Answer:
cash generate from financing activities 85,000
Explanation:
financing activities:
sale of common stock 157, 000
cash dividends paid (72,000)
cash generate from financing activities 85,000
On the cash flow statement we will focus on trasnaction that involve cash.
The financing activities will only consider the finance of the business. This is the dividends and common stock.
The amortization on bonds don't involve cash, so are ignored.
The purchase of bonds are investing activities, the business is not financing.
Both the chart of accounts and the ledger __________. A. list the account names and numbers of the business B. provide the balance of each account at a specific point in time C. fulfill the task of showing all of the increases and decreases in each account D. All of the statements are correct.
Answer: (A) List the account names and numbers of the business.
Explanation:
The chart of the account is basically a listing of name of an account in which the company identified availability for the recording transaction in the general ledger. The company has high flexibility for tailor its both chart of account and ledger for its need and including accounts according to its particular needs.
The charts of the accounts has large and complex as company itself. The organization chart properly serve the outline for the accounting for the chart of account and the number of business.
Both the chart of accounts and the ledger list the account names and numbers of a business, provide the balance of each account at a specific point in time, and show all increases and decreases in each account. So, all of the given statements are correct.
Explanation:The chart of accounts and the ledger in business have several roles. They list the account names and numbers of the business, providing a structured overview of every single account within that business. They also provide the balance of each account at a specific point in time, allowing for accurate financial tracking. Finally, they fulfill the task of showing all of the increases and decreases in each account, which enables precise monitoring of the financial flow. Therefore, all of the statements - A, B, C - in your question are correct.
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In the LMN partnership, Lynn's capital is $60,000, Marty's is $80,000, and Nancy's is $70,000. They share income in a 4:3:3 ratio, respectively. Nancy is retiring from the partnership. Each of the following questions is independent of the others.
Refer to the above information. Nancy is paid $84,000, and no goodwill is recorded. What is Lynn's capital balance after Nancy withdraws from the partnership?
A. $68,000
B. $54,000
C. $53,000
D. $52,000
Answer:
D. $52,000
Explanation:
As for the provided information,
We have,
Total capital of Nancy = $70,000
Payment to Nancy on retirement = $84,000
Since no goodwill is recorded any extra payment to Nancy will be debited against existing partner's capital account.
Amount debited against Lynn's Capital Account = ($84,000 - $70,000) [tex]\times[/tex] 4/(4+3) = $8,000
Balance of capital after such payment of Lynn's capital account = $60,000 - $8,000 = $52,000.
_____ refers to activities to plan, organize, lead, and control the flow of products, services, finances, and information that passes through a set of entities from a source to the customer.
a. Contingency planning
b. Demand chain management
c. Supply chain management
d. Enterprise resource planning
Answer:
C.
Explanation:
Supply chain management is the management of the flow of goods and services, finances and information and includes all processes that transform raw materials into final products.
Contingency planning is designed to help an organization respond effectively to a significant future event or situation that we don't know if it will happen.
Demand chain management is similar to supply chain management but more complex, where upstream and downstream relationships between customers and suppliers need to be managed to deliver the lowest cost to the customer across the entire supply chain.
Enterprise resource planning is the integrated management of main business processes,
Answer:
The correct answer is letter "C": Supply chain management.
Explanation:
Supply chain management is the cumulative network of people, entities, activities, information, and resources involved in moving raw materials, components and finished products from original suppliers to end-users. Supply chain management is crucial for most companies and can involve hundreds of o links at large corporations.
The following information pertains to Alpha Computing at the end of 2015:
Assets $980,000
Liabilities $437,500
Net Income $242,500
Common Stock $395,000
Alpha Computing's Retained Earnings account had a zero balance at the beginning of 2015.
What amount of dividends did the company pay in 2015?
Answer:
The amount of dividends the company paid in 2015 is $95000.
Explanation:
Dividends is paid from the net income of the company and the net income includes retained earnings balance at the end of each financial year.
Assers = stockholders equity(stock + retained earnings) + liabilities
$980,000 = $395,000 + retained earnings + $437,500
retained earnings = $147500
net income = dividends + retained earnings
dividends = net income - retained earnings
= $242,500 - $147500
= $95000
Therefore, the amount of dividends the company paid in 2015 is $95000.
The APB partnership agreement specifies that partnership net income be allocated as follows:
Partner A Partner P Partner B
Salary allowance 30000 10000 40000
Interest on average
capital balance 10% 10% 10%
Remainder 40% 40% 20%
Average capital balances for the current year were $50,000 for A, $30,000 for P, and $20,000 for B.
19. Refer to the information given. Assuming a current year net income of $50,000, what amount should be allocated to each partner?
Partner A Partner P Partner B
A) 20000 20000 10000
B) 16000 16000 8000
C) 19000 (3000) 34000
D) 17000 0 33000
A. Option A
B. Option B
C. Option C
D. Option D
Answer:
C) 19000 (3000) 34000
Explanation:
income: 50,000
salaries (80,000) (sum of partner salaries)
interest (10,000) (total capital 100,000 x 10% interest )
net loss (40,000)
Partner A
50,000 + 30,000 salary + 5,000 interest - 16,000 loss share(40%) = 69,000
It woulld be allocate: 69,000 - 50,000 = 19,000
Partner B
30,000 + 10,000 salary + 3,000 interest - 16,000 loss share(40%) = 27,000
27,000 - 30,000 = -3,000
Partner C
20,000 + 40,000 salary + 2,000 interest - 8,000 loss share(20%) = 54,000
54,000 - 20,000 = 34,000
The allocation of net income among the partners would be $42,000 for Partner A, $20,000 for Partner P and $45,500 for Partner B. None of the provided options matches the correct allocation.
