Answer:
Annual Yield = 34.08%
Explanation:
A treasury is a short-term financial instrument issued by a government with a maturity date of 365 days or less. It is issued for a value less than the its face value., therefore it is a discounted instrument.The face value is the amount that the investor will receive at the maturity of the bill.
To calculate the the effective annual yield of a bond; follow the steps below:
Step 1: Calculate the return earned for the investment period. This called the yield for the investment period. Note that the investment may be for less than 365 days depending on the number of days left to maturity when it was purchased.
(Face Value - Price)/Price × 100
= ((100-90)/90)× 100= 11.%
This helps to ascertained the return earned as a percentage of the amount invested.
Step 2: Calculate the annual effective rate. This is required to determine the equivalent return (yield) per annum should the investment be made for one year.
Annualized Yield= (Yield/Time period to maturity) × 365
= (11.11%/119) × 365
= 34.08%
Many different project life cycle models are used for different types of projects, such as information systems, improvement, research and development, and construction. a. True b. False
Answer:
The correct answer is letter "A": True.
Explanation:
Project life-cycle models are guidelines that companies elaborate to establish the set of actions they will take to conduct their operations from the settlement of the firm, research, production, maturity, and eventual dissolution. Different types of life-cycle models adjust to the industry of the company. Among them, we can identify the linear, incremental, iterative, adaptive, and extreme model.
Assume the Macro Islands can produce 25 fishing boats or 150 jars of guava jelly in one hour. The Micro Islands can produce 30 fishing boats or 300 jars of guava jelly in the same time period. The opportunity cost of producing 1 fishing boat in the Micro Islands is
Answer:
10 jars of guava jelly.
Explanation:
The value or benefit that was forgone or given up when a choice is made between two alternatives is what we referred to as opportunity cost. In economics, it is called alternative forgone or real cost.
The formula for opportunity cost is given below
Opportunity cost = Value of alternative forgone/Value of alternative choosing
Value of alternative forgone = 300 jars of guava jelly
Value of alternative choosing = 30 fishing boats
Opportunity cost = 300/30
Opportunity cost = 10 jars of guava jelly.
Therefore the opportunity cost of producing 1 fishing boat in the Micro Islands is 10 jars of guava jelly.
A review of the accounting records of Baird Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the company's financial statements are prepared in accordance with GAAP.
Salary of the company president—$75,000.
Salary of the vice president of manufacturing—$50,000.
Salary of the chief financial officer—$42,000.
Salary of the vice president of marketing—$40,000.
Salaries of middle managers (department heads, production supervisors) in manufacturing plant—$147,000.
Wages of production workers—$703,500.
Salaries of administrative secretaries—$60,000.
Salaries of engineers and other personnel responsible for maintaining production equipment—$133,500.
Commissions paid to sales staff—$146,000.
Required
What amount of payroll cost would be classified as SG&A expense?
Assuming that Baird made 5,000 units of product and sold 4,000 of them during the month of March, determine the amount of payroll cost that would be included in cost of goods sold.
Answer:
$363,000 and $827,200
Explanation:
The computation of the payroll cost classified as a SG&A expense is shown below:
= Salary of the company president + Salary of the chief financial officer + Salaries of administrative secretaries + Commissions paid to sales staff + Salary of the vice president of marketing
= $75,000 + $42,000 + $60,000 + $146,000 + $40,000
= $363,000
The amount of payroll cost that would be included in cost of goods sold would be
= Wages of production workers + Salaries of middle managers + Salary of the vice president of manufacturing + Salaries of engineers and other personnel responsible for maintaining production equipment
= $703,500 + $147,000 + $50,000 + $133,500
= $1,034,000
For 4000 units it would be
= $1,034,000 × 4,000 units ÷ 5,000 units
= $827,200
(Evaluating liquidity) The Tabor Sales Company had a gross profit margin (gross profits divided by ÷sales) of 30.4 percent and sales of $9.2 million last year. Seventy-five percent of thefirm's sales are on credit and the remainder are cash sales.Tabor's current assets equal $2.1 million, its current liabilities equal $319,000, and it has $99,000 in cash plus marketable securities.
a. If Tabor's accounts receivable are $562,500, what is its average collection period?
b. If Tabor reduces its average collection period to 19 days, what will be its new level of accounts receivable?
c. Tabor's inventory turnover ratio is 9.5 times. What is the level of Tabor's inventories?
