Taco Hut purchased equipment on May 1, 2018, for $15,000. Residual value at the end of an estimated 8-year service life is expected to be $4,000.

Calculate depreciation expense using the straight-line method for 2018 and 2019, assuming a December 31 year-end. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar.)

Answers

Answer 1

Answer:

2018: 8 months

Depreciation= $916,67

2019: full year

Depreciation= $1375

Explanation:

Giving the following information:

Taco Hut purchased equipment on May 1, 2018.

Price:  $15,000.

Residual value: $4,000

Useful life: 8 year

We need to calculate the depreciation for 2018 and 2019 using straight-line method:

Depreciation= (purchase price- residual value)/useful life

Depreciation= (15000-4000)/8= $1375

2018: 8 months

Depreciation=(1375/12)*8= 916,67

2019: full year

Depreciation= $1375


Related Questions

Swifty's Market used the perpetual method to record the following events involving a recent purchase of inventory:

Received goods for $118000, terms 2/8, n/30.
Returned $2300 of the shipment for credit.
Paid $300 freight on the shipment.
Paid the invoice within the discount period.

As a result of these events, the company's inventory

Answers

Answer:

The company's inventory is $113,686

Explanation:

The computation of the company inventory is shown below:

= Purchase of inventory - returned goods - discount of net purchase + freight expenses

= {$118,000 - $2,300 -  2% × (118,000 - $2,300) + $300}

= {$115,700 - $2,314 + $300}

= $113,686

It is already mentioned in the question that the invoice amount is paid with the discount period so we apply the discount rate

Choose from any list or enter any number in the input fields and then click Check Answer. 6 parts remaining More Info a. The business has interest expense of $ 3 comma 600 that it must pay early in January 2021. b. Interest revenue of ​$4 comma 800 has been earned but not yet received. c. On July ​1, 2020​, when the business collected ​$12 comma 600 rent in​ advance, it debited Cash and credited Unearned Rent Revenue. The tenant was paying for two​ years' rent. d. Salary expense is ​$6 comma 400 per daylong dashMonday through Fridaylong dashand the business pays employees each Friday. This​ year, December 31 falls on a Thursday. e. The unadjusted balance of the Supplies account is ​$3 comma 500. The total cost of supplies on hand is $ 1 comma 600. f. Equipment was purchased on January 1 of this year at a cost of ​$160 comma 000. The​ equipment's useful life is five years. There is no residual value. Record depreciation for this year and then determine the​ equipment's book value.

Answers

Final answer:

The question discusses various accounting entries, including depreciation of equipment, which is calculated using the straight-line method for a $160,000 equipment with a 5-year life and no residual value, giving a yearly depreciation of $32,000 and a book value of $128,000 at year-end.

Explanation:

The question involves various aspects of business accounting, including interest expense and revenue, advance payments, salary expenses, supply costs, and depreciation of equipment. Each part requires a specific accounting treatment to reflect the true financial position of the business at year-end. We will specifically discuss the depreciation of equipment as part of our example.

Depreciation of Equipment

For the equipment purchased at the beginning of the year with a cost of $160,000 and a useful life of five years with no residual value, the annual depreciation expense would be calculated using the straight-line method. This method evenly spreads the cost of the asset over its useful life. Thus, the annual depreciation expense is $32,000 ($160,000 / 5 years). The book value of the equipment at the end of the year would be $128,000 ($160,000 - $32,000).

Key Takeaways

It is crucial to record depreciation to reflect the usage and the reduced value of assets over time.

Accurate record-keeping ensures that financial statements present a true view of the company's financial health.

Understanding such basic principles is foundational for anyone studying business or accounting.

What is a teaming agreement? An agreement that will force both the vendor and customer to work together An agreement designed to allow vendors to work together without fear of exposing secrets A secret agreement between the vendor and customer An agreement between two teams who are not working together

Answers

Answer: An agreement between two teams who are not working together

Explanation: A teaming agreement refers to the agreement made by two or more individual corporations to work together.

Usually these agreement are made by the leading entities of an industry to bid on Government contract, so that there will be less competition and everyone gets the fair share in profit.

Such agreements are considered totally legal so the companies do not need to keep it in any secrecy.

Hence from the above we can conclude that statement 4 is correct.

Final answer:

A teaming agreement is a formal contract made between two or more organizations who agree to combine their resources and capabilities to work together on a specific project, usually one that is contract-based. These agreements provide various benefits like accessing broader markets, sharing of skills, and reducing costs and risks. The terms of the agreement define the relationship and responsibilities of the parties involved.

Explanation:

A Teaming Agreement is a formal contract between two or more organizations who agree to work together on a specific project, often one that is contract-based. It's often used in industries like government contracting, where companies with complementary capabilities can combine their resources to bid on larger projects. These agreements are designed to create synergies and shared benefits, such as accessing broader markets, sharing resources and skills, and reducing risk and cost.

Typically, one company acts as the principal or lead and the others as team members, and each member contributes different skills or capabilities, aligned to the overall objective of the project. The terms and conditions of the teaming agreement will define the relationship between the parties, including their duties and responsibilities, the sharing of profits and losses, the handling of confidential information, and various other project-specific parameters. It's not intended to force parties to work together, or to be secretive agreements, but are open and clear contracts that enable beneficial partnerships.

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The capital budgeting method which calculates the expected monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time using the required rate of return is the:
a. payback method
b. accrual accounting rate-of-return method
c. sensitivity method
d. net present value method

Answers

Answer:

d. net present value method

Explanation:

There are various methods in capital budgeting:

1. Payback period: It refers to the period in which the initial investment amount should be recovered. It is denoted in years

2. Accrual accounting rate-of-return method: In this method, the recording of the transactions should be done based on an accrual basis which means whether the amount is received or not but it is recorded in the books of accounts.

