Answer:
Net Income 3900
Explanation:
REM Consulting
Un adjusted Trial Balance Adjusted Trial Balance
Debit Credit Debit Credit
Cash 13,000 13,000
Accounts Receivable 1,500 1,800
Prepaid Insurance 600 200
Supplies 3,800 3,000
Machines 30,000 30,000
Acc. Depreciation 12,000 17,500
Wages Payable 900
Unearned Fees 6,700 6,500
Owner’s Capital 24,000 24,000
Owner’s Drawing 4,800 4,800
Fees Earned 25,000 25,500
Wages Expense 14,000 14,900
Depreciation Expense 5,500
Supplies Expense 800
Insurance Expense 400
Total 67,700 67,700 74,400 74,400
Adjusting Entries
SR. No Accounts Debit Credit
1) Accounts Receivable 300
Sales 300
As Sales increase so do the Accounts receivable.
2) Insurance Expense 400
Prepaid Insurance 400
Insurance expired by $400.
3) Supplies Expense 800
Supplies 800
Supplies used up by amount $800.
4) Depreciation Expense 5,500
Accumulated Depreciation 5,500
Depreciation Expense amounts to $ 5,500
5) Fees Earned 200
Unearned Fees 200
Provided Services for which payment had been collected,
6) Cash 500
Fees Earned 500
Received $500 for services provided.
7) Wages Payable 900
Cash 900
Paid wages payable to the employee.
REM Consulting
Net income
Fees Earned 25500
Wages Expense 14,900
Depreciation Expense 5,500
Supplies Expense 800
Insurance Expense 400
Net Income 3900
Personal Selling is :
a. The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.
b. A nonpersonal, indirectly paid presentation of an organization, product, or service.
c. A short-term inducement of value offered to arouse interest in buying a product or service.
d. Promotional alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet.
Answer:
Option A. The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.
Explanation:
The reason is that the personal selling is the face to face selling which means two way flow of communication is necessary. The seller will use his marketing exprience to influence the buyer which results in greater sales and customer satisfaction. So it is the face to face selling method which most of the companies opt and this way of selling is known as personal selling.
Compute ending merchandise inventory, cost of goodssold, and gross profit using the (1) FIFO inventory costingmethod, (2) LIFO inventory costing method, and (3) weighted-average inventory costing method. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.)
Begin by determining ending merchandise inventory and cost of goods sold under each of the three methods.
Requirement 1.
FIFO
Plus:
Less:
Cost of goods sold
Requirement 2.
LIFO
Requirement 3.
Weighted-Average
Additional Information:
June.1 Beginning merchandise inventory 17 units at $15each
12 Purchase 5 units at $19each
20 Sale 14 units at $37each
24 Purchase 11 units at $23each
29 Sale 13 units at $37each
Answer:
a) Ending Merchandise Inventory and Cost of Goods Sold under FIFO:
Beginning Inventory, 17 units at $15each $255
Plus Purchases:
June 12 Purchase, 5 units at $19each 95
June 24 Purchase, 11 units at $23each 253
Cost of Goods Available for Sale $603
Less Ending Inventory 138
Cost of Goods Sold $465
b) Ending Merchandise Inventory and Cost of Goods Sold under LIFO:
Beginning Inventory, 17 units at $15each $255
Plus Purchases:
June 12 Purchase, 5 units at $19each 95
June 24 Purchase, 11 units at $23each 253
Cost of Goods Available for Sale $603
Less Ending Inventory 90
Cost of Goods Sold $513
c) Ending Merchandise Inventory and Cost of Goods Sold under Weighted Average:
Beginning Inventory, 17 units at $15each $255
Plus Purchases:
June 12 Purchase, 5 units at $19each 95
June 24 Purchase, 11 units at $23each 253
Cost of Goods Available for Sale $603
Less Ending Inventory 109.62
Cost of Goods Sold $493.38
2. Ending Inventory = 6 units (17 units + 5 - 14 + 11 - 13)
FIFO LIFO Weighted Average
Ending Inventory value = $23 *6 = $138; $15 *6 = $90; $18.27 *6 = $109.62
Weighted Average = Cost of Goods Available for Sale / Quantity Available for Sale = $603/33 = $18.27 per unit
Explanation:
FIFO: First In, First Out: This is a method of costing inventory which assumes that goods remaining in stock are those that were brought in last. This means that goods are sold out according to the time they are bought, with earlier bought goods being sold before later bought goods.
