The following financial information is for Chesapeake Corporation are for the fiscal years ending 2018 & 2017 (all balances are normal): Item/Account 2018 2017 Cash $35,000 $24,000 Accounts Receivable 56,000 52,000 Inventory 58,000 44,000 Current Liabilities 76,000 42,000 Net Sales (all credit) 550,000 485,000 Cost of Goods Sold 290,000 265,000 Use this information to determine the number of days in inventory for 2018: (Use a 365 day year. Round & enter your answers to one decimal place and enter the value.)

Answer:

The $280,000 is the income which square report in Tangle for the year.

Explanation:

For computing the income relating to the investment in Tangle for the year, the net income and percentage is applied or we can say equity method is applied.

In mathematically,

Income = Net income × percentage

            = $700,000 × 40%

            =$280,000

All other cost like dividend, market value, purchase price is irrelevant while computing the investment income.

Hence, the $280,000 is the income which square report in Tangle for the year.

Answer: 0.9858

Explanation:

Binomial distribution formula

[tex]P(X=x)=^nC_x\ p^x\ (1-p)^{n-x}[/tex], where P(x) is the probability of getting success in x trials , n is total number of trials and p is the probability of getting success in each trial.

Given : The probability that bulbs in the lot is defective = 0.30

Sample size = 18

If the number of defective bulbs is 2 or more, the lot fails inspection.

Then , the probability that the lot will fail inspection is given by :-

[tex]P(X\geq2)=1-(P(X<2))\\\\=1-(P(0)+P(1))\\\\=1-(^{18}C_0\ (0.3)^0 (1-0.3)^{18}+^{18}C_1\ (0.3)^1 (1-0.3)^{17})\\\\=1-((0.3)^0 (0.7)^{18}+18(0.3)^1 (0.7)^{17})\approx0.9858[/tex]

Hence, the probability that the lot will fail inspection =0.9858

Answer:

There is a 98.58% probability that the lot will fail inspection.

Explanation:

For each light bulb in the production lot, there are two possible outcomes. Either they are defective, or they are not. This means that we can solve this problem using concepts of the binomial probability distribution.

Binomial probability distribution

The binomial probability is the probability of exactly x successes on n repeated trials, and X can only have two outcomes.

[tex]P(X = x) = C_{n,x}.p^{x}.(1-p)^{n-x}[/tex]

In which [tex]C_{n,x}[/tex] is the number of different combinatios of x objects from a set of n elements, given by the following formula.

[tex]C_{n,x} = \frac{n!}{x!(n-x)!}[/tex]

And p is the probability of X happening.

In this problem we have that:

There are 18 light bulbs, so [tex]n = 18[/tex].

30% of the bulbs in the lot are defective. This means that [tex]p = 0.3[/tex].

If the number of defective bulbs is 2 or more, the lot fails inspection. Suppose 30% of the bulbs in the lot are defective. What is the probability that the lot will fail inspection?

This is [tex]P(X \geq 2)[/tex].

Either there are 2 or more defective bulbs, or there are less than two. The sum of the probabilities of these events is decimal 1. So:

[tex]P(X < 2) + P(X \geq 2) = 1[/tex]

[tex]P(X \geq 2) = 1 - P(X < 2)[/tex]

In which

[tex]P(X < 2) = P(X = 0) + P(X = 1)[/tex]

So

[tex]P(X = x) = C_{n,x}.p^{x}.(1-p)^{n-x}[/tex]

[tex]P(X = 0) = C_{18,0}.(0.30)^{0}.(0.70)^{18} = 0.0016[/tex]

[tex]P(X = 1) = C_{18,1}.(0.30)^{1}.(0.70)^{1t} = 0.0126[/tex]

[tex]P(X < 2) = P(X = 0) + P(X = 1) = 0.0016 + 0.0126 = 0.0142[/tex]

Finally

[tex]P(X \geq 2) = 1 - P(X < 2) = 1 - 0.0142 = 0.9858[/tex]

There is a 98.58% probability that the lot will fail inspection.