Answer:
Explanation:
Credit sales = 75% * $9.2 million =$6.9m
(a) Average collection period = (Accounts receivables/Credit sales) * 365 days
= (562,500/6,900,000) * 365
=29.76 days
≅ 30 days
(b) New level of accounts receivables after reducing collection period to 19 days
= (19/365 ) * 6,900,000
= $359,178
(c) Gross profit = 30.4% * $9.2 million
= $2,796,800
Cost of Sales = $ 9,200,000- $2,796,800
= $6,403,200
Inventory Turnover ratio = Cost of goods sold/Average stock
Hence, Inventories level (i.e Average stock) = 6,403,200/9.5
=$674,021
Draw an entity-relationship diagram that describes the following business environment.
Orlando Junior Baseball wants to maintain information about its teams, their coaches, players, and bats. The information about players is historic. For each team, the league wants to keep track of all of the players who have ever played on the team, including the current players. For each player, it wants to know about the player's name, age, and every team the player ever played for. Currently and historically, each team has and has had many players. To be of interest to the league, a player must have played on at least one and possibly many teams during his career. The league wants to keep track of each team's team number, which is unique, its name, the city in which it is based, and the name of its manager. Coaches have a name (which is o number. Coaches have units of wor experience and the number of years of that type of experienc team. A team has at least one and usually several coaches. nly assumed to be unique within its team) and a telephone rk experience, which are described by the type of e. A coach works for only one
Answer:
See the explanation
Explanation:
The Entity-Relationship is a diagramming technique used for data modeling.
A relationship is the way in which different entities are associated with each other.
The entity-relationship diagram that describes the business environment is shown in the attached image.
Hope this helps!
Randy Guerrero wants to buy a home in Atherton, California, where the price of an average house is over $1 million. He is saving his money by not going on vacations, keeping his old car, and minimizing all other expenses. As a result, he has $300,000 in the bank, and he will soon have a healthy 40% down payment for his new home.
a. self management
b. relationship management
c. social awareness
d. self awareness
Answer:
a. self management
Explanation:
Self management -
It is the method by which the human being , manage his or her work , task , goal and expenses , in order to complete the activity on time , is referred to as self management .
This process enables to accomplish the goal with proper strategy and plan .
Hence , from the question,
Randy collects amount for his new home by saving from his income , showing the method of self management.
Randy Guerrero is demonstrating self-management by taking actions such as not going on vacations, keeping his old car, and minimizing all other expenses to save money for a down payment on a house.
Explanation:The scenario presented appears to be concerned with self-management. Self-management is all about being responsible for your behavior and well-being. Here, Randy Guerrero is practicing self-management by saving money from various aspects of his life to afford a down payment on a home in Atherton, California. He's making sacrifices, such as not going on vacations, keeping his old car, and minimizing all other expenses to maximize his savings. These decisions demonstrate prudent self-control and goal-setting, key characteristics of effective self-management.
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The supply in thousands of items, for custom phone cases can be modeled by the equation p= 75+8x , while demand can be while the demand can be modeled by p=190-15x, where p is in dollars. Find the equilibrium price and quantity, the intersection of the supply and demand curves.
Answer:
At equilibrium, the market demand of custom phone cases will be equal to the market supply of custom phone cases.
Market demand function -
p = 190 - 15x, where p is the price and x is the quantity of goods
Market supply function -
p = 75 + 8x
Thus, at equilibrium the market demand function will be equal to market supply function.
Hence,
190 - 15x = 75 + 8x
23x = 190-75
23x = 115
x = 5 units
Substituting the value of x in market supply function, we get -
p = 75 + 8 * 5
= 75 + 40 = $ 115
Hence, equilibrium quantity and price are 5 units and $ 115 respectively.
Thus, at ( 5 , 115 ) the market demand and supply curves of Custom phone cases will intersect each other.
Explanation:
Refer to the answer.
Suppose that one euro costs $0.80 on January 1. Suppose that on March 1, one euro costs $0.75. What has happened to the value of the dollar (in terms of euros) over this period?
