On March 2nd, a fire destroyed the entire inventory stored in a warehouse for the Madison, Inc. The following information is available from the records of the company's periodic inventory system: Beginning inventory 1/01/2020 $989,000 Purchases through 3/02/2020 $784,329 Sales through 3/02/2020 $1,345,789 Gross Profit Ratio 33% Estimate the cost of the inventory destroyed by the fire using the Gross Profit Method.

Answers

Answer 1

Answer:

Madison, Inc.

The cost of the inventory destroyed by the fire using the Gross Profit Method is:

$871,650

Explanation:

a) Data and Calculations:

Beginning inventory 1/01/2020 = $989,000

Purchases through 3/02/2020 = $784,329

Sales through 3/02/2020 = $1,345,789

Gross Profit Ratio 33%

Gross profit = $444,110 ($1,345,789 * 33%)

Cost of goods sold = $901,679 ($1,345,789 - $444,110)

Cost of goods available for sale = $1,773,329 ($989,000 + $784,329)

Estimate of the cost of the inventory destroyed by the fire = cost of goods available for sale minus the cost of goods sold

= $871,650 ($1,773,329 - $901,679)

b) The estimate of the cost of the inventory destroyed by the fire is equal to the cost of the ending inventory.  It is obtained by subtracting the cost of goods sold from the cost of goods available for sale for the period.  The gross profit margin is the difference between the Sales Revenue and the Cost of goods sold.  When expressed as a percentage of Sales Revenue, the resulting figure is called the gross profit margin ratio.


Related Questions

Xercise Cycles Company has provided its year ended accounts receivables that were uncollected. The Controller has asked you to help prepare the Aging of Accounts Receivable Schedule and the corresponding journal entries. Use the information included in the Excel Simulation and the Excel functions described below to complete the task.
1) Calculate the number of days unpaid, USING THE EXCEL DAYS FUNCTION (fx).
2) Use the information above to complete the Aging of Accounts Recievable Schedule Below.
Create a formula for each age category, using the Excel IF and AND FUNCTION (fx) to determine where each customer amount belongs.
3) Prepare the adjusting journal entry for recording bad debt expense if the allowance for doubtful accounts had the following unadjusted balance:
4) Prepare the adjusting journal entry for recording bad debt expense if the Allowance for Doubtful Accounts had the following unadjusted balance:

Answers

Answer:

In the number of days unpaid column (E8), input the formula; "=DAYS(D8, C8)" then copy it down to the last item on the table.

Explanation:

Answering just the first question, the DAYS function is used to calculate the difference between day timelines. The function accepts two parameters, the first date which is the current date we are subtracting from, and the second date which is the previous date.

Current assets for two different companies at fiscal year-end are listed here. One is a manufacturer, Rayzer Skis Mfg., and the other, Sunrise Foods, is a grocery distribution company. Account Company 1 Company 2 Cash $ 13,000 $ 11,000 Raw materials inventory — 46,750 Merchandise inventory 49,750 — Work in process inventory — 34,000 Finished goods inventory — 54,000 Accounts receivable, net 58,000 72,000 Prepaid expenses 2,500 500 Required: 1. Identify which set of numbers relates to the manufacturer and which to the merchandiser. 2a. & 2b. Prepare the current asset section for each company from this information.

Answers

Answer:

Part 1

Manufacturer = Company 2

Merchandiser = Company 1

Part 2

Current Assets Section for Company 1

Current Assets                                            $

Merchandise Inventory                           41,500

Accounts Receivable, Net                     60,000

Prepaid Expenses                                    5,000

Cash                                                          7,000

Total Current Assets                              113,500

Current Assets Section For Company 2

Current Assets                                           $

Raw Materials Inventory                        38,500

Work In Process Inventory                    28,000

Finished Goods Inventory                     48,000

Accounts Receivable, Net                     70,000

Prepaid Expenses                                     1,000

Cash                                                         5,000

Total Current Assets                             190,500

Explanation:

Note : I have attached the full question as an image below !

When McDonald's sells cheeseburgers in India, there is absolutely no beef or pork used. The McDonald's Menu in India features Indian burgers that are 100 percent vegetarian. India is predominantly a Hindu country, and Hindus are strict in terms of not eating beef because they consider the cow as a holy manifestation of the divinity. This scenario is an example of _______.

Answers

Answer:

This question is incomplete, the options are missing. The options are the following:

a) product innovation

b) product standarization

c) product variation

d) product adaptation

And the correct answer is the option D: Product adaptation.

Explanation:

To begin with, the term of "Product Adaptation" in the field of marketing and management is known to refer as the method that is necessary to use in order to adapt a company's strategy to a target audience that tends to be quite different that the usual audience. So in this case the most important thing to have in mind when applying a strategy like this is that the focus will be in the huge difference that the consumers have according to the regular ones, so when the managers see the difference they will be able to focus on a better product to give the consumers.

