Answer:
C. The portion of the investment opportunity set which includes the portfolios with the lowest standard deviation.
Explanation:
Standard deviation is the criterion used in measuring risky assets. Harry Markowitz proposed the Efficient Frontier in the year 1952. Through a graph, portfolios which have the highest potential for returns can be depicted.
For securities to be considered worthy, their standard deviation ought to be lower than the standard deviation of individual securities. When a portfolio measures up to this criterion, then it can be represented on the efficient frontier.
An entity purchased US $1 .000 gross amount of inventory on account with terms of 2 f discount if paidwithin 10 days. The seller was responsible for delivery to the shipping point, with freight of US $30 prepaidby the seller. The entity records purchases at the net amount. The journal entry to record payment 8 daysafter the invoice date is ___________.
Answer:
The answer is given below;
Explanation:
on FOB shipping point,the freight is responsibility of the buyer.If it is paid by the seller,the buyer will compensate to the seller.
As the buyer had already recorded purchases on net of discount,therefore the entry will be;
Accounts Payable (1*.98) Dr.$30.98
Cash Cr.$30.98
It is assumed that freight was previously recorded by the buyer as payable to the seller .
For each of the following service departments, select the activity base listed that is most appropriate for charging service expenses to responsible units. Activity bases to choose from: Number of employees trained Number of payroll checks Number of sales invoices Number of computers Number of conference attendees Number of travel claims Number of purchase requisitions Number of cell phone minutes used Service Department Activity Base a. Accounts Receivable b. Central Purchasing c. Computer Support d. Conferences e. Employee Travel f. Payroll Accounting g. Telecommunications h. Training
Answer:
Explanation:
A. Accounts Receivable - Number of sales invoices
B. Central Purchasing - Number of purchase requisitions
C. Computer Support - Number of computers
D. Conferences - Number of conference attendees
E. Employee Travel - Number of travel claims
F. Payroll Accounting - Number of payroll checks
G. Telecommunications - Number of cell phone minutes used
H. Training - Number of employees trained.
Diana Mark is the president of ServicePro, Inc., a company that provides temporary employees for not-for-profit companies. ServicePro has been operating for five years; its revenues are increasing with each passing year. You have been hired to help Diana in analyzing the following transactions for the first two weeks of April:
a. April 2 Purchased office supplies for $500 on account.
b. April 5 Billed the local United Way office $1,950 for temporary services provided.
c. April 8 Paid $250 for supplies purchased and recorded on account last period.
d. April 8 Placed an advertisement in the local paper for $400 cash; the ad will run in May.
e. April 9 Purchased a new computer for the office costing $2,300 cash.
f. April 10 Paid employee wages of $1,200. Of this amount, $200 had been earned by employees in the prior period and already recorded in the Wages Payable account.
g. April 11 Received $1,000 on account from the local United Way office (from [b] above).
h. April 12 Purchased land as the site of a future office for $10,000. Paid $2,000 down and signed a note payable for the balance.
i. April 13 Received $80,000 cash as additional investment by owner Diana Mark.
j. April 14 Billed Family & Children’s Service $2,000 for services rendered this month.
k. April 15 Received the April telephone bill for $245 to be paid next month.
Required:
For each transaction, prepare a journal entry. If no entry is needed, explain why. Be sure to categorize each account as an asset (A), liability (L), owner’s equity (OE), revenue (R), or expense (E).
Answer:
a.
Purchased office $500 (debit)
Trade Payable $500 (credit)
b.
Trade Receivable : local United Way $1,950 (debit)
Revenue$1,950 (credit)
c.
Trade Payable $250 (debit)
Cash $250 (credit)
d.
Advertisement Prepaid $400 (debit)
Cash $400 (credit)
e.
Computer $2,300 (debit)
Cash $2,300 (credit)
f.
Wages Payable $200 (debit)
Wages Expense $1,000 (debit)
Cash $1,200 (credit)
g.
Cash $1,000 (debit)
Trade Receivable - local United Way office $1,000 (credit)
h.
Land $10,000 (debit)
Cash $2,000 (credit)
Note Payable $8,000 (credit)
i.
Cash $80,000 (debit)
Capital $80,000 (credit)
j.
Trade Receivables$2,000 (debit)
Revenue$2,000 (credit)
k.
