Answer:
Hello
Their functions includes maintaining standards to ensure safety, helping developing countries achieve economic security, and establishing norms regarding how countries make trade agreements and resolve conflicts.
You are evaluating two different silicon wafer milling machines. The Techron I costs $234,000, has a three-year life, and has pretax operating costs of $61,000 per year. The Techron II costs $410,000, has a five-year life, and has pretax operating costs of $34,000 per year. For both milling machines, use straight-line depreciation to zero over the projectâs life and assume a salvage value of $38,000. If your tax rate is 35 percent and your discount rate is 10 percent.
Required:
Compute the EAC for both machines.
T-1:
Table-1 vide annex
Applying EAC formula
c = \frac{r(NPV)}{(1-(1+r)^{-n} )}
[tex]c = \frac{r(NPV)}{(1-(1+r)^{-n} )}[/tex]
c: equivalent annuity cash flow
NPV: Net present value
r: rate per period
n: number of periods
we have
[tex]c = \frac{0.1*(-246155.15)}{(1-(1+0.1)^{-3} )}[/tex]
c = $ - 98 982,63
T-2
Table-2 vide annex
Applying EAC formula
c = \frac{r(NPV)}{(1-(1+r)^{-n} )}
[tex]c = \frac{r(NPV)}{(1-(1+r)^{-n} )}[/tex]
c: equivalent annuity cash flow
NPV: Net present value
r: rate per period
n: number of periods
we have
[tex]c = \frac{0.1*(-369644.05)}{(1-(1+0.01)^{-5} )}[/tex]
c = - $ 97 511.17
Which scenario best reflects the relationship between production and demand in a recession?
O Car dealerships have minimal overstock.
Car dealerships are not restocking.
Car dealerships cannot sell their stock.
O Car dealerships cannot obtain stock.
Od
Answer
Answer:
C. Car dealerships cannot sell their stock.
Explanation:
Managers and leaders perform many tasks as a result of their goals and objectives. Even though many tasks may be completed as a result of their responsibilities, each task may be categorized into one of four functions of management.
Management is a process. This process is what allows managers and leaders to achieve organizational and personal goals. Included within this process are four functions of management. These four functions include planning, organizing, leading, and controlling. Each of these functions is an important aspect of the management process and must be implemented to achieve organizational goals. Match these functions with the followings.
a. Paul
b. Santiago
c. Matthew
d. Chioe
e. Kelly
f. Tomasz
g. Ava
h. Michelle
Answer:
a). Paul - Planning
b). Santiago - Organizing
c). Mathew - Planning
d). Chioe - Organizing
e). Kelly Tomasz - Leading
f). Ava - Controlling
g). Michelle - Organizing
Explanation:
Planning is described as the process of setting up the goals for the organization and formulating a course of action to achieve the intended goals.
Organizing is followed by planning which aims to assign the resources in a specific manner to ensure the effective accomplishment of the goal.
Leading is the process of providing guidance or direction to the staff, employees, and workers and keeps them motivated to ensure the smooth functioning of the process and achievement of optimum output.
Controlling is the last step in which the performances are governed and assessed as per the standards to find any variation.
true or false If you don't think a situation is okay or acceptable, others probably don't feel the same way.
Gavin Jones's friend is planning to invest $ I million in a rock concert to be held I year from noW The friend figures that he will obtain $3 million revenue from his $1 million investment-unless, my goodness, it rains If it rains, he will lose his entire investment There is a 50% chance that it will rain the day of the concert Gavin suggests that he buy rain insurance He can buy one unit of insurance for $ 50, and this unit pays $1 if it rains and nothing if it does not He may pUlchase as many units llS he wishes. up to $3 million
Required:
a. What is the expected rate of return on his investment if he buys units of insurance?
b. What number of units will minimize the variance of his return? What is this minimunm value? And what is the corresponding expected rate of return?
Answer:
a. What is the expected rate of return on his investment if he buys u units of insurance?
total cost = $1,000,000 (concert cost) + $0.50u
return if it rains = $0 + $u
expected return:
doesn't rain = ($3,000,000 x 50%) = $1,500,000
rains = $0 + $u
expected rate of return = [($1,500,000 + $u) / ($1,000,000 + $0.5u)] - 1
b. What number of units will minimize the variance of his return? What is this minimum value? And what is the corresponding expected rate of return?
if you buy 3,000,000 units of u then variance is 0. Whether it rains or not, expected revenue = $3,000,000
total costs = $1 million (concert cost) + ($0.50 x 3 million units of insurance purchased) = $2,500,000
rate of return = ($3,000,000 / $2,500,000) - 1 = 20%
Race and gender are examples of _____.
social issues
personality disorders
discrimination
diversity issues
Answer:
I think the answer is D.
