Answer:
$82,580
Explanation:
We can calculate the estimated amount of inventory destroyed in the flood by deducting the cost of goods sold by the cost of goods available for sale.
DATA
Beginning Inventory = $215,950
Inventory purchased = $192,730
Sales = $543,500
Calculation
Inventory destroyed Iestimated) = Cost of Goods available for sale - Cost of Goods Sold
Inventory destroyed Iestimated) = $408,680 - $326,100
Inventory destroyed Iestimated) = $82,580
Working
Cost of Goods available for sale = Beginning Inventory + Inventory purchased
Cost of Goods available for sale = $215,950 + $192,730
Cost of Goods available for sale = $408,680
Cost of Goods Sold = Sales - Gross Profits
Cost of Goods Sold = $543,500 - ($543400 x 40%)
Cost of Goods Sold = $ 326,100
Suppose that in a competitive market without government regulations, the equilibrium price of a hamburger is $7 each.
Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
Statement Price Control Binding or Not
Due to new regulations, fast-food restaurants that would like to pay better wages in order to hire more workers are prohibited from doing so.
The government prohibits fast-food restaurants from selling hamburgers for more that $5 each.
Answer:
Price Ceiling regulations prohibit the price of a good or service from being higher than a set price known as the Price Ceiling.
Price Floor regulations prohibit the price of a good or service from being lower than a set price known as the Price floor.
When either Price Ceiling or Floor is said to be nonbinding, it means that it does not affect the market/ equilibrium price of the good or service.
Binding Ceilings or Floors affect the market/ equilibrium price.
Due to new regulations, fast-food restaurants that would like to pay better wages in order to hire more workers are prohibited from doing so. BINDING PRICE CEILING.
The Fast-food restaurants cannot pay above a certain amount which makes this a Price Ceiling. It is binding because the Market wants to pay higher wages to hire more people but cannot therefore the price ceiling is having an effect on the equilibrium price.
The government prohibits fast-food restaurants from selling hamburgers for more that $5 each. BINDING PRICE CEILING.
Fast-food restaurants are not allowed to sell above the set price of $5 which makes this a price ceiling. It is Binding because the equilibrium price is $7 which means that fast-food restaurants are forced to sell below the equilibrium price therefore this Price ceiling affects the equilibrium price.
Answer:
See Below..
Explanation:
1. Due to new regulations, fast-food restaurants that would like to pay better wages in order to hire more workers are prohibited from doing so.
Price Ceiling and Binding
In the labor market, minimum wage laws are an example of a price floor while a cap on wages is an example of a price ceiling. Moreover, the impact of the minimum wage laws depends on the skill and experience of the worker. In this case, new regulations restrict fast-food restaurants from increasing wages and, thus, attracting more workers. This binding price ceiling causes a shortage of workers in this labor market.
2. The government prohibits fast-food restaurants from selling hamburgers for more that $5 each.
Price Floor and Binding
A price ceiling is a legal maximum on the price at which a good can be sold. Therefore, prohibiting fast-food restaurants from selling hamburgers for more than a particular price is an example of a price ceiling. A binding price ceiling is a price ceiling that is set below the equilibrium price. Because the equilibrium price is $7 each for hamburgers, a legal maximum price of $5 is a binding price ceiling. A binding price ceiling will ultimately cause a shortage, while a non-binding price ceiling has no effect on the equilibrium price and quantity.
Hope this helped you!
Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products May 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co. under credit 7 Macy returns 125 units because they did not fit the customer 's needs (invoice amount: $1,750). Allied restores 8 Macy discovers that 200 units are scuffed but are still of use and, therefore, keeps the units. Allied sends cash per unit (for a total cost of $20,000) terms 2/10, n/60. The goods cost Allied $15,000 the units, which cost $1,250, to its inventory. Macy a credit memorandum for $300 toward the original invoice amount to compensate for the damage allowances, and any cash discount. 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, Exercise 5-4 Recording sales, sales returns, and sales allowances LO P2
Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. (Allied estimates returns using an adjusting entry at each year-end.) View transaction list Journal entry worksheet Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000).
