance their children’s college education. The trust fund is maintained by Kalispell State Bank in the name of the children, Trey and Brooke.
a. For each of the following transactions, identify which of the entities listed should record the transaction in its records:
Glacier Boutique
Kalispell State Bank
Big Sky Sports
None of the above
1. Pam deposited a $2,000 personal check in the trust fund at Kalispell State Bank.
2. Pam purchased two dozen spring dresses from a Spokane designer for a special spring sale.
3. Joe paid a breeder’s fee for an English Springer Spaniel to be used as a hunting guide dog.
4. Pam authorized the trust fund to purchase mutual fund shares.
5. Joe paid a local doctor for his annual physical, which was required by the workmen’s compensation insurance policy carried by Big Sky Sports.
6. Received a cash advance from customers for a guided hunting trip.
7. Pam paid her dues to the YWCA.
8. Pam donated several dresses from inventory for a local charity auction for the benefit of a women’s abuse shelter.
9. Joe paid for dinner and a movie to celebrate their thirtieth wedding anniversary.
10. Joe paid for an advertisement in a hunters’ magazine.
b. What is a business transaction?
Answers
Answer:
(a)
1. Kalispell State Bank
2. Glacier Boutique
3. Big Sky Sports
4. Kalispell State Bank
5. Big Sky Sports
6. Big Sky Sports
7. None of the above
8. Glacier Boutique
9. None of the above
10. Big Sky Sports
(b) Business transactions refers to the transactions that are related to only business, such as purchase of land, machinery, goods for business purposes. Any type of personal transaction is not included in business transaction.
The entities involved in each transaction.
Explanation:a. Glacier Boutique: 1. Pam deposited a $2,000 personal check in the trust fund at Kalispell State Bank. 2. Pam purchased two dozen spring dresses from a Spokane designer for a special spring sale. 3. Pam authorized the trust fund to purchase mutual fund shares. 7. Pam paid her dues to the YWCA. 8. Pam donated several dresses from inventory for a local charity auction for the benefit of a women’s abuse shelter. 10. Joe paid for an advertisement in a hunters’ magazine.
Kalispell State Bank: 1. Pam deposited a $2,000 personal check in the trust fund at Kalispell State Bank.
Big Sky Sports: 3. Joe paid a breeder’s fee for an English Springer Spaniel to be used as a hunting guide dog. 5. Joe paid a local doctor for his annual physical, which was required by the workmen’s compensation insurance policy carried by Big Sky Sports. 6. Received a cash advance from customers for a guided hunting trip. 10. Joe paid for an advertisement in a hunters’ magazine.
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Taser Industries must decide whether to make or buy some of its components. The costs of producing 175,000 battery packs for its product are as follows: Direct Materials $15,000 Direct Labor $5,000 Variable overhead $6,000 Fixed overhead $9,000 The company has an opportunity to purchase the battery packs for $0.18 per unit, which would eliminate all variable costs, and $2,000 of fixed costs. Based on your analysis, what is the net income increase or decrease if the company purchases the battery packs
Answers
Answer:
It is cheaper to produce in-house. Cost savings= $3500
Explanation:
We need to find whether it is better to produce in-house or to purchase to a supplier.
Q= 175000
Produce in house:
Direct Materials $15,000
Direct Labor $5,000
Variable overhead $6,000
Fixed overhead $9,000
Total cost= $35000
Outsource:
Purchase Cost= 175000q*$0.18= $31500
Fixed Cost= (9000-2000)= $7000
Total cost=$38500
It is cheaper to produce in-house. Cost savings= $3500
Gia, Inc., has sales of $679,000, costs of $341,000, depreciation expense of $85,000, interest expense of $52,500, and a tax rate of 22 percent. (Do not round intermediate calculations.) What is the net income for the firm? Suppose the company paid out $40,500 in cash dividends. What is the addition to retained earnings?
Answers
Answer:
Net Income $156,390
Addition to Retained Earnings $115,890
Explanation:
Income Statement
Sales $679,000
Cost of goods sold -$341,000
Depreciation Expenses -$85,000
Gross Profit $253,000
Interest Expenses -$52,500
Net Income BEFORE Taxes $200,500
Tax RATE 22% -$44,110
Net Income $156,390
Dividens -$40,500
Retained Earnings $ 115,890
Final answer:
The net income for Gia, Inc. is $156,390 after accounting for all expenses and taxes. The addition to retained earnings is $115,890 after paying out dividends.
