Answer:
Percentaje CEO's earnign tied to the profits = 7,76%
Explanation:
As you can se in the equation there are two veariables that are independent, that are π ,and S, according with the information you have to replace the variables with the amount of money of sales and profit.
W = 512,000 + 217π + 10.08S
W= 512,000 + 217 ($200) + 10.08($400)
W = 512,000 +$43,400+ 4032
π is the variable tied to the profits, it means that $43,400 correspond to the amount of money that the CEO will receive for the profit
W= $559,432
Now you have to calculate the percentage that the profits representing in the total compensation,
Percentaje profits =( $43,400/559,432)
Percentaje Profits = 7,76%
Approximately 95.10% of the CEO's total earnings are linked to the profits of the firm.
Explanation:The question requires calculating the percentage of the CEO's total compensation that is linked to the company's profits. To do this, we'll first compute the total compensation, and then divide the part linked to profits by it.
Given, total compensation W = 512,000 + 217π + 10.08S, where π = company profits = $200 million, and S = company sales = $400 million.
Therefore, total compensation W = 512,000 + 217*200 + 10.08*400 = $45,634,000
The part linked to profits = 217 * π = 217 * 200 = $43,400,000.
So, the percentage of CEO's total earnings tied to the profits of the firm = (Part linked to profits / Total compensation) * 100% = (43,400,000/45,634,000) * 100% =~ 95.10%
Thus, approximately 95.10% of CEO's total earnings are tied to the profits of the firm.
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You have 25 years left until retirement and want to retire with $1.1 million. Your salary is paid annually, and you will receive $61,000 at the end of the current year. Your salary will increase at 4 percent per year, and you can earn a return of 10 percent on the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year?
Answer:
percentage of your salary save each year is 13.24%
Explanation:
given data
time period t = 25 year
amount = $1.1 million
salary = $61000
increase r1 = 4 percent per year = 0.04
return r2 = 10 percent = 0.1
to find out
what percentage of your salary must you save each year
solution
we consider here annual saving = A
so amount formula is
amount = A × [tex]\frac{(1+r1)^t -(1+r2)^t}{r1-r2}[/tex]
here A is annual saving and r1 is increase rate and r2 is return rate
1100000 = A × [tex]\frac{1.1^{25} - 1.04^{25}}{0.1-0.04}[/tex]
A = $8079.45
so
proportion of salary is [tex]\frac{8079.45}{61000}[/tex]
proportion of salary = 13.24%
so percentage of your salary save each year is 13.24%
Hokey Min's Kleen Karpet cleaned 85 rugs in October, consuming the following resources:Labor: 525 hours at $17 per hourSolvent: 120 gallons at $8 per hourMachine Rental: 20 days at $50 per hour(a) Labor productivity per dollar = ____ rugs/dollar (round your response to four decimal places).(b) Multifactor productivity =_____rugs/dollar (round your response to four decimal places).
Answer:
(a) The Labor productivity per dollar = 0.0095 rugs/dollar.
(b) The Multifactor productivity = 0.0078 rugs/dollar.
Explanation:
Given information:
Number of rugs = 85
Labors: 525 hours at $17 per hour.
Total cost of labors = 525 × 17 = $8925
Solvent: 120 gallons at $8 per hour.
Total cost of solvent = 120 × 8 = $960
Machine Rental: 20 days at $50 per hour.
Total rent = 20 × 50 = $1000
Total cost = Total cost of labors + Total cost of solvent + Total rent
Total cost = $8925 +$960 +$1000 =$10885
(a)
We need to find Labor productivity per dollar.
[tex]\text{Labor productivity}=\frac{outpu t}{\text{Labor cost}}[/tex]
[tex]\text{Labor productivity}=\frac{85}{8925}[/tex]
[tex]\text{Labor productivity}=0.0095238[/tex]
[tex]\text{Labor productivity}\approx 0.0095[/tex]
Therefore the Labor productivity per dollar = 0.0095 rugs/dollar.
(b)
We need to find the Multifactor productivity.
[tex]\text{Multifactor productivity}=\frac{Outp ut}{\text{Total cost}}[/tex]
[tex]\text{Multifactor productivity}=\frac{85}{10885}[/tex]
[tex]\text{Multifactor productivity}=0.0078089[/tex]
[tex]\text{Multifactor productivity}\approx 0.0078[/tex]
Therefore the Multifactor productivity = 0.0078 rugs/dollar.
Final answer:
Labor productivity per dollar for Hokey Min's Kleen Karpet is 0.009526 rugs/dollar, and the multifactor productivity is 0.004275 rugs/dollar, both rounded to four decimal places.
Explanation:
To answer the question about labor productivity per dollar and multifactor productivity for Hokey Min's Kleen Karpet, we need to calculate these based on the information given about the resources consumed.
