Answer: The answer is provided below
Explanation:
Here is the complete question:
Maggie must decide if she wants to open a start-up or work as an economics tutor. The business she is considering is risky because with 60% probability she earns $300 and with 40% probability she earns nothing. As an economics tutor she earns $160 with certainty. She has an initial wealth of $100 and her utility function is
U(C) = ✓C
a. What is Maggie's expected income from her start up?
b. What is Maggie's expected utility for opening the start up?
c. What is Maggie's certainty equivalent associated with opening the start up?
a. Expected income = 60% of ($100 + $300) + (40% of $100)
= (0.6 × 400) + (0.4 × 100)
= $240 + $40
= $280
Maggie's expected income from her start up is $280.
b. Expected utility
= (60% × ✓100 + ✓300) + (40% × ✓100)
= (0.6 × ✓400) + (0.4 × 10)
= (0.6 × 20) + (0.4 × 10)
= 12 + 4
= 16
Maggie's expected utility for opening the start up is 16
c. Certainty equivalent
U(C) = ✓C
Since expected utility= 16
✓C = 16
C = 16²
C = 16 × 16
= 256
Maggie's certainty equivalent associated with opening the start up is 256.
The adjusted trial balance columns of the worksheet for Bridgeport Company are as follows.
Bridgeport Company
Worksheet (Partial)
For the Month Ended April 30, 2019
Adjusted Trial Balance
Account Titles Dr. Cr.
Cash 10,000
Accounts Receivable 8,080
Prepaid Rent 2,500
Equipment 22,700
Accumulated Depreciation—Equip. 5,500
Notes Payable 5,700
Accounts Payable 5,500
Common Stock 19,460
Retained Earnings 8,100
Dividends 3,400
Service Revenue 15,000
Salaries and Wages Expense 10,980
Rent Expense 900
Depreciation Expense 700
Interest Expense 60
Interest Payable 60
Totals 59,320 59,320
Journalize the closing entries at April 30.
Post the closing entries to Income Summary and Retained Earnings.
Prepare a post-closing trial balance at April 30.
Answer:
The purpose of the post closing trial balance is to verify thtat the debit totals equal credit totals of the permananet accounts and temperoray accounts have zero balances.
Explanation:
Bridgeport Company
Closing Entries
Date Particulars Debit Credit
Apr 30 Income Summary 12,640
Common Stock 19,460
Salaries & Wages Expense 10,980
Rent Expense 900
Depreciation Expense 700
Interest Expense 60
Closing Expense Accounts to Income Summary
Service Revenue 15,000
Income Summary 15,000
Closing Revenue Accounts to Income Summary
Retained Earnings 8,100
Income Summary 8100
To close retained earnings to income summary
Retained Earnings 3400
Dividends 3400
To close dividends
Bridgeport Company
Post Closing Trial Balance
Debit Credit
Cash 10,000
Accounts Receivable 8,080
Prepaid Rent 2,500
Equipment 22,700
Accumulated Depreciation—Equip. 5,500
Common Stock 19,460
Notes Payable 5,700
Accounts Payable 5,500
Interest Payable 60
Capital / RE 7060
Total 43280 43280
Differential Analysis for a Discontinued Product A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year: Sales $12,750,000 Cost of goods sold 8,500,000 Gross profit $ 4,250,000 Operating expenses 6,000,000 Loss from operations $ (1,750,000) It is estimated that 25% of the cost of goods sold represents fixed factory overhead costs and that 15% of the operating expenses are fixed. Because Fruit Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued. a. Prepare a differential analysis dated January 5 to determine whether Fruit Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". Use a minus sign to indicate a loss. Differential Analysis Continue Fruit Cola (Alt. 1) or Discontinue Fruit Cola (Alt. 2) January 5 Continue Fruit Cola (Alternative 1) Discontinue Fruit Cola (Alternative 2) Differential Effect on Income (Alternative 2) Revenues $ $ $ Costs: Variable cost of goods sold Variable operating expenses Fixed costs Income (Loss) $ $ $ b. Should Fruit Cola be retained
Answer:
Healthy Beverage Inc.
a) Differential Analysis
1) Continue Fruit Cola (Alt. 1)
Sales $12,750,000
Cost of goods sold 8,500,000
Gross profit $4,250,000
Operating expenses 6,000,000
Loss from operations ($1,750,000)
2) Discontinue Fruit Cola (Alt. 2)
Differential Effect on Income (Alternative 2):
Fixed costs:
Cost of goods sold $2,125,000
Operating expenses 900,000
Income (Loss) ($3,025,000)
b. Should Fruit Cola be retained ?
The production and sale of the Fruit Cola should be continued. Discontinuing it would not save the company the incurrence of the fixed cost.
Explanation:
Differential analysis is a managerial accounting technique for analyzing the different costs and benefits that would arise from alternative solutions to a particular problem.
