Answer:
Product A = 1.50
Product B = 2
Product C = 1.50
Explanation:
Contribution margin = (price - variable cost) / total number of hours
Product A = ($9 - $6) / 2 = 1.50
Product B = ($14 - $12) / 1 = 2
Product C = ($18 - $15) / 2 = 1.50
Product B would be produced because its contribution margin is the highest
Which is a typical job role/career in business information management?
A.
researcher
B.
speaker
C.
writer
D.
project manager
E.
accounting manager
Match the title of the employment-related law to its description. Each label is used only once.
a. This law protects the workers from physical dangers while performing their jobs.
b. This law states that pensions need to be funded properly and directs that employees be kept informed about their pensions.
c. This law placed limits on child labor and set a minimum wage in the United States.
d. This law gives workers the right to take up to 12 weeks of unpaid leave per year for family reasons.
1. Pension Protection Act of 2006
2. Family and Medical Leave Act of 1993
3. Occupational Health and Safety Act of 1970
4. Fair Labor Standards Act of 1938
Answer:
a. This law protects the workers from physical dangers while performing their jobs. = Occupational Health and Safety Act of 1970
b. This law states that pensions need to be funded properly and directs that employees be kept informed about their pensions. = Pension Protection Act of 2006.
c. This law placed limits on child labor and set a minimum wage in the United States. = Fair Labor Standards Act of 1938.
d. This law gives workers the right to take up to 12 weeks of unpaid leave per year for family reasons. = Family and Medical Leave Act of 1993.
Jeff, a 52% owner of an S corporation, has a stock basis of zero at the beginning of the year. Jeff's basis in a $10,000 loan made to the corporation and evidenced by a corporate note has been reduced to zero by pass-through losses. During the year, his net share of the corporate taxable income is $11,000. At the end of the year, Jeff receives a $15,000 cash distribution.
Discuss the tax effects of the distribution.
Answer:
See below
Explanation:
In order to restore any reduction in loan basis, only the net increase is applied in line with section 1367(b)(Adjustment to basis of stocks of shareholders).
What this means is that there is no net increase regarding the information given above I.e ($11,000 - $15,000).
We can safely conclude that there is $11,000 tax free income since the stock basis has been increased by $11,000. There is also a $4,000 capital gain.
You have $100 you have $100 to invest. If you can earn 12% interest, about how long does it take for your $100 investment to grow to $200? Suppose the interest rate is just half that, at 6%. At half the interest rate, does it take twice as long to double your money? Why or why not? How long does it take
Answer:
8.33333 years ;
Yes, the time doubles.
Explanation:
Investment amount = principal = $100
Interest rate, r = 12%
Time taken for investment to grow to $200
Using the simple interest formula :
A = P(1 + rt) ; t = time taken ; A = final amount = $200
200 = 100(1 + 0.12t)
200 = 100 + 12t
200 - 100 = 12t
100 = 12t
t = 100 / 12
t = 8.333 years
Time taken, if rate, r = 6%
200 = 100(1 + 0.06t)
200 = 100 + 6t
200 - 100 = 6t
100 = 6t
t = 100 / 6
t = 16.6666 years
Juan's investment portfolio was valued at $125,640 at the beginning of the year. during the year, juan received $603 in interest income and $298 in dividend income. juan also sold shares of stock and realized $1,459 in capital gains. juan's portfolio is valued at $142,608 at the end of the year. all income and realized gains were reinvested. no funds were contributed or withdrawn during the year. what is the amount of income juan must declare this year for income tax purposes?
Answer:
$2,360
Explanation:
Calculation to determine the amount of income juan must declare this year for income tax purposes
Using this formula
Income tax =Interest Income+Dividend Income+Capital gain
Let plug in the formula
Income tax=$603+$298+$1,459
Income tax=$2,360
Therefore the amount of income juan must declare this year for income tax purposes is $2,360
Net present value LO P3
A new operating system for an existing machine is expected to cost $820,000 and have a useful life of six years. The system yields an incremental after-tax income of $240,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $100,000.
A machine costs $560,000, has a $56,000 salvage value, is expected to last eight years, and will generate an after-tax income of $150,000 per year after straight-line depreciation.
