Answer:
Year 1 Annual Worth of Defender -$95,700
Explanation:
Calculation to determine when the defending equipment should be retired
Year 1 Total Annual worth=-$37,000(AP 10%,1)-$85,000+($30,000 (AP 10%,1)
Year 1 Total Annual worth=-$37,000(1.10)-$85,000+$30,000(1.000)
Year 1 Total Annual worth= -$95,700
Therefore Total Annual worth of currently owned equipment for year 1 is -$95,700
Year 2 Total Annual worth=-$37,000(AP 10%,2)-$85,000+($30,000 (AP 10%,2)
Year 2 Total Annual worth=-$37,000(0.57619)-$85,000+$19,000(0.47619)
Year 2 Total Annual worth=-$97,217
Therefore the Total Annual worth of currently owned equipment for year 2 is $-97,271
Therefore Based on the above calculation the
the economic service life of equipment will be year 1 reason been that Year 1 Total annual worth of costs of the amount of -$95,700 is lesser in a situation where the equipment is been retained for 1 year.
Outdoor Gear Corporation manufactured 1,000 coolers during October. The following variable overhead data relates to October: Variable overhead spending variance $1,300 Unfavorable Variable overhead efficiency variance $182 Unfavorable Budgeted machine hours allowed for actual output 608 machine hours Actual cost per machine hour $28 Budgeted cost per machine hour $26Calculate the variable overhead flexible-budget variance. $1,118 favorable $1,118 unfavorable $1,482 unfavorable $1,482 favorable
Answer:
$1,482 unfavorable
Explanation:
Calculation to determine the variable overhead flexible-budget variance
Using this formula
Variable overhead flexible-budget variance=Variable overhead spending variance Unfavorable + Variable overhead efficiency variance Unfavorable
Let plug in the formula
Variable overhead flexible-budget variance=$1,300 (U) + $182 (U)
Variable overhead flexible-budget variance= $1,482 (U)
Therefore the variable overhead flexible-budget variance is $1,482 unfavorable
each time mayberry nursery hires a new employee, it must wait for some period of time before the employee can meet production standard. Management is unsure of the learning curve in its operations but it knows the first job by a new employees averages 40 hours and the second job averages 32 hours. assume all jobs to be equal in size. what is the learning curve percentage, assuming the incremental unit time learning model
Answer:
Learning percentage = 1.6%
Explanation:
Given - Each time may berry nursery hires a new employee, it must wait for some period of time before the employee can meet production standard. Management is unsure of the learning curve in its operations but it knows the first job by a new employees averages 40 hours and the second job averages 32 hours. assume all jobs to be equal in size.
To find - What is the learning curve percentage, assuming the incremental unit time learning model.
Proof -
First job = 40 hours
Second job = 32 hours
Now,
Job Job hours Cumm. of hours Incremental av. hours
1 40 40 40
2 32 72 64
Learning percentage = [tex]\frac{64}{40}[/tex] = 1.6%
Rachel's Designs has 2,000 shares of 7%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining shares are common stock. Due to cash flow difficulties, the company was not able to pay dividends in 2019 or 2020. The company plans to pay total dividends of $23,000 in 2021. How much of the $23,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders
Answer:
the dividend paid to preferred stockholders and paid to common stockholders is $21,000 and $2,000 respectively
Explanation:
The computation of the dividend paid to preferred stockholders and paid to common stockholders is shown below:
For preferred stockholders
= (2,000 × 7% × $50) × 3 years (2019,2020 and 2021)
= $7,000 × 3 years
= $21,000
And, for common stockholders
= $23,000 - $21,000
= $2,000
Hence, the dividend paid to preferred stockholders and paid to common stockholders is $21,000 and $2,000 respectively
