Answer:
I would answer makes recession less severe
Explanation:
Unemployment compensation is an example of: automatic stabilizer
Final answer:
The unemployment compensation program acts as an automatic stabilizer, D. making recessions less severe by supporting aggregate demand through income support to the unemployed.
Explanation:
The unemployment compensation program is often seen as a form of automatic stabilizer that helps to cushion the economic blow of a recession by providing income support to those who lose their jobs. This income support helps to maintain aggregate demand by giving the unemployed funds to continue spending, preventing a steeper decline in economic activity. Thus, rather than making recessions more severe, the program tends to make recessions less severe.
During inflationary episodes, the effect of unemployment compensation is not as straightforward. While it can provide some countercyclical pressure by supporting demand, if the inflation is driven by cost-push factors, such as a rise in the price of oil, increased spending from unemployment benefits could contribute to the inflationary pressure. However, typically, inflation is not driven by such factors, and the main role of unemployment compensation is to stabilize output rather than influencing inflation significantly. In conclusion, the primary effect of unemployment compensation is as a stabilizer during recessions rather than as an inflationary force.
Lean Accounting The annual budgeted conversion costs for a lean cell are $180,000 for 1,000 production hours. Each unit produced by the cell requires 20 minutes of cell process time. During the month, 600 units are manufactured in the cell. The estimated materials costs are $30 per unit. (Do not round per unit cost. If required, round your answers to the nearest dollar.) Journalize the following entries for the month: a. Materials are purchased to produce 500 units. b. Conversion costs are applied to 600 units of production. c. The cell completes 450 units, which are placed into finished goods. If an amount box does not require an entry, leave it blank.
Answer:
Lean Accounting
General Journal
Sr. No Particulars Debit Credit
1. Materials $ 15000 Dr
Cash (Accounts Payable) $ 15000 Cr
500 units* $30 per unit = $15000
2. Conversion Costs $ 36000 Dr
Work In Process $ 36000Cr
One unit require 20 minutes
600 units require= 600*20= 12000 minutes
There are 60 minutes in 1 hour
12000/60 = 200 hours
600 units require 200 hours
1 hour costs $180
Conversion Costs for 600 units= ($ 180,000/1000)*200= $ 36000
3. Finished Goods 40500 Dr
Work in Process 40500 Cr
Materials for 450 units = $30 * 450= $ 13500
Conversion for 450 units = $ 180 *( 450*20/60) = 150*180= $27000
Total Cost of 450 units completed= $ 13500+ $ 27000= $ 40 500
Shrives Publishing recently reported $14,500 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had $3,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 35%. During the year, the firm had expenditures on fixed assets and net operating working capital that totaled $1,550. These expenditures were necessary for it to sustain operations and generate future sales and cash flows. What was its free cash flow
Answer:
i think the answer is 7
Explanation:
ABC Inc. hires you as its Ethics Officer, and the CEO of ABC Inc wants you to help ABC Inc become ESG compliant. She asks you to make two recommendations each for the Environmental, Social, and Governance components of the ESG report for ABC Inc. She is keen on not repeating Enron’s mistakes, and also wants you to point out how your recommendations will ensure that ABC Inc will function differently from Enron
Answer:
The definition of the problem is listed throughout the section below on explanations.
Explanation:
ABC Inc employs ABC Inc as an internal auditor as well as CEO into becoming compliant with ESG. She requests you should consider 2 recommendations each for ABC Inc's ESG research on Climate, Economic, and Governance. Why your advice will ensure ABC Inc operates differently against Enron.
Environment:
Through its operational activities, ABC should incorporate renewable energy. Solar panels could be used for generating power in organizations where appropriate.ABC will devote 5% of all its sales to research for environmentally friendly energy resources to significantly reduce its reliance on coal.Social:
ABC could perhaps recognize the perspective including its investors and therefore should share the required info.When the CEO is unaware of the corporation's misconduct as well as some informant points something out to herself, therefore that individual or organization must be tended to or respected.Governance:
ABC ought to be more open concerning its activities. If it's the founder or the worker. Stockholders ought to learn what the internal operations of their business are.Boards must be supervised closely and they should include separate, representative members. Their pay should not have been so strong that incongruity is prevented in conferences.As contrasted with Enron's. Enron did not follow up on such above compliance issues.
We were vague when it came to disclosing their liabilities off the income statement. Shareholders were unfamiliar with the firm's operations.Whistle-blower or anybody who referred out such a program flaw was embarrassed and disciplined.ABC Inc may obey these guidelines above to have been consistent with ESG.