Explanation:
Calculating Net Income and Addition to Retained Earnings
To calculate the net income for Gia, Inc., we need to consider all relevant income and expenses. We start with the sales and subtract costs, depreciation expense, and interest expense. Afterwards, we calculate the taxes owed and subtract that from the pre-tax income. Here's the breakdown:
Sales: $679,000Costs: -$341,000Depreciation Expense: -$85,000Interest Expense: -$52,500Pre-Tax Income: $200,500Tax (22%): -$44,110Net Income: $156,390For the addition to retained earnings, we start with the net income and subtract the dividends paid out to shareholders:
Net Income: $156,390Dividends Paid: -$40,500Addition to Retained Earnings: $115,890In using the net present value method, only projects with a zero or positive net present value are acceptable because:
a. the return from these projects equals or exceeds the cost of capital
b. a positive net present value on a particular project guarantees company profitability
c. the company will be able to pay the necessary payments on any loans secured to finance the project
d. Both a and b are correc
Answers
Answer:
Option A
Explanation:
When you use a net present value method you are discounting the estimated cash flows of your project applying an interest rate that is related to your cost of capital. So, if your projects discounted cash flows are greater than zero it means that your project profitability is greater than your alterative project.
Projects with a zero or positive net present value are acceptable because the return from these projects equals or exceeds the cost of capital
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Net present value is a capital budgeting method.
Capital budgeting methods are used to determine the profitability of a project that is about to be undertaken
Only projects with a positive Net Present Value should be accepted. A project with a negative Net Present Value should not be chosen because it isn't profitable. When choosing between positive Net Present Value projects, choose the project with the highest Net Present Value first because it is the most profitable.
Projects with zero Net Present Value, earn just what it costs to undertake the project
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Kangaroo Autos is offering free credit on a new $10,000 car. You pay $1,000 down and then $300 a month for the next 30 months. Turtle Motors next door does not offer free credit but will give you $1,000 off the list price. a. If the rate of interest is 0.83% a month, calculate the present value of the payments to Kangaroo Autos.
Answers
Answer:
8,938.0168
Explanation:
Kangaroo Autos is offering free credit on a new $10,000 car. You pay $1,000 down and then $300 a month for the next 30 months. Turtle Motors next door does not offer free credit but will give you $1,000 off the list price. If the rate of interest is 0.83% a month, the present value of the payments to Kangaroo Autos is 8,938.0168.
The present value of the payments to Kangaroo Autos is approximately $8,333.63.
To calculate the present value of the payments to Kangaroo Autos, we can use the formula for the present value of an annuity:
[tex]PV=\frac{PMT×(1−(1+r) −n )}{r}[/tex]
Where:
PMT = Payment per period ($300)
r = Interest rate per period (0.83% or 0.0083)
n = Number of periods (30 months)
Plugging in these values:
[tex]PV= \frac{300×(1−(1+0.0083) −30 ) }{0.0083} ≈$8,333.63[/tex]
The present value of the payments to Kangaroo Autos is approximately $8,333.63. This is the equivalent lump sum that would need to be invested now to cover the series of future payments at an interest rate of 0.83% per month.
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Serena Corporation uses estimated manufacturing overhead costs of $880,600 and estimated direct labor hours of 200,000 in establishing manufacturing overhead rates. Allocated manufacturing overhead was $1,012,100 and actual manufacturing overhead was $970,500. What were the number of actual direct hours worked? (Round intermediary calculations to the nearest cent and the final answer to the nearest dollar.)
Answers
Answer:
the actual hours were 229,866
Explanation:
[tex]\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate[/tex]
the predetermined overhead rate will be the quotient between the expected overhead and the expected value of the cost driver.
