Answer:
Option A is correct which states that".There is no such thing, in IASB standards, as a "contingent asset"
A company has some bottling equipment which cost $8.2 million, has a net book value of $3.8 million, estimated future cash flows of $3.55 million, and a fair value of $2.95 million. How much is the asset impairment loss
Answer:
The impairment loss of assets amounts to $0.85 million
Explanation:
Asset impairment incur when there is decrease or fall in the fair value of the asset below the recorded cost or net book value of the assets. It is the difference among the assets carrying value and fair value.
The impairment loss of assets is computed as:
Impairment loss of assets = Net book value of asset - Fair value of the asset
where
Net book value of asset amounts to $3.8 million
Fair value of the asset amounts to $2.95 million
So, putting the values above:
Impairment loss of assets = $3.8 million - $2.95 million
Impairment loss of assets = $0.85 million
Johanna Springer, who works as a sales executive at Pascal's Bank, is upset at the way her manager, Emma Womack, always calls her in for one-on-one meetings to discuss her underperformance. Though Springer makes a higher number of sales calls and works longer hours than last year, her sales figures are still low. She knows that the main reason behind her underperformance is the recent economic meltdown in the country. However, her manager feels that Springer's underperformance is the result of her laid-back attitude and has nothing to do with external factors. In this situation, Womack's behavior is characterized by a(n) ____.
A. anchoring bias
B. contrast effect
C. fundamental attribution error
D. self-fulfilling prophecy
E. Pygmalion effect
Answer:
The correct answer is letter "C": fundamental attribution error.
Explanation:
The fundamental attribution error is a judgment individuals make about others in which they focus more on the others' inner characteristics than external situations at the moment of qualifying their behavior. The judgment is biased in such a case since it does not consider all the possible variables that can affect people's actions.
This judgment values more the type of person an individual could be rather than the environmental events that can influence on that individual.
An engineer bought a $1000 bond of an American airline for $875 just after an interest payment had been made. The bond paid a 6% coupon interest rate semiannually. What nominal rate of return did the engineer receive from the bond if he held it 13.5 years until its maturity
Answer:
Number of coupon payments = 13.5*2= 27
Coupon = 6%*1000/2= 30
Let rate be r
Present value of all future payments = $87
875 = 30*(1-1/(1+r)^27)/r + 1000/(1+r)^27
R= 3.74%
Nominal rate = 3.74%*2 = 7.49%
10. Dixon Construction Company was awarded a contract to construct an interchange at the junction of U.S. 94 and Highway 30 at a total contract price of $15,000,000. The estimated total costs to complete the project were $12,000,000. (a) Make the entry to record construction costs of $7,200,000, on construction in process to date. (b) Make the entry to record progress billings of $4,000,000. (c) Make the entry to recognize the profit that can be recognized to date, on a percentage-of- completion basis.
Answer:
Journal Entry
Explanation:
Books of (Dixon Construction Company)
Journal Entry
Date Account Title and Explanation Debit Credit
A. Construction in process A/c Dr. $7,200,000
Cash / Accounts payable A/c $7,200,000
(Being construction cost paid)
B. Accounts receivables A/c Dr. $4,000,000
Billing in progress A/c $4,000,000
(Being record of billing in progress)
C. Construction expenses A/c Dr. $7,200,000
Construction in process A/c Dr. $1,800,000
Revenue from construction A/c $9,000,000
(Being income generate from contract)
Note:
Revenue from construction = Total contract(Construction in process / estimated total costs to complete)
Revenue from construction = $15,000,000($7,200,000 / $12,000,000)
Revenue from construction = $9,000,000
Construction in process = Revenue from construction - Construction expenses
Construction in process = $9,000,000 - $7,200,000
Construction in process = $1,800,000
The journal entries involved will record the construction costs, billings progress, and recognising of profits by debiting and crediting the appropriate accounts. The profit is recognised on a percentage-of-completion basis, which involves calculating the percentage completion first.
Explanation:The subject is related to accounting process and entries in construction companies. The question involves distinct steps:
(a) To record construction costs of $7,200,000 on construction in process to date, an entry should be made debiting 'Construction In Process' account and crediting 'Cash' or 'Accounts Payable' by $7,200,000.
(b) To record progress billings of $4,000,000, an entry should be made debiting 'Accounts Receivable' and crediting 'Billings on Construction in Process' by $4,000,000.
(c) To recognize the profit on a percentage-of-completion basis, calculate the percentage completion first which is current year costs of $7,200,000 divided by total estimated costs of $12,000,000, which equals 60%. Then, calculate the total revenue recognised to date, which is 60% of total contract price ($15,000,000), equals $9,000,000. The journal entry would be to debit 'Construction in process' and credit 'Sales Revenue' for $9,000,000, and then to credit 'Costs of goods sold' and debit 'Construction in process' for $7,200,000.
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Angela is now going to evaluate a new salt process delivery system and wants to know if the upper and lower control limits at 3 standard deviations for the new system will meet the upper and lower controls specifications noted above. The population standard deviation is ? = .07. The data (in percent) from the initial trial samples are:
Sample 1: 1.98 2.11 2.15 2.06
Sample 2: 1.99 2.0 2.08 1.99
Sample 3: 2.20 2.10 2.20 2.05
Sample 4: 2.18 2.01 2.23 1.98
Sample 5: 2.01 2.08 2.14 2.16
Provide your findings to Angela. Please show all work.
a.What are the advantages and disadvantages of Frito-Lay drivers stocking their customers' shelves?
b.Why is quality a critical function at Frito-Lay?
