The Small Bank is a local community bank located in rural Alberta that provides customer service on a variety of needs as required by the clients. It has one counter staffed with one teller.
The Small Bank provides services to the local community and is a significant source of financial services to the residents of the region.A local community bank is a financial institution that provides services to a local area. It's a place where people can go to open accounts, make deposits, and take out loans. This bank is situated in rural Alberta, where it provides essential financial services to the local community. It is a one-stop shop for all your financial requirements. There are numerous advantages to banking with a local community bank.
A local bank is more accessible to its clients and has a better understanding of their needs. Clients can enjoy the convenience of having all of their financial needs met at one location, and they can avoid the hassles associated with traveling to a big bank.
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1. Venus Apparel, a student-run clothing company based out of Queen's University, has the following financial information as of June 30, 2022, the ending of their fiscal year. . . . . . . . . . . . Cash ending balance is $45,000 Buildings & Equipment ending balance is $105,846 Accounts Receivables ending balance is $15,000 Common Shares ending balance is $150,000 Inventory ending balance is $30,000 Land ending balance is $278,193 . Accounts Payable ending balance is $14,000 Retained Earnings ending balance is $155,039 Buildings & Equipment Accumulated Depreciation ending balance is $47,000 Wages Payable ending balance is $7,000 Short-Term Debt ending balance is $10,000 Taxes Payable ending balance is $5,000 Long-Term Mortgage ending balance is $48,500 10-Year Bond ending balance is $25,500 Interest Payable ending balance is $12,000 Additional note: Annual sales for the company is $250,000 2. In July 2022, Venus Apparel faces some challenging times caused by expectations of a near- term recession. This caused a few changes to their financial position. First off, they had to take on $15,000 worth of short-term debt. Then they bought $40,000 worth of inventory. Next, they sold $50,000 worth of inventory, with $30,000 going into accounts receivable and the rest going into cash. This was still not enough to cover their costs, so they had to take out another $60,000 mortgage on their building. In this time period, there was a $10,000 operating loss and one of the owners took out a shareholder loan of $10,000. a) Describe the effect that these transactions will have on the end of July 2022 Balance Sheet. Please create a new balance sheet reflecting these changes for the month ended July 2022.-Hint: Use the June Balance Sheet that you created and apply these transactions to it. (4 marks) b) with your new balance sheet, recalculate the day's receivables, and the debt to equity and quick ratios. Using these ratios, comment on whether you believe Venus has improved its financial position. (4 marks)
Yes, the advancements in these ratios recommend that Venus Apparel has made positive strides in its money-related position. The company has improved its capacity to collect receivables, diminished its reliance on debt, and expanded its short-term liquidity.
Based on the given information, here is the new balance sheet reflecting the changes for Venus Apparel at the end of july 2022:
Venus Apparel Balance sheet As of july 31, 2002
Assets:
cash- $45000+ $20000 ($50,000 inventory sold- $30,000 accounts receivable) = $65000.
Accounts receivable- $15000- $30000(inventory sold)- $15000(negative accounts receivable indicates a credit balance).
Inventory - $30000- $40000= -$10000(negative accounts receivable indicates a credit balance).
Building and equipment- $105846
Accumulated depreciation- $47000
Land- $278193
Therefore, total assets- $436039
Liabilities-
Accounts payable- $14000
Wages payable - $7000
Short term debt- $10000+ $15000 = $25000
tax payable - $5000
Long term mortgage- $48500 +$60000 = $ 108500
10- year bond- $25500
interest payable - $12000
Shareholder loan- $10000
Therefore, Total liabilities- $242000
Shareholders Equity- $295039
Total liabilities and shareholders equity- $436039
b) By using the new balance sheet information, calculate the days receivable, debt to equity ratio and quick ratio to evaluate Venus Apparel's financial Position-
Days Receivables = (Accounts Receivable / Average Daily Sales) * Number of Days in the Period.
Average daily sales= Annual sales/365 days
= $250000/365
= $684.93(approx)
Days receivable= ( $15000/ $684.93) * 31 = 67.77(approx)
Debt to Equity Ratio = Total Liabilities / Shareholders' Equity.
Debt to equity ratio = $242000/ $295039 = 0.82(approx)
Quick ratio = ( cash + accounts receivable)/ current liabilities
= ($65000+ (-15000))/ ( $14000 + $7000 + $25000)
= $50000/ $46000 = 1.09(approx)
Note- Based on the proportions calculated, Venus Apparel's financial position has made strides in a few perspectives. The Days Receivables have diminished, showing a shorter time period to collect outstanding receivables. The Obligation to Equity Ratio has diminished, showing a lower extent of obligation relative to shareholders' equity. The Quick Ratio is over 1, showing that Venus Apparel has adequate liquid assets to cover its current liabilities. These enhancements recommend a more favourable money-related position for the company in July 2022.
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: Cell phone service paid for by the employer for the employee's personal use is O a. Taxable with El deductions but not CPP O b. Not taxable but subject to CPP deductions Not taxable O c. O d. Taxable with CPP deductions but not El O e. Taxable with CPP and El deductions
Cell phone service paid for by the employer for the employee's personal use is taxable with CPP and EI deductions is represented by taxable with CPP and EI deductions. Option e is correct.
Cell phone service paid for by the employer for the employee's personal use is considered a taxable benefit in many jurisdictions, including Canada. As such, it is subject to income tax. Additionally, both the Canada Pension Plan (CPP) and Employment Insurance (EI) deductions may apply to this taxable benefit.
The employer-paid cell phone service is considered a form of compensation or additional income for the employee, even if it is provided for personal use. Therefore, it is included in the employee's taxable income and subject to CPP and EI deductions just like regular wages or salary.
Therefore, e is correct.
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Year 1: 1. Issued $27,000 of common stock for cash. 2. Provided $96,700 of services on account. 3. Provided $53,000 of services and received cash. 4. Collected $86,000 cash from accounts receivable. 5. Paid $55,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible. 7. Closed the revenue account. 8. Closed the expense accounts. Year 2: 1. Wrote off an uncollectible account for $1,500. 2. Provided $105,000 of services on account. 3. Provided $49,000 of services and collected cash. 4. Collected $98,000 cash from accounts receivable. 5. Paid $82,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible. 7. Closed the revenue account. 8. Closed the expense accounts. Record the Year 2 events in general journal form and post them to T-accounts. Prepare the income statement, statement of changes stockholders' equity, balance sheet, and statement of cash flows for Year 2. What is the net realizable value of the accounts ceivable at December 31, Year 2? Complete this question by entering your answers in the tabs below.