880,600 / 200,000 = 4.403
If we allocated 1,012,100
then actual hours x 4.403 = 1,012,100
actual hours = 1,012,100 / 4.403 = 229.866,000
the actual hours were 229,866
Answer:
The number of actual direct hours worked is $229,866 hours
Explanation:
In this question, first, we have to compute the predetermined overhead rate which is shown below:
Predetermined overhead rate = (Estimated manufacturing overhead costs) ÷ (Estimated direct labor hours)
= $880,600 ÷ $200,000
= $4.403
Now the number of actual direct hours worked equals to
= (Allocated manufacturing overhead) ÷ (Predetermined overhead rate)
= ($1,012,100) ÷ ($4.403)
= $229,866 hours
In the ABC partnership (to which Daniel seeks admittance), the capital balances of Albert, Bert, and Connell, who share income in the ratio of 5:3:2 are:
Albert 500000
Bert 300000
Connell 200000
Based on the preceding information, what amount of goodwill will be recorded if Daniel invests $450,000 for a one-third interest?
A. $0
B. $10,000
C. $50,000
D. $100,000
Answers
Answer: Option (c) is correct.
Explanation:
Given that,
Income sharing ratio = 5:3:2
Albert's capital = $500,000
Bert's capital = $300,000
Connell's capital = $200,000
If Daniel invests $450,000 for 1/3 rd interest then,
Total capital = $500,000 + $300,000 + $200,000
= $1,000,000
Therefore, total capital of the partnership will be;
= [tex]1,000,000\times\frac{3}{2}[/tex]
= $1,500,000
So,
Share of Daniel will be = $1,500,000 – $1,000,000
= $500,000
Hence,
Value of Goodwill = Share of Daniel - Amount invested by Daniel
= $500,000 - $450,000
= $50,000
Opportunity cost is best defined as: A. the monetary price of any productive resource. B. the amount of labor that must be used to produce one unit of any product. C. the ratio of the prices of imported goods to the prices of exported goods. D. the amount of one product that must be given up to produce one more unit of another product.
Answers
Answer:
D. The amount of one product that must be given up to produce one more unit of another product.
Explanation:
Opportunity cost is defined as the potential benefits that you would recieve if you choose one option over another. This is an economic term that can easily be applied in our day to day lives: Ex. When you choose to study over work, the opportunity cost is represented by the money you could earn as payment for your work.
In business, companies must decide whether they produce a wide range of products or services or if they focus their resources in producing those products in which they are more efficient and would represent higher earnings.
The opportunity cost is defined as the amount of one product that must be given up to produce one more unit of another product.
What does the opportunity cost?The opportunity cost is defined as the cost of the next best alternatives, which means the amount of one product must be given up to produce one more unit of another product,
Giving up one opportunity and taking another is done to get more benefits among the other alternative.
Example:
Roman is a manufacturer of garments, here he has two choices, either to manufacture jeans with a cost of 150 per jeans or to manufacture trousers with the cost of 140 per trousers.
Here, the difference between the cost of jeans and trousers is the opportunity cost for him.
Therefore, Option D is correct.
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n May 1, 2009 Giltus Advertising Company received $1,500 from Julie Bee for advertising services to be completed April 30, 2010. The Cash receipt was recorded as unearned fees and at December 31, 2009, $1,000 of the fees had been earned. The adjusting entry on December 31 Year 1 should include:Select one:a. A debit to Unearned Fees for $500.b. A credit to Unearned Fees for $500.c. A credit to Earned Fees for $1,000.d. A debit to Earned Fees for $1,000.e. A debit to Earned Fees for $500.
Answers
Answer:
c. A credit to Earned Fees for $1,000.
Explanation:
As for the information provided, we know
Unearned income is an income account, and therefore, will be credited at the time of recording.
Further, it is told that as on 31 December, 2009 out of the total unearned income of $1,500, $1,000 is earned.
Since it is earned it has to be accounted in current year, for this earned income will be credited and unearned income will be reversed for the amount of earned income that is for $1,000.
he Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales $ 1,107,000 Selling price per pair of skis $ 410 Variable selling expense per pair of skis $ 45 Variable administrative expense per pair of skis $ 17 Total fixed selling expense $ 155,000 Total fixed administrative expense $ 110,000 Beginning merchandise inventory $ 70,000 Ending merchandise inventory $ 100,000 Merchandise purchases $ 280,000 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit?