Assume the company requires a 12% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
a. A new operating system for an existing machine is expected to cost $820,000 and have a useful life of six years. The system yields an incremental after-tax income of $240,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $100,000. (Round your answers to the nearest whole dollar.)
b. A machine costs $560,000, has a $56,000 salvage value, is expected to last eight years, and will generate an after-tax income of $150,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.)
Answer:
a. initial outlay = -$820,000
net cash flows years 1 - 5 = $240,000
net cash flow year 6 = $340,000
discount rate = 12%
using a financial calculator:
NPV = $217,400.87
IRR = 20.55%
b. initial outlay = -$560,000
net cash flows years 1 - 7 = $150,000
net cash flow year 8 = $206,000
discount rate = 12%
using a financial calculator:
NPV = $207,763.43
IRR = 21.65%
Brushy Mountain Mining Company's ore reserves are being depleted, so its sales are falling. Also, its pit is getting deeper each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 6% per year. What is the value of Brushy Mountain's stock (in dollars) if the company is expected to pay $4.40/share in dividend at t
The question is incomplete. The complete Question is,
Brushy Mountain Mining Company's coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 4% per year. If D0 = $2 and rs = 17%, what is the estimated value of Brushy Mountain's stock?
Answer:
P0 = $9.1428 rounded off to 9.14
This answer is for the question above. Change the values and use the same formula if the values differ
Explanation:
The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 * (1+g) is the dividend expected in Year 1 or next year
g is the constant growth rate in dividends
r is the discount rate or required rate of return
P0 = 2 * (1-0.04) / (0.17 + 0.04)
P0 = $9.1428 rounded off to 9.14
The Deer Valley Farm (DVF) produces a natural organic fertilizer, which it sells mostly to gardeners and homeowners. The annual demand for fertilizer is 220,000 pounds. The farm is able to produce 305,000 pounds annually. The cost to transport the fertilizer to from the plant to the farm is $620 per load. The DVF sells the fertilizer in containers with 40 pounds of fertilizer. The annual carrying cost is 0.12 per pound.
a. Compute the optimum load size, the maximum fertilizer level at the farm, and the total minimum cost.
b. If the farm can increase the production capacity to 360,000 pounds per year, will it reduce total inventory costs?
Answer:
The Deer Valley Farm (DVF)
a. Optimum load size = 7,625 containers
Maximum fertilizer level at the farm = 5,500 containers
Total minimum cost = $189,110,200
b. No. Total inventory costs will increase.
Explanation:
a) Data and Calculations:
Annual demand for fertilizer = 220,000 pounds
Annual production units = 305,000 pounds
Inventory = 85,000 pounds
Cost to transport the fertilizer to and from the plant to the farm = $620
Each container holds = 40 pounds
Annual carrying cost per pound = $0.12
Optimum load size = 305,000/40 = 7,625 containers
Maximum fertilizer level at the farm = 5,500 containers (220,000/40)
Total minimum cost = $ ($620 * 305,000) + ($0.12 * 85,000)
= $189,110,200 ($189,100,000 + 10,200)
Den-Tex Company is evaluating a proposal to replace its HID (high intensity discharge) lighting with LED (light emitting diode) lighting throughout its warehouse. LED lighting consumes less power and lasts longer than HID lighting for similar performance. The following information was developed: HID watt hour consumption per fixture 500 watts per hr. LED watt hour consumption per fixture 300 watts per hr. Number of fixtures 700 Lifetime investment cost (in present value terms) to replace each HID fixture with LED $500 Operating hours per day 10 Operating days per year 300 Metered utility rate per kilowatt-hour (kwh)* $0.11
*Note: A kilowatt-hour is equal to 1,000 watts per hour.
a. Determine the investment cost for replacing the 700 fixtures.
$?
b. Determine the annual utility cost savings from employing the new energy solution.
$?
c. Evaluate the proposal using net present value, assuming a 15-year life and 8% minimum rate of return. (Click here to view Present Value of Ordinary Annuity.)
$?
Answer:
a. Investment cost of replacing one fixture = $500
Number of fixtures = 700
Investment cost of replacing 700 fixtures = $500 * 700
Investment cost of replacing 700 fixtures = $350,000
b. Total Hours annually = Operating hours per day 8 Operating days per year = 10 * 300 = 3000 hours
Utility cost per kilowatt hour = $0.11
Savings in consumption per hour per fixture = 500 watts - 300 watts = 0.2 kilowatt per hour
Annual Savings in utility cost = Savings in consumption per hour * Total Hours * Utility cost * Number of fixtures
Annual Savings in utility cost = 0.2 * 3000 * 0.11 * 700
Annual Savings in utility cost = $46,200
c. Net present Value = PV of Annual Savings - Initial Investment
When Annual Savings = $46,200, Initial Investment = $350,000, Cumulative discounting factor of 8% for 15 years = 8.5595
Net present Value = ($46,200 * 8.5595) - $350,000
Net present Value = $395,448.90 - $350,000
Net present Value = $45,448.90
Which of these investments may be long term? Choose four answers.
savings accounts
mutual funds
bonds
retirement funds
commodities
These long-term investments are the asset size of company balance sheets i.e shown by a company's investments it including stocks, bonds, and real estate these are long-term as they are kept for one than one year.
The long-term investment includes mutual funds, bonds, retirement funds, commodities. These are investments that are made for the long term periods and may be for long-term goals of the individual or the organization.
Thus the options B, C, D, and E are correct.
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The investments may be long term is bonds and retirement funds.
What is long term investment?A long-term investment is an investment owned by an individual or company for more than three year.
This could be a company or an individual asset such as real estate and bonds that takes a long time to mature because they do not generate income immediately.
Therefore, The investments may be long term is bonds and retirement funds
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Garcia Co. sells snowboards. Each snowboard requires direct materials of $119, direct labor of $49, and variable overhead of $64. The company expects fixed overhead costs of $673,000 and fixed selling and administrative costs of $160,000 for the next year. It expects to produce and sell 11,900 snowboards in the next year. What will be the selling price per unit if Garcia uses a markup of 15% of total cost
Answer:
$70 per units
Explanation:
Calculation to determine What will be the selling price per unit if Garcia uses a markup of 15% of total cost
First step is to calculate total cost per unit.
Using this formula
Total Cost per unit = Unit Direct materials cost + Unit Direct labor costs + Unit Variable Costs + Unit Fixed Costs
Let plug in the formula
Total Cost per unit = $119 + 49 + 64 + 70
Total Cost per unit = $302
.
Second step is to calculate the Selling Price Per Unit
Selling Price Per Unit = $302 +( 15%*$302)
Selling Price Per Unit = 302 + 45.30
Selling Price Per Unit = $347.30
Third step is to calculate the Total Fixed Costs using this formula
Total Fixed Costs = fixed overhead costs + Fixed selling and administrative costs
Let plug in the formula
Total Fixed Costs=$673,000+$160,000
Total Fixed Costs= $833,000
Now let calculate the Fixed Cost per unit using this formula
Fixed Cost per unit = Total Fixed Costs / Total Units
Let plug in the formula
Fixed Cost per unit =$833,000/11,900
Fixed Cost per unit = $70 per unit
Therefore What will be the selling price per unit if Garcia uses a markup of 15% of total cost is $70 per unit
Forever Ready Company expects to operate at 85% of productive capacity during May. The total manufacturing costs for May for the production of 34,000 batteries are budgeted as follows:
Direct materials $330,600
Direct labor 121,600
Variable factory overhead 34,000
Fixed factory overhead 68,000
Total manufacturing costs $554,200
The company has an opportunity to submit a bid for 3,000 batteries to be delivered by May 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during May or increase the selling or administrative expenses.
What is the unit cost below which Forever Ready Company should not go in bidding on the government contract? Round your answer to two decimal places.
Answer:
$14.3
Explanation:
Calculation to determine the unit cost which Forever Ready Company should not go in bidding on the government contract.
