Answer:
I think answer the gDp deflator cannot be used to gauge inflation
The CPI is favored over the GDP deflator for gauging inflation because it more closely reflects the consumer spending on goods and services, representing the cost of living experienced by individuals.So,option a is correct.
The CPI (Consumer Price Index) is more commonly used as a gauge of inflation than the GDP deflator because a. the CPI better reflects the goods and services bought by consumers. The CPI is designed to measure the average price changes of a basket of goods and services typically purchased by urban consumers, which aligns closely with the general cost of living and consumer spending patterns. Unlike the CPI, the GDP deflator includes all new, domestically produced, final goods and services in an economy, regardless of whether they are purchased by consumers or not, such as investment goods and government services. Therefore, while the GDP deflator can serve as a measure of inflation across the entire economy, the CPI is more representative of the inflation experienced by individual consumers.
The following information is available from the records of a manufacturing company that applies factory overhead based on direct labor hours: Estimated overhead cost: $500,000 Estimated labor hours: $200,000 Actual overhead cost: $515,000 Actual labor hours: $210,000 Based on this information, factory overhead is
Answer:
The manufactured overhead was under-estimated.
Explanation:
Giving the following information:
The actual manufacturing overhead costs incurred were $515,000.
Estimated Manufacturing overhead was $500,000.
Overhead allocation is the distribution of indirect costs to produced goods. When the administration has undervalued and under-funded the amount of money needed for non-production costs, they have under-allocated overhead.
Over applied manufacturing overhead:
Applied overhead>Actual overhead
Under applied manufacturing overhead:
Applied overhead<Actual overhead
In this exercise:
Actual manufacturing overhead - Estimated Manufacturing overhead= 515000- 500000= 15000
The manufactured overhead was under-estimated.
Use the following data to determine the total dollar amount of assets to be classified as current assets. Skysong, Inc. Balance Sheet December 31, 2017 Cash $193000 Accounts payable $199000 Accounts receivable 140000 Salaries and wages payable 30500 Inventory 171000 Mortgage payable 237000 Prepaid insurance 89900 Total liabilities $466500 Stock investments (long-term) 270000 Land 251000 Buildings $316000 Common stock $395400 Less: Accumulated depreciation (62500) 253500 Retained earnings 728500 Trademarks 222000 Total stockholders' equity $1123900 Total assets $1590400 Total liabilities and stockholders' equity $1590400
Answer:
Total Current Assets - $593,900
Explanation:
Current assets are resources that are easily used for business transactions.
These are assets that are usually accounted, sold or used by the business for one year or over the next period of time. Current assets include cash and cash equivalents, accounts receivable, merchandise inventory, and prepaid assets.
Thus, the total current assets of Skysong, Inc amount to $593,900 (Cash - $193,000, Accounts receivable - $140,000, Inventory - $171,000, and Prepaid insurance - $89,900).
The stockholders' equity section of Gunkel Corporation as of December 31, 2014, was as follows:
Common stock, par value $2; authorized 20,000 shares;
issued and outstanding 10,000 shares
$20,000
Paid-in capital in excess of par
30,000
Retained earnings
95,000
$145,000
On March 1, 2015, the board of directors declared a 15% stock dividend, and accordingly 1,500 additional shares were issued. On March 1, 2015, the fair value of the stock was $6 per share. For the two months ended February 28, 2015, Gunkel sustained a net loss of $15,000.
What amount should Gunkel report as retained earnings as of March 1, 2015?
Answer:
The ending balance of the retained earning is $71,000
Explanation:
For computing the ending balance of the retained earning account, we need to apply the equation which is presented below:
Ending retained earning balance = Beginning retained earning balance - net loss - dividend declared
= $95,000 - $15,000 - (1,500 shares × $6 per share)
= $95,000 - $15,000 - $9,000
= $71,000
The 15% dividend represents additional shares issued
When responding to questions face-to-face, how should you organize your response?
(A) Using the same format you would use if you were responding in writing.
(B) Using a direct format.
(C) Using the same format as a goodwill message.
(D) By asking for clarification.
(E) Using an indirect format.
Answer:
A. Using the same format you would use if you were responding in writing
Explanation:
here the answer should be A that is
A. Using the same format you would use if you were responding in writing.
What this means is that, the response should be neutral and catered in a way that we would if we're writing the answer in order to allow a better, more neutral understanding of the process, unless otherwise stated.
Stockholders' Equity Section of Balance SheetThe following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year:Common Stock, $15 par $181,500Paid-In Capital in Excess of Par 14,520Paid-In Capital from Sale of Treasury Stock 7,800Retained Earnings 300,000Treasury Stock 11,305Prepare the Stockholders' Equity section of the balance sheet as of June 30. Fifty thousand shares of common stock are authorized, and 595 shares have been reacquired.Goodale Properties Inc.Stockholders' EquityJune 30, 20XX
Answer: $492,515
Explanation:
Total Paid-In Capital:
= 12,100 shares of common stock at $15 par + Paid in capital in excess of par -Common Stock + Paid in capital from Sale of treasury stock
= $181,500 + 14,520 + 7,800
= $203,820
Total Stockholders' Equity = Total Paid-In Capital + Retained Earnings - Treasury stock
= $203,820 + 300,000 - 11,305
= $492,515
You have 25 years left until retirement and want to retire with $1.1 million. Your salary is paid annually, and you will receive $61,000 at the end of the current year. Your salary will increase at 4 percent per year, and you can earn a return of 10 percent on the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year?
