Answer:
A. 980 unfavorable
B. 300 favorable
C. 62.50 unfavorable
D. 0
Explanation:
A. Calculation to determine June’s direct material price variance
Using this formula
Direct material price variance=Actual quantity(Standard price -Actual price)
Let plug in the formula
Direct material price variance=490 ($32 - $30) Direct material price variance=980 U
B. Calculation to determine June’s direct material efficiency variance
Using this formula
Direct material efficiency variance=Standard price (Actual quantity-Standard quality)
Let plug in the formula
Direct material efficiency variance=$30 (490 – 500)
Direct material efficiency variance= 300 F
C. Calculation to determine June’s direct labor rate variance
Using this formula
Direct labor rate variance=standard hours(actual rate -standard rate )
Let plug in the formula
Direct labor rate variance =250 dlh ($15.25 - $15.00)
Direct labor rate variance = $62.50 U
D. Calculation to determine June’s direct manufacturing labor efficiency variance
Direct manufacturing labor efficiency variance=[250 dlh - (5,000 x 0.05)] x $15
Direct manufacturing labor efficiency variance = 0
The market consensus is that Analog Electronic Corporation has an ROE of 9% and a beta of 1.65. It plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $2.8 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 14%, and T-bills currently offer a 6% return. a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Calculate the P/E ratio.
Answer:
a.
P0 = $7.49494949492 rounded off to $7.49
b.
P/E ratio = 2.67676767676 times rounded off to 2.68 times
Explanation:
a.
The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 * (1+g) is the dividend expected in Year 1 or next year g is the constant growth rate in dividends r is the discount rate or required rate of returnWe first need to calculate the values for D0, g and r.
D0 can be calculate by multiplying the earnings per share by (1 - Plowback Ratio)
D0 = 2.8 * (1 - 2/3)
D0 = $0.93333333333 rounded off to $0.93
To calculate the value of g, we need to multiply the ROE by the Plowback ratio.
g = 0.09 * 2/3
g = 0.06 or 6%
To calculate the value of r, we will use the CAPM equation.
r = risk free rate + Beta * (Market return - risk free rate)
r = 0.06 + 1.65 * (0.14 - 0.06)
r = 0.192 or 19.2%
P0 = 0.93333333333 * (1+0.06) / (0.192 - 0.06)
P0 = $7.49494949492 rounded off to $7.49
b.
The P/E ratio can be calculated by dividing the price per share by the earnings per share.
P/E = 7.49494949492 / 2.8
P/E ratio = 2.67676767676 times rounded off to 2.68
Which of the following is the second step in the hiring process?
Select the best answer choice.
A.
the submission of the application or resume
B.
the interview
C.
sending a thank-you note
D.
getting hired for the position
Answer:
B) The interview
Explanation:
The second step in the hiring process is to plan your employee recruitment. Recruitment planning meetings or emails identify the job description or specification for the position so you know the skills and experience you seek.
Hope I helped! Brainiest plz!♥
Have a nice morning!
-Abby
S14-12 Book Value versus Market Value [LO3] Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $68, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon rate of 6 percent, and sells for 97 percent of par. The second issue has a face value of $40 million, a coupon rate of 6.5 percent, and sells for 108 percent of par. The first issue matures in 21 years, the second in 6 years. Both bonds make semiannual payments. a. What are the company's capital structure weights on a book value basis
Answer:
A. .6627
B. .1892
Explanation:
A. Calculation to determine the company's capital structure weights on a book value basis
First step is to calculate the book value weights of equity
Book value weights of equity = $7,000,000($8)
Book value weights of equity = $56,000,000
Second step is to calculate the Book value weights of debt
Book value weights of debt = $70,000,000 + 40,000,000
Book value weights of debt = $110,000,000
Third step is to calculate the total value of the company
Total value = $56,000,000 + 110,000,000
Total value = $166,000,000
Fourth step is to calculate the book value weights of equity and debt
Book value weights of equity and debt = $56,000,000/$166,000,000
Book value weights of equity and debt = .3373
Now let calculate capital structure weights on a book value basis using this formula
Capital structure weights on a book value basis= 1 - Book value weights of equity and debt
Let plug in the formula
Capital structure weights on a book value basis=1-.3373
Capital structure weights on a book value basis= .6627
Therefore the company's capital structure weights on a book value basis is .6627
B. Calculation to determine the company's capital structure weights on a market value basis
First step is to calculate the Market Value of Equity
Market Value of Equity = 7,000,000($68)
Market Value of Equity = $476,000,000
Second step is to calculate the Market Value of debt
Market Value of debt = .97($70,000,000) + 1.08($40,000,000)
Market Value of debt = $111,100,000
Third step is to calculate the total market value of the company
Total market value = $476,000,000 + 111,100,000
Total market value = $587,100,000
Fourth Step is to calculate the market value weights of equity and debt
Market value weights of equity and debt = $476,000,000/$587,100,000
Market value weights of equity and debt = .8108
Now let calculate capital structure weights on a market value basis
Using this formula
Capital structure weights on a market value basis = 1 - Market value weights of equity and debt
Let plug in the formula
Capital structure weights on a market value basis =1-.8108
capital structure weights on a market value basis = .1892
Therefore the company's capital structure weights on a market value basis is .1892
Bramble Corp. purchased land as a factory site for $1305000. Bramble paid $121000 to tear down two buildings on the land. Salvage was sold for $8400. Legal fees of $5340 were paid for title investigation and making the purchase. Architect's fees were $47000. Title insurance cost $3900, and liability insurance during construction cost $4200. Excavation cost $15480. The contractor was paid $4400000. An assessment made by the city for pavement was $9900. Interest costs during construction were $251000.