Explanation:The question revolves around how to allocate partnership income based on the provided percentage allocations and capital balances. The three elements of the partnership agreement that impact the allocation of net income are salary allowance, interest on average capital balance, and the remainder percentage.
For Partner A, the allocation would be: Salary ($30,000) + 10% interest on the capital balance ($50,000 * 10% = $5,000) + 40% of the remainder of net income [($50,000 net income - $70,000 total salary allowance - $10,000 total capital balance interest) * 40% = $7,000], which sums up to $42,000.
Similarly, for Partner P, the allocation would be: Salary ($10,000) + 10% interest on capital balance ($30,000 * 10%= $3,000) + 40% of the remainder of net income [($50,000 net income - $70,000 total salary allowance - $10,000 total capital balance interest) * 40% = $7,000], which sums up to $20,000.
Lastly, for Partner B, the allocation would be: Salary ($40,000) + 10% interest on capital balance ($20,000 * 10% = $2,000) + 20% of the remaining net income [($50,000 net income - $70,000 total salary allowance - $10,000 total capital balance interest) * 20% = $3,500], which sums up to $45,500.
So, none of the options match the accurate allocation of net income.
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A unique feature of partnerships (compared with publicly owned corporations) is that ______________________ .
A)They do not have to follow GAAP.
B)They are not governed by state laws.
C)Their books have to be maintained on the tax basis.
D)They do not file income tax returns.
E)None of the above.
Final answer:
In partnerships, each partner pays taxes on their share of the income, unlike corporations where the business itself is taxed. Option E) None of the above is the correct answer, as none of the provided options (A through D) describe this distinctive feature.
Explanation:
The unique feature of partnerships compared with publicly owned corporations is that each partner pays taxes on their share of the income; the business itself does not have to pay taxes. Partnerships are governed by state laws, and must generally adhere to Generally Accepted Accounting Principles (GAAP), although there can be differences in reporting when it comes to tax purposes. Unlike corporations, which are taxed at the corporate level and then again at the shareholder level when dividends are paid (double taxation), partnerships pass through the income to the partners who then report it on their individual tax returns.
Therefore, the correct answer to the question is none of the options (A through D) directly describe the unique feature of partnerships, so the correct choice is E) None of the above.
Which of the following statements is true of foreign direct investment?
a. It is the act of buying an ownership stake within a country that provides capital.
b. It is the process of investing in, controlling, and managing value-added activities in other countries.
c. It is the process of tracking an index or measuring of a foreign market.
d. It is the act of investing in a foreign-owned company within a country.
Answer: Option B
Explanation: Foreign direct investment can be defined as a situation in which a company invest in a country other than its home country. In such a case, the company starts a new setup in the new country with the same business operation.
For example an automobile company of Germany opening their car showrooms in america.
Thus, from the above we can conclude that the correct option is B.
The correct definition for foreign direct investment is the process of investing in, controlling, and managing value-added activities in other countries.
Explanation:The correct statement about foreign direct investment is: 'It is the process of investing in, controlling, and managing value-added activities in other countries'. This statement (option b) accurately describes foreign direct investment (FDI). FDI refers to an investment made by an entity based in one country into an entity or corporation based in another country. Essentially, the investor purchases business assets in the foreign country, not just shares. Therefore, the investor has significant control over the company into which the investment is made.
Options a, c, and d are not completely correct. Although buying an ownership stake (option a) and investing in a foreign-owned company (option d) can be part of FDI, they do not fully define it. Tracking an index or measure of a foreign market (option c) describes a type of portfolio investment, not FDI.
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House of Pianos, Inc., purchases pianos from a well-known manufacturer and sells them at the retail level. The pianos sell, on the average, for $3,300 each. The average cost of an piano from the manufacturer is $1,492. The costs that the company incurs in a typical month are presented below: Costs Cost Formula Selling: Advertising ......................................... $955 per month Delivery of pianos ............................... $61 per piano sold Sales salaries and commissions............. $4,823 per month, plus 4% of sales Utilities ............................................... $633 per month Depreciation of sales facilities .............. $4,944 per month Administrative: Executive salaries ................................ $13,490 per month Depreciation of office equipment .......... $943 per month Clerical ............................................... $2,499 per month, plus $37 per piano sold Insurance ........................................... $719 per month During November, the company sold and delivered 60 pianos. Required: 1. Prepare a traditional income statement for September. 2. Prepare a contribution format income statement for September. Show costs and revenues on both a total and a per unit basis down through contribution margin. 3. Refer to the income statement you prepared in (2) above. Why might it be misleading to show the fixed costs on a per unit basis?
Answer:
Sales = Units of pianos sold × Price of each piano
= 60 × $3,300
= $198,000
Cost of Goods Sold = Average cost of each piano × Units of pianos sold
= $1,492 × 60
= $89,520
Gross profit on sales = Sales - Cost of Goods Sold
= $198,000 - $89,520
= $108,480
Total selling expenses:
= Advertising + Delivery + Sales salaries + Commissions + Utilities + Depreciation
= $955 + ($61 × 60) + $4,823 + (198,000 x 4%) + $633 + $4,944
= $955 + 3,660 + $4,823 + $7,920 + $633 + $4,944
= $22,935
Total Admin Expenses:
= Executive salaries + Depreciation + Clerical + Additional clerical expense + Insurance
= $13,490 + $943 + $2,499 + (37 × 60) + $719
= $19,871
Operating Income:
= Gross profit on sales - Total selling expenses - Total Admin Expenses
= $108,480 - $22,935 - $19,871
= $65,674
Final answer:
The answer provides a traditional and contribution format income statement for House of Pianos, Inc. in September, and explains why showing fixed costs on a per unit basis can be misleading.