Note: Enter debits before credits. Date General Journal Debit Credit May 03
Answer:
May 3 No Journal Entry
May 5
Dr Merchandise Inventory 21,000
Cr Accounts Payable 21,000
May 7
Dr Accounts Payable 1,750
Cr Merchandise Inventory 1,750
May 8
Dr Accounts Payable 300
Cr Merchandise Inventory 800
May 15
Dr Accounts Payable 18,950
Cr Merchandise Inventory 379
Cr Cash 18,571
Explanation:
Preparation of Journal entries
May 3 No Journal Entry
May 5
Dr Merchandise Inventory 21,000
(1,500 * $14 per unit )
Cr Accounts Payable 21,000
(To record the purchase of inventory)
May 7
Dr Accounts Payable 1,750
Cr Merchandise Inventory 1,750
(To record the purchase return)
May 8
Dr Accounts Payable 300
Cr Merchandise Inventory 800
(To record the allowance to Macy)
May 15
Dr Accounts Payable 18,950
($21,000-$1,750-$300)
Cr Merchandise Inventory 379
($21,000-$1,750-$300)*2%
Cr Cash 18,571
($21,000-$1,750-$300)*98%
(To record the payment on account)
What is a premium in personal finance HEEEEELLPPP
Premium has multiple meanings in finance, with the first being the total cost to buy an option. A premium is also the difference between the price paid for a fixed-income security and the security's face amount at issue.
Source: Investopedia
Pix Company has the following production data for March: no beginning work in process, units started and completed 30,500, and ending work in process 5,200 units that are 100% complete for materials and 40% complete for conversion costs. Pix uses the FIFO method to compute equivalent units. If unit materials cost is $4 and unit conversion cost is $12. The total costs to be assigned are $533,760, prepare the cost section of the production cost report for Pix Company using the FIFO approach.
Answer:
Summary of costs to be accounted for
Costs to be accounted for: Materials Conversion Total
Beginning WIP 0 0 0
Costs incurred in the period $142,800 $390,960 $533,760
Total costs to be accounted for $142,800 $390,960 $533,760
Calculation of cost per equivalent unit
Materials Conversion Total
Total costs to be accounted for $142,800 $390,960 $533,760
Total equivalent units 35,700 32,580
Cost per equivalent unit $4 $12 $16
Cost allocation
Materials Conversion Total
Units finished and transferred $122,000 $366,000 $488,000
Ending WIP $20,800 $24,960 $45,760
Total costs to be accounted for $142,800 $390,960 $533,760
Explanation:
beginning WIP 0 units
units started and completed 30,500
ending WIP 5,200
100% complete for materials
40% complete for conversion costs (2,080 EU)
total EU:
materials 35,700
conversion 32,580
total costs:
materials 35,700 x $4 = $142,800
conversion 32,580 x $12 = $390,960
total = $533,760
You would expect a bond of the U.S. government and a bond of an Eastern European government to pay different interest rates because of differences in the bonds_____.
You would expect a bond that pays the principal in year 2040 and a bond that pays the principal in year 2020 to pay_____interest rates because of differences in the bonds.
You would expect a bond from a software company you run in your garage and a bond from Coca-Cola to pay different interest rates because of differences in the bonds_____.
You would expect a bond issued by New York State to pay_____interest rate as compared to a bond issued by the federal government.
Answer:
You would expect a bond of the U.S. government and a bond of an Eastern European government to pay different interest rates because of differences in the bonds Credit Risk.
The United States has the safest securities in the World and so pay different rates from other countries to reflect this especially with an Eastern European Government that is not as trusted.
You would expect a bond that pays the principal in year 2040 and a bond that pays the principal in year 2020 to pay higher interest rates because of differences in the bonds.
Bond with longer maturity terms are riskier as they will be exposed to more inflation and interest rate risk.
You would expect a bond from a software company you run in your garage and a bond from Coca-Cola to pay different interest rates because of differences in the bonds Credit Risk.
Coca-Cola is a big company with many assets that back up any leverage it has and so they will have a lower risk than a person with a small business in a garage that might be unable to keep up with payments and default.
You would expect a bond issued by New York State to pay higher interest rate as compared to a bond issued by the federal government.
The Federal Government will be less riskier than New York when it comes to repaying debt because if push comes to shove they can simply print more dollars. They also have higher revenue streams than New York State which means that New York is riskier and will therefore pay a higher interest rate to compensate.
1. You are 26 years old, married, and have two small children. You have a household income (take-home pay) of $3,500 per month and currently rent your home. You have and pay many bills, and make many purchases (usually by debit card) each month. You often lose track of spending and end up paying unnecessary bank fees. You would like to buy a new car in five months and a new home in two years. To avoid overdrafts, you chose "opt-in" overdraft protection with your bank. You just received your bank statement, which states a balance of $691, while your check register says you have a balance of $800. Which of the following accounts would be best for?
