Answers
Answer:
3. The special concept reminded by the phrase "Exchanging Butter Cake for Dates" is:
Trade by barter.
4. The need fulfilled by this business is people's demand for Cake.
The want fulfilled by this business is the organization's supply of dates for its production of cake.
Explanation:
A trade by barter involves the exchange of one good or service by one trading party for another good or service from the coincidental trading party without the use of money or monetary mediums. Trade by barter enables people without money to fulfill their needs. The major problem with trade by barter is that there must be coincidence of wants by the two trading partners. This is not always feasible.
Related Questions
On May 1, Carlisle Co. sold inventory to a customer for $1,000 2/10, n/30. Carlisle Co. uses the gross method for reporting sales discounts. The customer paid the account in full on May 20. What will be the Net Sales reported on the Income Statement from these tranactions
Answers
Answer:
The Net Sales that will reported on the Income Statement from these transactions is $1,000.
Explanation:
The term "2/10, n/30" implies that the customer will enjoy a 2% discount if it pays within 10 days but must pay the total amount within 30 days.
However, customer paid on May 20 which is outside the 2% discount period. This implies the customer did not enjoy the 2% discount. That is, the customer paid the full amount of $1,000. Therefore, the net sales is $1,000 from these transactions.
Therefore, the Net Sales that will reported on the Income Statement from these transactions is $1,000.
Rosina purchased one 15-year bond at par value when it was initially issued. This bond has a coupon rate of 7 percent and matures 13 years from now. If the current market rate for this type and quality of bond is 7.5 percent, then Rosina should expect: the bond issuer to increase the amount of all future interest payments. the yield to maturity to remain constant due to the fixed coupon rate. to realize a capital loss if she sold the bond at today's market price. today's market price to exceed the face value of the bond. the current yield today to be less than 7 percent.
Answers
Answer:
to realize a capital loss if she sold the bond at today's market price.
Explanation:
Given that
NPER is 13
RATE is 7.5%
PMT is 7% of $1,000
Future value be $1,000
We need to find out the present value
So,
The current price of the bond is:
=PV(7.5%,13,7%*1000,1000)
=$959.37
Now if she wants to sell the bond now, so the value should be less than the face value due to which there should be the capital loss
The following transactions took place in Boeing Business.
01.03.2021 - Purchase of goods costing Rs. 150000 from Airbus
company on credit.
05.03.2021 - Return of goods costing Rs. 30000 to Airbus
20.03.2021 - Sale of goods costing Rs. 100000 for Rs. 160000 on
credit
29.03.2021 - Payment of sales commission of Rs. 10000
02.04.2021 – Settlement of the full amount due to Airbus
What is the accounting equation which shows the net impact of the
above transactions in Boeing business as at 31.03.2021?
Assets
Liabilities
+
Equity
Answers
Answer:
1) Dr: Goods/Inventory (Asset increase) 150000
Cr: Payable (Liability increase) 150000
2) Dr: Payable (Liability decrease) 30000
Cr: Goods (Asset decrease) 30000
3) Dr: Payable (Liability decrease) 30000
Cr: Goods (Asset decrease) 30000
4) Dr: Receivables (Asset increase) 160000
Cr: Goods (Asset Decrease) 100000
Cr: Profit and loss (Equity increase) 60000
5) Dr: Commission Expense (Equity decrease) 10000
Cr: Cash (Asset Decrease) 10000
6) Dr: Payable (Liability decrease) 120000
Cr: Cash (Asset Decrease) 120000
On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $101,600. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below:
Year-end Ending inventory at year-end costs Cost Index
2021 $131,040 1.05
2022 150,040 1.10
2023 160,320 1.20
In determining the inventory balance for Badger to report in its 12/31/2022 balance sheet: _____________-
a. An additional layer of $12,760 is added to the 12/31/2021 balance.
b. An additional layer of $24,760 is added to the 12/31/2021 balance.
c. An additional layer of $23,760 is added to the 12/31/2021 balance.
d. None of these answer choices are correct.
Answers
Answer:
a. An additional layer of $12,760 is added to the 12/31/2021 balance.