Telephone expense $245 (debit)
Payable $245 (credit)
Explanation:
Record the Journals considering the Accounting Equation
Assets = Liabilities + Equity
Income Statement Indicating Standard Cost Variances The following data were taken from the records of Griggs Company for December: Administrative expenses $100,800 Cost of goods sold (at standard) 550,000 Direct materials price variance—unfavorable 1,680 Direct materials quantity variance—favorable (560) Direct labor rate variance—favorable (1,120) Direct labor time variance—unfavorable 490 Variable factory overhead controllable variance—favorable (210) Fixed factory overhead volume variance—unfavorable 3,080 Interest expense 2,940 Sales 868,000 Selling expenses 125,000 Prepare an income statement for presentation to management. Enter all amounts as positive numbers except favorable variances. Use a minus sign to indicate favorable variances. Griggs Company Income Statement For the Month Ended December 31 $ $ Unfavorable Favorable Less variance adjustments to gross profit—at standard: $ $ $ Operating expenses: $ $ Other expense: $
Answer and Explanation:
The preparation of the income statement is shown below:
Income statement indicating the cost variances
Particulars Amount Amount Amount
Sales $868,000
Less: Cost of goods
sold -$550,000
Gross profit $318,000
Favorable Unfavorable
Less: Variances from
standard cost
Direct materials price variance $1,680
Direct materials quantity variance $560
Direct labor time variance $490
Variable factory overhead
controllable variance $490
Fixed factory overhead volume variance $3,080 -$3,360
$314,640
Less: Operating expenses:
Administrative expenses $100,800
Selling expenses $125,000 -$225,800
$88,840
Less: Other expenses:
Interest expenses -$2,940
Net income $85,900
zzy Division of Marine Boats Corporation had the following results last year (in thousands). Sales $ 4 comma 700 comma 000 Operating income $ 600 comma 000 Total assets $ 3 comma 600 comma 000 Current liabilities $ 220 comma 000 Management's target rate of return is 12% and the weighted average cost of capital is 5%. What is the Izzy Division's Residual Income (RI)? A. $ 72 comma 000 B. $ 432 comma 000 C. $ 168 comma 000 D. $ 600 comma 000
Answer:
C. $ 168 comma 000
Explanation:
The computation of the residual income is shown below:
= Operating income - minimum return
where,
Operating income is $600,000
And, the minimum return equal to
= Invested asset amount × minimum rate of return
= $3,600,000 × 12%
= $432,000
Now put these values to the above formula
So, the value would equal to
= $600,000 - $432,000
= $168,000
We simply applied the above formula
Lawn Spray Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On January 31 of the current year, Lawn Spray Inc. reacquired 19,600 shares of its common stock at $19 per share. On June 14, 13,700 of the reacquired shares were sold at $25 per share, and on November 23, 4,700 of the reacquired shares were sold at $20.
Required:
A. Journalize the transactions of January 31, June 14, and November 23. Refer to the Chart of Accounts for exact wording of account titles.
B. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?
C. What is the balance in Treasury Stock on December 31 of the current year?
D. How will the balance in Treasury Stock be reported on the balance sheet?
Answer:
A. The Journal entry is shown below:-
B. $86,900
C.$22,800
Explanation:
The Journal entry is shown below:-
1. Treasury Stock Dr, $372,400
(19,600 shares × $19)
To Cash $372,400
(Being cash is recorded)
2. Cash Dr, $342,500
(13,700 × $25)
To Treasury stock 260,300
(13,700 × $19)
To Paid-In Capital from sale of treasury stock $82,200
(Being cash is recorded)
3. Cash Dr, $94,000
(4,700 × $20)
To Treasury Stock $89,300
(4,700 × $19)
To Paid-In Capital from Sale of Treasury Stock $4,700
(Being reacquired shares is recorded)
B. Balance in Paid-In Capital from Sale of Treasury Stock = $82,200 + $4,700
= $86,900
C. Balance in Treasury Stock = $372,400 - $260,300 - $89,300
= $22,800
Martinez Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $166,900 to $198,400. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 5%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,300, depreciation on delivery equipment $6,600, and insurance on delivery equipment $1,000.
Prepare a monthly flexible budget for each $11,100 increment of sales within the relevant range for the year ending December 31, 2017.
Answer:
monthly flexible budget for each $11,100 increment
Sales $11,100
Less Sales Commissions ( $11,100 × 6%) ($666)
Net Sales $10,434
advertising ( $11,100 × 5%) ($555)
traveling ( $11,100 × 4%) ($444)
delivery ( $11,100 × 2%) ($222)
Net Income $9,213
Explanation:
Consider Only the incremental costs and revenues.Fixed costs are not relevant for the $11,100 increment
Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Culver, Inc. and Larkspur, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
Explanation:
Culver, Inc assets
Assets B. 75,000
Accumulated Depreciation
40,000
Asset A96,000
Cash. 15,000. Gain on exchange. 4,000
Larkspur Asset
(Asset B)
Asset A. 60,000. Accumulated Depreciation 47,000.
Cash. 15,000. Asset B. 110,000. Gain on exchange. 12,000. (b) let's say that the exchange of Assets A and B lacks commercial substance, record the exchange for both Culver, Inc. and Larkspur, Inc . in accordance with generally accepted accounting principles.
Culver's Asset (Asset A)
Asset B. 71,000
Accumulated Depreciation
40,000
Asset A.
96,000
Cash. 15,000
Larkspur Asset (Asset B)
Asset A. 50,400
Accumulated Depreciation
47,000
Cash. 15,000
Asset B. 110,000
Gain on exchange. 2,400.
The following costs relate to Salad Box Company for a relevant range of up to 10,000 units annually: Variable Costs: Direct materials $1.25 Direct labor 0.75 Manufacturing Overhead 1.00 Selling and administrative 1.00 Fixed Costs: Manufacturing overhead $20,000 Selling and Administrative 10,000 Salad Box sells each unit for $10.00. Which of the following equations best describes the equation to determine total profit for a sales volume of 8,000 units
Select one: A. Profit = $10.00X – ($30,000 + $5.50X) B. Profit = $30,000 + $5.50X C. Profit = $10X D. Profit = $10.00X – ($10,000 – $4.50X)
Answer:
Equations best describes the equation to determine total profit for a sales volume: Total profit = $10.00X – ($4X + $30,000)
Explanation:
Total variable costs to produce 1 units = Direct materials + Direct labor + Manufacturing Overhead + Selling and administrative = $1.25 + $0.75 + $1.00 + $1.00 = $4 per unit
Fixed Costs = Manufacturing overhead + Selling and Administrative = $20,000 + $10,000 = $30,000
Box sells each unit for $10.00. X is the number of units are sold
Total profit = Sales revenue - (Total variable costs + Fixed Costs) = $10.00X – ($4X + $30,000)
Final answer:
The correct equation to determine the total profit for Salad Box Company at a sales volume of 8,000 units is option A, which accounts for both variable and fixed costs subtracted from the total sales revenue.