Purpose Type of accountA) Satisfying your day-to-day spending needs? ___________ B) Making and holding funds for your car purchase? ___________C) Making and holding funds for your home purchase? ___________D) Making and holding funds for your retirement?
A. Stock and bond portfolio.
B. NOW account.
C. NOW account.
D. Mutual funds.
2. Which of the following accounts is typically not insured?A. Mutual Funds.B. NOW account.
C. Certificate of deposit.
D. Statement savings account.
3. Which of the following practices would help you keep accurate records regarding the funds in your bank account?
A. Keep track of your balance online.B. Immediately record the date and amount of each transaction in your check register and calculate the new balance.C. Wait for the printed bank statement to arrive in the mail to know what payments and receipts have cleared your account.4. You can avoid a service fee on an average-balance account if you:______.
A. Issue a stop-payment order when you find yourself overdrawn.B. Keep a certain average daily balance in the account through a specified time.C. Avoid an overdraft for a specified time.D. Have your paycheck automatically deposited into your account each pay period.
Answer:
1. A) Satisfying your day-to-day spending needs?
Statement Savings account
Bank statements will hep you keep track of the balance.
B) Making and holding funds for your car purchase?
NOW Account.
An account that earns interest yet allows the owner to write drafts against the money in the account. This would be good here as it will increase the funds you are saving for the car purchase.
C) Making and holding funds for your home purchase?
NOW Account.
NOW stands for Negotiable Order of Withdrawal account and would work here as well.
D) Making and holding funds for your retirement?
Certificate of Deposit.
These are offered by banks and earn a higher interest return. They however have to be locked up for a while without withdrawing so they are great for retirement saving.
2. Which of the following accounts is typically not insured?
A. Mutual Funds.Mutual funds are not financial deposits so will not be covered by the Federal Deposit Insurance Corporation (FDIC).
3. Which of the following practices would help you keep accurate records regarding the funds in your bank account?
A. Keep track of your balance online.B. Immediately record the date and amount of each transaction in your check register and calculate the new balance.4. You can avoid a service fee on an average-balance account if you:
B. Keep a certain average daily balance in the account through a specified timeAndreasen Corporation manufactures thermostats for office buildings. The following is the cost of each unit:
Materials $ 36.00
Labor 14.00
Variable overhead 4.00
Fixed overhead ($1,800,000 per year; 100,000 units per year) 18.00
Total $ 72.00
Simpson Company has approached Andreasen with an offer to buy 7,500 thermostats at a price of $60 each. The regular price is $100. Andreasen has the capacity to produce the 7,500 additional units without affecting its current production of 100,000 units. Simpson requires that each unit use its branding, which requires a more expensive label, resulting in an additional $2 per unit material cost. The labor cost of affixing the label will be the same as for the current models. The Simpson order will also require a one-time rental of packaging equipment for $20,000.
Required:
a. Prepare a schedule to show the impact of filling the Simpson order on Andreasen’s profits for the year. (Enter your answers in thousands (i.e., 5,400,000 should be entered as 5,400). Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.)
Status quo 100,000 units Alternative 107,500 units Difference Higher or lower
Sales Revenue ? ? ? ?
Less: variable cost ? ? ? ?
Materials ? ? ? ?
Labor ? ? ? ?
Variable Overhead ? ? ? ?
Total variable cost ? ? ? ?
Contribution margin ? ? ? ?
Less; fixed costs ? ? ? ?
Operating profit or loss ? ? ? ?
b. Do you agree with the decision to accept the special order. Yes or no?
c. Considering only profit, determine the minimum quantity of thermostats in the special order that would make it profitable, assuming capacity is available.... Quanitity of Themostats #___?____ units
Answer:
Andreasen Corporation
Special Order by Simpson Company:
a. Status quo Alternative
100,000 units 107,500 units Total Difference
($'000) ($'000) ($'000) ($'000)
Sales Revenue $10,000 $450 $10,450 $450 Higher
Total Variable cost 5,400 420 5,820 420 Higher
Contribution $4,600 $30 $4,630 30 Higher
Fixed costs 1,800 20 1,820 20 Higher
Operating profit $2,800 $10 $2,810 10 Higher
b. No.
d. Contribution per unit = $4 ($30,000/7,500)
Fixed cost = $20,000
Fixed cost Plus Profit = $30,000
Minimum quantity to make it profitable = $30,000/$4 = 7,500 thermostats
However, this profit level is far below the normal production profit of 28% on sales revenue.