Explanation:
The computation of the inventory balance is given below:
2021 Base year cost is
= $131,040 ÷ 1.05
= $124,800
Additional layer is
= $124,800 - $101,600
= $23,200
2022 Base year cost is
= $150,040 ÷ 1.10
= $136,400
Additional layer is
= ($136,400 - $124,800 ) × 1.10
= $11,600 1.10
= $12,760
Therefore the first option is correct
Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Hixson produces and sells 25,000 units, its unit costs are as follows:
Amount Per Unit
Direct materials $8.00
Direct labor $5.00
Variable manufacturing overhead $1.00
Fixed manufacturing overhead $6.00
Fixed selling expense $3.50
Fixed administrative expense $2.50
Sales commissions $4.00
Variable administrative expense $1.0
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? What is the total amount of period costs incurred to sell 25,000 units?
2. If 24,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced?
3. If 26,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced?
4. If 27,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production?
5. What total incremental manufacturing cost will Hixson incur if it increases production from 25,000 to 25,001 units?
6. What is Hixson’s contribution margin per unit? What is its contribution margin ratio?
7. What is Hixson’s break-even point in unit sales? What is its break-even point in dollar sales?
8. How much will Hixson’s net operating income increase if it can grow production and sales from 25,000 units to 26,500 units?
9. What is Hixson’s margin of safety at a sales volume of 25,000 units?
10. What is Hixson degree of operating leverage at a sales volume of 25,000 units?
Answers
Answer:
Hixson Company
1. Total amount of product costs incurred to make 25,000 units is:
= $500,000
Total amount of period costs incurred to sell 25,000 units is:
= $187,500
2. Variable manufacturing cost per unit of 24,000 units is:
= $14.00
The fixed manufacturing cost per unit is:
= $6.25
3. The variable manufacturing cost per unit is:
= $14.00
The fixed manufacturing cost per unit produced is:
= $5.77
4. If 27,000 are produced, the total amounts of direct and indirect manufacturing costs incurred to support this level of production are:
Direct manufacturing costs = $378,000
Indirect manufacturing costs = $150,000
5. The total incremental manufacturing cost that Hixson will incur if it increases production from 25,000 to 25,001 units is:
= $14.
6. Contribution margin per unit is:
= $15
Contribution margin ratio is:
= 44%
7. Break-even point in unit sales is:
= 20,000 units
Break-even point in dollars sales = $300,000/44.1176%
= $680,000
8. The net operating income will increase to $97,500 ($15 * 6,500)if it can grow production and sales from 25,000 to 26,500.
9. Hixson's margin of safety at sales volume of 25,000 units is:
= $170,000
10. Degree of operating leverage at a sales volume of 25,000 units is:
= 3.85
Explanation:
a) Data and Calculations:
Selling price per unit = $34
Production and sales unit = 25,000 units
Unit costs at 25,000 units
Per Unit
Direct materials $8.00
Direct labor $5.00
Variable manufacturing overhead $1.00
Fixed manufacturing overhead $6.00
Fixed selling expense $3.50
Fixed administrative expense $2.50
Sales commissions $4.00
Variable administrative expense $1.00
Total cost per unit $31.00
Product costs (financial accounting):
Per Unit
Direct materials $8.00
Direct labor $5.00
Variable manufacturing overhead $1.00
Fixed manufacturing overhead $6.00
Total product costs per unit $20.00
Period costs:
Fixed selling expense $3.50
Sales commissions $4.00
Total selling period costs per unit $7.50
1. Total amount of product costs incurred to make 25,000 units is:
= $500,000 ($20 * 25,000)
Total amount of period costs incurred to sell 25,000 units is:
= $187,500 ($7.50 * 25,000)
2. Variable manufacturing cost per unit of 24,000 units is:
= $14.00
The fixed manufacturing cost per unit is:
= $6.25 ($6 * 25,000/24,000)
3. The variable manufacturing cost per unit is:
= $14.00
The fixed manufacturing cost per unit produced is:
= $5.77 ($6 * 25,000/26,000)
4. If 27,000 are produced, the total amounts of direct and indirect manufacturing costs incurred to support this level of production are:
Direct manufacturing costs = $378,000 ($14 * 27,000)
Indirect manufacturing costs = $150,000 ($6 * 25,000)
5. The total incremental manufacturing cost that Hixson will incur if it increases production from 25,000 to 25,001 units is $14.
