Answer:
A.$20,200
Explanation:
The computation of the cash amount which should be reported in the balance sheet is shown below:
= August Bank statement balance + Deposits outstanding - Checks outstanding
= $22,400 + $2,300 - $4,500
= $20,200
The other amount which is given in the question is irrelevant. Hence, these items should not be considered in the computation, so they are ignored.
Answer:
the amount of cash that should be reported in balance sheet is $20200
option A is correct
Explanation:
given data
balance shown = $22400
Checks outstanding = $4,500
NSF = 140
Note collected = 1500
Deposits outstanding = 2300
service fees = 60
to find out
What is the amount of cash should be reported
solution
we will find amount of that should reported as given by
amount reported = balance amount + deposit outstanding - check outstanding ..................1
put here all these value in equation 1 we get
amount reported = 22400 + 2300 - 4500
amount reported = 20200
so the amount of cash that should be reported in balance sheet is $20200
option A is correct
Clemens Cars' job cost sheet for Job A40 shows that the cost to add security features to a car was $15,500. The car was delivered to the customer, who paid $20,200 in cash for the added features. What journal entries should Clemens record for the completion and delivery of Job A40?
Answer:
Cash 20,200 debit
Sales revenue 20,200
COGS 15,500
Finished Goods Invenotry 15,500
Explanation:
The revenue will be recognize by the amount billed to the customer. It is paying on cash, so our cash increases. We record that by debiting cash.
And we credit the sales revenue to increase our revenue.
Then we recognize the cost of goods sold, which are 15,500
This decrease our finished goods inventory by this ammount. Also, we post the expense for the cost of the goods sold.
Clemens Cars should make three journal entries: move the cost of the job to Finished Goods, record the sale and cash receipt, and document the cost of the sold job.
Explanation:The completion and delivery of Job A40 by Clemens Cars involves two main accounting entries. The first step is to transfer the cost of the job from Work in Process to Finished Goods. The second step is to record the sale and cash receipt from the customer.
The journal entries should be as follows:
Debit Finished Goods for $15,500 and Credit Work in Process for $15,500. This entry moves the cost of Job A40 from Work in Process to Finished Goods signifying that the job is completed.When the sale is made, debit Accounts Receivable/Cash for $20,200 and credit Sales for $20,200.Finally, when recording the cost of the sold job, Debit Cost of Goods Sold for $15,500 and Credit Finished Goods for $15,500. This entry reflects selling the completed Job A40 and earning from it.Learn more about Journal Entries here:https://brainly.com/question/33762471
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The First Church has been asked to operate a homeless shelter in part of the church. To operate a homeless shelter the church must hire a full time employee for $1,200/month to manage the shelter. In addition, the church would have to purchase $400 of supplies/month for the people using the shelter. The space that would be used by the shelter is rented for wedding parties. The church averages about 5 wedding parties a month that pay rent of $200 per party. Utilities are normally $1,000 per month. With the homeless shelter, the utilities will increase to $1,300 per month. What is the opportunity cost to the church of operating a homeless shelter in the church?
Answer: $1,000
Explanation:
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
Therefore, the opportunity cost for operating a homeless shelter is the amount that is received by renting the space of shelter for wedding parties.
Opportunity cost = Average wedding parties per month × Rent per party
= 5 × $200
= $1,000
The opportunity cost for the First Church to operate a homeless shelter is $2,900 per month, which includes lost rental income, increased utility costs, and new expenses for an employee and supplies.
Explanation:The opportunity cost to the First Church of operating a homeless shelter is the total of lost rental income from wedding parties, additional utility costs, and the new expenses for the employee and supplies. The church earns $200 per party from 5 wedding parties a month, which results in $200 x 5 = $1000 per month in rental income. Since they will give up this income to operate the shelter, this is part of the opportunity cost.
Next, we consider the increase in utility costs from $1,000 to $1,300 per month. This increased cost of $300 is also a part of the opportunity cost. Additionally, the church would have new expenses totaling $1,200 (employee) + $400 (supplies) per month.
Adding these figures together, the total opportunity cost for the church is:
Lost rental income: $1,000
Increase in utility costs: $300
Employee salary: $1,200
Supplies: $400
So, the total opportunity cost = $1,000 + $300 + $1,200 + $400 = $2,900 per month.
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $188,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Milani purchased an additional 30 percent of Seida for $637,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,000,000 in total. Seida's January 1, 2018 book value equaled $1,850,000, although land was undervalued by $135,000. Any additional excess fair value over Seida's book value was attributable to a trademark with an 8-year remaining life. During 2018, Seida reported income of $308,000 and declared and paid dividends of $108,000. Prepare the 2018 journal entries for Milani related to its investment in Seida.
Milani, Inc. accounts for its investment in Seida Corporation using the equity method, making journal entries for the purchase, their share of Seida's income, dividends received, and fair value adjustments. These entries reflect the acquisition of significant influence and the associated changes in the investment value.
Explanation:For Milani, Inc., accounting for its investment in Seida Corporation involves making several journal entries for the year 2018 based on the equity method due to the acquisition of significant influence over Seida.
Journal Entries for Milani, Inc. in 2018
Recording the additional 30 percent purchase of Seida:When considering the equity method of accounting, Milani recognizes its proportionate share of Seida's net income and any dividends received as well as amortization of the fair value adjustments for the assets such as land and trademark.
When the team members mention two former employees, Doug and Linda, who moved on to new companies, the team members explain how happy their former colleagues are in their new jobs. The team members are alluding to the fact that company leaders lack credibility most fundamentally in what regard?
