Answer:
$24,000
Explanation:
Allen, Capital $60,000 (20% profits)
Burns, Capital $30,000 (30% profits)
Costello, Capital $90,000 (50% profits)
To determine the balance in Burns's account using the bonus method, we must first determine the bonus to be allocated between Burns and Allen:
bonus = amount paid to Costello - Costello's basis = $100,000 - $90,000 = $10,000
now the bonus ($10,000) must be allocated in the same way as profits or losses:
Allen, Capital ⇒ 20% profits
Burns, Capital ⇒ 30% profits
total 50%, so Burns should be allocated 3/5 of the bonus = $10,000 x 3/5 = $6,000
Burns's capital account = original capital balance - allocated bonus = $30,000 - $6,000 = $24,000
When Costello withdraws from the partnership with a payout of $100,000, Burns's capital account is adjusted to $27,000 after accounting for his share of the bonus deduction using the bonus method.
The question revolves around the withdrawal of a partner from a partnership and the use of the bonus method to adjust capital accounts after the withdrawal. The partnership consists of Allen, Burns, and Costello, with capital balances of $60,000, $30,000, and $90,000, respectively. Profits and losses are shared at rates of 20%, 30%, and 50% respectively. When Costello withdraws and receives $100,000, exceeding his capital account balance by $10,000, this excess amount is considered a bonus which is absorbed by the remaining partners based on their profit and loss ratio. Since Burns has a 30% share in profits and losses, he absorbs 30% of the $10,000 bonus, equating to a $3,000 deduction from his capital account. Therefore, after Costello's withdrawal, Burns's capital account is adjusted to $27,000.
3) Nerdware Corp. began a new software development project in 2017. The project reached technological feasibility on June 30, 2018, and was available for release to customers at the beginning of 2019. Development costs incurred prior to June 30, 2018, were $5,000,000 and costs incurred from June 30 to the product release date were $1,700,000. The 2019 revenues from the sale of the new software were $5,000,000, and the company anticipates additional revenues of $6,500,000. The economic life of the software is estimated at four years. Amortization of the software development costs for the year 2019 would be:
Answer:
$739,160.00
Explanation:
The amount of amortization recorded in 2019 would reflect the sales revenue made in 2019.
The appropriate way to calculate the amortization charge each year is to divide the year's revenue by total revenue expected from the software over the four-year period,then multiply by the cost incurred on the software from the day the project reached technological feasibility till the date of product release as shown below
% of cost amortized in 2019=$5,000,000/($5,000,000+$6,500,000)=43.48%
Amortization in 2019=43.48%*$1,700,000=$739,160.00
The cost incurred to the date of technological feasibility should be expensed to profit or loss account
Answer:
506.09
Explanation:
i think this is right
hums 202 Which of the following describes a consumer installment loan? A. A loan you get based on the tax refund that you expect to receive. B. A loan that is repaid in equal monthly payments for a specific period of time, usually several years. C. A loan where you have to promise to give the bank your assets if you do not repay the loan. D. A loan for consumer goods where you own the item(s) at the end of the payment period.
Final answer:
A consumer installment loan is repaid in equal monthly payments over a set time frame and can be used for personal expenses. It differs from secured loans like mortgages or auto loans and can be unsecured with no collateral necessary.
Explanation:
A consumer installment loan is best described as a loan where the borrower repays the principal and interest in equal monthly payments over a set period of time. This type of loan can be used to finance various personal expenses such as purchasing a vehicle, appliances, or an education. Unlike some loans that may require collateral (secured loans) like mortgages or auto loans, consumer installment loans can also be unsecured, meaning no collateral is required. When choosing a loan, it's vital to understand the terms, including the payback period, the interest rate, and whether the loan is secured or unsecured.
No More Pencils, Inc., disburses checks every two weeks that average $87,000 and take six days to clear. How much interest can the company earn annually if it delays transfer of funds from an interest-bearing account that pays 0.011 percent per day for these six days? Ignore the effects of compounding interest
Answer:
Interest $1,492.92
Explanation:
The company interest will be the amount of the checks multiplied by the number of days it will delay payment then multiply by the number of weeks that checks will be disbursed times the daily interest rate.
Interest = $87,000(6)(52 / 2)(.00011)
Interest =$522,000×26×0.00011
Interest = $1,492.92
Therefore $1,492.92 is the amount of interest that the company earn annually if it delays transfer of funds from an interest-bearing account that pays 0.011 percent per day for these six days.
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016:
Common stock—$20 par value, 100,000 shares authorized,
45,000 shares issued and outstanding $ 900,000
Paid-in capital in excess of par value, common stock 70,000
Retained earnings 400,000
Total stockholders' equity $ 1,370,000
In year 2017, the following transactions affected its stockholders’ equity accounts.
Jan. 1 Purchased 4,500 shares of its own stock at $15 cash per share.
Jan. 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record.
Feb. 28 Paid the dividend declared on January 5.
July 6 Sold 1,688 of its treasury shares at $19 cash per share.