Explanation:
a) Data and Calculations:
Materials $ 36.00
Labor 14.00
Variable overhead 4.00
Total variable cost = $54
Fixed overhead ($1,800,000 per year; 100,000 units per year) 18.00
Total $ 72.00
Selling price = $100
Special order = 7,500 thermostats
Price of special order = $60
Relevant costs of special order:
Materials $ 36.00
Labor 14.00
Variable overhead 4.00
Additional material = $2
Unit variable cost = $56
Total variable cost = $420,000
Packaging equipment 20,000
Total relevant cost = $440,000
Sales Revenue = $450,000
Profit from special order = $10,000
Categories of expenditures
Eric and Ginny Gaffney live in Swarthmore, PA. Ginny's father, Kenji, lives in Sweden.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.
Transaction C I G X M
Eric's employer upgrades all of its computer systems using U.S.-made parts.
Ginny gets a new refrigerator made in the United States.
Ginny's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
Eric buys a bottle of Italian wine.
Answer:
Categories of expenditures
1. I
Eric's employer upgrades all of its computer systems using U.S.-made parts.
2. C
Ginny gets a new refrigerator made in the United States.
3. X
Ginny's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
4. G
The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
5. M
Eric buys a bottle of Italian wine.
Explanation:
The US Gross Domestic Product (GDP) can be measured using the expenditure approach: Y = C + I + G + (X – M). This expenditure approach calculates GDP by evaluating the sum of all final goods and services purchased in the US economy. The components of the US GDP identified as “Y” in equation form include Consumption (C), Investment (I), Government Spending (G), and Net Exports (X – M) with X as exports and M as imports.
Winona and Hubert need to decide which one of them will take time off from work to complete the rather urgent task of shearing their llamas. Winona is pretty good with a pair of shears; she can shear the llamas in 1 hour. Hubert is somewhat slow; it takes him 9 hours to shear the llamas. Winona earns $200 per hour as a psychiatrist, while Hubert earns $25 per hour as a cobbler. Keeping in mind that either Winona or Hubert must take time off from work to shear the llamas, who has the lowest opportunity cost of completing the task?
a. Jacques
b. Kyoko and Jacques face equal opportunity costs
c. Kyoko
what are you being for halloween
Answer:
maybe a fox
Explanation:
Which staff member usually does the work of both a front desk clerk and an accounting clerk?
A. Controller
B. Credit manager
C. Accounts receivable clerk
D. Night auditor
For Sheffield Corp., sales is $1660000 (8300 units), fixed expenses are $480000, and the contribution margin per unit is $80. What is the margin of safety in dollars
Answer:
$460,000
Explanation:
The computation of the margin of safety in dollars is shown below:-
Break even sales = fixed cost ÷ contribution per unit
= $480,000 ÷ $80
= 6,000 units
The Margin of safety in dollars = Total sales - Break even sales
= 8,300 - 6,000
= 2,300
sale price = $1660000 ÷ 8,300
= $200 per unit
margin of safety in dollars = 2,300 × $200
= $460,000
true or false ,The first step in composing a message is to identify its purpose
Cushenberry Corporation had the following transactions. 1. Sold land (cost $12,000) for $15,000. 2. Issued common stock at par for $20,000. 3. Recorded depreciation on buildings for $17,000. 4. Paid salaries of $9,000. 5. Issued 1,000 shares of $1 par value common stock for equipment worth $8,000. 6. Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200.
Required:
For each transaction above, (a) prepare the journal entry, and (b) indicate how it would affect the statement of cash flows using the indirect method.
Answer:
Entries are given
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
Sold land (cost $12,000) for $15,000.
Dr Cash 15,000
Cr Land 12,000
Cr Gain on Sale 3,000
Increase investing cash flows by 15,000. and 3000 gain will be deducted from operating activities
Issued common stock
Dr Cash 20,000
Cr Common Stock 20,000
Increase financing cash flows by 20,000
Recorded depreciation on buildings for $17,000.
Dr Depreciation Expense 17,000
Cr Accumulated Depreciation 17,000
This will not affect cash flow.
Paid salaries of $9,000.