1. The cost of the land that should be recorded by Wilson Co. is:_____.
a. $989,880
b. $980,480
c. $996,280
d. $986,880
The cost of the building should be recorded by Wilson Co. is:_____.
a. 2,804,840
b. 2,813,200
c. 2,803,800
d. 3,014,240
Answer:
Part 1
$1,422,940
Part 2
$331,480
Explanation:
cost of the land calculation
Purchase Price $1305000
Cost to tear down building $121000
Sale of Salvages ($8400)
Leagl fees $5340
Total $1,422,940
The cost of the land that should be recorded by Wilson Co. is: $1,422,940
cost of the building calculation
Architect's fees $47000
Insurance $3900
Liability insurance $4200
Excavation cost $15480
city for pavement $9900
Borrowing Costs $251000
Total $331,480
The cost of the building should be recorded by Wilson Co. is $331,480
Culture plays a key role in business. In what ways have movies influenced managerial tasks, company activities, and other ways of doing business around the world?
Can watching foreign films be an effective way of learning how to do business abroad? Justify your answer.
Answer:
In what ways have movies influenced managerial tasks, company activities, and other ways of doing business around the world?
Movies can certainly influence the behavior of managers and other businessmen, specially if they happen to be particularly fond of such movies. However, if the influenced behavior does not lead to good corporate results, it is then likely to be discarded.
Can watching foreign films be an effective way of learning how to do business abroad?
To a certain extent yes, specially if the movies are related to some kind of business activity. However, movies can also display stereotypical behaviors, or deal with subject matter that is not relevant for the business activity, so it is always important to keep in mind that they are not enough to learn how to do business abroad, and that other type of material is needed, like books, or government reports.
Depletion Entries Alaska Mining Co. acquired mineral rights for $67,500,000. The mineral deposit is estimated at 30,000,000 tons. During the current year, 4,000,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimal places. $fill in the blank ed11a103ff82045_1 b. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 fill in the blank 396e8209705d02e_2 fill in the blank 396e8209705d02e_3 fill in the blank 396e8209705d02e_5 fill in the blank 396e8209705d02e_6
Answer: See explanation
Explanation:
a. Determine the amount of depletion expense for the current year.
First, we've to calculate the depletion rate per unit which will be:
= $67,500,000 / 30,000,000
= $2.25
Then, the depletion expense will be:
= $2.25 × 4,000,000
= $9,000,000
b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
Debit Depletion expense $9,000,000
Credit Accumulated depreciation $9,000,000
(Being depletion of 4,000,000 tons)
The project manager of a task force planning the construction of a domed stadium had hoped to be able to complete construction prior to the start of the next college football season. After reviewing construction time estimates, it now appears that a certain amount of crashing will be needed to ensure project completion before the season opener. Given the following time and cost estimates, determine a minimum-cost crashing schedule that will shave five weeks off the project length. Note: No activity can be crashed more than two weeks.
