Answer:
Stockholders' equity = $ 2,175,000.
Explanation:
Stockholders' equity is also the corporation's total book value. In other word, it is the amount of difference between the Corporation Asset and its liability
Stockholders' equity for Oriole company can be derived using : Common stock + Retained earnings - Treasury stock
Stockholders' equity = 1,610,000 + 782,000 - 217,000
Stockholders' equity = $ 2,175,000.
We also need to know that deferred income taxes is not a component of stockholders' equity thus it will not be considered in stockholders' equity calculation.
Correct answer is $ 21,75,000.
Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $243,000 and 8,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $244,200 and actual direct labor-hours were 5,700.The applied manufacturing overhead for the year was closest to:________
a. 229586
b. 234600
c. 242006
d. 236854
Answer:
Allocated overhead= $173,137.5
Explanation:
Giving the following information:
Estimated overhead= $243,000
Estimated direct-labor hours= 8,000
Actual direct labor-hours were 5,700.
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 243,000/8,000
Predetermined manufacturing overhead rate= $30.375 per direct labor hour
Now, we can allocate overhead based on actual direct labor hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated overhead= 30.375*5,700= $173,137.5
In Appellia, it takes 10 units of resources to increase its output of sugar from 12 tons to 13 tons, but 11 units of resources to increase output from 13 tons to 14 tons, and 12 units of resources to increase output from 14 tons and 15 tons, and so on. The need for increasing resources is an example of:________.
a. comparative advantage.
b. diminishing returns to specialization.
c. absolute advantage.
d. mercantilism Porter's diamond model.
Answer:
b. diminishing returns to specialization.
Explanation:
Diminishing returns is also called diminishing productivity. It states that as additional unit of input is used in production it will get to a stage where more of input will be required to maintain output levels.
If the same level of input is used it will result in reduction in output over time.
This is exemplified in this secanrio where it takes 10 units of resources to increase its output of sugar from 12 tons to 13 tons, but 11 units of resources to increase output from 13 tons to 14 tons, and 12 units of resources to increase output from 14 tons and 15 tons.
It takes more input to increase output by 1 ton
Assume you can buy 52 British pounds with 100 Canadian dollars. How much profit can you earn on a triangle arbitrage given the following rates if you start out with 100 U.S. dollars?
Answer:
$374.46
Explanation:
Incomplete question. However, I inferred the rates where; CAD/USD=1.35, EUR/USD=1.8305. Thus, using this formular we calculate the profit to be made
=$100 ×(C$1.35 ÷$1) ×(£100 ÷C$52) ×($1.8305 ÷$1)] - $100 = $374.46
In contrast to a differentiator, a cost-leader will:
a. focus its research and development on process technologies to improve efficiency.
b. charge a premium price for its products and services.
c. avoid an organizational structure that relies on strict budget controls.
d. build an organizational culture where creativity and customer responsiveness thrive.
Answer: a. focus its research and development on process technologies to improve efficiency.
Explanation:
A Cost Leadership strategy entails reducing the costs associated with production to the point that you are the most efficient producer in the industry. By reducing cost, the company is able to see higher profitability margins and could be able to lower sales prices thereby capturing greater market share.
The Cost Leader will therefore focus on coming up with ways with which it can keep costs at a minimum because it is important to their mode of operations.
A Differentiator on the other hand aims to increase market share by creating a product that people will see as different and will buy due to the added value. They will focus more on supporting creativity to make better products as well as customer responsiveness to see what it is that the customers like so that they can offer it.
Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables: Feb. 20 Received $1,000 from Andrew Warren and wrote off the remainder owed of $4,000 as uncollectible. May 10 Reinstated the account of Andrew Warren and received $4,000 cash in full payment. If an amount box does not require an entry, leave it blank. Feb. 20 May 10 May 10
Answer:
A journal was entered to determine the following transactions using the direct write-off method of accounting for uncollectible receivable shown below
Explanation:
Solution
PART A:
Particulars Debit Credit
Feb 20 Bad Debt Expense $4,000
Cash $1,000
Accounts receivable $5000
May 10 Accounts receivable $4,000
Bad Debt Expense $4,000
Cash $4,000
Accounts receivable $4,000
Notifies the materials manager to send materials to a production department. 2. Holds indirect costs until assigned to production. 3. Hold production costs until products are transferred from production to finished goods (or another department). 4. Standardizes partially completed units into equivalent completed units. 5. Holds costs of finished products until sold to customers. 6. Describes the activity and output of a production department for a period. 7. Holds costs of materials until they are used in production or as factory overhead.
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 two independent cases are listed below: Case A Case B Year 2 Year 1 Year 2 Year 1 Sales Revenue $11,000 $9,000 $21,000 $18,000 Cost of Goods Sold 6,000 5,500 12,000 11,000 Gross Profit 5,000 3,500 9,000 7,000 Depreciation Expense 1,000 1,000 1,500 1,500 Salaries and Wages Expense 2,500 2,000 5,000 5,000 Net Income 1,500 500 2,500 500 Accounts Receivable 300 400 750 600 Inventory 750 500 730 800 Accounts Payable 800 700 800 850 Salaries and Wages Payable 1,000 1,200 200 250 Show the operating activities section of the statement of cash flows for year 2 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Net cash from operating activities are $2,250 for Case A and $3,820 for Case B.
Explanation:
The indirect method of presenting the cash flow statement is a method that starts with net income or loss, and then with additions to or subtractions from of revenue and expense items that are non cash to obtain cash flow from operating activities.
For this question, this can be presented as follows:
Details Case A ($) Case B ($)
Net Income 1,500 2,500
Adjustments:
Depreciation Expense 1,000 1,500
Changes in Operating assets & liab.:
(Increase) Decrease in Acct receivables 100 –150
Decrease (Increase) in Inventory –250 70
Increase (Decrease) in Accounts payable 100 –50
Increase (Decrease) in Sal. & Wag. Paybl. –200 –50
Net cash from operating activities 2,250 3,820
The Net cash-flow from the operating activities for Case A is $2,250.
The Net cash-flow from the operating activities for Case B is $3,820.
Here, we are preparing the "Year 2" operating activities section of the cash flows statement using the indirect method
Statememt of Cash flow (Operating activities)
Case A Case B
Particulars Amount Amount
Net Income $1,500 $2,500
Adjustments for Case A & B
Depreciation Expense $1,000 $1,500
Changes in operating assets
& liabilities of Case A & B
(Increase) / Decrease in Account receivables $100 -$150
Decrease / (Increase) in Inventory -$250 $70
Increase / (Decrease) in Accounts payable $100 -$50
Increase / (Decrease) in Sal. & Wage Payable $200 -$50
Net cash from operating activities $2,250 $3,820
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brainly.com/question/18454410
On June 30, 2010, Microsoft Corporation was holding $4.8 billion of cash that it had collected from customers in advance for future software licenses and the future delivery of other products and services. In its financial statements, Microsoft classified and recorded this amount as
Answer: O the liability Unearned Revenue on its balance sheet.
Explanation:
Unearned Revenue is a liability that goes into the balance sheet to record the cash received for goods and/or services that the company have not delivered yet.
This is so that the company is not in violation of the Accrual Accounting concept known as the Revenue Recognition Principle that states that revenue should be recognised only in the period that they have been earned.
Microsoft in this scenario will record this cash as an Unearned Revenue and then consider it revenue when it has delivered the said goods and services.
American Corporation has the following financial information. Year 1 Year 2 Cash $ 202.95 $ 245.90 A/R 398.02 485.34 Inventory 785.12 648.54 If Year 1 is the base year, what is the percentage increase/decrease of each current asset amount
Answer: The answer is given below
Explanation:
Since Year 1 has been given as the base year, the percentage change will be:
(Year 2 - Year 1)/Year 1 × 100
Cash:
= (245.90 - 202.95)/202.95 × 100
= 42.95/202.95 × 100
= 0.21 × 100
= 21% Increase
A/R:
= (485.34 - 398.02)/398.02 × 100
= 87.32/398.02 × 100
= 0.22 × 100
= 22% Increase
Inventory:
= (648.54 - 785.12)/785.12 × 100
= -136.58/785.12 × 100
= -0.17 × 100
= 17% decrease
You have $ 69 comma 000 69,000. You put 25 25% of your money in a stock with an expected return of 10 10%, $ 39 comma 000 39,000 in a stock with an expected return of 14 14%, and the rest in a stock with an expected return of 18 18%. What is the expected return of your portfolio? brainly
Answer: 13.72%
Explanation:
Here is the complete question:
You have 69,000. You put 25% of your money in a stock with an expected return of 10%, 39,000 in a stock with an expected return of 14%, and the rest in a stock with an expected return of 18%. What is the expected return of your portfolio?
The weight of the investment in stock with the expected return of 10% = 25% = 25/100 = 0.25
The weight of investment in the stock with an expected return of 14% = 39000/69000 = 0.57
Therefore, the weight of the investment in stock with an expected return of 18% = 1-(0.25+0.57) = 1 - 0.82 = 0.18
Expected return of the portfolio:
= (10 × 0.25) + (14 × 0.57) + (18 × 0.18)
= 2.5 + 7.98 + 3.24
= 13.72%
Item15 0.3 points eBookPrintReferences Check my work Check My Work button is now enabledItem 15Item 15 0.3 points Corporation Q, a calendar year taxpayer, has incurred the following Section 1231 net gains and losses since its formation in 2015. 2015 2016 2017 Section 1231 gains $ 14,800 $ 5,700 0 Section 1231 losses (13,000 ) (9,000 ) $ (3,100 ) Net gain or (loss) $ 1,800 $ (3,300 ) $ (3,100 ) In 2018, Corporation Q sold only one asset and recognized a $4,000 Section 1231 gain. How much of this gain is treated as capital gain, and how much is ordinary
Answer:
$4,000 is treated as a capital gain and then reduced by the un-offset net losses in 2016 ($300) and 2017 ($100) to arrive at net capital gain of $3,600 ($4,000 - 300 - 100). $0 of the amount is treated as an ordinary income.
Explanation:
Section 1231 gain arises when an asset (real property or depreciable business property) is sold for more than its current tax basis. The gain is regarded as a capital gain and taxed at the lower capital gain rates and not as ordinary income.
Section 1231 property are assets used in trade or business and held by the Taxpayer for more than one year. A gain on the sale of Section 1231 business property is treated as a long-term capital gain.
Hardwig Inc. is considering whether to pursue a restricted or relaxed current asset investment policy. The firm's annual sales are expected to total $3,600,000, its fixed assets turnover ratio equals 4.0, and its debt and common equity are each 50% of total assets. EBIT is $150,000, the interest rate on the firm's debt is 10%, and the tax rate is 40%. If the company follows a restricted policy, its total assets turnover will be 2.5. Under a relaxed policy its total assets turnover will be 2.2. Refer to the data for Hardwig, Inc. Assume now that the company believes that if it adopts a restricted policy, its sales will fall by 15% and EBIT will fall by 10%, but its total assets turnover, debt ratio, interest rate, and tax rate will all remain the same. In this situation, what's the difference between the projected ROEs under the restricted and relaxed policies? a. 2.46% b. 2.98% c. 3.27% d. 2.24% e. 2.70%
Answer:
d. 2.24%
Explanation:
total annual sales = $3,600,000
fixed asset turnover = total sales / fixed assets = 4, that means that total fixed assets = $3,600,000 / 4 = $900,000
debt = 50% = $450,000
equity = 50% = $450,000
EBIT = $150,000
net income = $150,000 x (1 - 40%) = $90,000
restricted policy:
asset turnover = 2.5
sales = $3,600,000 x (1 - 15%) = $3,060,000
EBIT = $135,000
net income = $81,000
assets = $3,060,000 / 2.5 = $1,224,000
equity = $1,224,000 x 50% = $612,000
ROE = $81,000 / $612,000 = 13.24%
relaxed policy:
asset turnover = 2.2
EBIT = $150,000
net income = $90,000
assets = $3,600,000 / 2.2 = $1,636,364
equity = 50% x $1,636,364 = $818,182
ROE = $90,000 / $818,182 = 11%
difference between ROEs = 13.24% - 11% = 2.24%
Sarah signed an agreement to rent an apartment from a landlord who also signed the agreement. During the lease negotiations, the landlord agreed to provide Sarah with extra storage space in the basement of the apartment building but this promise was not included in the agreement. The landlord now tells Sarah that he will not provide the extra space. If the landlord admits making the promise, under the parol evidence rule (select one):
Answer:
He is legally expected to provide the space under the overconfidence trap
Explanation:
The landlord was overconfident about his judgment abilities and was quick to make the promise to provide the extra space without thinking of a wider range of possibilities. Thereby exposing himself to a greater risk than he imagined. The parole evidence is an evidence of oral speech. Since he admitted making the promise to Sarah, he is legally expected to provide the space.
Lately the demand for building materials has dropped due to the slowdown in new housing construction. Woods Corp, is thinking of closing its fine wood division that produces mahogany and cherry lumber for building cabinets and other applications. Under the Boston Consulting Group Growth-Share Matrix, the fine wood division would most likely be classified as a:________.
A. dog
B. cash cow
C. top gun
D. star
Answer:
A. dog
Explanation:
The Boston Consulting Group growth share matrix is a graphical representation used in planning which of a companie's products should be kept, discarded, or invested more in.
Four categories of products are stars, dogs, cash cow, and question mark.
Dogs have low market share and low growth rate. Options for handling such products are selling, repositioning, or liquidation.
Demand for building materials has dropped due to the slowdown in new housing construction and the company is considering bclosing its fine wood division that produces mahogany and cherry lumber for building cabinets and other applications.
This division is most likely a dog
The Holt fund has $500 million in assets, 80 million in debt and 15 million shares at the start of the year. At the end of the year, the fund has $600 million in assets, 40 million in debt and 16 million shares. During the year, investors received $0.80 in distributions per share. The total expense ratio is 0.4%, which is deducted at the end of the year. What is the rate of the return on the fund?
A. 38.54%
B. 27.32%
C. 35,14%
D. 25.81%
E. 34.79%
Answer:
B. 27.32%
Explanation:
First we need to calculate the Net asset value per share at the start and end of the year
NAV at the start of the year = ($500 million - $80 million) / 15 million shares = $28 per share
NAV at the end of the year = ($600 million - ( ($600 million x 0.004) + $40 million ) / 16 million shares = $34.85 per share
Return = (NAV at the end of the year - NAV at the start of the year + Distribution received) / NAV at the start of the year
Return = ( 34.85 - 28 + 0.8 ) / 28 = 0.2732 = 27.32%
FICO is a. a company that analyzes consumer credit histories. b. a measure of your debt-to-income ratio. c. a special introductory interest rate on any purchases made during the holiday shopping season. d. a federal agency charged with monitoring consumer spending habits.
Answer: a. a company that analyzes consumer credit histories.
Explanation: The Fair Isaac Corporation (FICO) founded in 1956 by Bill Fair and Earl Isaac is a data analytics company and also the first company to offer a credit-risk model with a score. In other words, the FICO model is the primary method used for determining an individual's creditworthiness and in the provision of a credit rating or score.
They also offer credit scores for sales, either alone or as part of a package of products.
Billy-Bob owns a condo in Seattle, and a farm in Yakima. His older brother, Bobby-Lee, has some severe health problems and is unable to work anymore, and just has Social Security Disability income of about $800/month. Billy-Bob records a deed giving a "life estate" to Bobby-Lee as long as he lives, with the "remainder" to go to Billy-Bob’s sister, Judy. A. Bobby-Lee now owns the "fee simple" title to the property, as long as he lives. B. Once Bobby-Lee dies, Judy will own the "fee simple" title to the property. C. No one will own the "fee simple" title to the property.
Answer: B. Once Bobby-Lee dies, Judy will own the "fee simple" title to the property.
Explanation:
In the Life Estate arrangement, a person is granted use and ownership of a property for as long as they are alive. When they die however, if a Remainder also known as Remainder- man is named, then the property rights transfer to the Remainder- man.
The Remainder-man then gets access to the property and owns in to the highest extent of the law which in common law countries such as the United States, is the Fee Simple title ownership. This gives them the right to basically do what they want with the property.
Bobby-Lee therefore gets the rights to the property but once he dies, his sister Judy will own a fee simple title to the property.
A hardware store is interested in reaching people who are characterized by the VALS system as being practical,down-to-earth,and self-sufficient who like to work with their hands,the ________ category.A) believersB) striversC) survivorsD) experiencersE) makers
Answer: Makers--E
Explanation:The VALS system is a system that describes the Values, Attitude lifestyles of individuals and their responsiveness to buying products. Understanding this system, affords businesses the opportunity to tailor their products to suit their target consumers.
The Makers are characterized as being practical and expressive, having skills which enable them to carry out their task successfully. They value family life and therefore cut down on frivolities and non functional possessions. when it comes to consumption, they would rather go for the basic essential commodities that have value than luxury goods.
Therefore, A hardware store is interested in reaching people who are characterized by the VALS system as being practical,down-to-earth,and self-sufficient who like to work with their hands,the MAKERS category.
Which of the following are examples of hidden unemployment? Select the two correct answers below. Select all that apply: John is 15 years old and even though he wants to find summer job, he can't. Lisa cannot find the job she wants so she has stopped looking. Penny has a college degree in nursing, but currently has to work as a store clerk as it is the only available job in her small town. Rita is working in the job of her dreams.
Answer:
Lisa cannot find the job she wants so she has stopped looking. Penny has a college degree in nursing, but currently has to work as a store clerk as it is the only available job in her small town.Explanation:
Hidden Unemployment also known as Disguised Unemployment in simple terms refers to the following people; people who are not working and have given up on looking for work because they could not find any, people who have the skillset and determination to work full-time working only part time and people who are underemployed meaning that they are working a job that they are overqualified for.
Hidden Unemployment is considered hidden as it is not reflected in employment statistics.
Lisa could not find a job so she stopped looking. This is Hidden Unemployment and official figures will not even count her as unemployed because you need to be actively looking for work to be classified unemployed.
Penny is overqualified for the store clerk position she holds or rather she is qualified for a different profession. Employment statistics will however show her as employed.
A mail-order house uses 18,000 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies. Determine: a. The optimal order quantity. b. The number of orders per year.
Answer:
Hie, the price schedule is missing from your question however the important principles are explained below.
a. The optimal order quantity
Optimum order quantity is the order level that results in minimum ordering costs and holding costs.
Optimum order quantity = √ (2 × Annual Demand × Cost per order) / holding cost per unit
b. The number of orders per year.
orders per year = Annual Demand / optimal order quantity
This calculates the number of orders to be placed during the year at the optimum order quantity.
The following is a description of the conversion cycle of Central Production Limited:
The conversion cycle of the company is triggered by a report from the warehouse. When the quantity of an inventory item falls below a pre-set minimum level, the warehouse manager sends an online inventory status report to production department advising them to schedule a production batch run for the item.
Upon receipt of the report, the production clerk assesses the digital bill of materials and the route sheet files for the item to be produced and adds the production details to the online production schedule.
The system automatically adds a record to the open work order file and sends an online work order to the work centre supervisor’s computer and to the accounting clerk’s computer.
The work centre supervisor receives the work order from his computer and print hard-copy move tickets and materials requisitions for each production process. Production employees take the materials requisitions to store clerk and receives the materials and subassemblies needed to perform the production tasks. If additional materials beyond the standard amount is needed, the work centre supervisor prepares additional materials requisitions.
Production employees complete job time tickets after completing a production process to record the time spent on the job. The job time tickets are then sent together with the move tickets to the accounting department.
After releasing the materials into production, the store clerk updates the material inventory records and send the materials requisitions to accounting department. The clerk prepares a journal voucher and posts to the general ledger material control account at the end of each day.
The accounting clerk assesses the work orders and set up a work-in-process account for a production batch. Throughout the production period, the clerk also receives move tickets, job tickets, and materials requisitions, which he uses to post to the work-in-process account. At the end of each day, the accounting clerk prepares a digital journal voucher and post it to the general ledger work-in- process and finished goods control accounts.
Identify the risks exist in the conversion cycle of Central Production Limited. (10 marks, maximum 300 words)
Answer: Provided in the explanation section
Explanation:
Conversion Cycle is the cycle which track records for the arrangement of crude material to completed products.
Here on the best possible perspective all in all of the procedure:
1. Triger by distribution center dept ( Raw material Keeper)
2. Produnction chief updates the request to be finished and include further up and coming requests assuming any.
3.It will produce online request slip and straightforwardly post to chiefs tab + bookkeeper tab
4. Manager take material and issue to gathering dept ( abundance material necessity is given by his position too)
5. Time + work both finished card sare sent to Accountanct
6. When request finished Accountant update the WIP just as Inventory in books.
Hazard in the Conversion Cycle:
After receipt of material and charging it to FG as Inventory in books
- Risk is hindering of assets in overabundance keeping of stock, As material level down after a specific level automatc trigger alternative is set up, which cautions the productin withdraw. to decide the future prerequisite according to the productin request in hands ( Good control set up)
Second, Online workorder to Supervisior, All chief gets their no. of creation request ( to be finished on the web) - Good control set up
Third, Supervisor on hand, place the material prerequisite ( and if any overabundance necessity - " NO FURTHER APPROVAL" is made to store representative. here hazard is medium over the demand well beyond the Order indicates by the creation dept.
Fourthly, creation representatives itself are getting ready thier work tickets ( " NO AUTHENTICATION")- As tickets are finished by creation representatives itself control of information info or its endorsement is inadequate.
Fifth, Accountant decides himeslef the WIP , FG of the request over the crude information got as employment card, time card, material order Risk is bookkeeper simply need to verifiy the information from the information got from the creation L2 official as opposed to himself keep up the quantities of the activity.
From above it is anything but difficult to catch the degree of hazard at different level in the above procedure of Central creation Limited.
You currently have 80 units of a product on the shelf. The demand for the product has been simulated as follows: Demand_Data.xlsx Sales are made to the extent that you have units in stock (for example, if the demand is for 65 units, then 65 units are sold; however, if the demand is for 135 units, then only 80 units are sold). Using the demand data in the attached file, the expected units sold is [a].
Round your answer to a single decimal point. For example, if your answer is 51.456, then round it to 51.5.
Answer:
Hello the required attached file is missing and attached to the answer is the file and the Excel solution to the problem
answer : The expected units sold is ; 65.9
Explanation:
ATTACHED IS THE SOLUTION OF THE PROBLEM USING EXCEL and also attached is the missing file
Demand_Data.xlsx (Following values correspond with each of the 200 rows)
65.2109419609769
36.3814378436655
12.0877429656684
42.5590896559879
82.2785877465503
63.8527707854519
63.4004335955251
15.8457750733942
71.0140411177417
70.8838469511829
17.5017830263823
55.8463070268044
72.5535427994328
83.9481016958598
77.4359377322253
51.6086528880987
61.2436578597408
41.7028003942687
61.3092779024737
57.1605268708663
63.4424295133795
105.393077268964
42.3098881077021
72.9272996471264
73.4634922485566
92.1699337998871
73.9350879887934
62.634502632427
75.1440792958601
78.2438873505453
132.73330654949
56.5183781366795
83.8099039759254
85.089108273969
79.8164036899107
87.0501152751967
41.0291376686655
63.5085725155659
84.9410880112555
59.0508206590312
56.5433210288757
59.7236421020352
65.8728722049273
73.6344772524899
49.9832039570902
47.852667143452
92.3204551730305
74.595608515956
66.5629058351624
32.4733391101472
97.4920239462517
74.2992041926482
9.96752891689539
85.1971107698046
110.769009501673
69.4912286638282
118.182118916884
80.9065695141908
66.242581801198
74.6631839722977
94.2071109823883
89.928620531573
59.5205746724969
104.95497367112
63.1786987872329
113.474574340507
47.0437170809601
79.1452875494724
82.0594904728932
45.6039869680535
97.7821527561173
65.7133240968687
58.5785200604005
84.1517375595868
41.9052539148834
63.9809640636668
78.9487002696842
85.280966181308
61.2992052486516
49.7980308358092
67.0680619298946
49.0870788274333
60.8445261098677
68.4155920174089
91.2059148907429
54.3580098968232
44.4463366369018
66.7196345096454
59.9047907092609
41.6861111664912
40.0889020459726
58.9671926212031
56.350849212613
65.2880671116873
75.5627424444538
48.9305093145231
35.4057319276035
71.0829808161361
32.9006197210401
86.8856786331162
77.7846607382526
104.655840863707
106.356141208671
48.7940851092571
72.7866462914972
61.3815372565296
95.9817170444876
51.57595655357
87.819729691837
85.2932898345171
27.4374669464305
52.1301571500953
79.2558366304729
82.1587163448567
97.4762896879111
42.4961980973603
78.3406121120788
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Lehi City has designated an internal service fund as the single fund to account for its self-insurance activities. Most of the insured activities such as the police department, fire department, and general government functions are accounted for in the General Fund. What is the maximum amount that can be charged to expenditure in the General Fund related to the self-insurance activities
Answer: c)The actuarially determined amount necessary to cover claims, expenditures, and catastrophic losses.
Explanation:
The Expenditure on the account related to self - insurance activities refers to the amounts that will be deducted from the fund for anything insurance related.
The insurance is meant to cover the claims and unlikely events of catastrophies. Therefore when those things do occur it will be deducted from the service fund to cover those things.
Those along with expenses incurred to maintain the fund will be considered expenses and that is the maximum amounts that can be deducted from the fund.
Nick’s Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $592,000, have an fifteen-year useful life, and have a total salvage value of $59,200. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 300,000 Less operating expenses: Commissions to amusement houses $ 70,000 Insurance 66,000 Depreciation 35,520 Maintenance 90,000 261,520 Net operating income $ 38,480
Required:
1a. Compute the pay back period associated with the new electronic games.
1b. Assume that Nick’s Novelties, Inc., will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games?
No
Yes
2a. Compute the simple rate of return promised by the games. (Round your answer to 1 decimal place. i.e. 0.123 should be considered as 12.3%.)
2b. If the company requires a simple rate of return of at least 8%, will the games be purchased?
No
Yes
Answer and Explanation:
1a. The computation of the payback period is shown below:
Payback period = Initial investment ÷ Cash inflow
where,
Initial investment is $592,000
And, the cash flow is
= Depreciation expense + net operating income
= $35,520 + $38,480
= $74,000
So, the payback period is
= $592,000 ÷ $74,000
= 8 years
1b. As we can see that the payback period is of 8 years but the given payback period is 5 years so the company should not purchased the new games
2a. The computation of the simple rate of return is shown below:
Payback period = Net operating income ÷ Initial investment
= $38,480 ÷ $592,000
= 6.5%
2b. As we can see that the simple rate of return is 6.5% but the given simple rate of return is minimum 8% so the company should not purchased the new games
1a. The computation of the payback period is given below:
Payback period = Initial investment ÷ Cash inflow
Here,
Initial investment is $592,000
And, the cash flow is
= Depreciation expense + net operating income
= $35,520 + $38,480
= $74,000
Thus , the payback period is
= $592,000 ÷ $74,000
= 8 years
1b. Since the payback period is of 8 years but the given payback period is 5 years due to this the company should not purchased the new games.
2a. The calculation of the simple rate of return is given below:
Payback period = Net operating income ÷ Initial investment
= $38,480 ÷ $592,000
= 6.5%
2b. Since the simple rate of return is 6.5% but the given simple rate of return is minimum 8% due to this the company should not purchased the new games.
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Suppose the comparative balance sheets of Windsor, Inc. are presented here. WINDSOR, INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Assets Current Assets Property, plant, and equipment (net) Other assets Total assets Liabilities and Stockholders' Equity Current Liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity $9,520 $8,720 2,010 1,870 1,610 $13,080 $12,200 1,550 3,210 $3,320 1,210 1,290 7,590 $13,080 $12,200 8,660 (a) Prepare a horizontal analysis of the balance sheet data for Windsor, using 2016 as a base. (if amount and percentage are a decrease show the numbers as negative, e.g.-55,000 -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) WINDSOR, INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 (Decrease) Change from 2016 $9,520 $8,720 2,010 1,870 1,610 Current Assets Property, plant, and equipment (net) Other assets 1,550 Total assets $13,080$12,200 $ Liabilities and Stockholders' Equity $3,210 $3,320 1,210 1,290 7,590 $13,080 $12,200 Current Liabiiies Long-term liabities Stockholders equity Total liabilities and stockholders' equity 8,660
Answer:
since there is not enough room here, I prepared the comparative balance sheets on an excel spreadsheet.
Explanation:
WINDSOR, INC.
May 31 2017 2016
($ in millions)
Assets
Current Assets $9,520 $8,720
Property, plant, and equipment (net) $2,010 $1,870
Other assets $1,550 $1,610
Total assets $13,080 $12,200
Liabilities and Stockholders' Equity
Current Liabilities $3,210 $3,320
Long-term liabilities 1,210 1,290
Stockholders' equity 8,660 7,590
Total liabilities and stockholders' equity $13,080 $12,200
Frances loves shopping for clothes, but considering the state of the economy, she has decided to start saving. At the end of each year, she will deposit $700 in her local bank, which pays her 9% annual interest. Frances decides that she will continue to do this for the next 5 years. Frances’s savings are an example of an annuity. How much will she save by the end of 5 years, rounded to the nearest whole dollar?
Answer:
Future Value= $4,189.30
Explanation:
Giving the following information:
Investment= $700 annual
Interest rate= 9%
Frances decides that she will continue to do this for the next 5 years.
To calculate the final value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {700*[(1.09^5)-1]} / 0.09
FV= $4,189.30
Gauge Construction Company is making adjusting entries for the year ended March 31 of the current year. In developing information for the adjusting entries, the accountant learned the following: The company paid $3,900 on January 1 of the current year to have advertisements placed in the local monthly neighborhood paper. The ads were to be run from January through June. The bookkeeper debited the full amount to Prepaid Advertising on January 1. At March 31 of the current year, the following data relating to Construction Equipment were obtained from the records and supporting documents. Construction equipment (at cost) $ 550,000 Accumulated depreciation (through March 31 of the prior year) 148,800 Estimated annual depreciation for using the equipment 42,400 Required:
1. Record the adjusting entry for advertisements at March 31 of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Record the adjusting entry for the use of construction equipment during of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
3. What amount should be reported on the current year's income statement for Advertising Expense? For Depreciation Expense?
4. What amount should be reported on the current year's balance sheet for Prepaid Advertising? For Construction Equipment (at net book value)?
Answer:
1. Record the adjusting entry for advertisements at March 31 of the current year.
advertisement expense per month = $3,900 / 6 months = $650
$650 x 3 months = $1,950
Dr Advertising expense 1,950
Cr Prepaid advertising 1,950
2. Record the adjusting entry for the use of construction equipment during of the current year.
Dr Depreciation expense 42,400
Cr Accumulated depreciation - equipment 42,400
3. What amount should be reported on the current year's income statement for Advertising Expense?
$1,950
For Depreciation Expense?
$42,400
4. What amount should be reported on the current year's balance sheet for Prepaid Advertising?
$1,950 (= $3,900 - $1,950)
For Construction Equipment (at net book value)?
$358,800 (= $550,000 - $191,200)
Explanation:
Accrual accounting principle states that both revenues and expenses must be recognized during the periods that they effectively occur. They are not necessarily recorded during the periods in which they were collected or paid for.
1. The adjusting entry for advertisements at March 31 of the current year
Gauge Construction Company journal entry
1. March 31
Dr Advertising expense $1,950
Cr Prepaid advertising $1,950
($3,900×3/6)
(To record Advertising expense)
2. The adjusting entry for the use of construction equipment during of the current year.
Gauge Construction Company journal entry
Dr Depreciation expense $42,400
Cr Accumulated depreciation - equipment $42,400
(To record equipment expense)
3. The amount that should be reported on the current year's income statement for Advertising Expense and Depreciation Expense.
Advertising Expense=$3,900×3/6
Advertising Expense=$1,950
Depreciation Expense=$42,400
4. The amount that should be reported on the current year's balance sheet for Prepaid Advertising and Construction Equipment.
Prepaid Advertising=$3,900-($3,900×3/6)
Prepaid Advertising=$3,900-$1,950
Prepaid Advertising=$1,950
Construction Equipment=$550,000-($148,800+$42,400)
Construction Equipment=$550,000-$191,200
Construction Equipment=$358,800
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On January 2, Todd Company acquired 40% of the outstanding stock of McGuire Company for $205,000. For the year ending December 31, McGuire earned income of $48,000 and paid dividends of $14,000. Required: Prepare the entries for Todd Company for the purchase of the stock, share of McGuire income, and dividends received from McGuire.
Jan. 2__________
Dec. 31 _________
Dec. 31__________
Answer:
Dr equity investment $205,000
Cr cash $205,000
Dr equity investment $19200
Cr share of net income of affiliate company $19200
Dr cash $5,600
Cr equity investment $5,600
Explanation:
The cash of $205,000 paid for the equity investment would be credited to cash account while equity investment is debited with the same amount.
The share of Todd Company from the earned income is 40% of the earned income of $48,000 which is $19200 .
The share of dividends that accrued to Todd is 40% of $14,000 dividends paid which is $5,600
Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $70,000 or $200,000 with equal probabilities of .5. The alternative risk-free investment in T-bills pays 6% per year.
Required:
a. If you require a risk premium of 8%, how much will you be willing to pay for the portfolio?
b. Suppose that the portfolio can be purchased for the amount you found in (a) What will be the expected rate of return on the portfolio?
c. Now suppose that you require a risk premium of 12%. What is the price that you will be willing to pay?
d. Comparing your answers to (a) and id. what do you conclude about the relationship between the required risk premium on a portfolio and the price at which the portfolio will sell?
Answer:
(a) $118,421 (b) $135,000 (c) $114,407 (d) The portfolio that has a risk higher will sell at a lower price rate. The discount additional value is regarded as a risk of consequence
Explanation:
Solution
(a) If you require a risk premium of 8%, the total return expected on the risky portfolio is given as follows:
E(r) =Risk premium + rf
= 8% + 6% = 14%
Thus
The portfolio is given as follows:
Probability Return
0.5 $70,000
0.5 $200,000
Hence the dollar return that is expected is computed as follows:
E(r) =∑p(s)r(s)
=Now, 0.5 x 70,000 + 0.5 x 200,000
=$135,000
Now,
we want 135,000 to be 14% of our initial investment, so, the portfolio present value is:
Present value = $135,000/1.14
=$118,421
(b)The expected rate of return on the portfolio, suppose that the portfolio can be bought or the amount 118,421
Then
The expected rate of return =[ E(r) ] = $118,421 * [ 1 + E(r)]
= $118,421 *(1+ 0.14) = $135,000
(c) The price that you are willing to pay when the premium is 12%, then the risk free rate is given by 6%
Thus,
E(r) =Risk premium + rf
=12% + 6% = 18%
The dollar expected return is stated as follows:
E(r) =∑p(s)r(s)
Now, 0.5 x 70,000 + 0.5 x 200,000
=$135,000
we want 135,000 to be 18% of our initial investment, so, the portfolio present value is:
Present value = $135,000/1.18
= $114,407
(d) The portfolio that has a risk higher will sell at a lower price rate. The discount additional value is regarded as a risk of consequence.
Every organization needs some degree of flexibility and standardization. True False Being overly committed to following rules can harm an organization and keep it from growing. True False Every organization needs either a degree of ________ to adapt to new situations or some degree of ________ to make routine tasks and decisions as efficient and effective as possible. standardization; flexibility culture; vision flexibility; standardization structure; design
Answer:
1. True: Every organization needs some degree of flexibility and standardization.
2. True: Being overly committed to following rules can harm an organization and keep it from growing.
3. flexibility; standardization.
Explanation:
It is really important and necessary that all organization have some degree of flexibility and standardization. Every organization is expected to be flexible, in order to be able to effectively manage potential changes or challenges that arises in business. They should also be standardized, by having proper policies, strategies and structure for the purpose of running the business smoothly and efficiently.
However, if an organization is overly committed to following rules, this can cause harm to it's business operations and thereby hindering its growth and development.
Hence, some degree of flexibility is needed in every organization in order to adapt to new situations or some degree of standardization to make routine tasks and decisions as efficient and effective as possible.