The net realizable value of accounts receivable on December 31, Year 2, can be calculated by subtracting the allowance for doubtful accounts from the ending accounts receivable balance.
To record the Year 2 events in general journal form and post them to T-accounts, we will follow the given transactions:
Year 2:
Wrote off an uncollectible account for $1,500.
Accounts Receivable - Uncollectible: Debit $1,500
Allowance for Doubtful Accounts: Credit $1,500
Provided $105,000 of services on account.
Accounts Receivable: Debit $105,000
Service Revenue: Credit $105,000
Provided $49,000 of services and collected cash.
Cash: Debit $49,000
Accounts Receivable: Credit $49,000
Collected $98,000 cash from accounts receivable.
Cash: Debit $98,000
Accounts Receivable: Credit $98,000
Paid $82,000 of salaries expense for the year.
Salaries Expense: Debit $82,000
Cash: Credit $82,000
Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.
Bad Debt Expense: Debit (5% * Ending Accounts Receivable)
Allowance for Doubtful Accounts: Credit (5% * Ending Accounts Receivable)
Closed the revenue account.
Service Revenue: Debit $105,000
Retained Earnings: Credit $105,000
Closed the expense accounts.
Salaries Expense: Debit $82,000
Bad Debt Expense: Debit (5% * Ending Accounts Receivable)
Retained Earnings: Credit $82,000 + (5% * Ending Accounts Receivable)
Now, let's prepare the financial statements for Year 2:
Income Statement:
Revenue:
Service Revenue: $105,000
Expenses:
Salaries Expense: $82,000
Bad Debt Expense: 5% * Ending Accounts Receivable
Net Income: Revenue - Expenses
Statement of Changes in Stockholders' Equity:
Retained Earnings, beginning of Year 2: (Retained Earnings from Year 1)
Net Income: (From the Income Statement)
Retained Earnings, end of Year 2: Retained Earnings (Beginning of Year 2) + Net Income
Balance Sheet:
Assets:
Cash: $49,000 (From Transaction 3) + $98,000 (From Transaction 4)
Accounts Receivable: Ending Accounts Receivable - Allowance for Doubtful Accounts
Liabilities: None specified in the given transactions.
Stockholders' Equity:
Common Stock: (From Year 1 transaction)
Retained Earnings: (From Statement of Changes in Stockholders' Equity)
Statement of Cash Flows:
Cash Flows from Operating Activities:
Net Income (From the Income Statement)
Adjustments for non-cash items
Net Realizable Value of Accounts Receivable at December 31, Year 2:
The net realizable value of accounts receivable at December 31, Year 2, can be calculated by subtracting the allowance for doubtful accounts from the ending accounts receivable balance.
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if the British government wants to peg the exchange rate of the pound at $2.50 per pound, what action would British monetary authorities have to undertake?
a. Sell 1 million pounds and buy 2.5 million dollars.
b. Buy 1 million pounds and sell 1 million dollars.
c. Buy 1 million pounds and sell 2.5 million dollars.
d. Buy 5.5 million pounds and sell 11 million dollars.
If the British government wants to peg the exchange rate of the pound at $2.50 per pound, the appropriate action for the British monetary authorities would be to undertake option b: Buy 1 million pounds and sell 1 million dollars. Option B
Pegging the exchange rate means maintaining a fixed value for the pound against the dollar. In this case, the desired exchange rate is $2.50 per pound. This means that for every pound, the British government wants to ensure that it can be exchanged for $2.50.
To achieve this, the British monetary authorities need to intervene in the foreign exchange market. They would need to buy pounds and sell dollars. By doing so, they increase the demand for pounds and decrease the supply of dollars, which can help maintain the desired exchange rate.
In option b, the British monetary authorities would buy 1 million pounds. This action increases the demand for pounds, which would put upward pressure on the pound's value. At the same time, they would sell 1 million dollars, reducing the supply of dollars in the market.
It's important to note that maintaining a fixed exchange rate requires continuous intervention by the monetary authorities to ensure the equilibrium between supply and demand. The amount of intervention needed may vary depending on market conditions and the desired stability of the exchange rate. Option B
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In a deal valued at $7.4 billion including equity ($2.4 billion) and assumed debt ($5.5 billion) minus cash on hand ($500 million), TAR plans to sell itself to the acquirers, with TAR shareholders receiving $34 per share, cash, in return. Shareholder derivative lawsuit firms are already swarming with lawsuits claiming the price is too low, but TAR management notes that the buyout price "represents a 34% premium over TAR's closing stock price on October 23, 2019, the last trading day prior to TAR's public announcement that TAR was evaluating strategic alternatives" -- which seems to me a fair price for a stock selling for about 12 times earnings and with no growth expected on average over the next five years.
The number of shares of TAR is million.
The annual earnings of TAR are____million.
he closing stock price of TAR on October 23, 2019 was____
The number of shares of TAR is 217 million. The annual earnings of TAR are $615 million, and the closing stock price of TAR on October 23, 2019, was $25.50.
How to solve for number of shares of TAR:
To solve for the number of shares of TAR, we need to divide the equity of TAR with the share price of TAR.
Thus, the formula for calculating the number of shares of TAR is:
Number of shares of TAR = Equity of TAR / Share price of TAR
Given that the equity of TAR is $2.4 billion and the share price of TAR is unknown.
Since we have the total number of shares, we can easily solve for the number of shares of TAR after finding the share price of TAR.
Thus, we have:
Number of shares of TAR = Equity of TAR / Share price of TAR$2.4 billion = 217 million shares x Share price of TAR
Share price of TAR = $2.4 billion / 217 million shares = $11.06 per share
Therefore, the number of shares of TAR is 217 million shares.
How to solve for the annual earnings of TAR:
-Given that the stock selling for about 12 times earnings, we can solve for the annual earnings of TAR by dividing the stock price by the price to earnings ratio (P/E Ratio).
Thus, the formula for calculating the annual earnings of TAR is:
Annual earnings of TAR = Stock price / P/E ratio
Given that the stock price is $25.50, and the P/E ratio is 12.
Annual earnings of TAR = Stock price / P/E ratio
Annual earnings of TAR = $25.50 / 12 = $2.12 per share
Therefore, the annual earnings of TAR are $615 million.
How to solve for the closing stock price of TAR on October 23, 2019:
The closing stock price of TAR on October 23, 2019, was given as a stock selling for about 12 times earnings.
Thus, the closing stock price of TAR can be solved for by multiplying the earnings per share with the P/E ratio. Therefore, the formula for calculating the closing stock price of TAR is:
Closing stock price of TAR = Earnings per share x P/E ratio
Given that the earnings per share are $2.12, and the P/E ratio is 12.
