Answer:
Maximum Company
Income Statement
Revenue $ 1,000,000
Less Cost of Sales
Beginning Inventory $ 50,000
Purchases $ 50,000
Less Ending Inventory ($40,000) ($60,000)
Gross Profit $940,000
Less Expenses
Salaries and Wages ($250,000 + $5,000) $255,000
Advertising expenses $100,000
Insurance expenses $100,000
Other Operating expenses $75,000
Depreciation $225,000
Interest expense $100,000
Rent expense $9,900
Payroll taxes $63,750 ($898,650)
Net Income before tax $41,350
Income tax expense ($10,338)
Net Income after tax $31,012
Explanation:
Depreciation expense :
Depreciation expense = (Cost - Salvage Value) ÷ Estimated Useful Life
therefore,
Depreciation expense = ($2,250,000) ÷ 10 = $225,000
Note :Land is not a depreciable asset
Interest expense :
Interest expense = $1,000,000 x 10% = $100,000
Rent expense :
Use the cost formula provided.
Rent expense = Gross profit x 1 % + $500
= $940,000 x 1 % + $500
= $9,900
QS 7-13 Note receivable interest and maturity LO P4 On December 1, Daw Co. accepts a $36,000, 45-day, 10% note from a customer. (1) Prepare the year-end adjusting entry to record accrued interest revenue on December 31. (2) Prepare the entry required on the note's maturity date assuming it is honored. (Use 360 days a year.)
Answer and Explanation:
The journal entries are shown below:
1. Interest Receivable $300($36,000 × 10% x 30 ÷ 360)
To Interest Revenue $300
(Being accrued interest revenue is recorded)
2. Cash $36,450
To Interest Receivable A/c $300
To Interest Revenue A/c $150 ($36,000 × 10% x 15 ÷ 360)
To Notes Receivable A/c $36000
(Being note maturity date it is honoured is recorded)
Monty loaned his friend Ned $24,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was $18,000, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $18,000 as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $7,200 and taxable income of $42,000. During the current year, Ned paid Monty $16,200 in satisfaction of the debt.
Determine Monty's tax treatment for the $16,200 received in the current year.
The nonbusiness bad debt of $18,000 would have been reported as a ________ , and $________ would be included in Monty's gross income.
Answer:
Short term capital loss and $10,800
Explanation:
Remaining balance - Capital gains
$18,000 - $7,200 = $10,800
Monty can report the bad debt of $18,000 as short term capital loss since it is expense for the business and receivables are not recoverable. This amount can be reported as loss of the business.
Kenny is trying to sell his XBOX one; however, none of the potential buyers is willing to pay the price Kenny desires. Kenny's wife Zeynep, an economist, thinks this might be due to a lack of information on the part of buyers. Zeynep uses the concept of __________ to explain to Kenny why he cannot sell his XBOX one at the price he is asking
Answer: 2) Adverse selection
Explanation:
Adverse selection occurs when one party to the transaction has more information than the other and so can exploit this information to increase their benefit in the transaction.
Kenny has more information than the buyers in this situation as he knows what the Xbox One has and so is charging a certain price of it. The buyers do not know this information and so do not understand why that particular price is being charged and so refuse to pay it.
Many mortgage lenders require that a home inspection be done as part of a home purchase
agreement. What are some things reviewed during a home inspection? How can a home
inspection protect a homebuyer?
Answer:
1: some reviewed:
Heating system.
Central air conditioning system (temperature permitting)
Interior plumbing and electrical systems.
Roof.
Attic, including visible insulation.
Walls.
Ceilings.
Floors..
2:The inspection is an important part of the home buying process. ... The home inspection is designed to protect the buyers, by revealing problems they might not have noticed otherwise. It is a "non-invasive" examination of the property, which means the inspector will not cause any damage to the home while inspecting it.
Emil borrowed money so he would be able to afford to add a screened-in porch to the back of his house. When he applied for the loan, the rate on the loan was very low based given the current market trends. Over the following months, however, the market fluctuated a great deal, and suddenly he was faced with higher rates for the same loan. Which type of financial risk did Emil face?
a. income risk
b. interest rate risk
c. personal risk
d. inflation risk
Answer:
since i chose inflation risk and that was incorrect the only other logical option for me would be option B. Interest rate risk
Explanation:
The financial risk that Emil faced when he borrowed money at a low rate but due to market fluctuations, he faced higher rates later was b. interest rate risk.