It is frequently possible to test the physical inventory prior to the balance sheet date whenA.the internal control system is no better at year-end than at an earlier point in time. B.the client counts inventory at interim dates. C.the perpetual inventory records are accurate and related controls operate effectively. D.year-end sales are small.
Answer: C.the perpetual inventory records are accurate and related controls operate effectively
Explanation: When the perpetual inventory records are accurate and related controls operate effectively, it is frequently possible to test the physical inventory prior to the balance sheet date. An auditor will generally decide whether the inventory count can be taken before year-end primarily on the basis of accuracy of the perpetual inventory master files.
.
Question 2
Using the information from Georgia's government and your economic knowledge, compose a two-to three-paragraph
email message to the governor's economic advisors that analyzes the economic impact of price controls. Your email
message should address these points:
Why does the government implement price controls? Be creative and come up with a specific example of the two
situations you listed in question 1.
• What types of goods or services do price controls cover? Tailor your response to the situation you are describing.
• Is this price control a price floor or a price ceiling?
• Who or what would benefit or be harmed by these price controls?
• Based on the overall benefit or harm to society and the economy, justify your opinion on whether the price control is
a benefit or hindrance to the economy.
Be sure to use proper grammar as well as a topic sentence and introductory and concluding statements.
Answer:
This is the sample answer
Explanation:
After a natural disaster, such as a major hurricane, there is increased demand for gasoline, lumber, bottled water, clothing, and other essential goods as people try to replace and rebuild what was lost. At the same time, the supply of these goods likely decreases because of disruptions to factories and transportation. Under normal market conditions, producers would raise their prices at the first sign of trouble, both to offset their own losses from the disaster and to obtain optimal profits.
However, people who have lost everything need to start rebuilding as soon as possible at a price they can afford to pay. The sooner the community is rebuilt and back to normal, the sooner the local economy will return to normal for both consumers and producers. For this reason, I think the government should introduce price ceilings on essential goods during a disaster. Many people would not be able to buy the goods they need without price ceilings. Although producers lose out on maximizing their profits, their actual losses are limited because they are allowed to raise prices to cover production and transportation costs driven up by the disaster.
Because citizens benefit so greatly from them, I think emergency price ceilings are beneficial to the economy as long as producers do not suffer significant losses from them.
Price controls are implemented by the government to regulate the prices of certain goods or services. They can be a benefit or a hindrance to the economy depending on the specific situation. One example is the implementation of price controls on water during a severe drought, which can protect consumers but harm some suppliers.
Explanation:Price controls are implemented by the government to regulate the prices of certain goods or services. They can be used to stabilize prices, protect consumers, or support specific industries. For example, during a time of severe drought, the government may implement price controls on water to ensure that it remains affordable for everyone, thus protecting the welfare of the population.
The types of goods or services that price controls cover can vary depending on the situation. In the case of the water shortage example, price controls would cover the price of water usage and potentially related products like water filters or bottled water.
In this scenario, the price control would be a price ceiling because it sets a maximum price that cannot be exceeded. Consumers would benefit from the price control as it ensures that water remains affordable during the drought. However, some suppliers or businesses may be harmed if they are unable to charge higher prices to cover production costs.
Based on the overall benefit or harm to society and the economy, the price control in this example can be seen as a benefit to the economy. It helps maintain access to an essential resource for the population while protecting vulnerable consumers from excessively high prices. However, it's important to consider the potential long-term effects and unintended consequences of price controls.
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Europa Company manufactures only one product. Presented below is direct labor information for November.Standard direct labor hours per unit of product 3.20Number of finished units produced 6,500Standard wage rate per direct labor hour (SP) $19.20Total direct labor payroll for the period $359,424Actual wage rate per direct labor hour worked (AP) $161. The actual direct labor hours worked (AQ) during November was:2. The total standard direct labor hours (SQ) in November for the output produced was:3.The direct labor rate variance for November (to two decimal places) was:4.direct labor efficiency variance for November (to two decimal places) was:
Answer:
1. 22,464 hours
2. 20,800 hours
3. $71,884.80 Favorable
4. $31,948.80 Unfavorable
Explanation:
Given that
Standard hours per unit = 3.20
Number of finished units = 6,500
Standard wage rate per hour = $19.20
Total direct labor payroll = $359,424
Actual wage rate per hour = $16
1. The computation of direct labor hours worked is shown below:-
Direct labor hours worked = Total labor cost ÷ Actual wage rate
= $359,424 ÷ 16
= 22,464 hours
2. The computation of total standard direct labor hours is here below:-
Total standard direct labor hours = Standard hours per unit × Actual units produced
= 3.20 × 6,500
= 20,800 hours
3. The calculation of direct labor rate variance is shown below:-
Direct labor rate variance = Actual hour × (Standard rate - Actual rate)
= 22,464 × ($19.2 - $16)
= 22,464 × $3.2
= $71,884.80 Favorable
4. The calculation of direct labor efficiency variance is shown below:-
Direct labor efficiency variance = Standard Rate × (Standard hour - Actual hours)
= $19.20 × (20,800 - 22,464)
= $19.20 × -$1,664
= $31,948.80 Unfavorable
Will give BRAINLIEST! Please read the question THEN answer correctly! No guessing.