Jessica purchased a home on January 1, 2018 for $580,000 by making a down payment of $230,000 and financing the remaining $350,000 with a 30-year loan, secured by the residence, at 6 percent. During 2018 and 2019, Jessica made interest-only payments on this loan of $21,000 (each year). On July 1, 2018, when her home was worth $580,000 Jessica borrowed an additional $145,000 secured by the home at an interest rate of 8 percent. During 2018, she made interest-only payments on the second loan in the amount of $5,800. During 2019, she made interest only on the second loan in the amount of $11,600. What is the maximum amount of the $32,600 interest expense Jessica paid during 2019 may she deduct as an itemized deduction if she used the proceeds of the second loan to finish the basement in her home and landscape her yard
Answer:
$32,600
Explanation:
Calculation to determine her itemized deduction if she used the proceeds of the second loan to finish the basement in her home and landscape her yard
Using this formula
Itemized deduction =(Financing amount * 6 percent)+(Additional amount borrowed*interest rate of 8 percent)
Let plug in the formula
Itemized deduction=( $350,000 * 6 percent)+($145,000 *8 percent)
Itemized deduction=($21,000+$11,600)
Itemized deduction=$32,600
Therefore her itemized deduction if she used the proceeds of the second loan to finish the basement in her home and landscape her yard wi be $32,600
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $34 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally:
Per Unit 21,000 Units
Per Year
Direct materials $ 14 $ 294,000
Direct labor 12 252,000
Variable manufacturing overhead 2 42,000
Fixed manufacturing overhead, traceable 9 * 189,000
Fixed manufacturing overhead, allocated 12 252,000
Total cost $ 49 $ 1,029,000
Required:
1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 17,000 carburetors from the outside supplier?
2. Should the outside supplier’s offer be accepted?
3. Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $170,000 per year. Given this new assumption, what would be financial advantage (disadvantage) of buying 17,000 carburetors from the outside supplier?
4. Given the new assumption in requirement 3, should the outside supplier’s offer be accepted?
Answer:
Troy Engines, Ltd.
1. Financial advantage of buying from outside supplier = $51,000 ($629,000 - $578,000)
2. The outside supplier's offer should be accepted.
3. The financial advantage would increase by $170,000 to $221,000.
4. The outside supplier's offer should still be accepted.
Explanation:
a) Data and Calculations:
Outside supplier's selling price = $34 per unit
Costs of producing in-house:
Per Unit 21,000 Units Per Year
Direct materials $ 14 $ 294,000
Direct labor 12 252,000
Variable manufacturing overhead 2 42,000
Fixed manufacturing overhead, traceable 9 * 189,000
Fixed manufacturing overhead, allocated 12 252,000
Total cost $ 49 $ 1,029,000
Cost of buying 17,000 carburetors from the outside supplier at $34 per unit = $578,000
Relevant cost of making 17,000 carburetors in-house ($37 * 17,000) = $629,000
1. Financial advantage of buying from outside supplier = $51,000 ($629,000 - $578,000)
2. The outside supplier's offer should be accepted.
3. The financial advantage would increase by $170,000 to $221,000.
4. The outside supplier's offer should still be accepted.
13) Storico Co. just paid a dividend of $3.15 per share. The company will increase its dividend by 20 percent next year and then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on the company’s stock is 12 percent, what will a share of stock sell for today? (4 pts)
Answer:
$61.29
Explanation:
Calculation to determine what will a share of stock sell for today
First step is to calculate the price in Year 3
P3= $3.15(1.20)(1.15)(1.10)(1.05) / (.12 – .05)
P3= $5.020785/0.07
P3=$71.72
Now Let Calculate the price of stock today using the Present Value (PV) of the first three dividends in addition with the Present Value (PV) of the stock price in Year 3:
P0= $3.15(1.20)/(1.12) + $3.15(1.20)(1.15)/1.12^²+ $3.15(1.20)(1.15)(1.10)/1.12^³+ $71.72/1.12^³
P0=$3.78/1.12+$4.347/1.2544+$4.7817/1.404928+$71.72/1.404928
P0=$3.375+3.465+3.4035+$51.048
P0= $61.29
Therefore what will a share of stock sell for today is $61.29
What is price discrimination and how do movie theaters and restaurants practice price discrimination?
