What are the benefits and risks of being acquired by a larger company?

Answers

Answer 1
The benefits are more customers , more money the company makes , they are more establishment , have greater access to funding. Risks are financial risks , operational risks , the company could fall apart , economic risks , etc. hope this helps you !

Related Questions

Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley issued $1,400,000 of 5-year, 6% bonds at a market (effective) interest rate of 3%, receiving cash of $1,593,666. Interest is payable semiannually on April 1 and October 1.

Required:
a. Journalize the entries to record the following.

1. Issuance of bonds on April 1, Year 1.
2. First interest payment on October 1, Year 1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.)

b. Explain why the company was able to issue the bonds for $22,282,220 rather than for the face amount of $21,300,000.

Answers

Answer:

a. Journalize the entries to record the following.

1. Issuance of bonds on April 1, Year 1.

Dr Cash 1,593,666

    Cr Bonds payable 1,400,000

    Cr Premium on bonds payable 193,666

2. First interest payment on October 1, Year 1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.)

premium per coupon = $193,666 / 10 coupons = $19,366.60

Dr Interest expense 22,633.40

Dr Premium on bonds payable 19,366.60

    Cr Cash 42,000

b. Explain why the company was able to issue the bonds for $1,593,666 (not $22,282,220) rather than for the face amount of $1,400,000 (not $21,300,000).

Since the bond's coupon rate was higher than the market rate, investors were willing to pay more for the bond (premium) than its face value. At $1,593,666, the actual returns will equal the returns of a $1,400,000 bond issued at market rate.

You buy a share of The Ludwig Corporation stock for $21.40. You expect it to pay dividends of $1.07, $1.1449, and $1.2250 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $26.22 at the end of 3 years.
A. Calculate the growth rate in dividends.
B. Calculate the expected dividend yield .
C. Assuming the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to get the expected total rate of return. What is the stock

Answers

Answer:

A. the growth rate in dividends = 7.00%

B. Expected dividend yield = 4.67%

C. Stock's xpected total rate of return = 11.67%

Explanation:

A. Calculate the growth rate in dividends

Current dividend growth rate = (Current year dividend - Previous year dividend) / Previous year dividend

Therefore,

Year 2 dividend growth rate = ($1.1449 - $1.07) / $1.07 = 0.0700, or 7.00%

Year 3 dividend growth rate = ($1.2250 - $1.1449) / $1.1449 = 0.0700, or 7.00%

This shows that;

Year 2 dividend growth rate = Year 3 dividend growth rate = 7.00%

B. Calculate the expected dividend yield

Dividend yield = Dividend per share / Market price per share

Therefore,

Expected dividend yield = Expected dividend per share in year 3 / Expected market price per share in year 3 = $1.2250 / $26.22 = 0.0467, or 4.67%

C. Assuming the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to get the expected total rate of return. What is the stock

Note: The complete statement is "What is this stock’s expected total rate of return?"

Stock's xpected total rate of return = Growth rate + Expected dividend yield in 3 = 7.00% + 4.67% = 11.67%.

Strait Co. manufactures office furniture. During the most productive month of the year, 3,300 desks were manufactured at a total cost of $82,000. In the month of lowest production, the company made 1,130 desks at a cost of $59,000. Using the high-low method of cost estimation, total fixed costs are

Answers

Answer:

Using the high-low method of cost estimation, total fixed costs are $47,020  

Explanation:

Cost at highest level of activity = $82,000.00

Cost at Lowest level of activity = $59,000.00

Highest level of activity = 3,300

Lowest Level of activity = 1,130

Variable cost per unit = $(82,000 - 59,000) ÷ (3,300 -1,130)  

Variable cost per unit = $23,000 ÷ 2,170  

Variable cost per unit = $10.60  

Fixed Costs = $82,000 - (3,300 × 10.60)  

Fixed Costs = $47,020  

Assume the Macro Islands can produce 25 fishing boats or 150 jars of guava jelly in one hour. The Micro Islands can produce 30 fishing boats or 300 jars of guava jelly in the same time period. This data tells an economist that:________. a. the Macro Islands have an absolute advantage in producing fishing boats and the Micro Islands have an absolute advantage in producing guava jelly. b. the Micro Islands have an absolute advantage in producing fishing boats and the Macro Islands have an absolute advantage in producing guava jelly. c. the Macro Islands have a comparative advantage in producing fishing boats and the Micro Islands have a comparative advantage in producing guava jelly. d. the Micro Islands have a comparative in producing fishing boats and the Macro Islands have a comparative advantage in producing guava jelly. the Micro Islands have a comparative and absolute advantage in producing fishing boats.