Answer:
The value of the dollar increased over the period
Explanation:
In March, the euro could buy a less amount of dollar compared to January. We can say the dollar became more expensive compared to the euro or the value of the dollar increased.
I hope my answer helps you
Employees should always be notified in advance that a penetration test is going to be performed. T/F
Answer:
The statement is: False.
Explanation:
A penetration test consists of a series of test attacks against defense mechanisms existing in an environment that is being analyzed. These tests include the analysis of physical and digital devices to human factors using Social Engineering for that purpose.
Thus, these tests must be carried out without prior notice to employees so the evaluators can simulate what is the real defense and reaction the organization has in front of a threat.
Under the uniform capitalization rules applicable to taxpayers with property acquired for resale, which of the following costs should be capitalized with respect to inventory if no exceptions have been met? Repackaging costsOff-site storage costsa. Yes Yes b. Yes No c. No Yes d. No No
Answer:
The correct answer is A
Explanation:
As per the UNICAP (stands for Uniform Capitalization) rules, the person have to capitalize the cost for creating the assets, which means or defines as to capitalize the raw materials, labor cost and other indirect as well as direct costs that is attributable to the production of the assets.
So, the costs which is to be capitalized in respect to inventory are the repacking cost, which is involved in the indirect supplies and other materials and the off site storage cost is involves in the rental of the facilities and equipment.
Kathy Brooks is a franchisee who wishes to donate her old HRB workstations and server to a local charity for a fundraising auction.
What should Kathy do to make sure she is in compliance with HR Block Information Security Compliance?
A) Kathy can donate the equipment as she wishes since she paid for them.
B) Kathy should contact Incident Management to get further information about the Hardware Disposal policy before proceeding.
C) Procedures for removing and eliminating Confidential Information from hardware are available by contacting the Technical Service Center at 800-767-3346
D) Both B and C are correct
E) None of the above
answer: B) Kathy should contact Incident Management to get further information about the Hardware Disposal policy before proceeding.
Explanation:
State whether the following actions will increase or decrease GDP: a. An individual sells her house on her own. b. An individual sells his house through a broker. c. Government increases Social Security payments. d. Stock prices rise by 20 percent.
Answer:
a. An individual sells her house on her own.
GDP is not affected.
b. An individual sells his house through a broker.
GDP is not affected.
c. Government increases Social Security payments.
GDP is not affected.
d. Stock prices rise by 20 percent.
GDP will increase.
Explanation:
Selling a house by an individual does not affect the Gross Domestic Product of a Country.
Selling a house by a broker will also not affect the Gross Domestic Product of a Country.
When a Government increases the social security payments, this result in transfer of money from government to social security account but it does not generate any goods are services in the country.
When the stock prices increases in the country, there is more likely that the individuals will invest in the stocks. So investments will increase and thus GDP will rise.
Selling a house through a broker and increasing Social Security payments will increase GDP, while selling a house on one's own and a rise in stock prices may not directly impact GDP.
Explanation:To determine whether the actions will increase or decrease GDP, we need to understand how each action affects the components of GDP.
Selling a house on one's own does not directly affect GDP as it is considered a transfer of assets. So, it will not increase or decrease GDP.Selling a house through a broker will count as a transaction in the real estate market, contributing to GDP. Therefore, it will increase GDP.When the government increases Social Security payments, it injects more money into the economy, increasing consumption, and potentially investment. This increase in government spending will increase GDP.When stock prices rise, individuals holding stocks experience an increase in wealth. This can lead to increased consumer spending, which will increase GDP.When applying simulation to a business problem, which of the following would commonly be an uncertain variable cell?
a. The total profit.
b. The holding cost per unit.
c. The demand.
d. All of the above.
e. None of the above.
The Demand would commonly be an uncertain variable cell
Explanation:
Consumer demand is a catalyst for retail sales. In turn, production and delivery to distributors must continue for suppliers and distributors. The lack of an adequate inventory to satisfy consumer demand is an important business issue with several symptoms.
The first major problem with inadequate inventory to meet demand is revenue failure.
In the long run, the depletion of consumers is a major concern not to meet consumer demand.
