SY Manufacturers (SYM) is producing T-shirts in three colors: red, blue, and white. The monthly demand for each color is 3,487 units. Each shirt requires 0.75 pound of raw cotton that is imported from the Luft-Geshfet-Textile (LGT) Company in Brazil. The purchasing price per pound is $1.55 (paid only when the cotton arrives at SYM's facilities) and transportation cost by sea is $0.70 per pound. The traveling time from LGT’s facility in Brazil to the SYM facility in the United States is two weeks. The cost of placing a cotton order, by SYM, is $186 and the annual interest rate that SYM is facing is 32 percent of total cost per pound.
a. What is the optimal order quantity of cotton? (Round your answer to the nearest whole number.)
Optimal order quantity pounds
b. How frequently should the company order cotton? (Round your answer to 2 decimal places.)
Company orders once every months
c. Assuming that the first order is needed on 1-Jul, when should SYM place the order?
17-Jun
1-Jul
15-Jul
d. How many orders will SYM place during the next year? (Round your answer to 2 decimal places.)
Number of orders times
e. What is the resulting annual holding cost? (Round your answer to the nearest whole number.)
Annual holding cost $ per year
f. What is the resulting annual ordering cost?
Annual ordering cost $
g. If the annual interest cost is only 5 percent, how will it affect the annual number of orders, the optimal batch size, and the average inventory?

Answer:

Kindly check explanation

Explanation:

Given the following :

Price per pound = $1.55

Raw material required = 0.75 pound

Transport cost by sea = $0.70

Monthly demand for each of the three colors = 3487

EOQ = √2DS / H

D = 3 * 12 * 3487 * 0. 75 = 94149

Total cost of purchase = 1.55 + 0.70 = 2.25

Setup cost (S) = $186

Holding cost = 32% * 2.25 = 0.72

EOQ = √(2*94149*186) / 0.72

= 6974.50

b. How frequently should the company order cotton?

Annual demand / EOQ

94149 / 6974.50

= 13.50 ;

12 months / 13.50 = 0.89 month

c. Assuming that the first order is needed on 1-Jul, when should SYM place the order?

Since lead time is 2 weeks, order should be made 2 weeks before : 17th June

d. How many orders will SYM place during the next year? (Round your answer to 2 decimal places.)

Annual demand / EOQ

94149 / 6974.50

= 13.50 times

e. What is the resulting annual holding cost? (Round your answer to the nearest whole number.)

Holding cost * EOQ /2

0.75 * (6974.50/2) = 2615.44

f. What is the resulting annual ordering cost?

Annual ordering cost $

Ordering cost * number of orders

$186 * 13.50 = $2,511

Deal Leasing leased equipment to Hand Company on January 1, 2021. The leased equipment's book value is $420,000 with no estimated residual value at the end of its useful life. The remaining useful life of the leased equipment is 15 years. The lease payments were calculated to provide the lessor a 10% return. Ten annual lease payments of $60,000 are due at the beginning of each year beginning January 1, 2021. Both companies use the straight-line method in depreciation/amortization their assets.

Suppose that France and Austria both produce rye and wine. France's opportunity cost of producing a bottle of wine is 4 bushels of rye while Austria's opportunity cost of producing a bottle of wine is 10 bushels of rye. By comparing the opportunity cost of producing wine in the two countries, you can tell that __________ has a comparative advantage in the production of wine and __________has a comparative advantage in the production of rye.


Suppose that France and Austria consider trading wine and rye with each other. France can gain from specialization and trade as long as it receives more than __________of rye for each bottle of wine it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than __________of wine for each bushel of rye it exports to France.

