Answer:
Pledges $600,000
Uncollectible Pledges at 15% -$90,000
Net Pledge Balance $510,000
Pledges - 2017 at 60% $306,000
Unrestricted Net Asset - Contribution $306,000
Account Titles Debit Credit
a)Contribution Receivable $360,000
Allowance for Uncollectible Pledges $54,000
Unrestricted Net Asset - Contribution $306,000
b)Salary Expense (20 * 600) $12,000
Unrestricted Net Asset - Contribution $12,000
Final answer:
Wilson Center should report $270,000 as contribution revenue for 2017, which is the amount of receivable pledges for 2017 minus estimated uncollectibles. The value of the donated services by the social worker, at fair market value, should also be recorded as both an increase in service expense and an increase in contribution revenue.
Explanation:
To determine how much Wilson Center should report as contribution revenue for 2017, the following steps should be taken:
Calculate the expected receivable pledges for 2017: $600,000 pledges × 60% = $360,000.
Estimate the uncollectible pledges: $600,000 total pledges × 15% = $90,000.
Subtract the uncollectible pledges from the receivable pledges for 2017: $360,000 - ($600,000 × 15%) = $360,000 - $90,000 = $270,000.
Therefore, Wilson Center should report $270,000 as contribution revenue for 2017.
Regarding the contributed service, since the services provided by the local social worker enhanced the nonprofit's capabilities and would have required the organization to hire additional staff, Wilson Center should record this donated service as both an increase in service expense and an increase in contribution revenue at the fair value of the service provided.
Here is the journal entry to record the service:
Debit Service Expense: 600 hours × $20/hour = $12,000.
Credit Contribution Revenue: $12,000.
The difference in operating income under absorption costing and variable costing is $ 33,000 . The 2017 operating income under absorption costing is greater than the operating income under variable costing because _________ As a result, under absorption costing, a portion of the fixed overhead remained in inventory and led to a lower cost of goods sold than under the other method.
Answer:
an increase in inventory units.
Explanation:
Absorption costing values units of inventory and production using full cost per unit. Full cost per unit includes variable cost and a portion of fixed production overheads. The fixed production overhead are charged to cost units using predetermined overhead absorption rate.
Whenever there is an increase in inventory in the course of the accounting period , a portion of overhead which has been charged to the closing inventory units would be carried forward to the following accounting period. The impact of this is that the cost of goods sold under absorption costing would be lower than that of variable costing unit, therefore making the profit under the former method to be greater
Brockman Guitar Company is in the business of manufacturing top-quality, steelstring folk guitars. In recent years the company has experienced working capital
problems resulting from the procurement of factory equipment, the unanticipated
buildup of receivables and inventories, and the payoff of a balloon mortgage on a
new manufacturing facility. The founder and president of the company, Barbara
Brockman, has attempted to raise cash from various financial institutions, but to
no avail because of the company’s poor performance in recent years. In
particular, the company’s lead bank, First Financial, is especially concerned
about Brockman’s inability to maintain a positive cash position. The commercial
loan officer from First Financial told Barbara, "I can’t even consider your request
for capital financing unless I see that your company is able to generate positive
cash flows from operations." Thinking about the banker’s comment, Barbara
came up with what she believes is a good plan: With a more attractive statement
of cash flows, the bank might be willing to provide long-term financing. To
"window dress" cash flows, the company can sell its accounts receivables to
factors and liquidate its raw materials inventories. These rather costly
transactions would generate lots of cash. As the chief accountant for Brockman
Guitar, it is your job to tell Barbara what you think of her plan. Answer the
following questions.
(a) What are the ethical issues related to Barbara Brockman’s idea?
(b) What would you tell Barbara Brockman?
Expert Answer
a) Barbara Brockman's idea appears to be window dressing, which is a short-term measure taken by a business to make its financial statements impressive. It is not ethical to window dress financial statements.
However, Barbara's idea on the sale of its accounts receivables to factors and the liquidation of raw materials inventories is not wholly window-dressing, if it is sustainable. They are financial management efforts to acquire cash to ensure the company's survival in the short-term. But can the company survive in the long-term? Can Barbara get factors to buy the accounts receivable and buyers of the raw materials at good prices?
The assets will certainly be sold at give-away prices. The result may weaken the financial position of the company in the long-run because the sold raw materials are required for production. The company may sell off at lower prices now, only to acquire them at higher prices later. Selling off inventories at reduced prices does not make economic sense.
b) I would encourage Barbara Brockman to try other solutions like the sale of some long-term assets that are not needed in the company. The company can offer cash discounts to customers to encourage payment on accounts. Other sustainable strategies can be explored.
Thus, I would not encourage Barbara to window-dress the company's financial statements with the sale-off of accounts receivables and raw materials.
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Final answer:
Barbara Brockman's plan to window-dress cash flows by selling accounts receivables and liquidating inventories raises ethical concerns and may not address the root causes of working capital problems.