Answer:
Hello your question has some missing data attached below is the missing data table
answer :
week 1 : C should be crashed at $5000
week 2 : C should be crashed at $5000
week 3 : F should be crashed at $12000
week 4 : F should be crashed at $15000
week 5 : P and E crashes at $20000 + $16000
Explanation:
Normal completion time = 49 weeks
and the critical path : ( C-F-I-J-P )
Estimate the a minimum-cost crashing schedule
At week 1 : the crash ( C )activity should be at $5000 and the completion time here will be 48 weeks
At week 2 : The crash (C ) activity should be made at $5000 hence the completion time here will be 47 weeks
At week 3 : The crash ( F ) activity should be made at $12000 and the completion time will be at 46 weeks
At week 4 : The crash ( F ) activity should be made at $15000 hence the completion time will be set at 45 weeks
At week 5 : The crash activity P will be at $20000 and crash activity E will be at $16000 hence the completion time will be 44 weeks
attached below is the pictorial view of the minimum-cost crashing schedule
Sales promotion is the promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.
a. True
b. False
Answer:
a. True
Explanation:
Sales promotion is the marketing strategy in which the product is being promoted via using short term & attractive initiatives in order to stimulate the demand so that the sales could be increased. It could be used for introducing a new product in the market, selling out the existing inventory, for attracting more customers, etc
Therefore as per the given statement, the option a is correct
Assume that Jordan Enterprises's radio broadcast license is renewable at the end of each 10-year term and management has provided evidence that approval of the renewal is highly probable. In this case, the broadcast license qualifies as anindefinite-life intangible asset and is not subject to amortization. Therefore, the firm carries the broadcast license at its original cost of $786,000.
On December 31, 2015 the company noted substantial declines in radio advertising revenues over the past year due to expanded satellite radiosubscriptions, Internet broadcasts, and the use of iPod players. Based on the required annual review and consideration of the available impairment indicators, management believes that it is more likely than not that the broadcast license may be impaired. Therefore, the company must test the broadcast license for impairment. Similar broadcast licenses have been sold in auctions for $676,000.
Assuming that renewal of the broadcast license is probable for this indefinite-life intangible asset, analyze the accounting for impairment and prepare the journal entries.
1.) Conduct the impairment test indicated forindefinite-life intangible asset at the end of the year and determine the impairment loss, if any. (If you selected "No" that an impairment loss is not indicated, then leave the impairment loss input cell blank. Show a loss with a parentheses or minus sign.)
2.) Next, prepare the journal entry required to record any impairment loss. (Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required select "No Entry Required" on the first line of the journal entry table and leave all remaining cells in the tableblank.)
Answer:
Jordan Enterprises
1) The impairment loss = $110,000.
2) Journal Entry to record the impairment loss:
Debit Broadcast License Impairment Loss $110,000
Credit Accumulated Impairment Loss $110,000
Explanation:
a) Data and Calculations:
Broadcast license original cost (book value) = $786,000
Market value of similar broadcast license = 676,000
Impairment loss = $110,000
b) US GAAP defines impairment loss as the decrease in an asset's net carrying value. This means that impairment loss arises when the book or net carrying value is greater than the future estimated cash flows or the market value of the asset.
Consider the following statements about the step-down method of service department cost allocation: I. Under the step-down method, all service department costs are eventually allocated to production departments. II. The order in which service department costs are allocated is important. III. After a service department's costs have been allocated to other departments, no costs are re-circulated back to that service department. Which of the above statements is (are) correct?
a. I, II, and III.
b. I only.
c. I and II.
d. II only.
e. I and III.
Answer:
The correct statements under the step-down method are:
a. I, II, and III.
Explanation:
The step-down method of allocating the costs of service departments is one of the three methods in use. The others include the direct method and the reciprocal method. With the direct method, service departments' costs are directly allocated to the production departments without any allocation to a service department. The reciprocal method is much more involved, using formulas and calculations. The step-down method allocates the service departments' costs to all the other service and production departments, except itself. This step is eventually followed until all the service departments' costs have been allocated to the production departments.
Arlington Clothing, Inc., shows the following information for its two divisions for year 1.
Lake Region Coastal Region
Sales revenue $4,020,000 $13,110,000
Cost of sales 2,625,000 6,470,000
Allocated corporate overhead 241,200 786,600
Other general and administration 548,900 3,710,000
The results for year 2 have just been posted.
Lake Region Coastal Region
Sales revenue $4,020,000 $9,520,000
Cost of sales 2,625,000 4,840,000
Allocated corporate overhead 301,500 714,000
Other general and administration 549,000 3,710,000
Required:
a. Compute divisional operating income for the two divisions.
b. What are the gross margin and operating margin percentages for both divisions?