(a) To find the labor productivity per dollar, we use the total number of rugs cleaned and divide that by the total labor cost:
Labor cost = 525 hours × $17 per hour = $8,925Labor productivity per dollar = 85 rugs / $8,925 = 0.009526 rugs/dollar (rounded to four decimal places)(b) To calculate the multifactor productivity, we sum all the costs and divide the number of rugs cleaned by this total cost:
Total solvent cost = 120 gallons × $8 per gallon = $960.Total machine rental cost = 20 days × $50 per hour = Assume a 10-hour day, $50 × 10 hours = $500/day, so $500/day × 20 days = $10,000.Total cost = Labor cost + Solvent cost + Machine cost = $8,925 + $960 + $10,000 = $19,885.Multifactor productivity = 85 rugs / $19,885 = 0.004275 rugs/dollar (rounded to four decimal places).On December 12, 2018, Pace Electronics received $43,200 from a customer toward a cash sale of $432,000 of diodes to be completed on January 16, 2019. What journal entries should Pace record on December 12 and January 16? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
cash 43,200
unearned services 43,200
to reord payment in advance
account receivables 388,800
unearned services 43,200
service revenue 432,000
to record completion of diodes request of December 12th
Explanation:
the accounting will match revenues with the time at they occur.
Also it will follow conservatism principles and do not recognize revenue until is secure.
Because, the customer may cancel the request it will not recognize any revenue until the goods are delviered andaccepted from the customer.
That occurs on January 16th so hthe revenue will be in that entry.
For Deceber 12th the reception of cash will be against unearned revenue as on that date, the company takes the obligation to do the job.
Yield to Call and Realized Rates of Return Six years ago, Goodwynn & Wolf Incorporated (G&W) sold a 17-year bond issue with a 12% annual coupon rate and a 7% call premium. Today, G&W called the bonds. The bonds originally were sold at their face value of $1,000. Compute the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price. Round your answer to two decimal places.
Answer:
YTC = IRR = 12.844% (exact using excle of financial calculator)
using approximation formula: 12.72%
Explanation:
The call premium means it were called at 107 of the face value
1,000 x 107/100 = 1,070
The investment was for 1,000
The bond yield a six years annuity of 120
and then called at 1,070
We need to know teh YTC:
[tex]YTC = \frac{C + \frac{P-F}{n }}{\frac{P+F}{2}}[/tex]
Coupon payment =1,000 x 12% = 120
Call Price: 1070
Face Value: 1000
n: 6 years
[tex]YTC = \frac{120 + \frac{1,070-1,000}{6}}{\frac{1,070+1,000}{2}}[/tex]
YTC = 12.7214171%
This method is an aproximation to the YTC
To solve for the YTC we can use excel IRR funtion
we write
-1,000 (investment)
120
120
120
120
120
+1,070+120 = 1,190 (total cashflow at year 6 call price and coupon)
and we calculate IRR selecting this values:
which give us 12.844%
Which is close to our approximation.
In a free market, if the price of a good is above the equilibrium price, then;
A. suppliers, dissatisfied with growing inventories, will raise the price.
B. demanders, wanting to ensure they acquire the good, will bid the price lower.
C. government needs to set a lower price.
D. suppliers, dissatisfied with growing inventories, will lower the price.
Answer: (B) demanders, wanting to ensure they acquire the good, will bid the price lower.
Explanation:
In the free market, if the product price are above the equilibrium price then, the demand of the product rise and the demanders ensure that they acquire good quality products in the low price. Then, the quality and quantity both demand increases until the equilibrium are reached.
On the other hand, if the quantity of the product demand is less as compared to the quantity supply then it create shortage of the product.
Therefore, Option (B) is correct.
In a free market, if a good's price is above the equilibrium, suppliers will lower the price due to dissatisfaction with increasing inventories. This occurs because there's a surplus in the market, and the decline in price aims to clear that surplus.
Explanation:In a free market, if the price of a good is above the equilibrium price, then suppliers, dissatisfied with growing inventories, will lower the price. This is because suppliers recognize there's a surplus of goods, with more supply available than demand from consumers. Consequently, they will reduce the price with the aim of selling the surplus and clearing the inventories. It's also important to understand that in a free market, consumers aren't willing to pay more than the equilibrium price, and the market forces tend to restore the balance, hence the decrease in the price to meet the equilibrium stage again.
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You want to buy a house within 3 years, and you are currently saving for the down payment. You plan to save $10,000 at the end of the first year, and you anticipate that your annual savings will increase by 5% annually thereafter. Your expected annual return is 9%. How much will you have for a down payment at the end of Year 3? Do not round intermediate calculations. Round your answer to the nearest cent.
Answer:
It will have 34,351 available for a down payment at the end of Year 3
Explanation:
savings:
first year: 10,000
second year 10,000 + 5% = 10,000 x 1.05 = 10,500
third years (10,000 + 5%) + 5% = 10,500 x 1.05 = 11,025
return on Invetment
The first saving will capitalize for two years at 9%
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
First year: 10,000.00
time 2.00
rate 0.09
[tex]10000 \: (1+ 0.09)^{2} = Amount[/tex]
Amount 11,881.00
The second savings will capitalize for one yeat at 9%
Second year: 10,500.00
time 1.00
rate 0.09
[tex]10500 \: (1+ 0.09)^{1} = Amount[/tex]
Amount 11,445.00
Total amount:
11,881 + 11,445 + 11,025 = 34,351
Exercise 21-11 Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following. Units to be produced (by quarters): 10,400, 12,400, 14,200, 16,600. Direct labor: Time is 1.7 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.80; indirect labor $1.30; and maintenance $0.70. Fixed overhead costs per quarter: supervisory salaries $36,580; depreciation $17,620; and maintenance $13,700. Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, e.g. 1.25. List variable expenses before fixed expense.)
Answer:
Instructions are listed below
Explanation:
Giving the following information:
Units to be produced (by quarters): 10,400, 12,400, 14,200, 16,600. Direct labor: Time is 1.7 hours per unit.