Explanation:
House of Pianos, Inc. Traditional Income Statement for September:
Total Sales: $198,000
Total Cost of Goods Sold: $89,520
Total Selling and Administrative Expenses: $24,454
Contribution Format Income Statement for September:
Contribution Margin: $57,360
Fixed Costs: $25,782
Net Income: $31,578
Showing fixed costs on a per unit basis can be misleading because fixed costs remain constant regardless of the number of units produced or sold. Therefore, as the number of units produced increases, fixed costs spread out over more units, reducing the fixed cost per unit.
Elite Trailer Parks has an operating profit of $257,000. Interest expense for the year was $36,500; preferred dividends paid were $30,500; and common dividends paid were $38,300. The tax was $63,800. The firm has 20,100 shares of common stock outstanding. a. Calculate the earnings per share and the common dividends per share for Elite Trailer Parks.
Answer:
EPS 1.30
Dividends per Share: 1.91
Explanation:
EBIT (earning before interest and taxes) 257,000
interest expense: 36,500
tax expense: 63,800 total (100,300)
Net income 56,700
Earnings per share:
(net income - preferred dividends) / common stock outstanding
(56,700 - 30,500) / 20,100 = 1,303482 = 1.30
Dividend per share:
common stock dividends / common stock outstanding
38,300 / 20,100 = 1,90547 = 1.91
Robinson Manufacturing found the following information in its accounting records: $ 519 comma 800 of direct materials used, $ 226 comma 700 of direct labor, and $ 775 comma 800 of manufacturing overhead. The Work in Process Inventory account had a beginning balance of $ 72 comma 400 and an ending balance of $ 87 comma 600. Compute the company's Cost of Goods Manufactured.
Answer:
Cost of good manufactured= $1507100
Explanation:
To calculate the cost of manufactured goods we need to use the following formula:
Cost of good manufactured= Beginning work in progress+ direct materials of the period + direct labor + manufactured overhead - ending work in progress
Beginning work in progress= 72400
Direct materials = beginning inventory + purchase - ending inventory= 519800
Direct labor= 226700
Manufactured overhead= 775800
Ending work in progress= 87600
Cost of good manufactured= 72400 + 519800 + 226700 + 775800 - 87600= $1507100
Frye, Inc., has Sales of $625,000, Costs of Goods Sold of $260,000, Depreciation Expense of $79,000, Interest Expense of $43,000, and an average tax rate of 35 percent. If the firm's beginning balance in Retained Earnings for the year was $200,000 and paid out $60,000 in cash dividends, how much is the firm's ending balance in Retained Earnings for the year?
Answer:
Ending RE : 297,950
Explanation:
Sales 625,000
COGS (260,000)
Dep Expense (79,000)
Interest Exp (43,000)
EBT 243,000
Tax Expense (85,050)
Net Income 157,950
beginning retained earning 200,000
+ net income 157,950
- dividends (60,000)
ending RE 297,950
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 $50,000 for a one-fifth interest in the total capital of $230,000. The journal entry to record Erin's admission into the partnership would include
A. a debit to Jacob, Capital for $2,400.
B. a credit to Erin, Capital for $50,000.
C. a credit to Katy, Capital for $1,600.
D. a credit to Cash for $50,000.
Answer:
C. a credit to Katy, Capital for $1,600.
Explanation:
In the given instance, it is provided that Erin is admitted for 1/5th share, for which he brings $50,000
Now, for a total of $230,000 share
1/5 = $230,000 [tex]\times[/tex] 1/5 = $46,000
Since Erin brings $50,000, that means there is goodwill worth $50,000 - $46,000 = $4,000
Now, as Erin brings cash of $50,000, cash will be debited by same.
For recording goodwill, Both old partners account will be credited.
$4,000 [tex]\times[/tex] 3/5 = $2,400 for Jacob
$4,000 [tex]\times[/tex] 2/5 = $1,600 for Katy.
Therefore, as old partner's account have to be credited, correct entry is
Katy's Capital account for $1,600.
The journal entries to record Erin's admission into the partnership include a credit to Erin, Capital for $50,000, reflecting the increase in her equity, and a credit to Cash for $50,000, indicating the increase in the partnership's cash account.
Explanation:The correct answer to this question is option B: a credit to Erin, Capital for $50,000, and D: a credit to Cash for $50,000. When Erin is admitted into the partnership, she invests a capital of $50,000. This amount is reflected in the journal entry by crediting Erin, Capital, indicating an increase in her equity in the partnership. Simultaneously, the cash account of the partnership also increases by $50,000 due to Erin's investment. Therefore, this is recorded as a credit to Cash. The other options are irrelevant as there is nothing in the given scenario to suggest any changes in Jacob's and Katy's capital at this instance.
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Talbot Enterprises recently reported an EBITDA of $7.5 million and net income of $1.875 million. It had $1.95 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.
Answer:
The charge for depreciation and amortization= $2425000
Explanation:
Giving the following information we need to calculate the charge for depreciation and amortization:
EBITDA= 7500000
Net Income= 1875000
Interest= 1950000
t=0,40
We know that:
EBITDA
depreciation and amortization (-)
=EBITD
Interest (-)
Other Expenses (-)
=EBT (Pre-Tax Income)
Income Taxes (-)
=Net Income
We have to calculate the amount of Taxes:
Tax= [Net income/(1-t)]-Net profit= (1875000/0,60)-1875000=1250000
EBIT=Net income+Tax+Interest= 1875000+1250000+1950000=5075000
D&A=EBITDA-EBIT=7500000-5075000= $2425000
According to the law of comparative advantage, what should be the distinguishing characteristics of the goods a nation imports?