Answers

Answer:

The correct answer is the option C: the Macro Islands have a comparative advantage in producing fishing boats and the Micro Islands have a comparative advantage in producing guava jelly.

Explanation:

To begin with the term of ''comparative advantage'' is refer to the quality of one country in comparison with another to produce in a better way, a more eficient way, a good. Therefore that when a country has a comparative advantage over another country it means that the first country can produce more of a good with less resources that the second country.

That is why, that the Macro Islands have a comparative advantage in producing fishing boats over the Micro islands due to the fact that there is a very little difference with the other country meanwhile the Micro Islands have a comparative advatange in the production of guava jelly due to the amount of goods that it can produce in the same amount of time with the great amount difference in comparison with the Macro Islands. Therefore that one country chooses to produce the good in which it is better in comparison with the other.

An end-of-aisle price promotion changes the price elasticity of a good from −2 to −3. Suppose the normal price is $34, which equates marginal revenue with marginal cost at the initial elasticity of –2. What should the promotional price be when the elasticity changes to –3? (Hint: In other words, what price will equate marginal revenue and marginal cost?)

Answers

Answer:

MC = $17

P = $25.5

Explanation:

We proceed as follows;

Firstly calculate MC when e = -2, where MR = MC

(P-MC) / P = 1 / IeI

Here P = $34 and e = -2

(34 - MC) / 34= 1/ I-2I

(34 - MC) / 34= 1 / 2

78-2MC = 34

2MC = 34

MC = 34/2

MC = 17

Now, as we have MC, we will calculate the new price when e = -3

(P-MC) / P = 1 / IeI

(P - 17) / P = 1 / I-3I

(P - 17) / P = 1 / 3

3P -51 = P

2P = 51

P = 51/2

P = 25.5

Suppose you have a linear integer optimization problem. You solve the problem as a linear optimization problem by ignoring the integer constraints and obtain an integer optimal solution (i.e., your model did not require the variables to be integer, but it turned out when you solved the problem Solver found an optimal answer where the variables are integer).

Which of the statements below are correct (choose only one):

A. You can categorically state that you have the optimal solution to the integer optimization problem.
B. You can categorically state that you do not have the optimal solution to the integer optimization problem.
C. None of the above.

Answers

Answer:

Option(A) is the correct answer to the given question .

Explanation:

The integer programming problem is also known as the computational optimization or the functionality method that main objective to limits the some or many of the parameters may be integer. The objective of linear  optimization problem to make the objective function as well as integer constraints linear .

The integer programming problem conclusively specify of the optimised solution to the issue of the integral optimisation.All the other option are not correct for the linear integer optimization problem because they are not  give objective function as well as integer constraints as linear .

A local radio commercial costs $600 and reaches an estimated 10,250 listeners. A local cable commercial costs $1000 and reaches an estimated 18,500 viewers. Which medium provides the lowest CPM?


a. The radio commercial
b. The cable commercial
c. The radio and cable commercials have the same CPM
d. The CPM cannot be calculated given the limited information provided
e. None of the above

Answers

Answer:

b. The cable commercial

Explanation:

CPM or cost per mille is a measure used in advertising to determine how effectively a promotional message is getting to its audience. It is the cost of getting an advert in front of 1,000 people.

In this scenario when we calculate CPM for the radio station

$600 = 10,250 listeners

x= 1,000 listeners

Cross multiply

x= (600 * 1,000) ÷ 10,250 = $58.54

For the local cable commercial

$1000 = 18,500 viewers

y = 1,000 viewers

Cross multiply

y= (1,000 * 1,000) ÷ 18,500= $54.05

How is each of the following likely to be affected by a recession:

a. the natural unemployment rate.
b. the cyclical unemployment rate.
c. the inflation rate.
d. the poll ratings of the president

Answers

The answer is A , because the natural unemployment rate

Each of the following likely to be affected by a recession is the cyclical unemployment rate. The correct option is b.

What is a recession?