Explanation:
Barbara Brockman's plan to sell accounts receivables and liquidate raw materials inventories to generate cash flows may raise ethical concerns. This is because it can be seen as window dressing, where the company is artificially manipulating its financial statements to create a better impression. This can mislead investors and lenders about the true financial health of the company. It can also be perceived as a short-term solution that does not address the underlying issues causing the working capital problems.
As the chief accountant, I would advise Barbara against this plan. Instead, I would suggest focusing on improving the company's operations and addressing the root causes of the working capital problems. This could involve implementing better inventory management strategies, improving collections processes, and exploring options for long-term financing that are based on the company's true financial performance.
Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances are $80,000 and $120,000, respectively. Income Summary has a credit balance of $30,000. What is Tomas's capital balance after closing Income Summary to the capital accounts?
Answer:
$102,500
Explanation:
Credit balance of $30,000 in income summary is PROFIT.
Which will be distributed among Tomas and Saturn in 3:1 ratio.
Tomas will get 3/4 * $30,000 = $22,500 as profit
After closing income summary to capital his capital balance will be
$22,500 + $80,000 = $102,500
Alpha company makes units that each requires 2 pounds of material at $3 per pound. Alpha is planning that 500 and 700 units will be built in May and June, respectively. Alpha keeps material on hand at 20% of the next month's production needs. Use this information to determine: (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units) 1. Raw Material Costs for May's Production 2. Total Cost of May's Raw Materials Purchases
Answer:
The correct answer for 1. is $3,000 and for 2. $3,240.
Explanation:
1).
Total cost of raw material for may production = Raw material unit × Required pound × Raw material price per pound
= 500 × 2 pounds × $3 per pound
= $3,000
2).
Particular April May June
Units of Raw Material 500 700
Required Pound 2 2
Need of Raw Material (Units × pounds) 1,000 1,400
Add. Ending Inventory Desired 200 280
Total of Required Raw Material (1,000+280) 1,280
Less- April ending Raw Material 200
Purchase Raw Material ( 1,280 - 200) 1,080
Per Pound Price of Raw Material $3
Total cost of Purchased Raw Material (1080 × 3) $3,240
Note : Ending inventory for April = 1,000 × 20 % = 200
Ending inventory for May = 1,400 × 20% = 280
Philadelphia Acoustics builds innovative speakers for music and home theater systems. Identify each cost as variable (V), fixed (F), or mixed (M), relative to number of speakers produced and sold 1. Units of production depreciation on routers used to cut wood enclosures. 2. Wood for speaker enclosures. 3. Patents on crossover relays. 4. Total compensation to salesperson who receives a salary plus a commission based on meeting sales goals 5. Crossover relays . 6. Straight-line depreciation on manufacturing plant . 7. Grill cloth. 8. Cell phone costs of salesperson 9. Glue 10. Quality inspector's salary
The costs associated with Philadelphia Acoustics' production and sales operation can be classified into variable, fixed, and mixed categories based on their dependence on the quantity of speakers produced and sold.
Explanation:According to their relation to the number of speakers produced and sold, the costs for Philadelphia Acoustics can be categorized as follows:
Units of production depreciation on routers used to cut wood enclosures - This is considered a variable cost (V) because it changes with the level of output.Wood for speaker enclosures - This is also a variable cost (V) as the more speakers manufactured, the more wood is required.Patents on crossover relays represents a fixed cost (F) because it does not change with units produced.Total compensation to salesperson who receives a salary plus a commission based on meeting sales goals - This is a mixed cost (M) as it involves a fixed element (salary) and variable factor (commission).Crossover relays - These costs are variable (V) because they shift according to production.Straight-line depreciation on manufacturing plant - This is a fixed cost (F) because it does not change regardless of the manufacturing quantities.Grill cloth - This is a variable cost (V) because it changes along with production.Cell phone costs of salesperson - This can be seen as mixed cost (M) since it contains fixed (basic rates) and variable costs (additional charges).Glue - This is considered a variable cost (V) because it varies with the quantity of products.Quality inspector's salary - This is a fixed cost (F) because it remains the same, irrespective of the output.Learn more about Cost Classification here:https://brainly.com/question/33447487
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In summary, the costs are classified as follows: 1. V, 2. V, 3. F, 4. M, 5. V, 6. F, 7. V, 8. F, 9. V, 10. F.
The costs identified relative to the number of speakers produced and sold are as follows:
1. Units of production depreciation on routers used to cut wood enclosures: Variable (V)
- This cost varies with the number of units produced because depreciation is allocated based on the usage of the router.
2. Wood for speaker enclosures: Variable (V)
- The amount of wood used directly correlates with the number of speaker enclosures produced.
3. Patents on crossover relays: Fixed (F)
- Patent costs are generally fixed over a certain period and do not change with the number of units produced.
4. Total compensation to salesperson who receives a salary plus a commission based on meeting sales goals: Mixed (M)
- The salary portion is fixed, while the commission is variable, depending on sales volume.
5. Crossover relays: Variable (V)
- The cost of crossover relays will vary with the number of speakers produced as each speaker will require these components.
6. Straight-line depreciation on manufacturing plant: Fixed (F)
- Depreciation on the manufacturing plant is a fixed cost that does not change with the production volume of speakers.