(A) Competence
(B) Caring
(C) Character
Answer: Caring
Explanation: In the given case, the team members are conveying that their former members are happy in their new jobs. This states that the members are getting more respect and care over there as nothing is mentioned in the question regarding the monetary benefits.
If there was a lack of character or competence in the leaders then it would be affecting the organisational operations more than their subordinates.
Hence from the above we can conclude that the leaders lack credibility in caring.
Team members discussing former employees' happiness at new jobs subtly implies a lack of leadership credibility at the current company, particularly questioning the leaders' character. So, option C is correct.
When team members mention two former employees, Doug and Linda, who moved on to new companies and explain how happy they are in their new jobs, the team members seem to be alluding to a lack of credibility in company leadership. Considering the research by Glen Fowler and the importance of integrity in leadership, the fundamental aspect of credibility that is being questioned here is likely character. Character refers to the moral qualities of honesty and integrity, and when leaders lack these, it can diminish their credibility and negatively impact the entire organization.
Kingbird, Inc. has the following inventory data:
Nov. 1 Inventory 34 units @ $6.80 each
8
Purchase 137 units @ $7.35 each
17 Purchase 68 units @ $7.20 each
25 Purchase 103 units @ $7.50 each
A physical count of merchandise inventory on November 30 reveals that there are 114 units on hand. Cost of goods sold (rounded) under FIFO is
Answer:
Cost of goods sold (rounded) under FIFO is $ 1.649
Explanation:
Date Q Cost U.Cost inventory Sold Cost
nov-01 34 231,2 6,8 0 34 231
nov-08 137 1006,95 7,35 0 137 1.007
nov-17 68 489,6 7,2 11 57 410
nov-25 103 772,5 7,5 103 0 0
114 228 1.649
Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $60,000 per ton, one-fourth of which is allocated to product X15. Seven thousand units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $9 each, or processed further at a total cost of $9,500 and then sold for $12 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15? 2. Should product X15 be processed further or sold at the split-off point?
Answer:
Wexpro, Inc. gains $11500 (59500-48000) by processing further X15. It is a financial advantage to compete with a more complex product. X15 should be processed further.
Explanation:
Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral.
Material and processing costs total $60,000 per ton, one-fourth of which is allocated to product X15.
60000*0,25=$15000
Seven thousand units of product X15 are produced from each ton of clypton. The units can be sold at the split-off point for $9 each.
Sales before split-off point:
Sales 7000u*$9= $63000
Material and processing cost= $15000
Total=$48000
The units can be processed further at a total cost of $9,500 and then sold for $12 each.
Sales after split-off point:
Sales= 7000*12=$84000
Split-off cost= $9500
Material and processing cost= $15000
Total= $59500
Wexpro, Inc. gains $11500 (59500-48000) by processing further X15. It is a financial advantage to compete with a more complex product. X15 should be processed further.
The financial advantage of further processing product X15 is $21,000. Since this advantage is greater than the additional processing cost of $9,500, it is financially beneficial to continue processing X15 beyond the split-off point.
Explanation:We can begin by calculating the cost of product X15 at the split-off point. Since one-fourth of the total cost of $60,000 is allocated to product X15, the cost allocated to this product is $15,000 ($60,000 / 4). This produces 7,000 units, so the cost per unit at the split-off point is $2.14 ($15,000 / 7,000).
Now, let's consider further processing. The additional cost of processing is $9,500 which gives a total cost accounted for unit X15 of $24,500 ($15,000+$9,500). The cost per unit after further processing is $3.50 ($24,500/7000).
The selling price per unit at the split-off point is $9, and when further processed, it is $12. So, the financial advantage (disadvantage) of further processing product X15 is the difference between the selling price of the units when further processed and the selling price at the split-off point. ($12 - $9) * 7000 items = $21,000 advantage.
In conclusion, the cost of further processing ($9,500) is less than the financial advantage ($21,000), product X15 should be processed further.
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The accountant for Healthy Life Company, a medical services consulting firm, mistakenly omitted adjusting entries for (a) unearned revenue earned during the year ($34,900) and (b) accrued wages ($12,770). If the net income for the current year had been $196,400, what would have been the correct net income if the proper adjusting entries had been made?
Answer:
The correct net income is $218,530
Explanation:
The computation of the correct net income is shown below:
= Current year net income + unearned revenue earned - accrued wages
= $196,400 + $34,900 - $12,770
= $218,530
The unearned revenue earned should be added in the net income whereas the accrued wages is an expense which should be deducted in the net income
First, compute cost of goods manufactured. Schedule of Cost of Goods Manufactured Beginning Work-in-Process Inventory 38000 Direct Materials Used: Beginning Direct Materials 28000 Purchases of Direct Materials 70000 Direct Materials Available for Use 98000 Ending Direct Materials (33000) Direct Materials Used 65000 Direct Labor 80000 Manufacturing Overhead 38000 Total Manufacturing Costs Incurred during the Year 183000 Total Manufacturing Costs to Account For 145000 ▼ Cost of Goods Manufactured
Answer:
Cost of manufactured period= $221000
Explanation:
We need to calculate the production during the period.
Cost of manufactured period= Beginning work in progress inventory+ direct materials + direct labor + factory overhead - ending work in progress
Beginning work in progress= $38000
Cost of raw materials= beginning inventory + purchase - ending inventory= 28000 + 70000 - 33000= $65000
Direct labor= 80000
Manufactured overhead=38000
Ending work in progress= 0
Cost of manufactured period= 38000 + 65000 + 80000 + 38000= $221000
Required information
Use the following information for the Problems below.
Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2016 and 2017, follow.
LANSING COMPANY
Income Statement
For Year Ended December 31, 2017
Sales revenue $ 118,200
Expenses
Cost of goods sold 49,000
Depreciation expense 15,500
Salaries expense 25,000
Rent expense 9,700
Insurance expense 4,500
Interest expense 4,300
Utilities expense 3,500
Net income $ 6,700
LANSING COMPANY
Selected Balance Sheet Accounts
At December 31 2017 2016
Accounts receivable $ 6,300 $ 7,200
Inventory 2,680 1,890
Accounts payable 5,100 6,000
Salaries payable 1,020 770
Utilities payable 360 230
Prepaid insurance 330 420
Prepaid rent 360 250
Problem 16-1A Indirect: Computing cash flows from operations LO P2
Required:
Prepare the cash flows from operating activities section only of the company’s 2017 statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
LANSING COMPANY
Cash Flows from Operating Activities—Indirect Method
For Year Ended December 31, 2017
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operations:
Answer:
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $6,700
Adjustment made:
Add : Depreciation expense $15,500
Add: Decrease in accounts receivable $900 ($6,300 - $7,200)
Less: Increase in inventory -$790 ($2,680 - $1,890)
Less: Decrease in accounts payable -$900 ($5,100 - $6,000
Add: Increase in salaries payable $250 ($1,020 - $770)
Add: Increase in utility payable $130 ($360 - $230)
Less: Decrease in prepaid insurance -$90 ($330 - $420
Add: Increase in prepaid rent $110 ($360 - $250)
Total of Adjustments $15,110
Net Cash flow from Operating activities $21,810
Chapter 3 Homework Questions 3, 4 3. Balance Sheet. Construct a balance sheet for Sophie’s Sofas given the following data. What is shareholders’ equity? (LO3-1) Cash balances = $10,000 Inventory of sofas = $200,000 Store and property = $100,000 Accounts receivable = $22,000 Accounts payable = $17,000 Long-term debt = $170,000 4. Income Statement. A firm’s income statement included the following data. The firm’s average tax rate was 20%. (LO3-1) Cost of goods sold $8,000 Income taxes paid $2,000 Administrative expenses $3,000 Interest expense $1,000 Depreciation $1,000 What was the firm’s net income? What must have been the firm’s revenues? What was EBIT?
Answer:
BALANCE SHEET
Assets Liabilities
Cash 10,000 Account Payable 17,000
Account Receivable 22,000 Long term 170,000
Inventory 200,000 Total Liab 187,000
non-current assets 100,000 Equity 145,000 (A)
total assets 332,000 Total liab + SE 332,000
Earnings before interest and taxes: 11,000 dolllars
Net income 8,000
Explanation:
(A) solve through the accounting equation
assets = laib + equity
332,000 = 187,000 + Equity = 332,000 - 187,000 = 145,000
Q4
income tax expense: 2,000
rate 20%
Earnings before taxes x 20% = 2,000
EBT = 2,000 / 0.2 = 10,000
Net income : 10,000 - 2,000 = 8,000
EBIT: EBT + interest expense
10,000 + 1,000 = 11,000
A balance sheet is an accounting tool that lists a company's assets and liabilities. Shareholders' equity is the residual interest in the assets of a company after deducting liabilities. Sophie's Sofas has shareholders' equity of $185,000. The firm's net income is $2,000 and its revenues are $10,000. The firm's EBIT is also $2,000.
Explanation:A balance sheet is an accounting tool that lists a company's assets and liabilities. Assets are things of value that a company owns, such as cash, inventory, and property. Liabilities are debts or obligations, such as accounts payable and long-term debt.
Shareholders' equity is the residual interest in the assets of a company after deducting liabilities. It represents the owners' claim on the company's assets and is calculated by subtracting total liabilities from total assets. In the case of Sophie's Sofas, the shareholders' equity would be $185,000 ($332,000 - $170,000 - $17,000).
To determine the firm's net income, we need to subtract the total expenses from the total revenues. In this case, the expenses include the cost of goods sold, income taxes paid, administrative expenses, interest expense, and depreciation. Given the information provided, the firm's net income would be $2,000 ($8,000 - $2,000 - $3,000 - $1,000 - $1,000).
The firm's revenues can be calculated by adding the cost of goods sold, net income, and interest expense. In this case, the firm's revenues would be $10,000 ($8,000 + $2,000 + $1,000).
EBIT, or Earnings Before Interest and Taxes, can be calculated by subtracting the interest expense and income taxes paid from the net income. In this case, the firm's EBIT would also be $2,000 ($2,000 - $1,000 - $1,000).
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Goodwill is:
A. Only recorded by the seller of a business.
B. The value of a business as a whole, over and above the value of its net identifiable assets.
C. Amortized over the greater of its estimated life or forty years.
D. Recorded when created internally through advertising expense.
Answer:
The value of a business as a whole, over and above the value of its net identifiable assets.
Explanation:
Goodwill arises when a company acquires another entire business. . Goodwill represents assets that are not separately identifiable. The goodwill represents non tangible future value.
One primary function of Harriet's job is to study individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of her company's products and services to satisfy needs and the impacts that these processes have on the consumer and society. Harriet works in the field of _____.
