Feedback is most effective when the employee is expecting it, employees are motivated and directed by regular feedback.
Feedback is an essential communication tool in business performance management. One of the most effective techniques is constructive feedback. Managers are responsible for correcting performance deficiencies as soon as they occur.
Hope that this helps :)
PLEASE HELP DUE SOON!!Using the financial data as appropriate, calculate the following ratios year ending –
(i) Net Profit margin
(ii) Current ratio
(iii) Gearing ratio
(iv) Return on capital employed
(v) Interest Cover ratio
(vi) Gross Profit Margin
Answer:
i) 33.2%
ii) 3.7 times
iii) 7.8%
iv) 32%
v) 164 times
vi) 60.89%
Explanation:
Net profit margin = Net profit / Sales
$31,130 / $93,700 = 33.2%
Current Ratio = Current Assets / Current Liabilities
$28,430 / $7,550 = 3.7 times
Gearing Ratio = Debt / Equity
$7,550 / $96,680 = 7.8%
Return on Capital Employed = Operating Profit / Capital Employed
$57,050 - $25,730 / $96,680 = 32%
Interest Cover = Operating profit / Interest Expanse
$31,320 / $190 = 164 times
Gross Profit Margin = Gross Profit / Sales
$57,050 / $93,700 = 60.89%
Which of the following is not an objective of a structure model?
A. Designate things of interest in the business domain.
B. Describe characteristics of things of interest in the business domain.
C. Support relational database design.
D. Describe the sequence of activities.
E. All of the choices are objectives of structure models.
Answer:
E.) all of the choices are objectives of structure models
Explanation:
Structural model can be regarded as a model that gives a view about a system whereby emphasizing on the object's structure as well as their relationships, classifiers and their operation and attributes.
The objective of a structure model are;
✓ Designate things of interest in the business domain.
✓Describe characteristics of things of interest in the business domain.
✓Support relational database design.
✓Describe the sequence of activities
At the beginning of 2021, Artichoke Academy reported a balance in common stock of $154,000 and a balance in retained earnings of $54,000. During the year, the company issued additional shares of stock for $44,000, earned net income of $34,000, and paid dividends of $10,400. In addition, the company reported balances for the following assets and liabilities on December 31.
Assets Liabilities
Cash $52,600 Accounts payable $9,100
Supplies 13,400 Utilities payable 2,400
Prepaid rent 24,000 Salaries payable 3,500
Land 200,000 Notes payable 15,000
Required:
Prepare a statement of stockholders’ equity. Prepare a balance sheet.
Answer and Explanation:
The preparation of the statement of the stockholder equity and balance sheet would be shown in the attachment below:
The formulas for ending retained earning balance and stockholder equity is
Ending retained earnings = Opening retained earnings + net income - dividend paid
And, the ending equity is
= Opening equity + additional shares
The same would be shown in the attachment
At the trough of the business cycle, cyclical unemployment is _____ and the actual unemployment rate _____ the natural rate of unemployment. a. equal to zero; equals b. positive; is less than c. positive; equals d. positive; exceeds e. negative; exceeds
Answer:
d. positive; exceeds
Explanation:
Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;
I. Cyclical unemployment rate (CU).
II. Frictional unemployment rate (FU).
III. Structural unemployment rate (SU).
IV. Actual unemployment rate (AU).
V. Natural Rate of Unemployment (NU).
Cyclical unemployment can be defined as a type of unemployment which is typically related to changes in the business, economy or industry cycle such as recession, governmental policies etc.
Mathematically, cyclical unemployment is given by the formula;
[tex]Cyclical \; unemployment \; rate \; (CU) = Actual \; unemployment \; rate \; (AU) - Natural \; unemployment \; rate \; (NU)[/tex]
>>> [tex]CU = AU – NU[/tex]
The trough of a business cycle refers to the stage where decline (fall) in business activities ends and transit into expansion i.e the business moves from a decline (fall) to an expansion (rise).
Hence, at the trough of the business cycle, cyclical unemployment is positive and the actual unemployment rate exceeds the natural rate of unemployment because there's an increase in the level of output or productivity.
