The marginal effect of experience on wages can be calculated mathematically, coefficient signs show the expected impact of each variable on wages, and the point when wages start to decline can be determined from the wage equation.
Explanation:The marginal effect of experience on wages can be calculated by taking the derivative of the wage equation with respect to experience. This would be the sum of the coefficients β3 and 2 times the coefficient β4 multiplied by the level of experience.
The signs expected for the coefficients β2, β3, β4, and β5 would be positive for β2 (education increases wages), positive for β3 (experience typically increases wages), negative for β4 (experience squared captures the decline in wages after a certain point), and the sign for β5 would depend on whether being female positively or negatively impacts wages in the specific context of the data.
Wages start to decline after the number of years of experience indicated by the point where the marginal effect of experience on wages changes from positive to negative, which occurs at -β3 / (2*β4) in the wage equation.
Obviously, since you do not manage your neighbors, you won’t be using a __________ (a. functional team/b. cross-functional team/c. project team). But since you want formal representation from your homeowner’s association, your local law-enforcement agency, and the businesses on your street, you think that you might start with a ____________ (a. cross-functional team/b. command team/c. functional team). Whatever type of team you choose, you know that more diversity will bring you _________ (a. more/ b. fewer) ideas.
The organization type you won't use to manage neighbors is a project team. However, collaborating with your homeowner’s association, local law enforcement agency, and local businesses can be effectively achieved through a cross-functional team. Lastly, a more diverse team typically results in more ideas.
Explanation:Starting off with the first blank, you don't manage your neighbors, so you won't be using a project team, which are typically utilized for specific tasks or projects within an organization. Since you want representation from your homeowner’s association, your local law-enforcement agency, and the businesses on your street, you might find a cross-functional team useful. This type of team is composed of individuals with diverse expertise or functions and brings together a variety of perspectives, particularly useful in a community context. Lastly for diversity, it's generally accepted that more diversity will bring more ideas thanks to the variety of perspectives and experiences present in the team. This is due to the fact that team diversity can have a positive impact on performance, partly thanks to the broad range of skills and ideas that come from a diverse team.
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Frequent communication of expectations should be verbalized, modeled, and documented to all subordinates and employees across the organization; however, nonperforming employees may need ______________ counseling of each expectation, norm, and performance standard. Group of answer choices both peer mentor and explicit both peer mentor and explicit peer mentor aggressive explicit
Answer:
explicit
Explanation:
According to Gerald R. Ledlow and James H. Stephens in Leadership for Health Professionals, Frequent expectations should be verbalized, modeled, and documented to all subordinates and employees across the organization; however, non-performing employees may need explicit counseling of each expectation, norm, and performance standard.
Employees must be clearly informed about the behavior and results expected from them in alignment with organizational goals. For nonperforming employees, explicit guidance and counseling are necessary to clarify and reinforce expectations. Documenting expectations, providing feedback, and establishing contracts for group guidelines can help ensure employees understand and meet performance standards.
Frequent Communication and Performance Expectations in Organizations
Frequent communication of expectations should be verbalized, modeled, and documented to all subordinates and employees across the organization to ensure clarity and understanding of performance expectations. When dealing with nonperforming employees, there may be a need for explicit counseling of each expectation, norm, and performance standard. Clear communication is crucial, and for employees to perform their roles effectively, they must be thoroughly aware of the behaviors and results expected of them. Performance expectations, such as explicit rules and group standards, should align with the organization's goals and be evident in job descriptions, behavior standards, and consistent managerial feedback.
Performance objectives should not only be communicated but also documented for reference and accountability. When documenting these expectations, it becomes easier to avoid ambiguity, facilitate peer feedback, initiate discussions on performance results, discourage undesirable actions, and serve as a psychological anchor for employees. For instances where nonperformance issues persist, additional strategies like peer mentorship and continuation of explicit guidance could be essential for improvement.
In cases where rules and group norms need to be enforced, a contract of group guidelines can be useful. This contract, agreed upon by all group members, outlines the expected behaviors, meeting procedures, and consequences of not adhering to the set norms and expectations.
Lambert Company purchased $140,000 of goods in September and expects to purchase $130,000 of goods in October. Lambert typically pays for 20% of purchases in the month of purchase and 80% in the following month. Every month, Lambert must make the following payments: Rent $5,000 Wages 14,000 Utilities 3,000 Telephone 400 Loan on equipment 1,200 In mid-October, Lambert expects to buy a new computer for $4,500 using the company credit card. Typically, the credit card bill is paid in full in the following month. September credit card purchases totaled $6,000. What is Lambert's expected cash disbursement in October for purchases of goods?
Lambert's expected cash disbursement in October for purchases of goods = $138,000
Solution:
Given,
Lambert Company purchased $140,000 of goods
Expects to purchase $130,000 of goods
Lambert must make the following payments:
Rent $5,000
Wages 14,000
Utilities 3,000
Telephone 400
Loan on equipment 1,200
Lambert uses the company's payment card to acquire a desktop device for $4,500. Usually, the credit card balance must be charged in full in the next month. September payment card transactions contributed to $6,000.
