I tell you that if you rake all the leaves in my yard, I will show up to Business Law class next week. You immediately come over and start raking the leaves. Halfway through the job you decide to leave to do some extra Business Law reading for fun. I run after you and say, "you didn’t finish, I will sue you for this!" Your best defense is:
Answer: d. There was no valid consideration
Explanation:
Valid consideration is a clause in contract law that states that the contract cannot be valid if both sides did not make a promise to fulfil some duty to each other.
You made a promise that you would come to Business Law class if I raked the yard, however, I never made a promise that I would rake the yard if you came to class. There was therefore no valid consideration.
Pension Plan Entries Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $182,100 for the quarter ended December 31. Journalize the entry to record the accrued pension liability payment to the funding agent on January 15.
Answer:
December 31
Dr Pension expense $182,100
Cr Unfunded pension Liabiltiy $182,100
January 15
Dr Unfunded pension Liabiltiy $182,100
Cr Cash $182,100
Explanation:
Preparation of the entry to record the accrued pension liability payment to the funding agent on January 15
December 31
Dr Pension expense $182,100
Cr Unfunded pension Liabiltiy $182,100
(Being to record quarterly pension Liabiltiy)
January 15
Dr Unfunded pension Liabiltiy $182,100
Cr Cash $182,100
( Being to record the accrued pension liability payment to the funding agent)
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.
Sheridan Company uses a periodic inventory system. Details for the inventory account for the month of January, 2020 are as follows: Units Per unit price Total Balance, 1/1/20 200 $5.00 $1000 Purchase, 1/15/20 120 5.40 648 Purchase, 1/28/20 120 5.50 660 An end of the month (1/31/20) inventory showed that 160 units were on hand. If the company uses FIFO and sells the units for $8 each, what is the gross profit for the month
Answer:
$808
Explanation:
FIFO method assumes that the units to arrive first, will be sold first. This means that the Cost of Goods sold will be based on earlier (old) prices.
Also, the periodic inventory system ensures that the cost of sales and the ending inventory are determined at the end of the period. For this question, the end of period is monthly.
Step 1 : Determine Number of Units Sold
Units Sold = Units available for sale - Inventory Units
= (200 + 120 + 120) - 160
= 440 - 160
= 280 units
Step 2 : Determine Cost of Sales
Cost of Sales = 200 units x $5 + 80 units x $5.40
= $1,432
Step 3 : Determine Gross Profit
Gross Profit = Sales - Cost of Goods Sold
= ($8 x 280 units) - $1,432
= $2,240 - $1,432
= $808
Conclusion
The gross profit for the month is $808
Consider the regression example from your textbook, which estimates the effect of beer taxes on fatality rates across the 48 contiguous U.S. states. If beer taxes were set nationally by the federal government rather than by the states, then A. it would not make sense to use state fixed effect. B. you can test state fixed effects using homoskedastic-only standard errors. C. the OLS estimator will be biased. D. you should not use time fixed effects since beer taxes are the same at a point in time across states.
Answer:
D. You should not use time fixed effects since beer taxes are the same at a point in time across states.
Explanation:
The beer taxes are set by the government of the U.S. The fatality rates are estimated and then regression equation is set to identify any relation between the beer taxes and fatality rates. The U.S. government should not use fixed time effects, the beer taxes are same in all different states of the U.S.
You have been given the following information about the production of Horatio Co., and are asked to provide the plant manager with information for a meeting with the vice president of operations.Standard Cost CardDirect materials (7 pounds at $4 per pound) $28.00Direct labor (0.8 hours at $7) 5.60Variable overhead (0.8 hours at $4 per hour) 3.20Fixed overhead (0.8 hours at $8 per hour) 6.40$43.20The following is a variance report for the most recent period of operations.VariancesCosts Total Standard Cost Price QuantityDirect materials $405,900 $6,577 F $9,660Direct labor 81,178 5,670 U 7,060 U(a) How many units were produced during the period? (Round answers to 0 decimal places, e.g. 125.)(b) How many pounds of raw material were purchased and used during the period? (Round answers to 0 decimal places, e.g. 125.)(c) What was the actual cost per pound of raw materials? (Round to 2 decimal places, e.g. 1.25.)(d) How many actual direct labor hours were worked during the period? (Round answers to 0 decimal places, e.g. 125.)(e) What was the actual rate paid per direct labor hour? (Round to 2 decimal places, e.g. 1.25.)