Sutherland Company listed the following data for 2019:
Budgoted factory overhead $2,100,000
Budgeted direct labor hours 89,000
Budgeted machine hours 51,000
Actual factory overhead 2,201,000
Actual direct labor hours 83,700
Actual machine hours 48,900
If overhead is applied based on machine hours, the overapplied/underapplied overhead is:__________ (round calculations to 2 significant digits)
a) $176,358 underapplied.
b) $176,358 overapplied.
c) $187,298 underapplied
d) $187.298 overapplied.
Answer:
c) $187,298 underapplied
Explanation:
The computation of the overhead or underapplied overhead is shown below:
But before that the predetermined overhead, applied manufacturing overhead need to be computed
Predetermine overhead rate is
= Estimated factory overhead ÷ estimated machine hours
= $2,100,000 ÷ 51,000
= $41.18
Now the applied overhead is
= Actual machine hours × predetermined overhead rate
= 48,900 × $41.18
= $2,013,702
As, applied overhead is less than actual overhead
So, the Underapplied overhead is
= $2,201,000 - $2,013,702
= $187,298
Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,580, and a new model, the Majestic, which sells for $1,270. The production cost computed per unit under traditional costing for each model in 2020 was as follows.
Traditional Costing Royale Majestic
Direct materials $650 $420
Direct labor ($20 per hour) 120 100
Manufacturing overhead ($42 per DLH) 252 210
Total per unit cost $1,022 $730
In 2017, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $42 per direct labor hour was determined by dividing the total expected manufacturing overhead of $8,449,220 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $458 ($1,480 - $1,022) and Majestic $540 ($1,270 - $730). Because of this difference, management is considering phasing out the Royale model and increasing the production of the Majestic model. Before finalizing its decision, management asks Schultz's controller to prepare an analysis using activity-based costing (ABC). The controller accumulates the following information about overhead for the year ended December 31, 2017.
Activity Cost Pools Cost Drivers Estimated Overhead Expected Use of Cost Drivers Activity-Based Overhead Rate
Purchasing Number of orders $1,261,700 40,700 $31/order
Machine setups Number of setups 874,120 16,810 $52/setup
Machining Machine hours 5,440,500 120,900 $45/hour
Quality control Number of inspections 872,900 30,100 $29/inspection
The cost drivers used for each product were:
Cost Drivers Royale Majestic Total
Purchase orders 17,600 23,100 40,700
Machine setups 14,510 2,300 16,810
Machine hours 75,300 45,600 120,900
Inspections 11,900 18,200 30,100
Assign the total 2017 manufacturing overhead costs to the two products using activity-based costing (ABC) and determine the overhead cost per unit. (Round cost per unit to 2 decimal places, e.g. 12.25.)
Required:
Calculate cost per unit of each model using ABC costing.
Answer:
Schultz Electronics
Royale Majestic
Cost per unit cost $971.35 $841.55
Explanation:
a) Data and Calculations:
Information about overhead for the year ended December 31, 2017.
Activity Cost Cost Drivers Estimated Expected Use Activity-Based
Pools Overhead of Cost Drivers O/H Rate
Purchasing No. of orders $1,261,700 40,700 $31/order
Machine
setups No. of setups 874,120 16,810 $52/setup
Machining Machine hours 5,440,500 120,900 $45/hour
Quality Number of
control inspections 872,900 30,100 $29/inspection
Total overhead costs $8,449,220
The cost drivers used for each product were:
Cost Drivers Royale Majestic Total
Purchase orders 17,600 23,100 40,700
Machine setups 14,510 2,300 16,810
Machine hours 75,300 45,600 120,900
Inspections 11,900 18,200 30,100
Allocation of overhead costs:
Cost Drivers Royale Majestic Total
Purchasing $545,600 (17,600*$31) $716,100 (23,100 *$31) $1,261,700
Machine setup 754,520 (14,510*$52) 119,600 (2,300*$52) 874,120
Machining 3,388,500 (75,300*$45) 2,052,000 (45,600*$45) 5,440,500
Quality Control 345,100 (11,900*$29) 527,800 (18,200*$29) 872,900
Total $5,033,720 $3,415,500 $8,449,220
Quantity 25,000 10,000
Overhead per
unit $201.35 $341.55
Cost per unit of each model, using ABC Costing Technique:
Royale Majestic
Direct materials $650 $420
Direct labor ($20 per hour) 120 100
Manufacturing overhead 201.35 341.55
($42 per DLH)
Total per unit cost $971.35 $841.55
Actual manufacturing overhead costs are those amounts of overhead costs that are incurred by a firm during production processes.
What is the cost per unit of each model using ABC costing?
a) Calculations:-
The cost drivers used for each product were:-Cost Drivers Royale Majestic Total
Purchase orders 17,600 23,100 40,700
Machine setups 14,510 2,300 16,810
Machine hours 75,300 45,600 120,900
Inspections 11,900 18,200 30,100
Allocation of overhead costs:-Cost Drivers Royale Majestic
Purchasing $545,600 (17,600*$31) $716,100 (23,100 *$31) ($1,261,700)
Machine setup 754,520 (14,510*$52) 119,600 (2,300*$52) (874,120)
Machining 3,388,500 (75,300*$45) 2,052,000(45,600*$45) (5,440,500)
Quality Control 345,100 (11,900*$29) 527,800 (18,200*$29) (872,900)
Total $5,033,720 $3,415,500 ($8,449,220)
Quantity 25,000 10,000
Overhead per unit $201.35 $341.55
Cost per unit of each model, using ABC Costing Technique:-Royale Majestic
Direct materials $650 $420
Direct labor ($20 per hour) 120 100
Manufacturing overhead 201.35 341.55
($42 per DLH)
Total per unit cost $971.35 $841.55
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Given the equity portion of a firm's balance sheets below, determine the average price per share at which new shares were sold by the firm in 2019.
2018 2019
Common Stock ($0.40 par) $620,600 $830,200
Capital Surplus $9,025,000 $13,726,000
Retained Earnings $17,400,000 $19,100,600
No answer text provided.
$12.22 per share
$9.37 per share
$12.62 per share
$8.97 per share
Answer:
$9.37 per share
Explanation:
The computation of the average price per share is shown below:
Common stock in the year 2019 $830,200
Less Common stock in the year 2018 $620,600
Rise in common stock $209,600
Divided by Par value per share $0.40
Number of new common shares sold 524,000
Now
Increase in capital surplus [$13,726,000 - $9,025,000 ] $4,701,000
Add: Increase in common stock $209,600
Total proceeds from sale of new shares $4,910,600
Divided by Number of new common shares sold 524,000
Average price per share 9.37
Recent news articles have noted that women are "a crucial part of society and they are an untapped resource.") From your point of view, what impact will more women participation in the world economy have on the global GDP?
Answer:
The more women participate in the labor force and the global economy, the more the global GDP will grow. For too many years and in too many countries women have been forced to carry out only domestic labor, but that should end. A woman is perfectly capable to do the same tasks as any man.
Playtime Industries manufactures custom-designed playground equipment for schools and city parks. Playtime expected to incur $664,000 of manufacturing overhead cost, 41,500 of direct labor hours, and $830,000 of direct labor cost during the year (the cost of direct labor is $20 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During May, Playtime completed Job 301. The job used 155 direct labor hours and required $12,700 of direct materials. The City of Westlake has contracted to purchase the playground equipment at a price of 20% over manufacturing cost.
Required SHOW WORK
1. Calculate the manufacturing cost of Job 301. (hint: remember you have to consider each product cost: direct materials, direct labor and manufacturing overhead)
2. How much will the City of Westlake pay for this playground equipment?
Playtime Industries manufactures custom-designed playground equipment for schools and city parks. Playtime expected to incur $664,000 of manufacturing overhead cost, 41,500 of direct labor hours, and $830,000 of direct labor cost during the year (the cost of direct labor is $20 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During May, Playtime completed Job 301. The job used 155 direct labor hours and required $12,700 of direct materials. The City of Westlake has contracted to purchase the playground equipment at a price of 20% over manufacturing cost.