Answers
Answer:
Instructions are listed below
Explanation:
1) The general structure of an income statement proceeds as follow:
Revenue/Sales (+)
Cost of Goods Sold (COGS) (-)
=Gross Profit
Marketing, Advertising, and Promotion Expenses (-)
General and Administrative (G&A) Expenses (-)
=EBITDA
Depreciation & Amortization Expense (-)
=Operating Income or EBIT
Interest (-)
Other Expenses (-)
=EBT (Pre-Tax Income)
Income Taxes (-)
=Net Income
In this exercise:
Revenues= 1107000
COGS= Beginnig inventory + purchase - ending inventory= 250000
Gross profit= $857000
Administrative expense= $17 *2700q+110000= 155900
Selling expense= $155,000 + 45*2700q= 276500
EBITDA= 424600
2)A Contribution Margin Income Statement is a special format of the income statement that segregates the variable and fixed expenses involved in running a business. It shows the revenue generated after deducting all variable and fixed expenses separately.
Sales= 1107000
Variable costs:
Cost of goods sold= 250000
Variable Selling expense= $45*2700= 121500
Variable administration expense= 17*2700= 45900
Total variable costs= 417400
Contribution Margin= 689600
Fixed costs:
Selling expense= 155000
administration expense= 110000
Total fixed cost= 265000
Net profit= 424600
3) Unitary contribution margin= contribution margin/Q= 689600/2700= $255.41
Beginning three months from now, you want to be able to withdraw $3,400 each quarter from your bank account to cover college expenses over the next four years. If the account pays .56 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years? (
Answers
To meet college expenses over the next four years with quarterly withdrawals of $3,400 and a 0.56% interest rate, you would need approximately $302,670.60 in your bank account today.
Explanation:Retirement Account CalculationTo solve for the amount needed today to meet the college expense needs over the next four years, we will use the formula for the present value of an annuity due to the quarterly withdrawals. The formula is PV = PMT × ((1 - (1 + r)^{-n}) / r)× (1+r), where PV is the present value (initial amount needed), PMT is the quarterly withdrawal amount, r is the quarterly interest rate, and n is the total number of withdrawals.
In this scenario, PMT is $3,400, r is 0.56% or 0.0056 in decimal form, and n is 4 years times 4 quarters/year, which equals 16 quarters. Using the formula, we calculate:
Therefore, you would need approximately $302,670.60 in your bank account today to meet your expense needs over the next four years with a quarterly interest rate of 0.56 percent.
Which of the following statements is true of standardized promotions?
a. They convey messages according to the country-of-origin effect.
b. They reduce the costs incurred by companies for promotional efforts.
c. They are proven to be more effective than localized promotions in all countries.
d. They display different content through similar modes of promotion.
Answers
Answer:
The correct answer is B: They reduce the costs incurred by companies for promotional efforts.
Explanation:
Global standardization in marketing is a standardized marketing strategy that can be used globally. This type of marketing strategy conforms to work across different cultures and countries to sell a product. The company uses standard brands, formulations, packaging, positioning and distribution in its global markets. Products that have virtually universal demand in all countries and cultures make standardized marketing effective.
Standardized marketing for global companies typically offers significant cost benefits. If the same message works universally, you don't have to spend money to develop customized marketing messages. A strong brand can have the same effect in different areas around the world. What makes a strong presence in one country, can have the same effect in other countries.
The true statement about standardized promotions is that they reduce the costs incurred by companies for promotional efforts. They achieve economies of scale but may not be effective in all markets due to cultural differences and are not tailored to the country of origin.
Standardized promotions involve using the same promotional strategy and materials across different countries and cultures. This approach aims to achieve cost efficiency by exploiting economies of scale in production and distribution of promotional materials. However, they are not necessarily effective in all countries due to cultural differences, and in some cases, the content may be misunderstood or less appealing to the local audience.
Furthermore, such promotions do not convey messages according to the country-of-origin effect, as they do not typically tailor the message to the local culture or market specifics. Standardized promotions are not proven to be more effective than localized promotions in all countries; effectiveness can vary greatly depending on a range of factors, including cultural nuances and consumer behavior. Lastly, standardized promotions do not inherently display different content through similar modes of promotion; instead, they usually offer the same content across different markets.
Kanban is a term used to indicate some type of Visual Signal in the replenishment process. Which statement best describes the use of Kanban in reducing inventories in a Just-in-Time type of Operation? A. An operator asks the next station's operator to help him fix his machine. B. A supervisor signals to several work centers that the production rate should be changed. C. A "supplier" work center signals the downstream workstation that a batch has been completed. D. A "customer" work center signals to the "supplier" workstation that more parts are needed. E. A supervisor tells the operators to stay busy and start producing parts for next month.
Answers
Answer:
D. A "customer" work center signals to the "supplier" workstation that more parts are needed.
Explanation:
The Kanban system or procedure is based in signals that travel with the product all over its production process from the start up to the final client.
When a "customer work center" takes away some material from the warehouse, the "kanban" or signal travels with the material. So this is a "pull" system guided by the demand.
The signal (kanban) is how the client let the supply work center know that a new material is needed in the warehouse.
For all of this, de correct answer is D.A "customer" work center signals to the "supplier" workstation that more parts are needed.
Final answer:
Kanban is used as a visual signal to manage the replenishment process and reduce inventories in a Just-in-Time type of operation which is Option D. The customer work center signals the supplier workstation when more parts are needed.
Explanation:
In a Just-in-Time type of operation, Kanban is used as a visual signal to manage the replenishment process and reduce inventories. The best description of the use of Kanban in this context is option D: A 'customer' work center signals to the 'supplier' workstation that more parts are needed.
Kanban operates on the principle of pull-based production, where each workstation only produces parts when there is a demand for them. The 'customer' work center initiates a Kanban signal to the 'supplier' workstation when it requires more parts. This ensures that inventory levels are kept low and production is aligned with demand.
For example, in a car manufacturing plant, if the assembly line requires more tires, the 'customer' work center would send a Kanban signal to the 'supplier' workstation responsible for producing tires.
Consider the following production possibilities frontier model for an economy that produces only two goods: barley and tablets. Which of the following is true regarding this economic model? The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. This PPF is not an economic model. In order to construct such a model, an economist would need real life data regarding countries that only produce two goods. The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts.
Answers
Answer:
The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts.
Explanation:
The purpose of economic models is not exactly to portray complex reality, but to produce insights into how it works. Creating a model with two countries that produce thousands of products would be methodologically unfeasible. Economists therefore adopt simplifications to explain concepts and create insights into how the real economy works.
The Production Possibilities Frontier (PPF) is a simplified economic model that demonstrates key economic principles, such as choice, opportunity cost, and efficiency. Despite considering only two goods, it is useful in depicting scenarios in real-world economies and understanding economic growth.
Explanation:The statement that an economic model such as the
Production Possibilities Frontier
(PPF) is generally useless because it only considers two goods is incorrect. The PPF is an economic model, and it indeed uses a simplifying assumption by considering only two goods. This is intended to help illustrate key economic concepts cleanly, not to fully represent complex, real-world economies. The PPF model maps out various combinations of two goods that a society could potentially produce, assuming it uses its resources to maximum efficiency. This tool helps to depict scenarios of scarcity, choice, and opportunity cost in economic planning. Additionally, society's choice along the PPF reflects its preference mix of the goods, which is an indication of
allocative efficiency
. The economic growth such as increase in resources and improvement in technology shifts the PPF outwards, allowing more production. Thus, even with its simplifications, the PPF model holds important value in economic studies.
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In the JK partnership, Jacob's capital is $140,000, and Katy's is $40,000. They share income in a 3:2 ratio, respectively. They decide to admit Erin to the partnership. Each of the following questions is independent of the others.
Refer to the information provided above. Erin invests $52,000 for a one-fifth interest. What amount of goodwill will be recorded?
A. $7,000
B. $28,000
C. $50,000
D. $80,000
Answers
Answer:
The correct option is (B)
Explanation:
Given:
Existing partner's total capital is $180,000 (140,000 + 40,000)
New partner, Erin's contribution is $52,000
So new paid in capital is $232,000 (180,000 + 52,000)
Required capital = [tex]\frac{Investment\ by\ Erin}{interest}[/tex]
Interest in % is 20% [tex]\left (\left ( \frac{1}{5} \right )\times 100 \right )[/tex]
Required capital = [tex]\frac{52,000}{0.2}[/tex]
= $260,000
Goodwill = Required capital - paid in capital
= 260,000 - 232,000
=$28,000
So, amount of goodwill is $28,000.
Frightproof Commuter Airlines is considering adding a new flight to its current schedule from Metro to Hicksville. This route has the following prices and costs. Selling price per passenger per flight $ 70 Variable cost per passenger per flight $ 20 Fixed cost per flight $ 4,400 Income tax rate 30 % Required: a. Compute Frightproof's break-even point in number of passengers per flight. b. How many passengers per flight must Frightproof have to earn $1,750 per flight after taxes?