Answer:
percentage of your salary save each year is 13.24%
Explanation:
given data
time period t = 25 year
amount = $1.1 million
salary = $61000
increase r1 = 4 percent per year = 0.04
return r2 = 10 percent = 0.1
to find out
what percentage of your salary must you save each year
solution
we consider here annual saving = A
so amount formula is
amount = A × [tex]\frac{(1+r1)^t -(1+r2)^t}{r1-r2}[/tex]
here A is annual saving and r1 is increase rate and r2 is return rate
1100000 = A × [tex]\frac{1.1^{25} - 1.04^{25}}{0.1-0.04}[/tex]
A = $8079.45
so
proportion of salary is [tex]\frac{8079.45}{61000}[/tex]
proportion of salary = 13.24%
so percentage of your salary save each year is 13.24%
Suppose a report on CNN says that the United States is heading into a recession. As a result, Bert's family, as well as many other like-minded families and individuals, reduces their spending and instead fills up their savings accounts for potential hard times.As a result of this behavior, In macroeconomics, this result is known as ____
Answer: The paradox of thrift
Explanation: In simple words, paradox of thrift refers to a situation when in recession the individuals in the economy stops spending and starts saving more. This behavior further results in decrease in demand and hindrance in economic growth.
In the given case, many families starts saving more due to a report from the CNN that a recession is coming ahead.
Hence from the above we can conclude that the correct answer is paradox of thrift.
All of the following are methods that aid management in analyzing the expected results of capital budgeting decisions EXCEPT:
a. accrual accounting rate-of-return method
b. discounted cash-flow method
c. future-value cash-flow method
d. payback method
Answer: Option A
Explanation: Capital budgeting is the process by which an analyst using different tools such as discounted cash flow, future cash flow and payback period tries to evaluate the prospective long term investments of an organisation.
Accrual accounting method is an accounting convention and not a capital budgeting tool. It states that every transaction of the entity must be recorded on accrual basis.
Thus from the above we can conclude that the correct option is A.
The future-value cash-flow method is not typically used in analyzing the expected results of capital budgeting decisions. Instead, the accrual accounting rate of return, discounted cash flow, and payback methods are commonly used.
Explanation:All of the options provided are methods that may help management to analyze the expected results of capital budgeting decisions except for the future-value cash-flow method. The accrual accounting rate of return method, the discounted cash-flow method, and the payback method are all widely utilized to analyze capital budgeting. However, the future-value cash-flow method is not typically used in this context as capital budgeting is about evaluating the present value of future cash inflows and outflows relevant to a project, rather than the future value of these cash flows.
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Your wealthy uncle established a $2,200 bank account for you when you were born. For the first 8 years of your life, the interest rate earned on the account was 6%. Since then, rates have been only 4%. Now you are 21 years old and ready to cash in. How much is in your account? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
$5.838,52
Explanation:
First of all, you have to calculate the future value of your money with a compound interest rate, but initially you have to calculate the first 8 years with the interest rate of 6% so you have to do the next operation:
Future Value= Present Value *(( 1+ interest rate)^(n))
where n represents the number of years
Future Value= 2.200* (( 1+ 6%)^(8))
Future Value 8 year = $3.506,47
Now that you have that value you need to calculate the money generated in the next 13 years with the same formula but with the new amount of money
Future value 21 year= $3.506,47 *(( 1+4%)^(13))
Future value 21 year= $5.838,52
Finally, you can ask to the bank the $5.838,52 cash
The amount in your account at age 21 is $5,841.22. This includes the interest accrued over both periods.
Step 1
To determine the amount in the bank account at age 21, we need to calculate the compound interest in two phases: from birth to age 8 (at 6%) and from age 8 to age 21 (at 4%).
Phase 1: From Birth to Age 8 (6% Interest)
The formula for compound interest is:
[tex]\[ A = P \left(1 + \frac{r}{n}\right)^{nt} \][/tex]
where:
- A = the future value of the investment/loan, including interest
- P = the principal investment amount ($2,200)
- r = the annual interest rate (6% or 0.06)
- n = the number of times that interest is compounded per year (assumed to be 1 for simplicity)
- t = the number of years the money is invested (8 years)
First, calculate the amount after 8 years:
[tex]\[ A_1 = 2200 \left(1 + 0.06\right)^8 \][/tex]
[tex]\[ A_1 = 2200 \left(1.06\right)^8 \][/tex]
[tex]\[ A_1 = 2200 \times 1.593848 \][/tex]
[tex]\[ A_1 = 3506.47 \][/tex]
Step 2
Phase 2: From Age 8 to Age 21 (4% Interest)
Now we use the amount from Phase 1 as the principal for the next period.
