Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was five years and the residual value was $3,000. Assume that the estimated productive life of the machine is 10,000 units.
Expected annual production was:
Year 1 2,000 units
Year 2 3,000 units
Year 3 2,000 units
Year 4 2,000 units
Year 5 1,000 units
1. Complete the cost column of a depreciation schedule for each of the alternative methods.
a. Straight-line
Income Statement Balance Sheet
Year Depreciation Expense Cost Accumulated Depreciation Book Value
At acquisition $25,000
1 $4,400 $25,000 $4,400 20,600
2 4,400 8,800 16,200
3 4,400 13,200 11,800
4 4,400 17,600 7,400
5 4,400 22,000 3,000
b. Units-of-production
Income Statement Balance Sheet
Year Depreciation Expense Cost Accumulated Depreciation Book Value
At acquisition $25,000
1 $4,400 $25,000 $4,400 20,600
2 6,600 11,000 14,000
3 4,400 15,400 9,600
4 4,400 19,800 5,200
5 2,200 22,000 3,000
c. Double-declining-balance
Income Statement Balance Sheet
Year Depreciation Expense Cost Accumulated Depreciation Book Value
At acquisition $25,000
1 $10,000 $25,000 $10,000 15,000
2 6,000 16,000 9,000
3 3,600 19,600 5,400
4 2,160 21,760 3,240
5 240 22,000 3,000

Answers

Answer 1

Answer:

a. Straight Line :

Year 1 $4,400

Year 2 $ 4,400

Year 3 $4,400

Year 4 $4,400

Year 5 $ 4,400

b. Units production :

Year 1 $5,000

Year 2 $7,500

Year 3 $5,000

Year 4 $5,000

Year 5  $2,500

c. Double declining :

Year 1 $12,500

Year 2 $6,250

Year 3 $3,125

Year 4 $1,562.5

Year 5 $781.25

Explanation:

a. Straight Line depreciation : ( Cost of asset - Salvage Value ) / Useful Life

Depreciation : ( 25,000 - 3,000 ) / 5 years = 4,400

b. Units of Production : ( Cost of Asset / Total Machine units ) * Usage per year

Year 1 : ( 25,000 / 10,000 ) * 2,000 =  $5,000

Year 2 : ( 25,000 / 10,000 ) * 3,000 =  $7,500

Year 3 : ( 25,000 / 10,000 ) * 2,000 =  $5,000

Year 4 : ( 25,000 / 10,000 ) * 2,000 =  $5,000

Year 5 : ( 25,000 / 10,000 ) * 1,000 =  $2,500

c. Double declining Method : Cost * declining percentage

Year 1 : 25,000 * 50% = 12,500

Year 2 : 25,000 * 25% = 6,250

Year 3 : 25,000 * 12.5% = 3,125

Year 4 : 25,000 * 6.25% = 1,562.5

Year 5 : 25,000 * 3.125% = 781.25


Related Questions

Consumers know that some fraction x of all new cars produced and sold in the market are defective. The defective ones cannot be identified except by those who own them. Cars do not depreciate with use. Consumers are risk-neutral and value nondefective cars at $10,000 each. New cars sell for $5,000 and used ones for $2,500. What is the fraction x

Answers

Answer:

x = 2/3

Explanation:

From the question, we have:

Probability of a defective car = x

Probability of a nondefective car =  1 - x

Value of defective car = Price of used cars = $2,500

Value of a nondefective car = $10,000

Expected value = Price of a new car = $5,000

The formula for calculating the expected value is given as follows:

Expected value = (Probability of a defective car * Value of defective car) + (Probability of a nondefective car * Value of a nondefective car) .......... (1)

Substituting all the relevant values into equation (1) and solve for x, we have:

$5,000 = (x * $2500) + (1 - x)$10,000

5,000 = 2500x + 10,000 - 10,000x

5000 - 10000 = 2500x - 10000x

-5000 = - 7500x

x = -5000 / - 7500

x = 2/3

The following is the inventory record of widgets for the ABC Company: Units Cost/Unit 1/1 Beginning Inventory 100 $ 10.00 4/15 Purchase 200 $ 11.00 8/24 Purchase 300 $ 12.00 11/27 Purchase 400 $ 13.00
At the end of the fiscal year, the physical inventory found 450 widgets on hand at 12/31. Total sales for the year were 500 widgets
REQUIRED:
a) Calculate the ending inventory value under each of the following inventory methods:
i. FIFO
ii. LIFO
iii. Weighted Average
b) Calculate the gross profit for each of the inventory methods.