Answer:
Explanation:
a)
Number of units produced
total standard cost/number of units
410,000/32
12813
answer
b)
How many pounds of raw materials purchased
(Aq used - standard qty allowed)*standard rate = materials Quantity variance
((4AQ - 410,000)=9,300
1. Suppose two types of firms wish to borrow in the bond market. Firms of type A are in good financial health and are relatively low risk. The appropriate premium over the risk-free rate of lending to these firms is 2%. Firms of type B are in poor financial health and are relatively high risk. The appropriate premium over the risk-free rate of lending to these firms is 6%. As an investor, you have no other information about these firms except that type A and type B firms exist in equal numbers. a. At what interest rate would you be willing to lend if the risk-free rate were 5%
Answer:
Type A is 7%, type b is 11%
Explanation:
We have these two firm's as type a and type b
For type A
Interest would be = risk Free rate of 2% + risk free rate of 5% = 7%
For type B
= Risk free rate of 5% + risk free rate of 6% = 11%
I would use the average of this two 9% as interest but this is not going to work for type A because this interest rate is too high. People won't want to pay this much.
Yoyodyne is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Yoyodyne is using ________ to generate new product ideas.
Answer:
b) crowdsourcing
Explanation:
Analyzing the information about the issue, it is correct to say that the multinational Yoyodyne is using the crowdsourcing model, which is a practice of recruiting volunteers to generate new ideas. This practice can confer many advantages for organizations, such as problem solving and innovation from a new perspective and at a lower cost, which can contribute to the success of an organizational campaign. Another advantage of the application of crowdsourcing is the engagement of your target audience, who feel part of an important project and increase their perception of the brand, generating greater loyalty and satisfaction.
You've graduated from college and are now working in an investment firm where you advise clients on investment decisions. Here is the information on a proposed project. Up-front cost: $300,000 Next year's revenue: $15,000 Real interest rate: 8% Depreciation rate: 10% How much profit does the project yield, and should your client invest in the project
Answer:
-$285,000
Client should not invest in the project
Explanation:
Up-front cost : $300,000
Next year's revenue : $15,000
Real interest rate : 8%
Depreciation rate : 10%
Determine how much profit the project will yield
Profit = Revenue - cost
= 15,000 - 300,000
= - $285,000
No the Client should not invest in the project
When happens when demand exceeds supply?
A shortage occurs when demand exceeds supply – in other words, when the price is too low. However, shortages tend to drive up the price, because consumers compete to purchase the product. As a result, businesses may hold back supply to stimulate demand.
This activity is important because marketing students should be aware of career opportunities in sales, how sales people create value for customers, and how the sales function contributes to the overall success of the organization.
Mark will be a junior in college this fall, but is undecided about his major. Over the summer, he visited with an old family friend, Brad Donavan, who has had a lengthy and successful career selling business software and services. He suggests that sales might be a great match for Mark’s personality, interests, and lifestyle. Mark is encouraged and begins looking at job listings and responsibilities associated with various types of sales positions advertised in his area.
The goal of this exercise is to assist Mark by categorizing each of the eight (8) listed job descriptions into one of five sales job category types: (1) new business salesperson, (2) order-taker, (3) missionary salespeople, (4) sales management and support, and (5) other.
Select the appropriate sales job category for each example.
2. The goal of the Channel Sales Manager (CSM) position is to create and manage successful revenue-generating relationships with reseller partners who affect the movement of our products to end user customers.
(Click to select) New Business Salespeople Order-Takers Missionary Salespeople Sales Management and Support Other
4. A primary responsibility of the Route Sales Representative will be to drive a company vehicle to deliver coffee, tea, and other products to customers in assigned territory.
(Click to select) New Business Salespeople Order-Takers Missionary Salespeople Sales Management and Support Other
8. The Key Account Manager is responsible for nurturing key customer relationships and the development of account-specific promotional activities.
(Click to select) New Business Salespeople Order-Takers Missionary Salespeople Sales Management and Support Other
Answer:
Sales Careers and Examples
Example Career
2. Channel Sales Manager (CSM) Sales Management and Support
4. Route Sales Representative Order-Takers
8. The Key Account Manager Missionary Salespeople
Explanation:
Fives Sales Job Categories:
(1) New business salesperson identifies prospects and sells to them.