When you have unhappy customers on the street you have poor word of mouth ads. Although the issues in the company carry more weight, failure to meet consumer demand has several other economic effects.
For a client, realising a commodity you want is not available is disappointing.
Which of the following is NOT a part of checking a diversified company's business units for cross-business competitive advantage potential?
Answer:
Ascertaining the extent to which sister business units are making maximum use of the parent company's competitive advantages
Explanation:
There are certain ways of knowing a diversified company’s business unit for cross-business competitive advantage potential.
These can be done well, by looking at the sister business units to know how the performance from the value chain activities could present opportunities for the company to reduce costs and remain very competitive.
They sister company could as well have match-ups that can be looked at to know if there are opportunities to transfer technological skills and acumen from one of the business units (where the skills are dominantly found from at any time) to the other business unit( where such skills and acumen are rightly needed at that time).
Blue Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $11,000,000 on January 1, 2020. Blue expected to complete the building by December 31, 2020. Blue has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $4,400,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 3,080,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 2,200,000
Final answer:
The question involves calculating the capitalization of interest costs during construction of an office and warehouse building for Blue Furniture Company's own use, considering the construction loan, short-term loan, and long-term loan interest rates.
Explanation:
The question relates to the capitalization of interest costs during the construction period of an asset for a company's own use. According to accounting standards, companies are required to capitalize interest as part of the cost of a qualifying asset that is constructed for the company's own use. The interest to be capitalized is the lesser of the actual interest cost incurred during the construction period or the avoidable interest, which is the interest cost that could have been avoided if the expenditure for the asset had not been made.
For the Blue Furniture Company's construction project, the calculation would include the interest from the construction loan at 12%, the short-term loan at 10%, and the long-term loan at 11%. The total capitalizable interest will affect the overall cost of the office and warehouse building being constructed.
The net income as shown on the common-size income statement of Omega industries for the past three years increased from 3% to 6%. This indicates that the firm is increasing its _____ProfitabilityThe enterprise value multiplier allows for comparing the value of firms with different ______ structures.CapitalIn a financial plan using the percentage of sales approach, why is it assumed that some assets increase with sales?Additional working capital and fixed assets are needed to support growthWhich of the following statements is most likely correct for afirm with days’ sales in receivables for 30 days
Answer:
See explanation section
Explanation:
Req. A & B
If there is an increase in the net income over the year, the company is in profitability condition. As Omega industries are getting increased net income, it suggests their profitability.
EVM or enterprise value multiplier allows a company to compare the capital structure that the company uses. It is commonly used for valuing a business.
Req. C, D & E
In a financial plan, if the sales increase, it should be because of increasing working capital and fixed assets. We know, additional assets can generate more revenues.
A firm can collect approximately 8% of its annual sales at any given time. It can be found through the following way-
since the days' sales in receivables for 30 days in a year, the percentage of annual sales = (30 ÷ 365) × 100 = 8.22% or 8%
Which of the followin is NOT a reason why the required return on a bond may differ form its par value?
A. The required rate of return is less than the coupon value, so the bond sells at a premium.
B. The required rate of return is exceeds the coupon value, so the bond sells below par value.
C. The required rate of return exceeds the coupon value, so the bonds sells at a premium
D. The required rate of return is less than the coupon value, so the bond sells at above par value
Answer:
C. The required rate of return exceeds the coupon value, so the bonds sells at a premium
Explanation:
The required return on a bond = Yield to maturity (Current Market interest rate) * Bond Par value.
Coupon return = Coupon rate of bond * Par value of bond.
There are two types of returns on bonds-
(1) Required rate of return (Yield to maturity related)
(2) Return from capital gain
If the Yield to maturity (YTM) related return is higher than the coupon return, then return from capital gain will be negative i.e. there will be a capital loss, so the bond will trade below par value (at discount).
If the Yield to maturity (YTM) related return is lower than the coupon return, then return from capital gain will be positive i.e. there will be a capital gain, so the bond will trade above par value (at premium).
Hence, the required return rate (YTM related) and return from capital gain, both cancel out each other in a bond.
So, following the concept only option (c) - the required rate of return exceeds the coupon value, so the bonds sells at a premium is not a reason of why the required return on a bond may differ form its par value.
