Stopher Incorporated makes a single product. The company has a standard cost system in which it applies overhead to this product based on machine-hours. Data for last year appear below: budgeted variable overhead $ 45,220 budgeted production 20,000 units standard machine-hours per unit 1.90 machine-hours actual production 21,000 units actual variable overhead $66,789 actual machine-hours 36,900 machine-hours The variable component of the predetermined overhead rate is closest to:

Answer:

$6,450

Explanation:

The computation of the ending inventory balance using the  lower of cost or market rule to each item is shown below:

Items  Cost         Market value         Lower cost          Units                 Cost

          per unit      per unit                   per unit        

X         $4               $3.50                   $3.50                 300                 $1,050

Y         $2               $1.50                    $1.50                  600                 $900

Z         $3                $4                        $3                       1,500              $4,500

Total ending inventory balance                                                          $6,450

Final answer:

The lower of cost or market rule is used to value inventory at its lower cost or market value. Nelson Corporation would compare the cost and market values of each product to determine the total ending inventory balance.

Explanation:

The lower of cost or market rule is a method used to value inventory. Under this rule, inventory is valued at the lower of its cost or its market value. It ensures that inventory is not overstated on the financial statements.

To calculate the total ending inventory balance, Nelson Corporation would compare the cost and market values of each product and choose the lower value for each item. Then, they would add up the cost values of all the items to determine the total ending inventory balance. The specific amounts for each product have not been provided in the question, so it is not possible to determine the exact total ending inventory balance. Therefore, none of the given answer options can be confirmed as the correct answer.

The budgeted overhead for November is $1,541,500, calculated by adding the fixed overhead cost, direct labor cost, and variable overhead cost.

To calculate the budgeted overhead for November, we need to consider the direct labor cost and the variable overhead cost. First, we will calculate the direct labor cost. Since it takes 30 minutes of direct labor time to make one unit and there were 135,000 units planned to be sold in November, the total direct labor hours required will be 135,000 units x 30 minutes/unit ÷ 60 minutes/hour = 67,500 hours.

Next, we'll calculate the direct labor cost by multiplying the total direct labor hours by the labor wage rate of $17 per hour. The direct labor cost will be 67,500 hours x $17/hour = $1,147,500.

Now, let's calculate the variable overhead cost. Since the variable overhead rate is $5 per direct labor hour, the variable overhead cost will be 67,500 hours x $5/hour = $337,500.

Finally, to calculate the budgeted overhead for November, we'll add the fixed overhead cost of $56,500 per month to the direct labor cost and the variable overhead cost for November. The budgeted overhead for November will be $56,500 + $1,147,500 + $337,500 = $1,541,500.

Answer:

35%

Explanation:

Accounting rate of return =Average annual net income*100/Average investment

Average investment = (500000+10000/2) = 255000

Accounting rate of return = 175000*100/255000 = 68.63%

Accounting rate of return = 175000*100/500000 = 35%

Answer and Explanation:

a. The computation of the total estimated direct labor cost is shown below:

Particulars     1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

Units to be produced 10,700 9,700 11,700 12,700 44,800

Multiply  Direct labor hour per unit 0.25 0.25 0.25 0.25 0.25

Total Direct labor hour required 2675 2425 2925 3175 11200

Multiply  Direct labor rate per hour $14 $14 $14 $14 $14

Estimated Direct labor cost $37,450 $33,950 $40,950 $44,450 $156,800

b.  The total estimated manufacturing cost and the cash disbursement is shown below:

Particulars 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

Units to be produced 10,700 9,700 11,700 12,700 44,800

Direct labor hour per unit 0.25 0.25 0.25 0.25 0.25

Multiply Total Direct labor hour required 2675 2425 2925 3175 11200

Variable manufacturing overhead rate $2 $2 $2 $2 $2

Estimated Variable manufacturing overhead cost $5,350 $4,850 $5,850 $6,350 $22,400

Add: Fixed manufacturing overhead $67,000 $67,000 $67,000 $67,000 $268,000

Total estimated manufacturing overhead $72,350 $71,850 $72,850 $73,350 $290,400

Less: depreciation $16,000 $16,000 $16,000 $16,000 $64,000

Cash disbursement for manufacturing overhead $56,350 $55,850 $56,850 $57,350 $226,400

