Answer:
$9000
Explanation:
Inventory turnover is an example of an activity ratio
Activity ratios calculate the efficiency of performing daily task of a firm
Inventory turnover = cost of goods sold / average inventory
Average inventory = (beginning inventory + ending inventory) / 2
($2000 + $1000) / 2 = $1500
6 = cost of goods sold / 1500
To determine cost of goods sold, multiply both sides of the equation by 1500
1500 x 6 = $9000 = cost of goods sold
Carolyn wants to work as a manager. The position she is hoping to be hired for requires a doctorate degree. For what type of position might she be applying?
A. elementary education
B. executive management
C. upper-level administration
D. post-secondary institution
Answer:
C. upper-level administration
Explanation:
.
Billions of Dollars
Investment 80
Capital consumption allowance (depreciation) 45
Exports 40
Imports 15
Government purchases 160
Consumption 375
Indirect business taxes 35
Social insurance taxes 5
Corporate profit taxes 4
Undistributed corporate profits 6
Transfer payments 50
Personal taxes 110
Compensation of employees 455
Corporate profits 90
Rental income (of persons) 5
Net interest 25
Proprietors' income 25
Income earned from the rest of the world 80
Income earned by the rest of the world 40
The five components of GDP from the table that together sum to national income are ___________, ____________, ___________, and ______________
Answer:
Note: Some words are missing and are attached as picture below
The 5 components of GDP from the table that together sum to national income are:
a. Compensation of employees
b. Corporate profits
c. Net interest
d. Proprietors' income
e. Rental income
Disposable Income = Personal Income - Personal Taxes
Personal Income = Disposable Income + Personal Taxes
Personal Income = 525 + 110
Personal Income = 635
National income = Personal Income + Social Insurance Tax + Corporate Profit Taxes + Undistributed Corporate Profits - Transfer Payments
National income = 635 + 5 + 4 + 6 - 50
National income = 600
2) INFLATION-INDEXED TREASURY BOND Assume that the U.S. economy experienced deflation during the year and that the consumer price index decreased by 1 percent in the first six months of the year and by 2 percent during the second six months of the year. If an investor had purchased inflation-indexed Treasury bonds with a par value of $10,000 and a coupon rate of 5 percent, how much would she have received in interest during the year
Answer:
She received $490.05 during the year.
Explanation:
The principal of the bond will decrease in cash of decrease in the consumer price index.
The principal can be calculated as follow
Principal Value = ( Face value x Percentage reduction in consumer price index )
For the First Six Months
Principal Value = ( $10,000 x ( 100% - 1% ) = $9,900
For the Last Six Months
Principal Value = ( $9,900 x ( 100% - 2% ) = $9,702
Now calculate the coupon payments using the following formula
Coupon payments = Principal value x Coupon rate x Time fraction
For the First Six Months
Coupon payments = $9,900 x 5% x 6/12 = $247.50
For the Last Six Months
Coupon payments = $9,702 x 5% x 6/12 = $242.55
Total Interest received = Interest received in First Six Months + Interest received in Last Six Months = $247.50 + $242.55 = $490.05
Treasury Stock Coastal Corporation issued 25,000 shares of $9 par value common stock at $21 per share and 6,000 shares of $54 par value, eight percent preferred stock at $82 per share. Later, the company purchased 3,000 shares of its own common stock at $24 per share. a. Prepare the journal entries to record the share issuances and the purchase of the common shares. b. Assume that Coastal sold 2,000 shares of the treasury stock at $30 per share. Prepare the general journal entry to record the sale of this treasury stock. c. Assume that Coastal sold the remaining 1,000 shares of treasury stock at $19 per share. Prepare the journal entry to record the sale of this treasury stock.
Answer:
Treasury Stock Coastal Corporation
a. Journal Entries:
Debit Cash $525,000
Credit Common stock $225,000
Credit Additional Paid-in Capital - Common Stock $300,000
To record the issuance of 25,000 shares of $9 par value at $21.
Debit Cash $492,000
Credit 8% Preferred Stock $324,000
Credit Additional Paid-in Capital - Preferred Stock $168,000
To record the issuance of 6,000 shares of $54 par value at $82.
Debit Treasury Stock $27,000
Debit Additional Paid-in Capital - Common Stock $45,000
Credit Cash $72,000
To record the repurchase of 3,000 shares at $24.
b. Journal Entry
Debit Cash $60,000
Credit Treasury Stock $18,000
Credit Additional Paid-in Capital - Common Stock $42,000
To record the re-issuance of 2,000 treasury shares at $30.
c. Journal Entry:
Debit Cash $19,000
Credit Treasury STock $9,000
Credit Additional Paid-in Capital - Common Stock $10,000
To record the re-issuance of 1,000 treasury shares at $19.