1.Which of the following products would it not be necessary to develop HACCP flow chart?
A)Caesar salad
B)Tuna salad
C)Seafood salad
D)Citrus fruit salad

2. Which of the following criteria is least important when determining a food operation’s need for a particular piece of equipment? Will the equipment:

A)Produced a significant saving in labor and material?
B)Make the facility more attractive to customers?
C)Result in improved quality of food?
D)Improve sanitation?

Answers

Answer:

1. The product which is not necessary to develop HACCP flow chart for is:

A) Caesar salad

2. The least important criterion when determining a food operation's need for a particular piece of equipment is whether the equipment will:

B) Make the facility more attractive to customers?

Explanation:

These two regulatory bodies run the HACCP programs.  The Food and Drug Administration (FDA)regulates the program for juice, while the United States Department of Agriculture (USDA) regulates the program for meat.  Their purposes are to ensure food safety and protect public health.  A HACCP flow chart diagrammatically depicts the process flow of a food operation, starting from the incoming materials to the end product for the customer.

Answer:

A) Caesar salad is necessary to develop HACCP flow chart.

B) Will the equipment make the facility more attractive to customers? is the least important criteria when determining a food operation’s need for a particular piece of equipment

Explanation:

1.

A HACCP flow chart refers to a graphical representation of the complete manufacturing process of the business of food. This chart contains information regarding the raw material, serving the finished products, etc.

Caesar salad is necessary to develop a HACCP flow chart.

2.

To determine a need for food operation for a particular piece of equipment, it's not necessary to check if the equipment can make the facility more attractive to customers

For more information:

https://brainly.com/question/19676572?referrer=searchResults

Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2013, net credit sales totaled $4,900,000, and the estimated bad debt percentage is 1.90%. The allowance for uncollectible accounts had a credit balance of $46,000 at the beginning of 2013 and $42,000, after adjusting entries, at the end of 2013.
If the company uses the direct write-off method, what would bad debt expense be for 2013?

Answers

Answer:

$97,100

Explanation:

Calculation for If the company uses the direct write-off method, what would bad debt expense be for 2013

Beginning Balance $46,000

Add Bad debt expense for 2013

(1.90% x $4,900,000) $93,100

Less Ending balance ($42,000)

Bad debt Expense $97,100

Therefore If the company uses the direct write-off method, what would bad debt expense be for 2013 is $97,100

Steelcase has received orders of 2400, 2200, 2700, and 2500 units of a special-purpose panel for each of the next four months. SC can meet these demands by producing the panel, by drawing from its inventory, or by using any combination of the two alternatives. The production costs during each of the next four months are projected to be $74, $75, $76, and $76.5 per unit. Because costs are rising each month, SC might be better off producing more panel than it needs in a given month and storing the excess. Production capacity, though, cannot exceed 4000 units in any one month. The monthly production is finished at the end of the month at which time the demand is met. Any remaining panel is then stored in inventory at a cost of $1.2 per panel for each month that it remains there. If production level is increased from one month to the next, then the company incurs a cost of $0.5 per unit of increased production to cover the additional labor and/or overtime. Each unit of decreased production incurs a cost of $0.3 to cover the benefits of unused employees. The production level during the previous month was 1800 units, and the beginning inventory is 1000 units. Inventory at the end of the fourth month must be at least 1500 units to cover anticipated demand. Formulate a production plan for SC that minimizes the total costs over the next four months

Answers

Answer:

Answer is explained in the explanation section below.

Explanation:

Solution:

The Production Planning of the Steel Case:

Demand (units):

Month 1:  2400

Month 2:  2200

Month 3:  2700

Month 4:  2500

Production Cost ($/unit):

Month 1:  74

Month 2:  75

Month 3:  76

Month 4:  76.5

Inventory cost ($/panel):

Month 1:  1.2

Month 2:  1.2

Month 3:  1.2

Month 4:  1.2

Starting Inventory = 1000

Ending Inventory at the end of 4th month = 1500

Starting Production Level = 1800

Cost of changing production level = $0.5/unit (increase)

                                                         = $0.3/unit (decrease)

Decision Variables:

Let Pn be the production in the month n.

[tex]I_{n}[/tex] be the inventory at the end of month n.

[tex]I_{o}[/tex] be the initial inventory at the start of month 1.