Answer:
consumer behavior
Explanation:
Consumer behavior refers to the study of the behaviors and the wants and needs of the customers. The actions or activities which the consumers do in the market place which highlights their behavior studies under consumer behavior. In the above case, Harriet's job is specifically included under studying consumer behavior.
Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A debt is 85 basis points (0.85%). Your firm’s five-year debt has a coupon rate of 6%. You see that new five-year Treasury notes are being issued at par with a coupon rate of 2.0%. What should the price of your outstanding five-year bonds be per $100 of face value?
Answer:
The market price should be: $114.67
Explanation:
the risk free rate is 2.00%
this firm has a spread of 0.85%
firm cost of debt 2.85%
The market will adjust the bond price so the yield ofthe bonds relfect this rate.
So we will calculate the present value of a coupon 100 with a 6% rate
We use the ordinary annuity for the coupon payment:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
Coupon payment: 100 face value x 3% bond rate = 3
time 10 (5 years with 2 payment per year)
market rate: 0.01425 (2.85%/2)
[tex]3 \times \frac{1-(1+0.01425)^{-10} }{0.01425} = PV\\[/tex]
PV $27.7768
and lump sum present value for the maturity:
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 100
time 5
rate 0.0285
[tex]\frac{100}{(1 + 0.0285)^{5} } = PV[/tex]
PV 86.89
Last, we add them to get the market price:
PV c $27.7768
PV m $86.8917
Total $114.6685
Final answer:
To calculate the price of the firm's outstanding five-year bonds per $100 of face value, one must discount the bond's cash flows by the total yield required by investors, which is the sum of the Treasury yield and the firm's credit spread. This approach reflects the impact of interest rate changes on bond prices, with bonds trading at discounts or premiums depending on the prevailing interest rate environment.
Explanation:
The student is asking how to determine the price of their firm's outstanding five-year bonds given the coupon rate, the credit spread, and the current Treasury note rate. To calculate the price of the bonds, you need to consider the total yield that investors would require to hold the firm's bond instead of a risk-free Treasury bond. The total yield would be the Treasury yield plus the credit spread, which in this case would be 2.0% (from the Treasury note) plus 0.85% (the credit spread), resulting in a total yield of 2.85%. Using this yield to discount the firm's bond coupon payments and the face value payment at maturity will give you the present value, or price, of the outstanding bonds per $100 of face value.
Calculating Bond Prices
Let's look at an example to illustrate how bond prices are affected by changes in interest rates. Assume an investor holds a two-year bond that was issued for $3,000 at an 8% interest rate. This bond pays $240 in interest annually. If the discount rate reflects the current interest rate environment at 8%, then the present value of these payments equals the face value of the bond, because the coupon rate matches the discount rate. In this scenario, the bond would be worth its face value, or $3,000. However, if interest rates rise and the new discount rate is 11%, the present value of the bond's future payments would be lower than the face value, because investors can get a higher return elsewhere. Therefore, the bond would trade at a discount to reflect the higher market interest rates.
Using a financial calculator or present value formula would allow you to calculate the precise price of the bond under different interest rate scenarios, taking into account the time value of money and the structure of cash flows from the bond.
House of Pianos, Inc., purchases pianos from a well-known manufacturer and sells them at the retail level. The pianos sell, on the average, for $3,300 each. The average cost of an piano from the manufacturer is $1,492. The costs that the company incurs in a typical month are presented below: Costs Cost Formula Selling: Advertising ......................................... $955 per month Delivery of pianos ............................... $61 per piano sold Sales salaries and commissions............. $4,823 per month, plus 4% of sales Utilities ............................................... $633 per month Depreciation of sales facilities .............. $4,944 per month Administrative: Executive salaries ................................ $13,490 per month Depreciation of office equipment .......... $943 per month Clerical ............................................... $2,499 per month, plus $37 per piano sold Insurance ........................................... $719 per month During November, the company sold and delivered 60 pianos. Required: 1. Prepare a traditional income statement for September. 2. Prepare a contribution format income statement for September. Show costs and revenues on both a total and a per unit basis down through contribution margin. 3. Refer to the income statement you prepared in (2) above. Why might it be misleading to show the fixed costs on a per unit basis?
Answer:
Sales = Units of pianos sold × Price of each piano
= 60 × $3,300
= $198,000
Cost of Goods Sold = Average cost of each piano × Units of pianos sold
= $1,492 × 60
= $89,520
Gross profit on sales = Sales - Cost of Goods Sold
= $198,000 - $89,520
= $108,480
Total selling expenses:
= Advertising + Delivery + Sales salaries + Commissions + Utilities + Depreciation
= $955 + ($61 × 60) + $4,823 + (198,000 x 4%) + $633 + $4,944
= $955 + 3,660 + $4,823 + $7,920 + $633 + $4,944
= $22,935
Total Admin Expenses:
= Executive salaries + Depreciation + Clerical + Additional clerical expense + Insurance
= $13,490 + $943 + $2,499 + (37 × 60) + $719
= $19,871
Operating Income:
= Gross profit on sales - Total selling expenses - Total Admin Expenses
= $108,480 - $22,935 - $19,871
= $65,674
Final answer:
The answer provides a traditional and contribution format income statement for House of Pianos, Inc. in September, and explains why showing fixed costs on a per unit basis can be misleading.