LIFO: Last In, First Out: This costing method assumes that goods that are sold are those that were bought later leaving those bought earlier to remain in stock. The entity using this method exhausts the last quantity bought before selling the earlier quantities.
Weighted Average: This is another technique which weighs the averages of the cost of inventory before determining the value of inventory. The weighted average method divides the cost of the goods available for sale by the number of those units still on the shelf. The result is the weighted average cost per unit, which can be used to assign a cost to both the ending inventory and the cost of goods sold.
On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $51,000. The cab has an expected salvage value of $12,000. The company estimates that the cab will be driven 200,000 miles over its life. It uses the units-of-production method to determine depreciation expense. The cab was driven 60,000 miles the first year and 63,000 the second year. What is the amount of depreciation expense reported on the Year 2 income statement and the book value of the taxi at the end of Year 2, respectively
Answer:
The amount of depreciation expense reported on the Year 2 is $12,285 and the book value of the taxi at the end of Year 2 is $27,015
Explanation:
In order to calculate the amount of depreciation expense reported on the Year 2 income statement and the book value of the taxi at the end of Year 2, respectively we would have to make the following calculations:
Particulars Amount
Cost of taxi $51,000.00
Salvage Value $12,000.00
Life in miles 200,000.00
Depreciation per mile = ($51,000.00 - $12,000.00 )/200,000=0.195
Depreciation for Year 1 = 60,000 * 0.195=11,700.00
Depreciation for Year 2 = 63,000 * 0.195=12,285.00
book value of the taxi, respectively, at the end of Year 2 = 51,000 - 11,700 - 12,285=27,015.00
The amount of depreciation expense reported on the Year 2 is $12,285 and the book value of the taxi at the end of Year 2 is $27,015
Skilled versus unskilled labor markets Consider the labor markets for unskilled workers and skilled workers in the United States. Suppose you read the following newspaper headline: "The U.S. Department of Education Issues Report on Increased Productivity Effects of a College Education, but College Enrollment Remains Constant." The previous scenario primarily affects the labor market for ______ workers.
Answer: Skilled Workers.
Explanation:
Skilled workers refers to those with the skills and abilities required to work in their various tasks. Often these skills are gained from tertiary level institutions such as Universities, Colleges or Technical Schools.
When the report speaks of how having a college education leads to increased productivity, it is targeting skilled workers who as the definition states, have probably gone to College or Universities and the like.
This report will increase the labour market for skilled college education holders as companies might want to hire them more to gain from the reported increased productivity.
against the foregoing background obtain any road road traffic policy and demonstrate your understanding of that particular policy in relation to its level. in your discussion indicate your role as traffic a prospective traffic law enforcement personnel
Answer:
road traffic policy is the application if safety measures to keep both vehicle owners and pedestrians safety or ensures safety in the road.
Explanation:
hope it helps .
Ravelo Corporation has provided the following data from its activity-based costing system:
Activity Cost Pools Total Cost Total Activity
Assembly $498,520 44,000 machine-hours
Processing orders $54,263 1,100 orders
Inspection $77,589 1,100 inspection-hours
Data concerning the company's product L19B appear below:
Annual unit production and sales 430
Annual machine-hours 990
Annual number of orders 70
Annual Inspection hours 20
Direct materials cost $37.74 per unit
Direct labor cost $10.45 per unit
According to the activity-based costing system, the average cost of product L19B is closest to:
a. $4819 per unit
b. $82.31 per unit
c. $85.56 per unit
d. $7753 per unit
Answer:
Activity Cost Pools Total Cost Total Activity
Assembly $498,520 44,000 machine-hours
Processing orders $54,263 1,100 orders
Inspection $77,589 1,100 inspection-hours
Explanation:
Activity Cost Pools Total Cost Total Activity
Assembly $498,520 44,000 machine-hours
Processing orders $54,263 1,100 orders
Inspection $77,589 1,100 inspection-hours
Following are transactions for Valdez Services, a company owned by Brina Valdez. Brina Valdez invested $20,000 cash in the company in exchange for common stock. The company provided services to a client and immediately received $900 cash. The company received $10,000 cash from a client in payment for services to be provided next year. The company received $3,500 cash from a client in partial payment of accounts receivable. The company borrowed $5,000 cash from the bank by signing a note payable.