Objective Function:

The production cost is given below:

74[tex]P_{1}[/tex] + 75[tex]P_{2}[/tex] + 76[tex]P_{3}[/tex] + 76.5[tex]P_{4}[/tex]

And the holding cost is given below:

1.2( [tex]I_{1} + I_{2} + I_{3}[/tex] )

And,

Constraints:

In order to meet the demand, we have the following constraints:

[tex]P_{1}[/tex] + [tex]I_{o}[/tex] [tex]\geq[/tex] 2400

[tex]P_{2}[/tex]  + [tex]I_{1}[/tex] [tex]\geq[/tex] 2200

[tex]P_{3}[/tex]  + [tex]I_{2}[/tex] [tex]\geq[/tex] 2700

[tex]P_{4}[/tex] + [tex]I_{3}[/tex] [tex]\geq[/tex]  2500

Now, considering the inventory level at the end of each month:

[tex]I_{o}[/tex] = 1000

[tex]I_{1}[/tex] = [tex]P_{1}[/tex] - [tex]I_{o}[/tex] - 2400

[tex]I_{2}[/tex] = [tex]P_{2}[/tex]  - [tex]I_{1}[/tex] - 2200

[tex]I_{3}[/tex] = [tex]P_{3}[/tex]  - [tex]I_{2}[/tex] - 2700

[tex]I_{4}[/tex] = [tex]P_{4}[/tex]  - [tex]I_{3}[/tex] - 2500

[tex]I_{4}[/tex] [tex]\geq[/tex] 1500

It is given that, at maximum 4000 units can be produced each month

So, we have the following constraints:

[tex]P_{n}[/tex] [tex]\leq[/tex] 4000 for n = 1, 2, 3 ,4

Also,

[tex]P_{n}[/tex] [tex]\geq[/tex] 0

[tex]I_{n}[/tex] [tex]\geq[/tex] 0

A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is offering a 6% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $55 instead

Answers

Answer:

$58.3

Explanation:

Interest = principal x interest x time

$55 x 0.06 x 1 = $3.3.

Amount = principal + interest

= $55 + $3.3. = $58.3

Your SWOT analysis reveals no obvious options for growth with your current product lines. So you decide to use some retained earnings the firm has been saving and launch new product lines. After careful analysis you decide to launch a line of battery chargers and, separately, a line of ceiling fans. Which corporate-level strategy are you pursuing

Answers

Answer:

Unrelated diversification.

Explanation:

Analyzing the information above, it is correct to say that the company is using the corporate level strategy of unrelated diversification.

This strategy occurs when a company decides to expand its product line by diversifying products that are not related to each other, as is the case above, where it is intended to launch a line of battery chargers and separately a line of ceiling fans. As these products do not correlate, the company is looking to start its activities in different types of market, which can be configured as a positive strategy for market gain and greater profitability for the company.

Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs.
Products Sales Revenue Traditional ABC
Product 540X $195,000 $56,000 $46,600
Product 137Y 158,000 55,000 37,000
Product 249S 84,000 10,000 37,400
Instructions
a) For each product line, compute operating income using the traditional costing system.
b) For each product line, compute operating income using the activity-based costing system
c) Using the following formula, compute the percentage difference in operating income for each of the product lines of Ayala:{Operating Income (ABC)-Operating Income traditional cost)]divided operating Income (traditional cost)(round the percentage to two decimals).

Answers

Answer:

a. Operating income of Product 540X under traditional costing system: Operating income = Revenue - Operating cost = $195,000 - $56,000 = $139,000

Operating income of Product 137Y under traditional costing system: Operating income = Revenue - Operating cost = $158,000 - $55,000 = $103,000

Operating income of Product 249S under traditional costing system: Operating income = Revenue - Operating cost = $84,000 - $10,000 = $74,000

b. Operating income of Product 540X under  activity-based costing system: Operating income = Revenue - Operating cost = $195,000 - $46,600 = $148,400

Operating income of Product 137Y under  activity-based costing system: Operating income = Revenue - Operating cost = $158,000 - $37,000 = $121,000

Operating income of Product 249S under  activity-based costing system: Operating income = Revenue - Operating cost = $84,000 - $37,400 = $46,600

c. % of the difference between the operating income of Product 540X under traditional costing system and ABC system = Operating Income (ABC) - [Operating Income (Traditional cost)/Operating Income (Traditional cost)] * 100

= $148,400 - $139,000/$139,000 * 100

= $9,400/$139,000 * 100

= 0.0676258992805755 * 100

= 6.76%

% of the difference between the operating income of Product 137Y under traditional costing system and ABC system = Operating Income (ABC) - [Operating Income (Traditional cost)/Operating Income (Traditional cost)] * 100

= $121,000 - $103,000/$103,000 * 100

= $18,000/$103,000*100

= 0.1747572815533981 * 100

= 17.48%

% of the difference between the operating income of Product 249S under traditional costing system and ABC system = Operating Income (ABC) - [Operating Income (Traditional cost)/Operating Income (Traditional cost)] * 100

= $46,600 - $74,000/$74,000 * 100

= -$27,400/$74,000 * 100

= -0.3702702702702703 * 100

= -37.03%

Firms engaging in ------------- with a local company can benefit from a local partner's knowledge of the host country's competitive conditions, culture, language, political systems, and business systems. turnkey projects joint ventures licensing arrangements greenfield investments

Answers

Answer:

B. joint venture

Explanation:

joint venture can be regarded as kind of business arrangement whereby there is agreement between

two or more parties in order to pool their resources together with the aim of accomplishing a particular task. It could be new project or others.