Based on your answer to the last question, which of the following prices of trade (that is, price of wine in terms of rye) would allow both Austria and France to gain from trade?

a. 7 bushels of rye per bottle of wine
b. 4 bushels of rye per bottle of wine
c. 1 bushel of rye per bottle of wine
d. 11 bushels of rye per bottle of wine

Rodeo, Inc. has a contribution margin ratio of 30%. This month, profit was $12,300 and fixed costs were $15,600. How much was Laredo's sales revenue

A company reports accounting data in its financial statements. This data is used for financial analyses that provide insights into a company's strengths, weaknesses, performance in specific areas, and trends in performance. These analyses are often used to compare a company's performance to that of Most decision makers and analysts use five groups of ratios to examine the different aspects of a company's performance.
Indicate whether each of the following statements regarding financial ratios are true or false?
Statement True False
1. A company exhibiting a high liquidity ratio means it is likely to have enough resources to pay off its short-term obligations
2. Asset management ratios provide insights into management's efficiency in using a firm's working capital and long-term assets.
3. Debt management or financial leverage ratios help analysts determine whether a company has sufficient cash to repay its short- term debt obligations.
4. One possible explanation for an increase in a firm's profitability ratios over a certain time span is that the company's income has increased
5. Market-value ratios help analysts figure out what investors and the markets think about the firm's growth prospects or current and future operational performance
Ratio analysis is an important component of evaluating company performance. It can provide great insights into how a company matches up against itself over time and against other players within the industry However, like many tools and techniques, ratio analysis has a few limitations and weaknesses Which of the following statements represent a weakness or limitation of ratio analysis?
a. A firm may operate in multiple industries.
b. A firm's financial statements show only one period of financial data.
c. Different firms may use different accounting practices.

Robert G. Flanders Jr., the state-appointed receiver for Central Falls, RI, said his city's declaration of bankruptcy had proved invaluable in helping it cut costs. Before the city declared bankruptcy, he said, he had found it impossible to wring meaningful concessions out of the city's unions and retirees, who were being asked to give up roughly half of the pensions they had earned as the city ran out of cash.
True or False

In Coronado Company, total materials costs are $38,000, and total conversion costs are $54,480. Equivalent units of production are materials 10,000 and conversion costs 12,000. Compute the unit costs for materials and conversion costs.


Materials cost per unit:__________ $
Conversion cost per unit:________ $
Compute total manufacturing costs:________ $

Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms:
Silver Enterprises
Current assets $ 10,000
Current liabilities $ 7,840
Other assets 3,100
Long-term debt 5,110
Net fixed assets 17,300
Equity 17,450
Total $ 30,400
Total $ 30,400
All Gold Mining
Current assets $ 2,920
Current liabilities $ 2,620
Other assets 1,380
Long-term debt 0
Net fixed assets 6,110
Equity 7,790
Total $ 10,410
Total $ 10,410
Construct the balance sheet for the new corporation if the merger is treated as a purchase for accounting purposes. The market value of All Gold Mining's fixed assets is $7,510; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $14,660 in new long-term dept to finance the acquisition.

Last week, an investigative reporter for a major metropolitan newspaper discovered that the doctors conducting clinical trials of a new cancer treatment drug are also the principal shareholders in Cancer Solutions Inc. (CSI). CSI is the company developing and attempting to market the drug. Upon being interviewed by federal authorities, the doctors acknowledged their conflict of interest but reported that they were sold the shares at a 75% discount by CSI's chief financial officer. The CFO was concerned that CSI might not be able to meet its annual performance objectives and in turn pay his anticipated multimillion-dollar bonus.
Does an agency conflict exist between CSI's CFO and the company's shareholders?
a. Yes; CSI's CFO engaged in unethical conduct to manipulate the firm's short-term earnings and improve the likelihood of receiving his annual bonus.
b. Yes; the shares should not have been sold at a 75% discount, which is price discrimination.
c. No; professionals, such as doctors and professional money managers, would not participate in unethical activities.
d. No; in general, shareholders are satisfied with company officers engaging in any type of legal or illegal activity to ensure the chances of them receiving greater dividend payments.
Which of the following actions will help ease agency conflicts and better align managers' objectives with the firm's shareholder wealth?
a. Pay the manager a combination of salary and stock options (phased in over several years) that reward him or her for consistently increasing shareholder wealth.
b. Pay the manager a large base salary with a huge stock option package that matures on a single date.
Amalgamated Metals Corporation's stockholders are mostly individual investors, and there is relatively little institutional ownership. If several pension and mutual funds were to take large positions in Amalgamated Metals Corporation's stock, direct shareholder intervention would be___________ likely to motivate the firm's management.