Direct materials $9.72
($330,600/34,000)
Direct labor $3.58
($121,600/34,000)
Variable factory overhead $1
($34,000/34,000)
Total per unit cost $14.3
($9.72 + $3.58 + $1)
Therefore, the unit cost which Forever Ready Company should not go in bidding on the government contracts is $14.3
You do not start saving money until age 46. On your 46th birthday you dutifully invest $10,000 each year until you finish your deposits when you reach the age of 65 (you make the last deposit on your 65th birthday). The annual interest rate is 8% that you earn on your deposits. Your brother starts saving $10,000 a year on his 36th birthday but stops making deposits after 10 years. He then withdraws the compounded sum when he reaches age 65. How much more money will your brother have than you at age 65?
Answer:
$217,600
Explanation:
The computation of the more money is shown below:
As we know that
The Future value of the annuity is
= P × { (1+r)^n - 1} ÷ r
= $10,000 × (1+.08)^20 - 1) ÷ 0.08
= $457,619.64
For 36 years to 46 years,
FV = $10,000 × (1+.08)^10 - 1) ÷ 0.08
= $144,865.62
Now
FV = PV(1+r)^n
= $144,865.62× (1+.08)^20
= $675,212.47
Now the more amount would be
= $675,212.47 - $457,619.64
= $217592.83
= $217,600
a vacuum manufacturer has prepared the following cost data for manufacturing one of its engine components based on the annual production of 50,000 units
Making the engine in-house would be more practical for the corporation than purchasing one from the market. To boost output while maintaining product quality.
What is the cost per unit?
The phrase “cost per unit” refers to the lowest price a corporation must sell a product for in order to break even.
Fixed factory overhead (24×150%) Fixed factory (25% Of 36)
For the purpose of making decisions, this overhead shall not be taken into account as 75% of the fixed overhead cost.
The unit can be purchased from the market for $60. Accordingly, the corporation should produce the engine rather than purchase it from the market because it is more practical for the business.
Company maintains the brand name, increase production and maintain quality of product.
Solving data attach on file.
Hence, the significance of the manufacturing is aforementioned.
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challenges faced when dealing with labour issues
Answer:
A huge number of work forces of our country remain partially or wholly unemployed throughout the year or some part of the season. This has led to the problems like disguised unemployment, seasonal unemployment, general unemployment and educated unemployment.
You are in the top-management team of a growing software company. You joined last month when the company had 60 employees. The company has secured more funding from investors and is preparing to scale up to nearly 500 employees over the next 18 months. What do you think is important to keep in mind as the organization prepares to grow
Answer:
The responses to these question can be described as follows:
Explanation:
The following are a few points that I understand are important to note as the business plans for development:
Learn what you should and shouldn't do:
As an HR professional, becoming able to adequately differentiate items is extremely important. There would not be bills passed that are a hindrance to future relationship progress, but it's critical to understand what should be done and that it shouldn't be done.
Stay Focused:
It the crucial to also be focused upon on strategy which will be implemented later on, while still remembering that its organization must build or create itself. It will develop the association, all energies and initiatives should be channeled into such a single direction.
Hiring the ideal people:
If an affiliation prepares for expansion, it's indeed critical to enlist its best people for the job, as shown by the role as well as the affiliation's launch. People who see it as important and knowledgeable to affiliation should be selected.
Invest in an extraordinary team:
Once their affiliation sets out how to build, it's critical whether you engage in a nice team that operates efficiently and effectively in the relationship to achieve the affiliation's aims and outcomes.
Question 9 Dividends on CCN corporation are expected to grow at a 9% per year. Assume that the discount rate on CCN is 12% and that the expected dividend per share in one year is $0.50. CCN has just paid a dividend, so the next dividend is the $0.50 to be paid one year from now. Assume that CCN's return on equity (ROE) is 12%. What fraction of earnings must CCN be plowing back into the company
Answer: 75%
Explanation:
The fraction of earnings that CCN must be plowing back into the company goes thus:
Growth rate = 9%
Discount rate = 12%
Expected dividend per year = $0.50
Return on equity = 12%
It should be noted that:
Growth rate = plowback ratio × Return on equity
9% = plowback ratio × 12%
Therefore, plowback ratio = 9% / 12%
Plowback ratio = 75%
Therefore, fraction of earnings must CCN be plowing back into the company is 75%.
Aslam wants to create multiple worksheet containing common formatting styles for his team members. Which file extension helps him to save these worksheets?
(Templates),(Workbooks),(Files) help Aslam to create multiple worksheets with common styles.