Explanation:
The equation to determine total profit for a sales volume of 8,000 units for the Salad Box Company can be derived from the given cost structure and sales price. Total profit is calculated by subtracting total costs from total sales revenue, where total costs are the sum of fixed and variable costs, and total sales revenue is the sales price per unit times the number of units sold.
Therefore, the equation incorporating the costs (fixed costs plus variable costs per unit times the number of units) and revenues (sales price per unit times the number of units) is:
Profit = ($10.00 × number of units sold) – (Fixed Costs + (Variable Costs per unit × number of units sold))
For Salad Box, this translates to:
Profit = ($10.00 × X) – ($30,000 + $4.00 × X) where X represents the number of units sold
Thus, the correct equation from the given options is A. Profit = $10.00X – ($30,000 + $5.00X).
According to our textbook, a firm creates a(n) _____ by dispersing the stages of its value chain to those locations around the globe where the value added is maximized or where the costs of value creation are minimized. A. integrate circle B. disperse chain C. global web D. international mesh
Answer:
The correct answer is letter "C": global web.
Explanation:
By outsourcing its activities, companies create a global web where their operations are extended to a network of many different firms that play a role in the production process of a good. This approach attempts to manufacture at lower materials and labor hand costs or where there is a special added value for production. Large entities like Apple have a global web for the manufacturing of their technological devices.
Dalton presents an uncertified check for payment more than six months after its date. The check was drawn by Emma on her account in First City Bank. First bank may do all of the following except a. ask Dalton what he would prefer. b. cash the check. c. refuse to cash the check. d. consult Emma.
Answer:
The correct answer is letter "A": ask Dalton what he would prefer.
Explanation:
Checks must be endorsed so they can be cashed. Otherwise, anyone who finds the check can write his or her information at the back of the check and have it cashed. When checks are uncertified but the issuer is known, banks usually make the confirmation with the account holder. Based on the information provided by that person, the cash may or may not be cashed. Typically, until the confirmation is made, the bank holds the check.
Therefore, First City Bank is unlikely to ask Dalton what he prefers to do. Instead, they would just hold the check until the confirmation is made with Emma.
. Thesecost $870,000 which the company pays upfront and it lasts about 3 years before it needs to be replaced. The annual operating cost per oven is $11,000. What is the equivalent total average annual cost of an oven if the required rate of return is 9 percent? (Round your answer to whole dollars)
Answer: $354,738.94
Explanation:
Okay so for the 3 years this machine took up about $11,000 per annum in costs.
And it had an original cost of $870,000.
And we need to find the equivalent total annual average cost.
Cool.
Here's what we'll do.
We'll present value all the costs add them up so that we find the total cost TODAY. Then we will divide by the present value annuity factor for the period since the payments are equal.
Calculating that therefore we have,
Present Value of Total Cost = 870,000 + (11,000/1.09) + (11,000/1.09^2) + (11,000/1.09^3)
= $897,844.24 is the Total Cost.
Now we divide that total cost by the Present Value Interest factor for an annuity of,
PVIFA = ( 1 - ( 1 + r) ^-n )/r
= (1 - (1 + 0.09) ^ -3) / 0.09
= 2.53129466599
= 2.531
Now we divide the total cost by the PVIFA to get,
= 897,844.24/2.531
= 354738.937179
= $354,738.94
$354,738.94 is the equivalent total average annual cost of the oven if the required rate of return is 9 percent.
If you need any clarification do react or comment.
On December 31, Patterson Company had the following list of account balances.
Accounts Payable $42,300
Dividends $17,300
Accounts Receivable 44,000
Equipment 50,800
Accumulated Depreciation, Buildings 63,900
Prepaid Rent 14,700
Accumulated Depreciation, Equipment 10,700
Rent Expense 11,000
Beginning Retained Earnings 31,100
Salaries Expense 6,100
Buildings 119,000
Salaries Payable 8,900
Capital Stock 57,000
Service Revenue 121,600
Cash 39,900
Supplies 10,800
Depreciation Expense, Buildings 8,300
Supplies Expense 9,000
Depreciation Expense, Equipment 4,600
Required:
Prepare a balance sheet on December 31.
Answer:
Patterson Company
Balance sheet as at December 31
Fixed Assets:
Equipment $50,800
Less: Accumulated Depreciation, Equipment $10,700
Buildings $119,000
Less: Accumulated Depreciation, Buildings $63,900
Total Fixed Assets $95,200
Current Assets:
Accounts Receivable $44,000
Prepaid Rent $14,700
Cash $39,900
Supplies $10,800
Total current Assets $109,400
Current Liabilities:
Accounts Payable $42,300
Salaries Payable $8,900
Total current liabilities $51,200
Total Net Assets = $153,400
Shareholders Equity:
Capital Stock $57,000
Retained earnings $96,400
Shareholders equity $153,400
Income statement.
