Answer:
Gain on sale= $257600
Explanation:
According to IAS 16 (property plant and equipment), the initial measurement of non-current asset is at cost. The cost includes the purchase price and all other directly attributable costs incurred to bring the non-current asset to it's desired location and intended use.
IAS 16 also requires that any subsequent expenditures incurred should either be expensed out if expenditures classify as Revenue expenditure and should be capitalized in the cost of the non-current asset if expenditures classify as Capital Expenditures. In Bill's case, addition of a new room in the existing home structure is an expenditure that classifies as a capital expenditure. Hence cost of the new room will be capitalized in to the cost of the home.
So the book value of Bill's home is = $187000 + $28400
BV of bills home= $215400
Sales proceeds from the sale of the home = $473000
Gain on sale= Sales proceeds - book value
Gain on sale= $473000 - $215400
Gain on sale=257600
Parsons Company is planning to produce 2,800 units of product in 2017. Each unit requires 1.20 pounds of materials at $5.60 per pound and a half-hour of labor at $12.00 per hour. The overhead rate is 70% of direct labor. (a) Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead. Direct materials $ Direct labor $ Overhead $ (b) Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e.g. 2.75.) Standard cost $ Click if you would like to Show Work for this question: Open Show Work
Answer:
a. Budgeted amounts for 2017: $
Direct material (1.20 pounds x $5.60 x 2,800 units) = 18,816
Direct labour (0.5 hr x $12 x 2,800 units) = 16,800
Applied overhead (0.5 hr x $8.40 x 2,800 units) = 11,760
Budgeted amount for 2017 47,376
b. Standard Cost for One Unit of Product
$
Direct material ( 1.20 pounds @ $5.60 per pound) = 6.72
Direct Labour (0.5 hour @ $12 per hour) = 6.00
Overhead (0.5 hours @ $8.40 per hour) = 4.20
Standard cost for one unit of product 16.92
Explanation:
The Budgeted amount for 2017 is the budgeted direct material cost , budgeted direct labour cost and budgeted overhead. Budgeted direct material cost is the product of standard quantity, standard price and budgeted output. Budgeted direct labour cost is the product of standard hours, standard rate and budgeted output. Budgeted overhead is the product of standard hours, standard overhead rate and budgeted output.
The standard cost per unit of product is comprised of standard material cost per unit, standard labour cost per unit and standard overhead cost per unit.
Standard material cost per unit is the product of standard quantity and standard price. Standard labour cost per unit is the product of standard rate and standard hours. Overhead cost per unit is the product of standard overhead rate and standard hours. Standard overhead rate is 70% of $12 = $8.40.
The 2017 budgeted amount for Parsons Company is calculated to be $18,816 for direct materials, $16,800 for direct labor, and $11,760 for overhead. The standard cost of one unit of product based on these costs is $16.92.
Explanation:To compute the budgeted amounts for 2017 for Parsons Company, we first need to calculate the cost for each component: direct materials, direct labor, and overhead.
Direct Materials: Each unit requires 1.20 pounds of materials, so for 2,800 units, it would be 2,800 * 1.20 = 3,360 pounds of materials. The cost for materials is $5.60 per pound, so 3,360 * $5.60 = $18,816. Direct Labor: Each unit requires a half-hour of labor, so for 2,800 units, it would be 2,800 * 0.5 = 1,400 hours of labor. The cost for labor is $12.00 per hour, so 1,400 * $12.00 = $16,800. Overhead: The overhead is 70% of direct labor. Hence, $16,800 * 0.70 = $11,760.
To compute the standard cost of one unit of product, we add the cost per unit of materials, labor, and overhead. The cost per unit for each is:
Direct Materials: $18,816 / 2,800 = $6.72 Direct Labor: $16,800 / 2,800 = $6.00 Overhead: $11,760 / 2,800 = $4.20
The standard cost of one unit is hence, $6.72 + $6.00 + $4.20 = $16.92 (rounded to 2 decimal places).
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Portions of the financial statements for Software Associates are provided below. SOFTWARE ASSOCIATES Income Statement For the year ended December 31, 2021 Net sales $ 710,000 Expenses: Cost of goods sold $ 420,000 Operating expenses 130,000 Depreciation expense 33,000 Income tax expense 49,000 Total expenses 632,000 Net income $ 78,000 SOFTWARE ASSOCIATES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 Decrease in accounts receivable $ 10,000 Decrease in inventory 13,000 Increase in prepaid rent 3,000 Decrease in salaries payable 4,000 Increase in accounts payable 7,000 Increase in income tax payable 8,000 Required: Prepare the operating activities section of the statement of cash flows for Software Associates using the indirect metho
Answer:
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $78,000
Adjustment made:
Add : Depreciation expense $33,000
Add: Decrease in accounts receivable $10,000
Add: Decrease in inventory $13,000
Add: Increase in accounts payable $7,000
Less: Decrease in salaries payable -$4,000
Add: Increase in income tax payable $8,000
Less: Increase in prepaid rent -$3,000
Total of Adjustments $64,000
Net Cash flow from Operating activities $142,000
To prepare the operating activities section of the statement of cash flows for Software Associates, you can use the indirect method. We need to make adjustments to the net income by adding back non-cash expenses and taking into account changes in working capital accounts.