On January 1, 2018, the chief operating officer of New Belgium, Jeff Stambaugh, signed a noncancellable lease for street equipment. The lease was for 10 years. The present value of payments expected to be made during the lease is $75,152. The township’s incremental borrowing rate is 7 percent. The $10,000 annual lease payment is due on the first day of each year beginning in 2018.

Required:
Prepare all journal entries necessary to record the lease transaction for 2018 and the payment made in 2019.

Air conditioning for a college dormitory will cost $2.1 million to install and $170,000 per year to operate at current prices. The system should last 19 years. The real cost of capital is 9%, and the college pays no taxes. What is the equivalent annual cost

Assume General Electric Company agreed in May 2016 to construct a nuclear generator for NSTAR, a utility company serving the Boston area. General Electric Company estimated that its construction costs would be $960 million. The contract price of $1,200 million is to be paid as follows: $400 million at the time of signing; $400 million on December 31, 2016; and $400 million at completion in May 2017. General Electric incurred the following costs in constructing the generator: $384 million in 2016 and $576 million in 2017.

Required:
Compute the amount of General Electric's revenue, expense, and income for both 2016 and 2017, and for both years combined, under the cost-to-cost revenue recognition method. Enter dollar amounts in millions.

A credit granted to a customer for returned goods requires a debit to a. Accounts Receivable and a credit to a contra-revenue account. b. Cash and a credit to Sales Returns and Allowances. c. Sales Revenue and a credit to Cash. d. Sales Returns and Allowances and a credit to Accounts Receivable.\

A company has total equity of $1,965, net working capital of $175, long-term debt of $940, and current liabilities of $1,770. What is the company's net fixed assets?

At Bargain Electronics, it costs $32 per unit ($19 variable and $13 fixed) to make an MP3 player at full capacity that normally sells for $46. A foreign wholesaler offers to buy 3,180 units at $26 each. Bargain Electronics will incur special shipping costs of $4 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order.
Reject Accept Net Income
Order Order Increase (Decrease)
Revenues
Costs-Manufacturing
Shipping
Net income

At a local business school, there is a toasted submarine sandwich process that uses a conveyor-fed oven. ( See picture below) Alice is the sole operator of the sub making process. In the first step of the process, she spends 2 minutes putting various ingredients in the sub. Then, she puts the sub on a conveyor belt and, over a period of 12 minutes, the conveyor moves the sub from the beginning of the oven to the end of the oven, fully toasting it. After the sub comes out of the oven, Alice spends 1 minute slicing the sandwich and putting it in a box. At most, 5 subs can fit in the oven at once. The toasting time in the oven does not depend on the number of subs in the oven.

Required:
a. Draw a process-flow chart for the sandwich-making process.
b. Calculate the hourly capacity of this sandwich-making process.
c. Suppose another employee is hired to do the slicing and boxing, and Zeynep now only loads the sandwiches with the right ingredients. What is the hourly capacity of this process with the additional employee?

On January 1, 2013, Parent Company purchased 80% of the common stock of Subsidiary Company for $280,000. On this date, Subsidiary had total owners' equity of $250,000 (common stock $20,000; other paid-in capital, $80,000; and retained earnings, $150,000). Any excess of cost over book value is due to the under or overvaluation of certain assets and liabilities. Inventory, which was sold in the third quarter, is undervalued $5,000. Land is undervalued $20,000. Buildings and equipment have a fair value which exceeds book value by $30,000, and a 5-year expected life. Bonds payable are overvalued $10,000. The remaining excess, if any, is due to goodwill. Subsidiary had net income of $60,000 and paid $3,000 in dividends during 2013. Parent had net income of $50,000 and paid $1,000 in dividends during 2013. Assume that Parent uses equity method to record its investment.