Contribution margin per unit:
Selling price = $34
Variable costs = 19
Contribution = $15
6. Contribution margin per unit is $15 ($34 - $19).
Contribution margin ratio is 44% ($15/$34 * 100)
7. Break-even point in unit sales = FC/CM per unit
= $300,000/$15
= 20,000 units
Break-even point in dollars sales = $300,000/44.1176%
= $680,000 (20,000 * $34)
8. The net operating income will increase to $97,500 ($15 * 6,500)if it can grow production and sales from 25,000 to 26,500.
9. Hixson's margin of safety at sales volume of 25,000 units is:
= $170,000 ($850,000 - $680,000)
10. Degree of operating leverage at a sales volume of 25,000 units is:
= Contribution margin/net operating income
= $375,000/$97,500
= 3.85
Reynold's Grocery has fixed costs of $327,000, the unit selling price is $26, and the unit variable costs are $20. What are the break-even sales in units (rounded to a whole number) if the variable costs are decreased by $5? a.16,350 units b.29,727 units c.54,500 units d.21,800 units
Answers
Answer:
b.29,727 units
Explanation:
Break even Point = Fixed Costs ÷ Contribution per unit
therefore
Break even Point = $327,000 ÷ $11
= 29,727 units
The following data come from the financial records of Campbell Corporation for Year 3: Sales $ 840,000 Interest expense 5,000 Income tax expense 25,500 Net income 25,500 Required How many times was interest earned in Year 3
Answers
Answer:
the times was interest earned in Year 3 is 11.2 times
Explanation:
The computation of the times interest earned ratio is given below:
The times interest earned ratio is
= (Net income+ Income tax expense+ Interest expense) ÷ Interest expense
= ($25,500 + $25,500 + $5,000) ÷ $5,000
= 11.2 times
Hence, the times was interest earned in Year 3 is 11.2 times
The same is to be relevant
Following are selected accounts for a manufacturing company. For each account, indicate whether it will appear on a budgeted income statement (BIS) or a budgeted balance sheet (BBS). If an item will not appear on either budgeted financial statement, write it NA.
a. Sales
b. Administrative salaries paid
c. Accumulated depreciation
d. Depreciation expense
e. Interest paid on bank loan
f. Cash dividends paid
g. Bank loan owed
h. Cost of goods sold
Answers
Answer: See explanation
Explanation:
The budgeted income statement is a financial report that lists the estimated revenue, expenses as well as the profit for a given period.
The budgeted balance sheet simply shows the predicted amounts for the assets, liabilities and the equity of a company at the end of the budgeting period.
a. Sales = Budgeted income statement
b. Administrative salaries paid = Budgeted income statement
c. Accumulated depreciation =
Budgeted balance sheet
d. Depreciation expense = Budgeted income statement
e. Interest paid on bank loan = Budgeted income statement
f. Cash dividends paid = N/A
g. Bank loan owed = Budgeted balance sheet
h. Cost of goods sold = Budgeted income statement
Below is budgeted production and sales information for Flushing Company for the month of December. Product XXX Product ZZZ Estimated beginning inventory 29,000 units 18,500 units Desired ending inventory 34,800 units 15,100 units Region I, anticipated sales 344,000 units 273,000 units Region II, anticipated sales 192,000 units 143,000 units The unit selling price for product XXX is $5 and for product ZZZ is $16. Budgeted production for product ZZZ during the month is a.416,000 units b.412,600 units c.599,800 units d.431,100 units
Answers
Answer:
The correct option is b.412,600 units.