We simply applied the above format to find out the manufacturing overhead, cash disbursement, and the direct labor cost

Answer:

3,500 units

Explanation:

The computation of the break even units to attain monthly operating income is shown below:

= (Fixed expenses + target profit) ÷ (Contribution margin per unit)

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $50 - $20

= $30

And, the other items values would remain the same

Now put these values to the above formula  

So, the value would equal to

= ($80,000 + $25,000) ÷ ($30)

= ($105,000 ÷ ($30)

= 3,500 units

Answer:

Asset under lease (Dr.) $1,450

Revaluation reserve (Cr.) $1,450

Explanation:

Capital lease is a situation where the lessee has the option to buy the asset at the end of lease term. The Sheridan receives the asset when the lease term is ended. The actual fair value of asset is $1,450 higher than anticipated value. To record the increase in fair value the asset value is debited with the amount of fair value rise. The asset is recorded at fair value in the balance sheet.

Answer:

no

Explanation:

In order to achieve optimal employment level, the ratio of productivity between employees must be equal to the ratio between their wages, e.g. an employee who is 25% more productive, should earn 25% more.

In this case, the productive ratio is 15:20 or 3:4, while the wage ratio is 8:12 or 2:3. Since the wage ratio is lower than the productivity ratio (2:3 < 3:4), the two employees are not optimally employed.

Answer:

There will be a $10,000.00 capital account  Journal entry and a subsequent credit of common stock journal entry about the no par value.

Explanation:

Funds from the sale of par value stock are divided between the common stock account and the paid-in capital account. For example Gothic Architecture issued a 1,000 shares of $1 par value at $10 par share means that it offered the stock for $1 par share but with the market price of $10 which depicts $10,000.00 will be realised as equity from the sales of the shares.

The only financial effect of a no par value issuance is that any equity funding generated by the sale of no par value stock is credited to the common stock account.  

There is a journal entry required for the transactions because the aforementioned entry notwithstanding, there should also be a corresponding Asset entry on the Balance Sheet of Gothic Architecture for both transactions.

Answer:

a) The cost of aluminum used for its automobiles (variable costs - because there is a specific unit and quality of aluminium used per car)

b) The property taxes on its Bowling Green, Kentucky assembly plant (Fixed costs - the business is expected to pay irrespective of sales)

c) The cost of labor for its assembly line workers. (Variable costs - because it can be pre-planned at a certain labor costs per labour hour)

d) The yearly payments for naming rights for the General Motors Centre sports arena in Oshawa, Ontario, Canada. (Fixed costs - the business is expected to pay irrespective of sales)

(E) The salary paid to Mary Barra, the Chief Executive Officer of General Motors(Fixed costs - the business is expected to pay irrespective of sales)

f) The cost of tires it purchases from Goodyear for its trucks and SUVs (variable costs - it can be easily varied by unit of car)

Answer:

A) $3,530.3

B)

Debit Cash $200,000; debit Premium on Bonds Payable $8,531; credit Bonds Payable $208,531.

C)

Debit Bond Interest Expense $13,808.00; debit Premium on Bonds Payable $1,042.00; credit Cash $14,850.00.

Explanation:

discount:

95,000 - 92,947 = 2,053

This amount is distribute equally among all interest paymeny:

2,053 / 10 payment = 205.3

cash outlay + amortization on discount = interest expense

95,000 x 7% x 1/2 + 205.3 = $3,530.3

B)

debit the cash received

we credit the bond payable for their face value

we adjust using premium when lower and premium when higher

C)

we calcualte the premium and divide oer total payment to get the amortization:

280,420 - 270,000 = 10,420 / 10 = 1,042

cash outlay - amortization on premium = interest expense

270,000  x 11% x 1/2 - 1,042 = 13,808

Answer:

A. ​The socially optimal quantity of rain barrels will be larger than the equilibrium quantity of rain barrels.

Explanation:

Rain barrels capture water from a roof and hold it for later use such as on lawns, gardens or indoor plants. Collecting roof runoff in rain barrels reduces the amount of water that flows from your property. It's a great way to conserve water and it's free water for use in your landscape. The rain has it's own benefits which can be seen as follows;

1. Save Money. Reduce your water bill with a rain barrel's water catch. ...

2. Reduce Runoff Pollution & Erosion. Runoff from rains pick up soil, oil, pesticides, fertilizers and push them to other areas. ...