(2) Order-taker fulfills orders without trying to acquire new ones.
(3) Missionary salespeople do not make actual sales but initiate the process with decision-makers.
(4) Sales management and support render management and support services to salespeople.
(5) Others include salespeople who do not fall into the above categories.
Assume Purity Ice Cream Company, Inc., in Ithaca, NY, bought a new ice cream maker at the beginning of the year at a cost of $9,000. The estimated useful life was four years, and the residual value was $1,000. Assume that the estimated productive life of the machine was 16,000 hours. Actual annual usage was 5,500 hours in Year 1; 3,800 hours in Year 2; 3,200 hours in Year 3; and 3,500 hours in Year 4.
Required:
Complete a separate depreciation schedule for each of the alternative methods.
A. Straight-line.
B. Units-of-production (use four decimal places for the per unit output factor).
C. Double-declining-balance.
Answer:
Straight line depreciation Method
Year Depreciation Cumulative depreciation Net Book value
1. $2000 $2000 $7000
2 $2000 $4000 $5000
3 $2000 $6000 $3000
4. $2000 $8000 $1000
Unit of production
Year Depreciation Cumulative depreciation Net Book value
1 $2,750 $2750 $6250
2. $1,900 $4,650 $4,350
3. $1,600 $6,250 $2,750
4. $1,750 $8,000 $1,000
Double declining method
Year Depreciation Cumulative depreciation Net Book value
1 $4500 $4500 $4500
2. $2250 $6,750 $2250
3. $1125 $7,875 $1125
4. $562.50 $8437.5 $562.50
Explanation:
Book value in year in subsequent years = previous book value - that year's depreciation expense
Accumulated depreciation is sum of depreciation expense
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($9000 - $1000) / 4 = $2000
Depreciation expense each year would be $2000
Accumulated depreciation would increase each year by the depreciation expense, which is $2000.
Net book value in year 1 = $9000 - $2000 = $7000
Net book value in year 1 = $7000 - $2000 = $5000
Net book value in year 1 = $5000 - $2000 = $3000
Net book value in year 1 = $3000 - $2000 = $1000
B. Unit of production = (hours worked that year / total hours of the machine) x (Cost of asset - Salvage value)
Depreciation expense
Year 1 = (5,500 / 16,000) x ($9000 - $1000) = $2,750
Year 2 = (3,800 / 16,000) x ($9000 - $1000) = $1900
Year 3 = (3,200 / 16,000) x ($9000 - $1000) = $1600
Year 4 = (3,500 / 16,000) x ($9000 - $1000) = $1750
Accumulated depreciation in year 1 = $2750
Accumulated depreciation in year 2 = $2750 + $1900 = $4,650
Accumulated depreciation in year 3 = $4,650 + $1600 = $6,250
Accumulated depreciation in year 4 = $6,250 + $1750 = $8000
Book value in year 1 = $9000 - $2,750 = $6250
Book value in year 2 = $6250 - $1900 = $4,350
Book value in year 3 = $4,350 - $1600 = $2750
Book value in year 4 = $2750 - $1750 = $1000
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2x (1/4 ) = 0.5
Depreciation expense in Year 1 = 0.5 x $9000 = $4500
Book value in year 1 = $9000 - $4500 = $4500
Depreciation expense in Year 2 = 0.5 x $4500 = $2250
Book value in year 2 = $4500 - $2250 = $2250
Depreciation expense in Year 3 = 0.5 x $2250 = $1125
Book value in year 3 = $2250 - $1125 = $1125
Depreciation expense in Year 4 = 0.5 x $1125 = $562.50
Book value in year 4 = $1125 - $562.50 = $562.50
Accumulated depreciation in year 1 = $4500
Accumulated depreciation in year 2 = $4500+ $2250 = $6,750
Accumulated depreciation in year 3 = $6,750 + $1125 = $7,875
Accumulated depreciation in year 4 = $7,875 + $562.50 = $8437.5
Determine if the given people are demanders, suppliers, or not involved in the market for loanable funds. a. Latisha wants to save up for a new laptop to use in her business, so she puts aside $100 a month in a bank account until she can save up for it. Latisha is in the market for loanable funds. b. Gerardo borrows $30,000 from his local bank for a new addition to his warehouse. Gerardo is in the market for loanable funds. c. Dana buys $1,200 of stocks every year in her IRA. Dana is in the market for loanable funds.
