Answer:
The correct answer is $10,214.15.
Explanation:
According to the scenario, the given data are as follows:
Future value (FV) = $51,780.79
Time period (t) = 39 years
Rate of interest (r) = 4.25%
So, we can calculate the amount invested by using following formula:
Amount invested = FV ÷ ( 1+ r)^t
= $51,780.79 ÷ ( 1 + 0.0425)^39
= $51,780.79 ÷ 5.06951581449
= $10,214.15
Gabriel Farms, one of The Fruit Guys’ vendors, believes in paying its employees a "living wage," which is higher than a typical minimum wage. Which of Abraham Maslow’s hierarchy of needs is satisfied by a living wage?a.Safety needsb.Physiological needsc.Self-actualization needs
d.Esteem needse.Social needs
Final answer:
Gabriel Farms satisfies the safety needs of Maslow's hierarchy by providing a living wage, ensuring employee financial security.
Explanation:
A living wage provided by Gabriel Farms satisfies the safety needs in Abraham Maslow's hierarchy of needs. These safety needs are the second tier in Maslow's pyramid, right after physiological needs, and include personal and family safety as well as financial security.
By paying a living wage, Gabriel Farms ensures their employees meet their basic financial security, which is essential before an individual can focus on higher levels of the pyramid, such as love and belonging, esteem, and self-actualization needs.
Balance sheet information for a resort hotel reflects the changes to current accounts that occurred over the annual operating period ended December 31, 0008. Cash account balance at December 31, 0007, was $12,020 and the ending cash balance at December 31, 0008, is $30,840. Current Asset Accounts Change Amount Cash Increased $18,820 Credit card receivables Increased 680 Accounts receivable Increased 1,500 Inventories Increased 1,200 Prepaid expenses Decreased 800 Current Liability Accounts Change Amount Accounts payable Decreased $ 2,100 Accrued payroll payable Increased 2,400 Taxes payable Decreased 900 Additional information applying to the current year ending December 31, 0008: a. Net income for Year 0008 was $112,400. b. Depreciation expense for Year 2008 was $120,000. c. Furnishings with a book value of $5,400 were sold for $8,600. d. Equipment with a book value of $2,800 was sold for $2,000. e. New furnishings were purchased for $16,800. f. New equipment was purchased for $24,200. g. A total of $54,800 was paid to reduce long-term debt. h. Cash dividends of $122,400 were declared and paid. Using the information provided, complete an SCF, in good form, using the indirect method.
Answer:
Net Income 112,400
Depreciation expense 120,000
Gain at disposal (furnishing) (3200)
Loss at Disposal (equipment) 800
Credit card receivables Increased (680)
Accounts receivable Increased (1,500)
Inventories Increased (1,200)
Prepaid expenses Decreased 800
Accounts payable Decreased (2,100)
Accrued payroll payable Increased 2,400
Taxes payable Decreased (900)
Cashflow from operating 226420
Investing Activities
Sale of furnishing 8,600
Sale of equipment 2,000
Purchase of furnishing (16,800)
Purchase of equipment (24,200)
Cash flow used on investing activities 30,400
Financing Activities
payment to lenders (54,800)
Cash dividends paid (122,400)
Cash flow used on financing activities 177,200
Cash balance at Dec 31th 2008 30,840
Cash balance at Dec 31th 2007 12,020
Cashflow generated for the year ended Dec 31th 2008 18,820
Explanation:
From the net income we remove the non-monettary terms
as gain at disposal, loss at disposal and depreciation.
Increase in assets decrease the cash as it was used to acquired
increase of liabilities increase cahs as payment was delayed
the opposite is true when these variables decreases.
Rowland & Sons Air Transport Service, Inc., has been in operation for three years. The following transactions occurred in February:
Feb. 1 Paid $200 for rent of hangar space in February.
Feb. 4 Received customer payment of $800 to ship several items to Philadelphia next month.
Feb. 7 Flew cargo from Denver to Dallas; the customer paid in full ($900 cash).
Feb. 10 Incurred and paid $1,200 in pilot wages for flying in February.
Feb. 14 Paid $100 for an advertisement run in the local paper on February 14.
Feb. 18 Flew cargo for two customers from Dallas to Albuquerque for $2,505; one customer paid $795 cash and the other asked to be billed $1,710.
Feb. 25 Purchased on account $1,730 in supplies for future use on the planes.
Required:
Prepare accrual basis journal entries for each transaction.
Answer:
Explanation:
Feb. 1
prepaid rent 200
Cash 200
To record the advance rent payment
Feb. 4
Cash 800
Advance liability 800
To record received for future supplies
Feb. 7
Cash 900
Contract liability 900
Payment for the service to be provided
Feb. 10
Advance wages 1200
Cash 1200
Advance wages payment to pilot
Feb. 14
Adv to Advertise 100
Cash 100
Advance payment for advertisement expense.
Feb. 18
Cash 795
Account receiveable 1710
Revenue 2510
To record the accrued revenue
Feb. 25
inventory 1730
Account payable 1730
purchases on credit
Accrual basis journal entries for transactions in Rowland & Sons Air Transport Service, Inc. in February.