Answer:
D
Explanation:
Since Sula is making her decision based on what would be environmentally friendly, she is being socially responsible, but not necessarily analyzing the other variables. Therefore, the answer is D. Hope this helps!
Bramble Company purchases $50,500 of raw materials on account, and it incurs $61,400 of factory labor costs. Supporting records show that (a) the Assembly Department used $25,100 of the raw materials and $39,700 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs. Journalize the assignment of overhead to the Assembly and Finishing Departments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
Work In Process : Assembly Department $63,520 (debit)
Work In Process : Finishing Department $34,720 (debit)
Overhead $98,240 (credit)
Explanation:
Overhead allocations are based on the labor cost.Thus, First determine the amounts of labor costs allocated to the Departments.
Labor Cost Allocation :
Assembly Department = $39,700
Finishing Department = $21,700 that is (61,400 -39,700)
Overhead Allocation :
Assembly Department ($39,700 × 160%) = $63,520
Finishing Department ($21,700 × 160%) = $34,720
Last year, Arbor Corporation reported the following: Balance Sheet Total Assets $ 1,040,000 Total Liabilities 660,000 Total Shareholders' Equity $ 380,000 This year, Arbor is considering whether to issue more debt to fund a $100,000 project or to issue additional shares of common stock. Both options will bring in exactly $100,000. Arbor's current debt contracts contain a debt covenant that requires it to maintain a debt-to-equity ratio of 2.00 or less. Required: 1. Calculate Arbor's current debt-to-equity ratio. (Round your answer to 2 decimal places.)
Answer:
Arbor's current debt-to-equity ratio = 1.74
Explanation:
Given:
Total assets : $1,0400,000
Total liabilities : $660,000
Total Shareholders' Equity: $380,000
To calculate the current debt to equity ratio.
It is calculated as:
Total liabilities / Total Shareholders equity.
Therefore, the current debt to equity ratio will be :
$660,000/$380,000 = 1.74
Therefore, Arbor's current debt-to-equity ratio = 1.74
Pacific Ink had beginning work-in-process inventory of $762,960 on October 1. Of this amount, $313,920 was the cost of direct materials and $449,040 was the cost of conversion. The 57,000 units in the beginning inventory were 25 percent complete with respect to both direct materials and conversion costs. During October, 120,000 units were transferred out and 39,000 remained in ending inventory. The units in ending inventory were 75 percent complete with respect to direct materials and 35 percent complete with respect to conversion costs. Costs incurred during the period amounted to $2,956,500 for direct materials and $3,737,220 for conversion. 1.value: 20.00 pointsRequired information Compute the costs of goods transferred out and the ending inventory using the weighted-average method.
Answer:
Cost of goods transferred =$6,388,147.07
Cost of ending inventory=$1,068,478.93
Explanation:
Equivalent unit of material = (120,000× 100%)+(39,000×75%)=149250
Cost per unit of material = Total cost /Total equivalent unit
=(313,920 +2,956,500)/149250 =21.912
Cost per conversion cost
Equivalent unit of conversion cost
= (120,000 × 100%) + ((39,000×35%)= 133,650
Cost per unit of conversion cost
= ($3,737,220 + $449,040)/133,650 = 31.322
Cost of goods transferred = 120,000× (21.912 + 31.322)= 6,388,147.07
Cost of Inventory = (75%*39,000×21.912)+(35%× 39,000×31.322)
= 1,068,478.93
Cost of goods transferred =$6,388,147.07
Cost of ending inventory=$1,068,478.93
=
Sharon knew that her established customers preferred her product much better than the one sold by her primary competitor. As Sharon was planning to expand into new markets, she was considering her pricing options. Over time and several discussions with customers, Sharon was leaning toward charging a higher price than competitors. She thought that the higher price would help demonstrate that hers was a high-quality product. Sharon was considering Group of answer choices
A. a top of market strategy.
B. the value of quality.
C. advantageous pricing.
D. premium pricing.
E. differential pricing.
Answer:
Premium pricing
Explanation:
Premium pricing can be defined as a pricing strategy in which the price of a product is increased. This increase in price is done against the competitors to create the perception that the high priced products have a greater quality.