(A) They have the lowest capital costs.
(B) They can be domestically produced cheaply.
(C) They cannot be domestically produced cheaply.
(D) They have the greatest domestic demand.
Answer:
The correct answer is option C.
Explanation:
The law of comparative advantage states that a country will produce and export the commodity it has a comparative advantage in producing.
In other words, if the country can produce good cheaply or at a lower opportunity cost.
The good that cannot be produced cheaply or has a higher opportunity cost will be imported from the country that produces it cheaply.
According to the law of comparative advantage, the distinguishing characteristics of the goods a nation imports should be that they cannot be domestically produced cheaply. Therefore, options (c) is accurate.
This principle suggests that nations should specialize in producing goods where they have a comparative advantage (lower opportunity cost) and trade for goods they produce less efficiently.
By focusing on producing what they do best, even if it's not the absolute best, countries can achieve greater efficiency and benefit from global trade. This leads to mutual gains as each nation concentrates on its strengths and imports goods that would be more costly to produce domestically.
Therefore, option (c) is accurate.
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Which of the following is an example of financial intermediation? A. A saver makes a deposit in a credit union, and the credit union makes a loan to a member for a new car. B. U.S. Treasury sells bonds to fund government spending. C. IBM issues a bond that is sold to a retired person. D. IBM issues common stock that is sold to a college student.
Answer:
A. A saver makes a deposit in a credit union, and the credit union makes a loan to a member for a new car.
Explanation:
A financial intermediation is when an institution acts as the joint-point between two parties in a financial transaction. This means, lender and borrowers, and buyer and seller.
The saver deposit in the credit union. (lender)
And the financial intermediate give a loan to a member (borrower)
This spread the risk and makes transaction more easy, as both parties deal with the credit union, not with themselves.
The credit union faces and assumes obligation with both:
for the saver to give the deposit
and with the borrower that if it meets the requirement will receive the cash for the car and will return in a pre-arrenged method with a given interest and time defined.
Brown Office Supplies recently reported $20,000 of sales, $8,250 of operating costs other than depreciation, and $1,750 of depreciation. It had $10,000 of long-term debt outstanding that carries a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's earnings before taxes?
Answer:
Net earnings before taxes = $9,300
Explanation:
Provided information, we have
Sales for the period = $20,000
Less: Operating Cost = $8,250
Less: Depreciation = $1,750
Operating income = $10,000
Less: Interest = $10,000 [tex]\times[/tex] 7% = $700
Thus, net earnings before taxes = $9,300
Note: All the expenses including depreciation, and interest are charged before taxes.
Therefore, depreciation and interest has been deducted before charging taxes.
Jack has $1,000 to invest. He has a choice between municipal bonds with an interest rate of 4% or corporate bonds with an interest rate of 6%. Jack has a marginal tax rate of 25%. Given this information, Jack should invest in the bonds. The after-tax rate of return on the municipal bonds is % and the after tax rate of return on the corporate bonds is %. The difference in the rates of return is known as taxes.
Answer:
Ans. The after-tax rate of return on the municipal bonds is 3% and the after tax rate of return on the corporate bonds is 4.5%
Explanation:
Hi, the formula to find the after-tax rate of return of any taxable income is as follows.
[tex]r(AfterTax)=r(BeforeTax)*(1-Taxes)[/tex]
Therefore, in the case of the municipal bond.
[tex]r(AfterTax)=0.04*(1-0.25)=0.03[/tex]
So, the after-tax rate of return of the municipal bond is 3%.
And for the corporate bond is.
[tex]r(AfterTax)=0.06*(1-0.25)=0.045[/tex]
And the after-tax rate of return of the corporate bond is 4.5%.
It means that taxes on municipal bonds are:
[tex]Taxes= Return(BeforeTax)-Return(AfterTax)[/tex]
In the case of municipal taxes:
[tex]Taxes=0.04-0.03=0.01[/tex]
1% taxes for municipal bonds
In the case of corporate taxes:
[tex]Taxes=0.06-0.045=0.015[/tex]
1.5% taxes for corporate bonds
Best of luck.
Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics. The hospital's Radiology Department is considering replacing and old inefficient X-ray machine with a state-of-the-art digital X-ray machine. The new machine would provide higher quality X-rays in less time and at a lower cost per X-Ray. It would also require less power and would use a color laser printer to produce easily readable X-ray images. Instead of investing the funds in the new X-ray machine, the Laboratory Department is lobbying the hospital's management to buy a new DNA analyzer.
For each of the items below, indicate whether it should be considered a differential cost (DC), an opportunity cost (OC) or a sunk cost (SC) in the decision to replace the old X-ray machine with a new machine. If none of the categories apply for a particular item, please put (NA) next to the number for "none apply". Please list the number and the 2 digit abbreviation next to it. For example, 1.OC, 2. SC, etc.
1. Cost of the old X-ray machine
2. The salary of the head of the Radiology Department
3. The salary of the head of the Pediatrics Department
4. Cost of the new laser printer
5. Rent on the space occupied by Radiology
6. The cost of maintaining the old machine
7. Benefits from a new DNA analyzer
8. Cost of electricity to run the X-ray machines
Answer:
1. Cost of the old X-ray machine - SC
2. The salary of the head of the Radiology Department - None
3. The salary of the head of the Pediatrics Department - None
4. Cost of the new laser printer - DC
5. Rent on the space occupied by Radiology - None
6. The cost of maintaining the old machine - DC
7. Benefits from a new DNA analyzer - OC
8. Cost of electricity to run the X-ray machines - DC
Where,
SC - Sunk cost
DC - Differential cost
OC - Opportunity cost
The decision to replace an old X-ray machine with a new one involves analyzing various costs: sunk costs for the existing equipment, differential costs for the new machine and its operation, and the opportunity cost of choosing this investment over a DNA analyzer.
