Answer:
1.c
2.a
3.e
4.e
5.c
6.c
7.d
8.a
9.e
10.e
Explanation:
First it is important to know and understand the definition of Asset, Liability and stockholders' equity. Then establish if these elements increase or decrease in a transaction.
Assets are economic resources controlled by a company as a result of past events from which economic benefits are expected to flow into the entity.
Liabilities are present obligation that arises as a result of past event settlement of which would result in outflow of economic benefits from the entity.
Stockholders equity is the residue in Assets after removing the liabilities.
Nutty Nuts is a monopolistic firm in the market for nuts. The following equations describe the demand for, and the cost of producing nuts, where Q is output in thousand pounds, and P is price per pound. Demand: P = 31 - 3Q Marginal Cost: MC = 3 + Q Total Cost: TC = 3 + 3Q + 0.5Q2 Consider that after filing for bankruptcy and engaging in a legal battle with neighboring landowners, the government decides to dissolve the monopolist, and the market becomes competitive. Given the perfectly competitive market outcome, one would expect that in the long run,:
a. the market price and the number of firms in the market will both decrease.
b. the market price and the number of firms in the market will both increase.
c. the market price will decrease but the number of firms will increase.
d. the market price will increase but the number of firms will decrease.
Answer: the market price will decrease but the number of firms will increase.
Explanation:
A monopoly exists when there is one supplier of a particular good or service in the market. A monopolistic firm has full control of the market, and therefore sets the price and the supply of a good or service. Typically a monopoly usually selects a higher price and also lesser quantity of output to be supplied. There is also a high barrier to entry.
When the government dissolves the monopolist, and the market becomes competitive, this will lead to more firms coming into the market. As a result of more firms coming to the market, there'll be cheaper price of goods. The market price which is determined by the forces of demand and supply will decrease.
Mike Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 14%. In January, the Commercial Products Division had average operating assets of $790,000 and net operating income of $148,700. What was the Commercial Products Division's residual income in January
Answer:
The Commercial Products Division's Residual income in January is $ 37,400.
Explanation:
Residual income (which is a Managerial Accounting concept) is what remains from a departments income after the opportunity cost of the capital that it deploys has been removed.
The formula is given below:
Residual Income (RI) = Controllable Margin (CM) - Required Rate of Return (RRR) × Average Operating Assets (AOR)
Step I:
Insert all the given factors
RI = 148,000 - (14% x 790,000)
RI = 148,000 - 110600
Therefore, residual income RI = $ 37,400
Cheers!
When the current state of the economy is such that Real GDP is greater than Natural Real GDP, the economy is in a(n) ____________________ gap. In this situation, the (actual) unemployment rate is ___________ than the natural unemployment rate, and there is a ________________ in the labor market. Question 3 options: recessionary; greater; shortage inflationary; less; shortage inflationary; greater; surplus recessionary; greater; surplus recessionary; less; shortage
Answer:
inflationary; less; shortage.
Explanation:
A country's economy is said to be experiencing inflationary gap, when the current state of the economy is such that Real Gross Domestic Products (GDP) is greater than the Natural Real Gross Domestic Products (GDP). Under this condition, the (actual) unemployment rate is less than the natural unemployment rate, and there is a shortage in the labor market.
Hence, an inflationary gap, also known as the expansionary gap in economics is used to measure the difference between the gross domestic product (GDP) and the current level of Real Gross Domestic Products that exists when a country's economy is gauged at a full employment rate. This eventually causes the price of goods and services to go up with a low income level among the people living in the country.
Bartman, Corp. observes that the Swiss franc (SF) is quoted at $0.6164/SF, while the Swedish krona (SK) is quoted at $0.1981/SK. What is the SK/SF cross rate? (Round your final answer to four decimal places.
Answer: SK is 3.1116/SF
Explanation:
If 1 Franc = $0.6164 and 1 krona = $0.1981 then the expression can be also be expressed as,
1 Franc = 1 krona
$0.6164 = $0.1981.