Variable overhead costs per direct labor hour:
indirect materials $0.80;
indirect labor $1.30;
maintenance $0.70.
Fixed overhead costs per quarter: supervisory salaries $36,580; depreciation $17,620; and maintenance $13,700.
Manufacturing overhead budget:
First-quarter: (10400 units)
Indirect materials= (0.80*1.7)*10400= $14144
Indirect labor=(1.3*1.7)*10400= 22984
Maintenance= (0.70*1.7)*10400= 12376
Total variable cost= 49504
Fixed costs:
supervisory salaries= $36,580
depreciation= $17,620
maintenance= $13,700.
Total fixed cost= $67900
Total first quarter= $117,404
Second-quarter: (12400 units)
Indirect materials= (0.80*1.7)*12400 = $16864
Indirect labor=(1.3*1.7)*12400 = 27404
Maintenance= (0.70*1.7)*12400 = 14756
Total variable cost= 59024
Fixed costs:
Total fixed cost= $67900
Total cost second quarter= 126,924
Third-quarter: (14200 units)
Indirect materials= (0.80*1.7)*14200 = $19312
Indirect labor=(1.3*1.7)*14200 = 31382
Maintenance= (0.70*1.7)*14200 = 16898
Total variable cost= 67592
Fixed costs:
Total fixed cost= $67900
Total cost third quarter= 135492
Fourth quarter: (16600 units)
Indirect materials= (0.80*1.7)*16600 = $22576
Indirect labor=(1.3*1.7)*16600 = 36686
Maintenance= (0.70*1.7)*16600 = 19754
Total variable cost= 79016
Fixed costs:
Total fixed cost= $67900
Total cost fourth quarter= 146916
Total cost of the year= 117,404 + 126,924 + 135,492 + 146,916= $526,736
The manufacturing overhead budget for Atlanta Company is created by calculating the variable costs based on direct labor hours and then adding the fixed costs for each quarter to derive total costs.
Explanation:The preparation of the manufacturing overhead budget for Atlanta Company involves calculating both variable and fixed overhead costs for each quarter and summing them up to get the total costs. Variable costs are those that change with the level of production, such as indirect materials, indirect labor, and maintenance costs, and are calculated on a per direct labor hour basis. Fixed costs, such as supervisory salaries, depreciation, and maintenance, remain constant irrespective of the production levels.
For each quarter, the total variable overhead costs are calculated by multiplying the variable costs per direct labor hour by the total direct labor hours needed for production (units to be produced multiplied by the direct labor time per unit). Then, the fixed overhead costs are added to the total variable overhead costs to yield the total manufacturing overhead costs for the quarter.
Kangaroo Company had the following amounts on its balance sheet as of December 31, 2018: Inventory $325,000 Notes Payable 100,000 Cash 150,000 Common Stock 750,000 Net Property, Plant, & Equipment 600,000 Accounts Receivable 30,000 Accounts Payable 45,000 Retained Earnings ? What is the balance of retained earnings? 210,000 180,000 310,000 750,000
Answer:
The balance of retained earning is $210,000
Explanation:
In this question, we have to apply the accounting equation which is shown below:
Total assets = Total liabilities + shareholder's equity
where,
Total assets = Inventory + Cash + Net Property, Plant, & Equipment + Accounts Receivable
= $325,000 + $150,000 + $600,000 + $30,000
= $1,105,000
Total liabilities = Notes payable + account payable
= $100,000 + $45,000
= $145,000
And, the shareholder equity = Common stock + retained earnings
Now put these values to the above formula
So, the answer would be equal to
$1,105,000 = $145,000 + $750,000 + retained earnings
$1,105,000 = $895,000 + retained earnings
So, retained earnings = $210,000
The balance of retained earnings can be calculated using the formula: Retained Earnings = Beginning Retained Earnings + Net Income - Dividends. However, without information on net income or dividends, the precise balance cannot be determined.
Explanation:The balance of retained earnings can be calculated by adding the net income or profit for the year to the beginning balance of retained earnings and then subtracting any dividends paid. In this case, we don't have information on net income or dividends, but we can calculate retained earnings by using the formula:
Retained Earnings = Beginning Retained Earnings + Net Income - Dividends
Since we don't have the net income or dividends, we can't calculate the precise balance of retained earnings.
There is a 20 percent probability the economy will boom, 70 percent probability it will be normal, and a 10 percent probability of a recession. Stock A will return 18 percent in a boom, 11 percent in a normal economy, and lose 10 percent in a recession. Stock B will return 9 percent in boom, 7 percent in a normal economy, and 4 percent in a recession. Stock C will return 6 percent in a boom, 9 percent in a normal economy, and 13 percent in a recession. What is the expected return on a portfolio which is invested 20 percent in Stock A, 50 percent in Stock B, and 30 percent in Stock C
Answer:
8.65%
Explanation:
this question is solved taking two steps, lets first calculate the individual expected return per stock based on the probabilities of growing economy:
[tex]E(r)=P_{boom}*R_{boom}+P_{normal}*R_{normal}+P_{recession}*R_{recession}[/tex]
here E(r) represents the expected return of any stock based on the probability of boom, normal and recession in economy, and the return for each one of those states, so applying to this data we have:
Stock A
[tex]E(r)=20\%*18\%+70\%*11\%+10\%*10\%[/tex]
[tex]E(r)=12.3\%[/tex]
Stock B
[tex]E(r)=20\%*9\%+70\%*7\%+10\%*4\%[/tex]
[tex]E(r)=7.1\%[/tex]
Stock C
[tex]E(r)=20\%*6\%+70\%*9\%+10\%*13\%[/tex]
[tex]E(r)=8.3\%[/tex]
now we have to agregate for total portfolio the return, and this can be done using the next formula:
[tex]E(r)_{p}= E(r)_{A}*w_{A}+E(r)_{B}*w_{B} +E(r)_{C}*w_{C}[/tex]
where E(r) (A) for example represents the expected return of A stock and w(A) is the weight of A stock in total portafolio, so we have:
[tex]E(r)_{p}= 12.3\%*20\%+7.1\%*50\%+8.8\%*30\%[/tex]
[tex]E(r)_{p}= 8.65\%[/tex]
which of the following scenarios most accuratley reflects the concept of scarcity?