Explanation:The operating activities section of the statement of cash flows for Software Associates can be prepared using the indirect method. This method starts with net income and adjusts for non-cash expenses and changes in working capital accounts. Here is a breakdown of the adjustments:
Depreciation expense: Add back the amount of depreciation expense, which is a non-cash expense.Decrease in accounts receivable: Add back the decrease in accounts receivable, as it represents cash received from customers.Decrease in inventory: Add back the decrease in inventory, as it indicates cash used for purchasing goods.Increase in prepaid rent: Subtract the increase in prepaid rent, as it represents cash paid for future rent.Decrease in salaries payable: Add back the decrease in salaries payable, as it indicates cash used for paying salaries.Increase in accounts payable: Subtract the increase in accounts payable, as it represents cash used for purchasing goods on credit.Increase in income tax payable: Subtract the increase in income tax payable, as it represents cash used for paying income taxes.By making these adjustments, you can calculate the cash inflows and outflows from operating activities.
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How can an organization use all four social media zones safely and appropriately?
Answer:
How can an organization use all four social media zones safely and appropriately?
This could be achieved by employing a social media savvy individual who has high technicality in maximizing all social media platform.
Explanation:
A digital marketer with a top-notch experience in social media usage would suits such an organization
An organization can use all the zones appropriately by employing someone who's well experienced to manage the activities.
It should be noted that the social media zones include social commerce, social publishing, social entertainment, and social communities.
It should be noted that an organization can use all the zones appropriately by employing someone who's well experienced to manage the activities. This is vital to enhance the organization's revenue.
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Developing a new automobile requires the services of many types of experts such as design and electronics engineers, procurers, metallurgists–the list is extensive. Rather than employ these individuals directly, the automaker will outsource the work. The specialists then work at facilities owned by the automaker rather than at their own employers' places. This demonstrates a type of _____.
Answer: Boundaryless organization
Explanation:
Boundaryless organization is an organization that is not hindered or limited by boundaries created through established structures.
It could also mean an organization whose operation is not confined to a particular location or the confine of their office complex.
The idea of boundaryless organization was first conceptualized by Jack Welch who wanted to eliminate any form of barrier (both internally and externally) in the way General Electrics carried out its operations.
•Note that in order to achieved the concept of a boundaryless organization, flexibility and adaptability must be considered.
•Latest technology for getting work done must also be adopted over traditional mode of operation
Use the following method to calculate the yearly depreciation allowances and book values for a firm that has purchased $150,000 worth of office equipment that qualifies as depreciation property. The equipment is estimated to have a salvage (market) value of $30,000 (20% of the original cost) after the end of its 10-year depreciable life.
a. Straight line
b. MACRS
c. Sum-of-Years' Digits
Answer:
a. Straight Line Method Depreciation= $ 2400
b. MACRS
c. Sum-of-Years' Digits
Explanation:
a. Straight Line Method Depreciation=
Purchase Cost- Salvage Value/ No of useful life *depreciation rate
=$ 150,000- $30,000/10 * 20%
=120,000/10* 20%= 12000* 20/100=$ 2400
b. MACRS
Since it is a non-form 10-year property, the company can elect to use either the 150% or 200% declining balance method.
Depreciation in 1st Year = Cost × 1/Useful Life × A × Depreciation Convention
Depreciation in Subsequent Years =
(Cost − Depreciation in Previous Years) × 1/ Recovery Period × A
Where,
A is 100% or 150% or 200%.
Depreciation for the the first year $ 150,000/10 *200%= $30,000
Depreciation for the the 2nd year =$ 150,000-30,000/10 *200%= $24,000
Depreciation for the the third year =$ 150,000-30,000- 24000/10 *200%
=$ 19,200
Depreciation for the the 4th year $ 150,000-30,000-24000-19200/10 *200%= Note A
Note A: MACRS declining balance changes to straight-line method when that method provides an equal or greater deduction. Deduction under 200% declining balance MACRS for 4th year would be $ 153,600 ($150000 - $30,000 - $24000 - $19200 × 1/10 × 200%. This is greater than depreciation under straight line method .
c. Sum-of-Years' Digits Method Depreciation
Depreciation Amount = Acquisition Cost - Salvage Value = $ 120,000
Sum of useful life= 10+9+8+7+6+5+4+3+2+1= 55
Depreciation Factor = 10/55, 9/55, 8/55, 7/55 etc.