Explanation:Feb. 1: Rent expense 200 cash 200
Feb. 4: Cash 800 unearned revenue 800
Feb. 7: Cash 900 service revenue 900
Feb. 10: Pilot wages expense 1,200 cash 1,200
Feb. 14: Advertising expense 100 cash 100
Feb. 18: Cash 795 unearned revenue 795
Accounts receivable 1,710 service revenue 2,505
Feb. 25: Supplies 1,730 accounts payable 1,730
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(Related to Checkpoint 20.1) (Hedging with forward contracts) The Specialty Chemical Company operates a crude oil refinery located in New Iberia, Louisiana. The company refines crude oil and sells the by-products to companies that make plastic bottles and jugs. The firm is currently planning for its refining needs for one year hence. Specifically, the firm's analysts estimate that Specialty will need to purchase 1 million barrels of crude oil at the end of the current year to provide the feed stock for its refining needs for the coming year. The 1 million barrels of crude will be converted into by-products at an average cost of $40 per barrel that Specialty expects to sell for $170 million, or $170 per barrel of crude used. The current spot price of oil is $125 per barrel and Specialty has been offered a forward contract by its investment banker to purchase the needed oil for a delivery price in one year of $130 per barrel. a. Ignoring taxes, what will Specialty's profits be if oil prices in one year are as low as $110 or as high as $150, assuming that the firm does not enter into the forward contract? b. If the firm were to enter into the forward contract, demonstrate how this would effectively lock in the firm's cost of fuel today, thus hedging the risk of fluctuating crude oil prices on the firm's profits for the next year.
Answer:
a) $110 per barrel equals 20,000,000 gains
while %150 per barril equals 20,000,000 loss
b) by entering the fordward contract the firm will purchase the barrel at the market value of the moment but, the contract will give the difference to the firm when it is above that level thus, there is no risk of a higher cost)
If the price is below 130 dollars then, the firm will pay the difference to the other party. In both cases, the total cost for the millon barrels is $130,000,000 therefore, there is no risk on the fluctuation of the barrel of crude oil.
Explanation:
a) revenues - total cost = income
where cost can be explained as conversion csot and material cost.
170 million revenues - 40 conversion cost - 110 materials = 20 million gain
170 million revenues - 40 conversion cost - 150 materials = -20 million loss
Answer:
Specialty Chemical company
low spot rates($110) high Spot rates (150)
selling price $170 million $170 million
cost of sales( 1 million) $110 million $150 million
profits $60 million $20 million
b. The forward exchange contract versus the current spot rate is not a wise decision and has a loss of $ 5 million [($125 - $13) * 1 million] if the oil was to be bought using the current spot rate, but the Hedge is for next year and if spot rates increases then the Hedge will be an asset. if the spot rate is lower than the hedge then it is an liability. Demonstration needs actual spot rate for the date of oil purchase.
Explanation:
After initially self-publishing his debut novel, The Martian, author Andy Weir continued to revise and improve later versions of the book based on readers' input, comments, and suggestions found on social media. This represents an example of an organization using social media to achieve which goal
Answer:
The correct answer is letter "A": Guide product development with customer feedback.
Explanation:
Companies make market researches before starting the manufacturing of a product. However, even if a study has been conducted to have a clear idea of what consumers want, the initial product offered may not meet customers' needs for different reasons.
In such a case, companies should take advantage of the feedback clients can provide about the product so those suggestions can be considered into the production process which will result in an output that matches better consumers' expectations.
1. Potash Corporation acquired the voting stock of Safestyle Company on January 1, 2019 for $50 million. Safestyle's book value at the time was $10 million, consisting of $2 million of capital stock and $8 million of retained earnings. The $40 million difference between fair and book value was attributed to goodwill. It is now December 31, 2020, the end of the accounting year and two years after the acquisition. Safestyle's January 1, 2020 retained earnings balance is $11 million, and it reports net income of $1.8 million for 2020. Safestyle declares no dividends and has no other comprehensive income. Goodwill from the acquisition was impaired by $1 million in 2019 and $500,000 in 2020. Potash uses the complete equity method to report its investment in Safestyle on its own books. On the December 31, 2020 consolidation working paper, eliminating entry (R) credits the Investment in Safestyle account by: A. $39,000,000 B. $38,500,000 C. $40,000,000 D. $39,500,000
The eliminating entry (R) would credit the Investment in Safestyle account by $38,500,000 on the December 31, 2020 consolidation working paper. This is the outcome of the initial investment of $50 million less the accumulated retained earnings and impairments.
Explanation:The Investment in Safestyle account on the December 31, 2020 consolidation working paper, eliminating entry (R) would be credited by $38,500,000. This is calculated by deducting the change in retained earnings and the impairment losses from the initial investment of $50 million. Here is how it works:
Initial investment in Safestyle: $50,000,000 Retained earnings on January 1, 2020: $11 million Net income for 2020: $1.8 million (which adds to retained earnings) Retained earnings on December 31, 2020 becomes $12.8 million Goodwill Impairment in 2019: $1 million Goodwill Impairment in 2020: $0.5 million Total Impairments: $1.5 million
The difference between the initial investment and the sum of end retained earnings and the total impairments gives us $50,000,000 - $12,800,000 - $1,500,000 = $38,500,000.