Dr Salaries Expense 9,000
Cr Cash 9,000
Decrease operating activities cash flow by $9,000.
Issued 1,000 shares of $1 par value common stock for equipment
Dr Equipment 8,000
Cr Additional paid-in capital Common Stock 7,000
Cr Common Stock 1,000
It doesn't involve any cash however affects the company financial position so it will be recorded in schedule of non cash financing and investing activities
Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200.
Dr Cash 1,200
Dr Accumulated Depreciation 7,000
Dr Loss on Disposal 1,800
Cr Equipment 10,000
There would be an increased cash flow of $1,200 under investing activities.
Marigold Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $192000 loss in the year of disposal. The loss on disposal of the segment was $99000. If the tax rate is 30%, and income before income taxes was $1630000.
a. the income tax expense on the income before discontinued operations is $378300.
b. the income from continuing operations is $1141000.
c. net income is $1339000.
d. the losses from discontinued operations are reported net of income taxes at $291000.
Answer:
The correct option is b. The income from continuing operations is $1141000.
Explanation:
Based on the information given we were told that the tax rate is 30% while the income before income taxes was $1,630,000 which means that the The income from continuing operations is $1141000 calculated as:
Income from continuing operations=[$1,630,000-(30%*$1,630,000)]
Income from continuing operations=$1,630,000-$489,000
Income from continuing operations=$1,141,000
Yancey Productions is a film studio that uses a job-order costing system. The company’s direct materials consist of items such as costumes and props. Its direct labor includes each film’s actors, directors, and extras. The company’s overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars.At the beginning of the year, Yancey made the following estimates:Direct labor-dollars to support all productions $ 8,260,000Fixed overhead cost $ 4,956,000Variable overhead cost per direct labor-dollar $ 0.17Required:1. Compute the predetermined overhead rate. (I found the answer: .77 per DL$)2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:Direct materials $ 1,386,000Direct labor cost $ 2,478,000Compute the total job cost for this particular film.Direct Materials: $1,386,000Direct Labor: $2,478,000
Answer and Explanation:
The computation is shown below:
Predetermined overhead rate is
= Variable overhead cost per direct labor hours + Fixed overhead cost ÷ Direct labor-dollars
= $0.17 + $4,956,000 ÷ 8,260,000
= $0.17 + $0.6
= $0.77
Now the total cost is
= Direct material cost + direct labor cost + manufacturing cost
= $1,386,000 + $2,478,000 + ($2,478,000 × $0.77)
= $5,772,060
Suppose that per-unit costs for Alpha-Zeta Co. are $25 when they are producing 50,000 units. Now suppose that the firm increases production to 50,100 units and total costs are $2,000,000 at that level of production. Question: What is occurring as the firm increases production from 50,000 to 50,100 units?
Answer:
Diseconomies of scale due to the fact that per unit cost increased from $25 to $39.92
Explanation:
Economies is scale is when a larger production is a product leads to reduced cost of production.
For example if production of 1,000 units of a good costs $20 per unit, but production of 1,500 units goes for $17. The cost of production per unit reduces. So there is economies of scale.
In the given scenario production of 5,000 units is at $25 per unit.
While at 5,100 units it is (2,000,000 ÷ 50,100) = $39.92
So this is a diseconomies of scale.
Headland Mining Company purchased land on February 1, 2020, at a cost of $1,169,500. It estimated that a total of 52,800 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $96,300. It believes it will be able to sell the property afterwards for $107,000. It incurred developmental costs of $214,000 before it was able to do any mining. In 2020, resources removed totaled 26,400 tons. The company sold 19,360 tons. Compute the following information for 2020.
A) Per unit mineral cost.
B) Total material cost of December 31, 2020, inventory.
C) Total material cost in cost of goods sold at December 31, 2020.
Answer:
1. $26 per unit
2. $183,040
3. $503,360
Explanation:
1. Computation of per unit mineral cost
Per unit mineral cost=(1,169,500+96,300+214,000-107,000)/52,800
Per unit mineral cost=1,372,800/52,800
Per unit mineral cost=$26 per unit
Therefore the Per unit mineral cost will be $26 per unit
2. Computation of Total materials cost
Total materials cost= (26,400 tons-19,360 tons)*26
Total materials cost=7,040*26
Total materials cost=$183,040
Therefore the Total materials cost will be $183,040
3. Calculation for the Total materials cost in Cost of goods sold
Total materials cost in Cost of goods sold= (19,360*26)
Total materials cost in Cost of goods sold =$503,360
Therefore the Total materials cost in Cost of goods sold will be $503,360
Brews 4 U is a local chain of coffee shops. Managers are interested in the costs of the stores and believe that the costs can be explained in large part by the number of customers patronizing the stores. Monthly data regarding customer visits and costs for the preceding year for one of the stores have been entered into the regression analysis.