What is interest rate risk?Interest rate risk is a financial risk that results from changes in the interest rate of an investment or loan.
Increasing credit risk gives rise to increased debt exposure. This can force a lending institution to increase the interest rate if the contract recognized a fluctuating rate (not fixed) at the initiation stage.
Thus, the type of financial risk that Emil faced when he borrowed money at a low rate but due to market fluctuations, he faced higher rates later was b. interest rate risk.
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How to control quality?
Answer:
Explanation:
1. Set your quality standards.
In some industries, you may have to meet quality standards set by an outside body, such as an industry association, the local health and safety inspector, or a government regulatory agency. In others, there aren't any official quality standards, so you'll need to set your own.
Each department of your business will have different quality control standards. However, they must all be objectively measurable. For example, if you're developing quality control standards for your customer service team, “sounding friendly on the phone" is not a measurable standard. Measurable standards might include:
Answering all customer calls by the second ring
Responding to all customer service emails within four hours
Resolving customer service problems in five minutes or less
2. Decide which quality standards to focus on.
Of course, you want to ensure quality in all aspects of your operation. However, begin by focusing on the most important measures — those that have the biggest effect on your profits and your customer experience. This will enable you to get results quickly and also keeps you and your team from becoming overwhelmed.
For instance, if you own a restaurant, keeping the restrooms clean is definitely something to monitor in your quality control program—but not the most important thing. Getting orders out to customers quickly and accurately is a more important standard because it has a more direct effect on the quality of experience and customer satisfaction.
3. Create operational processes to deliver quality.
W. Edwards Deming, the founder of modern quality control, believed that well-designed processes lead to high-quality products and services. If you create good processes, continually measure the results of the processes, and work to consistently improve the process, your product or service will get better and better.
Starting with your critical operations, create step-by-step processes that include benchmarks. For instance, in a B2B company's accounting department, operational processes might require preparing and delivering invoices within 24 hours after a job is completed or a product is delivered. In a restaurant, operational processes might require servers to pick up food for delivery to the customer’s table within two minutes of it being prepared.
4. Review your results.
Most business software, from financial and accounting apps to customer relationship management or customer service tools, lets you customize the information you collect and use dashboards to view it at a glance. Review your data regularly to see how well your company is meeting its quality standards.
5. Get feedback.
Use measurable feedback from external sources, such as customer surveys, online ratings and reviews and net promoter scores (NPS), to get a fuller picture of product and service quality. Also, get regular feedback from employees. How well are the operational processes working to deliver quality? How could they be improved?
6. Make improvements.
Once you’re meeting your quality control standards, don't stop there. For example, if you own a residential cleaning service business and you can cut the time it takes your maids to clean a home by 25 percent, you’ll be able to handle 25 percent more business without hiring any additional employees. That will really boost your bottom line.
No matter how well your processes are running, quality control shows there's always room for improvement, and making small changes can pay off in big ways.
Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2) 1% of total sales and (3) 6% of year-end accounts receivable. Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2) 1% of total sales and (3) 6% of year-end accounts receivable.
Answer:
1.
Date Account Title Debit Credit
Dec. 31 Bad debt expense $9,000
Allowance for doubtful accounts $9,000
Working
= 3% * 300,000
= $9,000
2.
Date Account Title Debit Credit
Dec. 31 Bad debt expense $12,000
Allowance for doubtful accounts $12,000
Working
= 1% * total debt
= 1% * (900,000 + 300,000)
= $12,000
3.
Date Account Title Debit Credit
Dec. 31 Bad debt expense $12,500
Allowance for doubtful accounts $12,500
Working
= 6% * Accounts receivable
= 6% * 125,000
= $7,500
As the Allowance account is in debit, it means that bad debt exceeded the allowance so this balance needs to be added to properly cater for bad debts.
= 7,500 + 5,000
= $12,500
Robert and Becca file jointly. They have taxable income of $60,000 in 2020 (before considering any capital gains or losses). They have a long-term capital gain of $28,000 and a long-term capital loss of $17,000 on sales of stock in the current year. What will their capital gains tax be in the current year
Answer: $0
Explanation:
We should note that based on the information given, Robert and Becca file jointly, therefore, their their capital gains tax be in the current year will be $0.