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Emily, the product development manager of JuzTel, seeks suggestions from her team members for improvising on the company's existing range of cell phones. The team members pour in their suggestions and Emily takes the final call on the inputs received by them. In this scenario, Emily is portrayed as a(n) _____
a. democratic leader
b. autocratic leader
c. consultative leader
d. consensus leader
The team members pour in their suggestions and Emily takes the final call on the inputs received by them. In this scenario, Emily is portrayed as a consensus leader
Explanation:
Emily, the product development manager of JuzTel, seeks suggestions from her team members for improvising on the company's existing range of cell phones. The team members pour in their suggestions and Emily takes the final call on the inputs received by them. In this scenario, Emily is portrayed as a consensus leader.In consensus leadership, the decision is based on group.consensus is a generally accepted bill by the Democrats and Republicans.It finds proposal which all the team can accept it and support it, with no member opposing it.Define your goals to the employees efficiently.Folsom Fashions sells a line of women's dresses. The company uses flexible budgets to analyze its performances. The firm's performance report for November is presented below: Actual Budget Dresses sold 5,000 6,000 Sales $ 235,000 $ 300,000 Variable costs 145,000 180,000 Contribution margin $ 90,000 $ 120,000 Fixed costs 84,000 80,000 Operating income $ 6,000 $ 40,000 What additional information would be needed for Folsom to calculate the dollar impact of changes in market share on November's operating income
Answer is below in attachment
Mary, Susan, and Sarah are running a beach boutique on the board walk of Ocean City. Their favorite product is a red lifeguard hoody. Mary believes it will sell 341 times next season. Susan forecasts sales of 535, and Sarah forecasts 199 What would be the result of a simple forecast combination? (Round to two decimal places)
Answer:
358.33 times
Explanation:
The computation of the simple forecast combination is shown below:
= (Forecast sales done by Mary + Forecast sales done by Susan + Forecast sales done by Sarah) ÷ (Total number of observations)
= (341 + 535 + 199) ÷ (3)
= (1,075) ÷ (3)
= 358.33 times
We simply divided the total sales forecasted done by each one by the total number of observations
The simple forecast combination for sales of the red lifeguard hoody is 358.33 when averaging the forecasts by Mary, Susan, and Sarah.
Explanation:The simple forecast combination for sales of the red lifeguard hoody is 358.33 when averaging the forecasts by Mary, Susan, and Sarah.To create a simple forecast combination, we take the average of the individual forecasts provided by Mary, Susan, and Sarah for the sales of the red lifeguard hoody. We calculate this by adding up all their forecasts and then dividing by the number of forecasts, which is 3 in this case.
The calculation is as follows:
(341 + 535 + 199) ÷ 3 = 1075 ÷ 3 = 358.33
Therefore, the simple forecast combination for the sales of the red lifeguard hoody is 358.33 (rounded to two decimal places).
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Farr Industries Inc. manufactures only one product. For the year ended December 31, the contribution margin increased by $560,000 from the planned level of $5,200,000. The president of Farr Industries Inc. has expressed concern about such a small increase in contribution margin and has requested a follow-up report.The following data have been gathered from the accounting records for the year ended December 31: 1 Actual Planned Difference — Increase (Decrease) 2 Sales $30,000,000.00 $28,600,000.00 $1,400,000.00 3 Variable costs: 4 Variable cost of goods sold $21,600,000.00 $21,450,000.00 $150,000.00 5 Variable selling and administrative expenses 2,640,000.00 1,950,000.00 690,000.00 6 Total variable costs $24,240,000.00 $23,400,000.00 $840,000.00 7 Contribution margin $5,760,000.00 $5,200,000.00 $560,000.00 8 Number of units sold 120,000.00 130,000.00 9 Per unit: 10 Sales price $250.00 $220.00 11 Variable cost of goods sold 180.00 165.00 12 Variable selling and administrative expenses 22.00 15.00 Required: 1. Prepare a contribution margin analysis report for the year ended December 31. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 2. At a meeting of the board of directors on January 30, the president, after reviewing the contribution margin analysis report, made the following comment: "It looks as if the price increase of $30 had the effect of increasing sales. However, this was a trade-off since sales volume decreased. Also, variable cost of goods sold per unit increased by $15 more than planned. The variable selling and administrative expenses appear out of control. They increased by $7 per unit more than was planned, which is an increase of over 47% more than was planned. Let’s look into these expenses and get them under control! Also, let’s consider increasing the sales price to $275 and continue this favorable trade-off between higher price and lower volume." Do you agree with the president’s comment? Explain.
Answer:
Farr Industries Inc
Contribution Margin Analysis
Planned Contribution Margin $5,200,000.00
Effect of change in sales:
Sales quantity factor (120,000-130,000)x$220 ($2,200,000)
Unit price factor ($250 - $220)x120,000 $3,600,000
Total effect of change in sales $1,400,000.00
Effect of changes in variable cost of goods sold:
Variable cost quantity factor (130,000-120,000)x $165 $1,650,000.00
Unit cost factor ($180-165) x 120,000 ($1,800,000.00)
Total effect of changes in variable cost of goods sold ($150,000.00)
Effect of changes in variable selling and administrative expenses:
Variable cost quantity factor (130,000-120,000)x $15 $150,000.00
Unit cost factor ($22-$15)x 120,000 units ($840,000.00)
Total effect of changes in
variable selling and administrative expenses ($690,000.00)
Actual contribution margin $5,760,000.00
I disagree with the President, seeing as though we see that the majority of the decrease in the variable cost of the products sold is due to the variable cost factor and also to the variable sales and administrative expenses because the company made additional sales efforts to stay competitive at increased prices
Chester currently has $14,000,000 in cash and management has decided to issue stocks and bonds worth an additional $8,000,000. There are 2,566,559 shares outstanding. Assuming that cash from operations will be the same for each of the following activities, which activity exposes this company to the most risk of being issued an emergency loan?
Answer:
Retiring the oldest bond
Explanation:
Firms issue bonds to raise the funds. Firm has to pay dividend on those bonds and the ability of firm to pay dividend reflect the financial position of the firm. Thus, retiring the oldest bond in exposes company to the most risk of being issued an emergency loan
Georges Bank, a highly productive fishing area off New England, can be divided into two zones in terms of fish population. Zone 1 has the higher population per square mile but is subject to severe diminishing returns to fishing effort. The daily fish catch (in tons) in Zone 1 is F1 = 200(X1) - 2(X1) 2 where X1 is the number of boats fishing there. Zone 2 has fewer fish per mile but is larger, and diminishing returns are less of a problem. Its daily fish catch is F2 = 100(X2 ) - (X2 ) 2 where X2 is the number of boats fishing in Zone 2. The marginal fish catch MFC in each zone can be represented as MFC1 = 200 - 4(X1) and MFC2 = 100 - 2(X2). There are 100 boats now licensed by the U.S. government to fish in these two zones. The fish are sold at $100 per ton. Total cost (capital and operating) per boat is constant at $1000 per day. Answer the following questions about this situation: a. If the boats are allowed to fish where they want, with no government restriction, how many will fish in each zone? What will be the gross value of the catch?b. If the U.S. government can restrict the number and distribution of the boats, how many should be allocated to each zone? What will be the gross value of the catch? Assume the total number of boats remains at 100.c. If additional fishermen want to buy boats and join the fishing fleet, should a government wishing to maximize the net value of the catch grant them licenses? Why or why not? (Hint: Marginal revenue and marginal cost in Zone 1 are 100(200 ? 4X1 ) and 1000 , respectively; while marginal revenue and marginal cost in Zone 2 are 100(100 ? 2X2 ) and, 1000 , respectively).