Your grandfather has offered you a choice of one of the three following alternatives: $6,500 now; $1,750 a year for seven years; or $27,000 at the end of seven years.
Required:
a. Assuming you could earn 10 percent annually, compute the present value of each alternative.
b. Which alternative should you choose?
1. $27,000 received at end of seven years
2. $1,750 received each year for seven years
3. $6,500 received now
c. If you could earn 11 percent annually, compute the present value of each alternative.
d. Which alternative should you choose?
1. $27,000 received at end of seven years
2. $1,750 received each year for seven years
3. $6,500 received now
Answer:
a. Present Value at 10%1. $27,000 received at end of seven years
Present Value = 27,000 / ( 1 + 10%)^7
= $13,855.27
2. $1,750 received each year for seven years
This is an annuity.
Present Value = 1,750 * Present value interest factor of annuity , 7 years , 10%
= 1,750 * 4.8684
= $8,519.70
3. $6,500 received now
It is received now so the present value is $6,500.
b. $27,000 received at end of seven years.This has the highest present value at $13,855.27
c. Present Value at 11%1. $27,000 received at end of seven years
Present Value = 27,000 / ( 1 + 11%)^7
= $13,004.78
2. $1,750 received each year for seven years
This is still an annuity.
Present Value = 1,750 * Present value interest factor of annuity , 7 years , 11%
= 1,750 * 4.7122
= $8,246.35
3. $6,500 received now
It is received now so the present value is still $6,500
d. Still $27,000 received at end of seven years .Still has the highest Present Value
Which of the following statements is CORRECT? a. The optimal capital structure minimizes the cost of equity, which is a necessary condition for maximizing the stock price. b. The optimal capital structure simultaneously maximizes stock price and minimizes the WACC. c. The optimal capital structure simultaneously maximizes EPS and minimizes the WACC. d. As a rule, the optimal capital structure is found by determining the debt-equity mix that maximizes expected EPS. e. The optimal capital structure simultaneously minimizes the cost of debt, the cost of equity, and the WACC.
Answer: b. The optimal capital structure simultaneously maximizes stock price and minimizes the WACC
Explanation:
The optimal capital structure is simply defined as the capital structure of a company that's made up of debt and equity which helps a business in achieving its aim.
The optimal capital structure simultaneously maximizes stock price and minimizes the WACC. As economic agents always look out to maximize stock price, it should be noted that this can be achieved with a cost of capital that's at its minimum.
For each of the following cash flows amounts ($ millions), identify whether the company is in the introduction, growth, maturity, or decline stage of its life cycle.
Company Operating Investing Financing
Cash Flow Cash Flow Cash Flow
a $72 $2,007 $(813)
b 7 (528) 878
c (2,578) (4,198) 7,461
d (407) 5,583 (2,404)
e 2,283 (3,449) 1,909
f 6,336 3,222 (2,006)
g (403) (1,726) (3,516)
h 3,704 (2,438) 1,332
Answer:
Operating Investing Financing Identification
a $72 $2,007 $(813) Decline stage of its life cycle
b 7 (528) 878 Growth stage of its life cycle
c (2,578) (4,198) 7,461 Introduction state of its life cycle
d (407) 5,583 (2,404) Decline stage of its life cycle
e 2,283 (3,449) 1,909 Growth stage of its life cycle
f 6,336 3,222 (2,006) Maturity stage of its life cycle
g (403) (1,726) (3,516) Introduction stage of its life cycle
h 3,704 (2,438) 1,332 Growth stage of its life cycle
During the introductory phase, cash from operation and investing maybe expected to be negative and cash from financing may be positive.
During the Growth phase, a company will spend lesser inventory on accrual basis in comparison to its purchase on cash basis.
During the Maturity phase, cash from operations is expected to be positive and also might be exceeding investing requirement.
During the decline phase, cash from operations and investment would continue to be positive while cash from financing would be negative.