Aug. 22 Sold 2,812 of its treasury shares at $12 cash per share.
Sept. 5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record.
Oct. 28 Paid the dividend declared on September 5.
Dec. 31 Closed the $428,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Required:
1. Prepare journal entries to record each of these transactions for 2017.
2. Prepare a statement of retained earnings for the year ended December 31, 2017.
3. Prepare the stockholders' equity section of the company’s balance sheet as of December 31, 2017.
Prepare a statement of retained earnings for the year ended December 31, 2017. (Amounts to be deducted should be indicated by a minus sign.)
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
1. Journal Entries
On Jan 1
Treasury stock A/c ($15 × 4,500) Dr. $67,500
To Cash A/c $67,500
(Being the purchase of own shares is recorded)
On Jan 5
Retained earnings A/c Dr. {(45,000 - 4,500) × $4 } $162,000
To Dividends payable A/c $162,000
(Being the dividend payable is recorded)
On Feb 28
Dividends payable A/c Dr. $162,000
To Cash A/c $162,000
(Being the dividend is paid)
On July 6
Cash ($19 × 1,688) Dr. $32,072
To Treasury stock A/c ($15 × 1,688) $25,320
To paid in capital in excess of treasury stock A/c $6,752 (Being the sale of treasury shares is recorded)
On Aug 22
Cash A/c ($12 × 2,812) Dr. $33,744
Paid in capital in excess of par-treasury stock Dr. $6,752
Retained earnings Dr. $1,684
To Treasury stock A/c ($15 × 2,812) $42,180
(To Record the sold treasury shares)
On Sep 5
Retained earnings A/c($4 × 45,000) Dr. $180,000
To Dividends payable A/c $180,000
(Being the dividend is declared)
On Oct 28
Dividends payable A/c Dr. $180,000
To Cash A/c $180,000
(Being the dividend is paid)
On Dec 31
Income summary Dr. $428,000
To Retained earnings A/c $428,000
(Being the income summary account is closed)
2. Statement of Retained Earnings
Particular Amount($) Total Amount($)
Opening balance $400,000
Add - Net income $428,000 $828,000
Less - treasury stock $1,684
Less - cash dividend $342,000 ($343,684)
Closing balance $484,316
3. Stockholders Equity Section of the Balance Sheet
Particular Amount ($)
Common stock $900,000
Add - Paid in capital in excess of par-common stock $70,000
Total contributed capital $970,000
Add - Retained earnings $484,316
Total equity of stockholders 1,454,316
This answer provides the necessary journal entries for Kohler Corporation's 2017 transactions and prepares a statement of retained earnings and the stockholders' equity section for December 31, 2017. It details changes in common stock, paid-in capital, retained earnings, and treasury stock transactions. The final stockholders' equity is calculated based on these activities.
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016:
Common stock—$20 par value, 100,000 shares authorized, 45,000 shares issued and outstanding $900,000
Paid-in capital in excess of par value, common stock $70,000
Retained earnings $400,000
Total stockholders' equity $1,370,000
In 2017, several transactions affected its stockholders’ equity accounts. Below are the journal entries for each transaction:
Journal Entries
Jan. 1: Purchased 4,500 shares of its own stock at $15 cash per share.Statement of Retained Earnings
For the year ended December 31, 2017
Retained Earnings, January 1, 2017: $400,000
Add: Net Income $428,000
Less: Dividends ($324,000)
Retained Earnings, December 31, 2017: $504,000
Stockholders' Equity Section
As of December 31, 2017:
Common Stock $900,000
Paid-in Capital in Excess of Par Value $70,000
Retained Earnings $504,000
Total Stockholders' Equity $1,474,000
Clampett, Inc., has been an S corporation since its inception. On July 15, 2020, Clampett, Inc., distributed $50,000 to J.D. His basis in his Clampett, Inc., stock on January 1, 2020, was $45,000. For 2020, J.D. was allocated $10,000 of ordinary income from Clampett, Inc., and no separately stated items. What is the amount of income J.D. recognizes related to Clampett, Inc., in 2020
Answer:
$5,000
Explanation:
Given:
Basis distribution = $50,000
Basis stock = $45,000
Ordinary income = $10,000
Computation of Capital gain:
Capital gain = Basis distribution - Basis stock - Ordinary income
Capital gain = $50,000 - $45,000 - $10,000
Capital gain = - $5,000
Computation of J.D. income related to Clampett = Ordinary income + Capital gain
Computation of J.D. income related to Clampett = $10,000 - $5,000
Computation of J.D. income related to Clampett = $5,000
Big Boy Burgers (BBB) is an American fast food restaurant chain that has franchises around the world. Recently, BBB managers have been concerned about protecting the firm’s intellectual property, which includes the recipes for its unique burger sauces and specialty burger buns. Although BBB has never experienced a theft of intellectual property, the firm’s managers feel BBB should be more cautious. Managers are meeting with security and legal experts to discuss the options available to the firm which would protect BBB from future international problems.Which of the following questions would be more important for the experts to evaluate when determining how to ensure intellectual property protection for Big Boy Burgers?A) What should be the penalties for theft of the recipes for their unique burger sauces and specialty burger buns?B) Is BBB partnering with ethical franchisees that have no intention of becoming BBB competitors in the future?