Assuming they filed separately, their capital gains tax be in the current year will be:
= 15% × ($28,000 - $17,000)
= 0.15 × $11000
= $1650.
But regarding the question, the answer is $0.
Differential cost $(1.00) Cool Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: Direct materials $ 5.00 Direct labor 3.00 Variable overhead 6.00 Fixed overhead 7.00 Manufacturing product cost $ 21.00 Another company has offered to sell Cool Systems the switch for $15.00 per unit. If Cool Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Prepare an outsourcing analysis to determine whether Cool Systems should make or buy the switch.
Answer:
Cool System should choose to Make the switch.
Explanation:
Outsourcing analysis which considers only the relevant variable cost per unit can be prepared as follows:
Details Make ($) Outsource ($) Difference ($)
A B C = A - B
Direct materials 5.00 5.00
Direct labor 3.00 3.00
Variable overhead 6.00 6.00
Outsourcing price 15.00 –15.00
Total differential 14.00 15.00 –1.00
The analysis above shows that the total differential per unit is minus $1 which indicates that outsourcing is $1 per unit more expensive than make. Therefore, Cool System should choose to Make the switch.
The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment:
Sales $1,378,600
Gross profit 372,200
Indirect labor 124,100
Indirect materials 51,000
Other factory overhead 23,400
Materials purchased 703,100
Total manufacturing costs for the period 1,522,000
Materials inventory, end of period 51,000
Using the above information, determine the following amounts:
a. Cost of goods sold________$
b. Direct materials cost ______$
c. Direct labor cost ________$
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Miranda works in a company where policies and reminders are posted at office bulletin boards everywhere. Her company emphasizes strict adherence to all organizational policies and regulations. Which of the following approaches to supervisory leadership does this scenario illustrate? a. Bureaucratic style b. Autonomous style c. General supervision style d. Participative style
Answer:
Bureaucratic style
Explanation:
The bureaucratic leadership style can be regarded as one which revolve on
administrative needs of particular organization. In this style clear chain-of-command is been defined clearly. a rigid regulations and laws are preferred in all activities that is been carried out.
Assume that the risk-free rate is 5.5% and the required return on the market is 12%. What is the required rate of return on a stock with a beta of 1.8
Answer: 17.2%
Explanation:
You can use the Capital Asset Pricing Model to calculate the required return here given the variables in the question:
Required return = Risk free rate + beta * (Market return - risk free rate)
= 5.5% + 1.8 * ( 12% - 5.5%)
= 5.5% + 11.7%
= 17.2%
Economics
What would likely happen to the supply of electricians if their wages suddenly doubled?
HURRY
Answer:
it would be harder to get electricinans because it costs more
Explanation:
If the wages of electricians should double then the supply of electrician is also going to double.
What is Supply?This is an increase in the quantity of a good or service that is available at a given price.
There would be more electricians that would be willing to provide more of their labor at an increase in wage. They would like to work more.
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The existence of lags: A. makes discretionary fiscal policy more effective than automatic stabilizers. B. makes monetary policy more effective than fiscal policy. C. makes both fiscal and monetary policy more challenging to implement. D. makes fiscal policy more effective than monetary policy. E. makes both fiscal and monetary policy more effective.
Answer:
C. makes both fiscal and monetary policy more challenging to implement.
Explanation:
The existence of lags makes both fiscal and monetary policy more challenging to implement.
Chris is the manager of a graphic design firm, and he relies on a top-down strategic management approach to maintain tight control over the activities of his employees. The company has recently started to lose market share to its more innovative competitors, and Chris wants to encourage his employees to start contributing to the strategy formulation process to make the company more competitive. Which of the following steps should Chris take?
a. Take an extended vacation and see how the business naturally reorganizes itself in his absence.
b. Schedule indidvidual meetings with employees and demand that they come prepared with five ideas.
c. Allow eemployees to take whatever appreach they feel is appropriate when dealing with customers.
d. Desingate Friday afternooons as time for employees pursue outside interests loosely related to the business.
Answer:D
D)Designate Friday afternoons as time for employees to pursue outside interests loosely related to the business.