Answer: See explanation
Explanation:
a. Compute divisional operating income for the two divisions.
For Lake region:
Sales: = $4,020,000
Less: cost of goods sold = $2,625,000
Gross margin = $1,395,000
Less: Allocated corporate overhead = $301,500
Less: Other general and administration = $549,000
Operating income = $544500
For Coastal Region:
Sales: = $9,520,000
Less: cost of goods sold = $4,840,000
Gross margin = $4,680,000
Less: Allocated corporate overhead = $714,000
Less: Other general and administration = $3,710,000
Operating income = $256000
b. What are the gross margin and operating margin percentages for both divisions?
Gross margin percentage for Lake region:
= Gross margin/Sales
= $1,395,000/$4,020,000 × 100
= 34.7%
Gross margin percentage for Coastal region
= Gross margin/Sales
= $4,680,000/$9,520,000 × 100
= 49.2%
Operating margin percentage for Lake region
= Operating income / Sales × 100
= $544500/$4,020,000 × 100.
= 13.5%
Operating margin percentage for Coastal region
= $256000/$9,520,000 × 100
= 2.69%
Your plan is to work for 40 years after graduations. You will invest monthly. You plan to start at the end of your first month with $300. Historically, the company you will be working for increases salaries at the rate of 6% each year and you expect this to continue. You translate this as 0.5% every month and hence, you plan to increase your monthly investment by 0.5%. Note that your 0.5% investment adjustments will start in the second month of your employment. If these funds are invested in a retirement account that attracts an interest rate of 0.75% per month:
i. Calculate the present worth of your investment.
ii. How much will be in your investment account after 40 years of dumping money into it?
iii. This is the fun part. After getting all this money in (ii), your plan is to take them and reinvest in a low risk funds like bonds. If you put all the amount in a fund that attracts 3% per year compounding monthly, how much equal payment will you receive every month before the funds depletes if you plan to spend all your money over a 40 year period?
Answer:
i. The present worth of the investment is:
= $47,876.51
ii. The investment account will have $9,304,816.43 after 40 years of dumping money into it.
iii. You can withdraw $33,093.11 monthly.
Explanation:
a) Data and Calculations:
Monthly investment = $300
Rate of salary increase = 6% per year.
Monthly increment in investment = 0.5%
Interest rate = 0.75% per month
Total increment = 1.25% per month (0.5% + 0.75%)
From an online financial calculator:
N (# of periods) 480
I/Y (Interest per year) 1.25
PMT (Periodic Payment) 300
FV (Future Value) 9304816.43
Results
PV = $47,876.51
N (# of periods) 480
I/Y (Interest per year) 1.25
PV (Present Value) 0
PMT (Periodic Payment) 300
Results
FV = $9,304,816.43
Sum of all periodic payments $144,000.00
Total Interest $9,160,816.43
Starting Principal $9304816.43
Interest / Return Rate 3
Inflation Rate 0
Years to Payout 40 years
Payout Frequency Monthly
Result
You can withdraw $33,093.11 monthly.
Total interest earned: $6,579,874.12.
Information concerning a product produced by Ender Company appears here: Sales price per unit $ 200 Variable cost per unit $ 80 Total annual fixed manufacturing and operating costs $ 600,000 Required Determine the following: Contribution margin per unit. Number of units that Ender must sell to break even. Sales level in units that Ender must reach to earn a profit of $240,000. Determine the margin of safety in units, sales dollars, and as a percentage.
Answer and Explanation:
The computation is shown below:
1. The contribution margin per unit is
As we know that
Contribution margin per unit = Sale Price - Variable Cost
= $200 - $80
= $120
2. The break even sales in units is
= Fixed Cost ÷ Contribution margin per unit
= $600,000 ÷ $120
= 5,000 units
3. The sales units that earned $240,000 is
Required Sales (in units) = (Fixed Cost + Desired Profit) ÷ Contribution Margin Per unit
= ($600,000 + $240,000) ÷ $120
= 7,000 units
4. The margin of safety in units, sales dollars & percentage is
The Margin of Safety (in Units)
= Sales - Break even Sales
= (7,000 - 5,000) units
= 2,000 units
The Margin of Safety (in dollars)
= Margin of Safety (in units) × Sale Price
= 2,000 units × $200
= $400,000
Margin Of Safety (in percentage) is
= (Actual Sales - Break even sales) ÷ Actual Sales
= (7,000 units -5,000 units) ÷ 7,000 units
= 28.57%
On January 1, Cheyenne Corp. had 61,400 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred.