Premium pricing is used at the inception of a new product into the market. It is utilized by various companies to maximise profit because the customers are willing to pay more money, to prevent competitors from entry into the market.
Answer:
its A trust me
Explanation:
Ellis Television makes and sells portable televisions. Each television regularly sells for $210. The following cost data per television is based on a full capacity of 10,000 televisions produced each period. A special order has been received by Ellis for a sale of 2,000 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $6 per television for shipping. Ellis is now selling 6,000 televisions through regular channels each period. What should be the minimum selling price per television in negotiating a price for this special order?
Question
Ellis Television makes and sells portable televisions. Each television regularly sells for $210. The following cost data per television is based on a full capacity of 10,000 televisions produced each period.
Direct material - $80
Direct Labour -$60
Manufacturing overhead(70% variable, 30% unavoidable fixed cos) -$40
A special order has been received by Ellis for a sale of 2,000 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $6 per television for shipping. Ellis is now selling 6,000 televisions through regular channels each period. What should be the minimum selling price per television in negotiating a price for this special order?
Answer:
The minimum selling price = $174.
Explanation:
The minimum selling price to be acceptable for the special order be the same as the relevant variable cost of producing a unit.
The relevant variable cost = marginal cost of a unit
Marginal cost = Direct material + Direct labour + Variable manufacturing overhead + shipping cost
Marginal cost = 80 + 60 + (70%× 40) + 6
= 174
The minimum selling price = $174.
Note : The 30% balance of manufacturing overhead which represents unavoidable fixed costs is irrelevant for this decision. These are costs that would be incurred either way whether or not the special order is accepted.
A business traveler joined the Starwood Preferred Guest Program in order to earn points each time he stayed overnight in a Westin or Sheraton hotel. Once he has accumulated enough points, he can trade in his points for a free night's stay. As a member of this program, the traveler receives periodic updates on new hotels and learns of ways to earn additional points. The marketing term that best describes this scenario is:_________.a. relationship marketing. b. customer satisfaction promotion
Answer:
Relationship Marketing
Explanation:
Relationship marketing is a form of marketing that involves building a strong relationship with the customers, It is focuses mainly on long term goals which helps to strengthen the brand loyalty.
Relationship marketing helps to create a positive awareness of the product to the customers, this form of marketing also enables the marketer to understand the customers better.
Customers that have a strong relationship with the brand can help in the expansion of the business by introducing the products to other people e.g. friends and family members.
The financial reporting carrying value of Boze Music's only depreciable asset exceeded its tax basis by $147,000 at December 31, 2021. This was a result of differences between straight-line depreciation for financial reporting purposes and accelerated depreciation for tax purposes. The asset was acquired earlier in the year. Boze has no other temporary differences. The enacted tax rate is 27% for 2021 and 40% thereafter. Boze should report the deferred tax effect of this difference in its December 31, 2021, balance sheet as:
Answer:
Boze should report the deferred tax effect of this difference in its December 31, 2021, balance sheet as a liability of $58,800
Explanation:
According to the given data Boze Music's only depreciable asset exceeded its tax basis by $147,000 and there is a rate of 40% thereafter.
Therefore, in order to calculate what amount Boze should report the deferred tax effect of this difference in its December 31, 2021, balance sheet, we would have to make the following calculation:
deferred tax liabilty= $147,000×40%
deferred tax liabilty=$58,800
Boze should report the deferred tax effect of this difference in its December 31, 2021, balance sheet as a liability of $58,800
Construct profit diagrams or profit tables on expiration to show what position in IBM puts, calls and/or underlying stock best expresses the investor’s objectives described below. Assume IBM currently sells for $150 so that profit diagrams/ tables between $100 and $200 (in $10 increments) are appropriate. Also assume that "at the money" puts and calls cost $15 each. (As usual, the profit calculations ignore dividends and interest.)
(a) An investor wants upside potential if IBM increases but wants (net) losses no greater than $15 if prices decline.
(b) An investor wants to capture prots if IBM declines in price but wants a guaranteed limited loss if prices increase.
