Answer:
Income Statement Sales 9,00,000 Cost of goods sold 5,80,000 Gross profit 3,20,000 Salaries expense 3,90,000 Rent expense 2,40,000 Utilities expense 38,000 Loss from operations -3,48,000 Interest expense -59,400 Net loss -4,07,400 KI
Explanation:
Purchased $190,000 of store equipment, paying $51,000 in cash and agreeing to Paid the entire $139,000 owed for store equipment and $600,000 of the amount due to suppliers for credit purchases previously recorded. pay the difference within 90 days. that make it a way to create sales.
An oligopolistic market structure is distinguished by several characteristics, one of which is difficult entry because barriers are significant. What are some other characteristics of this market structure? Check all that apply. Market control by a few large firms Either homogeneous or differentiated products Interdependence among firms Neither interdependence nor dependence among firms Market control by many small firms
Answer:
Market control by a few large firms Either homogeneous or differentiated products Interdependence among firmsExplanation:
An Oligopolistic market structure is very concentrated which means that it is controlled by a few large firms who can decide to collude to influence market prices.
There is interdependence among the firms as the pricing decision of one firm affects the rest because it could either increase or decrease the market share that each firm enjoys. e.g. if one firm charges a lower price and the other firms don't, the lower price company will gain market share.
The goods sold in this market are either homogeneous or differentiated products which is why there is so much interdependence because products can be substituted.
Relevance has always been the challenge of the advertising industry. Summarize Kristi Roger's assessment of the advertising industry in her Ted Talk. Considering her hypothesis and results, what are some implications for marketing managers as they seek to improve the ROI of marketing expenditures on all forms of marketing communications
Answer:
Advertising is a paid sort of promotion utilized by organizations for product promotion, hence being of a vital usage and a significant part in organizations. The achievement of any firm is reliant on the correct sort of advertising channels utilized.
Explanation:
In her Ted talk, it is clear Kristi Roger had conducted an extraordinary advertising analysis, in this way contending that relevance is a fundamental factor assuming an enormous part in advertising. She contends that the planned message of promotion should contact the perfect person at the perfect time. To guarantee this assertion is accomplished, an advertiser has the obligation to utilize the correct technology undeniably to make a pertinent directive for the correct crowd.
In addition, marketing managers are obligated to recognize the significant challenges in the market. They ought to get updated changes occurring in the market to stay away from any significant impacts on the Return On Investment (ROI).
To profit more from advertising, marketing managers should recruit the ideal person who is acceptable in quantitative skills rather than creative skills in light of the fact that the market analysis is of more significance than benefiting creative products into the market. A person with extraordinary quantitative skills can examine the market situations appropriately, henceforth s/he can dispose of a portion of the cycles that occur in computerized crusade improvement. To carry extraordinary outcomes to the organization, quantitative specialists guarantee important advertisements contact the perfect person at the perfect time.
Ziva is an organic brocolli farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $40 an hour for her home-organization services. One spring day, Ziva spends 9 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of brocolli.
Required:
What is the total opportunity cost of the day that Farmer Ziva spent in the field planting brocolli?
Answer:
$790
Explanation:
$300 --- ($40 * 9 hours) + 130
Add
300 + 130
430
Then, multiply
40 and 9
= 360.
Therefore, Add the results together to get your answer, which is $790
Which tasks are common to all Education and Training career pathways? assessing students on learning and approving budgets communicating with schools and families and enforcing rules that govern behavior teaching students and collaborating with teachers on instructional content developing instructional content for teachers and assessing student learning through exams
The tasks associated with Education and Training career pathways is communicating with schools and families.
What is a career pathways?Career pathways serves as a profession path that individuals choose to follow in the rest of his life.
Therefore, second option is correct because going along Education and Training career pathways ,enforcing rules that govern behavior teaching is needed
Learn more about career pathways at;
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The definition of environmentalism is_____.
A) Company policies aimed at curbing air and water pollution and over-harvesting of forest
B) The study of geology and how climate and to rain affect the evolution of societies
C) A worldwide movement that began in the 1970s and whose purpose is to protect the air, land, and water
D) The study of how children are affected more strongly by their environment than they are by heredity
Answer:
C
Explanation:
because of the word "environmentalism" which gives meaning and purpose to the term as a group or movement.
The customer-service department at Park-E Bank complains it is unable to keep track of its new business clients as the department handling data compilation has failed to enable a free exchange of information between the two departments. This has hindered the customer-service department to follow up on its customers' queries and update their relationship status with the bank. This has also impacted the department's sales target. This scenario exemplifies conflict due to
Answer:
task interdependence
Explanation:
Task interdependence is a form of conflict that occurs when there is more than one department needed to complete a task, and when one of them fails, consequently the other is affected and the task is not completed effectively. This is the case of Park-E Bank, which complains that it is unable to keep up with its new commercial customers, as the department that deals with the compilation of data has failed to allow the free exchange of information between the two departments.
The interdependence of tasks is a conflict that affects organizational activities as a whole, and can bring essential problems for the correct flow of business, it is necessary then that there is a correct management, control and coordination of tasks to reduce the bottlenecks found in organizational processes and improve continuous improvement that is beneficial for all organizational systems to operate correctly.
Ivanhoe Inc. uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $383500 ($584000), purchases during the current year at cost (retail) were $3208000 ($4993600), freight-in on these purchases totaled $149500, sales during the current year totaled $4466000, and net markups were $404000. What is the ending inventory value at cost? Hint: Round intermediate calculation to 3 decimal places, e.g. 0.635 and final answer to 0 decimal places.
Answer:
$962406
Explanation:
Calculation to determine the ending inventory value at cost
Ending inventory value at cost=
($584000 + $4993600 + $404000 - $4466000)
*[($383500 + $3208000 + $149500) ÷ ($584000 + $4993600 + $404000)]
Ending inventory value at cost=$1,515,600*($3,741,000÷$5,891,600)
Ending inventory value at cost=$1,515,600*0.635
Ending inventory value at cost=$962406
Therefore the ending inventory value at cost is $962406
Strategic trade policy Suppose there are only two producers of aircraft in the world, AirCraft in the United States and AirEurope in the European Union. The following hypothetical payoff matrices show the profits (in millions of dollars) for each company. In the absence of subsidies, if only one company makes aircraft, it receives a profit of $90 million. If both companies decide to produce, they each lose $2 million, when a company decides not to produce, it earns zero profit.
Air Europe
Produce Not Produce
AirCraft Produce 2,-2 90,0
Not Produce 0,90 0, 0
Suppose that the European Union considers aircraft a strategic industry and gives AirEurope a $9 million subsidy if it produces
Fill in the cells of the following payoff matrix to reflect the $9 million subsidy
AirEurope
Produce Not Produce
AirCraft Produce
Not Produce
With a $9 million subsidy, regardless of whether AirCraft produces or not, AirEurope----------- produce if it wants to maximize its profit.
Because AirEurope will enter the market if given a $9 million subsidy, AirCraft should also produce in this industry.
a. True
b. False
Answer:
Air Europe should produce aircrafts
a. True
Explanation:
Air Europe has payoff matrix which will maximize the profits if it chooses to produce air crafts. The airline will be able to earn 90 million if it chooses to produces and will loose 2 million if chooses not to produce. There is subsidy of $9 million which is a plus for Air Europe therefore it should produce aircrafts.
Which of the following statements is CORRECT?
a. Suppose you are managing a stock portfolio, and you have information that leads you to believe the stock market is likely to be very strong in the immediate future. That is, you are convinced that the market is about to rise sharply. You should sell your high-beta stocks and buy low-beta stocks in order to take advantage of the expected market move.
b. Collections Inc. is in the business of collecting past-due accounts for other companies, i.e., it is a collection agency. Collections' revenues, profits, and stock price tend to rise during recessions. This suggests that Collections Inc.'s beta should be quite high, say 2.0, because it does so much better than most other companies when the economy is weak.
c. Suppose the returns on two stocks are negatively correlated. One has a beta of 1.2 as determined in a regression analysis using data for the last 5 years, while the other has a beta of %u22120.6. The returns on the stock with the negative beta must have been negatively correlated with returns on most other stocks during that 5-year period.
d. If the market risk premium remains constant, but the risk-free rate declines, then the required returns on low-beta stocks will rise while those on high-beta stocks will decline.
e. You think that investor sentiment is about to change, and investors are about to become more risk averse. This suggests that you should rebalance your portfolio to include more high-beta stocks
Answer: C. Suppose the returns on two stocks are negatively correlated. One has a beta of 1.2 as determined in a regression analysis using data for the last 5 years, while the other has a beta of %u22120.6. The returns on the stock with the negative beta must have been negatively correlated with returns on most other stocks during that 5-year period.
Explanation:
From the options given, the correct option is option C "Suppose the returns on two stocks are negatively correlated. One has a beta of 1.2 as determined in a regression analysis using data for the last 5 years, while the other has a beta of %u22120.6. The returns on the stock with the negative beta must have been negatively correlated with returns on most other stocks during that 5-year period".
Option A is wrong because when there is information that a particular stock will be strong in the future, one should not sell your high-beta stocks and buy low-beta stocks rather the low best stocks should be sold and high beta stocks should be bought.
Option B is wrong because during recession, collections' revenues, profits, and stock price tend to fall and not rise. During recession, there is decrease in economic growth, unemployment and other negative effects in the economy.
Option D and E are wrong as well as the reverse is the case in both situations. The correct option is C.
From the perspective of corporate management, the use of budgetary slack ______________ (chapter 13) A. increases the effectiveness of the corporate planning process B. increases the ability to identify potential budget weaknesses C. encourages the use of effective corrective actions D. increases the likelihood of inefficient resource allocation
Answer:
D. Increases the likelihood of inefficient resource allocation
Explanation:
Budgetary slack can be regarded as under-estimation of budgeted revenue which comes deliberately , and it could be over-estimation of budgeted expenses. It should be noted that From the perspective of corporate management, the use of budgetary slack Increases the likelihood of inefficient resource allocation
Journalizing Purchases Transactions
Journalize the following transactions in a general journal:
May 3 Purchased merchandise from Reed, $6,780. Invoice No. 321, dated May 1,
terms n/30.
9 Purchased merchandise from Omana, $2,550. Invoice No. 614, dated May
8, terms 2/10, n/30.
18 Purchased merchandise from Yao Distributors, $2,100. Invoice No. 180,
dated May 15, terms 1/15, n/30.
23 Purchased merchandise from Brown, $5,240. Invoice No. 913, dated May
22, terms 1/10, n/30.
Answer:
May 3
Dr Purchases $6,780
Cr Accounts Payable/Reed $6,780
Invoice No. 321
May 9
Dr Purchases $2,550
Cr Accounts Payable/Omana $2,550
Invoice No. 614
May 18
Dr Purchases $2,100
Cr Accounts Payable/Yao Distributors $2,100
Invoice No. 180
May 22
Dr Purchases $5,240
Cr Accounts Payable/Brown $5,240
Invoice No. 913
Explanation:
Preparation of the purchase transactions in a general journal
May 3
Dr Purchases $6,780
Cr Accounts Payable/Reed $6,780
Invoice No. 321
May 9
Dr Purchases $2,550
Cr Accounts Payable/Omana $2,550
Invoice No. 614
May 18
Dr Purchases $2,100
Cr Accounts Payable/Yao Distributors $2,100
Invoice No. 180
May 22
Dr Purchases $5,240
Cr Accounts Payable/Brown $5,240
Invoice No. 913
Members of Generation Z are most likely to influence? Furniture design. B) health and insurance. C) retirement plans. D) e-textbooks E) furniture design?
Answer:
e textbooks due to the fact internet and technological processes tend to be our motif
Explanation:
The Tradition Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.4 percent per period. Based on the following information, what is the break-even price per unit that should be charged under the new credit policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Price per unit Cost per unit Unit sales per month
Current Policy $ 93 $ 44 2.675
New Policy ? $ 44 2,750
Answer:
The Tradition Corporation
The break-even price per unit that should be charged under the new credit policy is $95.23.
Explanation:
a) Data and Calculations:
Required rate of return = 2.4% per period
Price Cost Unit Sales Total Sales Total Cost
per unit per unit per month Revenue
Current Policy $ 93 $ 44 2,675 $248,775 $117,700
New Policy ? $ 44 2,750
New price = $93 * 1.024 = $95.23
b) The new price of $95.23 with the required rate of return will ensure that revenue is not lost as a result of the new credit policy. This implies that all things being equal, The Tradition Corporation would still be in a position to make the normal revenue that it was making under the cash policy.
Wings Co. budgeted $570,000 manufacturing direct wages, 3,000 direct labor hours, and had the following manufacturing overhead:
Overhead Cost Budgeted Budgeted Level for Overhead
Pool Overhead Cost Driver Cost Driver
Cost
Materials handling $188,000 4,700 pounds Weight of materials
Machine setup 21,600 540 setups Number of setups
Machine repair 1,260 31,500 machine
hours Machine hours
Inspections 12,400 310 inspections Number of inspections
Requirements for Job 971 which manufactured 4 units of product:
Direct labor 20 hours
Direct materials 130 pounds
Machine setup 30 setups
Machine hours $15.000 machine hours
Inspections 15 inspections
1. Using ABC, overhead cost assigned to Job #971 for machine setup is:____.
a. $2,300.
b. $990.
c. $6,500.
d. $690.
e. $1,020 .
2. Using ABC, overhead cost assigned to Job #971 for machine repair is:____.
a. $2,300.
b. $990.
c. $6,500.
d. $690.
e. $1,020.
Answer:
Results are below.
Explanation:
First, we need to calculate the allocation rates:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine setup= 21,600/540= $40 per setup
Machine repair= 1,260/31,500= $0.04 per machine hour
Now, we can allocate costs to Job 971:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Machine setup= 40*30= $1,200
Machine repair= 0.04*15,000= $600
A firm has the following production relationship between labor and output, for a fixed capital stock.
Libor
0
1
Output
0
5
2
3
4
5
19
23
26
According to the above table saatis the average product of labor when three laborers are employed?
03
Answer:
12 i think but what are the answer choices.
Explanation:
Pinacle Corp. budgeted $350,000 of overhead cost for the current year. Actual overhead costs for the year were $325,000. Pinacle's plantwide allocation base, machine hours, was budgeted at 50,000 hours. Actual machine hours were 40,000. A total of 10,000 units was budgeted to be produced and 9,800 units were actually produced. Pinacle's plantwide factory overhead rate for the current year is: Group of answer choices
Answer:
Pinacle Corp.
Pinacle's plantwide factory overhead rate for the current year is:
= $7 per machine hour.
Explanation:
a) Data and Calculations:
Budgeted overhead cost for the current year = $350,000
Actual overhead costs for the year = $325,000
Plantwide allocation base, machine hours = 50,000
Actual machine hours = 40,000
Budgeted production units = 10,000
Actual production units = 9,800
The plantwide factory overhead rate for the current year is:
= Budgeted overhead cost/Budgeted machine hours
= $350,000/50,000 = $7 per machine hour
Allocated overhead = 40,000 * $7 = $280,000
Under-absorbed overhead = $45,000 ($325,000 - $280,000)
The total cost of producing q units of a certain product is described by the function C = 4,000,000 + 300q + 0.01q2 where C is the total cost stated in dollars. (1) How many units should be produced in order to minimize the average cost per unit? (2) What is the minimum average cost per unit? (3) What is the total cost of production at this level of output? Make sure to include appropriate units.
Answer:
(1) 20,000 units should be produced in order to minimize the average cost per unit.
(2) The minimum average cost per unit is $700 per unit.
(3) The total cost of production at this level of output is $14,000,000.
Explanation:
The given total cost function is correctly stated as follows:
C = 4,000,000 + 300q + 0.01q^2 …………………………… (1)
(1) How many units should be produced in order to minimize the average cost per unit?
AC = Average cost per unit = C / q
Substituting for C from equation (1), we have:
AC = (4,000,000 + 300q + 0.01q^2) / q …………………. (2)
Marginal cost can be obtained by taking the derivative of equation (1) as follows:
MC = C’ = 300 + (2 * 0.01)q
MC = 300 + 0.02q …………………………………………. (3)
AC is minimum when MC = AC. Therefore, equate equations (2) and (3) and solve for q as follows:
300 + 0.02q = (4,000,000 + 300q + 0.01q^2) / q
(300 + 0.02q)q = 4,000,000 + 300q + 0.01q^2
300q + 0.02q^2 = 4,000,000 + 300q + 0.01q^2
300q + 0.02q^2 - 300q - 0.01q^2 = 4,000,000
0.01q^2 = 4,000,000
q^2 = 4,000,000 / 0.01
q^2 = 400,000,000
q = 400,000,000^(1/2)
q = 20,000 units
Therefore, 20,000 units should be produced in order to minimize the average cost per unit.
(2) What is the minimum average cost per unit?
Substituting q = 20,000 into equation (2), we have:
AC = (4,000,000 + (300 * 20,000) + (0.01 * 20,000^2)) / 20,000
AC = $700 per unit
Therefore, the minimum average cost per unit is $700 per unit.
(3) What is the total cost of production at this level of output?
Substituting q = 20,000 into equation (1), we have:
C = 4,000,000 + (300 * 20,000) + (0.01 * 20,000^2)
C = $14,000,000
Therefore, the total cost of production at this level of output is $14,000,000.
Consider the following statements when answering this question I. Increases in the demand for a good, which is produced by a competitive industry, will raise the short-run market price. II. Increases in the demand for a good, which is produced by a competitive industry, will raise the long-run market price. I is true, and II is false. I and II are true. I is false, and II is true. I and II are false.
Answer:
I and II are true
Explanation:
I. Increases in the demand for a good, which is produced by a competitive industry, will raise the short-run market price
In the short run of the competitive industry when the market demand for goods rises then the price of these goods will also increase. This is because the price equals marginal revenue. Therefore, when price rises then marginal revenue will increase and as a result, the marginal cost curve moves up and firms produce more quantity of goods. This statement is therefore true.
II. Increases in the demand for a good, which is produced by a competitive industry, will raise the long-run market price
The effect of the increase in goods demand is the same in the long run of the competitive industry as it is in the short run. Therefore, a rise in demand would raise the price of the goods above ATC (Average Total Cost). Hence, the above statement is also true.
Perez Modems has excess production capacity and is considering the possibility of making and selling paging equipment. The following estimates are based on a production and sales volume of 2,200 pagers. Unit-level manufacturing costs are expected to be $32. Sales commissions will be established at $2.20 per unit. The current facility-level costs, including depreciation on manufacturing equipment ($72,000), rent on the manufacturing facility ($62,000), depreciation on the administrative equipment ($15,600), and other fixed administrative expenses ($77,950), will not be affected by the production of the pagers. The chief accountant has decided to allocate the facility-level costs to the existing product (modems) and to the new product (pagers) on the basis of the number of units of product made (i.e., 6,200 modems and 2,200 pagers). Required a. Determine the per-unit cost of making and selling 2,200 pagers. (Do not round intermediate calculations. Round your answer to 3 decimal places.) b. Assuming the pagers could be sold at a price of $46 each, should Perez make the pagers
Answer and Explanation:
a. The computation of the per unit cost is shown below:
= Manufacturing cost per unit + sales commission per unit
= $32 + $2.20
= $34.20
Here we just add the two cost so that the per unit cost could come
b. Yes it should make the pagers as the cost per unit would be lower than the selling price i.e, $46
Therefore the above should be relevant for the given situation
In its first year of operations, Crane Company recognized $31,700 in service revenue, $7,700 of which was on account and still outstanding at year-end. The remaining $24,000 was received in cash from customers. The company incurred operating expenses of $16,600. Of these expenses, $12,690 were paid in cash; $3,910 was still owed on account at year-end. In addition, Crane prepaid $3,260 for insurance coverage that would not be used until the second year of operations.
Required:
Calcuate the first year's net earnings under the cash basis of accounting, and calculate the first years net earnings under the accrual basis of accouriting.
Answer:
Under the cash basis, expenses and revenue are recorded in the period the cash is received or spent.
Under the Accrual basis, expenses and revenue are recorded in the period incurred.
Under Cash basis:
= Cash Revenue - cash expenses - Prepaid expenses
= 24,000 - 12,690 - 3,260
= $8,050
Under Accrual basis:
= Revenue for the year - Expenses for the year
= 31,700 - 16,600
= $15,700
quarter of employees in the US do not trust their employers, and only about 50% of them believe that their bosses are open with them.
True
False
YZ Company is rethinking the way it ships to its 62 customers in another city 220 miles away.
Current Shipping/Delivery Method
They currently hire an LTL (less-than-truckload) carrier to pick up and deliver these shipments. Each customer order shipped via LTL carrier costs $147.
Alternate Shipping/Delivery Method
A 3PL (third-party logistics provider) has approached XYZ Company and suggested that they make full truckload (TL) shipments from their facility to the 3PL's warehouse in the customers' city. The 3PL would then break the bulk shipment (TL or truckload shipment) into individual customer orders to be shipped locally by an LTL carrier. The relative data for this alternate shipping method are as follows:
Full TL shipment cost (220 miles) = $675
Average order weight = 750 lbs.
Warehouse break-bulk fee (per 100 lbs., a.k.a. per "hundred weight") = $13
Local LTL delivery fee = $36
1. What is the total cost of delivering to all customers via LTL carrier (current method
R=_______.
2. How much money would XYZ company save by using the alternate shipping/delivery method?
R=______.
3. At what number of customers would the cost of these two methods be the same?
R=______.
Answer:
1. Total cost of customer order shipped via LTL carrier is $9,114.
2. XYZ company would save $162 by using the alternate shipping/delivery method.
3. The cost of these two methods would be the same when the number of customers is approximately 6.
Explanation:
To ease answering the question, let us first the define as follows:
N = Number of customers = Number of Order
A = Each customer order shipped via LTL carrier costs = $147
B = Average order weight = 750
C = Warehouse break-bulk fee per hundred weight = 13
D = Total cost of weight = ((N * B) / 100) * C
E = Local LTL delivery fee = $36
F = Total Local LTL delivery fee = N * E
G = Full TL shipment cost (220 miles) = 675
H = Total cost of shipping using 3PL = D + F + G
I = Total cost of customer order shipped via LTL carrier = N * A
J = Difference between the cost of the two methods = I - H
1. What is the total cost of delivering to all customers via LTL carrier (current method
This can be calculated using E above as follows:
Total cost of customer order shipped via LTL carrier = E = N * A = 62 * $147 = $9,114
2. How much money would XYZ company save by using the alternate shipping/delivery method?
From the definitions above, we have:
N = Number of orders = 62
D = Total cost of weight = ((N * B) / 100) * C = ((62 * 750) / 100) * 13 = $6,045
F = Total Local LTL delivery fee = N * E = 62 * 36 = $2,232
G = Full TL shipment cost (220 miles) = $675
H = Total cost of shipping using 3PL = D + F + G = $6,045 + $2,232 + $675 = $8,952
I = Total cost of customer order shipped via LTL carrier = $9,114
J = Difference between the cost of the two methods = I - H = $9,114 - $8,952 = $162
Therefore, XYZ company would save $162 by using the alternate shipping/delivery method.
3. At what number of customers would the cost of these two methods be the same?
H = Total cost of shipping using 3PL = D + F + G = (((N * B) / 100) * C) + (N * E) + G ............ (1)
Substituting all the relevant value into equation (1), we have:
H = (((N * 750) / 100) * 13) + (N * 36) + 675
I = N * 147
Equating H and I and solve for N, we have:
(((N * 750) / 100) * 13) + (N * 36) + 675 = N * 147
((N0.01 * 7.50) * 13) + 675 = N147 - N36
(N0.075* 13) + 675 = N111
N0.975 + 675 = N111
675 = N111 - N0.975
N110.025 = 675
N = 675 / 110.025
N = 6.13496932515337.
By approximating to a whole number since we are talking about human being, we have:
N = 6
At what number of customers would
Therefore, the cost of these two methods would be the same when the number of customers is approximately 6.
Expenses recognition Sun Microsystems uses the accrual basis of accounting and recognizes revenue at the Lime it sells goods or renders services. It applies U.S. GAAP and reports in U.S. dollars. Indicate the amount of expenses (if any) the firm recognizes during the months of June. July, and August in each of the following hypothetical transactions. The firm does the following:
a. Pays $180,000 on July 1 for one year’s rent on a warehouse beginning on that date.
b. Receives a utility bill on July 2 totaling $4,560 for services received during June. It pays the utility bill during July.
c. Purchases office supplies on account costing $12,600 during July. It pays $5,500 for these purchases during July and the remainder during August. Office supplies on hand on July 1 cost $2,400, on July 31 cost $9,200, and On August 31 cost $2,900.
d. Pays $7,200 on July 15 for property taxes on office facilities for the current calendar year.
e. Pays $2,000 on July 15 as a deposit on a custom-made delivery van that the manufacturer will deliver on September 30.
f. Pays $4,500 on July 25 as an advance on the August salary of an employee.
g. Pays $6,600 on July 25 for advertisements that appeared in computer journals during June.
Answer:
Sun Microsystems
Amount of Expenses to recognize during the months of June, July, and August in each of the following transactions:
a. Rent Expense = $30,000
b. Utility Expense = $4,650
c. Supplies Expense = $9,700
d. Property Taxes = $1,800
e. No expense is recognized.
f. Salary Expense = $4,500
g. Advertising Expense = $6,600
Explanation:
Data and Calculations:
a. Rent Expense = $180,000/12 * 2 = $30,000 Rent Prepaid $150,000
b. Utility Expense $4,560
c. Supplies Expense $9,700 ($12,600 - $2,900)
d. Property Taxes = $7,200 *3/12 = $1,800
e. No expense is recognized for the advance payment for delivery van.
f. Salary Expense $4,500
g. Advertising Expense $6,600
Olivia believes that the employees in her company require constant supervision and are not naturally motivated. She believes she should push them to reach their goals. Which theory of leadership can she utilize that would relate to her situation? Olivia can utilize in her company.
Answer:
Transformational Leadership Theory
The Transformational Leadership theory, also known as Relationship theories, focuses on the relationship between the leaders and followers. This theory talks about the kind of leader who is inspirational and charismatic, encouraging their followers to transform and become better at a task.
Transformational leaders typically motivated by their ability to show their followers the significance of the task and the higher good involved in performing it. These leaders are not only focused on the team's performance but also give individual team members the required push to reach his or her potential. This leadership theories will help you to sharp your Skill.
Transactional Theories
Transactional Theories, also referred to as Management theories or exchange theories of leadership, revolve around the role of supervision, organization, and teamwork. These theories consider rewards and punishments as the basis for leadership actions. This is one of the oft-used theories in business, and the proponents of this leadership style use rewards and punishments to motivate employees.
The theory of leadership she utilizes that would relate to her situation is Transformational leadership. This is further explained below.
What is Transformational leadership?Generally, Transformational leadership is simply described as a style of leadership that affects both people and societal systems.
In conclusion, Transformational leadership is the leadership idea that Olivia may use in her position.
Read more about Transformational leadership
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Speedy Delivery Company purchases a delivery van for $32,000. Speedy estimates that at the end of its four-year service life, the van will be worth $6,000. During the four-year period, the company expects to drive the van 130,000 miles. Actual miles driven each year were 35,000 miles in year 1 and 38,000 miles in year 2.
Required:
Calculate annual depreciation for the first two years of the van using each of the following methods.
Answer:
(1) Straight-line.
Year 1 depreciation expense = $6,500
Year 2 depreciation expense = $6,500
(2) Double-declining-balance.
Year 1 depreciation expense = $16,000
Year 2 depreciation expense = $8,000
(3) Activity-based.
Year 1 depreciation expense = $7,000
Year 1 depreciation expense = $7,600
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Speedy Delivery Company purchases a delivery van for $32,000. Speedy estimates that at the end of its four-year service life, the van will be worth $6,000. During the four-year period, the company expects to drive the van 130,000 miles. Actual miles driven each year were 35,000 miles in year 1 and 38,000 miles in year 2.
Required:
Calculate annual depreciation for the first two years of the van using each of the following methods.
(1) Straight-line.
(2) Double-declining-balance.
(3) Activity-based.
The explanation of the answers is now given as follows:
(1) Straight-line.
Depreciable amount = Cost of the delivery van – Salvage value = $32,000 - $6,000 = $26,000
Annual depreciation rate = 1 / Number of useful years = 1 / 4 = 0.25, or 25%
Year 1 depreciation expense = Depreciable amount * Annual depreciation rate = $26,000 * 25% = $6,500
Year 2 depreciation expense = Depreciable amount * Annual depreciation rate = $26,000 * 25% = $6,500
(2) Double-declining-balance.
Note: The salvage value is taken care of in the computation of the depreciation expense for the last useful year under the double-declining-balance method.
Therefore, we have:
Cost of the delivery van = $32,000
Annual depreciation rate = Straight line annual depreciation rate * 2 = 25% * 2 = 50%
Year 1 depreciation expense = Cost of the delivery van * Annual depreciation rate = $32,000 * 50% = $16,000
Book value at the end of year 1 = Cost of the delivery van - Year 1 depreciation expense = $36,000 - $16,000 = $16,000
Year 2 depreciation expense = Book value at the end of year 1 * Annual depreciation rate = $16,000 * 50% = $8,000
(3) Activity-based.
Depreciable amount = Cost of the delivery van – Salvage value = $32,000 - $6,000 = $26,000
Depreciation rate = Actual miles driven each year / Expected driven miles for four years ……….. (1)
Depreciation expense for each year = Depreciable amount * Depreciation rate …………… (2)
Using equations (2), we have:
Year 1 depreciation expense = $26,000 * (35,000 / 130,000) = $7,000
Year 1 depreciation expense = $26,000 * (38,000 / 130,000) = $7,600
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $34 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally:
Per Unit 21,000 Units
Per Year
Direct materials $ 14 $ 294,000
Direct labor 12 252,000
Variable manufacturing overhead 2 42,000
Fixed manufacturing overhead, traceable 9 * 189,000
Fixed manufacturing overhead, allocated 12 252,000
Total cost $ 49 $ 1,029,000
Required:
1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 17,000 carburetors from the outside supplier?
2. Should the outside supplier’s offer be accepted?
3. Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $170,000 per year. Given this new assumption, what would be financial advantage (disadvantage) of buying 17,000 carburetors from the outside supplier?
4. Given the new assumption in requirement 3, should the outside supplier’s offer be accepted?
Answer:
Troy Engines, Ltd.
1. Financial advantage of buying from outside supplier = $51,000 ($629,000 - $578,000)
2. The outside supplier's offer should be accepted.
3. The financial advantage would increase by $170,000 to $221,000.
4. The outside supplier's offer should still be accepted.
Explanation:
a) Data and Calculations:
Outside supplier's selling price = $34 per unit
Costs of producing in-house:
Per Unit 21,000 Units Per Year
Direct materials $ 14 $ 294,000
Direct labor 12 252,000
Variable manufacturing overhead 2 42,000
Fixed manufacturing overhead, traceable 9 * 189,000
Fixed manufacturing overhead, allocated 12 252,000
Total cost $ 49 $ 1,029,000
Cost of buying 17,000 carburetors from the outside supplier at $34 per unit = $578,000
Relevant cost of making 17,000 carburetors in-house ($37 * 17,000) = $629,000
1. Financial advantage of buying from outside supplier = $51,000 ($629,000 - $578,000)
2. The outside supplier's offer should be accepted.
3. The financial advantage would increase by $170,000 to $221,000.
4. The outside supplier's offer should still be accepted.
A company paid an old bill from a previous month for $300 cash. The effect of this transaction in the basic accounting equation is *
A decrease in Cash and an increase in Accounts Payable
A decrease in Cash and an increase in Owner’s Capital
An increase in Accounts Payable and a decrease in Owner’s Capital
None of the above
Answer:
None of the above
Explanation:
Given the situation described above in the question and considering the available options, the right answer to
-The effect of this transaction in the basic accounting equation is that "the account payable decreases and the cash increases"
This answer is not part of the available option. Hence, the correct answer is "None of the above"
We have implicitly assumed that Ace Airline starts paying the salary of $15,000 per month only at the end of the two-month school. Such a practice drew significant complaints from the trainees. Ace decided to change its practice and pay the trainees during the training session as well. How would the new policy change Ace's class size
Answer:
Ace Airline class size will increase as more trainees would be willing to work with Ace Airlines.
Explanation:
Ace airlines is paying trainees $15,000 per month after they complete their training. There was a complain by trainees that they are not paid for the training and the training expense is born by the trainees themselves. Ace decides to pay the trainees for the training sessions as well and this will attract more trainees to work for Ace.
Objectives of pep stores
Answer:
The answer is below
Explanation:
PEP is a big store that is located in South Africa and other African countries.
Based on the PEP mission and vision and according to the company's website, the Objectives of PEP stores are:
1. To be the friendliest and most trusted retailer for this market.
2. To offer wanted products and services at the lowest possible prices
3. To meet changing consumer needs.
The following information is taken from the 2020 general ledger of Swisher Company. Rent Rent expense $48,000 Prepaid rent, January 1 5,900 Prepaid rent, December 31 9,000 Salaries Salaries and wages expense $54,000 Salaries and wages payable, January 1 10,000 Salaries and wages payable, December 31 8,000 Sales Sales revenue $175,000 Accounts receivable, January 1 16,000 Accounts receivable, December 31 7,000 In each case, compute the amount that should be reported in the operating activities section of the statement of cash flows under the direct method. Cash payments for rent $ Cash payments for salaries $ Cash receipts from customers
Answer:
See below
Explanation:
1. Cash payments
= Rent expense + Prepaid rent, December 31 - Prepaid rent January 1
= $48,000 + $9,000 - $5,900
= $51,100
2. Cash payments for salaries
= Salaries and wages expense + salaries and wages payable January 1, - salaries and wages payable December 31
= $54,000 + $10,000 - $8,000
= $56,000
3. Cash receipts from customers
= Sales revenue + Accounts receivables January 1 - Accounts receivables, December 31
= $175,000 + $16,000 - $7,000
= $184,000