A company enters a futures contract to sell 50,000 units of a commodity for 70 cents per unit. The initial margin is $4,000 and the maintenance margin is $3,000. What change in the futures price (per unit) would lead to a margin call?

Answers

Answer 1

Answer:

72 cents

Explanation:

There is going to be a margin call when greater than 1000 dollars has been lost from the margin. Then the balance in the account is going to be smaller than that of the maintenance margin. so 1 cent increase in the price would bring about a lossof

0.01 * 50000

= $500

if the increase in the future price is about 2 cents then there would be a margin call.

70+2 = 72cents, this is when there would be a margin call


Related Questions

Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.50 per mile driven. Joyce has determined that if she drives 3,300 miles in a month, her total operating cost is $875. If she drives 4,400 miles in a month, her total operating cost is $1,095.
Required:
1. Using the high-low method, determine Joyce's variable and fixed operating cost components.
2. Complete the contribution margin income statement for Joyce's service assuming she drove 3,700 miles last month. (Assume this falls within the relevant range of operations).

Answers

Answer:

Variable operating cost per mile = $0.2

Fixed operating cost = $215

Income  at 3,700 miles = $895

Explanation:

The variable cost per mile =

(cost at high activity - cost at low activity)/(high activity - low activity)

Fixed operating cost = cost at high activity - (VC/mile × high activity)

So we can apply the formulae as follows:

The variable cost per mile = (1,095 - 875)/(4,400-3,300)= $0.2 per mile

Fixed cost = $1,095 - (0.2×4,400)=$215

Variable operating cost per mile = $0.2

Fixed operating cost = $215

Contribution margin income statement

                                                                                $

Sales value = (3,700 miles × $0.50 per mile)       1,850

Variable cost    (3,700×  $0.2)                               (740)

Contribution                                                             1,110

Less Fixed cost                                                       (215)

Income                                                                    895

Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 11 percent, has a YTM of 9 percent, and has 11 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 9 percent, has a YTM of 11 percent, and also has 11 years to maturity. The bonds have a $1,000 par value. What is the price of each bond today

Answers

Answer:

Results are below.

Explanation:

To calculate the price of each bond, we need to use the following formula:

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond X:

Coupon= (0.11/2)*1,000= $55

YTM= 0.09/2= 0.045

Years to maturiy= 11 years

Bond Price​= 55*{[1 - (1.045^-11)] / 0.045} + [1,000/(1.045^11)]

Bond Price​= 469.1 + 616.2

Bond Price​= $1,085.3

Bond Y:

Coupon= (0.09/2)*1,000= $45

YTM= 0.11/2= 0.055

Years to maturiy= 11 years

Bond Price​= 45*{[1 - (1.055^-11)] / 0.055} + [1,000/(1.045^11)]5

Bond Price​= 364.16 + 554.91

Bond price= $919.07

The personality and unique character of a group is best known as its ________ and includes the group's assumptions, values, beliefs, norms, ideologies, and the structure of its social, political, economic, and religious institutions.
A) group potency
B) group entitativity
C) group identity
D) culture

Answers

Answer:

d as its not any of the others and culture makes most sense

Explanation:

what are the types of enterpreneuship​

Answers

Answer:

Explanation:Empreendedorismo Social.

Empreendedorismo de Negócios.

Empreendedorismo Corporativo ou Intraempreendedorismo.

Empreendedorismo Feminino.

Empreendedorismo Individual.

Empreendedorismo Verde.

Empreendedorismo Informal.

Empreendedorismo de Franquias.

Answer:

Small business entrepreneurship. A majority of businesses are small businesses. People interested in small business entrepreneurship are most likely to make a profit that supports their family and a modest ...

Large company entrepreneurship. Large company entrepreneurship is when a company has a finite amount of life cycles. ...

Scalable startup entrepreneurship. This kind of entrepreneurship is when entrepreneurs believe that their company can change the world.

Social entrepreneurship. An entrepreneur who wants to solve social problems with their products and services is in this category of entrepreneurship.

Innovative entrepreneurship. Innovative entrepreneurs are people who are constantly coming up with new ideas and inventions. They take these ideas and turn them into business ventures.

Explanation:

If x follows a normal distribution with a mean of 10 and
standard deviation of 3; find out the following
A) Find the value of x = xº such that P(x 5 xº) = 5%
B) Find the value of x = xº such that P(x 2 x°) = 1%

Answers

Answer:

The answer is below

Explanation:

The z score is used to determine by how many standard deviations the raw score is above or below the mean. The z score is given by:

[tex]z=\frac{x-\mu}{\sigma} \\\\where\ x=raw\ score, \mu=mean,\ \sigma=standard\ deviation[/tex]

a) P(x ≥ x⁰) = P(z ≥ z⁰) = 1 - P(z < z⁰)

1 - P(z < z⁰) = 1%

P(z < z⁰) = 99%

z⁰ = 2.33

z° = (x° - μ)/σ

2.33 = (x° - 10)/3

x⁰ = 16.99

b) P(x ≥ x⁰) = P(z ≥ z⁰) = 1 - P(z < z⁰)

1 - P(z < z⁰) = 10%

P(z < z⁰) = 90%

z⁰ = 1.28

z° = (x° - μ)/σ

1.28 = (x° - 10)/3

x⁰ = 13.84

c) P(x ≥ x⁰) = P(z ≥ z⁰) = 1 - P(z < z⁰)

1 - P(z < z⁰) = 5%

P(z < z⁰) = 95%

z⁰ = 1.65

z° = (x° - μ)/σ

1.65 = (x° - 10)/3

x⁰ = 14.95

Windsor, Inc. reported net income of $200,980 for 2022. Windsor, Inc. also reported depreciation expense of $34,880 and a loss of $4,630 on the disposal of plant assets. The comparative balance sheets show an increase in accounts receivable of $14,040 for the year, a $16,780 increase in accounts payable, and a $4,390 increase in prepaid expenses.

Required:
Prepare the operating activities section of the statement of cash flow for 2022.

Answers

Answer and Explanation:

The preparation of the operating activities section is presented below;

Cash flows from operating activities

Net income  $200,980.00

Adjustments made

Depreciation expense  34,880.00  

Loss on sale of plant asset $4,630.00  

Increase in accounts receivable $(14,040.00)  

Increase in accounts payable $16,780.00  

Increase in prepaid expense $(4,390.00)  

Net cash from Operating Activities $238,840.00

Based on your understanding of bond ratings and bond-rating criteria, which of the following statements is true?A) BBB bonds usually have the lowest yields in the bond markets.B) US government bonds usually have the lowest yields in the bond markets.

Answers

Answer: US government bonds usually have the lowest yields in the bond markets.

Explanation:

Based on the understanding of bond ratings and bond-rating criteria, it should be noted that the US government bonds usually have the lowest yields in the bond markets.

The statement that "BBB bonds usually have the lowest yields in the bond markets" is incorrect.

This trait of a successful entrepreneur is important for multi-tasking. energy
dedication
well-rounded leader
risk-taking

Answers

Answer:

energy

Explanation:

An entrepreneur refers to an individual who sees a need or discovers a problem in a society and innovatively proffers a solution using brilliant ideas or entrepreneurial thinking.

The following are five (5) characteristics of an entrepreneur;

1. Innovative: it can be defined as a quality possessed by an individual or group of people such as an entrepreneur and typically involves the process of improving on an existing product or ideas.

2. Passionate: believing in a course and one's ability to achieve much more at a business.

3. Risk-Taker: he or she is confident enough to venture into risky businesses with the hope of an expected success.

4. Self-confident: he or she is bold and believes in his or her abilities to excel.

5. Well-rounded leader: it involves being compassionate, fun, organized and intelligent as a successful entrepreneur.

Energy can be defined as the ability (capacity) to do work.

Hence, energy is one of the traits of a successful entrepreneur and it is important for multi-tasking i.e performing multiple tasks at the same time.

In a society, the role of an entrepreneur is mainly focused on bringing the four (4) factors of production together and to take the risks of producing output, so as to generate revenue through sales and make economic profits in the long-run.

Widmer Company had gross wages of $187,000 during the week ended June 17. The amount of wages subject to social security tax was $168,300, while the amount of wages subject to federal and state unemployment taxes was $23,000. Tax rates are as follows:

Social security 6%
Medicare 1.5%
State unemployment 5.4%
Federal unemployment 0.8%

The total amount withheld from employee wages for federal taxes was $48,000.

Required:
a. Journalize the entry to record the payroll for the week of June 17.
b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.

Answers

Answer:

a.

Date         Account Title                                                   Debit             Credit

June 17    Wages expense                                              $187,000

                Social Security tax payable                                                 $10,098

                Medicare tax payable                                                          $2,805

                 Employee Federal Income Tax payable                           $48,000

                 Wages payable                                                                  $126,097

Working

Social security = 6% * 168,300 = $10,098

Medicare = 1.5% * 187,000 = $2,805

b.

Date         Account Title                                                       Debit           Credit

June 17     Payroll Tax Expense                                       $14,329

                 Social Security tax payable                                                 $10,098

                Medicare tax payable                                                          $2,805

                State Unemployment tax payable                                       $1,242

                Federal Unemployment tax payable                                   $   184

Working

State Unemployment tax payable = 23,000 * 5.4% = $1,242

Federal Unemployment tax payable = 23,000 * 0.8% = $184

Amazon Corporation owns machinery with a book value of $760,000. It is estimated that the machinery will generate future cash flows of $700,000. The machinery has a fair value of $560,000. Amazon should recognize a loss on impairment of:_______.

Answers

Answer: $200,000

Explanation:

The loss on impairment refers to the difference between the carrying or book value of an asset and the fair/ recoverable value of same.

Loss on impairment = Book value - Fair value

= 760,000 - 560,000

= $200,000

The value of the machinery would fall by $200,000 to tally it to its fair value.

Company Baldwin invested $50,460,000 in plant and equipment last year. The plant investment was funded with bonds at a face value of $33,582,566 at 13.7% interest, and equity of $16,877,434. Depreciation is 15 years straight line. For this transaction alone which of the following statements are true?

a. Depreciation increased by $3,364,000.
b. Since the new plant was funded with debt and equity, on the Balance sheet Retained Earnings decreased by $16,741,282, the difference between the investment $50,460,000 and the bond $33,718,718.
c. On the Balance sheet, Long Term Debt changed by $33,718,718.
d. Cash was pulled from retained earnings to cover the $16,741,282 difference between the plant purchase and bond issue.
e. Cash went down by $50,460,000 when the plant was purchased.
f. Buying the plant had no net effect on the Cash account, because the plant was paid for by the bond plus retained earnings.
g. Cash went up when the Bond was issued by $33,718,718.
h. On the Balance sheet, Plant & Equipment increased by $50,460,000.

Answers

Answer:

a. true

b. false

c. true

d. false

e. true

f. false

g. true

h. true

Explanation:

a. we solve for depreciation

$50,460,000/15

= $3364000

this is true

b. retained earnings have no roles to play in this option. false

c. The long term debt has been sen to chaange by

50460000-16741282

= $33718718

true

d. This is false retained earnings have no role to play here.

e. This is true because this is the amount that was used to purchase the plant

f. false since retained earning has nothing to do here.

g. this is true also. the face value of the bond is $33,718,718.

h. this is true. since palnt and equipment is $5046000

What is the loan balance (in dollars) after the third payment, of a 5 year loan of $100,000 with an APR of 10% and annual payments

Answers

110,000 total I thing I am not to sure

In an economy open to international trade ________.
A) saving equals investment in equilibrium
B) saving is the difference between net exports and investment
C) saving equals investment as long as the economy has no exports
D) saving equals investment as long as NX

Answers

Answer: D) saving equals investment as long as NX = 0

Explanation:

The last option was incomplete as it should have said ...NX = 0.

The Income/GDP of a country that is open to international trade is calculated as follows:

Income = Consumption + Investment + Government spending + Net exports

Y = C + I + G + NX

If NX = 0 then the formula becomes:

Y = C + I + G

Investment in this scenario is therefore:

I = Y - C - G

This is the same as savings as savings is calculated by subtracting consumption and government spending from the total income. This is because government spending is derived from taxes so the cash that people get to save is their income less than their taxes and consumption expenses.

S = Y - C - G = Y

Alpha and Beta, two tiny islands in the Pacific, produce pearls and pineapples. The following production possibilities schedules describe their potential output in tons per year:

ATTACHMENT IS BELOW

Suppose Alpha and Beta agree that the terms of trade will be one for one and exchange 10 pearls for 10 pineapples.

a. If Alpha produced 6 pearls and 15 pineapples while Beta produced 30 pearls and 8 pineapples before they decided to trade, how many pearls would each be producing after trade? Assume that the two countries specialize according to their comparative advantage.

(i) Alpha: _____ pearls
(ii) Beta: _____ pearls

b. How much would the combined production of pineapples increase for the two islands due to specialization?
_____ pineapples

c. How much would the combined production of pearls increase?
_____ pearls

d. What is the post-trade consumption for each island?
Alpha consumes _____ pearls and ______ pineapples.
Beta consumes ______ pearls and ______pineapples.

Answers

Answer:

The opportunity cost of pearls for A is 2.5 pineapples and the opportunity cost of pearls for A is 0.27.

Explanation:

If Alpha produced 6 pearls and 15 pineapples, while B produced 30 pearls and 8 pineapples before the trade, we can calculate the opportunity cost for each island. For island Alpha, their opportunity cost will be:

6 pearls = 15 pineapples

1 pearl = 15/6 pineapples

1 pearl = 2.5 pineapples

Therefore, the opportunity cost of pearls for A is 2.5 pineapples

For island Beta, their opportunity cost will be:

30 pearls = 8 pineapples

1 pearl = 8/30 pineapples

1 pearl = 0.27 pineapples

Therefore, the opportunity cost of pearls for A is 0.27 pineapples

b)

It appears that A will increase production of pineapples from 15 pineapples to 25 pineapples, and due to their opportunity cost, will decrease pearl production from 6 pearls to 2 pearls

It appears that B will increase the production of pearls from 30 pearls to 40 pearls, and due to their opportunity cost, will decrease pineapple production from 8 pineapples to 4 pineapples.

Complete the statements and then calculate the change in consumption.

a. The consumption function shows the relationship between consumption spending and ____________
b. The slope of the consumption function is the ___________
c. Changes in consumption can be predicted by multiplying the change in by the If the MPC ___________

Answers

Answer:

A. Disposable income

B. Marginal Propensity to Consume

C. Change in Disposable Income by the Marginal Propensity to Consume.

Explanation:

The consumption will increase by $800

Explanation:

The consumption function shows the relationship between consumption spending and disposable income.

The slope of the consumption function is the marginal propensity to consume.

Changes in consumption can be predicted by multiplying the change in disposable income by the marginal propensity to consume.

GIVEN that: MPC = 0.60

Disposable income increases by $1,500

consumption increase = 0.60*$1500

= $900

Therefore, The consumption will increase by $900.

The following information is available for Trinkle Company for the month of June:

a. The unadjusted balance per the bank statement on June 30 was $56,193.
b. Deposits in transit on June 30 were $2,350.
c. A debit memo was included with the bank statement for a service charge of $8.
d. A $4,862 check written in June had not been paid by the bank.
e. The bank statement included a $600 credit memo for the collection of a note.
f. The principal of the note was $545, and the interest collected amounted to $55.

Required:
Determine the true cash balance as of June 30.

Answers

Answer:

Following are the solution the given question:

Explanation:

                                    [tex]\text{Trinkle Company}\\\\ \text{Bank Reconciliation Statement(Partly)}\\\\ \text{As on June 30}[/tex]

[tex]\text{Balance as per Bank statement} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$56,193\\\\\text{Add : deposit in transit} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$2,350\\\\[/tex]

                                                                          [tex]\$58,543[/tex]

[tex]\text{Less: Outstanding Checks} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$4,862\\\\\text{Adjusted Bank Balance} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$53,681\\\\[/tex]

[tex]\text{The true cash balance on June 30 is} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$53,681[/tex]

   

The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $43,000 are expected. The partnership balance sheet at the start of liquidation is as follows:

Cash $39,000 Liabilities $179,000
Accounts receivable 69,000 Butler, loan 39,000
Office equipment (net) 59,000 Butler, capital (25%) 95,000
Building (net) 155,000 Osman, capital (25%) 39,000
Land 145,000 Ward, capital (50%) 115,000
Total assets $467,000 Total liabilities and capital $467,000

Required:
Prepare a predistribution plan for this partnership

Answers

Answer:

Butler, Osman, and Ward Partnership

Predistribution Plan:

Total assets realized (assumed) $467,000

Less liquidation expenses               43,000

Liabilities                                         179,000

Butler, loan                                      39,000

Cash available for distribution  $206,000

Butler, capital (25%)                       84,250 ($95,000 - $10,750)

Osman, capital (25%)                    28,250 ($39,000 - $10,750)

Ward, capital (50%)                       93,500 ($115,000 - $21,500)

Explanation:

a) Data and Calculations:

Expected liquidation expenses = $43,000

Cash                             $39,000

Accounts receivable      69,000

Office equipment (net)  59,000

Building (net)                155,000

Land                             145,000

Total assets              $467,000

Liabilities                   $179,000

Butler, loan                  39,000

Butler, capital (25%)   95,000

Osman, capital (25%) 39,000

Ward, capital (50%)   115,000

Total liabilities and capital $467,000

Predistribution Plan:

Total assets realized (assumed) $467,000

Less liquidation expenses               43,000

Liabilities                                         179,000

Butler, loan                                      39,000

Cash available for distribution  $206,000

Butler, capital (25%)                       84,250 ($95,000 - $10,750)

Osman, capital (25%)                    28,250 ($39,000 - $10,750)

Ward, capital (50%)                       93,500 ($115,000 - $21,500)

b) Each partner will share in the liquidation expense according to their profits and losses sharing ratios.  This will reduce their capital account balances and show the net cash they will collect upon liquidation.  Note that this plan is based on the assumption that all the assets will be completely realized, that is, without any loss.

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,816,000. Its useful life was estimated to be six years with a $224,000 residual value. At the beginning of 2021, Clinton decided to change to the straight-line method. The effect of this change on depreciation for each year is as follows:

Year Straight-Line Declining Balance Difference
2010 $400 $853 $453
2011 400 569 169
2012 400 379 (21)

$1,200 $1,801 $601

Required:
Prepare any 2018 journal entry related to the change.

Answers

Answer:

Debit Depreciation expense for $263,667

Credit Accumulated depreciation for $263,667

Explanation:

Note: There are some inconsistencies in the dates used in the question. These are therefore corrected before answering the question by presenting the complete question with the correct dates as follows:

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,816,000. Its useful life was estimated to be six years with a $224,000 residual value. At the beginning of 2021, Clinton decided to change to the straight-line method. The effect of this change on depreciation for each year is as follows:

Year       Straight-Line         Declining Balance     Difference

2018             $400                         $853                     $453

2019               400                           569                        169

2020              400                           379                        (21)  

                  $1,200                        $1,801                     $601

Required:

Prepare any 2021 journal entry related to the change.

The explanation of the answer is now given as follows:

Before preparing the related journal entry, the annual straight-line depreciation for remaining 3 years is first calculated:

Details                                                                      Amount ($)

Asset’s cost at the beginning (given)                    2,816,000

Accumulated depreciation to date                       (1,801,000)    

Undepreciated cost                                                 1,015,000

Estimated residual value                                        (224,000)

To be depreciated over remaining 3 years             791,000  

Annual straight-line depreciation for remaining 3 years = $791,000/ 3 = $263,667

The 2021 journal entry related to the change will look as follows:

Account title                                          Debit ($)         Credit ($)    

Depreciation expense                           263,667

 To Accumulated depreciation                                    263,667

(To record 2021 depreciation expense.)                                        

On March 15, 2017, Gilbert Construction contracted to build a shopping center at a contract price of $220 million. The schedule of expected (which equals actual) cash collections and contract costs follows:

Year Cash Collections Cost Incurred
2017 55 million $36 million
2018 88 million 81 million
2019 77 million 63 million
Total $220 million $180 million

Required:
a. Calculate the amount of revenue, expense, and net income for each of the three years 2017 through 2019, and for all three years combined, using the cost-to-cost revenue recognition method.
b. Discuss whether or not the cost-to-cost method provides a good measure of this construction com- pany's performance under the contract.

Answers

Answer:

a.                                                              2017          2018           2019

Expenses incurred for the year A     36 million   81 million    63 million

Estimated total cost B                       180 million  180 million  180 million

% Completion (A/B) C                               20%           45%           35%

Revenue recognized for the D          44 million   99 million   77 million

period (220 million * C)

Gross profit (D-A)                              $8 million  $18 million $14 million

b. Yes, the cost-to-cost method provides a good measure of this construction company's performance under the contract.

A bond has a modified duration of 8 and a price of 112,955 calculated using an annual effective interest rate of 6.4%. EMAC is the estimated price of this bond at an interest rate of 7.0% using the first-order Macaulay approximation. EMOD is the estimated price of this bondat an interest rate of 7.0% using the first-order modified approximation.Calculate EMAC - EMOD A. 91 B. 102 C. 116 D. 127 E. 143

Answers

Answer:

8.4%

Explanation:

Which of the following non-GAAP disclosures is LEAST LIKELY to create variance between GAAP and non-GAAP operating income:
a. Goodwill impairment
b. Inventory write down
c. Currency loss from closing of a foreign subsidiary
d. Gain on sale of an asset

Answers

Answer: c. Currency loss from closing of a foreign subsidiary.

Explanation:

GAAP refers to the industry standard and it gives a clear view of the operations of a business from a financial point of view. On the other hand, the non-GAAP disclosure deviates from the industry standard and in such case, adjustments are made to show company's operations.

The non-GAAP disclosures which is least likely to create variance between GAAP and non-GAAP operating income is the currency loss from closing of a foreign subsidiary.

Disposal of Fixed AssetEquipment acquired on January 6 at a cost of $401,300 has an estimated useful life of 18 years and an estimated residual value of $25,100.a. What was the annual amount of depreciation for Years 1–3 using the straight-line method of depreciation?Year Depreciation ExpenseYear 1 $Year 2 $Year 3 $b. What was the book value of the equipment on January 1 of Year 4?$
c. Assuming that the equipment was sold on January 3 of Year 4 for $329,500, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
Year 4
Jan. 3 Cash
Accumulated Depreciation-Equipment
Loss on Sale of Equipment
Equipment
d. Assuming that the equipment had been sold on January 3 of Year 4 for $342,000 instead of $315,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
Cash
Accumulated Depreciation-Equipment
Equipment
Gain on Sale of Equipment

Answers

Answer:

a. Cost of Equipment = $401300

Residual value = $25100

Useful life = 18 years

Depreciation expense = (Purchase cost - Residual value) / Useful life

Depreciation expense = ($401,300 - $25,100) / 18 years

Depreciation expense = $20,900

b. Book value of equipment on January 1 of year 4 = Purchase cost -(Depreciation expense * 3 years)

= $401300 - ($20900*3 years)

= $401300 - $62700

= $338,600

c. Accumulated Depreciation = Depreciation expense * 3 years

Accumulated Depreciation = $20,900*3

Accumulated Depreciation = $62,700

Gain/ loss on sale = Cash received for sale of asset - Book value of asset at jan 1 of year 4

Loss on sale = $315000 - $338600

Loss on sale = $23600

Journal Entry

Cash $315000 Dr

Accumulated depreciation-equipment $62700 Dr

Loss on sale of equipment $23600 Dr

Equipment $401300 Cr

Dawson Toys, Ltd., produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.32 per micron Direct labor: 1.2 hours per toy at $7.20 per hour During July, the company produced 4,600 Maze toys. The toy's production data for the month are as follows: Direct materials: 80,000 microns were purchased at a cost of $0.30 per micron. 39,750 of these microns were still in inventory at the end of the month. Direct labor: 5,920 direct labor-hours were worked at a cost of $46,768.

Required:
1. Compute the following variances for July:
a. The materials price and quantity variances
Material price variance ______
Material quantity variance ______

b. The labor rate and efficiency variances.
Labor rate variance _____
Labor efficiency variance ______

Answers

Answer:

Results are below.

Explanation:

To calculate the direct material rate and quantity variance, we need to use the following formula:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (0.32 - 0.3)*80,000

Direct material price variance= $1,600 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (7*4,600 - 40,250)*0.32

Direct material quantity variance= $2,576 unfavorable

To calculate the direct labor efficiency and rate variances, we need to use the following formulas:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (1.2*4,600 - 5,920)*7.2

Direct labor time (efficiency) variance= $2,880 unfavorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (7.2 - 7.9)*5,920

Direct labor rate variance= $4,144 unfavorable

Actual rate= 46,768/5,920= $7.9

Maxim Corp. has provided the following information about one of its products:Date Transaction Number of Units Cost per Unit1/1 Beginning Inventory 285 $ 157 6/5 Purchase 485 $ 177 11/10 Purchase 185 $ 217 During the year, Maxim sold 570 units.What is cost of goods sold using the average cost method? (Do not round intermediate computations.)

Answers

Answer:

$101,904.6

Explanation:

The computation of the cost of goods sold using the average cost method is shown below:

Beginnig Inventory 285 at $157 = $44,745

Purchases   485 at $177 = $85,845

Purchases   185 at $217 = $40,145

Total cost = $170,735

Now  

Total number of units is

= 285 + 485 + 185

= 955

Now  

Average Cost per unit is

= $170,735 ÷ 955

=$ 178.78

And, finally

Cost of goods Sold is

= 570 × $178.78

= $101,904.6

Jessie and Paul have worked in the same office at DEF Insurance LLC for 6 years. Jessie has always taken extra care to follow the office norms and ensure that everyone has a happy and harmonious working experience. Paul has been very driven during his years at DEF Insurance, and though he started as an insurance agent, he has since been promoted to the agency manager and proudly displays all of his awards on the wall of his new office. According to four drive theory, Paul most likely has a high:

a. drive to acquire
b. drive to defend
c. drive to comprehend
d. drive to achieve

Answers

Answer:

DEF Insurance LLC

Employee Motivation Drives

According to four drive theory, Paul most likely has a high:

a. drive to acquire and

d. drive to achieve

Explanation:

Paul's motivation drive is summed in the drive to acquire and achieve.  For example, Paul craves for the acquisition of laurels. He also actively works to be promoted to managerial positions, based on his drive to achieve.  On the other hand, Jessie prefers to bond and to belong to the team.  He does not like offsetting relationships or displaying people from their positions, unlike Paul.  The other motivation drives are to be challenged and comprehend and to define and defend.

Start Inc. has 5,000 shares of 6%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2012. What is the annual dividend on the preferred stock? Group of answer choices $60 per share $30,000 in total $50,000 in total $0.60 per share

Answers

Answer:

$30,000 in total

Explanation:

The annual dividend on preferred stock can be determined based on the dividend rate, in other words, the annual dividend is the dividend rate multiplied by the face value of the preferred stock as shown thus:

annual dividend on preferred stock=number of preferred shares outstanding*par value per share*dividend rate

number of preferred shares outstanding=5,000

par value per share=$100

dividend rate=6%

50,000 shares refer to the number of common stocks outstanding

annual dividend on preferred stock=5000*$100*6%

annual dividend on preferred stock=$30,000

dividend per share=$30000/5000=$6

Last Friday, you purchased a 4-pack Sensodyne Extra Whitening Toothpaste at $29.99, which will last three months for your family to use. To you, the big pack of toothpaste can be viewed as:________.A. Seasonal inventoryB. Cycle/Batch inventoryC. Pipeline inventoryD. Speculative inventory

Answers

Answer: Speculative inventory

Explanation:

Speculative inventory, is also called the anticipatory inventory, and this occurs when an inventory is purchased so that it can be held for future need. Therefore z buying it early then becomes a necessity.

Therefore, the situation whereby a 4-pack Sensodyne Extra Whitening Toothpaste at $29.99, was bought and will last three months for the family to use is referred to as speculative inventory.

During 2004, Thor Lab supplied hospitals with a comprehensive diagnostic kit for $120. At a volume of 80,000 kits, Thor had fixed costs of $1,000,000 and a profit before income taxes of $200,000. Due to an adverse legal decision, Thor’s 2005 liability insurance increased by $1,200,000 over 2004. Assuming the volume and other costs are unchanged, what should the 2005 price be if Thor is to make the same $200,000 profit before income taxes?

a. $120.00
b. $135.00
c. $150.00
d. $240.00

Answers

Answer:

d. $240.00

Explanation:

Calculation to determine what should the 2005 price be if Thor is to make the same $200,000 profit before income taxes?

2004 CM% = 12.5% ($15/$120)

2005 CM = $2,400,000 ($1,000,000 + $200,000)

2005 CM per unit = $2,400,000/80,000 units

2005 CM per unit= $30 CM per unit;

2005 selling price per unit = $30/.125

2005 selling price per unit= $240

Therefore what should the 2005 price be if Thor is to make the same $200,000 profit before income taxes is $240

Lee Ann, Inc., has declared a $5.70 per-share dividend. Suppose capital gains are not taxed, but dividends are taxed at 20 percent. New IRS regulations require that taxes be withheld when the dividend is paid. The company's stock sells for $94.15 per share and is about to go ex-dividend.

Required:
What do you think the ex-dividend price will be?

Answers

Answer:

$89.59

Explanation:

After tax dividend = Dividend * (1-Tax)

After tax dividend = $5.70 * (1-20%)

After tax dividend = $5.70 * 0.8

After tax dividend = $4.56

Ex-Dividend price = Share price - After tax dividend

Ex-Dividend price = $94.15 - $4.56

Ex-Dividend price = $89.59

cho ví dụ về tái định vị ( trừ viettel, bitis, vinamilk..)

Answers

Answer:

Ví dụ như Samsung, xuất phát điểm là một công ty bán mỳ gạo, vì thế, tên của công ty lúc đầu là Tam tinh nghĩa là ba ngôi sao. Logo của họ l

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