C) What are the commonly counterfeited goods in the market?
D) How are BBB franchisees modifying recipes and menus to meet the needs and desires of customers in local markets?
Answer:
B) Is BBB partnering with ethical franchisees that have no intention of becoming BBB competitors in the future?
Explanation:
The question that "Is BBB partnering with ethical franchisees that have no intention of becoming BBB competitors in the future?" would be more important for the experts to evaluate when determining how to ensure intellectual property protection for Big Boy Burgers.
The managers and experts at BBB should ensure they are in partnership with ethical franchisees in order to protect the firm’s intellectual property, which includes the recipes for its unique burger sauces and specialty burger buns.
An unethical franchise would be much more concerned with gaining access to their business plans and strategies, so as to compete with them or even go as far as pushing them out of the fast food business.
Cullumber Company had a 40 percent tax rate. Given the following pre-tax amounts, what would be the income tax expense reported on the face of the income statement? Sales revenue $ 1100000 Cost of goods sold 617000 Salaries and wages expense 80400 Depreciation expense 119000 Dividend revenue 89500 Utilities expense 10600 Discontinued operations loss 99100 Interest expense 19200
Answer:
$101,520
Explanation:
Income statement will be made as follows:
$
Sales Revenue 1100000
Less: COGS (617000)
Gross Profit 483000
Less: Salaries & Wages (80400)
Less: Depreciation exp. (119000)
Less: Utilities exp. (10600)
Less: Interest expense (19200)
Earning before tax 253800
Less: Tax(40%) (101520)
Hope this helps.
Good luck buddy.
Final answer:
The income tax expense for Cullumber Company is calculated by applying the 40 percent tax rate to its taxable income, which is deduced by subtracting all allowable expenses from its sales revenue.
Explanation:
The question asks about calculating the income tax expense for Cullumber Company that will be reported on its income statement. The company has a fixed 40 percent tax rate. To calculate the income tax expense, we need to determine the company's taxable income. The taxable income is obtained by subtracting all allowable deductions, including the cost of goods sold (COGS), salaries and wages, depreciation, utilities, and interest expenses, from the sales revenue. Dividend revenue is generally considered an addition to income and the discontinued operations loss can be deducted.
Income tax expense is then calculated by applying the 40 percent tax rate to the taxable income. In this particular situation, specific calculations are not provided, as the student is supposed to use the given pre-tax amounts to find the correct taxable income and then apply the tax rate to find the income tax expense.
The effective tax rate and understanding of how income taxes work for corporations is crucial in business education, especially for students in finance or accounting. The mentioned tax policies and effective tax rates provide a general context for how corporate incomes are taxed in practice.
A government leader determines that the 5% unemployment rate is too high. She asks her staff to research policy options to reduce the rate and a few weeks later is given four options. Each option would reduce the rate by a different amount and at a different cost. The leader studies the options and chooses the one she feels is best for the country. In order, what types of analysis were used in this three-stage chain of events?
Answer:
4 alnylisssss
Explanation:
Daily Enterprises is purchasing a $ 10.4 million machine. It will cost $ 48 comma 000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $ 4.2 million per year along with incremental costs of $ 1.1 million per year. Daily's marginal tax rate is 35 %. You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated with the new machine?
Answer:
The free cash flow for year 0 will be $ -10,448,000
The free cash flow for years 1–5 will be $2,746,360
Explanation:
Free Cash Flow for the Year 0
Free Cash Flow for the Year 0 = Cost of the Machine + Transportation + Installation Charges
= -$10,400,000 - $48,000
= -$10,448,000
Free cash flows for the Years 1 – 5
Incremental free cash flows =
[(Annual Sales - Costs) x (1 – Tax Rate)] + [Depreciation x Tax Rate]
= [($4,200,000 - $1,100,000) x (1 – 0.35)] + [($10,448,000 / 5 Years) x 0.35]
= [$3,100,000 x 0.65] + [$2,089,600 x 0.35]
= $2,015,000 + $731,360
= $2,746,360
Therefore the The free cash flow for year 0 will be $ -10,448,000 and the free cash flow for years 1–5 will be $2,746,360
Let’s suppose you (USA dealer) imported a product from German on Dec 1, 2018 at € 300, payable in 60 days. You sold the product in the US market at $400 in cash on Dec 15, 2018. The company's fiscal year ends on Dec 31. You paid to your German supplier on Feb 1, 2019. Below, please find the exchange rate information: Dec 1, 2018: 1.2 €/$. Dec 31, 2018: 0.6 €/$. Feb 1, 2019: 1.0 €/$. What was gross profit for 2018 and 2019, respectively?
Answer:
- $140, -$120.