Explanation:
a) Data and Calculations:
Cash $525,000 Common stock $225,000 Additional Paid-in Capital - Common Stock $300,000
Cash $492,000 8% Preferred Stock $324,000 Additional Paid-in Capital - Preferred Stock $168,000
Treasury Stock $27,000 Additional Paid-in Capital - Common Stock $45,000 Cash $72,000
b. Cash $60,000 Treasury Stock $18,000 Additional Paid-in Capital - Common Stock $42,000
c. Cash $19,000 Treasury STock $9,000 Additional Paid-in Capital - Common Stock $10,000
Answer each questions.
1. Do internet search enhance our knowledge in animal/fish raising?
2. Search in the internet a picture that demonstrates a skill in harvesting/capturing animal/fish?. Paste the picture below.
Answer:
1. Yes.
2. The answer is in the attached picture
Explanation:
Yes, it is TRUE that internet searches enhance our knowledge in animal/fish raising. Due to the latest technology in gathering information through the web searches such as góóglé, people can easily find knowledge about the cultivating and harvest of animal or fish farming.
This is proven by easily getting a picture that depicts the skills in harvesting a fish in a pond or river
The Hollister Company acquires a silver mine at the cost of $1,600,000 on January 1. Along with the purchase price Hollister pays additional costs associated with development of $50,000. Hollister expects the mine will have a salvage value of $175,000 once all the silver has been mined. Best estimates are that the mine contains 250,000 tons of ore.
a. Prepare the entry to record the purchase of the silver mine.
b. Prepare the December 31 year-end adjusting entry to record depletion is 60,000 tons of ore are mined and all the ore is sold.
c. Prepare the December 31 year-end adjusting entry to record depletion is 60,000 tons of ore are mined but only 15,000 tons of the ore are sold.
Answer:
Part a
Debit : Silver Mine $1,650,000
Credit : Cash $1,650,000
Part b
Debit : Depletion expense $354,000
Credit : Accumulated depletion $354,000
Part c
Debit : Depletion expense $354,000
Credit : Accumulated depletion $354,000
Explanation:
Step 1 : Cost of the Silver Mine
Purchase Price $1,600,000
Development Costs $50,000
Total Cost $1,650,000
Step 2 : Depletion rate
Depletion rate = (Cost - Salvage value) ÷ Estimate Usage
= $5.90
Step 3 : Depletion expense
Note : Depletion expense depends on units mined only instead of units sold.
Depletion expense = Depletion rate x Units mined
if 60,000 tons of ore are mined and sold :
Depletion expense = $354,000
if 60,000 tons of ore are mined but only 15,000 tons of the ore are sold :
Depletion expense = $354,000
An investment project provides cash inflows of $1,350 per year for eight years. a. What is the project payback period if the initial cost is $4,250
Answer:
It will take 3 years and 55 days to cover the initial investment.
Explanation:
Giving the following information:
Cash flows= $1,350
Initial investment= $4,250
The payback period is the time required to cover the initial investment:
Year 1= 1,350 - 4,250= -2,900
Year 2= 1,350 - 2,900= -1,550
Year 3= 1,350 - 1,550= -200
Year 4= 1,350 - 200= 1,150
To be more accurate:
(200 / 1,350)= 0.15*365= 55 days
It will take 3 years and 55 days to cover the initial investment.
Eclipse Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, Assembly and Testing. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering using the multiple production department factory overhead rate method. The following factory overhead was budgeted for Eclipse:
Assembly Department $280,000
Testing Department 800,000
Total $1,080,000
Direct machine hours were estimated as follows:
Assembly Department 4,000 hours
Testing Department 5,000
Total 9,000 hours
In addition, the direct machine hours (dmh) used to produce a unit of each product in each department were determined from engineering records, as follows:
Commercial Residential
Assembly Department 1.5 dmh 1.0 dmh
Testing Department 3.0 2.0
Total machine hours per unit 4.5 dmh 3.0 dmh
Required:
a. Determine the per-unit factory overhead allocated to the commercial and residential motors under the single plantwide factory overhead rate method, using direct machine hours as the allocation base.
b. Determine the per-unit factory overhead allocated to the commercial and residential motors under the multiple production department factory overhead rate method, using direct machine hours as the allocation base for each department.
Answer:
A. Commercial 540
Residential 360
B. Commercial 585
Residential 390
Explanation:
a) Calculation to Determine the per-unit factory overhead allocated to the commercial and residential motors .