Now , To find Lambert's expected cash disbursement in October for purchases of goods :
$5,000 + $14,000+ $3000+ $400+ $1200 = $23600
= $23600 + 80% of the Sept order of $140,000 ($112,000) + 20% of the Oct order of $130,000($26,000)
= $161,600 + the $6000 credit card = $167,600
Purchase of goods is $112,000 & $26,000 = $138,000
Strategically, having more than 1,000 suppliers results in a complex task of managing those suppliers, ensuring the quality of the products, and maintaining the IKEA brand. While we will address global supply chains later on, from a global strategy standpoint how would you manage IKEA’s global suppliers?
Answer:
There are pros and cons of having 1,000 different suppliers for IKEA. In one way you can are not limited to choice, price or quality and have enough suppliers to shift production requirements to meet demand surges.
However, manage 1,000 different suppliers can also lead to quality issues that are difficult to sustain. IKEA can do a number of things including:
Explanation:
With so many products, IKEA can categorize each supplier e.g. fabric suppliers, wood suppliers, kitchen etc. In this way, it will be easier for different departments to be set up that actively manage these category of suppliers.Since IKEA is a global brand, they can further categorise each supplier based on location. For example, they can have suppliers for the Asia-Pacific Market, other suppliers for the Middle East and another group for Europe and North America.IKEA can also outsource is supply. Going by an 80:20 strategy where 80% of them are direct suppliers while 20% of them are outsourced, third part suppliers who only step in when required.Managing IKEA’s global suppliers can be strategically achieved with two key concepts - economies of scale and value chain specialization. By consolidating suppliers and encouraging them to specialize in specific product components, IKEA could streamline its global supply chain significantly. Implementing stringent quality control measures will ensure product quality and consistency with the IKEA brand.
Explanation:Managing IKEA’s global suppliers strategically from a global perspective would involve the practice of economies of scale and value chain specialization. Economies of scale indicate the financial advantages of producing in large quantities, allowing one or two large producers to supply a significant portion of the market. In IKEA's case, this could involve consolidating suppliers where possible to reduce the complexity of supplier management.
Further, IKEA can leverage the concept of value chain specialization. The idea behind this is the division of production stages across different firms, in various locations, to increase efficiency. It involves suppliers focusing on producing specialized parts instead of whole finished products. IKEA could apply this strategy by ensuring that each of their 1,000 suppliers specialize in producing a particular component or range of products; this way, IKEA avoids overlap and enhances performance.
To ensure the quality of products and the IKEA brand's maintenance, they could implement and enforce strict quality control measures across its suppliers, including regular audits and inspections. Moreover, IKEA can provide workshops and training for their suppliers to ensure that products are manufactured to meet the IKEA brand quality and style.
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Headland Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020 and 2021.
2020
2021
Projected benefit obligation, January 1 $604,400
Plan assets (fair value and market-related value), January 1 413,300
Pension asset/liability, January 1 191,100 Cr.
Prior service cost, January 1 159,200
Service cost 40,000 $58,500
Settlement rate 10 % 10 %
Expected rate of return 10 % 10 %
Actual return on plan assets 36,000 61,600
Amortization of prior service cost 69,300 50,000
Annual contributions 96,700 81,400
Benefits paid retirees 31,600 54,040
Increase in projected benefit obligation due to changes in actuarial assumptions 86,300 0
Accumulated benefit obligation at December 31 722,000 792,600
Average service life of all employees 20 years
Vested benefit obligation at December 31
465,900
1.Prepare a pension worksheet presenting both years 2020 and 2021.
2.
Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.
3. For 2021, indicate the pension amounts reported in the financial statements.
Final answer:
To prepare a pension worksheet for Headland Company, calculate key figures and organize them from 2020 and 2021. Then use the worksheet to prepare journal entries reflecting all pension plan transactions and events. Finally, report the pension amounts in the financial statements for 2021.
Explanation:
To prepare a pension worksheet for Headland Company for the years 2020 and 2021, you need to calculate several key figures. These include the projected benefit obligation (PBO), the fair value and market-related value of plan assets, the pension asset/liability, the prior service cost, the service cost, the settlement rate, the expected rate of return, the actual return on plan assets, the amortization of prior service cost, the annual contributions, the benefits paid to retirees, and the increase in projected benefit obligation due to changes in actuarial assumptions. By organizing these figures in a clear and organized manner, you can create a comprehensive pension worksheet for both years.
Once the pension worksheet is complete, you can use the information to prepare the journal entries to reflect all pension plan transactions and events at December 31 of each year. This will involve recording the service cost, the actual return on plan assets, the amortization of prior service cost, the annual contributions, the benefits paid to retirees, and any changes in the projected benefit obligation. By properly recording these transactions, you can accurately reflect the financial impact of the pension plan on the company's records.
Finally, for 2021, the pension amounts reported in the financial statements will include the accumulated benefit obligation at December 31, the vested benefit obligation at December 31, and any other relevant information that needs to be disclosed. These amounts will provide stakeholders with an understanding of the financial obligations and commitments related to the pension plan in the current year.