Explanation:
Okay, we are given the following parameters in the question above;
The value of the product imported from German on Dec 1, 2018 = € 300, payable = 60 days, the value of the product in the US market = $400 in cash on Dec 15, 2018 and the exchange rate are; Dec 1, 2018: 1.2 €/$, Dec 31, 2018: 0.6 €/$, Feb 1, 2019: 1.0 €/$.
Therefore, in the year 2018 we have that;
Purchase cost = €300 × 1.2 = $360.
Sales = $400.
Thus, the exchange loss = (1.2 - 0.6) × 300 = $180.
Therefore, the net income = sales - purchase cost - exchange loss.
The net income = $(400 - 360 - 180) = - $140.
Also, In the year 2019 we have that;
Exchange gain = (0.6 - 1) × 300 = -120.
Therefore, net income = -$120
Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $154,500, allowance for doubtful accounts of $1,165 (credit) and sales of $1,175,000. If uncollectible accounts are estimated to be 0.5% of sales, what is the amount of the bad debts expense adjusting entry?
Answer:
$4,710
Explanation:
The computation of bad debts expense adjusting entry is shown below:-
Bad debts expense adjusting entry = Sales + Uncollectible allowances - Balance in allowance for doubtful accounts
= ($1,175,000 × 0.5%) - $1,165
= $5,875 - $1,165
= $4,710
Therefore for computing the bad debts expense adjusting entry we simply applied the above formula.
The adjusting entry is shown below:-
Bad Debt A/c Dr, $4,710
To Allowance for Doubtful Debts $4,710
(Being bad debt account is recorded)
Delmar Inc. uses a standard cost system. Labor standards are 2.0 hours per widget at $8.80 per hour. During August, Delmar Inc. paid its workers $147,250 for 16,500 hours. Delmar Inc. produced 8,600 widgets during August. a. Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) b. Calculate the direct labor efficiency variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).)
Answer:
Instructions are below.
Explanation:
Giving the following information:
Labor standards are 2.0 hours per widget at $8.80 per hour.
During August, Delmar Inc. paid its workers $147,250 for 16,500 hours.
Delmar Inc. produced 8,600 widgets during August
To calculate the direct labor rate and efficiency variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (8,600*2 - 16,500)*8.8
Direct labor time (efficiency) variance= (17,200 - 16,500)*8.8
Direct labor time (efficiency) variance= $6,160 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 147,250/16,500= $8.92
Direct labor rate variance= (8.8 - 8.92)16,500
Direct labor rate variance= $1,980 unfavorable
Summit Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $90 for such a widget and that 50,000 units could be sold each year at this price. The current cost to produce the widget is estimated to be $65. If Summit Products requires a 25% return on sales to undertake production, what is the target cost for the new widget?
Answer:
$60
Explanation:
The computation of the target cost for the new widget is shown below:
Target selling price = $80
return on sales = 25%
Based on this
Profit per unit = 80 × 25%
= $20
Now
Target cost = Target selling price - Profit per unit
= $80 - $20
= $60
By deducting the profit per unit from the target selling price we can get the target cost and the same is applied and shown above i.e in the computation part
Final answer:
The target cost for the new widget, considering Summit Products' requirement for a 25% return on sales, is $67.50. However, since the current production cost is $65, which is below the target cost, the widget production is already meeting the company's profit criteria.
Explanation:
To calculate the target cost for the new widget, we first need to understand Summit Products' desired return on sales. They require a 25% return on the sales price of $90. To find the target cost, we subtract this desired return from the sales price.
The calculation is as follows:
Sales price per widget: $90Desired return on sales (25% of $90): $90 * 0.25 = $22.50Target cost: $90 - $22.50 = $67.50However, given that the question states the current cost to produce the widget is $65, which is below the calculated target cost, it implies that the production is already within Summit's required return on sales. Therefore, production of the widget at the current cost is feasible and profitable as per the company's financial criterion.
"In a long-run equilibrium, price is equal to average total cost." This statement applies to A. perfectly competitive markets, but not to monopolistically competitive markets or monopolies. B. perfect competitive and monopolistically competitive markets, but not to monopolies. C. perfect competitive markets, monopolistically competitive markets, and monopolies. D. None of the above is correct.
Answer:
C) perfect competitive markets, monopolistically competitive markets, and monopolies.
Explanation:
In economics, the short run is defined as a period of time where at least one (or more) of the factors of production is fixed, e.g. production facilities, equipment, etc.
The long run refers to a period of time where no factor of production is fixed, meaning that all costs are variable.
Short run and long run are not definite time periods, they can last a few months to several years.
These concepts apply to all markets, and in all types of markets (perfect competition, monopolistically competitive and monopolies) the long run average total cost will equal the price. At that point the firms will all be maximizing their accounting profits (because output will be located where marginal cost = average total cost = total variable cost) but making $0 economic profits.
The statement applies to both perfectly competitive and monopolistically competitive markets, but not to monopolies. This is because perfectly competitive and monopolistically competitive markets adjust to a point where price equals average total cost in the long run, while monopolies, having control over price, do not necessarily reach this point.