Then if,
0.6164 = 0.1981
What is 1 Krona in terms of a Franc
0.6164 : 0.1981
x : 1
0.1981x = 0.6164
x = 0.6164 / 0.1981
x = 3.11155981827
x = 3.1116
This means that 1 krona is 3.1116 Franc or,
SK is 3.1116/SF
Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Labor Hours Per Unit Machine Hours Per Unit Blinks 1,000 4 5 Dinks 2,000 2 8 All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $72,000. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs. The single plantwide rate, if it is based on machine hours instead of labor hours, is a.$7.43 per machine hour b.$19.50 per machine hour c.$9.00 per machine hour d.$4.00 per machine hour
Answer:
OAR = $4 per machine hour
Explanation:
Plant wide overhead absorption rate (OAR)
= Estimated overhead/Estimated total machine hours
Estimated machine hours = (5 × 1000) +( 8× 2000) = 21,000 machine hours
OAR = $84,000/21,000 machine hour= $4 per machine hour
OAR = $4 per machine hour
On January 1, 2018, Earnest Company purchased equipment and signed a sixminusyear mortgage note for $ 80 comma 000 at 15%. The note will be paid in equal annual installments of $ 21 comma 139, beginning January 1, 2019. Calculate the portion of principal paid on the third installment. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
Answer:
$12,086
Explanation:
Mortgage installment payment includes the payment of interest on the outstanding balance of mortgage and Principal Payment. Principal payment is calculated by deducting the interest payment from total installment payment. Gradually the interest payment decreases as the outstanding balance of mortgage decreases and Principal payment increases.
First Payment
Installment = 21,139
Interest Payment = $80,000 x 15% = 12,000
principal Payment = $21,139 - 12000 = $9,139
Closing Balance of Mortgage = $80,000 - $9,139 = $70,861
Second Payment
Installment = 21,139
Interest Payment = $70,861 x 15% = $10,629
principal Payment = $21,139 - $10,629 = $10,510
Closing Balance of Mortgage = $70,861 - $10,510 = $60,351
Third Payment
Installment = 21,139
Interest Payment = $60,351 x 15% = $9,053
principal Payment = $21,139 - $9,053 = $12,086
Closing Balance of Mortgage = $60,351 - $12,086 = $48,265
Scratch Miniature Golf and Driving Range Inc. was opened on March 1 by Scott Verplank. The following selected events and transactions occurred during March. Mar. 1 Invested $50,000 cash in the business in exchange for common stock. 3 Purchased Michelle Wie's Golf Land for $38,000 cash. The price consists of land $10,000, building $22,000, and equipment $6,000. (Make one compound entry). 5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,600. 6 Paid cash $1,480 for a one‐year insurance policy. 10 Purchased golf equipment for $2,500 from Singh Company, payable in 30 days. 18 Received golf fees of $1,200 in cash. 25 Declared and paid a $500 cash dividend. 30 Paid wages of $900. 30 Paid Singh Company in full. 31 Received $750 of fees in cash.Scratch uses the following accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Common Stock, Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense. Instructions: Journalize the March transactions.
Answer and Explanation:
The Journal entry is shown below:-
1. Cash Dr, 50,000
To Common Stock 50,000
(Being issuance of common stock is recorded)
2. Land Dr, 10,000
Buildings Dr, 22,000
Equipment Dr, 6,000
To Cash 38,000
(Being fixed assets is recorded)
3. Dr. Advertising Expense Dr, 1,600
To Cash $1,600
(Being advertisement expenses is recorded)
4. Prepaid Insurance Dr, $1,480
To Cash $1,480
(Being prepaid insurance is recorded)
5.Equipment Dr, $2,500
To Accounts Payable $2,500
(Being purchase of equipment is recorded)
6. Cash $1,200
To Service Revenue $1,200
(Being service revenue is recorded)
7. Dividends Dr, $500
To Cash $500
(Being dividend is recorded)
8. Salaries and Wages Expense Dr, $900
To Cash 900
(Being salaries and wages expenses is recorded)
9. Accounts Payable Dr, 2,500
To Cash 2,500
(Being accounts payable is recorded)
10. Cash Dr, $750
To Service Revenue $750
(Being service revenue is recorded)
Happy Feet Shoe Company makes loafers. During the most recent year, Happy Feet incurred total manufacturing costs of $26, 100,000. Of this amount, $2, 100,000 was direct materials used and $19, 800,000 was direct labor. Beginning balances for the year were Raw Materials Inventory, $500,000; Work-in-Process Inventory, $1,000,000; and Finished Goods Inventory, $500,000. At the end of the year, balances were Raw Materials Inventory, $600,000; Work-in-Process Inventory, $1, 400,000; and Finished Goods Inventory, $920,000.
Requirements
Analyze the inventory accounts to determine:
1. Cost of raw materials purchased during the year.
2. Cost of goods manufactured for the year.
3. Cost of goods sold for the year.
4. Cost of raw materials purchased during the year.
Direct Materials
Direct Materials Used
Beginning Raw Materials Inventory
Ending Raw Materials Inventory
Purchases
Answer:
Instructions are below.
Explanation:
Giving the following information:
Manufacturing costs= $26,100,000
Direct materials used= $2,100,000
Direct labor= $19,800,000
Beginning inventory:
Raw Materials= $500,000
Work-in-Process= $1,000,000
Finished Goods= $500,000
Ending inventory:
Raw Materials= $600,000
Work-in-Process= $1, 400,000
Finished Goods= $920,000.