3. Sensitivity method is not covered under capital budgeting method

4. Net present value method: In this method, the initial investment is subtracted from the discounted present value cash inflows. If the amount comes in positive than the project is beneficial for the company otherwise not.

So, the option d is correct.

The method that calculates the expected monetary gain or loss by discounting all future cash inflows and outflows to the present point in time using the required rate of return is the Net Present Value method. It recognizes the time value of money, considering that a dollar in the future is worth less than a dollar today.

The capital budgeting method which calculates the expected monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time using the required rate of return is the: d. net present value method. Specifically, the Net Present Value (NPV) method helps you to determine the value of a project in terms of today's dollars.

This method takes into account the time value of money, which is the principle that a dollar received in the future is worth less than a dollar received today because the dollar received today can be invested and earn interest. In other words, it recognizes that the purchasing power of money decreases over time due to inflation and other factors. The NPV method presents the difference between the present value of cash inflows and the present value of initial investment.

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Megan was employed by a large company. Her supervisor told her to falsify government reports. She refused and was fired. She sued for wrongful discharge. Her employer claimed that, since Megan was an at-will employee, she had no legal right to claim the company was liable for damages. Is the employer right?

Answers

Answer:

The employer is not right

Explanation:

An at-will employment under US law allows an employer to terminate any an at will -without having to state any reason for the same. The employee will have to leave his position in the company at once.

There is, however, an exception to this law. At-will employees can be fired under any circumstances but not for illegal reasons. If employer is terminating an employee based on illegal reasons such as discrimination based on color or race, or for reporting illegal activity carried out by the company, the employee can sue the employer.

In this case, Megan was terminated as she refused to falsify government reports. It is an illegal activity and she cannot be terminated stating that she was an at-will employee.

So, Megan can sue the employer for wrongful discharge and employer was not right on his part.

Final answer:

An employer cannot claim that an at-will employee has no legal right to sue for wrongful discharge if the employee was fired for refusing to engage in illegal activities. The employer's actions would violate the employee's rights under Title VII of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, religion, sex, or national origin.

Explanation:

An employer cannot claim that an at-will employee has no legal right to sue for wrongful discharge if the employee was fired for refusing to engage in illegal activities, such as falsifying government reports. The employer's actions would violate the employee's rights under Title VII of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, religion, sex, or national origin. Firing an employee for refusing to participate in illegal activities is considered a violation of public policy, even for at-will employees.

In the case of Megan, if she was fired for refusing to falsify government reports, she may have grounds to sue for wrongful discharge. The employer's claim that Megan had no legal right to claim liability for damages is not valid in this situation. Megan can argue that her termination was a violation of public policy, and she should be able to seek legal action.

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On April 1, 2016, Alpha Company issued $500,000 of 12%, 10-year bonds. The bonds, which were issued at 103, pay interest on October 1 and April 1. Use this information to prepare the General Journal entry (without explanation) to record the April 1, 2016 bond issue. If no entry is required then write "No Entry Required."

Answers

Answer:

cash             515,000 debit

    bonds payable             500,000 credit

    Premium on Bonds         15,000 credit

Explanation:

to know the cash proceeds fro mthe issuance of the bonds we will multiply the face value by the point issued:

500,000 x 103 / 100 = 515,000

As the amount collected is higher than face value we reocgnize a Premium on Bonds Payable for the difference:

515,000 - 500,000 = 15,000

The Finishing Department of Parker and King​, ​Inc., the last department in the manufacturing​ process, incurred production costs of $ 180 comma 000 during the month of June. If the June 1 balance in​ Work-in-Process Inventorylong dashFinishing is​ $0 and the June 30 balance is $ 45 comma 000​, what amount was transferred to Finished Goods​ Inventory

Answers

Answer:

transferred-out 135,000

Explanation:

We solve using the following identity:

beginning WIP + cost added during the period:

total cost to be accounted for.

Then this value can be either ransferred-out r remain at the ending WIP

so we construct as follows:

beginning                     0

added                180,000

Total cost           180,000

ending              (45,000)  

transferred-out 135,000

Final answer:

The amount transferred to Finished Goods Inventory for Parker and King, Inc. during June is $135,000, computed by subtracting the ending Work-in-Process Inventory balance of $45,000 from the production costs incurred of $180,000.

Explanation:

The question involves calculating the cost of goods that were completed during the month and transferred from the Finishing Department's Work-in-Process Inventory to Finished Goods Inventory. The production cost incurred by the Finishing Department of Parker and King, Inc. was $180,000 for June. With a starting balance of $0 in Work-in-Process Inventory on June 1 and an ending balance of $45,000 on June 30, we can determine the cost of goods transferred to Finished Goods Inventory.

Calculation-

Cost of Goods Manufactured = Starting Work-in-Process + Production Costs Incurred - Ending Work-in-Process

Cost of Goods Manufactured = $0 + $180,000 - $45,000

Cost of Goods Manufactured = $180,000 - $45,000\

Cost of Goods Manufactured = $135,000

Therefore, $135,000 was transferred to Finished Goods Inventory during June.

The present value of an annuity is the sum of the discounted value of all future cash flows.

You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate.