Service Revenue 121,600
Supplies Expense 9,000
Gross Profit 112,600
Less expenses:
Depreciation Expense, Equipment 4,600
Depreciation Expense, Buildings 8,300
Rent Expense 11,000
Salaries Expense 6,100
Net income $82,600
Dividends $17,300
Transfer to retain earnings $65,300
Beginning Retained Earnings 31,100
Closing retained earnings $96,400
Which of these statements about reverse logistics is BEST? A. Reverse logistics systems are usually more cost-efficient than forward-based systems. B. Reverse logistics systems are usually designed to be more flexible than forward-based systems. C. Reverse logistics systems usually play no role in customer satisfaction. D. Reverse logistics systems usually use the same processes and players that comprise the forward-based system.
Final answer:
The best statement about reverse logistics is that they are designed to be more flexible than forward-based systems, due to the variability and uncertainty in handling returns, remanufacturing, and recycling among others.
Explanation:
The question asks which statement about reverse logistics is best. Among the options provided, the most accurate assertion is that reverse logistics systems are usually designed to be more flexible than forward-based systems. Unlike forward logistics that primarily focuses on the efficient delivery of goods from manufacturers to end-users, reverse logistics involves the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal.
This includes activities such as returns management, remanufacturing, refurbishing, recycling, and even hazardous waste disposal. Reverse logistics systems need to be flexible to accommodate the uncertainty and variability inherent in these processes. While cost efficiency, customer satisfaction, and process similarities to forward logistics are all relevant considerations, the core characteristic that sets reverse logistics apart is its requirement for adaptability to manage a wide variety of return conditions and channels.
Suppose you need to prove a suspect’s illicit income circumstantially. Which of the following methods of tracing assets would yield the best result when the suspect is using his illicit funds to accumulate wealth and acquire assets, thus causing his net worth to increase?
A. The income correlation method
B. The bank deposits method
C. The expenditures method
D. The asset method
Answer:
The asset method
Explanation:
Illicit funds are defined as monies and capital that moves illegally accross different countries. The funds are illegally earned and transferred.
When a suspect is using illicit funds to acquire wealth and assets a way to trace this will be to use the asset method.
The asset method involves valuation of assets at market value. When the value of an individual's assets is far above his income we can conclude he is involved in illicit financing.
Assume Sarah is a cash-method, calendar-year taxpayer, and she is considering making the following cash payments related to her business. Calculate the after-tax cost of each payment assuming she is subject to a 37 percent marginal tax rate. (Do not round intermediate calculation.)
Answer:
a. $1260
b. $652
c. $978
d. No after-tax cost is calculated since it is not deductible.
Details of Remaining Part of the Question
The following are payments that were supposed to be listed for the question:
a. $2000 payment for next year's property taxes on her place of business.
b. $800 to reimburse the cost of meals incurred by employees while traveling for the business.
c. $1200 for football tickets to entertain out-of-town clients during contract negotiations.
d. $500 contribution to the mayor's re-election campaign
Explanation:
Calculation of after tax cost equation
a. After tax cost = Payment Due × (1 - Marginal rate)
After tax cost = $2000×(1 - 0.37) = $1260
After tax cost for Sarah is $1260. Since it is property tax, the entire amount will be tax deductible according to the 12 month rule.
b. Calculation of after tax cost equation for reimbursement
After tax cost = Reimbursement cost × (1 - (Reduction on meals×Marginal rate))
After tax cost = $800×(1 - (0.5×0.37)) = $652
Only half the cost of meals is deductible.
c. Calculation of after tax cost equation for Football ticket
After tax cost = Football ticket cost × (1 - (Tax exemption×Marginal rate))
After tax cost = $1200×(1 - (0.5×0.37)) = $978.
Only half the cost of entertainment is deductible.
d. Since the cost here is not directly related with the business, this will not be tax deductible. So the $500 contribution to the mayor's re-election campaign is not tax deductible, therefore no after-tax cost is calculated.
The stockholders’ equity section of Bramble Corp.’s balance sheet at December 31 is presented here.
BRAMBLE CORP.
Balance Sheet (partial)
Stockholders’ equity
Paid-in capital
Preferred stock, cumulative, 12,500 shares authorized, 7,500 shares issued and outstanding $ 787,500
Common stock, no par, 735,000 shares authorized, 565,000 shares issued 2,260,000
Total paid-in capital 3,047,500
Retained earnings 1,158,000
Total paid-in capital and retained earnings 4,205,500
Less: Treasury stock (6,900 common shares) 36,800
Total stockholders’ equity $4,168,700
(a) How many shares of common stock are outstanding?
(b) Assuming there is a stated value, what is the stated value of the common stock?
(c) What is the par value of the preferred stock?
(d) If the annual dividend on preferred stock is $47,250, what is the dividend rate on preferred stock?
(e) If dividends of $73,800 were in arrears on preferred stock, what would be the balance reported for retained earnings?
Answer:
Common stock outstanding is 558,100
Stated value of common stock is $4.00 per share
Par value of preferred stock is $105 per share
Dividend rate on preferred stock is 6%
The arrears of $73,800 would not impact the retained earnings,they are to be declared before the impact is felt in retained earnings.
Explanation:
Common stock outstanding =issued common stock -treasury stock
=565,000-6,900
==558,100
Stated value of common stock=value of shares issued/shares issued
=$2,260,000/565,000
=$4.00 per share
Par value of preferred stock=value of shares issued/shares issued
=$787,500/7500
=$105 per share
preferred dividends=Preferred share capital *Dividend rate on preferred stock
preferred dividends is $47,250
preferred share capital is $787,500
dividend rate on preferred stock is unknown
$47,250=$787,500*Dividend rate on preferred stock
Dividend rate on preferred stock=$47,250/$787,500
=6%
The arrears of $73,800 would not impact the retained earnings,they are to be declared before the impact is felt in retained earnings.