First step is to calculate the Plantwide overhead rate using this formula
Plantwide overhead rate =Estimated overhead /Esimated machine hours
Let plug in the formula
Plantwide overhead rate = 1080000/9000
Plantwide overhead rate = $ 120 per MH
Now let Determine the per-unit factory overhead allocated to the commercial and residential motors
Using this formula
Per -unit factory overhead allocated=Actual MH per unit *Plantwide overhead rate
Let plug in the formula
Per -unit factory overhead allocated to COMMERCIAL=4.5 dmh*120
Per -unit factory overhead allocated to COMMERCIAL=540
Per -unit factory overhead allocated to RESIDENTIAL=3.0 dmh*120
Per -unit factory overhead allocated to RESIDENTIAL=360
Therefore the per-unit factory overhead allocated to the commercial and residential motors under the single plantwide factory overhead rate method will be:
Commercial 540
Residential 360
b. Calculation to Determine the per-unit factory overhead allocated to the commercial and residential motors
First step is to calculate the Departmental overhead rate
ASSEMBLY TESTING
Estimated overhead 280,000 800,000
÷Estimated machine hours each department 4,000 5,000
=Departmental overhead rate 70 160
Now calculation the per-unit factory overhead allocated to the commercial and residential motors
COMMERCIAL RESIDENTIAL
Assembly 1.5 dmh*70=105 1.0 dmh*70=70
Testing 3.0*160= 480 2.0*160= 320
Per -unit factory overhead allocated 585 390
(105+480=585)
(70+320=390)
Therefore the per-unit factory overhead allocated to the commercial and residential motors under the multiple production department factory overhead rate method will be:
Commercial 585
Residential 390
In the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. Several theories explain how this might happen.
For example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. Consider a soybean farmer who expects a price level of 100 in the coming year. If the actual price level turns out to be 90, soybean prices will _________, and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by ____________the quantity of soybeans supplied. If other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to __________ the natural level of output in the short run. Suppose the economy's short-run aggregate supply (AS) curve is given by the following equation:
Answer:
1. A fall in prices of soybean
2. Reduce quantity she supplies
3. Falls below
Explanation:
We are to fill in the blanks here
1. In this question the farmer expected price level of 100 but the actual price realized was 90 so there would be a fall in the price of soybean.
2. If farmer feels that price of other goods caused this fall, she would reduce the quantity of soybean that she supplies
3. The quantity supplied is then going to fall below natural level in the short run
Gentleman Gym just paid its annual dividend of $3 per share, and it is widely expected that the dividend will increase by 5% per year indefinitely. a. What price should the stock sell at if the discount rate is 15%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What price should the stock sell at if the discount rate is 12%.
Answer and Explanation:
The computation of the price that should be sell is shown below:
As we know that
Price = dividend × (1 + growth rate) ÷ (discount rate - growth rate)
a. The price is
= $3 × 1.05 ÷ (15% - 5%)
= $31.50
b. Now the price is
= $3 × 1.05 ÷ (12% - 5%)
= $45
Hence, the above represent the answer in both the cases.
A public good rev: 04_09_2018 Multiple Choice generally results in substantial negative externalities. can never be provided by a nongovernmental organization. costs essentially nothing to produce and is thus provided by the government at a zero price. cannot be provided to one person without making it available to others as well.
Answer:
cannot be provided to one person without making it available to others as well.
Explanation:
A public good is a good that is non excludable and non rivalrous. It cannot be provided to one person without making it available to others as well. If one person is using it, it does not stop other people from using it also. An example of a public good is roads.
Public goods contrasts with club goods and private goods
A club good is a type of public good. It is excludable but non-rivalrous. For example paid streaming services are an example of a club good. Those who do not subscribe are excluded from using the service. But all subscribers have equal assess to the service
A private good is a good that is excludable and rivalrous.e.g. a privately owned car
Required information Skip to question [The following information applies to the questions displayed below.] The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below. Accounts Debit Credit Cash $ 10,400 Accounts Receivable 134,000 Prepaid Rent 4,400 Supplies 22,000 Equipment 240,000 Accumulated Depreciation $ 119,000 Accounts Payable 10,400 Salaries Payable 9,400 Interest Payable 3,400 Notes Payable (due in two years) 24,000 Common Stock 140,000 Retained Earnings 44,000 Service Revenue 340,000 Salaries Expense 240,000 Rent Expense 12,000 Depreciation Expense 24,000 Interest Expense 3,400 Totals $ 690,200 $ 690,200 Required: 1. Prepare an income statement for the year ended December 31, 2021.
Answer and Explanation:
The preparation of the income statement is presented below:
Service Revenue 340,000
Less:
Salaries Expense 240,000
Rent Expense 12,000
Depreciation Expense 24,000
Interest Expense 3,400
Net income $60,600
Hence, we simply deduct the expenses from the service revenue so that we get the net income
impact of increasing number on social grants may have on teenage mothers
Answer:When the number of social grants to teen mothers are increased, their social lives are impacted negatively. These teen mothers see themselves as pariahs and burdens to the society. They are likely to withdraw from social life due to the shame and low self-esteem they often experience.