It is appropriate to use the supply-and-demand model in which of the following markets?
A) beer market
B) car market
C) wheat market
D) market for breakfast cereal
Answer:
The correct answers are letters "A", "B", "C", and "D": beer market; car market; wheat market; market for breakfast cereal.
Explanation:
The supply-and-demand analysis is one of the most basic principles in economics. In simple terms, it states that when an item is scarce, but many people want it, the price of that item will rise. The theory can be applied to markets of goods and services, labor, capital, and all the factors of production. It could be useful to study the fluctuations of a firm or the overall economy.
Which of the following is the best problem statement for this situation? a. You need to replace the QueVision system equipment for your store in order to achieve an acceptable average checkout time. b. You need to replace the store’s QueVision system and retrain your baggers and cashiers to provide faster checkout service. c. The QueVision system in your store has determined average checkout time is excessive, resulting in poor customer service and upsetting baggers and cashiers, which could lead to a loss of customers and employees. d. Your store needs to cut its average checkout time by at least five and one-half minutes.
Answer:
'The QueVision system in your store has determined average checkout time is excessive, resulting in poor customer service and upsetting baggers and cashiers, which could lead to a loss of customers and employees' is the best problem statement for the given situation.
Explanation:
The problem statement should not just limit itself to enumerating the problem that is existent in the operation or the system but should also try to exhibit the intensity of the problem and the probable loss being caused by it. The given problem statement is not only elaborating the problem, but is also giving out information on how much would it cost to the organization of the problem is not taken seriously.Final answer:
The best problem statement is option c, which describes the consequences of excessive checkout times on customer service and employee satisfaction, potentially leading to the loss of both customers and employees.
Explanation:
The most effective problem statement for the situation described is the QueVision system in your store has determined average checkout time is excessive, resulting in poor customer service and upsetting baggers and cashiers, which could lead to a loss of customers and employees.
This option comprehensively details not only the issue with the QueVision system but also the consequences that stem from the issue such as impact on customer service and employee satisfaction. It also hints at the potential business implications including the loss of customers and staff which could affect the store's bottom line.
Sandra and Debbie have a shared policy. Information on the Form 1095-A must be allocated between their two tax returns. Both of their returns are out of scope.
Answer:
Yes, Sandra can claim Debbie as a qualifying relative on her yearly return as Sandra and Debbie have a shared policy. Information on the Form 1095-A must be allocated between their two tax returns.
Explanation:
When determining the premium tax credit on a tax return, a Shared Policy Allocation should then be reported by each taxpayer on their respective tax returns so that the amounts reported on the Health Insurance Marketplace Statement (Form 1095-A) can be allocated between the individuals on the policy.
A Shared Policy occurs when a qualified health plan has been purchased from the Marketplace or from a state health care exchange and it covers at least one individual on the tax return and at least one individual not on the tax return under several scenarios as the one with Sandra claiming Debbie or viceversa , in their Shared Policy, they, as taxpayers, will need to allocate the three amounts reported on Form 1095-A (enrollment premiums, SLCSP premiums, and/or APTC) between the taxpayer's tax return and the tax return of the other individual(s) who is not on this tax return and is filing their own return. This is known as a Shared Policy Allocation.
Sandra and Debbie have a shared policy. Sandra got the 1095-A Form for she and Debbie´s covereage individuals for the year, therefore, Sandra can claim Debbie as a qualifying relative on her yearly tax return because Debbie lived with Sandra as a member of her household, unless Debbie has had gross income of more than $4,200 during the tax year.
Both Sandra and Debbie can claim the entire amount of the premium tax credit since both of their names are shown on Form 1095-A as covered individuals, but Sandra should reconcile the entire premium tax credit information from her Form 1095-A on her tax return, or Debbie should reconcile the entire premium tax credit information from Sandra's Form 1095-A on her tax return. Sandra and Debbie have a shared policy. Information on the Form 1095-A must be allocated between their two tax returns.
Brooks Landscaping Company performs lawn mowing services for its customers in May. Payments forâ May's services are expected to be received in June. How does the transaction for performing services in May affect the accounting equation of Brooksâ Landscaping?