Answer:

current yield 8.2089552%

YTM = 8.05%

effective annual yield = 4.92%

Explanation:

(A)

current yield = C/P

coupon payment / market price

8.8/107.2 = 0.082089552 = 8.2089552%

(B)

[tex]P = \frac{C}{2} \times\frac{1-(1+YTM/2)^{-2t} }{YTM/2} + \frac{CP}{(1+YTM/2)^{2t}}[/tex]

First par being the present value of the coupon payment and second the redeem of the face value at the end of the bond.

market price 107.2

face value 100

time = 19

rate 8.8%

C = annual coupon payment 100 x 8.8% = 8.8

You solve this using a financial calculation and get the semiannual rate

YTM/2 = 0.040268160

then multiply by 2 to get the annual YTM

0.040268160  x 2 =

YTM = 0.08053632 = 8.05%

(C)

Effective Annual Yield

[tex](1+HPR)^{365/time} -1 = EAY[/tex]

where:

Holding period return:

[tex]\frac{Net \: Return}{Investment} = HPR[/tex]

In this case:

coupon payment + redem - investment = net return

8.8 * 19 + 100 - 107.2 = 160

160/107.2 = 1.492537313

Then

[tex](1+HPR)^{365/time} -1 = EAY[/tex]

[tex](1+1.142537313)^{\frac{365}{19\times365}} -1 = EAY[/tex]

EAY = 0.049242509 = 4.9242509%

The properties of a bond, such as the coupon rate, maturity date and face value, are used to calculate the current yield, the yield to maturity (YTM), and the effective annual yield of a bond. The yield represents the return an investor will receive by holding the bond.

A bond has several parts. It is an 'I owe you' note that an investor receives in exchange for capital or money which the borrower has to pay back at maturity. The specifics of a bond are usually given by the coupon rate or interest rate, its maturity date, and its face value, which is the amount the borrower agrees to pay the investor at maturity.

The current yield on a bond is calculated by the annual income (the interest payment) divided by the current market price. For the bond from Workman Software, the annual interest income is 8.8% of its face value and is currently sold for 107.2% of par. The yield to maturity or YTM represents the total returns expected on a bond if it is held until maturity. This considers both the coupon payments received semiannually and the face value received at the end of maturity. Finally, the effective annual yield takes into account the compounding of interest in a given year.

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Answer:

The contribution per pound for K1, S5, and G9 is $64 per pound, $27 per pound, and $66 per pound respectively.

Explanation:

The contribution margin shows a difference between selling price per unit and the variable cost per unit.

In equation, it is displayed below:

Contribution per unit = Selling price per unit - Variable cost per unit

Since, in the question we have to calculate the contribution margin per pound  for each of the three products. So by using the above equation, the calculation can be made which is shown below:

Contribution margin per pound for Product K1

= K1 Selling price per pound - K1 Variable cost per pound

= $160- $96

= $64 per pound

Contribution margin per pound for Product S5

= S5 Selling price per pound - S5 Variable cost per pound

= $112- $85

=$27 per pound

Contribution margin per pound for Product G9

= G9 Selling price per pound - G9 Variable cost per pound

= $210- $144

=$66 per pound

Other costs and production level is immaterial while calculating contribution margin for these three products.

Hence, the contribution per pound for K1, S5, and G9 is $64 per pound, $27 per pound, and $66 per pound respectively.

Answer:

supplies expense 47,300 DEBIT

  supplies   47,300 CREDIT

Explanation:

[tex]$$Beginning Inventory + Purchase = Ending Inventory + supplies Expense[/tex]

8,900 + 53,300 = 14,900 + supplies expense

8,900 + 53,300 - 14,900 = supplies expense

supplies expense = 47,300

Beginning and Purchase will be the supplies available during the period.

this supplies can be used or stored.

if the stored are 14,900 then the diference was used.

Final answer:

The required adjusting entry at the end of year 3 would include a debit to the Supplies Expense account for $47,300, which is the calculated value of supplies used during the year (beginning balance plus purchases minus the ending physical count).

Explanation:

The subject of this question is accounting, specifically related to the adjusting entries at year-end for the supplies account balance. When a physical count reveals that the supplies on hand at the end of the year cost $14,900, and the company had a beginning balance of supplies of $8,900, we need to account for the supplies used during the year. During year 3, payments for purchases of supplies amounted to $53,300 and were recorded as an expense. However, we need to adjust the expense to reflect the actual supplies used.

To do this, we would calculate the supplies used as follows:

Beginning balance of supplies: $8,900

Add: Purchases of supplies during the year: $53,300

Less: Ending balance of supplies: $14,900 (physical count)

Equals: Supplies expense for the year (supplies used): $47,300

The required adjusting entry at the end of year 3 would therefore include a debit to Supplies Expense for the value of supplies used ($47,300) and a credit to the Supplies account for the same amount, assuming the company had initially debited Supplies Expense when the supplies were purchased.