Explanation:The statement "In a long-run equilibrium, price is equal to average total cost" applies to both perfectly competitive and monopolistically competitive markets but not to monopolies. So the correct answer is B. Perfect competitive and monopolistically competitive markets, but not to monopolies.
In perfectly competitive markets, firms are price takers and do not have control over the price. They can only adjust output level to maximise profit. In the long run, new firms will enter or existing firms will exit until price equals the minimum point of the average total cost.
Similarly, in monopolistically competitive markets, firms will also reach a point where price equals average total cost in the long run. However, monopolies do not necessarily reach this point because they have control over price, hence they can make profits even in the long run.
Learn more about Long-run equilibrium here:https://brainly.com/question/34165831
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Elliott Corp.'s transactions for the year ended December 31, 2020 included the following: Purchased real estate for $1,250,000 cash which was borrowed from a bank. Sold available-for-sale securities for $1,000,000. Paid dividends of $1,200,000. Issued 500 shares of common stock for $500,000. Purchased machinery and equipment for $250,000 cash. Paid $900,000 toward a bank loan. Reduced accounts receivable by $200,000. Increased accounts payable $400,000. Elliott's net cash used in investing activities for 2020 was a. $1,500,000 b. $ 500,000 c. $ 750,000 d. $ 250,000
Answer:
b. $ 500,000
Explanation:
The computation of the net cash used in investing activities is shown below:
Cash flow from investing activities
Purchased real estate -$1,250,000
Purchased machinery and equipment -$250,000
Sold available-for-sale securities for $1,000,000
Net cash used by investing activities -$500,000
The negative sign represents the cash outflow and the positive sign represents the cash inflow and the same is to be considered
Wildhorse Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, included product X. Relevant per-unit data for product X are as follows. Estimated selling price $49 Cost 39 Estimated selling costs 15 Normal profit 9 There were 990 units of product X on hand at December 31, 2020. Product X was incorrectly valued at $38 per unit for reporting purposes. All 990 units were sold in 2021. Compute the effect of this error on net income for 2020 and the effect on net income for 2021, and indicate the direction of the misstatement for each year.
Answer:
Net income for 2020 = $6,360 Overstated
Net income for 2021 = $6,360 Understated
Explanation:
The computation of net income for 2020 and the effect on net income for 2021 is shown below:-
Net realizable value per unit = Estimated selling price - Estimated selling expenses
= $49 - $15
= $34
Total value of ending inventory = 990 × $34
= $33,660
Incorrect value = 990 × $38
= $37,620
So, ending inventory of 2020 is overstated by
= $37,620 - $33,660
= $3,960
Overstatement of ending the inventory reduces the expense of the products sold and thereby raises the 2020 net profit by $3,960
The ending 2020 inventory is the beginning inventory for 2018. Overstatement of ending 2020 inventory leads to over establishment of beginning 2021 inventory. Increased beginning inventory results in higher cost of produced products and lower net profits.
Net income of 2021 is understated by $3,960
Net income for 2020 $6,360 Overstated
Net income for 2021 $6,360 Understated
City is a product of the Chester company which is primarily in the Nano segment, but is also sold in another segment. Chester starts to create their sales forecast by assuming all policies (R&D, Marketing, and Production) for all competitors are equal this year over last. For this question assume that all 700 of units of City are sold in the Nano segment. If the competitive environment remains unchanged what will be the City product’s demand next year (in 000’s)?
Answer:
700 units
Explanation:
Since it is given that the 700 units if city are sold to the nano segment and it is also mentioned that the competitive environment remains unchanged so the city demand of the product for the next year is also remains same as there is no change in the competitive environment
Hence, the demand fro the product in the next year is 700 units
Chester company's City product's demand next year can be predicted to remain at the current level of 700 units if the competitive environment stays the same. Forecasting depends on production and cost conditions and market structure. The concept of economies of scale and the analysis of the LRAC curve are important in understanding these market dynamics.
Explanation:To determine the demand for Chester company's City product next year, given that all competitors' policies remain the same, we would start by looking at the current sales figures, which are 700 units in the Nano segment. If the competitive environment, including market shares and consumer behavior, does not change, it is reasonable to forecast that the product’s demand will remain the same, meaning Chester can expect to sell a similar amount of units next year. The assumptions on market structure, competitive environment, and production costs are critical for such forecasting.
When looking at microeconomic questions similar to this, the decision to produce more or fewer goods hin_ges on production and cost conditions as well as the market's structure. For instance, changes in the competitive landscape, such as a price increase for running shoes or a government subsidy for green technologies, would need to be considered when forecasting demand and profits for the coming year.
Market structure is crucial; a key question to ask is how many competitors are in the market and what their capacities are. For instance, if the market can only support a certain number of units before reaching saturation, producing beyond that point would lead to excess supply and potential losses. This is tied into the concept of economies of scale and the intersection of market demand with the long-run average cost (LRAC) curve, which can predict whether a company will be able to sell all its products at a profitable price.