A manufacturer has an estimated practical capacity of 90,000 machine hours, and each unit requires two machine hours. The following data apply to a recent accounting period: Actual variable overhead$ 240,000 Actual fixed overhead$ 442,000 Actual machine hours worked 88,000 Actual finished units produced 42,000 Budgeted variable overhead at 90,000 machine hours$ 200,000 Budgeted fixed overhead$ 450,000 Of the following factors, the manufacturer's production volume variance is most likely to have been caused by: A. A wage hike granted to a production supervisor. B. A newly imposed initiative to reduce finished goods inventory levels. C. Acceptance of an unexpected sales order. D. Temporary employment of workers with lower skill levels than originally anticipated.
Answer:
Of the following factors, the manufacturer's production volume variance is most likely to have been caused by:
D. Temporary employment of workers with lower skill levels than originally anticipated.
Explanation:
a) Data and Calculations:
Estimated practical capacity = 90,000 machine hours
Machine hours per unit = 2
Estimated production units based on capacity = 45,000 (90,000/2)
Budgeted Actual
Variable overhead = $200,000 $240,000
Actual fixed overhead = $450,000 $442,000
Machine hours 90,000 88,000
Units produced 45,000 42,000
Estimated units to be produced based on standard machine hour
= 44,000 units (88,000/2)
Variance between standard units to be produced and actual = 2,000 (44,000 - 42,000) Unfavorable
In the current year, a company paid interest of $40,000, had net capital expenditures of $300,000, and issued net new debt of $75,000. In addition, the company reported cash flow from operating activities of $600,000, cash flow from investing activities of ($250,000), and cash flow from financing activities of $65,000. The marginal tax rate is 35%. Compute the free cash flow to the firm. In the current year, a company paid interest of $40,000, had net capital expenditures of $300,000, and issued net new debt of $75,000. In addition, the company reported cash flow from operating activities of $600,000, cash flow from investing activities of ($250,000), and cash flow from financing activities of $65,000. The marginal tax rate is 35%. Compute the free cash flow to the firm.
Answer:
Free cash flow to the firm = $326,000
Explanation:
The free cash flow to the firm can be computed using the following formula:
Free cash flow to the firm = Cash flow from operating activities + (Interest paid * (100% - Tax rate)) - Net capital expenditures ............... (1)
Where:
Cash flow from operating activities = $600,000
Interest paid = $40,000
Tax rate = 35%
Net capital expenditures = $300,000
Substituting the values into equation (1), we have:
Free cash flow to the firm = $600,000 + ($40,000 * (100% - 35%)) - $300,000 = $326,000
The trial balance for Splish Brothers Inc. appears as follows: Splish Brothers Inc. Trial Balance December 31, 2022 Cash $340 Accounts Receivable 595 Prepaid Insurance 93 Supplies 205 Equipment 4560 Accumulated Depreciation, Equipment $680 Accounts Payable 438 Common Stock 1370 Retained Earnings 1600 Service Revenue 3415 Salaries and Wages Expense 1140 Rent Expense 570 $7503 $7503 If as of December 31, 2022, rent of $171 for December had not been recorded or paid, the adjusting entry would include a: debit to Rent Expense for $171 debit to Rent Payable for $171 credit to Cash for $171. credit to Accumulated Rent for $171.
Answer:
debit to Rent Expense for $171
Explanation:
The adjusting entry would be
Rent Expense $171
To Rent expenses payable $171
(Being Rent expense accounted is recorded)
Here the rent expense is debited as it increased the assets and credited the rent expense payable as it also increased the liabilities
Therefore the a option is correct
ANd, the rest of the options would be wrong
Patterson and Clay Companies both use cost-plus pricing formulas and arrived at a selling price of $1,000 for the same product. Patterson uses absorption manufacturing cost as the basis for computing its dollar markup whereas Clay uses total cost. Which of the following choices correctly denotes the company that would have (1) the higher cost basis for deriving its dollar markup and (2) the higher markup percentage?
Cost Basis Patterson Patterson Clay Clay More information is needed to judge Markup Percentage Patterson Clay Patterson Clay More information is needed to judge
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E
Answer:
Patterson and Clay Companies
1. Higher cost basis for marking up is:
= Clay Company
2. Higher markup percentage is:
= Patterson Company
Explanation:
a) Data and Analysis:
Costing formulas:
Patterson:
Absorption manufacturing cost
Markup = Higher markup rate
Selling price $1,000
Clay:
Total cost = Higher cost basis for marking up
Markup
Selling price $1,000
b) Total cost is higher than total manufacturing costs. It includes more than the total manufacturing costs. Absorption manufacturing costs only include the variable manufacturing costs and fixed manufacturing overhead costs. Total costs include all the absorption costs and other selling, administrative, and distribution costs.
Suppose the economy of the large country of Hendrix is currently experiencing expansion as a result of short run business cycle fluctuations. Hendrix has a trade deficit. The items below are possible effects of this expansion on the trade balance. Please sort them into boxes below as appropriate. If they do not fit into either box (e.g. not likely to occur in an expansion), leave them unsorted.
Likely to occur in an expansion and increase the trade deficit
Likely to occur in an expansion and decrease the trade deficit
private savings decrease domestic private investment increases private savings increase government borrowing decreases imports increase government borrowing increases domestic private investment decreases imports decrease
Answer:
Likely to occur in an expansion and increase the trade deficit.
Domestic private investment increasesImports increaseAs a result of expansion, there is more income in the economy which means that people will be able to invest more. The investment will however lead to more imports as capital goods are acquired. This will therefore increase the trade deficit which is defined as the difference between net exports and net imports.
Likely to occur in an expansion and decrease the trade deficit.
Private savings increaseGovernment borrowing decreasesIn an expansion, people will have more income and so will save more. As a result of them not spending these savings on imports, the trade deficit will go down.
Also with the economy in an expansion, the government would not need to borrow as much money to prop up the economy. This will reduce the trade deficit which includes loans from outside.
Duo, Inc., carries two products and has the following year-end income statement (000s omitted): Product AR-10 Product ZR-7 Budget Actual Budget Actual Units 3,600 5,000 9,200 8,600 Sales $ $ 10,800 $ 13,500 $ 18,400 $ 18,060 Variable costs 2,880 5,000 9,200 9,030 Fixed Costs 1,800 1,900 2,400 2,400 Total Costs $ 4,680 $ 6,900 $ 11,600 $ 11,430 Operating income $ 6,120 $ 6,600 $ 6,800 $ 6,630 The net effect of AR-10's sales volume variance on profit is:
Answer:
Sales volume variance $2,380 favorable. The net effect on profit of AR-10's sales is that it will increase profit by $2,380
Explanation:
The sales volume variance is calculated as the difference between the budgeted and the actual sales volume multiplied by he standard profit per unit
Standard profit per unit = 6,120/3,600=$1.7
Unit
Budgeted sales units 3,600
Actual sales units 5,000
Sales volume 1,400
Standard profit per unit × $1.7
Sales volume variance 2,380 Favorable
Sales volume variance $2,380 favorable
The net effect on profit of AR-10's sales is that it will increase profit by $2,380
how can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?