Recall Little’s Law that relates the 3 most important process measures (average inventory, average flow rate, and average flow time). The following statement gives two of these three measures and you must find the third. "The flow unit is accounts receivable dollars. A manufacturer bills $300 million worth of cellular equipment per year. The average amount in accounts receivable is $45 million. How much time does the accounts receivable process take, on average, in years? (i.e., the time that elapses on average from the time customer is billed to the time payment is received)?" Enter the number in years, rounded to 2 decimal points. (For example, report 16.347 years as 16.35.)
Answer: 0.15 years
Explanation:
According to Little's Law, it should be noted that:
I = R × T
where,
I = amount of flow units
R = rate of processing flow units
T = time
For this question,
I = $45 million
R = $300 million
Time will be:
T = I/R
T = 45/300
T = 0.15 years
Therefore, the account receivable process will use an average of 0.15 years.
The bookkeeper for Brooks Equipment Repair made a number of errors in journalizing and posting, as described below.
For each error:
a. Indicate whether the trial balance will balance.
b. If the trial balance will not balance, indicate the amount of the difference.
c. Indicate the trial balance column that will have the larger total.
1. A credit posting of $725 to Accounts Receivable was omitted.
2. A debit posting of $950 for Prepaid Insurance was debited to Insurance Expense.
3. A collection from a customer of $190 in payment of its account owed was journalized and posted as a debit to Cash $190 and a credit to Service Revenue $190.
4. A credit posting of $545 to Property Taxes Payable was made twice.
5. A cash purchase of supplies for $520 was journalized and posted as a debit to Supplies $52 and a credit to Cash $52.
6. A debit of $526 to Advertising Expense was posted as $562.
Answer:
Please find bow and attached detailed solution.
Explanation:
a. Indicate whether the trial balance will balance
b. If the trial balance will not balance, indicate the amount of the difference
c. Indicate the trial balance column that will have the larger total.
Please see attached detailed explanation of the above questions
On December 31, 2021, the end of the fiscal year, Revolutionary Industries completed the sale of its robotics business for $13.0 million. The robotics business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $9.0 million. The income from operations of the segment during 2021 was $6.0 million. Pretax income from continuing operations for the year totaled $14.0 million. The income tax rate is 25%.
Required:
Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures.
Answer:
Revolutionary Industries
Income Statement
For the year ended December 31, 2021
...
Pre-tax Income from continuing operations $14,000,000
Income taxes ($3,500,000)
Income from continuing operations $10,500,000
Discontinued operations:
Gain from sale of disc. component $4,000,000Income from disc. component $6,000,000Income taxes ($2,500,000) $7,500,000Net income $18,000,000
Transaction Entries and Adjusting Entries Deluxe Building Services offers janitorial services on both a contract basis and an hourly basis. On January 1, Deluxe collected $42,000 in advance on a six-month contract for work to be performed evenly during the next six months. a. Provide the general journal entry on January 1 to record the receipt of $42,000 for contract work. b. Provide the adjusting entry to be made on January 31, for the contract work done during January. c. At January 31, a total of 40 hours of hourly rate janitor work was unbilled. The billing rate is $25 per hour. Provide the adjusting entry needed on January 31. (Note: The firm uses the account Fees Receivable to reflect amounts due but not yet billed.)
Answer:
Jan.1
Dr Cash $ 42,000
Cr Unearned Service Revenue $42,000
Jan.31
Dr Unearned Service Revenue $ 7,000
Cr Service Revenue $ 7,000
Jan.31
Dr Account Fees Receivable $1,000
Cr Service Revenue $1,000
Explanation:
Preparation of Journal Entries
Jan.1
Dr Cash $ 42,000
Cr Unearned Service Revenue $42,000
(To record 6 month contract)
Jan.31
Dr Unearned Service Revenue $ 7,000 (42,000*1/6)
Cr Service Revenue $ 7,000
(To record january service fees earned on contract)
Jan.31
Dr Account Fees Receivable $1,000 ($40hours*$25 per hour)
Cr Service Revenue $1,000
(To record unbilled service fees at January 31)
A school district is borrowing $40,000,000 over 17 years to fund a building expansion project. The school board can borrow annually for 1 year and then MUST borrow long term (16 years) or, can borrow at a long term fixed rate for the 17 years. The school district is looking at severe budget cuts where they are considering laying off a number of personnel. The choices they are considering are to borrow for one year at 1.75% and then must borrow fixed OR they can borrow for 17 years fixed rate at 4.0%. If they borrow for one year then go fixed, they will save $900,000 in interest that year and save all the jobs. They can borrow annually for to five years then must borrow fixed for the rest of the term. . What do you do and why
Answer:
borrow for one year at 1.75% and then must borrow fixed.