Depreciation for the 1st year= 10/55* 120,000= $ 21,818.2
Depreciation for the 2nd year= 9/55* 120,000= $ 19 636.4
Depreciation for the 3rd year= 8/55* 120,000= $17,546
Depreciation for the 4th year= 7/55* 120,000= $ 15,273
Depreciation for the 5th year= 6/55* 120,000= $ 13,091
Depreciation for the 6th year= 5/55* 120,000= $ 10,909.1
Depreciation for the 7th year= 4/55* 120,000= $ 8727.3
Depreciation for the 8th year= 3/55* 120,000= $ 6545.5
Depreciation for the 9th year= 2/55* 120,000= $4363.63
Depreciation for the 10th year= 1/55* 120,000= $ 2181.81
Which of the following individuals would NOT be considered part of the labor force? a. Aileen, who is a full-time student working part-time b. Lisa, who is working part-time but wants to be working full-time c. Kimberly, who has retired from the military and now works at the post office d. Charles, who is in the Marines and is currently deployed to Iraq e. Thomas, who is unemployed but has given up searching for a job
Answer:
e. Thomas, who is unemployed but has given up searching for a job
Explanation:
The term "labor force" refers to people in an economy that are either employed or unemployed and searching for employment.
From the options provided, Thomas is the only one who is not employed and not looking for a job hence, he should not be considered as part of the labor force.
The labor force includes individuals who are either employed or actively seeking employment. Therefore, out of the individuals listed, Thomas is the one not considered part of the labor force as he is unemployed and has given up searching for a job.
Explanation:In the context of labor economics, the labor force consists of persons who are either employed or unemployed (actively seeking work). This highlights a crucial aspect of the labor force definition; it's not just about whether a person is working, but also includes whether they're actively seeking employment. In the given options:
Aileen, Lisa, Kimberly, and Charles all fall into the labor force because they are either working or willing to work.However, Thomas is not considered part of the labor force. Although he is unemployed, he has given up searching for a job, therefore placing him outside of the labor force.It's essential to differentiate between types of unemployment and those who constitute the 'out of labor force' group. For example, a person out of work but actively seeking is still considered part of the labor force as opposed to someone who is also out of work but has stopped looking for employment.
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In most cases, what is the most expensive promotion tool?
A) advertisingB) personal sellingC) mass mediaD) public relationsE) publicity
Answer: (B) Personal selling
Explanation:
The person selling is basically refers to the two-way communication process in which we sell our products and the services face to face to the customer.
The personal selling is also known as the interaction form of selling the products to the user.
The personal selling is one of the most expensive promotion tool as it is hardly used for advertising the products. It mainly involve spreading the information regarding the specific organization products and the services.
Therefore, Option (B) is correct.
If the marginal propensity to consume in a municipality is 0.8, what is the value of the simple multiplier? If a new stadium that adds $30 million in new consumption expenditures is built, what is the impact on the economy based on this multiplier? Suppose the marginal propensity to import is 0.3, what happens to the multiplier and to the impact on the economy?
Final answer:
The marginal propensity to consume (MPC) of 0.8 leads to a simple multiplier of 5, meaning that $30 million in new spending for a stadium results in a $150 million increase in the economy. Incorporating a marginal propensity to import of 0.3 reduces the multiplier to 2 and the stadium's economic impact to $60 million.
Explanation:
The marginal propensity to consume (MPC) is a key concept in economics that indicates the proportion of additional income that a consumer will spend rather than save. When the MPC is 0.8, it means that for every extra dollar received, 80 cents will be spent. This spending generates additional income and spending in the economy, which can be calculated using the simple multiplier. The formula for the simple multiplier is 1/(1 - MPC), which in this case would be 1/(1 - 0.8) or 5. This means that every dollar of initial spending generates five dollars of total economic activity.
When a new stadium is built with an initial spending of $30 million, and the multiplier is 5, the total impact on the economy would be 5 times $30 million, which equals $150 million.