Average monthly customer-visits 1,462
Average monthly total costs $4,629
Regression results: Intercept $1,496
b coefficient $2.08
R2 0.86814
Required:
a. In a regression equation expressed as y= a + bx, how is the letter b best described?
b. How is the letter y in the regression equation best described?
c. How is the letter x in the regression equation best described?
d. Based on the data derived from the regression analysis, what are the estimated costs for 370 customer-visits in a month?
e. What is the percent of the total variance that can be explained by the regression equation?
Answer:
Explanation:
a. In a regression equation expressed as y= a + bx, how is the letter b best described?
Here, b is the slope and best described as the estimate of the cost when there's a visit of an additional customer.
b. How is the letter y in the regression equation best described?
The letter y is the observed store cost for that particular month.
c. How is the letter x in the regression equation best described?
The letter x is the observed customer visit for that particular month.
d. Based on the data derived from the regression analysis, what are the estimated costs for 370 customer-visits in a month?
The estimated cost for 370 customer visit will be:
Y = a + bx
where,
a =$1496
b = $2.08
x = 370 customer visit
Y = $1496 + ($2.08 × 370 customer visit)
= $1496 + $769.6
= $2265.6
e. What is the percent of the total variance that can be explained by the regression equation?
The percent of total variance which the regression equation explain will be:
R2 = 0.86814 or 86.814%
What is the basic economic problem?
a
Creating stability in the stock market.
b
Making products available at places that are convenient for customers.
c
Being a competitive business in the marketplace.
d
Making choices about using limited resources to satisfy unlimited wants.
im on a test please help
The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Note: You must complete parts 1, 2, 3, 4 before completing part 5.
Part 5: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet using the following adjustment data.
Insurance expired during May is $275.
Supplies on hand on May 31 are $715.
Depreciation of office equipment for May is $330.
Accrued receptionist salary on May 31 is $325.
Rent expired during May is $1,600.
Unearned fees on May 31 are $3,210.
If an amount box does not require an entry, leave it blank or enter "0".
Kelly Consulting
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended May 31, 20Y8
Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash
Accounts Receivable
Supplies
Prepaid Rent
Prepaid Insurance
Office Equipment
Accum. Depreciation
Accounts Payable
Salaries Payable
Unearned Fees
Common Stock
Retained Earnings
Dividends
Fees Earned
Salary Expense
Rent Expense
Supplies Expense
Depreciation Expense
Insurance Expense
Miscellaneous Expense
Net income
Part of question attached
Answer and Explanation:
Please find answer and explanation attached
Eaton Tires manufactures tires for dune buggies and has two different products, nubby tires and smooth tires. The company produces 5,000 nubby tires and 10,000 smooth tires each year and incurs $172,000 of overhead costs. The following information is available:
Activity Total Cost Cost Driver
Materials handling $60,000 Number of requisitions
Machine setups 55,000 Number of setups
Quality inspections 57,000 Number of inspections
For the nubby tires, the company has 400 requisitions, 200 setups, and 200 inspections. The smooth tires require 600 requisitions, 300 setups, and 400 inspections.
Determine the overhead rate for each activity.
Answer:
Materials handling= $60 per requisition
Machine setups= $110 per setup
Quality inspections= $95 per inspection
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Materials handling= 60,000/1,000= $60 per requisition
Machine setups= 55,000/500= $110 per setup
Quality inspections= 57,000/600= $95 per inspection
"16. An investment promises to pay $6,000 at the end of each year for the next five years and $4,000 at the end of each year for years 6 through 10. a. If you require a 12 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment?"
Answer:
$33,387.70
Explanation:
A summary of the cash flows for this investment is :
Year 1 $6,000
Year 2 $6,000
Year 3 $6,000
Year 4 $6,000
Year 5 $6,000
Year 6 $4,000
Year 7 $4,000
Year 8 $4,000
Year 9 $4,000
Year 10 $4,000
So, clear these are uneven cash flows thus use your CFj function on your financial calculator to find the Net Present Value at the rate of 12% as below:
CFj $6,000
CFj $6,000
CFj $6,000
CFj $6,000
CFj $6,000
CFj $4,000
CFj $4,000
CFj $4,000
CFj $4,000
CFj $4,000
I/YR = 12 %
SHIFT NPV = $33,387.70
Thus, the maximum amount you would pay for this investment is $33,387.70.