3. Promote Plant & Soil Health. ...

4. Conserve Water. ...

5.Wash Cars & Windows.

The socially optimal quantity of rain barrels is larger than the equilibrium quantity because homeowners often do not consider the external benefits like water conservation and reduced stormwater runoff. This leads to underinvestment in rain barrels. Therefore, the correct answer is option a.

A rain barrel is a system that captures and stores rainwater, offering benefits such as water conservation and reduced stormwater runoff. If homeowners do not account for these external benefits, the market fails to achieve the socially optimal quantity of rain barrels.

Answer:

EPS formula = (net income - preferred stock dividends) / weighted average outstanding stocks

Earnings per share (EPS) for Plan I:

EPS = $675,000 / 200,000 = $3.375 or $3.38 per share

Earnings per share (EPS) for Plan II:

net income = EBIT - interests = $675,000 - $240,000 = $435,000

EPS = $435,000 / 150,000 = $2.90 per share

Answer:

See the explanation below:

Explanation:

Share of profit of Fain Company = $104,000 * 34% = $35,350

Dividend received = $32,000 * 34% = $10,880

Date             Details                                                 Dr ($)              Cr ($)  

Jan. 2           Investment in Fain Company           400,000

                    Cash                                                                         400,000

                    To record payment for investment in Fain Company          

Dec. 31         Investment in Fain Company             35,350

                    Share of profit of Fain Co.                                        35,000

                    To record share of profit in Fain Company                          

Dec. 31         Cash                                                     10,880

                    Investment in Fain Company                                    10,880

                    To record received from investment in Fain Company      

Answer:

1. $1,000 Unfavorable

2. $1,200 Unfavorable

3. $2,200 Favorable

4. $1,200 Unfavorable

Explanation:

Actual Quantity purchased = 20,000

Actual price per cell = $0.65

Standard Price per cell = $0.60

Direct Materials Price Variance = Actual Quantity Purchased × (Actual Price - Standard Price)

= 20,000 × ($0.65 - $0.60)

= $1,000 Unfavorable

Standard Price per cell = $0.60

Actual Quantity used = Actual quantity purchased - Ending inventory

= 20,000 - 6,000

= 14,000

Standard Quantity = 3 × 4,000

= 12,000

Direct Materials Quantity Variance = Standard Price × (Actual Quantity Used - Standard Quantity)

= $0.60 × (14,000 - 12,000)

= $1,200 Unfavorable

2.  Actual hours = 3,100

Actual Direct labor cost = $35,000

Standard Rate = $12 per hour

Direct Labor Rate Variance = Actual Direct labor cost - Actual Hours × Standard Rate

Direct Labor Rate Variance

= $35,000 - 3,100 × $12

= $2,200 Favorable

Standard Rate = $12.00 per hour

Standard hours = 0.75 × 4,000

= 3,000

Actual hours = 3,100

Direct Labor Efficiency Variance = Standard Rate × (Actual hours - Standard hours)

= $12.00 × (3,100 - 3,000)

= $1,200 Unfavorable

Variance analysis is the measurement tool that determines the gap between the actual and the budgeted or the standard figures determined by the management as per the past records.

1.

2.

Computation:

1.

Given:

[tex]\text{Direct Material Price Variance}=\text{Actual Quantity Purchased}\\\times(\text{Actual Price-Standard Price})\\\\=20,000\times(\$0.65-\$0.60)\\\\=20,000\times\$0.05\\\\=\$1,000\;(\text{U})[/tex]

[tex]\text{Direct Material Quantity Variance}=\text{Standard Price}\\\times(\text{Actual Quantity used-Standard Quantity})\\\\=\$0.60\times(14,000-12,000)\\\\=\$0.60\times2,000\\\\=\$1,200\;(\text{U})[/tex]

Working Note:

Computation of Actual Quantity used:

[tex]\text{Actual Quantity used}=\text{Actual quantity purchased-Ending inventory}\\\\=20,000-6,000\\\\=14,000[/tex]

2.