1) First, we need to calculate the raw materials purchased during the period:
Direct material used= beginning inventory + purchases - ending inventory
2,100,000= 500,000 + purchases - 600,000
2,200,000= purchases
2) We need to determine the cost of goods manufactured:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 1,000,000 + 26,100,000 - 1,400,000
cost of goods manufactured= $25,700,000
3) To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 500,000 + 25,700,000 - 920,000
COGS= 25,280,000
At the end of the fiscal year, the following adjusting entries were omitted:
a. No adjusting entry was made to transfer the $1,750 of prepaid insurance from the asset account to the expense account.
b. No adjusting entry was made to record accrued fees of $525 for services provided to customers.
Assuming that financial statements are prepared before the errors are discovered, indicate the effect of each error, considered individually, by inserting the dollar amount in the appropriate spaces.
Answer:
The answers of the both parts are well explained below:
Explanation:
Part A.
The double entry to record the prepaid insurance would be:
Dr Insurance Expense $1750
Cr Prepaid Insurance $1750
Both prepaid insurance is a current asset which means that not decreasing the current asset at December 31 would overstate it by $1,750 and increase the profit by the same amount because the expenses are understated by $1750. It will also affect the tax calculated for the year.
Part B.
The double entry to record the expense that have been accrued, will be:
Dr Fees Accrued $525
Cr Fees Payable $525
Both the current liabilities and the expenses would be understated and would result in increase in the Profit which will increase the tax calculated.
Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company based its budget on 5,500 machine-hours. Budgeted and actual overhead costs for the month appear below: Original Budget Based on 5,500 Machine-HoursActual Costs Variable overhead costs: Supplies$12,800 $13,730 Indirect labor 54,300 55,690 Fixed overhead costs: Supervision 21,600 21,240 Utilities 7,800 7,860 Factory depreciation 8,800 9,110 Total overhead cost$105,300 $107,630 The company actually worked 5,590 machine-hours during the month. The standard hours allowed for the actual output were 5,580 machine-hours for the month. What was the overall variable overhead efficiency variance for the month
Answer:
Variable overhead efficiency variance = $798.36 unfavorable
Explanation:
Variable overhead efficiency variance is the difference between the actual time taken to achieve a given production output less the standard hours for same multiplied by the standard variable overhead rate
Since the variable overhead is charged using machine hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance
Overhead absorption rate =Estimated overhead/estimated machine hours
105,300/5,500 machine hours = $19.14 per machine hour
$
5,580 hours should have cost (5,580× 19.14) 106,831.6
but did cost (actual cost ) 107,630
Variable overhead efficiency variance. 798.36 unfavorable
Variable overhead efficiency variance = $798.36 unfavorable
Solomon Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow: Basco Boards Shimano Boards Production costs Direct materials $ 25.40 $ 38.80 Direct labor $ 31.40 $ 53.80 Allocated overhead $ 15.70 $ 20.80 Total units produced and sold 5,400 9,400 Total sales revenue $ 491,400 $ 1,259,600 Solomon allocates production overhead using activity-based costing. It allocates delivery expense and sales commissions, which amount to $61,000 per quarter, to the two products equally. Required Compute the per-unit cost for each product. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Compute the profit for each product.
Answer:
The Basco per unit cost is $5.65
The Shimano per unit cost is $3.24
The profit of Basco is $99,900. The profit of Shimano is $193,640
Explanation:
In order to calculate the per-unit cost for each product we would have to make the following calculations according to the given data:
Basco boards Shimano boards
Direct material $25.40 $38.80
Direct labor $31.40 $53.80
Allocated overhead $15.70 $20.80
Delivery expenses and sales commission $5.65 $3.24
Unit cost $78.15 $116.64
Allocation of delivery expenses and sales commission on an equal basis = $61,000 / 2 = $30,500.
Basco per unit cost = $30,500 / 5,400 = $5.65
Shimano per unit cost = $30,500 / 9,400 = $3.24
To calculate the profit for each product we would have to make the following calculations:
Basco Shimano
Sales $491,400 $1,259,600
Cost of goods sold $391,500 (5,400 * 72.5) $1,065,960 (9,400 * 116.64)
Profit $99,900 $193,640
Mary Willis is the advertising manager for Flint Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $30,400 in fixed costs to the $272,000 currently spent. In addition, Mary is proposing that a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Mary’s ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety.