Required:
Prepare general journal entries for the above transactions of Valdez Services.
Sauber's washer-dryer is available in four stylish finishes: stainless steel, pearl white, gunite gray, and obsidian. Although the cycle time is 20% longer than average, the machine runs quietly and offers 10 wash, 5 spin, and 8 dry options. A programmable timer allows users to program a wash up to 23 hours in advance. The manufacturer's suggested retail price is $1499, which is more expensive than U.S. brands' washer-dryer combinations, which average around $1000. Choose the two variables that would be most predictive of purchase intent for the All-in-One washer-dryer.
a. household size: how many people?
b. dwelling type: apartment, condo, or house.
c. religious orientation: beliefs and worship.
Answer:
a and b
Explanation:
Religious orientation has nothing to do with how much money to spend or what machine to use
Niler Corporation reported the following after-tax information for its current fiscal year: $35,000 income from continuing operations, $8,400 income from operations of discontinued Line C, and $12,500 loss on disposal of Line C.
Starting with income from continuing operations, prepare a partial income statement for Niler for the current year. Ignore earnings per share.
Answer:
The net income for Niler Corporation for the current year is $30,900.
Explanation:
When there is a discontinued operation, the income from the discontinued operation is added to the income from continuing operations while the loss on disposal of the same operation is added to obtain the net income for the company. This can be done as follows for this question:
Niler Corporation
Partial Income Statement
Details $
Income from continuing operations 35,000
income from operations of discontinued Line C 8,400
Loss on disposal of Line C (12,500)
Net income 30,900
Therefore, the net income for Niler Corporation for the current year is $30,900.
The amount of increase or decrease in revenue that is expected from a particular course of action as compared with an alternative is termed: Group of answer choices manufacturing margin contribution margin differential cost differential revenue Flag this Question Question 21 pts Partridge Co. can further process Product J to produce Product D. Product J is currently selling for $21 per pound and costs $15.75 per pound to produce. Product D would sell for $37 per pound and would require an additional cost of $9.25 per pound to produce. What is the differential cost of producing Product D
Answer:
a) The amount of increase or decrease in revenue that is expected from a particular course of action as compared with an alternative is termed:
Differential Revenue
b) The Differential cost of producing Product D is the additional cost of $9.25 per pound.
Explanation:
a) Differential Revenue is the difference in sales revenue that results from two different courses of action.
b) The corporate finance institute defines Differential cost as "the difference between the cost of two alternative decisions."
A furniture factory's employees work overtime in February to finish an order that is sold on February 28. The office sends a statement to the customer in early March and payment is received by mid-March. The overtime salaries should be expensed in:______
a) the period when the workers receive their cheques
b) either in February or March depending on when the pay period ends
c) February.
d) March.
Answer: February
Explanation:
Overtime is the amount of time that a person works beyond the normal working hours. From the question, we realise that a furniture factory's workers work overtime in February in order to finish an order that was sold on February 28.
Based on this scenario, the overtime wages should be expensed in February. This is because expenses are recognised when incurred while incomes are recognised when earned. Since the expenses are incurred in February, the overtime salaries should be expensed in February.
A company is investing in a solar panel system to reduce its electricity costs. The system requires a cash payment of $125,374.60 today. The system is expected to generate net cash flows of $13,000 per year for the next 35 years. The investment has zero salvage value. QS 24-15 Net present value LO P3 The company requires an 8% return on its investments. 1-a. Compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) 1-b. Should the project be accepted?
Answer:
NPV is positive,the project should be accepted
Explanation:
In determining whether or not the project should be accepted ,we need to ascertain the Net Present value of the project which is present value of cash inflows of $13,000 for 35 years minus the initial investment of $125,374.60 committed today.
The annuity factor for 8% for 35 year horizon is 11.6546 using annuity table.
Present of cash inflow=cash inflow*annuity factor=$13,000*11.6546=$151,509.80
Net present value=$ 151,509.80-$125,374.60=$ 26,135.20
The investment has a positive NPV,hence should be accepted
A lockbox plan is most beneficial to firms that a. receive payments in the form of currency, such as fast food restaurants, rather than in the form of checks. b. have widely dispersed manufacturing facilities. c. have suppliers who operate in many different parts of the country. d. have a large marketable securities portfolio and cash to protect. e. have customers who operate in many different parts of the country.
Answer:
E. Have customers who operate in many different parts of the country.
Explanation:
Details about a lockbox plan and services explains that this is a banking service to companies by a certain bank or banks that proceeds and receives receipts of payments from its customers where they are directly channeled to a plan inwhich they work with the bank on behalf of the company instead of contacting the said company as the bank helps or fastens the receipt processing and. The lockbox is virtually known to be advantageous to customers who operate in many different parts of the country.
It is generally known to assist companies with a very efficient way of depositing customer payments, this is for companies that find it a bit hard to check and respond to mails.
Use the following information to answer the question: There are three firms in an economy: X, Y, and Z. Firm X buys $400 worth of goods from Firm Y, and $200 worth of goods from Firm Z to produce 250 units of output at $3 per unit. Firm Y buys $250 worth of goods from Firm X and $250 worth of goods from Firm Z to produce 250 units of output at $4 per unit. Firm Z buys $100 worth of goods from Firm X and $500 worth of goods from Firm Y to produce 500 units at $2 per unit. Given this information, using the Value Added approach to eliminating intermediate goods and services (in order to avoid double-counting), what is the economy's GDP
Answer:
$1,050
Explanation:
Value Added Approach to calculating the GDP avoids double counting by adding only the value addition of all firms in an economy to obtain the GDP. Value addition for each firm can be calculated by deducting the intermediate purchase of each firm from its intermediate sales as follows:
Firm X value addition = ($250 * 3) - $400 - $200 = $750 - $600 = $150
Firm Y value addition = ($250 * 4) - $250 - $250 = $1,000 - $500 = $500
Firm Z value addition = (500 * 2) - $100 - $500 = $1,000 - $600 = $400
Therefore, we have:
The economy's GDP = $150 + $500 + $400 = $1,050
Umatilla Bank and Trust is considering giving Pohl Company a loan. Before doing so, it decides that further discussions with Pohl’s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $275,000. Discussions with the accountant reveal the following.
1. Pohl Company sold goods costing $55,000 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
2. The physical count of the inventory did not include goods costing $95,000 that were shipped to Pohl Company FOB destination on December 27 and were still in transit at year-end.
3. Pohl Company received goods costing $25,000 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count.
4. Pohl Company sold goods costing $51,000 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Pohl Company physical inventory.
5. Pohl Company received goods costing $42,000 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $275,000.
Required:
Determine the correct inventory amount on December 31.
Answer: $309,000
Explanation:
First it is important to note the difference between the Shipping terms.
FOB (Free on Board) Shipping Point means that the goods being sold belong to the owner as soon as the seller leaves it at shipping point. Shipping point being as soon as the Carrier delivering it has picked it up from the seller. At this point it should no longer be included in the Seller's books but in the buyer's.
FOB Destination means that the goods only become that of the buyer when the buyer receives it. Until then, the goods are under the ownership of the Seller and need to be recorded in the books as such until the buyer receives it.
Reconciling the balance therefore,
Year end Balance is $275,000
1. Sales to Hemlock $55,000 not included in final balance is fine because it is FOB shipping point and as so it is not to be included in inventory.
2. Sales to Pohl FOB Destination of $95,000 not included in inventory count is fine because it should only be included when it is received as it was shipped FOB Destination.
3. Pohl company should have INCLUDED this $25,000 because it was shipped FOB Shipping point meaning that Pohl gets ownership as soon as Yanice Co sent it on December 26 which is within the period.
4. Pohl should INCLUDE the $51,000 because it shipped the goods FOB Destination meaning that it only relinquishes Ownership when Ehler of Canada receives it which was in the next period.
5. Pohl SHOULD NOT HAVE INCLUDED the $42,000 balance in the inventory amount because it was shipped FOB Destination which means that they only get Ownership when they receive it. They received it in the next period and as such should not include it in there period in question.
Calculating the inventory amount then gives,
= 275,000 + 25,000 + 51,000 - 42,000
= $309,000
The correct inventory amount on December 31 is $309,000
The correct inventory amount on December 31 is = $309,000
What is the Inventory amount?
Preferably, it is important to note the distinction between the Shipping terms.
FOB (Free on Board) Shipping Point suggests that the goods being sold belong to the proprietor as soon as the seller vamooses them at the shipping point. The shipping point is as soon as the Carrier delivering it has picked it up from the seller. At this moment, it should no longer be included in the Seller's books but in the buyer's.
FOB Terminus indicates that the goods only become that of the buyer when the buyer receives them. Until then, the goods are under the ownership of the Seller and also they need to be recorded in the books as such until the buyer receives them.
Negotiating the balance, therefore,
The year-end Balance is $275,000
1. Sales to Hemlock $55,000 not included in last balance is fine because it is FOB shipping point and as so it is not to be contained in inventory.
2. Sales to Pohl FOB Destination of $95,000 not retained in inventory count is fine because it should only be included when it is received as it was shipped to FOB Destination.
3. Pohl company should have INCLUDED this $25,000 because it was shipped FOB Shipping point definition that Pohl gets ownership as shortly as Janice Co sent it on December 26 which is within the time.
4. Pohl should INCLUDE the $51,000 because it shipped the goods FOB Destination suggesting that it only relinquishes Right when Ehler of Canada receives it which was in the next period.
5. Pohl SHOULD NOT HAVE INCLUDED the $42,000 reward in the stock amount because it was shipped FOB Terminus which suggests that they only get Ownership when they accept it. They received it in the next period and as such should not enclose it in their period in question.
Now the Calculating of the inventory amount then gives,
= 275,000 + 25,000 + 51,000 - 42,000
= $309,000
Therefore, The correct inventory amount on December 31 is $309,000
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At a lump-sum cost of $72000, Sunland Company recently purchased the following items for resale: Item No. of Items Purchased Resale Price Per Unit M 4600 $4.05 N 2300 12.60 O 6600 6.60 The appropriate cost per unit of inventory is: M N O $3.63 $11.28 $5.91 $3.20 $9.95 $5.21 $5.33 $5.33 $5.33 $4.05 $12.60 $6.60
Answer:
M = $3.20
N = $9.95
O = $5.21
I believe it is the second option.
Explanation:
Item No. of Items Purchased Resale Price Per Unit
M 4,600 $4.05
N 2,300 $12.60
O 6,600 $6.60
total resale price:
M = 4,600 x $4.05 = $18,630N = 2,300 x $12.60 = $28,980O = 6,600 x $6.60 = $43,560total = $91,170markup % = ($91,170 - $72,000) / $72,000 = 26.625%
purchase cost per unit:
M = $4.05 / ( 1 + 26.625%) = $3.20N = $12.60 / ( 1 + 26.625%) = $9.95O = $6.60 / ( 1 + 26.625%) = $5.21Terrel Gifts produces logo platters and cups bearing the name of the city in which the items will be sold to tourists. Indirect logo printing costs are allocated to platters and cups based on the amount of time spent on the logo machine. The company has budgeted logo costs of $4,224 per month and expects to spend 4,800 hours on the printing logos each month. Each platter uses 24 minutes and each cup spends 6 minutes on the logo machine. How much of the logo printing costs will be allocated to each platter?
Answer:
$0.3528
Explanation:
So, we are given the following data or parameters or information in the question above as:
=> " The company has budgeted logo costs = $4,224 per month."
=> "Time that is being expected to be spent = 4,800 hours on the printing logos each month. "
=> " Each platter uses 24 minutes and each cup spends 6 minutes on the logo machine."
The amount of money the logo printing costs will be allocated to each platter;
Thus, 0.0147 × 24 = 0.3528.
Kindly note that the value; 0.0147 comes from the division of 4800 hours by 60 per each hour
Tedd E. Bear has an annual salary of $48,000 with no other loans outstanding. Using the 25% guideline from class and with a 20% down payment, how expensive of a home can Tedd purchase using a 4%, 30 year mortgage
Answer:
The total loan value would be of $261,825
Explanation:
In order to calculate how expensive of a home can Tedd purchase using a 4%, 30 year mortgage we would have to calculate first the amount of annual payments as follows:
amount of annual payments = $48,000*0.25 = $12,000
PMT = 12,000/12 = 1000
FV = 0
rate = 4%/12
N = 30*12
Hence, use FV function in Excel amount after down payment = $209,461.24
this represents 80% of the loan , so total loan value = $209,461.24/0.8 = $261,825
The total loan value would be of $261,825
The total loan amount is $261,825.
The calculation is as follows:Amount of annual payments = 25% of $48,000 = $12,000
PMT = 12,000 ÷ 12 = $1,000
FV = $0
Rate = 4% ÷ 12 = 0.333%
N = 30 × 12 = 360
Here we have to apply the FV function in the excel.
So,
Amount after downpayment = 209,461.24
The above amount represents 80% of the loan
Now
Total loan value is
= $209,461.24 ÷ 0.8
= $261,825
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Executives at Barbco, a pharmaceutical manufacturer, are preparing to introduce Betatron, a new vitamin into the market. The following cost information pertains to new vitamin:Chemical compound $1.25/bottlePackaging/label $0.35/bottleDeveloper royalties $1.00 bottleAdvertising and promotion $675,000Barbco overhead $500,000Selling price per bottle to distributor $9.00Based on the above, answer the following three questions.Based on the information provided above:Dollar contribution per bottle?Based on the information provided above:Net profit if 1 million bottles are sold?Based on the information provided above:Necessary unit volume to achieve a $200,000 profit.
Answer:
$6.4
$ 5,225,000
214,844 units
Explanation:
Contribution per unit is the selling price per unit minus the variable cost
selling price per bottle is $9.00
variable cost=cost of chemical compound per bottle+ packaging/label+ cost of royalties
variable cost=$1.25+$0.35+$1.00=$2.6
Contribution per unit=$9.00-$2.60=$6.4
net profit of 1 million:
Sales ($9*1000,000) $9,000,000
variable cost($2.6*1,000,000) ($2,600,000)
contribution $6,400,000
Fixed costs($675,000+$500,000) ($1,175,000)
Net profit $ 5,225,000
Unit volume to achieve profit of $200,000=fixed cost+ target profit/contribution per unit=($1,175,000+$200,000)/6.4= 214,844
On January 1, the Sleepy Monk Coffee Shop paid $15,000 for a full year of rent beginning on January 1. The rent payment was appropriately recorded in the Cash and Prepaid Rent accounts. If financial statements are prepared on January 31, the journal entry to record the adjustment would be:
Answer:
If financial statements are prepared on January 31, the journal entry to record the adjustment would be debit rent expense and credit prepaid rent for $1,250
Explanation:
According to the given data the rent has been expired for one month so only one month's rent expense will be recorded. Therefore to calculate one month's rent expense we have to make the following calculation:
one month's rent=Total rent/period for which rent is paid*1
one month's rent=$15,000/12*1
one month's rent=$1,250
Therefore, If financial statements are prepared on January 31, the journal entry to record the adjustment would be debit rent expense and credit prepaid rent for $1,250
Introduction to the future value of money. Under the concepts of the time value of money, you can determine the future value of an amount invested today that will earn a given interest rate over a given amount of time. This technique can be used to calculate the future value of:
(1) a single receipt or payment made
(2) a series of receipts or payments.
Lexi and Luke are sitting together, with their notebooks and textbooks open, at a coffee shop. They've been reviewing the latest lecture from Dr. Thibodeaux's financial management class by asking each other questions Today's topic addressed the calculation of future values for both simple and compound interest-earning accounts. Complete the missing information in the conversation that follows. Round your final answer to all computations to two decimal places. However, if you compute any interest factors as an intermediate step in your calculations, round them to four decimal places.
Lexi So, why is it important to be able to calculate the future value of some amount invested?
Luke First, remember that the amount invested is usually called _______maturity payment and the amount earned during the investment period is called_________interest.It is important to be able to calculate a future value so that you can know in advance what a given amount of principal will be worth after earning a specified________ interest rate for a known_________
Lexi OK, I understand that, and I know the amount of principal invested today can be called the ________ value of the investment, whereas the amount realized after the passage of t period of time is called its _________ value. But what causes the present and future values to be different values?
Luke Two things cause the present and future values to be different amounts. First, the _________ earned during the investment period causes the future value to be greater than, equal to, or less than the present value. Second, the method used to calculate the interest earned-that is, whether the account pays ______________ interest-determines the________.
Answer:
Principal
interest
interest for a known period
present value
future value
interest
simple or compound interest
the amount by which the future value differs from the present value
Explanation:
The initial amount invested is known as the principal amount.
The increase over and above the principal invested is called interest.
The duration of the investment is the period which the interest is earned.
present value is the present worth of investment
future value is the future amount that the investment would worth after been invested for a known period
What are the benefits and risks of being acquired by a larger company?
1. Cost Management Systems: Analyze the process of assigning and allocating costs. Discuss the development of an activity-based costing system and how activity based management is used in decision making. Compare and contrast Just-In-Time and Quality Management Systems.
Explanation:
The assigning and allocation of costs in an organization can be defined as essential processes to assist in the management of organizational budgets, being characterized as essential activities for the company's accounting department.
An activity-based costing system can be initiated according to the identification of the scope of organizational projects, and then carry out an appropriate planning so that the costs of the company in relation to all organizational systems are identified and then eliminate subjectivity and carry out a more precise cost management and greater control, which guarantees a decision making more directed to the organizational needs, focused on reducing unnecessary costs.
The relationship between the cost management system and the Just-In-Time and quality management systems is that these two systems are focused on reducing waste and maintaining quality in all organizational processes, and controlling of the organizational costs realized by a cost management system will reduce the waste of undue costs of the company, increase its efficiency and quality, as this system assists in the control and coordination of the systems, which results in an improvement of all organizational processes.
Suppose that the last four months of sales were 8, 10, 15, and 9 units, respectively. Suppose further that the last four forecasts were 5, 6, 11, and 12 units, respectively. What is the Mean Absolute Deviation (MAD) of this forecasting period?
A. 2
B. -10
C. 5.5
D. 9
E. 10.5
Answer:
-25.5
Explanation:
First, we find the Mean
= 5+6+11+12=34
Absolute mean value= (5-34) + (6-34) + (11-34) + (12-34) = -102/4=-25.5
Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:
Sales $17,600,000
Net operating income $6,200,000
Average operating assets $36,000,000
Required:
a. Compute the margin for Alyeska Services Company.
b. Compute the turnover for Alyeska Services Company.
c. Compute the return on investment (ROI) for Alyeska Services Company.
Answer:
a. The margin for Alyeska Services Company: 35.23%
b. The turnover for Alyeska Services Company: 0.49
c. The return on investment (ROI) for Alyeska Services Company: 17.22%
Explanation:
a. The profit margin reflects a company's overall ability to turn income into profit, is calculated by formula:
Profit margin = (Net operating income/Net sales ) x 100% = $6,200,000/$17,600,000 x 100% = 35.23%
b. Asset turnover helps investors understand how effectively companies are using their assets to generate sales. Asset turnover is calculated by using following formula:
Asset Turnover = Total Sales/ Average Total Assets = $17,600,000/$36,000,000 = 0.49
c. Return on investment (ROI) is calculated by using following formula:
ROI = Net income/Total investment x 100%
In Alyeska Services Company,
ROI = Net operating income/Average operating assets x 100% = $6,200,000/$36,000,000 x 100% = 17.22%
g Job 397 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $ 44,000 Direct labor-hours 630 DLHs Direct labor wage rate $ 12 per DLH Number of units completed 2,000 units The company applies manufacturing overhead on the basis of direct labor-hours. The predetermined overhead rate is $12 per direct labor-hour. Required: Compute the unit product cost that would appear on the job cost sheet for this job.
Answer:
$29.56
Explanation:
The computation of unit product cost is shown below:-
Unit product cost = (Direct material + Direct labor + Manufacturing overhead) ÷ Number of units completed
= ($44,000 + (63 × $12) + ($12 × 630)) ÷ 2,000
= ($44,000 + $7,560 + $7,560) ÷ 2,000
= $59,120 ÷ 2,000
= $29.56
Therefore for computing the unit product cost we simply applied the above formula.