Explanation:
Given:
Product XXX Product ZZZ
Estimated beginning inventory 29,000 units 18,500 units
Desired ending inventory 34,800 units 15,100 units
Region I, anticipated sales 344,000 units 273,000 units
Region II, anticipated sales 192,000 units 143,000 units
Therefore, we have:
Estimated beginning inventory for product ZZZ = 18,500 Units
Desired ending inventory for product ZZZ = 15,100 Units
Total anticipated sale at regions I and II= Region I, anticipated sales + Region II, anticipated sales = 273,000 + 143,000 = 416,000 units
Budgeted production for product ZZZ during the month = Total anticipated sale at regions I and II + Desired ending inventory for product ZZZ - Estimated beginning inventory for product ZZZ = 416,000 + 15,100 - 18,500 = 412,600 units
Therefore, the correct option is b.412,600 units.
TB MC Qu. 08-156 Fortune Drilling Company acquires... Fortune Drilling Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. What journal entry would be needed to record the expense for the first year assuming 418,000 tons were mined
Answers
Answer:
Fortune Drilling Company
Journal Entry:
Debit Depletion Expense $1,350,000
Credit Accumulated Depletion $1,350,000
To record the first year's expense.
Explanation:
a) Data and Calculations:
Acquisition cost of mineral deposit = $5,900,000
Additional costs incurred = $600,000
Total costs of mine = $6,500,000
Estimated mineral deposit = 2,000,000 tons
Estimated years of extraction = 5 years
First year's extraction quantity = 418,000
Expenses for the first year = 418,000/2,000,000 * $6,500,000
= $1,350,000
Analysis:
Depletion Expense $1,350,000 Accumulated Depletion $1,350,000
Granfield Company is considering... Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,300. The division sales for the year were $965,700 and the variable costs were $478,000. The fixed costs of the division were $530,000. If the backpack division is dropped, 40% of the fixed costs allocated to that division could be eliminated. The impact on Granfield's operating income for eliminating this business segment would be:____.
a. $269,200 increase.
b. $476,000 decrease.
c. $206,800 increase.
d. $269,200 decrease.
e. $476,000 increase.
Answers
Answer:
$275,700 Decrease
Explanation:
Calculation to determine what The impact on Granfield's operating income for eliminating this business segment would be:
Using this formula
Impact on Operating income=Saving in Relevant fixed cost -Loss of Contribution Margin of backpack division
Let plug in the morning
Impact on Operating income=($530,000*40%)-($965,700-$478,000)
Impact on Operating income=$212,000-$487,700
Impact on Operating income=$275,700
Decrease in net Operating income
Therefore The impact on Granfield's operating income for eliminating this business segment would be:$275,700 Decrease
Your company is considering a project that will cost $100. The project will generate after-tax cash flows of $37.50 per year for five years. The WACC is 10 percent and the firm's D/A ratio is 0.70. The flotation cost for equity is 6 percent, the flotation cost for debt is 3 percent, and your firm does not plan on issuing any preferred stock within its capital structure. If your firm follows the practice of incorporating flotation costs into the project's initial investment, what is the weighted average flotation cost for the firm
Answers
Answer:
3.9%
Explanation:
Calculation to determine the weighted-average flotation cost for the firm
Using this formula
Weighted-average flotation cost =D/A ratio(Flotation cost for debt)+ Flotation cost for debt(Flotation cost for equity)
Let plug in the formula
Weighted-average flotation cost=.7(3%) + .3(6%)
Weighted-average flotation cost=.0021+.0018
Weighted-average flotation cost=.0039*100
Weighted-average flotation cost= 3.9%
Therefore the weighted-average flotation cost for the firm is 3.9%
Zeke's Soda is a small company. They have never grown much, but they have never quite gone out of business over their 75 year history.They have a secret recipe for a raspberry soda which is their bestselling drink. It has never been patented, but it has been known only to the family members who run the company ever since Old Zeke came up with it 75 years ago. None of the other employees have access to it.
Soda Giant buys a bottle of Zeke's Soda and runs it through sophisticated equipment that is able to analyze it and determine all of the ingredients. Soda Giant takes what it learns and starts to make and sell a soda identical to Zeke's.Can Zeke's Soda win a trade secret misappropriation action?
a) No, because a secret recipe is not the kind of thing that can be a trade secret.
b) No, because the trade secret protection has expired.
c) No, because Soda Giant did not misappropriate the information.
d) Yes.