(A) john decides not to purchase a new bike.
(B) anna decides to spend her evening babysitting rather than spending time with friends
(C) ned pays his personal income taxes before the april deadline.
(D) morgan earns an a on her economics erxam
Answer: "(B) anna decides to spend her evening babysitting rather than spending time with friends" reflects the concept of scarcity.".
Explanation: Scarcity is the lack or insufficiency of resources needed to meet a need. This example demonstrates the scarcity of the labor resource.
Audits can be categorized into five types: (1) financial statement audits,(2) audits of internal control, (3) compliance audits, (4) operational audits,and (5) forensic audits.
Required:
For each of the following descriptions, indicate which type of audit (financial statement audit, audit of internal control, compliance audit, operational audit, or forensic audit) best characterizes the nature of the audit being conducted. Also indicate which type of auditor (external auditor, internal auditor, government auditor, or forensic auditor) is likely to perform the audit engagement.
a. Evaluate the policies and procedures of the Food and Drug Administration in terms of bringing new drugs to market.
b. Determine the fair presentation of Ajax Chemical’s balance sheet, income statement, and statement of cash
flows.
c. Review the payment procedures of the accounts payable department for a large manufacturer.
d. Examine the financial records of a division of a corporation to determine if any accounting irregularities have occurred.
e. Evaluate the feasibility of forecasted rental income for a planned low income public housing project.
f. Evaluate a company’s computer services department in terms of the efficient and effective use of corporate resources.
g. Audit the partnership tax return of a real estate development company.
h. Investigate the possibility of payroll fraud in a labor union pension fund.
Answer:
The list is as follows:
a. Evaluate the policies and procedures of the Food and Drug Administration in terms of bringing new drugs to market - Operational - Government
b. Determine the fair presentation of Ajax Chemical’s balance sheet, income statement, and statement of cash flows - Financial Statement - External
c. Review the payment procedures of the accounts payable department for a large manufacturer - Compliance or operational or possibly internal control - Internal or external
d. Examine the financial records of a division of a corporation to determine if any accounting irregularities have occurred - Forensic/Financial - Internal, external or forensic
e. Evaluate the feasibility of forecasted rental income for a planned low income public housing project - Operational - Government, external, or internal
f. Evaluate a company’s computer services department in terms of the efficient and effective use of corporate resources - Operational - Internal or external
g. Audit the partnership tax return of a real estate development company - Compliance - Government
h. Investigate the possibility of payroll fraud in a labor union pension fund - Compliance or forensic - Government, external, or forensic
The answer describes which types of the audit correspond to each description provided and indicates the type of auditor who would be responsible for conducting the audit. The audits can be compliance, financial statement, audit of internal control, operational, or forensic, with related auditors being external, internal, government, or forensic auditors.
Explanation:a. The description corresponds to a compliance audit, typically performed by a government auditor to determine whether the FDA is in compliance with laws and regulations.
b. This falls under a financial statement audit, conducted by an external auditor to ensure that all financial statements are accurately presented.
c. This is an audit of internal control, which could usually be performed by an internal auditor to assess the effectiveness of internal controls in the accounts payable department.
d. This is a type of forensic audit which will usually be conducted by a forensic auditor to determine if there have been any inconsistencies or fraud in the financial records.
e. This is an example of an operational audit, which is likely to be done by either a government auditor or internal auditor to review feasibility of income projections.
f. This scenario indicates an operational audit, looking specifically at the effective use of resources in the computer services department, typically conducted by an internal auditor.
g. This is usually categorized as a financial statement audit performed by an external auditor to verify the fairness and accuracy of the tax return.
h. This task is an example of a forensic audit often performed by a forensic auditor to uncover potential fraud in payroll accounting.
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In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. Each of the following questions is independent of the others.
Refer to the information provided above. David invests $40,000 for a one-fifth interest in the total capital of $220,000. What are the capital balances of Allen and Daniel after David is admitted into the partnership?
Allen Daniel
A) 160000 60000
B) 136000 36000
C) 140000 40000
D) 137000 39000
A. Option A
B. Option B
C. Option C
D. Option D
Answer:
D) 137000 39000
Explanation:
Allen 140,000
Daniel 40,000
Capital before admission 180,000
share ratio 3:1
Capital after admission:
180,000 + 40,000 = 220,000
David participation: 20%
220,000 x 20% = 44,000
David investment 40,000
goodwill: 4,000
There is a difference in goodwill which will be supported for the old partner as their current share ratio
Allen 4,000 x 3/4 = 3,000
Daniel 4,000 x 1/4 = 1,000
Capital after David admission:
140,000 - 3,000 = 137,000
40,000 - 1,000 = 39,000
In order to achieve trust in supply chain relationships, there must be a perception of fairness and justice from all supply chain members.
a. True
b. False
Answer: True
Explanation:
Yes, the given statement is true as, to achieve trust in the relationship of the supply chain then, it must be perception of justice and fairness from all the members of the supply chain.