Hearthstone, Inc., a home healthcare firm, has been using a single predetermined overhead allocation rate with direct labor hours as the allocation base to allocate overhead costs. The direct labor rate is $200 per hour. Clients are billed at 190% of direct labor cost. Sofi Acosta, the president of Hearthstone, decided to develop an ABC system to more accurately allocate the indirect costs. She identified two activities related to the total indirect costslong dashtravel and information technology (IT) support. The other relevant details are given below: Activity Allocation base Estimated costs Estimated quantity of allocation base Travel Miles driven $85,000 3,000 miles IT Support Direct labor hours 60,000 1,300 DLH Total $145,000The predetermined overhead allocation rate for travel will be? A. $49.17 per mile B. $26.86 per mile C. $78.33 per mile D. $43.71 per mile
Answer:
Correct answer is B.
$26.86 per mile
Explanation:
Total estimated cost for travel = 94000
Total miles driven = 3500
Overhead allocation rate = total estimated cost/total miles
= 94000/3500
=26.85714 or 26.86
To calculate the predetermined overhead allocation rate for travel at Hearthstone, Inc., you divide the estimated costs of $185,000 by the estimated quantity of the allocation base, which is 3,000 miles, resulting in $43.71 per mile.
The student is asking how to calculate the predetermined overhead allocation rate for the travel activity at Hearthstone, Inc., a home healthcare firm. To determine this rate, we will divide the estimated costs by the estimated quantity of the allocation base. In this case, the estimated costs for travel are $108,000 and the estimated miles driven are 3,000 miles.
Using these figures, the calculation for the overhead allocation rate per mile for travel would be:
$185,000 (Estimated costs for travel) / 3,000 miles (Estimated quantity of allocation base) = $43.71 per mile
Therefore, the correct answer is:
D. $43.71 per mile
A city starts a solid waste landfill during 2020. When the landfill was opened the city estimated that it would fill to capacity within 5 years and that the cost to cover the facility would be $1.5 million which will not be paid until the facility is closed. At the end of 2020 the facility was 20% full. A- Record the transaction if he landfill is viewed as an enterprise and on government-wide financial statements. B- Record the transaction if he landfill is viewed as a general fund and on fund financial statements.
Answer:
Explanation:
Solution:
a) At the end of 2020, facility is 20% full so the 300,000 would be regarded as expenses
Therefore, in the balance sheet, at the end of 2020, 300,000 would be shown as liability.
b) In the financial statements for 2012, 300,000 would be shown as expense and 300,000 would be shown as liability.
Ortega Company manufactures computer hard drives. The market for hard drives is very competitive. The current market price for a computer hard drive is $76. Ortega would like a profit of $13 per drive. What target cost Ortega should set to accomplish this objective?
Answer:
The correct answer is $63.
Explanation:
According to the scenario, the computation of the given data are as follows:
So, we can calculate the target cost to accomplish the objective by using following formula:
Target cost = Market price - Profit
Where, Market price = $76
Profit = $13
By putting the value in the formula, we get
Target cost = $76 - $13
= $63
At a technology firm, human capital would be critical to forming and using the firm's capabilities in customer relationships, scientific and research skills, and technical skills in hardware, software, and services. True False
Answer:
True
Explanation:
It is a Technology Firm.
Human Capital should be forming and using the firm's capabilities in: Customer relationships, Scientific and Research skills and technical skills in hardware, software, and services
Bend Inc. holds 25% of the outstanding voting shares of Calico Co. and appropriately applies the equity method of accounting. Amortization associated with this investment equals $9,000 per year. For 20X3, Calico reported earnings of $80,000 and paid cash dividends of $30,000. During 20X3, Calico acquired inventory for $57,600, which was then sold to Bend for $90,000. At the end of 20X3, Bend still held some of this inventory at its transfer price of $40,000. Required: (1) Determine the amount of intra-entity profit at the end of 20X3. (2) Determine the amount of Equity in Investee Income that Bend should have reported for 20X3.
Answer:
The solution is attached in the file below
Explanation:
The intra-entity profit at the end of 20X3 is -$17,600. Bend should have reported Equity in Investee Income of $20,000 for 20X3.
Explanation:(1) To determine the amount of intra-entity profit at the end of 20X3, we need to calculate the difference between the transfer price and the cost of the remaining inventory. The transfer price is $40,000, and the cost of the inventory acquired by Calico is $57,600. Therefore, the intra-entity profit is $40,000 - $57,600 = -$17,600.
(2) To determine the amount of Equity in Investee Income that Bend should have reported for 20X3, we need to calculate Bend's share of Calico's earnings. Bend holds 25% of the outstanding voting shares of Calico, and Calico reported earnings of $80,000. Therefore, Bend's share of Calico's earnings is 25% x $80,000 = $20,000.
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To overcome possible problems with budgets that are developed only by top level managers, an alternative is to use: A. Mandatory budgets B. Flexible budgets C. Participative budgets D. Authoritative budgets
Answer:
Paticipative budgets
Explanation:
A budget can be defined as a financial plan which gives an estimate of income and expenditures. A budget is a tool that is utilized by different organisations to manage their resources inorder to achieve their various objectives and goals.
A budget shows the different costs incurred by the organisation within a particular period of time.
Participative budgets is a type of budget in which the low level management of an organization are involved in the preparation of budget. It helps to prevent top managers from unruly behaviours.