Answers
Answer:
it is definitely a
hoakqaaa
Tamarisk, Inc. issued 20800 shares of $1 par common stock for $40 per share during 2022. The company paid dividends of $50000 and issued long-term notes payable of $458000 during the year. What amount of cash flows from financing activities will be reported on the statement of cash flows
Answers
Answer:
$1,240,000
Explanation:
Calculation to determine the amount of cash flows from financing activities will be reported on the statement of cash flows
Cash flow from Financing activities
Issue of common stock $832,000
(20800 shares × $40)
Add Issued of long term notes payable $458,000
Less: Dividend paid -$50,000
Net Cash flow from Financing activities $1,240,000
Therefore the amount of cash flows from financing activities will be reported on the statement of cash flows is $1,240,000
Calculate the present value of the after tax net returns to land in the 7th year if thereal pre-tax net returns to land today are $250, real net returns to land are assumedto increase by 5% each year, inflation is 4%, the marginal tax rate is 20%, and thepretax risk adjusted discount rate is 10%.
a. 270.10
b. 216.08
c. 105.27
d. 163.84
Answers
Answer:
b. $216.08
Explanation:
Fn = Fo * (1+g)^n
Fn = $250*(1.05)^7
Fn = $250*1.40710
Fn = $351.775
Nominal net returns = $351.775 * (1.04)^7
Nominal net returns = $351.775 * 1.315932
Nominal net returns = $462.912
After tax return = Nominal net returns * (1 - 20%)
After tax return = $462.912 * (1 - 0.2)
After tax return = $370.33
After-tax, risk adjusted discount rate = 0.1*(1 - 0.2)
After-tax, risk adjusted discount rate = 0.1*0.8
After-tax, risk adjusted discount rate = 0.08
After-tax, risk adjusted discount rate = 8%
PV after-tax net return in 7th year = After tax return * (1+8%)^-7
PV after-tax net return in 7th year = $370.33 * (1+0.08)^-7
PV after-tax net return in 7th year = $370.33 * 0.583490
PV after-tax net return in 7th year = $216.08
Suppose you entered a contract to buy your friend's iPad. Without your knowledge, it was malfunctioning at the time you bought it, and it died soon after you started using it. Your friend had recently removed a large number of applications from the iPad that were not working. Although he honestly thought the problem was with the applications and not the iPad itself, he failed to tell you about the problem. You reasonably concluded, based on your inspection of all of the current applications on the iPad, that it was functioning properly. Can you rescind the contract to buy the iPad?
a. Yes, due to fraud.
b. Yes, due to innocent misrepresentation.
c. Yes, due to mutual mistake.
d. Yes, due to undue influence.
e. No, the latent malfunction was not material, because the iPad was functioning when you bought it.
Answers
Answer:
Can you rescind the contract to buy the iPad?
b. Yes, due to innocent misrepresentation.
Explanation:
You can rescind the contract without damages or you claim damages based on the loss that you have already incurred for the contract. An innocent misrepresentation occurs when the misrepresentation is not fraudulent nor negligent. Therefore, you can rescind the contract or affirm it. But if the misrepresentation is fraudulent or negligent, you can rescind the contract as well as claim damages.
Kelly Industries issued 11% bonds, dated January 1, with a face value of $140,000 on January 1, 2021. The bonds mature in 2031 (10 years). Interest is paid semiannually on June 30 and December 31. For bonds of similar risk and maturity the market yield is 12%. What was the issue price of the bonds
Answers
Answer:
$131,971.06
Explanation:
Using a financial calculator, the bond issue price can be determined by first of all set the calculator to its end mode before making the following inputs:
N=20(number of semiannual periods in 10 years=10*2=20)
PMT=7700 (semiannual coupon=face value*coupon rate/2= $140,000*11%/2)
I/Y=6(semiannual yield=12%/2=6%)
FV=140000(the bond's face value is $140,000)
CPT
PV=$131,971.06
Slotnick Chemical received $280,000 from customers as deposits on returnable containers during 2021. Fifteen percent of the containers were not returned. The deposits are based on the container cost marked up 20%. How much profit did Slotnick realize on the forfeited deposits
Answers
Answer:
$7,000
Explanation:
The computation of the profit that should realize on the forfeited deposits is given below:
Deposited forfeited is
= $280,000 ×15%
= $42,000
Now the cost of the discount forfeited is
= $42,000 ÷ (100 + 20%$)
= $35,000
So, the profit realized is
= $42,000 - $35,000
= $7,000
If sales are $798,000, variable costs are 72% of sales, and operating income is $258,000, what is the contribution margin ratio?