The term "recession" is used in economics to describe the economic downturn brought on by a reduction in supply or demand. The production, employment, and income of domestic economies generally diminish, which in turn results in additional drops in demand and investment, lengthening the recessive process.

Because of this, when demand or production falls, the recession tends to last longer, deepen, and speed up, signaling that the affected nation's domestic economy will be in decline.

A recession is a time in the economy when growth is generally slow, yet inflation is also high. It is crucial that market forces operate independently, without interference from the government, in order to prevent a recession.

Therefore, the correct option is b. the cyclical unemployment rate.

To learn more about the recession, refer to the link:

https://brainly.com/question/17001440

#SPJ5

Presented below are two independent situations: A) Sandhill Inc. acquired 10% of the 420,000 shares of common stock of Schuberger Corporation at a total cost of $15 per share on June 17, 2020. On September 3, Schuberger declared and paid a $120,000 dividend. On December 31, Schuberger reported net income of $520,000 for the year. B) Blue Corporation obtained significant influence over Hunsaker Company by buying 30% of Hunsaker’s 120,000 outstanding shares of common stock at a cost of $18 per share on January 1, 2020. On May 15, Hunsaker declared and paid a cash dividend of $120,000. On December 31, Hunsaker reported net income of $220,000 for the year. Prepare all necessary journal entries for 2017 for (a) Edelman and (b) Wen.

Answers

Answer:

The journal entries for both corporations is prepared below

A)

Date: June 17

Accounts title and Explanations: Stock investment, dr. (420,000*$15*10%) 630,000

Accounts title and Explanations: Cash, Cr. 630,000

____________________________

Date: Sept 3.

Accounts title and Explanations: Cash, dr. (120,000*10%) 12,000

Accounts title and Explanations: Dividend revenue, Cr. 12,000

______________________________

Date: Dec 31.

Accounts title and Explanations: Stock investments, dr. (520,000*10%) 52,000

Accounts title and Explanations: Investment revenue, Cr. 52,000

____________________________

B)

Date: Jan 1

Accounts title and Explanations: Stock investment, dr. (120,000*$18*30%) 648,000

Accounts title and Explanations: Cash, Cr. 648,000

____________________________

Date: May 15

Accounts title and Explanations: Cash, dr. (120,000*30%) 36,000

Accounts title and Explanations: Dividend revenue, Cr. 36,000

______________________________

Date: Dec 31.

Accounts title and Explanations: Stock investments, dr. (220,000*30%) 66,000

Accounts title and Explanations: Investment revenue, Cr. 66,000

____________________________

Mountain High Ice Cream Company transferred $63,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,300). Mountain High anticipates a $3,300 recourse obligation. The bank charges a 3% fee (3% of $63,000), and requires that amount to be paid at the start of the factoring arrangement. Required: Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answers

Answer:

Journal entries for Mountain high Ice cream is given below

Explanation:

Journal entries:

                                                    Debit                    Credit

Cash                                           54810(w1)

Loss on receivables                   6190

Factoring amount                      5300(fair value)

Recourse liability                                                     3300

Receivables                                                            63000

Workings 1

63000 x 90%-3% = 54810

g The Esposito Import Company had 1 million shares of common stock outstanding during 2021. Its income statement reported the following items: income from continuing operations, $7 million; loss from discontinued operations, $2.0 million. All of these amounts are net of tax. Required: Prepare the 2021 EPS presentation for the Esposito Import Company

Answers

Answer:

$5.00

Explanation:

Preparation of the 2021 EPS presentation for the Esposito Import Company

Earnings per share:

Income from continuing operations$7.00

Less Loss from discontinued operations(2.0)

Net income $5.00

Therefore the Net income after the Preparation of the 2021 EPS presentation for the Esposito Import Company is $5.00

An annual insurance policy is paid in advance by a company. How will the company treat this initial payment and the subsequent expiration of a portion of the policy over time?
A. The initial payment will be recorded as an increase to a Prepaid Insurance account.
B. Over time, the expired portion of the policy must be removed from the asset account as it has been used up and is no longer considered an asset.
C. As a portion of the policy expires, the expired portion will be removed and transferred to an expense account.
D. This prepayment of the policy will initially be treated as an expense and over time, the expired portion will be treated as an asset.

Answers

Answer:

The question requires the answering party to pick all that apply as found in the attached.

A. The initial payment will be recorded as an increase to a Prepaid Insurance account.

B. Over time, the expired portion of the policy must be removed from the asset account as it has been used up and is no longer considered an asset.

C. As a portion of the policy expires, the expired portion will be removed and transferred to an expense account.

Explanation:

The initial payment will be recorded as increase to an asset account,prepaid insurance is a correct statement,pending when the insurance cost is cost,

Subsequently,the expired the portion of the prepayment would be removed from the account,hence point B is also correct.

Finally,when the expired portion is removed from prepaid insurance account,it is transferred to insurance expense account,point C is also on point.

Swiss Group reports net income of $26,000 for 2017. At the beginning of 2017, Swiss Group had $184,000 in assets. By the end of 2017, assets had grown to $234,000. What is Swiss Group's 2017 return on assets?

Answers

Answer:

12.44%

Explanation:

The computation of the return on assets is shown below:

As we know that

Return on asset = Net income ÷ Average of total asset

= ($26,000) ÷ ($184,000 + $234,000) ÷ 2

= ($26,000) ÷ ($209,000)

= 12.44%

We simply applied the above formula so that the return on assets could be determined

Therefore we considered all the information given in the question

Answer:

12.44

Explanation:

Stritch Company is trying to decide how many units of merchandise to order each month. The company's policy is to have 20% of the next month's sales in inventory at the end of each month. Projected sales for August, September, and October are 24,000 units, 14,000 units, and 34,000 units, respectively. How many units must be purchased in September

Answers

Answer:

Purchases budget = 18,000 units

Explanation:

Purchases budget = Sales + closing inventory - opening inventory

Closing inventory for September = 20% of august sales = 20% × 34,000=6,800

Opening inventor for September = 20%× September = 20% × 14,000= 2800

Purchases budget for September = 14,000 + 6,800 - 2,800 = 18,000

Purchases budget = 18,000 units

Here are comparative statement data for Ivanhoe Company and Pharoah Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016.
2017 2016 2017 2016
(Ivanhoe (Ivanhoe (Pharoah (Pharoah
Company) Company) Company) Company)
Net sales $1,865,000 $595,000
Cost of goods sold 1,064,000 279,000
Operating expenses 252,000 84,000
Interest expense 8,000 1,800
Income tax expense 70,900 35,000
Current assets 583,495 $559,214 149,171 $142,246
Plant assets (net) 942,972 895,000 250,113 225,203
Current liabilities 118,722 135,709 63,273 54,203
Long-term liabilities 204,042 161,100 53,020 44,750
Common stock, $10 par 895,000 895,000 214,800 214,800
Retained earnings 308,703 262,405 68,192 53,696
Required:
Prepare a vertical analysis of the 2017 income statement data for Ivanhoe Company and Pharoah Company.

Answers

Answer:

                            Condensed Income Statement

                       For the Year Ended December 31, 2017

                                               Ivanhoe Company     Pharaoh Company

Net sales                                 $1,865,000  100%      $595,000   100%

Cost of goods sold                ($1,064,000)  57%       ($279,000)   47%

Gross profit                                $801,000   43%         $316,000   53%

Operating expenses               ($252,000)   14%         ($84,000 )   14%

EBIT                                           $549,000   29%        $232,000   39%

Interest expense                         ($8,000)  0.4%            ($1,800 )  0.3%

Income tax expense                 ($70,900)  3.8%         ($35,000)  5.9%

Net income after taxes             $470,100  25.2%        $195,200  32.8%

A vertical analysis of an income statement uses net sales as the reference for all the other accounts. The other accounts are shown as a % of total net  sales.  

Ma Barker Company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor hours were estimated at $100,000 and 40,000 hours, respectively, for the year. In July, Job #334 was completed at a cost of $5,000 in direct materials and $2,400 in direct labor. The labor rate is $6 per hour. If Job #334 contained 200 units, the unit product cost on the completed job cost sheet would be:___________.
a) $42.00
b) $39.50
c) $41.90
d) $37.00

Answers

Answer:

The correct answer is option (A) $42.00

Explanation:

Solution

Given that:

The established rate  is given as = 100,000/40,000

= $2.5 per hour

Thus

The cost of the job is shown is shown below:

The direct material = $5,000

The direct labor = $2400

Then

The manufacturing overheard is = 400 * 2.5 = $1,000

So,

The total cost is = $5,000 + $2400 + $1000 = $8,400

To get our unit cost,

Unit cost = $8400/200 = $42.00

It is important to know that, the  number of labor hours used in jobs = Total labor cost/Rate per hour

=2,400/6 = 400 hours

Select the best closing paragraph of a bad-news letter. a. Once again, we want to express how sorry we are that we are not able to offer you the position. b. We wish you the best in your job search. c. If you have further questions about this decision, please feel free to call me immediately. d. We regret that we are unable to consider your application

Answers

Answer:b

Explanation:

Identify the financial statement​ (or statements) that each account would appear on. Use I for Income​ Statement, RE for Statement of Retained​ Earnings, B for Balance​ Sheet, and C for Statement of Cash Flows.

1. Accounts Payable
2. Cash
3. Common Stock
4. Accounts Receivable
5. Rent Expense
6. Service Revenue
7. Office Supplies
8. Dividends
9. Land
10. Salaries Expense

Answers

Answer: Please refer to Explanation

Explanation:

1. Accounts Payable - Balance Sheet

This is a balance sheet item under Current Liabilities. It shows the firm's or people that the company owes for buying goods on account.

2. Cash - Balance Sheet Item.

It shows the amount of cash that the company has. It is a Current Asset.

3. Common Stock - Balance Sheet Item

This is a balance sheet item that shows the amount of common stock in the company. It is reporters in the Stockholders' Equity section along with Retained Earnings, Treasury Stock and Preferred stock.

4. Accounts Receivable - Balance Sheet item

Reported in the balance sheet under the Current Assets section. It is used to denote those customers who bought goods on account from the company.

5. Rent Expense - Income Statement

This is an expense and as such is treated in the Income statement and subtracted from the revenue.

6. Service Revenue - Income statement

The company gets this when they provide a service and as such it is revenue which will be added to the company's total revenue.

7. Office Supplies - Income Statement

They should be recorded in the income statement if they are used in the period in question as they will be expenses used in the upkeep of the office.

8. Dividends - Statement for Retained Earnings

These will be reflected in the statement for retained earnings as they are subtracted from the Retained Earnings. The Retained Earnings balance reported will then be Net of Dividends.

9. Land - Balance Sheet

Land is a fixed asset and as such will appear on the balance sheet of a company.

10. Salaries Expense - Income Statement item.

As an expense, this goes to the Income statement and will be deducted fro the revenue for the period. Bear in mind that this and all other expenses should only be deducted if they are from the period in question.

Division A does not have excess capacity to produce Product XX. The division can sell Product XX for $10 per unit outside the company. Variable costs are $6 per unit. Division B wants to purchase Product XX from Division A to use in Product ZZ. The selling price of Product ZZ is $25 per unit and variable costs to finish the product after the transfer are $12 per unit. An outside supplier will sell Product XX for $12 per unit. What is the minimum transfer price for Division A

Answers

Answer:

Minimum transfer price = $10

Explanation:

The  Division A is operating at full capacity, hence it has no excess capacity

This implies that it can not produce enough to meet both the internal demand (from Division B) and external buyers.  

Hence, it implies that Division A can not accommodate the demands of the  Division B at a price lower than the external price of $10. Any price lower than $10 would  result into a loss in contribution.

To maximize and optimize the group profit

Minimum transfer price = External selling price at which Division A can sell product XX

Minimum transfer price = $10

Atkinson Construction assembles residential houses. It uses a job-costing system with two direct-cost categories (direct materials and direct labor) and one indirect-cost pool (assembly support). Direct labor-hours is the allocation base for assembly support costs. In December 2016, Atkinson budgets 2017 assembly-support costs to be $8,800,000 and 2017 direct labor-hours to be 220,000.At the end of 2017, Atkinson is comparing the costs of several jobs that were started and completed in 2017.Laguna Model Mission ModelConstruction period Feb-June 2017 May-0ct 2017Direct material costs $106,550 $127,450Direct labor costs $ 36,250 $41,130Direct labor-hours 970 1,000Direct materials and direct labor are paid for on a contract basis. The costs of each are known when direct materials are used or when direct labor-hours are worked. The 2017 actual assembly-support costs were $8,400,000, and the actual direct labor-hours were 200,000.Required:1. Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they differ?2. What are the job costs of the Laguna Model and the Mission Model using (a) normal costing and (b) actual costing?3. Why might Atkinson Construction prefer normal costing over actual costing?

Answers

Answer:

1. Compute the

(a) budgeted indirect-cost rate

$40 per labor hour

and (b) actual indirect-cost rate.

$42 per labor hour

Why do they differ?

Because total assembly support costs and labor hours were different.They both were actually lower than expected, but the labor hours were 9% lower while the costs were around 5% lower. That is why the actual rate increased (denominator decreased more than numerator).

2. What are the job costs of the Laguna Model and the Mission Model using (a) normal costing

                                               Laguna Model       Mission Model

assembly-support cost                $38,800               $40,000

and (b) actual costing?

                                              Laguna Model       Mission Model

assembly-support cost                $40,7400               $42,000

3. Why might Atkinson Construction prefer normal costing over actual costing?

The problem with actual costing is that they cannot be budgeted, you can only budget normal costing. Any business has to prepare budgets in order to control how their operations are being carried out and then they need to adjust them to the actual costs incurred.

Explanation:

                                                  Laguna Model       Mission Model

Construction period                 Feb-June 2017       May-0ct 2017

Direct material costs                   $106,550              $127,450

Direct labor costs                         $36,250                 $41,130

Direct labor-hours                             970                      1,000

budgeted indirect cost rate:

assembly-support costs $8,800,000

direct labor-hours 220,000

budgeted assembly-support cost per labor hour = $8,800,000 / 220,000 = $40 per hour

                                               Laguna Model       Mission Model

assembly-support cost                $38,800               $40,000

actual indirect cost rate:

assembly-support costs $8,400,000

direct labor-hours 200,000

actual assembly-support cost per labor hour = $8,400,000 / 200,000 = $42 per hour

                                               Laguna Model       Mission Model

assembly-support cost                $40,7400               $42,000

The Foundational 15 [LO10-1, LO10-2, LO10-3]
[The following information applies to the questions displayed below.]
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:
Direct materials: 5 pounds at $9 per pound $ 45
Direct labor: 3 hours at $14 per hour 42
Variable overhead: 3 hours at $9 per hour 27
Total standard cost per unit $ 114
The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,800 units and incurred the following costs:
Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.
Direct laborers worked 65,000 hours at a rate of $15 per hour.
Total variable manufacturing overhead for the month was $612,300.
rev: 11_20_2017_QC_CS-109672
Foundational 10-12
What variable manufacturing overhead cost would be included in the company’s planning budget for March?

Answers

Answer:

$540,000

Explanation:

The amount on of variable manufacturing overhead cost to be included in the company's planning budget for March is budgeted production units of 20,000 units multiplied by standard direct labor hours of 3 hours per unit multiplied by cost of direct labor hour used for variable overhead which is $9.

budgeted variable overhead cost for March=20,000*3*$9=$540,000.00  

However, the actual cost of variable manufacturing overhead for the month is $612,300,hence an adverse variance of $72,300 is recorded ($612,300-$540,000)

Suppose that the Federal Reserve decides to increase the money supply with a $300 purchases of Treasury bills. Complete the tables that represent the financial position of the Federal Reserve and commercial banks after this open-market operation. Be sure to use a negative sign for reduced values.For the Federal Reserve, what are assets? What are liabilities?

Answers

Answer:

The correct answer to the following question will be "Treasury bills, Monetary Base ". The further explanation is given below.

Explanation:

(A)...

Assets: $300 (tax bills)  

If it's bought by Federal Reserve, it's going to be the asset portion.

(B)...

Reserves: $300 (Commercial Banking liabilities)  

Based mostly on reserve requirements, banks would then deposit funds to Federal Reserve. All of the lenders will carry through.

(C)...

Treasury Deposits or bills = -$300  

Certain bills would go down by $300 as either a result of Federal Reserve purchases.

(D)...

Bookings or Reserves: + $300  

This would be growing by $300 because of the sale of treasury bills. It won't bring any changes to the aspect of liability.

If researchers add financial treasury obligations with reserves as well as circulating documents, so it becomes a financial basis. Such that the answer given is indeed the appropriate one.

Chen Company's account balances at December 31, 2017 for Accounts Receivable and the Allowance for Doubtful Accounts are $800,000 debit and $1,500 credit. Sales during 2017 were $2,750,000. It is estimated that 1% of sales will be uncollectible. The adjusting entry would include a credit to the allowance account for:___________.
A) $29,000.
B) $27,500.
C) $26,000.
D) $8,000.

Answers

Answer:

B) $27,500.

Explanation:

The computation of the amount credited to the allowance account is shown below:

= Sales during the 2017 year × estimated  uncollectible percentage

= $2,750,000 × 1%

= $27,500

By multiplying the sales with the estimated  uncollectible percentage we can get the amount credited to the allowance account and the same is to be considered

Hence, the correct option is B

Work Place Products Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 50,000 shares of preferred 2% stock, $40 par and 750,000 shares of $7 par common stock. The following selected transactions were completed during the first year of operations:
Journalize the transactions.
a. July 1. Issued 400,000 shares of common stock at par for cash.
b. July. 1. Issued 1,000 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.
c. Aug. 7. Issued 80,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $250,000, $400,000, and $70,000, respectively. For a compound transaction, if an amount box does not require an entry, leave it blank.
d. Sept. 20. Issued 25,000 shares of preferred stock at $44 for cash. For a compound transaction, if an amount box does not require an entry, leave it blank.

Answers

Answer and Explanation:

The Journal entries are shown below:-

1. Cash Dr,  $2,800,000 (400,000 × $7)

          To Common stock $2,800,000

(Being issue of common stock is recorded)

Here we debited the cash as as it increased the assets and we credited the common stock as it also increased stockholder equity

2. Organisation expenses Dr, $7,000 (1,000 × $7)

         To Common stock $7,000

(Being issue of common stock for organisation expenses is recorded)

Here we debited the organization expenses as  it increased the expenses  and we credited the common stock as it also increased stockholder equity

3. Land Dr,  $250,000  

Building Dr, $400,000  

Equipment $70,000  

       To Common stock  $560,000

      To Paid in capital in excess of par value- Common stock $160,000

(Being exchange of common stock with Land, building and equipment is recorded)

Here we debited the land, building, equipment as it increased the assets  and we credited the common stock and paid in capital in excess of par value as it also increased stockholder equity

4. Cash Dr,  $1,100,000 (25,000 × $44)

       To Preferred stock  $1,000,000  (25,000 × $40)

       To Paid in capital in excess of par value-preferred stock $100,000

(Being issue of preferred stock is recorded)  

Here, we debited the cash as it increased the assets  and we credited the preferred stock and paid in capital in excess of par value as it also increased stockholder equity

yler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $420,000 and total machine hours at 60,000. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Job 101 Job 102 Job 103 Total Direct materials used $ 19,200 $ 14,400 $ 9,600 $ 43,200 Direct labor $ 28,800 $ 11,200 $ 9,600 $ 49,600 Machine hours 1,000 hours 4,000 hours 2,000 hours 7,000 hours Job 101 was completed and sold for $60,000. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $45,000. Required: 1. Calculate the predetermined overhead rate. 2. Compute the total manufacturing overhead applied to the Work in Process Inventory account during the first month of operations. 3. Compute the balance in the Work in Process Inventory account at the end of the first month.

Answers

Answer:

1. $7.00

2. $49,000

3. $33,200

Explanation:

1. The computation of predetermined overhead rate is shown below:-

Predetermined overhead rate = Estimated overhead ÷ Estimated machine hours

= $420,000 ÷ 60,000

= $7.00

2. The computation of total manufacturing overhead applied is shown below:-

Particulars                    Job 101    Job 102      Job 103     Total

Direct material             $19,200    $14,400     $9,600    $43,200

Direct labor                  $28,800    $11,200     $9,600    $49,600

Manufacturing

overhead                      $7,000      $28,000    $14,000   $49,000

Total                              $55,000    $53,600    $33,200  $141,800

3. The computation of balance in the Work in Process Inventory account at the end of the first month is shown below:-

Particulars                    Job 101    Job 102      Job 103     Total

Direct material             $19,200    $14,400     $9,600    $43,200

Direct labor                  $28,800    $11,200     $9,600    $49,600

Manufacturing

overhead                      $7,000      $28,000    $14,000   $49,000

Total                              $55,000    $53,600    $33,200  $141,800

Job 101 is completed and sold

Job 102 is completed and kept in finished goods inventory.