The reversing entry, typically done at the beginning of the new year, would reverse this process, making the books ready for the new year's transactions.

Answer: Marginally - attached worker

Explanation: While calculating the underemployment rate the government usually includes three groups these are : unemployed workers who are actively looking for work; involuntarily part-time workers and marginally attached workers who want and are available to work , but have given up actively looking.

Therefore Pete would lie under the category of marginally attached worker  who want and are available to work , but have given up actively looking.

Answer:

The Project B is  better from a cash flow standpoint.

Explanation:

Payback period : The payback period is that period in which the investment amount is being repay to the company back in terms of profits or savings.

The formula to compute payback period is shown below

Payback period = Initial Investment ÷ Annual net cash inflows

For Project A = $250,000 ÷ $75,000

                      = 3.33 years

For Project B = $150,000 ÷ $52,000

                      = 2.88 years

By computing the payback period for both the projects, the Project B has less payback period than Project A.

Hence, the Project B is  better from a cash flow standpoint.

To determine which wind-farm tower project is better from a cash flow standpoint, we need to calculate the payback period for each project. Project B has a shorter payback period and is therefore better from a cash flow standpoint.

The payback period is a method used to evaluate investments based on when the initial investment is recovered through the project's net cash flows. To determine which wind-farm tower project is better from a cash flow standpoint, we need to calculate the payback period for each project.

For Project A, we divide the initial investment ($250,000) by the annual net cash flows ($75,000) to get a payback period of approximately 3.33 years.

For Project B, we divide the initial investment ($150,000) by the annual net cash flows ($52,000) to get a payback period of approximately 2.88 years.

Comparing the payback periods, we can conclude that Project B has a shorter payback period and is therefore better from a cash flow standpoint as it takes less time to recover the initial investment.

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Answer:

a debit to Premium on Bonds Payable for $1,966, and a credit to Cash for $20,250.

Explanation:

450,000 bonds face vbalue

11,795 premium

450,000 x 0.09/2 = 20,250 cash procceds

11,795/ 6 = 1,965.83333 = 1,966 premium amortization

After purchasing a delivery van, Martinez Corp. will increase its van account by $55,400. This sum includes the net purchase cost, sales tax, and annual insurance.

Martinez Corp. will increase its van account by the net purchase price of the van, additional costs related to the purchase such as sales tax, and any operational costs like insurance. First, we subtract the discount from the list price to get the net purchase price: $57,000 - $5,400 = $51,600. Next, we add the sales tax to the purchase price: $51,600 + $2,600 = $54,200. And finally, we add the annual insurance cost: $54,200 + $1,200 = $55,400.

Therefore, Martinez Corp. will increase its van account by $55,400.

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Given:

Expected value, E(X)= $600

Net Profit = $99400

Cost of playing once = $600

Solution:

Let the probability of winning be P(X) and that of losing [tex]P(\bar{X})[/tex]

[tex]P(\bar{X})[/tex] = 1 - P(X)

Now expected value, E(X) =  [tex]Profit\times P(X) + loss\timesP(\bar{X}) [/tex]

E(X) = 99400P(X) + (-400)(1 - P(X))

600 = 99400P(X) -400 +400P(X)

P(X) = 0.01

Therefore, the probability of winning is P(X) = 0.01 or 1%

Final answer:

To find the probability of winning a game with an expected value of $600 and a cost to play of $600, we use the expected value formula. The gain from winning is $99,400, leading to a probability of winning of approximately 0.60%.

Explanation:

To calculate the probability of winning, we use the concept of expected value, which is the average amount one can expect to win per game over many plays. Here, the expected value of the game is given as $600, which is also the cost to play. To find the probability of winning, we assume that if you win, there is a net gain of $99,400 ($100,000 - $600 to play). Let's denote the probability of winning as P(win).

The expected value (EV) of the game can be calculated with the formula:

EV = (P(win) × Gain from Winning) - (P(loss) × Cost of Losing)

Since you either win or lose, P(loss) is 1 - P(win) and the Cost of Losing is $600. As the expected value is $600 and the cost of playing is $600:

$600 = (P(win) × $99,400) - ((1 - P(win)) × $600)

By solving for P(win), we find that:

P(win) = $600 / $99,400

P(win) ≈ 0.0060422956 ≈ 0.60%

Thus, the probability of winning the game is approximately 0.60%.