Answer:
Explanation:
please find the attached for a solution
If the cafeteria installs an automatic vendor that dispenses a cup of coffee at a constant time of 15 seconds, how many customers would you expect to see at the coffee urn (waiting and/or pouring coffee)
On average, we can expect 4 customers to arrive at the coffee urn per minute when the cafeteria installs the automatic vendor.
Explanation:To find out how many customers we would expect to see at the coffee urn, we need to determine the average time it takes for a new customer to arrive.
Given that a cup of coffee is dispensed every 15 seconds, we can calculate the average number of customers arriving per minute.
There are 60 seconds in a minute, so there will be 60 / 15 = 4 cups of coffee dispensed per minute.
Therefore, we can expect an average of 4 customers to arrive at the coffee urn per minute.
Implementing security policies is easier if you manage it from a change model perspective. The first step of this model is to create urgency. Who is responsible for conveying urgency to business leaders?a.chief information security officerb.chief information officerc.chief finance officerd.chief technology officer
Answer:
chief information security officer
Explanation:
Chief information security officer -
It refers to the officer , present is the in senior level executive of the organization who is responsible for maintaining and establishing the program and strategy so that all the assets are efficiently protected .
The responsibility of the CISO officers is to indicate other employees to identifying , generting , implementing and maintaining the enterprise in order to eliminate any risk of information technology .
Hence , from the given information of the question ,
The correct answer is chief information security officer .
The Chief Information Security Officer (CISO) is typically responsible for conveying a sense of urgency to business leaders during the implementation of security policies, using potential threats to the organization to inspire necessary changes.
The individual responsible for conveying urgency to business leaders in the context of implementing security policies is typically the Chief Information Security Officer (CISO). The CISO's role is to highlight external or internal threats to the organization's competitiveness, reputation, or survival. In successful change efforts, a sense of urgency is crucial, as evidenced by the transformation at IBM under CEO Lou Gerstner, who leveraged the company's crisis to inspire change rather than projecting unfounded optimism.
Creating a sense of urgency is the foremost step in a change model that is integral to successful implementation of new policies or adjustments within a business. This approach can lead to the acceptance and cooperation necessary for the change to be effective and sustainable.
g: have an annual coupon rate of 8 percent and a par value of $1,000 and will mature in 20 years. If you require a 7 percent return, what price would you be willing to pay for a Vanguard bond
Answer:
The price for a vanguard bond will be $1204.48
Explanation:
We are given the face value of the bond so now we will look for the present value at which the vangaurd bond can be sold for so firstly we are given the bonds face value which is $1000 and an annual coupon rate of 8% plus the mature period of 20 years so we will use this information to find the bonds future value at a coupon rate which is the face value in 20 years time using the formula Fv = Pv (1+i)^n
where Fv is the future face value of the bond
Pv is the present value of the bond which is $1000
i is the coupon rate of 8%
n is the period the bond will mature in
therefore now we substitute the above mentioned values:
Fv = 1000(1+8%)^20
Fv = $4660.957144 this is the future face value of the bond now we will find the present value of the bond using the interest rate of 7% considering the return i want to find the value of the vanguard bond now using the same above formula but finding the present value at 7% per annum:
Pv= Fv/ (1+i)^n
where Fv is the future value above for the bond
Pv is the present value price of the bond which we are looking for
i is the interest rate i require which is 7%
n is the period of 20 years the bond took to mature.
therefore we substitute to the above mentioned formula:
Pv = $4660.957144/(1+7%)^20 then compute on a calculator
Pv = $1204.48 which will be the the price i'm willing to pay for the vanguard bond.
A corporate dissolution: a. cannot result from an agreement. b. results when a corporation does not hold an annual meeting. c. can begin with a board resolution. d. none of the above
Answer:
The correct answer is (C)
Explanation:
Corporate dissolution is a termination of cooperation that results after a complete consent of the board of directors. Likewise, a corporate dissolution is a serious step that can begin with a board resolution. If the board of directors are on one page then it becomes easier to dissolve cooperation. It can only be done by a vote to approve the resolution by the board of directors and shareholders.
Animal Gear Company makes two pet carriers, the Ccat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Information for the two products for the month of April is given in the following tables:
Input prices
Direct materials
Plastic $5 per pound
Metal $4 per pound
Direct Manufacturing labor $10 per direct manufactufing labor-hour
Input Quantities per Unit of Output
Cat-allac Dod-eriffic
Direct materials
Plastic 4 pounds 6 pounds
Metal 0.5 pounds 1 pound
Direct manufacturing labor-hours 3 hours 5 hours
Machine-hours (MH) 11 MH 19MH
Inventory Information, Direct Materials
Plastic Mmetal
Beginning inventory 290 pounds 70 pounds
Target ending inventory 410 pounds 65 pounds
Cost of beginning inventory $1,102 $217
Animal Gear accounts for direct materials using a FIFO cost flow assumption
Sales and Inventory Information, Finished Goods
Cat-allac Dog-eriffic
Expected sales in units 530 225
Selling price $205 $310
Target ending inventory in units 30 10
Beginning inventory in units 10 25
Beginning inventory in dollards $1,000 $4,650
Animal Gear uses a FIFO cost flow assumption for finished goods inventory.
Animal Ggear uses an activity-based costing system and classifies overhead into three activity pools; Setup, Processing, and Inspection. Activity rates for these activities are $105 per setup-hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows
Cost-Driver Iinformation
Cat-allac Dog-eriffic
Number of units per batch 25 9
Setup time per batch 1.50 hours 1.75 hours
Inspection time per batch 0.5 hour 0.7 hour
Nonmanufacturing fixed costs for March equal $32,000, half of which are salaries. Salaries are expected to increase 5% in April. The only variabe nonmanufacturing cost is sales commission, equal to 1% of sales revenue.
Prepare the following for April (SHOW ALL YOUR WORK):
(1) Revenues budget
(2) Production budget in units
Based on the computation, the revenue budget for Catallcac will be $108650 and that of dogeriffic will be $69750.
The budget for Catallcac was calculated as:
= Expected sales × Selling price
= 530 × $205
= $108650
The budget for Dogeriffic was calculated as:
= Expected sales × Selling price
= 225 × $310
= $69750
Total budget revenue = $69750 + $108650 = $178400.
Also, it should be noted that the production budget in units for Catallc is 550 while that of Dogeriffic is 210.
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1. The revenues budget is $178,400.
2. The Production budget in units are:
Cat-allac 550Dog-eriffic 2101. Revenues budget:
Budgeted unit sales Per units price Total revenues
Cat-allac 530 $205 $108,650
Dog-eriffic 225 $310 $69,750
Total $178,400
2. Production budget:
Cat-allac Dog-eriffic
Budgeted unit sales 530 225
Add Ending inventory of finished goods 30 10
Less Beginning inventory of finished goods (10) (25)
Units to be produced 550 210
Inconclusion the revenues budget is $178,400 and the Production budget in units are: Cat-allac 550; Dog-eriffic 210.
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U.S. Products operates two divisions with the following sales and expense information for the month of July: East Division: Sales $240,000; Contribution margin ratio 35%, Direct fixed expenses $48,000. West Division: Sales $160,000; Contribution margin ratio 50%, Direct fixed expenses $32,000. U.S. Products' total fixed expenses during July was $200,000. The East Division’s segment margin for July is:a. $36.000b.$40.000c.$80.000d.$84.000
Answer:
Explanation:
East division segment margin = Contribution margin - Direct fixed expense
Contribution margin = $240,000*35% = $84,000
Direct fixed expenses = $48,000
So segment margin is 84,000 - 48000 = $36000
Answer is option A
To calculate the East Division’s segment margin for July, the total contribution margin for the East Division needs to be calculated. The segment margin is then calculated by subtracting the total fixed expenses from the total contribution margin. The East Division’s segment margin for July is $84,000.
Explanation:To calculate the East Division’s segment margin for July, we first need to calculate the total contribution margin for the East Division. The contribution margin is calculated by subtracting the direct fixed expenses from the sales revenue, and then multiplying it by the contribution margin ratio. For the East Division, the total contribution margin would be ($240,000 - $48,000) * 35% = $84,000.
The segment margin is then calculated by subtracting the total fixed expenses from the total contribution margin. For U.S. Products, the total fixed expenses during July was $200,000. Therefore, the East Division’s segment margin for July would be $84,000 - $200,000 = $-116,000.
Since the segment margin is negative, it indicates that the East Division has a loss for the month of July. Therefore, the correct answer is: d. $84,000.
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, are as follows: Date Transaction Number of Units Per Unit Total Jan. 1 Inventory 7,500 $75.00 $562,500 10 Purchase 22,500 85.00 1,912,500 28 Sale 11,250 150.00 1,687,500 30 Sale 3,750 150.00 562,500 Feb. 5 Sale 1,500 150.00 225,000 10 Purchase 54,000 87.50 4,725,000 16 Sale 27,000 160.00 4,320,000 28 Sale 25,500 160.00 4,080,000 Mar. 5 Purchase 45,000 89.50 4,027,500 14 Sale 30,000 160.00 4,800,000 25 Purchase 7,500 90.00 675,000 30 Sale 26,250 160.00 4,200,000 Instructions 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3 , using the first-in, first-out method. 2. Determine the total sales and the total cost of merchandise sold for the period. Journalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles. 3. Determine the gross profit from sales for the period. 4. Determine the ending inventory cost as of March 31. 5. Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower
To record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record using the FIFO method, track units and cost of each transaction. Determine total sales and cost of merchandise sold. Calculate gross profit from sales. Determine ending inventory cost as of March 31. LIFO method would expect lower inventory.