It should be noted that Firms engaging in joint venture with a local company can benefit from a local partner's knowledge of the host country's competitive conditions, culture, language, political systems, and business systems. turnkey projects joint ventures licensing arrangements greenfield investments


The clear, broad, underlying industry category or market sector of an organization's offering defines its
O shareholders.
O objectives
O culture
Ο Ο
business

Answers

Explanation:

thats difficult

A T-bill quote sheet has 90-day T-bill quotes with a 5.77 ask and a 5.71 bid. If the bill has a $10,000 face value, an investor could sell this bill for _____.
a. $9,857.25
b. $9,855.75
c. $9,859.21
d. $10,000

Answers

Answer:

a. $9,857.25

Explanation:

Price = Face value * (1 - Bid*Days/360)

Price = $10,000 * (1 - 5.71%*90/360)

Price = $10,000 * (1 - 5.71%*0.25)

Price = $10,000 * (1 - 0.014275)

Price = $10,000 * 0.985725

Price = $9,857.25

In 2016, Gruman uses the machine for 1,700 hours and produces 40,000 units. In 2017, Gruman uses the machine for 1,200 hours and produces 34,000 units. If required, round your final answers to the nearest dollar. Required: Compute the depreciation for 2016 and 2017 under each of the following methods:

Answers

Answer:

Answer is explained in the explanation section below.

Explanation:

Note: This question is not complete and lacks necessary data and requirements to solve. However, I have found a similar question on the internet and will be using its data to solve for this question. Furthermore, it has not given the name of methods, so I will be solving for two methods, which are:

1. Straight Line Method

2. Sum of the years depreciation Method.

Solution:

Data Missing:

Machine Price = $198,000

Service Life = 5 years or 10,000 hours

Production = 180,000 units

Residual Value = $18000

Now, the data is complete and can be solved for the above mentioned methods of depreciation.

1. Straight Line Method:

As we know,

Asset Cost = $198,000

Residual Value = $18000

Life in Years = 5

Depreciation:

Formula for Straight Line Depreciation is:

(Asset Cost - Residual Value)/life in years

Plugging in the values:

Depreciation = ($198,000 - $18000)/5

Depreciation = $180,000/5

Depreciation = 36000

It will be same for both the years 2016 and 2017 as well.

2. Sum of the years Depreciation Method:

For this, we need to have the depreciable asset value:

Depreciable Asset Value = (Asset Value - Residual Value)

Depreciable Asset Value = ($198,000 - $18000)

Depreciable Asset Value = $180,000

Sum of the years for 2016

Number of years for 2016 = 5

Sum = 5 + 4 + 3 + 2 + 1 = 15

Number of years for 2017 = 4

So, the formula for depreciation is:

(Number of years for 2016/Sum of Years) x depreciable Asset Value

(5/15) x 180,000 = 60,000

Similarly, for 2017

(Number of years for 2017/Sum of Years) x depreciable Asset Value

(4/15) x 180,000 = 48,000

Hence,

1. Straight Line Method:

Depreciation for 2016  = 36000

Depreciation for 2017  = 36000

2. Sum of the years Depreciation Method:

Depreciation for 2016  = 60,000

Depreciation for 2017  = 48,000

Someone offers to buy your old Ford F-150 truck for 4 equal annual payments, beginning 2 years from today. If you think that the present value of your Ford Truck is only $9,000 and you assume the interest rate is 10%, which one of the below would be the minimum annual payment that youâ d be willing to accept? $2,839.24 $3,435.48 $3,123.16 $2,250

Answers

Answer:

$3,123.16

Explanation:

The computation of the minimum annual payment is as follows:

Given that

RATE = 10%

NPER = 10%

PV = $9,000 × (1 + 0.1) = $9,900

FV = $0

The formula is shown below:

= PMT(RATE,NPER,-PV,FV,TYPE)

After applying the above formula, the monthly payment is $3,123.16

The trial balance of Blues Traveler Corporation does not balance.

Debit Credit
Cash $5,912
Accounts Receivable 5,240
Supplies 2,967
Equipment 6,100
Accounts Payable $7,044
Common Stock 8,000
Retained Earnings 2,000
Service Revenue 5,200
Office Expense 4,320
$24,539 $22,244

An examination of the ledger shows these errors.

1. Cash received from a customer on account was recorded (both debit and credit) as $1,790 instead of $2,060.
2. The purchase on account of a computer costing $3,088 was recorded as a debit to Office Expense and a credit to Accounts Payable.
3. Services were performed on account for a client, $2,460, for which Accounts Receivable was debited $2,460 and Service Revenue was credited $435.
4. A payment of $305 for telephone charges was entered as a debit to Office Expense and a debit to Cash.
5. The Service Revenue account was totaled at $5,410 instead of $5,490.

Required:
From this information prepare a corrected trial balance.

Answers

Answer:

Blues Traveler Corporation

Adjusted Trial Balance

Accounts Titles           Debit       Credit

Cash                          $5,572

Accounts Receivable 4,970

Supplies                     2,967

Equipment                  9,188

Accounts Payable                      $7,044

Common Stock                           8,000

Retained Earnings                      2,000

Service Revenue                        7,305

Office Expense        1,232

Suspense                   420

Totals                 $24,349     $24,349

Explanation:

Unadjusted Closing Trial Balance

Accounts Titles           Debit       Credit

Cash                          $5,912

Accounts Receivable 5,240

Supplies                     2,967

Equipment                  6,100

Accounts Payable                      $7,044

Common Stock                           8,000

Retained Earnings                      2,000

Service Revenue                        5,200

Office Expense        4,320

Totals                  $24,539     $22,244

Correction of errors:

1. Understatement of cash received by $270

This will increase Cash by $270 and Accounts Receivable will be reduced by $270

Debit Cash $270

Credit Accounts Receivable $270

To correct the error above.

2. This is error of commission:

Office expenses are overstated and Equipment understated by $3,088 respectively.

Debit Equipment $3,088

Credit Office expense $3,088

To correct the error.

3. Service Revenue will be increased by $2,025 ($2,460 - $435)

4. Cash will be reduced by $610 ($305 * 2)

5. Service Revenue will be increased by $80 ($5,490 - $5,410).

Cash:

As per Trial Balance $5,912

1. Accounts receivable 270

4, Reduction                (610)

Adjusted balance   $5,572

Accounts Receivable

As per Trial Balance $5,240

1. Cash                           (270)

Adjusted balance     $4,970

Equipment:

As per Trial Balance $6,100

2. Office expenses    3,088

Adjusted balance    $9,188

Office Expenses:

As per Trial Balance $4,320

2. Equipment             (3,088)

Adjusted balance     $1,232

Service Revenue

As per Trial balance $5,200

3.  addition                  2,025

5.  addition                       80

Adjusted balance    $7,305        

As operations manager, you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report:
JAN FEB MAR APR
Units produced 2,195 1,695 2,695 2,895
Hours per machine 310 188 385 309
Number of machines 4 6 5 4
Find the average of the monthly productivity figures (units per machine hour). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answers

Answer:

The average of the monthly productivity figures (units per machine hour):

                                      JAN        FEB       MAR       APR

Units produced            2,195      1,695    2,695     2,895

Total machine hours   1,240       1,128      1,925     1,236

Average productivity   1.77        1.50        1.40      2.34

Explanation:

a) Data and Calculations:

Production report:

                                      JAN        FEB       MAR       APR

Units produced            2,195      1,695    2,695     2,895

Hours per machine        310          188        385        309

Number of machines        4              6            5            4

Total machine hours  1,240        1,128      1,925     1,236

b) Productivity, according to Organization for Economic Co-operation and Development (OECD), is the ratio between the output volume and the volume of inputs.  This means that productivity measures compute how efficiently production inputs are used to produce output.  It can be measured with respect to labor, capital, and other production inputs or in aggregate with respect to all production inputs.

You would like to lock in the selling price on 50,000 bushels of wheat, which you plan to harvest and deliver to the market in September. The September futures price quote is currently 899?4. If you write September futures contracts on your wheat, you will be guaranteed a total price of ________ for your crop. Each contract is quoted in cents and 1/8ths of a cent per bushel with a contract size of 5,000 bushels.
a. $45.637.50.
b. 50 $541650.00.
c. $449750.00.
d. $297700.50.
e. $2.971.000.

Answers

Answer:

c. $449750.00.