(c) An investor wants to capture prots if IBM declines in price and is ready to accept unlimited losses if prices increase. Further, the investor wants to break even if the stock price does not change between now and the maturity of the options.
(d) An investor wants to prot if IBM's upcoming earnings announcement is either unexpectedly good or disappointingly bad.
Answer:
Check the explanation
Explanation:
Kindly check the attached images below to see the step by step explanation to the question above.
The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $30,000. According to an independent appraisal, the land currently is worth $72,000. Tinsley paid $14,000 in cash to complete the transaction. Required: 1. What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance? 2. Prepare the journal entry to record the exchange assuming the exchange has commercial substance. 3. Prepare the journal entry to record the exchange assuming the exchange lacks commercial substance. 4. Prepare the journal entry to record the exchange except that Tinsley received $9,000 in the exchange, and the exchange lacks commercial substance.
The fair value of the new land parcel Tinsley received is $72,000. The journal entries depend on whether the exchange has commercial substance, and they adjust for any cash paid or received during the transaction.
Explanation:The fair value of the new parcel of land received by Tinsley is the sum of the original cost of the land given up ($30,000) plus the additional cash paid ($14,000), which is $44,000, assuming the transaction has commercial substance. However, because the appraisal value of the land is $72,000, which is higher than the carrying amount plus the cash paid, the fair value of the new land is $72,000.
If the exchange has commercial substance, the journal entry to record the transaction would be:
If the exchange lacks commercial substance and no cash is received, the new land is recorded at the book value of the old land plus any cash paid, and no gain is recognized. The journal entry in this case would be:
If Tinsley received $9,000 in the exchange and the exchange lacks commercial substance, the journal entry would be:
The recognition of a gain is deferred in exchanges lacking commercial substance unless cash is received.
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The following schedule relates the income statement with cash flows from operating activities, derived by both the direct and indirect methods. The amounts for income statement elements are missing. Cash Flows from Operating Activities Income Statement Indirect Method Direct Method Net income $ ? Adjustments: Sales $ ? Decrease in accounts receivable 12 Cash received from customers $ 612 Cost of goods sold ? Increase in inventory (24 ) Decrease in accounts payable (36 ) Cash paid to suppliers (420 ) Salaries expense ? Increase in salaries payable 12 Cash paid to employees (66 ) Depreciation expense ? Depreciation expense 18 (Not reported—no cash effect) Insurance expense ? Decrease in prepaid insurance 18 Cash paid for insurance (24 ) Loss on sale of land ? Loss on sale of land 12 (Not reported—no cash effect) Income tax expense ? Increase in income tax payable 12 Cash paid for income taxes (42 ) Net income $ ? Net cash flows from operating activities $ 60 Net cash flows from operating activities $ 60 Required: Deduce the missing amounts and prepare the income statement.
Find the complete income statement and complete table in the attachment.
Help: Income tax = Cash Paid for income taxes + increase in income tax payable
Ginger Hardware was organized on January 1, 2021. The firm was authorized to issue 170,000 shares of $5 par value common stock. During 2021, Ginger Hardware had the following transactions relating to stockholders' equity: Issued 51,000 shares of common stock at $7 per share. Issued 34,000 shares of common stock at $8 per share. Reported a net income of $170,000. Paid dividends of $85,000. What is total paid-in capital at the end of 2021
Answer:
$544,0000
Explanation:
Shareholders equity = (51,000 * $7) + (34,000 * $8) = $629,000
Retained earnings = $170,000 - $85,000 = $85,000
Total paid-in capital = Shareholders equity - Retained earnings = $629,000 - $85,000 = $544,0000
Multinational corporations operate in locations across the world. Each company has its own motive for its presence in different countries.
Consider the following case:
RTE Telecom Inc. is an American company that produces high-tech electronics. Its managers have decided to move some of its production facilities to Japan in an attempt to circumvent certain governmental regulations. Which of the following best describes the reason RTE Telecom Inc. has decided to go global?
a. To avoid political, trade, and regulatory hurdles
b. To broaden its markets
c. To seek production efficiency
Answer:
a. To avoid political, trade, and regulatory hurdles
Explanation:
The question states that RTE Telecom is opening a production facility in Japan to circumvent governmental regulations. Circumvent means to overcome a problem by going around the problem, in a deceitful way.
This means that RTE is trying to avoid some type of regulation or law either in Japan or the US. Many times MNCs move their operations to foreign countries to pay less taxes, avoid certain trade barriers, or avoid certain laws specially regarding the environment or other negative externalities generated by their production processes.