Answers

Answer:

a-i. Ending inventory = $5,800

a-ii. Ending inventory = $5,000

a-iii. Ending inventory = $5,400

b-i. Gross profit = $3,800

b-ii. Gross profit = $3,000

b-iii. Gross profit = $3,400

Explanation:

Note: This question is not complete as the sentence for the Total sales is not complete. The complete sentence of the Total sales is therefore provided before answering the question as follows:

Total sales for the year were 500 widgets sold at a retail price of $20.00 per widget.

The explanation of the answers is now provided as follows:

a) Calculate the ending inventory value under each of the following inventory methods

Ending units of inventory = 450

Therefore, we have:

a-i. Calculate the ending inventory value under first in first out (FIFO) inventory method

Ending inventory = Cost of 400 units purchased on 11/27 + Cost 50 units from 300 units purchased on 8/24 = (400 * $13) + (50 *$12) = $5,800

a-ii. Calculate the ending inventory value under Last in first out (LIFO) inventory method

Ending inventory = Cost of 100 units Beginning Inventory on 1/1 + Cost of 200 units purchased on 4/15+ Cost 150 units from 300 units purchased on 8/24 = (100 * $10) + (200 * $11) + (150 * $12) = $5,000

a-iii. Calculate the ending inventory value under Weighted Average inventory method

Cost of goods available for sale = (100 * $10) + (200 * $11) + (300 * $12) + (400 * $13) = $12,000

Units available for sale = 100 + 200 + 300 + 400 = 1,000

Weighted Average cost per unit = Cost of goods available for sale / Total units available for sale = $12,000 / 1,000 = $12

Ending inventory = Ending units of inventory * Weighted Average cost per unit = 450 * $12 = $5,400

b) Calculate the gross profit for each of the inventory methods.

Units of inventory sold = 500

Retail price per widget or unit = $20.00

Sales revenue = Units of inventory sold * Retail price per widget or unit = 500 * $20.00 = $10,000

Cost of goods available for sale = (100 * $10) + (200 * $11) + (300 * $12) + (400 * $13) = $12,000

Therefore, we have:

b-i. Calculate the gross profit under first in first out (FIFO) inventory method

Ending inventory = $5,800

Cost of goods sold = Cost of goods available for sale - Ending inventory = $12,000 - $5,800 = $6,200

Gross profit = Sales revenue – Cost of goods sold = $10,000 - $6,200 = $3,800

b-ii. Calculate the gross profit under last in first out (LIFO) inventory method

Ending inventory = $5,000

Cost of goods sold = Cost of goods available for sale - Ending inventory = $12,000 - $5,000 = $7,000

Gross profit = Sales revenue – Cost of goods sold = $10,000 - $7,000 = $3,000

b-iii. Calculate the gross profit under Weighted Average inventory method

Ending inventory = $5,400

Cost of goods sold = Cost of goods available for sale - Ending inventory = $12,000 - $5,400 = $6,600

Gross profit = Sales revenue – Cost of goods sold = $10,000 - $6,600 = $3,400

how can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?​

Answers

Answer:

as agriculture is in the primary sector an increase in the employment of that sector can indicate its in the primary sector .

Explanation:

industrialisation is the increase in the importance of the secondary sector of industry.

Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $400 per month plus $82 per job plus $10 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in September to be 20 jobs and 144 meals, but the actual activity was 16 jobs and 141 meals. The actual cost for catering supplies in September was $3,100. The catering supplies in the planning budget for September would be closest to:

Answers

Answer:

Standard cost Supplies= $3,480

Explanation:

Giving the following information:

The cost formula for catering supplies is $400 per month plus $82 per job plus $10 per meal.