Apr. 1 Issued 11,250 additional shares of common stock for $11 per share.
June 15 Declared a cash dividend of $1.90 per share to stockholders of record on June 30.
July 10 Paid the $1.90 cash dividend. Dec. 1 Issued 5,000 additional shares of common stock for $12 per share.
Dec. 15 Declared a cash dividend on outstanding shares of $2.00 per share to stockholders of record on December 31.
Required:
Prepare the entries, if any, on each of the three dates that involved dividends.
Answer:
Journal entry
Date Account & Explanation Debit Credit
June 15 Cash dividend $138,035
(61400+11250)*$1.9
Dividend payable $138,035
(To record dividend declared)
July 10 Dividend payable $138,035
Cash $138,035
(To record dividend paid)
Dec 15 Cash dividend $155,300
(61400+11250+5000)*2
Dividend payable $155,300
(To record dividend declared)
According to supporters of globalization,
a.
Free trade encourages countries to be economically independent.
b.
Free trade will result in countries specializing in the production of those goods and services they can produce most efficiently.
c.
The costs of free trade outweigh the benefits.
d.
The dislocation of jobs resulting from free trade can be avoided by increasing domestic wages.
e.
The labor supply is easily controlled on a global basis.
Answer:
According to supporters of globalization,
b.
Free trade will result in countries specializing in the production of those goods and services they can produce most efficiently.
Explanation:
Globalization has been described as a phenomenon that encourages increased interaction and integration of peoples, companies, and governments from different backgrounds. This phenomenon or process is propelled by free international trade and investments. The emerging advances in information technology has made globalization possible.
On June 30, 2020, Lynch Co. declared and issued a 15 percent stock dividend. Prior to this dividend, Lynch had 50,000 shares of $10 par value common stock issued and outstanding. The market value of Lynch Co.'s common stock on June 30, 2020, was $24 per share. As a result of this stock dividend, by what amount would Lynch's total stockholders' equity increase (decrease)? Group of answer choices
Answer:
$75,000 decrease
Explanation:
The total stockholders' equity decreases by the same amount of dividend distributed. This is so because distributions are made out of the Retained earnings which is a reserve set aside for stockholders and constitutes stockholders' equity.
So we have to calculate the value of dividend distributed. Dividends are calculated using book values instead of market value of stocks as follows :
Dividend = 50,000 x $10 x 15 % = $75,000
Suppose Germany, a large country, imposes a tariff on tuna imports. Before the tariff, all the countries in the world are engaged in free trade in tuna. Explain why.
(1). The German consumers pay a higher price for tuna.
(2). The German producers receive a higher price for tuna.
(3). The world price of tuna increases.
(4). The tariff makes Vietnam, a tuna exporting country, worse off.
(5). Vietnamese tuna consumers suffer because of the tariff.
Answer:
1. This is true.
The Germans will pay a higher price for tuna because the tariff will increase the price of imported tuna and the reduction in completion with the local producers will lead to higher prices as the local producers take up their price.
2. This is true.
German producers no longer have to compete as much with imported tuna which was cheaper. They will therefore be able to raise their prices.
3. This statement is false.
The world price of Tuna DOES NOT increase because the tariff is only applicable in Germany. Other parts of the world will trade tuna as before. This is what is assumed.
4. This statement is true.
If Vietnam was exporting tuna to Germany, they will become worse off because they will see a decline in demand for their tuna on account of the tariffs making the tuna more expensive.
5. This is false.
Vietnamese tuna consumers will still pay the same price to get tuna because Vietnam produces the tuna. It is Vietnam's producers that will suffer not the consumers.
The market consensus is that Analog Electronic Corporation has an ROE of 9% and a beta of 1.70. It plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $3.6 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 15%, and T-bills currently offer a 5% return. a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
$7.95
Explanation:
The computation of the price at which the stock should sell is shown below;
But before we need to determine the following calculations
Sustainable growth rate, g is
= ROE × b
= 9% × (2 ÷3)
= 6%
Now
Cost of Equity = Rf + beta × (Rm - Rf)
= 5% + 1.70 ×(15% - 5%)
= 22%
Now finally the Price is
= D1 ÷ (r - g)
= $3.6 × 1 ÷ 3 × (1 + 6%) ÷ (22% - 6%)
= $7.95
Roy Wilton is a CPA who recently made a poor investment. When researching the investment, Roy examined the financial statements of the firm, but did not read the accompanying footnotes, and therefore didn’t comprehend the broader context underlying those financial statements. Which of the following is true with respect to the enhancing qualitative characteristic of understandability in this case?
a. This demonstrates a violation of understandability, given that Roy did not comprehend all relevant information.
b. This does not demonstrate a violation of understandability, as Roy did not bother to read the footnotes but could have understood them if he did so.
c. This does not demonstrate a violation of understandability, but rather completeness, as Roy’s understanding was incomplete.
d. This demonstrates a violation of understandability, as CPAs should be able to rely on the financial statements alone.
