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:
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
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.
Tolbotics Inc. is considering a three-year project that will require an initial investment of $44,000. If market demand is strong, Tolbotics Inc. thinks that the project will generate cash flows of $29,500 per year. However, if market demand is weak, the company believes that the project will generate cash flows of only $2,000 per year. The company thinks that there is a 50% chance that demand will be strong and a 50% chance that demand will be weak.
If the company uses a project cost of capital of 14%, what will be the expected net present value (NPV) of this project if the company is ignoring the timing option?
a. -$3,435
b. -$3,779
c. -$3,092
d. -$3,607
Answer:
Expected value NPV =$-,7434
Explanation:
The Expected Net present value (NPV) is the difference between the Present value (PV) of Expected value cash inflows and the PV of cash outflows. A positive NPV implies a good and profitable investment project and a negative figure implies the opposite.
Expected value NPV = PV of expected value cash inflow - PV of cash outflow
Present value of cash inflow:
The expected cash in flows is the sum of the cash inflows multiplied by their respective probabilities. For Tolbotics it is calculated as follows:
Expected cash inflows=m (29,500× 0.5) + (2,000× 0.5)=15,750
NPV = 15,750× (1-1.14^(-3)/0.14) - 44,000=-7434.
Expected value NPV =$-7,434
Teal Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $3,420,000 on March 1, $2,280,000 on June 1, and $5,700,000 on December 31. Teal Company borrowed $1,900,000 on March 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 12%, 5-year, $3,800,000 note payable and an 11%, 4-year, $6,650,000 note payable. Compute avoidable interest for Teal Company. Use the weighted-average interest rate for interest capitalization purposes
Answer:
$418,790
Explanation:
Computation for the avoidable interest for Teal Company using the weighted-average interest rate for interest capitalization purposes
First step is to calculate the Expenditure for the year
Expenditure for the year
Mar-01 $3,420,000*10/12=$2,850,000
Jun-01 $2,280,000 *7 12=$1,064,000
Dec-31 $5,700,000*0/ 12=$ -
Total $ 11,400,000 $3,914,000
Second step is to compute the Weighted Average rate of all debt
Weighted Average rate of all debt:-
$3,800,000*12%=$456,000
$6,650,000*11%=$731,500
Total $10,450,000 $1,187,500
Weighted Average rate of all debt=($1,187,500 / $10,450,000)
Weighted Average rate of all debt = 11.36%
Now let compute the avoidable interest
AVOIDABLE INTEREST
$3,914,000
Less:$1,900,000*10%=$190,000
Balance$ 2,014,000*11.36% =$228,790
($3,914,000-$1,900,000=$ 2,014,000)
Avoidable Interest =$418,790
($190,000+$228,790)
Therefore the avoidable interest for Teal Company using the weighted-average interest rate for interest capitalization purposes will be $418,790
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.
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
Fiona is a manager who believes in Theory Y of leadership. What does she assume about her employees according to this theory? A. Employees have to be reprimanded for bad ideas. B. Employees are self-motivated in their work. C. Employees need constant supervision. D. Employees are always ready to leave the company.
Answer:
b
Explanation:
Employees are self-motivated in their work.
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
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
On January 1 of this year, Nowell Company issued bonds with a face value of $240,000 and a coupon rate of 6.0 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. When the bonds were sold, the annual market rate of interest was 6.0%.
1. What was the issue price on January 1 of this year?
2. What amount of interest expense should be recorded on June 30 and December 31 of this year?
3. What amount of cash is owed to investors on June 30 and December 31 of this year?
4. What is the book value of the bonds on December 31 of this year, December 31 of next year?
Answer:
1. What was the issue price on January 1 of this year?
since the coupon rate was 6% and the market rate was the same, the bonds will be sold at par, so their issue price = $240,000
2. What amount of interest expense should be recorded on June 30 and December 31 of this year?
interest expense = coupon rate = $7,200 (for both June 30 and December 31)
3. What amount of cash is owed to investors on June 30 and December 31 of this year?
Face value = $240,000
4. What is the book value of the bonds on December 31 of this year, December 31 of next year?
Face value = $240,000
The issue price is $240,000, interest expenses will be $7,200 each time. the company owes the investor the interest and the book value is $240,000.
What is face value?Face value is the original cost with which the shares are shown/ registered on the stock exchange. It is the amount that the company has to pay to the holder of the bonds in maturity, it is the par value for bonds.
1. The issue price of 6% coupon rate bonds is $240,000.
2. The amount of interest expense that should be recorded on June 30 and December 31
$240,000 X 6%=$14,400annually
but it is paid semi-annually so=$14,400/2= $7,200 for each time
3. The amount owed to the investor by the company will be the interest amount i.e $7,200 each on June 30 and December 31.