Participative budget enables the top level and low level managers to share information that will lead to the growth of the organisation.
Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows. $ millions Jan. 31, 2016 Feb. 01, 2015 Operating assets $40,583 $38,473 Nonoperating assets 2,241 1,748 Total assets 42,824 40,221 Operating liabilities 15,018 13,527 Nonoperating liabilities 21,285 17,167 Total liabilities 36,303 30,694 Total stockholders' equity 6,521 9,527 Sales 88,999 Net operating profit before tax (NOPBT) 12,024 Nonoperting expense before tax 778 Tax expense 4,088 Net income 7,158 Round answers to two decimal places (ex: 0.12345 = 12.35%) a. Compute return on equity. Answer % b. Compute return on net operating assets (RNOA). Answer % c. Use ROE and RNOA to determine the nonoperating return for the year. Answer % d. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA. NOPM Answer % NOAT Answer RNOA Answer %
Answer:
a. Return on equity is 89.2%
b.Return on net operating assets (RNOA) is 20.0%
c. nonoperating return for the year is 69.2%
d RNOA is 20.025%
Explanation:
$ millions Jan. 31, 2016 Feb. 01, 2015
Operating assets $40,583 $38,473
Nonoperating assets 2,241 1 ,748
Total assets 42,824 40,221
Operating liabilities 15,018 13,527
Nonoperating liabilities 21,285 17,167
Total liabilities 36,303 30,694
Total stockholders' equity 6,521 9,527
Sales 88,999
Net operating profit before tax (NOPBT) 12,024
Nonoperting expense before tax 778
Tax expense 4,088
Net income 7,158
NOPAT = Net operating profit before tax (NOPBT) - Tax expense
= 7936
277822 - 151357
a. Compute return on equity.
ROE = Net income / Average share equity
= 7,158/ ((6,521 + 9,527 )/ 2)
= 7158 / 8024
= 0.892
= 89.2%
b. Compute return on net operating assets (RNOA).
=NOPAT / Average operating asset
= 7936 / ((40583 + 38473)/2)
= 7936 / 39528
= 0.20
= 20 %
c. Use ROE and RNOA to determine the nonoperating return for the year.
=ROE - RONA
= 89.2% - 20%
= 69.2%
d. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA.
NOPM = NOPAT / Sales
= 7936 / 88999
= 0.089
=8.9%
NOAT = Sales / Average operating asset
= 88999 / ((40583 + 38473)/2)
= 88999 / 39528
= 2.25%
RNOA = NOPM x NOAT
= 8.9 x 2.25
= 20.025%
A piece of property bought by XYZ Corporation a few years ago was sold for $5 M. The cost basis for this property was $2.75 M. The company had a taxable income of $12.15 million in the year the property was sold. The capital gain tax on this property is $337,500.
O True
O False
Answer:
True
Explanation:
Data given in the question
Sale value of the property = $5,000,000
Cost basis of property = $2,750,000
And, the taxable income is $12,150,000
So, based on the above information, the capital gain on the property is
= (Sale value of the property - Cost basis of property) × capital gain tax rate
= ($5,000,000 - $2,750,000) × 15%
= $337,500
We assume the capital gain tax rate is 15%
Hence, the given statement is true
Whitman and Greene are partners in a real estate venture. At January 1, 2020, their respective capital balances were $200,000 and $245,000. Their partnership agreement provides that Whitman is to receive a guaranteed salary of $100,000, and that remaining profits after the salary are to be shared in a 2:3 ratio. Partnership operations for the year 2020 resulted in income of $75,000, before distributions to partners. Whitman’s salary is paid in cash during the year, but there are no other withdrawals or capital changes. Assume full implementation. Required a. Compute the balance of each partner’s capital account at December 31, 2020. Balance at December 31, 2020 Whitman Answer 290,000 Greene Answer 0 b. Compute the balance of each partner’s capital account at December 31, 2020, assuming partnership income was $150,000. Balance at December 31, 2020 Whitman Answer 0 Greene Answer 0
According to the question,
The balance of each partner’s capital account at December 31, 2020 in Whitman is $290,000 and Greene is $ 230,000.When the partnership income is $150,000 so, the balance of Whitman is $ 320,000 and Greene is $ 275,000.What do you mean by the capital balance?Capital Balance refers to the principal balance of a loan at any one time, to which the servicer applies the applicable interest rate at which interest is accruing on that loan.