The answers to all the parts of the question are as follows:
a) Common stock outstanding is 558,100
b) Stated value of the common stock is $4 per share
c) Par value of the preferred stock is $105 per share
d) Dividend rate is 6%
e) The arrear of $73,800 will not affect the balance of retained earnings recorded under the balance sheet.
Computations:
a) The shares of common stock outstanding are:
[tex]\begin{aligned}\text{Outstanding Common stock}&=\text{Common stock issued}-\text{Treasury stock}\\&=565,000-6,900\\&=558,100 \end{aligned}[/tex]
b) Stated value of the common stock:
[tex]\begin{aligned}\text{Stated Value of common stock}&=\frac{\text{Total value of shares issued}}{\text{Common stock issued}}\\&=\frac{\$2,260,000}{565,000}\\&=\$4\;\text{per share} \end{aligned}[/tex]
c) Par value of the preferred stock:
[tex]\begin{aligned}\text{Par value of preferred stock}&=\frac{\text{Total value of shares issued}}{\text{Preferred Shares issued}}\\&=\frac{\$7,87,500}{7,500}\\&=\$105\;\text{per share} \end{aligned}[/tex]
d) Annual dividend rate on preferred stock:
[tex]\begin{aligned}\text{Dividend rate on preferred stock}&=\frac{\text{Preferred dividend}}{\text{Preferred share capital}}\\&=\frac{\$47,250}{\$787,500}\times100\\&=6\% \end{aligned}[/tex]
e) Any amount of preferred dividend whose amount is under arrears then will not affect the balances reported for the retained earnings, this is because the amount of arrear of dividend is already under the note with the balance sheet.
To know more about common stock and preferred stock, refer to the link:
https://brainly.com/question/9971462
Your next client is a retailer of ready-to-assemble furniture. He’s sent you the following report: Easy Lifestyle Furniture Popular ready-to-assemble bedroom, living room, and office furniture. Three store locations in the state as well as online sales. Product line has been on the market for 2 years. Sales are steady, but untapped sales potential exists. Heavy marketing efforts have already taken place. Pricing is at or near market prices for competitors’ products. What should you recommend to increase sales? Select an option from the choices below and click Submit.
Answer:
Keep price the same but provide additional services such as free delivery and financing option.
Explanation:
On a critical evaluation of the report, it is apparent that easy lifestyle furniture products come with some strength that the retailer can build on to utilize the untapped sales potential.
Adding extra features through innovation (product development) to the furniture will help in driving a sales growth considering the fact that the sales is already steady.
Providing additional services such as free delivery and financing option , at the current price rate can motivate and attract new customers.
Final answer:
To boost sales for a furniture retailer, recommend a thorough market analysis to discover new customer segments, optimize store layout and online product visibility, and analyze distribution for efficiency. Companies like IKEA demonstrate the effectiveness of employee involvement and optimized store layout.
Explanation:
Recommendations to Increase Sales for a Furniture Retailer
To increase sales for a retailer of ready-to-assemble furniture with steady sales and untapped potential, I recommend conducting a deep market analysis to identify untapped customer segments and enhance product visibility. First, conduct research to define the demographics of potential customers who may not have been reached by previous marketing efforts. Consider aspects such as age, profession, economic status, and geographic location.
Next, evaluate the store's product placement within physical locations and its online presence. Consider how to optimize the visibility and convenience for consumers, which could involve reevaluating the store layout or improving online product categorization. The success of companies like IKEA suggests that encouraging employee involvement and ownership can improve the in-store experience and customer service.
Lastly, analyze the distribution channels for the furniture. Whether it's in-store, online, or through mail, optimizing these channels can enhance customer reach and satisfaction. Additionally, measure the productivity of floor space to ensure that the most profitable products get the best positioning while minimizing costs.
A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual fixed costs of $210,000 and variable costs of $16,000 per unit; location B has annual fixed costs of $410,000 and variable costs of $12,000 per unit. The finished items sell for $22,000 each.
Required:
a. At what volume of output would the two locations have the same total cost?
b. For what range of output would location A be superior?
c. For what range would B be superior?
Answer:
a)
Indifference point = Difference in fixed costs / Difference in variable cost per unit
= ($410,000 - $210,000) / ($16,000 - $12,000)
= 50 units.
b) and C)
I have selected 49 units for calculation as at 50 units, both locations are indifferent.
units 49 49
Location A Location B
Sales 1,078,000 1,078,000
Less: Variable costs 784,000 588,000
Contribution 294,000 490,000
Less: Fixed Costs 210,000 410,000
Profit 84,000 80,000
As we can find, at 49 units, Location A gives more profits than Location B.
So, till 50 units, location A should be used and after 50 units location B should be used.
Explanation:
A small producer of machine tools wants to move to a larger building, and has identified two alternatives is :
A) The volume of output would the two locations have the same total cost is 50 units.
B) As we can find, at 49 units, Location A gives more profits than Location B.
C) So, till 50 units, location A should be used and after 50 units location B should be used.
"Total Cost"Answer A:
The volume of output would the two locations have the same total cost is :
Formula:
Indifference point = Difference in fixed costs / Difference in variable cost per unit
Indifference point= ($410,000 - $210,000) / ($16,000 - $12,000)
Indifference point= 50 units.