Explanation:
From the question we are informed about Chris who is the manager of a graphic design firm, and he relies on a top-down strategic management approach to maintain tight control over the activities of his employees. The company has recently started to lose market share to its more innovative competitors, and Chris wants to encourage his employees to start contributing to the strategy formulation process to make the company more competitive. In this case, the steps should Chris take is to Designate Friday afternoons as time for employees to pursue outside interests loosely related to the business. The top-down policy can be regarded as kind of autocratic leadership which is a management process whereby the business is been Control upper level of executives. Wide decision is been created by Senior project managers and it trickle down to other lower departments.
why did the gradute students and professors score lower than chimpanzees in Rosling's global health pre test?
Answer:
...
Explanation:
"The problem... was not ignorance; it was preconceived ideas ." other words, pre-existing misconceptions in the minds of the test-takers caused them to return a worse result than if they had had no conceptions at all.
The income statement of Kimbrough Community Clinic for the year ended December 31, 2017, is provided below.
Kimbrough Community Clinic Income Statement For the year ended 12/31/2017
Revenues:
Net patient service revenue $774,000
Operating Expenses:
Medical services $361,000
Support services 253,000
General services 95,000
Depreciation 33,000 (742,000)
Operating Income 32,000
Other Income and Expenses:
Interest income 34,000
Interest expense 12,000 22,000
Net Income $54,000
Assuming a maximum annual debt service of $68,000, calculate the organization's debt service coverage ratio.
a. 1.46
b. 1.78
c. 0.79
d. 0.13
Answer:
0.47
Explanation:
Debt service coverage ratio = Net Operating Income ÷ Total Debt Service
where,
Net Operating Income = Revenue - Certain Operating Expenses
Total Debt Service = Current Debt Obligations
therefore,
debt service coverage ratio = $32,000 ÷ $68,000 = 0.47
Suppose you are the money manager of a $4.08 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 320,000 1.50 B 540,000 (0.50) C 1,420,000 1.25 D 1,800,000 0.75 If the market's required rate of return is 13% and the risk-free rate is 4%, what is the fund's required rate of return
Answer:
r fund = 0.11356617647 or 11.356617647% rounded off to 11.36
Explanation:
The required rate of return on the fund can be calculated using the CAPM equation. The equation is as follows,
r fund = rRF + beta * (rM - rRF)
Where,
r fund is the required rate of return of the fundrRF is the risk free raterM is the return on marketTo calculate the required rate of return of the fund, we first need to calculate the fund beta. The beta on fund can be calculated using the formula for portfolio beta which is,
Portfolio Beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
Where,
w represents the weight of each stock in the portfolioPortfolio or fund beta = 320000/4080000 * 1.5 + 540000/4080000 * -0.5 + 1420000/4080000 * 1.25 + 1800000/4080000 * 0.75
Portfolio or fund beta = 0.81740196078 rounded off to 0.82
The required rate of return on fund will be,
r fund = 4% + 0.81740196078 * (13% - 4%)
r fund = 0.11356617647 or 11.356617647% rounded off to 11.36
Diving Fiasco. Mike, who owns a dive shop in the United States, decides to take a group of his customers diving in U.S. waters. Mike is aware that sharks occasionally visit the area where the divers will be visiting. He is also aware that while stingrays are usually tame, they can become aggressive when fed. Mike does not reveal that information to the group of divers going with him. The divers go down into the water, and some have squid with which to feed the stingrays. During the dive, one of the stingrays becomes agitated and latches onto diver Susie's arm. Susie is so disconcerted that she drops her regulator (her breathing device) from her mouth and is in considerable difficulty. Another diver, Billy, encounters a shark, which snaps at him. While the shark does not actually bite Billy, the attack results in damage to his diving equipment. Mike, who is in charge of the dive, does nothing to help and leaves the other divers to return to the boat because the dive turned out to be more trouble than expected. Wendy, another diver on the trip, also returns to the boat without doing anything to help the divers in distress. Sam, on the other hand, goes to rescue the divers who are in distress. He manages to do so but in the process he pulls his back and requires medical care. All divers are very unhappy with Mike. Billy and Susie are annoyed that Mike did not come to their assistance. Which is true regarding Mike's duty to provide assistance to them during the dive?
A) Mike had no duty to provide any assistance to them.
B) Mike had a duty to come to their aid because he arranged the dive and was charging them.
C) Mike had a duty to come to their assistance only if he had specifically agreed to do so prior to the dive.