The company expected its activity in September to be 20 jobs and 144 meals.

To calculate the total budgeted cost, we need to multiply the standard cost for the planned production:

Standard cost Supplies= 400 + (82*20) + (10*144)

Standard cost Supplies= $3,480

Knowledge Check 01 The standard quantity per unit defines the ________. multiple choice price that should be paid for each unit of direct materials. total cost of direct materials that should be used for each unit of finished product. amount of direct materials that should be used for each unit of finished product including an allowance for normal inefficiencies, such as scrap and spoilage. amount of direct labor-hours that should be used to produce one unit of finished goods.

Answers

Answer:

amount of direct materials that should be used for each unit of finished product including an allowance for normal inefficiencies, such as scrap and spoilage.

Explanation:

Standard quantity per unit is defined as materials that the manufacturer needs to complete a unit of a product. It also allows for inefficiencies such as spoilage and scrap.

It is used by managers to reduce wastage that exists during production by allocation of only the required amount of direct materials in the production process.

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.

Answers

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

g An airline is considering a project of replacement and upgrading of machinery that would improve efficiency. The new machinery costs $400 today and is expected to last for 5 years with no salvage value. Straight line depreciation will be used. Project inflows connected with the new machinery will begin in one year and are expected to be $200 each year for 5 consecutive years and project outflows will also begin in one year and are expected to be $90 each year for 5 consecutive years. The corporate tax rate is 32% and the required rate of return is 9%. Calculate the project's net present value.

Answers

Answer:

$-9.48

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow = (revenue - cost - depreciation) (1 - tax rate) + depreciation

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

(400 - 0) / 5 = 80

(200 - 90- 80) x (1 - 0.32)  + 80 = $100.40

Cash flow in year 0 = $-400

Cash flow each year from year 1 to 5 = $100.40

I = 9%

NPV = $-9.48

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

The law of diminishing marginal returns: a. states that each and every increase in the amount of the variable factor employed in the production process will yield diminishing marginal returns b. is a mathematical theorem that can be logically proved or disproved c. is the rate at which one input may be substituted for another input in the production process d. none of the above

Answers

Answer:

d. none of the above

Explanation:

In Economics, The law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.

Also, the marginal utility of goods and services is the additional satisfaction that a consumer derives from consuming or buying an additional unit of a good or service.

For example, buying a chocolate bar and eating it may satisfy your cravings but eating another one wouldn't give you as much satisfaction as the first due to diminishing marginal utility.

Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer. Determine Ken’s gross income and complete page 1 of Form 1040 for Ken.
a. Ken won $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal).
b. Ken sold 1,000 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share.
c. Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $210,000.
d. Ken received $13,000 in disability benefits for the year. He purchased the disability insurance policy last year.
e. Ken resided in Ireland from July 1, 2011, through June 30, 2012, visiting relatives. While he was there he earned $35,000 working in his cousin’s pub. He was paid $17,000 for his services in 2011 and $18,000 for his services in 2012. Assume Ken elects to use the foreign-earned income exclusion to the extent he is eligible.
f. Ken decided to go back to school to learn about European history. He received a $500 cash scholarship to attend. He used $300 to pay for his books and tuition, and he applied the rest toward his new car payment.
g. Ken’s son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken. Ken received the check on December 30 in the amount of $1,100.
h. Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken claimed $5,850 in itemized deductions last year (the standard deduction for a single filer was 5,800).
i. Ken received $30,000 of interest from corporate bonds and money market accounts.

Answers

Answer:

bru is ken that ugly?

Explanation:

poor loner he must have been so ugly

Teozocior.01.010
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Which of the following is true of downward communication?
a. Recording a project's results and accomplishments involves downward communication.
..
O b. The process of creating progress reports is an example of downward communication.
5.
c. Problem solving and clarifications in organizations involve downward communication.
7.
d. Orientation to a company's rules and practices is an element of downward communication.
8.
о
9.
10.
C
11.