Complete Question:
Frito•Lay's Quality•Controlled Potato Chips Frito-Lay, the multi-billion-dollar snack food giant, produces billions of pounds of odic( every year at its downs of US. and Canadian plants. From the fanning of potatoes—I brida, Moral Carolina, and Michigan—b factory and to retail stores, the ingredients and final product of Lay's chips, for example, are respected at least 11 Ines: h the field, before tnbadhg at the plant, after washing and peeling, at the sizing station, at he fryer, after seasoning, when bagged (for weight), at carton filling, h the warehouse, and as they are placed on the store shelf by Frib-Lay personnel. Similar inspections take place for ib other famous products, including Cheetos, Fritz, Ruffles, and Tostibs. In addition to these employee inspections, the firm uses proprietary vision systems to look for defective potato clips. Chips are pulled off the high-speed line and checked twice if he visits system senses them to be to brown. lire company follows the very strict standards of the American Institute of Baling (AIB), standards that are much tougher than those of the US. Food and Drug Administration. Two warnourted AIB site visits per year keep Frito-Lay's plants cn their toes. Scores, consistently in the "excellent' range, are posted, and every employee knows exactly how the plant is doing. There are two key metrics in Frito-Lay's continuous improvement quality program: (1) total customer complaints (measured on acomplabb per million bag basis) and (2) horror daily statistical process control scores (far oil, moisture, seasoning, and salt content, for chip thickness, for fryer temperature, and for weight). In the Florida plant, Angela McCormack, who holds engineering and MBA degrees, oversees a 16-member quality assurance staff. They watch all aspects of quality, including trailing employees on the factory floor, monitoring automated processing eq.ibment, and developing and updating statistical process control (SPC) charts. The upper and lower control limits for one checkpoint, salt content in Lay's chips, are 2.22% and 1.98%, respectively. To see exactly how these limits are created using SPC, watch the vkleco that accompanies this case. Angela is now gonged b evaluate a new salt process delivery system and wants to Prow if the per and bv.er control limits at 3 standard deviations for the new system will meet the upper and lower control specifications noted above. the data (in percents) from the initial trial samples ae:
Sample 1:1.98, 2.11, 2.15, 206
Sample 2: 1.99, 2.0, 208, 1.99
Sample 3: 2.20, 2.10. 220, 205
Sample 4: 2.18, 2.01, 223, 1.98
Sample 5: 2.01, 2.08, 2.14, 216
Provide the report to Angela
Answer and explanation:
check the attached file for comprehensive step by step solution
The mean of each sample was calculated and then used to determine an overall mean, which was then utilized to compute upper and lower control limits. The standard deviation was incorporated into this calculation. The computed control limits were recommended for comparison with the system's specifications.
Explanation:To evaluate the new salt process delivery system, we will first calculate the mean of each sample, and then calculate the overall mean. When we have the overall mean, we can compute the upper and lower control limits.
Mean of Sample 1 = (1.98 + 2.11 + 2.15 + 2.06)/4 = 2.075Mean of Sample 2 = (1.99 + 2.0 + 2.08 + 1.99)/4 = 2.015Mean of Sample 3 = (2.20 + 2.10 + 2.20 + 2.05)/4 = 2.1375Mean of Sample 4 = (2.18 + 2.01 + 2.23 + 1.98)/4 = 2.10Mean of Sample 5 = (2.01 + 2.08 + 2.14 + 2.16)/4 = 2.0975The overall mean is then (2.075 + 2.015 + 2.1375 + 2.10 + 2.0975)/5 = 2.085
Using the formula for control limits, which is mean ± (3 × standard deviation), and given the standard deviation is 0.07, the upper control limit will be 2.085 + (3 × 0.07) = 2.295 and the lower control limit will be 2.085 - (3 × 0.07) = 1.875. Angela should compare these control limits with the system's specifications.
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Many factors determine how much debt a firm takes on. Chief among them ought to be the effect of the debt on the value of the firm. Does borrowing create value? If so, for whom? If not, then why do so many executives concern themselves with leverage?
Answer: Yes, borrowing creates value for equity shareholders. This is mainly as a result of tax benefits of interests paid on borrowings
Explanation:
Yes, borrowing does create value for the equity shareholders, this is mainly as a result of tax benefit of interests paid on borrowings.
If leverage causes changes, then it should lead to changes in either the discount rate of the firm(which is weighted-average cost of capital) or changes in the cash flows of the firm.
Leverage causes changes in both discount rate (WACC) and not on the cash flows to the firm. Since, WACC is known as the weighted average of cost of debt and cost of equity and since the cost of debt is usually less than the cost of equity, the WACC decreases with increase in borrowings, when the equity beta does not change. Furthermore, as the cash flows to firm is calculated before the interests paid on borrowings, the increased borrowings wont affect the Value of asset (FCFF) .
Cash flow is discounted at the rate that is consistent with the risk of those cash flow. At the cost of capital for the unlevered firm, pure businesses should be discounted. Financing flow needs to be discounted at the rate of return required by the provider of debts.
Answer:
Borrowing creates value for the firm. The use of borrowed funds can affect the firm positively or negatively, because of the higher level of risk, therefore it is imperative that the executives concern themselves.