He needs to save them with the (xlsb),(xltx),(xls),(xlsm).
Answer:
1. Excel file extensions, using XLS or XLSX, help him to save worksheets.
2. (Files) help Aslam to create multiple worksheets with common styles.
3. He needs to save them with the (xls).
Explanation:
The file extension (also called the filename extension) is the ending of a file that identifies the type of file in an operating system, for example, Microsoft Windows. The filename extension starts with a period, followed by one, two, three, or four characters, especially in Microsoft Windows. The filename extension helps the computer to open the correct program whenever one wants to use the file.
Operating income is one of the most important items reported by a company. Depending on the decision-making needs of management, operating income can be determined using absorption costing or variable costing. Select whether the following characteristics are most often associated with absorption costing or variable costing.
a. Required under generally accepted accounting principles (GAAP)
b. Often used for internal use in decision making
c. Cost of goods manufactured includes only variable manufacturing costs
d. Used in reports prepared for external users
e. Fixed factory overhead costs are not part of cost of goods manufactured
f. Both fixed and variable factory costs are included in cost of goods sold and inventory
Answer:
Determining Operating Income using Absorption Costing or Variable Costing
a. Absorption costing
b. Variable costing
c. Variable costing
d. Absorption costing
e. Variable costing
f. Absorption costing
Explanation:
Absorption costing is also regarded as full costing. An income statement prepared using absorption costing includes both fixed and variable manufacturing costs in the costs of goods sold and ending inventory. Fixed manufacturing cost is not regarded as period cost that must be expensed in the period when it is incurred as some elements of the fixed cost are carried forward to the next accounting period through the ending inventory. This is unlike variable or marginal costing, where the fixed costs are expensed in the period they are incurred.
Grant and Marvin organized a new business as a corporation in which they own equal interests. The new business generated a $65,000 operating loss for the year. Use Appendix A. Required: Assume the corporation expects to generate $500,000 of income next year and has a 21 percent tax rate. Calculate the net present value of the future tax savings associated with the current year operating loss, using a 4 percent discount rate. (Do not round intermediate computations. Round your final answer to the nearest whole dollar amount.)
Answer:
The net present value of the future tax savings associated with the current year operating loss is:
= $13,650.
Explanation:
a) Data and Calculations:
Operating loss for the current year = $65,000
Expected income next year = $500,000
Income tax rate = 21%
N (# of periods) 1
I/Y (Interest per year) 4
PMT (Periodic Payment) 0
FV (Future Value) 500000
Results
PV = $480,769.23
Total Interest $19,230.77
Tax = $480,769.23 * 21%
= $100,961.53
Tax = ($480,769.23 - 65,000) * 21%
= $415,769.23 * 21%
= $87,311.53
Tax savings = $13,650 ($100,961.53 - 87,311.53)
or $65,000 * 21%
= $13,650
The net present value of the future tax savings associated with the current year operating loss will be $13650.
Based on the information given, one has to calculate the tax for both periods, this will be:
First tax = $489769.23 × 21%
= $100961.53.
The second tax will be:
= ($480769.23 - $65000) × 21%
= $87311.53
Therefore, the tax savings will be:
= $100961.53 - $87311.53
= $13650
Therefore, the net present value of the future tax savings is $13650.
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The balance sheets for Plasma Screens Corporation, along with additional information, are provided below:
PLASMA SCREENS CORPORATION
Balance Sheets
December 31, 2021 and 2020
2021 2020
Assets
Current assets:
Cash $ 112,700 $ 131,800
Accounts receivable 81,200 96,000
Inventory 103,000 87,200
Prepaid rent 5,600 2,800
Long-term assets:
Land 520,000 520,000
Equipment 822,000 710,000
Accumulated depreciation (436,000 ) (284,000 )
Total assets $ 1,208,500 $ 1,263,800
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 107,000 $ 92,200
Interest payable 6,900 13,800
Income tax payable 9,600 5,800
Long-term liabilities:
Notes payable 115,000 230,000
Stockholders' equity:
Common stock 740,000 740,000
Retained earnings 230,000 182,000
Total liabilities and stockholders' equity $ 1,208,500 $ 1,263,800
Additional Information for 2021:
Net income is $77,000.