Required SHOW WORK
1. Calculate the manufacturing cost of Job 301. (hint: remember you have to consider each product cost: direct materials, direct labor and manufacturing overhead)
2. How much will the City of Westlake pay for this playground equipment?
Answer and Explanation:
The computation is shown below:
1 Calculation of predetermined overhead rate is
Predetermined overhead rate= Estimated Overhead Cost ÷ Direct labor hours
= $664,000 ÷ 41,500
= $16 per direct labor hour.
Now
Calculation of Total Job Cost:-
Direct Materials $12,700
Direct Labor $3,100
(155 direct labor hours × $20 per hour)
Manufacturing Overhead $2,480
(155 direct labor hours × $16 per hour)
Total Job Cost $18,280
2- Calculation of contracted billing price:-
Total manufacturing cost of Job 301 $18,280
Add: Markup on manufacturing cost 20% of $18,280 $3,656
Billing price $21,936
cyber security systems had sales of 3,700 units at $75 per unit last year. the marketing projects of a 10 percent increase in unit volume sales this year a 40 percent increase returned merchandise will represent 8 percent of total sales what is your bet dollar sales projection for this year?
Answer:
$393,162
Explanation:
Units sold last year were 3,700
the projection for this year is an increase of 10% in volume.
projected units sales for this year will be
=110% of 3,700
=1.1 x 3,700
=4,070 units
The selling price last year was $75.
projected price this year is an increase by 40%
price for this year will be 140% of $75
=140/100 x $75
=1.4 x $75
=$105
Projected sales in dollar will be sales volume x selling price
= 4070units x $105
=$427,350
Purchase return = 8% of projected sales in dollars
=8/100 x $427,350
=34,188
Net projected sales
= $427,350 - $34,188
=$393,162
Outline:
Introduction
Sample Case and SWOT
Practice Case Analysis SWOT
Introduction
SWOT is an acronym which stands for Strengths, Weaknesses, Opportunities, and Threats. Companies conduct a SWOT analysis as a critical strategic step in developing a Marketing Plan. SWOT analysis may be completed for an individual, a product or company.
Why This Matters: A SWOT Analysis helps individuals and businesses discover their own unique qualities and gain insight on what differentiates them from competitors.
Your Task: In addition to your assigned reading on SWOT Analysis, review the following Sample Case and SWOT Analysis . As you review all the materials, consider how each of the SWOT categories relate. After reviewing the Sample Case and SWOT Analysis, review the Practice Case as preparation for generating your own SWOT Analysis. Respond to each category (Strength, Weakness, Opportunity, Threat) with three to five bullet points that outline potential impacts on the success of your business.
Answer:
Strengths:
Nestle has a brand image and is top company in food industry
Strong brand recognition among customers give nestle competitive advantage.
Nestle never compromises on quality of the product.
Healthy products are strong factor for Nestle's brand image.
Multiple product choices available to customers.
Weakness:
Price fluctuation due to inflation.
Change in consumer behavior may impact sales.
High prices due to better quality products.
Opportunity:
Nestle may go for diversified products and introduce healthy beverages for its customers.
The company can introduce home based online shopping through their website.
The company can launch new products with free samples.
Threats:
New entrants in the food industry
Low price competitors
Gorilla marketing by its competitors.
Government pressure on compliance standards.
Explanation:
SWOT analysis is an important tool for business managers to analyze the company's position among its competitors. Nestle has strong brand image among its customers and customers buys the product with the brand name. Maintaining the brand image among its competitors is a huge responsibility for Nestle as a single mistake could lead to a downfall for the entire company.
The plaintiff and the defendant entered into a three-year contract in which the defendant would be the sole supplier of steel parts that the plaintiff used in its products. A dispute arose after the defendant sought to surcharge the parts sold to reflect increased costs. The plaintiff filed a lawsuit for breach of contract, and the jury returned a verdict in favor of the defendant, finding on a special verdict that there had been a valid modification to the contract, based solely on e-mails between the parties. Is this evidence enough to support a reformation of the contract?