Explanation:
The use of financial leverage can make or break the company as there are many risks involved, one being the repayment of the principal amount with interest, regardless of whether the firm made a profit or not by using those funds. Value is created by the firm if they use financial leverage as funds are used to pay for operations and generate an income, and, if successful – make a profit. “At an ideal level of financial leverage, a company’s return on equity increases because the use of leverage increases stock volatility, increasing its level of risk which in turn increases returns. If earnings before interest and taxes are greater than the cost of financial leverage than the increased risk of leverage will be worthwhile.” (Lumen Boundless Finance, 2020)
The liquidity (ability to pay for short term debts) and solvency (ability to pay for all debts) of a company is measured by the company’s use of leverage and its survival after that. This is why shareholders and management must check these ratios often and keep them at a positive position.
1. The monthly market shares of General Electric Company for 12 consecutive months follow. Develop three-month and four-month moving averages for this time series. Comparing the three-month and the four-month moving average, which one provide the better forecasts based on MSE? Explain your reasoning.
Answer:
MSE for 3-month MA = 0.0790
for 4-month, it is 0.066
Hence, 4-month MA is better.
Explanation:
In statistics, the mean squared error, MSEor mean squared deviation (MSD) of an estimator that is of a procedure for estimating an unobserved quantity, measures the average of the squares of the errors, that is, the average squared difference between the estimated values and the actual value.
This is used to ascertain the preferred or better forecast from 2 or more given parameters.
Kindly check the attachment for the step by step explaination of the MSE forecast.
Final answer:
The question involves calculating the three-month and four-month moving averages for General Electric Company's monthly market shares and determining which average provides better forecasts by comparing their Mean Square Errors.
Explanation:
The question involves applying moving averages, a statistical technique used extensively in time series analysis, to the monthly market shares of General Electric Company. To start, three-month and four-month moving averages will be calculated by taking the average of every three and four consecutive months respectively. This method smooths out short-term fluctuations and highlights longer-term trends or cycles. Calculating these moving averages and then comparing their Mean Square Error (MSE) will help in determining which moving average provides a better fit or more accurate forecast of the data. The MSE is calculated by taking the average of the squares of the errors, which are the differences between the actual values and the values predicted by the model. A lower MSE indicates a better fit to the data. Without the actual data provided in the question, specific calculations cannot be performed in this response.
In essence, if one aims to remove or reduce the impact of seasonal variations and better understand underlying trends in time series data, moving averages can be a powerful tool. The decision between using a three-month or four-month moving average would depend on which provides a lower MSE, indicating it is better at forecasting or smoothing the data while minimizing the error between the predicted and actual values.
Henry Crouch's law office has traditionally ordered ink refills 55 units at a time. The firm estimates that carrying cost is 40% of the $11 unit cost and that annual demand is about 235 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal? a) For what value of ordering cost would its action be optimal? Its action would be optimal given an ordering cost of $___________per order (round your response to two decimal places)
Answer:
Its action would be optimal given an ordering cost of $28.31 per order
Explanation:
According to the given data we have the following:
economic order quantity, EOQ= 55 units
annual demand, D=235
holding cost per one unit per year, H=40%×$11=$4.4
ordering cost, S=?
In order to calculate the ordering cost we would have to use the following formula:
EOQ=√(2×D×S)
(H)
Hence, S=(EOQ)∧2×H
2×D
S=(55)∧2×4.4
2×235
S=13,310
470
S=$28.31
Its action would be optimal given an ordering cost of $28.31 per order
Its action would be optimal given an ordering cost of $28.32 per order.
a. Ordering cost
First step is to calculate the carrying cost
Carrying cost= 11x40%
Carrying cost=4.4
Second step is to calculate the ordering cost
Ordering cost=Order unit^2(Carrying cost)/2(Annual demand)
Ordering cost=55^2(4.4)/2(235)
Ordering cost=13,310/470
Ordering cost=$28.32
b. If the true ordering cost turns out to be much less than your answer to part (a). The impact on the firm's ordering policy is to reduce the order quantity.
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Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $3,000. The division sales for the year were $1,047,000 and the variable costs were $860,000. The fixed costs of the division were $190,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be: Multiple Choice $187,000 decrease $130,000 decrease $187,000 increase $54,000 decrease $57,000 decrease
Assume that a bank receives a cash deposit of $9,000 from a customer. What is the immediate impact of this transaction on the money supply? Explain. Suppose that the reserve requirement is 10 percent and banks voluntarily keep an additional 10 percent in reserves. Calculate each of the following. The maximum amount by which this bank will increase its loans from the transaction in part (a) The maximum increase in the money supply that will be generated from the transaction in part (a) Assume that the government increases spending by $9,000, which is financed by a sale of bonds to the central bank. Indicate what will happen to the money supply. Explain what will happen to the money demand.
Answer:
the money multiplier = 1 / reserve ratio
in this case, the reserve ratio is 10% (required) + 10% (voluntary) = 20%, so the money multiplier = 1/20% = 5
What is the immediate impact of this transaction on the money supply?
None, since the money supply doesn't change. When a customer deposits money in a bank, the money does not increase, only its composition changes.The maximum amount by which this bank will increase its loans from the transaction in part (a)
the bank will be able to loan ⇒ total deposit x (1 - reserve ratio) = $9,000 x (1 - 20%) = $7,200The maximum increase in the money supply that will be generated from the transaction in part
since the banks started to "create" money by lending the money, the money supply will increase by ⇒ total deposit x (money multiplier - 1) = $9,000 x 4 = $36,000Assume that the government increases spending by $9,000, which is financed by a sale of bonds to the central bank. Indicate what will happen to the money supply.
The money supply will increase.Explain what will happen to the money demand.