(A) An annuity that pays $1, 000 at the beginning of each year
(B) An annuity that pays $1, 000 at the end of each year
(C) An annuity that pays $500 at the end of every six months
(D) An annuity that pays $500 at the beginning of every six months

Answers

Answer:

Ans. The best choice is:

A) An annuity that pays $1, 000 at the beginning of each year (PV=$6,759.02 with a discount rate of 10% annual)

Explanation:

Hi, well, I think that the best way of explaing is by discussing  each option. In order to be alot more clear in the emplanation, let´s consider a 10% annual discount rate for all cases:

(A) $1, 000 at the beginning of each year, for 10 years

This is pretty straight forward, but please consider this, one of the payments is made in the present, therefore, when calculating the present value of the annuity, do not use 10 periods, use 9 and add 1000 to this calculation, everything should look like this.

[tex]PV=1000+\frac{1000((1+0.1)^{9}-1) }{0.1(1+0.1)^{9} } =6759.02[/tex]

(B) $1, 000 at the end of each year, for 10 years

We do the same as we did in A), but this time, we count 10 annuities and we don´t add 1000 at the beginning. Everything should look like this.

[tex]PV=\frac{1000((1+0.1)^{10}-1) }{0.1(1+0.1)^{10} } =6144.57[/tex]

(C)  $500 at the end of every six months, for 20 semesters

This option requires that we transform the rate (10% Effective annual) into semi-annual terms. That is as follows.

[tex]r(Semi-annual)=(1+r(Annual))^{\frac{1}{2} } -1[/tex]

Therefore

[tex]r(Semi-annual)=(1+0.1))^{\frac{1}{2} } -1=0.0488[/tex]

Now, this is our discount rate, the one we need to use if the payments are made every six months. Let´s see how the math to this should look like.

[tex]PV=\frac{500((1+0.0488)^{20}-1) }{0.0488(1+0.0488)^{20} } =6294.52[/tex]

(D) $500 at the beginning of every six months, for 20 semesters (10 years)

We need to use the discount rate of C) (4.88% semi-annual), but the process is just like in A)

[tex]PV=500+\frac{500((1+0.0488)^{19}-1) }{0.0488(1+0.0488)^{19} } =6601.75[/tex]

Best of Luck.

In the ABC partnership (to which Daniel seeks admittance), the capital balances of Albert, Bert, and Connell, who share income in the ratio of 5:3:2 are:

Albert 500000
Bert 300000
Connell 200000

Based on the preceding information, if no goodwill or bonus is recorded, how much should Daniel invest for a 20 percent interest?
A. $400,000
B. $200,000
C. $300,000
D. $250,000

Answers

Answer:

D. $ 250,000

Explanation:

The total capital of Albert, Bert and Conell is:

$500000 + $300000 + $200000 = $1000000

given that Daniel will have 20% share in partnership.

So total capital of the partnership after admission of Daniel will be calculated as follows:

($1000000×100)/80 = $ 1250000

Daniel will invest:

$1250000 – $1000000 = $250,000

Final answer:

Daniel should invest $200,000 to acquire a 20% interest in the ABC partnership, given the current capital balances of the partners and his desired income ratio.

Explanation:

In the ABC partnership, the current capital balance sums up to $500,000 (Albert) + $300,000 (Bert) + $200,000 (Connell) = $1,000,000. If Daniel seeks for a 20% interest, this implies that he is purchasing 20% of the total value of the partnership. Therefore,  he must invest $1,000,000 * 20% = $200,000. This is the level of capital contribution needed from Daniel for a 20% stake in the partnership with no goodwill contribution or bonus recorded.

Therefore, the correct answer is B. $200,000.

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The ABC Company is planning a new product line and a new plant to produce the parts for the line. The product line will include 8 different models. Annual production of each model is expected to be 900 units. Each product will be assembled of 180 components. All processing of parts will be accomplished in the new plant. On average, 6 processing operations are required to produce each component, and each operation takes an average of 1.0 min (including an allowance for setup time and part handling). All processing operations are performed at workstations, each of which includes a production machine and a human worker. The plant operates one shift. Determine the number of (a) components, (b) processing operations, and (c) workers that will be needed to accomplish the processing operations if each worker works 2000 hr/yr.

Answers

Answer:

1,296,000 components

7,776,000 operations

65 workers

Explanation:

Eight models 900 units each

Each product assembled of 180 component

Six operation to produce each component and each operation takes 1 minute.

All  operations is done with a machine and a human worker

The plan operates one shift (8 hours)

Total components needed

900 units x 8 models x 180 components = 1,296,000 components

Processing operations:

Components x  operation per components

1,296,000 x 6 = 7,776,000  operations

Worker needed:

7,776,000 x 1 minutes each / 60 minutes per hour / 2,000 hours per worker a year = 64.8 workers = 65  

ABC Company will need a total of 1,296,000 components, 7,776,000 processing operations, and 65 workers to meet their annual production goals for their new product line.

To determine the requirements for the ABC Company's new product line, we need to compute the number of components, processing operations, and workers needed.

(a) Number of Components

The product line includes 8 models with each model having an annual production of 900 units. Each product is assembled from 180 components. Therefore:

Total number of components per model per year = 900 units/model * 180 components/unit = 162,000 components/model/year

For 8 models, the total is:

Total components per year = 162,000 components/model/year * 8 models = 1,296,000 components/year

(b) Number of Processing Operations

On average, each component requires 6 processing operations. Therefore:

Total processing operations = 1,296,000 components/year * 6 operations/component = 7,776,000 operations/year

(c) Number of Workers

Each operation takes 1 minute. Converting this to hours and considering a worker works 2000 hours per year, we get:

Total hours needed = 7,776,000 operations/year * 1 minute/operation * 1 hour/60 minutes = 129,600 hours/year

Number of workers needed = 129,600 hours/year / 2000 hours/worker/year = 64.8 workers

As we need whole workers, we round up to:

64.8 workers → 65 workers

You are head of the Schwartz Family Endowment for the Arts. You have decided to fund an arts school in the San Francisco Bay area in perpetuity. Every 3 ​years, you will give the school $ 1 comma 000 comma 000. The first payment will occur 3 years from today. If the interest rate is 10.1 % per​ year, what is the present value of your​ gift?