Answers

Answer:

When the federal government spends more money than it receives in taxes in a ... spending over time in nominal dollars is misleading because it does not take ... defense spending as a share of GDP has generally declined since the 1960s, ... Healthcare expenditures include both payments for senior citizens (Medicare), ...

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 ? ? ?

Answers

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

Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 41,796 games next year (an increase of 9,396 games, or 29%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year

Answers

Question Completion:

Magic Realm, Inc., has developed a new fantasy board game. The company sold 32,400 games last year at a selling price of $67 per game. Fixed expenses associated with the game total $567,000 per year, and variable expenses are $47 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 41,796 games next year (an increase of 9,396 games, or 29%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year?

Answer:

Magic Realm, Inc.

1-a. Contribution-Format Income Statement

For the last year ended December 31

Sales revenue          $2,170,000 (32,400 * $67)

Variable costs            1,522,800 (32,400 * $47)

Contribution               $647,200 (32,400 * $20)

Fixed expenses           567,000

Net operating income $80,200

1-b. Degree of Operating Leverage = Contribution/Net operating income

= 8.07

The expected percentage increase in net operating income for next year

= 235.3%

Explanation:

a) Data and Calculations:

Last year's figures:

Sales = 32,400 games

Selling price per game = $67

Variable cost per game = $47

Fixed expenses = $567,000 per year

1-a. Contribution-Format Income Statement

For the last year ended December 31

Sales revenue          $2,170,000 (32,400 * $67)

Variable costs            1,522,800 (32,400 * $47)

Contribution               $647,200 (32,400 * $20)

Fixed expenses           567,000

Net operating income $80,200

1-b. Degree of Operating Leverage = Contribution/Net operating income

= $647,200/$80,200 = 8.07

2. Next year:

Sales = 41,796 games

Sales revenue =         $2,800,332 (41,796 * $67)

Variable cost =               1,964,412  (41,796 * $47)

Contribution =              $835,920

Fixed costs =                  567,000

Net operating income $268,920

The expected percentage increase in net operating income for next year

Increase in net operating income = $188,720 ($268,920 - $80,200)

= $188,720/$80,200 * 100 = 235.3%

Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below:
Overhead costs:
Equipment depreciation $ 47,000
Supervisory expense $ 6,000
Distribution of Resource Consumption Across Activity Cost Pools:
Activity Cost Pools
Machining Order Filling Other
Equipment depreciation 0.60 0.10 0.30
Supervisory expense 0.60 0.20 0.20
In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:
Activity:
MHs (Machining) Orders (Order Filling)
Product C9 6,900 200
Product U0 3,100 800
Total 10,000 1,000
What is the overhead cost assigned to Product C9 under activity-based costing?

Answers

Answer:

$23,122

Explanation:

Calculation to determine the overhead cost assigned to Product C9 under activity-based costing

First step is to calculate the cost allocation to machining activity and order filling

MACHINING

Equipment depreciation (0.60 : 0.10 : 0.30)

Machining=$47,000 x 0.60 = $28,200

Supervisory expense (0.60 : 0.20 : 0.20) Machining=$6,000 x 0.60 = $3600

Total $31,800

($28,200+$3,600)

ORDER FILLING

Equipment depreciation (0.60 : 0.10 : 0.30)

Order filling=$47,000 x 0.10 = $4,700

Supervisory expense (0.60 : 0.20 : 0.20)

Order filling=$6000 x 0.20 = $1,200

Total $5,900

($4,700+$1,200)

Second step is to calculate the Assign overhead costs to products:

Assign overhead costs to products:

Machining= $31,800 ÷ 10,000 MHs

Machining= $3.18 per MHOrder

Order Filling=$5,900 ÷ 1,000 orders

Order Filling = $5.90 per order

Now let calculate the Overhead cost for Product C9

Machining= $3.18 per MH × 6,900

Machining=$21,942

Order Filling= $5.90 per order × 200 Orders Order Filling=$1,180

TOTAL $23,122

($21,942+$1,180)

Therefore the overhead cost assigned to Product C9 under activity-based costing is $23,122