However, if we incorporate the marginal propensity to import of 0.3, we must adjust the multiplier because some of the spending now leaks out of the local economy to pay for imports. The new multiplier is calculated as 1/(1 - (MPC - marginal propensity to import)), which would be 1/(1 - (0.8 - 0.3)) or 1/(0.5), resulting in a multiplier of 2. This reduces the total impact of the stadium to 2 times $30 million, which is $60 million.
nn wants to rent an apartment and she finds that apartments in her town are renting at a price lower than she is willing to pay. However, she finds it very difficult to find an apartment to rent. Finally, after six months of searching, she finds an apartment but she has to pay an additional $1,000 to have the locks changed. The best way to describe Ann's experience is that she has just experienced the effects an inelastic demand apartments bad luck with no market explanation a price ceiling an elastic demand for apartments O a price floor
Answer: an elastic demand for apartment
Explanation:
Elasticity of demand is the degree of responsiveness of demand to changes in price of goods and services. It's said to be elastic when a change in price leads to a more proportionate change in demand that is the consumer is willing to purchase more goods as a result of fall in price and less goods as a result of increase in price.
In the above scenario the Consumers are willing to rent all the apartments available at a low price and that is why Nn could not get an apartment even though the prices are lower than her budget.
It's not an inelastic demand because there is always little or no change in demand in an inelastic and it's not a market ceiling nor a price floor because the prices are not fixed by non market forces like the goverments and it's a situation that is economically explanable.
Assume the firms in a monopolistically competitive industry initially are earning positive economic profits. Which of the following will not occur over time?
A. The firms' economic profits will be reduced
B. New firms will enter
C. Demand for the existing firms' output will become more inelastic
D. The number of substitutes available in the industry will increase
Answer:
C. Demand for the existing firms' output will become more inelastic
Suppose the price of salt increases by 10 percent and, as a result, the quantity of pepper demanded (holding the price of pepper constant) increases by 1 percent.The cross-price elasticity of demand between salt and pepper is? (Enter your response rounded to two decimal places and include a minus sign if appropriate.) In this example, salt and pepper are?
A. complements,
B. not related,
C. substitute. Instead, suppose salt and pepper were complements. If so, then the cross-price elasticity of demand between saltand pepper would be. A.greater than 1. B. zero. C.greater than minus−1.
D. negative.
E. positive.
Answer:
The cross-price elasticity of demand between salt and pepper is= 0.1 positive.
Salt and pepper are complements.
Explanation:
Lets first understand what elasticity of demand is. Elasticity of demand is the responsiveness of demand to changes in prices only. Now not all products are highly responsive to changes in prices. Such products whose demand changes significantly due to changes in price are referred to as Elastic products and those whose demand doesn't change that much as a result of changes in price are Inelastic products. Examples of inelastic products are, basic necessities like, bread, milk, eggs etc.
The elasticity of demand is measured by the change in quantity demand of a product upon change in price of that product. In this case the cross-price elasticity of demand between salt and pepper is= Change in quantity demand of pepper/ Change in price of Salt
= 1/10=0.1
0.1 elasticity of demand of a product means that product is price inelastic, which means the demand of the product doesn't change as hugely as it's price changes.
The cross-price elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good. In the given example, salt and pepper are substitutes, and the cross-price elasticity of demand between them is positive at 0.10. If they were complements, the cross-price elasticity would be negative.
Explanation:In this example, salt and pepper are substitutes. The cross-price elasticity of demand between salt and pepper measures the responsiveness of the quantity demanded of pepper to a change in the price of salt. To calculate the cross-price elasticity of demand, we divide the percentage change in the quantity demanded of pepper by the percentage change in the price of salt. In this case, since the price of salt increased by 10 percent, and the quantity of pepper demanded increased by 1 percent, the cross-price elasticity of demand between salt and pepper is positive at 0.10.
If salt and pepper were complements, the cross-price elasticity of demand would be negative. Complementary goods are those that are typically consumed together, such as bread and butter, or salt and pepper. When the price of one complementary good increases, the demand for the other complementary good decreases. Therefore, the cross-price elasticity of demand between salt and pepper would be negative.
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The time for the current iteration is up and one of the features isn't complete. What do you do?
Select an answer:
Stop working and add the incomplete feature back into the backlog.
Stop working but ask the assigned resource to complete the feature while you plan the next iteration.
Extend the iteration to complete the feature.
Stop working and add the incomplete feature to the next iteration.
Answer:
Stop working and add the incomplete feature back into the backlog.
Explanation:
In case a task could not be completed in the current iteration, it is best to add it to the backlog, so that in subsequent iterations it will be completed (giving it priority, of course).
Of course, it is not convenient to extend the iteration time just to finish the incomplete task. Also, we should not add it directly to the next iteration because we would be altering its structure. So the most appropriate thing to do, is to leave it marked as a priority to be included in the next iterations.
If the time for the current iteration is up and one of the features is not complete, what you should do is to:
Stop working and add the incomplete feature back into the backlog.After you have stopped working on this iteration, you have to take this feature that is not complete to the backlog.
After it has been added to the backlog, The iterations that would follow is where the feature is going to be prioritized and completed subsequently.