When considering the decision to replace an old X-ray machine with a new digital X-ray machine at Northwest Hospital, it is important to evaluate certain costs associated with the change. Here is a breakdown of these costs:
1. SC: Cost of the old X-ray machine - This is a sunk cost because it has already been incurred and cannot be recovered.2. NA: The salary of the head of the Radiology Department - This is generally considered a fixed cost and not directly affected by the decision to replace the X-ray machine.3. NA: The salary of the head of the Pediatrics Department - This is not relevant to the decision as it does not directly affect the cost of operating or replacing the X-ray machine.4. DC: Cost of the new laser printer - This is a differential cost as it is a new cost that would be incurred only if the new X-ray machine is purchased.5. NA: Rent on the space occupied by Radiology - This is most likely a fixed cost and not a differential cost associated with the decision.6. DC: The cost of maintaining the old machine - This is a differential cost, as it would be eliminated if the new machine is purchased.7. OC: Benefits from a new DNA analyzer - This represents an opportunity cost, as the hospital would forgo the potential benefits of the DNA analyzer by choosing to invest in the new X-ray machine instead.8. DC: Cost of electricity to run the X-ray machines - This would be a differential cost because the new machine is expected to use less power.Understanding these costs is important as they impact the overall cost accounting and financial planning for the hospital. Managers need to assess differential, sunk, and opportunity costs to make informed decisions on capital investments, such as upgrading to state-of-the-art digital X-ray equipment or purchasing a new DNA analyzer.
Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $60,000 per ton, one-fourth of which is allocated to product X15. Seven thousand units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $9 each, or processed further at a total cost of $9,500 and then sold for $12 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15? 2. Should product X15 be processed further or sold at the split-off point?
Answer:
Wexpro, Inc. gains $11500 (59500-48000) by processing further X15. It is a financial advantage to compete with a more complex product. X15 should be processed further.
Explanation:
Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral.
Material and processing costs total $60,000 per ton, one-fourth of which is allocated to product X15.
60000*0,25=$15000
Seven thousand units of product X15 are produced from each ton of clypton. The units can be sold at the split-off point for $9 each.
Sales before split-off point:
Sales 7000u*$9= $63000
Material and processing cost= $15000
Total=$48000
The units can be processed further at a total cost of $9,500 and then sold for $12 each.
Sales after split-off point:
Sales= 7000*12=$84000
Split-off cost= $9500
Material and processing cost= $15000
Total= $59500
Wexpro, Inc. gains $11500 (59500-48000) by processing further X15. It is a financial advantage to compete with a more complex product. X15 should be processed further.
The financial advantage of further processing product X15 is $21,000. Since this advantage is greater than the additional processing cost of $9,500, it is financially beneficial to continue processing X15 beyond the split-off point.
Explanation:We can begin by calculating the cost of product X15 at the split-off point. Since one-fourth of the total cost of $60,000 is allocated to product X15, the cost allocated to this product is $15,000 ($60,000 / 4). This produces 7,000 units, so the cost per unit at the split-off point is $2.14 ($15,000 / 7,000).
Now, let's consider further processing. The additional cost of processing is $9,500 which gives a total cost accounted for unit X15 of $24,500 ($15,000+$9,500). The cost per unit after further processing is $3.50 ($24,500/7000).
The selling price per unit at the split-off point is $9, and when further processed, it is $12. So, the financial advantage (disadvantage) of further processing product X15 is the difference between the selling price of the units when further processed and the selling price at the split-off point. ($12 - $9) * 7000 items = $21,000 advantage.
In conclusion, the cost of further processing ($9,500) is less than the financial advantage ($21,000), product X15 should be processed further.
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Focus on the difference between feasible alternatives (Principle 2LOADING...)! Insulated concrete forms (ICF) can be used as a substitute for conventional wood framing in building construction. Heating and cooling bills will be about 6060% less than in a similar wood-framed building in upstate New York. An ICF home will be approximately 1010% more expensive to construct than a wood-framed home. For a typical 1 comma 8001,800 ftsquared2 home costing $130130 ftsquared2 to construct in upstate New York and costing $260260 per month to heat and cool, how many months does it take for a 1 comma 8001,800 ftsquared2 ICF home to pay back its extra construction cost?
Answer:
It will need 176 months (almost 15 years) to payback without considering the time value of money
Explanation:
cost of a typical construction:
1,800 square feet x $130 per square fet = $234,000
the ICF is 10% more expensive:
$34,000 x 1.10 = $257,400
additional cost: $27,400
then the heat cost is $260 and it will be 60% less :
$260 - 60% =$260 x( 1 - 0.6) = $104
savigns $260 - $104 = $156
we now divide the additional cost over the saving per month.
$27,400 / 156 saving per month = 175,641025 = 176 months
Final answer:
The payback period for an ICF home compared to a wood-framed home can be calculated using the monthly savings in heating and cooling costs and the extra construction cost. In this case, it takes approximately 9 days for a 1,800 ft² ICF home to pay back its extra construction cost.
Explanation:
The question is asking how many months it takes for a 1,800 ft² ICF home to pay back its extra construction cost compared to a wood-framed home. With an ICF home, the heating and cooling bills are 60% less than a wood-framed home.
However, the ICF home is 10% more expensive to construct.
To calculate the payback period, we need to compare the monthly savings in heating and cooling costs to the extra construction cost.