Explanation:
This leads to more employment and reduces the employment rates. 3) Free education grant , especially for poor children enable them to get educated and work to earn money. Hence, unemployment is reduced.
The impact of social grants on teenage mothers is one that has brought about laziness and dependency of them on the government.
This social grant have motivated a lot of teenagers to become carefree and pregnant and there is a lot of teen mothers who drop out of school since there is social grant to answer for their needs.
What impact of social grants might have on teenage mothers?Due to the increase in the use of social grants a lot of teen mothers are said to be on the increased also.
The social lives of these teens are been impacted negatively. These teen mothers are said to be lazy and do not work and they parties and become burdens to the society.
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Bank Reconciliation On July 31, Sullivan Company's Cash in Bank account had a balance of $9,381.58. On that date, the bank statement indicated a balance of $11,828.12. A comparison of returned checks and bank advices revealed the following: Deposits in transit July 31 amounted to $4,650.03. Outstanding checks July 31 totaled $1,908.27. The bank erroneously charged a $422.50 check of Solomon Company against the Sullivan bank account. A bank service charge has not yet been recorded by Sullivan Company of $32.50. Sullivan neglected to record $5,200.00 borrowed from the bank on a ten percent six-month note. The bank statement shows the $5,200.00 as a deposit. Included with the returned checks is a memo indicating that J. Martin's check for $832.00 had been returned NSF. Martin, a customer, had sent the check to pay an account of $858.00 less a $26 discount. Sullivan Company recorded a $141.70 payment for repairs as $1,417.00 Required a. Prepare a bank reconciliation for Sullivan Company at July 31. b. Prepare the journal entry (or entries) necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation. Note: Do not round answers - enter using two decimal places, when needed.
Solution :
Sullivan's Company
Bank Reconciliation Statement, July 31
BANK BOOK
Ending balance from $11,828.12 Balance from the ledger $9,381.58
bank statement.
Add : Add :
Deposit in transit $4,650.03 Note payable borrowed $5,200
from bank
Error by bank $422.50 Error in recording payment $1275.3
$ 16,900.65 $15,856.88
Less: Less :
Outstanding checks $1,908.27 Service charge $32.50
NSF Check $832
Reconciled cash balance $ 14992.38 Reconciled cash balance $14992.38
b).
Date Accounts titles and explanations Debit($) Credit($)
July 31 Cash 5,200.00
Notes payable 5,200.00
July 31 Cash 1275.3
Repair expenses 1275.3
July 31 bank charges 32.50
Cash 32.50
July 31 Accounts receivable 832
cash 832
Molo Oil Company produces gasoline, home heating oil, and jet fuel from crude oil in a joint processing operation. Joint processing costs up to the split-off point total $385,000 per month. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Monthly Output Gasoline $ 27.00 per gallon 14,400 gallons Heating Oil $ 21.00 per gallon 22,400 gallons Jet Fuel $ 33.00 per gallon 5,600 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Product Additional Processing Costs Selling Price Gasoline $ 89,220 $ 32.80 per gallon Heating Oil $ 129,170 $ 27.80 per gallon Jet Fuel $ 60,160 $ 41.80 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point
Answer:
Molo Oil Company
The financial advantage of further processing of each of the three products beyond the split-off point is:
= $182,430
(which is the additional profit gained from the further processing).
Explanation:
Joint processing costs = $385,000 per month
Product Selling Price Monthly Output Sales Value
Gasoline $ 27.00 per gallon 14,400 gallons $388,800 ($27*14,100)
Heating Oil $ 21.00 per gallon 22,400 gallons 470,400 ($21*22,400)
Jet Fuel $ 33.00 per gallon 5,600 gallons 184,800 ($33*5,600)
Total sales value = $1,044,000
Joint costs = 385,000
Profit = $659,000
Allocation of joint processing costs of $385,000
Gasoline = $143,379 ($388,800/$1,044,000 * $385,000)
Heating Oil 173,471 ($470,400/$1,044,000 * $385,000)
Jet Fuel 68,150 ($184,800/$1,044,000 * $385,000)
Total cost $385,000
Total costs:
Additional
Joint Cost Monthly Cost Total Costs
Gasoline $143,379 $29,740 $173,119
Heating Oil 173,471 43,057 216,528
Jet Fuel 68,150 20,053 88,203
Total costs $385,000 $92,850 $477,850
Product Additional Processing Selling Price
Costs (per quarter)
Gasoline $ 89,220 $ 32.80 per gallon
Heating Oil $ 129,170 $ 27.80 per gallon
Jet Fuel $ 60,160 $ 41.80 per gallon
Product Additional Processing Selling Price
Costs (per month)
Gasoline $ 29,740 $ 32.80 per gallon
Heating Oil $ 43,057 $ 27.80 per gallon
Jet Fuel $ 20,053 $ 41.80 per gallon
Determination of profit after further processing:
Product Selling Price Monthly Output Sales Value
Gasoline $ 32.80 per gallon 14,400 gallons $462,480 ($32.80*14,100)
Heating Oil $ 27.80 per gallon 22,400 gallons 622,720 $27.80*22,400)
Jet Fuel $ 41.80 per gallon 5,600 gallons 234,080 ($41.80*5,600)
Total sales revenue = $1,319,280
Total costs = 477,850
Profit = $841,430
Financial advantage
Profit after further processing = $841,430
Profit with Joint processing = 659,000
Financial advantage = $182,430
What is the main goal of career and technical student organizations (CTSOs)? How do they help students achieve their goals?