a. 72%
b. 68%
c. 28%
d. 32%
Answers
Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $249,400. The equipment was expected to have a useful life of four years, or 8,800 operating hours, and a residual value of $20,600. The equipment was used for 3,080 hours during Year 1, 1,848 hours in Year 2, 2,464 hours in Year 3, and 1,408 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining- Balance Method Year 1 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Year 2 $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Year 3 $fill in the blank 7 $fill in the blank 8 $fill in the blank 9 Year 4 $fill in the blank 10 $fill in the blank 11 $fill in the blank 12 Total $fill in the blank 13 $fill in the blank 14 $fill in the blank 15 2. What method yields the highest depreciation expense for Year 1
Answers
Answer:
Straight line :
Depreciation expense each of the four years is $57,200
total depreciation = $228,800
Double declining :
Year 1 = $124,700
Year 2 = $62350
Year 3 = $31,175
Year 4 = $15,588
Total depreciation expense = $233,813
Activity based depreciation
year 1 = $80,080
year 2 = $48,048
year 3 = $64,064
year 4 = $36,608
Total depreciation expense = $288,800
the deprecation method that yields the highest depreciation expense in year 1 is the double declining method
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($249,400 - $20,600) / 4 = $57,200
Depreciation expense each of the four years is $57,200
total depreciation = $57,200 x 4 = $228,800
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2/4
Year 1 = 2/4 x $249,400 = 124,700
book value = $249,400 - 124,700 = 124,700
Year 2 = 2/4 x 124,700 = 62350
Book value = 124,700 - 62350 = 62350
Year 3 = 2/4 x 62350 = 31,175
book value = 62350 - 31,175 = 31,175
Year 4 = 2/4 x 31,175 = 15,587.50
Addition of the depreciation expenses = $233,812.50
Activity method based on hours worked = (hours worked that year / total hours of the machine) x (Cost of asset - Salvage value)
($249,400 - $20,600) / 8,800 = 26
year 1 = 26 x 3,080 = $80,080
year 2 = 26 x 1,848 = $48,048
year 3 = 26 x 2,464 = $64,064
year 4 = 26 x 1,408 = $36,608
Addition of the depreciation expenses = $288,800
The Perry Company reported Accounts Receivable, Net of $66,000 at the beginning of the year and $72,900 at the end of the year. If the company's net sales revenue during the fourth year was $882,000, what are the days to collect during year? (Round all calculations to 1 decimal place.)
a. 8.3
b. 30.2
c. 12.1
d. 28.7
Answers
Answer:
d. 28.7
Explanation:
Calculation to determine the days to collect during year
Using this formula
Average collection period=Average accounts receivables/Net sales*365
Where,
Average accounts receivables=$66,000+$72,900/2
Average accounts receivables=$69,450
Let plug in the formula
Collection period =$69,450/$882,000*365
Collection period=28.7 days
Therefore the days to collect during year is 28.7days
When the price elasticity of demand for a good is very elastic, quantity demanded is _____ to a change in price and the demand curve is relatively _____. Group of answer choices
Answers
Answer:
1. Responsive
2. Elastic
Explanation:
When the price elasticity of demand for a good is very elastic, quantity demanded is RESPONSIVE to a change in price and the demand curve is relatively ELASTIC.
This is because the price elasticity of demand measures the responsiveness of the quantity demanded to a change in price.
Consequently, as the quantity demanded changes, the demand curve then becomes relatively elastic, by shifting either to the right or left.
MC Qu. 149 Trago Company manufactures... Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 30% of the next month's sales. It estimates that May's ending inventory will consist of 85,500 units. June and July sales are estimated to be 285,000 and 295,000 units, respectively. Trago assigns variable overhead at a rate of $2.30 per unit of production. Fixed overhead equals $405,000 per month. Compute the number of units to be produced and use this amount to compute the total budgeted overhead that would appear on the factory overhead budget for the month of June.