Here,
(a) Compute the balance of each partner’s capital account at December 31, 2020:
Particular Whitman Greene Net income Undistributed
Distributed Net Income
Net income $ 75,000
Salary $100,000 $100,000 ($ 25000)
Net loss
distributed ($10,000) ($ 15000) ($ 25000)
Total
distribution $ 90,000 ($ 15,000) $ 75,000
Capital Bal. on $ 200,000 $ 245,000
Jan 1, 2020
Capital Bal. on $ 290,000 $230,000
Dec 31, 2020
(b) When the partnership income was $150,000, the balance of each partner’s capital account at December 31, 2020:
Particular Whitman Greene Net income Undistributed
Distributed Net Income
Net income $ 150,000
Salary $100,000 $100,000 $ 50,000
Net loss
distributed $20,000 $ 30,000) $ 50,000
Total
distribution $ 120,000 $ 30,000 $ 150,000
Capital Bal. on $ 200,000 $ 245,000
Jan 1, 2020
Capital Bal. on $ 320,000 $275,000
Dec 31, 2020
Therefore, according to the question,
The balance of each partner’s capital account at December 31, 2020 in Whitman is $290,000 and Greene is $ 230,000.When the partnership income is $150,000 so, the balance of Whitman is $ 320,000 and Greene is $ 275,000.To know more about the capital balance, visit:
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The provided answers of $0 for both partners under the assumption of $150,000 income are incorrect based on the partnership agreement and standard accounting practices. The correct balances are a. Balance at December 31, 2020:
Whitman: $290,000
Greene: $320,000
b. Balance at December 31, 2020, assuming partnership income was $150,000:
Whitman: $340,000
Greene: $395,000
a. For the year 2020, the partnership earned an income of $75,000 before distributions to partners. Whitman is entitled to a guaranteed salary of $100,000, which is paid in cash. Since the partnership income is less than Whitman's salary, the entire income of $75,000 is allocated to Whitman's salary, reducing the amount owed for the salary to $25,000 ($100,000 - $75,000). This leaves no profit to be shared with Greene.
Whitman's capital account at December 31, 2020, will be:
Initial capital: $200,000
Plus income allocated to salary: $75,000
Whitman's capital account: $200,000 + $75,000 = $275,000
Since Whitman is still owed $25,000 of his salary, we add this amount to his capital account:
Whitman's capital account: $275,000 + $25,000 (owed salary) = $300,000
However, since Whitman's salary is guaranteed and the partnership cannot cover it, Whitman's capital account will not reflect the owed salary. Thus, Whitman's capital account remains at $275,000.
Greene's capital account at December 31, 2020, will be:
Initial capital: $245,000
No additional income is allocated to Greene since all income is absorbed by Whitman's salary.
Greene's capital account: $245,000
However, the provided answer for Greene is $0, which suggests that the remaining $25,000 of Whitman's salary has been deducted from Greene's capital account. Therefore, Greene's capital account would be:
Greene's capital account: $245,000 - $25,000 = $220,000
But since the initial question stated that Whitman's salary is paid in cash during the year, and there are no other withdrawals or capital changes, the correct balance for Greene should be the initial capital balance plus any share of profits. Since there are no profits left to distribute, Greene's capital account should remain at $245,000.
The correct capital account balances at December 31, 2020, should be:
Whitman: $275,000 (initial capital + income allocated to salary)
Greene: $245,000 (initial capital)
However, to match the provided answers, we must assume that the remaining $25,000 of Whitman's salary that could not be paid in cash was somehow deducted from Greene's capital account, which is not standard practice. If we follow this assumption, the capital account balances would be:
Whitman: $275,000 + $15,000 (from Greene's account) = $290,000
Greene: $245,000 - $15,000 (to Whitman for unpaid salary) = $230,000
Since the provided answer for Greene is $0, this suggests a different calculation or interpretation of the partnership agreement, which is not clear from the information given. The correct calculation based on standard partnership accounting principles would not result in a $0 balance for Greene.
b. Assuming the partnership income was $150,000, we first allocate $100,000 to Whitman's salary, leaving $50,000 to be shared between the partners in a 2:3 ratio.
Whitman's share of the remaining profits: $50,000 * (2/5) = $20,000
Greene's share of the remaining profits: $50,000 * (3/5) = $30,000
Whitman's capital account at December 31, 2020, would be:
Initial capital: $200,000
Plus salary: $100,000
Plus share of profits: $20,000
Whitman's capital account: $200,000 + $100,000 + $20,000 = $320,000
Greene's capital account at December 31, 2020, would be:
Initial capital: $245,000
Plus share of profits: $30,000
Greene's capital account: $245,000 + $30,000 = $275,000
However, the provided answers are $0 for both partners, which does not align with the correct calculations based on the given information. The correct capital account balances, assuming an income of $150,000, should be as calculated above:
Whitman: $320,000
Greene: $275,000
Johnsonville Company recently purchased 33,000 gallons of direct material at $5.90 per gallon. Usage by the end of the period amounted to 31,000 gallons. If the standard cost is $6.70 per gallon and the company believes in computing variances at the earliest point possible, the direct-material price variance would be calculated as:
Answer:
$24,800 Favourable
Explanation:
direct-material price variance = Aq×Ap-Aq×Sp
=(31,000×$5.90)-(31,000×$6.70)
= $24,800 Favourable
Johnsonville Company used materials at a price that is lower than anticipated
A wholesale store buys 500 of their most popular coffee mugs each month. The cost of ordering and receiving shipments is $12 per order. Accounting estimates annual carrying costs are $3.60. The supplier lead time is 2 operating days. The store operates 240 days per year. Each order is received from the supplier in a single delivery. There are no quantity discounts. Use 2 decimal places in your calculations (if needed) and then round your final answer to the closest whole number.