Answer:
a. Latisha is a supplier in the market for loanable funds
The money that Latisha is depositing in the bank will be used to loan out money to another entity that needs it for investment. Latisha is therefore a supplier of funds.
b. Gerardo is a demander in the market for loanable funds.
Gerado needs loanable funds to increase the size of his warehouse. He is therefore a demander as he is seeking loans.
c. Dana is not involved in the market for loanable funds.
Stocks are not loanable funds. If Dana had borrowed money to buy stock she would be a demander but as she is not, she is not involved in this market.
A sales representative lives in Bloomington and must be in Indianapolis next Thursday. On each of the days Monday, Tuesday, and Wednesday, he can sell his wares in Indianapolis, Bloomington, or Chicago. From past experience, he believes that he can earn $12 from spending a day in Indianapolis, $16 from spending a day in Bloomington, and $17 from spending a day in Chicago. Where should he spend the first three days
Answer:
Bloomington.
Explanation:
Since a sales representative lives in Bloomington and must be in Indianapolis next Thursday, and on each of the days Monday, Tuesday, and Wednesday, he can sell his wares in Indianapolis, Bloomington, or Chicago, and from past experience, he believes that he can earn $ 12 from spending a day in Indianapolis, $ 16 from spending a day in Bloomington, and $ 17 from spending a day in Chicago, to determine where he should spend the first three days, the following calculation must be performed:
Indianapolis: 12 x 3 = 36
Bloomington: 16 x 3 = 48
Chicago: 17 x 3 = 51
Thus, in principle, the representative should spend his 3 days in Chicago, but if the cost of travel is discounted, he should spend those 3 days in Bloomington, since he will earn more money than if he moves in advance to Indianapolis.
Fuqua Company’s sales budget projects unit sales of part 198Z of 10,000 units in January, 12,000 units in February, and 13,000 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $2 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2019.
Requried:
a. Prepare a projected budget for Jan and Feb 2017.
b. Prepare a direct material budget for Jan 2017.
Answer:
Results are below.
Explanation:
To calculate the production budget for January, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
January:
Production= 10,000 + (12,000*0.2)
Production= 12,400 units
February:
Production= 12,000 + 13,000*0.2 - (12,000*0.2)
Production= 12,200
Now, the raw material budget:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 12,400*4 + (12,200*4)*0.4
Purchases= 69,120 pounds
Total cost= 69,120*2= $138,240
"Jack owns a local trucking company. With fuel costs being expensive, Jack wants to evaluate how much fuel, on average, he should store in his 6,800 gallon fuel tank. Each year Jack uses 68,000 gallons of diesel (usage is spread evenly throughout the year). Jack knows with certainly that he can have a load of fuel delivered in 5 days. The price of fuel is $2.04 per gallon and there is a separate $50 ordering fee per order. Jack thinks his holding cost per unit is 40%. If Jack orders at EOQ, what will be the average inventory of fuel in his 6,800 gallon tank?"
Answer: 1443.5 gallons
Explanation:
Thw following can be gotten from the question:
Fuel tank capacity = 6800 gallon
Annual demand, A = 68000 gallons
Ordering cost, O= $50
Carrying cost, C = 40% × $2.04 = $0.816
EOQ = ✓2AO/✓C
= ✓(2×68000×50) / ✓0.816
= ✓6800000 / ✓0.816
= 2887
Average inventory = EOQ/2
= 2887/2
= 1443.5 gallons
Therefore, the average inventory will be 1443.5 gallons.