4. The book value of the bond will be the face value for which it was issued i.e $240,000.
Therefore the above statements aptly explain the facts.
Learn more about face value here:
https://brainly.com/question/14294215
You have decided to start a lawn service business to help pay your tuition so that you can complete your undergraduate accounting degree. You plan to provide various lawn maintenance services that will include lawn mowing services, aeration and fertilization. You and two of your friends have agreed to work for you in this new business endeavor. Which of the following would best describe organizing for your new business?
A. Preparing monthly billing statements for clients.
B. Determining the types of lawn services that you will provide for clients.
C. Providing employees with the authority to make decisions regarding a client.
D. Hiring and training new employees.
Answer:
B. Determining the types of lawn services that you will provide for clients.
Explanation:
As can be seen in the question above, you have decided to open a gardening business. However, as we know, gardening is very broad and many services can be associated with it. In order not to leave your business disorganized and to define the service you are offering, you have organized your business by determining the types of lawn services that your business offers, such as lawn mowing, aeration and fertilization.
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
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.
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.
According to the literature on organizational conflict, constructive conflict Question 1 options: tends to produce beneficial outcomes, particularly better decision making. is the main source of conflict in organizations. is the only conflict management style that has high assertiveness and low cooperativeness. is one of the most common outcomes of organizational conflict.
Answer:
tends to produce beneficial outcomes, particularly better decision making.
Explanation:
Constructive conflict occurs when there are problems that need to be solved by a team in the organization, and thus influence people to cooperate with creative and innovative ideas for solving the problem that can help to produce beneficial results, especially better decisions.
Constructive conflict helps the organization to be more productive by aggregating different ideas about the same problem and focusing on the solution to the resolution, which increases the sense of team integration, participation and understanding of different alternatives that will be improved so that the organization has the best decision making for such a problem.
why do private and public sector cannot br looked up as two separate entities
Answer:
The private sector and the public sector cannot be viewed as separate entities because the two of them are closely intertwined.
Explanation:
The public sector defines the rules and conditions under which the private sector develops, and the private sector contributes to the finances of the private sector.
For example, a regulatory agency in an economic sector sets the rules of the mining economic sector in a country, and private mining companies abide by these rules in order to develop their business activity. Part of the revenue earned from these business activities are taken as taxes by the public sector, in order to finance the regulatory agency.
Sometimes, the public sector can also consists in public companies that can work together with private firms in common projects.
As a result of a decrease in the demand for U.S. dollars, there has been depreciation in the value of the U.S. dollar relative to Macedonian dinars. The depreciation in the U.S. dollar has benefitted some groups but harmed others. Indicate which of the groups are winners and which are losers from the standpoint of the depreciation of the U.S. dollar.
a. A. Todd, American, to visit Macedonia spring brew
b. An investment bank in Macedonia that is interested in purchasing U.S.
c. Goodyear, a U.S. based firm, selling car tires Macedonia
d. A family from Macedonia visiting relatives in the U.S
e. A firm from Macedonia selling in the US.
f. U .S. based Hewlett-Packard, which is a tech purchasing a high tech company in Macedonia
Answer:
A. Todd, American, to visit Macedonia spring brew
Explanation:
Todd is a loser due to the depreciation of the U.S. dollar because now he will need more dollars to buy a comparative amount of South Korea won. His trip will now be more expensive.
An investment bank in South Korea, interested in purchasing U.S. government bonds - winner
The investment bank will exchange fewer wons for U.S. dollars than before. Buying government bonds will now be cheaper for them.
Goodyear, a firm based in the United States, sells car tires in South Korea - winner
Goodyear will likely sell more cars because for its South Korean customers, the cars are now cheaper since the value of the dollar has depreciated against the currency that they hold.
A family from South Korea visits relatives in the United States - winner
The South Korean family will exchange fewer wons for more U.S. dollars, making their trip cheaper.
A firm from South Korea sells handbags in the United States - loser
The handbags will now be more expensive for their American customers, likely causing a loss in sales revenue for the firm.
An electronics manufacturer in the United States, purchases a high tech company in South Korea - loser
The cost of the high-tech South Korean company is now higher for the American manufacturer because more dollars had to be exchanged for wons before the purchase.
Dwyer Company reported the following results for the year ended December 31, 2007, its first year of operations: 2007 Income (per books before income taxes) $ 1,500,000 Taxable income 2,400,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2008. What should Dwyer record as a net deferred tax asset or liability for the year ended December 31, 2007, assuming that the enacted tax rates in effect are 40% in 2007 and 35% in 2008?
Answer: $315,000 deferred tax asset
Explanation:
The amount that Dwyer should record as a net deferred tax asset or liability for the year ended December 31, 2007 will be calculated thus:
= ($2400000 – $1500000) × 35%
= $900000 × 35%
= $900000 × 35/100
= $900000 × 0.35
= $315000.