The Phelan Division produces and sells a product to external and internal customers. Per-unit information about its operations include: Selling price per unit to external customers $250 Variable manufacturing costs per unit 115 Fixed manufacturing overhead costs per unit 70 If Phelan is operating at capacity and has unlimited external customer demand, what should be the (internal) transfer price for Phelan's product
Answer:
The answer is $250
Explanation:
Solution
From the example given, we are asked to find the internal transfer price of Phelan's product.
So, if Phelan is operating at capacity or speed and has unlimited external customer demand then the transfer price for Phelan's product is $250 as it has huge demand from customers
Under U.S. laws: A. Only private workers have the right to hold an election to choose what union they want to represent them, if any.B. Only public workers have the right to hold an election to choose what union they want to represent them, if any.C. Most private and public workers have the right to hold an election to choose what union they want to represent them, if any.D. Only the employer has the right to hold an election to choose what unions they want to represent the workers within the organization, if any.
Answer:
C) Most private and public workers have the right to hold an election to choose what union they want to represent them, if any.
Explanation:
An employee is generally not required to join a union even, in most cases if a union exists and it has an agreement with the employer regarding employees joining it, the most it can do is charge everyone the union fees. This means that the employees are required to pay union fees even if they do not want to join the union. Full union membership cannot be required.
Also, employees are free to decide in an election to what union they want to belong to, or if they want to belong to any type of union at all. E.g. most of the employees from foreign car manufacturers have chosen not to join the UAW union (Toyota, Honda, Mercedes Benz, BMW, etc.).
Frick Road Paving Corporation is considering an investment in a curb-forming machine. The machine will cost $180,000, will last 10 years, and will have a $30,000 salvage value at the end of 10 years. The machine is expected to generate net cash inflows of $40,000 per year in each of the 10 years. Frick's discount rate is 10%. The net present value of the proposed investment is closest to:
Answer:
$77,348.98
Explanation:
The net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-180,000
Cash flow each year from year 1 to 9 = $40,000
Cash flow in year 10 = $40,000 + $30,000 = $70,000
I =10%
NPV = $77,348.98
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
To find the Net Present Value (NPV) of the curb-forming machine investment, we calculate the present value of the annual net cash inflows and the salvage value using the given discount rate, and then subtract the initial investment cost. This financial calculation helps assess the investment's profitability over the machine's life.
The question revolves around calculating the Net Present Value (NPV) of investing in a curb-forming machine by Frick Road Paving Corporation. To find the NPV, we must consider the initial investment cost, annual net cash inflows, the salvage value at the end of the machine's life, and the discount rate. The formula for NPV is:
NPV = (Sum of Present Value of Cash Inflows over n years) - Initial Investment
Using the given details:
Cost of the machine: $180,000Annual net cash inflow: $40,000 for each of 10 yearsSalvage value at the end of 10 years: $30,000Discount rate: 10%First, calculate the present value of annual cash inflows and the salvage value. Then, subtract the initial cost of the machine to get the NPV.The steps are as follows:
Calculate the present value (PV) of $40,000 annual inflows for each of the 10 years.Calculate the PV of the $30,000 salvage value.Sum these present values.Subtract the initial investment of $180,000 from this sum to find the NPV.This approach, using the given discount rate and cash flows, allows us to evaluate the investment's profitability accurately. It is important for businesses to use such financial metrics to make informed decisions regarding their capital investments.On September 1, Advantage Maintenance Company contracted to provide monthly maintenance services for the next five months at a rate of $3,000 per month. The client paid Advantage $15,000 on September 1. The maintenance services began on that date. Assuming Advantage records deferred revenues using the alternative treatment, what would be the adjusting entry recorded on December 31?
Answer:
Adjusting Entry
December 31,
Dr. Service Revenue $3,000
Cr. Unearned Revenue $3,000
Explanation:
Using alternate treatment the cash received in advance is recorded as the revenue initially.
On September following entry was performed
Dr. Cash $15,000
Cr. Revenue $15,000
At the end of the year services of 4 months have been performed and the amount of one month's service is received in advance until this date. It needs to be adjusted according to the accrual concept.
Final answer:
The adjusting entry on December 31 for Advantage Maintenance Company, which uses the accrual basis of accounting, would involve debiting Deferred Revenue and crediting Service Revenue by $12,000 to recognize four months of services provided from a $15,000 prepayment.
Explanation:
The student's question pertains to recording an adjusting entry for deferred revenues in accordance with accrual accounting principles. Advantage Maintenance Company received payment in advance for services to be provided over a five-month period. They must recognize revenue each month as the service is performed. By December 31, four months of services will have been provided. Therefore, they would need to record the revenue earned for these four months.
The adjusting entry on December 31 would be:
Debit Deferred Revenue for $12,000 (which is $3,000 per month imes 4 months)
Credit Service Revenue for $12,000
This reflects that $12,000 of the services have now been performed, and should be recognized as revenue, reducing the remaining deferred revenue to $3,000, which will be recognized the following month when the last portion of the service is performed.
. Homer Simpson wins a lottery prize. As a result, the Simpson family increases its consumption by $1,000 at each level of after-tax income. ("Income" does not include the prize money.) How does this change affect their consumption function?
Answer:
Their consumption function would shift upwards
Explanation:
Their consumption function shifts upward because the lottery prize has given them an autonomous consumption of $1000. This prize is independent of income. At each level of income, consumption rises by $1000. Causing consumption spending to be shifted upward by $1000. The marginal propensity to consume is unaffected because increase in consumption is the same at each level of disposable income.
A dynamic capability is the Group of answer choices functional and operating resources management process. ongoing capability to understand and establish a rival commitment to resource alignment. most compelling product or service a firm. improvement evaluation process for eliminating waste in the firm. ongoing capacity to modify existing resources and capabilities to create new ones.
Answer:
ongoing capacity to modify existing resources and capabilities to create new ones.
Explanation:
A dynamic capabilities can be simply defined as the ability of an organisation or firm to blend, build and reshape both the internal and external aspect of an organisation so as to get/produce an outcome that is needed by the organisation/firm. it is a series of processes in organisations that brings about a required needed outcome. DC gives organisation an advantages or an edge over others as companies or organisations has restructured/reconfigure their organisation for better performance.
The accountant for Mandarin Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $ 1,029,000 Net income for the year 335,000 Cash dividends declared for the year 63,000 Retained earnings balance at the end of the year 1,637,000 Cash dividends payable at the beginning of the year 14,200 Cash dividends payable at the end of the year 17,300 What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows
Answer:
$59,900
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
The movement in the dividend payable account may be expressed mathematically as
Opening balance + Dividend declared - Dividend paid = Closing balance
$14,200 + $63,000 - Dividend paid = $17,300
Dividend paid
= $14,200 + $63,000 - $17,300
= $59,900
Answer:
$59,900
Explanation:
Base on the scenario been described in the question, we can use the following method to solve the given problem
The movement in the dividend payable account is given as
Opening balance + Dividend declared - Dividend paid = Closing balance
Substituting the values we have
$14,200 + $63,000 - Dividend paid = $17,300
Making dividend paid the subject of formula we have
Dividend = $14,200 + $63,000 - $17,300
Dividend paid = $59,900
As the answer
Simentec Inc., a tech support company, hasover 150 employees working infive countries. The company allows workers to work from anywhere, andvirtual meetings are the primary means of communication across the company.Simentec is a _________ structure—one whose members are geographically apartand work using information technology. It appears to customers as a single, unified organization with a real physical location.
Answer:
Virtual
Explanation:
A virtual structure refers to an organizational structure in which the employees are located in different places and work using the technology available like computers, e-mail and phone to complete their tasks and they achieve a strong cooperation between their members to work as a single entity. According to this, the answer is that Simentec is a virtual structure because the employees work from anywhere using virtual meetings to communicate and it appears as a unified organization.
Quantitatively, how important is international trade to the United States relative to the importance of trade to other nations? What country is the United States’ most important trading partner, quantitatively? With what country does the United States have the largest trade deficit?
Answer:
Quantitatively, the significance of trade to the U.S is extra than it is for the other nations. The United states has the very best collective size of trades (imports and exports). It is also third in price of exports listed, next to China and European nation. The U.S most significant commerce companion, in relations of facts, is Canada. Virtually 20% of exported product from the America were to Canada in 2009, and 15% of imported product came from Canada during the year. The America has the most important deficit with China. A deficit happens once the worth of imports surpass the importance of exports. In 2009, the America had a $220 billion deficit with China.The five forces of competitive pressures do not include 53) A) the bargaining power of suppliers and seller-supplier collaboration. B) the power and influence of social/demographic trends. C) the threat of new entrants into the market. D) the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry. E) the attempts of companies in other industries to win customers over to their own substitute products.
Answer:
B) the power and influence of social/demographic trends.
Explanation:
Porters five forces describe forces that exists in an industry and shapes that industry.
They include:
1. Competition among firms in the industry
2. Potential of new firms entering into the industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products
I hope my answer helps you
All of the above are part of the five forces of competitive pressure except B) the power and influence of social/demographic trends.
According to Michael Porter:
There are 5 forces of competitive pressure in an industry The forces of pressure dictate how successful a business will beAll options above are part of those pressures with the fifth being the power of buyers. The second option is not one of those forces but can also be quite influential.
In conclusion, option B is correct.
Find out more about the competitive forces at https://brainly.com/question/24881157.
Computing Gross Profit The following data were taken from the accounts of Fluter Hardware, a small retail business. Sales $120,000 Sales returns and allowances 900 Sales discounts 650 Merchandise inventory, January 1 35,000 Purchases during the period 77,600 Purchases returns and allowances during the period 4,100 Purchases discounts taken during the period 2,300 Freight-in on merchandise purchased during the period 1,250 Merchandise inventory, December 31 32,000 Determine the gross profit.
Answer:
$43,000
Explanation:
The gross profit is the difference between the sales revenue and the cost of good sold. Net sales is the sales less returns and allowances. Similar to net sales is net purchases which is the gross purchase net the allowances and returns.