Answer:

The journal entry for issue of common shares is as follows :

1. Cash A/c                $715 000            Dr ($55,000×$13)

   To common stock                     $275,000 ($55,000×5)

    To Additional paid up capital  $4,40000 ($55000×8)

The journal entry for issue of Preference shares is as follows :

Cash A/c                $6,000           Dr ($1,000×$6)

   To Preferred  Shares               $1,000 ($1,000×1)

    To Additional paid up capital  $5,0000 ($1,000×5)

Explanation:

Mainly there are two types of shareholders in the company i.e. equity and preference shareholders. The equity shareholders is the shareholders who carry voting right in the company whereas preference shareholders are those who don't have voting right. The shares means a small part in the company which represent the ownership in the company according to their shares percentage. Whereas, stock represent the securities which are listed in stock exchange.

Following information is given in the question:

1. Issue of common shares = 55,000

2.  Par value of common stock = $5

3. Cash for per share = $13

4. Issue of preference shares = 1,000

5.  Par value of preference stock =$1

6. Per share for preference stock = $6

Journal Entry: The journal entry is the first stage to record the debit and credit side. Debit here means the expenditure incurred by the company whereas the Credit shows the income side which adds value to the company profit.

The journal entry for issue of common shares is as follows :

1. Cash A/c                $715 000            Dr ($55,000×$13)

   To common stock                     $275,000 ($55,000×5)

    To Additional paid up capital  $4,40000 ($55000×8)

The journal entry for issue of Preference shares is as follows :

Cash A/c                $6,000           Dr ($1,000×$6)

   To Preferred  Shares               $1,000 ($1,000×1)

    To Additional paid up capital  $5,0000 ($1,000×5)

Note: The remaining amount will be credited to additional paid up capital with remaining balance.

To journalize the issuance of common and preferred shares for Beauty Island Corporation, debit cash and credit common stock and additional paid-in capital for common stock issuance, and debit cash and credit preferred stock and additional paid-in capital for preferred stock issuance. The common stock issuance involves 55,000 shares of $5 par value stock sold at $13 per share, while the preferred stock issuance involves 1,000 shares of $1 par value stock sold at $6 per share.

To journalize the issuance of the common and preferred shares for Beauty Island Corporation, we need to record the transaction in the company's accounting records. Let's start with the common stock issuance:

Now, let's move on to the preferred stock issuance:

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Answer: Statement A

Explanation: Convertible bonds is a type of bond security which gives its holder the right to convert each bond to a specified number of shares. These are hybrid securities having features of both equity and debt.

.

Warrants are securities that give their holder the right to purchase the common shares of the company at a specified price and before a certain time period.

.

Thus, from the above explanation we can conclude that statement A is correct.

The main difference between convertible bonds and warrants is that convertible bonds allow the investor to convert the bond into a set number of company shares, while warrants grant the right to purchase the shares at a specific price. Both provide a means to benefit from the company's growth through equity exposure, but with less risk compared to directly buying stocks.

The difference between convertible bonds and warrants lies in the rights they confer to the investor. Convertible bonds allow the investor the option to exchange the bond for a predetermined number of shares of the issuing company's stock at a certain conversion price. Meanwhile, a warrant gives the investor the right to purchase shares of the company's stock at a specific price until the expiration date of the warrant. Both instruments are linked to the company's equity and provide a way for investors to potentially benefit from the company's growth without directly purchasing shares.

It's important to note that investing in corporate stocks carries more risk compared to bonds. While the market price of a stock can be volatile, a bond's return is contractually fixed unless the issuer defaults. Bonds, on the other hand, are subject to interest rate risk, which affects the market price of existing bonds if the general level of interest rates change.

Moreover, from a firm's point of view, issuing bonds is a form of borrowing directly from investors which can be cheaper than obtaining a bank loan. A bond is essentially an I.O.U., indicating that the firm owes a contractual amount of interest payments to bondholders and must repay the principal at maturity, regardless of the company's performance. Conversely, equity investors are entitled to a share of the corporation’s earnings, which are not guaranteed and are dependent on the company's success or failure.