The money demand will also increase because aggregate demand and income will increase. Aggregate demand will increase by ⇒ $9,000 x government multiplier. The government multiplier = 1 / MPS.When the money multiplier is = 1 / reserve ratio in this case, the reserve ratio is 10% (required) + 10% (voluntary) is = 20%, so the money multiplier = 1/20%=5
What is Money Supply?
None, since when the money supply doesn't switch. When a consumer deposits money in a bank, the money does not improve, only its formatting changes.
The greatest amount by which this bank will increase its loans from the transaction in part (a)
When the bank will be able to loan is ⇒ The total deposit x (1 - reserve ratio) = $9,000 x (1 - 20%) = $7,200
The greatest increase in the money supply that will be generated from the transaction in part
since the banks started to "complete" money by lending the money, the money supply will increase by ⇒ total deposit x (money multiplier - 1) = $9,000 x 4 = $36,000
Suppose that the government rise spending by $9,000, which is financed by a sale of bonds to the central bank. Also, The Foreshadow what will transpire to the money supply.
The money supply will grow. The money demand will also rise because aggregate demand and income will increase.
Aggregate demand will improve by ⇒ a $9,000 x government multiplier. The government multiplier = 1 / MPS.
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IDS false alarms cause ________. 1. companies to ignore IDS alerts 2. companies to install multiple IDSs using different methods 3. Both companies to ignore IDS alerts and companies to install multiple IDSs using different methods 4. Neither companies to ignore IDS alerts nor companies to install multiple IDSs using different methods
Answer:
The correct answer is letter (1): companies to ignore IDS alerts.
Explanation:
An Intrusion Detection System (IDS) is a software destined for the detection of unauthorized access in devices or a network. The systems administrator can manage the recognition of an intruder thanks to an alert that is activated when such a thing happens.
The problem comes when false IDS alarms are repeated constantly. At a certain point, the system administrator might ignore the IDS alert but it is recommended that every single alarm be analyzed for a real or false possible threat.
Intrusion Detection Systems (IDS) false alarms can make companies ignore alerts due to frequent non-threat alerts (alarm fatigue) or compel them to install multiple IDSs using varied methods to reduce the occurrence of false alarms.
Explanation:IDS (Intrusion Detection Systems) false alarms can often lead to 1. companies ignoring IDS alerts, and 2. companies installing multiple IDSs using different methods. This is because false alarms can cause alarm fatigue, where the frequent occurrence of false alerts leads to complacency, making companies less likely to respond to genuine threats. On the other hand, in attempts to reduce the number of false alarms, companies could use various detection methods and opt for multiple IDS systems.
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Below are a number of transactions that took place in Willie Corporation during the past year:
Indicate how each of them would be classified on a statement of cash flow by selecting the appropriate option from the dropdown provided under Activity and Cash inflow/Outflow. (If no option is suitable, select option "None".)
Options for Activity: Financing, Investing, None, or Operating
Options for Cash Inflow / Outflow: Cash Inflow, Cash Outflow, or None
ACTIVITY CASH INFLOW/OUTFLOW
A.) Common stock was sold for cash:
B. Equipment was sold for cash
C. A long term loan was made to a subsidiary
D. Interest was received on loan to subsidiary
E. Interest Payable, a curren liability, was reduced
F. A stock dividend was declared and issued on common stock
G. A building was acquired by issuing shares of common stock
H. Accrued Income Taxes, a current liability account, was reduced
I. Long term investments were sold
J. Cash dividends were declared and paid.
K. Preferred stock was sold for cash
L. Bonds were retired
M. Dividends were received on an investment
N. Equipment was purchased by giving a long term note to the seller
Answer:
A. Common stock was sold for cash: Financing
B. Equipment was sold for cash Investing
C. A long term loan was made to a subsidiary Investing
D. Interest was received on loan to subsidiary Investing
E. Interest Payable, a current liability, was reduced Operating
F. A stock dividend was declared and issued on common stock None
G. A building was acquired by issuing shares of common stock None
H. Accrued Income Taxes, a current liability account, was reduced Operating
I. Long term investments were sold Investing
J. Cash dividends were declared and paid. Financing
K. Preferred stock was sold for cash Financing
L. Bonds were retired Financing
M. Dividends were received on an investment Investing
N. Equipment was purchased by giving a long term note to the seller None
Ellen Kelly Inc. had 31,300 shares of $.50 par common stock 10,000 shares of 5%, $20 par cumulative preferred stock and 5,000 shares of 5%, $10 par preferred stock convertible into 3,800 common shares. Net income after taxes was $55,779. No dividends were declared during the year. The numerator in the Diluted EPS would be $________
Answer:
10,000 common stock.
The EPS = earnings per share = Earnings before tax divided by outstanding common stock in issue
New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $4.80 per share exactly 5 years from today. After that, the dividends are expected to grow at 3.3 percent forever. If the required return is 11.1 percent, what is the price of the stock today?
Answer:
The price of the stock today is $40.39
Explanation:
The price of the stock today can be calculated using the constant growth model of the DDM approach. The constant model is used whenever the expected dividend is expected to grow at a constant rate forever. The formula for price today is,
P0 = D1 / r -g
Where we use D1 that is dividend expected for the next year to calculate price today. As the company will pay dividend in the year 5 that is D5, we will calculate the price using this model that will be price at Year 4 and dicount it back for 4 years to calculate the price today.
P0 = [4.8 / (0.111 - 0.033)] / (1+0.111)^4
P0 = $40.39
The price of the stock today for New Gadgets, Inc., given the provided parameters and using the Gordon Growth Model for calculation, equates to approximately $18.81 per share.