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Diversification works because:I. unsystematic risk exists.II. combining stocks into a portfolio reduces the standard deviation of each stock in the portfolio.III. firm-specific risk can be dramatically reduced if not eliminated.A) I onlyB) III onlyC) I and II onlyD) I and III onlyE) I, II, and III
Answer:
D) I and III only.
Explanation:
II is false because the standard deviation of each stock is an inner characteristic of the stock and cannot be affected by combining it with other stocks in an investment portfolio. I. is true because each stock risk answer to the sector risk and company risk essentially, and by having stock of different sectors and companies is expected that unsystematic risks as these are off-setted. By having a portfolio with wide not-correlated stocks is expected that the risk can be reduced dramatically.
A company purchased a weaving machine for $264,970. The machine has a useful life of 8 years and a residual value of $14,500. It is estimated that the machine could produce 759,000 bolts of woven fabric over its useful life. In the first year, 109,500 bolts were produced. In the second year, production increased to 113,500 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year?a. $36,135b. $38,227c. $39,623
Answer:
$37,455
Explanation:
The computation of the depreciation per units or bolts under the units-of-production method is shown below:
= (Original cost - residual value) ÷ (estimated production bolts)
= ($264,970 - $14,500) ÷ (759,000 bolts)
= ($250,470) ÷ (759,000 bolts)
= $0.33 per bolt
Now for the second year, it would be
= Production units in second year × depreciation per bolts
= 113,500 units × 0.33
= $37,455
This is the answer and the same is not provided in the given options
At the beginning of 2017, investors had invested $25,000 of common equity in Grant Corp. and expect to earn a return of 11% per year. In addition, investors expect Grant Corp. to pay out 100% of income in dividends each year. Forecasts of Grant's net income are as follows: 2017: $3,500 2018: $3,200 2019: $2,900 2020 and beyond: $2,750 (no growth) Use this information to compute Grant Corp.'s expected residual income for the year 2017?
Answer:
$750.
Explanation:
By Capital assets Pricing Model,
Equity Charge:
= Equity Capital × Cost of Equity
= 25,000 × 0.11
= $ 2750
If in year 2017, Net income = $ 3500,
then Residual income = Net income - Equity Charge
= 3500 - 2750
= $750.
Since residual income is positive, Its profitable and growth venture from a shareholder's perspective.
Some years ago, the three leading aluminum producers in the U.S. changed prices nine times by exactly the same amount each time and usually within one to three days of the initial price increase. This is an example of _____. Group of answer choices sequential pricing price leadership price discrimination tacit collusion price fixing
Answer:
Price leadership.
Explanation:
Price leadership occurs when a pre-eminent firm (the price leader) sets the price of goods or services in its market. The leading Aluminium producer determine and control the prices leaving the other producer no choice than to follow them.
A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2012. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703,109.
What is interest expense for 2013, using straight-line amortization?
a. $1,540,207
b. $1,170,000
c. $1,176,894
d. $1,184,845
Answer:
Option (D) is correct.
Explanation:
Given that,
company issues = $15,000,000 bonds
Rate of interest = 7.8%
Time period = 20 years
Interest expense for 2013:
= (Issued amount × rate) + [(Issued amount - Bonds proceeds) ÷ Time period]
= ($15,000,000 × 7.8%) + [($15,000,000 - $14,703,109) ÷ 20]
= $1,170,000 + $14,845
= $1,184,845
Therefore, the interest expense for 2013, using straight-line amortization is $1,184,845.
A $100 million interest rate swap has a remaining life of 10 months. Under the terms of the swap, the six-month LIBOR is exchanged semi-annually for 12% per annum. The six-month LIBOR rate in swaps of all maturities is currently 10% per annum with continuous compounding. The six-month LIBOR rate was 9.6% per annum two months ago. What is the current value of the swap to the party paying floating? What is it's value to the party paying fixed?