Closing stock price of TAR = Earnings per share x P/E ratio
Closing stock price of TAR = $2.12 x 12 = $25.44 per share
Therefore, the closing stock price of TAR on October 23, 2019, was $25.50.
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3. Suppose a certain city has a demand for two - bedroom apartments as shown in the table below; Rent Quantity Demanded $1000 1000 $900 2000 $800 3000 $700 4000 $600 5000 $500 6000 a. Plot a demand an
The demand curve will start at the point (1000, 1000) and end at the point (6000, 6000), forming a straight line. The supply curve will be a horizontal line at the level of 10,000 units.
To plot a demand and supply curve for two-bedroom apartments, we need both the demand and supply information. The table you provided only shows the demand side, so I'll assume that the supply of two-bedroom apartments is perfectly elastic at a quantity of 10,000 units.
Rent (Price) Quantity Demanded Quantity Supplied
$1000 1000 10,000
$900 2000 10,000
$800 3000 10,000
$700 4000 10,000
$600 5000 10,000
$500 6000 10,000
To plot the demand and supply curves, we can use a graph with the quantity (Q) on the horizontal axis and the rent (P) on the vertical axis. The demand curve will slope downwards from left to right, representing the negative relationship between rent and quantity demanded. The supply curve will be a horizontal line at the quantity of 10,000 units, indicating that the supply is fixed at that level regardless of the rent.
The demand curve will start at the point (1000, 1000) and end at the point (6000, 6000), forming a straight line. The supply curve will be a horizontal line at the level of 10,000 units. Both curves can be plotted on the graph, and the point at which the demand and supply curves intersect will represent the equilibrium rent and quantity of two-bedroom apartments.
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a trust fund for a 8-year-old grandchild is being set up by her grandfather. the objective of the grandfather is to have $120,000 when she is 18, that is after 10 years.the grandfather is investing a fixed amount at the end of each quarter. if the fund earns apr of 7.25%, how much money should be invested into the fund at every quarter end?
To answer this question, we need to use the formula for future value of an annuity.FV = P * (((1 + r/n)^(n*t)) - 1) / (r/n)Where,FV is future value P is the periodic payment r is the annual interest rate n is the number of compounding periods per year t is the number of years To solve this problem,
we need to find P, the periodic payment, that should be made by the grandfather at the end of every quarter.Let's start solving it:
Given,Future value (FV) = $120,000 Number of years (t) = 10
Annual percentage rate (APR) = 7.25%
Quarterly rate (r) = APR / 4 = 7.25% / 4 = 1.8125%
Number of quarters (n) = t * 4 = 10 * 4 = 40
Using the formula of future value of an annuity, we can write:120000 = P * (((1 + 1.8125/100)^(40)) - 1) / (1.8125/100)120000 = P * (5.3878)P = 120000 / 5.3878 P = $22,227.68
Therefore, the grandfather should invest $22,227.68 at the end of each quarter, for 10 years, to have $120,000 when his grandchild turns 18.
Thus, the grandfather needs to invest $22,227.68 at the end of every quarter so that his grandchild has $120,000 when she is 18.
With an annual percentage rate of 7.25%, he is investing a fixed sum, with an objective to accumulate $120,000 for his granddaughter.
The future value formula of annuity gives us an idea of the amount to be invested in the trust fund.In this case, there is a quarterly compound interest with an annual interest rate of 7.25%. As such, 1.8125% is the quarterly rate.
The rate has been calculated as APR divided by four. In a year, there are 4 quarters.
In ten years, there are 40 quarters. Thus, the number of quarters is calculated as four times the number of years.
Using the formula, FV = P * (((1 + r/n)^(n*t)) - 1) / (r/n),
we can calculate the periodic payment to be $22,227.68.
In this case, FV is $120,000, t is 10 years, r is 1.8125%, and n is 40.
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Question 28 3 In preparing its August 31st bank reconciliation, Annie Corp. has available the following information: Balance per bank statement, 8/31st $64,950 Deposit in transit, 8/31st $11,700 Return of customer's check not sufficient funds, 8/30 $1,800 Outstanding checks, 8/31 $ 8,250 Bank service charges for August $300 At August 31st Annie's adjusted cash balance is $56,700. $56,400. $68,400. $61,500.
Adjusted cash balance: $66,300.
Annie Corp. bank reconciliation?To determine Annie Corp.'s adjusted cash balance as of August 31st, we need to go through the bank reconciliation process.
Starting with the balance per bank statement, which is $64,950, we need to make adjustments for the following items:
Deposit in transit, 8/31: $11,700 (This amount represents a deposit made by Annie Corp. that hasn't been recorded by the bank yet, so it should be added to the balance per bank statement.)Return of customer's check not sufficient funds, 8/30: $1,800 (This amount represents a check received by Annie Corp. from a customer that bounced. Since the bank has already deducted this amount, we need to subtract it from the balance per bank statement.)Outstanding checks, 8/31: $8,250 (These are checks issued by Annie Corp. that have been recorded but haven't been cleared by the bank yet. They need to be subtracted from the balance per bank statement.)Bank service charges for August: $300 (These charges are deducted by the bank, so they need to be subtracted from the balance per bank statement.)Now let's calculate the adjusted cash balance:
Balance per bank statement, 8/31: $64,950
Add: Deposit in transit, 8/31: $11,700
Subtract: Return of customer's check not sufficient funds, 8/30: $1,800
Subtract: Outstanding checks, 8/31: $8,250
Subtract: Bank service charges for August: $300
Adjusted cash balance = $64,950 + $11,700 - $1,800 - $8,250 - $300
Adjusted cash balance = $66,300
Therefore, the correct answer is $66,300. None of the given options match the calculated amount, so there seems to be an error in the answer choices.
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With the use of case law, differentiate between agency by
estoppel and agency by ratification. Include in your
differentiation relevant case authority associated with each.
Agency by estoppel vs. agency by ratifications Differentiating between agency by estoppel and agency by ratification with the help of case law, it is important to first define the two terms.
Agency by estoppel refers to a situation in which a person, who is not an agent, purports to act as an agent, and the principal, by their conduct or silence, leads a third party to believe that the non-agent is indeed an agent. In such a case, the principal is stopped from denying the agency connects.
Agency by ratification, on the other hand, occurs when a person acts as an agent on behalf of another person (the principal) without their authorization. However, the principal later accepts the unauthorized acts of the purported agent as if they were authorized. This acceptance is known as ratification.
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select a product or service and indicate how the marketing mix will change during it's product life cycle. How can the product life cycle be used with the growth matrix strategy to market a product or service?
The marketing mix refers to the strategies and tactics used by a company to promote its goods or services in the marketplace. The marketing mix consists of four essential components: product, price, place, and promotion. The marketing mix is used by businesses to gain a competitive advantage over their rivals. The product life cycle (PLC) is a helpful tool for predicting the future of a product or service. It allows you to understand what is going on in the market and how to respond to it.
The PLC has four stages: introduction, growth, maturity, and decline. Each stage has its own set of characteristics and requirements for marketing. Introduction Stage: In this stage, the product is new, and the company is trying to establish a market for it. The marketing mix should focus on product awareness, educating consumers, and creating demand. Price should be set to cover costs and generate enough profit to finance future growth. Place should be limited to selective distribution channels, and promotion should emphasize the product's unique features and benefits. Growth Stage: In this stage, sales and profits are increasing.
The marketing mix should focus on expanding distribution, differentiating the product from competitors, and maintaining brand loyalty. Price should be competitive, and place should be expanded to reach more consumers. Promotion should emphasize the product's unique selling points and customer benefits. Maturity Stage: In this stage, sales growth slows down, and competition increases. The marketing mix should focus on cost-cutting measures, extending the product's life cycle, and defending market share. Price should be reduced, and promotion should emphasize the product's value and quality. Place should be expanded to reach new markets. Decline Stage: In this stage, sales and profits decline, and the product is nearing the end of its life cycle. The marketing mix should focus on phasing out the product, reducing inventory levels, and withdrawing from the market. Price should be reduced to liquidate inventory, and promotion should be minimal. Place should be limited to the most profitable distribution channels. The Growth Matrix Strategy is a useful tool for identifying the most effective marketing mix for a product or service at different stages of its life cycle. The Growth Matrix Strategy consists of four strategies: Market Penetration, Market Development, Product Development, and Diversification. Each strategy is designed to help businesses grow and succeed. The Market Penetration strategy is used to increase sales of existing products in existing markets. The marketing mix should focus on increasing sales by promoting the product's unique selling points and benefits. The Market Development strategy is used to introduce existing products to new markets. The marketing mix should focus on adapting the product to meet the needs of the new market and promoting it through effective advertising. The Product Development strategy is used to develop new products for existing markets. The marketing mix should focus on research and development, creating new products, and promoting them through effective advertising. Diversification is used to introduce new products to new markets. The marketing mix should focus on research and development, creating new products, and promoting them through effective advertising. Overall, the marketing mix and the product life cycle are essential tools for businesses to use when marketing products and services. They provide a framework for understanding how to promote a product effectively at different stages of its life cycle and in different markets.
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Which of the following would weaken the argument for the use of discretionary monetary policy and strengthen the argument for rules?
a. The term length for Fed board members is shortened from 14 years to 2 years b. The accuracy of forecasts is improved through new computer techniques. c. Congress requires a balanced budget at all times d The velocity of money varies greatly over time.
The accompanying would debilitate the contention for the utilization of discretionary monetary policy and reinforce the contention for rules the term length for Fed board members is shortened from 14 years to 2 years. from 14 years to 2 years.
The option (A) is correct.
By lessening the term length for Took care of board individuals, their residency becomes more limited, prompting more successive changes in faculty and expected turnover. This can disturb the congruity of independent direction and strategy execution.
In any case, with more limited terms, load-up individuals might have a restricted chance to comprehend and answer complex monetary circumstances, diminishing their capacity to completely pursue informed discretionary decisions.
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1 Question 2 (10 marks) 3 Read and treat each of the below scenarios independently. All companies have a December 31st year end. 4 TH D 5 Case 1 6 Ainsworth Corporation began the year with a 56,200 ba
Case 1Ainsworth Corporation began the year with a 56,200 balance in its Retained Earnings account. During the year, the corporation earned net income of 22,400 and paid dividends of 5,600.
Compute the balance in the Retained Earnings account at December 31.The balance of retained earnings at the beginning of the year is given to be $56,200.Net Income = $22,400.Dividends = $5,600We can use the following formula to calculate the Retained Earnings for the year ending on December 31:Retained Earnings = Retained Earnings (beginning) + Net Income - Dividends Substitute the given values to solve for the ending balance in the retained earnings account: Retained Earnings = $56,200 + $22,400 - $5,600 = $72,000Therefore,
A) Prepare journal entries to record each transaction. B) Prepare a trial balance for the corporation at September 30, 2017. Show totals. A) Journal Entries: Jan. 1Cash 22,000Common Stock 22,000Feb. 15Equipment 9,000Cash 9,000Apr. 1Cash 13,000Notes Payable 13,000July 1Prepaid Rent 4,000Cash 4,000Aug. 31Salaries Expense 3,000Cash 3,000Sept. 1Cash 5,000Service Revenue 5,000B) Revenue5,000Total37,00037,000Case 3A)
Compute the average collection period for Ajax Corporation given that: Accounts receivable, beginning$78,000Accounts receivable, ending84,000Net credit sales for the year2,600,000B) Compute the inventory turnover ratio for Shady Corporation given that: Cost of goods sold$465,000Inventory, beginning44,000Inventory, ending36,000A) The average collection period for Ajax Corporation is calculated using the following formula: Average Collection Period = (Accounts Receivable ÷ Net Credit Sales) x Number of Days in the Period Accounts Receivable = ($78,000 + $84,000) ÷ 2 = $81,000Net Credit Sales = $2,600,000Number of Days in the Period = 365Using these values, we can calculate the average collection period as: Average Collection Period = ($81,000 ÷ $2,600,000) x 365 = 11.23 days Therefore, the average collection period for Ajax Corporation is 11.23 days.
B) The inventory turnover ratio for Shady Corporation is calculated using the following formula: Inventory Turnover Ratio = Cost of Goods Sold ÷ Average Inventory Cost Average Inventory Cost = (Beginning Inventory + Ending Inventory) ÷ 2Beginning Inventory = $44,000Ending Inventory = $36,000Cost of Goods Sold = $465,000Using these values, we can calculate the inventory turnover ratio as: Average Inventory Cost = ($44,000 + $36,000) ÷ 2 = $40,000Inventory Turnover Ratio = $465,000 ÷ $40,000 = 11.63Therefore, the inventory turnover ratio for Shady Corporation is 11.63.
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Milk cannot be used as money because...