Explanation:

1/8 of 10 lots of bushels of 5,000 per lot = 1.25

Therefore, the price quote of 899'4 cents is written as 899'4+1.25 = $8.995

Total value = Wheat(bushels) * Price Quote

Total value = 50,000 * $8.995

Total value = $449,750

Street Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:
Engine parts $740,000
Shop direct labor 500,000
Shop and repair equipment depreciation 40,000
Shop supervisor salaries 133,000
Shop property taxes 22,000
Shop supplies 10,000
Advertising expense 20,000
Administrative office salaries 71,400
Administrative office depreciation expense 6,000
Total costs and expenses $1,542,400
The average shop direct labor rate is $20 per hour.
Determine the predetermined shop overhead rate per direct labor hour.

Answers

Answer:

$8.20/Direct Labor hours

Explanation:

Cost of performing engine repair work = Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies

Cost of performing engine repair work = $40,000 + $133,000  + $22,000 + $10,000

Cost of performing engine repair work = $205,000

Direct Labor Hours = Direct Labor/Direct Labor rate

Direct Labor Hours = 500,000/$20 per hour

Direct Labor Hours = 25,000 hours

Predetermined shop overhead rate per direct labor hour = $205,000 / 25,000 Hours = $8.20/Direct Labor hours

Mrs. Sarr operates a business in a competitive market. The current market price is $8.10. At her profit-maximizing level of production, the average variable cost is $8.00, and the average total cost is $8.25. Mrs. Sarr should shut down her business in the short run but continue to operate in the long run.
A. True
B. False

Answers

Answer:

B. False

Explanation:

Given that

Current market price = $8.10

Average variable cost = $8

And, the average total cost = $8.25

As we can see that the current market price is more than the average variable cost so it would be operate in the short run

Also the total cost is more than the current market price so it would be shut down in the long run

Therefore the given statement is false

Dollar General operates midsized retail stores in rural towns. It has been expanding the variety of products available in its stores. Some locations now offer fresh produce and an increased assortment of fresh or frozen food items. Dollar General hopes the addition of new products will lead existing customers to purchase more items when they shop, which will in turn increase revenues for the chain. This is an example of the _______ strategic alternative according to Ansoff's matrix.

Answers

Answer:

product development

Explanation:

The product development strategy is a strategy where the new products would be developed for the pre-existed market or for the present customers. As in the given situation, since dollar general produced for its existing customers

Therefore as per the given situation it is an example of product development

A risk management program must be implemented and periodically monitored to be effective. This step requires the preparation of a risk management policy statement. The cooperation of other departments is also necessary. a. What benefits can the firm expect to receive from a well-prepared risk management policy statement

Answers

Answer: The ability to see risks that are not predicted and accessing funds from financial institutions

Explanation:

Here are some of the benefits of well-prepared risk management policy statement;

1) The ability to see risks that are not expected; a team of experts would be engaged to identify and give an overview of all forms of risk that could be possibly involved.

2) The organization attracts credit easily; Organisations attract credit from financial institutions when they are able to provide assessments that they carried out regarding risks. This gives the client's confidence that they can entrust their finance to the organization due to the firm have considered all forms of pending failures and that which would occur.

AudioCables, Inc., is currently manufacturing an adapter that has a variable cost of $0.60 per unit and a selling price of $1.20 per unit. Fixed costs are $14,000. Current sales volume is 30,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $6,000. Variable costs would increase to $0.75, but sales volume should jump to 50,000 units due to a higher-quality product. a. What is the current profit and proposed profit of the sales of AudioCables

Answers

Answer:

The answer is "$4,000 and $2,500"

Explanation:

Formula:  

[tex]\text{Profit = Sales - Total cost}[/tex]

[tex]= \frac{\text{Selling price}}{unit} \times \text{volume of Sale} - ( \text{Fixed cost} + \frac{\text{Variable cost}}{unit} \times \text{volume of Sale})[/tex]

[tex]= 1.20 \times 30000 - ( 14,000 + 0.6 \times 30,000)\\\\= 36,000 -( 14,000 + 18,000)\\\\= 36,000 - 14,000 - 18,000 \\\\= 36,000 - 32,000 \\\\= \$ 4,000[/tex]

 The scenario was revised by installing new audio connection equipment:

The volume of revised sales[tex]= 50,000[/tex]

Fixed cost updated [tex]= \$ 41,000 + \$ 6,000 = \$ 20,000[/tex]

Cost of the updated component  [tex]= \frac{\$ 0.75}{unit}[/tex]

Unchanged purchase price/unit [tex]= \frac{\$ 1.2}{unit}[/tex]

[tex]= 1.2 \times 50,000 -(20,000 + 0.75 \times 50,000)\\\\= 60,000 -(20,000 + 37,500)\\\\= 60,000 -(57,500)\\\\= 60,000 -57,500 \\\\ =2,500[/tex]