Explanation:The subject of your question pertains to the field of finance, and more specifically, the calculation of the inherent value of a company's stock. For the case of New Gadgets, Inc., we should apply the Gordon Growth Model (a variant of the Dividend Discount Model) to determine the current price of the stock. With the specification that the firm starts paying dividends in the 5th year, we discount this future dividend using the formula for the present value of growing perpetuity: P = D / (r - g), where D represents the amount of the dividend ($4.80); r the required return (11.1%), and g the growth rate of dividends (3.3%). However, since the first dividend will only be paid in 5 years, we must discount this derived price for the additional years (in this case, 5 years) at the required return. The formula becomes: P = D / ((1 + r) ^ n * (r - g)) which simplifies to P = $4.80 / ((1 + 0.111) ^ 5 * (0.111 - 0.033)). After doing the math, the computed price of the share today comes out to be around $18.81.
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Joan, is a jewelry designer who had created a unique new jewelry piece called a neacklet. It can be either a necklace or a bracelet. She would like to start her own business, but is not sure which form would suit her needs. She is very concerned about keeping control of her designs but has no capital except a small business loan. An older gentleman who owns his own jewelry store is eager to retire but has no buyers for his business. He has offered Joan a partnership with a chance for her to buy him out later. NewJewelry a large jewelry franchise who sells to the Home Shopping Network has offered Joan a chance to buy into their franchise and they will trademark and patent her design as part of their jewelry line. Joan comes to you to ask your advice. What would you tell her and why? Make sure that you explain the advantages and disadvantages of every business opportunity.
Answer and explanation:
In Joan's case, a general partnership will provide her control over her business that will be shared with the older gentleman who owns a jewelry store. Profits would be distributed evenly regardless of the contribution of each partner in the business. However, the older gentleman has offered Joan the chance of purchasing his share later on which would provide her the total control of the business and the patent of her creation.
The other option Joan has available is purchasing a franchise. This will allow Joan to avoid the initial costs of introducing her products to the market and the risks of not having enough consumers since her brand name is new. Though she will lose access to the patent of her creation and periodically Joan will need to pay NewJewelry a fee for using its name.
Therefore, as Joan prefers to have control over her designs, it would be more convenient for her to choose the general partnership.
The Copy Department in the College of Business at State University provides photocopying service for both the Marketing and Economics Department. The following budget has been prepared for the year. Available capacity 6,000,000 pages Budgeted usage: Marketing 3,600,000 pages Economics 1,800,000 pages Cost equation $120,000 $0.025 per page If the Copy Department uses a dual rate for allocating its costs based on usage, how much cost will be allocated to the Marketing Department
Answer:
The correct answer is $170,000.
Explanation:
According to the scenario, computation of the given data are as follows:
We can calculate the cost allocated to Marketing by using following formula:
Total cost allocated = Fixed cost + Variable cost
Where, Fixed cost = (3,600,000 ÷ 5,400,000) × $120,000
= $80,000
And , Variable cost = $0.025 × 3,600,000 = $90,000
By putting the value, we get
Total cost allocated = $80,000 + $90,000
= $170,000
Final answer:
The total cost allocated to the Marketing Department by the Copy Department at State University is $162,000, calculated by multiplying the department's budgeted usage of 3,600,000 pages by the total cost per page of $0.045.
Explanation:
To determine how much cost will be allocated to the Marketing Department by the Copy Department at State University, we first need to understand that a dual rate for allocating costs includes both fixed and variable costs. The fixed costs are given as $120,000, and the variable cost is $0.025 per page. The total available capacity is 6,000,000 pages, and the budgeted usage for Marketing is 3,600,000 pages, and for Economics, it's 1,800,000 pages.
We begin by calculating the fixed cost per page by dividing the total fixed costs by the available capacity. This is $120,000 / 6,000,000 pages = $0.02 per page. Next, we add the variable cost per page of $0.025 to the fixed cost per page of $0.02 to get a total cost per page of $0.045.
Then, we can calculate the total cost to be allocated to the Marketing Department by multiplying their budgeted usage of 3,600,000 pages by the total cost per page of $0.045. Therefore, the Marketing Department will be allocated 3,600,000 pages × $0.045 per page = $162,000.
Identify which control activity is violated in each of the following situations. Control Activity 1. Once a month, the sales department sends sales invoices to the accounting department to be recorded. 2. Leah Hutcherson orders merchandise for Rice Lake Company; she also receives merchandise and authorizes payment for merchandise. 3. Several clerks at Great Foods use the same cash register drawer.
Answer:
The control activity violated in each
situation is given below in the explanation
Explanation:
1). Once a month, the sales department sends sales invoices to the accounting department to be recorded---- Control activity violated is the Documentation procedures
Because Documents provide evidence that transactions have occurred.And since this occurs constantly in a buisness, Source documents for accounting entries should not be done only one a month but be promptly sent to the accounting department to ensure timely recording of all transactions
2) Leah Hutcherson orders merchandise for Rice Lake Company; she also receives merchandise and authorizes payment for merchandise---- Control activity violated is in the Segregation of duties.
Here, the responsibility for related activities should be assigned to different individual to prevent errors and irregularities. The responsibility for record keeping for ordering merchandise should be separate from the authorization of payment of the merchandise.
3. Several clerks at Great Foods use the same cash register drawer.-------Control activity violated is in the
Establishment of responsibility.
-----Establishment of Responsibility is a very important characteristic of buisness and therefore should be assigned to specific individual not many people at once especially in the authorization of transaction or handling of cash registers.
Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for DVD players are as follows: November 1 Inventory 73 units at $99 10 Sale 48 units 15 Purchase 93 units at $105 20 Sale 53 units 24 Sale 13 units 30 Purchase 27 units at $111 The business maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of goods sold sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Goods Sold LIFO Method DVD Players
Answer:
Sale - November 10
Cost of Sales
= 48 units × $99
= $4,752
Inventory Balance
=25 units × $99
=$2,475
Sale - November 15
Cost of Sales
=53 units × $105
= $5,565
Inventory Balance
40 units × $105 = $4,200
25 units × $99 = $ 2,475
Total = $6,675
Sale - November 24
Cost of Sales
= 13 units × $105
= $ 1,365
Inventory Balance
27 units × $105 = $ 2,835
25 units × $99 = $ 2,475
Total = $5,310
Explanation:
LIFO Inventory System sells the Recently Acquired Inventory First followed By Older Inventory Acquired.
Final answer:
Using the LIFO method, we calculate COGS for each sale date by using the most recent inventory costs first. The total COGS for Nov 10 is $4752, Nov 20 is $5565, and Nov 24 is $1365. Remaining inventory is updated after each transaction, with the most recent purchase prices used first.
Explanation:
Perpetual Inventory Using LIFO
When applying the Last-In, First-Out (LIFO) method in a perpetual inventory system, the most recent inventory costs are used first when calculating the cost of goods sold (COGS). Let's determine the COGS for each sale and the ending inventory balance after each sale:
November 10 Sale of 48 units: We have only the beginning inventory, so all 48 units at $99 are sold, totaling $4752 in COGS.
November 20 Sale of 53 units: We have 25 units left from the beginning inventory at $99 and we sold 28 units from the new purchase at $105, totaling $2625 (25 units x $99) + $2940 (28 units x $105) = $5565 in COGS.
November 24 Sale of 13 units: All 13 units are from the new purchase at $105, totaling $1365 in COGS.
The remaining inventory after each sale would be calculated by deducting the COGS from the total inventory available before the sale. After the sales on November 10, 20, and 24, and the purchase on November 15, the balance is 73 units - 48 units sold + 93 units purchased - 53 units sold - 13 units sold = 52 units at $105. When the additional 27 units are purchased on November 30 at $111, the inventory balance will include these new units at the higher price, with the older inventory listed thereafter.
Learn more about LIFO Inventory Calculation here:
Sheffield Corp. sold some of its plant assets during 2021. The original cost of the plant assets was $904000 and the accumulated depreciation at date of sale was $843000. The proceeds from the sale of the plant assets were $90800.
The information concerning the sale of the plant assets should be shown on Sheffield's statement of cash flows (indirect method) for the year ended December 31, 2021, as a(n):
A) subtraction from net income of $29,800 and a $61,000 increase in cash flows from financing activities.
B) addition to net income of $29,800 and a $90800 increase in cash flows from investing activities.
C) subtraction from net income of $29,800 and a $90800 increase in cash flows from investing activities.
D) addition of $90800 to net income.
Answer:
The correct answer is Option C.
Explanation:
In the indirect cash flows statement, there are 3 sections, namely: net cash flows from operating activities, net cash flows from investing activities and net cash flows from financing activities.
The items in the question only affect the first two. Under the net cash flows from operating activities, we need to subtract the gain realized from the disposal of the plant assets from net income, which is Sales proceed minus Net book value, i.e., $90,800 - ($904000- $843000) = $29,800.
The sales proceed is $90,800. This would be recognized as cash inflow under net cash flows from investing activities.
What traditional recruitment method communicates the firm's employment needs to the public through media such as newspapers and industry publications? advertising job fairs internships recruiters
Answer:
The correct answer is letter "A": advertising.
Explanation:
Advertising has been the most common form of publishing job offerings. Mostly, companies use newspapers to post new job opportunities but other mediums of information such as radio or television are also utilized. Though, nowadays most recruiters are increasing the use of social media platforms like LinkedIn to capture prospective employees.
Final answer:
Advertising in traditional media like newspapers and industry publications is a key method for firms to communicate job opportunities. The rise of the internet and sites like LinkedIn has made job seeking easier, but a mix of active and passive job search strategies is recommended for best results.
Explanation:
The traditional recruitment method that communicates a firm's employment needs to the public through media such as newspapers and industry publications is known as advertising. This method is a key component of what's often called the 'visible job market', wherein employers actively seek to fill positions by making them known to a wide audience. In contrast, the 'invisible' or 'hidden job market' requires a more proactive approach from job-seekers, such as networking, to uncover opportunities that aren't publicly advertised.
With the rise of the internet, many employers have shifted towards online platforms to post job opportunities. Company websites often feature an Employment or Careers section where these opportunities are listed. Furthermore, social media and professional networking sites, like LinkedIn, have revolutionized job-seeking, making it easier to learn about and apply for new positions.
However, job-seekers should not limit themselves to passive methods such as responding to ads. They should engage in various job search strategies, which may involve attending job fairs, networking at professional events, or utilizing informational interviews to tap into the hidden job market.
Bubbles Inc. produces gummy bears. The company purchases raw materials, stores them in warehouse, and then runs them through two processes: production and packaging. During September, the production process incurred the following costs in processing 20,000 gummy bears Wages of workers operating production equipment$56,500 Manufacturing overhead allocated to the production department Direct materials 8,500 135,000.
Use the FIFO method to compute the September conversion costs in the Production Department.