The value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of the dividends the investor receives each year while holding the stock and the price the investor receives when the stock is sold. The final price includes the original price paid plus an expected capital gain. The actions of the marginal investor determine the equilibrium stock price. Market equilibrium occurs when the stock's price is -Select-less thanequal togreater thanCorrect 1 of Item 1 its intrinsic value. If the stock market is reasonably efficient, differences between the stock price and intrinsic value should not be very large and they should not persist for very long. When investing in common stocks, an investor's goal is to purchase stocks that are undervalued (the price is -Select-abovebelowequivalent toCorrect 2 of Item 1 the stock's intrinsic value) and avoid stocks that are overvalued.
The value of a stock today can be calculated as the present value of -Select-a finitean infiniteCorrect 3 of Item 1 stream of dividends:
This is the generalized stock valuation model. We will now look at 3 different situations where we can adapt this generalized model to each of these situations to determine a stock's intrinsic value:
1. Constant Growth Stocks;
2. Zero Growth Stocks;
3. Nonconstant Growth Stocks.
Constant Growth Stocks:
For many companies it is reasonable to predict that dividends will grow at a constant rate, so we can rewrite the generalized model as follows:
This is known as the constant growth model or Gordon model, named after Myron J. Gordon who developed and popularized it. There are several conditions that must exist before this equation can be used. First, the required rate of return, rs, must be greater than the long-run growth rate, g. Second, the constant growth model is not appropriate unless a company's growth rate is expected to remain constant in the future. This condition almost never holds for -Select-maturestart-upCorrect 4 of Item 1 firms, but it does exist for many -Select-maturestart-upCorrect 5 of Item 1 companies.
Which of the following assumptions would cause the constant growth stock valuation model to be invalid?
The growth rate is zero.
The growth rate is negative.
The required rate of return is greater than the growth rate.
The required rate of return is more than 50%.
None of the above assumptions would invalidate the model.
-Select-Statement aStatement bStatement cStatement dStatement eCorrect 6 of Item 1
Quantitative Problem 1: Hubbard Industries just paid a common dividend, D0, of $1.60. It expects to grow at a constant rate of 2% per year. If investors require a 10% return on equity, what is the current price of Hubbard's common stock? Round your answer to the nearest cent. Do not round intermediate calculations.
$ per share
Zero Growth Stocks:
The constant growth model is sufficiently general to handle the case of a zero growth stock, where the dividend is expected to remain constant over time. In this situation, the equation is:
Note that this is the same equation developed in Chapter 5 to value a perpetuity, and it is the same equation used to value a perpetual preferred stock that entitles its owners to regular, fixed dividend payments in perpetuity. The valuation equation is simply the current dividend divided by the required rate of return.
Quantitative Problem 2: Carlysle Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $2.00 at the end of each year. If investors require an 10% return on the preferred stock, what is the price of the firm's perpetual preferred stock? Round your answer to the nearest cent. Do not round intermediate calculations.
$ per share
Nonconstant Growth Stocks:
For many companies, it is not appropriate to assume that dividends will grow at a constant rate. Most firms go through life cycles where they experience different growth rates during different parts of the cycle. For valuing these firms, the generalized valuation and the constant growth equations are combined to arrive at the nonconstant growth valuation equation:
Basically, this equation calculates the present value of dividends received during the nonconstant growth period and the present value of the stock's horizon value, which is the value at the horizon date of all dividends expected thereafter.
Quantitative Problem 3: Assume today is December 31, 2013. Imagine Works Inc. just paid a dividend of $1.15 per share at the end of 2013. The dividend is expected to grow at 15% per year for 3 years, after which time it is expected to grow at a constant rate of 6% annually. The company's cost of equity (rs) is 9.5%. Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2013)? Round your answer to the nearest cent. Do not round intermediate calculations.