Answer:

No, I don't beliave

Explanation:

The classic economic model is based on the price competition system. This is a beneficial system for consumers who will pay a lower price as a result of competition. This works well in some sectors, but not all, such as schools.

In my view, the school cannot be used as a commodity. Schools have different structures for the same purpose, so some differ in their educational approach. If a competitive system is in place, it will pressure schools to streamline education to lower costs and maximize school profit - just as companies do. It turns out that a school does not have the same purpose as companies. The company aims for profit while the school aims to educate.

Final answer:

School choice programs promote competition among schools, encouraging improvement in services to attract students, aligning with economic principles applicable to both private and public organizations.

Explanation:

School voucher programs were designed to create competition among schools, public and private, with the belief that schools would improve their services to attract students. This concept is rooted in economic principles applicable to both private and public organizations.

The idea behind vouchers is that increased competition among schools leads to improved educational outcomes. This competition encourages schools to strive for excellence in order to attract students, similar to how businesses operate in a competitive market.

Although the impact of school choice programs on academic achievement and public school funding is still being studied, the competitive nature of these programs mirrors the economic principles of competition and improvement seen in private and public organizations.

Answer:

You can get a volume discount on your products.- C.

Answer:

C for pf students

Explanation:

Pf

Answer:

Here one sample t test would be the appropriate test of hypothesis to determine if the mean tenure  of employees equals 18 months in the population.

Explanation:

Here we will use one sample t test because in this situation we are comparing a single sample mean to a determined constant and through this we are trying to find out whether there is any statistical difference between sample mean and a know population mean.

Final answer:

The appropriate test to determine if the mean tenure of employees who left the company before 3 years equals 18 months is the one sample t-test. This test compares the sample mean to a known value when the population standard deviation is unknown, and it is suitable for small samples or normally distributed populations.

Explanation:

To determine if the mean tenure of employees who left the company before 3 years equals 18 months, the appropriate test of hypothesis is the one sample t-test. This is because we are comparing the mean tenure of a single sample of employees to a known value (18 months) without comparing it to another sample. The one-sample t-test is especially useful when the population standard deviation is unknown the sample size is relatively small or the population is assumed to be normally distributed.

In conducting the one sample t-test, the null hypothesis (H0) posits that the mean tenure (µ) of employees equals 18 months, whereas the alternative hypothesis (Ha) suggests that the mean tenure is different from 18 months. This constitutes a two-tailed test because the alternative hypothesis does not specify whether the mean tenure is less than or greater than 18 months; it only states that it is not equal to 18 months.

Answer:

$4.55

Explanation:

The corporate tax rate is applied to the net income, not the dividends

And the personal tax rate is applied to non-dividends income so it is not relevant here.

The stockholder would receive $5.00 before taxes. and it will pay 15% for this in taxes.

$5 x 15% = $0.45 dividend taxes

after tax $5 - $0.45 = $4.55

Answer:

Tinker, Evers and Chance inventory investment 10 millions

Explanation:

Inventory investment:

Will be the diference in amount betwene the ending and beginning invnetory. It assumes that a company will use the revenue from sale to at least maintan ther inventory.

When the company invest on inventory, it meas it increase their stock of goods.

A company will disinvest if the ending is lower than beginning, because the sales proceeds were not used to purchase inventory.

Ending inventory - beginning inventory = inventory investment

70 - 60 = 10

Final answer:

The adjusting entry on December 31st for Pablo Management would be a debit to Wage Expense for $1,350 and a credit to Wages Payable for $1,350 to account for one day's wages. The journal entry on January 4th would include a debit to Wage Expense for $4,050 and Wages Payable for $1,350, with a credit to Cash for $5,400 to cover the wages for the four days worked, excluding the unpaid holiday.

Explanation:

To answer the student's question regarding the adjusting and journal entries to be made for Pablo Management's employee wages, we must consider the following:

Adjusting Entry on December 31

An adjusting entry is recorded to recognize expenses incurred but not yet paid. Since the employees worked on Monday, December 31st, but not on New Year's Day, we record the wages for one day.

The adjusting entry on December 31 would be:

This reflects the expense incurred for the day worked in December.

Journal Entry on January 4

The journal entry to record the payment of the employees' wages on Friday, January 4th, must account for the four days worked in the week after excluding the unpaid holiday on January 1st.

The total wages paid on January 4 account for both the payable recognized on December 31 and the wages earned from January 2 to January 4.