Answer: This does not demonstrate a violation of understandability, as Roy did not bother to read the footnotes but could have understood them if he did so
Explanation:
Even though Roy examined the financial statements of the firm, as stated above, he didn't read the accompanying footnotes, and hence, he did not comprehend the underlying context of the financial statements.
Therefore, in this case this doesn't demonstrate a violation of understandability, due to the fact that Roy did not bother to read the footnotes but could have understood them if he did so.
According to concept of understandability in accounting, the information that are given in financial statements must be understandable by the financial statements and users.
Project Z will result in unit sales of 2,250, at a price of $650 each. The variable cost (VC) of each unit is $325. The cost accountant will allocate overhead on the existing plant to Project Z at a rate of $21 per unit. A special piece of equipment must be leased for $75,000 per year for purposes related solely to Project Z. Project Z will reduce sales of the same company’s Project X by 900 units (selling price of $950 with variable cost of $510 and overhead allocation of $32 per unit). What is the total incremental cash flow for Project Z?
The Pastel Paint Company recently loaned $300,000 to KIX 96, a local radio station. The radio station signed a noninterest-bearing note requiring the $300,000 to be repaid in three years. As part of the agreement, the radio station will provide Pastel with a specified amount of free radio advertising over the three-year term of the note. The focus of this case is the valuation of the note receivable by Pastel Paint Company and the treatment of the "free" advertising provided by the radio station. Your instructor will divide the class into two to six groups depending on the size of the class. The mission of your group is to reach consensus on the appropriate note valuation and accounting treatment of the free advertising.
Required:
1. Each group member should deliberate the situation independently and draft a tentative argument prior to the class session for which the case is assigned.
2. In class, each group will meet for 10 to 15 minutes in different areas of the classroom. During that meeting, group members will take turns sharing their suggestions for the purpose of arriving at a single group treatment.
3. After the allotted time, a spokesperson for each group (selected during the group meetings) will share the group’s solution with the class. The goal of the class is to incorporate the views of each group into a consensus approach to the situation.
Answer:
Following are the queries to these question:
Explanation:
Reporting entering for recording the note received
Permissible notes (face amount)........................................................ [tex]\$300,000[/tex]
Cash................................................................................................... [tex]\$300,000[/tex]
Argentina is considering constructing a bridge across the Rio de la Plata to connect its northern coast to the southern coast of Uruguay. If this bridge is constructed, it will reduce the travel time from Buenos Aires, Argentina, to Sao Paulo, Brazil, by over 10 hours and has the potential to significantly improve the flow of manufactured goods between the two countries. The cost of the new bridge, which will be the longest bridge in the world, spanning over 50 miles, will be $700 million. The bridge will require an annual maintenance of $10 million for repairs and upgrades and is estimated to last 80 years. It is estimated that 550,000 vehicles will use the bridge during the first year of operation, and an additional 50,000 vehicles per year until the tenth year. These data are based on an a toll charge of $90 per vehicle. The annual traffic for the remainder of the life of the bridge life will be 1,000,000 vehicles per year. The Argentine government requires a minimum rate of return of 9% to proceed with the project.
(a) Does this project provide sufficient revenues to offset its costs?