Esther and Salim are promoters for Kale Inc. Prior to its incorporation, Esther negotiated several pre-incorporation contracts with Ian, an investor. She signed each contract in the name of Kale Inc. Kale subsequently was incorporated, but the Kale Board of Directors refused to adopt the contracts. Ian later sues Kale, Esther, and Salim on the contracts.
Which of the following statements is true of this case?
a. Only Kale and Esther are liable as Esther, a promoter of Kale, negotiated several pre-incorporation contracts with Ian.
b. Esther is solely liable as she signed each contract in the name of Kale Inc.
c. Kale, Esther, and Salim are liable as they are sued by Ian.
d. Esther and Salim are liable as they are promoters of Kale Inc.
Answer:
d.
Explanation:
Kale Inc. was incorporated. Kale Board of Directors refused to adopt the contracts that Esther negotiated with Ian, an investor. Esther signed each contract in the name of Kale Inc. Later on, Ian sues Kale, Esther, and Salim on the contracts. In such a case, Esther and Salim are liable as they are promoters of Kale Inc.
. Consider an economy that can produce two goods, apples and blue jeans. Each worker can produce 3 units of apples or 4 units of blue jeans per week. Suppose that when this economy is opened to trade, the price of apples is $10 per unit and the price of blue jeans is also $10 per unit. Suppose as well that each consumer spends one quarter of his/her income on blue jeans, and that there are 1 million workers in this economy. a. Construct the budget line for a typical worker in this economy. Explain how you arrived at the value of intersection with each axis. b. What does this economy export under trade, and how much does it export of it?
Answer:
ATTACHED GRAPH
It export jeans. it will export 3/4 of their production and keep the 1/4 for internal use.
1,000,000 jeans consumed --3,000,000 exported--
3,000,000 apples imported
Explanation:
The economy will export the good with the lower opportunity cost:
do 3 apple cost 4 jeas with a cost of $10 each total = 40
do 4 jean cost 3 apples with a cost of $10 each total = 30
The economy will focus in jeans and export to later purchase apple in the market.
Therefore will produce 4 jeans and sale them all to get 4 apple (X-axis intersection)
Or will produce 4 jeas and keep them (Y-Axis intersection)
That is produce 4 jeans x 1,000,000 worker = 4,000,000
And then, consume 1/4 = 1,000,000
and export the rest 3,000,000
State Road Fabricators Inc. is considering eliminating Model A02777 because of losses over the past quarter. The past three months of information for Model A02777 are summarized below: Sales (1,100 units) $470,000 Manufacturing costs: Direct materials 160,000 Direct labor ($15 per hour) 80,000 Overhead 150,000 Operating loss ($80,000) Overhead costs are 75% variable and the remaining 25% is depreciation of special equipment for model A02777 that has no resale value. If Model A02777 is dropped from the product line, operating income will ________.
Answer :
The operation will decrease by $117,500
Explanation :
As per the data given in the question,
State road Fabricators Inc.
Income Statement
Particulars Amount
Sales $470,000
Less: Manufacturing cost
Direct materials $160,000
Direct Labor $80,000
Overhead Variable part $112,500 ($150,000 × 75%)
Operating income $117,500
Working notes
1) In overhead cost only variable part ($112,500) will be considered for decision
hence, variable cost of overhead is relevant cost.
2) Fixed part of overhead cost ($150,000*25% = $37,500) is unavoidable s it is a sunk cost.
3) Company should not drop the product line.
Here I Sit Sofas has 8,000 shares of common stock outstanding at a price of $103 per share. There are 960 bonds that mature in 39 years with a coupon rate of 7.7 percent paid semiannually. The bonds have a par value of $2,000 each and sell at 113 percent of par. The company also has 6,900 shares of preferred stock outstanding at a price of $56 per share. What is the capital structure weight of the debt?
Answer:
0.64189
Explanation:
The computation of capital structure weight of the debt is shown below:-
Equity market value = number of shares × Price per share
= 8,000 × $103
= $824,000
Current debt value =Number of bonds × Price per bond
= 960 × (1.13 × $2,000)
= $2,169,600
Preferred stock value = Number of shares × Price per share
= 6,900 × $56
= $386,400
Total capital = Common equity value + Debt value + Preferred stock value
= $824,000 + $2,169,600 + $386,400
= $3,380,000
Weight of debt = Debt value ÷ Total capital
= $2,169,600 ÷ $3,380,000
= 64.18% or 0.64189
So, for computing the weight of the debt we simply applied the above formula.