Answer:
Explanation:
Fixed = 12% (exchanged for = receive)
Floating = LIBOR = 9.6% two months ago
Remaining life of swap = 10 months
6 month LIBOR rate for all maturities = 10% (used for discounting)
Receive:
Fixed = [(100)(0.12)(6/12) * e - 0.10 * (4/12)] + 106e - 0.10 * (10/12)= $103,328,005
Pay:
Floating = {100 + [(100)(.096)(.5)]} * e - .10 * (4/12)= $101,364,247
Value of swap to party paying floating: $103,328,004.6 - $101,364,247.3 = $1,963,757
Value of swap to party paying fixed =
- $1,963,757
Evie Adams Using the tax software, complete the tax return, including Form1040 and all appropriate forms, schedules, or worksheets. Answer the questions following the scenario. Note: When entering Social Security numbers (SSNs) or Employer Identification Numbers (EINs), replace the Xs as directed, or with any four digits of your choice. Interview Notes • Evie is single and has two young girls, Poppy and Lily, who lived with her all year. • Evie paid more than half of the support for her daughters and all the cost of keeping up the home. • Evie was unemployed for two months (March and April). She cashed in her 401(k) and used the money to pay for living expenses. • Evie is paying off a student loan that she took out when she attended college for her bachelor's degree. • She took some courses this year at Southwest College to improve her job skills as an educator. She did not receive a Form 1098-T for 2018. • Evie was an elementary school teacher from May to December and paid $550 out of pocket for classroom supplies. • She went to the local casino and won some money in 2019. During the interview she mentions that she had gambling losses of $700.20. What is the total amount of adjustments on Evie's tax return?a. $250 b. $600 c. $850 d. $1,550
Answer:The answer is a $250
Explanation:
Since she won some money in local casino, and during the interview she reported that she had gambling losses of $700.20, The gambling losses is regarded as income, Therefore total income = $700.20
Adjustment or above the line deduction are
Educator expenses $550
Amount she cashed and use to pay for living expenses 401(k)
To find the total amount of adjustment, we subtract the above the line deduction from income
401 + 550 = 951
Therefore. 951 - 700.20
= 250.8
The amount for deduction to the nearest dollar is $250
At the end of the current year, Accounts Receivable has a balance of $490,000; Allowance for Doubtful Accounts has a debit balance of $4,500; and sales for the year total $2,210,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $16,700. Determine the amount of the adjusting entry for uncollectible accounts.
Answer:
$21,200
Explanation:
The computation of the amount of the adjusting entry for uncollectible accounts is shown below:
= Estimated amount of Allowance for Doubtful Accounts balance + debit balance of Allowance for Doubtful Accounts
= $16,700 + $4,500
= $21,200
Simply we added the estimated amount and the debit balance so that the accurate amount can come
All other information which is given is not relevant. Hence, ignored it
What can a manager do when employee personalities are considered?
Explanation:
The work environment is made up of different personality types.
Knowing how to recognize them is extremely important for a manager to better address the strengths and weaknesses of each employee's personality type.
A good manager must know how to understand each individual's individual differences and respect them so that there is good integration between the teams, which are made up of different people with different personalities who still come together to achieve results for the company.
This is why managers need to be able to recognize their team's core motivations and values, so that their decisions are based primarily on their individuality and ethical principles.
WellminusBread Grain Company is a priceminustaker and uses target pricing. The company has just done an analysis of its revenues, costs, and desired profits and has calculated its target full product cost. Assume all products produced are sold. Refer to the following information:
Target full product cost $500, 000 per year
Actual fixed cost $280, 000 per year
Actual variable cost $3 per unit
Production volume 150, 000 units per year
Actual costs are currently higher than target full product cost. Assume all products produced are sold. Assuming that variable costs are dependent on commodity prices and cannot be reduced, what is the target fixed cost?
(A) $450,000
(B) $220,000
(C) $50,000
(D) $500,000
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Target full product cost $500, 000 per year
Actual fixed cost $280, 000 per year
Actual variable cost $3 per unit
Production volume 150, 000 units per year
We can't lower the variable cost. Therefore, the cost reduction must be on fixed costs.
Target cost= 500,000
Variable cost= $3*150,000 units= 450,000
Target fixed costs= 500,000 - 450,000= $50,000
Digby's balance sheet has $85,185,000 in equity. Further, the company is expecting net income of 3,000,000 next year, and also expecting to issue $4,000,000 in new stock. If there are no dividends paid what will beDigby's book value?
Answer:
Digby's Book Value: $
Book value of existing equity 85,185,000
Book value of additional equity 4,000,000
Net income 3,000,000
Digby's total book value 92,185,000
Explanation:
The book value of Digby is the aggregate of book value of existing equity, book value of additional equity issued and net income.
Suppose your company needs $18 million to build a new assembly line. Your target debt-equity ratio is .7. The flotation cost for new equity is 7 percent, but the flotation cost for debt is only 4 percent. Your boss has decided to fund the project by borrowing money because the flotation costs are lower and the needed funds are relatively small.a. What is your company’s weighted average flotation cost, assuming all equity is raised externally?b. What is the true cost of building the new assembly line after taking flotation costs into account?