Answer:
There should not be any affect on accounting equation of Brooksa Landscaping.
Explanation:
To understand this concept we need to look at what actually is accounting equation is. Accounting equation is:
Assets = Liabilities + owners equity
So, if Brooks landscaping performs a service in May, it can recognize its revenue in month of May but instead of balancing it with cash it will be balance against trade debtors ( trade receivables). Therefore, the amount of assets will remain same even when payments are received in the month of June as it will be balanced out by crediting trade debtors and debiting cash. Hence, it can be seen that accounting equation remains unaffected due to this delay in actual payment.
Management at Work Xin and Yoshi are going over plans for an organizational restructuring. They enjoy working together, but they disagree about whether to outsource staff functions such as human resources. Eventually Xin says, "Okay, let’s lay out all of our arguments for and against outsourcing. Then we can look at them to see if some carry more weight than others." Xin and Yoshi are engaged in a conflict, based on . Which of the following outcomes are likely in this situation?
a. Xin and Yoshi will be motivated to solve the problem.
b. The coworkers will challenge current thinking about the problem.
c. The coworkers will experience less job satisfaction.
d. Xin and Yoshi will distrust one another.
The following outcomes are likely in this situation:
a. Xin and Yoshi will be motivated to solve the problem.
b. The coworkers will challenge current thinking about the problem.
Explanation:
The Outsourcing Agreement includes the hiring and transfer of staff and assets from a company to another company for the scheduled or existing activities which are or may be performed internally.
Outsourcing can offer major benefits to your company, but maintaining and managing outsourcing partnerships entails major risks and challenges.
According to the research of the Everest Group, an IT and market procurement consulting and research firm, ISPs began to expand investments in IT distribution centers in the United States in recent years, accounting for over one-third of the new delivery locations (29 out of 76) developed by service providers in 2016.
What is transformational leadership? Give examples of organizational situations that would call for transformation, transactional, and charismatic leadership.
Answer:
In Transformational leadership the leaders works to motivate and engage the followers by directing their behavior toward a shared vision.
Explanation:
An example of Transformational leadership would be when a new Company is formed and employees are motivated to work towards a common long term objective or when an established Company enters into a new Line of Business or launches a new Product.
In Transactional leadership the leader’s focus is on the role of supervision, organization, and collective performance of a group. They are concerned about the status quo and day-to-day progress toward goals. The transactional model is likely to be successful in a crisis situation or in projects that require linear and specific processes. This model is also useful for managing big Portfolios in Banks or Asset management Companies.
In Charismatic leadership the leader works on encouraging particular behaviors in others by way of eloquent communication, persuasion and force of personality. Such leaders motivate their followers to get things done or improve the way certain things are done. An example of Transformational leadership would be when a new Company is planning to expand and Takeover a new Company in the same Line of Business or when and Organization tries to achieve the best in the Industry award. This is the situation when power of speech and communication is required to persuade and motivate the people working in the Organization.
Transformational leadership is a style that inspires and motivates followers to achieve their full potential. Organizational situations that would call for transformation, transactional, and charismatic leadership are when a company is going through major changes, needs to meet specific short-term targets, or is facing a crisis.
Explanation:Transformational leadership is a leadership style that inspires and motivates followers to achieve their full potential and exceed their own expectations. Leaders who adopt this style focus on building relationships, empowering employees, and encouraging innovation.
An organizational situation that would call for transformational leadership is when a company is going through a major change, such as a merger or restructuring. In these situations, transformational leaders can help employees to embrace the change and see it as an opportunity for growth.
On the other hand, transactional leadership is a style that emphasizes a transactional relationship between the leader and followers. It involves setting clear goals, providing rewards for meeting those goals, and applying disciplinary measures for failing to meet them. An example of an organizational situation that would call for transactional leadership is when a company needs to meet specific short-term targets or when strict compliance with rules and regulations is required.
Lastly, charismatic leadership is a style where the leader has a compelling personality and the ability to inspire and motivate others through their charm and charisma. An organizational situation that would call for charismatic leadership is when a company is facing a crisis or needs to rally employees around a challenging goal.
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Sunland Company purchased machinery on January 1, 2020, for $90,400. The machinery is estimated to have a salvage value of $9,040 after a useful life of 8 years.