Given:

[tex]\text{Direct Labor rate Variance}=\text{Actual Direct labor cost}\\-(\text{Actual Hours}\times\text{Standard rate})\\\\=\$35,000-(3,100\times\$12)\\\\=\$2,200\;(\text{F})[/tex]

[tex]\text{Direct Labor Efficiency Variance}=\text{Standard rate}\\\times(\text{Actual Hour-Standard Hour})\\\\=\$12\times(3,100-3,000)\\\\=\$1,200\;(\text{U})[/tex]

Working note:

Computation of standard hour:

[tex]\text{Standard hour}=\text{Direct labor hour}\times\text{Units produced}\\\\=0.75\times4,000\\\\=3,000[/tex]

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Nominal GDP reflects the total market value of all final goods and services produced in a nation in a year, avoiding double counting and measured at market prices. Real GDP is adjusted for inflation to indicate true economic growth.

The U.S. nominal gross domestic product (GDP) is the current value of all final goods and services produced within a nation in a year. It includes only final goods to avoid the mistake of double counting, where output is counted more than once as it moves through various stages of production. This calculation ensures the value of intermediate goods, like the tires on a truck, are not included separately from the final product, the truck itself. Hence, GDP is measured at the prices at which goods and services are sold, reflecting the market value of all final products and services within an economy. It’s essential to note that when referring to real GDP, the values are adjusted for inflation, providing an accurate picture of economic growth.

Answer:

The correct answer is letter "B": there are four phases: peak, recession, trough and expansion.

Explanation:

The business cycle refers to the fluctuations that an economy faces throughout the economic activity. It consists of economic expansions or periods of growth and contractions or periods of economic decline. When the expansion reaches its peak there is usually a downturn followed by a contraction in the economy. The point where the economy starts to recover is called trough after which expansion takes place repeating the cycle.

Answer:

$12,500

Explanation:

Absorption costing consider all the cost incurred in production either variable or fixed as production cost and all the operating costs as the period costs. It calculates the gross profit after deducting the cost of goods sold from the net sales and net income after deduction the operating costs from the gross profit.

First of all we need to calculate the product cost.

Manufacturing cost

Direct materials                               $19

Direct labor                                      $61

Variable manufacturing overhead $7

Fixed manufacturing overhead      $15

($135,000/9,000)                                    

Total Product cost                         $102

Now We will calculate the Net Income

Sales (8,600 x $116)                                   $997,600

Less: Cost of goods sold (8,600 x $102)  $877,200

Gross Profit                                                 $120,400

Less:

Variable selling & admin expense            $99,000

($11 x 9,000)

Fixed selling and admin expense             $8,900  

Net Income                                                 $12,500  

Answer:

Old Current Ratio = 1.815

New Current Ratio = 1.712

Explanation:

Working Capital = Current Assets - Current Liabilities

Given : Current Assets = 504500 , Current Liabilities = 278000

Current Ratio = Current Assets / Current Liabilities

= 504500 / 278000 = 1.815

Current Assets = 504500 + 40200 = 544700

Current Liabilities = 278000 + 40200 = 318200

Current Ratio = Current Assets / Current Liabilities

= 544700 / 318200 = 1.712

Answer:

1. No loss or No Gain

2. Loss = $5,000

3. Gain = $2,000

Explanation:

Requirement 1

If the accumulated depreciation of the machine was $17,000, the journal entry to record the transaction of disposal of machine will be as follows:

December 31   Cash                                       Debit        $26,000

                        Accumulated depreciation   Debit        $17,000

                        Machine                                      Credit        $43,000

Calculation:

Book value of the machine = Purchase price - Accumulated depreciation = $(43,000 - 17,000) = $26,000

We know, Gain (Loss) on sale of machine = Book value of the machine - Sale price = $(26,000 - 26,000) = $0. As the book value and the disposal value are same, there is no loss and no gain.