Answer:
The more electricity, communications, and transportation used in a nation's economy, it will give them a more developed country and a greater potential for increased industrialization
he Dimitrios Company records the following transactions during September 2018: Cash sales to customers totaling $5,800. Sales to customers on credit cards totaling $18,800. The average credit card fee is 3.0%. The company collects all cash due from the credit card companies. A $2,000 sale on account to a long-time customer with terms of 2/10, n/30. The sale is made on September 5. The customer pays the invoice on September 14. A customer returns product they had purchased last month for $500. Dimitrios accepts the return and gives the customer a cash refund. Calculate the following amounts: Service charge expense for credit card sales Sales discount (contra-revenue) for sales on account Sales returns (contra-revenue) Gross sales revenue Net sales revenue Net cash collected from sales
Answer:
The Dimitrios Company
Service charge expense for credit card sales = $564 ($18,800 * 3%)
Sales discount (contra-revenue) for sales on account = $40 ($2,000 * 2%)
Sales returns (contra-revenue) - $500
Gross sales revenue:
Cash $5,800
Cards $18,800
Accounts receivable $2,000
Total = $26,600
Net sales revenue = $26,100 ($26,600 - $500)
Net cash collected from sales:
Cash Sales $5,800
Card Sales $18,800
Accounts Receivable $2,000
Less: Card Fees $564
Cash Discounts $40
Cash Refund $500
Net cash = $ 25,496
Explanation:
a) Data and Analysis:
Sept. 2018:
Cash $5,800 Sales Revenue $5,800
Credit Cards Receivable $18,800 Sales Revenue $18,800
Credit Card Fee Expense $ 564 Cash $564
Cash $18,800 Credit Cards Receivable $18,800
Accounts Receivable $2,000 Sales Revenue $2,000, terms of 2/10, n/30.
Cash $1,960 Cash Discounts $40 Accounts Receivable $2,000
Sales Returns $500 Cash $500
Use the chart to answer the questions. Year Potential GDP Real GDP 2017 $18.17 trillion $18.05 trillion 2018 $18.51 trillion $18.56 trillion Be sure to put your answer in percentage form, and round answers to two decimal places. a. Calculate the output gap for 2017. % b. Calculate the output gap for 2018. % c. From 2017 to 2018, the output gap became more .
Answer:
a. Output gap for 2017 = –0.66%
b. Output gap for 2018 = 0.27%
c. From 2017 to 2018, the output gap became more positive.
Explanation:
The following are given in the question:
Year Potential GDP Real GDP
2017 $18.17 trillion $18.05 trillion
2018 $18.51 trillion $18.56 trillion
To calculate output gap in percentage form, the following formula is used:
Output gap = ((Real GDP - Potential GDP) / Potential GDP) * 100 ......... (1)
Therefore, we have:
a. Calculate the output gap for 2017. %
Using equation (1), we have:
Output gap for 2017 = ((18.05 - 18.17) / 18.17) * 100 = –0.66%
b. Calculate the output gap for 2018. %
Using equation (1), we have:
Output gap for 2018 = ((18.56 - 18.51) / 18.51) * 100 = 0.27%
c. From 2017 to 2018, the output gap became more .
Since the output gap in 2017 is negative while the output gap in 2018 is positive; this implies that from 2017 to 2018, the output gap became more positive.
Elizabeth (25 years old) studied music education in college and graduated a year ago. She currently works as a music teacher at a year-round private middle school. Her gross pay is $28800 a year, or $2400 a month. After taxes, health insurance, and other paycheck deductions, her net pay is $24600 a year. Based on recommended guidelines, how much money should Elizabeth be saving each month
Based on her gross pay, the amount that Elizabeth should be saving each month is $288.
Recommended savings rateIt is recommended that one saves at least 12% of their gross salary each month to allow them cater for emergencies.
Elizabeth savings per monthHer savings would therefore be:
= Gross monthly pay x 12%
= 2,400 x 12%
= $288
In conclusion, she should save $288.
Find out more on savings at https://brainly.com/question/10473550.
n an arm's length channel system where the supplier/steward exerts little direct control over channel intermediaries, the channel steward may have to resort to performing value-adding activities itself, such as TV advertising, consumer promotions, and so on, so that even before the consumer enters the store, she or he is looking only for the supplier's brand. Which promotional strategy does this discussion describe
Answer:
Pull marketing.
Explanation:
Pull marketing has the central objective of promoting products or services to make the customer come to you. For this purpose, various advertising channels are used, such as TV broadcasting, promotions, social media ads, etc., in order to promote a brand and thus attract consumers.
In this marketing strategy, the company seeks customer loyalty through targeting the brand, whose advertising will have great incentives to purchase the product when declaring its central benefits and how they can add to the consumer's life.
Nthanda Corporation has just completed a physical inventory count at year end, December 31, 2020. Only the items on the shelves, in storage, and in the receiving area were counted and costed on the FIFO basis. The inventory amounted to K80,000. During the audit, the independent Accountant discovered the following additional information:
(a) There were goods in transit on December 31, 2020, from a supplier with terms FOB Shipping Point, costing K10,000. Because the goods had not arrived, they were excluded from the physical inventory count.
(b) On December 27, 2020, a regular customer purchased goods for cash amounting to K1,000 and had them shipped to a bonded warehouse for temporary storage on December 28, 2020. The goods were shipped via common carrier with terms FOB Destination. The customer picked the goods up from the warehouse on January 4, 2021. Nthanda Company had paid K500 for the goods and, because they were in storage, Nthanda included them in the physical inventory count.
(c) Nthanda Company, on the date of the inventory, received notice from a supplier that goods ordered earlier, at a cost ofK4,000, had been delivered to the transportation company on December 28, 2020; the terms were FOB shipping point. Because the shipment had not arrived on December 31, 2020, it was excluded from the physical inventory.
(d) On December 31, 2020, there were goods in transit to customers, with terms FOB shipping point, amounting to K800 (expected delivery on January 8, 2021). Because the goods had been shipped, they were excluded from the physical inventory count.
(e) On December 31, 2020, Nthanda Company shipped K2,500 worth of goods to a customer, FOB destination. The goods arrived on January 5, 2020. Because the goods were not on hand, they were not included in the physical inventory count.
(f) Nthanda Company, as the consignee, had goods on consignment that cost K3,000. Because these goods were on hand as of December 31, 2020, they were included in the physical inventory count.
Required
i. Pass an analysis of the above information and calculate a correct amount for the ending inventory. Give explanation of the basis for your treatment of each item.
Hoffman Corporation issued $60 million of 9%, 15-year bonds at 106. Each of the 60,000 bonds was convertible into one share of $1 par common stock. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Dr Cash $63,600,000
Cr Premium on Bonds $3,600,000
Cr Bonds payable $60,000,000
Explanation:
Preparation of the journal entry to record the issuance of the bonds.
Dr Cash $63,600,000
(106%*$60,000,000)
Cr Premium on Bonds $3,600,000
($63,600,000-$60,000,000)
Cr Bonds payable $60,000,000
(To record issuance of the bonds)
Starbright manufactures child car seats, strollers, and baby swings. Starbright's manufacturing costs are budgeted as follows: Factory utilities: $85,000 Factory foremen salaries: $86,000 Machinery setup costs: $30,000 Total manufacturing overhead: $201,000 The company uses activity-based costing to allocate its manufacturing overhead costs to products based on the following schedule: Overhead Cost Allocation Base Estimated Activity Level Factory Utilities Direct labor-hours 14,500 Factory foremen salaries Machine hours 18,850 Setup costs Number of production runs 137 During the current month, the following levels of activities were incurred: Car Seats Strollers Baby Swings Total Direct Labor Costs $ 41,800 $ 71,250 $ 24,700 $ 137,750 Direct Labor Hours 4,400 7,500 2,600 14,500 Machine Hours 5,450 10,000 3,400 18,850 Production Runs 35 62 40 137 Units Produced 1,100 3,000 970 5,070 What are the factory foremen salaries allocated to Car Seats during the current month
Answer: $24865
Explanation:
The factory foremen salaries allocated to car Seats during the current month will be calculated as:
Factory foremen salaries = $86,000
Factory foremen salaries Machine hours = 18,850
Machine Hours for car seats = 5,450
Therefore, the factory foremen salaries allocated to car Seats during the current month will be:
= (86000 / 18850) × 5450
= $24865
An economy is in long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs: a. A stock market boom increases the value of stocks held by households. b. Firms come to believe that a recession is likely in the near future. c. Anticipating the possibility of war, the government increases its purchases of military equipment. d. The quantity of money in the economy declines, and interest rates increase.
Answer:
Following are the solution to these question:
Explanation:
In point a:
The population feels wealthier and seems to be socially secure. This will boost consumption, moving AD to the correct. There is a difference in deflation. Govt must adopt a discretionary monetary policy to fight deflation, that will change AD left.
In point b:
Expenditure has been decreased to increasing jobs or costs. Disinflationary distance exists. To improve DA (shift rectors) and restore full job production, Govt must pursue the expansionary monetary policy.
In point c:
It will once again raise NPA because part A contributes to even more competition with higher public expenditure. The deflation divide is that there is. That alternative is an expansionary tax reform to move to the left.
In point d:
The rise in interest rates declines expenditure and, as part B, reduces AD. The deflationary difference remains. Government must use expansionary monetary policy to fight it, moving AD to a correct.
Jackson Co. (lessee) entered into a 10-year operating lease on January 1, Year 1. Annual lease payments are $30,000, and payments begin December 31, Year 1. The lessee knows that the rate implicit in the lease is 8%, and its incremental borrowing rate is 7%. The useful life of the asset is 20 years. How should Jackson Co. account for the lease in the income statement
Answer: B. lease payments are allocated over the full lease term on a straight line basis and reported as lease expense in the income statement
Explanation:
The options given include:
A. Interest expense for the lease liability and amortization expense for the right to use asset must be reported separately in the income statement.
B. lease payments are allocated over the full lease term on a straight line basis and reported as lease expense in the income statement
C. the incremental borrowing rate is used to calculate the annual interest expense on lease liability
D. interest expense for the lease liability is recognized in full on the commencement dates of lease.
Jackson Co. should account for the lease in the income statement as "lease payments are allocated over the full lease term on a straight line basis and reported as lease expense in the income statement".
Based on the information given, the correct option is B.
Calistoga Produce estimates bad debt expense at 0.50% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $476,000 and $1,650 respectively, at December 31, 2020. During 2021, Calistoga's credit sales and collections were $315,000 and $307,000, respectively, and $1,880 in accounts receivable were written off. Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2021, is:
Answer:
$1,345
Explanation:
Calculation to determine what Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2021, is
First step is to calculate the Expense amount
Expense=Credit sales $315,000* .5%
Expense=$1,575
Second step is to calculate the Allowance
Allowance 12/31/2020 $1,650
Less Write-offs(1,880)
Allowance ($ 230)debit
Now let calculate the final balance in its allowance for uncollectible accounts
December 31, 2021 allowance for uncollectible accounts= ($230) + $1,575
December 31, 2021 allowance for uncollectible accounts=$1,345
Therefore Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2021, is $1,345
Which of the followings are true or false.
a. Under regional trade agreements, several countries eliminate tariffs among themselves and lower tariffs against all other countries.
b. Regional trade agreements contradict GATTâs most favored nation principle.
c. Each NAFTA member country keeps its own tariffs with the countries outside NAFTA.
d. A good imported into Mexico from China will not be granted duty-free access to the U.S. market if no value is added to this good in Mexico.
e. Rules of origin specify the types of goods that can be shipped duty-free within a free trade area.
f. Rules of origin specify the types of goods that can be shipped duty-free within a customs union.
Answer:
a. true
b. false
c. true
d. true
e. false
f. true
Explanation:
a. Regional trade agreements encourage free movement of goods and services across the borders of regional bodies.
b. The General Agreements on Tariffs and Trade (GATT) were concluded in Geneva by 23 countries in 1947. The GATT minimized international trade barriers through tariffs and trade regulations.
c. NAFTA means the North American Free Trade Agreement for Canada, Mexico, and the United States. NAFTA eliminated most of the trade tariffs among these three countries. In 2020, it was replaced by the United States-Mexico-Canada Agreement (USMCA).
d. Rules of Origin determines the source of a product because trade duties and restrictions depend on the country of origin of a product.