Explanation:To record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record using the first-in, first-out (FIFO) method, we need to track the units and cost of each transaction. Here is an example of the perpetual inventory record:
DateTransactionNumber of UnitsPer UnitTotalJan. 1Inventory7,500$75.00$562,50010Purchase22,500$85.00$1,912,50028Sale11,250$150.00$1,687,50030Sale3,750$150.00$562,500Feb. 5Sale1,500$150.00$225,00010Purchase54,000$87.50$4,725,00016Sale27,000$160.00$4,320,00028Sale25,500$160.00$4,080,000Mar. 5Purchase45,000$89.50$4,027,50014Sale30,000$160.00$4,800,00025Purchase7,500$90.00$675,00030Sale26,250$160.00$4,200,000
To determine the total sales and the total cost of merchandise sold for the period, we can calculate the sum of the sales and multiply it by the corresponding costs:
Total Sales = $1,687,500 (Jan. 28 Sale) + $562,500 (Jan. 30 Sale) + $225,000 (Feb. 5 Sale) + $4,320,000 (Feb. 16 Sale) + $4,080,000 (Feb. 28 Sale) + $4,800,000 (Mar. 14 Sale) + $4,200,000 (Mar. 30 Sale) = $19,884,000
Total Cost of Merchandise Sold = 11,250 units (Jan. 28 Sale) x $75.00 per unit (Jan. 1 Inventory cost) + 3,750 units (Jan. 30 Sale) x $75.00 per unit (Jan. 1 Inventory cost) + 1,500 units (Feb. 5 Sale) x $75.00 per unit (Jan. 1 Inventory cost) + 27,000 units (Feb. 16 Sale) x $85.00 per unit (Jan. 10 Purchase cost) + 25,500 units (Feb. 28 Sale) x $85.00 per unit (Jan. 10 Purchase cost) + 30,000 units (Mar. 14 Sale) x $89.50 per unit (Mar. 5 Purchase cost) + 26,250 units (Mar. 30 Sale) x $89.50 per unit (Mar. 5 Purchase cost) = $14,797,500
The gross profit from sales for the period can be calculated by subtracting the total cost of merchandise sold from the total sales:
Gross Profit = Total Sales - Total Cost of Merchandise Sold = $19,884,000 - $14,797,500 = $5,086,500
To determine the ending inventory cost as of March 31, we can calculate the remaining units multiplied by the corresponding costs:
Ending Inventory Cost = 45,000 units (Mar. 5 Purchase) x $89.50 per unit (Mar. 5 Purchase cost) + 7,500 units (Mar. 25 Purchase) x $90.00 per unit (Mar. 25 Purchase cost) = $4,027,500 + $675,000 = $4,702,500
Based on the data provided, using the last-in, first-out (LIFO) method, we would expect the inventory to be lower compared to using the FIFO method. This is because LIFO assumes that the most recently purchased inventory is sold first, which would result in higher costs being allocated to the cost of merchandise sold, leaving lower-cost inventory on hand.
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To record the inventory, purchases, and cost of merchandise sold using the FIFO method, follow these steps: start with the beginning inventory, record purchases, and calculate the cost of goods sold for each sale. The total sales for the period would be $12,152,500, and the total cost of merchandise sold would be $11,625,000. The ending inventory cost as of March 31 would be $562,500. Using the LIFO method, the inventory value is expected to be lower.
Explanation:To record the inventory, purchases, and cost of merchandise sold using the first-in, first-out (FIFO) method, we need to follow these steps:
Start with the beginning inventory of 7,500 units at $75.00 per unit.Record the purchases and their corresponding costs.For each sale, calculate the cost of goods sold using the earliest available units and their costs.Based on the given information, the total sales for the period would be $12,152,500, and the total cost of merchandise sold would be $11,625,000. The gross profit from sales for the period would be $527,500.
The ending inventory cost as of March 31 can be calculated by subtracting the cost of merchandise sold from the total cost of inventory available. In this case, the ending inventory cost would be $562,500.
For the last-in, first-out (LIFO) method, the inventory value would be expected to be lower because it assumes that the most recent purchases are the first ones sold.
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Solstice Company, which uses the direct write-off method, determines on October 1 that it cannot collect $50,000 of its accounts receivable from its customer P Moore. On October 30, P. Moore unexpectedly paid his account in full to Solstice company. Record Solstice's entries to reflect recovery of this bad debt
Answer:
The entries to record the recovery are:
Dr Accounts receivable $50000
Cr Bad debt expense account $50000
Being reversal of bad debt written off now recovered
Dr Cash $50000
Cr Accounts receivable $50000
Being receipt of cash from customer
Explanation:
In recording the bad recovery of $50000,the entries posted in respect of the bad debt written must first of all be reversed,thereafter, the $50000 receipt of cash is recorded.
The reversal entries would look like this:
Dr Accounts receivable $50000
Cr Bad debt expense account $50000
Being reversal of bad debt written off now recovered
In addition, the receipt of cash is then recorded as follows:
Dr Cash $50000
Cr Accounts receivable $50000
Being receipt of cash from customer
The impact of these entries on the accounts receivable overall is nil
Also, the impact on the income statement is also nil as an earlier expense of $50000 now being reversed by an income of the same amount.
If you have an adjustable rate mortgage with an initial rate of 4 percent, an annual interest rate cap of 1 percentage point, and a lifetime cap of 5 percentage points, what is the maximum annual interest rate you could end up paying on the ARM?
Given Information:
Lifetime cap = 5 %
Initial interest rate = 4 %
Periodic adjustment rate = 1%
Required Information:
Maximum annual interest rate = ?
Answer:
Maximum annual interest rate = 9%
Explanation:
In adjustable rate mortgage scheme, lifetime cap is the maximum limit that is allowed after the initial the interest rate. The periodic adjustment rate is 1% and it is the maximum adjustment allowed in one year.
Maximum annual interest rate = Initial interest rate + Lifetime Cap
Maximum annual interest rate = 4% + 5%
Maximum annual interest rate = 9%
Therefore, maximum annual interest rate you could end up paying on the ARM is 9%
Nelson Manufacturing has two processing departments, Department I and Department II. The raw materials processed at Department I are sent to Department II for further processing. During June, direct materials worth $40,000 purchased on account were assigned to Department I. The journal entry to record direct materials used in production is ________.
Answer:
The journal entry to record the direct material used in production is given below:
Dr Work-In Process Inventory $40000
Cr Raw Materials Inventory $40000
Explanation:
The work in process inventory is debited since it is the receiving account ,while raw material inventory is credited as it is the giving account.
The work in process depicts raw materials currently being worked upon at the production, from which completed goods are then transferred to finished goods inventory.