Requirement 2

If the accumulated depreciation of the machine was $12,000, the journal entry to record the transaction of disposal of machine will be as follows:

December 31   Cash                                       Debit       $26,000

                        Accumulated depreciation   Debit       $12,000

                        Loss on sale of equipment   Debit       $5,000

                        Machine                                      Credit        $43,000

Calculation:

Book value of the machine = Purchase price - Accumulated depreciation = $(43,000 - 12,000) = $31,000

We know, Loss on sale of machine = Sale price - Book value of the machine = $(31,000 - 26,000) = $5,000. Loss is a debit as it shows as the expense.

Requirement 3

If the accumulated depreciation of the machine was $19,000, the journal entry to record the transaction of disposal of machine will be as follows:

December 31   Cash                                Debit        $26,000

                 Accumulated depreciation   Debit        $19,000

                 Gain on sale of machine            Credit               $2,000

                 Machine                                      Credit              $43,000

Calculation:

Book value of the machine = Purchase price - Accumulated depreciation = $(43,000 - 19,000) = $24,000

We know, Gain on sale of machine = Sale price - Book value of the machine = $(26,000 - 24,000) = $2,000. Gain is a credit as it shows as the income.

Because the book value and the disposal value are same, there is no loss and no gain.

As the Loss is a debit as it shows as the expense, its equals the sum of $5,000.

As the Gain is a credit, its equals the sum of $2,000

If the accumulated depreciation of the machine was $17,000,

Book value of the machine = Purchase price - Accumulated depreciation

Book value of the machine = $(43,000 - 17,000)

Book value of the machine = $26,000

Journal entry to record the transaction of disposal of machine will be as follows:

Date                  Account titles                            Debit         Credit

December 31   Cash                                         $26,000

                         Accumulated depreciation     $17,000

                                 Machine                                              $43,000

If the accumulated depreciation of the machine was $12,000,

Book value of the machine = Purchase price - Accumulated depreciation

Book value of the machine = $(43,000 - 12,000)

Book value of the machine = $31,000

Loss on sale of machine = Sale price - Book value of the machine

Loss on sale of machine = $(31,000 - 26,000)

Loss on sale of machine = $5,000.

Journal entry to record the transaction of disposal of machine will be as follows:

Date                  Account titles                            Debit         Credit

December 31   Cash                                         $26,000

                         Accumulated depreciation       $12,000

                               Loss on sale of equipment                    $5,000

                               Machine                                                   $43,000

If the accumulated depreciation of the machine was $19,000,

Book value of the machine = Purchase price - Accumulated depreciation

Book value of the machine $(43,000 - 19,000)

Book value of the machine $24,000

Gain on sale of machine = Sale price - Book value of the machine

Gain on sale of machine = $(26,000 - 24,000)

Gain on sale of machine = $2,000

Journal entry to record the transaction of disposal of machine will be as follows:

Date                  Account titles                           Debit         Credit

December 31   Cash                                         $26,000

                         Accumulated depreciation     $19,000

                               Gain on sale of machine                       $2,000

                               Machine                                                 $43,000

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Answer:

1. will be counted in 2017 GDP because they were sold that year.

Explanation:

Remember, mention was made that it was in the following year the domestically-produced refrigerators weree sold by the departmental store which were bought in 2016.

Based on the definition of Gross domestic product; a measure in monetary terms of the total number of goods and services produced in a country in a period of one year, thus the monetary value was transferred when the refrigerators were sold, which is 2017.

Answer:

Explanation:

When the Peso depreciates by 30%, the firm can save money on the costs of production as the inputs would be less costly but the market for the firm in Mexico would be affected negatively as the depreciation of the peso would mean that now, the consumer can buy more goods with the same amount of money which will increase the demand. The loans that the subsidiary has taken would also be affected as it has to pay more for the collateral.

If the company reduces the inventory and stock the foreign receivables before the depreciation occurs to minimize the loss. Before the depreciation happens, the firm can convert the pesos denomination to the dollar so that its value doesn't fall.