Compute 2020 depreciation expense using the double-declining-balance method.
Depreciation expense $________
Compute 2020 depreciation expense using the double-declining-balance method, assuming the machinery was purchased on October 1, 2020. (Round answer to 0 decimal places, e.g. 5,125.)
Depreciation expense $________
Answer:
$22,600; $5,650
Explanation:
Double-declining-balance method rate:
= (100% ÷ No. of years of life of assets ) × 2
= (100% ÷ 8) × 2
= 25%
1. 2020 depreciation expense:
= Assets cost × Depreciation rate
= $90,400 × 25%
= $22,600
2. 2020 depreciation expense:
= Assets cost × Depreciation rate
= $90,400 × 25% × 3/12
= $5,650
The 2020 depreciation expense for the Sunland Company's machinery using the double-declining-balance method is $22,600 for a full year and $5,650 if the machinery was purchased on October 1, 2020.
To calculate the 2020 depreciation expense using the double-declining-balance method, you first determine the straight-line depreciation rate, which is 1 divided by the useful life of the asset. In this case, it's 1/8, or 12.5%. The double-declining-balance method is twice the straight-line rate, so 12.5% x 2 equals 25%. Apply this rate to the asset's beginning book value, which is $90,400, to get the first year's depreciation expense, which is $90,400 x 25% = $22,600.
If the machinery was purchased on October 1, 2020, only 3 months of depreciation should be accounted for in 2020. Therefore, the annual depreciation should be prorated for the number of months in use. $22,600 of annual depreciation is prorated for 3 months by dividing by 12 and then multiplying by 3, yielding a depreciation expense of $5,650 for 2020 when purchased on October 1, 2020.
Cost Data for Managerial Purposes
As an analyst at Delta Airlines, you are asked to help the operations staff. Operations has identied a new method of
loading baggage that is expected to result in a 30 percent reduction in labor time but no changes in any other costs. The
current labor cost to load bags is $2 per bag. Other costs are $1 per bag.
Required
a. What differential costs should the operations staff consider for the decision to use the new method next year? What
would be the cost savings per bag using it?
b. Describe how management would use the information in requirement ( a ) and any other appropriate information to
proceed with the contemplated use of the new baggage loading method.
Answer:
Explanation:
First of all, we should understand the problem.
A new method of loading baggage is supposed to reduce labor time by 30%, with other costs unchanged. This means that the cost to load bags will be reduced by 30%, other costs will remain the same 1 dollar per bag.
Differential cost is a cost which changes in response to a given cause of action. In this case, labor labor time is being reduced, Therefore, it is considered as differential cost.
If 30% is deducted from labor time, the labor cost to load bags will be reduced to $2*(1-0.3) = $2 - $0.6 = $1.4
Cost savings per bag would be:
$2 - $1.4 = $0.6 (a)
(b):
Management would use the knowledge of cost savings to decide whether or not to implement the new method.
TCO 1) A problem-solving technique that decomposes a system into its component parts while focusing on the business problem independent of technology is
Answer:
System design
Explanation:
System design - it is referred to as the process in which developing and designing the system are the two main aspects. it is done to meet the requirement of business in a particular period of time. it is done for the systematic working of the system.
it defines the required modules, the procedure to meet project demands.
On December 29, 2020, Patel Products, Inc., sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2019. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation. Complete the necessary journal entry to bring the accumulated depreciation up-to-date.
Answer:
Depreciation refers to the state where the assets of the firm undergo a reduction in the price. The reduction takes place yearly or on the defined time period.
Explanation:
Given information:
Cost of delivery van = $20,000
Accumulated depreciation of equipment = $16,000
Annual depreciation on this equipment = $2,000
Therefore, the journal entry is as follows:
On December 29, 2020
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The accumulated depreciation of the van on December 29, 2020, would be $18,000. This is calculated by adding the annual depreciation of $2,000 to the accumulated depreciation of $16,000 from December 2019. A journal entry reflecting this additional depreciation is made debiting Depreciation Expense and crediting Accumulated Depreciation by $2,000
Explanation:The problem revolves around the concept of depreciation, which is the decrease in the value of an asset over time. In this case, Patel Products, Inc. sold a van that had already depreciated in value. In accounting, we record this depreciation to keep our records up-to-date and accurate.