Audio cable sales are actually profiting = 4,000

Proposal for audio cable sales profit = 2,500

On January 1, 2013, Springs Industries issued $18,000,000 of 10% ten-year bonds at 102. The bonds are callable at the option of Springs at 104. Springs pays interest annually and has recorded amortization of the bond premium on the straight-line method (which was not materially different from the effective-interest method). On December 31, 2019, Springs called in $6,000,000 of the bonds. Ignoring income taxes, Springs should report a gain or loss of:_________

Answers

Answer:

Springs should report a loss of $204,000

Explanation:

To be redeemed Premium on bonds payable = 6,000,000 * 2% = $120,000

The amortization of bond premium (annual) = 120,000/10 = $12,000

Bonds premium amortized in 7 years (From 2013 to 2019) = 12,000 * 7 = $84,000

Unamortized bond premium = 120,000 - 84,000 = $36,000

Carrying value of bonds = Face value of the bonds + un-amortized bond premium at the redemption date = 6,000,000 + 36,000 = $6,036,000

Redemption price of bonds = 6,000,000 * 104% = $6,240,000

Loss on bonds redemption = Redemption price - Carrying value of bonds = 6,240,000 - 6,036,000 = $204,000. So, Springs should report a loss of $204,000.

Assume Italy and Chad can both produce grain and dates, and that the only limited resource is the farming labor force, meaning that land, water, and all other resources are plentiful in both countries. Each farmer in Italy can produce 10 t of grain or 5 t of dates in a season. Each farmer in Chad can also produce 10 t of grain or 25 t of dates.
1. Which country has the absolute advantage in producing dates?
A. Italy.
B. Chad.
C. Neither.
2. Which country has the absolute advantage in producing grain?
A. Italy.
B. Chad.
C. Neither.
3. Which country has the competitive advantage in producing dates?
A. Italy.
B. Chad.
C. Neither.
4. Which country has the comparative advantage in producing grain?
A. Italy.
B. Chad.
C. Neither.

Answers

Answer:

chad

neither

chad

Italy

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

The opportunity cost of  Italy in producing one unit of grain = 5/10 = 0.5t dates

The opportunity cost of  Italy in producing one unit of dates = 10/5 = 2grains

The opportunity cost of  Chad in producing one unit of grain =  25/10 = 2.5 dates

The opportunity cost of  Chad in producing one unit of dates = 10/25 = 0.4 grains

Italy has a comparative advantage in the production of grains while Chad has a comparative advantage in the production of dates

A country has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries. Chad produces 25t of dates while Italy produces 5t of dates, this shows that Chad has an absolute advantage in the production of dates. Both Italy and Chad produces the same quantity of grains so neither have an absolute advantage in the production of grains.

During its first year of operations, Fisher Plumbing Supply Co. had sales of $480,000, wrote off $7,700 of accounts as uncollectible using the direct write-off method, and reported net income of $52,800. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 1/2% of sales would be uncollectible.

Answers

Answer:

Sales                                       $480,000

Less: Expenses (Bal Figure)  $419,500

Less: Write Off Account         $7,700    

Net Income                             $52,800

If Allowance Method Is Used  

Sales                                                                 $480,000

Less: Expenses                                                $419,500

Less: Write Off Account (1.5% of 480,000)    $7,200

Net Income                                                       $53,300

The following monthly data pertains to the Amnesty Company: Sales commissions 8,000 Delivery truck depreciation $2,500 Direct labor 45,000 Indirect labor 15,000 Direct materials 30,000 Indirect materials 4,000 Factory electricity and gas 8,000 Factory supervisor salary 12,000 Depreciation of factory building 7,000 Property taxes on corporate headquarters building 16,000 Determine the manufacturing overhead for the month.

Answers

Answer: $46000

Explanation:

The manufacturing overhead for the month will be calculated as:

Indirect labour = $15000

Add: Indirect material = $4000

Add: Factory electricity gas = $8000

Add: Factory supervisor salary = $12000

Add: Depreciation on factory building = $7000

Therefore, the total manufacturing overheads would be gotten by adding the above values together whihc will be equal to $46000.

Grimaldi Chocolates projects its factory rent to be $8,000 in July when 4,000 pounds of candy are expected to be produced. If rent is a fixed cost, and if production is expected to increase to 6,000 units in August, what is the expected cost of rent in August

Answers

Answer:

$8,000

Explanation:

With regards to the above information, the expected cost of rent in August is $8,000. This is because the $8,000 is fixed in total.

We know that fixed costs are those costs that do not vary with the level of output. Invariably, it means they remained the same as activity level or output changes.

Although, production increases to 6,000 units in August from 4,000 candy pounds of candy that are expected to be produced in March, yet, the fixed cost of $8,000 would remain the same whether or not production increases or decreases.