- [tex]\( P = 3506.47 \)[/tex]
- [tex]\( r = 0.04 \)[/tex]
- [tex]\( t = 21 - 8 = 13 \)[/tex]
Calculate the amount after the next 13 years:
[tex]\[ A_2 = 3506.47 \left(1 + 0.04\right)^{13} \][/tex]
[tex]\[ A_2 = 3506.47 \left(1.04\right)^{13} \][/tex]
[tex]\[ A_2 = 3506.47 \times 1.665318 \][/tex]
[tex]\[ A_2 = 5841.22 \][/tex]
We calculate the future value of the initial deposit over the first 8 years at a 6% interest rate, then use the resulting amount as the principal for the remaining 13 years at a 4% interest rate. The compound interest formula is applied in both phases to determine the final amount.
At Backstreet Books, Inc., the department manager uses a hand-held scanner to determine the quantity of each best seller the bookstore has on its shelves, how many copies of each book was sold the past week and the past month, and exactly when the next shipment of these books is expected to arrive. Backstreet Books embraces the strategy of _______.
Answer: Using technology
Explanation: The backstreet books is using technology to say aware of the needs of customers and make their business operations more fast.
In the given case, the company is using the scanner so that they can keep records of inventory and sales they made. They are using the technological advancement in their business operations for running the activities more efficiently.
The use of scanner for inventory and best selling book records will help the company to keep up with the demand of customers and also helps in future planning.
Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $4.25 . Michelle was willing to pay up to $7.75 for the cappuccino and Paul's Cafe and Bakery was willing to accept $0.75 for the cappuccino. Based on this information, answer the questions.
(a) Michelle's consumer surplus: $ ____
(b) Paul's Cafe and Bakery's producer surplus: $ ____
Answer:
a. Michelle's consumer surplus: $3.5
b. Paul's Cafe and Bakery producer surplus: $3.5
Explanation:
This one is simple I attached a graphic so you can understand me better:
The consumer surplus is just the difference between the price payed and the price willed to pay by the consumer, in this case the price payed was $4.25 but Michelle was willing to pay up to $7.75 so we just substract this numbers
7.75 - 4.25 = 3.5
Same for the producer surplus which is the difference between the price the consumer pay and the price that the producer was willing to accept.
4.25 - 0.75 = 3.5
Michelle's consumer surplus is $3.50 and Paul's Cafe and Bakery's producer surplus is also $3.50.
Explanation:In the context of this question, the consumer surplus refers to the difference between the maximum price a consumer is willing to pay and the actual price paid. Similarly, the producer surplus is the difference between the lowest price at which a producer is willing to sell a product and the actual price received.
Therefore, in Michelle's case:
(a) Consumer Surplus = Willingness to pay - Actual price = $7.75 - $4.25 = $3.50(b) For Paul's Cafe and Bakery, Producer Surplus = Actual price - Cost of production = $4.25 - $0.75 = $3.50Learn more about Surplus here:https://brainly.com/question/35248992
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9 . Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Jacob needed money for some unexpected expenses, so he borrowed $2,138.41 from a friend and agreed to repay the loan in three equal installments of $800 at the end of each year. The agreement is offering an implied interest rate of . Jacob’s friend, Devan, wants to go to business school. While his father will share some of the expenses, Devan still needs to put in the rest on his own. But Devan has no money saved for it yet. According to his calculations, it will cost him $31,897 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $3,800 at the end of every year in a mutual fund, from which he expects to earn a fixed 6% rate of return. It will take approximately for Devan to save enough money to go to business school.
To calculate the implied interest rate and period, we can use the future value of an annuity formula. For Jacob's loan, we can find the implied interest rate by solving an equation. For Devan's savings, we can use the formula to calculate the time it will take him to save enough money for business school.
Explanation:The implied interest rate and period can be calculated using the formula for the future value of an annuity. For Jacob's loan of $2,138.41, with three equal installments of $800, the implied interest rate can be determined by finding the annuity's future value and then calculating the interest rate. To do this, we can solve the equation:
2,138.41 = 800 × [(1 + r)³ - 1] / r
We can then use numerical methods or an online annuity calculator to find the implied interest rate. For Devan's situation, we can use the future value of an annuity formula to calculate how long it will take him to save enough money for business school. The formula is:
PV = PMT × [(1 - (1 + r)⁻ⁿ) / r]
By substituting the given values, such as PV = $31,897, PMT = $3,800, and r = 6%, we can solve for n to find the approximate time.
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At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $309,000 and $600 (credit) in Allowance for Uncollectible Accounts. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. Bad debt expense for the year should be:
Answer:
Bad debt expense for the year should be: $14.850
Explanation:
Balance
Accounts Receivable $ 309.000
Allowance for Uncollectible Accounts $ 600
Suggestion
Allowance for Uncollectible Accounts 5%
Allowance for Uncollectible Accounts $15.450
Complement
Bad debt expense $ 14.850
Allowance for Uncollectible Accounts $ 14.850
At the beginning of the year (January 1), Buffalo Drilling has $10,000 of common stock outstanding and retained earnings of $7,000. During the year, Buffalo reports net income of $7,300 and pays dividends of $2,000. In addition, Buffalo issues additional common stock for $6,800.Prepare the statement of Shareholer'sequity in the end of the year.
Answer:
Shareholders Equity
INITIAL Shareholders Equity $ 17.000
Common Stock $ 6.800
Retained Earnings $ 5.300
FINAL Shareholders Equity $ 29.100
Explanation:
Retained Earnings Report
Opening retained earnings $ 7,000
Add: Net Income $ 7,300
Subtotal $ 14,300
Less: Dividens -$ 2,000
Total $ 12,300
Stockholders' Equity INITIAL FINAL
Common Stock $ 10,000 $ 16,800
Retained Earnings $ 7,000 $ 12,300
TOTAL EQUITY $ 17,000 $ 29,100
You will make the following investments for a trip around the world: $2,600 today, $4,000 at the end of year two, and $1500 at the end of year five. (A) How much will you have in six years if you can earn 4.2% on your investments? (B) What equivalent amount could you put away today as a lump sum and have the same amount in six years?
Answer:
a) $9606.53
b) $7505.16
Explanation:
Giving the following information:
Investment
$2,600 year 0
$4,000 at the end of year two
$1500 at the end of year five.
i=0,42
A) FV=2600*(1,042^6)= $3328
FV=4000*(1,042^4)= $4715,53
FV=1500*(1,042^1)= $1563
Total= $9606.53
B) We need to find the present value of $9606.53
PV= FV/[(1+i)^n]
PV= 9606.53/1,042^6= $7505.16
Suppose that France and Sweden both produce oil and shoes. France's opportunity cost of producing pair of shoes is 4 barrels of oil, while Sweden's opportunity cost of producing a Pair of shoes is 8 barrels of oil. By comparing the opportunity cost of producing shoes in the two countries, you can tell that has a comparative advantage in the production of shoes and has a comparative advantage in the production of oil. Suppose that France and Sweden consider trading shoes and oil with each other. France can gain from specialization and trade as long as it receives more than of oil for each pair of shoes it exports to Sweden. Similarly, Sweden can gain from trade as long as it receives more than of shoes for each barrel of oil it exports to France. Based on your answer to the last question, which of the following terms of trade (that is, price of shoes in terms of oil) would allow both Sweden and France to gain from trade? Check all that apply. 3 barrels of oil per pair of shoes 1 barrel of oil per pair of shoes 5 barrels of oil per pair of shoes 9 barrels of oil per pair of shoes
Explanation:
France's opportunity cost of producing a pair of shoes is
= 4 barrels of oil
Sweden's opportunity cost of producing a pair of shoes is
= 8 barrels of oil
France's opportunity cost of producing a barrel of oil is
= [tex]\frac{1}{4}[/tex]
= 0.25 pairs of shoes
Sweden's opportunity cost of producing a barrel of oil is
= [tex]\frac{1}{8}[/tex]
= 0.125 pairs of shoes
A country is considered to be having a comparative advantage in producing a good if it can produce it at a lower opportunity cost as compared to the other country.
Here, France has a lower opportunity cost of producing shoes. So we can say that it has a comparative advantage in making shoes.
Sweden has a lower opportunity cost in producing oil so it has a comparative advantage in making oil.
France can gain from trade if it gets more than 4 barrels of oil for a pair of shoes. While Sweden can gain from trade if it gets more than 0.125 pairs of shoes for a barrel of oil.
The price for trade to happen should be 5 barrels of oil per pair of shoes as France want more than 4 barrels of oil which is its opportunity cost.
9 barrels of shoes is more than Sweden's opportunity cost of producing a pair of shoes, so Sweden will not be willing to pay it.
What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500?
a. Small automobiles become more fashionable:
b. The price of large automobiles rises (with the price of small autos remaining the same):
c. Income declines and small autos are an inferior good:
d. Consumers anticipate that the price of small autos will greatly come down in the near future:
e. The price of gasoline substantially drops:
Answer:
a. Demand will increase.
b. Demand will increase.
c. Demand will increase.
d. Demand will decline.
e. Demand will increase.
Explanation:
a. If small automobiles become more fashionable, people will prefer them more. This will lead to an increase in demand for autos.
b. If there is an increase in the price of large automobiles and the price of the small automobiles remain the same, people will prefer the cheaper substitutes. This will cause the demand for small automobiles to increase.
c. Inferior goods have a negative income effect. SO, when income declines the demand for small autos will increase and vice versa.
d. If consumers expect the price of small autos to fall in the near future, they will hold their money to buy autos when their price fall. This will cause the current demand to fall.
e. When the price of gasoline drops it will become cheaper to use autos. This will lead to an increase in demand for autos.
Answer:
(a) This will lead to an increase the demand for small automobiles such as mini-cooper and fiat 500.
(b) An increase in the price of its related good, will lead to an increase the demand for small automobile.
(c) There is an inverse relationship between the income of an individual and the demand for an inferior good. So, if the income of an individual declines as a result the demand for small autos increases.
(d) This will reduces the demand for small automobiles as future prices of small autos are expected to be fall.
(e) This is ambiguous. We know that autos and gasoline are complimentary goods, so if there is a decrease in the price of gasoline then this will result in rising demand for all the cars.
Connecticut, Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Connecticut, Inc. Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Increase / (Decrease) Cash $ 22 comma 000 $ 18 comma 000 $ 4 comma 000 Accounts Receivable 31 comma 000 39 comma 000 (8 comma 000) Merchandise Inventory 56 comma 000 25 comma 000 31 comma 000 Plant and Equipment 126 comma 000 93 comma 000 33 comma 000 Accumulated DepreciationminusPlant and Equipment (48 comma 000) (40 comma 000) (8 comma 000) Total Assets $ 187 comma 000 $ 135 comma 000 $ 52 comma 000 Additional information provided by the company includes the following: 1. Equipment was purchased for $ 67 comma 000 with cash. 2. Equipment with a cost of $ 34 comma 000 and accumulated depreciation of $ 7 comma 100 was sold for $ 47 comma 000. What was the amount of net cash provided by (used for) investing activities? A. $(166 comma 000) B. $ 166 comma 000 C. $(20 comma 000) D. $ 20 comma 000 Click to select your answer.
Answer:
D. $ 20 comma 000
Explanation:
First is necessary to find the total cash by indirect method which is equal to the variance in the amount of Cash at the Balance Sheets.
Next is necessary remove from that balance the Equipment purchased by 67,000 and then the Equipment sold by 47,000, with this modifications we have the amount of net cash provided by investing activities.
Assets 2019 2018
Cash $22,000 $18,000
Accounts Receivable $31,000 $39,000
Inventory $56,000 $25,000
TOTAL CURRENT ASSETS $109,000 $82,000
Property and Equipment $126,000 $93,000
Depreciation Acc. -$48,000 -$40,000
Building $33,000
TOTAL ASSETS $220,000 $135,000
Cash Flow Ind Method $4,000
Depreciation $8,000
Equipment Sold $40,000
Inventory $31,000
Accounts Receivable -$8,000
Equipment Purchased -$67,000
Answer:
$20 comma (,) 000
Explanation:
Hokey Min's Kleen Karpet cleaned 85 rugs in October, consuming the following resources:Labor: 525 hours at $17 per hourSolvent: 120 gallons at $8 per hourMachine Rental: 20 days at $50 per hour(a) Labor productivity per dollar = ____ rugs/dollar (round your response to four decimal places).(b) Multifactor productivity =_____rugs/dollar (round your response to four decimal places).
Answer:
(a) The Labor productivity per dollar = 0.0095 rugs/dollar.
(b) The Multifactor productivity = 0.0078 rugs/dollar.
Explanation:
Given information:
Number of rugs = 85
Labors: 525 hours at $17 per hour.
Total cost of labors = 525 × 17 = $8925
Solvent: 120 gallons at $8 per hour.
Total cost of solvent = 120 × 8 = $960
Machine Rental: 20 days at $50 per hour.
Total rent = 20 × 50 = $1000
Total cost = Total cost of labors + Total cost of solvent + Total rent
Total cost = $8925 +$960 +$1000 =$10885
(a)
We need to find Labor productivity per dollar.
[tex]\text{Labor productivity}=\frac{outpu t}{\text{Labor cost}}[/tex]
[tex]\text{Labor productivity}=\frac{85}{8925}[/tex]
[tex]\text{Labor productivity}=0.0095238[/tex]
[tex]\text{Labor productivity}\approx 0.0095[/tex]
Therefore the Labor productivity per dollar = 0.0095 rugs/dollar.
(b)
We need to find the Multifactor productivity.
[tex]\text{Multifactor productivity}=\frac{Outp ut}{\text{Total cost}}[/tex]
[tex]\text{Multifactor productivity}=\frac{85}{10885}[/tex]
[tex]\text{Multifactor productivity}=0.0078089[/tex]
[tex]\text{Multifactor productivity}\approx 0.0078[/tex]
Therefore the Multifactor productivity = 0.0078 rugs/dollar.
Final answer:
Labor productivity per dollar for Hokey Min's Kleen Karpet is 0.009526 rugs/dollar, and the multifactor productivity is 0.004275 rugs/dollar, both rounded to four decimal places.
Explanation:
To answer the question about labor productivity per dollar and multifactor productivity for Hokey Min's Kleen Karpet, we need to calculate these based on the information given about the resources consumed.
(a) To find the labor productivity per dollar, we use the total number of rugs cleaned and divide that by the total labor cost:
Labor cost = 525 hours × $17 per hour = $8,925Labor productivity per dollar = 85 rugs / $8,925 = 0.009526 rugs/dollar (rounded to four decimal places)(b) To calculate the multifactor productivity, we sum all the costs and divide the number of rugs cleaned by this total cost:
Total solvent cost = 120 gallons × $8 per gallon = $960.Total machine rental cost = 20 days × $50 per hour = Assume a 10-hour day, $50 × 10 hours = $500/day, so $500/day × 20 days = $10,000.Total cost = Labor cost + Solvent cost + Machine cost = $8,925 + $960 + $10,000 = $19,885.Multifactor productivity = 85 rugs / $19,885 = 0.004275 rugs/dollar (rounded to four decimal places).In the RST partnership, Ron's capital is $80,000, Stella's is $75,000, and Tiffany's is $50,000. They share income in a 3:2:1 ratio, respectively. Tiffany is retiring from the partnership. Each of the following questions is independent of the others.
Refer to the above information. Tiffany is paid $56,000, and all implied goodwill is recorded. What is the total amount of goodwill recorded?
A. $0
B. $6,000
C. $30,000
D. $36,000
Answer: Option (D) is correct.
Explanation:
Given that,
Ron's capital = $80,000
Stella's = $75,000
Tiffany's = $50,000
Income sharing ratio = 3:2:1
Tiffany is retiring from the partnership
Amount paid to Tiffany = $56,000
Bonus = Amount paid to Tiffany - Tiffany's capital
= $56,000 - $50,000
= $6,000
Above bonus is 1/6th of goodwill.
Therefore, the total amount of goodwill recorded would be:
Goodwill = [tex]\frac{6,000}{\frac{1}{6} }[/tex]
= $36,000
How does the pay-as-you-go procedure apply to wage earners? To persons who have income from sources other than wages?
Answer:
Pay as you go require employers to withhold taxes from the employee wages. Other persons have to make payments quarterly to IRS.
Explanation:
This mean that the employers will act as an IRS agent
Lucas Co. has a job-order cost system. For the month of April, the following debits (credits) appeared in the general ledger account, work-in-process: April 1 Balance $ 24,000 30 Direct materials 80,000 30 Direct labor 60,000 30 Factory overhead 54,000 30 To finished goods (200,000) Lucas applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 100, the only job still in process at the end of April, has been charged with factory overhead of $4,500. The amount of direct materials charged to Job No. 100 was
To find the amount of direct materials charged to Job No. 100, you need to calculate the total direct materials used in April and allocate it proportionally to the jobs. Based on the provided information, the amount of direct materials charged to Job No. 100 is $56,000.
Explanation:In a job-order cost system, direct materials are charged to each specific job. To find the amount of direct materials charged to Job No. 100, we need to calculate the total direct materials used in the month of April and allocate it proportionally to the jobs.
Based on the information provided:
Total direct materials used in April = Direct materials debited in general ledger - Initial balance = $80,000 - $24,000 = $56,000Total direct labor cost in April = $60,000Factory overhead applied to Job No. 100 = $4,500To find the amount of direct materials charged to Job No. 100, we can use the predetermined overhead rate:
Direct materials charged to Job No. 100 = Total direct materials used in April × (Direct labor cost of Job No. 100 / Total direct labor cost in April)
Direct materials charged to Job No. 100 = $56,000 × ($60,000 / $60,000) = $56,000
Final answer:
To calculate the amount of direct materials charged to Job No. 100, we would typically subtract direct labor and factory overhead from the ending work-in-process inventory and to finished goods costs. However, not all necessary figures are provided in the question.
Explanation:
The student is asking how to calculate the amount of direct materials charged to Job No. 100 given factory overhead and a predetermined overhead rate based on direct labor cost. Lucas Co. applies overhead to production at a predetermined rate of 90% of direct labor cost. Since Job No. 100 was charged with $4,500 in factory overhead, we find the direct labor cost by dividing the factory overhead by the predetermined rate:
$4,500 ÷ 0.90 = $5,000 (direct labor cost for Job No. 100)
To find the direct materials cost, we use the information on the job-order cost system and the fact that the ending balance of work-in-process inventory will consist of the direct materials, direct labor, and applied overhead for Job no. 100. Given that Job No. 100 is the only job still in process, we need to use the following equation:
Ending Work-in-Process Inventory = Beginning Balance + Direct Materials + Direct Labor + Factory Overhead - To Finished Goods
Since we're solving for Direct Materials in this case and we have all other values, we can rearrange the equation:
Direct Materials charged to Job No. 100 = Ending Work-in-Process Inventory + To Finished Goods - Beginning Balance - Direct Labor (already found) - Factory Overhead (already found)
However, the question does not provide all of the necessary figures to find the ending balance of work-in-process or the total charges to finished goods for the period; additional information is needed to answer this calculation.
Kangaroo Company had the following amounts on its balance sheet as of December 31, 2018: Inventory $325,000 Notes Payable 100,000 Cash 150,000 Common Stock 750,000 Net Property, Plant, & Equipment 600,000 Accounts Receivable 30,000 Accounts Payable 45,000 Retained Earnings ? What is the balance of retained earnings? 210,000 180,000 310,000 750,000
Answer:
The balance of retained earning is $210,000
Explanation:
In this question, we have to apply the accounting equation which is shown below:
Total assets = Total liabilities + shareholder's equity
where,
Total assets = Inventory + Cash + Net Property, Plant, & Equipment + Accounts Receivable
= $325,000 + $150,000 + $600,000 + $30,000
= $1,105,000
Total liabilities = Notes payable + account payable
= $100,000 + $45,000
= $145,000
And, the shareholder equity = Common stock + retained earnings
Now put these values to the above formula
So, the answer would be equal to
$1,105,000 = $145,000 + $750,000 + retained earnings
$1,105,000 = $895,000 + retained earnings
So, retained earnings = $210,000
The balance of retained earnings can be calculated using the formula: Retained Earnings = Beginning Retained Earnings + Net Income - Dividends. However, without information on net income or dividends, the precise balance cannot be determined.
Explanation:The balance of retained earnings can be calculated by adding the net income or profit for the year to the beginning balance of retained earnings and then subtracting any dividends paid. In this case, we don't have information on net income or dividends, but we can calculate retained earnings by using the formula:
Retained Earnings = Beginning Retained Earnings + Net Income - Dividends
Since we don't have the net income or dividends, we can't calculate the precise balance of retained earnings.
Tim mows neighborhood lawns for extra money. Suppose that he would be willing to mow one lawn for $10, a second lawn for $15, and a third lawn for $24. Also suppose that three neighbors are interested in having their lawns mowed. Mrs. Jones would be willing to pay $31 to have her lawn mowed, Mr. Wilson would be willing to pay $30, and Ms. Smith would be willing to pay $24. If Tim offers to mow lawns for $24 each, what will be his producer surplus? $ nothing. (Enter a numeric response using an integer.)
Answer:
The producer surplus is $23
Explanation:
Producer surplus: The producer surplus show a difference between the producer willing to supply and the received price
In mathematically,
Producer surplus = (willing to supply - received price by the consumer)
So,
The producer surplus would equal to
= ($24 - $10) + ($24 - $15) + ($24 - $24)
= 14$ + $9 + $0
= $23
On February 1, you bought 100 shares of stock in the Francesca Corporation for $42 a share and a year later you sold it for $46 a share. During the year, you received a cash dividend of $1.20 a share. Compute your HPR and HPY on this Francesca stock investment. Round your answer for HPR to three decimal places. Round your answer for HPY to one decimal place
Answer:
12.381%
Explanation:
For computing HPY and HPR, the formula is same which is given below:
The formula to compute the HPY is shown below
= Dividend income + (Selling price - purchase price) ÷ purchase price
= ($1.20 + $46 per share - $42 per share) ÷ $42 per share
= ($1.20 + $4 per share) ÷ $42 per share)
= $5.20 per share ÷ $42 per share
= 12.381%
To calculate the HPR, first determine the total earnings by subtracting the initial investment from the final value and adding dividends. Then, divide the total earnings by the initial investment and express it as a percentage. The HPY is calculated by dividing the HPR by the number of years.
Explanation:To compute the Holding Period Return (HPR) for your Francesca stock investment, you need to calculate the percentage change from the initial value to the final value, including dividends received. Your initial investment was 100 shares at $42 per share, which amounts to $4,200. The final value is 100 shares at $46 per share, which amounts to $4,600. You also received a cash dividend of $1.20 per share, which amounts to $120. So your total earnings are $4,600 (final value) + $120 (dividend) - $4,200 (initial investment) = $520.
The HPR is calculated by dividing the total earnings by the initial investment and expressing it as a percentage: HPR = ($520 / $4,200) * 100 = 12.381% (rounded to three decimal places).
To calculate the Holding Period Yield (HPY), you divide the HPR by the number of years: HPY = 12.381% / 1 = 12.4% (rounded to one decimal place).
Which of the following is true about finding the present value of cash flows? Finding the present value of cash flows tells you what a cash flow will be worth in future years at a specified rate of return. Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return.
Answer: The statement 2, "Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return." Is TRUE.
Explanation: "Finding the FUTURE VALUE of cash flows tells you what a cash flow will be worth in future years at a specified rate of return." is the definition for FUTURE VALUE.
Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return.
Understanding the present value (PV) of cash flows is essential in financial planning and investment analysis.
The present value calculation allows investors to determine the current worth of a future sum of money, factoring in a specific rate of return or discount rate. This is critical because money has a time value, meaning a certain amount today is worth more than the same amount in the future due to its potential earning capacity.Here's a detailed breakdown:
Concept: Present value helps in determining how much to invest today to reach a desired future value. Application: It is used in various fields like finance, real estate, and retirement planning to make informed investment decisions. Importance: It accounts for the time value of money, helping investors understand the worth of future cash flows in today's terms.For instance, if you want $1,000 in 5 years and the annual interest rate is 5%, you would need to invest approximately $783.53 today, calculated using the PV formula.
Stimpleton Company engages in the following cash payments:
Purchase equipment $4,000
Pay rent 700
Repay loan to the bank 5,900
Pay workers' salaries 1,050
What is the total amount of cash paid for operating activities?
A.$1,750
B.$4,000
C.$6,950
D.$9,900
Answer:
A. $ 1.750
Explanation:
from the given infomation, the operating activities are:
1. pay rent = $ 700
2. pay workers salaries = $ 1.050
The total cash paid fpr operating activities = $ 700 + $ 1.050
= $ 1.750
Therefore, the total amount of cash paid for operating activities is $ 1.750.
The total cash paid for operating activities by Stimpleton Company is $1,750, which includes rent and workers' salaries, as purchase of equipment and loan repayment are not operating activities.
Explanation:The total amount of cash paid for operating activities by Stimpleton Company can be calculated by adding up only those expenses that are related to the company's primary operations. In this case, that includes the payment of rent and salaries to workers. The purchase of equipment and repayment of a loan are not considered operating activities; these are investing and financing activities, respectively. To find the total, we sum the rent payment of $700 and the workers' salaries of $1,050 which equals $1,750 (Option A).
(Check your book for an explanation of double counting costs) Consider Diego’s decision to go to college. If he goes to college, he will spend $21,000 on tuition, $11,000 on room and board, and $1,800 on books. If he does not go to college, he will earn $16,000 working in a store and spend $7,200 on room and board. Diego’s cost of going to college is
Answer:
$42,600
Explanation:
Diego's cost to go to school is what he spends less what he stops earning if he works.
Data:
Tuition = $21,000
Room and Board = $11,000
Books = $1,800
Total expenses going to school =?
Salary if he works = $16,000
Expenses if he works = $7,200
Net Income =?
C = Diego’s cost of going to college =?
Calculations:
Expenses of going to school:
$21,000 + $11,000 + $1,800 = $33,800
Net income if you work:
$16,000 - $7,200 = $8,800
C = $33,800 + $8,800 = $42,600
Diego’s cost of going to college is $42,600
Hope this hepls!
Assume the following information pertaining to Moonbeam Company: Beginning Ending Finished goods inventory $ 140,500 $ 133,450 Work in process inventory 92,000 112,750 Direct materials 125,750 140,150 Costs incurred during the period are as follows: Total manufacturing costs $ 910,000 Factory overhead 206,000 Direct materials used 161,950 Materials purchases are calculated to be:
Answer:
The material purchase is $176,350
Explanation:
The computation of material purchase is to be done by applying the formula which is shown below:
= Direct material used + ending balance of direct materials - beginning balance of direct material
= $161,950 + $140,150 - $125,750
= $176,350
The other items which are mentioned in the question are irrelevant. Hence, it is not to be considered in the computation part.
The calculated materials purchases for Moonbeam Company total approximately (E) $176,350.
To calculate the materials purchases for Moonbeam Company, we start by using the formula:
Calculate the direct materials used:
Direct materials used = Beginning direct materials + Purchases - Ending direct materialsGiven:
Beginning direct materials = $125,750Ending direct materials = $140,150Direct materials used = $161,950Substitute into the formula:
$161,950 = $125,750 + Purchases - $140,150Simplify and solve for Purchases:
Purchases = $161,950 + $140,150 - $125,750Purchases = $176,350Therefore, the materials purchases for Moonbeam Company are $176,350.
Complete Question:
Assume the following information pertaining to Moonbeam Company:
Beginning Ending
Finished goods inventory $140,500 $133,450
Work in process inventory $92,000 $112,750
Direct materials $125,750 $140,150
Costs incurred during the period are as follows:
Total manufacturing costs $910,000
Factory overhead $206,000
Direct materials used $161,950
Materials purchases are calculated to be:
A. $147,850
B. $163,900
C. $156,250
D. $152,300
E. $176,350
Audits can be categorized into five types: (1) financial statement audits,(2) audits of internal control, (3) compliance audits, (4) operational audits,and (5) forensic audits.
Required:
For each of the following descriptions, indicate which type of audit (financial statement audit, audit of internal control, compliance audit, operational audit, or forensic audit) best characterizes the nature of the audit being conducted. Also indicate which type of auditor (external auditor, internal auditor, government auditor, or forensic auditor) is likely to perform the audit engagement.
a. Evaluate the policies and procedures of the Food and Drug Administration in terms of bringing new drugs to market.
b. Determine the fair presentation of Ajax Chemical’s balance sheet, income statement, and statement of cash
flows.
c. Review the payment procedures of the accounts payable department for a large manufacturer.
d. Examine the financial records of a division of a corporation to determine if any accounting irregularities have occurred.
e. Evaluate the feasibility of forecasted rental income for a planned low income public housing project.
f. Evaluate a company’s computer services department in terms of the efficient and effective use of corporate resources.
g. Audit the partnership tax return of a real estate development company.
h. Investigate the possibility of payroll fraud in a labor union pension fund.
Answer:
The list is as follows:
a. Evaluate the policies and procedures of the Food and Drug Administration in terms of bringing new drugs to market - Operational - Government
b. Determine the fair presentation of Ajax Chemical’s balance sheet, income statement, and statement of cash flows - Financial Statement - External
c. Review the payment procedures of the accounts payable department for a large manufacturer - Compliance or operational or possibly internal control - Internal or external
d. Examine the financial records of a division of a corporation to determine if any accounting irregularities have occurred - Forensic/Financial - Internal, external or forensic
e. Evaluate the feasibility of forecasted rental income for a planned low income public housing project - Operational - Government, external, or internal
f. Evaluate a company’s computer services department in terms of the efficient and effective use of corporate resources - Operational - Internal or external
g. Audit the partnership tax return of a real estate development company - Compliance - Government
h. Investigate the possibility of payroll fraud in a labor union pension fund - Compliance or forensic - Government, external, or forensic
The answer describes which types of the audit correspond to each description provided and indicates the type of auditor who would be responsible for conducting the audit. The audits can be compliance, financial statement, audit of internal control, operational, or forensic, with related auditors being external, internal, government, or forensic auditors.
Explanation:a. The description corresponds to a compliance audit, typically performed by a government auditor to determine whether the FDA is in compliance with laws and regulations.
b. This falls under a financial statement audit, conducted by an external auditor to ensure that all financial statements are accurately presented.
c. This is an audit of internal control, which could usually be performed by an internal auditor to assess the effectiveness of internal controls in the accounts payable department.
d. This is a type of forensic audit which will usually be conducted by a forensic auditor to determine if there have been any inconsistencies or fraud in the financial records.
e. This is an example of an operational audit, which is likely to be done by either a government auditor or internal auditor to review feasibility of income projections.
f. This scenario indicates an operational audit, looking specifically at the effective use of resources in the computer services department, typically conducted by an internal auditor.
g. This is usually categorized as a financial statement audit performed by an external auditor to verify the fairness and accuracy of the tax return.
h. This task is an example of a forensic audit often performed by a forensic auditor to uncover potential fraud in payroll accounting.
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