Final answer:

Organizations with a strong ethical climate prioritize customers' interests, leading to positive job attitudes and ethical behavior. These companies value fairness, supportiveness, and respect for individual rights, which promotes a culture where people are considered the greatest asset.

Explanation:

Most organizations with strong ethical climates usually focus on the core value of placing customers' interests first. This emphasis on customer-centric values aligns with fostering a set of shared values within the organization, ensuring that employees are encouraged and motivated to treat others the way they would like to be treated themselves. By prioritizing customers' needs and establishing an ethical foundation, companies can enhance job attitudes, behaviors, and overall ethics, leading to a work environment where people are happier, more committed, and demonstrate a stronger attachment to their organization. Moreover, a customer-focused approach contributes to long-term relationships based on ethics and trust, crucial for the sustained success of any business.

People-oriented cultures hold fairness, supportiveness, and respect for individual rights in high regard, and this is exemplified in the way they treat both their employees and customers. Companies that live by the principle that 'people are their greatest asset' create an atmosphere where employees do not feel compelled to choose between work and their personal lives, leading to healthier job attitudes and citizenship behaviors that benefit the organization as a whole. As Heineman (2007) asserts, when behaving ethically becomes part of the company's core values, it is reflected in the company's metrics and overall operations.

Answer:

The operating income for 2017 is $11,550

Explanation:

For computing the net income, first we have to calculate the cost of goods sold which is shown below:

Cost of goods sold = Opening merchandise inventory + Purchase - Closing inventory

= $11,650 + $89,500 - $14,400

= $86,750

Now, we know that if we deduct the cost of goods sold from sales, than gross profit is come.

So, Sales - Cost of goods sold = Gross profit

$142,300 - $86,750 = Gross Profit

Gross Profit = $55,550

Now deduct the Selling and Administrative Expenses from gross profit, so that net income can computed

So, Gross profit -  Selling and Administrative Expenses = Net income

$55,550 - $44,000 = Net income

Net income = $11,550

Hence, the operating income for 2017 is $11,550

Answer:

a. The marginal (added) benefits of the proposed new robotics  = $800,000

b. The marginal (added) cost of the proposed new robotics = $150,000

c. The net benefit of the proposed new robotics = $650,000

d. The company shall get the new robotics as there is net benefit of $650,000, and future benefits are more than current benefits.

e. Besides the costs and benefits the company shall consider the following factors also:

Time value of money,

Employees Training cost if required for new robotics.

Employees behavior towards this installation.

Environmental effects of such robotics, installed.

Explanation:

Provided details as follows:

Benefits every year with new robotics = $560,000

Benefits every year with old robotics = $400,000

Cost of new robotics = $220,000

Resale price of old robotics = $70,000

a. The marginal (added) benefits of the proposed new robotics

Marginal benefits are additional benefits

Benefits every year with new robotics = $560,000 per year

Less: Benefits every year with old robotics = $400,000 per year

Thus Marginal (added) Benefits = $160,000 for 5 years = $800,000

b. The marginal (added) cost of the proposed new robotics.

Marginal added cost will be additional cost

Cost of new robotics = $220,000

Less: Resale price of old robotics = $70,000

Marginal added cost = $150,000

c. The net benefit of the proposed new robotics

The net benefit of the proposed new robotics = Marginal (added) Benefits $800,000 - Marginal added cost $150,000 = $650,000

d. The company shall get the new robotics as there is net benefit of $650,000, and future benefits are more than current benefits.

e. Besides the costs and benefits the company shall consider the following factors also:

Time value of money,

Employees Training cost if required for new robotics.

Employees behavior towards this installation.

Environmental effects of such robotics, installed.

Final answer:

Ken Allen will perform a marginal cost-benefit analysis for replacing robotics at Bally Gears, Inc. The analysis reveals a marginal benefit of $160,000, marginal costs of $150,000, and a net benefit of $10,000, suggesting the investment is financially viable. Additional factors, such as technological obsolescence and operational impacts, should also be considered.