Explanation:
This option appears to be more economically advantageous and would save all jobs. Consider why this is the case from the interest paid in each option:
The Interest rate paid at 1.75%:
for one year at 1.75% = $700, 000 (1.75%x40,000,000) for annually up to five years at 1.75%= $3,500,000 (1.75%x40,000,000x5 years).The Interest rate paid at 4%:
borrow fixed for 16 years at 4% = $25,600,000 (4% x 40,000,000 x 16) borrow fixed for 12 years (17-5) at 4% = $19,200,000 (4% x 40,000,000 x 1,600,000)Total:
First option = $26,300,000 plus all jobs saved
Second option = $22,700,000
Therefore, the first option is more economically advantageous.
On January 1, year 2, Connor Corporation signed a $100,000 noninterest-bearing note due in three years at a discount rate of 10%. Connor elects to use the fair value option for reporting its financial liabilities. On December 31, year 2, Connor's credit rating and risk factors indicated that the rate of interest applicable to its borrowings was 9%. The present value factors at 10% and 9% are presented below. PV factor 10%, 3 periods .751 PV factor 10%, 2 periods .826 PV factor 10%, 1 period .909 PV factor 9%, 3 periods .772 PV factor 9%, 2 periods .842 PV factor 9%, 1 period .917 At what amount should Connor present the note on the December 31, year 2 balance sheet?
Answer:
$84,200
Explanation:
The computation of the amount that should be presented the note as on Dec 31 for year 2 is shown below:
= PV factor 9%, 2 periods × non-interest bearing note amount
= 0.842 × $100,000
= $84,200
Here we considered the 9% interest rate as it is the revalued with respect to the fair value and the same is to be considered
Where does the money you pay for the FICA tax on your paycheck go?
Answer:
see below
Explanation:
Social security and medicare taxes form the Federal Insurance Contributions Act (FICA) tax. These taxes are deducted from both the employer and employee per paycheck.
Social security tax forms the bulk of the FICA tax. The tax revenue collected as social security tax funds the United States government Social Security Trusts. The trusts are programs managed by the Social Security administration and include
Retirement benefitsSurvivor benefitsDisability benefitsMedicare tax revenue funds Federal government medicare programs. This program caters to older American health care costs. The government's general revenue also finances health care. Medicare or health services in the USA are not solely dependent on medicare tax.
Steve owns Barb, Inc. and has grown the business over the last 15 years and is the sole owner. He decides to sell 40 percent of the corporate stock (all outstanding stock) on July 1, Year 1 to an ESOP for $8 million. His adjusted basis for his entire interest in the stock was $3 million. On February 4th, Year 2, Steve uses all $8 million to buy shares of Apple Stock. Which of the following statements is correct? a. Steve will not have a capital gain in Year 1 for tax purposes. b. He will have a capital gain of $5.0 million in Year 1 for tax purposes. c. Steve's transaction does not qualify for non-recognition of gain treatment. d. He will have a capital gain of $6.8 million in Year 1 for tax purposes.
Answer:
a. Steve will not have a capital gain in Year 1 for tax purposes.
Explanation:
Since Steve (the owner of Barb) sold his stocks to an ESOP (employee stock ownership plan), then he will be able to avoid capital gains taxes at least for the first year. ESOPs are qualified retirement plans and when they invest in stocks of the same sponsoring company, the transaction is not taxed if the seller reinvests (buys other stocks). As long as ESOP holds at least 30% of the company's stocks, then Steve can defer his taxes.
This activity is important because as world trade has grown, more companies have entered the global market. Once a firm decides to enter the global market, it must choose which means of market entry is the most appropriate. The global market entry strategies vary greatly on the dimensions of financial commitment, risk, marketing control, and profit potential. The goal of this exercise is to demonstrate your understanding of the different types of global market entry strategies: exporting, licensing, joint venture, and direct investment.