Answers

Final answer:

The present value of a perpetuity where $1,000,000 is given every three years at a 10.1% interest rate is $9,900,990.10.

Explanation:

The question asks us to calculate the present value of a perpetual gift that involves payments every three years starting from three years from today, with an interest rate of 10.1% per year. This type of problem uses the present value formula for annuities to discount the value of future payments to determine their worth in today's dollars.



To find the present value (PV), we use the formula:

PV = P * (1 - (1 + r)^-n) / r



Where:

P is the payment amount ($1,000,000)

r is the interest rate per period (0.101)

n is the number of periods. Since the payments are perpetually made every three years, n approaches infinity.

In such a case, the formula simplifies to:

PV = P / r



Thus, the present value of the gift is:

PV = $1,000,000 / 0.101



Calculating this gives us:

PV = $9,900,990.10



This is the present value of the perpetual gift to be given to the arts school.

Which of the following statements is true of semiglobalization?
a. It is more complex than extremes of total isolation and total globalization.
b. It is a measure used for assessing and classifying risks.
c. It is about limiting oneself to one's home country.
d. It is recent and one-directional.

Answers

Answer:

a.

Explanation:

The definition of Semi-Globalization is:

Semi-globalization covers the range of situations in which neither the barriers nor the links among markets in different countries can be neglected.

Now let's analize the statements.

a- True, It is more complex than total isolation and total globalization, as those barriers can't be taken off the equation.

b. It is not used for assessing and classifying risks.

c. No, that would be isolation. In here we are talking about an incomplete cross-border integration.

d. It is not one-directional. The borders and links are multi-directional.

Final answer:

The true statement about semi globalization is that it is more complex than total isolation or total globalization, as the world operates in a state between interconnectedness and independence. The correct answer is: a. It is more complex than extremes of total isolation and total globalization.

Explanation:

Semi globalization acknowledges that while countries are increasingly interconnected and interdependent through trade, investment, and information technology, the world is not entirely globalized. Factors such as regulations, cultural differences, and political boundaries still play a significant role in shaping global interactions.

In a semi globalized world, nations are neither fully isolated nor entirely integrated, and companies must navigate between adapting their practices to local conditions and harmonizing them across borders to exploit global efficiencies. This middle ground is indeed more complex than dealing with either total isolation or total globalization.

Among the given statements, the true one regarding semi globalization is: It is more complex than extremes of total isolation and total globalization.

The SRT partnership agreement specifies that partnership net income be allocated as follows:

Partner S Partner R Partner T
Salary allowance $20,000 $25,000 $15,000
Interest on average capital balance 10% 10% 10%
Remainder 30% 30% 40%

Average capital balances for the current year were $60,000 for S, $50,000 for R, and $40,000 for T.

Refer to the information given. Assuming a current year net income of $45,000, what amount should be allocated to each partner?
Partner S Partner R Partner T
A. $17,000 $21,000 $7,000
B. ($9,000) ($9,000) ($12,000)
C. $13,500 $13,500 $18,000
D. $22,500 $22,500 $0

Answers

Answer:

A. $17,000 $21,000 $7,000

Explanation:

From the income, we will subtract the salaries and interest, this will give us the amount to distribute among the partner

net income            45,000

salaries                 (60,000)  (20,000 + 25,000 + 15,000)

interest                 (15, 000)  (60,000 + 50,000 + 40,000) x 10%

net loss                (30,000)

Each partner will receive his salary and capital interest, and proportion of the remainder

Allocate to S

20,000 + 6,000 - 9,000 = 17,000

Allocate to R

25,000 + 5,000 - 9,000 = 21,000

Allocate to T

15,000 + 4,000 - 12,000 =   7,000

Evergreen Fertilizer Company produces fertilizer. The company’s fixed monthly cost is $35,000, and its variable costper pound of fertilizer is $0.33. Evergreen sells the fertilizer for $0.50 per pound.
(a) Determine the monthly break-even volume for the company.
(b) Graphically illustrate the break-even volume for the Evergreen Fertilizer Company.

Answers

Answer:

BEP units         205,882 pounds

BEP dollars     $102,941.17

Explanation:

[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]

[tex]Sales \: Revenue - Variable \: Cost = Contribution \: Margin[/tex]

0.50 - 0.33 = 0.17 contribution per pound

This means each pound generates 0.17 of contribution.

Now, we can calculate the pounds needed to afford the fixed cost.

35,000/0.17 = 205,882.35 pounds

for the BEP we will multiply by the sales price:

205,882.35 pounds x $0.5 = $102,941.17

Details on determining the break-even volume for a company like Evergreen Fertilizer Company and graphically illustrating it.

The break-even point is the point at which total revenue equals total costs, resulting in zero profit. In this case, Evergreen Fertilizer Company's fixed monthly cost is $35,000, and its variable cost per pound is $0.33, while it sells the fertilizer for $0.50 per pound. Therefore, the break-even volume can be calculated using the formula:

Break-even volume = Fixed costs / (Selling price per unit - Variable cost per unit)

Substitute the values to find the break-even volume.

Graphically illustrating the break-even volume involves plotting the total revenue and total cost functions on a graph, identifying the point at which these two intersect, which represents the break-even volume.

[The following information applies to the questions displayed below.] The following information was reported in the December 31, 2017, financial statements of National Airways, Inc. (listed alphabetically, amounts in millions). Accounts Payable $ 4,315 Accounts Receivable 660 Aircraft Fuel Expense 9,500 Cash 3,050 Common Stock 1,260 Dividends 35 Equipment 15,330 Income Tax Expense 270 Interest Expense 210 Landing Fees Expense 3,900 Notes Payable 6,990 Repairs and Maintenance Expense 2,000 Retained Earnings (as of December 31, 2017) 7,195 Salaries and Wages Expense 3,400 Supplies 720 Ticket Revenues 21,100 Prepare an income statement for the year ended December 31, 2017. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10.).)

Answers

Answer:

Explanation:

Before preparing the income statement, first, we have to compute the net income or net loss. So, the calculation is shown below:

In the simplest form, the net income = Total revenue - total expenses

= Ticket Revenue - aircraft fuel expense - income tax expense - interest expense - Repairs and Maintenance Expense - Salaries and Wages Expense - Landing Fees Expense

= $21,100 - $9,500 - $270 - $210 - $2,000 - $3,400 - $3,900

= $1,820

The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:

Final answer:

National Airways, Inc. reported a net income of $1,820 million for the year ended December 31, 2017, calculated by subtracting total expenses ($19,280 million) from total revenues ($21,100 million).

Explanation:

Income Statement for National Airways, Inc.

The income statement for National Airways, Inc. for the year ended December 31, 2017, is a financial document that summarizes the company's revenues and expenses during the year. Below is the detailed calculation based on the provided figures:

Revenues:

Ticket Revenues: $21,100 million

Expenses:

Aircraft Fuel Expense: $9,500 million

Landing Fees Expense: $3,900 million

Salaries and Wages Expense: $3,400 million

Repairs and Maintenance Expense: $2,000 million

Income Tax Expense: $270 million

Interest Expense: $210 million

Total Expenses: $19,280 million

Net Income: (Revenues - Total Expenses) = $21,100 million - $19,280 million = $1,820 million

To summarize, all the revenue and expense items are accounted for to arrive at the net income for the year. National Airways, Inc. has reported a net income of $1,820 million for the fiscal year 2017. The calculation is straightforward, subtracting total expenses from total revenues to determine net income.

The Walden Manufacturing Corp. has office support salaries of $5,200, factory supplies of $2,300, indirect labor of $7,300, direct materials of $17,300, advertising expense of $3,800, office expense of $14,600, and direct labor of $21,600. What is the total period cost?

Answers

Answer:

Total period cost= $23600

Explanation:

Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business. Period costs are not attached to one particular product or the cost of inventory like product costs.

In this exercise:

Period costs:

Office support salaries of $5,200

Advertising expense of $3,800

Office expense of $14,600

Total period cost= $23600

Why would an American company downplay its American origin while operating in another country?
a. Conveying messages based on the home county is typically bad for business.
b. Strategic price elasticity management.
c. This reduces price sensitivity in the host country.
d. Strategically downplaying the country-of-origin effect.

Answers

Answer:

The correct answer would be option D, Strategically downplaying the country of origin effects.

Explanation:

The meaning of downplaying is make something appear less important than it actually is. So if a company is operating in another country, not in his own country, then downplaying the country of origin has better effects than promoting or giving importance to home country while operating in other country. This is strategically very important and has bigger effects. For example, if the American company is operating in Japan, then the culture, the values of Japanese society is much different than American society, so if American company will not downplay it American origin, and try to impose its own culture and values in Japanese workplace, it would have a bad effect on the whole system. So strategically downplaying the country of origin effects a lot.

Pun Corporation concluded the fair value of Slender Company was $60,000 and paid that amount to acquire its net assets. Slender reported assets with a book value of $55,000 and fair value of $71,000 and liabilities with a book value and fair value of $20,000 on the date of combination. Pun also paid $4,000 to a search firm for finder’s fees related to the acquisition. Required: Prepare the journal entries to be made by Pun to record its investment in Slender and its payment of the finder's fees. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answers

Answer:

Investment on Slender    51,000

Goodwill                             9,000

fees expense                     4,000

            Cash                                  64,000

Explanation:

fair value of Slender:

71,000 - 20,000 = 51,000

purchase price      60,000

goodwil                   9,000

finder's fees           4,000

It will recognize the goodwill for Slender

it will pay the finder's and recognize them as expense

The total cash will be 60,000 to aquire Slender and the 4,000 finder's expense

A purchase of a French bottle of wine by a resident of Honduras would be considered an ____ when counting GDP in Honduras. As a result, this purchase would be ____ Honduran GDP. A purchase of a box of cigars made in Honduras and sold in Canada would be considered an ____ for Honduran GDP, which would be ____ Honduran GDP.

Answers

Answer:

import, subtract. export, added

Explanation:

The GDP equation is given by  GDP = C + I + G + (X – M) where C is consumption, I investment, G is government expenditures and M are imports.

Since the bottle of wine was produced in France it had to be imported to Honduras to be consumed, imports enters the GDP equation with a minus sign. This implies imports are subtracted from the GDP equation. For a box of Honduras cigars to be consumed in Canada they had to be exported there, so these are counted as exports with enter the GDP equation with a plus sign. So exports are added.

Final answer:

A purchase of a French bottle of wine by a resident of Honduras is an import and subtracts from Honduran GDP, while a purchase of a box of cigars made in Honduras and sold in Canada is an export and adds to Honduran GDP. The formula for GDP is C + I + G + (X - M), where C is Consumption, I is Investment, G is Government Purchases, X is exports, and M is imports.

Explanation:

A purchase of a French bottle of wine by a resident of Honduras would be considered an import when counting GDP in Honduras. As a result, this purchase would be subtracting from Honduran GDP. A purchase of a box of cigars made in Honduras and sold in Canada would be considered an export for Honduran GDP, which would be adding to Honduran GDP.

GDP calculation is based on adding consumption, private investment, government purchases, and net exports (exports minus imports). In the case of the French wine being an import, it would not add to the country's GDP because it is not produced within Honduras. Conversely, the box of cigars, being an export, represents production within the country and therefore contributes to the nation's GDP.

Following the formula for GDP: GDP = C + I + G + (X - M) where:

C is ConsumptionI is InvestmentG is Government PurchasesX is eXportsM is iMports

For the example given in the self-check question, Country A's GDP would be calculated as follows:

GDP = Consumption ($2,000 billion) + Investment ($50 billion) + Government Purchases ($1,000 billion) + eXports ($20 billion) - iMports ($40 billion) = $3,030 billion.

The Allen Marble Company has a target current ratio of 2.0 but has experienced some difficulties financing its expanding sales in the past few months. At present the firm has current assets of ​$2.5 million and a current ratio of 2.5. If Allen expands its receivables and inventories using its​ short-term line of​ credit, how much additional​ short-term funding can it borrow before its current ratio standard is​ reached?

Answers

Answer:

The additional short-term funding that can be borrowed is 500,000

Explanation:

First the amount of current liabilities must be known:

Current Ratio = Current Asset / Current Liabilities  

2.5 = 2,500,000 / X  

X = 2,500,000 / 2.5

X= 1,000,000

To know how much to expand receivables and inventories in the formula of the current ratio, to the amount of current assets and current liabilities must add an amount such that the result is 2.0.  

(2,500,000 + x) / (1,000,000 + x) = 2.0

(2,500,000 + x) = 2.0 * (1,000,000 + x)

 2,500,000 + x = (2.0* 1,000,000) + (2.0 x)

 2,500,000 + x = 2,000,000 + 2.0 x

 2,500,000 - 2,000,000 = 2.0 x – x

   500,000 = x

 So the maximum that should be expand inventory and receivables is $500,000.

Final answer:

Allen Marble Company, with current assets of $2.5 million and a current ratio of 2.5, can borrow an additional $0.5 million to lower its current ratio to the target of 2.0.

Explanation:

The question revolves around how much additional short-term funding Allen Marble Company can borrow before its current ratio reaches the target of 2.0. Given the company currently has a current ratio of 2.5, with current assets of $2.5 million, we calculate the current liabilities to understand the borrowing capacity.

With a current ratio of 2.5 and current assets of $2.5 million, the current liabilities are $1 million ($2.5 million / 2.5). To reach a current ratio of 2.0, the proportion of current assets to current liabilities must be 2:1. Hence, Allen Marble Company can increase its liabilities (borrow more) until its current assets are exactly twice its current liabilities. The current permissible borrowing before reaching the target ratio = Target current assets - Current assets = ($1 million * 2) - $2.5 million = $0.5 million.

In simpler terms, Allen Marble Company can borrow an additional $0.5 million before its current ratio decreases to the target of 2.0 from its present 2.5.

In a supply chain, having a recognized leader exercising power leads to:
a. excessive bargaining between supply chain members.
b. facilitation of legitimacy in the supply chain.
c. reduction in the efficiency of the supply chain.
d. violation of trust between supply chain members.

Answers

Answer: In a supply chain, having a recognized leader exercising power leads to: "b. facilitation of legitimacy in the supply chain.".

Explanation: The role of a supply chain leader is much more than just having functional knowledge: supply chain leaders must have process experience. They are responsible for taking items from one end of the supply chain to the other, even if they have no total control over each step.

Having a recognized leader in a supply chain leads to the facilitation of legitimacy and the consolidation of legitimate power, which is derived from an officially recognized position. This can promote a more efficient and cooperative supply chain, assuming the leader is respected and has the ability to influence their employees positively.

The correct option is 'b'.

In a supply chain, having a recognized leader exercising power leads to the facilitation of legitimacy in the supply chain. This leadership role is associated with legitimate power, which flows from the officially recognized position, status, or title of a group member.

While having a title imparts this power, it's essential for leaders to also earn respect and recognition from group members, and leadership must go beyond mere designation.

The presence of a recognized leader is likely to consolidate this form of power within the supply chain, leading to increased recognition of their authority and potentially improved efficiency in decision-making and operations.

Therefore, an effective and recognized leader contributes positively to the supply chain by commanding legitimate power which can promote a more streamlined and cooperative atmosphere, as opposed to one of dissent or distrust among supply chain members.

It's important to note that the leader must be capable of influencing employees and respected within the organization to effectively leverage this power for the benefit of the overall supply chain.

If we know that a firm has a net profit margin of 4.6 %​, total asset turnover of 0.62​, and a financial leverage multiplier of 1.54​, what is its​ ROE? What is the advantage to using the DuPont system to calculate ROE over the direct calculation of earnings available for common stockholders divided by common stock​ equity?

Answers

Answer:

4.39%

Explanation:

Using DuPont equation in computing for ROE enables further analysis of the company's strengths and weaknesses. By using this equation, ROE is segregated into different drivers of ROE that focus on key metrics of financial performance. These metrics focus on operational efficiency (Net Profit margin), asset use efficiency (Total Asset Turnover) and financial leverage (Equity or Financial Multiplier). Further, this provides information that will be used by the company in its planning activities.

Coca-Cola's worldwide sales as of December 31, 2011, was 26.7 billion cases. Assume the following sales distribution:

Unit Case Volume
Eastern Europe 20%
Germany 16% in 14%
Great Britain 12%
Italy 9%
France 8%
Other 21%

If Coca-Cola's worldwide growth were to continue at the same growth rate as it did in Germany between 1939 and 2008, when sales grew at the rate of 10.26% , its hypothetical sales in Germany in 2053 (42 years from 2011) would be approximately_____ billion cases. (Note: For this question, ignore other factors that affect sales.)

Answers

Final answer:

To calculate the hypothetical sales in Germany in 2053, use the compound growth rate formula: A = P(1 + r)^t. Here the principal (P) is the initial sales volume in Germany in 2011 (4.27 billion cases), the growth rate (r) is 10.26%, and the time period (t) is 42 years.

Explanation:

In order to calculate the hypothetical sales in Germany in 2053, you need to understand that we're dealing with compounded growth. In this case, the initial amount (P - principal) is the Coca-Cola sales in Germany in 2011 (16% of 26.7 billion cases), the growth rate (r) is 10.26%, and the time period (t) is 42 years.

First, we need to find out the sales volume in Germany in 2011 by taking 16% of 26.7. That is (0.16 * 26.7) billion cases, or 4.27 billion cases.

Next, we apply the compound interest formula which is A = P(1 + r)^t. By replacing P with the sales volume in Germany in 2011 (4.27 billion cases), r with the growth rate (10.26% or 0.1026 as a decimal), and t with the number of years (42), we are able to calculate A which is the hypothetical sales in 2053.

This would give us A = 4.27(1 + 0.1026)^42. By calculating this expression, we will have the solution in billion cases.

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Michigan Cranberry Company sold $10 million worth of cranberries it produced. In producing cranberries, it purchased $1 million dollars worth of supplies from foreign countries and paid workers who reside in Canada but commute to the U.S. $1 million. How much did these transactions add to U.S. GDP?
a. $12 million
b. $11 million
c. $10 million
d. $9 million

Answers

The mixed economy of the United States is highly sophisticated and developed. By nominal GDP, it has the largest economy in the world, and by purchasing power parity (PPP), it is second only to China in size. The transaction of $9 million is added to U.S. GDP. Thus, the correct option is (d).

United States GDP is calculated on the basis of transactions completed within the nation when you produce 10 million worth of cranberries. High levels of production, a well-developed transportation system, and abundant natural resources all contribute to the American economy.

It is added to the GDP but the cost is subtracted, which is completed internally, and here supplies from other countries are not but money given to the people who decide in Canada but,Work in the United States is subtracted, which is also 1 million dollars in, that is why the net amount added to GDP is.=$10 million - $1 million= $9 million

Therefore, The transaction of $9 million is added to U.S. GDP. Thus, the correct option is (d).

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our uncle is about to retire, and he wants to buy an annuity that will provide him with $57,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today?

Answers

Answer:

It cost him 640,617 dollars

Explanation:

as the first payment start today we will calculate the present value for an annuity-due of 57,000 for 20 years discounted at 5.25%

[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]

C 52,500

time 20

rate 0.0525

[tex]52500 \times \frac{1-(1+0.0525)^{-20} }{0.0525} = PV\\[/tex]

PV $640,617

Suppose an airline ticket from Charlotte to Dallas costs $525. A bus ticket is $325. Traveling by plane will take 5 hours, compared with 25 hours by bus. Thus, the plane costs $200 more but saves 20 hours of time (Hint: Note how we are "thinking at the margin" here by looking at the changes). Other things constant, an individual will gain by choosing air travel if, and only if, each hour of her time is valued at more than

Answers

Answer:

Unitary value of an hour= $10

Explanation:

Giving the following information:

An airline ticket from Charlotte to Dallas costs $525.

A bus ticket is $325.

Traveling by plane will take 5 hours.

Traveling by bus will take 25 hours.

The plane costs $200 more but saves 20 hours of time

What is the monetary value of a person to choose a plane over the bus?

In this exercise, to compensate for the 20 hours, the unitary value of an hour must be at least $10.

$10hour*20 hours= $200

Which of the following statements is false?If there are only two goods, guns and butter, it is possible to produce more of both goods through economic growth.If there are only two goods, guns and butter, it is possible to produce more of both goods if the economy is currently operating at an inefficient point.If there are only two goods, guns and butter, it is possible to produce more of both goods if the economy is currently operating at an efficient point.If there are only two goods, guns and butter, producing more of one means producing less of the other if the economy is currently operating at an efficient point.

Answers

Answer:

If there are only two goods, guns and butter, it is possible to produce more of both goods if the economy is currently operating at an efficient point.

Explanation:

As when an economy is at an efficient point then, the economy will tend to indulge in producing the commodity in which it has an absolute advantage and thus, will later on trade in order to be better off.

In the given instance, the economy is efficient and since the nature of both the goods guns and butter are completely different, thus the economy will produce more of any single product to gain competitive advantage in that product.

Thus, efficient economy also cannot produce both the goods.

Final answer:

The false statement is that more of both goods can be produced if the economy is currently operating at an efficient point on the PPF. To produce more of both goods, economic growth must occur, or the economy must be operating at an inefficient point inside the PPF.