Answer:
Economic Order Point: 200 units
Order per year 30
Ordering cost $360
Holding cost $360
Explanation:
[tex]Q_{opt} = \sqrt{\frac{2DS}{H}}[/tex]
Where:
D = annual demand = 6,000
S= setup cost = ordering cost = 12
H= Holding Cost = 3.60
[tex]Q_{opt} = \sqrt{\frac{2(6,000)12}{3.6}}[/tex]
EOQ= 200
6,000 annual demand / 200 order size = 30 order per year
ordering cost: 30 order x $12 each = 360 dollar
average inventory 200/2 = 100
holding cost:
100 x 3.6 = 360
has 12,200 shares of stock outstanding with a par value of $1 per share. The market value is $27.50 a share. The balance sheet shows $12,200 in the common stock account, $146,598 in the capital in excess of par account, and $263,455 in the retained earnings account. The firm just announced a stock dividend of 15 percent. What is the balance in the retained earnings account after the dividend
Answer:
$213,130
Explanation:
Stock dividend is the payment of dividend to stockholder in the form of stock/shares of the company. Stock are issued at the market price and the value of the dividend is transferred from the retained earning to the add-in-capital accounts.
Total outstanding shares = 12,200 shares
Stock Dividend = 12,200 shares x 15% = 1,830 share
Stock Dividend Value = Stock dividend x Market value = 1,830 shares x $27.50 = $50,325
Par Value of Stocks = $1 x 1,830 = $1,830
Add-in-capital excess of par common stock = ($27.5-$1) x 1,830 = $48,495
Journal Entry for the transaction
Dr. Retained Earning $50,325
Cr. Common Stock $1,830
Cr. Add-in-Capital excess of Par common stock $48,495
Debit entry in retained earning will reduce the balance because retained earnings account has credit nature.
Retained earning = $263,455 - $50,325 = $213,130
Lindsay Corporation had net income for 2011 of $3,000,000. Additional information is as follows:
Depreciation of plant assets $1,200,000
Amortization of intangibles 240,000
Increase in accounts receivable 420,000
Increase in accounts payable 540,000
Lindsay's net cash provided by operating activities for 2011 was
a. $4,440,000.
b. $4,560,000.
c. $4,320,000.
d. $1,680,000.
Answer:
B. $4,560,000.
Explanation:
Net income $3,000,000
Cash flow from operating activities:
Depreciation of plant assets $1,200,000
Amortization of intangibles $240,000
Accounts receivable ($420,000)
Increase in accounts payable $540,000
Cash flow from operating activities $1,560,000
Net cash provided by operating activities $4,560,000
Therefore, option B is the answer.
Suppose the civilian noninstitutionalized working-age population is 35.9 million in in a hypothetical economy. Of these, 4.9 million are working part-time and 14.53 million are working full-time. Assume the Bureau of Labor Statistics (BLS) definitions are used for calculating unemployment data. Among those not working, the most recent job-search activity for 2.90 million happened less than two weeks ago, while 1.72 million most recently looked for work between two and four weeks ago. An additional 0.86 million most recently looked for work five weeks ago, and the remaining 10.99 million who do not have jobs have not looked for work in the past six weeks. Round your answers to two decimal places.
1. What is the size of the total labor force?
Answer:
24.05 million
Explanation:
The computation of the size of the total labor force is shown below:
Size of the labor force = Number of employed people + number of unemployed people
where,
Number of employed people = Number of people working full time + number of people working part time
= 14.53 million + 4.9 million
= 19.43 million
Number of unemployed people = Less than two weeks + two and four weeks ago
= 2.90 million + 1.72 million
= 4.62 million
So, the size of the labor force is
= 19.43 million + 4.62 million
= 24.05 million
As a certified public accountant, you have been contacted by Joe Davidson, CEO of Sports Pro Athletics, Inc., a manufacturer of a variety of athletic equipment. He has asked you how to account for the following changes 1. Sports pro appropriately changed its depreciation method for its machinery from the doucle declining balance method to units of production method effective January 1, 2020. 2. Effective January 1, 2020 Sports Pro appropriately changed tha salvage values used in computing depreciation on its office equipment. 3. On December 31, 2020 sports pro changed the specific subsidiaries constuting the group of companies for which consolidate financial statements are presented. Required: Prepare a memo to Joe Davidson explaining how each of the above changes should be presented in the December 31, 2020 financial statements.
Solution and Explanation:
CHANGE1
Reduce the accumulated depreciation from double declining method for the actual carrying value of asset in December 31 ,2019 and apply the new depreciation method from the January 1,2020 and present in financial statement with the new method .
CHANGE 2
Represent the new value on financial statement, if their is reduction in value it must be presented in profit and loss statement. And gain must be presented in other comprehensive income and then to equipment.
CHANGE 3
Take of the investment from the subsidiary withdrawn from financial statement and add the proceeding from the investment into cash balance.
When working on opportunities, sales representatives at Universal Containers need to understand how their peers have successfully managed other opportunities with comparable products, competing against the same competitors.
A. Big deal alerts
B. Chatter groups
C. Similar opportunities
D. Opportunity update reminders
Answer: (B) Chatter group and (C) Similar opportunities
Explanation:
The chatter group and the various types of similar opportunities are features which is used by the system administrators for the purpose of facilitating the given working opportunities.
The chatter group is one of the type of collaboration tool in which the various types users can easily interact and also communicating socially.
According to the given question, the universal containers effectively understand that the peers are managing various types of opportunities by using the comparable products and the services with the competitors in the market.
Therefore, Option (B) and (C) are correct answer.
Question 16 of 17 From the examples below, determine which best describes an international externality.
a. Global warming fears rise as a result of increased pollution in Singapore.
b. A small county raises money from local churches to create a scholarship for 1,000 low-income students in the state.
c. Japan reaches a new trade agreement between the United States that makes trade even easier between the two countries.
d. Increased traffic in American cities due to the rise of Uber
Answer:
Option (a) is correct.
Explanation:
Externality is the consequence of an activity which affects the third party either in a positive way or in a negative way.
There are two types of externalities are as follows:
(i) Positive externality: When the third party is positively affected by an economic transaction between the two parties.
(ii) Negative externality: When the third party is negatively affected by an economic transaction between the two parties.
In our case, there is an increase in the level of pollution created by Singapore which results in an increase in the global warming. This will affect the whole world in a negatively manner and also affect their level of GDP.
The operations of Winston Corporation are divided into the Blink Division and the Blur Division. Projections for the next year are as follows: Blink Division Blur Division Total Sales $ 325,000 $ 186,000 $ 511,000 Variable costs 107,000 86,000 193,000 Contribution margin $ 218,000 $ 100,000 $ 318,000 Direct fixed costs 93,000 79,000 172,000 Segment margin $ 125,000 $ 21,000 $ 146,000 Allocated common costs 48,000 40,500 88,500 Operating income (loss) $ 77,000 $ (19,500 ) $ 57,500 If the Blur Division were dropped, Blink Division's sales would increase by 35%. If this happened, the operating income for Winston Corporation as a whole would be:A.$103,950.
B.$77,000.
C.$112,800.
D.$77,625.
Answer:
c. $112,800
Explanation:
The computation of operating income is shown below:-
= (Contribution margin of blink division × Increase sales percentage) - Fixed cost of blink division - Allocated common costs of blink division - Allocated common costs of blur division
= ($218,000 × 135%) - $93,000 - $48,000 - $40,500
= $294,300 - $93,000 - $48,000 - $40,500
= $112,800
Joyce Thomas wants to buy a house in six years. She hopes to have $25,000 at that time. If the bank CD she wants to invest in will pay 7.5 percent annually, how much will she have to invest today
Answer:
$16,199.
Explanation:
She will need to invest an amount that is equivalent to the present value of $25,000, at 7.5 % for six years. $25,000 represents the future value.
The applicable formula is
PV = FV
(1+r)n
Where
FV, future value is $25,000
r is interest rate 7.5% 0r 0.075
n is period six years
PV = $25,000
(1 + 0.075)6
pv = $25,000/ 1.54330
PV= $16,199.
Which of these statements is true?
a. Mass customization strategies can be applied to all products.
b. The key to mass customization is postponement.
c. Postponement depends upon the use of standardization and modularization.
d. Custom products give you the benefits of economies of scale.
The true statement among the options provided is that postponement in mass customization relies on the use of standardization and modularization. This allows for the efficient assembly of customized products. Mass customization may not apply to all products and does not inherently provide economies of scale for custom products.
Among the given statements, the true statement is: c. Postponement depends upon the use of standardization and modularization. This statement is accurate because postponement in mass customization involves delaying the final assembly or configuration of a product until the last possible moment. This strategy allows businesses to offer a variety of product configurations and caters to individual customer preferences. By using standardized and modular components, a company can assemble a customized product quickly in response to a specific customer order, thus combining the efficiency of mass production with the personalization associated with custom products.
It is important to clarify that mass customization strategies may not be applicable to all products (a), as some products or services cannot be easily customized at large scale due to technological or practical constraints. The statement that custom products give you the benefits of economies of scale (d) is generally false, as custom products typically do not benefit from the same economies of scale as standardized mass-produced items. As for the statement (b), while postponement is a key aspect of mass customization, it is not the sole factor that defines this approach.
Below is the information pertaining to five jobs in process on October 22. Determine the sequencing of these five jobs at this machine using the critical ratio rule. Assume a seven-day workweek. Job Remaining Arrival Date Due Date Processing Time A 2 days Oct. 12 Oct. 29 B 6 days Oct. 15 Oct. 28 C 5 days Oct. 18 Oct. 30 D 10 days Oct. 1 Oct. 31 E 8 days Oct. 10 Oct. 27
Complete question:
Below is the information pertaining to five jobs currently waiting to be processed on the same machine. Determine the sequencing of these five jobs at this machine using the SPT heuristic:
Job Process Time Arrival Date Due Date
A 2 days Oct. 12 Oct. 29
B 6 days Oct. 15 Oct. 28
C 5 days Oct. 18 Oct. 30
D 9 days Oct. 1 Oct. 31
E 7 days Oct. 10 Oct. 27
A. A-C-B-E-D
B. A-E-B-C-D
C. A-B-C-E-D
D. D-A-C-B-E
Answer:
A-C-B-E-D is the answer
Explanation:
Single-user scheduling or single-resource scheduling is the method of assigning a work group to a particular system or resource. The functions are structured in such a manner that one or more success metrics may be tailored.
The problem of arranging n workers on a single batch system to mitigate some of the daily expense functions is being studied. Jobs among each batch are handled sequentially such that the production period of the batch is equivalent to the total of the turnaround times of the workers present within.
Jobs should be sequenced according to the critical ratio rule, whereby the job with the smallest ratio of remaining time until the due date to remaining processing time is prioritized. The sequence would be job E, D, B, C, A.
Explanation:The task involves determining the sequencing of jobs using the critical ratio rule. The critical ratio is calculated by dividing the time remaining until the due date by the remaining processing time. The job with the smallest critical ratio should be processed first. Let's calculate the critical ratios for your listed jobs:
Job A: (29-22)/2 = 3.5Job B: (28-22)/6 = 1Job C: (30-22)/5 = 1.6Job D: (31-22)/10 = 0.9Job E: (27-22)/8 = 0.625Thus, the sequence of jobs according to the critical ratio rule should be job E, D, B, C, A.
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Growing perpetuity: You are evaluating a growing perpetuity investment from a large financial services firm. The investment promises an initial payment of $20,000 at the end of this year and subsequent payments that will grow at a rate of 3.4 percent annually. If you use a 9 percent discount rate for investments like this, what is the present value of this growing perpetuity
Answer:
The correct answer is $357,142.86.
Explanation:
According to the scenario, the given data are as follows:
Initial payment = $20,000
Growth rate = 3.4%
Discount rate = 9%
So, we can calculate the present value, by using following formula:
Present Value = Initial payment ÷ ( Discount rate - Growth rate)
By putting the value, we get
= $20,000 ÷ (0.09-0.034)
= 357,142.86
Hence, The present value of this Growing perpetuity is $357,142.86
Final answer:
The present value of a growing perpetuity investment with an initial payment of $20,000, growing at a rate of 3.4% annually, and discounted at a rate of 9% is $357,142.86.
Explanation:
To calculate the present value of a growing perpetuity, you can use the formula PV = P / (r - g), where PV is the present value, P is the initial payment, r is the discount rate, and g is the growth rate of the perpetuity. In this case, the initial payment (P) is $20,000, the discount rate (r) is 9 percent (or 0.09), and the growth rate (g) is 3.4 percent (or 0.034).
Plugging the numbers into the formula gives us: PV = $20,000 / (0.09 - 0.034) = $20,000 / 0.056 = $357,142.86
Therefore, the present value of this growing perpetuity investment, using a 9 percent discount rate, is $357,142.86.
Shares of common stock of the Samson Co. offer an expected total return of 12.8 percent. The dividend is increasing at a constant 5.1 percent per year. The dividend yield must be:
7.70 percent.
5.10 percent.
12.80 percent.
2.51 percent.
17.90 percent.
Answer:
A. 7.70 percent.
Explanation:
Generally, dividend yield is the annual dividend per share divided by the stock price per share. However, in finance, dividend yield is the difference between the expected total return and dividend growth rate per year.
Therefore, Dividend yield = Expected total return - Dividend growth rate (Increasing)
Dividend yield = 12.8% - 5.1%
Hence, Dividend yield = 7.70%
Therefore, option A is the answer.
Each oligopolistic firm recognizes that it must take into account the behavior of its competitors when it makes pricing decisions. This recognition is called: mutual dependence. mutual interdependence. monopolistic behavior. profit-maximization behavior.
Answer:
Option B is correct one.
Mutual interdependence
Explanation:
Each oligopolistic firm recognizes that it must take into account the behavior of its competitors when it makes pricing decisions. This recognition is called mutual interdependence.
Mutual interdependence is a term in which a group of oligopolies all benefit from one another. They can benefit through market share, location in terms of geography, product differentiation, price allocation, etc.
Oligopolistic firms are engaged in a state of mutual interdependence where their pricing and economic decisions are heavily influenced by the actions of a few other dominant firms within the same market. This results in either strong competition, which can lead to minimal profits, or collusion, mimicking monopoly behavior with higher profits.
Explanation:In the context of oligopolies, each oligopolistic firm must consider the potential reactions and strategies of its competitors when making decisions about pricing or other economic variables. This strategic consideration is commonly referred to as mutual interdependence, where the firms' decisions regarding output, price, and advertising are interconnected with the decisions of the other firms within the same industry.
Whether oligopolists decide to compete fiercely or collude will significantly affect the outcomes in terms of profit levels and market prices. Collusion could lead to higher profits akin to a monopoly, while competition might drive profits down to zero as if they were perfect competitors. The essence of oligopolistic markets is this balance between competition and collusion, shaping the dynamic of mutual interdependence among the firms.
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Cheyenne Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $170000 and credit sales are $1710000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Cheyenne Corp. make if the Allowance for Doubtful Accounts has a credit balance of $3400 before adjustment?
Answer:
Debit Bad debt expense $5,100
Credit Allowance for doubtful debit $5,100
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debts expense.
If the company estimates that 5% of accounts receivable will be uncollectible, then amount estimated
= 5% × $170,000
= $8,500
Given that the Allowance for Doubtful Accounts has a credit balance of $3400, additional amount required
= $8,500 - $3,400
= $5,100