As of December 31, 2019, the accumulated depreciation for the van was $16,000. However, the van continues to depreciate at a rate of $2,000 per year. So, for the year 2020, we need to add this annual depreciation to the accumulated depreciation. Thus, the equation is as follows: Accumulated Depreciation (December 2019) + Annual Depreciation
$16,000 + $2,000 = $18,000
This means that by the time the van is sold on December 29, 2020, the accumulated depreciation has reached $18,000.
To make a journal entry encoding this, it would look something like this:
Date: December 29, 2020
Debit: Depreciation Expense $2,000
Credit: Accumulated Depreciation $2,000
This journal entry reflects how the asset (the van) has further depreciated in value over the course of 2020.
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An increase in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine that cuts and stacks trees. Does this affect the GDP deflator or CPI for U.S.?
Answer: IT WILL AFFECT THE GDP DEFLATOR
Explanation: GDP DEFLATOR is a term used to describe the total change in price of all goods produced within an Economy,an increase in the price of the Tree wood equipment will only affect the GDP DEFLATOR.
GDP DEFLATOR shows the changes in a country's GDP as price level changes.
CPI ( Consumer price index) is the weighted average price of a basket of consumer goods sold within an Economy such as food,clothing, transportation etc.
It doesn't deal with commercial products like the TREEWOOD EQUIPMENT.
A fast-food restaurant has a drive-through window and during peak lunch times can handle a maximum of 50 cars per hour with one person taking orders, assembling them, and acting as cashier. The average sale per order is $9.00. A proposal has been made to add two workers and divide the tasks among the three. One will take orders, the second will assemble them, and the third will act as cashier. With this system, it is estimated that 70 cars per hour can be serviced.
Use productivity arguments to recommend whether to change the current system.
Answer:
The answer is; I do not recommend the change of current system
Explanation:
The productivity of one person taking orders, assembling them, and acting as cashier is higher than that of 3 people.
The time frame is the same for both systems (1 hour), productivity is illustrated below;
Cars serviced by 1 person in existing system =50/1 = 50
Cars serviced by 1 person in 3 employee system =70/3= 23.33
The system should not be changed.
Final answer:
Adding two workers to divide tasks is proposed to increase a fast-food restaurant's service rate from 50 to 70 cars per hour. Productivity arguments support this change if the additional sales revenue surpasses the labor costs.
Explanation:
At present, the restaurant services 50 cars per hour with a single worker handling all tasks and an average sale of $9.00 per order. A proposal suggests that by adding two additional workers and dividing the tasks among three individuals, the result would be servicing 70 cars per hour. To evaluate this proposal, one must consider the changes in productivity and potential increase in revenue.
When we calculate the output per worker, we find that currently, with one worker, the restaurant handles 50 cars, resulting in $450 of revenue per hour. With the proposed change, three workers would handle 70 cars, generating $630 of revenue per hour. This increase in productivity could justify the additional costs of hiring two more workers. Moreover, similar to how advances in automation have allowed the food service industry to increase productivity, appropriately dividing labor among specialized workers can also contribute to efficiency gains.
Kooky Cookies Corporation purchased the Crazy Cookie Company. Although this was initially an acquisition, the merging of these two businesses was a ____________ merger. Kooky Cookies went on to purchase several baking product companies. Joining forces with some of its suppliers would represent a _____________ merger.
Multiple Choice:A. conglomerate; horizontalB. vertical; horizontalC. horizontal; verticalD. conglomerate; conglomerate
Answer: horizontal; vertical
Explanation:
Horizontal merger is the merger of two companies competing in the same industry offering same kind of good and vertical merger is the merger of two companies involved in producing the same good at different stages of production. Conglomerate merger is the merger between companies that do not offer same product. The merger between Kooky Cookies Corporation and Crazy Cookie Company would be a horizontal merger as both the companies offer the similar product to same kind of customers. When Kooky Cookies purchase baking product companies, it would be a vertical merger as both the companies are involved in the production of cookies at different production levels.
Answer:
Horizontal merger
Vertical merger
Explanation: