Answer:
The answer is
Explanation:
The answer is ___, because
The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method. Units of ProductPercent of Conversion Added Beginning Work in Process230,00060% Units started570,000100% Units completed620,000100% Ending Work in Process180,00070% Multiple Choice 758,000 800,000 620,000 746,000 884,000
Answer:
Equivalent units of production= 746,000 units
Explanation:
Giving the following information:
Units completed 620,000 100%
Ending Work in Process 180,000 70%
The weighted average method blends the costs and units of the previous period with the costs and units of the current period.
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production= 620,000 + (180,000*0.7)
Equivalent units of production= 746,000 units
Worthington Machining must decide whether to purchase Process A with specialized metal folding equipment needing two employees to operate it or Process B with general purpose folding equipment requiring five employees. Process A requires a fixed cost of $1,430,000 and a variable cost of $14.32 per metal panel. Process B requires a fixed cost of $820,000 and a variable cost of $20.05. Process A is more automated than Process B. What is the break-even quantity between these two processes
Answer:
The indifference point is 106,457 units.
Explanation:
Giving the following information:
Process A:
Fixed cost= $1,430,000
Variable cost= $14.32 per metal panel.
Process B:
Fixed cost= $820,000
Variable cost= $20.05 per metal panel.
To calculate the indifference point between two processes, first, we need to formulate the total cost equation for each process:
Process A:
Total cost= 1,430,000 + 14.32*x
Process B:
Total cost= 820,000 + 20.05*x
x= number of units
Now, we need to equal both formulas and isolate x:
1,430,000 + 14.32x = 820,000 + 20.05x
610,000 = 5.73x
x= 106,457
The indifference point is 106,457 units.
Sue quit her $40,000 per year job and opened a coffee shop that she calls Top Brew. In the first year, Top Brew earned $200,000 in revenue. For the same year, Top Brew paid $80,000 to employees in wages, spent $40,000 on ingredients such as coffee beans, $15,000 rent for the building to house Top Brew. Sue also used $50,000 of her personal savings to purchase equipment for Top Brew, which she was earning $4,000 in interest each year. Assuming no depreciation in the value of the equipment, Sueâs economic profit from Top Brew for the year is _______.
Answer:
$21,000
Explanation:
Economic profit = accounting profit - implicit cost
Accounting profit= total revenue - explicit cost
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. Implicit cost includes salary lost due to opening the shop and interest that could have been earned on the savings
Total explicit cost = $80,000 + $40,000 + $15,000 = $135,000
Accounting profit = $200,000 - $135,000 = $65,000
Economic profit = $65,000 - ($40,000 + $4,000) = $21,000
The CEO is considering your recommendations, and it will take time to make some of these changes. However, you know that it's not just the structure of the department that is stifling creativity. You believe that the culture could be significantly improved, and you want to start working on these issues ASAP. It will be a slow process to make some of these changes, but the time to get started is now. You have a lot of ideas, but only a few should be implemented initially. Which three do you think should be started immediately
Explanation:
1- Hire an organizational consultancy specialized in diagnostics and solutions to improve the organizational culture, as an external view can be beneficial to perceive the organization free of bias.
2- Planning of the teams' routine and better redesign and definition of the functions of each employee, seeking greater integration and personal satisfaction with the work, which increases productivity and the valorization of the work.
3- Implementing changes in the way of communicating with the teams and providing feedback, clear and objective communication is essential for there to be a correct understanding of what is expected of each team and how to carry out the tasks to achieve the organizational objectives and goals.
You are considering a project in Honduras that would generate 1.5 million dollars in cash flows per year going forever. The cost of the project is 8 million dollars. The discount rate for the project is 12%. You believe that there is some probability of expropriation prior to the 4th year (after the 3rd cash flow). Which of the following fully describes when this is a good project?
a. This is a good project if the probability of expropriation is larger than 0.33
b. This is a good project if the probability of expropriation is smaller than 0.33
c. This is a good project if the probability of expropriation is smaller than 0.5
d. This is a good project if the probability of expropriation is smaller than 0.66 7.
Answer:
c. This is a good project if the probability of expropriation is smaller than 0.5
Explanation:
initial outlay = $8,000,000
if no expropriation, NPV = -$8,000,000 + $1,500,000/0.12 = $4,500,000
if the risk of expropriation is 0.33:
NPV = $925,211
if the risk of expropriation is 0.5:
NPV = -$425,265
the breakeven risk = 44.6%
Sales promotions that provide consumers an incentive to buy a product, such as a cents-off coupons or a discount, are widely used, especially for the type of products we buy in the grocery store. For the company offering the discounts and coupons, one of the risks with such a strategy is that _______________.it is challenging to track usage of the couponsit will not provide a believable messageretailers are typically not interested in helping out with such campaignsconsumers who typically buy other brands will switch to the promoted brandit might only appeal to already loyal customers who stockpile the product when it is on sale for later consumption
Answer:
it is challenging to track usage of the coupons
Explanation:
Coupons are defined as an instrument that is used to obtain a discount or rebate when making a purchase.
Stores usually give out coupons to customers as an incentive to by products.
However there will be challenge of tracking the coupons as well as the discount on each coupon.
Coupons are given at different discount rates at different times, so it is cumbersome to track a particular coupon out of the many issued when customer wants to redeem it
On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Shoemaker's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to lend $420,000 to its supplier using a 12-month, 12% note.
Required:
1. The loan of $420,000 and acceptance of the note receivable on April 1, 2021
2. The adjustment for accrued interest on December 31, 2021
3. Cash collection of the note and interest on April 1, 2022.
Record the above transactions for Shoemaker Corporation.
Answer:
1.
April 1, 2021
Note Receivable $420000 Dr
Cash $420000 Cr
2.
December 31, 2021
Interest Receivable $37800 Dr
Interest Revenue $37800 Cr
3.
March 31, 2022
Interest Receivable $12600 Dr
Interest Revenue $12600 Cr
April 1, 2022
Cash $470400 Dr
Note Receivable $420000 Cr
Interest Receivable $50400 Cr
Explanation:
1.
The issuance of notes creates an asset in the books of Shoemaker and the note receivable is debited by the amount of the loan. In exchange, cash is paid out as loan and thus it is credited.
2.
Following accrual principle, the interest revenue related to year 2021, is recorded on 31 December 2021 and a receivable is created against it as the interest revenue has not been received on 31 December 2021. The amount of interest revenue will be,
Interest Revenue - 31 December 2021 = 420000 * 12% * 9/12 = $37800
The loan was issued on 1 April and 9 months interest has been earned till 31 December 2021.
3.
On 30 March 2022, the remaining three months interest revenue will be recorded against a receivable. The amount will be ,
Interest Revenue - March 2022 = 420000 * 12% * 3/12 = $12600
On 1 April, cash will be received for 420000 Principal and 50400 (37800 + 12600) (37800 + 12600 interest and it will be recorded as debit to cash for 470400 and credit to notes receivable for 420000 and interest receivable to 50400.
Budgeted Actual Sales volume 100 units 110 units Sales price $50 per unit $55 per unit Unit VC $30 per unit $33 per unit Input price for DL $10 per hour $12 per hour Input quantity per unit for DL 1.5 hours per unit 2 hours per unit Compute input efficiency variance for DL Group of answer choices $100 favorable $550 favorable $550 unfavorable 0.5 hours unfavorable $100 unfavorable
Answer:
Direct labor time (efficiency) variance= $550 unfavorable
Explanation:
Giving the following formula:
DL $10 per hour $12 per hour
Input quantity per unit for DL 1.5 hours per unit 2 hours per unit
To calculate the direct labor efficiency variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (110*1.5 - 110*2)*10
Direct labor time (efficiency) variance= $550 unfavorable
Help! Select the qualification that is best demonstrated in each example.
Melanie is a fitness instructor who encourages her students to achieve their goals. ____
1. Ability to handle money
2. Accuracy and attention to detail
3. Leadership skills
4. Organizational skills
Jacob counts and organizes cash at a casino. _____
1. Maintenance of safety
2. Communication skills
3. Teamwork skills
4. Ability to handle money
Adra is proud that she has never had an accident while running a ride at an amusement park. ______
1. Organizational skills
2. Leadership skills
3. Ability to operate equipment safety
4. Communication skills
Juan plans fun activities for groups of people. _____
1. Communication skills
2. Accuracy
3. Teamwork skills
4. Organizational
Answer:
What ghazaryanelen101 Said ↑↑↑↑
Explanation:
Many influential economists, politicians, and business leaders think that a shift toward a more integrated and interdependent global economy is a good thing.
a. True
b. False
Answer:
A) true
Explanation:
Globalization can be regarded as process involving interaction as well as integration that exist among firms, peopl as well as government and companies worldwide. As a result of Globalization national as well as international companies has become stable and increased in competency and thriving in giving their very best in terms of their produced products.quality in technology as well as quality in education and health sector has also been increased as a result of Globalization. It should be noted that Many influential economists, politicians, and business leaders think that a shift toward a more integrated and interdependent global economy is a good thing.
First National Bank of America has more than 75% of its assets in first residential fixed-rate mortgages that mature in more than 5 years. Suppose that a 12-month Gap Analysis predicts a decrease in 2021 interest income of $3 million if there is a sudden 1% drop in market interest rates. From your knowledge of the practical flaws in gap analysis, a realistic simulation analysis would predict that:_______.
1. Interest income will drop by more than $3 million for a sudden 1% drop in market interest rates
2. Interest income will drop by less than $3 million for a sudden 1% drop in market interest rates
Answer:
2. Interest income will drop by less than $3 million for a sudden 1% drop in market interest rates
Explanation:
Since in the question it is mentioned that there is decrease in 2021 interest income of $3 million in the case when there is a sudden decline of 1% in the rate of interest of the market this is due to the convexity of the curve as the GAP analysis and assume straight line
So the option 2 is correct
In July, one of the processing departments at Okamura Corporation had beginning work in process inventory of $24,000 and ending work in process inventory of $29,000. During the month, the cost of units transferred out from the department was $159,000. In the department's cost reconciliation report for July, the total cost to be accounted for under the weighted-average method would be:
Answer: $188000
Explanation:
Based on the information given in the question, the total cost to be accounted for under the weighted-average method would be calculated thus:
Cost of ending work in process inventory = $29,000
Add: Cost of units transferred out = $159,000
Therefore, the total cost to be accounted for will be;
= $29000 + $159000
= $188000
Waterhouse Company plans to issue bonds with a face value of $503,500 and a coupon rate of 8 percent. The bonds will mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds are sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.)
Determine the issuance price of the bonds assuming an annual market rate of interest of 6 percent.
Answer:
$578,408
Explanation:
face value = $503,500
maturity = 10 years x 2 = 20 periods
coupon rate = 8% / 2 = 4%
coupon = $20,140
YTM = 6% / 2 = 3%
using a financial calculator, the PV of the bonds = $578,408
Dr Cash 578,408
Cr Premium on bonds payable 74,908
Cr Bonds payable 503,500
Two companies, A and B, both have $1 million in assets, earnings before interest and taxes (EBIT) of $160,000, and the same tax rate. Company A is all equity financed, and Company B is 50% debt financed and 50% equity financed. If Company B's pretax cost of debt is 8%, then Company A will have a ROA that is _____ and a ROE that is _____ than Company B's. a. Option D b. Option C c. Option B d. Option A
Answer: higher; lower
Explanation:
EBIT for A = 160,000
Equity of A = 1,000,000
ROA of A = 160,000/1,000,000 = 0.16 = 16%
ROE of A = 160,000/1,000,000 = 0.16 = 16%
EBIT for B = 160000 - (1000000 × 50% × 8%) = 120000
Equity of B = 1000000 × 50% = 500,000
ROA of B = 120000/1000000 = 0.12 = 12%
ROE of B = 120000/500000 = 0.24 = 24%
From the above, we can see that Company A has a higher ROA but had a lesser ROE THAN B
The common stock of Dayton Repair sells for $43.19 a share. The stock is expected to pay $2.20 per share next year when the annual dividend is distributed. The firm has established a pattern of increasing its dividends by 2.25 percent annually and expects to continue doing so. What is the market rate of return on this stock
Answer: 7.35%
Explanation:
Based on the information given, the market rate of return on this stock will be calculated as:
= (D1/P0) +G
where,
D1= Dividend at year 1 = 2.20
P = price at present =43.19
G = dividend growth rate =2.25%
We then slot the figures into the formula and we will get:
= (D1/P0) +G
= (2.20 / 43.19) + 2.25%
= 0.051 + 2.25%
= 5.1% + 2.25%
= 7.35%
Therefore, the market rate of return will be 7.35%.
Part of the screening process when choosing which markets to expand to involves gathering information on local markets. One way to gain information is by participating in trade fairs and trade missions. However, companies will often need additional information on markets that require further research. Collecting primary data in foreign markets can present some challenges in researchers especially because of cultural and technical differences between the markets. Identify whether each statement about the research process is most kikely to be associated with cuftural differences between markets or technical differences.
a. The meaning of words can change from one region to another.
b. Research instruments may need to be translated.
c. Social desirability bias may exist.
d. Street signs may be unreadable.
e. Mail service may be unreliable.
1. Cultural Differences
2. Technical Differences
Answer:
Cultural and Technical Differences Between Markets
a. Cultural
b. Cultural
c. Cultural
d. Technical
e. Technical
Explanation:
1. Cultural Differences: Cultural differences are the unique beliefs, behaviors, languages, practices, and expressions arising from differences in ethnic, racial, or national origins. For example, if the researcher is not versed in the local language, the research instruments or the researcher's answers will require translation.
2. Technical Differences: These differences arise from educational, legal, scientific, engineering, and business practice differences. For example, the "street signs may be unreadable" because there are no updated maps.
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.5 ounces $ 8.00 per ounce $ 60.00 Direct labor 0.9 hours $ 19.00 per hour $ 17.10 Variable overhead 0.9 hours $ 8.00 per hour $ 7.20 The company reported the following results concerning this product in June. Originally budgeted output 2,900 units Actual output 2,500 units Raw materials used in production 19,500 ounces Purchases of raw materials 22,400 ounces Actual direct labor-hours 4,700 hours Actual cost of raw materials purchases $ 41,400 Actual direct labor cost $ 12,900 Actual variable overhead cost $ 3,450 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for June is: Multiple Choice $1,386 U $6,000 U $6,000 F
Answer:
Direct material quantity variance= $6,000 unfavorable
Explanation:
Giving the following information:
Direct materials 7.5 ounces $ 8.00 per ounce
Actual output 2,500 units
Raw materials used in production 19,500 ounces
To calculate the direct material quantity variance, we need to use the following formula:
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (7.5*2,500 - 19,500)*8
Direct material quantity variance= $6,000 unfavorable
Lester sold a warehouse with an original cost of $150,000 for $230,000. The warehouse had accumulated depreciation of $40,000. The recognized gain on the sale was $ . The amount of the gain that is unrecaptured Section 1250 gain is $ and will be taxed at a maximum rate of percent. The remaining $ will be taxed at a maximum rate of 20%.
Answer:
Recognized Gain:
= Selling price - Net book value
= 230,000 - (150,000 - 40,000)
= $120,000
The amount of the gain that is unrecaptured Section 1250 gain:
= Selling Price - Cost of asset - Accumulated depreciation
= 230,000 - 150,000 - 40,000
= $40,000
Tax will be maximum rate of 25% as per IRS rules.
The cash to be charged at maximum of 20% is:
= Gain - Section 1250 gain
= 120,000 - 40,000
= $80,000
Select the statement that best describes money's function as a standard of deferred payment.
a. The purchasing power of a currency is relatively stable over time
b. A currency is widely accepted in exchange for goods and services and therefore makes economic transactions easier.
c. A currency can be used to express the value goods and services that are both relatively expensive and goods and services that are relatively cheap.
d. People are willing to accept a currency in the future as compensation for debts accrued earlier
Answer:
d. People are willing to accept a currency in the future as compensation for debts accrued earlier
Explanation:
Money can be used to pay your current debts at a later date since $100 will still be $100 in the future. They might lose some of its value due to inflation, but they do not spoil or rot, and will probably be accepted in the future. imagine trying to pay an old debt with rotten tomatoes or an old cow.
On January 1, 2021, Gundy Enterprises purchases an office building for $305,000, paying $55,000 down and borrowing the remaining $250,000, signing a 9%, 10-year mortgage. Installment payments of $3,166.89 are due at the end of each month, with the first payment due on January 31, 2021.
Required:
a. Record the purchase of the building on January 1, 2021.
b. Complete the first three rows of an amortization schedule.
c. Record the first monthly mortgage payment on January 31, 2021.
d. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan?
Answer:
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Suppose that applying for membership in the European Monetary Union (EMU) is expensive, so three hypothetical countries, Baltia, Polsha, and Atlantida, have come to you with their relevant data and want advice on if they should apply to join the EMU. Suppose that the average inflation rate of the three European countries with the lowest inflation rates is 3.0%, and the average long-term interest rate of those countries is 3.2%.
Evaluate the characteristics of Baltia, Polsha, and Atlantida presented in the following table using the Maastricht convergence criteria. Then, complete the bottom row by identifying whether each country is eligible to become an EMU member.
Criteria Baltia Polsha Atlantida
Inflation 4.5% 4.0% 4.1%
Long-term interest rates 5.0% 4.0% 3.0%
Exchange rates Last devaluated three years ago Stable Stable
Budget deficit 2.4% of GDP 3% of GDP 2.1% of GDP
Debt outstanding 45% of GDP 45% of GDP 46% of GDP
Qualifies to enter the EMU ? ? ?
Answer:
European Monetary Union Membership
All three countries are eligible to enter into the European Monetary Union, having met all the Maastricht convergence criteria.
Note that Baltia devalued its currency in the last three years and not two as set by the exchange rate criterion.
Explanation:
a) Maastricht convergence criteria are:
1. Price stability: the inflation rate not more than 1.5 point of average best three.
2. Deficit not more than 3% of GDP.
3. Government debt must not exceed 60% of GDP.
4. Exchange rate: No currency devaluation in last two years.
5. Long-term interest rates: not more than 2% higher than those of the three best performing Member states in terms of price stability.
b) The Maastricht Convergence Criteria Performances:
Criteria Baltia Polsha Atlantida
Inflation 4.5% 4.0% 4.1%
Long-term interest rates 5.0% 4.0% 3.0%
Exchange rates Last devalued Stable Stable
3 years ago
Budget deficit 2.4% of GDP 3% of GDP 2.1% of GDP
Debt outstanding 45% of GDP 45% of GDP 46% of GDP
Qualifies to enter
the EMU ? ? ?
c) The Maastricht Convergence Criteria Matching:
Criteria Baltia Polsha Atlantida Decision
Inflation 4.5% 4.0% 4.1%
Lowest EU inflation rates 3.0% 3.0% 3.0%
Difference 1.5 1.0 1.1 Met
Maastricht criteria 1.5 1.5 1.5
Long-term interest rates 5.0% 4.0% 3.0%
Highest EU rates 3.2% 3.2% 3.2%
Difference 1.8 0.8 -0.2 Met
Maastricht criteria 2% 2% 2%
Exchange rates Last devalued Stable Stable Met
3 years ago
Budget deficit 2.4% of GDP 3% of GDP 2.1% of GDP
Maastricht criteria 3% of GDP 3% of GDP 3% of GDP Met
Debt outstanding 45% of GDP 45% of GDP 46% of GDP
Maastricht criteria 60% of GDP 60% of GDP 60% of GDP Met
Qualifies to enter
the EMU YES YES YES
what is the role of education to become a manager ?
Answer:
There are several ways to become a Business Manager, but most organisations require a minimum of a bachelor's degree in business management.
These are usually 3-year courses covering topics such as management theory and practice, budgeting and planning, leadership skills and organisational behaviour.
Some advertising campaigns aim to change consumer attitudes about a product. When a firm is trying to change attitudes, advertising campaign objectives are stated in ____ terms. Which of the following is not a public relations tool? a. News release. b. Publicity. c. Free samples d. Press conference e. Feature article Many trade sales promotion methods, such as temporary price reductions, encourage the marketing channel to "overload" the channel with inventory that will not be sold soon. Overloading can increase sales in the short run but hurt sales in the longer term. Which trade sales promotion method can fight channel overloading?
Answer:
Advertising Campaigns
1. When a firm is trying to change attitudes, advertising campaign objectives are stated in ____ terms.
persuasive
2. Not a public relations tool:
e. Feature article
3. The trade sales promotion method that can fight channel overloading is the offer of discounts to retailers, wholesalers, or other business buyers.
Explanation:
Feature articles are in-depth descriptions and analyses of a place, a person, an idea, or an organization. Generally, feature articles concentrate on topical events, people, or issues and are written by experts to provide background information on newsworthy topics with the writer's personal slant or experience.
When a firm is trying to change attitudes, advertising campaign objectives are stated in persuasive terms.
Some advertising campaigns aim to change consumer attitudes about a product. It should be noted that a feature article is not a public relations tool.
In conclusion, the trade sales promotion method that can fight channel overloading is the offer of discounts to retailers, and wholesalers.
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Clementine Company makes skateboards. They prepare master and flexible budgets and then perform variance analysis after the budget plan period elapses. Their data is as follows: Budget Actual Selling price per unit $96 $104 Variable cost per unit $52 $55 Quantity sold 996 1,024 What is the Clementine's volume variance for SALES? If the variance is unfavorable put a minus sign in front of your answer. Enter your answer without commas or decimals.
Answer:
See below
Explanation:
Sales volume variance is the difference between Budgeted quantity and actual quantity sold, multiplied by the standard profit margin. Standard profit margin is the excess of Budgeted selling price over actual selling price
Therefore,
Clementine's sales volume variance
= (BQ - AQS) × Standard profit margin
= (996 - 1,024) × ($96 - $52)
= -28 × -$44
= $1,232 F
uestion 31 Oriole Company has the following inventory data: July 1 Beginning inventory 114 units at $19 $2166 7 Purchases 399 units at $20 7980 22 Purchases 57 units at $22 1254 $11400 A physical count of merchandise inventory on July 30 reveals that there are 190 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is $3686. $3914. $7486. $7714.
Answer:
$7,714
Explanation:
The computation of the cost of good sold under LIFO method is shown below
But before that following calculations need to be done
Goods sold = Beginning inventory + Purchases - Ending inventory
= 114 + (399 + 57) - 190
= 380 units
Now 380 units sold would include 57 units of July 22 purchases and balance i.e. (380-57) 323 units of July 7 purchases
So, cost of goods sold
= (57 × 22) + (323 ×20)
= $7,714
Indicate the effect each separate transaction has on investing cash flows.
a. Sold a truck costing $42,500, with $23,000 of accumulated depreciation, for $9,000 cash.
b. The sale results in a $10,500 loss. Sold a machine costing $11,600, with $8,500 of accumulated depreciation, for $6,000 cash.
c. The sale results in a $2,900 gain. Purchased stock investments for $16,500 cash. The purchaser believes the stock is worth at least $31,000.
Answer:
a. Cash inflow of $9,000
b. Cash inflow of $6,000
c. Cash outflow of $16,500
Explanation:
The investing cash flow is a section of a company's cashflow statement. Other sections being the operating cash flow and the financing cash flow.
Considering the effect of the given transactions on the investing section
a. Sold a truck costing $42,500, with $23,000 of accumulated depreciation, for $9,000 cash. - The cash inflow of $9,000 is the only element that will impact the investing cash flow as an inflow.
b. The sale results in a $10,500 loss. Sold a machine costing $11,600, with $8,500 of accumulated depreciation, for $6,000 cash. - The cash inflow of $6,000 is the only element that will impact the investing cash flow as an inflow.
c. The sale results in a $2,900 gain. Purchased stock investments for $16,500 cash. The purchaser believes the stock is worth at least $31,000. - The amount used in the purchase of the stock $16,500 will be the only element impacting the investing cash flow and the impact is a reduction in cash - an outflow.
Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow. July August September Budgeted sales $ 60,000 $ 76,000 $ 52,000 Budgeted cash payments for Direct materials 16,960 14,240 14,560 Direct labor 4,840 4,160 4,240 Factory overhead 21,000 17,600 18,000 Sales are 30% cash and 70% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $45,800 in accounts receivable; and a $5,800 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,800 per month), and rent ($7,300 per month).
Part 1 (1) Prepare a cash receipts budget for July, August, and September.
Part 2 (2) Prepare a cash budget for each of the months of July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answers in whole dollars.)
Answer:
(1) Total cash receipts:
July = $63,800
August = $64,800
September = $68,800
2-a. Ending Cash Balance:
July = $15,00
August = $21,173
September = $35,873
2-b. Loan Balance End of Month:
July = $2,898
August = $0
September = $0
Explanation:
(1) Prepare a cash receipts budget for July, August, and September.
Note: See part (1) of the attached excel file for the cash receipts budget for July, August, and September.
From the attached excel file, we have:
Total cash receipts:
July = $63,800
August = $64,800
September = $68,800
(2) Prepare a cash budget for each of the months of July, August, and September.
Note: See part (2) of the attached excel file for the cash budget for July, August, and September.
In the attached excel file, the following calculation is made:
July loan repayment = July preliminary cash balance - Minimum cash balance required = $17,902 - $15,000 = $2,902
From the attached excel file, we have:
2-a. Ending Cash Balance:
July = $15,00
August = $21,173
September = $35,873
2-b. Loan Balance End of Month:
July = $2,898
August = $0
September = $0
A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of factory overhead): Plus Max Units produced 200 16,000 Batch size (units) 10 400 Number of setups 20 40 Direct labor hours per unit 5 5 Total direct labor hours 1,000 80,000 Cost per setup$1,080 Total setup cost$64,800 Using number of setups as the activity base, the amount of setup cost allocated to each unit of product for Plus and Max, respectively is:Multiple Choice$21.60; $.54.$60.00; $60.00.$108.00; $2.70.$54.00; $27.00.$200.00; $16,000.00
Answer:
Apportioned set-up cost
Plus =$21,600
Max=$43,200
Explanation:
Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers.
Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.
The cost driver in this scenario is the number of set-ups
Activity rate per driver is calculated as:
Activity overhead for the period / Total cost drivers for the period
So, we can apply this formula to the scenario above:
Set-up overhead= $64,800
Total set-ups for the period = 20 + 40 = 60
Overhead cost per set-up = $64,800/60=1,080
Set-up cost allocation:
Plus - 20 × 1,080=$21,600
Max- 40 × 1,080=$43,200
Apportioned set-up cost
Plus =$21,600
Max-=$43,200
Elmhurst Corporation is considering changes to its responsibility accounting system. Which of the following statements is/are correct for a responsibility accounting system? I. In a cost center, managers are responsible for controlling costs but not revenue. II. The idea behind responsibility accounting is that a manager should be held responsible for those items that the manager can control to a significant extent. III. To be effective, a good responsibility accounting system must help managers to plan and to control. IV. Costs that are allocated to a responsibility center are normally controllable by the responsibility center manager.
Answer:
I. In a cost center, managers are responsible for controlling costs but not revenue.
ii. The idea behind responsibility accounting is that a manager should be held responsible for those items that the manager can control to a significant extent.
iii. To be effective, a good responsibility accounting system must help managers to plan and to control
Explanation:
List three pieces of criteria that economists use to determine if someone is employed
Answer:
The summary as per the given query is summarized below.
Explanation:
The criterion used by economists to decide whether the individual was working wasn’t employed.Employees hold down jobs for full as well as part-time pay where they already haven't a job and therefore are provisions of these terms for work even though they are unemployed.The labor force seems to be the number among all jobs working as well as unemployment.