In the above scenario, discontinuing the production and sale of Fruit Cola would not save the company the fixed costs, so the product should be continued. It is not the product that is causing the net loss but allocated fixed costs. Fixed cost is a sunk cost that is not relevant in differential analysis type of decision making.
Osborn Manufacturing uses a predetermined overhead rate of $20.20 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $282,800 of total manufacturing overhead for an estimated activity level of 14,000 direct labor-hours.The company incurred actual total manufacturing overhead costs of $279,000 and 13,500 total direct labor-hours during the period.Required:1. Determine the amount of underapplied or overapplied manufacturing overhead for the period.2. Assuming that the entire amount of the underapplied or overapplied overhead is closed out to cost of goods sold, what would be the effect of the underapplied or overapplied overhead on the company's gross margin for the period?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Predetermined overhead rate= $20.20 per direct labor-hour.
The company incurred actual total manufacturing overhead costs of $279,000 and 13,500 total direct labor-hours during the period.
First, we need to calculate the allocated overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 20.20*13,500= $272,700
Now, we can determine the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 279,000 - 272,700
Under/over applied overhead= $6,300 underapplied
If overhead is underapplied, the company incurred in more overhead costs than estimated. Therefore, gross profit would decrease.
Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .15 .37 .47 .27 Good .45 .22 .18 .11 Poor .35 −.04 −.07 −.05 Bust .05 −.18 −.22 −.08 a. Your portfolio is invested 20 percent each in A and C, and 60 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
2.41%
Explanation:
Note: The data in the question are merged and are first sorted before answering the question as follows:
a. Calculation of expected return of individual stock
Expected return of stock A = (0.15 * 0.45) + (0.37 * 0.22) + (0.47 * 0.18) + (0.27 * 0.11) = 0.26
Expected return of stock B = (0.15 * 0.35) + (0.37 * (−0.04)) + (0.47 * (−0.07)) + (0.27 * (−0.07)) = −0.01
Expected return of stock C = (0.15 * 0.05) + (0.37 * (−0.18)) + (0.47 * (−0.22)) + (0.27 * (−0.08)) = −0.12
b. Calculation of expected return of the portfolio
This is the sum of the product of expected return of individual stock and percentile invested in each stock as follows:
Expected return of portfolio = (0.26 * 20%) + (−0.01 * 60%) + (−0.12 * 20%) = 0.0241, or 2.41%
Analysis of an income statement, balance sheet, and additional information from the accounting records of Gadgets, Inc., reveals the following items.
Required: Select the section of the statement of cash flows in which each of these items would be reported: operating activities (indirect method), investing activities, financing activities, or a separate noncash activities note.
1. Purchase of a patent. 2. Depreciation expense. 3. Decrease in accounts receivable. 4. Issuance of a note payable. 5. Increase in inventory. 6. Collection of notes receivable. 7. Purchase of equipment. 8. Exchange of long-term assets. 9. Decrease in accounts payable. 10. Payment of dividends.
Answer and Explanation:
The categorization is shown below:
1 Purchase of a patent = Investing activities as it represents in a negative sign because it is a cash outflow
2 Depreciation expense Operating activities as it is added to the net income
3 Decrease in accounts receivable = Operating activities as it is added to the change in adjustments column
4 Issuance of a note payable = Financing activities as it represents in a a positive sign because it is a cash inflow
5 Increase in inventory = Operating activities as it is deducted from the change in adjustments column
6 Collection of note receivable = Investing activities as it represents in a positive sign because it is a cash inflow
7 Purchase of equipment = Investing activities as it represents in a negative sign because it is a cash outflow
8 Exchange of long term assets = Separate non cash activities note as it does not involved any cash transactions
9 Decrease in accounts payable = Operating activities as it is deducted from the change in adjustments column
10 Payments of dividend = Financing activities as it represents in a negative sign because it is a cash outflow
Wilson Trucking, Inc. reports these account balances at January 1, 2015 (shown in alphabetical order):Accounts Payable $220,000Accounts Receivable $200,000Buildings $480,000Capital Stock $680,000Cash $160,000Equipment $320,000Land $400,000Notes Payable $520,000Retained Earnings $140,000On January 5, Wilson Trucking collected $175,000 of its accounts receivable, paid $150,000 on its accounts payable, and paid $11,000 on its note payable.Refer to the information above. In a trial balance prepared on January 6, 2015, the total of the credit column is:__________.(a) $1,721,000(b) $1,350,000(c) $1,399,000(d) $1,560,000.
Answer:
The correct option is C,$ 1,399,000
Explanation:
The items on the credit column would be the sum of accounts payable, capital stock, notes payable and retained earnings minus the payment of accounts payable and notes payable
Accounts payable is $220,000
capital stock is $680,000
notes payable is $520,000
retained earnings is $140,000
payment in respect of accounts payable is $150,000
payment in respect of notes payable is $11,000
total of credit column=$220,000+$680,000+$520,000+$140,000-$150,000-$11,000=$ 1,399,000.00
Based on the information given the total of the credit column is:(c) $1,399,000.