Understanding how shirking decreases team output
Eleanor sells bottled water from a small stand by the beach. On the last day of summer vacation, many people are on the beach, and Eleanor realizes that she can make a lot more money this day if she hires someone to walk up and down the beach selling water. She finds a college student named Darnell and makes him the following offer: They'll each sell water all day and split their earnings (revenue minus the cost of water) equally at the end of the day. Eleanor knows that if they both work hard, Darnell will earn $110 on the beach and Eleanor will earn $240 at her stand, so they will each take home half of their total revenue: $110+$2402=$175$110+$2402=$175. If Darnell shirks, he'll generate only $60 in earnings. Eleanor does not know that Darnell estimates his personal cost (or disutility) of working hard as opposed to shirking at $30.
Once out of Eleanor's sight, Darnell faces a dilemma: work hard (put in full effort) or shirk (put in low effort).
In terms of Darnell's total utility, it is worse for him to_____ .
Taking into account the loss in utility that working hard brings to Darnell, Eleanor and Darnell together _____ better off if Darnell shirks instead of working hard.
Eleanor knows Darnell will shirk if unsupervised. She considers hiring her good friend Carrie to keep an eye on Darnell. The most Eleanor should be willing to pay Carrie to supervise Darnell, assuming supervision is sufficient to encourage Darnell to work hard, is _______ .
It turns out that Eleanor's friend Carrue is unavilable that day, so Eleanor cannot find a reliable person to watch Darnell. Which of the following arrangements will ensure that Darnell works hard without making Eleanor any worse off than she is when Darnell shirks?
A. Allow Darnell to keep 75% of the revenue from the bottles of water he sells instead of 50%
B. Allow Darnell to keep 57% of the revenue from the bottles of water he sells instead of 50%
C. Pay Darnell $70, regardless of how many bottles of water he sells
D. Make Darnell promise to work hard

Answers

Answer:

Shirk

are not better of

$30

A. Allow Darnell to keep 75% of the revenue from the bottles of water he sells instead of 50%

Explanation:

Darnell and Eleanor both can work together and their combined total earning will be high. Darnell estimates that his shirking is cost at $30 then Eleanor can pay to supervisor a maximum of $30 for the supervision service for Darnell. The best choice is to hire Carrue as a supervisor for Darnell. If Carrue is not available someday then Darnell can be motivated by allowing him to keep 75% of the revenue generated from him.

Following are data for BioBeans and GreenKale, which sell organic produce and are of similar size. BioBeans GreenKale Average total assets $ 215,000 $ 166,500 Net sales 105,000 33,300 Net income 15,050 3,900 Required: 1a. Compute the profit margin for both companies. 1b. Compute the return on total assets for both companies. 2. Based on analysis of these two measures, which company is the preferred investment

Answers

Answer:

1a. We have:

BioBeans' profit margin = 14.33%

GreenKale's profit margin = 11.71%

1b. We have:

BioBeans' return on total assets = 7%

GreenKale's return on total assets = 2.34%

2. BioBeans is the preferred investment.

Explanation:

1a. Compute the profit margin for both companies.

Profit margin = Net income / Net sales ........... (1)

Using equation (1), we have:

BioBeans' profit margin = $15,050 / $105,000 = 0.1433, or 14.33%

GreenKale's profit margin = $3,900 / $33,300 = 0.1171, or 11.71%

1b. Compute the return on total assets for both companies.

Return on total assets = Net income / Average total assets ............ (2)

Using equation (1), we have:

BioBeans' return on total assets = $15,050 / $215,000 = 0.07, or 7%

GreenKale's return on total assets = $3,900 / $166,500 = 0.0234, or 2.34%

2. Based on analysis of these two measures, which company is the preferred investment?

Since the profit margin and return on total assets of BioBeans are greater than the profit margin and return on total assets of GreenKale, this indicates that BioBeans is the preferred investment.

if your credit card is $10,275 and you pay the full balance before the bill is due, how much will you pay in interest

Answers

$0 hope that helps!!!!!