The volume of output would the two locations have the same total cost is 50 units.
Answer B:
I have selected 49 units for calculation as at 50 units, both locations are indifferent.
Location A Location B
Sales 1,078,000 1,078,000
Less: Variable costs 784,000 588,000
Contribution 294,000 490,000
Less: Fixed Costs 210,000 410,000
Profit 84,000 80,000
As we can find, at 49 units, Location A gives more profits than Location B.
Answer C:
So, till 50 units, location A should be used and after 50 units location B should be used.
Learn more about "Total Cost":
https://brainly.com/question/15853856?referrer=searchResults
Due to evaporation during production, Plano Plastics Company requires 2 pounds of material input for every 1 pounds of good plastic sheets manufactured. During May, the company produced 5,500 pounds of good sheets.
Compute the total standard allowed input quantity, given the good output produced.
The total standard allowed input quantity for the Plano Plastics Company is 11,000 pounds, determined by multiplying the actual output of 5,500 pounds by the required input per pound of output of 2 pounds.
Explanation:The total standard allowed input quantity for the Plano Plastics Company can be computed based on the provided production ratio and actual output. Given that the company requires 2 pounds of material input for every 1 pound of good plastic sheets, and during May the company produced 5,500 pounds of good sheets, we can calculate the input quantity as follows:
Total good output produced: 5,500 poundsRequired input per pound of output: 2 poundsTotal standard allowed input quantity: 5,500 pounds * 2 = 11,000 poundsTherefore, the total standard allowed input quantity of material for the production of 5,500 pounds of good plastic sheets is 11,000 pounds.
"Which of the following statements is FALSE? A. Total return equals earnings multiplied by the dividend payout rate. B. Cutting the firm's dividend to increase investment will raise the stock price if, and only if, the return of new investments is higher than the cost of capital. C. As firms mature, their earnings exceed their investment needs and they begin to pay dividends. D. We cannot use the constant dividend growth model to value the stock of a firm with rapid or changing growth."
Answer:
A. Total return equals earnings multiplied by the dividend payout rate.
Explanation:
The payout ratio is a financial metric that shows the proportions of the earnings a company pays the shareholders in the forms of dividends. They are expressed as a percentage of the total earnings and some occasion refers top the percentage of the cash flows. Thus is called the dividend payment ratio. And is calculated by the dividend payout ratio equal to the total dividend upon the net income asDPR = Total dividends ÷ Net income.
It shows the company's earnings paid out as dividends to shareholders. A low payout ratio means a signal that the company is reinvesting bulk earnings into the expanding operations.On April 1, Jackson Company purchased $2,440 of supplies on account. On April 1, Jackson Company debited Supplies Expense, which is an alternate way of recording the initial expenditure. By the end of the calendar year, $390 of supplies was used.
Required:
Journalize the adjusting entry on December 31.
Answer:
The answer is given below;
Explanation:
Supplies (2,440-390) Dr.$2,050
Supplies Expense/Retained Earnings Cr.$2,050
The correct entry on April 1 should have been
Supplies Dr.$2,440
Accounts Payable Cr.$2,440
But erroneously instead of debiting supplies,the supplies expense was debited and as result supplies expense was overstated and supplies understated.The entry made was;
Supplies expense Dr.$2,440
Accounts Payable Cr.$2,440
As at December 31, $390 supplies have been expense out,therefore by the difference amount (2,440-390),the expense and supplies will be reinstated to their actual values
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows. Quarter HD-240 1 5,200 2 7,150 3 8,320 4 10,190 The January 1, 2017, inventory of HD-240 is 2,080 units. Management desires an ending inventory each quarter equal to 40% of the next quarter’s sales. Sales in the first quarter of 2018 are expected to be 25% higher than sales in the same quarter in 2017. Prepare quarterly production budgets for each quarter and in total for 2017.
Answer:
Q1 Production 5,980 batteries
Q2 Production 7,618 batteries
Q3 Production 9,068 batteries
Q4 Production 8,714 batteries
Total production for the year is 31,380
Explanation:
Turney Company 2017 Quarterly Production Budgets
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018
Sales 5,200 7,150 8,320 10,190 6,500*
Opening inventory (2,080) (2,860) (3328 ) (4076) (2600)
Closing inventory 2,860 3328 4076 2600 -
Production required 5,980 7,618 9,068 8,714
Sales in Q1 2018=Q1 2017*(1+25%)
Q1 2017 Sales is 5,200
sales in Q1 2018=5,200*(1+25%)
=5,200*(1+0.25)
=5,200*1.25
=$6500*
Sample calculation of closing inventory=40%*next quarter's sales
Q1 2017 closing inventory =7150*40%=2860
Q 2 2017 closing inventory =8320*40%=3328
Q 3 2017 closing inventory =10190*40%=4076
Q 4 2017 closing inventory =6,500*40%=2600
Total production for the year =5980+7618+9068+8714
=31,380
Personal selling: A. Is indirect written communication between buyers and sellers. B. Is indirect spoken communication between buyers and sellers. C. Is not usually combined with other aspects of promotion in the total marketing mix. D. Gets immediate feedback from consumers. E. Is one of the least expensive components of the communications program.
Answer:
The correct answer is letter "D": Gets immediate feedback from consumers.