Credit column
Accounts payable $220,000
Capital stock $680,000
Notes payable $520,000
Retained earnings $140,000
Less payment in respect of accounts payable ($150,000)
Less payment in respect of notes payable ($11,000)
Total credit column $1,399,000
Inconclusion the total of the credit column is:(c) $1,399,000.
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During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 60,000 were in process in the production department at the beginning of April and 240,000 were started and completed in April. April's beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of April, 82,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion.
1. Compute the number of units transferred to finished goods.
2. Compute the number of equivalent units with respect to both materials used and conversion used in the production department for April using the weighted-average method.
Answer:
a) Units transferred = 218,000 units
b)
Equivalent units of material 283,600
Equivalent units of conversion cost 283,600
Explanation:
a) units transferred out
Units transferred = opening inventory + newly introduced - closing inventory
= 60,000 + 240,000 - 82,000= 218,000
Units transferred = 218,000 units
Equivalent units for material
Items units Equivalent units
Transferred out 218,000 100%×218,000 218,000
Closing inventory 82,000 80% × 82,000 65,060
Equivalent units 283,600
Equivalent units for conversion cost
Items units Equivalent units
Transferred out 218,000 100%×218,000 218,000
Closing inventory 82,000 30% × 82,000 24,600
Equivalent units 242,600
Equivalent units of material 283,600
Equivalent units of conversion cost 283,600
QuickBooks Online offers many solutions for categorizing financial transactions. The most common categories used are Chart of Accounts and Products and Services items. Which 4 additional lists are available to categorize financial activity and further optimize QuickBooks Online for your client? (Select all that apply)
Answer:
- class and/or location tracking
- projects
- sub-customers
Explanation:
Remember, QuickBooks online is an Enterprise resource tool that allows businesses manage their inventory and transactions which includes reports that would show details about projects, sub-customers and location.
A protective put strategy is Multiple Choice a long call plus a short put on the same underlying asset. None of the options are correct. a long put plus a long call on the same underlying asset. a long put plus a long position in the underlying asset. a long put plus a short call on the same underlying asset.
Answer:
a long put plus a long position in the underlying asset.
Explanation:
A protective put strategy is a long put plus a long position in the underlying asset. It is a risk management strategy that makes use of options contracts which are employed by investors to protect or guard their investments against a potential loss in stocks or assets such as commodities, indexes and currencies. The protective put strategy helps to mitigate or limit risk associated with buying stocks for the first time.
Generally, the value of the underlying asset is anticipated to decrease by the buyers while the value of the underlying asset is anticipated by sellers of call options to also decrease.
Hence, considering the prospective option holder, when the exercise price is higher, it means that the call options are worth less. Also, when the exercise price is higher, it means that the put options are worth more.
The meaning of saving and investment
Classify each of the following based on the macroeconomic definitions of saving and investment.
1. Antonio purchases a corporate bond issued by a car company.
2. Dmitri takes out a loan and uses it to build a new cabin in Montana.
3. Frances purchases stock in NanoSpeck, a biotech firm.
4. Caroline buys new bulldozers for her construction firm.
Answer:
1. Saving
2. Investment
3. Saving
4. Investment
Explanation:
In macroeconomics, saving is when an individual's income is greater than consumption. Investment is when an individual purchases new capital. Dor example new machinery, car or house.
The purchase of a house and bulldozer is an investment because new capital is acquired.
The purchase of bond and stocks is savings because income isn't spent on consumption.
I hope my answer helps you
a. Present one recent instance (within the last 50 years only) whereby a language, custom or national culture has been lost or diminished by the elimination or blurring of an existing border via globalization. (Please select non-U.S. examples)
b. By extension, how have global oligopolies benefited from the decrease in local competition?
Answer: 1. A. China in Zambia
B. Increased Market Share
Explanation:
A. China in Zambia
For years now many have worried about Chinese influence in China and what they view as subtle attempts by China to engage in modern day Colonialism through methods such as Predatory Loaning practices.
One glaring example is that of Zambia.
There are several ways in which the Chinese have established a foothold in Zambia and are making the country lose its sovereignty and national culture.
1. Loans for Infrastructure
China has invested massively in Zambia which is a big Copper exporter to enable them mine and capture the Copper that Zambia has for use in production in China. In the last 6 years, Zambia has embarked on over 29 projects all funded by about $9 billion in Chinese loans. With such loans being owed, the amount of Chinese influence will be great.
2. Small Scale Entrepreneurs
Chinese people have emigrated to Zambia in droves and some of them have started street level businesses also called Chinese Shops where they sell every day goods ranging from AA batteries to bicycles. These put pressure and compete with local Entrepreneurs who might not be able to get those goods as cheaply as the Chinese can from China. This as well as the importation of Chinese goods and services to feed the Chinese people involved has led to Zambian adopting Chinese foods and goods for themselves as well.
3. Political Interference
With such a huge investment in Zambia, many have noted with concern that China often meddles in the politics of the Southern African nations by picking candidates that will be more friendly to their Economic aspirations. This directly leads to a loss of sovereignty as well as an erosion in the independence of the national culture.
2. Oligopolies refer to firms that exist in an industry that has very few competitors and with the less competitions have a chance to make huge profits. Getting into the industries they operate in can be quite difficult due to high start-up costs as well as already well established competition. These include industries like the Motor and Aeroplane manufacturing industries.
As a result of Globalization, these companies have spread across the globe and as they are already established, they have the unique opportunity to charge less for their goods due to Economies of Scale. This allowed them to discourage local manufacturers in the newer companies they came to which could not hope to compete with such giants. This enabled the Oligopolies to capture the market share that the local competitors gave up thereby increasing the market share of these Oligopolies and by extension their Profitability.
Blossom Company includes one coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2020, Blossom Company purchased 9,500 premiums at 75 cents each and sold 120,000 boxes of soap powder at $3.00 per box; 41,800 coupons were presented for redemption in 2020. It is estimated that 60% of the coupons will eventually be presented for redemption.
Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2020.
Answer:
Dr Purchased premiums 7,125
Cr Cash 7,125
Dr Cash 360,000
Cr Sales 360,000
Dr Premium Expense 3,135
Cr Inventory Premiums 3,135
Dr Premium Expense 2,265
Cr Estimated Liability Premiums 2,265
Explanation:
Blossom Company Journal entry
Dr Purchased premiums 7,125
(9,500×0.75)
Cr Cash 7,125
Dr Cash 360,000
(120,000×3.00per box)
Cr Sales 360,000
Dr Premium Expense 3,135
Cr Inventory Premiums (41,800 ÷ 10 coupons×0.75) 3,135
Dr Premium Expense 2,265
Cr Estimated Liability Premiums 2,265
[(120,000 ×0.60) – 41,800) ÷ 10 × .75]
=72,000-41,800÷10×.75
=30,200÷10×.75
=3020×.75
=2,265
Prepare general journal entries to record the following transactions. No explanations.Jan. 3 Paid office rent, $1,600.4 Bought a truck costing $50,000, making a down payment of $7,000.6 Paid wages, $3,000.7 Received $16,000 cash from customers for services performed.10 Paid $4,100 owed on last month's bills.12 Billed credit customers, $5,300.17 Received $1,800 from credit customers.19 Taylor Gordon, the owner, withdrew $1,700.23 Paid $700 on amount owed for truck.29 Received bill for utilities expense, $255.AccountsCashAccounts ReceivableTruckAccounts PayableTaylor Gordon, DrawingService FeesRent ExpenseWages ExpenseUtilities Expense
Answer:
Jan. 3 Paid office rent, $1,600.
Dr Rent expense 1,600
Cr Cash 1,600
4 Bought a truck costing $50,000, making a down payment of $7,000.
Dr Truck 50,000
Cr Cash 7,000
Cr Accounts payable 43,000
6 Paid wages, $3,000.
Dr Wages expense 3,000
Cr Cash 3,000
7 Received $16,000 cash from customers for services performed.
Dr Cash 16,000
Cr Service fees 16,000
10 Paid $4,100 owed on last month's bills.
Dr Accounts payable 4,100
Cr Cash 4,100
12 Billed credit customers, $5,300.
Dr Accounts receivable 5,300
Cr Service fees 5,300
17 Received $1,800 from credit customers.
Dr Cash 1,800
Cr Accounts receivable 1,800
19 Taylor Gordon, the owner, withdrew $1,700.
Dr Taylor Gordon, Drawing 1,700
Cr Cash 1,700
23 Paid $700 on amount owed for truck.
Dr Accounts payable 700
Cr Cash 700
29 Received bill for utilities expense, $255.
Dr Utilities expense 255
Cr Accounts payable 255
Joanie recognizes that the board and CEO are particularly worried that individuals will post negative information about the company on company-sponsored social media sites. Joanie create what specific set of policies in response for how to contend the employees?
Answer:
Should create a non disclosure agreement policy
Explanation:
This is a legally binding agreement that mandates parties to a contract in this case between an employer with an employee, in which the employee agrees not to disclose publicly or to any one negative information about the company that is deemed confidential (secret or private), and that may affect the company negatively.
Thus, to reduce the worries of the board and CEO, Joanie should create a non disclosure agreement signed by employees.
Hilary and Maria are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Hilary takes 5 hours to brew a gallon of root beer and 3 hours to make a pizza. Maria takes 8 hours to brew a gallon of root beer and 4 hours to make a pizza.
Megan's opportunity cost of making a pizza is:______
a. 2/3 gallon
b. 5/7 gallon
c. 1/2 gallons
d. 2/5 gallons
of root beer, and Susan's opportunity cost of making a pizza is:_______
a. 2/3 gallon
b. 5/7 gallon
c. 1/2 gallons
d. 2/5 gallons
Answer and Explanation:
Opportunity cost is the net benefit arise from the loss suffered from the selective option.
In the given situation, the Megan's opportunity cost of making a pizza is
= 3 hours to make a pizza ÷ 5 hours to brew a gallon of root beer
= 3 ÷ 5 gallons
This is the answer but the same is not provided in the given options
And, the Susan opportunity cost of making a pizza is
= 4 hours to make the pizza ÷ 8 hours to brew a gallon of root beer
= 4 ÷ 8 gallons
= 1 ÷ 2 gallons
Ask Socrates Inc. is a computer software company that employs highly intelligent, but somewhat unusual people. Every Friday, free lollipops, toys, or other treats are given out to encourage employees to remember how creative they were when they were children. All the new members of the organization are told about the founders who were three young people who "got lucky" and sold a video game that they invented. The employees are allowed to dress informally and can set their own working hours.Ask Socrates Inc. employees are allowed to dress informally. This is an example of a ________ through which organizational culture is transmitted.a. material symbolb. fundamental mechanismc. rituald. primary proceduree. symbolic act
Answer: a. Material symbol
Explanation:
When talking about the Material symbols of Organizational Culture, those unspoken norms and behaviours that explain to you the type of Organization you are in are what are being referred to.
Materials symbols explain the type of culture in an organization by conveying information on the Equality level of the employees as well as the type of performance and behaviour expected of them.
They can be expressed through dress codes, company cars and even offices given to a certain cadre of Employees.
Seeing as the above scenario deals with the dress code, it most likely falls under an Organization's material symbols.
Mantle Corporation is considering two equally risky investments: ∙ A $5,000 investment in preferred stock that yields 7.75%. ∙ A $5,000 investment in a corporate bond that yields 10%. What is the breakeven corporate tax rate that makes the company indifferent between the two investments? Assume a 70% dividend exclusion for tax on dividends. (Do not round your intermediate answer and round your final answer to two decimal places.)
Answer:
At a corporate tax rate of 16.29%, both investment shall have same income, so it will be the indifference point.
Explanation:
Let take X to be the corporate tax rate
Note that 70% dividend exclusion for tax on dividend mean 30% is actually applied to dividend
Preferred dividend = 5000 * 7.75% = 387.5
Taxable dividend = 387.5 * 30% = 116.25
Interest on bond = 5000*10% = 500
For the purpose of Indifference of the two investment brought about by the two break-even corporate tax
387.5 - 116.25 * X = 500 - 500*X
500 X - 116.25 X = 500 - 387.5
383.75 X = 175 -112.5
383.75 X = 62.5
X= 62.5/383.75
X= 0.1629
X=16.29%
At a corporate tax rate of 16.29%, both investment shall have same income, so it will be the indifference point.
Steve Drake sells a rental house on January 1, 2019, and receives $100,000 cash and a note for $50,000 at 7 percent interest. The purchaser also assumes the mortgage on the property of $25,000. Steve's original cost for the house was $170,000 on January 1, 2011 and accumulated depreciation was $27,000 on the date of sale. He collects only the $100,000 down payment in the year of sale.
If Steve elects to recognize the total gain on the property in the year of sale, calculate the taxable gain.
Answer:
$32,000
Explanation:
The computation of the taxable gain is shown below;
Taxable gain on sale = Amount Realized - Adjusted Basis
where,
Amount Realized = Cash Received + Note received + Mortgage assumed by Purchaser
= $100,000 +$50,000 + $25,000
= $175,000
And, the adjusted basis is
= Original cost - Accumulated Depreciation
= $170,000 - $27,000
= $143,000
So, the taxable gain on sale is
= $175,000 - $143,000
= $32,000
The gain which is arise from purchasing the asset to the sale of the asset i.e difference in these amounts attract the taxable gain
On October 31, 2021, Damon Company’s general ledger shows a checking account balance of $8,415. The company’s cash receipts for the month total $74,440, of which $71,325 has been deposited in the bank. In addition, the company has written checks for $72,485, of which $71,090 has been processed by the bank. The bank statement reveals an ending balance of $12,165 and includes the following items not yet recorded by Damon: bank service fees of $210, note receivable collected by the bank of $5,600, and interest earned on the account balance plus from the note of $620. After closer inspection, Damon realizes that the bank incorrectly charged the company’s account $540 for an automatic withdrawal that should have been charged to another customer’s account. The bank agrees to the error. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2021. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
The correct ending balance of cash on October 31, 2021 is $14,425.
Explanation:
A bank reconciliation refers to the process whereby the bank account balance in the books of account of a company or an entity is reconciled to the balance on the most recent bank statement obtained from bank of the entity.
Therefore, to prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2021, all the amount which have already being included as either as additions or subtractions in the bank statement but has not been recorded by the entity will be added or subtracted from the bank balance as appropriate. Based on the information in the question, this can be done as follows:
Damon Company
Bank Reconciliation on October 31, 2021.
Details $
Balance as per checking account 8,415
Note receivable collected by the bank 5,600
Interest earned 620
Bank service fees of (210)
Balance per reconciliation by the company 14,425
Therefore, the correct ending balance of cash on October 31, 2021 is $14,425.
Krizun Industries makes heavy construction equipment. The standard for a particular crane calls for 14 direct labor-hours at $16 per direct labor-hour. During a recent period 1,000 cranes were made. The labor efficiency variance was $4,400 Unfavorable. How many actual direct labor-hours were worked
Answer:
14,275= actual hours
Explanation:
Giving the following information:
The standard for a particular crane calls for 14 direct labor-hours at $16 per direct labor-hour.
During a recent period, 1,000 cranes were made.
The labor efficiency variance was $4,400 Unfavorable.
To determine the actual hours worked, we need to use the direct labor efficiency variance formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
-4,400= (14*1,000 - actual hours)*16
-4,400= 224,000 - 16actual hours
228,400/16= actual hours
14,275= actual hours
Why did the Federal Reserve allow the Bank of United States to fail in 1930? A. The Fed was prohibited from aiding the bank because its assets were concentrated in real estate. B. The Fed did not want to be viewed as rewarding the poor business decisions of the bank's managers. C. The Fed was unable to obtain the approval of the U.S. Treasury for its purchase of the bank's toxic assets. D. The bank's managers refused to abide by Fed rules governing the use of Fed loans. Why did the Federal Reserve allow Lehman Brothers to fail in 2008? A. The Fed did not have the legal authority to assist an investment bank. B. By the time the Fed understood the extent of the trouble at Lehman Brothers, it was much too late to act. C. The Fed believed that Lehman Brothers had found a suitable buyer and would recover. D. The Fed feared that assisting Lehman Brothers would increase the extent of moral hazard in the financial system. Contrast the Fed's actions following the failure of the Bank of United States with its actions following the failure of Lehman Brothers. A. The Fed aggressively intervened following the 1930 failure but remained largely inactive for several years following the 2008 failure. B. The Fed intervened aggressively following the 2008 failure but remained largely inactive for several years following the 1930 failure. C. The Fed's actions following both failures were the same; it aggressively intervened with assistance
Answer: 1. B. The Fed did not want to be viewed as rewarding the poor business decisions of the bank's managers.
2. D. The Fed feared that assisting Lehman Brothers would increase the extent of moral hazard in the financial system.
3. B. The Fed intervened aggressively following the 2008 failure but remained largely inactive for several years following the 1930 failure.
Explanation:
1. In 1930 when the Great Depression was at it's early stages, the Central Bank could have done some things that would have reduced it's impact on the world but they remained passive and did little. One of the reasons was that there was a lack of cohesion between the Fed Districts and some of the directors subscribed to the "liquidationist" which meant that companies that engaged in adverse financial decisions be allowed to fail to as to prune the financial system and make it better. This contributed to the failure to help the Bank of the United States.
2. The Fed did not want to be seen as aiding Moral Hazard when they refused to bail out the Lehman Brothers in 2008. The Lehman Brothers had engaged in very risky transactions that brought it to ruin in 2008 and the Central Bank did not want to encourage the precedent of saving Banks that did so. Moral Hazard is when a risky action is engaged in by a company or person because they will not pay for the risk if things go awry. For example, a person with car insurance might drive more recklessly because they know that if the car crashes, the insurance will cover it. This is what the Fed did not want to encourage. A situation where Banks would engage in risky actions knowing that the Fed would back them up.
3. In the 1930s during the Great Depression, the Fed did not do enough to stem the depression because there was not coordination amongst the districts. They could not agree on a way forward and so did little. They even admitted their failure when in 2002, a member of the Board of Governors called Ben Bernanke said they could have done more.
In 2008 though, the Fed stepped in to help the economy get back on track. They reduced Interest rates and poured money into the economy through various ventures that helped the American public amongst others. Their actions ensured that the 2008 financial crises did not last as long as the Great Depression.
Southwest Components recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has estimated the following cost drivers and rates:
Activity Centers Cost Drivers Rate per
Cost Driver Unit
Materials handling Pounds of material handled $ 16 per pound
Quality inspections Number of inspections $ 240 per inspection
Machine setups Number of machine setups $ 2,700 per setup
Running machines Number of machine-hours $ 21.00 per hour
Direct materials costs were $306,000 and direct labor costs were $161,000 during July, when the Fabrication Department handled 3,900 pounds of materials, made 760 inspections, had 50 setups, and ran the machines for 13,000 hours.
Required:
Use T-accounts to show the flow of materials, labor, and overhead costs from the four overhead activity centers through Work-in-Process Inventory and out to Finished Goods Inventory.