For a wood-framed home costing $130 per ft² to construct and $260 per month to heat and cool, the monthly savings for an ICF home would be (60/100) * $260 = $156.
The extra construction cost for the ICF home would be (10/100) * $130 = $13.
Therefore, the payback period would be $13 / $156 = 0.083 months, or approximately 9 days.
New York Bank provides Food Canning, Inc. a $250,000 line of credit with an interest rate of 1.75 percent per quarter. The credit line also requires that 1 percent of the unused portion of the credit line be deposited in a non-interest bearing account as a compensating balance. Food Canning, Inc.'s short-term investments are paying 1.2 percent per quarter. What is the effective annual interest rate on this arrangement if the line of credit goes unused all year
Answer:
effective interest rate: 2.37%
Explanation:
250,000 x 1% = 2,500
We will calcualtethe interest expense for the credit line and the interest revneue for the credit being in short-term investment through the whole year
so we got:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal 250,000.00
time 4.00
rate 0.00175
[tex]250000 \: (1+ 0.00175)^{4} = Amount[/tex]
Amount 267,964.76
interst expense for the credit line 17.964.76
2,500 will be deposited
if we keep the credit line available through short term investment we will got:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal 247,500.00
time 4.00
rate 0.01200
[tex]247500 \: (1+ 0.012)^{4} = Amount[/tex]
Amount 259,595.56
interest revenue 12.095,56
so we recieve 247,500
and paid 17.964.76 interest
and gain 12.095,56
interest net: 5.869,2
5,869.2/247,500 =0,02371393 = 2.37%
Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc and Michelle also paid $2,500 of qualifying moving expenses, and Marc paid alimony to a prior spouse in the amount of $1,500. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $1,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $5,500 in federal income taxes withheld from their paychecks during the course of the year. (use the 2016 tax rate schedules. )
What is the total amount of Marc and Michelle’s deductions from AGI?
What is Marc and Michelle’s taxable income?
What is Marc and Michelle’s taxable income?
The total amount of deductions Marc and Michelle are going to get is $24750.
The taxable income of Marc and Michelle is $47750.
Further Explanation:
Income Tax: It is the additional charge on an individual’s income which he/she needs to pay to the government. The taxable income is calculated by adding all the incomes and deducting all the deductions which an individual can claim on his/her income.
Compute the total amount of deductions available for Marc and Michelle:
Total Deduction Available
= Higher of Standard Deduction for MJF and Itemized Deduction + Personal and Dependency Exemptions
= Higher of $12600 and $6000 + $12150 ($4050×3)
= $12600 + $12150
=$24750.
Therefore, the total deductions available to Marc and Michelle are $24750.
Gross Income of Marc and Michelle
= Salary of Marc + Salary of Michelle + Interest Earned on Corporate Bonds
= $64000 + $12000 + 500
= $76500.
Total Taxable Income of Marc and Michelle
= Gross Income – Qualified Moving Expenses – Alimony Paid – Total Deductions
= $76500 - $2500 - $1500 - $$24750
= $47750.
Therefore, the total taxable income of Marc and Michelle is $47750.
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Answer details:
Grade: Senior School
Subject: Taxation
Chapter: Income Tax
Keywords: Taxable income, Marc and Michelle, Deductions, salary income, earned, corporate bond interest, interest on municipal bond, standard deductions, US tax brackets.
They paid $6,000 of expenditures that qualify as itemized deductions. Total Deductions from AGI: $7,000 Adjusted Gross Income: $69,850.
Given,
Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc and Michelle also paid $2,500 of qualifying moving expenses, and Marc paid alimony to a prior spouse in the amount of $1,500.
Required to calculate:
What is the total amount of Marc and Michelle’s deductions from AGI?
What is Marc and Michelle’s taxable income?
What is Marc and Michelle’s taxable income?
Itemized Deductions:
They paid $6,000 of expenditures that qualify as itemized deductions.
Child Tax Credit:
They can claim a $1,000 child tax credit for their son, Matthew.
Total Deductions from AGI: $6,000 (itemized deductions) + $1,000 (child tax credit) = $7,000
Total Income:
Marc's salary: $64,000
Michelle's salary: $12,000
Interest from municipal bonds: $350
Interest from corporate bonds: $500
Total Income: $64,000 + $12,000 + $350 + $500 = $76,850
Adjusted Gross Income (AGI):
AGI = Total Income - Total Deductions from AGI
AGI = $76,850 - $7,000 = $69,850
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In the initial Cournot duopoly equilibrium, both firms have constant marginal costs, m, and no fixed costs, and there is a barrier to entry. Show what happens to the best-response function of firms if both firms now face a fixed cost of F Let market demand be p-a -bQ, where a and b are positive parameters with 2 firms. Let q1 and q2 be the amount produced by firm 1 and firm 2, respectively. Assuming it is optimal for the firm one to produce, its best-response function is I. (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. Eg., a subscript can be created with the- q1 = character.)