Ben and Molly are married and will file jointly. Ben generates $300,000 of qualified business income from his single-member LLC (a law firm). He reports his business as a sole proprietorship. Wages paid by the law firm amount to $40,000; the law firm has no significant property. Molly is employed as a tax manager by a local CPA firm. Their modified taxable income is $386,600 (this is also their taxable income before the deduction for qualified business income). Determine their allowable QBI deduction for 2020. $fill in the blank 1
Answer:
A. $8,000
B. $14,400
Explanation:
A. Calculation to determine their tentative QBI based on the W-2 Wages/Capital Investment Limit
First step is to calculate the Applicable Percentage
Applicable percentage= 100%-($386,600 - $326,600)/100,000
Applicable percentage=40%
Now let Calculate the tentative QBI based on the W-2 Wages/Capital Investment Limit
GREATER OF BELOW:
Tentative QBI based on the W-2 Wages/Capital Investment Limit=50% of W-2 wages ($40,000 × 50% × 40%)
Tentative QBI based on the W-2 Wages/Capital Investment Limit=$8,000
OR
Tentative QBI based on the W-2 Wages/Capital Investment Limit=[ W-2 wages of ($40,000 × 25% × 40%)]+ [Unadjusted basis of qualified property of ($0 × 2.5% × 40%)]
Tentative QBI based on the W-2 Wages/Capital Investment Limit=$4,000+$0
Tentative QBI based on the W-2 Wages/Capital Investment Limit=$4,000
Therefore their tentative QBI based on the W-2 Wages/Capital Investment Limit will be $8,000
2. Calculation to Determine their allowable QBI deduction for 2020
First step is to calculate the General QBI deduction
General QBI deduction [($300,000 × 20%)× 40%]
General QBI deduction=$24,000
Second step is to calculate the Reduction Ratio
Reduction ratio= ($386,600 - $326,600)/100,000
Reduction ratio=$60,000/100,000
Reduction ratio= 60%
Now let calculate the allowable QBI deduction for 2020
General QBI deduction $24,000
Less Reduction of W-2 Wages/Capital Investment Limit ($9,600)
[($24,000-$8,000)*60%]
2020 Allowable QBI deduction $14,400
($24,000-$9,600)
Therefore their allowable QBI deduction for 2020 will be $14,400
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.
There are 3 servers in the checkout area. The interarrival time of customers is 2 minutes. The processing time is 5 minutes. The coefficients of variation for the arrival process and the service process are 1 and 0.85 respectively. What will be the impact on the average number of customers in service if one more server is added
Answer:
As the one more server is added the Average number of customers in service reduces from ( 5.585 to 3.019 ) which is a reduction of 2.566
Explanation:
interval time of customers ( a ) = 2 minutes
processing time ( p ) = 5 minutes
coefficient of variation for arrival process ( Cva ) = 1
coefficient of variation for service process ( Cvp ) = 0.85
Determine the impact on the average number of customers in service if one more server is added
For three (3) servers ( m ) we will have
flow rate = 1 / a = 1/2 = 0.5
x = ( 2 (m+1) -1 ) ^0.5
where m = 3 ( number of servers )
hence X = 2.645
now lets determine
i) utilization = p / (m*a). where p = 5 , m = 3 , a = 2
hence utilization ( u ) = 0.833 , 1 - u = 1 - 0.833 = 0.167
ii) Time spent in queue
time spent in queue = 6.17 minutes
number of customers been served = mu = 3 * 0.833 = 2.500
number of customers waiting to be served = waiting time / arrival time
= 6.17 / 2 = 3.085
iii) Average customer in queue = number of customers been serviced + number of customers waiting to be served = 2.5 + 3.085 = 5.585
For 4 servers ( m = 4 )
x = ( 2 (m+1) -1 ) ^0.5
= ( 2 ( 5 ) - 1 ) ^ 0.5 = 3
utilization = p / (m*a). where p = 5 , m = 4 , a = 2
hence utilization = 0.625 ,
Time spent in queue = 1.039 minutes ( using equation 2 )
number of customers been serviced = m* u = 2.5
number of customers waiting to be served = waiting time / arrival time
= 1.039 / 2 = 0.520
Average customer in queue = number of customers been serviced + number of customers waiting to be served = 2.5 + 0.520 = 3.019
hence as the one more server is added the Average number of customers in service reduces from ( 5.585 to 3.019 ) which is a reduction of 2.566
Services Marketing Differs from Product Marketing
Two national firms, the Prestige Hotel and Pro Fitness chains, strive to deliver quality service to their customers. To do so, they address the four core differences between services and goods. In the following scenario, you will be asked to categorize statements about the customer's experiences and the firm's marketing efforts by the core difference they represent.