A) $8,500
B) $200,000
C) $56,500
D) $65,000
Answer:
D. $65,000
Explanation:
Data provided
Direct labor = $56,500
Manufacturing overhead = $8,500
The computation of Conversion costs is shown below:-
Conversion costs = Direct labor + Manufacturing overhead
= $56,500 + $8,500
= $65,000
Therefore for computing the conversion cost we simply add the direct labor with manufacturing overhead.
Final answer:
The conversion costs for Bubbles Inc. in September, calculated as the sum of labor ($56,500) and manufacturing overhead ($135,000), total $191,500. This answer does not match any of the given options.
Explanation:
To calculate September's conversion costs in the Production Department we will use the FIFO method for Bubbles Inc., which produces gummy bears. Conversion costs include labor and manufacturing overhead costs but do not include direct materials. In this case, the conversion costs would be the sum of the wages of workers operating production equipment ($56,500) and the manufacturing overhead allocated to the production department ($135,000).
To find the total conversion costs, we simply add these two amounts together:
Wages of Workers: $56,500Manufacturing Overhead: $135,000Total Conversion Costs = $56,500 + $135,000 = $191,500.
Based on the information provided and the typical definition of conversion costs, the correct calculation of conversion costs is not listed among the options A) $8,500, B) $200,000, C) $56,500, D) $65,000.
Suppose you found out that the Japanese are on the verge of introducing their own mayonnaise substitute next month. Sam does not know this and has just turned down your final offer for the insurance. Assume that Sam tells you SCAM is only six months away from perfecting its mayonnaise substitute and that you know what you know about the Japanese. Would you raise or lower your policy premium on any subsequent proposal to Sam? Based on his information, would Sam accept? A. You would raise your policy premium substantially and Sam would not accept because he doesn't know about the Japanese. B. You would raise your policy premium substantially and Sam would accept because the higher premium would signal there was a greater chance of a loss. C. You would not offer Sam a policy at any premium because given the new information, Sam will almost certainly sustain a loss.
Answer: A. You would raise your policy premium substantially and Sam would not accept because he doesn't know about the Japanese.
Explanation:
In such a scenario as the one described above, the best option as an Insurance Agent is indeed to raise premiums substantially.
As the Japanese will most probably get to market first with the new Mayonnaise Substitute, they will have the rights to it's invention and could even patent it.
This means that Sam and SCAM will most likely suffer a loss as a result of this.
As there is such a high chance of loss, charging a substantially higher premium to enable coverage is only logical and makes business sense.
Sam does not know however that the Japanese are so far ahead and having rejected a substantially lower offer, will reject the newer, substantially higher one as well.
1. A county acquires equipment for $16,000,000 at the beginning of 2015. The equipment has an 8-year life, no residual value. At the beginning of 2021 (6 years later), the equipment is sold for $9,000,000. Use straight-line depreciation, if appropriate. The equipment is used for general operations and is reported in the general fund. What is reported in the general fund's operating statement, related to this equipment, in 2015? A. Expense of $16,000,000 B. The equipment is not reported in the operating statement C. Expense of $2,000,000 D. Expenditure of $16,000,000
Answer:
Is reported a Depreciation expense of $ 2,000,000 in the general fund's operating statement, related to this equipment, in 2015. The right answer is C
Explanation:
According to the given data we have the following:
equipment cost at the beginning of 2015=$16,000,000
equipment useful life=8-year
Therefore in order to to calculate what is reported in the general fund's operating statement, related to this equipment, in 2015 we would have to calculate the straight line depreciation with the following formula:
Straight line depreciation =( Cost - salvage value ) / useful life
Straight line depreciation = ( $16,000,000-0 ) / 8
Straight line depreciation =$ 2,000,000
Therefore, is reported a Depreciation expense of $ 2,000,000 in the general fund's operating statement, related to this equipment, in 2015
Answer:
C). Expense of $2,000,000
Explanation:
Straight line depreciation =
( Cost - salvage value ) / useful life
( 16,000,000-0 ) / 8 = 2,000,000
The Chem-Tex Chemical company is considering two additives for improving the dry-weather stability of its low-cost acrylic paint. Additive A will have a first cost of $110,000 and an annual operating cost of $60,000. Additive B will have a first cost of $175,000 and an annual operating cost of $35,000. If the company uses a three-year recovery period for paint products and a MARR of 20% per year, which process is favored on the basis of an incremental rate of return analysis?
Answer:
The preferred process is that with lower cost which is Additive A with a PV cost of $236,388.89
Explanation:
To determine the preferred process , we compare the present value of the two alternatives and select the lower of the two two cost.
This will be done as follows
Alternative one
Total PV = First payment + PV of annual operating cost
PV of Annuity =A × (1-(1+r)^(-n)/r
A- annual operating cost, r- 20%, n=3
PV of operating cost
= 60,000 × (1- 1.2^(-3))/0.2
= $126,388.89
Total PV = $110,000 + $126,388.89
= $236,388.89
Alternative Two
PV of operating cost
= 35,000 × (1-1.2^(-3))/0.2
= 73,726.85
Total PV = $175,000 + $73,726.85
= $248,726.85
The preferred process is that with lower cost which is Additive A with a PV cost of $236,388.89
What is the purpose of a study
Answer:
Stephen Kim, a Korean-American highschool student says, "The purpose of studying is 50% for survival and 50% out of interest, passion, and curiosity."
Explanation:
No study = poor paying job or no money. No money = no food, water because money is your trading token to get anything in this world.
The world is based off of money and the ammount of money you make is from your educaiton. It sucks but what are you going to do about it?