Required:
a. Prepare a value analysis schedule for this business combination.
b. Prepare the determination and distribution schedule for this business combination
c. Prepare the necessary elimination entries in general journal form.

Identify which control activity is violated in each of the following situations, and explain how the situation creates an opportunity for fraud or inappropriate accounting practices.

1. Once a month, the sales department sends sales invoices to the accounting department to be recorded.

2. Leah Hutcherson orders merchandise for Rice Lake Company; she also receives merchandise and authorizes payment for merchandise.

3. Several clerks at Great Foods use the same cash register drawer

The________ of the message is based on the number of times an average person in the target market is exposed to a message.


Frequency


Quantitative value


Reach


Exposure rate

Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow.

Process Activity Overhead Cost Driver Quantity
Components   Changeover 458,000 Number of batches 810   
   Machining 307,000 Machine hours 7,650   
   Setups 232,000 Number of setups 160   

997,000

Finishing   Welding 188,000 Welding hours 4,100   
  Inspecting 231,000 Number of inspections 835   
  Rework 62,000 Rework orders 150   

481,000   

  Support   Purchasing 143,000 Purchase orders 525   
  Providing space 32,000 Number of units 5,020   
  Providing utilities 61,000 Number of units 5,020   

236,000

Additional production information concerning its two product lines follows.

Model 145 Model 212
Units produced 2,000 3,020
Welding hours 1,200 2,900
Batches 405 405
Number of inspections 465 370
Machine hours 2,350 5,300
Setups 80 80
Rework orders 100 50
Purchase orders 350 175


Required:
Determine departmental overhead rates and compute the overhead cost per unit for each product line.

The following information pertains to Yuji Corporation:

January 1, 20X1 December 31, 20X1
Raw materials inventory $34,000 $38,000
Work-in-process inventory 126,000 145,000
Finished goods inventory 76,000 68,000
Costs incurred during the year 20X1 were as follows:

Raw material purchased $116,000
Wages to factory workers 55,000
Salary to factory supervisors 25,000
Salary to selling and administrative staff 40,000
Depreciation on factory building and equipment 10,000
Depreciation on office building 12,000
Utilities for factory building 5,000
Utilities for office building 7,500

Required:
Sales revenue during 20X1 was $300,000. The income tax rate is 21%. Compute the following:

a. Cost of raw materials used.
b. Cost of goods manufactured/completed.
c. Cost of goods sold.
d. Gross margin.
e. Net income.

4. If you enter your credit card information as a requirement for a "free trial" there is
a possibility you could be charged automatically after the trial period is up.
True
O
False
HELP ME

You are invested in two hedge funds. The probability that hedge fund Alpha generates positive returns in any given year is 60%. The probability that hedge fund Omega generates positive returns in any given year is 70%. Assume the returns are independent. What is the probability that both funds generate positive returns in a given year? What is the probability that both funds lose money?

Financial Assertions and Audit Objectives. You are engaged to examine the financial statements of Spillane Company for the year ended December 31. Assume that on November 1, Spillane borrowed $500,000 from Second National Bank to finance plant expansion. The long-term note agreement provided for the annual payment of principal and interest over five years. The existing plant was pledged as security for the loan. Due to the unexpected difficulties in acquiring the building site, the plant expansion did not begin on time. To use the borrowed funds, management decided to invest in stocks and bonds and on November 16, invested the $500,000 in publicly traded securities
Required:
Develop specific assertions (audit objectives) related to securities (assets) based on management’s five (PCAOB) general assertions.