Answer:
The best response functions are given by
[tex]q_1=\frac{a-m}{2b}-\frac{q_2}{2}[/tex]
[tex]q_2=\frac{a-m}{2b}-\frac{q_1}{2}[/tex]
Explanation:
Under no fixed costs the total costs is
[tex]CT_i= mq_i[/tex]
for i=1,2. The market demand is given by
[tex]p=a-bQ[/tex]
where [tex]Q=q_1+q_2[/tex] is the total production
Firm 1 and 2 will maximize its own profits. Since this firms are symmetric the problems are too
[tex]max\,\Pi_1=p=(a-b(q_1+q_2))q_1-mq_1[/tex]
The first order conditions (take derivative of the profit with respect to [tex]q_1[/tex] are given by
[tex]a-2 b q_1-b q_2-m=0[/tex]
Then the best-response function for Firm 1 will be
[tex]q_1=\frac{a-m}{2b}-\frac{q_2}{2}[/tex]
and the solution for Firm 2 would be the symmetric
[tex]q_2=\frac{a-m}{2b}-\frac{q_1}{2}[/tex]
Now we can add fixed costs, so total costs now look
[tex]CT_i= F+mq_i[/tex] for i=1,2
the profit maximization problem for firm 1 looks now
[tex]max\,\Pi_1=p=(a-b(q_1+q_2))q_1-F-mq_1[/tex]
The first order conditions are given by
[tex]a-2 b q_1-b q_2-m=0[/tex]
note that this equation is the same as in the absence of Fixed Costs. So the solutions would be the same. Fixed costs don't change the optimal level of production of these firms.
Note that Total Costs are given by fixed costs (F) and marginal costs (m) that depend on the production level of the firm
[tex]CT_i=F+mq_i[/tex]
for i=1,2. The market demand is given by
[tex]p=a-bQ[/tex]
where [tex]Q=q_1+q_2[/tex] is the total production, so it's the sum of each firms production
Firm 1 will maximize it's own profits
[tex]max\,\Pi_1=p=(a-b(q_1+q_2))q_1-F-mq_1[/tex]
The first order conditions (take derivative of the profit with respect to [tex]q_1[/tex] are given by
[tex]a-2 b q_1-b q_2-m=0[/tex]
Then the best-response function for Firm 1 will be
[tex]q_1=\frac{a-m}{2b}-\frac{q_2}{2}[/tex]
and the solution for Firm 2 would be symmetric.
Note that only marginal costs are relevant for getting the best-response function, so adding fixed costs (F) don't change the results
Explanation:
State for each account whether it is likely to have debit entries only, credit entries only, or both debit and credit entries. Also, indicate its normal balance. Typical Entries Normal Balance 1. Accounts Payable 2. Cash 3. Dividends 4. Miscellaneous Expense 5. Insurance Expense 6. Fees Earned
Answer:
Account payable: both
Cash: both
Dividends: debit
Miscellaneous Expense: debit
Insurance expense: debit
Fees Earned: credit
Explanation:
Account payable will have a normal credit balance.
It will be credited when a purchases on account are made.
And debited when payment on this accounts occurs.
Cash: represent the cash of the company
It increase when collected or received. And decrease when used on payment.
Dividends: debit, only used when dividends are declared
Miscellaneous Expense: debit each time a common expense is made
Insurance expense: debit each time it is accrued through time the expired portion of the insurance policy.
Fees Earned: credit each time the company earns from providing their services.
Marigold Corp. has the following inventory data:
Nov. 1 Inventory 23 units @ $4.70 each
8 Purchase 94 units @ $5.05 each
17 Purchase 47 units @ $4.90 each
25 Purchase 70 units @ $5.10 each
A physical count of merchandise inventory on November 30 reveals that there are 78 units on hand. Ending inventory (rounded) under LIFO is
Answer:
Ending inventory (rounded) under LIFO is 386
Explanation:
Month Units Unit Cost Cost Inven. Inven. Cost
nov-01 23 4,7 108,1 23 108
nov-08 94 5,05 474,7 55 278
nov-17 47 4,9 230,3 0 0
nov-25 70 5,1 357 0 0
78 386
Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2018 ($ in millions) Sales $ 900 Cost of goods sold 315 Gross margin 585 Salaries expense $ 150 Depreciation expense 98 Patent amortization expense 5 Interest expense 38 Loss on sale of land 4 295 Income before taxes 290 Income tax expense 145 Net Income $ 145 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) Year 2018 2017 Change Cash $ 138 $ 130 $ 8 Accounts receivable 261 277 (16 ) Inventory 465 480 (15 ) Accounts payable 203 194 9 Salaries payable 107 116 (9 ) Interest payable 57 50 7 Income taxes payable 48 40 8 Required: Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Company using the indirect method.
Answer:
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $145
Adjustment made:
Add : Depreciation expense $98
Add: Loss on sale of land $4
Add: Amortization expense $5
Less: Increase in cash balance -$8 ($138 - $130)
Add: Decrease in accounts receivable $16 ($261 - $277)
Add: Decrease in inventory $15 ($465 - $480)
Add: Increase in accounts payable $9 ($203 - $194)
Less: Decrease in salaries payable -$9 ($107 - $116)
Add: Increase in interest payable $7 ($57 - $50)
Add: Increase in income tax payable $8 ($48 - $40)
Total of Adjustments $145
Net Cash flow from Operating activities $290
The cash flows from operating activities for Myriad Products Company using the indirect method is calculated by adjusting the net income for non-cash expenses, losses and gains on sales of assets, and changes in current operating assets and liabilities. The calculated cash flow from operating activities for 2018 is $298 million.
Explanation:First explain the steps involved in preparing the cash flow from operating activities section of the statement of cash flows using the indirect method, and then apply these steps to your provided financial information from Myriad Products Company.
The first step in this process is to start with the net income from the income statement, which is $145 million for Myriad Products Company.Next, we need to adjust the net income for non-cash expenses and losses and gains on sales of assets. In this case, we have a depreciation expense of $98 million, patent amortization expense of $5 million and a loss on sale of land of $4 million. So, we add these amounts back to the net income.Finally, we adjust for changes in current operating assets and liabilities. Here, we have a decrease in accounts receivable of $16 million, a decrease in inventory of $15 million, an increase in accounts payable of $9 million, a decrease in salaries payable of $9 million, an increase in interest payable of $7 million, and an increase in income taxes payable of $8 million. Decreases in current assets and increases in current liabilities are added to the net income while decreases in current liabilities are subtracted.Adding all these together, we get the cash flow from operating activities to be: $145 + $98 + $5 + $4 + $16 + $15 + $9 - $9 + $7 + $8 = $298 million
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Marginal utility is the:
A. sensitivity of consumer purchases of a good to changes in the price of that good.
B. change in total utility obtained by consuming one more unit of a good.
C. change in total utility obtained by consuming another unit of a good divided by the change in the price of that good.
D. total utility associated with the consumption of a certain number of units of a good divided by the number of units consumed.
Answer : Option b
Explanation:
In simple words, marginal utility refers to the addition to the utility satisfaction of the consumer when he or she consumes one more unit of such commodity.
If the consumer gets more satisfied after additional consumption then the marginal utility will be positive or otherwise negative.
It is calculated by dividing the difference in utility with the difference in units.
Hence from the above we can conclude that the correct option is b.
Marginal utility refers to the change in total utility that a consumer experiences from consuming one additional unit of a good or service.
Explanation:Marginal utility, a key concept in economics, is best explained as B. the change in total utility obtained by consuming one more unit of a good. In other words, it measures the satisfaction a consumer gets from consuming one additional unit of a good or service. For instance, imagine you're eating ice cream. The first scoop brings you a lot of satisfaction (utility), but with each additional scoop, the satisfaction you receive (marginal utility) may decrease, remain the same, or even become negative if you end up feeling unwell from eating too much.
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Suppose the government spends $500 billion during the fiscal year 2014 on goods and services. In addition, the government collects tax revenues of $480 billion and makes transfer payments equal to $150 billion. Assume the economy is producing at the potential output level. The budget balance for this economy is equal to _____ and the government is running a _____. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices $170 billion; surplus -$170 billion; deficit $130 billion; surplus -$130 billion; deficit
Answer:
170 billion ; deficit
Explanation:
Given:
Amount spent by the government = $500 billion
Tax revenue collected = $480 billion
Transfer payments = $150 billion
Now,
The budget balance for government
= Tax revenue - Amount spent - Transfer payments
= $480 billion - $500 billion - $150 billion
= -170 billion
Here the negative sign depicts the deficit
Hence,
The answer is option 170 billion ; deficit
Assume that at the current market price of $5 per unit of a good, you are willing and able to buy 20 units. Last year at a price of $4 per unit, you purchased 20 units. What has most likely happened over the last year? Supply has decreased. Quantity supplied has decreased. Demand has decreased. Supply has increased. Demand has increased.
Answer:
The correct answer is the demand has increased.
Explanation:
At the market price of $5/unit, the quantity demanded is 20 units.
Last year at the price level of $4, the quantity demanded was 20 units.
We see that even though the price has increased the quantity demanded is the same. This indicates that the demand has increased.
When there is an increase in the demand for a commodity, the demand curve moves to the right. This upward or rightward shift in the demand curve will cause the price of the commodity to increase. Though the quantity demanded will be the same.
Yancey Productions is a film studio that uses a job-order costing system. The company’s direct materials consist of items such as costumes and props. Its direct labor includes each film’s actors, directors, and extras. The company’s overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars.At the beginning of the year, Yancey made the following estimates:Direct labor-dollars to support all productions $ 8,370,000Fixed overhead cost $ 5,022,000Variable overhead cost per direct labor-dollar $ 0.07Required:1. Compute the predetermined overhead rate.2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:Direct materials $ 1,420,000Direct labor cost $ 2,511,000Compute the total job cost for this particular film.
Answer:
1. predetermined overhead rate= 1.3
2. Total cost= $7,195,300
Explanation:
Giving the following information:
Direct labor-dollars to support all productions $ 8,370,000.
Fixed overhead costs $ 5,022,000.
Variable overhead cost per direct labor-dollar $ 0.07.
Yancey applies its overhead cost to films based on direct labor-dollars.
1. Compute the predetermined overhead rate.
predetermined overhead rate= Estimated total overhead cost/Estimated total amount of the allocation base
predetermined overhead rate= (0.7*8370000+5022000)/ 8370000
predetermined overhead rate= 10881000/8370000= 1.3
2. Compute the total job cost for this particular film.
Direct materials $ 1,420,000
Direct labor cost $ 2,511,000
Overhead= 2511000*1.3= 3,264,300
Total cost= $7,195,300
Job order costing refers to the method when the manufacturing unit ascertain the cost of every unit of product. This is done only when the manufacturing unit has varied product lines and are different from each other.
Predetermined overhead rate= 1.3
Total cost= $7,195,300
The following information is given:
Direct labor dollars to support all productions $ 8,370,000.
Fixed overhead costs $ 5,022,000.
Variable overhead cost per direct labor dollar $ 0.07.
Yancey applies its overhead cost to films based on direct labor dollars.
1. Compute the predetermined overhead rate.
[tex]\begin{aligned}\text{Predetermined overhead rate}&=\frac{\text{Estimated total overhead cost}}{\text{Estimated total amount of the allocation base}}\\\text{Predetermined overhead rate}&= \frac{0.7\times8,370,000+5,022,000}{8,370,000}\\\text{Predetermined overhead rate}&= \frac{10,881,000}{8,370,000}\\&= 1.3\end{aligned}[/tex]
2. Compute the total job cost for this particular film.
Direct materials =$ 1,420,000
Direct labor cost= $ 2,511,000
[tex]\text{Overhead}= 2511000\times1.3= 3,264,300[/tex]
Total cost= $7,195,300
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