The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3.34 in 2014 (to $2.40 in 2015). Required: 1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Insignia Corporation for the year ended December 31, 2015 (amounts in billions). 2-a. Conduct a vertical analysis by expressing each line as a percentage of total revenues. 2-b. Excluding income tax and other operating costs, did Insignia earn more profit per dollar of revenue in 2015 compared to 2014?
Answer and Explanation:
As per the data given in the question,
1)
Insignia Corporation
Income Statements
For the year ended Dec-31
Change in
Particulars 2015 2014 Dollars %
Revenues 126 266 -140 -52.6%
Cost of crude oil and products 63 153 -90 -58.8%
Other operating costs 61 55 6 10.9%
Income before income tax expense 2 58 -56 -96.6%
Income tax expense 0 30 -30 -100.0%
Net income 2 28 -26 -92.9%
2-a)
Insignia Corporation
Income Statements
For the year ended Dec-31
2015 2014
Revenues 126 100.0% 266 100.0%
Cost of crude oil and products 63 50.0% 15.3 57.5%
Other operating costs 61 49.4% 55 20.7%
Income before income tax expense 2 1.6% 58 21.8%
Income tax expense 0 0.0% 30 11.3%
Net income 2 1.6% 28 10.5%
2-b)
No, Insignia earned $0.575 per dollar of revenue in 2015 but it earned only $0.500 per dollar of revenue in 2015.
The horizontal analysis involves comparing each line item of Insignia Corporation's income statement for 2015 with the one from 2014 in dollars and percentage. Vertical analysis is done by expressing each line item as a percentage of total revenues. To assess if Insignia earned more profit per dollar of revenue, compare the net income ratio to total revenues for both years.
Horizontal Analysis
To perform a horizontal analysis of Insignia Corporation's income statement for 2015, you would compare each line item to the equivalent line item from 2014. The change in dollars is found by subtracting the 2014 amount from the 2015 amount. The percentage change is found by dividing the change in dollars by the 2014 amount and multiplying by 100.
Vertical Analysis
In a vertical analysis, each line item on the income statement is expressed as a percentage of total revenues for the same year. To do this, divide the amount of each line item by the total revenues and then multiply by 100.
Whether Insignia earned more profit per dollar of revenue in 2015 compared to 2014 can be determined by comparing the ratios of net income to total revenues for both years.
Understanding Price Determinants
Economists gain a practical understanding of what determines prices and why they change by studying real-world data. Factors affecting gasoline prices, for example, include demand, supply, taxes, and the global oil market.
MC Qu. 59 A company's flexible budget for... A company's flexible budget for 16,000 units of production showed sales, $96,000; variable costs, $56,000; and fixed costs, $19,000. The sales expected if the company produces and sells 20,000 units is (Do not round intermediate calculations): Multiple Choice $26,250. $120,000. $21,000. $7,250. $52,500. Next Visit question
Answer:
$120,000
Explanation:
The computation of sales is shown below:-
For computing the sales revenue first we need to find out the selling price per unit which is here below:-
Selling price per unit = Sales ÷ Units
= $96,000 ÷ 16,000
= $6
Sales revenue when 20,000 units are sold = Selling price per unit × Number of units sold
= $6 × 20,000
= $120,000
Therefore for computing the sales revenue we simply applied the above formula.
Students are going through a three-step process to obtain their ID cards.
Each student will spend 2 minutes at the registration desk before going to
one of three cashiers to pay a fee for the card. After that, he/she will visit one
of four ID processing stations to have his/her picture taken and the ID card
printed. Registration takes 2 minutes. Visits to the cashier and ID processing
station take 10 and 20 minutes respectively. If the demand rate is 0.5 student
per minute, which of the following conclusions can be drawn if resources are
doubled at the processing station?
A. The cashier station becomes the bottleneck.
B. There will be no bottleneck in the process.
C.The processing station becomes the
bottleneck.
D. Registration becomes the bottleneck.
Answer:
The correct answer is both A and C
Explanation:
Solution
Given that:
The Process 1 Registration, Capacity = 0.5 registration per minute (1/2)
The Process 2 Cashier, Capacity = 1*3 / 10 = 3/10 = 0.3 payments per minute
The Process 3 , Photo ID, Capacity = 1*4 / 20 = 0.2 ID per minute
Now
The Time taken for process a unit is minimum of Demand rate / Lowest process capacity
so, the flow rate = 0.2 student per minute or 5 minute per student
Thus,
The total time = 20 * 5 = 100 minutes.