Answer:
a. Weighted average flotation cost
= FCE(E/V) + FCD(D/V)
= 7(100/170) + 4(70/170)
= 4.12 + 1.65
= 5.77%
V = E + D
V = 100 + 70 = 170
b. Flotation cost of debt financing
= 4% x $18 million
= $0.72 million
True cost of the building after taking flotation cost into account
= $18 million + $0.72
= $18.72
Explanation:
The weighted average flotation cost is the flotation cost of equity multiplied by the proportion of equity in the capital structure plus flotation cost of debt multiplied by proportion of debt in the capital structure. The total market value is 100 + 70 = 170. Since the debt-equity ratio is 0.7. Debt takes 70 while equity takes 100. The proportion of equity in the capital structure is 100/170 while the proportion of debt in the capital structure is 70/170.
Final answer:
The company's weighted average flotation cost, assuming all equity is raised externally, is 4.9%. The true cost of building the new assembly line after taking flotation costs into account is $18.95 million.
Explanation:
To calculate the weighted average flotation cost, we need to consider the proportions of debt and equity used to fund the project. The flotation cost is the percentage of funds that the company must pay to raise new capital. In this case, the flotation cost for equity is 7% and for debt is 4%. Since the target debt-equity ratio is 0.7, we can calculate the weighted average flotation cost using the formula:
Weighted average flotation cost = (Proportion of debt * Flotation cost of debt) + (Proportion of equity * Flotation cost of equity)
Substituting the given values, we have:
Weighted average flotation cost = (0.7 * 0.04) + (0.3 * 0.07) = 0.028 + 0.021 = 0.049, or 4.9%.
Therefore, the company's weighted average flotation cost, assuming all equity is raised externally, is 4.9%.
To calculate the true cost of building the new assembly line after taking flotation costs into account, we need to consider the total amount of funds needed and the effective rate of return. The true cost can be calculated using the formula:
True cost = Total funds needed / (1 - Flotation cost rate)
Substituting the given values, we have:
True cost = $18 million / (1 - 0.049) = $18 million / 0.951 = $18.95 million.
Therefore, the true cost of building the new assembly line after taking flotation costs into account is $18.95 million.
In 2009, Mercury Marine, an outboard motor manufacturer, threatened to close their plant in Fond du Lac, WI and move to a nonunionized location in Oklahoma. This threat caused the union workers to vote to accept a contract with major concessions, including a 30% decrease in pay for newly hired workers and workers returning from layoff. This strategy could best be described as a:
Answer:
The correct answer is: forcing strategy.
Explanation:
A forcing strategy is used by employers through different coercive actions that disfavor workers. This is done to push employees to have a response on a specific matter usually when it comes to diminishing their compensations. A forcing strategy is a win-lose approach that does nothing more than promoting distrust among the work-frame.
"The strategy employed by Mercury Marine can best be described as a form of union busting, specifically using the threat of plant closure or relocation to coerce union workers into accepting less favorable contract terms. This tactic is often referred to as a ""runaway shop"" strategy.
In labor relations, a runaway shop occurs when a company shifts its operations to a new location, often to reduce labor costs by moving to an area with lower wages, weaker labor unions, or more favorable labor laws.
By threatening to move to a nonunionized location in Oklahoma, Mercury Marine was leveraging the fear of job loss among its union workers in Fond du Lac, WI to compel them to agree to significant concessions, including a substantial decrease in pay for new hires and workers coming back from layoff.
This strategy is controversial because it pits workers against each other and against the company's economic interests.
It undermines the collective bargaining power of unions by creating a divide between current workers, who may be fighting to maintain their wages and benefits, and potential future workers, who are offered significantly lower compensation. The long-term impact can weaken the union's position and potentially lead to the erosion of labor standards and worker protections.
In summary, the strategy used by Mercury Marine is a union-busting tactic known as a runaway shop, which involves threatening to relocate operations to force union workers to accept reduced wages and benefits. This approach exploits workers' concerns about job security to achieve company cost-saving objectives at the expense of labor rights and solidarity."
The stock of Big Joe's has a beta of 1.38 and an expected return of 16.26 percent. The risk-free rate of return is 3.42 percent. What is the expected return on the market?a. 7.60%b. 8.04%c. 9.30%d. 12.72%e. 12.16%
Answer:
d. 12.72%
Explanation:
To calculate the expected return on the market, we will use the Capital asset pricing model (CAPM) equation.
The CAPM allows to relate the risk-free rate of return (RFROR), the market risk premium, the beta of an asset and the expected return of this asset.
Expected return = risk-free ROR + (Beta*Market risk premium)
In this case we know all the parameters but the Market risk premium (MRP), so we have:
[tex]ER=RFROR+\beta*MRP\\\\\\16.26=3.42+1.38*MRP\\\\MRP=(16.26-3.42)/1.38=9.30[/tex]
We also know that the beta of the market, by definition, is equal to one. So now that we know the market risl premium we can calculate the expected return on the market:
[tex]ER=RFROR+\beta*MRP\\\\ER=3.42+1*9.30=3.42+9.30=12.72[/tex]
The expected return on the market is 12.72%.
Final answer:
Using the CAPM formula, we rearrange to solve for the Expected Return on the Market and find it to be 12.72%, corresponding to option d.
Explanation:
The student's question concerns finding the expected return on the market using the Capital Asset Pricing Model (CAPM). The CAPM formula is given by:
Expected Return on Stock = Risk-Free Rate + Beta * (Expected Return on Market - Risk-Free Rate)
We can rearrange this formula to solve for the Expected Return on the Market (ERM), as follows:
ERM = ((Expected Return on Stock - Risk-Free Rate) / Beta) + Risk-Free Rate
Substituting the provided values into this equation, we get:
ERM = ((16.26% - 3.42%) / 1.38) + 3.42%
ERM = (12.84% / 1.38) + 3.42%
ERM = 9.30% + 3.42%
ERM = 12.72%
Therefore, the expected return on the market is 12.72%, which corresponds to option d.
Compute the takt time for a service system that intended to perform a standardized service. The system will have a total work time of 358 minutes per day, two 19-minute breaks, and an hour for lunch. The service system must process 88 jobs a day. (Round your answer to 2 decimal places.) Takt time minutes per cycle
Answer:
2.95 minutes
Explanation:
For computing the takt time minutes per cycle, first we have to determine the available time which is shown below:
= Total work time - break time
= 358 minutes - 98 minutes
= 260 minutes
The 98 minutes is come from
2 × 19 minutes = 38 minutes
1 hour lunch = 60 minutes
Total break time = 98 minutes
Now the takt time minutes per cycle would be
= Total available time ÷ number of jobs in a day
= 260 minutes ÷ 88 jobs
= 2.95 minutes
Suppose the reserve requirement is currently 20%. Instructions: Enter your answers as a whole number. a. Assume Second Bank has deposits of $300 million. Calculate the required reserves for Second Bank. $ million b. At the end of the day, Second Bank has $65 million of reserves. Will Second Bank be a borrower or lender in the federal funds market? Second Bank will reserves of $ million in the federal funds market.
Final answer:
To calculate the required reserves for Second Bank, multiply the deposits by the reserve requirement. If Second Bank has $65 million of reserves, it will be a lender in the federal funds market.
Explanation:
To calculate the required reserves for Second Bank, we need to multiply the deposits by the reserve requirement.
a. Required reserves = Deposits x Reserve Requirement
Deposits = $300 million
Reserve Requirement = 20%
Required reserves = $300 million x 20% = $60 million
Therefore, the required reserves for Second Bank are $60 million.
b. If Second Bank has $65 million of reserves, which is greater than the required reserves of $60 million, it will be a lender in the federal funds market. Second Bank can lend the excess reserves of $5 million.
Suppose Amazon.com has offered you free shipping on your next purchase of more than $35. This offer is an example of ________.
A) sales promotionB) personal sellingC) a public relations strategyD) horizontal diversificationE) a pull strategy
Answer: Option A
Explanation: Sales promotion is the method of convincing a prospective consumer to buy the commodity. Sales promotion is intended to be used as a brief-term tool to boost sales – it is seldom appropriate as a way to develop long-term customer retention.
Giving discount, rebates and other such special offers are some of the many examples of sales promotion. In simple words,it is done to boost the sales for the current period.
In the given case, Amazon is also offering money saving offers to attract customers. Hence we can conclude that this is an example of sales promotion.
The quantity demanded x (in units of a hundred) of the Mikado miniature cameras per week is related to the unit price p (in dollars) by p = −0.2x2 + 220 and the quantity x (in units of a hundred) that the supplier is willing to make available in the market is related to the unit price p (in dollars) by p = 0.1x2 + 8x + 110. If the market price is set at the equilibrium price, find the consumers' surplus and the producers' surplus. (Round your answers to the nearest dollar.)'
To determine the consumer surplus and producer surplus at the market's equilibrium price for Mikado miniature cameras, one must first find the equilibrium by setting the demand equation equal to the supply equation. Then, using the concepts of consumer and producer surplus in economic graphs, calculate the areas below the demand curve and above the supply curve to find the respective surpluses.
Explanation:The student has asked to find the consumer surplus and the producer surplus at the equilibrium price for Mikado miniature cameras. The equilibrium price is the point where the quantity demanded equals the quantity supplied, which can be found by equating the two given equations:
For demand: p = −0.2x² + 220
For supply: p = 0.1x² + 8x + 110
Once the equilibrium price and quantity are found, the consumer surplus is the area below the demand curve and above the market price while the producer surplus is the area above the supply curve and below the market price. These areas form triangular regions on the graph of demand and supply.