Job 103 is balance which indicates the work in progress.

your investment has a 20% chance of earning 30% rate of return, a 50% chance of earning a 10% rate of return, and a 30% chance of losing 7%. what is your expected return on investment

Answers

Answer:

8.9%

Explanation:

From the question above

- The investment has 20% chance of earning 30% rate of return

= 20/100

Number or chances= 0.2

- The investment has a 50% chance of earning 10% rate of return

= 50/100

Number of chances = 0.5

- The investment has 30% chance of losing 7%

= 30/100

Number of chances= 0.3

Therefore, the expected return on investment can be calculated as follows

=0.2(30) + 0.5(10) + 0.3(-7)

=6 + 5 - 2.1

= 11-2.1

= 8.9%

Hence the expected return on investment is 8.9%

Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $ 60 comma 000 for proposal A and $ 75 comma 000 for proposal B. The variable cost is $ 12.00 for A and $ 10.00 for B. The revenue generated by each unit is $ 22.00.

Required:
a. What is the break-even point in units for proposal A?
b. What is the break-even point in units for proposal B?

Answers

Answer:

                                             Break-event point

Product A                                      6,000 units

Product B                                      6,250 units

Explanation:

The break-even point is the level of activity that a business must operate to equate total revenue to total cost . At the break even point, the business makes no profit or loss., and the total contribution is equal to total fixed cost

The break-even point is calculated as follows:

Total general fixed cost/(selling price - variable cost)

Break-even point = 60,000/(22-12)=6000  units

Product B

Beak-even point = 75,000/(22-10)=6250  units

                                          Break-event point

Product A                                      6,000 units

Product B                                      6,250 units

4. You may think of your college or university as an organization that offers a line of different educational products. Assume that you have been hired as a marketing consultant by your university to examine and make recommendations for extending its product line. Develop alternatives that the university might consider: a. Upward line stretch b. Downward line stretch c. Two-way stretch d. Filling-out strategy

Answers

Answer:

c. Two-way stretch

Explanation:

For the extension of the product line, the marketing consultant will consider the upwards line stretch as to being In the new products and raise the competition. The two-way stretch can be considered as it allows for the price flexibility to meet both the lower and higher ends customers. A product line extension is a process by which the companies can go beyond their lengths to satisfy the refined segment of the market. It may be done horizontally and vertically.

Required: Using the adjusted trial balance on the next page for Buttross Manufacturing, Inc., prepare statements for the fiscal year ended September 30, 2020, in good form:
Part 1: Prepare a Statement of Cost of Goods Manufactured
Part 2: Prepare a Multiple-Step Income Statement
Aside: The general ledger would usually include a factory overhead control account and the detail of factory overhead would be in a subsidiary ledger. However, the detail of factory overhead has been put into the adjusted trial balance mixed with the other accounts to make sure you can distinguish accounts going into cost of goods manufactured from those going into the income statement.

Answers

Find the given attachments for answer.

Note: The adjusted trial balance is added.

Cost of Goods Sold = Beginning finished goods inventory + COGM - Ending Finished Goods Inventory = 69,000 + 311,000 -100,000 = 280,000.

Cost of goods available for sale = Beginning finished goods inventory + COGM

COGS = Cost of goods available for sale - Ending finished goods inventory.

Calculate the cost of goods sold for a merchandiser using the periodic inventory system from the following details.
Purchases $500,000
Beginning Merchandise Inventory 175,000
Purchase Returns and Allowances 60,000
Purchase Discounts 12,000
Freight In 17,000
Ending Merchandise Inventory 160,000
A. $477,000
B. $460,000
C. $780,000
D. $500,000

Answers

Answer:

B. $460,000

Explanation:

The computation of the cost of goods sold using the periodic inventory system  is shown  below:

Beginning Inventory $175,000    

Add:  Purchases        $500,000    

Add: Freight In         $17,000    

Less: Purchase Returns and allowances -$60,000    

Less:  Purchase Discounts -$12,000    

Cost of goods available for sale $620,000    

Less: Ending Inventory -$160,000    

Cost of goods sold $460,000

We simply applied the above format to determine the cost of goods sold

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