Answer:

you do not pay interest on any money that does not carry over till the next month. if your balance is zero theres no interest

Explanation:

you only pay on a balance the % per dollar to the card . so if the card charges 10% on 100$ if your balance is 100$ you will owe 110$ on your next billing cycle

During its first year of operations, Mack's Plumbing Supply Co. had sales of $580,000, wrote off $9,300 of accounts as uncollectible using the direct write-off method, and reported net income of $63,800. Determine what the net income would have been if the allowance method had been used, and the company estimated that 2.5% of sales would be uncollectible. $ fill in the blank 1

Answers

Answer: $58600

Explanation:

The net income that would have been if the allowance method had been used, and the company estimated that 2.5% of sales would be uncollectible will be calculated thus:

= Reported net income + Uncollectible - (Sales × % Uncollectible)

= $63800 + $9300 - ($580000 × 2.5%)

= $63800 + $9300 - $14500

= $58600

Brief Exercise 9-10 Cullumber Company sells equipment on September 30, 2019, for $16,000 cash. The equipment originally cost $71,000 and as of January 1, 2019, had accumulated depreciation of $41,000. Depreciation for the first 9 months of 2019 is $4,750. Prepare the journal entries to (a) update depreciation to September 30, 2019, and (b) record the sale of the equipment.

Answers

Answer:

A. Dr Depreciation Expense $4,750

Cr Accumulated Depreciation $4,750

B. Dr Accumulated Depreciation $45,750

Dr Cash $16,000

Dr Loss on Disposal of Plant Assets 9,250

Cr Equipment $71,000

Explanation:

A. Preparation of the journal entries to update depreciation to September 30, 2019

Dr Depreciation Expense $4,750

Cr Accumulated Depreciation $4,750

(Being to update depreciation )

B.Preparation of the journal entries to record the sale of the equipment

Dr Accumulated Depreciation $45,750

($41,000+$4,750)

Dr Cash $16,000

Dr Loss on Disposal of Plant Assets 9,250

($71,000-45,750-16,000)

Cr Equipment $71,000

(Being to record the sale of the equipment)

A market will be efficient even if there is imperfect information as long as the market is competitive.
a. True
b. False

Answers

true najsjsjsjsjsjjjsjs

A wedding party hired a sole proprietorship to cater their wedding, and the sole proprietorship had an employee handle the entire job. If the entire wedding party gets food poisoning, the principal is liable. The employee of the sole proprietorship is also liable because he handled the entire job.

pls dont spam me need halp

Answers

Answer:

yes because he was put in charge of the whole operation

They could increase Marco's motivation by:
A- Giving Marco the job title "Director of Strength and Conditioning"
B- Confirming that if more clients sign up with Marco, he'll get a bonus at the end of the year
C- Telling Marco he has more expertise than any other trainer at the gym
D- Reviewing fitness data on Marco's clients that show his work has been improving their health

Answers

Answer:

B

Explanation:

moneys always good motivation

20 POINTS AND BRAINLIEST. Mike wants to pursue a job in energy. He goes to college to become
an electrician but before he can have his own license, he must work
for a licensed electrician for two years to gain experience. This is an
example of a(n)

internship

apprenticeship

bachelor's degree program

doctorate program

Answers

Answer:

appreticeship

Explanation:

Have a good day! I hope this helps. Please let me know if I get this correct :)

After analyzing the scenario, this is an example of an apprenticeship. Thus, option B is the correct option.

What is apprenticeship?

A new generation of practitioners of a trade or profession are trained through the apprenticeship system, which combines classroom instruction and reading with on-the-job training. Apprenticeships can also help professionals get a license to work in a regulated field. The majority of their training is completed while they are employed by an employer that assists the apprentices in learning their trade or profession in exchange for their continuous labor for a certain length of time once they have attained demonstrable competence.

The duration of apprenticeships varies greatly between industries, occupations, roles, and cultures. The "journeyman" or professional certification level of competence may occasionally be attained by those who successfully complete an apprenticeship.