Explanation:

Ken Allen is tasked with performing a marginal cost-benefit analysis for Bally Gears, Inc., concerning the replacement of robotics on the heavy truck gear line. To assess this proposal effectively, Ken will calculate the marginal benefits, marginal costs, and the net benefit of the proposed new robotics and then make a recommendation based on these figures.

a. Marginal (added) benefits of the proposed new robotics

The marginal benefits are calculated by subtracting the total benefits of the existing robotics from the total benefits of the new robotics. Thus, $560,000 (new) - $400,000 (existing) = $160,000 as the marginal benefits.

b. Marginal (added) cost of the proposed new robotics

The marginal costs consider the initial cash investment required for the new equipment and the opportunity cost of selling the existing robotics. Therefore, $220,000 (new investment) - $70,000 (sale of existing) = $150,000 as the marginal costs.

c. Net benefit of the proposed new robotics

To find the net benefit, subtract the marginal costs from the marginal benefits: $160,000 - $150,000 = $10,000 as the net benefit.

d. Recommendation

Given that the marginal benefits exceed the marginal costs, resulting in a positive net benefit of $10,000, Ken should recommend proceeding with the replacement of the robotics. This investment is projected to improve the company's financial standing over the next five years.

e. Additional Factors to Consider

Beyond marginal costs and benefits, it's critical to consider factors like the potential for technological obsolescence, maintenance costs, operational disruptions during installation, and improvements in product quality or production efficiency that might influence the final decision.

Answer:

The financial statements balance for land will be 2,000,000

Under the Cost and conservatism principles.

Explanation:

Property, Plant and Equipment are valued at cost.

The financial statements balance for land will be 2,000,000

Under the GAAP this should be the principles to explaing this reasoning:

Conservatism principle: Revenues, Gains and assets only when you are sure that they will occur. The land is not for sale, and it is not expected to be sold so the potencial gain for selling or valuation should not be recorded.

Cost principle: The bookkepper should post at their original purchase costs.

Answer:

Retained Earnings = 109,909

Explanation:

[tex]\left[\begin{array}{cccc}cash&25,135&AP&67,855\\AR&43,758&NP&36,454\\inventory&172,500&Long-term&222,300\\fixed \:assets&332,300&Common\: Stock&150,000\\other \: assets&13,125&RE&110,209\\Total Assets&586,818&Total L+E&586,818\\\end{array}\right][/tex]

First

We add all the assets together. 586,818

Then

we add the lliabilities and common stock. 476,909

Finally

We use the accounting equation to solve for RE

Assets = Liab + Equity

586,818 = sum of liab and equity accounts

we know that all the accounts, except RE add to 476,909

586,818 = 476,909 + RE

586,818 - 476,909 = RE

RE = 109,909

Answer:

C) It is a vertical line at $600 billion of GDP

Explanation:

Aggregate supply is the total value of goods and services that companies established in a country are willing to produce and sell for each price level over a given period of time. It is therefore the sum of the supply curves of each firm.

Potential GDP, in turn, is the value of all final goods and services produced by an economy over a given period of time when all factors of production (capital and labor) are being tapped. It is the maximum production point of an economy. In this example, the potential GDP is 600 billion.

In the long run, an increase in the general price level does not affect aggregate production. Thus the aggregate supply curve of an economy represents the sum of all supply in a situation in which all factors of production are employed. This makes the vertical aggregate supply curve at 600 billion.

Answer:

The company earns a net profit of $25,500 for the year ended December 31, 2013

Explanation:

The income statement is that statement which records expenditure & income and gains. It is also known as profit or loss account.

The income statement either comes in net profit or net loss which reflects the profit or loss of the company for a particular year.

The profit is come when revenues is higher than expenses whereas losses come when revenue is less than expenses.

The income statement for the year ended December 31, 2013 is shown below:

= Trucking fee earned - Salaries expenses - Office supplies expenses - Repair expenses - depreciation expenses

= $130,000  - $61,000 -  $8,000 - $12,000 - $23,500

= $25,500

Since, the  positive amount is come.

So, the company earns a net profit of $25,500 for the year ended December 31, 2013.

To set up a T-account balance sheet for the bank, list the assets (deposits, reserves, and government bonds) and the liabilities (loans). Calculate the bank's net worth by subtracting the liabilities from the assets.

To set up a T-account balance sheet for the bank, we list the assets and liabilities in separate columns. The assets include deposits ($400), reserves ($50), and government bonds ($70). The liabilities include loans ($500). The net worth of the bank, also known as equity, can be calculated by subtracting the liabilities from the assets. In this case, the net worth would be the sum of the assets ($400 + $50 + $70) minus the loans ($500), which equals $20.