A: Compute the current break-even point in units, and compare it to the break-even point in units if Mary’s ideas are used. (Round answers to 0 decimal places, e.g. 1,225.)B: Compute the margin of safety ratio for current operations and after Mary’s changes are introduced. (Round answers to 0 decimal places, e.g. 15%.)C: Prepare a CVP income statement for current operations and after Mary’s changes are introduced. Would you make the changes suggested?
Answer:
A. Current = 17,000, After Mary Ideas = 21,600
B. Current = 15% After Mary Ideas = 10%
C.
Current After Mary Ideas
Sales 800,000 912,000
Less Variable Costs (480,000) (576,000)
Contribution 320,000 336,000
Less Fixed Costs (272,000) (302,400)
Net Income/(Loss) 48,000 33,600
Conclusion :
No will not make the changes
Because they result in decrease in net income by $14,400
Explanation:
A: Compute the current break-even point in units
Current
break-even point in units = Fixed Costs / Contribution per unit
= $272,000 / ($40 - $24)
= 17,000 pairs of shoes
Mary ideas
break-even point in units = Fixed Costs / Contribution per unit
= ($272,000 + $30,400) / ($38 - $24)
= 21,600 pairs of shoes
B: Compute the margin of safety ratio
Current
margin of safety ratio = Expected Sales - Break even Sales / (Expected Sales)
= (20,000 - 17,000) / 20,000
= 15%
Mary Ideas
margin of safety ratio = Expected Sales - Break even Sales / (Expected Sales)
= (24,000 - 21,600) / 24,000
= 10%
An adjusting entry should never include Group of answer choices a debit to an expense account and a credit to a liability account a debit to an expense account and a credit to a revenue account a debit to a liability account and a credit to revenue account a debit to a revenue account and a credit to a liability account
Answer:
A debit to an expense account and a credit to a revenue account.
Explanation:
These are journal entries that makes accounting of a business to be properly arranged or said to be in order. Just like in the above sentence, it is should never include a debit to an expense account and a credit to a revenue account.
In certain scenarios, adjusting these journal entries are needed before the financial statements are been issued.
Sometimes when nothing has been inputed in the accounting records for an expenses or revenues in a period, but those expenses and/or revenues did occur and must be included in the current period's income statement and balance sheet. Also something has already been entered in the accounting records, but the amount needs to be divided up between two or more accounting periods.
As the information technology advances and consumers buy products requiring more and more technology, the wages of people with high level programming and other technical skills would a. increase as the supply of high tech skills increases. b. increase as the demand for high tech skills increases. c. not be affected by consumers’ purchases d. decrease as the supply of high tech skills increases.
Answer:
b. increase as the demand for high tech skills increases.
Explanation:
Due to the fact that the demand for technological products is increasing, the demand for people who possess high tech skills would also increase as firms would want to provide more tech products to satisfy the demand of consumers.
This would lead to an increase the demand for people with high tech skills. When demand exceeds supply, wages would rise.
I hope my answer helps you
A Canadian subsidiary of a U.S. parent firm is instructed to bill an export to the parent in U.S. dollars. The Canadian subsidiary records the accounts receivable in Canadian dollars and notes a profit on the sale of goods. Later, when the U.S. parent pays the subsidiary the contracted U.S. dollar amount, the Canadian dollar has appreciated 10% against the U.S. dollar. In this example, the Canadian subsidiary will record a
Answer:
10% foreign exchange loss on the U.S. dollar accounts receivable
Explanation:
Based on the information provided within the question it can be said that in this example the Canadian subsidiary will record a 10% foreign exchange loss on the U.S. dollar accounts receivable. That is because as the Canadian dollar has appreciated 10% against the U.S. dollar, it means that it has lost 10% of it's buying power due to its foreign exchange price change, thus resulting in a loss which needs to be recorded.
Consider how Hunter Valley, a popular ski resort, could use capital budgeting to decide whether the $9 million River Park Lodge expansion would be a good investment.
Assume that Hunter Valley uses the straight-line depreciation method and expects the lodge expansion to have a
Assume that Hunter Valley's managers developed the following estimates concerning a planned expansion to its River Park Lodge(all numbers assumed):
Number of additional skiers per day 122
Average number of days per year that weather
conditions allow skiing at Flint Valley 162
Useful life of expansion (in years) 9
Average cash spent by each skier per day $245
Average variable cost of serving each skier per day $142
Cost of expansion $9,000,000
Discount rate 12%
residual value of $500,000 at the end of its nine-year life. Requirement 1. Compute the average annual net cash inflow from the expansion. 2. Compute the average annual operating income from the expansion. First enter the? formula, then compute the average annual operating income from the expansion.? (Round your answer to the nearest? 3. Compute the payback period. 4. Compute the ARR.