It basically help to improve in the development and productivity of the organization by fair trade. The supply chain always monitor the labelled product and ensure its integrity towards their particular work.
Assume the following information pertaining to Moonbeam Company: Beginning Ending Finished goods inventory $ 140,500 $ 133,450 Work in process inventory 92,000 112,750 Direct materials 125,750 140,150 Costs incurred during the period are as follows: Total manufacturing costs $ 910,000 Factory overhead 206,000 Direct materials used 161,950 Materials purchases are calculated to be:
Answer:
The material purchase is $176,350
Explanation:
The computation of material purchase is to be done by applying the formula which is shown below:
= Direct material used + ending balance of direct materials - beginning balance of direct material
= $161,950 + $140,150 - $125,750
= $176,350
The other items which are mentioned in the question are irrelevant. Hence, it is not to be considered in the computation part.
The calculated materials purchases for Moonbeam Company total approximately (E) $176,350.
To calculate the materials purchases for Moonbeam Company, we start by using the formula:
Calculate the direct materials used:
Direct materials used = Beginning direct materials + Purchases - Ending direct materialsGiven:
Beginning direct materials = $125,750Ending direct materials = $140,150Direct materials used = $161,950Substitute into the formula:
$161,950 = $125,750 + Purchases - $140,150Simplify and solve for Purchases:
Purchases = $161,950 + $140,150 - $125,750Purchases = $176,350Therefore, the materials purchases for Moonbeam Company are $176,350.
Complete Question:
Assume the following information pertaining to Moonbeam Company:
Beginning Ending
Finished goods inventory $140,500 $133,450
Work in process inventory $92,000 $112,750
Direct materials $125,750 $140,150
Costs incurred during the period are as follows:
Total manufacturing costs $910,000
Factory overhead $206,000
Direct materials used $161,950
Materials purchases are calculated to be:
A. $147,850
B. $163,900
C. $156,250
D. $152,300
E. $176,350
Problem Page Watson Company's employees earn $290 per day and are paid on Friday for a five-day work week. This year, December 31 is a Thursday. If the appropriate adjusting entry is not made at the end of the year, what will be the effect on: (a) Income statement accounts (overstated, understated, or no effect)? (b) Net income (overstated, understated, or no effect)? (c) Balance sheet accounts (overstated, understated, or no effect)?
Answer:
inocme statment:
wages expense: understate
net income overstate
blanace sheet
wages payable: understate
Retained Earnings: overstate
Explanation:
If the adjusting entry is not made, then the expenses will be lower than it should.
Thereofre the net income will be overstate as there are more expenses but weren't recorded.
the balance sheet will not represent accurate the liabilities as there is wages payable which are not recorded.
also, in the blaance sheet the Retained Earnings account will be overstate as it include the net income which is overstate.
In the RST partnership, Ron's capital is $80,000, Stella's is $75,000, and Tiffany's is $50,000. They share income in a 3:2:1 ratio, respectively. Tiffany is retiring from the partnership. Each of the following questions is independent of the others.
Refer to the above information. Tiffany is paid $56,000, and all implied goodwill is recorded. What is the total amount of goodwill recorded?
A. $0
B. $6,000
C. $30,000
D. $36,000
Answer: Option (D) is correct.
Explanation:
Given that,
Ron's capital = $80,000
Stella's = $75,000
Tiffany's = $50,000
Income sharing ratio = 3:2:1
Tiffany is retiring from the partnership
Amount paid to Tiffany = $56,000
Bonus = Amount paid to Tiffany - Tiffany's capital
= $56,000 - $50,000
= $6,000
Above bonus is 1/6th of goodwill.
Therefore, the total amount of goodwill recorded would be:
Goodwill = [tex]\frac{6,000}{\frac{1}{6} }[/tex]
= $36,000
Julio Company purchased a $200,000 machine that has a four-year life and no salvage value. The company uses straight-line depreciation on all asset acquisitions and is subject to a 30% tax rate. The proper cash flow to show in a discounted-cash-flow analysis as occurring at time 0 would be:
(A) $15,000.
(B) $50,000.
(C) $140,000.
(D) $35,000.
(E) $200,000.
Answer: The correct answer is "(E) $200,000.".
The proper cash flow to show in a discounted-cash-flow analysis as occurring at time 0 would be: "(E) $200,000.".
Explanation: At time 0, the course of time does not occur therefore there is no discount.
At the beginning of the year (January 1), Buffalo Drilling has $10,000 of common stock outstanding and retained earnings of $7,000. During the year, Buffalo reports net income of $7,300 and pays dividends of $2,000. In addition, Buffalo issues additional common stock for $6,800.Prepare the statement of Shareholer'sequity in the end of the year.