D) Mike had a duty to come to their assistance only if they were minors.
E) Mike had a duty to come to their assistance only if no one else did so.
Answer:
B) Mike had a duty to come to their aid because he arranged the dive and was charging them.
Explanation:
Mike organized the diving trip as part of his business activities. he is making money out of it, he is not doing it for free. He should haver warned the other divers about the risks involved and should also help them in case they are in trouble. When you provide a service, you are responsible for your customers' safety.
Corona Industries purchased a stamping machine on January 2, 20X1, for $100,000. It made an initial payment of $20,000 and financed the balance over 5 years at State Bank. The loan terms were for annual payments of $16,000 plus 10% interest, payable on December 31 each year. The year 20X4 proves to be a difficult year and on December 1, 20X4 Corona negotiates a debt restructuring with State Bank. The settlement calls for cash payment of accrued interest plus $4,000 on December 1 and the transfer of 200 acres of land held by Corona that cost $15,000. The land has a current fair value of $22,000. Which one of the following entries will Corona make to adjust for the land just prior to transfer?
a. DR Loss on disposal of asset $7,000 CR Land $7,000
b. DR Land $7,000 CR Gain on disposal of asset $7,000
c. DR Note payable—State Bank $7,000 CR Gain on disposal of asset $7,000
d. DR Land $7,000 CR Note payable—State Bank $7,000
Answer:
(a) DR Loss on disposal of asset $7,000 CR Land $7,000
The correct option is A). DR Loss on disposal of asset $7,000 and CR Land $7,000
What is journal entry? What are the debit and credit?A journal entry is the process of recording a business transaction in the accounting records of a business.
Debits are always on the left side of the entry, which shows an increase in assets or decrease in liabilities.
Credits are always on the right side, which depicts that there is a decrease in assets or an increase in liabilities.
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Consider two bonds, F and G. Both bonds presently are selling at their par value of $1,000. Each pays interest of $90 annually. Bond F will mature in 15 years while bond G will mature in 26 years. If the yields to maturity on the two bonds change from 9% to 10%, Group of answer choices both bonds will increase in value, but bond F will increase more than bond G. both bonds will increase in value, but bond G will increase more than bond F. both bonds will decrease in value, but bond F will decrease more than bond G. both bonds will decrease in value, but bond G will decrease more than bond F.
Answer:
Option D or the Last statement is the correct one.
Explanation:
As we can see, this is a multiple choice question with four options A, B , C , D.
And we are given two Bonds F and G.
Par Value of Both Bonds = $1000
Bond F Maturity = 15 Years
Bond G Maturity = 26 Years
Both Pays Interest = $90 Annually
Yield to Maturity Change from = 9% to 10%
So,
The correction option to this question is option D. The Last Statement.
Option D = Both bonds will decrease in value, but bond G will decrease more than bond F.
Reasoning:
The reason behind this answer is related to number of years of maturity of the bond. There is a simple rule that, Longer the maturity, the greater the price change when interest rates changes. Similarly, Shorter the maturity, the shorter the price change when interest rates change. So, here in this case, Bond G has greater number of years of maturity which is 26 Years as compared to Bond F.
Luebke Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $53,000 and at the end of the month was $30,100. The cost of goods manufactured for the month was $212,500. The actual manufacturing overhead cost incurred was $55,300 and the manufacturing overhead cost applied to Work in Process was $58,400. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for November is:
Answer:
$232,300
Explanation:
With regards to the above information, and given that;
Actual overhead = $55,300
Applied overhead = $58,400
Over applied overhead = $58,400 - $55,300 = $3,100
Unadjusted cost of goods sold
= $53,000 + $212,500 - $30,100
= $235,400
Therefore, the adjusted cost of goods sold
= $235,400 - $3,100
= $232,300
3. Which of the following statements about the marginal product of labour is correct?
A. It may either rise or fall as more labour is used.
B. It always rises as more labour is used.
C. It always falls as more labour is used.
D. There is no relationship between marginal product and labour.
It is now January 1, 2013, and you are considering the purchase of an outstanding bond that was issued on January 1, 2011. It has a 7 percent annual coupon and had a 30-year original maturity. (It matures on December 31, 2040.) There were 11 years of call protection (until December 31, 2021), after which time it can be called at 108.5 percent of par, or $1,085. Interest rates have fallen since the bond was issued, and it is now selling at 115.5 percent of par, or $1,155. If you bought this bond, what rate of return would you probably earn, assuming you hold the bonds until they either mature or are called
Answer:
a. Assuming you hold the bonds until they mature, the rate of return you would probably earn is the YTM of 5.89%.
b. Assuming you hold the bonds until they are called, the rate of return you would probably earn is the YTC of 5.65%.
Explanation:
This can be determined by calculating the YTM and YTC as follows:
a. Calculation of Yield to Maturity (YTM)
The bond's Yield to Maturity can be calculated using the following RATE function in Excel:
YTM = RATE(nper,pmt,-pv,fv) .............(1)
Where;
YTM = yield to maturity = ?
nper = number of periods = number of years to maturity = 30
pmt = annual coupon payment = annual coupon rate * Face value = 7% * $1,000 = $70 = 70
pv = present value = current bond price = $1,155 = 1155
fv = face value or par value of the bond = 1000
Substituting the values into equation (1), we have:
YTM = RATE(30,70,-1155,1000) ............ (2)
Inputting =RATE(30,70,-1155,1000) into excel (Note: as done in the attached excel file), the YTM is obtained as 5.89%.
Therefore, assuming you hold the bonds until they mature, the rate of return you would probably earn is the YTM of 5.89%.
b. Calculation of Yield to Call (YTC)
The bond's Yield to call can be calculated using the following RATE function
in Excel:
YTC = RATE(nper,pmt,-pv,fv) .....................(3)
Where;
YTM = yield to call = ?
nper = number of periods = number of years of call protection = 11
pmt = annual coupon payment = annual coupon rate * Face value = 7% * $1,000 = $70 = 70
pv = present value = current bond price = $1,155 = 1155
fv = future value of the bond or the amount at which the bond can be called = $1,085 = 1085
Substituting the values into equation (3), we have:
YTM = RATE(11,70,-1155,1085) ............ (4)
Inputting =RATE(11,70,-1155,1085) into excel (Note: as done in the attached excel file), the YTM is obtained as 5.65%.
Therefore, assuming you hold the bonds until they are called, the rate of return you would probably earn is the YTC of 5.65%.
McNulty, Inc., produces desks and chairs. A new CFO has just been hired and announces a new policy that if a product cannot earn a margin on sales of at least 20 percent, it will be dropped. The margin is computed as product gross profit divided by reported product cost.Manufacturing overhead for year 1 totaled $800,000. Overhead is allocated to products based on direct labor cost. Data for year 1 show the following: Chairs DesksSales revenue $ 1,150,000 $ 2,105,000 Direct materials 584,000 800,000 Direct labor 160,000 340,000 Required:a-1. Based on the CFO's new policy, calculate the profit margin for both chairs and desks.Profit Margin (%)Chairs Desks a-2. Which of the two products should be dropped?b. Regardless of your answer in requirement a, the CFO decides at the beginning of year 2 to drop the chair product. The company cost analyst estimates that overhead without the chair line will be $650,000. The revenue and costs for desks are expected to be the same as last year. What is the estimated margin for desks in year 2?
Answer:
McNulty, Inc.
Chairs Desks
a) Profit margin (%) 6.33% 31.36%
b) The estimated margin for desks in year 2 is:
= 17.6%
Explanation:
a) Data and Calculations:
Expected gross profit margin on cost = 20%
Manufacturing overhead for year 1 = $800,000
Chairs Desks Total
Sales revenue $ 1,150,000 $ 2,105,000 $ 3,255,000
Direct materials 584,000 800,000 1,384,000
Direct labor 160,000 340,000 500,000
Overhead 337,572 462,428 800,000
Total costs $1,081,572 $1,602,428 $2,684,000
Gross Profit $68,428 $502,572 $571,000
Profit margin 6.33% 31.36% 21.27%
Margin (%) = Gross profit/Total costs * 100
Allocation of Manufacturing Overhead based on direct labor cost:
Chairs = $337,572 ($584,000/$1,384,000 * $800,000)
Desks = $462,428 ($800,000/$1,384,000 * $800,000)
Year 2:
Desks
Sales revenue $ 2,105,000
Direct materials 800,000
Direct labor 340,000
Overhead 650,000
Total costs $ 1,790,000
Gross Profit $315,000
Profit margin 17.6%
Supreme Fitness Club uses straight-line depreciation for a machine costing $28,150, with an estimated four-year life and a $2,750 salvage value. At the beginning of the third year, Supreme determines that the machine has three more years of remaining useful life, after which it will have an estimated $2,300 salvage value. (1) Compute the machine’s book value at the end of its second year.