Answer:
1.$2,035,692
2.$1,091,248
3.8.24 years
4.22.97%
Explanation:
Hunter Valley
1. Computation for the average annual net cash inflow from the expansion.
Formula for Average annual net cash inflow from operation
= Numbers of skiers day * Contribution margin per skier
(122*162) * ($245 - $142)
=19,764*$103
= $2,035,692
2.Computation for the average annual operating income from the expansion
Formula for Average annual operating income from expansion
= Annual cash inflow - Depreciation
= $2,035,692 - ($9,000,000 - $500,000) / 9
= $2,035,692-$8,500,000/9
$1,091,248
3.Computation for the Payback period
Payback period = Initial investment / Annual cash inflows
= $9,000,000 / $1,091,248
= 8.24 years
4.Computation for the ARR
ARR = Average annual income / Average investment
Hence:
Average investment = (Cost +Residual value) / 2
= ($9,000,000 +$500,000) / 2
=$9,500,000/2
= $4,750,000
ARR = $1,091,248 / $4,750,000
=0.2297×100
= 22.97%
"The owner of a small restaurant that sells take-out fried chicken and biscuits pays $2,500 in rent each month, $500 in utilities, $750 interest on his loan, insurance premium of $200, and advertising on local bus $250 a month. A small bucket of take-out chicken, the only menu item, is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. At what level of sales of dollars of revenue will the restaurant break-even
Answer:
Break-even point (dollars)= $9,976.25
Explanation:
Giving the following information:
Fixed costs:
Rent $2,500
Utilities $500
Interest $750
An insurance premium of $200
Advertising on local bus $250 a month
Total= $4,200
A small bucket of take-out chicken, the only menu item, is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50.
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 4,200/ [(9.5 - 5.5)/9.5]
Break-even point (dollars)= 4,200/0.421
Break-even point (dollars)= $9,976.25
Fallon Osmond is chairperson of the board of Simple Treats, Inc. Suppose Osmond has just founded Simple Treats, and assume that she considers her home and other personal assets as part of Simple Treats. Answer these questions about the evaluation of Simple Treats, Inc 1. Which accounting assumption governs this situation? assumption gve Osmond and others a realistic view of Simple Treats, Inc? Explain in detail 2. How can the proper application of this 1. Which accounting assumption governs this situation? The entity assumption applies The entity assumption The going-concern assumption The stable-monetary-unit assumption
Answer:
The correct answer will be "The entity assumption ". The further explanation is given below.
Explanation:
The entity hypothesis or assumptions that are also considered separate legal entity hypothesis claims that a corporation is regarded as something of an autonomous organization.Therefore a separate entity that has it's own finance importance and position that would be independent of the legislature as well as any company data is separated from its owner's accounts.So that the above is the right answer.
An insurance company must pay liabilities of 99 at the end of one year, 102 at the end of two years and 100 at the end of three years. The only investments available to the company are the following three bonds. Bond A and Bond C are annual coupon bonds. Bond B is a zero-coupon bond.
Bond Maturity (in years) Yeild to Maturity(Annualized) Coupon Rate
A 1 6% 7%
B 2 7% 0%
C 3 9% 5%
All three bonds have a par value of 100 and will be redeemed at par. Calculate the number of units of Bond A that must be purchased to match the liabilities exactly
a. 0.8807
b. 0.8901
c. 0.8975
d. 0.9524
e. 0.9724
Answer:
The correct answer is option (a) 0.8807
Explanation:
Solution
Given that:
We start from the liability of bond in 3 years.
Thus, the $100 liability can be an offset by Bond C.
The cash flow of Bond C and the payment of final coupon in year 3 is given as:
100 + (5%*100) = 105
Now,
the number of Bond C which will offset a liability of $100 which is = 100/105 = 0.9524 (All cash flows of Bond C is multiplied by this)
So, the remaining liability becomes
Time Liabilities cash flow Cash flow from Bond C Remaining liabilities
1 99 4.76 94.24
2 102 4.76 97.24
3 100 100.00
Thus,
The year 2 liability offset is $97.24
For Bond B, this can be the offset which contains a cash flow of $100 (which is a zero coupon bond)
The Bond number which are required for this offset is = 97.24/100 =0.974
The remaining cash flow is computed as follows:
Time = 1 ,2, 3
Liabilities cash flow = 99, 102, 100
Cash flow from Bond C =4.76, 4.76. 100.00
Remaining liabilities = 94.24, 97.24
Cash flow from Bond B = 0, 97.24
Remaining liabilities = 97.24
What this suggest is that The Bond A has to offset at approximately $94.24 in year 1.