Answer:
Shareholders Equity
INITIAL Shareholders Equity $ 17.000
Common Stock $ 6.800
Retained Earnings $ 5.300
FINAL Shareholders Equity $ 29.100
Explanation:
Retained Earnings Report
Opening retained earnings $ 7,000
Add: Net Income $ 7,300
Subtotal $ 14,300
Less: Dividens -$ 2,000
Total $ 12,300
Stockholders' Equity INITIAL FINAL
Common Stock $ 10,000 $ 16,800
Retained Earnings $ 7,000 $ 12,300
TOTAL EQUITY $ 17,000 $ 29,100
At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $309,000 and $600 (credit) in Allowance for Uncollectible Accounts. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. Bad debt expense for the year should be:
Answer:
Bad debt expense for the year should be: $14.850
Explanation:
Balance
Accounts Receivable $ 309.000
Allowance for Uncollectible Accounts $ 600
Suggestion
Allowance for Uncollectible Accounts 5%
Allowance for Uncollectible Accounts $15.450
Complement
Bad debt expense $ 14.850
Allowance for Uncollectible Accounts $ 14.850
Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $4.25 . Michelle was willing to pay up to $7.75 for the cappuccino and Paul's Cafe and Bakery was willing to accept $0.75 for the cappuccino. Based on this information, answer the questions.
(a) Michelle's consumer surplus: $ ____
(b) Paul's Cafe and Bakery's producer surplus: $ ____
Answer:
a. Michelle's consumer surplus: $3.5
b. Paul's Cafe and Bakery producer surplus: $3.5
Explanation:
This one is simple I attached a graphic so you can understand me better:
The consumer surplus is just the difference between the price payed and the price willed to pay by the consumer, in this case the price payed was $4.25 but Michelle was willing to pay up to $7.75 so we just substract this numbers
7.75 - 4.25 = 3.5
Same for the producer surplus which is the difference between the price the consumer pay and the price that the producer was willing to accept.
4.25 - 0.75 = 3.5
Michelle's consumer surplus is $3.50 and Paul's Cafe and Bakery's producer surplus is also $3.50.
Explanation:In the context of this question, the consumer surplus refers to the difference between the maximum price a consumer is willing to pay and the actual price paid. Similarly, the producer surplus is the difference between the lowest price at which a producer is willing to sell a product and the actual price received.
Therefore, in Michelle's case:
(a) Consumer Surplus = Willingness to pay - Actual price = $7.75 - $4.25 = $3.50(b) For Paul's Cafe and Bakery, Producer Surplus = Actual price - Cost of production = $4.25 - $0.75 = $3.50Learn more about Surplus here:https://brainly.com/question/35248992
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Salt Corporation's contribution margin ratio is 75% and its fixed monthly expenses are $55,000. Assume that the company's sales for May are expected to be $114,000. Required: Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change.
Answer:
The company's net operating income for May is $30,500
Explanation:
For computing the net operating income, first, we have to compute the contribution by applying the contribution margin formula. The formula is shown below:
Contribution margin = (Contribution ÷ Sales)
75% = (Contribution ÷ $114,000)
So contribution would be equal to
= $114,000 × 75%
= $85,500
And the fixed expenses are $55,000
So, the net operating income equal to
= Contribution - fixed expenses
= $85,500 - $55,000
= $30,500
To estimate Salt Corporation's net operating income for May, the contribution margin ratio of 75% can be used to calculate the variable expenses. By subtracting the variable and fixed expenses from the sales, the net operating income is determined to be $30,500.
Explanation:To estimate Salt Corporation's net operating income for May, we can use the formula:
Net Operating Income = Sales - (Variable Expenses + Fixed Expenses)
The contribution margin ratio is 75%, so the variable expenses can be calculated as (Sales * 0.25). Given that the fixed expenses are $55,000, and the expected sales for May are $114,000, we can substitute the values into the formula:
Net Operating Income = $114,000 - (($114,000 * 0.25) + $55,000)
Simplifying the equation gives:
Net Operating Income = $114,000 - ($28,500 + $55,000)
Net Operating Income = $114,000 - $83,500
Net Operating Income = $30,500
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Lucas Co. has a job-order cost system. For the month of April, the following debits (credits) appeared in the general ledger account, work-in-process: April 1 Balance $ 24,000 30 Direct materials 80,000 30 Direct labor 60,000 30 Factory overhead 54,000 30 To finished goods (200,000) Lucas applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 100, the only job still in process at the end of April, has been charged with factory overhead of $4,500. The amount of direct materials charged to Job No. 100 was
To find the amount of direct materials charged to Job No. 100, you need to calculate the total direct materials used in April and allocate it proportionally to the jobs. Based on the provided information, the amount of direct materials charged to Job No. 100 is $56,000.
Explanation:In a job-order cost system, direct materials are charged to each specific job. To find the amount of direct materials charged to Job No. 100, we need to calculate the total direct materials used in the month of April and allocate it proportionally to the jobs.
Based on the information provided:
Total direct materials used in April = Direct materials debited in general ledger - Initial balance = $80,000 - $24,000 = $56,000Total direct labor cost in April = $60,000Factory overhead applied to Job No. 100 = $4,500To find the amount of direct materials charged to Job No. 100, we can use the predetermined overhead rate:
Direct materials charged to Job No. 100 = Total direct materials used in April × (Direct labor cost of Job No. 100 / Total direct labor cost in April)
Direct materials charged to Job No. 100 = $56,000 × ($60,000 / $60,000) = $56,000
Final answer:
To calculate the amount of direct materials charged to Job No. 100, we would typically subtract direct labor and factory overhead from the ending work-in-process inventory and to finished goods costs. However, not all necessary figures are provided in the question.