Answers
Answer:
$1067400
Explanation:
The computation of the number of units and factory overhead is given below:
units to be produced in june is
= ending inventory + sales - beginning inventory
= (30% of 295000) + 285000 - 85500
= 288000 Units
Now
Overheads budgeted for june
= variable overheads + fixed overheads
= (288000 × 2.3) + 405000
= 662400+405000
= $1067400
Entry for Jobs Completed; Cost of Unfinished Jobs
The following account appears in the ledger prior to recognizing the jobs completed in August:
Work in Process
Balance, August 1 $8,920
Direct materials 72,520
Direct labor 78,230
Factory overhead 41,120
Jobs finished during August are summarized as follows:
Job 210 $36,140
Job 216 22,090
Job 224 42,170
Job 230 78,310
a. Journalize the entry to record the jobs completed.
b. Determine the cost of the unfinished jobs at August 31.
$
Answers
Answer:
a. Journal Entry to record the jobs completed:
Debit Finished Goods Inventory $178,710
Credit Work in Process $178,710
To record the jobs completed.
b. The cost of the unfinished jobs at August 31 is:
= $23,080
Explanation:
a) Data and Analysis:
Work in Process
Account Titles Debit Credit
Balance, August 1 $8,920
Direct materials 72,520
Direct labor 78,230
Factory overhead 41,120
Finished goods inventory $178,710
Balance (unfinished jobs) 23,080
Total $201,790 $201,790
Jobs finished during August are summarized as follows:
Job 210 $36,140
Job 216 22,090
Job 224 42,170
Job 230 78,310
Total $178,710
a. Journal Entry Analysis to record the jobs completed:
Finished Goods Inventory $178,710 Work in Process $178,710
b. The cost of the unfinished jobs at August 31 is:
= Total of work in process Minus Finished Goods
= $201,790 - $178,710
= $23,080
An entrepreneur purchased an existing bicycle shop that had between 13000
Answers
Answer:
Write the full question a so I can answer?
The management of Fuzzy Button Clothing Company controls 58% of the company's stock. The firm did not meet any of its quarterly sales projections for the last year. Some of the firm's institutional investors are worried that the firm's poor performance is partly because management has not been focused on maximizing shareholder wealth. Which of the following measures would the institutional investors most likely want to see implemented?
A. They would like to see the size of the board of directors increased, because larger boards usually implement a higher degree of corporate governance.
B. They would like to see that the company has an interlocking board of directors with one of the company's strategic partners
C. They would like to see that the majority of the company's board of directors is composed of true outsiders.
It is reasonable to assume that a firm's management is going to be ultimately motivated to act in their own best interest. It can be a serious problem for shareholders if management's self-interests do not align with shareholders' self-interests. Select the statement that best describes the board of directors' actions in the following scenario:
Happy Lion Manufacturing Inc. currently has $1.1 billion in cash on its balance sheet. The CFO thinks the firm will need $600 million in cash to finance operations for the next year. The CFO has recommended that the firm keep the excess cash in a marketable securities portfolio to allow for unexpected costs. However, the board of directors has decided that the firm will pay this money out to the shareholders in the form of a cash dividend.
D. The board's decision will give management the incentive to make decisions that are not in the shareholders' best interest.
E. The board's decision will help align management's interests with the shareholders' interests.
F. The board's decision is extremely risky and not very practical Flash Player WIN 32,0,0.387
Answers
Answer:
Fuzzy Button Clothing Company
1. The measure that the institutional investors would most likely want to see implemented is:
C. They would like to see that the majority of the company's board of directors is composed of true outsiders.
Happy Lion Manufacturing Inc.
2. The statement that best describes the board of directors' actions in the following scenario is:
E. The board's decision will help align management's interests with the shareholders' interests.
Explanation:
a) Data and Calculations:
Fuzzy Button Clothing Company
Management control = 58%
Institutional and other stockholders = 42% (100% - 58%)
Happy Lion Manufacturing Inc.
Cash on its balance sheet = $1.1 billion
Cash needed to finance operations next year = $600 million
Excess cash = $500 million ($1.1 billion Minus $600 million)
CFO's recommendation = keep excess cash in a marketable securities for unexpected costs
Board of directors' decision = pay the excess out to the shareholders in the form of a cash dividend.
Julie Lambert has a large consulting practice. New clients are required to pay one-half of the consulting fees up front. The balance is paid at the conclusion of the consultation. How does Lambert account for the cash received at the end of the engagement?
a.Cash
Unearned Consulting Revenue
b.Cash
Unearned Consulting Revenue
Earned Consulting Revenue
c. Prepaid Consulting Revenue
Earned Consulting Revenue
d. No entry is required when the engagement is concluded.
Answers
Answer:
b. Cash, Unearned Consulting Revenue; Earned Consulting Revenue
Explanation:
Lambert account for the cash received at the end of the engagement as stated below
Date Account titles Debit Credit
Cash XXX
Unearned Consulting Revenue XXX
Earned Consulting Revenue XXX
You feel that you will need $2.2 million in your retirement account and when you reach that amount, you plan to retire. You feel you can earn an APR of 10.2 percent compounded monthly and plan to save $305 per month until you reach your goal. How many years will it be until you reach your goal and retire
Answers
Answer: 40.7 years
Explanation:
You can use Excel to sold for this using the NPER function.
Rate = 10.2% / 12 months = 0.85%
Payment is $305 per month
Present value is $0
Future value is $2,200,000
Number of periods = 488.1979353
In years this is:
= 488.1979353 / 12
= 40.7 years
Colorado Cleaning has a 5-year maximum acceptable payback period. The firm is considering the purchase of a new washing machine and must choose between two alternative ones. The first machine requires an initial investment of $25,000 and generates annual after-tax cash inflows of $6,500 for each of the next 8 years. The second machine requires an initial investment of $75,000 and provides an annual cash inflow after taxes of $9,500 for 15 years.
Required:
a. Determine the payback period for each machine.
b. Comment on the acceptability of the machines, assuming that they are independent projects.
c. Which machine should the firm accept? Why?
d. Do the machines in this problem illustrate any of the weaknesses of using payback? Discuss.
Answers
Answer:
a) Payback period = period up to which cumulative cash flow is negative +
(negative cumulative cash flow /cash flow succeeding
the above period)
Project A - Up to year 4 ,cash flow recovered = 3000 * 4 = 12,000
Payback period =14,000/3,000 = 4.67 years
Project B= Cash flow recovered up to year 5 = 4000 * 5 = 20000
Payback period = 21,000/4,000 =5.25 years
b) On the basis of the Payback period, Project A should be selected, as it has a lower payback period and is also within the maximum acceptable payback period. back period.(4.67 < 5)
Project B should not be selected as its payback recovery is not within the maximum acceptable payback period (5.25 >5 )
c) Machine A should be selected as it has a lower payback period. than machine B.
d)The payback period ignores the life present value of cash flow and also the life of the machine each project has.
so the decision on the basis of the payback period may not be accurate.
At December 31, Folgeys Coffee Company reports the following results for its calendar year.
Cash sales $918,000
Credit sales 318,000
Its year-end unadjusted trial balance includes the following items.
Accounts receivable $143,000 debit
Allowance for doubtful accounts 6,800
Required:
Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 5% of credit sales, (2) 3% of total sales and (3) 8% of year-end accounts receivable.
Answers
Answer:
1. Dr Bad debts expense $15,900
Cr Allowance for Doubtful Accounts $15,900
2. Dr Bad debts expense $37,080
C Allowance for Doubtful Accounts $37,080
3. Dr Bad debts expense $18,240
Cr Allowance for Doubtful Accounts $18,240
Preparation of the adjusting entry to record bad debts expense
1. Dr Bad debts expense $15,900
Cr Allowance for Doubtful Accounts $15,900
(318,000*5%)
2. Dr Bad debts expense $37,080
C Allowance for Doubtful Accounts $37,080
[(918000+318,000)*3%]
3. Dr Bad debts expense $18,240
Cr Allowance for Doubtful Accounts $18,240
[(143,000*8%) + 6800]