Which of these best describes the Federal
Reserve System?-
It is an independent agency that
supervises and manages the financial
system.
-It is an agency through which Congress
supervises and manages the financial
system.
-It is an agency through which the judiciary
supervises and manages the financial
system.
-It is an agency through which the
executive branch supervises and manages
the financial system.
Answer:
Option A
Explanation:
The Federal Reserve System was created by Congress in order to provide an independent agency to the nation that can deal with the national monetary and financial system. It is the central bank of US that make monetary policies to maximize employment and stabilize inflation and interest rates.
Hence, option A is correct
Adkins Bakery uses the modified half-month convention to calculate depreciation expense in the year an asset is purchased or sold. Adkins has a calendar year accounting period and uses the straight-line method to compute depreciation expense. On March 17, 2018, Adkins acquired equipment at a cost of $220,000. The equipment has a residual value of $43,000 and an estimated useful life of 4 years. What amount of depreciation expense will be recorded for the year ending December 31, 2018
Answer:
Depreciation expense= $36,875
Explanation:
Under the straight line method of depreciation, the cost of an asset less the salvage value is spread equally over the expected useful life.
An equal amount is charged as annual depreciation over the life of the asset. The annual depreciation is calculated as follows:
Annual depreciation:
= (cost of assets - salvage value)/ Estimated useful life
Cost - 220,000
Residual value = 43,000
Estimated useful life = 4 years
Annual depreciation = (220,000- 43,000)/4 =44,250
Annual depreciation = 44,250.
Under the half-month convention, a full month depreciation is charged where an asset is first put to at the middle month of the month.
Thus March 17, 2018 to December 2018 is taken to be 10 full months
Depreciation expense = 44,250.× 10/12 = 36,875
Depreciation expense= $36,875
Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $23 per unit. The company’s monthly fixed expense is $9,500. Required: 1. Calculate the company’s break-even point in unit sales. 2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.)
Answer:
Results are below.
Explanation:
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 9,500 / (28 - 23)
Break-even point in units= 1,900 units
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 9,500 / (5 / 28)
Break-even point (dollars)= $53,200
Finally, the fixed costs increase to $10,100:
Break-even point in units= 10,100 / 5
Break-even point in units= 2,020 units
Break-even point (dollars)= 10,100 / (5/28)
Break-even point (dollars)= $56,560
Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available. 1. Sales: 20,800 units quarter 1; 22,100 units quarter 2. 2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%. 3. Fixed costs per quarter: sales salaries $10,900, office salaries $6,160, depreciation $4,490, insurance $2,080, utilities $880, and repairs expense $670. 4. Unit selling price: $24. Prepare a selling and administrative expense budget by quarters for the first 6 months of 2020
Answer:
Selling and administrative expense budget for 6 months = $144,300
Explanation:
Note: See the attached excel for the selling and administrative expense budget.
From the attached excel file, we have:
Quarter 1 total cost = $70,720
Quarter 2 total cost = $73,580
Selling and administrative expense budget for 6 months = Six months total cost = Quarter 1 total cost + Quarter 2 total cost = $70,720 + $73,580 = $144,300
Many employees say that their managers give them clear and sufficient directions, as well as goals for their work.
True
False
Answer:
True
Explanation:
This is a true statement, as the leader is responsible for managing and directing his team, although there are several different leadership styles, the leader will always be an example of conduct and professionalism for his subordinates, the behavior of every manager should therefore reflect the company's values.
The transformational leadership style can be described as an example of a manager who provides clear and sufficient guidance, as well as goals for carrying out the work, as this leader is the one who, through his energetic and positive personality, contributes to the development of employees and team collaboration, making employees feel valued, motivated and consequently more productive.