Explanation:
The student is asking how to calculate the amount of direct materials charged to Job No. 100 given factory overhead and a predetermined overhead rate based on direct labor cost. Lucas Co. applies overhead to production at a predetermined rate of 90% of direct labor cost. Since Job No. 100 was charged with $4,500 in factory overhead, we find the direct labor cost by dividing the factory overhead by the predetermined rate:
$4,500 ÷ 0.90 = $5,000 (direct labor cost for Job No. 100)
To find the direct materials cost, we use the information on the job-order cost system and the fact that the ending balance of work-in-process inventory will consist of the direct materials, direct labor, and applied overhead for Job no. 100. Given that Job No. 100 is the only job still in process, we need to use the following equation:
Ending Work-in-Process Inventory = Beginning Balance + Direct Materials + Direct Labor + Factory Overhead - To Finished Goods
Since we're solving for Direct Materials in this case and we have all other values, we can rearrange the equation:
Direct Materials charged to Job No. 100 = Ending Work-in-Process Inventory + To Finished Goods - Beginning Balance - Direct Labor (already found) - Factory Overhead (already found)
However, the question does not provide all of the necessary figures to find the ending balance of work-in-process or the total charges to finished goods for the period; additional information is needed to answer this calculation.
Stimpleton Company engages in the following cash payments:
Purchase equipment $4,000
Pay rent 700
Repay loan to the bank 5,900
Pay workers' salaries 1,050
What is the total amount of cash paid for operating activities?
A.$1,750
B.$4,000
C.$6,950
D.$9,900
Answer:
A. $ 1.750
Explanation:
from the given infomation, the operating activities are:
1. pay rent = $ 700
2. pay workers salaries = $ 1.050
The total cash paid fpr operating activities = $ 700 + $ 1.050
= $ 1.750
Therefore, the total amount of cash paid for operating activities is $ 1.750.
The total cash paid for operating activities by Stimpleton Company is $1,750, which includes rent and workers' salaries, as purchase of equipment and loan repayment are not operating activities.
Explanation:The total amount of cash paid for operating activities by Stimpleton Company can be calculated by adding up only those expenses that are related to the company's primary operations. In this case, that includes the payment of rent and salaries to workers. The purchase of equipment and repayment of a loan are not considered operating activities; these are investing and financing activities, respectively. To find the total, we sum the rent payment of $700 and the workers' salaries of $1,050 which equals $1,750 (Option A).
Current information for the Stellar Corporation follows:
Beginning work in process inventory $ 34,900
Ending work in process inventory 36,300
Direct materials 164,000
Direct labor 102,000
Total factory overhead 80,100
Stellar Corporation's Cost of Goods Manufactured for the year is:
(A) $346,100
(B) $347,500
(C) $381,000
(D) $309,800
Final answer:
To find the Cost of Goods Manufactured, we add Direct Materials, Direct Labor, Total Factory Overhead, and the beginning work in process inventory, then subtract the ending work in process inventory. The calculation yields $344,700, which does not match any of the provided answers. It is possible there is a typo in the options or an error in the question's calculations.
Explanation:
To calculate Stellar Corporation's Cost of Goods Manufactured (COGM), we will add up all manufacturing costs and then adjust for the change in work in process inventory:
Begin with the total of Direct Materials, Direct Labor, and Total Factory Overhead.
Add the beginning work in process inventory.
Subtract the ending work in process inventory to find the COGM.
Thus, the calculation is:
Direct Materials ($164,000) + Direct Labor ($102,000) + Total Factory Overhead ($80,100) + Beginning work in process inventory ($34,900) - Ending work in process inventory ($36,300) = COGM
$164,000 + $102,000 + $80,100 + $34,900 - $36,300 = $344,700
Therefore, none of the options provided (A) $346,100, (B) $347,500, (C) $381,000, (D) $309,800 precisely match the calculated COGM of $344,700. There might be a typo in the options or a mistake in the calculations within the question. It is important to double-check the calculations and the given answer choices.
On June 1, 20x1, ABC Corp. invested $250,000 into a certificate of deposit for 9-months, earning 9% APR. Principal and interest will be received at maturity on March 1, 20x2. ABC's year end is December 31st. At year end, the appropriate adjusting journal entry was recorded to accrue interest. To record the appropriate journal entry at maturity on March 1, 20x2 for receipt of principal plus interest at maturity, ABC would:
Answer:
note payable 250,000
interest payable 13,125
interest expense 3,750
cash 266,875
to record payment of note at maturirty
Explanation:
June 20X1
250,000 at 9% annual rate
At december 31th the company accrued the interest from June 1st to December 31th
That is 7 months.
250,000 x 9% x 7/12 = 13,125 accrued interest for the year ended X1
Then, on March 1st The company accrued the remaining two months.
250,000 x 0.09 x 2/12 = 3,750
The company will record on March 1st:
The write-off of the principal
The payment of the accrued interest for the previous year
The accrued interest for the period
the cash disbursement to settle all these obligation:
note payable 250,000
interest payable 13,125
interest expense 3,750
cash 266,875
to record payment of note at maturirty
At Backstreet Books, Inc., the department manager uses a hand-held scanner to determine the quantity of each best seller the bookstore has on its shelves, how many copies of each book was sold the past week and the past month, and exactly when the next shipment of these books is expected to arrive. Backstreet Books embraces the strategy of _______.
Answer: Using technology
Explanation: The backstreet books is using technology to say aware of the needs of customers and make their business operations more fast.
In the given case, the company is using the scanner so that they can keep records of inventory and sales they made. They are using the technological advancement in their business operations for running the activities more efficiently.
The use of scanner for inventory and best selling book records will help the company to keep up with the demand of customers and also helps in future planning.
Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you received your salary of $52,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 10 percent of your annual salary in an account that will earn 9.2 percent per year. Your salary will increase at 3 percent per year throughout your career. How much money will you have on the date of your retirement 40 years from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
FV = 2,621,048.23
Explanation:
we will calcualte the future value of an annuity with an geometric progression:
[tex]\frac{(1+r)^{n} -(1+q)^{n}}{r - q} = FV[/tex]
g 0.03
r 0.092
C 5,356 ( we will save next year (52,000 x 1.03) the 10% )
n 39 (we start saving next year)
[tex]\frac{(1+0.092)^{39} -(1+0.03)^{39}}{0.092 - 0.03} = FV[/tex]
FV = 2,400,227.319
As we deposit at the first day of the year this will be an annuity-due so we will multiply by (1 +r)
FV = 2,621,048.23
Answer:
the answer is $2 830 830. 09
Explanation:
The first thing to calculate is the growth of salary o fwhich it grows by 3%
$52000*1.03=53560
The for the first year of saving we calculate the portion to be saved
53560*0.1= 5356
in order to find the future value of savings we will use the pv of perpetuity to find the value of the deposit today
PV = C{(1/(r-g)) - (1/(r-g)*(1+g)/(1+r)^t}
=5356*{(1/0.092-0.03) - (1/(0.092-0.03)*(1.03)/(1.092)^40}
=83754.52289
Then from the PV we can calculate the future value as
FV = 83754.52289 *(1.092)^40
=2 830 830 .09
Which of the following statements is correct? rev: 05_15_2018 Multiple Choice Both perfectly competitive and monopolistic firms are price takers. A perfectly competitive firm is a price taker, while a pure monopoly is a price maker. Both perfectly competitive and monopolistic firms are price makers. A perfectly competitive firm is a price maker, while a pure monopoly is a price taker.
Answer:
The correct answer is the second statement.
Explanation:
Perfect competition is the market structure where there is a large number of buyers and sellers. These firms produce homogenous products. This type of market has no restriction on entry and exit of firms in the market. There are so many buyers and sellers that any single buyer or seller is not able to influence the price or output. So, the firms are price takers.
Monopoly is a market structure where there is only a single seller. There is a restriction on entry and exit of new firms in the market. Because of being the only producer in the market, a pure monopoly firm is able to fix price on its own. So, it faces a downward-sloping demand curve. The price and output are determined at the point where marginal revenue is equal to marginal cost.
You are saving for the college education of your two children. They are two years apart in age; one will begin college 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $40,000 per year per child, payable at the beginning of each school year. The appropriate interest rate is 7 percent. Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. Assume four years of college for each child. How much money must you deposit in an account each year to fund your children’s education?
Answer:
It will deposit $ 10,082.68 per yearto fund their children tuiton
Explanation:
We calculate the present value of the tuiton:
We must notice payment are made atthe beginning of the year. So this will be an annuity-due
[tex]C \times \frac{1-(1+r)^{-time} }{rate}(1+r) = PV\\[/tex]
C 40,000 per year
time 4 year
rate 7% = 7/100 = 0.07
[tex]40000 \times \frac{1-(1+0.07)^{-4} }{0.07} (1+0.07) = PV\\[/tex]
PV $144,972.6418
we round to 144,972.64
Then, we have two children and we stop the payment when the oldest children goes into college.
so one tuiton must be carryied two years into the future:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal $144,972.64
time 2 years
rate 0.07000
[tex]144972.64 \: (1+ 0.07)^{2} = Amount[/tex]
Amount 165,979.18
We add both to get the total value of our fund:
144,972.64 + 165,979.18 = 310,951.82 = 310,952
Finally we calculate the couta of this annuity for 17 years
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]
PV $310,952.00
time 17 years
rate 7% = 0.07
[tex]310952 \times \frac{1-(1+0.07)^{-17} }{0.07} = C\\[/tex]
C $ 10,082.68
Based o the fact that there are two children involved and the annual savings have to be uniform, the annual amount to fund your children's education will be $10,808.
How much should you deposit yearly?The amount needed for both children is:
= 2 students x ( College expenses x Present value factor for Annuity due, 7%, 4 years)
= 2 x (40,000 x 3.6243)
= $271,597
This is the total amount to be saved so the amount to be saved yearly is:
271,597 = Amount x ( ( 1 + 7%)¹⁵ - 1) / 7%
Amount = 271,597 / 25.1290
= $10,808
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You paid $713 last year for a zero-coupon bond that promised to pay you $1,000 at the end of 5 years. Rather than hold it for the remaining four years, you have decided to sell it today. The prevailing effective annual interest rate is 9%. To the nearest dollar, what price do you expect to get for your bond?
Answer:
The bond today will be valued at 708.4252
Explanation:
The price for the bond will be the present value of 1,000 at the current market rate of 9%
We will use the present value of a lump sum to calculate this:
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 1,000 dollars
time 4 years
rate 9% = 9/100 = 0.09
[tex]\frac{1000}{(1 + 0.09)^{4} } = PV[/tex]
PV $708.4252
This will be the expected market value for the bond.