Learn more about apprenticeship here:

https://brainly.com/question/779411

#SPJ2

You are a struggling song writer. You hear a group on the radio singing a song
that you wrote with a friend who is now managing the band. You want to
make sure you are not cheated out of your creative work. You have tried to
talk to the band but they won't respond. What writ would effectively stop the
band from earning income on that song until the problem is remedied?
A. Punitive damages
B. A restraining order
C. A permanent injunction
D. A mandatory injunction

Answers

Answer:

B. A retraining order i guess

Watmore Ltd. purchased, for cash, factory equipment with an invoice price of $80,000. Other costs incurred were freight costs, $1,600; installation, wiring and foundation, $13,500; material and labour costs in testing equipment, $500; oil lubricants and supplies to be used while operating the equipment, $750; fire insurance policy covering equipment, $1,400. The equipment is estimated to have a $10,000 residual value at the end of its 8-year useful service life.
Instructions
(a) Calculate the cost of the equipment.
(b) Record the purchase of the equipment.
(c) Calculate the annual depreciation expense, assuming the straight-line method of depreciation is used.

Answers

Answer:

a. The cost of the equipment = Invoice price + Freight cost + Installation wiring and foundation cost + Material and labor cost in testing equipment

The cost of the equipment = $80000 + $1600 + $13500 + $500

The cost of the equipment = $95,600

b. Journal Entry to record the purchase of the equipment

Equipment $95,600 - Debit

To Cash $95,600 - Credit

c. Annual depreciation expense =(Cost of equipment - Salvage value) / Useful life

Annual depreciation expense = ($95,600 - $10,000) / 8

Annual depreciation expense = $85,600 / 8

Annual depreciation expense = $10,700

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

Answers

1. Leadership skills
2. Ability to handle money
3. Ability to operate equipment safety
4. Organizational

Answer:

What ghazaryanelen101 Said ↑↑↑↑

Explanation:

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

Answers

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.

A small factory is considering replacing its existing coining press with a newer, more efficient one. The existing press was purchased three years ago at a cost of $200000, and it is being depreciated according to a 7-year MACRS depreciation schedule. The factoryâs CFO estimates that the existing press has 6 years of useful life remaining. The purchase price for the new press is $280000. The installation of the new press would cost an additional $20000, and this installation cost would be added to the depreciable base. The new press (if purchased) would be depreciated using the 7-year MACRS depreciation schedule although, as noted below, it would be retired/sold after 6 years. Interest expenses associated with the purchase of the new press are estimated to be roughly $4000 per year for the next 6 years.

The appeal of the new press is that it is estimated to produce a pre-tax operating cost savings of $81000 per year for the next 6 years. Also, if the new press is purchased, the old press can be sold for $30000 today. The CFO believes that the new press would be sold for $45000 at the end of its 6-year useful life. Assume that NWC would not be affected. The company has an average tax rate of 29% and a marginal tax rate of 34%. The cost of capital (i.e., the discount rate) for this project is 8.5%.

Required:
Develop the incremental cash flows for this replacement decision and use them to calculate NPV and IRR. Next, make a conclusion about whether or not the existing coining press should be replaced at this time.

Answers

Answer:

1. Incremental Cash Flows:

                                                       Cash Flows    Total PV of annual

                                                                                   Cash Flows

After-tax operating savings               $57,510          $261,877

Sale proceeds from old press            30,000             30,000

Sale proceeds from new press          45,000             27,583

Total incremental cash inflows       $132,510          $319,460

Cost of new press                        $280,000        $280,000

Installation cost of new press          20,000             20,000

Interest expense (associated)            4,000               18,214

Total incremental cash outflows $340,000          $318,214

2. NPV                                                                 $1,246 ($319,460 -$318,214)

IRR = the cost of capital that will cause the NPV to be zero.  Since it is $1,246, to find the rate, that makes it zero, we do the following calculations:

$1,246/$318,214 * 100 = 0.4%

Cost of capital = 8.5%

3. IRR = 8.5 - 0.4 = 8.1%

4. Conclusion: The existing press should be replaced at this time.

Explanation:

a) Data and Calculations:

Cost of old press = $200,000

Estimated useful life remaining = 6 years

Cost of new press = $280,000

Installation cost =        $20,000

Total cost of new press $300,000

Interest expenses per year for the new press = $4,000

Cost Savings from new press:

Pre-tax operating cost savings = $81,000 per year

After-tax savings = $57,510 ($81,000 * (1 - 29%))

Sales proceeds from old press = $30,000 today

Sale proceeds from new press = $45,000 (at the end of its 6-year life)

Average tax rate = 29%

Marginal tax rate = 34%

Cost of capital = 8.5%

What do we call the value of the next best alternative given up when a choice is made?

