Answer:
Explanation:
The journal entry is shown below:
Supplies expense A/c Dr $1,700
To Supplies A/c $1,700
(Being supplies account is adjusted)
The supplies expense is computed below
= Purchase value of supplies - supplies on hand at year end
= $2,100 - $400
= $1,700
For recording, this given transaction we debited the supplies expense account as the remaining balance is transferred to supplies expense and credited the supplies account
You open a bank account, making a deposit of $500 now and deposits of $1,000 every other year. What is the total balance at the end of 10 years from now if your deposits earn 4% interest compounded annually?(This means there is an initial deposit of $500 and then $1,000 deposits skipping one year. That is, at the end of the first year, there is no deposit; at the end of the second year, there is a $1,000 deposit; at the end of the third year there is no deposit; and so on.)
Answer:
$6,625.347
Explanation:
The computation of the total balance at the end of 10 years is shown below:
We know that
Future value = Deposits × (1 + interest rate)^number of years
So, the future value would be
= $500 × (1 +0.04)^10 + $1,000 × (1 +0.04)^8 + $1,000 × (1 +0.04)^6 + $1,000 × (1 +0.04)^4 + $1,000 × (1 +0.04)^2 + $1,000
= $740 + $1,368.569 + $1,265.319 + $1,169.859 + $1,081.60 + $1,000
= $6,625.347
Which statement about Zipcar illustrates how marketing can help to enrich society
Answer:
Zipcar mission statement
Our mission: to make urban living easy and responsible We envisage a future in which car club members outnumber car owners in major cities around the globe. Most of those city residents will live within a five-to-ten-minute walk from a Zipcar self-service.
At a price of $200, a cell phone company manufactures 100000 phones. At a price of $300, the company produces 300000 phones. What is the price elasticity of supply? (Round your answer to two decimal places.)
Answer:
2.5
Explanation:
P1=$200
P2=$300
S1=100000
S2=300000
The percentage change in price is:
[tex]\Delta P =\frac{300-200}{\frac{200+300}{2}}=0.4=40\%[/tex]
The percentage change in supply is:
[tex]\Delta S =\frac{300000-100000}{\frac{100000+300000}{2}}=1=100\%[/tex]
The price elasticity of supply is given by:
[tex]E=\frac{\Delta S}{\Delta P}=\frac{100\%}{40\%}=2.5[/tex]
The price elasticity of supply is 2.5.
The price elasticity of supply for the cell phone company is 4.00, indicating a high degree of responsiveness to changes in price. For every 1% increase in price, the company produces 4% more phones.
Explanation:The price elasticity of supply is a measure of how much the quantity supplied of good changes when its price changes. The formula for price elasticity of supply (PES) is (% change in quantity supplied) / (% change in price). In this case, the initial quantity supplied is 100,000 phones at a price of $200. The new quantity supplied is 300,000 phones at a price of $300. Therefore, the % change in quantity supplied is [(300,000-100,000)/100,000]*100 = 200%. The % change in price is [(300-200)/200]*100 = 50%. So, the price elasticity of supply is 200%/50% = 4.00.
So, for the cell phone company mentioned in the question, its price elasticity of supply is 4.00. This means that for every 1% increase in price, the company produces 4% more phones. This shows a high degree of price elasticity, indicating that the company is very responsive to changes in price.
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Preparing a trial balanceSmithson Floor Coverings reported the following summarized data at December 31, 2018. Accounts appear in no particularorder, and all have normal balances.Service Revenue 8 26.000 Salaries Payable $ 25,000Equipment 36,000 Salaries Expense 1,600Rent Expense 17,000 Cash » 7.000Common Stock 24.000 Accounts Receivable 3.600Accounts Payable 2.200 Interest Payable 6,000Dividends 16,100 Utillties Expense 1.900Prepare the trial balance of Smithson Floor Coverings at December 31, 2018.
Answer:
Smithson Floor Coverings
Trial Balance
As at 31st December 31, 2018
Account Dr ($) Cr($)
Revenue 26,000
Salaries Payable 25,000
Equipment 36,000
Salaries Expense 1,600
Rent Expense 17,000
Cash 7,000
Common Stock 24,000
Accounts Receivable 3,600
Accounts Payable 2,200
Interest Payable 6,000
Dividend 16,100
Utilities Expense 1,900
83,200 83,200
Explanation:
In accounting, liability, Income and equity items have credit balances while assets and expenses have debit balances.
With that background, Start by picking balance relating to income and post them to the credit side of the trial balance, like revenue.
After that, pick balance relating to liability post them to the credit side of the trial balance, like trade payable.
Then pick balance relating to equity item, post them to the credit side of the trial balance, like common stock.
After this, pick items relating to asset and post them to the debit side of the trial balance, like trade receivables. Then, pick items relating to expenses and then post them to the debit side of the trial balance.
At the end, all income, liability and equity item balances are posted to the credit side of the trial balance while assets and expenses item balances are posted to the debit side. And two sides balance.
Remember the purpose of a trial balance is to check the arithmetical accuracy of ledger balances and that was exactly what was done above.
Final answer:
A trial balance for Smithson Floor Coverings on December 31, 2018, lists out all asset accounts with debit balances and liability or equity accounts with credit balances, ensuring that the sum of debits equals the sum of credits.
Explanation:
To prepare the trial balance of Smithson Floor Coverings on December 31, 2018, you must list all the accounts and their balances in the appropriate debit or credit column. Since all accounts have normal balances, Service Revenue, Common Stock, Accounts Payable, Salaries Payable, and Interest Payable will have credit balances, while the others will have debit balances. Here is the trial balance:
Equipment - $36,000 (Debit)
Cash - $7,000 (Debit)
Accounts Receivable - $3,600 (Debit)
Salaries Expense - $1,600 (Debit)
Rent Expense - $17,000 (Debit)
Utilities Expense - $1,900 (Debit)
Dividends - $16,100 (Debit)
Service Revenue - $26,000 (Credit)
Common Stock - $24,000 (Credit)
Accounts Payable - $2,200 (Credit)
Salaries Payable - $25,000 (Credit)
Interest Payable - $6,000 (Credit)
The total of the debit and credit columns should be equal to ensure the accuracy of the entries, representing the balance sheet's equation where Assets = Liabilities + Equity.
Country Western Clothing Outfitters is considering investing in an inventory tracking system. The system will require $10,300 in software costs and $8,200 in employee training costs. Computer hardware also must be upgraded for the system; the hardware upgrades are expected to cost $12,100. The expected benefits from the inventory tracking system should be $29,000. Do the benefits outweigh the costs, or do the costs outweigh the benefits, and by how much?
Answer Options:
A. Benefits outweigh costs by $10,500. B. Costs outweigh benefits by $1,600. C. Benefits outweigh costs by $1,600. D. Costs outweigh benefits by $10,500.
Answer:
B. Costs outweigh benefits by $1,600
Explanation:
Total costs are comprised by software costs ($10,300), employee training costs ($8,200) and hardware upgrades costs ($12,000).
[tex]C = \$10,300+\$8,200+\$12,000\\C=\$30,500[/tex]
The benefits from the new system are $29,000.
Therefore, costs outweigh benefits by the following amount:
[tex]C-B = \$30,500-\$29,000 = \$1,600[/tex]
B. Costs outweigh benefits by $1,600.
You are an excellent investor and have averaged a 12% rate of return over the last 20 years. Over the same time period, inflation has averaged 3.2%. What is the real rate of return you have earned on your investments?
Answer:
real rate of return = 8.8%
Explanation:
given data
nominal rate of return = 12 %
time = 20 year
inflation rate = 3.2%
solution
we will apply here Nominal rate of return to get real rate of return that is
nominal rate of return = Real rate of return + Inflation rate ......................1
put here value and we will get real rate of return
real rate of return = nominal rate of return - inflation rate
real rate of return = 12% - 3.2%
real rate of return = 8.8%
The real rate of return is found by subtracting the inflation rate from the nominal rate of return. With a 12% nominal rate and a 3.2% inflation rate, the real rate of return is 8.8% per year.
To calculate the real rate of return on investments, one must adjust the nominal rate of return by taking into account the rate of inflation. The formula to find the real rate of return is to subtract the inflation rate from the nominal rate of return. In your case, if the investment's nominal rate of return is 12%, and the average inflation rate is 3.2%, you can calculate the real rate of return like this:
Real Rate of Return = Nominal Rate - Inflation Rate
Real Rate of Return = 12% - 3.2%
Real Rate of Return = 8.8%
Therefore, the real rate of return you have earned on your investments, after adjusting for inflation, is 8.8% per year.
Jerry is using social media to market products directly to end users. This type of marketing is defined as real-time feedback crowdsourcing businesses-to-consumer feedback loops direct sales
Answer:
The correct answer is letter "C": businesses-to-consumer.
Explanation:
Businesses-to-consumer (B2C) sales are those in which the manufacturer or firm directly offers its product or services to the final users. The advantage of this practice is charging higher since companies do not have to consider a special price for suppliers to earn profits. The drawback lays in the fact that en users usually purchase items in small sizes.
Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $1,200,000. According to independent appraisals, the fair values were $585,000 (building A) and $325,000 (building B) for the buildings and $390,000 for the land. Required: Determine the initial valuation of the buildings and the land.
Answer:
Initial valuation of the building A=$540000
Initial valuation of the building B=$300000
Initial valuation of the land=$360000
Explanation:
First,we will calculate the total fair value of all assets:
Total fair value of assets=Fair value of building A+Fair value of building B+Fair value of land
Total fair value of assets=$585,000+$325,000+$390,000
Total fair value of assets=$1,300,000
Initial valuation of the building A= [tex]\frac{Fair\ value\ of\ building\ A}{Total\ Fair\ value} *lump-sum[/tex]
[tex]Initial\ valuation\ of\ the\ building\ A=\frac{\$585,000}{\$ 1,300,000}*\$1,200,000\\Initial\ valuation\ of\ the\ building\ A=\$540000[/tex]
For building B:
[tex]Initial\ valuation\ of\ the\ building\ B=\frac{\$325,000}{\$ 1,300,000}*\$1,200,000\\Initial\ valuation\ of\ the\ building\ B=\$300,000[/tex]
For Land:
[tex]Initial\ valuation\ of\ the\ building\ land=\frac{\$390,000}{\$ 1,300,000}*\$1,200,000\\Initial\ valuation\ of\ the\ building\ land=\$360000[/tex]
Check of answer;
Sum of all initial Values= Lump-Sum
$540000+$300000+$360000=$1,200,000
$1,200,000=$1,200,000
Final answer:
The initial valuation of Building A, Building B, and the land are $540,000, $300,000, and $360,000 respectively, after allocating the purchase price based on their fair market values.
Explanation:
To determine the initial valuation of the buildings and the land that Pinewood Company purchased, we need to allocate the lump-sum purchase price based on the proportional fair values of the assets acquired. The total fair value of the assets according to the appraisals is $585,000 (Building A) + $325,000 (Building B) + $390,000 (Land) = $1,300,000.
The purchase price of $1,200,000 is then allocated based on the fair value of each asset:
Building A: (Fair Value of A / Total Fair Value) × Purchase Price = ($585,000 / $1,300,000) × $1,200,000 = $540,000Building B: (Fair Value of B / Total Fair Value) × Purchase Price = ($325,000 / $1,300,000) × $1,200,000 = $300,000Land: (Fair Value of Land / Total Fair Value) × Purchase Price = ($390,000 / $1,300,000) × $1,200,000 = $360,000Thus, the initial valuation of Building A is $540,000, Building B is $300,000, and the land is $360,000.
When most economists wake up in the morning, their first decision is whether or not to his the snooze button on the alarm clock.
A) I had a really late night grading exams, and I deserve 10 more minutes of sleep.
B) The total amount of work I have to do today is rather small, so the total benefit to going to work for a full 8 hours is also small.
C) The total amount of work I have to do today is rather small, so the marginal cost of going to work 10 minutes late is small.
D) The total amount of work I have today is rather small, so the marginal benefit of sleeping 10 more minutes is rather large,
E) The marginal benefit of sleeping 10 more minutes is greater than the marginal benefit of 10 more minutes of work.
Answer:
The correct answer is letter "E": The marginal benefit of sleeping 10 more minutes is greater than the marginal benefit of 10 more minutes of work.
Explanation:
Marginal Benefit is an economic term that describes the maximum amount a consumer is willing to pay for an additional unit of a good or service. Typically, the marginal benefit decreases as long as the person consumes more of that good or service. The price-benefit relationship is inversely proportional.
In the example, the marginal benefit of sleeping 10 minutes more must be greater than the marginal benefit of working 10 more minutes if economists choose to sleep a little bit more.
Who does not face trade-offs?
a. Super-rich CEOs of high-powered corporations
b. You
c. The U.S. government
d. Everybody faces trade-offs You The U.S. government
Answer:
The correct answer is letter "D": Everybody faces trade-offs.
Explanation:
Trade-offs are closely related to the scarcity problem. Scarcity is the basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources efficiently. There is when individuals have to sacrifice one need or part of it to fulfill a major benefit. Trade-offs are experienced in that case and not only individuals but also, companies and governments deal with these situations.
Falconer Company had net (after-tax) income last year of $14,107,956 and total capital employed of $131,869,720. Falconer's actual cost of capital was 12%.
Required:
1. Calculate the EVA for Falconer Company. Enter negative values as negative numbers, if required. Round your answer to the nearest dollar. $
2. Conceptual Connection: Is Falconer creating or destroying wealth?
Answer:
1. -$1,716,410.40
2. destroying wealth
Explanation:
The formula to compute EVA is shown below:
1. = Net operating income or earnings after taxes - (total capital employed × actual cost of capital)
= $14,107,956 - ($131,869,720 × 12%)
= $14,107,956 - $15,824,366.40
= -$1,716,410.40
2. As we see that the amount comes in negative that represent the wealth is destroyed
Learning is pervasive in our lives, but there are two different theories on how people learn the ________ theories and the ________ theories.a. behavioral; affective b. cognitive; rational c. behavioral; cognitive d. emotional; affective e. experiential; intentional
Final answer:
Learning theories are typically divided into behavioral and cognitive approaches, with behavioral focusing on responses to environmental stimuli and conditioning, while cognitive emphasizes mental processes and learning through imitation or instruction.
Explanation:
Learning is pervasive in our lives and encompasses different understanding mechanisms, as highlighted by two prevailing theories — the behavioral theories and the cognitive theories. Behavioral learning theories center on how our environment and interactions with it shape our behavior through conditioning mechanisms such as classical and operant conditioning. On the other hand, cognitive learning theories focus on the internal thought processes and mental activities that influence our ability to process and integrate new information. Cognitive learning involves understanding, synthesizing, and applying knowledge to solve problems and is seen in behaviors that result from learning by imitation or instruction.
Classical examples demonstrating cognitive theory include Albert Bandura's social learning theory which incorporates the idea of observational learning and reciprocal determinism, as well as concepts such as self-efficacy which affects how individuals approach goals and challenges. This stands in contrast to strictly behavioral perspectives that consider learned behaviors as responses to stimuli without the influence of mental states. Both cognitive learning and behavioral learning are essential to everyday practical living and are typically referenced in the context of both formal education and informal education.
Social entrepreneurship is a growing phenomenon. Do you believe that for-profit businesses can have a social mission?
Answer and explanation:
For-profit businesses are mainly created to fulfill entrepreneurs' interests but it does not imply that all organizations do not take a look at the social impact they can cause. Health care groups, for instance, are very profitable entities around the world but they carry with the major responsibility of providing good medical assistance to the individual where the medical centers operate.
Creating a __________ may be one of the most difficult tasks that will fall to the disaster recovery teamleader.A.need for the planB.diverse teamC.qualified team1
D.team spirit
Answer: it's C
Explanation:
Answer:
The correct answer is letter "D": team spirit.
Explanation:
A team spirit is a sense of belonging of the individuals of a group towards the organization they formed. In front of natural disasters, creating a team spirit could be challenging for team leaders because most people are interested in their self-care more than in others. Leaders must promote solidarity among the team members so they can also prioritize all those who are in more need than them. Collectively, their joint efforts will help the community to recover faster from the act of God.
Sharon Silver is an attorney in Los Angeles. Silver uses the directâ write-off method to account for uncollectible receivables. At April 30 comma 2018â, Silverâ's accounts receivable totaled $ 22 comma 000. During Mayâ, she earned revenue of $ 25 comma 000 on account and collected $ 16 comma 000 on account. She also wrote off uncollectible receivables of $ 3 comma 250 on May 31â, 2018. Read the requirements.
1.) Use the direct write-off method to journalize Silver's write-off of the uncollectible receivables.
2.) What is Silver's balance of Accounts Receivable at May 31, 2018?
Answer:
1. Bad debt expense A/c Dr $3,250
To Account receivable A/c $3,250
(Being the uncollectible receivables are recorded)
2. $27,750
Explanation:
1. The adjusting entry is shown below:
Bad debt expense A/c Dr $3,250
To Account receivable A/c $3,250
(Being the uncollectible receivables are recorded)
2. The computation of ending balance of account receivable is shown below:
Ending account receivable balance = Beginning account receivable + credit sales - collections - written off amount
= $22,000 + $25,000 - $16,000 - $3,250
= $27,750
Deb’s Auto Alarms has sold car alarms in the United States for 15 years. Owner Deborah Lefkowitz has read about the opportunities that globalization presents for businesses, and she is thinking about seeking entry to several international markets. She asks you for advice: "I’ve heard about free trade agreements among different groups of countries: World Trade Organization (WTO), the North American Free Trade Agreement (NAFTA), the European Union (EU), the Association of Southeast Asian Nations (ASEAN), Mercosur in Latin America, the African Free Trade Zone (AFTZ) . . . In general, it seems as though these agreements have had positive effects on economic growth, but they have also been controversial in some ways. What can you tell me about them?"
Based on your knowledge of international trade organizations, answer the following question.
Which of the following statements correctly describes the North American Free Trade Agreement (NAFTA)? Check all that apply.
a) A drawback of NAFTA is that it has erected barriers to the entry of small businesses into the international market.
b) Business people in the United States, Canada, and Mexico have mixed opinions about whether NAFTA has been a success.
c) NAFTA reduced the amount of trade among the countries involved.
d) NAFTA dramatically reduced tariffs on goods traded among the United States, Canada, and Mexico.
1) Business people in the United States, Canada, and Mexico have mixed opinions about whether NAFTA has been a success -
The countries that haven't been benefited by the implementation of NAFTA tend to believe that NAFTA cannot be considered as a substantial success. On the other hand, the ones who have had the chance to fetch profit out of the trading done wit the other two countries call it a success.
2) NAFTA dramatically reduced tariffs on goods traded among the United States, Canada, and Mexico:
The implementation of NAFTA was itself for the sole purpose of reducing the tariffs that were earlier applicable on the cross-boundary trade that took place between the three countries.Xsis Inc. is an information technology (IT) and services company. It used to outsource its technical support calls to a company located in a Southeast Asian country. Xsis Inc. started receiving a lot of complaints from customers on language difficulties and delays in reaching senior technicians when speaking to support personnel. The reduction in the volume of calls for its services led Xsis Inc. to terminate its outsourcing contract. Identify the appropriate issue related to outsourcing that led Xsis Inc. to terminate its contract with the company in Southeast Asia.
a. Employee moraleb. Technical and legal issuesc. Negative impact on customer relationships and satisfactiond. Data security and integrity issues
Answer:C=Negative impact on customer relationships and satisfaction
Explanation:Xsis Inc being an IT and services company outsourced it's technical support calls to a company in Asia,this is called offshoring i.e outsourcing to a foreign company.the main issue is that this area is one if the core competence of an IT and service company and should not have been outsourced without proper monitoring of the service level agreements.outsourcing the call support means Xsis Inc will have to depend on the management,technical skills if the vendor to manage a very crucial aspect of their operation and from the above illustration,the vendors technical strength was poor leading to inability if customer's to reach senior technicians when the need arises ,this led to customer dissatisfaction ,which will off course lead to loss of patronage .
Offshoring as in this case had language barrier as a major obstacle ,the south east Asia vendors did not put enough infrastructure in place to cater for the customer's varying language need ,this led to customer's dissatisfactionand sorely affects the customer relationship with Xsis Inc,because the customer sees the call support vendor as staff of Xsis and may not be aware of the outsourcing deal and even if aware really don't care ,the connection is Xsis,the blame goes to Xsis and it is only rational for Xsis to cancel the contract and if possible insource this important function.
The outsourcing issue that caused Xsis Inc. to terminate its partnership contract is the negative influence on customer satisfaction and relationships. This was due to communication issues and delays in advanced technical support.
Explanation:The issue that led Xsis Inc. to terminate its outsourcing contract with the company in Southeast Asia is 'Negative impact on customer relationships and satisfaction'. Customer complaints about language difficulties and delays indicate dissatisfaction, which could significantly influence a company's reputation and relationships with its clientele.
Outsourcing, although potentially cost-effective, may not guarantee the same quality control as in-house services, which may lead to issues such as communication barriers and prolonged handling time for complex issues. Losing clients due to such issues contradicts the fundamental purpose of having customer support, hence hampering a company's growth and success.
Therefore, it's crucial for companies like Xsis Inc. to consider customer satisfaction and relationships when making outsourcing decisions.
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When total debits equal total credits on a trial balance, we can be assured that no errors of any sort occurred during the preceding steps in the accounting cycle.A. TrueB. False
Answer:
B. False
Explanation:
When total debits equals to total credits on a trial balance, we can't assured that there are no errors of any sort occurred during the preceding steps in the accounting cycle.
Following Accounting Errors may result in Balanced Trial Balance
Errors of omissions
Errors of commissions
Errors of misposting
Compensating errors
Errors of Principle
If textbooks and study guides are complements, then an increase in the price of textbooks will result in
Answer:
Fewer study guides being sold.
Explanation:
The textbook and the study guides are the material or the books which help the student in order to gain knowledge by going through or study the textbook as well as the guide.
The study guide and the textbooks are complements means that the study guide is the supplement the textbooks as the study guide has the solutions for the questions of the textbooks.
But when there is increase in the price of the textbooks, the demand for the study guides will be decrease as the textbooks will not be purchased by the students which result in fewer study guides being sold in the market.
If textbooks and study guides are complements, then an increase in the price of textbooks will result in B. A decrease in the demand for study guides.
When textbooks and study guides are complements, it means that they are typically used together or are consumed together in some way.
For example, students often purchase study guides to supplement their learning from textbooks.
When the price of textbooks increases, it becomes more expensive for students to purchase textbooks.
As a result, students may be less inclined to spend additional money on study guides, especially if they are already facing higher costs for textbooks. This leads to a decrease in the demand for study guides because students are less willing to purchase them at the higher price.
In economic terms, the increase in the price of textbooks leads to a decrease in the demand for study guides, as the two goods are complements and their consumption patterns are interrelated.
Full question
If textbooks and study guides are complements, then an increase in the price of textbooks will result in:
A. An increase in the demand for study guides.
B. A decrease in the demand for study guides.
C. No change in the demand for study guides.
D. An increase in the price of study guides.
Selected data from a February payroll register for Coronado Company are presented below. Some amounts are intentionally omitted. Gross earnings: State income taxes $(3) Regular $9,000 Union dues 190 Overtime (1) Total deductions (4) Total (2) Net pay $7,517 DeductionsAccount debited: FICA taxes $ 765 Salaries and wages expense (5) Federal income taxes 1,128 FICA taxes are 7.65%. State income taxes are 4% of gross earnings.
Answer:
1. Overtime= $1,000
2. Gross Pay= $10,000
3. State Income Taxes = $400
4. Total Deductions= $2,483
5/ Salaries and wages expenses = $10,000 (Gross Pay)
Explanation:
The question says to find the following:
1. Overtime
2. Total
3. State Income Taxes
4. Total Deductions
5. Salaries and Wages Expense
1. Overtime
Overtime is derived after calculating the total Gross Pay (2nd question)
Total Gross Pay= Regular + Overtime
$10,000= $9,000 + Overtime
Therefore, Overtime = $10,000-$9,000
Overtime= $1,000
2. Total Gross Pay (this should be treated before the 1st which is overtime)
= Gross Pay =
= calculated as FICA tax expense /the percentage of FICA taxes
FICA tax expense = $765
% of FICA taxes = 7.65
Gross Pay= $765 / 7.65% (0.0765)
= $10,000
3. State Income Tax
The state Income Taxes is derived as follows
Gross Pay x the given percentage (4%)
State Income taxes = $10,000 x 0.04
State Income taxes = $400
4. Calculate the total deductions
Total Deductions are the sum of the following
FICA taxes + federal Income taxes + State Income taxes + Union dues
= $765+ $1,128+$400+$190
= $2,483
5. Salaries and Wages Expense
The answer to this is simply the derived total gross pay (regular + overtime) Calculated in step 2
Gross pay= salaries and wages expense= $10,000
Oriole Corporation purchased a new machine for its assembly process on August 1, 2017. The cost of this machine was $134,406. The company estimated that the machine would have a salvage value of $14,706 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 21,300 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to 0 decimal places, e.g. 45,892.)
(a) Straight-line depreciation for 2017
(b) Activity method for 2017, assuming that machine usage was 770 hours
(c) Sum-of-the-years'-digits for 2018
(d) Double-declining-balance for 2018
Answer:
The depreciation expenses for:
(a) Straight-line depreciation for 2017: $23,940 which is calculated as : ( Cost - Salvage value)/ Useful life = (134,406 - 14,706)/5 = $23,940.
(b) Activity method for 2017: $4,327 which is calculated as: ( Cost - Salvage value) / Total estimated working hours * Actual working hours in 2017 = ( 134,406 - 14,706) / 21,300 * 770 = $4,327.
(c) Sum-of-the-years'-digits for 2018: $31,920 which is calculated as: (Remaining useful life / Sum of the year's digits) * ( Cost - Salvage value) = [4/(5+4+3+2+1)] * ( 134,406 - 14,706) = $31,920.
(d) Double-declining-balance for 2018: $32,233; which is calculated as below:
Book value of machine as at the beginning of 2018 * 1/5 * 2
in which: Book value of machine as at the beginning of 2018 = Cost of machine - Depreciation expenses in 2017 = 134,306 - 134,306 * 2 * 1/5 = $80,583.60
So, Depreciation expenses for 2018 is: 80,583.60 * 1/5 * 2 = $32,233.
Explanation:
Intel Corp has a share price of $31.63 and a yearly dividend of $1.50 per year. An option with a strike price of $27 has a call price of $6.10, and a put price of $2.65. It has a 1 yr expiry period. Assuming no interest, what is the predicted share price according to the put-call parity relationship
Answer:
predicted share price acc to put call parity is $31.95
Explanation:
given data
share price = $31.63
yearly dividend = $1.50 per year
strike price = $27
call price = $6.10
put price = $2.65
expiry period = 1 year
solution
Put Call Parity is price relationship between put option, call option and underlying stock
so we apply here basic put call parity formula that is
Po + So = Co +( D + X × [tex]e^{-rt}[/tex] ...................1
here Po is put option and Co is call option and X is strike price and So stock price and t is time and r is risk free rate and D is dividend and it is 0 here
so Stock price will be
So + Po = Co + D + X
So + $2.65 = $6.10 + $1.5 + $27
So = $31.95
so here predicted share price acc to put call parity is $31.95
Dannon Yogurt represents what type of product for most consumers?
a. Business
b. Durable
c. Convenience
d. Shopping
e. Specialty
Answer:
c. Convenience
Explanation:
The convenience product is that product which is routinely or immediately purchased. The Dannon yogurt is easy to buy, as it has a very low price so every class can be purchased.
The Dannon yogurt is a perishable commodity that is perishable in nature and is to be consumed daily.
Examples of this convenience product include yogurt, milk, juices, candy,etc.
Firms HL and LL are identical except for their financial leverage ratios and the interest rates they pay on debt. Each has $10 million in invested capital, has $1.5 million of EBIT, and is in the 25% federal-plus-state tax bracket. Firm HL, however, has a debt-to-capital ratio of 55% and pays 11% interest on its debt, whereas LL has a 30% debt-to-capital ratio and pays only 10% interest on its debt. Neither firm uses preferred stock in its capital structure. Calculate the return on invested capital (ROIC) for each firm.
Answer:
0.1125 or 11.25% for each firm
Explanation:
Given that,
Each has $10 million in invested capital,
$1.5 million of EBIT
25% federal-plus-state tax bracket
ROIC for LL:
= [EBIT × (1 - tax rate)] ÷ invested capital
= [1.5 × (1 - 25%)] ÷ 10
= 0.1125 or 11.25%
ROIC for HL
= [EBIT × (1 - tax rate)] ÷ invested capital
= [1.5 × (1 - 25%)] ÷ 10
= 0.1125 or 11.25%
Therefore, the return on invested capital (ROIC) for each firm is 11.25%
Spartan castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the same level of particulate reduction. The first process is expected to incur $350,000 of fixed cost and add $50 of variable cost to each casting Spartan produces. The second process has fixed costs of $150,000 and adds $90 of variable cost per castings.
What is the break-even quantity beyond which the first process is more attractive?
What is the difference in total cost if the quantity produced are 10,000?
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
The first process;
Fixed costs= $350,000
Variable cost= $50
The second process:
Fixed costs= $150,000
Variable costs= $90
To calculate the break-even quantity we need to use the following procedure:
350,000 + 50*X= 150,000 + 90*X
X= number of units
200,000=40X
5,000=X
From 1 to 4,999 units, the second process is more convenient regarding costs. From 5001 to infinity the first process is more cost-efficient.
10,000 units:
First process= 350,000 + 50*10,000= $850,000
Second process= 150,000 + 90*10,000= $1,050,000
1. The break-even quantity beyond which the first process is more attractive is 5,000 castings. 2. The difference in total cost if the quantity produced are 10,000 is $200,000.
To find the break-even quantity and the difference in total cost for producing 10,000 castings using each process, we'll first calculate the total cost for each process, and then compare them.
1. Break-even Quantity:
Let Q be the number of castings produced.
For the first process:
- Fixed cost = $350,000
- Variable cost per casting = $50
Total cost ( [tex]TC_1[/tex] ) for the first process:
[tex]TC_1 = 350,000 + 50Q[/tex]
For the second process:
- Fixed cost = $150,000
- Variable cost per casting = $90
Total cost ( [tex]TC_2[/tex] ) for the second process:
[tex]TC_2 = 150,000 + 90Q[/tex]
To find the break-even quantity beyond which the first process is more attractive, we set the total costs equal and solve for Q :
350,000 + 50Q = 150,000 + 90Q
40Q = 200,000
Q = 5,000
Therefore, the break-even quantity beyond which the first process is more attractive is 5,000 castings.
2. Difference in Total Cost for 10,000 Castings:
For the first process:
[tex]TC_1 = 350,000 + 50 \times 10,000 = 350,000 + 500,000 = 850,000[/tex]
For the second process:
[tex]TC_2 = 150,000 + 90 \times 10,000 = 150,000 + 900,000 = 1,050,000[/tex]
The difference in total cost for producing 10,000 castings using each process is:
[tex]TC_2 - TC_1 = 1,050,000 - 850,000 = 200,000[/tex]
Therefore, the difference in total cost is $200,000.
The complete question is:
Spartan castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the same level of particulate reduction. The first process is expected to incur $350,000 of fixed cost and add $50 of variable cost to each casting Spartan produces. The second process has fixed costs of $150,000 and adds $90 of variable cost per castings.
1. What is the break-even quantity beyond which the first process is more attractive?
2. What is the difference in total cost if the quantity produced are 10,000?
If $1,000,000 of 9% bonds are issued at 102 3/4, the amount of cash received from the sale is
a.$1,090,000
b.$1,027,500
c.$1,000,000
d.$750,000
Answer:
b.$1,027,500
Explanation:
First we need to find the number of bonds issued so we will divide 1,000,000 by 100 as we assume 100 is the face value. 1,000,000/100=10,000
Now we will multiply the number of bonds by the issue price in order to find the amount of cash received.
10,000*102.75=1,027,500
Calgary Paper Company produces paper for photocopiers. The company has developed standard overhead rates based on a monthly capacity of 80,000 direct-labor hours as follows:
Standard costs per unit (one box of paper):
Variable overhead (3 direct-labor hours @ $4) $12
Fixed overhead (3 direct-labor hours @ $12) $36
Total $48
During April, 26,000 units were scheduled for production: however, only 20,000 units were actually produced. The following data relate to April.
Actual direct-labor cost incurred was $1,425,000 for 75,000 actual hours of work.
Actual overhead incurred totaled $1,372,500, of which $472,500 was variable and $900,000 was fixed.
Required:
Prepare two exhibits which show the following variances. State whether each variance is favorable or unfavorable, where appropriate.
1. Variable-overhead spending variance.
2. Variable-overhead efficiency variance.
3. Fixed-overhead budget variance.
4. Fixed-overhead volume variance.
5. Variable-Overhead Spending and Efficiency Variances.
Answer:
1. Variable-overhead spending variance. = $ 172,500 (favorable)
2. Variable-overhead efficiency variance. = $ 20,000 Favorable
3. Fixed-overhead budget variance. ( is not applicable)
4. Fixed-overhead volume variance. $ 60,000
5. Variable-Overhead Spending and Efficiency Variances.
$ 172,500 (fav) and $ 20,000 ( fav)
Explanation:
1. Variable-overhead spending variance=
Actual Variable Factory Overhead = $ 472,500
Variable Expense ( 75,000 actual hours at $ 4) = $ 300,000
Variable OH Spending Variance= $ 172,500 (favorable)
2. Variable-overhead efficiency variance.
Actual hours ( 75,000 ) * Standard OH rate= $ 300,000
Overhead charged to Production ( 80,000 * 4) = $ 320,000
Efficiency variance $ 20,000 Favorable
3. Fixed-overhead budget variance.
Fixed Expense Actual = $ 900,000
Fixed Expense Budgeted = ( 75000 Hours @ 12)= $ 900,000
Fixed OH Budget Variance = ( )
4. Fixed-overhead volume variance.
Normal Capacity Hours 80,000
Actual Hours allowed for production 75000
Capacity hours not utilized 5000
Volume variance ( 5000 hours *12) = $60,000
5. Variable-Overhead Spending and Efficiency Variances.
Actual Variable Expense = $ 472,500
Variable Expense for standard hours allowed ( 75000 *4) = 300,000
Variable Overhead Spending Variance = $ 172,500 favorable
Efficiency Variance
Actual Hours * Standard Overhead Rate = 75,000 * 4= $ 300,000
Overhead Charged To Production = 80,000 * 4= $ 320,000
Efficiency Variance = $20,000 Favorable
You share a cab ride with your company's CEO and he talks enthusiastically about the __________, that can be achieved when the subsystems of the organization are managed to contribute more than the sum of their parts.
A. Contingency View
B. Synergy
C. System Thinking
D. Total quality management
Answer:
The correct answer is letter "B": Synergy.
Explanation:
Synergy is the belief that the whole is more than the sum of all its parts. In Business, synergy implies that the whole organization is more important than the individual effort of the employees. This approach aims to let workers know that their joint work is more valuable than their isolated performance.
Synergy is the correct answer. It refers to the situation where the combined effect of the components in a system is greater than the sum of their individual effects. This can be experienced within an organization when the subsystems are well-coordinated for maximum efficiency.
The correct answer to this question is B. Synergy. The term 'synergy' refers to a situation where the combined effect of the components or contributors in a system is greater than the sum of their individual effects. In the context of an organization, when the subsystems are managed effectively to contribute more than their individual capacities, it results in synergy, which gives the organization a competitive advantage. For example, in a team where each individual is good at something different, when they work together under the umbrella of a single project, their combined skills can create a superior result compared to if they were working individually.
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It has been said that within the next few years, smartphones will become the single most important digital device we own. Discuss the implications of this statement.
Answer:
This statement is very likely to be true.
Explanation:
Smart phones are replacing personal computers and in future they will take place of the laptops because of the advancements in technology. Smart phones can do almost every thing a personal computer or a laptop can do e.g. smart phones help us to connect with the internet and we can search , socialize with people and even do business on a smart phone.
Smart phones have the hardware capabilities like 1 terbyte ROM 12 gigabytes of RAM which were once only available in the bigger devices.
Smartphones are becoming increasingly integral to everyday life, serving as central hubs for communication, entertainment, and personal management. This growing dependence highlights the dual-edged nature of technology. The future implications of smartphone ubiquity in society represent a complex area for ongoing observation and research.
It has been said that within the next few years, smartphones will become the single most important digital device we own, underscoring their rapidly evolving role in our daily lives. People depend on smartphones increasingly more than they did a year ago or five years ago. The implications of this statement are profound, touching on various aspects of society, personal life, and global connectivity.
The relationship between people and their smartphones has dramatically shifted, with these devices now serving as hubs for social media, work, education, entertainment, and personal communication. This has resulted in the omnipresence of smartphones, making them an indispensable part of our lives. The increased dependency on smartphones brings both benefits and challenges. On the one hand, they have made tasks like staying in touch, planning, and increasing productivity simpler. On the other hand, they contribute to difficulties in disconnecting from work, providing undivided attention, and focusing on tasks without distraction.
Furthermore, emerging technologies like augmented reality and "hands-off" technology are likely to deepen our reliance on smartphones. However, this dependency raises concerns about personal privacy, data security, and the potential for increased stress and anxiety due to constant connectivity. The future of digital media and its effects on society thus remains a vibrant area for exploration and understanding, putting us in what can be described as pioneer territory.
You have just made your first $5,000 contribution to your individual retirement account. Assuming that you earn in the stock market an annual rate of 9.75% and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing? Does this suggest an investment strategy?
Answer:
1) The account will be worth $328,983 after 45 years.
Explanation:
If we make 9.75% annually for 45 years our account will be worth 5000 compounded at 9.75% for 45 years. So account worth after 45 years =
5000*1.0975^45=328,983
Assuming an annual interest rate of 9.75%, a $5,000 retirement contribution would grow to approximately $304,481.79 in 45 years if no additional contributions are made. If you waited 10 years to contribute, the amount would be approximately $105,878.60 after 35 years. This highlights the strategy of investing early.
Explanation:To calculate the value of your retirement account in 45 years, you would use the formula for compound interest, which is A=P(1+r/n)^(nt), where 'A' is the amount of money accumulated after n years, including interest, 'P' is the principal amount (the initial amount of money), 'r' is the annual interest rate (in decimal), 't' is the time the money is invested for in years, and 'n' is the number of times that interest is compounded per year.
Assuming your annual rate is 9.75% (or 0.0975 in decimal form), and you make no additional contributions, your $5,000 would grow to approximately $304,481.79 in 45 years. If you wait 10 years before you make your first contribution, the total amount after 35 years would be approximately $105,878.60.
This exercise suggests that the sooner you start investing, the more time your money has to grow. Through the power of compound interest, even a small initial investment can grow significantly over time. This suggests a strategy of starting to invest as early as possible in order to maximize potential returns.
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