Explanation:
House of Pianos, Inc. Traditional Income Statement for September:
Total Sales: $198,000
Total Cost of Goods Sold: $89,520
Total Selling and Administrative Expenses: $24,454
Contribution Format Income Statement for September:
Contribution Margin: $57,360
Fixed Costs: $25,782
Net Income: $31,578
Showing fixed costs on a per unit basis can be misleading because fixed costs remain constant regardless of the number of units produced or sold. Therefore, as the number of units produced increases, fixed costs spread out over more units, reducing the fixed cost per unit.
Cell One Corporation began 2018 with retained earnings of $ 260 million. Revenues during the year were $ 520 million, and expenses totaled $ 340 million. Cell One declared dividends of $ 61 million. What was the company's ending balance of retained earnings? To answer this question, prepare Cell One's statement of retained earnings for the year ended December 31, 2018, complete with its proper heading. Prepare the statement of retained earnings. (Enter all amounts in millions. Enter a net loss with a minus sign or parentheses. Include a subtotal after the "Add" line of the statement.) (millions) Add: Subtotal Less:
Answer:
The ending balance of retained earnings was $ 379
Please see details below:
Explanation:
Opening retained earnings $ 260
Add: Net Income $ 180
Subtotal $ 440
Less: Dividens -$ 61
Total $ 379
To determine the ending balance of retained earnings for Cell One Corporation, prepare a statement of retained earnings. The beginning balance of retained earnings is added to the net income and subtracted by the dividends declared to calculate the ending balance. For Cell One Corporation, the ending balance is $379 million.
Explanation:To determine the ending balance of retained earnings for Cell One Corporation, we need to prepare the statement of retained earnings. The statement of retained earnings calculates the change in retained earnings over a given period. We start with the beginning balance of retained earnings, add the net income (revenues minus expenses), and subtract any dividends declared during the year. The result is the ending balance of retained earnings.
The statement of retained earnings for Cell One Corporation for the year ended December 31, 2018, is as follows:
Cell One Corporation
Statement of Retained Earnings
For the Year Ended December 31, 2018
Beginning balance of retained earnings: $260 millionAdd: Net income (revenues - expenses): $520 million - $340 million = $180 millionSubtotal: $260 million + $180 million = $440 millionLess: Dividends declared: $61 millionEnding balance of retained earnings: $440 million - $61 million = $379 million
Marginal utility is the:
A. sensitivity of consumer purchases of a good to changes in the price of that good.
B. change in total utility obtained by consuming one more unit of a good.
C. change in total utility obtained by consuming another unit of a good divided by the change in the price of that good.
D. total utility associated with the consumption of a certain number of units of a good divided by the number of units consumed.
Answer : Option b
Explanation:
In simple words, marginal utility refers to the addition to the utility satisfaction of the consumer when he or she consumes one more unit of such commodity.
If the consumer gets more satisfied after additional consumption then the marginal utility will be positive or otherwise negative.
It is calculated by dividing the difference in utility with the difference in units.
Hence from the above we can conclude that the correct option is b.
Marginal utility refers to the change in total utility that a consumer experiences from consuming one additional unit of a good or service.
Explanation:Marginal utility, a key concept in economics, is best explained as B. the change in total utility obtained by consuming one more unit of a good. In other words, it measures the satisfaction a consumer gets from consuming one additional unit of a good or service. For instance, imagine you're eating ice cream. The first scoop brings you a lot of satisfaction (utility), but with each additional scoop, the satisfaction you receive (marginal utility) may decrease, remain the same, or even become negative if you end up feeling unwell from eating too much.
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The following are common categories on a classified balance sheet. a) Current assets b) Long-term investments c) Plant assets d) Intangible assets e) Current liabilities f) Long-termliabilities For each of the following items, select the letter that identifies the balance sheet category where the item typically would best appear. _____ Land not currently used in operations _____ Notes payable (due in five years) _____ Accounts receivable _____ Trademarks _____ Accounts payable _____ Store equipment _____ Wages payable _____ Cash
The given items are categorized according to their place in the balance sheet into long-term investments, long-term liabilities, current assets, intangible assets, current liabilities, plant assets and current assets.
Explanation:The item 'Land not currently used in operations' typically would best appear under: (b) Long-term investments
The item 'Notes payable (due in five years)' typically would best appear under: (f) Long-term liabilities
The item 'Accounts receivable' typically would best appear under: (a) Current assets
The item 'Trademarks' would typically best appear under: (d) Intangible assets
The item 'Accounts payable' would typically best appear under: (e) Current liabilities
The item 'Store equipment' would typically best appear under: (c) Plant assets
And the item 'Wages payable' would typically best appear under: (e) Current liabilities
The item 'Cash' would best appear in: (a) Current assets.
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Both the chart of accounts and the ledger __________. A. list the account names and numbers of the business B. provide the balance of each account at a specific point in time C. fulfill the task of showing all of the increases and decreases in each account D. All of the statements are correct.
Answer: (A) List the account names and numbers of the business.
Explanation:
The chart of the account is basically a listing of name of an account in which the company identified availability for the recording transaction in the general ledger. The company has high flexibility for tailor its both chart of account and ledger for its need and including accounts according to its particular needs.
The charts of the accounts has large and complex as company itself. The organization chart properly serve the outline for the accounting for the chart of account and the number of business.
Both the chart of accounts and the ledger list the account names and numbers of a business, provide the balance of each account at a specific point in time, and show all increases and decreases in each account. So, all of the given statements are correct.
Explanation:The chart of accounts and the ledger in business have several roles. They list the account names and numbers of the business, providing a structured overview of every single account within that business. They also provide the balance of each account at a specific point in time, allowing for accurate financial tracking. Finally, they fulfill the task of showing all of the increases and decreases in each account, which enables precise monitoring of the financial flow. Therefore, all of the statements - A, B, C - in your question are correct.
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Dream House Builders, Inc. applies overhead by linking it to direct labor. At the start of the current period, management predicts total direct labor costs of $100,000 and total overhead costs of $20,000. On January 31, the direct labor for this job equals $2,700. Complete the necessary January 31 journal entry to apply overhead by selecting the account names and dollar amounts from the drop-down menus.
Answer:
Goods in Process Inventory -- Job ....... $540 Dr
Factory Overhead ................................................... $540 Cr
Explanation:
Factory Overhead = (Total Overhead Costs / Total Direct Labor Costs) x Direct Labor
Factory Overhead = ($20,000 / $100,000) x $2,700
Factory Overhead = 0.2 x $2,700
Factory Overhead = $540
On January 31, the journal entry to apply overhead is
Goods in Process Inventory -- Job ....... $540 Dr
Factory Overhead ................................................... $540 Cr
Hope this helps!
Answer:
Please see attachment
Explanation:
Please see attachment
Kant Miss Company is promising its investors that it will double their money every 3 years. What annual rate is Kant Miss promising? Is this investment a good deal? If you invest $300 now and Kant Miss is able to deliver on its promise, how long will it take your investment to reach $26 comma 000?
Answer:
Intructions are listed below.
Explanation:
Giving the following information:
Kant Miss Company is promising its investors that it will double their money every 3 years.
A) According to the rule of 70, an investment will duplicate in X number of years using the following formula:
N= 70/ interest rate
In this exercise:
3=70/i
i=70/3= 23.33%
B) If this is a good deal or not will depend on the interest rate and risk that you are willing to accept.
C) To find how many years it will take to reach to $26000 we need to use the following formula:
n=[ln(FV/PV)]/ln(1+r)
ln= natural logarithm
FV= Final value
PV= present value
r= interest rate
n=[ln(26000/300)]/ln(1+0,23333)
n= 21,55 years.
The Kant Miss Company is promising an implied annual rate of approximately 25.9%. Whether this is a good investment would depend on various factors. It would take about 20.3 years for an investment of $300 to reach $26,000 at this rate.
Explanation:The Kant Miss Company is offering to double investors' money every 3 years, meaning it's implying an interest rate that can achieve this. To find this rate, we can use the formula of compound interest: A = P(1+r/n)^(nt), where A is the final amount, P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is time in years. In this case, A/P = 2 (doubling), n = 1(compounding annually), and t = 3 years.
As such, 2 = (1 + r) ^ 3. Solving it using a cube root function, we get (1+r) = 2^(1/3) = 1.259. Hence, r = 1.259-1 = 0.259 or 25.9% as the implied annual rate.
Whether this is a good deal or not depends on the risk tolerance of the investor and the viability of the company. Hardly any secure investment yields a 25.9% annual return, so it might carry significant risk.
Regarding how long it would take for a $300 investment to reach $26,000:
we can set up and solve the same compound interest equation, letting P = $300, A = $26,000, r = 0.259, and solve for t. Using a logarithmic function, it will take approximately 20.3 years to reach your investment goal.
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Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1914. It is now 2019. a. If your great grandfather invested $1,000 in 1914, how much would that investment be worth today?
Answer:
FV= $273381.67
Explanation:
Giving the following information we need to find the value of the investment in present day
I=1000
i=0.05
n=115
The general formula to calculate the value of an investment for cases like this is:
FV= I*[(1+i)^n]
FV= 1000*(1,05^115)= $273381.67
To calculate the value of the investment today, use the formula for compound interest: Final Value = Initial Value × (1 + Rate)^(Number of Years). Plugging in the values, the investment would be worth around $28,942.34 today.
Explanation:To calculate the value of the investment today, we can use the formula for compound interest. In this case, the investment has grown at an average compound rate of 5% per year since 1914. We can use the formula:
Final Value = Initial Value × (1 + Rate)^(Number of Years)
Plugging in the values, we get:
Final Value = $1,000 × (1 + 0.05)^(2019 - 1914)
Simplifying the equation:
Final Value ≈ $1,000 × (1.05)^105
This calculation gives us a final value of approximately $28,942.34. Therefore, the investment would be worth around $28,942.34 today.
Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc and Michelle also paid $2,500 of qualifying moving expenses, and Marc paid alimony to a prior spouse in the amount of $1,500. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $1,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $5,500 in federal income taxes withheld from their paychecks during the course of the year. (use the 2016 tax rate schedules. )
What is the total amount of Marc and Michelle’s deductions from AGI?
What is Marc and Michelle’s taxable income?
What is Marc and Michelle’s taxable income?
The total amount of deductions Marc and Michelle are going to get is $24750.
The taxable income of Marc and Michelle is $47750.
Further Explanation:
Income Tax: It is the additional charge on an individual’s income which he/she needs to pay to the government. The taxable income is calculated by adding all the incomes and deducting all the deductions which an individual can claim on his/her income.
Compute the total amount of deductions available for Marc and Michelle:
Total Deduction Available
= Higher of Standard Deduction for MJF and Itemized Deduction + Personal and Dependency Exemptions
= Higher of $12600 and $6000 + $12150 ($4050×3)
= $12600 + $12150
=$24750.
Therefore, the total deductions available to Marc and Michelle are $24750.
Gross Income of Marc and Michelle
= Salary of Marc + Salary of Michelle + Interest Earned on Corporate Bonds
= $64000 + $12000 + 500
= $76500.