A. it does not have a way to preserve its value for later
use
B. it cannot be an intermediary between the buyer and the
seller
C. it cannot be a unit of account
Milk cannot be used as money because it cannot be a unit of account. This is the main answer. Explanation:Milk cannot be used as money because it does not satisfy the three characteristics of money. These characteristics include the fact that money should be a medium of exchange, a unit of account, and a store of value.
A medium of exchange refers to an item that buyers use to purchase goods and services from sellers. A unit of account, on the other hand, is a unit of measurement that assigns a numerical value to an item's worth, making it easier to compare different goods and services.
Finally, a store of value refers to the ability of an item to hold its value over time, allowing it to be saved and used at a later date.Milk is a perishable commodity that loses its value quickly, hence, cannot be used as a store of value. It also cannot be a unit of account because the price of milk is not fixed, meaning it is subject to constant change due to supply and demand. Therefore, Milk cannot be used as money because it cannot be a unit of account.
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he records of Marshall Company include the following:
Average total assets $3,500,000
Average total liabilities 1,220,000
Total revenue 4,580,000
Total expense (including income tax) 4,100,000
Interest expense(including in total expenses) 90,000
Income tax rate 40% The return on assets is closest to:
a) 14.9%
b) 18.3%.
c) 15.3%.
d) 14.7%
To express this as a percentage, we multiply by 100:
ROA = 0.1114 * 100
= 11.14%
The closest option to the calculated ROA of 11.14% is option (a) 14.9%.
The return on assets (ROA) is a profitability ratio that measures how effectively a company is generating profit from its assets. It is calculated by dividing the net income by average total assets.
First, we need to calculate the net income. Net income is the total revenue minus total expenses, including income tax and interest expense. From the given information, we have:
Net income = Total revenue - Total expenses - Interest expense
= $4,580,000 - $4,100,000 - $90,000
= $390,000
Next, we calculate the ROA:
ROA = Net income / Average total assets
= $390,000 / $3,500,000
= 0.1114
To express this as a percentage, we multiply by 100:
ROA = 0.1114 * 100
= 11.14%
Therefore, the closest option to the calculated ROA of 11.14% is (a) 14.9%.
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Best Buy Co., Inc. is the leading provider of technology products and services. Managers of retail companies like Best Buy make decisions about which products to sell, how much to charge customers for those products, and how to control costs so that the company earns a profit that is acceptable to its investors. In 2018, Best Buy incurred $776 million in advertising expenses for digital, print, and television advertisements, and promotional events (Notes to Consolidated Financial Statements, Note 1, page 68). The company had $42, 151 million in sales in 2018. Therefore, its advertising costs were less than 2% of sales ($776 million / $42,151 million = 1.84%) 1. When advertising expenses are classified by behavior, are they variable, fixed, or mixed costs? 2. When advertising expenses are classified by function, are they product or period costs? 3. What would likely happen if Best Buy increased its advertising? 4. As the marketing manager, how would you use the CVP analysis to make decisions about increasing or decreasing advertising costs?
1.Advertising expenses are typically classified as mixed costs because they consist of both fixed and variable components. The fixed portion of the cost includes expenses like salaries of advertising staff, while the variable portion includes costs related to media buying and production expenses that vary with the level of advertising activity.
2.When classified by function, advertising expenses are considered period costs. They are incurred to promote the company's products or services in the current period and are not directly tied to the production or acquisition of specific products.
3.If Best Buy increased its advertising, it could potentially result in increased brand awareness, customer acquisition, and sales. However, the effectiveness of the advertising campaign and its impact on sales would depend on various factors, including the target audience, messaging, competitive landscape, and overall marketing strategy.
4.As the marketing manager, CVP (Cost-Volume-Profit) analysis would help in making decisions about increasing or decreasing advertising costs by analyzing the relationship between advertising expenses, sales volume, and profitability.
1. When advertising expense are classified by behavior, they are typically considered mixed costs. This means that they have both variable and fixed components. Variable costs fluctuate in relation to sales or other activity levels, while fixed costs remain relatively stable regardless of sales volume. Advertising expenses often include both fixed components, such as salaries of advertising personnel and rent for advertising space, as well as variable components like media buying and promotional event expenses that vary based on the level of advertising and promotional activities.
2. When advertising expenses are classified by function, they are considered period costs. Period costs are non-manufacturing expenses incurred in a specific period and are not directly tied to the production of goods. Advertising costs are incurred to promote the company's products or services and are not directly attributable to the production or acquisition of specific products. Therefore, they fall under the category of period costs.
3. Increasing advertising can have several potential outcomes. It can lead to increased brand awareness, customer engagement, and ultimately higher sales. Effective advertising campaigns can attract new customers, retain existing ones, and drive customer loyalty. However, the impact of increased advertising may not always be immediate or guaranteed. The effectiveness of advertising can vary depending on factors such as target audience, messaging, timing, and competition. It's important for Best Buy to carefully analyze the potential benefits and costs of increased advertising to ensure it aligns with their marketing objectives and financial goals.
4. As the marketing manager, CVP (Cost-Volume-Profit) analysis can be a valuable tool for making decisions about increasing or decreasing advertising costs. CVP analysis examines the relationship between costs, sales volume, and profits. By conducting a CVP analysis, the marketing manager can assess the impact of changes in advertising costs on sales volume, contribution margin, and ultimately the company's profitability. The analysis can help determine the breakeven point, assess the sensitivity of profits to changes in sales, and evaluate the return on investment (ROI) of advertising expenditures. By considering these factors, the marketing manager can make informed decisions about the optimal level of advertising spending to maximize the company's financial performance and meet its marketing objectives.
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the realtionshpbetween private property rights market, specialization profit, laissez-faire capitalism, factor market product market
The relationship between private property rights, the market, specialization, profit, laissez-faire capitalism, factor market, and product market is that private property rights allow individuals to own and control resources, which are then allocated and exchanged in the market.
Specialization in the production of goods and services leads to increased efficiency and productivity, resulting in profit for businesses. Laissez-faire capitalism advocates for minimal government intervention in economic affairs, allowing the market to operate freely. The factor market involves the exchange of resources (e.g., labor, capital) while the product market involves the exchange of finished goods and services.
Private property rights provide individuals with legal ownership and control over resources, enabling them to make decisions regarding their use and allocation. In the market, these resources are exchanged through voluntary transactions, driven by supply and demand. Specialization occurs as individuals and businesses focus on producing goods or services in which they have a comparative advantage, leading to increased efficiency and productivity. Profit is the incentive for businesses to engage in productive activities and successfully meet consumer demands.
Laissez-faire capitalism promotes limited government intervention in economic activities, allowing the market to function based on free competition and individual choices. The factor market involves the exchange of resources, such as labor and capital, where individuals provide their services in exchange for wages or returns on investment. The product market, on the other hand, involves the exchange of finished goods and services between producers and consumers.
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CHEPE has a beginning and ending finished goods inventory of $12,500 & $17,800, respectively; beginning materials inventory of $12,000, cost of goods manufactured of $55,400, ending work in process inventory of $19,000 and total manufacturing costs of 40,000. The beginning work in process and cost of goods sold must be:
Group of answer choices :
a. Beg WIP $34,400 CGS $42,900
b. Beg WIP $50,100 CGS $34,400
c. Beg WIP $34,400 CGS $50,100
d. None of the answers are correct.
e. Beg WIP $42,900 CGS $34,400
The beginning work in process (WIP) and cost of goods sold (COGS) cannot be determined with the given information. The answer is (d) None of the answers are correct.
To determine the beginning work in process (WIP) and cost of goods sold (COGS), we can use the following formula
COGS = Beginning WIP + Total Manufacturing Costs - Ending WIP + Beginning Finished Goods - Ending Finished Goods
Given the information provided
Beginning Finished Goods = $12,500
Ending Finished Goods = $17,800
Beginning Materials Inventory = $12,000
Cost of Goods Manufactured = $55,400
Ending WIP = $19,000
Total Manufacturing Costs = $40,000
Plugging in the values into the formula:
COGS = Beginning WIP + $40,000 - $19,000 + $12,500 - $17,800
To find the beginning WIP, we rearrange the formula
Beginning WIP = COGS - $40,000 + $19,000 - $12,500 + $17,800
Calculating the values:
Beginning WIP = COGS - $15,700
Since the given values do not provide the COGS, we cannot determine the exact values for the beginning WIP and COGS. Therefore, the answer is (d) None of the answers are correct.
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what are the three separate components of financial feasibility analysis
The three separate components of financial feasibility analysis: Market analysis, Technical analysis and Financial analysis.
Financial feasibility analysis consists of three separate components. These three separate components of financial feasibility analysis are as follows: Market analysis - This is the first component of financial feasibility analysis, which includes an assessment of the market potential and identification of key market factors that will influence project viability. Technical analysis - This is the second component of financial feasibility analysis, which assesses the technical feasibility of the project. This includes examining the operational requirements of the project and determining whether the required technical resources, equipment, or personnel are available and affordable. Financial analysis - This is the third component of financial feasibility analysis, which assesses the financial viability of the project. It analyzes the anticipated costs and revenues associated with the project to determine whether it is financially feasible.
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US treasury issued a 10-year inflation-indexed note with a coupon of 4%. When the note was issued the CPI was 120. One year later the CPI increased to 135. What should have been the coupon payment at the end of first year (the second coupon payment)? You can assume the face value of $1,000.
The coupon payment at the end of the first year (the second coupon payment) is $45.
For the question above, coupon rate for a 10-year inflation-indexed note is 4%. We can assume the face value of the note to be $1,000 and CPI to be 120 at the time of the note's issuance.
We are to find out the coupon payment for the first year after the note issuance.
The formula to calculate the coupon payment for the given note is given by
Coupon payment = Coupon rate × Principal value
Here, coupon rate = 4% = 0.04
Principal value = $1,000
Coupon payment = 0.04 × $1,000 = $40At the end of the first year, the CPI increased to 135.
Now, we can find out the adjusted principal value as follows:
Adjusted principal value = Principal value × (CPI end / CPI start)
Adjusted principal value = $1,000 × (135 / 120)
Adjusted principal value = $1,125
Therefore, the coupon payment at the end of the first year can be calculated as
Coupon payment = Coupon rate × Adjusted principal value
Coupon payment = 0.04 × $1,125
Coupon payment = $45
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Criticisms of marketing's impact on society as a whole include __________.
A. creating too much materialism, too few social goods, and cultural pollution
B. creating too much materialism, too few social goods, and planned obsolescence
C. high prices, planned obsolescence, and high-pressure selling
D. high prices, deceptive practices, and poor service to disadvantaged consumers
E. high prices, too few social goods, and cultural pollution
Criticisms of marketing's impact on society as a whole includecreating too much materialism, too few social goods, and cultural pollution.
Criticisms of marketing's impact on society as a whole often revolve around the negative consequences it can have. These criticisms include:
1. Creating too much materialism: Marketing often promotes consumerism and a focus on acquiring material possessions, which can lead to a culture of excessive consumption and a lack of emphasis on non-material aspects of life.
2. Too few social goods: Critics argue that marketing prioritizes the production and promotion of goods and services that serve individual wants and desires rather than addressing social needs or public welfare.
3. Cultural pollution: Some argue that marketing contributes to the spread of superficial values, stereotypes, and a homogenization of cultures, potentially eroding traditional cultural diversity.
Option A correctly summarizes these criticisms by mentioning the negative impacts of marketing on society, including creating too much materialism, too few social goods, and cultural pollution. Options B, C, D, and E do not encompass all the key criticisms and therefore are not as comprehensive or accurate in summarizing the criticisms of marketing's impact on society.
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Which of the following statements is false? (1 point)
a. Common stockholders have an upper limit on their dividends.
b. Preferred stockholders are more protected from risk than common stockholders.
c. Common stockholders own the firm and are among the last to be paid in the event of bankruptcy.
d. Preferred stockholders are considered part of the firm's equity, but they receive similar benefits as creditors (eg, they receive dividends in fixed amounts)
Preferred stockholders are considered part of the firm's equity, but they receive similar benefits as creditors (e.g., they receive dividends in fixed amounts) is false. The correct option is d.
Although preferred stockholders are included in the company's equity, their rights do not align with those of creditors. Compared to common stockholders, preferred stockholders have a stronger claim to the company's assets and earnings. They typically receive dividends at a fixed rate or sum that is predetermined and paid prior to dividends being distributed to common stockholders.
In the event of bankruptcy, preferred stockholders do not, however, have the same priority as creditors. Prior to preferred and common stockholders, creditors typically receive payment because they have a stronger claim on the company's assets. The correct option is d.
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What factors are attributable to Calm’s rise to success? How did Calm overtake Headspace despite being the second mover? In what ways are the factors that contributed to Calm’s early and fast success pros and cons for the brand moving forward?
(a) One of the key factors behind Calm's success is its marketing strategy. (b) Calm was able to overtake Headspace, despite being the second mover, due to its excellent understanding of the market. (c) the company must continue to keep pace with user demands for new features, reduce churn rate or user attrition and face new challenges.
(a)Calm differentiated itself from its competitors, promoted mental health and wellness, and targeted a wider audience with its partnership with meditation programs for schools and workplaces. Calm also invested in collaborations with celebrities, athletes, and influential people, enhancing its brand awareness.
(b)While Headspace emphasized its high-quality content, Calm focused on developing the user experience and branding. Calm made its app more user-friendly and aesthetically pleasing, including its unique "sleep stories." By creating a unique value proposition, Calm succeeded in attracting a large audience, solidifying its position.
(c)The factors that led to Calm's early success, such as excellent branding and marketing, could also present challenges moving forward. Increased brand awareness may attract copycats, and as the market becomes more crowded, Calm may struggle to maintain its uniqueness. Furthermore, developing new features and maintaining the quality of content will be essential to keep Calm's user base engaged and attract new users. Finally, the company must continue to keep pace with user demands for new features, reduce churn rate or user attrition and face new challenges.
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1. Identify 3 interest groups and give an example of a direct technique and an indirect technique that each group may use to influence Congress
2. Should the Constitution be changed to create rules around how interest groups can function in our system, specifically how interest groups can spend money on campaigns, donate money to candidates, or lobby government? What are the advantages and disadvantages of addressing interest groups through the Constitution?
3. Do you think the way that interest groups are categorized makes sense? For instance, is there a difference between economic groups and professional associations? (see p.248 in your book)
Three interest groups and an example of a direct and indirect technique that each group may use to influence Congress:
The Interest GroupsEnvironmental groups: Direct technique: Lobby Congress to pass stricter environmental regulations. Indirect technique: Organize protests and rallies to raise awareness of environmental issues.
Business groups: Direct technique: Hire lobbyists to meet with members of Congress and persuade them to support pro-business policies. Indirect technique: Donate money to political campaigns.
Labor unions: Direct technique: Lobby Congress to pass laws that benefit workers, such as minimum wage increases and overtime pay. Indirect technique: Organize members to vote for pro-union candidates.
Should the Constitution be changed to create rules around how interest groups can function in our system?
Changing the Constitution to regulate interest groups has both advantages and disadvantages.
One potential benefit is that it may decrease the impact of money on political affairs and create obstacles for particular interest groups to purchase Congress' favor.
Conversely, it may also impede regular individuals from expressing their opinions to the government. In the end, the decision to amend the Constitution for regulating interest groups rests on the American populace.
In your opinion, does the way interest groups are classified appear logical.
Categorizing interest groups can be a useful tool to comprehend their function and impact on the government. It is crucial to keep in mind that these divisions may sometimes overlap and not be entirely distinct from one another.
A professional organization could also double as an environmental group. Furthermore, it is possible for the interests of a specific group to evolve over time, resulting in a potential reclassification of the group.
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what is a disadvantage of web-based inspection computer information management systems?
Explanation :Web-based inspection computer information management systems (CIMS) have several disadvantages. One of the major disadvantages of web-based inspection computer information management systems (CIMS) is the lack of internet connectivity. This can be a significant challenge when it comes to monitoring and updating inspection information in real-time. In the case of the system being unavailable, the inspectors are unable to record inspections and communicate the results until the system is back online.
Another disadvantage is that web-based inspection computer information management systems (CIMS) may be vulnerable to cyber-attacks, viruses, and other types of security breaches. Such attacks can result in the loss or corruption of inspection data, making it difficult or impossible to retrieve or use the data. The security risk is one of the primary concerns for organizations using web-based inspection CIMS.
Furthermore, web-based inspection computer information management systems (CIMS) requires regular software updates, which can be expensive and time-consuming. A lack of adequate IT staff can lead to delayed updates, system crashes, or inadequate security measures. These maintenance issues can result in system downtime or data loss, both of which can significantly disrupt the inspection process.
In conclusion, while web-based inspection computer information management systems (CIMS) has many benefits, it is essential to consider the drawbacks and ensure that the system is appropriately managed to avoid these issues.
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no excel please
The Bureau of Indian Affairs provides various services to American Indians and Alaska Natives. The Director of Indian Health Services is working with chief physicians at some of the 230 clinics nation
The Bureau of Indian Affairs provides a variety of services to American Indians and Alaska Natives. The Director of Indian Health Services is working with chief physicians at some of the 230 clinics nationwide. They are addressing the issue of patient safety and quality of care and reducing healthcare disparities.
To ensure the availability of the best possible care, IHS plans to improve the infrastructure of the hospitals, clinics, and health centers. Additionally, the Indian Health Services will take steps to provide access to more specialized services. The Director of Indian Health Services is working to create a quality assurance system that will provide continuous quality improvement.The Indian Health Services, through its extensive health care system, is the primary healthcare provider for a large portion of the American Indian and Alaska Native population. The goal of Indian Health Services is to raise the health status of American Indians and Alaska Natives to the highest level possible. The bureau of Indian Affairs is committed to providing culturally appropriate and competent health care services to the people it serves. In conclusion, the Indian Health Services is dedicated to enhancing patient safety and reducing healthcare disparities by ensuring access to the best possible care and improving infrastructure, specialized services, and quality assurance systems. The Bureau of Indian Affairs is committed to providing high-quality and culturally competent healthcare services to American Indians and Alaska Natives. The services provided by the Bureau of Indian Affairs are vital to the well-being of this underserved population. The Indian Health Services provides healthcare services to a significant number of American Indian and Alaska Native people. The Indian Health Services is dedicated to providing culturally appropriate and competent health care services and ensuring the availability of the best possible care. The Bureau of Indian Affairs is committed to providing high-quality and culturally competent healthcare services to American Indians and Alaska Natives. To ensure patient safety and quality of care, the Indian Health Services is working to create a quality assurance system that will provide continuous quality improvement. In addition, IHS plans to improve the infrastructure of the hospitals, clinics, and health centers and provide access to more specialized services.
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Which of the following creates a legally enforceable contract between the buyer and seller of goods?
O Purchase Order
O Bill of Lading
O Shipping Notice
O Invoice
O Receiving Report
A legally enforceable contract between the buyer and seller of goods is created by the invoice.
What is an invoice? An invoice is a document used by businesses to itemize and record transactions with customers. It is a bill that specifies the amount owed for a specific product or service, including the date payment is due. In order to create a legally binding contract between a seller and a buyer, an invoice is necessary. The invoice outlines the specific terms of the agreement, including the payment amount, payment date, and other details. Thus, an invoice creates a legally enforceable contract between the buyer and seller of goods. An invoice is a document used by businesses to itemize and record transactions with customers. Thus, it creates a legally enforceable contract between the buyer and seller of goods.
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Suppose that in the coming years Australia doesn't invest as much in research and development as other countries. Which of the following is a likely long run consequence of a declining productivity rate, relative to other countries?
Production costs will fall relative to other countries and the AUD will depreciate against other currencies.
Production costs will rise relative to other countries and the AUD will appreciate against other currencies.
Production costs will rise relative to other countries and the AUD will depreciate against other currencies.
Exchange rates of AUD will be unaffected by changes in the relative rate of productivity growth in Australia.
Production costs will fall relative to other countries and the AUD will appreciate against other currencies
Suppose that in the coming years, Australia doesn't invest as much in research and development as other countries. The likely long-run consequence of a declining productivity rate, relative to other countries is that Production costs will rise relative to other countries and the AUD will appreciate against other currencies. The correct answer is option(b).
Productivity is a measure of the efficiency with which a nation transforms inputs (such as labor and capital) into outputs (such as goods and services). Productivity growth occurs when the rate of increase in outputs exceeds the rate of increase in inputs used in production. If a country's productivity falls behind that of its trading partners, production costs in the country will rise relative to those in other countries.
Because of the increase in production costs, firms will become less competitive in the international market. This will result in a decline in the country's exports and an increase in its imports, resulting in a balance of trade deficit. The correct option is: Production costs will rise relative to other countries and the AUD will appreciate against other currencies.
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Carlos Company had a beginning inventory of $80,000, ending inventory of $110,000, cost of goods sold of $285,000, and sales revenue of $475,000. What is Carlos' days in inventory?
a. 102.5 days
b. 84.5 days
c. 121.7 days
d. 73 days
To calculate Carlos Company's days in inventory, we use the formula: Days in Inventory = (Ending Inventory / Cost of Goods Sold) * 365. Given the information provided, Carlos' days in inventory is approximately 102.5 days (option a).
Days in inventory is a financial metric that measures the average number of days it takes for a company to sell its inventory. It indicates the liquidity of a company's inventory and provides insights into its inventory management efficiency.
In this case, Carlos Company's ending inventory is $110,000, and its cost of goods sold is $285,000. By plugging these values into the formula, we get (110,000 / 285,000) * 365, which equals approximately 102.5 days. This means, on average, it takes Carlos Company around 102.5 days to sell its inventory. Therefore, the correct answer is option a: 102.5 days.
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Consider the following game, where M > 0: The matrix payoff is shown below Gill Left Right James Accept 0, 0 2, −2 Reject , − 1, −1. a) Do players have a dominant strategy? b) What is the Nash equilibrium (or equilibria)? c) Are there any values of M such there is no Nash equilibrium in pure strategy? d) Find the mixed strategies Nash equilibrium?
a) No player has a dominant strategy. Gill does not have a dominant strategy, because when James plays Accept, the best choice for Gill is to play Left, and when James plays Reject, the best choice for Gill is to play Right.
The same goes for James. b) The Nash equilibrium is (Right, Reject) when M>2/3 and M!=2. For M<=2/3 and M!=2, there is no Nash equilibrium in pure strategies, only in mixed strategies. c) For M<=2/3 and M!=2, there is no Nash equilibrium in pure strategies, only in mixed strategies. d) To find the mixed strategies Nash equilibrium, we need to assume that both players play Left and Right with probability p and 1-p, respectively.
Let's start with Gill's expected payoffs. If James plays Accept: Gill's expected payoff is 2p-2(1-p)=4p-2If James plays Reject: Gill's expected payoff is -p-(1-p)=-1 The expected payoffs are equal when 4p-2=-1, which gives us p=1/2. So, Gill should play Left and Right with probability 1/2 each. Now let's move on to James' expected payoffs.
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Topman Metal Bucket
Topman ltd is a rubber fabricating company based at North
Industrial Area. The company produce metal buckets for the West
African market and plans to produce 1,000 units of buckets
The Topman Metal Bucket is a high-quality item that is both durable and affordable. It is a popular choice among West African consumers who require sturdy and dependable buckets for their daily tasks.
Topman Metal Bucket Topman Ltd. is a rubber manufacturing firm situated in the North Industrial Area. The firm manufactures metal buckets for the West African market and intends to produce 1,000 units of buckets. The Topman Metal Bucket is made of high-quality metal, making it ideal for storing and carrying heavy loads. The bucket has a comfortable handle and a wide mouth for easy loading and unloading. The bucket is designed to withstand tough weather and usage conditions. The buckets are coated with a protective layer that provides superior corrosion resistance, ensuring the bucket's longevity. It has been tested and approved by international standard authorities. The Topman Metal Bucket is simple to use and maintain, requiring only regular cleaning with a soft cloth and a mild detergent. The bucket may be used for a variety of purposes, including storing and transporting water, sand, and other materials. The Topman Metal Bucket is a high-quality item that is both durable and affordable. As a result, it is a popular choice among West African consumers who require sturdy and dependable buckets for their daily tasks.The probable question may be:
Topman Metal Bucket
Topman ltd is a rubber fabricating company based at North Industrial Area. The company produce metal buckets for the West African market and plans to produce 1,000 units of buckets in the month of January. The bucket requires a single operation and the standard cost for the operation is presented below:
Standard cost card (bucket) GH
Direct material (plastics): 10 kg at GH 0.50 per kg) 5
Direct labour (5hours GH 20 per hours) 100
Variable overheads (3 hours at GH 2 per direct labour) 6
Total standard variable cost 111
Standard contribution margin 29
Standard selling price 140
Budget statement for the month of January GH GH
Sales (1,000 units of buckets at GH 140 per unit) 140,000
Direct materials: (10,000 at GH 0.50) 5,000
Direct labour (4,000 hours GH 20per hour) 80,000
Variable overheads (4,000 hours GH 2 per direct hour) 8,000
93,000
Budget contribution 47,000
Fixed overheads 20,000
Budgeted profit 27,000
T he annual budgeted fixed overheads is GH 240,000 and are assume to be incurred evenly throughout the year.
Actual results for April are:
GH GH
Sales (800 units of buckets at GH 150 per unit) 120,000
Direct materials: (9,000kg at GH 0.60) 5,400
Direct labour (3,500 hours GH 18 per hour) 63,000
Variable overheads (3,500 hours GH 2.50 per direct hour) 8,750
77,150
Contribution 42,850
Fixed overheads 18,000
Profit 24,850
The production overheads are charged to production on the basis of direct labour hours. Actual production and sales are 800 units of buckets.
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