7. Grill cloth: Variable (V)
- The grill cloth is used in each speaker, so the cost varies with the number of speakers produced.
8. Cell phone costs of salesperson: Fixed (F)
- The cell phone cost for the salesperson is typically a fixed expense, as it is not directly tied to the number of units sold.
9. Glue: Variable (V)
- The amount of glue used will vary with the number of speakers produced, as it is a direct material cost.
10. Quality inspector's salary: Fixed (F)
- The salary of the quality inspector is a fixed cost, as it does not change with the production volume.
In summary, the costs are classified as follows: 1. V, 2. V, 3. F, 4. M, 5. V, 6. F, 7. V, 8. F, 9. V, 10. F.
You are a game designer, what is your job description? Group of answer choices develops and maintains programs and tools designed to provide security to a network integrates and expands the company’s initiatives for mobile users designs games and translates designs into a program or app using an appropriate application development language develops and directs an organization’s mobile strategy, including marketing and app development
Answer:
Designs games and translates designs into a program or app using an appropriate application development language
Explanation:
A game designer is a person that takes care of creating new games. This job involves developing ideas for new games, creating concepts, designing prototypes and the final versions of the game for different platforms and devices. According to this, the answer is that the job description of a game designer is designing games and translating designs into a program or app using an appropriate application development language.
Complexion Care Inc., a U.S.-based skin care firm, was the first in the industry to identify the growth potential of Thailand and made huge investments in its economy. As a result, the firm was able to build brand loyalty and gain experience in that country's business practices. In this situation, Complexion Care Inc. has benefited from a first-mover advantage forward integration. unrelated differentiation. deregulation. privatization.
Answer: First-Mover Advantage
Explanation:
The FIRST MOVER is a SERVICE, PRODUCT or COMPANY that gains a COMPETITIVE ADVANTAGE by getting to a market first.
Advantages of this include being able to establish Strong Brand and Customer Loyalty before competitors come into the market and the opportunity of extra time to perfect marketing and production strategies to fully capitalise on market share.
First movers are usually followed by competitors immediately but more often than not, the first mover has established such a strong market share and a solid enough customer base that it maintains the majority of the market.
Prepare an amortization schedule for a three-year loan of $84,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan
An amortization schedule can be created by calculating annual payments using the annuity formula, and noting down interest and principal repayment proportions. The total interest paid is calculated by multiplying the annual payment with the number of years and subtracting the original loan amount.
Explanation:From the given information, the annual payment for the three-year loan of $84,000 at 9% interest rate can be calculated using an annuity formula. The annual payment can be calculated using the formula A = P * [ r(1 + r)^n ] / [ (1 + r)^n - 1], where P is the loan amount ($84,000), r is the rate of interest (9% or 0.09), and n is the number of years (3). After calculating an annual payment, an amortization schedule can be formed, showing the proportions of principal repayment and interest in each payment.
Each year, the interest portion of the payment would decrease while the principal repayment would increase.
Total interest paid over the life of the loan would be obtained by multiplying the annual payment by the number of years, and subtracting the original loan amount. The presented tables must be an illustration rather than a direct answer to the question as some values do not match the given parameters. Please disregard the irrelevant information provided.
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Samuel, Inc. has Accounts Receivable of $260,000 and an Allowance for Doubtful Accounts of $16,000. If it writes-off a customer account balance of $1,600, what is the amount of its net accounts receivable
Answer:
Net accounts receivable before write-off = $244,000
Net accounts receivable after write-off = $229600
Explanation:
given data
Accounts Receivable = $260,000
Allowance for Doubtful Accounts = $16,000
writes-off customer account balance = $1,600
solution
we get her Net accounts receivable that is express as
Net accounts receivable = Accounts Receivable - Allowance for Doubtful Accounts .....................1
so here before write-off Net accounts receivable is
Net accounts receivable = $260,000 - $16,000
Net accounts receivable = $244,000
and
after write-off
writes-off a customer account balance entry as
Allowance Doubtful Account = $1,600 Debit
Accounts Receivable = $1,600 Credit
so
Net accounts receivable after write-off
Net accounts receivable = $244,000 - ($16000 - 1600 )
Net accounts receivable = $229600
The French Government runs a budget deficit and finances it by borrowing $20 billion. Use the loanable fund model to show the decline in public savings and decline in investments (crowding out).
Answer: Please refer to explanation
Explanation:
The Loanable Find model attempts to explain the movement in interest rate as a function of supply and demand.
Now, if more people are looking for loans (demand increases) and supply remains the same, the demand curve is forced to shift to the right. This increases the Equilibrium interest rate.
This increased Interest rate then leads to a CROWDING OUT effect because the private sector will reduce it's borrowing as it cannot borrow at such high rates.
This is what will happen should the French government borrow such a large amount especially if the economy is operating at FULL CAPACITY. They will INCREASE the demand for loans and therefore CROWD OUT the private sector.
I have included a graph to explain it more.
If you have need for any clarification do react or comment.
The French government's borrowing to finance a budget deficit can lead to a reduction in public savings and crowd out private investment, demonstrated through the loanable funds model where increased government demand for loanable funds raises interest rates and reduces the investment by private firms.
Explanation:When the French government runs a budget deficit and finances it by borrowing $20 billion, this process is illustrated using the loanable funds model. In this scenario, there is a decline in public savings due to the government's need to borrow funds to cover its deficit. This borrowing competes with private sector demand for loanable funds, resulting in an increase in interest rates.
The loanable funds model depicts that as the government enters the market to borrow, the demand curve for financial capital shifts to the right from Do to D1. With the increased competition for funds, the interest rates are driven up from 5% to 6%. This higher interest rate can crowd out private investment because firms may find it more expensive to borrow, thereby reducing their investment activities.
As interest rates rise, some private investments that were profitable at lower interest rates might not be undertaken, leading to a decrease in overall private investment. Over time, this effect can lead to decreased economic growth and potential inefficiencies in the allocation of resources.
6. Taxpayer ("T") a 59 year-old calendar year individual taxpayer purchased an annuity from an insurance company for $100,000 in 2019. The terms of the annuity were that the company would pay T $5,000 a year to T for the rest of T’s life. How much income will T include in T’s personal income tax return as a result of receiving the $5,000 payment
Answer:
In the year 2020 --- Not taxable Hence -Nil
In the year 2050----Taxable. Hence $5000
Explanation:
Assumed that the tax payer purchased the annuity from Tax paid Income'.
In this case the tax payers income of $5000 is partly taxable . That is the percentage of the payment that's considered a return on your initial investment will not be taxable. the rest, which is your gain on the investment, will be taxed. In this case for the first twenty years($100000/$5000) =20 years will not be taxable. Hence
In the year 2020 --- Not taxable Hence -Nil
In the year 2050----Taxable. Hence $5000
The buffer in a bad-news message is a
a. statement completely unrelated to the bad news so that receivers will not know that bad news is coming.
b. hint that good news will follow.
c. denial of the requested action.
d. statement that reduces shock or pain and encourages the receiver to continue reading.
Answer:
Option D is correct one.
The buffer in a bad-news message is a statement that reduces shock or pain and encourages the receiver to continue reading
Explanation:
A buffer is often used in a business communication in delivering a bad or negative news. To lessen the impact of the negative news and bring the reader into a positive frame of mind before he or she actually gets to the bad news. Its beneficial to have buffer to lessen the impact.
Suad Alwan, the purchasing agent for Dubai Airlines, is interested in determining what he can expect to pay for airplane number 4 if the third plane took 20,000 hours to produce. What would Alwan expect to pay for plane number 5? Number 6? Use an 85% learning curve and a $40-per-hour labor charge.
Answer:
Alwan expect to pay for airplane 4= $747818.48
Explanation:
given data
expect to pay airplane = 4
3rd plane produce = 20,000 hours
learning curve = 85%
solution
As here logarithmic approach allow get labor for any unit, TN, as
TN = T1(Nb)
here TN is time for the Nth unit and T1 is hours to produce the first unit
so
b = (log of the learning rate) ÷ (log 2) = slope of the learning curve
so
T3 = T1(3log(0.85)÷log2)
so we get
So Alwan expect to pay for airplane 4 = $747818.48
The amounts that Suad Alwan would expect to pay for the following airplanes are as follows:
Airplane # 4 = $680,000
Airplane # 5 = $578,000
Airplane # 6 = $491,320
Data and Calculations:
Number of labor-hours to produce plane # 3 = 20,000 hours
Learning curve = 85%
Labor charger per hour = $40
Number of labor-hours to produce plane # 4 = 17,000 hours (20,000 x 85%)
Number of labor-hours to produce plane # 5 = 14,450 hours (17,000 x 85%)
Number of labor-hours to produce plane # 6 = 12,283 hours (14,450 x 85%)
Labor cost of plane # 4 = $680,000 (17,000 x $40)
Labor cost of plane # 5 = $578,000 (14,450 x $40)
Labor cost of plane # 6 = $491,320 (12,283 x $40)
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A 1,500 square foot office space is leased at $12.00 square foot. The space is vacant one month out of the year. Office expenses are $6.50 per square foot and an expense stop is set at $6.00 per square foot. What is the annual net operating income? $8,250 $15,750 $6,750 $7,500
Answer:
$7500
Explanation:
An expense stop is a tool used by landlords to limit their operating costs and maintain predictable operating costs over the terms of the lease. Hence, even though the operating expense is $6.50, the landlord is only accountable for $6.
The operating costs annually would be: 1500 x 6 = 9000
(Even though the office space is vacant for one month of the year, maintenance costs will still be incurred throughout the year, whether leased or vacant)
Annual income :
1500 x 12 = $18000 (12 months)
It should be noted though that the office space is vacant for one month. Hence, landlord only receives 11 months worth of leased rent. Actual income : (18000/12) x 11 = $16500
Net operating income annually : Total income - Total expenses = $16500 - $9000 = $7500
To find the Net Operating Income of a leased office space, we first calculate the total income the space generates, subtract the total expenses considering the expense stop, and the difference gives us the NOI, which in this case is $86,250.
Explanation:The subject of this question is Net Operating Income (NOI), which is a crucial concept in real estate and business. We first calculate the total income the office space generates by multiplying its area with the lease rate per square foot, and then subtracting the one month's worth when it is vacant.
Income = [(1,500 sq ft * $12.00/sq ft) * 11 months] = $198,000
Next, we calculate the total expenses. Here the expense stop comes into play. An expense stop is a clause in a lease that limits the landlord's obligation to pay for certain escalating costs. So, any expense above that cap is paid by the tenant. Therefore, total expenses are calculated as:
Total Expenses = [1,500 sq ft * $6.50/sq ft * 12 months] - [1,500 sq ft * ($6.50/sq ft-$6.00/sq ft) * 11 months]= $111,750
Finally, we can compute the net operating income by subtracting the total expenses from total income.
NOI = Income - Total Expenses = $198,000 - $111,750 = $86,250.
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Chubbs Inc.’s manufacturing overhead budget for the first quarter of 2017 contained the following data.
Variable Costs
Fixed Costs
Indirect materials $11,100 Supervisory salaries $36,700
Indirect labor 11,000 Depreciation 6,100
Utilities 7,700 Property taxes and insurance 7,400
Maintenance 5,500 Maintenance 4,900
Actual variable costs were indirect materials $14,800, indirect labor $9,200, utilities $9,300, and maintenance $5,200. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,400. The actual activity level equaled the budgeted level.
All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance.
(a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.)
(b) Prepare a responsibility report for the first quarter.
Answer and Explanation:
a. The preparation manufacturing overhead flexible budget report is shown below:-
Manufacturing overhead flexible budget report
Budget Actual Favorable (unfavorable)
Variable costs
Indirect materials $11,100 $14,800 $3,700 U
Indirect labor $11,000 $9,200 $1,800 F
Utilities $7,700 $9,300 $1,600 U
Maintenance $5,500 $5,200 $300 F
Total variable cost $35,300 $38,500 $3,200 U
Fixed expense
Supervisory salaries $36,700 $36,700 0
Depreciation $6,100 $6,100 0
Property ,taxes $7,400 $8,400 $1,000 U
Maintenance $4,900 $4,900 0
total fixed expense $55,100 $56,100 $1,000 U
total controllable cost $90,400 $94,600 $4200 U
b. The preparation of Manufacturing overhead Responsibility report is shown below:-
Controllable costs Budget Actual Favorable(unfavorable)
Indirect materials $11,100 $14,800 $3,700 U
Indirect labor $11,000 $9,200 $1,800 F
Utilities $7,700 $9,300 $1,600 U
Maintenance $10,400 $10,100 $300 F
Supervisory salaries $36,700 $36,700 0
Total $76,900 $80,100 $3200 U
Ornaments, Inc., is an all-equity firm with a total market value of $542,000 and 20,700 shares of stock outstanding. Management believes the earnings before interest and taxes (EBIT) will be $76,400 if the economy is normal. If there is a recession, EBIT will be 20 percent lower, and if there is a boom, EBIT will be 30 percent higher. The tax rate is 35 percent. What is the EPS in a recession
Answer: $1.92
Explanation:
First we would need to calculate the EBIT in a Recession.
Question says that EBIT in a Recession is 20% lower than normal.
Calculating therefore we have,
= 76,400 * ( 1 - 0.2)
= 76,400 (0.8)
= $61,120
EBIT in a Recession is $61,120.
Now we have to account for taxes assuming no interest payments.
Taxes are 35%.
= 61,120 ( 1 - 0.35)
= $39,728
This is the after tax earnings in a Recession.
Earnings Per Share (EPS) is simply Earnings divided by No. of shares
= $39,728/20,700
= $1.92
The EPS in a recession is $1.92
In 2022, internal auditors discovered that Axel Corp., had debited an expense account for the $2,090,000 cost of a machine purchased on January 1, 2019. The machine's useful life was expected to be 11 years with no residual value. Straight-line depreciation is used by Axel. The journal entry to correct the error will include a credit to accumulated depreciation of:
Answer:
Debit Depreciation expense $570,000
Credit Accumulated depreciation $570,000
(To record the accumulated depreciation for 3 years)
Explanation:
Using a Straight-line depreciation method, depreciation expense = (Cost - Salvage value)/Estimated useful life
Depreciation expense = $2,090,000 / 11 years = $190,000 yearly
We would assume that the internal auditors detected the error at the beginning of Year 2022, so the accumulated depreciation for 3 years (Jan 2019 - Dec 2021) would be $190,000 x 3 years = $570,000
The following correctional entries will apply:
Debit Fixed asset - Machine $2,090,000
Credit Expense account $2,090,000
(To appropriately record the purchase of machine)
The required adjustment fot the accumulated depreciation is recorded above under the answer section.
Final answer:
The journal entry to correct the error will include a credit to accumulated depreciation of $2,090,000. The accumulated depreciation as of 2022 would be $570,000.
Explanation:
The journal entry to correct the error will include a credit to accumulated depreciation of $2,090,000. Since the machine was purchased on January 1, 2019, and has a useful life of 11 years with no residual value, it should have accumulated 3 years of depreciation by 2022. Straight-line depreciation is used by Axel, so we can calculate the annual depreciation expense as the cost of the machine divided by its useful life. In this case, it would be $2,090,000 / 11 = $190,000 per year. Therefore, the accumulated depreciation as of 2022 would be $190,000 x 3 = $570,000.
When developing a test, training, and exercise program for the pandemic plan, organizations should ensure that: A. All operations can continue with dramatically fewer people B. Essential functions can be completed even if Information Technology systems fail C. Pandemic plans can work for up to 30 days without interruption D. Essential personnel know that they are expected to work even if they get the flu
Answer:
The answer A) All operations can continue with dramatically fewer people
Explanation:
In case of Pandemic planning, organization will have to work with a much small workforce. This would mean that 'business as usual' might not always be possible but with the help of robust information technology infrastructure, work could continue.
Option B is wrong since , a well-performing IT infrastructure is the backbone of every pandemic testing and training. Without which, a modern workforce will not be able to perform even 'essential' duties.
Option C and D are wrong since these are both dangerous and will only increase the likeliness of others getting sick.
Which of the following is a fixed cost? Multiple Choice A cost that is $28.00 per unit when production is 70,000, and $17.50 per unit when production is 112,000. A cost that is $28.00 per unit when production is 70,000, and $56.00 per unit when production is 112,000.
Answer:
The fixed cost is: A cost that is $28.00 per unit when production is 70,000, and $17.50 per unit when production is 112,000.
Explanation:
A fixed cost is a cost that remains fixed or constant, in total, over any activity level in the short run. Another attribute of the fixed cost is that per unit fixed cost falls as activity level rises. Using this attribute we can say that the cost which is $28 per unit at 70000 units and falls to $17.5 per unit when production increases to 112000 units is the fixed cost.
To support our answer, we can calculate the total cost at both these activity levels:
Total cost = 28 * 70000 = $1960000
Total cost = 17.5 * 112000 = $1960000
Answer:
Choice A cost that is $28.00 per unit when production is 70,000, and $17.50 per unit when production is 112,000
Explanation:
Fixed cost is cost that does not vary with production.
It is the same no matter the level of output.
Examples of fixed cost is rent.
To determine which cost is fixed cost, find the total fixed cost.
For choice A : $28.00 × 70,000 = $1,960,000
$17.50 x 112,000 = $1,960,000
The total cost is the same for each unit of output, therefore, choice a is a fixed cost.
For choice B : $28 × 70,000 = $1,960,000
$56.00 x 112,000 = $6,272,000
The total varies, so one can conclude that choice B contains variable cost.
I hope my answer helps you
The stockholders’ equity section of Jun Company’s balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 15% stock dividend. The stock’s per share market value on April 2 is $10 (prior to the dividend). Common stock—$5 par value, 465,000 shares authorized, 245,000 shares issued and outstanding $ 1,225,000 Paid-in capital in excess of par value, common stock 580,000 Retained earnings 878,000 Total stockholders' equity $ 2,683,000 Prepare the stockholders’ equity section immediately after the stock dividend.
The new stockholders' equity section of the Jun Company's balance sheet, after declaring and distributing a 15% stock dividend, has a common stock value of $1,408,750, a paid-in capital in excess of par value (common stock) value of $763,750, retained earnings value of $694,250, leading to a total stockholders' equity value of $2,866,750.
Explanation:First, we need to determine the number of shares that the stock dividend will create. A 15% stock dividend on 245,000 shares equals 36,750 new shares (0.15 * 245,000). These shares have a par value of $5, so the total par value of the new shares is $183,750 (36,750 * $5).
Next, we calculate the market value of the new shares. They are worth $10 each, therefore the total market value is $367,500 (36,750 * $10). This value is divided into two parts: par value ($183,750, which we already calculated) and additional paid-in capital ($183,750) which is the market value minus the par value.
So, the new stockholders' equity section would look like this:
Common stock—$5 par value, 465,000 shares authorized, 281,750 shares issued and outstanding: $1,408,750 (Previous Common stock value: $1,225,000 + New Par value: $183,750)Paid-in capital in excess of par value, common stock: $763,750 (Previous: $580,000 + Additional Paid-in Capital: $183,750)Retained earnings: $694,250 (Previous: $878,000 - Market value of stock dividend: $183,750)Total stockholders' equity: $2,866,750Learn more about Stockholders' Equity here:https://brainly.com/question/31982519
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Crane uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $378000 ($582000), purchases during the current year at cost (retail) were $1815000 ($3060000), freight-in on these purchases totaled $117000, sales during the current year totaled $2760000, and net markups (markdowns) were $60000 ($96000). What is the ending inventory value at cost
Answer:
$524,520
Explanation:
The computation of the ending inventory at cost is shown below:
Particulars Cost Retail
Beginning Inventory $378,000 $582,000
Purchases $1,815,000 $3,060,000
Freight In $117,000
Net Mark ups $60,000
Total $2,310,000 $3,702,000 (62%)
Net Mark Downs -$96,000
Sales -$2,760,000
Ending Inventory $2,310,000 $846,000
So, at 62%, the ending inventory is
= $846,000 × 62%
= $524,520
Why would an economist choose either the neoclassical perspective or the Keynesian perspective, but not both?Why would an economist choose either the neoclassical perspective or the Keynesian perspective, but not both?
Answer:
This is because the concepts and approaches to economic issues differ.
Explanation:
Too begin with, it is important to understand the concept of neoclassical perspective and Keynesian perspective.
Neoclassical perspective hinges on the fact that demand and supply as the Filip behind production, pricing, productivity and consumption pattern of end users and thus a factor towards economic growth and productivity. It simply allows for market forces to interplay.
Keynesian perspective, on the other hand, hinges on the fact that the demand is the singular factor behind economic growth and prosperity. Thus, an economy driving towards growth and development should increase its aggregate demand.
In effect, and going by the above definitions, an economist will thus only choose one simply because the two perspectives differ in approach and concepts.
While one considers both aggregate demand and aggregate supply as a tool towards economic growth and prosperity, the other is strictly conservational, and believes the authority should stimulate only aggregate demand as a tool towards economic growth and development.
The choice between the Keynesian and Neoclassical perspectives depends on an economist's emphasis on aggregate supply or on immediate economic stimulation, respectively. It's akin to a balancing act between the two viewpoints' strengths and weaknesses.
Explanation:An economist would choose between the neoclassical perspective and the Keynesian perspective based on strengths and weaknesses inherent in each viewpoint. The neoclassical perspective places emphasis on aggregate supply and believes that long-term productivity growth determines potential GDP. They advocate for a limited role in active stabilization policy as they believe the economy will return to full employment after changes in demand. On the other end, the short-term Keynesian perspective focuses on resolving immediate community economic issues which may, unfortunately, lead to long-term economic instability. Therefore, deciding between these two perspectives can be likened to a balancing act, trying to leverage the strengths of one approach while mitigating the weaknesses of the other.
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Cookie Monster Inc. produces cookies using two inputs, cookie dough and chocolate chips. The firm’s production function is given by Q(D,C) = D^2C, MPD = 2DC, MPC = D^2, where Q denotes the quantity of cookies per day, D the batches of cookie dough per day, and C the cups of chocolate chips per day. Assume that the price of a batch of cookie dough is $2 and the price of a cup of chocolate chips is $1.
a) How much dough and chocolate chips should the firm use to maximize pro- duction if it has a fixed budget of $900 to spend on production?
b) What is the maximum number of cookies it can produce with $900?
2. Cookie Monster Inc. produces cookies using two inputs, cookie dough and chocolate chips. The firm’s production function is given by Q(D,C)=DC, MPD =C, MPC =D, where Q denotes the quantity of cookies per day, D the batches of cookie dough per day, and C the cups of chocolate chips per day. Assume that the price of a batch of cookie dough is $1 and the price of a cup of chocolate chips is $3.
a) How much dough and chocolate chips should the firm use to produce 300 cookies at minimum cost?
b) What is the minimum cost of producing 300 cookies?
Answer:
1.
(a) Number of dough and chocolate chips = 300
(b) Maximum number of cookies = 27000000
2.
(a) Number of dough and chocolate chips = 10
(b) Minimum cost of production = $60
Explanation:
See the attached file for the calculation
Mykha's company makes jewelry from doll shoes. She increases production but finds that her costs continue to rise while profits decrease. What letter on the graph represents Mykha's situation?
A
B
C
D
Answer:
D
Explanation:
Point D is the letter on the graph represents Mykha's situation. As costs continue to rise while profits decrease.
What is cost-push inflation?Cost-push When production costs rise and the overall supply of products and services declines, inflation has taken place. For instance, it's feasible that the owner of a firm will simply shut down the operation if low-paid workers at the facility organize a union and demand higher salaries.
Thus, option D is correct.
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You must estimate the intrinsic value of Noe Technologies' stock. The end-of-year free cash flow (FCF1) is expected to be $27.50 million, and it is expected to grow at a constant rate of 7.0% a year thereafter. The company's WACC is 10.0%, it has $125.0 million of long-term debt plus preferred stock outstanding, and there are 15.0 million shares of common stock outstanding. What is the firm's estimated intrinsic value per share of common stock?
Answer:
$52.78
Explanation:
For computing the intrinsic value first we have to determine the total value of common stock which is shown below:
Total Value of common stock is
= Free cash flow ÷ WACC - g
= $27.5 M ÷ ( 0.10 - 0.07)
= $916.67 Million
Now
Intrinsic value per share is
= (Total value of common stock - long term debt plus preferred stock outstanding) ÷ shares of common stock outstanding
= ($916.67 million - 125 million) ÷ 15.0 million
= $52.78
Mulherin's stock has a beta of 1.2, its required return is 10%, and the risk-free rate is 4%. What is the required rate of return on the market? (Answer: %, Hint: First, find the market risk premium.)
Answer:
9%
Explanation:
The formula is Ra=Rf+(Rm-Rf)Ba
Ra=10%
Ba=1.2
Rf=4%
Rm=?
Ra=Rf+(Rm-Rf)*Ba
10%=4%+(Rm-4%)*1.2
10%=4%+1.2Rm-4.8%
10%+4.8%=4%+1.2Rm
14.8%-4%=1.2Rm
Rm= 10.8%/1.2
Rm=9%
Briefly explain the nature of a perfectly competitive firm. Briefly discuss the effects of new entrants into a perfectly competitive market on existing firms that have profits in the short run.
Answer:
Explanation:
The nature of perfect competition is that there exist a large number of firms in an industry. However their products are identical from one seller to another, and sellers are referred to as price takers.
Perfect competition refers to a
situation whereby there are many sellers in the firm, and the entering and exiting of the firm is easy and accessible.
In the perfect competitive firm, the firms in the competitive market has no control in changing the supply and demand of the market.
Perfectly competitive firm can be described as price taker, i.e it must accept the equilibrium price at which it sells it's goods.
The effects of new entrants into a perfectly competitive market on existing firms that have profits in the short run will shift the demand curve of each individual downward, this will now makes the price to fall, and also the average revenue and marginal revenue curve. In addition the productivity of firms in the market will be proportional to their optimal level of production.
Answer:
Perfectly competitive firm means that there are many buyers (consumers) and sellers (producers) in the market and none of the companies can control the pricing (they are price takers).
Explanation:
Characteristics of a perfectly competitive firm.
1. Many buyers and sellers
2.No transaction cost
3. As for new entrants into the market, there are no barriers for them to enter the market
4.Products are undifferentiated ( identical )
5. There is perfect information concerning the pricing of the good
Examples of perfectly competitive firms
1. Foreign exchange markets
The currency is undifferentiated, it's identical in all trading platforms.
If you are a trader you have access to many buyers and sellers.
Information about the prices are available and accurate.
Joel wants to buy his best friend a home audio system for his birthday. He visits a few electronic stores and looks at different brands of audio systems and compares their prices. He finally purchases a wireless Bluetooth home audio system from a store that offers good quality within a reasonable price. In the context of product classifications, Joel's purchase falls under the category of _____.
Answer: Shopping products
Explanation:
A shopping product is a type of product which equires consumer research and the comparison of different brands. Shopping products are items that are less frequently bought by the consumer hence the consumer compare several available brands in the market.
Consumers need planning, time and efforts before a final decision is taken on whether to purchase the product or not.
For example, considering the audio system that Joel wants to buy, he analyzed available brands firstly in the market taking the price and quality into consideration after which a wireless bluetoth home audio system was chosen and paid for. Examples of shopping product are washers, fridge, television etc.
Answer:
shopping products
Explanation:
The following information relates to the Magna Company for the upcoming year, based on 402,000 units. Amount Per Unit Sales $ 8,844,000 $ 22.00 Cost of goods sold 5,628,000 14.00 Gross margin 3,216,000 8.00 Operating expenses 422,100 1.05 Operating profits $ 2,793,900 $ 6.95 The cost of goods sold includes $1,320,000 of fixed manufacturing overhead; the operating expenses include $112,000 of fixed marketing expenses. A special order offering to buy 62,000 units for $13.80 per unit has been made to Magna. Fortunately, there will be no additional operating expenses associated with the order and Magna has sufficient capacity to handle the order. How much will operating profits be increased if Magna accepts the special order
Answer:
$143,356
Explanation:
The computation of the increased in the operating income if the special order is accepted is
Sales (62,000 units × $13.80) $855,600
Less: cost of goods sold -$664,418
($5,628,000 - $1,320,000) ÷ 402,000 units × 62,000 units
Less: Operating expenses -$47,826
($422,100 - $112,000) ÷ 402,000 units × 62,000 units
Operating income $143,356
We simply deduct the operating expenses and the cost of goods sold from the sales revenue so that the increase in operating income could come
After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Cost Formula Actual Cost in March Utilities $20,600 + $0.10 per machine-hour $ 24,200 Maintenance $40,000 + $1.60 per machine-hour $ 78,100 Supplies $0.30 per machine-hour $ 8,400 Indirect labor $130,000 + $0.70 per machine-hour $ 149,600 Depreciation $70,000 $ 71,500 During March, the company worked 26,000 machine-hours and produced 15,000 units. The company had originally planned to work 30,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March.
Question:
BEGINNING PART OF THE QUESTION
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.
Answer:
Spending Variance = $1000 Unfavourable
Activity Variance = $10,800 Favourable
ANSWERS AND EXPLANATIONS OF THE ACTIVITY VARIANCE AND SPENDING VARIANCE SHOWN IN THE ATTACHMENT.
Refer to the attachment for solution. Thanks