Explanation:
Personal selling refers to the most traditional type of offering goods and services. It implies having a salesperson in front of a consumer who might be willing to purchase a product. Sellers then, using diverse strategies, try to persuade customers. In some cases, those strategies require clerks to interview the clients to obtain feedback from them and find out what exactly they are looking for. Under such a scenario, salespeople match what the company offer and what consumers want.
Use the following information to prepare the July cash budget for Acco Co. It should show expected cash receipts and cash payments for the month and the cash balance expected on July 31. Beginning cash balance on July 1: $69,000. Cash receipts from sales: 15% is collected in the month of sale, 50% in the next month, and 35% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,770,000; June (actual), $1,470,000; and July (budgeted), $1,470,000. Payments on merchandise purchases: 55% in the month of purchase and 45% in the month following purchase. Purchases amounts are: June (actual), $560,000; and July (budgeted), $650,000. Budgeted cash payments for salaries in July: $400,000. Budgeted depreciation expense for July: $13,000. Other cash expenses budgeted for July: $200,000. Accrued income taxes due in July: $90,000. Bank loan interest paid in July: $7,500.
Answer:
Acco Co's Cash Budget for July
Beginning cash balance on July 1, - $69,000
add a) Expected Cash Receipts for July:
May Sales = 35% x $1,770,000 - $619,500
June Sales = 50% x $1,470,000 - $735,000
July Sales = 15% x $1,470,000 - $220,500
Totaling $1,575,000
less b) Expected Cash Payments for July:
June Purchases = 45% x $560,000 - $252,000
July Purchases = 55% x $650,000 - $357,500
Salaries = $400,000
Other Cash Expenses = $200,000
Accrued Income Taxes = $90,000
Bank Loan Interest = $7,500
Totalling - $1,307,000
Expected Cash balance on July 31 = $337,000 $(69,000 +1,575,000 - 1,307,000)
Explanation:
The accrued income taxes that are due in July must be included in the cash payments since they are expected.
Depreciation expense does not involve a cash payment. It does not appear in cash budgets.
Financial markets and _______ channel _______ to_______ . They also channel money from individuals who want to _______ for the future to those who need cash to spend today. A third function of financial markets is to allow individuals and businesses to adjust their risk. For example, _______ , such as the Vanguard Index fund, and _______ , such as SPDR's or "spiders," allow individuals to spread their risk across a large number of stocks. Financial markets provide other mechanisms for sharing risks. For example, a wheat farmer and a baker may use the _______ to reduce their exposure to wheat prices. Financial markets and intermediaries allow investors to turn an investment into cash when needed. For example, the _______ of public companies are _______ because they are traded in huge volumes on the _______ . _______ are the main providers of payment services by offering checking accounts and electronic transfers. Finally, financial markets provide information. For example, the _______ of a company that is contemplating an issue of debt can look at the yields on existing _______ to gauge how much interest the company will need to pay.a. financial intermediaries; b. savings; c. real investments; d. save; e. mutual funds; f. ETFs; g. commodity markets; h. shares; i.liquid; j.stock market; k.banks; l. CFO; m. bonds
Answer:
Financial intermediaries; savings; real investments; save; mutual funds; ETFs; commodity markets; shares; liquid; stock market; banks; CFO; bonds
Explanation:
Financial markets and FINANCIAL INTERMEDIARIES channel SAVINGS to REAL INVESTMENTS . They also channel money from individuals who want to SAVE for the future to those who need cash to spend today. A third function of financial markets is to allow individuals and businesses to adjust their risk. For example, MUTUAL FUNDS, such as the Vanguard Index fund, and ETF( educational trust funds) , such as SPDR's or "spiders," allow individuals to spread their risk across a large number of stocks. Financial markets provide other mechanisms for sharing risks. For example, a wheat farmer and a baker may use the COMMODITY MARKETS to reduce their exposure to wheat prices. Financial markets and intermediaries allow investors to turn an investment into cash when needed. For example, the SHARES of public companies are LIQUID because they are traded in huge volumes on the STOCK MARKET .
BANKS are the main providers of payment services by offering checking accounts and electronic transfers. Finally, financial markets provide information. For example, the CFO of a company that is contemplating an issue of debt can look at the yields on existing BONDS to gauge how much interest the company will need to pay.
Financial markets channel money, allow risk management, provide liquidity and payment services, and offer valuable information.
Explanation:Financial Markets and their Functions
Financial markets play a crucial role in channeling money to individuals, businesses, and governments. They facilitate the transfer of savings from individuals who want to save for the future to those who need cash to spend today. Financial markets also allow investors to adjust their risk by offering various investment options like mutual funds and exchange-traded funds (ETFs). These investment vehicles help individuals spread their risk across a diversified portfolio of stocks.
Additionally, financial markets provide mechanisms for managing risks. For instance, commodity markets enable entities like farmers and bakers to reduce their exposure to price fluctuations by engaging in futures contracts. Furthermore, financial markets and intermediaries such as banks offer liquidity and payment services, allowing investors to convert their investments into cash when needed. Lastly, financial markets provide valuable information to participants. For example, potential bond issuers can assess prevailing market interest rates by examining yields on existing bonds.