Consider a multifactor model with two factors. A well-diversified portfolio (Portfolio P) has a beta of 0.75 on factor 1 and a beta of 1.25 on factor 2. The risk premiums on the factor 1 and factor 2 are 1% and 7%, respectively. The risk-free rate of return is 7%. What is the expected return on portfolio P, according to a two-factor model

A _____ has nonprofit status and is owned by its members

A. Securities firm

B. Investment company

C. Savings bank

D. Credit union

12
-
50what is the answer please​

Assume the bonds below have the same term and principal and that the state or local government that issues the municipal bond has a good credit rating. Which list has bonds correctly ordered from the one that pays the highest interest rate to the one that pays the lowest interest rate

Van Frank Telecommunications has a patent on a cellular transmission process.
1. The company has amortized the $19.80 million cost of the patent on a straight-line basis, since it was acquired at the beginning of 2012.
2. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost.
3. The decision was made at the end of 2016 (before adjusting and closing entries).
What is the appropriate adjusting entry for patent amortization in 2016 to reflect the revised estimate.
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) Record the adjusting entry for patent amortization in 2016.

Rutgers Racquet Club adjusts its accounts monthly. Club members pay their annual dues in advance by January 15. The entire amount is initially credited to Unearned Membership Dues (a liability account). At the end of each month, an appropriate portion of this amount is credited to Membership Dues Earned. Guests of the club members normally pay a court rental fee before being allowed to play. The amounts collected are credited to Court Rental Revenue at the time of receipt. Certain guests are billed for court rental fees at the end of the month. The following information can be used for preparing adjusting entries at December 31, 20x5:

1. Salaries earned by club employees that have not yet been recorded or paid amount to $3,700.
2. A local VFW sponsored a tournament at Rutgers Racquet Club that took place on December 22, 20x5 of the current year. At December 31, the $1,200 owed by the VFW for court rentals on December 22 had not yet been recorded or billed.
3. A one-year fire and flood insurance policy had been purchased on May 31. The entire premium of $7,200 was initially recorded as Prepaid Insurance.
4. Rutgers Racquet Club was built in 20x1. The cost of the building and equipment was $320,000. Depreciation of the club's building and equipment is based on an estimated life of 20 years and a salvage value of $80,000. The straight-line method of depreciation is used.
5. A 36-month bank loan in the amount of $108,000 had been obtained by Rutgers Racquet Club on December 1, 20x5. Interest is computed at an annual rate of 9%. The entire $108,000, plus all of the interest accrued over the 36-month life of the loan, is due in full on December 1, 20x8.
6. Membership dues earned in December, 20x5 for collections received at January 15, 20x5 amounts to $52,000.
7. Unrecorded Income Taxes Expense accrued in December amounts to $16,000. This amount will not be paid until January 15, 20x6.

Required:
For each of the items above, prepare the necessary adjusting entry at December 31, 20x5.

The following were selected from among the transactions completed by Babcock Company during November of the current year:

Nov. 3 Purchased merchandise on account from Moonlight Co., list price $85,000, trade discount 25%, terms FOB destination, 2/10, n/30.

Nov.4 Sold merchandise for cash, $37,680. The cost of the merchandise sold was $22,600.

Nov. 5 Purchased merchandise on account from Papoose Creek Co., $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice.

Nov. 6 Returned $13,500 ($18,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.

Nov. 8 Sold merchandise on account to Quinn Co., $15,600 with terms n/15. The cost of the merchandise sold was $9,400.

Nov. 13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6.

Nov. 14 Sold merchandise on VISA, $236,000. The cost of the merchandise sold was $140,000.

Nov. 15 Paid Papoose Creek Co. on account for purchase of November 5.

Nov. 23 Received cash on account from sale of November 8 to Quinn Co.

Nov. 24 Sold merchandise on account to Rabel Co., $56,900, terms 1/10, n/30. The cost of the merchandise sold was $34,000.

Nov. 28 Paid VISA service fee of $3,540.

Nov. 30 Paid Quinn Co. a cash refund of $6,000 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,300.

Journalize the transactions.