Answers
Answer:
Instructions are listed below
Explanation:
Giving the following information:
Selling price per passenger per flight $ 70
Variable cost per passenger per flight $ 20
Fixed cost per flight $ 4,400
Income tax rate of 30 %
1) Break-even point= fixed costs/ controbution margin
Break-even point= 4400/(70-20)= 88 passengers
2) Break-even points= {[Fixed costs + [net profit/(1-t)]}/contribution margin
Break-even points= [4400 + (1750/0.70)]/50= 138 passengers
For the fiscal year ended December 31, 2016, Alpha Company had credits sales that amounted to $300,000. Historically, 2.5% of credit sales are uncollectible. Alpha Company uses the percentage of sales method to determine its uncollectible accounts. The balance before any end of the year adjusting entry in the Allowance for Uncollectable Accounts is a credit value of $1,575. Use this information to prepare the adjusting General Journal entry (without explanation) for the fiscal year.
Answers
Answer:
uncollectible accounts expense 5925
Allowance uncollectible accounts 5925
Explanation:
credit sales 300000
Uncollectible 2,50%
Uncollectible account 7500
Uncollectible account credit 1575
Adjustment 5925
uncollectible accounts expense 5925
Allowance uncollectible accounts 5925
Bill, a local inventor, developed a diet pill that he believes will solve the obesity problem in the United States. Bill wants to create a new company, 50% owned by Bill and 50% owned by a major drug company. Although he believes the pills are safe, Bill is concerned about liability if someone becomes sick or dies. The best form of business organization for the new company is
Answers
Answer:
Corporation
Explanation:
The corporations have a limited liability. They answer until they investmnet amount. While a partnership will have unlimited liability. A corporation on which Bill has 50% of the shares and 50% are own by the major drug company will provide the desired capital structure and limited liability
A corn futures contract closed yesterday at a price of $2.40 a bushel. The maximum daily price range is $0.40 and the daily price limit is $0.20. Therefore, the: Question 1 options: a) highest closing price for today is $2.80 a bushel. b) most the price can fluctuate today is $0.20 a bushel. c) minimum change in the price today is $0.20 a bushel. d) lowest closing price for today is $2.20 a bushel.
Answers
Answer:
D -lowest closing price for today is $2.20 a bushel.
Explanation:
Range refers to the difference between the highest and lowest value of any variable for a given time period. The daily price limit refers to the maximum increase in price or the price decline that is allowed for a futures contract in one given trading session relative to the previous day's settlement price.
With this in mind, the right option is
D -lowest closing price for today is $2.20 a bushel.
This is worked out as $2.40 - $0.20 = $2.20
Wizard Co. purchased two machines for $250,000 each on January 2, 2005. The machines were put into use immediately. Machine A has a useful life of 5 years and can only be used in one research project. Machine B will be used for 2 years on a research and development project and then used by the production division for an additional 8 years. Wizard uses the straight-line method of depreciation. What amount should Wizard include in 2005 research and development expense?
Answers
Answer:
75,000
Explanation:
The straight-linedepreciation is calculate by dividing the acquisition value over the useful life
Machine A useful life is for 5 years
250,000 / 5 years = 50,000 per year
Machine B useful life is:
2 years in development project and then 8 years in a production division
total useful life for 10 years
250,000/ 10 years = 25,000
Total development expense:
machine A depreciation 50,000 + machine B depreciation 25,000 = 75,000
development expense 75,000
acc depreciation machine A 50,000
acc depreciation machine B 25,000
Over the last century, U.S. real GDP per person grew at a rate of about...
a. 2 percent per year, so that it is now 2 times as high as it was a century ago.
b. 4 percent per year, so that it is now 8 times as high as it was a century ago.
c. 2 percent per year, so that it is now 8 times as high as it was a century ago.
d. 4 percent per year, so that it is now 2 times as high as it was a century ago.
Answers
S&L Financial buys and sells securities that it typically classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $715,000 and sold the bonds on January 3, 2019, for $717,500. At December 31, the bonds had a fair value of $713,500. When it purchased the Coca-Cola bonds, S&L Financial decided to elect the fair value option for this investment. What pretax amounts did S&L include in its 2018 and 2019 net income as a result of this investment (ignoring interest)?