Answer:

The internal rate of return is 11%,  the investment will be accepted.  

Payback Period is 5

Explanation:

We use excel or a spreadsheet to calculate this ratio. See document attached.

We must use a cash flow to solve this problem.

At moment 0 we have the investment cost , in this case $436,900. From period 1 to period 6, we have incomes o benefits of $103,273. Then, we calculate the Net cash flow that is the difference between benefits and cost.

We use all the result (positive and negative) in Net cash flow to get the IRR.

The decision rules are 3:

Net Present Value (NPV)

Internal Rate of Return (IRR)

Payback Period

Answer:

Tyson's basis in the distributed inventory = $8,000 and land = $12,000

Explanation:

Total basis value of assets received by Tyson = Cash + Inventory + Land

= $16,000 + $8,000 + $12,000 = $36,000

For this Tyson's basis of interest in partnership = $24,000

Thus Tyson's Basis in Inventory = $8,000

Tyson's basis for Land = $12,000

Note: the basis is book value and not the market value even in case it is less than book value.

Tyson's basis in the distributed inventory = $8,000 and land = $12,000

Tyson's basis in the distributed inventory and land from KT Partnership is respectively $2,000 and $3,000, computed by taking his 25% ownership of the inside basis.

In this business scenario involving partnership distribution, Tyson's basis in the distributed inventory and land can be calculated based on the inside basis. For the inventory, Tyson would take his ownership percentage (25%) of the inside basis which results in $2,000 ($8,000 * 0.25). Similarly, for the land, he would take 25% of the inside basis, amounting to $3,000 ($12,000 * 0.25). Therefore, Tyson's basis in the distributed inventory is $2,000 and $3,000 in the land.

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Answer:

Cash                         40,000

               ORD Corp              40,000

to record the cash payment of ORD Corp

ORD Corp                280,000

          Gain on Investment/ ORD Corp     280,000

to record the proportional net income of ORD Corp

Explanation:

100,000 x 40% = 40,000

700,000 x 40% = 280,000

The cash is treated as moving money from one place to another

It is moving from the company you have a degree of control, from your company. It increase your cash and decrease the Investment

The net incoem will be the gain in the investment, adn will impact the invstment asset and the gain on investment

Answer:

Present value of future cash inflows of Project Y = $110,000 X 3.240 = $356,400

Explanation:

Provided cost of Proposal Y = $512,000

Residual Value = $0

Depreciation will not be considered as we need to consider the present value of future cash flows, depreciation does not involve any cash flow.

Useful life = 4 years

Estimated cash inflow per year = $110,000

Discount rate = 9%

Present Value of an Ordinary Annuity = 3.240 @ 9% for 4 years

Thus present value of future cash inflows = $110,000 X 3.240 = $356,400

Note: Net Present Value = Present Value of Cash Inflows - Present Value of  Cash Outflow = $356,400 - $512,000 = -$155,600

Final Answer

Present value of future cash inflows of Project Y = $110,000 X 3.240 = $356,400

The present value of future cash inflows for Proposal Y is computed by multiplying the annual net cash inflow ($110,000) by the present value of an ordinary annuity for 4 years at a 9% discount rate (3.240), which results in $356,400.

Given the parameters for Proposal Y: the estimated annual net cash inflow is $110,000 for 4 years with an annual discount rate of 9%. To compute the present value (PV) of the future cash inflows from Proposal Y, we have to multiply the annual net cash inflow by the present value of an ordinary annuity for 4 years at 9%.

From the provided annuity table, the present value factor for 4 years at 9% discount rate is 3.240. Therefore, the present value of future cash inflows from Proposal Y is $110,000 * 3.240 = $356,400.

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Abby made a return of $285 on the first stock and then reinvested $2815 after taking a commission fee into account. To realize the same return, she needs to receive $3100 next year.

Let's start by calculating the return Abby made on the first stock. She bought the stock for $25.80 per share, buying a total of 100 shares which leads to an investment of $25.80 * 100 = $2580. She then sold the stocks for a total of $2865, resulting in a return of $2865 - $2580 = $285.

Next, Abby plans to reinvest the total amount but now there is a $50 commission fee. So, the amount she actually invests is $2865 - $50 = $2815. To realize the same return as her first investment, she should add the return of $285 to her invested amount so the total amount she needs to receive next year would be $2815 + $285 = $3100.

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