The calculation of WACC involves calculating the weighted average of the required rates of return on debt, preferred stock, and common equity, where the weights equal the percentage of each type of financing in the firm’s overall capital structure. is the symbol that represents the before-tax cost of debt in the weighted average cost of capital (WACC) equation. Avery Co. has $1.4 million of debt, $1.5 million of preferred stock, and $2.1 million of common equity. What would be its weight on common equity? 0.42 0.28 0.33 0.27
Answer:
The weightage of common equity will be 0.42
Explanation:
The weight of each component of financing to the firm is calculated by taking the market value of each component and dividing it by the total market value of the assets of the firm. Where assets = debt + equity
The total assets or value of capital structure for the firm is,
Assets = 1.4 + 1.5 + 2.1 = $5 million
The weightage of common equity in the capital structure is, 2.1 / 5 = 0.42 or 42%
The weight of common equity is computed by dividing the amount of common equity by the total financing. Avery Co.'s weight of common equity is 0.42.
Explanation:In the calculation of the weighted average cost of capital (WACC), the weight of common equity refers to the proportion of funding that a firm gets from common equity or common shares relative to its total financing. Given the data, we can calculate the weight of common equity by dividing the amount of common equity ($2.1 million) by the total amount of funding which is the sum of debt ($1.4 million), preferred stock ($1.5 million), and common equity ($2.1 million). Therefore, the weight of common equity for Avery Co. would be calculated as follows: Weight of Common Equity = Common Equity / (Debt + Preferred Stock + Common Equity) = $2.1 M / ($1.4 M + $1.5 M + $2.1 M) = 0.42. So the correct answer is 0.42.
Learn more about Weight of Common Equity here:https://brainly.com/question/33497847
#SPJ3
On April 12, Hong Company agrees to accept a 60-day, 6%, $6,900 note from Indigo Company to extend the due date on an overdue account. What is the journal entry that Indigo Company would make, when it records payment of the note on the maturity date
Answer:
Debit notes Payable $6,900
Debit interest expense $69
Credit cash $6,969
Explanation:
The interest amount payable on maturity is $6900*6%*2/12=$69
The actual principal remains at $6900
The appropriate entries would to debit notes payable with $6,900 and interest expense with $69 while the credit of $6969 goes to cash account representing an outflow to settle the obligation.
The rationale for this is that settle of an obligation would require debit the payable account.
The journal entry that Indigo Company would make,when it records payment of the note on the maturity is: Debit Notes Payable $7,500; credit Interest Expense $125; credit Cash $7,375. The correct option is C.
A journal entry is a record of a financial transaction in a company's accounting system. It is formatted in a specified way and includes the transaction date, the accounts involved, the sums debited or credited, and a brief description or explanation of the transaction.
The double-entry bookkeeping method is built on journal entries, which guarantee that the accounting formula (Assets = Liabilities + Equity) is accurate and balanced.
Thus, the ideal selection is option C.
Learn more about journal entry here:
https://brainly.com/question/30760248
#SPJ6
The complete question might be:
On April 12, Hong Company agrees to accept a 60-day, 6%, $6,900 note from Indigo Company to extend the due date on an overdue account. What is the journal entry that Indigo Company would make, when it records payment of the note on the maturity date? (Use 360 days a year.)A) Debit Cash $7,625; credit Interest Revenue $125; credit Notes Payable $7,500.B) Debit Notes Payable $7,500; debit Interest Expense $188; credit Cash $7,688.C) Debit Notes Payable $7,500; credit Interest Expense $125, credit Cash $7,375.D) Debit Notes Payable $7,500; debit Interest Expense $125; credit Cash $7,625.E) Debit Cash $7,625; credit Interest Revenue $125; credit Notes Receivable $7,500.
The Shoal Company's manufacturing costs for the third quarter of 2019 were as follows: (CPA adapted) Direct materials and direct labor $ 770,000 Other variable manufacturing costs 135,000 Depreciation of factory building and manufacturing equipment 87,000 Other fixed manufacturing costs 25,000 What amount should be considered product costs for external reporting purposes?
Answer: $1,017,000
Explanation:
In calculating product costs we take the following, Direct materials and direct labor, Other variable manufacturing costs, Depreciation of factory building and manufacturing equipment and Other fixed manufacturing costs.
We add all of those with the result being the Product cost.
Calculating therefore would give us,
= 770,000 + 135,000 + 87,000 + 25,000
= $1,017,000
$1,017,000 is the amount that should be considered product costs for external reporting purposes.
If you need any clarification do comment.
The product costs for external reporting purposes in the Shoal Company's manufacturing costs for the third quarter of 2019 include direct materials, direct labor, other variable manufacturing costs, and depreciation of factory building and manufacturing equipment.
Explanation:The product costs for external reporting purposes in the Shoal Company's manufacturing costs for the third quarter of 2019 include direct materials, direct labor, other variable manufacturing costs, and depreciation of factory building and manufacturing equipment. These costs are considered product costs because they directly relate to the production of goods.
Therefore, the product costs for external reporting purposes would be:
Direct materials and direct labor: $770,000 Other variable manufacturing costs: $135,000 Depreciation of factory building and manufacturing equipment: $87,000The total product costs for external reporting purposes would be $992,000.
Learn more about product costs here:
https://brainly.com/question/32559140
#SPJ3
Working capital cash flow. Cool Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 11% of the monthly projected sales. These plastic bottles cost $0.007 each. The monthly sales for the first four months of the coming year are as follows: January: 1 comma 900 comma 000 February: 2 comma 300 comma 000 March: 2 comma 900 comma 000 April: 3 comma 000 comma 000 What is the monthly increase or decrease in cash flow for inventory given that an increase is a use of cash and a decrease is a source of cash? Note: Enter a decrease as a negative number. What is the change in working capital for January?
Answer:
The answer is attached;
Explanation: