Answer:
B
Explanation:
The first thing to do here is to calculate what the amount of money invested would be in 25 years given the interest rate.
Mathematically, that can be written as;
V = P(1 + r)^n
Where V is the future value
P is the present value which is $8,000
r is interest rate which is 6% (6/100 = 0.06)
n is the number of years which is 25 years
Now plugging these values into the equation, we have
V = 8,000(1 + 0.06)^25
V = 8,000(1.06)^25
V = $34,334.97 which is approximately $34,335
We can now proceed to get what this future value would be today if we take the inflation rate into consideration
Mathematically, this can work as follows
P = V(1 + i)^n
Where P is the present value of the money when the inflation is taken into consideration
V is the future value of the money which was calculated from above as $34,335
i is the inflation rate which is 1.8% per annum = (1.8/100 = 0.018)
n is the number of years which is 25
Substituting these values, we have;
P = 34,335/(1 + 0.018)^25
P = 34,335/(1.018)^25
P = 21,980.75
Which is approximately P = $21,981
Ben has two options this weekend. He could work at his job and earn $8 per hour for three hours, or he could go to an exhibit at the art museum for that three hours. A ticket for the event costs $30. What is the opportunity cost of the event?
Answer:
Opportunity cost= -$54
Explanation:
Giving the following information:
He could work at his job and earn $8 per hour for three hours, or he could go to an exhibit at the art museum for those three hours. A ticket for the event costs $30.
The opportunity cost is the "cost" of not taking other alternatives.
Opportunity cost= total revenue - economic profit
Opportunity cost= -30 - 24= -$54
Thomlin Company forecasts that total overhead for the current year will be $11,597,000 with 164,000 total machine hours. Year to date, the actual overhead is $7,833,000 and the actual machine hours are 83,000 hours. The predetermined overhead rate based on machine hours is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a.$94 per machine hour b.$48 per machine hour c.$71 per machine hour d.$140 per machine hour
Answer: c.$71 per machine hour
Explanation:
The Pre-determined Overhead rate is the rate Thomlin Company forecasted that the company would incur total overhead for the current year.
They forecasted total overhead of $11,597,000 with 164,000 total machine hours.
Since the rate is based on Machine Hours the rate would be,
= Total Forecasted Overhead / Total Forecasted Machine Hours
= 11,597,000 / 164,000
= 70.71
= $71
According to this case study, what is an upcoming key technology that will be used in retail stores to improve customer service? And how it is currently being used? What will be the role of smartphones in the future of shopping? Support your claim with a reference.
Answer:
1. According to the case study (copy attached) "the upcoming technology that will be used in retail stores to improve customer service is the Scan As You Go Mobile Devices".
2. It is currently being used by sales officers in some shopping malls to scan items on the spot and let customers pay without going through the cash registers.
It is also being used to help customers take advantage of discounts and coupons on items being purchased. The effect is that customers spend 10% when they shop using this technology.
3. In the future, the customers will be able to check out using their smartphones.
4. According to the case study, the technology referred to in 3 above is already pioneered by Apple Stores.
Cheers!
Although the "Great Recession" that began in late 2007 ended officially in the summer of 2009, the U.S. economy had staged only a modest recovery as we moved through the middle of 2015. Some economists have pointed out that this is typical of a _____________ recession.
Answer: balance sheet
Explanation: The modest recovery of the U.S. economy after the Great Recession has been described by economists as typical of a balance sheet recession which is characterized by great savings, reduction in debts by individuals or companies collectively, as opposed to spending or investing which serve as stimulants for economies. This is usually attributed to high levels of private sector debts and as a result, there is general economic decline or slow growth.
Cullumber Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in each of its systems. Based on an annual production of 40,780 timers, the company has calculated the following unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation. Direct materials $12 Direct labor 7 Variable manufacturing overhead 3 Direct fixed manufacturing overhead 8 (30% salaries, 70% depreciation) Allocated fixed manufacturing overhead 8 Total unit cost $38 Clifton Clocks has offered to provide the timer units to Cullumber at a price of $32 per unit. If Cullumber accepts the offer, the current timer unit supervisory and clerical staff will be laid off. Warning Don't show me this message again for the assignment Ok Cancel Collapse question part (a1) Correct answer. Your answer is correct. Calculate the total relevant cost to make or buy the timer units. (Round answers to 0 decimal places, e.g. 5,275.) Assume that if Cullumber Water accepts Clifton’s offer, the company can use the freed-up manufacturing facilities to manufacture a new line of growing lights. The company estimates it can sell 93,050 of the new lights each year at a price of $12. Variable costs of the lights are expected to be $9 per unit. The timer unit supervisory and clerical staff would be transferred to this new product line. Calculate the total relevant cost to make the timer units and the net cost if they accept Clifton's offer.
Answer:
If Cullumber accepts the offer, the current timer unit supervisory and clerical staff will be laid off.
If Cullumber accepts the offer its net profits will decrease by ($309,928)If Cullumber accepts the offer, and uses the freed-up manufacturing facilities to manufacture a new line of growing lights.
Cullumber's net profits will decrease by ($30,778)Explanation:
annual production of 40,780 timers
Direct materials $12
Direct labor $7
Variable manufacturing overhead $3
Direct fixed manufacturing overhead $8 (30% supervisory and clerical salaries, 70% equipment depreciation)
Allocated fixed manufacturing overhead $8
total cost per unit = $38 per unit x 40,780 = $1,549,640
40,780 timers have been offered at $32 per timer = $1,304,960
scenario 1: Cullumber accepts the offer and lays off personnel:
Keep producing Purchase Differential
clocks clocks amount
Production costs $995,032 $995,032
(unavoidable fixed
costs not included)
Purchase costs $1,304,960 ($1,304,960)
total costs $995,032 $1,304,960 ($309,928)
If Cullumber accepts the offer its net profits will decrease by $309,928
relevant costs / revenues related to accepting the offer:
93,050
scenario 1: Cullumber accepts the offer and uses the freed-up manufacturing facilities to manufacture a new line of growing lights.
Keep producing Purchase Differential
clocks clocks amount
Production costs $995,032 $995,032
(unavoidable fixed
costs not included)
Purchase costs $1,304,960 ($1,304,960)
Revenue from ($279,150) $279,150
production of lights
(contribution margin
x 93,050 units)
total costs $995,032 $1,025,810 ($30,778)
At January 1, 2019, Betty DeRose, Inc. had an allowance for bad debts with a $4,500 credit balance. During 2019, Betty wrote-off as uncollectible accounts receivable in the amount of $6,200. At December 31, 2019, Betty had total accounts receivable of $216,000 and prepared the following aging schedule: Accounts Receivable % Uncollectible not past due $100,000 1% 1-30 days past due 60,000 4% 31-60 days past due 27,000 8% 61-90 days past due 19,000 26% over 90 days past due 10,000 40% total accounts receivable $216,000 Calculate the net realizable value of Betty DeRose's accounts receivable at December 31, 2019.
Answer:
$16,200
Explanation:
The bad debt expense has beginning balance of $4,500. Bad debt written of during 2019 is $6,200. The total account receivable is $216,000.
$100,000 * 1% = $1000
$60,000 * 4% =$2400
$27,000 * 8% =$2160
$19,000 * 26% =$4940
$10,000 * 40% =$4000
The total of uncollected is $14,500
The bad debt of the current year is $4500 - $6200 = $1700
Sally makes deposits into a retirement account every year from the age of 30 until she retires at age 65. a) If Sally deposits $ 1100$1100 per year and the account earns interest at a rate of 9 %9% per year, compounded annually, how much does she have in the account when she retires? b) How much of that total amount is from Sally's deposits? How much is interest?
Answer:
a)
Balance of account at retirement = $237,281.83
b)
Total Deposited amount = $38,500
Interest Amount = $198,781.83
Explanation:
A fix periodic payments for the specific period of time is the annuity payment. Deposit of $1,100 per year in retirement account is annuity payment.
a)
We can calculate the balance of account on retirement by using following formula
Future Value of Annuity = P x ( 1 + r )^n - 1 / r
Where
P = Periodic payments = $1,100
r = 9%
n = 65 years - 30 years = 35 years
Placing values in the formula
Balance of account at retirement = $1,100 X ( 1 + 9% )^35 - 1 / 9%
Balance of account at retirement = $237,281.83
b)
Total Deposited amount = $1,100 x 35 = $38,500
Interest Amount = Balance of account at retirement - Total Deposited amount = $237,281.83 - $38,500 = $198,781.83
You work for a company that ends their fiscal year on September 30th. The company billed its customers for services provided in August, but they have not yet received payment for these services. Assuming the company uses accrual accounting, how should this transaction be recorded
Answer:
Debit Accounts receivable
Credit Service Revenue
Being entries for services rendered to customers in August
Explanation:
Under accrual accounting, revenue is recognized once it is earned which is when the goods or services have been delivered to the customers such that the risk and reward or control of the goods/services now lies with the customer.
This is different from the cash basis of accounting where revenue is only recognized when cash has been received.
In accrual accounting, When revenue is earned but cash is yet to be received,
Debit Accounts receivable
Credit Revenue account
On receipt of cash,
Debit Cash account
Credit Accounts receivable.
What are commercial bank?
Answer:
A commercial bank is a type of bankthat provides services such as accepting deposits, making business loans, and offering basic investment products that is operated as a business for profit.
Berk Company produces three products: Tic, Tac, and Toe. Tic requires 160 machine setups, Tac requires 150 setups, and Toe requires 190 setups. Berk has identified an activity cost pool with allocated overhead of $32,000 for which the cost driver is machine setups. How much overhead is assigned to the Tic product?
Answer:
Overhead assigned to Tic= $10,240
Explanation:
Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers.
Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.
Activity rate per driver is calculated as:
Activity overhead for the period / Total cost drivers for the period
Set -up activity overhead = $32,000
Total expected cost drivers for activity set up = sum of the set ups for the three products
Total set ups= 160 +150 + 190 = 500 set ups
Overhead rate per set up
= $32,000/500 set ups
= $64 per set up
Overhead assigned to Tic = Overhead rate per set up × No of setups for TIC
= $64 per setup ×160=$10,240
Overhead assigned to Tic= $10,240
Consider the market for iced coffee. Suppose that the price of an iced coffee falls from $4.25 to $3.50. Assuming that the point on the graph below corresponds to the initial price of $4.25, move the point to a new position on the curve to show the impact of this price change (holding everything else constant).
Answer:
The fall in the price of iced coffee from $4.25 to $3.50 will cause demand to grow.
Explanation:
This is because the market demand curve for any good is downward sloping: the higher the price, the lower the quantity demanded, and the lower the price, the higher the quantity demanded.
So this fall in price will move the equilibrium quantity (the point where supply and demand meet) to move to a point on the demand curve that is below the previous point.
Proposal #2 would establish local collection centers throughout the region to decrease the time it takes to convert credit payments that are mailed in by check to cash. It is estimated that establishing these collection centers would reduce the average collection time by 2 days.If the company currently averages $60,000 in collections per day, how many dollars will this suggested cash management system free up?If all freed up dollars would be used to pay down debt that has an interest rate of 5%, how much money could be saved each year in interest expense?Do the numbers suggest that this new system should be implemented if its total annual cost is $5200? Explain.
Answer: a. $120,000
b. $6,000
c. Yes
Explanation:
a. It is said that the collection centres would help reduce the collection time by 2 days and that every day $60,000 comes in.
If the proposal will reduce the amount of time taken to collect by 2 days then that means that the amount freed up is the amount that they would have collected in two days had it not been for the system.
That amount would be,
= $60,000 * 2
= $120,000
b. If they used this free up cash to pay off a debt that was accumulating 5% per year then the 5% will be saved.
The amount saved therefore is,
= 120,000 * 5%
= $6,000
By retiring a $120,000 that was accruing $6,000 a year, the proposal has enabled that $6,000 to be saved instead.
c. The cost of implementing this proposal is $5,200 per year and yet the savings it gives in interest is $6,000.
As the savings are higher than the cost, the number definitely suggest that the project should be implemented because it is more beneficial than it costs.
Deere is a global manufacturer and distributor of agricultural, construction, and forestry equipment. Suppose it reported the following information in its 2017 annual report. (In millions)
2017 2016 Inventories (LIFO) $2,267 $2,999
Current asset 32,910
Current liabilities 11,711
LIFO reserve 1,389
Cost of goods sold 15,661
Compute Deere inventory turnover for 2017 ratio.
Answer:
5.95
Explanation:
Deere inventory turnover for 2017 ratio is:
Formula for Inventory Turnover Ratio= Cost of Goods sold / Average Inventory
Where Average Inventory = (Previous Inventory + Current Inventory) / 2
= ($2,267 + $2,999) / 2
=$5,266 / 2
=$2,633
Average Inventory = $2,633
Therefore, Inventory Turnover Ratio = $15,661 / $2,633 = 5.9479 = 5.95
Deere Inventory Turnover for 2017 Ratio is 5.95.
Newport Industries is one of the first producers of a unique consumer product. The company has chosen a low-price strategy, hoping this will enable them to quickly attract many customers while discouraging potential competitors from entering the market. Newport's approach to pricing is a classic example of the skimming strategy.A. TrueB. FalseThe ability to integrate computers into the design and manufacture of products has had the greatest impact on production techniques in recent years.A. TrueB. FalseIn the evaluation of the promotion, it's best to establish a promotional strategy that can reach multiple targets rather than developing a separate promotion mix for each target group.A. TrueB. FalseBright Electronics has found it needs to reorganize, including a significant trim of its middle management. This action will likely result in:_______.
a. acquiring additional firms.b. flattening the organization and empowering employees, allowing them to get closer to the customer.c. increasing the size of its traditional departments to handle 24/7 operations.d. centralizing its decision making to better control its total quality management program.Empowerment means:______.a. giving employees the authority to make decisions.b. making certain that employees always defer to management when making decisions.c. hiring employees that do not require training due to the costly nature of this activity.d. asking employees to write the policies which govern their jobs.School Days Centers specialize in helping students with difficulties. With locations around the country, each center consists of a manager and several tutor and counselors. The counselors and tutor have a great deal of flexibility to design programs specifically for individual students. In fact, these first-line employees are considered to be the key people in the organization, and the manager's main function is to assist these employees in matters such as scheduling and securing necessary materials. This type of arrangement suggests that School Days is an inverted organization.A. TrueB. False
Answer:
1. False
2. False
3. d. centralizing its decision making to better control its total quality management program
4. a.
5. True
Explanation:
1. Remember, a skimming strategy does the opposite–where a company chooses the highest possible price not the lowest price for their product when entering the market.
2. Indeed, this has impacted on production techniques in recent years. For example, from labour intensive car factories in the past we now have fully automated car factories that require very few workforce.
3. Remember, centralization results when there are fewer people in the line of authority. Therefore, if Brights Electronics decision to reorganize and significantly trim its middle management would result in centralized decision making and a better control its total quality management program.
4. Note that the promotional mix involves target based marketing, therefore each target market may have unique characteristics. And to attract each target market would involve establishing a promotional strategy that can reach multiple targets rather than developing a separate promotion mix for each target group.
5. An inverted organization is one that has a reversal from the normal line of authority found in most organization. Instead of top to bottom it now bottom to top. This implies that the manager who normally would play major role in deciding strategies to be taken doesn't, but the bottom line employees performs that responsibility. Thus, School Days Center can be rightly called an inverted organization.
A customer wishes to open an account to fund payment of private middle school tuition. If the customer does not wish to deposit more than $2,000 per year and wishes to get a tax benefit, the best advice is for the customer to open a:
Answer: Coverdell Education Savings Account (ESA)
Explanation:
A Coverdell Education Savings Account (ESA) is a type of Trust account created by the US Government to help families fund the educational expenses of their members who are aged 18 or below.
This account is not Taxable as the US Government wants to use it as a way to encourage Educational Expenditure.
The account however is limited to a maximum deposit of $2,000 per year per beneficiary and so is perfect for the customer in question.
Vertical Analysis Two income statements for Cornea Company follow: Cornea Company Income Statements For Years Ended December 31 2019 2018 Fees earned $680,000 $576,000 Operating expenses 482,800 420,480 Operating income $197,200 $155,520 Prepare a vertical analysis of Cornea Company's income statements. Enter percents as whole numbers.
Answer:
Cornea Company
Income Statements For Years Ended December 31
2019 2018
Amount Percent Amount Percent
Fees earned $680,000 100% $576,000 100%
Operating expenses $482,800 71% $420,480 73%
Operating income $197,200 29% $155,520 27%
Operating expense working
2019= 482,800/680,000 * 100/1= 71% = 0.71
2018= 420,480/576,000 * 100/1= 73% = 0.73
Operating Income working
2019= 1 - 0.71 = 0.29 = 29%
2018= 1 - 0.73 = 0.27= 27%
On January 1, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, the cost of the available-for-sale securities was $252,000, and the fair value was $258,890. Prepare the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Dr Valuation Allowance for Available-for-Sale Investments $6890
Cr unrealized gain/(loss) on AFS investments $6890
Explanation:
The unrealized gain or loss on the available-for-sale securities is the difference between its cost of $252,000 and the fair value of $258,890 on 31st December.
Gain/(loss)=$258,890-$252,000=$6890 unrealized gain
The amount would be credited to unrealized gain/(loss) on AFS investments while Valuation Allowance for Available-for-Sale Investments would be debited with the same amount
Adjustment for Uncollectible Accounts Below is the aging of receivables schedule for Evers Industries. Aging of Receivables Schedule July 31 Customer Balance Not Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due Over 90 Days Past Due Subtotals 1,050,000 600,000 220,000 115,000 85,000 30,000 Boyd Industries 36,000 36,000 Hodges Company 11,500 11,500 Kent Creek Inc. 6,600 6,600 Lockwood Company 7,400 7,400 Van Epps Company 13,000 13,000 Totals 1,124,500 607,400 233,000 121,600 96,500 66,000 Percentage uncollectible 1% 3% 12% 30% 75% Allowance for Doubtful Accounts 106,106 6,074 6,990 14,592 28,950 49,500 Assume that the allowance for doubtful accounts for Evers Industries has a credit balance of $8,240 before adjustment on July 31. Journalize the adjusting entry for uncollectible accounts as of July 31. If an amount box does not require an entry, leave it blank. July 31
Answer:
bad debt expense 97,866 debit
Allowance for Doubtful Accounts 97,866 credit
Explanation:
We are given the table for the aging method from which we extract the
Total for Allowance for Doubtful Accounts 106,106
Now, as currently the allwoance for doubtful accounts has a balance of 8,240 we need to adjust to make up the difference
106,106 adjusted balance - 8,240 current balance = 97,866 adjustment
we will credit the allowance and recognzie this amount of bad debt expense
This way we are matching our net account receivables with our estimation of what we expect to collect
s) A system has four processes and five types of allocatable resources. The current allocation and maximum needs are as follows: Allocated Maximum Available Process A 2 1 0 2 2 4 2 2 3 3 3 2 x 2 3 Process B 3 1 1 0 2 3 3 6 1 2 Process C 2 1 0 2 1 3 2 3 3 1 Process D 1 1 0 1 0 1 2 3 2 1 What is the smallest value of x for which this is a safe state? Show all steps.
Answer:
The smallest value of x is 5 which leads to a safe state.
Explanation:
Solution
Given that:
Process Available Maximum Request = Max-Available
A [2 ,1 ,0 ,2, 2] [4, 2,2, 3, 3] [2,1,2,1,1]
B [3 ,1, 1, 0 ,2] [3 ,3 ,6 ,1 ,2] [0,2,5,1,0]
C [2 ,1 ,0 ,2 ,1 ] [3 ,2 ,3 ,3 ,1] [1,1,3,1,0]
D [1, 1, 0, 1, 0 ] [1, 2, 3, 2 ,1 ] [0,1,3,1,1]
Available = 3,2,x,2,3 ⇒ x has to be determined.
Now
consider x=1 then Available = 3,2,1,2,3
It can't satisfy A,B,C,D since the minimum value of x among those is 2
Consider x=2 then Available = 3,2,2,2,3
It can't satisfy B,C,D since the minimum value of x among those is 3
Thus
consider x=3 then Available = 3,2,3,2,3
It can't satisfy D since the minimum value of x among those is 5
Then
consider x=5 then Available = 3,2,5,2,3
It can satisfy A,B,C,D
Therefore, the minimum value of x is 5. So, that it leads to a safe state.
A computer's operating system serves as a link between humans and machines. A resource allocator is another title for it.
Solution:-
Given that:-
Process Available Maximum Request = Max-Available
A [2 ,1 ,0 ,2, 2] [4, 2,2, 3, 3] [2,1,2,1,1]
B [3 ,1, 1, 0 ,2] [3 ,3 ,6 ,1 ,2] [0,2,5,1,0]
C [2 ,1 ,0 ,2 ,1 ] [3 ,2 ,3 ,3 ,1] [1,1,3,1,0]
D [1, 1, 0, 1, 0 ] [1, 2, 3, 2 ,1 ] [0,1,3,1,1]
Available = 3,2,x,2,3 ⇒ x has to be determined.
Now , consider x=1 then Available = 3,2,1,2,3
It can't satisfy A,B,C,D since the minimum value of x among those is 2
Consider x=2 then Available = 3,2,2,2,3
It can't satisfy B,C,D since the minimum value of x among those is 3
Thus, consider x=3 then Available = 3,2,3,2,3
It can't satisfy D since the minimum value of x among those is 5
Then ,consider x=5 then Available = 3,2,5,2,3
It can satisfy A,B,C,D
Therefore, the minimum value of x is 5. So, that it leads to a safe state.
To know more about Operating system, refer to the link:
https://brainly.com/question/6689423
Other things the same, an increase in the U.S. interest rate causes U.S. net capital outflow to a. rise, so supply in the market for foreign-currency exchange shifts right. b. rise, so demand in the market for foreign-currency exchange shifts right. c. fall, so supply in the market for foreign-currency exchange shifts left.
Answer:
b. rise, so demand in the market for foreign-currency exchange shifts right.
Explanation:
An increase in the interest rates leads to a rise in the capital outflow as savings and investment lead to more net capital outflow. This is the movement of the assets on the company and is considered to be bad for the economy and leads to undesirable changes in the supply of the foreign currency as a shift in the demands of the consumers. This may result in political and economic instability."Today's settlement price on a Chicago Mercantile Exchange (CME) yen futures contract is $0.8011/¥100. Your margin account currently has a balance of $2,000. The next three days' settlement prices are $0.8057/¥100, $0.7996/¥100, and $0.7985/¥100. (The contractual size of one CME yen contract is ¥12,500,000). If you have a short position in one futures contract, the changes in the margin account from daily marking-to-market will result in the balance of the margin account after the third day to be A. $2,325. B. $2,000. C. $3,425. D. $1,425."
Answer:
Explanation:
The solution to the above problem is shown in the attached picture below. It is because of the arrangement i had ti use pen and book. Thank you
Epiphany Industries is considering a new capital budgeting project that will last for three years. Epiphany plans on using a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incremental cash flow projects:
Year 0 1 2 3
Sales (Revenues) 100,000 100,000 100,000
- Cost of Goods Sold (50% of Sales) 50,000 50,000 50,000
- Depreciation 30,000 30,000 30,000
= EBIT 20,000 20,000 20,000
- Taxes (35%) 7000 7000 7000
= unlevered net income 13,000 13,000 13,000
+ Depreciation 30,000 30,000 30,000
- capital expenditures -90,000
1. The free cash flow for the first year of Epiphany's project is closest to:________
A. $43,000
B. $25,000
C. $13,000
D. $45,000
2. The NPV for Epiphany's Project is closest to:_______
A. $4,800
B. $39,000
C. $13,300
D. $20,400
Answer:
FCF years 1 is $43,000
NPV is $13,300
Explanation:
The free cash flow for the first year=net income+depreciation-Capital exp
net income is $13,000
depreciation is $30,000
capital exp for the first year is nil
the free cash flow=$13,000+$30,000+$0=$43,000
FCF year zero=-$90,000
the FCF for year1 applies to years 2 and 3 as well
NPV=-$90,000+$43,000/(1+12%)^1+$43,000/(1+12%)^2+$43,000/(1+12%)^3=
$13,278.74
The closest option is $13,300
Which of the following statements regarding changes in accounting principles is not true? Most changes in accounting principles are retroactively reported. Most changes in accounting principles are only reported in current periods when the principle change takes place. Changes in accounting principles are allowed when new principles are preferable to old ones. Consistency is one of the biggest concerns when a change in accounting principle is undertaken.
Answer:
Most changes in accounting principles are only reported in current periods when the principle change takes place.
Explanation:
Accounting principle can be defined as a general guideline to be followed by accountants or financial institutions when they record and report their financial transactions.
A change in an accounting principle involves a change in an accounting method used.
For instance, an accountant switching between First In, First Out (FIFO) to Last In, First Out (LIFO) method of inventory valuation or by using another depreciation method.
Additionally, an accounting principle should only be changed, if it's applicable to the accounting framework being used such as Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
Also, it is important to state in the footnotes of the financial statements a full disclosure to highlight the justification for the preferred change and financial implications of this change.
The following are true about the change in accounting principles;
1. Most changes in accounting principles are retroactively reported.
2. Changes in accounting principles are allowed when new principles are preferable to old ones.
3. Consistency is one of the biggest concerns when a change in accounting principle is undertaken.
Entry for Jobs Completed; Cost of Unfinished Jobs The following account appears in the ledger prior to recognizing the jobs completed in January: Work in Process Balance, January 1 $10,100 Direct materials 82,110 Direct labor 88,580 Factory overhead 46,560 Jobs finished during January are summarized as follows: Job 210 $40,920 Job 224 $47,740 Job 216 25,010 Job 230 84,120 a. Journalize the entry to record the jobs completed. If an amount box does not require an entry, leave it blank. b. Determine the cost of the unfinished jobs at January 31. $
Answer:
a.Entry to record the jobs completed.
Job 210 $40,920 (debit)
Job 224 $47,740 (debit)
Job 216 $25,010 (debit)
Job 230 $84,120 (debit)
Work - In Process $197,790 credit)
b. $29,550
Explanation:
a.Entry to record the jobs completed.
Recognize the Cost of Manufacture in the Jobs completed and De-recognize the costs from the Work In progress Account
b. the cost of the unfinished jobs
The cost of the unfinished jobs = Opening Work-In process + Costs Added during the year - Finished Jobs at the end
Opening Work-In process $10,100
Add Manufacturing Costs :
Direct materials $82,110
Direct labor $88,580
Factory overhead $46,560 $217,240
Less Finished Jobs :
Job 210 $40,920
Job 224 $47,740
Job 216 $25,010
Job 230 $84,120 ($197,790)
Cost of the unfinished jobs $29,550
A corporate CEO wished to relay good news about the prospect of a new technology being created, but was reluctant to do so. Instead, the CEO announces that the firm has decided to increase its dividend. This story is illustrative of what view of dividend relevancy
Answer:
Information signaling
Explanation:
Information signalling is defined as the various actions a firm takes that communicates it's financial outlook. For example if a firm releases a dividend policy it communicates the value of the firm's stock.
In this scenario the CEO announced increase in the firm's dividend. This will convey to investors that the company has a competitive advantage which will result in additional income, so dividends are being raised.
It is an indirect way of announcing good news about the prospect of a new technology being created.
when ups invested in a foreign tech startup , ally commerce inc ., to give ups greater access to online sales,it was exemplifying
Answer:
Direct Investment is the correct answer to the given question .
Explanation:
The Direct investment is also known as direct foreign investment. In the Direct investment People invested the money into the company that operates in the some other country.
The main objective of direct investment to get the powerful presence in the business processes also the lengthy-term existence in the different nation.As the UPS participated in the Ally Commerce Inc i.e a global tech startup, to offer it better exposure to online purchasing it is example of direct investment .esterday, Berryman Investments was selling for $50 per share. Today, the company completed a 7-for-2 stock split. If the total market value was unchanged by the split, what is the price of the stock today? Select the correct answer. a. $15.59 b. $12.99 c. $14.29 d. $16.89 e. $11.69
Answer:
The correct option is C, $14.29
Explanation:
A 7-2 stock split means that 7 shares now have the value of 2 shares held previously.
This simply means that a stockholder who had 2 shares before the stock split now has 7 shares.
The price of the share after the stock split the value of 2 shares before stock split divided by 7 shares i.e ($50*2)/7=$ 14.29
The correct option from the multiple choices is $ 14.29
In Year 1, Sandy and Chris have adjusted gross income of $200,000. During the year, they provided more than half of the support for both of their unmarried adult children, Megna and Britt. Both children live near the colleges they are attending. Megna is a 25-year-old full-time graduate student with no earned income. Britt is a 22-year-old part-time student with $15,000 earned income from a part-time job. What is the total amount of child tax credit (including credit for other dependents), if any, that Sandy and Chris can claim on their Year 1 joint income tax return
Answer: $1,000
Explanation:
Even though Megna and Britt are above the age of 17 and as such do not qualify for the child tax credit, they qualify for the Credit for Other Dependants.
Under this Credit, $500 can be deducted per dependant if certain conditions are fulfilled such as the dependents having a valid American identity number such as ATIN, ITIN, or SSN.
The dependants have to be your children or elderly parents.
With $500 in credit available per dependant and Sandy and Chris having 2 dependants in Megna and Britt, they can get a credit of $1,000 for the both of them.
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a retail shoe store. Issued 75,000 shares of common stock in exchange for $375,000 cash. Purchased office equipment at a cost of $68,750. $27,500 was paid in cash and a note payable was signed for the balance owed. Purchased inventory on account at a cost of $150,000. The company uses the perpetual inventory system. Credit sales for the month totaled $255,000. The cost of the goods sold was $127,500. Paid $3,250 in rent on the store building for the month of June. Paid $1,800 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2021. Paid $108,375 on account for the merchandise purchased in 3. Collected $51,000 from customers on account. Paid shareholders a cash dividend of $3,750. Recorded depreciation expense of $1,375 for the month on the office equipment. Recorded the amount of prepaid insurance that expired for the month. Required: Prepare journal entries to record each of the transactions and events listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Stridewell Corporation
Journal Entries:
Debit Cash $375,000
Credit Common Stock $375,000
To record issue of 75,000 shares of common stock.
Debit Office Equipment $68,750
Credit Cash Account $27,500
Credit Notes Payable $41,250
To record purchase of office equipment.
Debit Inventory $150,000
Credit Accounts Payable $150,000
To record purchase of inventory on account
Debit Accounts Receivable $255,000
Credit Sales Revenue $255,000
To record sales on account.
Debit Cost of Goods Sold $127,500
Credit Inventory $127,500
To record cost of goods under the perpetual inventory system.
Debit Rent Expense $3,250
Credit Cash Account $3,250
To record payment of rent for June.
Debit Prepaid Insurance $1,800
Credit Cash Account $1,800
To record payment for insurance.
Debit Accounts Payable $108,375
Credit Cash Account $108,375
To record payment on account.
Debit Cash Account $51,000
Credit Accounts Receivable $51,000
To record cash collection from customers.
Debit Dividends $3,750
Credit Cash Account $3,750
To record payment of cash dividend.
Debit Depreciation Expense $1,375
Credit Accumulated Depreciation $1,375
To record depreciation charge for the month.
Debit Insurance Expense $150
Credit Prepaid Insurance $150
To record expired insurance for the month.
Explanation:
a) Journal Entries show the accounts to be debited and credited in the general ledger. They are the first accounting records of business transactions and events.
b) Insurance Expense for June is equal to $1,800/12 = $150 per month. This amount is deducted from the Prepaid Insurance to reduce the balance.
Denominator hours for May 15,000 Actual hours worked during May 14,000 Standard hours allowed for May 12,000 Flexible budget fixed overhead cost $45,000 Actual fixed overhead costs for May $48,000 Danske Company had total underapplied overhead of $15,000. Additional information is as follows: Variable Overhead: Applied based on standard direct labor hours allowed $42,000 Budgeted based on standard direct labor hours 38,000 Fixed Overhead: Applied based on standard direct labor hours allowed $30,000 Budgeted based on standard direct labor hours 27,000 What is the actual total overhead for the period?
Answer:
$87,000
Explanation:
As per given data
Actual hours = 15,000 hours
Standard hours = 14,000 hours
Standard hours allowed = 12,000 hours
Flexible budget fixed overhead cost = $45,000
Actual fixed overhead costs = $48,000
Underapplied overhead = $15,000
Variable Overhead:
Applied based on standard direct labor hours allowed = $42,000
Budgeted based on standard direct labor hours = 38,000 hours
Fixed Overhead:
Applied based on standard direct labor hours allowed = $30,000
Budgeted based on standard direct labor hours = 27,000 hours
Total Overhead is the sum of all the variable and fixed overheads applied to the products and under / over applied overheads.
Applied overheads are the amount of overheads applied using actual activity and standard rate.
Actual Overheads = Applied variable overheads + Applied fixed overheads + under applied overheads
Placing values in the formula
Actual Overheads = $42,000 + $30,000 + $15,000
Actual Overheads = $87,000