Answer: From expenses within the Accounts & settings.
Explanation:
When using the copy to purchase order feature within an estimate, to turn on USE purchase orders you navigate to expenses under accounts and settings. When you get to the accounts and settings you would see the feature that shows "Expenses" tab. In the Purchase orders section, select the edit icon. Turn on the Use purchase orders options.
Answer:account and settings, expenses, purchase order
Explanation:
What is the difference between feedback and coaching?
Answer:
Coaching is about assisting employees reach their goals for the future. Feedback is about helping employees understand what prevents them from reaching their current goals.
Explanation:
A company has derivatives transactions with Banks A, B, and C which are worth +$20 million, −$15 million, and −$25 million, respectively to the company. How much margin or collateral does the company have to provide? The transactions are cleared bilaterally and are subject to one-way collateral agreements where the company posts variation margin, but no initial margin. The transactions are cleared centrally through the same CCP and the CCP requires a total initial margin of $10 million.
Answer:
1. With Bilateral Clearing, where the company posts variation margin, but no initial margin:
The company has to provide collateral to Banks A, B, and C of $0 million, $15 million, and $25 million respectively.
Therefore, the total collateral required is $40 million.
2. With Central Clearing through the CCP, where the CCP usually requires an initial margin of $10 million:
The derivatives are netted against each other, and the company’s total variation margin is $20 million (–$20 + $15 + $25) in total.
The total margin required (including the initial margin) is, therefore, $30 million ($20 + $10 million).
Explanation:
a) Data and Calculations:
Worth of derivative with Bank A = +$20 million
Worth of derivative with Bank B = -$15 million
Worth of derivative with Bank C = -$25 million
b) In a bilateral clearing, the company and each bank (called market participants) enter into an agreement with each other to cover all outstanding derivative transactions between the two parties. On the other hand, in central clearing, a central clearing party (CCP) stands between the two sides of an OTC derivative transaction in much the same way that the exchange clearing house does for exchange-traded contracts.
How large is my target market?
Tirri Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.50 Direct labor $ 3.85 Variable manufacturing overhead $ 1.55 Fixed manufacturing overhead $ 24,400 Sales commissions $ 1.05 Variable administrative expense $ 0.60 Fixed selling and administrative expense $ 8,800 If the selling price is $28.10 per unit, the contribution margin per unit sold is closest to:
Answer:
$13.55
Explanation:
The contribution margin per unit is computed as;
= Selling price - (Direct materials + Direct labor + Variable manufacturing overhead + Sales commission + Variable administrative expense)
= $28.10 - ($7.50 + $3.85 + $1.55 + $1.05 + $0.60)
= $28.10 - $14.55
= $13.55
Therefore , the contribution margin per unit is $13.55
1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $28,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation.
Answer:
1. a. Allocated prices
First add the market values = 444,150 + 255,150 + 56,700 + 189,000 = $945,0
00
Building allocated price Land allocated price
= 444,150/ 945,000 * 830,000 = 255,150/945,000 * 830,000
= $390,100 = $224,100
Land improvement allocated price Four vehicles allocate price
= 56,700/945,000 * 830,000 = 189,000/945,000 * 830,000
= $49,800 = $166,000
b. Journal entry
Date Account Details Debit Credit
Jan. 1, 2017 Building $390,100
Land $224,100
Land improvement $49,800
Vehicles $166,000
Cash $830,000
2. Depreciation on building using straight-line method.
= (390,100 - 28,000) / 15
= $24,140
3. Depreciation on land improvements using double declining method.
First do straight line:
= 49,800/ 5 years
= $9,960
Straight line rate of depreciation = 9,960/49,800 = 20%
Double declining will be twice that rate = 40%
Depreciation = 40% * 49,800
= $19,920
In its income statement for the year ended December 31, 2017, Darren Company reported the
following condensed data.
Salaries and wages expense $465,000 Loss on disposal of plant assets $83,500
Cost of goods sold 987,000 Sales revenue 2,210,000
Interest expense 71,000 Income tax expense 25,000
Interest revenue 65,000 Sales discounts 160,000
Depreciation expense 310,000 Utilities expense 110,000
Instructions
(a) Prepare a multi-step income statement.
(b) Calculate the profit margin and gross profit rate.
(c ) In 2016, Darren had a profit margin of 5%. Is the decline in 2017 a cause for concern?
(Ignore income tax effects.)
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
(a) DARREN COMPANY
Income Statement
For the Year Ended December 31, 2017
Sales
Sales revenue $2,210,000
Less: Sales discounts $160,000
Net Sales $2,050,000
Cost of goods sold $987,000
Gross profit $1,063,000
Operating expenses
Salaries and wages expense $465,000
Depreciation expense $310,000
Utilities expense $110,000
Total operating expenses $885,000
Income from operations $178,000
Other revenues and gains
Interest revenue $65,000
Other expenses and losses
Loss on disposal of plant assets 83,500
Interest expense 71,000 154,500
Income before income taxes 88,500
Income tax expense 25,000 28%
Net income $63,500
(b) Profit margin
Net income $63,500
Net Sales 2,050,000
3.10%
Gross profit rate
Gross profit $1,063,000
Net sales $2,050,000
51.9%
After you have completed E5-8 , consider the following additional question.
1. Assume that cost of goods changed to $1,015,000 and that the income tax rate is 28%.
What impact does this change have on the multi-step income statement and the
profitability ratios?
Answer:
Part a
Darren Company
Multi-step income statement
Sales
Sales revenue $2,210,000
Less: Sales discounts ($160,000)
Net Sales $2,050,000
Cost of goods sold ($987,000)
Gross profit $1,063,000
Operating expenses
Salaries and wages expense $465,000
Depreciation expense $310,000
Utilities expense $110,000
Total operating expenses ($885,000)
Income from operations $178,000
Other revenues and gains
Interest revenue ($65,000)
Other expenses and losses
Loss on disposal of plant assets $83,500
Interest expense $71,000 ($89,500)
Income before income taxes $88,500
Income tax expense 25,000 28% ($25,000)
Net income $63,500
Part b
Darren Company
Profit margin = 3.10 % and gross profit rate = 51.85 %
Part c
Change in profit margin : The Profit Margin has fallen from 5% to 3.10 % in 2017 by 2.10% . The cause of this decline is a concern and must be investigated. The Profit margin rate measure the success with respect of earnings on sales thus more investigations must be done on what caused the earnings to decline in 2017.
Part 1
Cost of Goods Sold has increased by $28,000 ($1,015,000 -$987,000). Income tax rate has not changed.
a. Impact of the change on multi-step income statement
The items of Gross Profit and Income from Operations will decline by $28,000.
b. Impact of the change on profitability ratios
The Profit ratios will decline. Profit margin will be 1.73 %. Gross Profit margin will be 50.49 %
Explanation:
Multiple Step Income Statement shows separately the Operating Income and the Net Income. Operating Income being Income derived from Primary Activities of the Company whilst the Net Income includes the Secondary Activities of the Company such as Income taxes or Sale of assets.
Other Workings :
Profit margin = Net Income / Net Sales x 100
= $63,500 / $2,050,000 x 100
= 3.10 %
Gross Profit rate = Gross Profit / Net Sales x 100
= $1,063,000 / $2,050,000 x 100
=51.85 %
The Total Revenue and Net Earnings are shown individually on the Several Stage Financial Statements. Operating income comes from the company's main activities, whereas net earnings come from the industry's support functions, such as taxable income and divestments.
The income statement has been attached below.
Part. B.
Darren Company
Profit margin = 3.10 % and gross profit rate = 51.85 %
Part. C.
Profitability has dropped by 2.10 percent from 5 percent to 3.10 percent in the year 2017. The basis for this drop is a point of anxiety that needs to be questioned.