Answer:
1. $15,450
2. $4,383
Explanation:
1. Computation to determine the machine’s book value at the end of its second year
First step is to calculate the Annual depreciation
Annual depreciation= ($28,150 - $2,750) / 4
Annual depreciation=$25,400/4
Annual depreciation= $6,350
Now let calculate the machine’s book value at the end of its second year
Machine’s book value=$28,150 - ($6,350 *2)
Machine’s book value=$28,150 -$12,700
Machine’s book value=$15,450
Therefore the machine’s book value at the end of its second year will be $15,450
2. Calculation to determine the amount of depreciation for each of the final three years given the revised estimated.
Depreciation for each of the final three years=
($15,450 - $2,300) / 3
Depreciation for each of the final three years=$13,150/3
Depreciation for each of the final three years=
= $4,383
Therefore the amount of depreciation for each of the final three years given the revised estimated will be $4,383
Which of the following is an example of an ethical standard you may find in
other countries but not in the United States?
A. Having mandatory retirement for people over 65
B. Bribing government officials
C. Respecting lines of authority
O D. Keeping your word
According to the video, what tasks do Helpers-Production Workers commonly perform? Check all that apply. fetching and holding materials o supervising other workers o moving materials between work areas o managing budgets training assembly workers keeping records o cleaning machinery
Answer:
a,c,f,g
Explanation: its right!!!!
The tasks that Helpers-Production Workers commonly perform include:
Fetching and holding materialsMoving materials between work areasCleaning MachineryThe correct options are A, C, and E.
What is a production worker?Work that requires manual labor is done by production workers in settings that involve manufacturing or production. Their everyday tasks in an assembly line could include packaging, inspecting, and assembling products. In addition, they might control tools or machinery used in manufacturing.
They may also assist in training assembly workers and keeping records, but supervising other workers and managing budgets are typically not part of their job duties. Production worker assistants perform duties on the factory floor by providing supplies, holding tools, and cleaning workspaces and machinery. Production worker assistants may run and load machinery as well as do small adjustments and repairs.
Thus, the ideal selections are options A, C, and E.
Learn more about production workers here:
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In 2020, Ensley drove her automobile 28,500 miles. She incurred the following expenses during the year related to the automobile: Gas and oil, lubrication: $1,800 Insurance: $980 Repairs: $360 Licenses and registration fees: $50 Business parking and tolls: $170 She uses the automobile 80% for business. Based on the data, Ensley's automobile deduction under the actual cost method is $fill in the blank 1.
Answer: $2722
Explanation:
Ensley's automobile deduction under the actual cost method is calculated below:
Gas and oil = $1800
Add: Insurance = $980
Add: Repairs = $360
Add: Licenses and registration fees = $50
Total Expenses = $3190
We then calculate the business usage which will be:
= 80% of $3190
= 0.8 × $3190
= $2552
We then add the cost of business parking and tolls, then the total deduction will be:
= $2552 + $170
= $2722
Community hospital of the west is experiencing changes occurring throughout the facility, many of the employees are concerned about how the change will affect their current position and workflow. Although the employees are aware that change is occurring in the facility, there has been little communication regarding the changes and the employees are feeling unsettled. Describe the steps the hospital needs to do in order to better support employees during the transitional phase of change. What are some consequences for the hospital if this type of support is not provided
Answer:
in order to support the employees during the transitional phase of change, the hospital could try helping the employees get used to the new changes by maybe adding facilities that they are used to or maybe arrange some colleagues that the employees are familiar with to work with them, so they can get used to the new things with some support by their side.
consequences the hospital May face if they don't support their employees to make them feel more comfortable in their workplace, many of their workers May quit and it would be hard to find new employees and it would be time-consuming to teach the new employees all over again.
another consequence is that if their employees are the ones that make a lot of people want to go to their Hospital community, then losing them may make the people that go to the hospital community to not want to return again and maybe leave a bad review, since the help support care and treatment probably isn't the same.