What's the purpose of living without happienss? That's why you study 50% because of passion, curisoity, or etc. What would happen if I go inside the black hole? Study science and build something and get in there.
What is North Korea like? Study politics and econmoics and go undercover to see what's it's like.
I want an ironman suit to fight crime and protect this world against violent people. Study engineering and physics and build one.
You study half for survival and half out of curisity, interest, and passion.
Your professor moonlights to make ends meet during the summer months and has a knack for painting houses. You agree to pay $500 over whatever the materials and equipment rental cost for the job and delight in sipping lemonade in the shade watching your poor professor perform under a(n) ________.
A) Time and material contract.
B) Fixed wage contract.
C) Cost-plus contract.
D) Lump-sum contract.
Answer: Cost plus contact
Explanation:
A cost-plus contract is a form of contract whereby the contractor is paid for all of its allowed expenses including additional payments in order to allow for a profit.
A cost plus contract is usually used when the quality, delivery time and performance is of more importance than the cost. In cost plus contract, the final cost may be smaller than the fixed cost because the contractors don't usually inflate price and also as a result of lesser price competition.
A cost price contract also gives more room for control and oversight over a contractors work and is also flexible which gives room for specification changes.
The correct answer is a Cost-plus contract, where the customer pays an amount over the actual costs of materials and labor. This type of contract provides flexibility and compensates for unpredictable expenses in a project. Hence the correct option is C.
Cost-plus contract. In a cost-plus contract, the customer agrees to pay the contractor an amount over the actual cost of materials and labor. In the scenario described, you are paying your professor $500 over the cost of materials and equipment rental, which is a typical arrangement in a cost-plus contract agreement. The professor's payment is not fixed (which rules out B and D) and does not solely depend on the time and materials without the additional fixed sum (which rules out A). Cost-plus contracts are common in situations where it's difficult to estimate the total cost of a project ahead of time. They offer a degree of flexibility for the contractor, as they can be reimbursed for all legitimate expenses on the job, plus an agreed-upon fee that represents their profit. Such a format is beneficial when specific details or potential complications of a job cannot be predicted in advance.
The following information relates to the Magna Company for the upcoming year, based on 402,000 units. Amount Per Unit Sales $ 11,256,000 $ 28.00 Cost of goods sold 6,834,000 17.00 Gross margin 4,422,000 11.00 Operating expenses 482,400 1.20 Operating profits $ 3,939,600 $ 9.80 The cost of goods sold includes $1,380,000 of fixed manufacturing overhead; the operating expenses include $118,000 of fixed marketing expenses. A special order offering to buy 68,000 units for $16.95 per unit has been made to Magna. Fortunately, there will be no additional operating expenses associated with the order and Magna has sufficient capacity to handle the order. How much will operating profits be increased if Magna accepts the special order?
Answer:
Incremental income is $ 229,840
Explanation:
Computation of additional income
Incremental Revenues from the order 68,000 units at $ 16.95 $ 1,152,600
Cost of Goods sold
Existing Cost of Goods sold $ 6.834,000
Less: Fixed Manufacturing overhead $ 1,380,000
Variable cost of goods sold $ 5,454,000
Existing production units 402,000
Variable Cost of goods sold per unit 13.57 per unit
Incremental cost of goods sold 68,000 * $ 13,57 $ 922.760
Incremental income $ 229,840
No increase is considered in fixed manufacturing overhead since it is fixed and sufficient capacity is available for the order. No incremental operating expenses is also envisaged as per then info in the question
The elasticity of output with respect to capital Group of answer choices is the inverse of the elasticity of output with respect to labor. is the increase in output resulting from an increase in the capital stock. is the percentage increase in output resulting from a 1 % increase in the capital stock. is always greater than one.
Answer:
cc
Explanation:
If the pound sterling appreciates against the U.S. dollar, England buys _____ U.S. goods, causing the U.S. aggregate demand curve to shift to the _____. more; left fewer; right fewer; left more; right
Answer: More, Right
Explanation:
Appreciaton of a currency means the value of the currency has increased. When the pound sterling appreciates against the United States dollar, England will buy more of the products in the United States because the goods are cheaper when compared to their own currency.
Due to the increase in the United States product bought by England, the aggregate demand curve of the United States shifts to the right. The shift to the right of the aggregate demand curve shows that there is an increase in demand.
A company reported net income of $9,660,000 for the year. There were 4.1 million shares of common stock outstanding at the beginning of the year and 4.3 million shares outstanding at the end of the year. No dividends were declared during the year. What is the company’s earnings per share (EPS) for the year? (
THE COMPANY'S EARNING PER SHARE FOR THE YEAR WILL BE $2.30 PER SHARE.
Explanation:
FOR CALCULATING EARNING PER SHARE WE HAVE TO USED THE FOLLOWING FORMULA:
EARNING PER SHARE = [tex]\frac{NET INCOME}{AVERAGE OF COMMON STOCK}[/tex]
GIVEN:
NET INCOME = $9,660,000
NO. OF OUTSTANDING SHARE AT BEGINNING OF YEAR = 4,100,000
NO. OF OUTSTANDING SHARE AT END OF YEAR = 4,300,000
AS PER GIVEN FORMULA :
AVERAGE COMMON STOCK OUT STANDING = [tex]\frac{4,100,000+4,300,000}{2}[/tex] = 4200000 SHARES
NOW WE WILL FIND EARNING PER SHARE USING ABOVE FORMULA:
[tex]\frac{9,660,000}{4,200,000}[/tex]
EARNING PER SHARE = $ 2.30 PER SHARE