Economies of developed countries like the United States have become increasingly dependent on services. For example, service industries like retail and information services account for about two-thirds of the U.S. gross domestic product (GDP) and the lion's share of U.S. jobs. The marketing of services differs from goods marketing because of the four fundamental ways in which services differ from goods: they are intangible, inseparable, variable, and perishable.
You will be shown eight statements describing customer experiences and marketing efforts. Read each statement and categorize the item according to the difference between goods and services that it represents by placing the letter of the item in the correct box in the table below.
Customer Experience Marketing Efforts
Intangibility
Inseparability
Preishability
Variability
a. Hotel Stay
b. Use guest pass
c. Hard to convey value
d. Uses Flexipass
e. Satisfaction guarantee?
f. Off-peak rates
g. Managing staff
h. Conflicting experiences
Answer:
Customer Experience :
Conflicting Experiences
Hotel stay
Managing staff
hard to convey value
Marketing Efforts :
Satisfaction guarantee
Use guest pass
Uses Flexipass
Off-peak rates
Explanation:
Marketing is an effort to make customer feel satisfied. The marketing efforts may include offering customers with special guest passes, extra services, satisfaction surveys and customer welcome. Customer experience is based on the management team. The customer experience is based on the comfort in stay and providing services to the customers according to their needs.
Prepare journal entries to record each of the following sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the gross method. Oct. 1 Sold fair trade merchandise for $2, 600, with credit teres n/30; invoice dated October 1. The cost of the nerchandise is $1,450 which had cost $145, is returned to inventory of the merchandise is $890 6 The customer in the October 1 sale returned $260 of fair trade merchandise for full credit. The merchandise, 9 Sold recycled leather merchandise for $1, 250, with credit terms of 1/10, n/30; invoice dated October 11 Received payment for the amount due from the October 1 sale less the return on 0ctober 6.
Answer:
Oct 1
Debit : Accounts Receivable $2,600
Debit : Cost of Sales $1,450
Credit : Sales Revenue $2,600
Credit : Merchandise $1,450
Oct 6
Debit : Sales Revenue $260
Debit : Merchandise $145
Credit : Accounts Receivable $260
Credit : Cost of Sales $145
Oct 9
Debit : Accounts Receivable $1, 250
Debit : Cost of Sales $1,450
Credit : Sales Revenue $1, 250
Credit : Merchandise $1,450
Oct 11
Debit : Cash $2,340
Credit : Accounts Payable $2,340
Explanation:
The perpetual method ensures that the cost of sales and inventory values are calculated after every transaction made.
Therefore, remember to show the cost of sale journal and the resulting decrease in inventory after every sale.
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.
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%.
On May 7, Hatch Company purchased on account 490 units of raw materials at $20 per unit. During May, raw materials were requisitioned for production as follows: 211 units for Job 200 at $16 per unit and 186 units for Job 305 at $20 per unit.Journalize the entry on May 7 to record the purchase. If an amount box does not require an entry, leave it blank. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTSBergan CompanyGeneral Ledger
ASSETS
110 Cash
121 Accounts Receivable
125 Notes Receivable
126 Interest Receivable
131 Materials
132 Work in Process
133 Factory Overhead
134 Finished Goods
141 Supplies
142 Prepaid Insurance
143 Prepaid Expenses
181 Land
191 Factory
192 Accumulated Depreciation-Factory
LIABILITIES
210 Accounts Payable
221 Utilities Payable
231 Notes Payable
236 Interest Payable
241 Lease Payable
251 Wages Payable
252 Consultant Fees Payable
EQUITY
311 Common Stock
340 Retained Earnings
351 Dividends
390 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Wages Expense
531 Selling Expenses
532 Insurance Expense
533 Utilities Expense
534 Office Supplies Expense
540 Administrative Expenses
560 Depreciation Expense-Factory
590 Miscellaneous Expense
710
Interest Expense
Journalize the entry on May 7 to record the purchase and on May 31 to record the requisition from the materials storeroom. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Hatch Company
Journal Entries:
May 7:
Debit 131 Materials $9,800
Credit 210 Accounts Payable $9,800
To record the purchase of materials on account.
May 31: Debit 132 Work in Process:
Job 200 $3,376
Job 305 $3,720
Credit Materials $7,096
To record materials requisitioned for production.