Answers
Answer:
2018 loss for 1,500
2019 gain for 4,000
Explanation:
purchase at 715,000
December 31th 713,500
adjusting entry december 31th
loss on investment 1,500 debit
marketable securities 1,500 credit
january 3rd, 2019
cash 717,500 debit
gain on investemnt 4,000 credit
martetable securities 713,500 credit
to record gain on investment
If the CPI was 95 in 1955 and is 475 today, then $100 today purchases the same amount of goods and services as...
a. $20.00 purchased in 1955.
b. $4.75 purchased in 1955.
c. $500 purchased in 1955.
d. $95.00 purchased in 1955.
Answers
Answer:
The correct answer is option a.
Explanation:
The CPI or consumer price index is a tool to measure inflation in the economy. It includes a basket of goods and services generally consumed by households. Changes in the price of these goods and services are calculated to measure the inflation rate.
In the year 1955, the CPI was 95.
In the current year, the CPI is 475.
This means that today $100 will be able to purchase
= [tex]\$ 100 \ \times\ \frac{95}{475}[/tex]
= $20
$100 in current year will be able to purchase the same amount of goods and services that $20 purchased in the year 1995.
The CPI is a measure of the average change over time in prices. $100 today would purchase the same amount as $4.21 in 1955.
Explanation:The CPI (Consumer Price Index) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Given that the CPI was 95 in 1955 and is 475 today, we can calculate the percentage increase in the CPI over this time period: (475 - 95) / 95 = 400 / 95 = 4.21.
This means that prices have increased by 4.21 times since 1955. So, $100 today would purchase the same amount of goods and services as $4.21 purchased in 1955.
Four analysts cover the stock of Fluorine Chemical. One forecasts a 6% return for the coming year. The second expects the return to be negative 6%. The third predicts a return of 8%. The fourth expects a 2% return in the coming year. You are relatively confident that the return will be positive but not large, so you arbitrarily assign probabilities of being correct of 35 % comma 8 %, 17 %, and 40%, respectively, to the analysts' forecasts. Given these probabilities, what is Fluorine Chemicals expected return for the coming year
Answers
Answer:
Expected return = 3.78%
Explanation:
Given:
Expected returns Probabilities of being correct
6% 35%
- 6% 8%
8% 17%
2% 40%
Now,
Expected return is calculated as:
= Summation of [ Return × Probability ]
therefore,
Expected return
= ( 0.06 × 0.35 ) + ( -0.06 × 0.08 ) + ( 0.08 × 0.17 ) + ( 0.02 × 0.40 )
= 0.021 - 0.0048 + 0.0136 + 0.008
= 0.0378
or
= 0.0378 × 100%
or
Expected return = 3.78%
The expected return of Fluorine Chemicals for the coming year, considering the given probabilities and forecasts, is 3.78%
Explanation:To calculate the expected return of Fluorine Chemicals, you would need to multiply each analyst's forecast by their respective probability of being correct, and then add these results together. The formula to achieve this is as follows: (Analyst 1's forecast * Analyst 1's probability) + (Analyst 2's forecast * Analyst 2's probability) + (Analyst 3's forecast * Analyst 3's probability) + (Analyst 4's forecast * Analyst 4's probability). Plugging in the given values gives: (6*0.35) + (-6*0.08) + (8*0.17) + (2*0.40) = 2.1 - 0.48 + 1.36 + 0.8 =
3.78%
Therefore, given these probabilities, the expected return for Fluorine Chemicals for the coming year is 3.78%
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Before the year began, Butler Manufacturing estimated that manufacturing overhead for the year would be $176,400 and that 13,800 direct labor hours would be worked. Actual results for the year included the following: Actual manufacturing overhead cost $185,000 Actual direct labor hours 14,600 The predetermined manufacturing overhead rate per direct labor hour is closest to
Answers
Answer:
manufacturing overhead rate =$12.78
Explanation:
Giving the following information:
Butler Manufacturing estimated that:
Manufacturing overhead $176,400
Direct labor hour 13,800.
Actual results for the year:
The actual manufacturing overhead costs $185,000.
Actual direct labor hours 14,600.
We need to calculate the predetermined manufacturing overhead rate per direct hour
manufacturing overhead rate = 176400/13800hours= $12.78