Final answer:
After doubling the resources at the ID processing stations and assuming more efficient processing, the cashier station become the new bottleneck as it now has the longest processing time in the student ID card issuance process.
Explanation:
When considering the three-step process for obtaining ID cards, we look at each time component: registration (2 minutes), cashier (10 minutes), and ID processing (20 minutes). Given that the demand rate is 0.5 student per minute, this means a student arrives every two minutes on average. Doubling the resources at the processing station means that the time per student at that station is potentially halved, assuming that the additional resources are used effectively and there is no downtime or inefficiency introduced.
If the processing time is effectively reduced while the cashier time remains unchanged, the bottleneck - the slowest stage of the process limiting the overall rate - would likely shift. Since registration is still at 2 minutes and the improved processing stations are now more efficient, the cashier station, taking 10 minutes, would become the new bottleneck as it would then be the longest single step in the process.
Therefore, the correct conclusion that can be drawn with the given information is:
A. The cashier station becomes the bottleneck.
C. The processing station becomes the
bottleneck.
What group is primarily responsible for the creation of International Financial Reporting Standards (IFRS)?
a. International Forum on Accountancy Development (IFAD)
b. International Accounting Standards Board (IASB)
c. International Federation of Accountants (IFA)
d. Financial Accounting Standards Board (FASB)
Answer:
The correct answer is Option B.
Explanation:
International Accounting Standards Board (IASB) was established in 2001 to replace the International Accounting Standards Committee. It is a private-sector and independent body that approves and develops International Financial Reporting Standards (IFRS). IFRS is an accounting standard that tends to uniform the financial reporting standards across different organizations across different countries. The IASB also makes pronouncement on new and emerging IFRS standards.
Western Company is preparing a cash budget for June. The company has $10,600 in cash at the beginning of June and anticipates $31,400 in cash receipts and $37,300 in cash payments during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company has no loans outstanding. To maintain the $10,000 required balance, during June the company must:
a. Borrow $5,300.
b. Repay $4,900.
c. Borrow $10,000.
d. Repay $5,100.
e. Borrow $4,900.
Answer:
$5,300
Explanation:
The computation of maintained balance is shown below:-
Total amount = Opening Balance + Cash Receipts - Cash Disbursement
= $10,600 + $31,400 - $37,300
= $42,000 - $37,300
= $4,700
In order to maintain a balance of $10,000, it needs to borrow = $10,000 - $4,700
= $5,300
Therefore to maintain a balance of $10,000, it needs to borrow $5,300
Addison Co. budgets production of 2,750 units during the second quarter. Other information is as follows: Direct labor Each finished unit requires 3 direct labor hours, at a cost of $7 per hour. Variable overhead Applied at the rate of $9 per direct labor hour. Fixed overhead Budgeted at $540,000 per quarter. 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget.
Answer:
Direct Labor Hours Budget 8250
Direct Labor Costs Budget $ 57750
Factory Overhead Budget $ 614250
Explanation:
We multiply the direct labor hours per unit to the number of units to get the total direct labor hours which are again multiplied with the direct labor cost per hour to get the total direct labor costs.
Addison Co.
Direct Labor Budget
Quarter II
Production units 2750
Direct Labor per unit 3
Direct Labor Hours 8250
Direct Labor Cost / Hr $7
Direct Labor Costs $ 57750
We multiply the direct labor costs with variable overhead per hour to get the variable costs which are added to the fixed costs per quarter to get the total factory overhead budget.
Addison Co.
Factory Overhead Budget
Quarter II
Direct Labor Hours 8250
Variable OH / Hr $ 9
Variable Overheads $ 74250
+Fixed Overheads $ 540,000
Factory Overhead Budget $ 614250
On January 2, 2017, Lester Company, a calendar-year company, issued $40,000 of notes payable, of which $5,000 is due on January 2 for each of the next eight years the first payment is due January 2, 2018). The proper balance sheet presentation on December 31, 2017, is
a. Current Liabilities, $40,000.
b. Current Liabilities, $5,000; Long-Term Liabilities, $35,000.
c. Long-Term Liabilities, S40,000.
d. Current Liabilities, $35,000; Long-Term Liabilities, $5,000.
Answer:
The correct option is C)
Explanation:
The $ 40,000 must be recorded in full as at 31st December 2017 given that the first tranch of $5,000 is not yet due until 2nd January 2018.
It may be recognised as follows on December 31st 2018:
Current Liabilities: $5,000
Long-Term Liabilities: $35,000
Because as at that time, the $5,000 would have been paid (all factors remaining constant) while the $35,000 is recognised as payable in future.
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