The raw materials inventory account is the account where raw materials received from vendors are first of all recorded before the need to issue to production process.
When such materials are received in the warehouse , the raw materials inventory account is debited while the supplier account is appropriately credited to show the amount of indebtedness.
Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.74 direct labor-hours. The direct labor rate is $10.40 per direct labor-hour. The production budget calls for producing 7,200 units in April and 6,800 units in May. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months
The total combined direct labor cost for Pooler Corporation for the months of April and May is $115,584.
To calculate the total combined direct labor cost for April and May, we must consider the direct labor hours needed for production and the guaranteed minimum hours that the workers will be paid for.
Calculations for April
Direct labor hours required for production:
= 7,200 units * 0.74 hours/unit
= 5,328 hours
The guaranteed minimum hours paid:
= 5,480 hours (since this is higher than the hours required for production, this is the number of hours that will be paid for)
Direct labor cost for April:
= 5,480 hours * $10.40/hour
= $57,792
Calculations for May
Direct labor hours required for production:
= 6,800 units * 0.74 hours/unit
= 5,032 hours
The guaranteed minimum hours paid:
= 5,480 hours (since this is higher than the hours required for production, this is the number of hours that will be paid for)
Direct labor cost for May:
= 5,480 hours * $10.40/hour
= $57,792
Total Direct Labor Cost
Total combined direct labor cost for April and May:
= $57,792 (April) + $57,792 (May)
= $115,584
On January 1, Year 1, Missouri Co. purchased a truck that cost $35,000. The truck had an expected useful life of 10 years and a $3,000 salvage value. The amount of depreciation expense recognized in Year 2 assuming that Missouri uses the double declining-balance method is_____________.
a. $5,120.
b. $5,600.
c. $3,500.
d. $7,000.
Answer:
B. $5600
Explanation:
Purchase price = $35,000
Expected life cycle= 10 years
Salvage value= $3000
Depreciation expense at the year 2= ?
Solution:
Using a straight line method.
Depreciation= Purchase price/expected useful life( straight line method)
Depreciation= 35,0000/10
=$3500 which is equivalent to 10% of the original price.
Using double declining-balance method, the value will double to
Depreciation expense in Year 1 = (20% of $35000) $7000
Depreciation expense in Year 2=
(20% of $28,000) $5600
Using the double declining balance method, the Year 2 depreciation expense for the truck purchased by Missouri Co. is $5,600, calculated by applying a rate of 20% to the book value at the start of Year 2.
Explanation:In the double declining balance method of depreciation, the book value of the asset is multiplied by double the rate of straight-line depreciation, which in this case is 20% as the life of the truck is 10 years (1/10 = 10% x 2 = 20%). However, in Year 1, Missouri Co. would have already recognized an expense based on this method. Therefore, the book value at the beginning of Year 2 is the original cost of the truck ($35,000) minus the Year 1 depreciation. Let's assume that the Year 1 depreciation was $7,000 (20% of $35,000), so the starting book value in Year 2 will be $28,000 ($35,000-$7,000). Applying the 20% rate to this value, the depreciation expense recognized in Year 2 would be $5,600 ($28,000 * 20%). So, the correct answer is b. $5,600.
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17-06Coronado Corporation purchased 380 shares of Sherman Inc. common stock for $12,900 (Coronado does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. Assume the stock is nonmarketable.Prepare Coronado’s journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.)
Answer:
See explanation section.
Explanation:
Description/Account
(a) Investments in Sherman Inc. debit $12,900
Cash credit $12,900
As Coronado Corporation purchased shares of Sherman Inc. common stock, it is an investment.
(b) Cash debit $1,235
Dividend Revenue credit $1,235
Calculation: Shares × cash dividend of per share.
380 × $3.25 = $1,235
As Sherman paid a cash dividend of $3.25 per share to its share holder, Coronado Corporation will receive the portion of the dividend.
(c) Fair Value Adjustment debit $0
Unrealized Holding Gain or Loss Income credit $0
Seance the stock is non-marketable, the Fair Value Adjustment is not required. However, for the purpose of future transaction, I have added the journal entry.
According to the question, I Assume a zero balance in the Fair Value Adjustment account.
Elsa joined her new law firm expecting to participate in exciting environmental law cases, and cutting edge research. After one month at the firm she still hasn't been assigned a case and spends most of her time filing standardized appeals for title disputes with insurance companies. In which stage of the socialization process is Elsa?
Full question:
Elsa joined her new law firm expecting to have a part in exciting environmental law cases, and cutting edge research. After one month at the firm she still hasn't been assigned a case and spends most of her time filing standardized appeals for title disputes with insurance companies. In which stage of the socialization process is Elsa?
A) prearrival
B) encounter
C) metamorphosis
D) ritual
E) systemic
Answer:
encounter stage of the socialization process is Elsa
Explanation:
Encounter Stage is the portion of the grades of socialization where a character enters or enrolls in an organization. Encounter is the secondary stage of socialization. People determine how to fit their expectations of equal entities inside the organization.
Because of the encounter stage, and how well a fresh employee fits, it circumscribes the potency, responsibility, and turnover of an employee. This is the type of transition, diversity, and wonder of the newcomer. This can generate a lot of stress for a fresh employee.
Yulan, Inc has beginning Retained Earnings of $35,000, ending Retained Earnings of $39,500, and net income of $21,500. What was the amount of dividends declared during the year?
a. $17,000
b. $13,500
c. $4,500
d. $21,500
Answer:
$17,000
Explanation:
Retained earnings is the sum of all nondistributed profits earned by a company since it begun operations. Retained earnings either increase or decrease as a result of net income or loss and dividend paid to shareholders.