Which of the following is not true about communisim? 1. it was outlined by Karl Marx in the famous text "Communist Manifesto". 2. It has a weak central government 3. Because the government makes production decisions, there tends to be a lot of shortages and surpluses. 4. There is public ownership of all enterprises.

Answers

Which of the following is not true about communisim? 1. it was outlined by Karl Marx in the famous text "Communist Manifesto". 2. It has a weak central government 3. Because the government makes production decisions, there tends to be a lot of shortages and surpluses. 4. There is public ownership of all enterprises.

The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 48,000 shares of common stock in exchange for $480,000 in cash. Purchased equipment at a cost of $58,000. $19,000 cash was paid and a notes payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $114,000. The company uses the perpetual inventory system. Credit sales for the month totaled $210,000. The cost of the goods sold was $88,000. Paid $6,800 in rent on the warehouse building for the month of March. Paid $7,800 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. Paid $88,000 on account for the merchandise purchased in 3. Collected $73,000 from customers on account. Recorded depreciation expense of $2,800 for the month on the equipment. Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero. Prepare a trial balance from the ending account balances.

Answers

Answer:

Wainwright Corporation

1. T-accounts:

Cash

Accounts Titles                  Debit     Credit

Common stock             $480,000

Equipment                                        $19,000

Rent Expense                                      6,800

Prepaid insurance                               7,800

Accounts payable                             88,000

Accounts receivable        73,000

Balance                                         $431,400

Common Stock

Accounts Titles                  Debit     Credit

Cash                                               $480,000

Equipment

Accounts Titles                  Debit     Credit

Cash                                $19,000

Notes payable                  39,000

Balance                                          $58,000

Notes Payable

Accounts Titles                  Debit     Credit

Equipment                                      $39,000

Inventory

Accounts Titles                  Debit     Credit

Accounts payable            $114,000

Cost of goods sold                           $88,000

Balance                                               26,000

Accounts Payable

Accounts Titles                  Debit     Credit

Inventory                                          $114,000

Cash                                  $88,000

Balance                               26,000

Cost of Goods Sold

Accounts Titles                  Debit     Credit

Inventory                          $88,000

Sales Revenue

Accounts Titles                  Debit     Credit

Accounts receivable                      $210,000

Accounts Receivable

Accounts Titles                  Debit     Credit

Sales revenue                $210,000

Cash                                                    $73,000

Balance                                                137,000

Rent Expense

Accounts Titles                  Debit     Credit

Cash                                  $6,800

Prepaid Insurance

Accounts Titles                  Debit     Credit

Cash                                  $7,800

Depreciation Expense

Accounts Titles                    Debit     Credit

Accumulated depreciation $2,800

Accumulated Depreciation - Equipment

Accounts Titles                  Debit     Credit

Depreciation Expense                     $2,800

2. Trial Balance

As of April 30, 2021:

Accounts Titles              Debit          Credit

Cash                            $431,400

Common stock                                 $480,000

Equipment                     58,000

Notes payable                                      39,000

Inventory                       26,000

Accounts payable                                26,000

Cost of goods sold       88,000

Sales revenue                                    210,000

Accounts receivable   137,000

Rent expense                 6,800

Prepaid insurance          7,800

Depreciation expense   2,800

Accumulated depreciation                   2,800

Totals                       $757,800       $757,800

Explanation:

To prepare T-accounts, just follow a simple step by posting each transaction to two accounts or more as the case may.  After all transactions have been posted, balance the accounts by identifying the differences between the two sides of each account.  Use the balances (where only one transaction is recorded in an account, that becomes the balance) to extract the Trial Balance.

The 2017 Annual Report of Tootsie Roll Industries contains the following information.
(in millions) December 31, 2017 December 31, 2016
Total assets $930.9 $920.1
Total liabilities 197.1 208.6
Net sales 515.7 517.4
Net income 80.7 67.2
Compute the following ratios for Tootsie Roll for 2017.
(a) Asset turnover (Round answer to 3 decimal places, e.g. 0.851 times.)
(b) Return on assets (Round answer to 2 decimal places, e.g. 4.87%.)
(c) Profit margin on sales (Round answer to 2 decimal places, e.g. 4.87%.)

Answers

Answer:

1.108 times

8.66%

16%

Explanation:

A. 2017 Asset turnover

Net sales / Average total assets

= 515.7/[(930.9 + 0)/2]

= 515.7/465.45

= 1.108 times

B. Return on assets

Net income/Total assets

= 80.7/930.9

= 0.0866 × 100

= 8.669%

C. Profit margin on sales

= Net income/Net sales

= 80.7/515.7

= 0.16 × 100

= 16%

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