Answer:
Direct Materials T - Account
Debit :
Cash $306,000
Totals $306,000
Credit:
Work In Process $306,000
Totals $306,000
Direct Labor T - Account
Debit :
Cash $161,000
Totals $161,000
Credit:
Work In Process $161,000
Totals $161,000
Overhead T - Account
Debit :
Cash $652,800
Totals $652,800
Credit:
Work In Process :
Materials handling ( $ 16 × 3,900 pounds) $62,400
Quality inspections ( $ 240 × 760 inspections) $182,400
Machine setups ( $ 2,700 × 50 setups) $135,000
Running machines ( $ 21.00 × 13,000 hours) $273,000
Totals $652,800
Work In Process T - Account
Debit :
Direct Materials $306,000
Direct Labor $161,000
Overheads $652,800
Totals $1,119,800
Credit:
Finished Goods $1,119,800
Totals $1,119,800
Explanation:
Direct Materials T - Account
Accumulates Material costs used in manufacturing process
Direct Labor T - Account
Accumulated labor costs used in manufacturing process
Overhead T - Account
Accumulated Overhead costs incurred in manufacture
Work In Process T - Account
Accumulates total costs used in manufacture and transfers the cost to Finished Goods inventory
Nicola is the most qualified candidate for the job of marketing manager at Lean Inc. However, the recruiters do not hire her because they feel that a woman would not be able to handle the responsibilities associated with such a senior position. This is an example of the _____ effect
Answer:
Glass ceiling effect
Explanation:
Nicola is experiencing the glass ceiling effect,which is a barrier or resistance to the efforts of women and minorities to reach the top ranks of management in major corporations. This term refers to gender gap in managerial or executive positions in an organization that is faced by women and minorities even though they are well qualified for such positions. women in such organizations find themselves unable to advance beyond a certain level of management.
The city of Springvale imposes a net income tax on businesses operating within its jurisdiction. The tax equals 1% of income up to $100,000 and 1.5% of income in excess of $100,000. The Springvale Bar and Grill generated $782,000 net income this year. Its city income tax is_______.
Answer:
$11,230
Explanation:
The city of Springvale imposed a net income tax on all businesses
Each business will make a payment of 1% for any amount up to $100,000 and 1.5% for any amount above $100,000
The net income generated by Springvale Bar and Grill is
= $782,000- $100,000
= $682,000
Therefore, it's city income tax is calculated as follows
(1/100+100,000) + ( 1.5/100+682,000)
( 0.01+100,000) + ( 0.015+682,000)
= 1000 + 10,230
= $11,230
Hence, Springvale Bar and Grill will pay a net income tax of $11,230
Doctor Company prepared the tabulation below at December 31, 2017. Net Income $307,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense $32,000 Decrease in accounts receivable $50,000 Increase in inventory $12,000 Decrease in accounts payable $8,600 Increase in income taxes payable $1,500 Loss on sale of land $5,000 Net cash provided (used) by operating activities Show how each item should be reported in the statement of cash flows.
Answer:
$374,900
Explanation:
Doctor Company Statement of Cash Flow
Net Income $307,000
Reconciliation of net income to net cash:
Depreciation expense 32,000
.
Decrease in accounts receivable 50,000
Increase in inventory (12,000)
Decrease in accounts payable (8,600)
Increase in income taxes payable 1,500
Loss on sale of land 5,000
Net cash provided (used)by operating activities $374,900
A sole proprietorship was started on January 1, 2018, when it received $55,500 cash from Marlin Jones, the owner. During 2018, the company earned $43,600 in cash revenues and paid $19,080 in cash expenses. Jones withdrew $6,100 cash from the business during 2018.
Required:
Prepare the income statement. capital statement (statement of changes in equity). balance sheet. and statement of cash flows for Jones's 2018 fiscal year.
Answer:
a. Net income = $24,520
b. Ending capital = $73,920
c. Total assets = $73,920; and Total Equities and Liabilities = $73,920.
d. Ending cash balance = $73,920.
Explanation:
a. Income statement
Details Amount ($)
Revenue 43,600
Expenses 19,080
Net income 24,520
b. Capital statement (statement of changes in equity)
Details Amount ($)
Beginning capital 55,500
Net income 24,520
Withdrawal (6,100)
Ending capital 73,920
c. Balance sheet.
Details Amount ($)
Assets:
Cash 73,920
Total assets 73,920
Equity and Liabilities:
Capital 73,920
Total 73,920
d. Statement of cash flows
Details Amount ($) Amount ($)
Cash from operating activities:
Cash from revenue 43,600
Cash paid for expenses (19,080)
Cash generated from operating activities 24,520
Cash flow from financing activities:
Capital introduced 55,500
Cash withdrawal (6,100)
Cash generated from financing activities 49,400
Net cash generated 73,920
Beginning cash balance 0
Ending cash balance 73,920
Alanco, Inc. manufactures a variety of products and is currently manufacturing all of their own component parts. An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following information has been gathered relating to the cost of producing the component internally:
Direct Materials $4
Direct Labor $6
Variable Manufacturing Overhead $2
Fix Manufacturing Overhead, Traceable* $5
Fix Manufacturing Overhead, Common but Allocated $8
Total Cost $25.00
Supplier Price = $21
Units Per Year = 12,000
Fix manufacturing overhead, traceable is composed of two items:
Depreciation of Equipment: 30%
Supervisor Salary: 70%
Assuming the company has no alternative use for the facilities now being used to produce the component, complete the following analysis to determine if the outside supplier's offer should be accepted.
Based on this analysis, write an if statement to determine if Alanco should make or buy the component.
Alanco should ............. the component.
3 Per Unit Differential Cost 12,000 units
Make Buy Make Buy
Cost of purchasing
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
total costs,
Based on this analysis, wrie an if statement to determine if Alanco should make or buy the component. Alanco should the _____________component
Answer:
If the company decides to purchase the component from the outside supplier, its operating income will decrease by $66,000 per year. Therefore, Alanco should keep producing the component.
Explanation:
cost of producing the component (per unit):
direct materials $4
direct labor $6
variable manufacturing overhead $2
fixed manufacturing overhead, traceable $5 (non avoidable $1.50)
fixed manufacturing overhead, not traceable $8
total cost per unit = $25
units per year = 12,000
price offered by supplier $21 per unit
alternative A alternative B differential
keep producing buy amount
purchase cost $0 $252,000 ($252,000)
avoidable man.
costs $186,000 $0 $186,000
total $186,000 $252,000 ($66,000)
if the company decides to purchase the component from the outside supplier, its operating income will decrease by $66,000 per year.
Based on the make or buy analysis, Alanco Inc. should continue to manufacture the 12,000 components annually.
It will save $66,000 if it makes the components internally but loses the same amount if it buys it from the outside supplier.
Data and Calculations:
Relevant / avoidable costs:
Direct Materials $4
Direct Labor $6
Manufacturing Overhead $2
Supervisor's salary $3.5 ($70% x $5)
Variable manufacturing cost per unit = $15.50
Supplier Price = $21
Units Per Year = 12,000
Total relevant cost of production = $186,000 ($15.50 x 12,000)
Total relevant cost of outside purchase = $252,000 ($21 x 12,000)
Difference in cost = $66,000 ($252,000 - $186,000)
Thus, Alanco should continue to manufacture 12,000 units of the components annually instead of buying from the supplier.
Learn more: https://brainly.com/question/23412337
The industrial engineering approach is most likely to emphasize:
A. defining work arrangements and reporting requirements.
B. exploring new and diverse ways of doing the same job.
C. designing jobs in such a way that they require minimal specialization.
D. streamlining jobs to make them simpler and more efficient.
E. creating complex and challenging jobs that require innovative employees.
Answer:
Option D is correct
D)streamlining jobs to make them simpler and more efficient
Explanation:
Industrial engineering is an aspect of engineering profession that deals with the efficient optimization of complex processes as well as systems. It involves the development of integrated system of materials,equipment.
Industrial engineering cross accross fields such as has mechanical engineering, philosophy, economics, as well as sociology.
Industrial Engineering uses different approach to achieve it's goals, some of these approach are:
- It gather and analyse fact about the operation that is about to be carried out
-It examine all available fact critically by devicing different techniques such as charts, diagram.
- Getting alternative solution by brainstorming
-selection of best the best method.
All these steps helps industrial Engineers in streamlining jobs to make them simpler and more efficient.
Prices of zero-coupon bonds reveal the following pattern of forward rates: Year Forward Rate 1 5 % 2 6 3 7 In addition to the zero-coupon bond, investors also may purchase a 3-year bond making annual payments of $50 with par value $1,000. a. What is the price of the coupon bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
The price of the coupon bond is $ 1,232.30
Explanation:
The forward rates are:
year 1 5%
year 2 6%
year 3 7%
In determining the price of the bond,we discount the coupon and the face value of the bond as below:
price=coupon/(1+f1)+coupon/(1+f1)*(1+f2)+(coupon+face value)/(1+f1)*(1+f2)*(1+f3)
price=50/(1+5%)+50/(1+5%)*(1+6%)+1050/(1+5%)*(1+6%)*(1+7%)=$1,232.30
The price of the bond using the forward rates provided is $ 1,232.30
This implies that an increasing forward rates led to the bond been issued at a premium of $232.30 when compared to its face value of $1000 i.e $ 1,232.30-$1,000.00
Consider an imaginary economy that has been growing at a rate of 6% per year. Government economists have proposed a number of policies to increase the growth rate but first need to convince the president that the policies will pay off. To do so, they want to present a comparison of the number of years it will take for the economy to double, depending on the growth rate.
Using the rule of 70, determine the number of years it will take the economy to double at each growth rate.Growth rate(Percent Years Required to Double(nearest whole number of years)4 5 6
Answer:
11.67 years
Explanation:
The rule of 70 requires that in determining when the economy growth rate will double its current growth rate, the appropriate thing to do is divide 70 by the current growth rate of 6% per year.
The economy's growth rate of 6% has its percentage ignored when the calculation is carried out.
=70/6= 11.67
The current economy's growth rate would double in 11.67 years' time