The company purchases $112,000 in equipment.
Depreciation expense is $152,000.
The company repays $115,000 in notes payable.
The company declares and pays a cash dividend of $29,000.
Required:
Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
Answer:
Plasma Screens Corporation
Statement of Cash Flows for the year ended December 31, 2021
Operating activities:
Net income $77,000
Add Non-cash flows:
Depreciation expense 152,000
Adjusted net operating income $229,000
Changes in working capital:
Accounts receivable 14,800
Inventory -15,800
Prepaid rent -2,800
Accounts payable 14,800
Interest payable -6,900
Income tax payable 3,800
Net operating cash flows $236,900
Investing activities:
Purchase of equipment -$112,000
Financing activities:
Repayment of Notes payable -$115,000
Dividends payment -29,000
Net cash flow from financing -$144,000
Net cash flows -$19,100
Reconciliation of cash:
Beginning Cash balance $131,800
Net cash flows -$19,100
Ending Cash balance $112,700
Explanation:
a) Data and Calculations:
PLASMA SCREENS CORPORATION
Balance Sheets
December 31, 2021 and 2020
2021 2020 Change
Assets
Current assets:
Cash $ 112,700 $131,800 -$19,100
Accounts receivable 81,200 96,000 -14,800
Inventory 103,000 87,200 +15,800
Prepaid rent 5,600 2,800 +2,800
Long-term assets:
Land 520,000 520,000 0
Equipment 822,000 710,000 +112,000
Accumulated depreciation (436,000 ) (284,000) +152,000
Total assets $ 1,208,500 $1,263,800
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 107,000 $ 92,200 +$14,800
Interest payable 6,900 13,800 -6,900
Income tax payable 9,600 5,800 +3,800
Long-term liabilities:
Notes payable 115,000 230,000 -115,000
Stockholders' equity:
Common stock 740,000 740,000 0
Retained earnings 230,000 182,000 +48,000
Total liabilities & stockholders' equity $ 1,208,500 $1,263,800
Additional Information for 2021:
Net income is $77,000.
The company purchases $112,000 in equipment.
Depreciation expense is $152,000.
The company repays $115,000 in notes payable.
The company declares and pays a cash dividend of $29,000
Portions of the financial statements for Alliance Technologies are provided below. ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2021 Net sales $ 335,000 Expenses: Cost of goods sold $ 200,000 Operating expenses 63,000 Depreciation expense 16,300 Income tax expense 23,500 Total expenses 302,800 Net income $ 32,200 ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 Decrease in accounts receivable $ 6,300 Increase in inventory 13,300 Decrease in prepaid rent 9,300 Increase in salaries payable 5,300 Decrease in accounts payable 8,300 Increase in income tax payable 21,200 Required: Prepare the operating activities section of the statement of cash flows for Alliance Technologies using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
Answer and Explanation:
The preparation of the cash flow from operating activities is presented below:
Cash flow from operating activities
Net income $32,200
Add: Decrease in accounts receivable $ 6,300
Less: Increase in inventory -$13,300
Add: Decrease in prepaid rent $9,300
Add: Increase in salaries payable $5,300
Less: Decrease in accounts payable -$8,300
Add Increase in income tax payable $21,200
Net cash flow provided by operating activities $52,800
The auditor begins selecting controls to test by _______. by understanding the entity and the business and determining the risk of material fraud or error at the financial statement level by understanding the entity and all other industries and determining the risk of material fraud or error at the financial statement level asking management which controls they would prefer the auditor to test checking the same controls as the prior year
Answer:
by understanding the entity and the business and determining the risk of material fraud or error at the financial statement level.
Explanation:
An auditor refers to an authorized individual who review, examine and verify the authenticity and accuracy of business financial records or transactions.
Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.
The main purpose of internal controls is to guarantee that loss is eliminated by ensuring that there is an accurate and reliable accounting system.
An internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency.
Hence, internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.
In order to start the selection of controls to test, an auditor has to understand the entity and the business, as well as determine the risk of material fraud or error at the financial statement level.