Elaborate on two instances at the workplace where "silence is golden " may be applicable.
Answer:
"Silence is golden" teaches that it is not everytime that somebody must say something. At times, it is better to keep quiet and listen to others and the environment instead of talking meaninglessly.
At the workplace, it is better to apply this "silence is golden" rule instead of asking or making unrelated questions or comments. Relevance is important in communication. Off-handed revelations can be offsetting and can damage one's character, if left unchecked. If you want to ask a question in any situation, please ensure that the question is related to the topic under discussion. If you want to make a comment during departmental meetings, first make the comment in your head and evaluate its relevance to the subject being discussed. After your evaluation, you may discover it was not necessary to ask the question or make the comment, then withdraw it. Do not fall into the habit of asking irrelevant questions or making unnecessary comments because you want your voice to be heard. We learn more from listening to others than from talking.
Another instance were "silence is golden" is when you are under emotions. Hold yourself in check at such moments and do not allow yourself to ask questions or make comments that will hurt the feelings of those around you. Some people are sentimental and will not appreciate nor excuse such remarks. Hold your tongue. Cry if you must, but do not voice out your emotions without control. People do not easily forget such remarks even though they realize that you were emotionally charged. Let your peace reign in your heart.
Explanation:
A workplace is not the most appropriate place to voice out some thoughts. You must recognize your purpose of being there in the first instance: to work and earn a living. So, simply do that. Do not be known as a talkative.
Uber has made several decisions creating new product lines aimed at growing revenue, such as establishing UberEats, Uber Fresh, and UberTASTE for food delivery; UberRUSH for package delivery; and UberCARGO and UberVAN for moving goods. This strategy is known as
Answer:
The strategy described above is known as Umbrella (or Family) Brand Strategy
Explanation:
Family branding is a marketing concept where a company with strong equity uses a single brand name to sell two or more products under the same category.
In the question we see two broad categories:
Foods;CargoAnd there, you have under each broad group, sub-categories using the brand Uber.
Real-life examples of successful umbrella brands are:
Apple (iPhone, iMac, iPod etc)AdidasPokémon etc.The advantage of Umbrella Branding as a business strategy is that the cost required to launch a product under a different brand is significantly avoided if the new product is affixed with the existing brand.
If however, the company fails to get it right, by enveloping a different line of product in the existing brand, it may water down the brand and also confuse customers.
Cheers!
You have a portfolio that is invested 14 percent in Stock R, 50 percent in Stock S, and the remainder in Stock T. The beta of Stock R is .81, and the beta of Stock S is 1.36. The beta of your portfolio is 1.30. What is the beta of the Stock T
Answer:
1.41 Approx
Explanation:
The computation of the beta for the stock T is shown below:
Beta of portfolio = Respective betas × Respective investment weights
1.30 = (0.14 × 0.81) + (0.5 × 1.36) + (0.36 × beta of the Stock T)
1.30 =0.7934 + (0.36 × beta of the Stock T)
beta of the Stock T = (1.3 - 0.7934) ÷ 0.36
= 1.41 Approx
We simply multiplied the beta of each stock with its investment weights order to calculate the beta of the stock T as portfolio beta is given
The following data were provided by Rider, Inc, which produces a single product:
Units in beginning inventory 0
Units produced 5,000
Units sold 4,500
Variable costs per unit:
Manufacturing $10
Selling and administrative $4
Fixed costs in total:
Manufacturing $15,000
Selling and administrative $10,000
a. lower than the net operating income under variable costing.b. higher than the net operating income under variable costing.c. the relation between absorption costing and variable costing net operating incomes cannot be determined.d. the same as the net operating income under variable costing.
Answer:
The correct option is B, higher than the net operating income under variable costing
Explanation:
In calculating the net operating profit under variable costing, the fixed manufacturing cost of $15,000 is deducted as a whole in arriving at net profit.
However, under absorption costing method, only the goods sold are charged with their own portion of fixed manufacturing cost totaling $15,000
Fixed under variable costing method=$15,000
fixed cost under absorption costing method=$15,000/5,000*4500=$13500
Since fixed cost is lower under absorption costing method, net profit tends to be higher.