Explanation:

The false statement is: "If there are only two goods, guns and butter, it is possible to produce more of both goods if the economy is currently operating at an efficient point." In economic terms, this is represented by the production possibilities frontier (PPF). The PPF shows the maximum possible output that an economy can produce given its resources and technology. When an economy is operating on the PPF, it is considered to be operating efficiently. Producing more of one good on the PPF would require the production of less of the other good due to the trade-offs involved, assuming the available resources are fully utilized.

Economic growth can shift the PPF outward, allowing the production of more of both goods. Productive efficiency is achieved when goods are produced at the lowest resource cost, or when marginal cost equals average total cost. An economy operating at an inefficient point, inside the PPF, can indeed increase production of both goods without trade-offs until it reaches the frontier. Finally, increased production capabilities such as through technological advancements can lead to an outward shift of the PPF, where more of both goods can be produced at a new, more efficient point.

The balance in the equipment account is $4,900,000, and the balance in the accumulated depreciation—equipment account is $2,646,000. a. What is the book value of the equipment? $ b. Does the balance in the accumulated depreciation account mean that the equipment's loss of value is $2,646,000? , because depreciation is an allocation of the of the equipment to the periods benefiting from its use.

Answers

Answer:

A) Book value= $2254000

B) Yes, it is the theoretical loss on value due to use.

Explanation:

Giving the following information:

The balance in the equipment account is $4,900,000

Balance in the accumulated depreciation= $2,646,000

A) Book value= purchase price - book value= 4900000-2646000= $2254000

B) Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its life. Through depreciation, a business will expense a portion of a capital asset's value over each year of its useful life. This means that each year, a capitalized asset is put to use and generates revenue, the cost associated with using up the asset is recorded. Accounting estimates the decrease in value using the information regarding the useful life of the asset.

Bond Valuation and Changes in Maturity and Required Returns Suppose Hillard Manufacturing sold an issue of bonds with a 10-year maturity, a $1,000 par value, a 10% coupon rate, and semiannual interest payments. Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 7%. At what price would the bonds sell? Round your answer to the nearest cent. $

Answers

Answer:

It will be sold at $1,186.71

Explanation:

We will calculate the present value of the cuopon payment and the maturity at the new market rate of 7%

The coupon payment will be calcualte as the PV of ordinary annuity

[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]

C $50 (1,000 x 10%/2 as there are 2 payment per year)

time    16 (8 years x 2 payment per year)

rate     0.035 (7% rate / 2 payment per year)

[tex]50 \times \frac{1-(1+0.035)^{-16} }{0.035} = PV\\[/tex]

PV $604.7058

The maturity will be calculate as the PV of a lump sum

[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]  

Maturity  1,000.00

time         8 years

rate  0.07

[tex]\frac{1000}{(1 + 0.07)^{8} } = PV[/tex]  

PV   582.01

The market price will be the sum of both:

PV cuopon $604.7058

PV maturity  $582.0091

Total $1,186.7149

Final answer:

The selling price of the bond, when market interest rate falls, can be calculated by determining the present value of its future cash flows, which would be higher than its par value due to its higher coupon rate compared to the new market rate.

Explanation:

You're asking to determine the price at which a bond would sell, given certain conditions. The bond in question was issued by Hillard Manufacturing, with a 10-year maturity, a $1,000 par (face) value, a 10% semiannual coupon rate, and was issued 2 years ago. Then the interest rate went down to 7%.

Let's understand the scenario: when the interest rate falls after a bond is issued, the old bonds that were issued with a higher coupon (interest) rate become more attractive. Therefore, they can be sold for a price higher than its par value. This is because investors are more willing to pay a premium to receive higher interest payments.

To calculate the current selling price of the bond, we need to calculate its present value. The present value of a bond is the total of the discounted values of its future cash flows, which are its semiannual coupon payments for the remaining years until maturity and its face value which it'll pay at the end of the maturity.

This calculation involves some complex financial mathematics to apply present value formula for bonds. It generally requires using the Present Value Interest Factor of Annuity (PVIFA) for determining the present value of interest payments and Present Value Interest Factor (PVIF) for the face value of the bond. It can be done using a financial calculator or a spreadsheet software that support financial calculations.

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You invest all the money you earned during your summer sales job (a total of $45,000) into the stock of a company that produces fat and carb-free Cheetos. The company stock is expected to earn a 14% annual return; however, 5 years later it is only worth $20,000. Turns out there wasn't as much demand for fat and carb-free Cheetos as you had hoped. What is the annual rate of return on your investment?

Answers

Answer:

The annual rate of return of the invesment will be -14,97%

Explanation:

The initial investment is 45.000 and after 5 years the value of the investment is only 20.000. Here we can see a destruction of value (20.000 < 45.000). In finance, the time takes an essential part in calculation, so through the interest rate we calculated how bad was the investment in annual terms. The formula is as follows: Final investment value=(Initial investment*(1+interest rate)^(total years)) in our case would be: 20.000=(45.000*(1+interest rate)^(5)) From this formula we got -14,97%

Calculate the annual rate of return on an investment after 5 years when the final value is $20,000 and the initial investment was $45,000.

The annual rate of return on your investment can be calculated as follows:

Initial investment = $45,000Final value of investment after 5 years = $20,000Rate of return = [(Final value - Initial investment) / Initial investment] / Number of yearsRate of return = [($20,000 - $45,000) / $45,000] / 5 = -0.2 or -20%

The negative result indicates a loss of 20% annually on your investment in the stock of the fat and carb-free Cheetos company.

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