Because the gross margin rate evaluates achievement in terms of income on selling, more analysis into what prompted the profitability to drop in 2017 is required.
Part 1
Cost of Goods Sold has boost up by $28,000 ($1,015,000 -$987,000).
The income tax rate has not changed.
a. Impact of the change on the multi-step income statement
The items of Gross Profit and Income from Operations will reduce by $28,000.
b. Impact of the change on profitability ratios
The Profit ratios will decline.
The profit margin will be 1.73 %.
The Gross Profit margin will be 50.49 %
Working Notes:
Profit margin = [tex]\frac{ \text{Net Income}}{ \text{Net Sales}} \times 100[/tex]
= [tex]\frac{ \$63,500}{ \$2,050,000}\times 100[/tex]
= 3.10 %
Gross Profit rate = [tex]\frac{\text{Gross Profit}}{\text{Net Sales}} \times 100[/tex]
= [tex]\frac{ \$1,063,000 }{ \$2,050,000}\times 100[/tex]
=51.85 %
To know more about the calculation of the income statement and the profits, refer to the link below:
https://brainly.com/question/16501306
Cordell Inc. experienced the following events in Year 1, its first year of operation:
Received $45,000 cash from the issue of common stock.
Performed services on account for $73,000.
Paid a $4,500 cash dividend to the stockholders.
Collected $51,000 of the accounts receivable.
Paid $45,000 cash for other operating expenses.
Performed services for $11,000 cash.
Recognized $1,500 of accrued utilities expense at the end of the year.
Required
a. & c. Identify the events that result in revenue or expense recognition and those which affect the statement of cash flows. In the Statement of Cash Flows column, use OA to designate operating activity, FA for financing activity, IA for investing activity and NA to indicate the element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign.)
Answer:
Received $45,000 cash from the issue of common stock.
Revenue Expenses Statement of Cash-flow
- - $45,000 FA
Performed services on account for $73,000.
Revenue Expenses Statement of Cash-flow
$73,000 - NA NA
Paid a $4,500 cash dividend to the stockholders.
Revenue Expenses Statement of Cash-flow
- - -$4,500 IA
Collected $51,000 of the accounts receivable.
Revenue Expenses Statement of Cash-flow
- - $51,000 OA
Paid $45,000 cash for other operating expenses.
Revenue Expenses Statement of Cash-flow
- $45,000 -$45,000 OA
Performed services for $11,000 cash.
Revenue Expenses Statement of Cash-flow
$11,000 - - OA
Recognized $1,500 of accrued utilities expense at the end of the year.
Revenue Expenses Statement of Cash-flow
- $1,500 - NA
Departmental overhead rates are preferred over plantwide rates when: Multiple Choice The plant makes a single product. The products use different amounts of different processes in different departments. There are a number of different products in the plant which go through the same processes. The plant has a complex production process for a small number of products that go through the same production processes.
Answer:
The products use different amounts of different processes in different departments
Explanation:
Plant Wide overhead rates is basically a single rate that is used to assign to the company's manufacturing overhead costs. This is best used when a company produces single product. On the other hand, if the manufacturing of different products with use of different processes is being done then using plant wide rate (which applies only a single rate) might not be appropriate.
The activities of the diversified products would have a high correlation with regard to the input of overheads. Therefore, the departmental overhead rates are preferred when the products use different amounts of different processes in different departments.
A partial listing of costs incurred at Gilhooly Corporation during September appears below: Direct materials $183,000 Utilities, factory $9,000 Administrative salaries $90,000 Indirect labor $25,000 Sales commissions $33,000 Depreciation of production equipment $25,000 Depreciation of administrative equipment $32,000 Direct labor $124,000 Advertising $148,000 The total of the manufacturing overhead costs listed above for September is: Group of answer choices $669,000 $366,000 $34,000 $59,000
Answer:
Manufacturing overhead= $59,000
Explanation:
Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured. We need to identify the indirect costs incurred in production. It includes the depreciation of factory equipment.