The Cash flow from Bond A = 100 + (7%*100) = 107
Hence,
The number of Bond A's needed = 94.24/107 = 0.8807
When the marginal revenue curve intersects the horizontal axis A. demand is relatively inelastic. B. demand is perfectly elastic. C. demand is relatively elastic. D. demand is unitary elastic.
Answer:
D. demand is unitary elastic.
Explanation:
A unitary elastic demand means that the quantity demanded will change proportionally to any change in the price of the product or service. E.g. price decreases by 10%, then quantity demanded will increase by 10%.
The marginal revenue curve represents the additional revenue generated by selling one more unit. As the marginal revenue curve approaches 0, it means that selling one additional unit generates lower revenues.
You are tasked with composing a program to compute the payroll earnings for the sales force at the Arctic Ice company. All sales employees are on a straight commission basis of 12.5% of gross sales. The sales manager calculates the bonuses separately. Your program is needed to calculate the withholdings and deductions from the employee’s gross pay. Your program must calculate the federal and state withholdings (taxes) and also the retirement contribution of each employee
A. 25% Federal withholding
B. 10% State withholding
C. 8% Retirement plan
Salesperson Sales Bonus
1 53,500 425
2 41,00 300
3 56,800 350
4 36,200 175
Answer:
Programming language: C
Code:
#include<stdio.h>
double fed_with(double total){ //declaring the functions
return 0.25*total;
}
double ste_with(double total){
return 0.1*total;
}
double ret_plan(double total){
return 0.08*total;
}
int main(){
double sales[4][2],total,fw,sw,rp; //variables to be used
int i,j;
for(i=0;i<4;i++){ //taking input loop
printf("Salesperson %d: (Sales + Bonus)\t", i+1);
scanf("%lf %lf",&sales[i][0],&sales[i][1]);
printf("\n");
}
for(i=0;i<4;i++){ //printing payroll loop
printf("Salesperson %d: Statement\n", i+1);
total = 0.125*sales[i][0]+sales[i][1];
printf("Sales + Bonus: %lf\n",sales[i][0]+sales[i][1]);
printf("Total: %lf\n",total);
fw=fed_with(total);
printf("Federal Withholding: %lf\n",fw);
sw=ste_with(total);
printf("State Withholding: %lf\n",sw);
rp=ret_plan(total);
printf("Retirement Plan: %lf\n",rp);
printf("Final: %lf\n",total-fw-sw-rp);
printf("\n");
}
return 0;
}
Explanation:
Operating data for Martinez Corp. are presented below. 2022 2021 Sales revenue $842,600 $639,100 Cost of goods sold 529,000 410,400 Selling expenses 123,900 76,300 Administrative expenses 73,000 52,400 Income tax expense 37,700 23,100 Net income 79,000 76,900 Prepare a schedule showing a vertical analysis for 2022 and 2021
Answer:
Martinez Corp.
Schedule showing a vertical analysis for 2022 and 2021:
2022 % 2021 %
Sales revenue $842,600 100 $639,100 100
Cost of goods sold 529,000 62.8 410,400 64.2
Gross Profit 313,600 37.2 228,700 35.8
Selling expenses 123,900 14.7 76,300 11.9
Administrative expenses 73,000 8.7 52,400 8.2
Income before Taxes 189,700 22.5 100,000 15.6
Income tax expense 37,700 4.5 23,100 3.6
Net income 79,000 9.4 76,900 12
Explanation:
a) Vertical analysis is a method of analyzing financial statements in which each line item is listed as a percentage of a base figure within the statement. Usually, the base figure used is the Sales Revenue for the Income Statement and Total Assets for the Balance Sheet.
b) The formulas for the Vertical Analysis are as follows:
Vertical Analysis formula = Individual Item / Base Amount *100
i) Vertical Analysis Formula (Income Statement) = Income Statement Item / Total Sales * 100.
ii) Vertical Analysis Formula (Balance Sheet) = Balance Sheet Item / Total Assets (Liabilities) * 100.
Suppose that you hold a piece of land in the City of London that you may want to sell in one year. As a U.S. resident, you are concerned with the dollar value of the land. Assume that, if the British economy booms in the future, the land will be worth £2,000 and one British pound will be worth $1.40. If the British economy slows down, on the other hand, the land will be worth less, i.e., £1,500, but the pound will be stronger, i.e., $1.50/£. You feel that the British economy will experience a boom with a 60% probability and a slow-down with a 40% probability.
Required:
a. Estimate your exposure b to the exchange risk.
b. Compute the variance of the dollar value of your property that is attributable to the exchange rate uncertainty.
c. Discuss how you can hedge your exchange risk exposure and also examine the consequences of hedging.
Answer and Explanation:
(A) E(P) = (0.6) × ($2800) + (0.4) × ($2250)
= $1680+$900
= $2,580
E(S) = (0.6) × (1.40)+(0.4) × (1.5)
= 0.84 + 0.60
= $1.44
Var(S) = (0.6)(1.40 - 1.44)² + (.4)(1.50 - 1.44)²
= .00096+.00144
= 0.0024.
Cov(P,S) = (0.6)(2800-2580)(1.4-1.44) + (0.4)(2250-2580)(1.5-1.44)
= -5.28-7.92
= -13.20
b = Cov(P,S)/Var(S)
= -13.20/.0024
= -£5,500.
there is a negative exposure. as the pound gets stronger/weaker against the dollar the dollar value of british holding goes higher.
(B) b²Var(S) = (-5500)²(.0024) = 72,600($)²
(C). i would Buy 5,500 forward to hedge exchange risk exposure. By doing this, i can eliminate the volatility of the dollar value of your British asset that is due to the volatility of the exchange rate
Halverstein Company's outstanding stock consists of 9,450 shares of cumulative 5% preferred stock with a $10 par value and 4,050 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Year Dividend Declared 2015 $0 2016 $6,000 2017 $32,000 The amount of dividends paid to preferred and common shareholders in 2016 is:
a. $3,500 preferred; $2,500 common.
b. $3,000 preferred; $3,000 common.
c. $0 preferred; $6,000 common.
d. $4,200 preferred; $1,800 common.
e. $6,000 preferred; $0 common.
Answer:
e. $6,000 preferred; $0 common.
Explanation:
The Preference Stock holders hold first preference during payment of dividends followed by the Common Stockholders.
Note also that Cumulative Preference Stock can have their dividends accumulated and paid in the latter years when funds become available.
Amount of Preference Stock dividend is fixed and calculated as follows:
9,450 shares × $10 × 5% = $ 4,725
2015
Cash dividends = $0
Preference Stock dividend Paid = $0
Preference Stock dividend Arrears = $ 4,725
No Common Stock Dividend
2016
Cash dividends = $6,000
Preference Stock dividend Paid = $6,000
Preference Stock dividend Arrears = $ 3,450
No Common Stock Dividend
Identify the correct statement regarding reasonable accommodation.
A. Reasonable accommodation is typically provided in situations involving individuals with disabilities or different religious needs.
B. Reasonable accommodation is the same as reverse discrimination.
C. Reasonable accommodation exclusively compensates for the poor educational background that hampers the progress of employees.
D. Reasonable accommodation is provided by an organization even if the requisite changes create undue hardship on the organization.
E. Reasonable accommodation is provided on a homogeneous basis without the provisions being tailored to the individual needs of employees.
Answer:
A. Reasonable accommodation is typically provided in situations involving individuals with disabilities or different religious needs.
Explanation:
Reasonable accommodation is typically provided in situations involving individuals with disabilities or different religious needs.
For instance, in an organization having employees with disabilities, reasonable accommodations usually varies depending on the needs of these individuals. A person with special needs or disabilities may provide his or her own accommodation, which is necessary that employer allows. Also, in some cases, the accommodation may be provided by the employer based on equal employment opportunity rights.
Under employment law, reasonable accommodations refers to an employer's obligation to ensure employees with disabilities are provided with assistance that would enable them perform their duties efficiently and effectively.
Examples of reasonable accommodations are modified work schedules, job or policy restructuring, interpretations, modifications of equipment and training materials.
Orlin purchases a refrigerator, on credit, from a door to door salesman. Orlin only has a 5th grade education, and the terms of the credit arrangement are such that Orlin will pay 10 times what the refrigerator is worth by the time he completes all of the payments. If Orlin wants to challenge the enforcement of this contract's terms, his best argument under the UCC would be based upon:_________
a. the mirror image rule.
b. the principle of fair trade.
c. the doctrine of unconscionability.
d. the predominant-factor test.
Answer: the doctrine of unconscionability
Explanation:
The doctrine of unconscionability is a defense that is against enforcing a contract. From the question, we are informed that Orlin bought a refrigerator, on credit, from a salesman and the salesman want him to pay 10 times the worth of the refrigerator.
In this scenario, the contract is deemed to be unfair and also oppressive to Orlin, thus he a find it unconscionable and therefore he can refuse to enforce it. Therefore, if he wants to challenge the contract’s terms, the doctrine of unconscionability will be used.
A consumer expenditure survey reports the following information on consumer protein spending:201820192020PQPQPQFish$2.001000$2.501200$3.00900Beef$5.0050$4.0075$6.00100Rent$800.00100$850.0075$900.00105Car$20,000.0050$18,000.0048$22,000.0060Movie$8.00160$10.00180$10.00200Sugar$3.002000$2.002100$2.501800Hamburger$4.00200$4.50250$3.50300a.Using 2018as the base year, by how much does a "cost of living" index increase between 2018and 2019; 2018 and 2020; and 2019 and 2020
Answer:
(a) "Cost of living" index decrease by 14.42% between 2018 and 2019.
(b) "Cost of living" index increase by 30.73% between 2018 and 2020.
(c) "cost of living" index increase by 45.05% between 2018 and 2020.
Explanation:
Note: See the attached excel file for the calculations of the "cost of living" index for eash of 2018, 2019, and 2020 using 2018 as the base year.
(a) by how much does a "cost of living" index increase between 2018 and 2019.
Cost of living index in 2018 = 100%
Cost of living index in 2019 = 85.68%
Increase (decrease) in cost of living index = Cost of living index in 2019 - Cost of living index in 2018 = 85.68% - 100% = (14.42%)
Therefore, "cost of living" index decrease by 14.42% between 2018 and 2019.
(b) by how much does a "cost of living" index increase between 2018 and 2020.
Cost of living index in 2018 = 100%
Cost of living index in 2020 = 130.73%
Increase (decrease) in cost of living index = Cost of living index in 2020 - Cost of living index in 2018 = 130.73% - 100% = 30.73%
Therefore, "cost of living" index increase by 30.73% between 2018 and 2020.
(c) by how much does a "cost of living" index increase between 2019 and 2020
Cost of living index in 2019 = 85.68%
Cost of living index in 2020 = 130.73%
Increase (decrease) in cost of living index = Cost of living index in 2020 - Cost of living index in 2018 = 130.73% - 85.68% = 45.05%
Therefore, "cost of living" index increase by 45.05% between 2018 and 2020.
During the year, the following selected transactions affecting stockholders' equity occurred for Navajo Corporation:
a. Feb. 1 Repurchased 200 shares of the company's own common stock at $28 cash per share.
b. Jul. 15 Sold 110 of the shares purchased on February 1 for $29 cash per share.
c. Sept. 1 Sold 80 of the shares purchased on February 1 for $27 cash per share.
Required: 1. Prepare the journal entry required for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer: Please refer to Explanation
Explanation:
a.
February 1
DR Treasury Stock $5,600
CR Cash $5,600
(To record repurchasing of Company Shares)
Workings.
Treasury Stock = 200 * 28
= $5,600
b.
July 15
DR Cash $3,190
CR Treasury Stock $3,080
CR Additional Paid-in Capital $110
(To record sale of Treasury Stock)
Workings
Cash
= 110 shares * $29
= $3,190
Treasury Stock
= 110 shares * $28 (purchase price)
= $3,080
c.
Sept 1
DR Cash $2,160
DR Additional Paid-in Capital $80
CR Treasury Stock $2,240
(To record sale of Treasury Stock)
Workings
Because resale price was lower than repurchase price, Additional Paid-in Capital will have to be debited to reflect the loss.
Treasury Stock
= 80 shares * $28 (purchase price)
= $2,240
Cash
= $27 * 80
= $2,160
2. The managerial grid only provides a framework for conceptualizing leadership
style
A True
B False
Answer:
The correct answer to the following question will be "True".
Explanation:
The managerial or management design model or principles seems to be a self-assessment tool that allows people and communities to probably decide the aesthetic of a manager or supervisor.This proposed model described 5 various types of leadership styles premised on compassion for individuals and concern for manufacturing.So that the given statement is true.
The HNH Corporation will pay a constant dividend of $ 2.00$2.00 per share, per year, in perpetuity. Assume all investors pay a 20 %20% tax on dividends and that there is no capital gains tax. Suppose the other investments with equivalent risk to HNH stock offer an after-tax return of 12 %12%. a. What is the price of a share of HNH stock? b. Assume that management makes a surprise announcement that HNH will no longer pay dividends but will use the cash to repurchase stock instead. What is the price of a share of HNH stock now?
Answer:
a. The price of a share of HNH stock is $13.33 per share
b. The price of a share of HNH stock now is $16.66 per share
Explanation:
a. According to the given, in order to calculate the price of a share of HNH stock we would have to use the following formula:
Price of the stock = Constant Dividend * (1-T) / Required Return
Price of the stock= 2 * (1-.20)/0.12
Price of the stock= $13.33 per share
b. If management will not pay dividend but will use the cash to repurchase stock, so now the only change to the cash flows will be that there will be no tax. Share repurchase equals dividend per share without taxes.
Now, the price of the stock = 2 / 0.12 = $16.66 per share