Match the correct global market entry strategy with the followings.
a. Indirect Exporting
b. Direct Exporting
c. Licensing
d. Franchising
e. Joint Venture
f. Direct Investment
1. Moodmatcher lipstick
2. Boeing
3. Yoplait
4. McDonald's
Answer:
Matching the correct global market entry strategy with:
1. Moodmatcher lipstick = b. Direct Exporting
2. Boeing = b. Direct Exporting
3. Yoplait = d. Franchising
4. McDonald's = d. Franchising
Explanation:
a) Global market entry strategies;
a. Indirect Exporting
b. Direct Exporting
c. Licensing
d. Franchising
e. Joint Venture
f. Direct Investment
Most of the globalized entities enter the global market space through direct exports to consumer countries. Some others engage in licensing and franchising, joint venture and indirect exports of their products and services to non-domestic countries. Huge revenues are earned through global trades. Some companies like MTN headquartered in South Africa earn more revenue in foreign markets than in their domestic markets.
Hours needed to make 1 Quantity produced in 2400 hours
Car Airplane Car Airplane
Japan 30 150 80 16
Korea 50 150 48 16
Without trade, Japan produced and consumed 50 cars and 6 airplanes and Korea produced and consumed 27 cars and 7 airplanes. Then, each country agreed to specialize in the production of the good in which it has a comparative advantage and trade 28 cars for 8 airplanes. As a result, Japan gained.
a. 0 cars and 2 airplanes and Korea gained 1 car and 1 airplane.
b. 2 cars and 2 airplanes and Korea gained 1 car and 1 airplane.
c. 28 cars and 8 airplanes and Korea gained 28 cars and 8 airplanes.
d. 52 cars and 8 airplanes and Korea gained 28 cars and 8 airplanes.
Answer:
b. 2 cars and 2 airplanes and Korea gained 1 car and 1 airplane.
Explanation:
hours needed units produced in 2,400 hours
Car Airplane Car Airplane
Japan 30 150 80 16
Korea 50 150 48 16
without trade, Japan consumes 50 cars and 6 airplanes
without trade, Korea consumes 27 cars and 7 airplanes
Japan's opportunity cost to produce 1 plane = 150 / 30 = 5 cars
Japan's opportunity cost to produce 1 car = 30 / 150 = 0.2 planes
Korea's opportunity cost to produce 1 plane = 150 / 50 = 3 cars
Korea's opportunity cost to produce 1 car = 50 / 150 = 0.33 planes
Japan will produce 80 cars and Korea 16 airplanes
after trade
Japan will receive 8 airplanes in exchange for 28 cars:
it will have 8 airplanes and 52 cars
Korean will receive 28 cars in exchange for 8 airplanes:
it will have 8 airplanes and 28 cars
Ponzi Products produced 114 chain letter kits this quarter, resulting in a total cash outlay of $11 per unit. It will sell 57 of the kits next quarter at a price of $12, and the other 57 kits in two quarters at a price of $13. It takes a full quarter for it to collect its bills from its customers. (Ignore possible sales in earlier or later quarters. )
a. Prepare an income statement for Ponzi for today and for each of the next three quarters. Ignore taxes.
b. What are the cash flows for the company today and in each of the next three quarters?
c. What is Ponzi
Answer:
A Ponzi scheme believe it or not is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. The scheme leads victims to believe that profits are coming from product sales or other means, and they remain unaware that other investors are the source of funds. A Ponzi scheme, such as Bitconnect can maintain the illusion of a sustainable business as long as new investors contribute new funds, and as long as most of the investors do not demand full repayment and still believe in the non-existent assets they are purported to own.
Bitconnect really had people believing in them with people making millions but found that they could not withdraw the money when the company suddenly closed down.
Bitconnect is a great story and shows why people should always be wary.
If it looks too good it probably is.
Explanation:
Bridgeport Corp. reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 116 $5 $ 580 12 Purchases 385 6 2,310 23 Purchases 194 7 1,358 30 Inventory 240 Calculate weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average unit cost $enter weighted-average unit cost in dollars rounded to 3 decimal places eTextbook and Media Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO Average-cost The cost of the ending inventory $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places The cost of goods sold $enter a dollar amount rounded to 0 decimal places
Answer:
First Part
Weighted-average unit cost = $6.112 (3 decimal places)
Second Part
Cost of Ending Inventory Cost of Goods Sold
a. FIFO $1,634 $2,614
b. LIFO $1,324 $2,294
c. Weighted Average $1,467 $2,781
Explanation:
First, calculate the number of units sold
Number of units sold = Units available for sale - Units in ending inventory
= (116 + 385 + 194) - 240
= 455 units
Weighted-average Method, calculates a new unit cost with every purchase of Inventory. Sales are then made at the new calculated unit cost.
Unit Cost = Total Costs ÷ Total Units
Calculate weighted-average unit cost
Unit Cost = ($ 580 + $2,310 + 1,358)/ (116 + 385 + 194)
= $6.112 (3 decimal places)
a. FIFO
FIFO stands for First In First Out
i. Cost of Ending Inventory
46 units × $6 = $276
194 units × $7 = $1,358
Total = $1,634
ii. Cost of Goods Sold
116 units × $5 = $580
339 units × $ 6 =$2,034
Total = $2,614
b. LIFO
LIFO stands for Last In First Out
i. Cost of Ending Inventory
116 units × $5 = $580
124 units × $6 = $744
Total = $1,324
ii. Cost of Goods Sold
194 units × $7 = $1,358
261 units × $ 6 = $1,566
Total = $2,294
c. Weighted Average Method
i. Cost of Ending Inventory
Ending Inventory = Units in Ending Inventory × Average Unit Cost
= 240 units × $6.112
= $1,467
ii. Cost of Goods Sold
Cost of Goods Sold = Units Sold × Average Unit Cost
= 455 units × $6.112
= $2,781
1. The physical effort of the manpower to produce the basic needs of the
consumers, describes which factor of production?
a) Land
b) Capital
c) Labor
d) Entrepreneur
Answer:
b. capitalis the answer....✌️
The factor of production called Labour produce the basic needs.
Let understand that the factor of production are essentially what are used in production process to produce goods and services for final consumers.
Land, Labor, Capital and Entrepreneur are the four factors of production. Successful production process relies on the functionality of these factors.The land encompasses where resources and raw materials are derived.The capital involves the money spent during production.The Labor involves manpower of human required in the production process.In conclusion, the Labor is the term that describes the physical effort of the manpower to produce the basic needs of the consumers.
Learn more about Factor of production here
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Question 5 of 10
Which problem is more likely to affect a partnership than a sole
proprietorship?
A. The company will have a difficult time raising funds to get started.
B. The company falls apart if one owner dies or chooses to leave.
оооо
C. One person has total liability if the company loses money.
D. Owners have disagreements over how to run the business.
Answer:
D
Explanation:
owners have disagreement over how to run the business
A legal entity between at least two individuals who invest money and run a business is referred to as a partnership. A partnership is distinct from the partners as people, as contrast to a sole proprietorship.
There is a flow-through arrangement for general partnerships, which directs profits and losses to each partner's personal tax return.
what are disadvantages of partnership?A partnership's drawbacks include the fact that each owner or member is subject to unlimited liability for their actions within the company, transferability can be challenging to achieve.a partnership is unstable as it can dissolve when just one partner no longer wants to be involved in the company or is unable to do so.One of the main causes of business dissolution is conflict between partners who share the business equally.It will be expensive to lose a business partner since you will have to assess their assets and find someone else to take over for them as they have assumed a lot of responsibilities.learn more about problem more likely to effect a partnership here https://brainly.com/question/17440771
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Question 9
5 p
(02.02 LC)
Which of the following is a characteristic of a checking account?
Easy access to funds through a debit card
Fee charged if money is removed early
High rate of return on deposits
Minimum money amount requirement to invest
Answer:
Easy access to funds through a debit card
Explanation:
A checking account is an account that individuals open at a bank or a financial institution to withdraw and deposit money. It is also referred to as a demand account. The salient feature with a checking account is that it is very liquid. It permits users a quick way of accessing their money.
A checking account can be accessed using ATMs, electronic cards, and checks. The checking account allows users to deposit and withdraw money multiple times without attracting charges.
Margie Johnson is a staff accountant at ToolEx Company, a manufacturer of tools and equipment. The company is under pressure from investors to increase earnings, and the president of the expects the Accounting Department to "make this happen". Margie's boss, who has been a mentor to her, is concerned that if earnings do not increase, he will be terminated. Shortly after the end of the fiscal year, the company performs a physical count of the inventory. When Margie compares the physical count to the balance in the inventory account, she finds a significant amount of inventory shrinkage. The amount is so large that it will result in a significant drop in earnings this period. Margie's boss asks her not to make the adjusting entry for shrinkage this period. He assures her that they will get "caught up" on shrinkage in the next period, after the pressure is off to reach this period's earnings goal. Margie's boss asks her to do this as a personal favor to him.
Required:
What should Margie do in this situation? Why?
Answer and Explanation:
1. Margie Johnson would be ethically wrong if she grants the boss's favour to not report inventory shrinkage. Also financial statements would not show a true and fair view if she decides to follow what her boss is asking. She should report true inventory value in financial statements.
2. Yes Ryan is being professional since he is out to improve company's sales and income even though he may be putting pressure on employees to work overtime
Required information The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Service Departments Operating Departments Administration Janitorial Maintenance Binding Printing Total Costs $168,000 $126,000 $57,600 $330,000 $516,000 $1,197,600 Number of employees 60 35 140 315 210 760 Square feet of space occupied 15,000 10,000 20,000 40,000 100,000 185,000 Hours of press time 30,000 60,000 90,000 Administration is allocated based on number of employees; Janitorial based on space occupied; and Maintenance based on hours of press time. Required: Assuming that the company uses the direct method to allocate service department costs, how much cost would be assigned to each operating department
Answer:
The Ferre Publishing Company
Allocation of Cost to Each Department under the Direct Method;
Service Departments Operating Departments
Admini Janitorial Mainten Binding Printing Total
-stration -ance
Costs $168,000 $126,000 $57,600 $330,000 $516,000 $1,197,600
Admin. (168,000) 100,800 67,200 0
Janitorial (126,000) 36,000 90,000 0
Maintenance (57,600) 19,200 38,400 0
Total assigned cost $486,000 $711,600 $1,197,600
Explanation:
a) Data and Calculations:
Service Departments Operating Departments
Admini Janitorial Mainten Binding Printing Total
-stration -ance
Costs $168,000 $126,000 $57,600 $330,000 $516,000 $1,197,600 Number of
employees 60 35 140 315 210 760
Square feet of space
occupied 15,000 10,000 20,000 40,000 100,000 185,000 Hours of press time 30,000 60,000 90,000
Allocation basis Allocation Basis Allocation Rate Calculation
Administration Number of employees $320/employee ($168,000/525)
Janitorial Space occupied $0.90/space ($126,000/140,000)
Maintenance Hours of press time $0.64/press time ($57,600/90,000)
The direct method is one of the methods that The Ferre Publishing Company can use to allocate the overhead costs of the three service departments: Administration, Janitorial, and Maintenance to the Operating Departments: Binding and Printing. Others are the Step method and the Reciprocal method. The Step method allocates one service costs to some other service departments one by one. The Reciprocal relies on an elimination formula.
The Doak Company has projected the following quarterly sales amounts for the coming year:
Q1 $3,900
Q2 $4,700
Q3 $4,300
Q4 $3,600
Accounts receivable at the beginning of the year are $1,700.
Required:
a. The company has a 45-day collection period. Calculate cash collections in each of the four quarters.
b. The company has a 60-day collection period. Calculate cash collections in each of the four quarters.
c. The company has a 30-day collection period. Calculate cash collections in each of the four quarters.
Answer: Check attachment
Explanation:
The cash collection was calculated as:
a. (90-45)/90 = 1/2
Q1 = 1700 + (1/2 × 3900)
= 1700 + 1950
= 3650
Q2 = 1950 + (1/2 × 4700)
= 1950 + 2350
= 4300
Q3 = 2350 + (1/2 × 4300)
= 2350 + 2150
= 4500
Q4 = 2150 + (1/2 × 3600)
= 2150 + 1800
= 3950
Check the attachments for further information.
Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9] [The following information applies to the questions displayed below.] In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 2,580,000 $ 4,042,000 $ 2,175,800 Estimated costs to complete as of year-end 6,020,000 1,978,000 0 Billings during the year 2,060,000 4,562,000 3,378,000 Cash collections during the year 1,830,000 4,200,000 3,970,000 Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Algo) Part 4 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) 2021 2022 2023 Costs incurred during the year $ 2,580,000 $ 3,830,000 $ 3,230,000 Estimated costs to complete as of year-end 6,020,000 3,130,000 0
Answer:
revenue recognized
2021 = $3,000,000 2022 = $4,700,000 2023 = $2,300,000
gross profit
2021 = $420,000 2022 = $658,000 2023 = $124,200
Explanation:
Percentage of 2021 2022 2023
completion method
Cost incurred in $0 $2,580,000 $6,622,000
previous year
+ Cost incurred $2,580,000 $4.042,000 $2,175,800
during the year
Total cost incurred $2,580,000 $6,622,000 $8,797,800
+ Estimated cost to $6,020,000 $1,978,000 $0
be incurred
Total estimated cost $8,600,000 $8,600,000 $8,797,800
to be incurred
Percentage of 30% 77% 100%
completion
Total revenue $10,000,000 $10,000,000 $10,000,000
Total revenue $3,000,000 $7,700,000 $10,000,000
recognized (% of completion x total revenue)
- Revenue recognized ($0) ($3,000,000) ($7,200,000)
in previous year
= revenue recognized $3,000,000 $4,700,000 $2,300,000
in current year
gain/loss 2021 2022 2023
Revenue $3,000,000 $4,700,000 $2,300,000
- Cost incurred ($2,580,000) ($4,042,000) ($2,175,800)
Gross profit $420,000 $658,000 $124,200
The production era describes the period of time when most things people used were made by hand.
True
False
Answer:
False
Explanation:
Simple Trade Era (Pre-Industrial Revolution) is the era where most things were hand made.
The (mass) Production Era (1860s-1920s were when products were produced in mass at low cost.
The production era does not describe a period when most things were made by hand. Hence the given statement is false.
The production era, also known as the production-oriented era, refers to a historical period in business and marketing when companies focused primarily on production efficiency and maximizing output. This era is characterized by the belief that consumers would buy whatever products were available and affordable.
During the production era, mass production techniques, such as assembly lines, were introduced to increase productivity and lower costs. The emphasis was on achieving economies of scale and reducing production costs rather than catering to specific customer needs or preferences.
The production era is followed by subsequent marketing eras, such as the sales era, marketing era, and relationship era, which shift the focus towards understanding and fulfilling customer needs and building long-term customer relationships.
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rion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Units Unit Cost a. Inventory, Beginning 300 $ 14 For the year: b. Purchase, April 11 950 12 c. Purchase, June 1 850 15 d. Sale, May 1 (sold for $42 per unit) 300 e. Sale, July 3 (sold for $42 per unit) 630 f. Operating expenses (excluding income tax expense), $18,200 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. 4. Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes
Answer:
1. 2,100 units and $28,350
2. 1,170 units
3.
Cost of ending inventory Cost of goods sold
a. FIFO $16,590 $11,760
b. LIFO $15,300 $13,050
c. Weighted Average $12,093 $12,492
4.
Income Statement for the year ended December 31
FIFO LIFO Weighted Average
Sales ($12,600 + $ 26,460) $39,060 $39,060 $39,060
Cost of Goods Sold ($11,760) ($13,050) ( $12,492)
Gross Profit $27,300 $26,010 $26,568
Less Expenses ($18,200) ($18,200) ($18,200)
Net Income / (Loss) $9,100 $7,810 $8,368
5. No Data
6. LIFO
Explanation:
Periodic Method means that inventory valuation is done after a specific period. In this case valuation is being done at year end.
Calculation of the number and cost of goods available for sale
Units Total Costs
Beginning Inventory 300 $4,200
Add Purchases :
April 11 950 $11,400
June 1 850 $12,750
Available for Sale 2,100 $28,350
Ending Inventory units = Units Available for Sale - Units Sold
= 2,100 units - 300 units - 630 units
= 1,170 units
a. FIFO
FIFO stands for First In First Out.
i. Cost of ending inventory
320 units × $12 = $3,840
850 units × $15 = $12,750
Total = $16,590
ii. Cost of goods sold
300 units × $14 = $4,200
630 units × $12 = $7,560
Total = $11,760
b. LIFO
LIFO stands for Last In Last Out
i. Cost of ending inventory
300 units × $14 = $4,200
650 units × $12 = $7,800
220 units × $15 = $3,300
Total = $15,300
ii. Cost of goods sold
300 units × $12 = $3,600
630 units × $15 = $9,450
Total = $13,050
c. weighted average cost
This method recalculates the unit costs after every purchase. Sales are valued at the latest unit costs calculated.
1st calculation : April 11
Unit Cost = Total Cost ÷ Total Number of Units
= ((950 units × $12) + (300 units × $14)) ÷ (1,250)
= $12.45
Sale = 300 × $12.45
= $3,735
2nd Calculation : June 1
Unit Cost = Total Cost ÷ Total Number of Units
= ((650 units × $12.45) + (850 units × $15)) ÷ (1,500)
= $13.90
Sale = 630 × $13.90
= $8,757
ii. Cost of goods sold
Total Cost of Goods Sold = $3,735 + $8,757
= $12,492
i. Cost of ending inventory
Ending Inventory = 870 × $13.90
= $12,093