Manufacturing overhead= Utilities, factory + Indirect labor + Depreciation of production equipment
Manufacturing overhead= 9,000 + 25,000 + 25,000
Manufacturing overhead= $59,000
DRK, Inc., has just sold 100,000 shares in an initial public offering. The underwriter’s explicit fees were $60,000. The offering price for the shares was $40, but immediately upon issue, the share price jumped to $44. a. What is the total cost to DRK of the equity issue? b. Is the entire cost of the underwriting a source of profit to the underwriters? multiple choice Yes No
Answer: a. $460,000 ; b. No
Explanation:
a. What is the total cost to DRK of the equity issue?
First, we calculate the implicit cost per share which will be:
= $44 - $40 = $4.
Therefore, the total implicit cost will be:
= $4 × 100,000
= $400,000
Therefore, total cost to DRK of the equity issue will be:
= Implicit cost + Explicit cost
= $400,000 + $60,000
= $460,000
b. Is the entire cost of the underwriting a source of profit to the underwriters?
No. The entire cost of the underwriting would not be a source of profit to the underwriters. This is because the cost of underpricing isn't included.
In a market system, the allocation of scarce goods involves the consideration of multiple choice 1 what must be sacrificed in using a resource for its next-best use. identifying the possibility of professional advancement. the time required to pursue an economic activity. the dollar cost of any good or service.
Answer:
what must be sacrificed in using a resource for its next-best use
Explanation:
The market cost would be managed by the clients also it would remember the advantage that is best Also it is remembered in order to support the satisfaction to their own decisions.
So in the case of the market system, the allocation of the scarcity goods would be based on the opportunity cost i.e. to be sacrificed for the next best usage
The chart below gives prices and output information for the country of Utopia. Use this information to calculate real and nominal GDP for both years. Use 2001 as the base year.
Year 2000 2001
Price Quantity Price Quantity
Ice Cream $7.00 600 $3.00 400
Blue Jeans $70.00 20 $20.00 90
Laptops $300.00 5 $300.00 5
2000 nominal GDP = $_________
2001 nominal GDP = $_________
2000 real GDP = $_________
2001 real GDP = $_________
Answer and Explanation:
The computation is shown below:
As we know that
Nominal GDP = Sum of (Present Year Price × Present Year Quantity)
And,
Real GDP = Sum of (Base Year Price × Present Year Quantity)
Now
(a) Nominal GDP, 2000 is
= $[(7 × 600) + (70 × 20) + (300 × 5)]
= $4,200 + $1,400 + $1,500
= $7,100
(b) Nominal GDP, 2001 is
= $[(3 × 400) + (20 × 90) + (300 × 5)]
= ($1,200 + $1,800 + $1,500)
= $4,500
(c) Real GDP, 2000 is
= $[(3 × 600) + (20 × 20) + (300 × 5)]
= $1,800 + $400 + 1,500
= $3,700
(d) Real GDP, 2001 is
= $[(3 × 400) + (20 × 90) + (300 × 5)]
= $1,200 + $1,800 + $1,500
= $4,500
The Bradley Corporation produces a product with the following costs as of July 1, 20X1: Material $4 per unit Labor 4 per unit Overhead 2 per unit Beginning inventory at these costs on July 1 was 4,250 units. From July 1 to December 1, 20X1, Bradley Corporation produced 14,500 units. These units had a material cost of $2, labor of $4, and overhead of $2 per unit. Bradley uses LIFO inventory accounting. a. Assuming that Bradley Corporation sold 18,000 units during the last six months of the year at $13 each, what is its gross profit
Answer:
Gross profit $83,000
Explanation:
The computation of the gross profit is as follows:
Sales (18,000 units × $13) $234,000
Less: Material
(14,500 × $2) -$29,000
(18,000 - 14,500) × $4 -$14,000
Less; labor
(14,500 × $4) -$58,000
(18,000 - 14,500) × $4 -$14,000
Less: Overhead
(14,500 × $2) -$29,000
(18,000 - 14,500) × $2 -$7,000
Gross profit $83,000
Consider Pacific Energy Company and U.S. Bluechips, Inc., both of which reported earnings of $967,000. Without new projects, both firms will continue to generate earnings of $967,000 in perpetuity. Assume that all earnings are paid as dividends and that both firms require a return of 13%.
A. What is the current PE ratio for each company?
B. Pacific Energy Company has a new project that will generate additional earnings of $117,000 each year in perpetuity. Calculate the new PE ratio of the company.
C. Atlantic Energy has a new project that will increase earnings by $217,000 in perpetuity. Calculate the new PE ratio of the firm.
Answer and Explanation:
The computation is shown below:
a. Current PE ratio is
For Pacific energy company
= Price ÷ Earnings
= ($967,000 ÷ 0.13) ÷ ($967,000)
= 7.69 times
For U.S Bluechips
= Price ÷ Earnings
= ($967,000 ÷ 0.13) ÷ ($967,000)
= 7.69 times
b. The new PE ratio is
= Price ÷ Earnings
= (($967,000 + $117,000) ÷ 0.13) ÷ ($967,000)
= 8.62 times
c. The new PE ratio is
= Price ÷ Earnings
= (($967,000 + $217,000) ÷ 0.13) ÷ ($967,000)
= 9.42 times
Sumner sold equipment that it uses in its business for $31,200. Sumner bought the equipment a few years ago for $79,400 and has claimed $39,700 of depreciation expense. Assuming that this is Sumner's only disposition during the year, what is the amount and character of Sumner's gain or loss
Answer:
Particulars Amount
Purchase price of equipment $79,400
Less: Depreciation expenses $39,700
Value of equipment $39,700
Particulars Amount
Sales price of equipment $31,200
Value of equipment $39,700
Section 1231 Ordinary loss -$8,500
The concept of demand is best described as the quantity of a good or a service that people will offer for sale at different possible prices. the additional satisfaction derived from a quantity of goods and services obtained when income increases. the total satisfaction that consuming a good provides people at different prices. the quantity of a good or service that consumers will substitute when the price of a good changes.
Answer:
the quantity of a good or a service that people are willing and able to purchase at different possible prices.
Explanation:
The demand concept would be refer to the various quantity amount in which the people are willing and able to buy at various prices so the demand concept deals with the goods or service quantity in which the purchaser would purchase at various prices that can be possible
Hence, the above represent the answer
[The following information applies to the questions displayed below.] Laser Delivery Services, Inc. (LDS), was incorporated January 1. The following transactions occurred during the year: Received $27,000 cash from the company's founders in exchange for common stock. Purchased land for $9,000, signing a two-year note (ignore interest). Bought two used delivery trucks at the start of the year at a cost of $9,000 each; paid $2,000 cash and signed a note due in three years for $16,000 (ignore interest). Paid $800 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. Stockholder Jonah Lee paid $220,000 cash for a house for his personal use. Record the effects of each item using a journal entry.
Answer:
a.
Date Account Details Debit Credit
Cash $27,000
Common Stock $27,000
b.
Date Account Details Debit Credit
Land $9,000
Notes Payable $9,000
c.
Date Account Details Debit Credit
Vehicles $18,000
Cash $2,000
Notes Payable $16,000
d.
Date Account Details Debit Credit
Vehicles $800
Cash $800
e. This does not require a journal entry as it is a personal transaction.
At Medallion Industries, variable cost per unit is budgeted to be $8.00 and fixed cost per unit is budgeted to be $5.00 in a period when 4,000 units are produced. What is the expected total cost of the units produced at Medallion, if instead, production is actually 5,100 units
Answer:
Total cost= $60,800
Explanation:
Giving the following information:
For 4,000 units:
Unitary variable cost= $8
Unitary fixed cost= $5
First, we need to calculate the total fixed cost:
Total fixed cost= 5*4,000= $20,000
Now, we can determine the total cost for 5,100 units:
Total cost= 5,100*8 + 20,000
Total cost= $60,800
What type of hazard could occur by wearing jewelry while preparing food
Answer:
it can fall into the food
During the current year, Alpha sold inventory to Beta for $100,000. As of year end, Beta had resold only 60 percent of these intra-entity purchases. Alpha sells inventory to Beta at the same markup it uses for all of its customers. What is the total for consolidated cost of goods sold
Answer:
a. $173,000
Explanation:
Missing word "Alpha Company owns 80 percent of the voting stock of Beta Company. Alpha and Beta reported the following account information from their year-end separate financial records: Alpha Beta Inventory $95,000 $88,000 Sales Revenue 800,000 300,000 Cost of Goods Sold 600,000 180,000 During the current year, Alpha sold inventory to Beta for $100,000."
Percentage of profits Alpha charge to other customers = ($800,000 - $600,000) / $800,000 = 25% of sales
Stock held at year end by beta from the purchases made from Alpha = $100,000 * 40% =$40,000
Profit involved in stock held by beta from the purchases made from Alpha = $40,000 * 25% = $10,000
So, Value of stock of Beta = $88,000 - $10,000 = $78,000
Hence, Total for consolidated inventory = $95,000 + $78,000 = $173,000
You have decided to invest $15,000 in a money market fund that pays you interest at the annual rate of 6% and compounds interests monthly. Your plan is to take out your money in a year and pay taxes on the interest earned. If the corresponding tax rate is 20%, how much money in total will you expect to receive in a year after paying taxes.
Answer:
$15,869.66
Explanation:
The formula for determining the future value of the amount invested is :
FV = PV x (1 + r / m)^mn
FV = Future value
PV = Present value
R = interest rate
N = number of years
m = number of compounding
$15,000 x (1+ 0.06/12)^12 = $15,925.17
Interest earned = future value - present value
$15,925.17 - $15,000 = $925.17
Tax paid on interest earned = 0.06 x $925.17 = $55.51
Interest after taxes = $925.17 - $55.51 = $869.66
Total amount expected = $15,000 + $869.66 = $15,869.66
All of the following are examples of managerial accounting activities except ________.
a. preparing external financial statements in compliance with GAAP.
b. deciding whether or not to use automation.
c. making equipment repair or replacement decisions.
d. measuring costs of production for each product produced
Answer:
a. preparing external financial statements in compliance with GAAP.
Explanation:
Managerial accounting also known as cost accounting is an accounting technique focused on identification, measurement, analyzing, interpretation, and communication of financial information to managers for better decisions making and pursuit of the organization's goals.
Managerial accounting information includes all of the following performance evaluations, for example budget-to-actual reports, cost reports and budgets except financial statements prepared in accordance with generally accepted accounting principles.
Hence, managerial accounting information is normally provided to managers whenever they need or require it because they are a part of the internal decision makers. Managerial accounting typically comprises of both non-monetary and monetary informations about an organization.
All of the following are examples of managerial accounting activities;
I. Deciding whether or not to use automation.
II. Making equipment repair or replacement decisions.
III. Measuring costs of production for each product produced.
Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. The $250 Edison spends to purchase medical services from the Medical Clinic The mojito Hilary receives Hilary's labor The $200 per week Edison earns working for Little Havana
Answer:
1. The mojito Hilary receives
2. The $200 per week that Edison receives working for Little Havana
Explanation:
We are to pick the options that represents a flow from a firm to household.
There is a flow of labor from the household to the firm which results In a flow of goods or wages from the firm to the household.
1. The mojito that Hilary receives gives a flow of goods that is moving from the firm to the household.
2. The $200 per week that Edison is getting for working for Little Havana is a flow of money from the firm to edison for the services he renders at the firm. This here is a flow of money from the firm to the household
Assume that you live in California and are on vacation, traveling by car from California to Texas. You are injured in a motel room when the bed on which you are sleeping collapses, causing you to fall to the floor. You suffer substantial back and leg injuries, requiring many medical treatments and causing you to miss work for 15 weeks. Your medical bills total $50,000 and your lost wages total $15,000. You intend to sue the owner of the Texas motel.
Required:
a. Can you bring your case in federal court? Why or why not?
b. Can you commence the case in California? What additional information might you need to answer this question?
c. At the end of the trial, the jury awards you $100,000 ($50,000 for medical, $15,000 for lost wages and $35,000 for punitive damages). After the trial, the attorney for the hotel approaches and offers to settle the case for $50,000. Should you consider accepting the settlement? Why or why not?
Answer:
a. No. A state court will do a better job in this case because it exercises unlimited jurisdiction. Moreover, you can only bring your case to a federal court if the amount of your claim is up to $75,000 or the issue is exclusive to the federal court. This is not the case here.
b. Yes and No. We need some additional information about the accident location to help answer this question definitively.
c. No. You should not consider accepting the offered settlement. The jury award is meant to pay for your medical bills and also to help you recover financially as though the accident did not happen in the first place. Accepting any lesser amount after the judgment is rendered is in bad taste. The other party should have negotiated to settle out of court before the final judgment was rendered. But it did not. So, go with the jury award.
Explanation:
a) Data and Calculations:
Missed work for 15 weeks
Total medical bills incurred = $50,000
Total lost wages incurred = $15,000
Jury award = $100,000 ($50,000 for medical, $15,000 for lost wages and $35,000 for punitive damages)
Settlement offer = $50,000
Beta Alpha Psi, the accounting honorary fraternity, held a homecoming party. The fraternity expected attendance of 80 persons and prepared the following budget: Room rental .. $ 170 Food ....... 660 Entertainment .. 570 Decorations ... 210 Total ...... $1,610 After Beta Alpha Psi paid all the bills for the party, the total cost came to $1,885 or $275 over budget. Details are $170 for room rental; $875 for food; $570 for entertainment; and $270 for decorations. Ninety-six persons attended the party. 1. Prepare a performance report for the party that shows how actual costs differed from the budget. That is, include in your report the budgeted amounts, actual amounts, and variances. 2. Suppose the fraternity uses a management-by-exception rule. Which costs deserve further examination
Answer:
Beta Alpha Psi
1. Performance Report for the party:
Budget Actual Variance
Expected attendance (persons) 80 96 16
Room rental .. $ 170 $170 $0
Food ....... 660 875 $215 U
Entertainment .. 570 570 $0
Decorations ... 210 270 $60 U
Total ...... $1,610 $1,885 $275 U
2. The costs that deserve further examination are Food and Decorations. The party overspent on these items.
Explanation:
Since 96 persons attended the party, the food cost should have been = $792 ($660/80 * 96), which is the flexible budget cost. The cost of decorations should have remained $210 unless there were improper estimates of the items required for the decorations and the size of the party venue.
1. Friedman distinguishes between the two concepts that (a) businesses really do act in ways to maximize profit and (b) businesses have a moral responsibility (or, as he puts it, a social responsibility) to act to maximize profit. How does he defend the latter position? (See both the Friedman and Sandbu readings)
Explanation:
Friedman defends the position that companies have a social responsibility to act to maximize profit, in the sense that, the primary function of companies is to generate profit. The author goes against the growing opinions in society that companies must have social responsibility, that is, they need to create a positive and sensitive corporate image to please political and society interests and counter or even soften the words and actions its central purpose, which is profit generation. For him, social responsibility cannot be politicized in order to be an obligation of companies, as it limits freedom and interests arising from the business.
Kostelnik Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $555,000, variable manufacturing overhead of $2.10 per machine-hour, and 74,000 machine-hours. The company has provided the following data concerning Job A496 which was recently completed:
Number of units in the job 20
Total machine hours 80
Direct materials $500
Direct labor cost $2,160
The amount of overhead applied to job A496 is closes to____.
A) $1,256.
B) $632.
C) $944.
D) $312.
Answer:
Allocated MOH= $768
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (555,000/74,000) + 2.1
Predetermined manufacturing overhead rate= $9.6 per machine hour
Now, we can allocate overhead to Job A496:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 9.6*80
Allocated MOH= $768
Requirement Assume that all supplies purchased were used in operations in the year of purchase. Rental payments pertain to rental space used in the year of payment. 1. Prepare an income statement for for and under both the cash and the accrual basis of accounting. 2. Compute operating cash flow for both years under cash and accrual bases.
Question Completion:
You are provided the following information for the Del Campo Consulting Associates.
2019 2018
Service revenue (accrual basis) $250,000 $185,000
Cash collected from clients 97,000 80,000
Operating expenses:
Salary expense (accrual basis) 12,000 16,500
Purchased supplies for cash 4,000 2,500
Purchased supplies on account 1,000 1,500
Depreciation expense 2,000 2,000
Rent paid in cash 7,000 3,000
Prepaid insurance 5,500 0
Answer:
Del Campo Consulting Associates
Accrual Basis Cash Basis
Income Statements 2019 2018 2019 2018
Service revenue $250,000 $185,000 $97,000 $80,000
Operating Expenses:
Salary expense 12,000 16,500 0 0
Supplies 5,000 4,000 4,000 2,500
Depreciation 2,000 2,000 0 0
Rent 7,000 3,000 7,000 3,000
Prepaid Insurance 0 0 5,500 0
Total operating expenses $26,000 $25,500 $16,500 $5,500
Net income $224,000 $159,500 $80,500 $74,500
2. Compute Operating Cash Flow under cash and accrual basis:
Accrual Basis Cash Basis
Operating Cash Flow 2019 2018 2019 2018
Cash collected from clients $80,500 $74,500 $80,500 $74,500
Purchased supplies (4,000) (2,500) (4,000) (2,500)
Rent paid in cash (7,000) (3,000) (7,000) (3,000)
Prepaid insurance (5,500) (5,500)
Net operating cash flows $64,000 $69,000 $64,000 $69,000
Explanation:
The net income reported the accrual basis and that reported under the cash basis are different. The accrual basis considers all revenue whether actually received or not, the cash basis only considers cash received from clients in each period. However, the net operating cash flows under the two bases are the same. The reason for this is that only actual cash flows are considered under the two bases.
Economists develop models to A. capture every detail of the real world. B. justify the assumptions they make about%E2%80%8B people's behavior. C. make their arguments more realistic. D. help us understand economic phenomena in the real world.
Answer:
D
Explanation:
An economic model is a caricature of reality. It allows users to observe, understand and predict economic phenomena. Economic models don't capture every detail of the real world
Examples of economic models include :
the production possibility frontierthe Keynesian IS/LM modelthe Mundell-Fleming model.The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
Parks Corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. The investment would provide cash inflows of $2,000 per year for six years. The working capital would be released for use elsewhere when the project is completed. If the company's discount rate is 10%, the investment's net present value is closest to (Ignore income taxes.): Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.
Answer:
$4,355.26
Explanation:
The net present value is the present value of future cash flows expected from the project minus the initial investment outlay
initial investment outlay=working capital investment = -$10,000
Years 1-5 cash inflow=$2,000
Year 6 cash inflow=normal cash inflows+release of working capital
Year 6 cash inflow=$2,000+$10,000=$12,000
the present value of a future cash flow=cash flow/(1+r)^n
n is 1 for year cash inflow 2 for year 2 cash inflow, 3 for year 3 cash inflow and so on
NPV=-$10,000+$2,000/(1+10%)^1+$2,000/(1+10%)^2+$2,000/(1+10%)^3+$2,000/(1+10%)^4+$2,000/(1+10%)^5+$12,000/(1+10%)^6
NPV=$4,355.26