$ per share
Full question attached
Answer and Explanation:
Find attached
Selected accounts from the ledger of McDaniel Corporation appear below. Indicate the nature of each account. Type Of Account
1. Supplies select a type of account
2. Notes Payable select a type of account
3. Service Revenue select a type of account
4. Dividends select a type of account
5. Accounts Payable select a type of account
6. Salaries and Wages Expense select a type of account
7. Common Stock select a type of account
8. Accounts Receivable select a type of account
9. Equipment select a type of account
10. Notes Receivable select a type of account
Answer:
1. Supplies - ASSETS
Supplies are assets and are debited when they increase.
2. Notes Payable - LIABILITIES.
Current Liabilities owed to creditors.
3. Service Revenue. REVENUE
Revenue that will go to the income statement.
4. Dividends. EQUITY.
These are payments to Shareholders and so are Equity.
5. Accounts Payable. LIABILITY.
These are current liabilities and increase by credit.
6. Salaries and Wages Expense. EXPENSE.
These are expenses that will go to the Income Statement
7. Common Stock. EQUITY.
Common Stock is equity as it represents ownership in the company.
8. Accounts Receivable. ASSET.
Accounts Receivables are current assets and are debited when they increase.
9. Equipment. ASSET.
Equipment are fixed assets and are debited when they increase.
10. Notes Receivable. ASSETS.
Like Receivables these are current assets and are debited when they increase.
Target (TGT) recently earned a profit of $4.15 per share and has a P/E ratio of 23.19. Earnings have been growing at 11.5 percent per year over the past few years. If this growth continues, what would the stock price be in five years if the P/E ratio remains unchanged
Answer:
$165.85
Explanation:
Calculation for what would the stock price be in five years
First step is to calculate the EPS in 5 years
Using this formula
EPS in 5 years=EPS 0 (1+ Growth rate)^n
Let plug in the formula
EPS in 5 years=4.15*(1+11.5%)^5
EPS in 5 years=$7.1519
Now let calculate for the stock price in 5 years
Using this formula
Stock price in 5 years=P/E ratio*EPS in 5 years
Let plug in the formula
Stock price in 5 years=23.19*$7.1519
Stock price in 5 years=$165.85
Therefore what would the stock price be in five years is $165.85
A commodity’s demand causes its price to go up.
True
False
Answer:
the answer is false
Explanation:
( Please Help thank you.)
Franchisors in foreign countries must be aware of
A: Ease of communication
B: Shared currency Values
C. Political Risk
D: shared values and customs
Answer:
I think it's C but I'm not 100% sure.
Explanation:
Franchisors in foreign countries must be aware of political risks. Thus, the correct option is (C).
Economic problems, related legal systems, the lack of corruption, supply chain difficulties, and taxation must all be considered by franchisors.
A franchisor selecting a market in which to expand must have thorough market information as well as undertake a study of existing competitors in that area.
A corporation may choose to employ franchising as a marketing concept for business growth.
The vast majority of courts have ruled that franchisors may be held accountable for the actions of their franchisees and franchisee employees.
Therefore, the correct option is "C".
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1. As a young child, Karina had a passion for animals and environmental issues. After she graduated from college, Karina landed a job in an organization whose mission is to create public awareness about endangered animals and other environmental issues. Karina’s employer depends largely on grants and donations to fund business activities.
Answer: Non-profit corporation
Explanation:
The question seeks to find out what kind of company Karina works for. The answer would be a Non-profit Corporation. Non-profit Organizations are usually involved in humanitarian and altruistic pursuits such animal rights and environmental protection.
Non-profit usually rely on grants and donations in order to carry out their operations and they get usually these from wealthy individuals and companies as part of their Corporate Social Responsibility.
Southwest Pediatrics has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $116,000; Allowance for Uncollectible Accounts = $1,900 (debit). On December 31, 2021, Southwest estimates uncollectible accounts to be 15% of accounts receivable.
Required:
1. Record the adjusting entry for uncollectible accounts on December 31, 2021.
2. Determine the amount at which bad debt expense is reported in the income statement and the allowance for uncollectible accounts is reported in the balance sheet.
3. Calculate the net realizable value of accounts receivable.
Answer:
Bad Debt expense = Allowance for uncollectible debit + (Estimated uncollectibles)
= 1,900 + (15% * 116,000)
= $19,300
1.
Dec. 31 DR Bad debt expenses $19,300
CR Allowance for Uncollectable $19,300
2. Balance Sheet;
= 116,000 * 15%
= $17,400
Income Statement;
= $19,300
3. Net realizable value
= Accounts receivable - Estimated uncollectibles
= 116,000 - 17,400
= $98,600