Dividends paid = beginning retained earnings + Net income - ending retained earnings
$35,000 + $21,500 - $39,500 = $17,000
I hope my answer helps you
Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs:Setting up equipment $598,000Other overheard $6,400,000Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information on each product is as follows:Fudge CookiesUnits produced 8,000 445,000Setup hours 10,400 2,600Oven hours 5,000 35,000Required:1. Calculate the activity rate for (a) setting up equipment and (b) other overhead.a. Setting up equipment $_____ per setup hourb. Other overhead $_____ per oven hour2. How much total overhead is assigned to Fudge using ABC?3. What is the unit overhead assigned to Fudge using ABC?4. Now, ignoring the ABC results, calculate the plantwide overhead rate, based on oven hours.5. How much total overhead is assigned to Fudge using the plantwide overhead rate?6a. The difference in the total overhead assigned to Fudge is different under the ABC system and non-ABC system because.6b. What is the difference in total overhead assigned to fudge under the two methods?
Answer:
Explanation:
1. Setting up equipment rate = (598,000/(10,400+2,600))= 46/setup hour
Other overhead rate = (6,400,000/(35,000+5,000)= 160/oven hour
2. Total overhead assigned to Fudge:
Setting up Equipment = 46*10,400 = $478,400
Other overhead = 160*5000 = $800,000
Total = $1,278,400
3. Units produced = 8000
Unit overhead assigned to Fudge = $1,278,400/8000 = $159.8/unit
4. Plantwide overhead rate = (598,000+6,400,000)/40,000 = $174.95/hour
5. Overhead assigned to Fudget = 174.95*5000 = $874,750
6a. The difference in the total overhead assigned to Fudge is different under the ABC system and non-ABC system because under traditinal method oven hours; under ABC setup hours are used as allocation rate.
6b. Difference = 1,278,400 - 874,750 = $403,650
We calculated activity rates for setting up equipment and other overhead, then assigned overhead costs to Fudge using ABC resulting in a total overhead of $1,278,400. Using a plantwide overhead rate, the overhead assigned to Fudge was $874,750. The difference in overhead assigned to Fudge between the two methods is $403,650.
Let's break down the solution step-by-step:
1. Calculate the activity rate
Setting up equipment:
Budgeted cost for setting up equipment = $598,000
Total setup hours = 10,400 (Fudge) + 2,600 (Cookies) = 13,000
Activity rate for setting up equipment = $598,000 / 13,000 = $46 per setup hour
Other overhead:
Budgeted cost for other overhead = $6,400,000
Total oven hours = 5,000 (Fudge) + 35,000 (Cookies) = 40,000
Activity rate for other overhead = $6,400,000 / 40,000 = $160 per oven hour
2. Total overhead assigned to Fudge using ABC
Overhead from setting up equipment for Fudge = 10,400 setup hours * $46 per setup hour = $478,400
Overhead from other overhead for Fudge = 5,000 oven hours * $160 per oven hour = $800,000
Total overhead assigned to Fudge = $478,400 + $800,000 = $1,278,400
3. Unit overhead assigned to Fudge using ABC
Total overhead assigned to Fudge / Units produced = $1,278,400 / 8,000
Unit overhead = $159.80 per unit
4. Plantwide overhead rate based on oven hours
Total budgeted overhead = $598,000 + $6,400,000 = $6,998,000
Total oven hours = 40,000
Plantwide overhead rate = $6,998,000 / 40,000 = $174.95 per oven hour
5. Total overhead assigned to Fudge using the plantwide overhead rate
Oven hours for Fudge = 5,000
Total overhead assigned to Fudge = 5,000 oven hours * $174.95 per oven hour = $874,750
6. Analysis of the differences between ABC and non-ABC systems
6a. The difference occurs because ABC assigns costs more precisely based on actual activities, while a plantwide rate spreads costs more uniformly.
6b. The difference in total overhead assigned to Fudge under the two methods is $1,278,400 (ABC) - $874,750 (Plantwide) = $403,650.
Indicate whether each of the following events will increase, decrease, or have no effect on long-run aggregate supply. Event Effect on Long-Run Aggregate Supply Increase Decrease No Effect The United States experiences a wave of immigration. Congress raises the minimum wage to $15 per hour. Intel invents a new and more powerful computer chip. A severe hurricane damages factories along the East
Answer:
Explanation:
a. When the United States experiences a wave of immigration, the labor force increases, therefore there would be an increase in the long-run aggregate supply because there are more people who can produce output.
b. When Congress raises the minimum wage to $10 per hour, the natural rate unemployment decreases, thus, leading to the shifting of the long-run aggregate-supply curve to the left.
c. When Intel invents a new and more powerful computer chip, productivity increases, therefore, there would be an increase in the long-run aggregate because more output can be produced with the same inputs.
d. When a severe hurricane damages factories along the East Coast, the capital stock is smaller, thus leading to a decline in the long-run aggregate supply.
Sekelow Enterprises is a debt collection agency. It uses postcards to contact consumer debtors it is attempting to collect from for its clients. The name "Sekelow Enterprises" and the company address appear on the postcards used along with: "VERY IMPORTANT: PLEASE CONTACT US ABOUT YOUR DILLARD’S DEBT."
Is it legal?
Answer:
The correct answer is: No, it is not legal.
Explanation:
The Fair Debt Collection Practices Act (FDCPA) is a federal law that prohibits debt collectors from using abusive, unreasonable, or misleading money-recovery methods. That is meant to protect debtors from harassment or intimidation.
Collectors cannot present themselves as law enforcement or government officials, they cannot call people at work or multiple times at home or during out hours, they cannot pass off papers as legal documents when they are not, they cannot arrest you, or lie in any way.
Thus, Sekelow has violated the FDCPA by sending debtors postcards requesting contact from their end.