Answer:
This is a two part question and therefore has been answered in two separate headings below.
Explanation:
Main Goal of CTSOs
Career and technical student organizations (CTSOs) goal is to strengthen student learning by using methods such as real-life applications, text book instructions, personal and leadership development skills.
This means that their work forms as an essential part of the classroom syllabus and guide, which in return helps to build student's career skills and views through taking part in these sessions and applying them in real life scenarios and/or work experience through Career program.
Help Students to Achieve their Goals
Career and technical student organizations (CTSOs) helps students achieve their goals by providing them a career path, study program and opportunities in order to gain the knowledge, skills and abilities that are needed to be successful in their career by way of CTSOs programs, events and activities.
Furthermore, they create opportunities for the students to participate in leadership level positions at local, state and national level and to take part in conferences of leadership development in order to interact with other students as wells as professionals and experienced individuals.
Answer:
The guy above is correct
Explanation:
Have a nice day man, be safe.
Another company has been offered a four-year contract to supply the computing requirements for a local bank. Assume a 14% discount rate. The working capital will be released at the end of the contract. The cash flow information is as follows: Cost of computer equipment $250,000 Working capital required $20,000 Equipment upgrade in 2 years $90,000 Equipment salvage value in 4 years $10,000 Annual net cash inflow $120,000 What is the net present value of the contract with the local bank
Answer:
$28,155.81
Explanation:
Summary of Cash flows :
Year 0 = - ($250,000 + $20,000) = - $270,000
Year 1 = $120,000
Year 2 = $120,000 - $90,000 = $30,000
Year 3 = $120,000
Year 4 = $120,000 + $10,000 + $20,000 = $150,000
Using the CFj Function of a financial calculator we have :
- $270,000 CFj 0
$120,000 CFj 1
$30,000 CFj 2
$120,000 CFj 3
$150,000 CFj 4
I/yr = 14%
Thus, the net present value of the contract with the local bank is $28,155.81
Please help with below question
A bond has $10,000 face value and 10 years to maturity. The bond promises to pay a coupon of $1,000. The bond interest is paid annually. The interest rate for similar bonds is 12%.
Required: Determine the following:
A. What is the bond’s terminal value
B. Determine the coupon rate
C. What is the maturity period
D. What is the yield to maturity
E. Determine the value of the bond
A. Terminal value: $10,000.
B. Coupon rate: 10%.
C. Maturity period: 10 years.
D. Yield to maturity: Approximately 12%.
E. Bond value: The sum of the present value of coupon payments and the present value of the face value at maturity.
A. The bond's terminal value is equal to its face value, which is $10,000. This represents the amount that the bondholder will receive at maturity.
B. To determine the coupon rate, we divide the annual coupon payment by the face value of the bond and multiply by 100%. In this case, the annual coupon payment is $1,000 and the face value is $10,000.
Coupon Rate = ($1,000 / $10,000) * 100% = 10%
C. The maturity period of the bond is given as 10 years. This means that the bond will reach its full term and the bondholder will receive the face value of $10,000 at the end of the 10-year period.
D. The yield to maturity (YTM) is the total return anticipated on a bond if it is held until it matures. It is the internal rate of return (IRR) of the bond's cash flows. Calculating the YTM requires finding the discount rate that equates the present value of the bond's cash flows to its current market price. In this case, the bond's coupon payments are $1,000 per year for 10 years, and the terminal value is $10,000.
Using a financial calculator or spreadsheet software, we can find that the yield to maturity is approximately 12%.
E. To determine the value of the bond, we need to calculate the present value of the bond's future cash flows. The cash flows consist of the annual coupon payments of $1,000 and the terminal value of $10,000. We discount these cash flows back to the present using the yield to maturity as the discount rate.
Using a financial calculator or spreadsheet software, we can calculate the present value of the cash flows. The value of the bond is the sum of the present values of the coupon payments and the present value of the terminal value.
Assuming a 12% yield to maturity, we find that the value of the bond is approximately $10,000, which is equal to its face value. This indicates that the bond is trading at par value, as the market price matches its face value.
It's important to note that bond valuation can be more complex when considering factors such as market conditions, risk, and different compounding periods for coupon payments. The provided calculation assumes an annual coupon payment and a simple discounting method using the yield to maturity as the discount rate.
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Milford Company sells a motor that carries a three-month unconditional warranty against product failure. Based on a reliable statistical analysis, Milford knows that between the sale and the end of the product warranty period, two percent of the units sold will require repair at an average cost of $50 per unit. The following data reflect Milford's recent experience:
Oct Nov Dec Dec 31 Total
Units unsold 24000 26000 26000 76000
Known products failure from sales in:
October 130 190 170 490
November 130 220 350
December 210 210
Calculate, and prepare a journal entry to record, the estimated liability for product warranties at December 31. Assume that warranty costs of known failures have already been reflected in the records.
Answer: See explanation
Explanation:
Number of units sold = 76000
Percentage repair= 2%
Estimated defective units = Percentage repair × Units sold = 2% × 76000 = 1520
Actual defective units = 490 + 350 + 210 = 1050
Unclaimed warranty = Estimated defective units - Actual defective units = 1520 - 1050 = 470
Repair cost = $50
Warranty expense = 470 × $50 = $23500
The journal entry will then be:
31 December:
Debit: Product warranty expense = $23500
Credit: Estimated liability for product warranty = $23500
Production costs chargeable to the Finishing Department in May at Kim Company are materials $7,700, labor $19,700, overhead $18,289, and transferred-in costs $66,801. Equivalent units of production are materials 20,300 and conversion costs 18,900. Kim uses the FIFO method to compute equivalent units. Compute the unit costs for materials and conversion costs. Transferred-in costs are considered materials costs. (Round answers to 2 decimal places, e.g. 2.25.) Materials cost per unit $ 5.54 Conversion cost per unit $
Answer and Explanation:
The computation of the unit cost for material and conversion cost is shown below:
Material Cost per Unit is
= Total Material Cost ÷ Equivalent Units for Materials
,= ($7,700 + $66,801) ÷ (20,300 units)
= $3.67 per unit
And, the conversion cost per unit is
= (labor cost + overhead cost) ÷ equivalent units for conversion
= ($19,700 + $18,289) ÷ 18,900 units
= $2.01 per unit
The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget:
Data Year 2 Quarter Year 3 Quarter
1 2 3 4 1 2
Budgeted unit sales 45,000 70,000 120,000 75,000 80,000 90,000
Selling price per unit $7
Accounts receivable,
beginning balance $65,000
Sales collected in the
quarter sales are made 75%
Sales collected in the quarter
after sales are made 25%
Desired ending finished
goods inventory is 30% of the
budgeted unit sales
of the next quarter
Finished goods
inventory, beginning 12,000 units
Raw materials required
to produce one unit 5 pounds
Desired ending inventory
of raw materials is 10% of the next
quarter's production
needs
Raw materials
inventory, beginning 23,000 pounds
Raw material costs $0.80 per pound
Raw materials
purchases are paid 60% in the quarter the
purchases are made and
40% in the quarter
following purchase
Accounts payable for
raw materials, beginning
balance $81,500
A. What are the total expected cash collections for the year under this revised budget?
B. What is the total required production for the year under this revised budget?
C. What is the total cost of raw materials to be purchased for the year under this revised budget?
D. What are the total expected cash disbursements for raw materials for the year under this revised budget?
E. After seeing this revised budget, the production manager cautioned that due to the current production constraint, a complex milling machine, the plant can produce no more than 90,000 units in any one quarter. Is this a potential problem?
Answer:
Year 2
A. Total expected cash collections $2,077,500
B. Total required production 312,000 units
C. Total cost of raw materials to be
purchased for the year $1,262,800
D. Total expected cash disbursements for raw materials = $1,220,860
E. There is a potential problem in quarter 3. This can be resolved by producing more units in the previous quarters.
Explanation:
a) Data and Calculations:
Old selling price per unit = $8
New selling price per unit = $7
Year 2 Year 3
Quarter Quarter
1 2 3 4 1 2
Budgeted
unit sales 45,000 70,000 120,000 75,000 80,000 90,000
Sales $315,000 $490,000 $840,000 $525,000 $560,000 $630,000
Accounts receivable, beginning balance = $65,000
Desired ending finished goods inventory is 30% of the budgeted unit sales of the next quarter
Finished goods inventory, beginning = 12,000 units
Raw materials required to produce one unit = 5 pounds
Desired ending inventory of raw materials = 10% of the next quarter's production needs
Raw materials inventory, beginning = 23,000 pounds
Raw material costs $0.80 per pound
Raw materials payments:
60% in the quarter purchases are made
40% in the quarter following purchase
Accounts payable for raw materials, beginning balance = $81,500
1 2 3 4 Total
Cash collections
Sales collected:
75% in the quarter $236,250 $367,500 $367,500 $630,000 $1,601,250
25% second quarter 65,000 78,750 122,500 210,000 476,250
Total collections $301,250 $446,250 $490,000 $840,000$2,077,500
Production budget:
Year 2 Year 3
Quarter Quarter
1 2 3 4 1 2
Budgeted unit sales 45,000 70,000 120,000 75,000 80,000 90,000
Ending inventory 21,000 36,000 22,500 24,000 27,000
Goods available 66,000 106,000 142,500 99,000 107,000
Beginning inventory 12,000 21,000 36,000 22,500 24,000
Production units 44,000 85,000 106,500 76,500 83,000
Total production units for the year = 312,000 units
(44,000 + 85,000 + 106,500 + 76,500)
Purchase of raw materials:
Year 2 Year 3
Quarter Quarter
1 2 3 4 1
Production units 44,000 85,000 106,500 76,500 83,000
Ending inventory 42,500 53,250 38,250 41,500
Raw materials needs 220,000 425,000 532,500 382,500 415,000
Raw materials available 262,500 478,250 570,750 424,000
Beginning inventory 23,000 42,500 53,250 38,250 41,500
Purchases 239,500 435,750 517,500 385,750
Purchase costs $191,600 $348,600 $414,000 $308,600
Total purchases = $1,262,800
Cash Disbursements for raw materials:
Year 2 Year 3
Quarter Quarter
1 2 3 4 1
60% in the quarter $114,960 $209,160 $248,400 $185,160
40% in the ffg quarter 81,500 76,640 139,440 165,600
Total disbursements $196,460 $285,800 $387,840 $350,760
Total expected cash disbursements for raw materials = $1,220,860
g Assume that a hypothetical economy with an MPC of 0.8 is experiencing severe recession. Instructions: In part a, round your answers to 2 decimal places. Enter your answers as positive numbers. In part b, enter your answers as whole numbers. a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion
Answer: $5 billion
Explanation:
First find the spending multiplier which is a multiplier that shows how Aggregate demand increases as a result of additional spending.
Multiplier = 1 / (1 - Marginal propensity to consume)
= 1 / ( 1 - 0.8)
= 5
If the government wants to raise Aggregate demand by $25 billion, they should spend:
Increase in AD = Amount * Multiplier
25 billion = Amount * 5
Amount = 25 / 5
= $5 billion
The four career pathways in Finance are
Banking and Related Services, Insurance Services, Retail Sales, and Business Financial Management.
Securities Law, Insurance Services, Financial and Investment Planning, and Business Financial Management.
Banking and Related Services, Retail Sales, Securities Law, and Business Financial Management.
Banking and Related Services, Insurance Services, Financial and Investment Planning, and Business Financial Management.
Answer:
Banking and Related Services, Insurance Services, Financial and Investment Planning, and Business Financial Management.
Answer: A.
Explanation:
Paola and Isidora are married; file a joint tax return; report modified AGI of $148,000; and have one dependent child, Dante. The couple paid $12,000 of tuition and $10,000 for room and board for Dante (a freshman). Dante is a full-time student and claimed as a dependent by Paola and Isidora. Determine the amount of the American Opportunity credit for 2020.
Answer:
$2,500
Explanation:
The computation of the amount is shown below;
In the case when the modified AGI upto $180,000 so it would be credit by $2,500 per eligible student
As we can see that in the given situation there is modified AGI that reported $148,000 so here the amount of the American Opportunity credit for 2020 is $2,500 also we assume that the eligibility condition would be satisfied
How can life expectancy and literacy rates affect the quality of labor in the economy?
Answer:
I think it'll affect in a negative way cuz...
Explanation:
if life expectancy is higher than literacy rates then we have more ppl to provide for therefore more labour must be done but since the literacy rates are lower, not many ppl will be literate therefore no labour can be done!
Journalizing Payroll Transactions On December 31, the payroll register of Hamstreet Associates indicated the following information: Wages and Salaries Expense $9,500.00 Employee Federal Income Tax Payable 960.00 United Way Contributions Payable 150.00 Earnings subject to Social Security tax 8,800.00 Use Social Security 6.2% and Medicare 1.45% as specified in the text. 1. Determine the amount of Social Security and Medicare taxes to be withheld. If required, round your answers to the nearest cent.
Answer:
Social Security tax
= Social security tax rate * Earnings subject to Social security tax
= 6.2% * 8,800
= $545.60
Medicare taxes.
These will be on the total earnings as there is no limit to the amount it can be applied to:
= 1.45% * 9,500
= $137.75
Quantitative Problem 3: Assume today is December 31, 2019. Imagine Works Inc. just paid a dividend of $1.35 per share at the end of 2019. The dividend is expected to grow at 18% per year for 3 years, after which time it is expected to grow at a constant rate of 5.5% annually. The company's cost of equity (rs) is 9.5%. Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2019)
Answer:
The price of the company's stock today (December 31, 2019) is $49.27.
Explanation:
Note: See the attached file for the calculation of present values (PV) for year 1 to 3 dividends.
From the attached excel file, we have:
Previous year dividend in year 1 = Dividend just paid = $1.35
Total of dividends from year 1 to year 3 = $4.71193752458119
Year 3 dividend = $2.2180932
Therefore, we have:
Year 4 dividend = Year 3 dividend * (100% + Constant dividend growth rate) = $2.2180932 * (100% + 5.5%) = $2.340088326
Share price at year 3 = Year 4 dividend / (Cost of equity - Constant dividend growth rate) = $2.340088326 / (9.5% - 5.5%) = $58.50220815
PV of share price at year 3 = Share price at year 3 / (100% + Cost of equity)^Number of years = $58.50220815 / (100% + 9.5%)^3 = $44.55843215078
Therefore, we have:
The price of the company's stock today = Total of dividends from year 1 to year 3 + PV of share price at year 3 = $4.71193752458119 + $44.55843215078 = $49.27
Unbanked Partner #1
1. I've had terrible customer service at the banks I've been into, so I don't like them and I
don't trust them. I'm certainly not leaving my money with them,
Being unbanked has become an increasingly common situation for many individuals in recent years. An unbanked person is someone who has no financial account with any institution. Individuals may choose to be unbanked for a variety of reasons, including a lack of trust in banks due to poor customer service or a negative experience.
A person may have experienced a bad encounter with a bank employee and choose to leave the bank and seek other banking options. They may also be unable to maintain a minimum balance in their bank account, and banks may impose fees for accounts that fall below a certain amount. It can be inconvenient to have to travel to a bank to withdraw money, especially if the nearest bank is far away. Additionally, the time spent waiting in line at a bank can be tedious, and it can be difficult to fit into a busy schedule.
There are alternatives to traditional banks that may be more convenient and better suit the needs of unbanked individuals. Credit unions, for example, offer similar services as banks but are often smaller and more focused on serving the community. Mobile banking apps have also become increasingly popular, offering services such as depositing checks and transferring money.
The use of prepaid debit cards is another option that allows for the convenience of a card without the need for a traditional bank account. The unbanked may also benefit from budgeting tools and financial literacy resources, which can help them make informed financial decisions and take control of their finances. Overall, being unbanked does not mean that an individual cannot access financial services or manage their money effectively.
For more such questions on unbanked
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Essence of Skunk Fragrances Calculate the average collection period. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What is the receivables turnover? (Use 365 days a year. Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) What is the amount of the company’s average receivables? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
1. Average collection period 41.25 days
2. Receivable Turnover 8.84848485
3. Average Receivable $521,558.22
Explanation:
1. Calculation for Average collection period
First step is to calculate the Percentage of customers not receiving discounts
Percentage of customers not receiving discounts = 100% - 65%
Percentage of customers not receiving discounts= 35%
Now let calculate Average collection period
Average collection period = (65% * 15) + (35% *90)
Average collection period = 9.75 + 31.5
Average collection period= 41.25 days
Therefore the Average collection period is 41.25 days
2. Calculation to determine the Receivable Turnover using this formula
Receivable Turnover = 365 / Average collection period
Let plug in the formula
Receivable Turnover = 365/41.25
Receivable Turnover = 8.84848485
Therefore the Receivable Turnover is 8.84848485
3. Calculation to determine the amount of the company’s average receivables
First step is to calculate the Total Credit Sales
Total Credit Sales = $6,500 * $710
Total Credit Sales= $4,615,000
Now let calculate the Average Receivable using this formula
Average Receivable =Credit sales / Receivable turnover
Let plug in the formula
Average Receivable= $4,615,000 /8.84848485
Average Receivable= $521,558.22
Therefore Average Receivable is $521,558.22
GYAO Inc.'s bonds currently sell for $1,275. They pay a $80 annual coupon, have a 25-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,080. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between this bond's YTM and its YTC? (Subtract the YTC from the YTM; it is possible to get a negative answer.)
Answer: 2.46%
Explanation:
To solve this, we need to know the yield to call which will be:
FV = Call price = -$1,080.00
PV = Bond price = $1,275.00
PMT = Coupon = -$80.00
N = 5
Using financial maturity, the yield to call will be:
= Rate(5,80,-1275,1000) = 3.42%
The yield to maturity will be:
FV = Face value = -$1,000.00
PV = Bond price = $1,275.00
PMT = -$80.00
N = 25
Using the financial calculator
Yield to maturity = Rate(25,80,-1275,1000) = 5.87%
The difference between the yield to call and the yield to maturity will then be:
= 3.42% - 5.87%
= -2.46%