Total Taxable Income of Marc and Michelle
= Gross Income – Qualified Moving Expenses – Alimony Paid – Total Deductions
= $76500 - $2500 - $1500 - $$24750
= $47750.
Therefore, the total taxable income of Marc and Michelle is $47750.
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Answer details:
Grade: Senior School
Subject: Taxation
Chapter: Income Tax
Keywords: Taxable income, Marc and Michelle, Deductions, salary income, earned, corporate bond interest, interest on municipal bond, standard deductions, US tax brackets.
They paid $6,000 of expenditures that qualify as itemized deductions. Total Deductions from AGI: $7,000 Adjusted Gross Income: $69,850.
Given,
Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc and Michelle also paid $2,500 of qualifying moving expenses, and Marc paid alimony to a prior spouse in the amount of $1,500.
Required to calculate:
What is the total amount of Marc and Michelle’s deductions from AGI?
What is Marc and Michelle’s taxable income?
What is Marc and Michelle’s taxable income?
Itemized Deductions:
They paid $6,000 of expenditures that qualify as itemized deductions.
Child Tax Credit:
They can claim a $1,000 child tax credit for their son, Matthew.
Total Deductions from AGI: $6,000 (itemized deductions) + $1,000 (child tax credit) = $7,000
Total Income:
Marc's salary: $64,000
Michelle's salary: $12,000
Interest from municipal bonds: $350
Interest from corporate bonds: $500
Total Income: $64,000 + $12,000 + $350 + $500 = $76,850
Adjusted Gross Income (AGI):
AGI = Total Income - Total Deductions from AGI
AGI = $76,850 - $7,000 = $69,850
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An analyst with a leading investment bank tracks the stock of Mandalays Inc. According to her estimations, the value of Mandalays Inc.’s stock should be $78.54 per share, but Mandalays Inc.’s stock is trading at $99.25 per share on the New York Stock Exchange (NYSE). Considering the analyst’s expectations, the stock is currently:
a. In equilibrium
b. Overvalued
c. Undervalued
Answer:
b. Overvalued
Explanation:
Overvalued stocks are securities that trade higher than their fair market value, i.e. the value that the company's fundamentals, such as earnings or revenues justify.
The stock of Mandalays Inc. is currently overvalued.
Explanation:The stock of Mandalays Inc. is currently overvalued because it is trading at $99.25 per share on the NYSE, while the analyst's estimation suggests that the value should be $78.54 per share. When a stock is overvalued, it means that the market price is higher than what is considered fair value based on various factors such as earnings, growth prospects, and industry comparisons.
Which of the following is NOT an OM strategy/issue during the introduction stage of the product life cycle? A. long production runs B. limited models C. high production costs D. frequent product and process design changes
Answer:
A. long production runs
Explanation:
In the production life cycle, there are four types of stages which comprise of introduction, growth, maturity, and decline
The introduction stage refers to the stage in which the product is first time introduced in the market. It involves high production cost, less market size, changes in frequent product and process design, limited models, etc.
So, the option A is correct.
Final answer:
The correct answer is long production runs. This is not a typical Operations Management strategy during the introduction stage of a product life cycle; longer production runs are usually seen at later stages when demand is stable and refinement is complete.
Explanation:
The question asks which of the following is NOT an Operations Management (OM) strategy/issue during the introduction stage of the product life cycle: A. long production runs B. limited models C. high production costs D. frequent product and process design changes.
The correct answer is A. long production runs. During the introduction stage of a product's life cycle, companies are more likely to encounter high production costs, limited models, and frequent changes to product and process designs in response to market feedback.
Long production runs are generally associated with the maturity stage of the product life cycle, where demand is stable and companies optimize manufacturing for efficiency.
At the introduction stage, the focus is usually on tweaking the product to suit market needs and establishing a market presence, which can be hampered by lengthy production runs that reduce the company's ability to adapt quickly to market responses.
Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2018 ($ in millions) Sales $ 900 Cost of goods sold 315 Gross margin 585 Salaries expense $ 150 Depreciation expense 98 Patent amortization expense 5 Interest expense 38 Loss on sale of land 4 295 Income before taxes 290 Income tax expense 145 Net Income $ 145 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) Year 2018 2017 Change Cash $ 138 $ 130 $ 8 Accounts receivable 261 277 (16 ) Inventory 465 480 (15 ) Accounts payable 203 194 9 Salaries payable 107 116 (9 ) Interest payable 57 50 7 Income taxes payable 48 40 8 Required: Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Company using the indirect method.
Answer:
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $145
Adjustment made:
Add : Depreciation expense $98
Add: Loss on sale of land $4
Add: Amortization expense $5
Less: Increase in cash balance -$8 ($138 - $130)
Add: Decrease in accounts receivable $16 ($261 - $277)
Add: Decrease in inventory $15 ($465 - $480)
Add: Increase in accounts payable $9 ($203 - $194)
Less: Decrease in salaries payable -$9 ($107 - $116)
Add: Increase in interest payable $7 ($57 - $50)
Add: Increase in income tax payable $8 ($48 - $40)
Total of Adjustments $145
Net Cash flow from Operating activities $290
The cash flows from operating activities for Myriad Products Company using the indirect method is calculated by adjusting the net income for non-cash expenses, losses and gains on sales of assets, and changes in current operating assets and liabilities. The calculated cash flow from operating activities for 2018 is $298 million.
Explanation:First explain the steps involved in preparing the cash flow from operating activities section of the statement of cash flows using the indirect method, and then apply these steps to your provided financial information from Myriad Products Company.
The first step in this process is to start with the net income from the income statement, which is $145 million for Myriad Products Company.Next, we need to adjust the net income for non-cash expenses and losses and gains on sales of assets. In this case, we have a depreciation expense of $98 million, patent amortization expense of $5 million and a loss on sale of land of $4 million. So, we add these amounts back to the net income.Finally, we adjust for changes in current operating assets and liabilities. Here, we have a decrease in accounts receivable of $16 million, a decrease in inventory of $15 million, an increase in accounts payable of $9 million, a decrease in salaries payable of $9 million, an increase in interest payable of $7 million, and an increase in income taxes payable of $8 million. Decreases in current assets and increases in current liabilities are added to the net income while decreases in current liabilities are subtracted.Adding all these together, we get the cash flow from operating activities to be: $145 + $98 + $5 + $4 + $16 + $15 + $9 - $9 + $7 + $8 = $298 million
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The following information is from the Income Statement of the Vaughn Laundry Service:
Revenues
Service Revenues $5070
Expenses
Salaries and wages expense $ 1910
Advertising expense 390
Rent expense 230
Supplies expense 160
Insurance expense 80
Total expenses 2770
Net income $2300
The entry to close the expense accounts includes a:
Answer:
Debit to income summary account = $2,770
Explanation:
The journal entry to close the expense account is shown below:
Income summary A/c Dr $2,770
To Salaries and wages expense $1,910
To Advertising expense $390
To Rent expense $ 230
To Supplies expense $160
To insurance expense $80
(Being expense accounts are closed)
LeBlanc Company had the following department data:Physical UnitsWork in process, July 1 18,000Completed and transferred out 81,000Work in process, July 31 27,000Materials are added at the beginning of the process. What is the total number ofequivalent units for materials in July?
Answer:
FIFO 90,000
W/A 108,000
Explanation:
There are two method for process costying FIFO and Weighted Average (WA) as there is no indication we will do both:
The difference is that FIFO discriminate bwetween started and completed units and completed units. therefore, the complete beginning inventory is subtracted.
As the materials are added at the beginning of the period then both, beginning and ending are at 100%
completed units 81,000
ending WIP 27,000
beginning WIP (18,000)
equivalent units FIFO 90,000
complete units 81,000
ending WIP 27,000
equivalent untis Weighted average 108,000
The total number of equivalent units for materials in July is 108,000 units.
To determine the total number of equivalent units for materials in July for LeBlanc Company, we need to consider the process described in the given data. Here's a step-by-step method to calculate it:
Physical Units Calculation: Before Conversion
Units in Work in Process, July 1: 18,000 units
Units Completed and Transferred Out: 81,000 units
Units in Work in Process, July 31: 27,000 units
Materials Addition
Since materials are added at the beginning of the process, all units in work in process at the end of the period (July 31) will have 100% of the materials added.
Total Equivalent Units for Materials
To find the total equivalent units for materials, we add the units completed during the month to the units in the ending work in process (WIP), because they all have materials added:
{Total Equivalent Units for Materials} ={Units Completed and Transferred Out} + {Ending WIP}
{Total Equivalent Units for Materials} = 81,000 { units} + 27,000{ units}
Therefore, the total number of equivalent units for materials in July is 108,000 units.
Marion Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2015. The board of directors declares and pays a $65,000 dividend in 2015. What is the amount of dividends received by the common stockholders in 2015?
Answer:
$40,000
Explanation:
Holders of preferred stocks are given preference in terms of dividend distribution. However, the amount of dividend that they will share in the $65,000 dividends declared by the board of directors is only limited to 5% of the total par value (5,000 shares x $100 = $500,000) of preferred stocks, which in this case is only $25,000 ($500,000 x 5%). After deducting the dividends for preferred stocks, the remaining dividends of $40,000 ($65,000 - $25,000) will be distributed to holders of common stocks.
Selected information from Green Co.'s accounting records and financial statements is as follows: Gain on sale of land $ 12,000 Proceeds from sales to customers 21,800 Purchase of Black, Inc. bonds (face amount $205,000) 367,000 Amortization of bond discount 4,800 Cash dividends declared 98,000 Cash dividends paid 72,000 Proceeds from sales of Green Co. common stock 157,000 What are the net cash flows from financing activities that will be reported in the statement of cash flows? (Enter net cash outflows with a minus sign.)
Answer:
cash generate from financing activities 85,000
Explanation:
financing activities:
sale of common stock 157, 000
cash dividends paid (72,000)
cash generate from financing activities 85,000
On the cash flow statement we will focus on trasnaction that involve cash.
The financing activities will only consider the finance of the business. This is the dividends and common stock.
The amortization on bonds don't involve cash, so are ignored.
The purchase of bonds are investing activities, the business is not financing.
A firm seeks to accept projects with a high degree of liquidity, avoid the higher forecasting error associated with cash flows occurring in the distant future, and avoid projects that require a large amount of research and development expenses. This firm may be justified in using the ___________to evaluate its projects.
Answer: Payback rule
Explanation: As per the pay back rule, the project which earns its initial investment more quickly is considered to be acceptable and profitable.
In the given case, the company is expecting a project which do not affect liquidity and does not take too much cost on research for the coming future. Thus, a project with a shorter time period of recovery of initial investment will be suitable fro them.
Hence the company should use payback rule to evaluate its product.