Answer:
1. Notifies the materials manager to send materials to a production department--- material requisition
2. Holds indirect costs until assigned to production--- factory overhead account
3. Hold production costs until products are transferred from production to finished goods (or another department)--- goods in process inventory account
4. Standardizes partially completed units into equivalent completed units--- equivalent units of production
5. Holds costs of finished products until sold to customers--- finished goods inventory account
6. Describes the activity and output of a production department for a period--- process cost summary
7. Holds costs of materials until they are used in production or as factory overhead--- raw material inventory account
Explanation:
The complete question requires that we match the above to the options below
a. process cost summary
b. equivalent units of production
c. goods in process inventory account
d. raw material inventory account
e. material requisition
f. finished goods inventory account
g. factory overhead account
The topic of email is written in _________________.
a) CC Box
b) BCC Box
c) Subject Box
d) None of these
Answer:
the subject box is where you write your topic of email
Answer:
C. Subject box
Explanation:
The CC box is the carbon copy box. This is where you put other people's emails. They will receive a copy of the email, and they will be able to see who else received the copy.
The BCC box is the blind carbon copy box. This is also where you can put other people's emails. They will receive a copy, but they can't see the others who also got the copy, hence the name blind carbon copy.
The subject box is where you write the subject or topic of the email. This tells the recipients what the email is about, before they begin reading it.
Therefore, the best choice is C: subject box.
J-Chron's board of directors periodically meets with the CFO of the company. The CFO reports on the financial status of a company project. The board asks whether the project is compliant with legally-required accounting principles, but asks no other questions about the project, such as how the project supports the company's mission and strategy. Which of the following is true? 1. The board is meeting legal requirements but not its duty of care to shareholders. 2. The board is fully meeting its duty of care to shareholders. 3. The board is not legally required to meet any duty of care requirements. 4. The board is not meeting its duty of care to shareholders.
Answer:
1. The board is meeting legal requirements but not its duty of care to shareholders.
Explanation:
During a Board of Directors meeting with CFO all conversations will be about strengthening the company and the organization's shareholders. Shareholders are also considered the entity's owners, so it is very important to comply with all the legal provisions in addition to increasing shareholders.
In this given situation, the board meets with CFO and asks in compliance with accounting standards, but asks little more about how the project aims to achieve the company's mission and strategy. Mission and plan describe the company's vision alongside the company's owners(shareholders) vision and benefits.
hence, the correct option is 1.
The market and Stock J have the following probability distributions: Probability rM rJ 0.3 15% 20% 0.4 9 5 0.3 18 12 a. Calculate the expected rates of return for the market and Stock J. b. Calculate the standard deviations for the market and Stock J.
Answer: The answer is provided below
Explanation:
The expected rates of return for the market = 13.5
the expected rates of return for the market and Stock J = 11.6
The standard deviations for the market = 3.85
The standard deviations for Stock J = 6.22
The explanation has been attached.
A North Face retail store in Chicago sells 500 jackets each month. Each jacket costs the store $100 and the company has an annual holding cost of 25 percent.The fixed cost of a replenishment order (including transportation) is $100. The store currently places a replenishment order every month for 500 jackets. What is the annual holding and ordering cost? On average, how long does a jacket spend in inventory? If the retail store wants to minimize ordering and holding cost, what order size do you recommend? How much would the optimal order reduce holding and ordering cost relative to the current policy?
Answer:
1) What is the annual holding and ordering cost?
annual ordering cost = $100 x 12 = $1,200
annual holding cost = ($100 x 25%) x [500 x 1/2(average inventory)] = $6,250
total $7,450
2) On average, how long does a jacket spend in inventory?
= 30 days / 2 = 15 days
3) If the retail store wants to minimize ordering and holding cost, what order size do you recommend?
economic order quantity (EOQ) = √[(2 x annual demand x order cost) / annual holding cost per unit]
EOQ = √[(2 x 6,000 x 100) / 25] = √48,000 = 219.09 units ≈ 219 units
4) How much would the optimal order reduce holding and ordering cost relative to the current policy?
EOQ = 219
total number of orders = 6,000 / 219 = 27.4 per year
average inventory = 219 / 2 = 109.5 units
annual ordering cost = $100 x 27.4 = $2,740
annual holding cost = ($100 x 25%) x 109.5 = $2,737.50
total $5,477.50
annual savings = $7,450 - $5,477.50 = $1,972.50
Blossom Corp. has collected the following data concerning its maintenance costs for the past 6 months.