(b) What considerations are there besides economic factors in deciding whether to construct the bridge
Answer:
Argentine Bridge Across the Rio de la Plata
a. The project provides sufficient revenues to offset its costs.
b. Non-economic factors deciding the bridge construction include:
Social connections and enhancement of relationships
Reduction of travel time
Infrastructural development
Explanation:
a) Data and Calculations:
Reasons for constructing the bridge:
Connect northern Argentine coast to the southern coast of Uruguay
Reduce travel time from Buenos Aires to Sao Paulo by 10 hours
Improve the flow of manufactured goods between the two countries
Longest bridge in the world, spanning over 50 miles
Cost of the new bridge = $700 million
Annual maintenance cost = 800 million ($10m * 80 years)
Total cost of new bridge $1,500 million
Minimum required rate of return = 9% of $1,500 million ($135 million)
Estimated Revenue from the new bridge:
Vehicles using the bridge:
1st Year to 10th year = 550,000 each
Basic number of vehicles using the bridge = 5,500,000
Additional vehicles per year until tenth year = 50,000
Total additional vehicles = 450,000 (50,000 * 9)
Total number of vehicles using the bridge for the first 10 years = 5,950,000 (5,500,000 + 450,000)
Annual vehicular traffic from 11th year to 80th year = 1 million per year
Total from 11th to 80th year = 70 million ( 1 million * 70)
Overall vehicular traffic throughout the bridge's life = 75,950,000 (70,000,000 + 5,950,000)
Toll charge per vehicle = $90
Total revenue = $6,835,500,000 (75,950,000 * $90)
17. Andy Store sold merchandise in the amount of $5,800 to a customer on October 1, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Andy uses the perpetual inventory system. The journal entries that Andy will make on October 1 will include: A) Debit to Accounts Receivable for $4,000 B) Credit to Merchandise Inventory for $5,800 C) Debit to Cost of Goods Sold for $5,800 D) Credit to Merchandise Inventory for $4,000 E) Credit to Net Income for $1,800
Answer:
D) Credit to Merchandise Inventory for $4,000
Explanation:
Date Account and Explanation Debit ($) Credit ($)
Account Receivable 5,800
Sale 5,800
(Recorded the sale on credit)
Cost of goods sold 4,000
Merchandise Inventory 4,000
(Recorded the cost of goods sold)
Given the following information for Albright Company, what was the total manufacturing cost variance? Manufacturing Costs Actual Costs Standard Cost at Actual Volume Budgeted Cost Direct materials $ 80,300 $ 76,000 $ 71,250 Direct labor 77,000 72,500 68,400 Factory overhead 44,800 48,000 45,600 Total $202,100 $196,500 $185,250 a.$5,600 unfavorable b.$(5,600) favorable c.$16,850 unfavorable d.$3,200 unfavorable
Answer:
Total manufacturing cost variance = $5,600 unfavorable
Explanation:
The total manufacturing cost variance is the difference between the actual total manufacturing cost incurred and the standard manufacturing cost for the actual output achieved.
The manufacturing cost is the sum of the direct material cost and direct labour cost and factory production overhead.
Actual total Manufacturing cost = 202,100
Standard manufacturing cost=$196,500
Variance = $202,100- $196,500=$5,600 unfavorable
Total manufacturing cost variance = $5,600 unfavorable
When negotiators have an audience watching their progress in the negotiations, the audience's negotiator: is more likely to give in to the other party's demands. pays more attention to saving face. feels and acts the same as if no one were viewing the negotiation. tends to be more willing to make concessions to the other party. tends to feel more cooperative and is more willing to make concessions to the other party.
Answer:
Pays more attention to saving face.
Explanation:
Negotiation
This is simply a social process through which interdependent people with conflicting interests finds out how they will allocate resources or work together in the future. It is also defined as discussion process or procedures by which two or more parties aim for mutually acceptable agreement. Those involved are called negotiators.
An Audience
This is simply regarded as any person or group of individuals who are not directly involved in, influenced or affected by a negotiation. They do have a chance to observe and react to the ongoing events and sometimes are drawn into the negotiation.
The effect of audience on negotiator includes making them to
1. Try harder and act tougher that is If they know they are under surveillance, negotiators will use distributive bargaining manner.
2. Seek positive reactions
3. Push them into irrational behavior
You are provided with the following information for Sandhill Co., effective as of its April 30, 2022, year-end.
Accounts payable $ 848
Accounts receivable 900
Accumulated depreciation—equipment 630
Cash 1,360
Common stock 16,300
Cost of goods sold 1,000
Depreciation expense 315
Dividends 310
Equipment 2,500
Goodwill 1,900
Income tax expense 175
Income taxes payable 135
Insurance expense 360
Interest expense 460
Inventory 950
Investment in land 15,000
Land 3,200
Mortgage payable (long-term) 4,500
Notes payable (short-term) 62
Prepaid insurance 70
Retained earnings (beginning) 1,700
Salaries and wages expense 850
Salaries and wages payable 275
Sales revenue 6,200
Stock investments (short-term) 1,300
Prepare an income statement for Sandhill Co. for the year ended April 30, 2022.
Prepare a retained earnings statement for Sandhill Co. for the year ended April 30, 2022. (List items that increase retained earnings first.)
Answer:
SANDHILL CO.
Income Statement
For the Year Ended April 30, 2022
Revenues
Sales revenue $6,200
Expenses
Cost of Goods Sold $1,000
Depreciation expense $315
Income tax expense $175
Insurance expense $360
Interest expense $460
Salaries & Wages expenses $850
Total Expenses $3,160
Net Income $3,040
SANDHILL CO.
Retained Earnings Statement
For the Year Ended April 30, 2022
Retained Earnings, May 1, 2021 $1,700
Add: Net Income $3,040 $4,740
Less: Dividends $310
Retained Earnings, April 30, 2022 $4,430
The following information is available for Sweet Acacia Industries for the year ended December 31, 2022. $38,400 Beginning cash balance Accounts payable increase 9,120 Depreciation expense 65,600 Accounts receivable decrease 7,680 Inventory decrease 4,960 Net income 91,520 Cash received for sale of land at book value 166,400 Cash dividends paid 60,800 Income taxes payable decrease 6,240 129,600 Cash used to purchase land 105,600 Cash used to redeem bonds 256,000 Cash received from issuing stock
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis eg. (15,000).)
Answer:
Sweet Acacia Industries
Statement of Cash Flows
For the Year Ended December 31, 2022
Cash Flows from Operating Activities:
Net income $91520
Adjustments to reconcile net income to
Net cash provided by operating activities
Depreciation expense 65600
Decrease in Accounts Receivable 7680
Decrease in inventory 4960
Increase in accounts payable 9120
Decrease in Income tax payable -6240 $81120
Net cash provided by operating activities $172,640
Cash Flows from Investing Activities:
Sale of Land 166400
Purchase of Land -129600
Net Cash Provided by Investing Activities $36,800
Cash Flows from Financing Activities:
Payment of Dividends -60800
Issuance of Stock 256000
Redemption of Bonds -105600
Net Cash provided by Financing Activities $89,600
Net Increase in Cash $299,040
Cash at Beginning of Period $38,400
Cash at End of Period $337,440
The following selected transactions relate to liabilities of Rocky Mountain Adventures. Rocky Mountain's fiscal year ends on December 31.
January 13: Negotiate a revolving credit agreement with First Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $10 million at the bank's prime rate.
February 1: Arrange a three-month bank loan of $4.3 million with First Bank under the line of credit agreement. Interest at the prime rate of
7% is payable at maturity.
May 1: Pay the 7% note at maturity.
Record the appropriate entries, if any, on January 13, February 1, and May 1.
Answer: See explanation
Explanation:
The appropriate entries will be recorded thus:
13 Jan No entry
1 Feb Debit Cash account $4,300,000
Credit Note payable $4,300,000
(For note issued on borrowing)
1 May Debit Interest Expense $4,300,000 × 7% × 3/12 = $75250
Debit Notes payable $4,300,000
Credit Cash account $4,375,250
(For amount paid on maturity)
You are interested in investing your m0ney, but don't know much about
individual stocks or bonds. What kind of investment would be best for you?
A. Mutual fund
B. Shares of G0ogle or lBM
C. Treasury Bonds
D. Checking account
Answer: A. Mutual Fund
Explanation:
Mutual fund is the kind of investment would be best for a person. Thus, option A is correct.
What is the mutual fund?A mutual fund is a pool of money that is professionally managed by a Fund Manager. It is a trust that collects money from a group of investors with similar investment goals and invests it in stocks, bonds, money market instruments, and/or other securities.
A mutual fund is a type of investment vehicle that pools money from investors who share a common investment goal. Mutual funds make money primarily through sales charges that function similarly to commissions and by charging investors a percentage of assets under management (AUM).
Therefore, option A is correct, that a mutual fund is the best type of investment for a person.
To learn more about the Mutual fund, refer to:
https://brainly.com/question/13247161
#SPJ2
'Teaching profession is an important profession of nation' Justify this statement.
Answer:
A teacher plays a role of a mentor as well as of a facilitator.
Explanation:
Teachers instill knowledge and skills in our youngsters of the nation. They are the nation builders. The state of teaching is stronger because teachers everywhere are leading from their classrooms and taking over new roles to enhance education for teenagers.
A teacher plays a role of a mentor as well as of a facilitator.