Net sales
= $120,000 - $900 - $650
= $118,450
The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance. This may be expressed mathematically as
Opening balance + purchases - cost of goods sold = closing balance
net purchases = $77,600 - $4100 - $2300 + $1250
= $72,450
therefore,
$35000 + $72,450 - cost of goods sold = $32000
Cost of goods sold = $35000 + $72,450 - $32000
= $75,450
Gross profit = $118,450 - $75,450
= $43,000
Continental Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Continental Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved.
Transportation Costs Gross-Ton Miles
January $24,500,000 3,000,000
February 22,375,000 2,500,000
March 29,000,000 6,300,000
April 34,800,000 9,500,000
May 40,312,500 12,750,000
June 35,500,000 10,000,000
Determine the variable cost per gross-ton mile and the total fixed cost.
Using the high-low method, the variable cost per gross-ton mile for Continental Railroad is $1.775, and the total fixed cost is $17,937,500. This was calculated by identifying the highest and lowest activity levels and their associated costs.
Explanation:To determine the variable cost per gross-ton mile and the total fixed cost using the high-low method from the operating data provided by Continental Railroad, we identify the months with the highest and lowest activity levels, which are April (highest) and February (lowest). The difference in gross-ton miles between these months is 9,500,000 - 2,500,000 = 7,000,000 gross-ton miles. Similarly, the difference in transportation costs is $34,800,000 - $22,375,000 = $12,425,000.
To calculate variable cost per gross-ton mile, divide the difference in costs by the difference in gross-ton miles: $12,425,000 ÷ 7,000,000 = $1.775. Hence, the variable cost is $1.775 per gross-ton mile. Next, to find the fixed costs, we calculate the total variable cost at the low activity level (February) by multiplying the variable cost per gross-ton mile by February's gross-ton miles: $1.775 * 2,500,000 = $4,437,500. Subtract this amount from the total cost of February to get the total fixed cost: $22,375,000 - $4,437,500 = $17,937,500. Therefore, the total fixed cost is $17,937,500.
The variable cost per gross-ton mile is $1.75, and the total fixed cost is $18,000,000.
To estimate the fixed and variable components of transportation costs using the high-low method, we need to identify the months with the highest and lowest activity levels (gross-ton miles). We then use these data points to calculate the variable cost per gross-ton mile and the total fixed cost.
Step 1: Identify the High and Low Activity Levels
From the given data:
Highest activity: May (12,750,000 gross-ton miles, $40,312,500 cost)
Lowest activity: February (2,500,000 gross-ton miles, $22,375,000 cost)
Step 2: Calculate the Variable Cost per Gross-Ton Mile
The high-low method formula for the variable cost per unit is:
[tex]\[ \text{Variable Cost per Gross-Ton Mile} = \frac{\text{Cost at High Activity} - \text{Cost at Low Activity}}{\text{High Activity Level} - \text{Low Activity Level}} \][/tex]
Substituting the values:
[tex]\[ \text{Variable Cost per Gross-Ton Mile} = \frac{40,312,500 - 22,375,000}{12,750,000 - 2,500,000} \][/tex]
[tex]\[ \text{Variable Cost per Gross-Ton Mile} = \frac{17,937,500}{10,250,000} \][/tex]
[tex]\[ \text{Variable Cost per Gross-Ton Mile} = 1.75 \][/tex]
Step 3: Calculate the Total Fixed Cost
To find the fixed cost, we use the total cost equation at either the high or low activity level:
[tex]\[ \text{Total Cost} = (\text{Variable Cost per Gross-Ton Mile} \times \text{Gross-Ton Miles}) + \text{Fixed Cost} \][/tex]
Using the high activity level data:
[tex]\[ 40,312,500 = (1.75 \times 12,750,000) + \text{Fixed Cost} \]\[ 40,312,500 = 22,312,500 + \text{Fixed Cost} \]\[ \text{Fixed Cost} = 40,312,500 - 22,312,500 \]\[ \text{Fixed Cost} = 18,000,000 \][/tex]
A personal business letter is written by an individual to a company for resolving issues related to an unexpected error on a bill, for refunding of defected products, or poor services. So, assuming you are complaining with XYZ Company, write a professional Complaint Letter. To XYZ Company?
Answer:
See the explanation below.
Explanation:
62, Charlton Street,
Ibadan, Oyo State,
Nigeria.
14 May 2020.
The Accounting Officer,
XYZ Company,
Ibadan, Oyo State,
Nigeria.
Dear Sir,
Complaint Lodgment Over an Unexpected Error in My Bill
This is to bring to your notice an unexpected error of $9 over charge in the consumable items I purchased from your store yesterday, 13 May 2020.
From my recalculation of the total amount for the purchased item, I could observed that the error was due to a transposition of figure by your cashier; he charged me a total sum of $76 instead of $67.
Copies of the invoice and the payment receipt for the items are hereby attached to this letter for your verification. After your verification, kindly get back to me so that I can come to your office for the refund.
I look forward to receiving your usual timely response.
Yours sincerely,
Amcool.