Units Produced Total Cost
July 18,070 $41,663
August 32,128 48,192
September 36,144 55,220
October 22,088 44,580
November 40,160 74,798
December 38,152 62.248
Compute the variable cost per unit using the high-low method. (Round answer to 2 decimal places, e.g. 2.25.)
Variable cost per unit $ e
Compute the fixed cost elements using the high-low method. Fixed costs $
Answer:
Variable cost per unit = $1.5 per unit
Fixed cost = $14,558
Explanation:
Variable cost per unit
= cost at high activity - cost at low activity/High activity -low activity
=$(74,798- $41,663) / (40,160 -18,070) units
= $1.5 per unit
Fixed cost
Total fixed cost = cost at high activity - ( vc per unit × high activity)
= 74,798 - (1.5 × 40,160)
= $14,558
Variable cost per unit = $1.5 per unit
Fixed cost = $14,558
Consider the following scenario:
Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream into a lake that has become thick with algae and polluted due to the minerals in the waste matter. The local office of a nonprofit environmental organization successfully lobbies state regulators to stop the farm's pollution.
1. Which of the following types of private solutions to the externality of pollution has occurred in this case?
Integration of different types of businesses
Contracts
Moral codes and social sanctions
Charities
2. It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when communications barriers or social customs are important enough relative to the potential gains involved that -------.
Answer: 1. Charities
2. Government action the only viable solution
Explanation:
Externalities are the resultant additional effects that are experienced by others as a result of actions by an economic agent who does not bear the extra aformentioned cost or benefit that their actions bring about.
1. Private Solutions to Externalities include any solution independent of the government.
The above Private Solution is Charities because it was a Non-profit Environmental Organization that dealt with the lobbying for the reduction to be acted upon by state agents. These types of organisations are usually Charities.
2. If it is shown that the potential gains are viewed to be quite high as in this case then negotiating with the polluters might not work. In this case Government Intervention is needed to force the polluters to adhere to rules and regulations.
Statement of Cash Flows—Indirect Method
The comparative balance sheet of Harris Industries Inc.
at December 31, 20Y4 and 20Y3, is as follows:
Dec. 31, 20Y4 Dec. 31, 20Y3
Assets
Cash $443,240 $360,920
Accounts receivable (net) 665,280 592,200
Inventories 887,880 1,022,560
Prepaid expenses 31,640 25,200
Land 302,400 302,400
Buildings 1,713,600 1,134,000
Accumulated depreciation—buildings (466,200) (414,540)
Machinery and equipment 781,200 781,200
Accumulated depreciation— (214,200) (191,520)
machinery and equipment
Patents 106,960 112,000
Total assets $4,251,800 $3,724,420
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)$837,480 $927,080
Dividends payable 32,760 25,200
Salaries payable 78,960 87,080
Mortgage note payable, due in nine years 224,000 0
Bonds payable 0 390,000
Common stock, $5 par 200,400 50,400
Paid-in capital: Excess of issue price 366,000 126,000
over par—common stock
Retained earnings 2,512,200 2,118,660
Total liabilities and stockholders' equity $4,251,800 $3,724,420
An examination of the income statement and the accounting records revealed the following additional information applicable to 20Y4:
Net income, $524,580.
Depreciation expense reported on the income statement: buildings, $51,660; machinery and equipment, $22,680.
Patent amortization reported on the income statement, $5,040.
A building was constructed for $579,600.
A mortgage note for $224,000 was issued for cash.
30,000 shares of common stock were issued at $13 in exchange for the bonds payable.
Cash dividends declared, $131,040.
Required:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments
Answer:
Statement of Cash Flows
Cash flow From Operating Activities
Net income $524,580
Adjustment for Non Cash Items :
Depreciation expense - buildings $51,660
Depreciation expense - machinery and equipment $22,680
Patent amortization $5,040
Adjustments for Changes in Working Capital Items :
Increase in Accounts receivable -$73,080
Decrease in Inventories $134,680
Increase in Prepaid expenses -$6,400
Decrease in Accounts payable -$89,600
Net Cash From Investing Activities $569,540
Cash flow From Investing Activities
Buildings -$579,600
Net Cash From Investing Activities -$579,600
Cash flow From Financing Activities
Mortgage Note $224,000
Dividends Paid -$123,480
Net Cash From Financing Activities $100,520
Movement during the year $82,320
Cash and Cash Equivalents at beginning of the year $360,920
Cash and Cash Equivalents at end of the year $443,240
Explanation:
For Determination of Dividends Paid, open a Dividends Paid Account as follows :
Debit:
Cash (Balancing figure) 123,480
Balance c/d 32,760
Totals 156,240
Credit
Balance b/d 25,200
Dividends Declared 131,040
Totals 156,240
Elisha Levi believes that a flexible, customized approach to selling is best when dealing with highly complex products or services. She typically performs an in-depth study of a prospect's needs before developing a well-planned presentation. Levi obviously favors the
Answer: problem-solution
Explanation:
Here is the complete question:
Elisha Levi believes that a flexible, customized approach to selling is best when dealing with highly complex products or services. She typically performs an in-depth study of a prospect's needs before developing a well-planned presentation. Levi obviously favors the ___________ presentation method.
a. Memorized
b. Stimulus response
c. Problem-solution
d. Need satisfaction
e. Formula
The problem-solution presentation is a form of presentation that is flexible and also a customized approach whereby the presenter will give an in-depth analysis of the needs of the prospect. It should also be noted that the problem solution presentation requires a presentation that has been well-planned. This method is good for negotiations and complex products.
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash disbursements (excluding cash disbursements for loan principal and interest payments) for the first three months of next year. Cash Receipts Cash DisbursementsJanuary $525,000 $475,000 February 400,000 350,000 March 450,000 525,000
According to a credit agreement with the company’s bank, Kayak promises to have a minimum cash balance of $30,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at an annual interest rate of 12%, paid on the last day of each month. The interest is computed. based on the beginning balance of the loan for the month. The company repays loan principal with available cash on the last day of each month. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets for each of the first three months of next year
Answer:
Kayak Co.
Cash Budget
January February March
Cash inflows: $525,000 $400,000 $450,000
Cash outflows: ($475,000) ($350,000) ($525,000)
Monthly cash flow: $50,000 $50,000 ($75,000)
Monthly interests: ($600) ($106) $0
Initial cash balance: $30,000 $30,000 $69,294
Ending cash balance: $79,400 $79,894 ($5,706)
Required bank loan: $0 $0 $35,706
Payment of bank loan: ($49,400) ($10,600) $0
Total $30,000 $69,294 $30,000
Explanation:
Cash Receipts Cash Disbursements
January $525,000 $475,000
February $400,000 $350,000
March $450,000 $525,000
A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.
BSU Inc. wants to purchase a new machine for $40,070, excluding $1,200 of installation costs. The old machine was bought five years ago and had an expected economic life of 10 years without salvage value. This old machine now has a book value of $2,000, and BSU Inc. expects to sell it for that amount. The new machine would decrease operating costs by $8,500 each year of its economic life. The straight-line depreciation method would be used for the new machine, for a six-year period with no salvage value. Click here to view PV table.
(a) Determine the cash payback period. (Round cash payback period to 2 decimal places, e.g. 10.53.) Cash payback period years
(b) Determine the approximate internal rate of return. (Round answer to 0 decimal places, e.g. 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Internal rate of return (c) Assuming the company has a required rate of return of 7%, determine whether the new machine should be purchased. The investment be accepted.
Answer:
4.62 years
8.02%
Explanation:
The payback period is the number of years it would take the investment to recoup itself.
Payback=initial capital outlay/annual cash flow
initial capital outlay is the cost of the new machine plus installation cost minus the salvage value of the old machine.
initial capital outlay=$40,070+$1,200-$2,000=$ 39,270.00
Annual cash flow is the reduction in operating costs of $8,500 per year
payback =$ 39,270.00/$8,500.00=4.62 years
The internal rate of return is computed in the attached
You purchase both potatoes and gasoline regularly. Your income decreases, and you purchase less gasoline. This means that: Gasoline is a normal good. Potatoes are inferior goods. Gasoline has a negative substitution effect. Gasoline is an inferior good.
Answer:
Gasoline is a normal good
Explanation:
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls
Inferior goods are goods whose demand falls when income rises and increases when income falls.
Because the demand for gasoline falls when income falls, gasoline is a normal good.
I hope my answer helps you
Lipman Auto Parts, a family-owned auto parts store, began January with $10,300.00 in cash. Management forecasts that collections from credit customers will be $11,400.00 in January and $14,800.00 in February. The store is scheduled to receive $5,000.00 in cash on a business note receivable in January. Projected cash payments include inventory purchases ($13,000.00 in January and $13,600.00 in February) and operating expenses ($2,700.00 each month). Lipman Auto Parts’ bank requires a $10,000.00 minimum balance in the store’s checking account. At the end of any month when the account balance dips below $10,000.00, the bank automatically extends credit to the store in multiples of $1,000.00. Lipman Auto Parts borrows as little as possible and pays back loans in quarterly installments of $2,000.00, plus 4 percent interest on the entire unpaid principal. The first payment occurs three months after the loan.
Prepare Lipman Auto Parts
Answer: The answer has been attached below
Explanation:
The question says we should prepare Lipman Auto Parts cash budget for January and February.
A cash budget is a budget of expected cash receipts and the disbursements during a period. The cash inflows and cash outflows include revenues collected, the expenses paid, and the loans receipts and payments. A cash budget is an estimated projection of a company's cash position in the future.
Lipman Auto Parts cash budget for January and February has been solved and attached.
In a closed system one kilogram of carbon dioxide (CO_2) is expanded reversibly from 30 degree C and 200 kPa to 100 kPa pressure. If the expansion is polytropic with n = 1.27, determine the total work, the change in total internal energy, and the total heat transferred in [kJ], Note that for CO_2, R = 188.9 J/kg.K and c_v = 655 J/kg.K. W = -29.05 kJ, DeltaU = -27.19 kJ, Q = 1.860 kJ
Answer:
the total work W = 29.05 kJ
the change in total internal energy is [tex]\mathbf{\Delta U = - 27.19 \ kJ}[/tex]
the total heat transferred in [kJ] is Q = 1.860 kJ
Explanation:
Given that
mass of carbon dioxide in the closed system = 1 kg
Temperature [tex]T_1= 30 ^0 C[/tex] = (273+30 ) K = 303 K
Pressure [tex]P_1 = \ 200 \ kPa[/tex]
Pressure [tex]P_2 = 100 \ kPa[/tex]
polytropic expansion n = 1.27
Note that we are also given the following data set:
R = 188.9 J/kg.K
c_v = 655 J/kg.K
So; for a polytropic process ; [tex]PV^{1.27} = c[/tex]
[tex]\dfrac{T_2}{T_1}= ( \dfrac{V_1}{V_2})^{n-1} = (\dfrac{P_2}{P_1})^{\frac{n-1}{n}[/tex]
[tex]T_2 = T_1 [\dfrac{P_2}{P_1}]^{\frac{n-1}{n}[/tex]
[tex]T_2 = 303 [\dfrac{100}{200}]^{\frac{1.27-1}{1.27}[/tex]
[tex]T_2 = 261.48 \ K[/tex]
Since the system does not follow the first order of thermodynamics; To calculate the total work by using the expression:
[tex]W = \dfrac{P_1V_1-P_2V_2}{n-1} = \dfrac{mR(T_1-T_2)}{n-1}[/tex]
[tex]W = \dfrac{1*188.9(303-261.48)}{1.27-1}[/tex]
W = 29048.62222 J
W = 29.05 kJ
Thus, the total work W = 29.05 kJ
The change in internal energy can be expressed by the formula:
[tex]\Delta U = mc_v (T_2-T_1)[/tex]
[tex]\Delta U = 1*655(261.48-303)[/tex]
[tex]\Delta U = -27195.6 \ J[/tex]
[tex]\mathbf{\Delta U = - 27.19 \ kJ}[/tex]
Hence; the change in total internal energy is [tex]\mathbf{\Delta U = - 27.19 \ kJ}[/tex]
Finally; to determine the total heat transferred in [kJ]; we go by the expression for the first order of thermodynamics which say:
Total Heat Q = ΔU + W
Q = (-27.19 + 29.05)kJ
Q = 1.860 kJ
Hence; the total heat transferred in [kJ] is Q = 1.860 kJ
Big data analytics programs (analyzing massive data sets to make decisions) use gigantic computing power to quantify trends that would be beyond the grasp of human observers. As this use of this quantitative analysis increases, do you think it may decrease the "humanity of production" in organizations? Why?
Answer:
It will not decrease the humanity of production.
Explanation:
Big data analytics is useful for unraveling hidden patterns and correlations. Big data analytics is sometimes linked to be a direct descendant of Frederick Winslow Taylor’s scientific management and recently it is the most recent iteration of the quantitative approach to management.
Big data is used in management in activities that includes humans or individuals therefore it will not reduce the humanity of production in organizations.
Mario and Johnny want to start a business. They have very little capital. They are new partners and largely unfamiliar with each other’s management practices. They are happy, however, to be organizing a business together in order to avoid full liability for the business. Which detail of this situation is a good reason for Mario and Johnny to create a general partnership?
A) Unfamilar with each other's managment practices
B) Avoiding full liability
C) Little Capital
D) Sharing profits
Answer:
All Options ..... if not possible then D) Sharing profits
Explanation:
A General Parnership refers to a business arrangement in which the individuals agree to share all the as assets, profits, and financial and legal liabilities of a jointly-owned business. Therefore in this scenario all of the options listed are valid reasons to want to create a general partnership between Mario and Johnny, but if only one option can be chosen then the best reason would be Sharing profits. That is because the entire reason for starting a business is to make money, and thus protecting your entitled profits is the most important.
In game theory, a Nash equilibrium occurs when: Group of answer choices Both players are incented to "cheat" to improve their positions Neither player can improve their position Nether player has a dominate strategy Two or more players collude on pricing
Answer:
Neither player can improve their position
Explanation:
Game theory is the method of modeling the strategic engagement of multiple players in a situation that involves rules and results.
Nash equilibrium is a term of game theory in which the optimum result of a game is one in which no participant has an incentive to diverge from his selective strategy after examining the selection of an opponent
Therefore according to the given situation, the second option is correct
Pickup Company acquired 100 percent of the voting common shares of Sedan Corporation by issuing bonds with a par value and fair value of $200,000. Immediately prior to the acquisition, Pickup reported total assets of $600,000, liabilities of $370,000, and stockholders’ equity of $230,000. At that date, Sedan reported total assets of $500,000, liabilities of $300,000, and stockholders’ equity of $200,000. Included in Sedan’s liabilities was an account payable to Pickup in the amount of $50,000, which Pickup included in its accounts receivable.
Based on the preceding information, what amount of total assets did Pickup report in its balance sheet immediately after the acquisition?
a. 1,100,000
b. 1,000,000
c. 800,000
d. 1,600,000
Answer:
c. $800,000
Explanation:
Relevant data provided
Beta reported total assets = $600,000
Fair value of investment = $200,000
The computation of total assets is shown below:-
Total assets did beta report = Beta reported total assets + Fair value of investment
= $600,000 + $200,000
= $800,000
Therefore for computing the total assets did beta report we simply added the beta reported total assets with fair value of investment.
Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 27%. The T-bill rate is 7%.
You estimate that a passive portfolio invested to mimic the S&P 500 stock index yields an expected rate of return of 13% with a standard deviation of 25%.
What is the slope of the CML? (Round your answer to 2 decimal places.)
Answer:
The slope of the CML = (13% - 7%)/25% = 0.24
Explanation:
Given that:
expected rate of return of 17%
standard deviation of 27%.
The T-bill rate is 7%.
You estimate that a passive portfolio invested to mimic the S&P 500 stock index yields an expected rate of return of 13% with a standard deviation of 25%.
The slope of the CML is
Slope of the CML = (Expected return of Market - Risk free return)/Standard deviation of market
The slope of the CML = (13% - 7%)/25% = 0.24
= (0.13 - 0.07) /0.25
= 0.24
Peter Plaintiff’s son is killed while working overseas for a United States corporation that deals in proprietary petroleum extraction and production. Peter Plaintiff brings a wrongful death lawsuit on behalf of his son’s estate against this corporation and requests a wide scope of business documents related to the corporation and its overseas operations under the Freedom of Information Act (FOIA). What defenses, if any, does the corporation have against revealing the requested information under the FOIA?
Answer and Explanation:
The defenses or protections the business has been against releasing the relevant documents underneath the FOIA include whether Peter Plaintiff's required documentation is private and confidential as well as the business is not allowed to release this detail to anyone outside the organization.Because the statement is available nondisclosure, the company has to safeguard and defend this relevant data, and therefore not start sharing it with someone outside the establishment.Which is not an example of an intangible asset?
1_A trademark
2_A computer
3_A patent
4_A copyright
An intangible asset excludes a computer. Thus the correct answer is (2).
What is an intangible asset?An intangible asset is referred to as a thing that an individual is unable to see or touch. An intangible asset is a lack of physical appearance. One can not transfer them from one location to another.
One can able touch or see a personal computer so it is not an intangible asset. Therefore, option (2) is appropriate.
Learn more about intangible assets, here:
https://brainly.com/question/14892188
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You have $6,600 to deposit. Regency Bank offers 12 percent per year compounded monthly (1.0 percent per month), while King Bank offers 12 percent but will only compound annually. How much will your investment be worth in 17 years at each bank
Answer:
Instructions are below.
Explanation:
Giving the following information:
Deposit= $6,600
Regency Bank:
12 percent per year compounded monthly (1.0 percent per month)
King Bank:
12 percent but will only compound annually.
Number of years= 17
To calculate the final value, we need to use the following formula for each bank:
FV= PV*(1+i)^n
Regency Bank:
n=17*12= 204
FV= 6,600*(1.01^204)
FV= $50,246.3
King Bank:
FV= 6,600*(1.12^17)
FV= $45,315.87
You have $17,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with an expected return of 10 percent. Assume your goal is to create a portfolio with an expected return of 12.15 percent. How much money will you invest in Stock X and Stock Y
Answer:
For X = $7,130
For Y = $9,690
Explanation:
The calculation of investment in stock X and stock Y is shown below:-
We assume the weight of investment in stock x = x
Expected return = Weight of x × Return of x + Weight of y × Return of y
12.15 = x × 15 + (1 - x) × 10
12.15 = 15x + 10 - 10x
x = (12.15 - 10) ÷ 5
x = 43%
Investment in stock Y = 100 - 43
= 57%
Now,
Dollar Investment in x = Stock investment × Expected return
= $17,000 × 43%
= $7,130
Dollar Investment in x = Stock investment × Expected return
= $17,000 × 57%
= $9,690
So, we have applied the above formula.
The balance sheet for Campbell Corporation follows:________.
Current assets $238,000
Long-term assets (net) 756,000
Total assets $994,000
Current liabilities $156,000
Long-term liabilities 444,000
Total liabilities 600,000
Common stock and retained earnings 394,000
Total liabilities and stockholders’ equity $994,000
Required Compute the following. (Round ""Ratios"" to 1 decimal place.)
a. Working Capital?
b. Current Ratio?
c. Debt to assets Ratio?
d. Debt to equity Ratio?
Answer:
a.
$82,000
b.
1.53
c.
0.6
d.
1.52
Explanation:
a.
Working capital is the net of current assets and current liabilities.
Working Capital = Current Asset - Current Liabilities
Placing values in the formula
Working Capital = $238,000 - $156,000
Working Capital = $82,000
b.
Current ratio is the ratio of current asset and liabilities.
Current Ratio = Current Assets / Current Liabilities
Placing values in the formula
Current Ratio = $238,000 / $156,000
Current Ratio = 1.53
c.
Debt to asset ratio is the ratio of debt to total assets of the company.
Debt to assets Ratio = Total Liabilities / Total Assets
Placing values in the formula
Debt to assets Ratio = $600,000 / $994,000
Debt to assets Ratio = 0.60
d.
Debt to equity ratio is the ratio of debt to equity of the company.
Debt to equity Ratio = Total Liabilities / equity
Placing values in the formula
Debt to equity Ratio = $600,000 / $394,000
Debt to equity Ratio = 1.52
Charlie the cat stole $20 from his cat mom. He's planning on spending the money he stole on catnip (Q1) and dental treats (Q2). Dental treats are more expensive at $3 per treat, but catnip is pretty cheap at $0.50 per pouch. What will Charlie's budget constraint look like?
Answer:
$ 20= Q1 (0.5 ) + Q3( 3)
Explanation:
Total Amount = $ 20
Dental treats Q2= $ 3
Catnip Q1= $ 0.50
Maximum no of Dental Treats he can get is = $ 20 /$3= 6.66
If he gets maximum dental treats i.e 6 , $18 will be spent (3*6)
He will be left with = $ 20- $ 18= $ 2
The maximum no of catnip he can get after buying 6 dental treats from $ 2= $ 2/$0.5= 4
Let Q1 denote the catnip and Q3 denote the dental treats then the equation would be like
$ 20= Q1 (0.5 ) + Q3( 3)
So putting the values for q1=0,1,2,3,4,5,6,7,8,9,10
for values 0-4 Q3 will be $ 18
for values 4-6 Q3 will be $ 15
for values 6-8 Q3 will be $ 12
From values Zero on wards the budget constraint will be a slope but after value 4 the change will be after every two points.
The slope will look like the one given in the diagram.
On January 1, 2019, Nash Corporation granted 9,600 options to key executives. Each option allows the executive to purchase one share of Nash’s $5 par value common stock at a price of $21 per share. The options were exercisable within a 2-year period beginning January 1, 2021, if the grantee is still employed by the company at the time of the exercise. On the grant date, Nash’s stock was trading at $24 per share, and a fair value option-pricing model determines total compensation to be $438,000.
On May 1, 2021, 7,440 options were exercised when the market price of Culver’s stock was $30 per share. The remaining options lapsed in 2023 because executives decided not to exercise their options.
Prepare the necessary journal entries related to the stock option plan for the years 2019 through 2023.
Answer:
Dec 31 2019
Dr Compensation Expenses 219,000
Cr Paid in Capital- Stock Options 219,000
Dec 31 2020
Dr Compensation Expenses 219,000
Cr Paid in Capital- Stock Options 219,000
Dec 31 2021
Dr Cash 256,200
Dr Paid in Capital- Stock Options 339,450
Dr Common Stock 37,200
Cr Paid in capital in excess of par common stock 632,850
Dec 31, 2023
Dr Paid in capital stock options 98,550
Paid in capital Expired Stock Options 98,550
Explanation:
Nash Corporation
Dec 31 2019
Dr Compensation Expenses 219,000
Cr Paid in Capital- Stock Options 219,000
( 438,000/2 years)
Dec 31 2020
Dr Compensation Expenses 219,000
Cr Paid in Capital- Stock Options 219,000
Dec 31 2021
Dr Cash 256,200
(219,000+37,200)
Dr Paid in Capital- Stock Options 339,450
Dr Common Stock 37,200
Cr Paid in capital in excess of par common stock 632,850
Dec 31, 2023
Dr Paid in capital stock options 98,550
(438,000×22.5%)
Paid in capital Expired Stock Options 98,550
Computation of Paid in capital stock options
438,000×77.5%= $339,450
Common stock 7,440 X 5 per share
= 37,200
Stock options redeemed 7,440/9,600= 77.5%
A man works for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: splishy splashies, frizzles, and kipples. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, a man knows that complements are typically consumed together while substitutes can take the place of other goods.
Run-of-the-Mills provides man's marketing firm with the following data: When the price of splishy splashies decreases by 5%, the quantity of frizzles sold increases by 4% and the quantity of kipples sold decreases by 6%. A man's job is to use the cross-price elasticity between splishy splashies and the other goods to determine which goods to a man marketing firm should advertise together.
Complete the first column of the following table by computing the cross-price elasticity between splishy splashies and frizzles, and then between splishy splashies and kipples. In the second column, determine if splishy splashies are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating should be recommended marketing with splishy splashies.Relative to Splishy Splashies Recommend Marketing with Splishy Splashies
Cross-Price Elasticity of Demand Complement or Substitute
Frizzles _____ _____ _____
Kipples _____ _____ _____
Answer and Explanation:
According to the given situation, when the amount of splishy splashies decrease by 5%, quantity of frizzles increases by 4%.
So, The cross price elasticity of frizzles relative to splishy splashies = Percentage change in quantity demand for frizzles ÷ Percentage change in price for splishy splashies
= 4 ÷ -5
= -0.80
Now,
Cross-price elasticity between splishy splashies and kipples = Percentage change in quantity demand for Kipples ÷ Percentage change in price for splishy splashies
= -6% ÷ -5%
= 1.20
b. Since there is negative cross-price elasticity between splishy splashies and frizzles, these products are complementary.
The elasticity of the cross-price between splendid splashies and kipples is positive, these goods being substitutes.
c. Here, I would therefore recommend Raskels marketing, since these two are used together.
The required Table are as shown below:-
Particulars Cross-Price Elasticity Complements Recommended
of Demand or Substitute Marketing with
splishy splashies
Frizzles 0.80 Complements Yes
Kipples 1.20 Substitute No
13) Baxter & Baxter has total assets of $710,000. There are 45,000 shares of stock outstanding with a market value of $28 a share. The firm has a net profit margin of 7.1 percent and a total asset turnover of 1.29. What is the price-earnings ratio?
Answer:
19.38
Explanation:
Baxter & Baxter
Market value share/ Percentage of profit margin ×(Total assets ×Total asset turnover)/Outstanding shares
Where:
Market value shares=28
Percentage of profit margin =71%
Total assets =710,000
Total asset turnover=1.29
Outstanding shares =45,000
Hence:
Price-earnings ratio =
$28/[0.071 ×($710,000 ×1.29)]/45,000
=19.38
Some construction company has bought a product for $200,000 with a life of three years, and a salvage value of $10,000. Tabulate depreciation and book value using MACRS, Double Declining Balance and straight-line methods. Which method gives the company the largest depreciation after two years?
Answer:
The method that gives the company the largest depreciation after two years is MACRS.
Explanation:
According to given data Under MACS depreciation would be provided for 4 years and the salvage value of the asset would be reduced to zero .
Year depreciation rate Deprecation Book value at the end of the year
1 33.33% 66660 (33.33 % of 200000) 133340
2 44.45% 88900 (44.45 % of 200000) 44440
3 14.81% 29620 (14.81 % of 200000) 14820
4 7.41% 14820 (7.41 % of 200000) 0
Straight line method
The amount of depreciation remains same for three years. The depreciation amount is calculated as
=Original cost- Salvage value / life
= 200000-10000 /3
= 63333.3 $
Year Depreciation Book value at the end of the year
1 63333.33 136666.7
2 63333.33 73333.34
3 63333.33 10000.01
Double declining balance method
Under this method the depreciation is charged at double the rate of straight line method .
Depreciation rate under SLM = 100% / 3 = 33.33 %
DDB method rate = 2* 33.33% = 66.66%
Year Book value at the beginning Depreciation Book value at the end
1 200000 133320 (66.66% of 200000) 66680
2 66680 44448.89 (66.66% of 66680) 22231.11
3 22231.11 14819.26 (66.66% of 22231.11) 7411.853
The largest depreciation is given by MACRS method after two years which is 88900
In January 2020, the management of Sheridan Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred. Feb. 1 Purchased 500 shares of Muninger common stock for $27,500. Mar. 1 Purchased 700 shares of Tatman common stock for $17,500. Apr. 1 Purchased 40 $1,050, 6% Yoakem bonds for $42,000. Interest is payable semiannually on April 1 and October 1. July 1 Received a cash dividend of $0.50 per share on the Muninger common stock. Aug. 1 Sold 167 shares of Muninger common stock at $65 per share. Sept. 1 Received a $1 per share cash dividend on the Tatman common stock. Oct. 1 Received the semiannual interest on the Yoakem bonds. Oct. 1 Sold the Yoakem bonds for $41,000. At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.Prepare the adjusting entry at December 31, 2020, to report the investment securities at fair value. All securities are considered to be trading securities. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer:
December 31, 2020, fair value adjustment
Dr Investment in Muninger stocks 333
Cr Unrealized gain - Investment in Muninger stocks 333
December 31, 2020, fair value adjustment
Dr Unrealized loss - Investment in Tatman stocks 700
Cr Investment in Tatman stocks 700
Explanation:
Feb. 1 Purchased 500 shares of Muninger common stock for $27,500.
Dr Investment in Muninger stocks 27,500
Cr Cash 27,500
Mar. 1 Purchased 700 shares of Tatman common stock for $17,500.
Dr Investment in Tatman stocks 17,500
Cr Cash 17,500
Apr. 1 Purchased 40 $1,050, 6% Yoakem bonds for $42,000. Interest is payable semiannually on April 1 and October 1.
Dr Investment in Yoakem bonds 42,000
Cr Cash 42,000
July 1 Received a cash dividend of $0.50 per share on the Muninger common stock.
Dr Cash 250
Cr Dividend revenue 250
Aug. 1 Sold 167 shares of Muninger common stock at $65 per share.
Dr Cash 10,855
Cr Investment in Muninger stocks 9,185
Cr Gain on sale 1,670
Sept. 1 Received a $1 per share cash dividend on the Tatman common stock.
Dr Cash 700
Cr Dividend revenue 700
Oct. 1 Received the semiannual interest on the Yoakem bonds.
Dr Cash 1,260
Cr Interest revenue 1,260
Oct. 1 Sold the Yoakem bonds for $41,000.
Dr Cash 41,000
Dr Loss on sale 1,000
Cr Investment in Yoakem bonds 42,000
At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.
Answer:
Sheridan Company
Adjusting Entries for Trading Investments at Fair Value:
December 31, 2020:
Debit Investment in Muninger $333
Credit Gain on Investment $333
To record the $1 per share gain on investment (500 - 167 shares).
Debit Loss on Investment $700
Credit Investment in Tatma $700
To record the $1 per share loss on investment (700 shares).
Explanation:
Investments held for trading are short-term investments in debt and stock securities. They are accounted for at fair value.
This implies that at the end of each reporting period, the difference between the book value of the investment and the fair value is adjusted either as gain or loss on investment. This adjusting entry increases or reduces the book value of the investment to its fair value. The gain or loss remains an unrealized gain or loss until the investment is sold.
Quality Jewelers uses the perpetual inventory system. On April 2, Quality sold merchandise for $50,000 to a customer on account with terms of 3/15, n/30. The allowances and returns on this sale amounted to $3,000 and $9,000, respectively. The cost of goods sold was $20,000. On April 20, Quality received payment from the customer. Calculate the amount of gross profit.
Answer:
The Gross profit is $18,000
Explanation:
In order to calculate the amount of gross profit we would have to make the following calculation:
Gross Profit = Sale - Allowance - Sales Returns - Discount - Cost of Goods Sold
Sale=$50,000
Allowance=$3,000
Sales Returns=$9,000
Cost of Goods Sold =$20,000
Discount. As the payment is done after the expiry of 15 days is discount is 0
Gross Profit= $50,000 - $3,000 - $9,000 - 0 - $20,000
Gross Profit= $18,000
The Gross profit is $18,000