Explanation:
a) Data and Analysis:
May 7: Materials $9,800 Accounts payable $9,800 (490 * $20)
May 31: Work in Progress:
Job 200 $3,376 (211 * $16)
Job 305 $3,720 (186 * $20)
Materials $7,096
Jamison Company purchased the assets of Booker Company at an auction for $5,600,000. An independent appraisal of the fair value of the assets is listed below: Land $1,900,000 Building 2,800,000 Equipment 2,100,000 Trucks 3,400,000 Assuming Jamison allocates the purchase price on the basis of the relative fair values, what amount would be allocated to the Trucks?
Answer:
$1,866,667
Explanation:
Express the Fair Value of Truck as a parentage of Total Fair Value and multiply by Total Purchase Price
Fair Value of Truck = $3,400,000
Total Fair Value = $1,900,000 + $2,800,000 + $2,100,000 + $3,400,000 = $10,200,000
Cost of Truck = $3,400,000 / $10,200,000 x $5,600,000 = $1,866,667
The amount that would be allocated to the Trucks is $1,866,667
Question 2 (Multiple Choice Worth 5 points)
(05.02 LC)
The smallest, most local type of economy is a
O market economy
O traditional economy
O mixed economy
command economy
Traditional economy is the smallest. most local type of economy.
In an economy with no government and no foreign sector, autonomous consumer spending is $250 billion, planned investment spending is $350 billion, and the marginal propensity to consume is 2/3. What is the income-expenditure equilibrium GDP (i.e. Y*)
Answer: $1800 billion.
Explanation:
Based on the information given, the consumption function will be given as:
= a + bY
= 250 + 2/3Y
Then, aggregate expenditure will be:
= 250 + 2/3Y + 350
= 600 + 2/3Y
Then, the income-expenditure equilibrium GDP (i.e. Y*) will be at the point that the real GDP is equal to the aggregate expenditure. This will be:
Y = 600 + 2/3Y
Y - 2/3Y = 600
1/3Y = 600
Y = 3 × 600
Y = 1800
Therefore, the income-expenditure equilibrium GDP is $1800 billion.
Assume that Simple Co. had credit sales of $248,000 and cost of goods sold of $148,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $2, 800. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $230. What amount of Bad Debt Expense would the company record as an end-of-period adjustment?
Answer: $2,570
Explanation:
Simple estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $2,800.
This account has a credit balance of $230.
The amount of Bad Debt expense is the amount that will take it to a balance of $2,800:
= 2,800 - 230
= $2,570
Shining Cookie Company, Inc., in Murfreesboro, TN bought a new ice cream maker at the beginning of the year at a cost of $12,000. The estimated useful life was four years, and the residual value was $960. Assume that the estimated productive life of the machine was 9,200 hours. Actual annual usage was 3,680 hours in year 1; 2,760 hours in year 2; 1,840 hours in year 3; and 920 hours in year 4.
Required:
1. Complete a separate depreciation schedule for each of the alternative methods. (Do not round intermediate calculations.)
a. Straight-line.
b. Units-of-production (use four decimal places for the per unit output factor).
c. Double-declining-balance.
Answer:
a. Straight Line :
Year 1 : $2760
Year 2 : $2760
Year 3 : $2760
Year 4 : $2760
b. Units of production :
Year 1 : $4416
Year 2 : $3312
Year 3 : $2208
Year 4 : $1104
a. Double Declining Balance :
Year 1 : $6000
Year 2 : $3000
Year 3 : $1500
Year 4 : $560
Explanation:
a. Straight Line Depreciation:
( Cost of Ice cream maker - Residual Value ) / Useful life in years
( $12,000 - $960 ) / 4 = $2760
b. Units of production :
( Cost of Ice cream maker / Total Productive machine hours ) * Annual Usage
Year 1 ($12,000 / 9200 ) * 3680 = 4416
Year 2 ($12,000 / 9200 ) * 2760 = 3312
Year 3 ($12,000 / 9200 ) * 1840 = 2208
Year 4 ($12,000 / 9200 ) * 920 = 1104
c. Double declining method :
Year 1: $12,000 * 50% = $6000
Year 2 : $12,000 * 25% = $3000
Year 3 : $12,000 * 12.5% = $1500
Year 4 : $12,000 * 6.25% = $560
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.