Therefore, the answer is $315,000 deferred tax asset
Bill Blumberg owns an auto parts business called Bill's Auto Parts. The following transactions took place during July of the current year.
July 5 Purchased merchandise on account from Wheeler Warehouse, $4,300.
8 Paid freight charge on merchandise purchased, $230.
12 Sold merchandise on account to Big Time Spoiler, $3,500. The merchandise
cost $2,500.
15 Received a credit memo from Wheeler Warehouse for merchandise, $670.
22 Issued a credit memo to Big Time Spoiler for merchandise returned, $820.
The cost of the merchandise is $550.
Required:
1. Journalize the above transactions in a general journal using the periodic inventory method.
2. Journalize the above transactions in a general journal using the perpetual inventory method.
Answer:
The solution to these question is defined in the attached file please find it.
Explanation:
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
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.4 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end.
Required:
a. Prepare the journal entries on October 1, 2021, to record the issuance of the note.
b. Record the adjustments on December 31, 2021.
c. Prepare the journal entries on September 30, 2021, to record payment of the notes payable at maturity.
Answer:
a. Precision Castparts
Dr Cash $39.4 million
Cr Notes Payable $39.4 million
Midwest Bank
Dr Notes Receivable $39.4 million
Cr Cash $39.4 million
b. Precision Castparts
Dr Interest expense $886,500
Cr Interest payable $886,500
Midwest Bank
Dr Interest receivable $886,500
Cr Interest revenue $886,500
c. Precision Castparts
Dr Notes payable $39.4 million
Dr Interest expense $2,659,500
Dr Interest payable $886,500
Cr Cash $42,946,000
Midwest Bank
Dr Cash $42,946,000
Cr Notes receivable $39.4 million
Cr Interest revenue $2,659,500
Cr Interest receivable $886,500
Explanation:
a. Preparation of the journal entries on October 1, 2021, to record the issuance of the note.
Precision Castparts
Dr Cash $39.4 million
Cr Notes Payable $39.4 million
Midwest Bank
Dr Notes Receivable $39.4 million
Cr Cash $39.4 million
b. Preparation of the journal entry to Record the adjustments on December 31, 2021.
Precision Castparts
Dr Interest expense $886,500 ($39.4 million x 9% x 3/12)
Cr Interest payable $886,500
Midwest Bank
Dr Interest receivable $886,500
Cr Interest revenue $886,500
($39.4 million x 9% x 3/12)
c. Preparation of the journal entries on September 30, 2021, to record payment of the notes payable at maturity.
Precision Castparts
Dr Notes payable $39.4 million
Dr Interest expense $2,659,500($39.4 million x 9% x 9/12)
Dr Interest payable $886,500
($39.4 million x 9% x 3/12)
Cr Cash $42,946,000
($39.4 million+$2,659,500+$886,500)
Midwest Bank
Dr Cash $42,946,000
($39.4 million+$2,659,500+$886,500)
Cr Notes receivable $39.4 million
Cr Interest revenue $2,659,500($39.4 million x 9% x 9/12)
Cr Interest receivable $886,500
($39.4 million x 9% x 3/12)
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
Bonita Equipment Co. closes its books regularly on December 31, but at the end of 2020 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes. Cash receipts and disbursements for the first 10 days of January were recorded as December transactions. The information is given below.
1. January cash receipts recorded in the December cash book consisting of:
Cash sales $28,000
Collections on account, for which $360 of cash discounts were given 17,640
$45,640
2. January cash disbursements recorded in the December check
register liquidated accounts $22,450
Discounts taken 250
3. The ledger has not been closed for 2017.
4. The amount shown as inventory was determined by physical count on December 31, 2017.
The company uses the periodic method of inventory.
Instructions
(A) Prepare any entries you consider necessary to correct Francis’s accounts at December 31.
(B) To what extent was Francis Equipment Co. able to show a more favorable balance sheet at December 31 by holding its cash book open? Assume that the balance sheet that was prepared by the company showed the following amounts:
Debit Credit
Cash $39,000
Accounts receivable 42,000
Inventory 67,000
Accounts payable $45,000
Other current liabilities 14,200
Answer:
Bonita Equipment Co.
A. Entries to correct Bonita's accounts at December 31:
Debit Sales revenue $28,000
Credit Cash $28,000
To reverse the cash sales of January recorded in December.
Debit Accounts Receivable $18,000
Credit Cash $17,640
Credit Cash Discounts $360
To reverse the cash receipts of January recorded in December.
Debit Cash $22,450
Debit Cash Discounts $250
Credit Accounts Payable $22,700
To reverse the cash payment of January recorded in December.
B. To some extent, Bonita was able to show a more favorable balance sheet at December 31 by holding its cash book open. This becomes more pronounced when the working capital elements of the balance sheet are analyzed with ratios.
For example, the current and quick ratios before the above adjustments shows 2.4 and 1.4 respectively. After the adjustments, the current and quick ratios reduced to 1.74 and 0.92 respectively.
Explanation:
a) Data and Analysis:
Cash Sales $28,000
Collections on account $17,640
Total $45,640
Cash Discounts on collections = $360
Total collections on account $18,000
Cash Disbursements:
Check for payment on account = $22,450
Discounts $250
Total disbursement $22,700
Sales revenue $28,000
Cash $28,000
Accounts Receivable $18,000
Cash $17,640
Cash Discounts $360
Cash $22,450
Cash Discounts $250
Accounts Payable $22,700
Before Adjustments After Adjustments
Debit Credit Debit Credit
Cash $39,000 $15,450($39,000 - $28,000 - $18,000 + $22,450)
Accounts receivable 42,000 60,000 ($42,000 + $18,000)
Inventory 67,000 67,000
Accounts payable $45,000 $67,450 ($45,000 + $22,450)
Other current liabilities 14,200 14,200
Total $148,000 $59,200 $142,450 $81,650
Working capital ratios:
Before Adjustments After Adjustments
Current ratio = $148,000/$59,200 $142,450/$81,650
= 2.5 1.74
Quick ratio = $81,000/$59,200 $75,450/$81,650
= 1.4 0.92
During December, the production department of a process operations system completed and transferred to finished goods a total of 65,000 units of product. At the end of December, 15,000 additional units were in process in the production department and were 80% complete with respect to materials. The beginning inventory included materials cost of $57,500 and the production department incurred direct materials cost of $183,000 during December. Compute the direct materials cost per equivalent unit for the department using the weighted-average method. rev: 10_05_2019_QC_CS-184681 Multiple Choice $3.70. $2.38. $2.82. $3.12. $4.79.
Answer:
$3 per unit
Explanation:
The computation of the direct materials cost per equivalent unit is shown below:
Completed and transferred to finished goods 65,000 units
Equivalent number of additional units in process 15000 units
Beginning inventory material cost $57,500
Direct material cost incurred $183,000
Total direct material cost $240,500 ($57,500 + $183,000)
ANd, the total units is 80,000 (65,000 + 15,000)
So, the direct material cost per equivalent unit is
= $240,500 ÷ 80,000 units
= $3 per unit
Smith and Sons, Inc. Income Statement (in millions)
2016 2015
Net sales 10,300 9,800
Cost of goods sold (5,500) (5,200)
Gross profit 4,800 4,600
Selling and administrative expenses (2,800) (2,700)
Income from operations 2,000 1,900
Interest expense (300) (250)
Income before income taxes 1,700 1,650
Income tax expense (420) (400)
Net income 1,280 1,250
Smith and Sons, Inc. Balance Sheet
Assets
Current assets
Cash and cash equivalents 450 650
Accounts receivable 900 800
Inventory 750 900
Other current assets 400 250
Total current assets 2,500 2,600
Property, plant & equipment, net 2,350 2,250
Other assets 5,700 5,900
Total Assets 10,550 10,750
Liabilities and Stockholders' Equity
Current liabilities 3,250 3,150
Long-term liabilities 5,000 5,400
Total liabilities 8,250 8,550
Stockholders' equity-common 2,300 2,200
Total Liabilities and Stockholders' Equity 10,550 10,750
Required:
Calculate the quick ratio for Smith & Sons, Inc., for 2015 and 2016.
Answer:
2015 Quick Ratio 0.54
2016 Quick Ratio 0.54
Explanation:
Calculation to determine the quick ratio for Smith & Sons, Inc., for 2015 and 2016
Using this formula
Quick Ratio = Quick assets/Current liabilities
Let plug in the formula
2015 Quick Ratio = (2,600-900)/3150
2015 Quick Ratio= 0.54
2016 Quick Ratio = (2500-750)/3,250
2016 Quick Ratio = 0.54
Therefore the quick ratio for Smith & Sons, Inc., for 2015 is 0.54 and 2016 is 0.54
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%.
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
Ellis Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Raw materials purchased on account $475,000 Raw materials (all direct) requisitioned for use in production $476,000 Direct labor cost $640,000 Manufacturing overhead: Indirect labor cost $174,000 Other manufacturing overhead costs incurred $498,000 Cost of goods manufactured $1,469,000 Cost of goods sold (unadjusted) $1,430,000 6. The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:
Answer:
It is the Cost of Goods Manufactured that should be transferred to the Finished Goods account. As both of them are asset account, adding to the Finished Goods account would debit it and taking from the Work in Process account would credit it.
Date Account Title Debit Credit
XX-XX-XXX Finished Goods $1,469,000
Work in Process $1,469,000
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.