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
A standard unmodified opinion is an opinion where financial statements are presented free of any misinterpretation, in all material respects, in accordance with standards known as Generally Accepted Accounting Principles (GAAP) to provide a high level of assurance.
The standard unmodified opinion comprises of report title, audit report address, introduction paragraph, managements responsibility, auditor's responsibility, opinion paragraph, audit report date and signature and address of certified public accountant firm.
Additionally, an unmodified opinion on financial statements can be defined as an opinion issued by an auditor stating that there are no material misstatements and this simply implies that the, the financial statement represents a true and fair perspective of the accounting information of a business.
Ganon Co. applies overhead based on direct labor hours. They have an applied overhead of $48,000 and actual overhead of $66,500 for the month of March. In March, the total number of direct labor hours was 1,200 and the total number of machine hours was 5,910. Overhead for the year was estimated to be $690,000. How many direct labor hours were estimated for the year
Answer:cud unfriend and I have a good idea about how you are cute lol
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Explanation:
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Common size financial statements help an analyst to:
Select one:
a. Evaluate financial statements of companies within a given industry of the approximate same size.
b. Determine which companies in a similar industry are at approximately the same stage of development.
c. Compare the mix of assets, liabilities, capital, revenue, and expenses within a company over a period of time or between companies within a given industry without respect to size.
d. Ascertain the relative potential of companies of similar size in different industries.
Answer:C
Explanation:
Compare the mix of assets, liabilities, capital, revenue, and expenses within a company over a period of time or between companies within a given industry without respect to size.
Game Theory and Strategic Choices -- End of Chapter Problem You have developed a new computer operating system and are considering whether you should enter the market and compete with Microsoft. Microsoft has the option of offering their operating system for a high price or a low price. Once Microsoft selects a price, you will decide whether you want to enter the market or not enter the market. If Microsoft charges a high price and you enter, Microsoft will earn $30 million and you will earn $10 million. If Microsoft charges a high price and you do not enter, Microsoft will earn $60 million and you will earn $0. If Microsoft charges a low price and you enter, Microsoft will earn $20 million and you will lose $5 million. If Microsoft charges a low price and you do not enter, Microsoft will earn $50 million and you will earn $0. Construct a payoff table and find the Nash equilibrium if you and Microsoft both make your decisions simultaneously.
In a simultaneous move game, Microsoft will and you will:___________
Answer:
Microsoft will choses High price and you will choose to enter the market .
Explanation:
The Nash equilibrium
You
enter Don't enter
Microsoft high price ( $30 , $10 ) ( $60 , $0 )
Microsoft low price ( $20, -$5 ) ( $50, $0 )
From the Nash equilibrium the best time for you to enter the market is when Microsoft Charges a high price
While the best time for Microsoft is when it charges a high price and you do not enter the market
But considering Simultaneous Move game : Microsoft will choses High price and you will choose to enter the market .
Here is the payoff table:
Enter Don't enter
High 30, 10 60,0
Low 20, -5 50, 0
In a simultaneous move game, Microsoft will charge a high price and you will enter the market.
Game theory studies how participants in a competitive market make the best choice for themselves.
Nash equilibrium is the best outcome for participants in a competitive market where no player has an incentive to change their decisions.
If I enter the market, I can either earn $10 million or lose $5 million. If I don't enter the market, I would earn nothing. The best strategy for me is to enter the market because $5 million is greater than 0.
If Microsoft charges a high price, it can either earn $30 million or $60 million. If the firm charges a low price, it would earn either $20 or $50 million. The best strategy is to charge a high price.
A similar question was answered here: https://brainly.com/question/14987529
The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $30,000. According to an independent appraisal, the land currently is worth $72,000. Tinsley paid $14,000 in cash to complete the transaction. Required: 1. What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance
Answer:
Missing word: 2. Prepare the journal entry to record the exchange assuming the exchange has commercial substance. 3. Prepare the journal entry to record the exchange assuming the exchange lacks commercial substance.
1. Calculation of Fair value of New parcel land:
Market/fair value of old land $72,000
Add: Additional cash given $14,000
Fair value of new land $86,000
2. Date Account titles Debit Credit
Land - new $86,000
Cash $14,000
Land – old (Book value) $30,000
Gain (72000-30000) $42,000
3. Date Account titles Debit Credit
Land – new (30000+14000) $44,000
Cash $14,000
Land – old (book value) $30,000
Question 10 (5 points)
Company policy for internal control should include all of the following except for
which one?
Employees will be rotated.
Monthly bank statements should be sent to and reconciled by the same
employees who authorize payments and write checks.
At time of payment, all supporting invoices or documents will be stamped "paid."
The owner (or responsible employee) signs all checks after receiving
authorization to pay from the departments concerned.
Answer:
Monthly bank statements should be sent to and reconciled by the same employees who authorize payments and write checks
Explanation:
Suppose two types of consumers buy suits. Consumers of type A will pay $100 for a coat and $50 for pants. Consumers of type B will pay $75 for a coat and $75 for pants. The firm selling suits faces no competition and has a marginal cost of zero. The optimal commodity bundling strategy is:
Answer:
Charge $150 for a suit
Explanation:
Bundling strategy is the pricing of goods by a business despite different customers having different preferential prices they are willing to pay for the good.
In this scenario Consumers of type A will pay $100 for a coat and $50 for pants. Consumers of type B will pay $75 for a coat and $75 for pants.
The two customers are willing to pay $150 for both the jacket and the pants.
So the best decision for the company is to sell a suit made up of the jacket and pants for $150.
This way bother customers will get their preferred price.
Charging $150 for the suit is the optimal commodity bundling strategy in this scenario. Thus, Option (C) is correct.
Consumers of type A are willing to pay $100 for a coat and $50 for pants, totaling $150. By offering a bundled price of $150, the firm ensures that consumers of type A are willing to purchase the suit at their maximum willingness to pay.
Consumers of type B, who are willing to pay $75 for both the coat and pants individually, also find the bundled price of $150 attractive because it allows them to acquire both items at their maximum willingness to pay.
Thus, Option (C) i.e. charging $150 for a suit would maximize the firm's revenue by catering to both types of consumers and capturing their respective willingness to pay.
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Suppose two types of consumers buy suits. Consumers of type A will pay $100 for a coat and $50 for pants. Consumers of type B will pay $75 for a coat and $75 for pants. The firm selling suits face no competition and has a marginal cost of zero. The optimal commodity bundling strategy is: Multiple Choice
a)Charge $100 for a suit.
b)Charge $75 for a suit.
c)Charge $150 for a suit.
d)Charge $125 for a suit.
Imagine that the market supply of peaches comes from Georgia (GA) and South Carolina (SC). The supply schedule below shows the quantity of peaches supplied in each state at each price.
Individual and Market Supply of Peaches
Quantity of Peaches Supplied (pounds)
Price (dollars per pound) GA SC Market
$10 20,000 18,000 ?
8 16,000 15,000 ?
6 12,000 12,000 ?
4 8,000 9,000 ?
2 4,000 6,000 ?
Required:
a. Complete the column labeled "Market."
b. The quantity of peaches supplied to the market at a price of $6 per pound is pounds.
Answer:
a. Completion of the column labeled "Market:"
Quantity of Peaches Supplied (pounds)
Price (dollars
per pound) GA SC Market
$10 20,000 18,000 38,000
8 16,000 15,000 31,000
6 12,000 12,000 24,000
4 8,000 9,000 17,000
2 4,000 6,000 10,000
b. The quantity of peaches supplied to the market at a price of $6 per pound is 24,000 pounds.
Explanation:
a) Data and Calculations:
Individual and Market Supply of Peaches
Quantity of Peaches Supplied (pounds)
Price (dollars
per pound) GA SC Market
$10 20,000 18,000 ?
8 16,000 15,000 ?
6 12,000 12,000 ?
4 8,000 9,000 ?
2 4,000 6,000 ?
Quantity of Peaches Supplied (pounds)
Price (dollars
per pound) GA SC Market (GA + SC)
$10 20,000 18,000 38,000 (20,000 + 18,000)
8 16,000 15,000 31,000 (16,000 + 15,000)
6 12,000 12,000 24,000 (12,000 + 12,000)
4 8,000 9,000 17,000 (8,000 + 9,000)
2 4,000 6,000 10,000 (4,000 + 6,000)