A opportunity cost

B sunk cost

C needs

D scarcity​

Answers

Answer:

A) Opportunity Cost

Explanation:

Using the attached sheet (or a spreadsheet if you prefer), prepare a classified balance sheet for the ABC, LLC for the year ended December 31, 2020 using the following data.
Accounts Payable 4,000
Accounts Receivable 3,000
Cash 20,000
Common Stock 1,000
Land 25,000
Notes Payable (due in 5 years) 10,000
Paid in Capital in Excess of Par - Common Stock 17,000
Paid in Capital in Excess of Par - Preferred Stock 2,000
Preferred Stock 8,000
Retained Earnings 7,000
Salaries Payable 5,000
Treasury Stock 6,000

Answers

Answer:

ABC, LLC

Classified balance sheet as at December 31, 2020

                                                                                              $

ASSETS

Non - Current Assets

Land                                                                                 25,000

Total Non - Current Assets                                             25,000

Current Assets

Accounts Receivable                                                        3,000

Cash                                                                                 20,000

Total Current Assets                                                       23,000

TOTAL ASSETS                                                               48,000

EQUITY AND LIABILITIES

LIABILITIES

Non - Current Liabilities

Notes Payable (due in 5 years)                                      10,000

Total Non - Current Liabilities                                        10,000

Current Liabilities

Accounts Payable                                                            4,000

Salaries Payable                                                              5,000

Total Current Liabilities                                                   9,000

TOTAL LIABILITIES                                                         19000

EQUITY

Common Stock                                                                1,000

Preferred Stock                                                               8,000

Treasury Stock                                                                6,000

Retained Earnings                                                          7,000

Paid in Capital in Excess of Par - Common Stock       17,000

Paid in Capital in Excess of Par - Preferred Stock       2,000

TOTAL EQUITY                                                              41,000

TOTAL EQUITY AND LIABILITIES                                60,000  

Explanation:

A classified balance sheet shows the Assets, Liability and Equity Balances in their respective categories as shown above.

Bismark Inc, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year:
Activity Cost Pool Activity Cost Activity Cost Driver
Machine Setup $600,000 15,000 setup hours
Material handling 90,000 3,000 tons of materials
Machine operation 420,000 12,000 machine hours
The following data are for the production of single batches of two products, Camshafts and Swing Drives during the month of August:
Camshafts Swing Drives
Units produced 1,500 900
Machine hours 4 5
Direct labor hours 300 500
Direct labor cost $7,000 $12,000
Direct materials cost $40,000 $30,000
Tons of materials 10 7
Setup hours 5 8
Determine the unit costs of Camshafts and Swing Drives using ABC. Round answers to the nearest cent.
Camshafts $ _____
Swing Drives $_____

Answers

Answer:

Results are below.

Explanation:

First, we need to calculate the activities rates:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Machine Setup= 600,000 / 15,000= $40 per setup hour

Material handling= 90,000 / 3,000= $30 per ton of material

Machine operation= 420,000 / 12,000= $35 per machine hour

Now, we can allocate costs to each product:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Camshafts:

Machine Setup= 40*5= $200

Material handling= 30*10= $300

Machine operation= 35*4= $140

Total allocated costs= $640

Swing Drives:

Machine Setup= 40*8= $320

Material handling= 30*7= $210

Machine operation= 35*5= $175

Total allocated costs= $705

Finally, the unitary cost:

Camshafts:

Total cost= 40,000 + 7,000 + 640= $47,640

Unitary cost= 47,640 / 1,500= $31.76

Swing Drives:

Total cost= 30,000 + 12,000 + 705= $42,705

Unitary cost= 42,705 / 900= $47.45

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