Analyzing the situation where the Mexican peso is expected to depreciate against the dollar, several actions can be taken such as converting the US dollar loans into peso loans, hedging currency risk through forward contracts, and potential business expansion owing to cheaper foreign investments in Mexico.

As the CFO of a firm with a subsidiary in Mexico that is anticipated to face a depreciation of the Mexican peso by 30 percent against the dollar, you might need to consider some strategic moves. Generally, expected depreciation in a currency can lead investors to divest themselves of that currency, leading to an increase in currency supply and a decrease in demand, thus reducing the currency's value.

In this specific case, the expected depreciation of the peso might increase your operational costs since your company would need more pesos to repay its US dollar-based loans. One potentially beneficial action can be, if possible, converting US dollar loans into peso loans before the depreciation occurs. This way, even if the peso depreciates, the subsidiary firm can pay back its loans in weaker pesos.

Another strategy could be to hedge your currency risk. For instance, using forward contracts to lock in today's exchange rate for future transactions, can be particularly helpful if the currency is indeed going to depreciate.

Moreover, as the peso depreciates, foreign investments in Mexico and exports from Mexico would become cheaper for foreign entities, presenting an opportunity to potentially expand your business further in Mexico.

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Answer:

The journal entry is made as follows;

Explanation:

Bank  (1,200*12)          Dr.$ 14,400

Common Stock  (1,200*.01)                                                            Cr.$12

Paid up capital in excess of par-common stocks (14,400-12)  Cr.$14,388

Answer:

The prize is worth $462.9895 million or 462,989,522.4 today.

Explanation:

The equal payments every period over a defined period of 5 years show that this is an annuity. The first payment is received today that is at start so it is an annuity due. We will calculate the present value of this annuity using the formula for Present value of annuity due.

Present value of Annuity due:

Using the formula, the present value is:

Present value = 100m + 100m * [(1 - (1+0.04)^-(5-1)) / 0.04]

Present value = $462.9895 million or 462,989,522.4

Answer:

a. $ 32

Explanation:

Computation of purchase price

The company can make the components with a variable cost which is as follows:

Direct Materials per unit                                                    $ 12

Direct Labour    per unit                                                    $   8

Variable Manufacturing overhead per unit                     $  12

Total Variable Cost  per unit                                             $ 32

Since the fixed manufacturing overhead shall not be reduced, the maximum price that can be paid is the internal variable costs.

So the maximum purchase price is $  32                                  

Olive Corp. should only take into account variable costs—direct materials, direct labor, and variable overhead—which come to $32—while deciding whether to create or buy. Unavoidable fixed overhead expenses are not taken into account. Therefore, Olive Corp. should not pay the outside provider more than $32. The correct option is a.

Olive Corp. must decide whether to make a make or purchase decision. The subcomponent can be produced internally for a total cost of $40 per unit. The supplier is offering a price of $36. Olive Corp. will pay fixed manufacturing overhead even if it chooses to buy from the supplier because it is an unavoidable expense.

As a result, it need to be disregarded when figuring out the highest amount Olive Corp. should have to pay. The unit cost without fixed overhead as a result. The correct option is a.

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Answer: $22,374

Explanation:

With terms of of 1/10 n (unclear), it means that the customer paid their dues within 10 days and were liable for a sales discount of 1%.

The amount of refund that the customer should get is therefore what they paid which is 1% less than the full amount.

Calculating for that then will be,

= Amount due *(1-discount rate)

= 22,600 * (1 - 0.01)

= $22,374

$22,374 is the amount due for refund.

Solution:

1) Maturity date        

                                             locust NBR fargo    

date of the note             19-May 8-Jul 28-Nov    

term of note                         90           120 60    

maturity date                     17-Aug   5-Nov 27-Jan    

2) interest due at maturity      

principal * Rate * time = interest  

locust 35,000 * 8% * 90/360 = 700  

NBR 63,000 * 11% * 120/360 = 2310  

Fargo 33,000 * 7% * 60/360 = 385  

3) Amount in adjusting entry      

33,000*7%*33/360        

= 211.75        

                                 principal * Rate * time = interest

interest to be acccrued 33,000 * 7% * 33/360 = 211.75

4) interest expense to be recorded in 2017      

198        

                                    principal * Rate * time = interest

interest to recorded in 2018 33,000 * 7% * 27/360 = 173.25

Journal entries        

Date Accounting titles & Explanations Debit Credit  

2016        

20-Apr          inventory    38,000    

                         Accounts payable    38,000  

19-May    Accounts payable   38,000    

                                cash               3,000  

                     notes payable    35,000  

8-Jul                 Cash    63,000    

                         notes payable              63,000  

17-Aug         notes payable   35,000    

                           interest expense               700    

                         cash     35,700  

5-Nov          notes payable   63,000    

                       interest expense                            2,310    

                       cash                                    65,310  

28-Nov            Cash    33,000    

                             notes payable              33,000  

31-Dec    interest expense   211.75    

                       interest payable            211.75  

2017        

27-Jan notes payable   33,000    

                  interest payable   211.75    

               interest expense   173.25    

                       cash                       33,385

Tyrell Co. makes purchasing and borrowing transactions that create short-term liabilities. These liabilities, like the loan from Singleton Bank to Hank's Auto Supply, need to be paid back with interest.

The question pertains to the accounting process of Tyrell Co.'s short-term liabilities. In the first instance, Tyrell Co. buys $38,000 worth of merchandise from another company, Locust, creating a short-term liability, as it's on credit terms n/30, meaning the amount is due within 30 days.

Later, the company replaced the account payable with a 90-day, 8%, $35000 note payable and paid $3000 in cash. This means the liability has been transformed from an account payable to a note payable

In the subsequent transaction, the company borrows $60,000 cash from NBR Bank by signing a 120-day, 11%, $60,000 note payable. This is another short-term liability as the loan has a maturity of less than one year. The interest rate represents the cost of borrowing.

In this situation, these transactions are similar to the one where Singleton Bank lends $9 million to Hank's Auto Supply. The loans in both the scenarios need to be paid back with interest, thereby, creating short-term liabilities on the balance sheets of Tyrell Co. and Hank's Auto Supply.

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Answer:

12%

Explanation:

The income earned over on the investment made in the business is known as the return on Investment. it is calculated by dividing net income for the period with the total investment made in the business.

In this question we have operating income and operating asset to calculate the return on investment.

North division

Return on Investment = (Operating Income / Operating Assets) x 100

Return on Investment = ( $72,000 / $600,000 ) x 100 = 12%

The North Division's return on investment (ROI) for the month of May is 12%, calculated by dividing the operating income by the operating assets and then multiplying by 100.

The student has asked for the calculation of the return on investment (ROI) for the North Division of U.S. Products for the month of May. To calculate this, we use the formula: ROI = (Operating Income / Operating Assets) × 100. For the North Division, this calculation would be: ROI = ($72,000 / $600,000) × 100, which simplifies to ROI = 0.12 × 100 = 12%. Therefore, the North Division's return on investment for May is 12%.

Answer:

May incorporate in any state it chooses.

Explanation:

Incorporation can be defined as the creation of a new business which will have equal rights as that of an individual.

The different steps for incorporation include:

- Proper documentation of the reports of incorporation.

- Choosing a suitable name for the business.

- Documenting the various operational agreements.

- Appointing managers to supervise the daily activities.

- Getting a federal employment identification number.

- Opening accounts for keeping the revenues that will be generated by the company.

- Employing diffetents workers to carry out various activities in the company.

Answer:

177 utils

Explanation:

Given that,

Marginal utility for the fourth unit of X = 38 utils

Marginal utility for the fifth unit of X = 19 utils

Law of diminishing marginal utility states that as a consumer is consuming more and more units of a commodity, the utility obtained from the additional unit goes on diminishing.

It states that,

Marginal utility of 4th unit is less than the marginal utility of 3rd unit.

Therefore, the minimum marginal utility of 3rd unit will be at least 39 utils,

the minimum marginal utility of 2nd unit will be at least 40 utils,

the minimum marginal utility of 1st unit will be at least 41 utils,

Total utility is the sum of all the marginal utilities.

Minimum total utility of consuming five units of X:

= 1st unit + 2nd unit + 3rd unit + 4th unit + 5th unit

= 41 + 40 + 39 + 38 + 19

= 177 utils

The law of diminishing marginal utility states that satisfaction decreases as more of a good or service is consumed. In this scenario, the minimum total utility of consuming 5 units of X, given the marginal utilities for the fourth and fifth units of 38 and 19 utils respectively, would be 57 utils.

The law of diminishing marginal utility signifies that as the consumption of a particular good or service increases, the additional satisfaction received from the next unit decreases. In terms of utils, it means that the difference between total utilities before and after the consumption of new unit lessens. As for your question, if the marginal utility for the fourth unit of X is 38 utils and for the fifth unit is 19 utils, the total utility for the consumption of five units of X would be at least 38 + 19 which equals 57 utils. However, this is a minimum value, the actual total utility of consuming five units of X will be higher because you have not included the utility derived from the first three units of X in your calculations.

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Answer:

B.) The net cashflow from operating activities stands at $16,720 while that from investing activities was ($25,000) for equipment purchase. The net cash from financing activities is $13,200 giving a total net cash increase of $4920 for the year. With the total cash balance at end totaling $35,370 including the beginning cash balance of $30,450

Explanation:

Kindly check attached picture for detailed statement of cash flow

1. The preparation of XS Supply Company's Statement of Cash Flows, using the indirect method is as follows:

XS Supply Company's

Statement of Cash Flows

For the Current Year Ended December 31

Operating Activities:

Net Income                                       $13,000

Non-Cash Expense:

Depreciation                                        5,800

Cash from operations                     $18,800

Changes in working capital:

Accounts Receivable                        (7,800)

Inventory                                           (3,800)  

Accounts Payable                             9,800

Salaries & Wages Payable                 (280)

Net Cash Flows from operations $16,720

Financing Activities:

Issuance of new stock                $20,000

Long-term note payable payment (6,800)

Net Cash Flows from financing  $13,200

Investing Activities:

Equipment Purchase                ($25,000)

Net Cash Flows: investing      ($25,000)

Net Cash Flows                          $4,920

Reconciliation of Cash:

Beginning Cash balance $ 30,450

Net Cash Flows                   $4,920

Ending Cash balance      $ 35,370

2. The Statement of Cash Flows shows that the cash inflows increased positively from $30,450 to $35,370.  This increase was boosted by the issuance of new stock for $20,000 and an appreciably increase in cash from operations of $18,800.  The investment in new Equipment reduced these increases by $25,000.

Data and Calculations:

                                                              Current Year  Previous Year  Changes

Balance Sheet at December 31

Cash                                                              $ 35,370      $ 30,450   +$4,920

Accounts Receivable                                     36,600         28,800      +7,800

Inventory                                                         42,600          38,800    +3,800

Equipment                                                     133,000        108,000  +25,000

Accumulated Depreciation—Equipment      (31,600 )      (25,800 )  +5,800

Total Assets                                               $ 215,970    $ 180,250

Accounts Payable                                      $ 37,600      $ 27,800   +$9,800

Salaries and Wages Payable                            970             1,250         -280

Note Payable (long-term)                            45,200          52,000     -6,800

Common Stock                                            93,400          73,400  +20,000

Retained Earnings                                       38,800          25,800  +13,000

Total Liabilities & Stockholders’ Equity $ 215,970     $ 180,250

Income Statement

Sales Revenue              $ 128,000

Cost of Goods Sold           74,000

Other Expenses                 41,000

Net Income                     $ 13,000

Additional Data:

a. Payments:

Equipment Purchase $25,000

Long-term note payable $6,800

b. Issuance of new shares of stock = $20,000

c. No dividends were declared or paid.

d. Other expenses:

Depreciation, $5,800

Salaries and wages, $20,800

Taxes, $6,800

Utilities, $7,600

Thus, overall, XS Supply Company performed creditably with regard to its cash flows in the current year.

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