Answer:
Yes
Explanation:
Emails show an agreement between the defendant and the plaintiff and as long as they are proved to be actually between the parties, it is considered evidence.
We must note that the price of the material is one of the most significant elements of any selling or manufacturing agreement and there must be a written agreement on the terms of increase in price to accommodate any changes in the price of the material by both the parties in the agreement.
Is email considered a legal document?As the court found that there has been a modification of the terms of the contract only on the basis of the written e-mails, in my opinion, it is not a valid argument.
Contract Modification Law?Any changes in the terms of the contracts must be included in the new or modified agreement. Thus, in my opinion, it is not a valid reason to form a modified contract unless a new contract is made including the new terms and conditions.
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Freedom Inc. has 8 employees within Denver City and County. All of the employees worked a predominant number of hours within the city. The employees earned $9.80 per hour and worked 160 hours each during the month. The employer must remit $4.00 per month per employee who earns more than $500 per month. Additionally, employees who earn more than $500 per month must have $5.75 withheld from their pay.
What is the employee and company Occupational Privilege Tax for these employees? (Round your answers to 2 decimal places.)
Answer:
Employer = $32
Employee = $46
Explanation:
Given that :
Number of employees = 8
Earning per hour = $9.80
Hours worked per month per employer = 160
Amount employer must remit per employee who earns more than $500 = $4
Employees who earn more than $500 must have $5.75 withheld
Total earning per employee per month :
$9.80 * 160 = $1568
Earning is beyond $500
Hence,
Amount withheld from employee :
8 * $5.75 = $46
Amount remitted by employer :
8 * $4 = $32
Hence,
The occupational privilege tax for ;
Employer = $32
Employee = $46
The records of Penny Co. indicated that $397,250 of merchandise should be on hand on December 31. The physical inventory indicates that $394,070 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for the year ended December 31.
Chart of Accounts
CHART OF ACCOUNTS
Penny Co.
General Ledger
ASSETS
110 Cash
120 Accounts Receivable
125 Notes Receivable
130 Merchandise Inventory
131 Estimated Returns Inventory
140 Supplies
142 Prepaid Insurance
180 Land
190 Equipment
191 Accumulated Depreciation
LIABILITIES
210 Accounts Payable
216 Salaries Payable
221 Sales Tax Payable
222 Customers Refunds Payable
231 Unearned Rent
241 Notes Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
EXPENSES
510 Cost of Merchandise Sold
521 Delivery Expense
522 Advertising Expense
523 Depreciation Expense
526 Salaries Expense
531 Rent Expense
533 Insurance Expense
534 Supplies Expense
536 Credit Card Expense
560 Miscellaneous Expense
710 Interest Expense
Answer:
Penny Co.
Adjusting Journal Entry for the inventory shrinkage for the year ended December 31:
Debit 510 Cost of Merchandise Sold $3,180
Credit 130 Merchandise Inventory $3,180
To record inventory shrinkage.
Explanation:
a) Data and Calculations:
Merchandise inventory on December 31 = $397,250
Physical inventory on December 31 = $394,070
Shrinkage = $3,180
b) Inventory Shrinkage is a cost to the business. It occurs when the physical inventory count yields an amount that is less than the amount in the accounting records. It may happen for some reasons, including theft, errors, damage, or loss. The best way to record inventory shrinkage is to debit the Cost of Goods Sold and to credit the Inventory account.
Place each item with the appropriate element of the SWOT analysis.
1. Post office closings
2. JPM has superior information technology infrastructure
3. Increasing demand for international packages
4. JPM has an excellent workforce and human resource department
5. Potential global economic recession
6. JPM has increasing labor costs
7. JPM has less fuel-efficient planes
8. Increasing fuel costs due to turmoil in the Middle East
A. Strenghts
B. Opportunities
C. Threats
D. Weakness
Answer:
The correct answers are:
1 - C
2 - A
3 - B
4 - A
5 - C
6 - D
7 - D
8 - C
Explanation:
To begin with, the name of "SWOT" in the field of business and management refers to the famously known analysis whose name comes from the abreviation of words "Strenghts", "Weakness", "Opportunities" and "Threats". Moreover, this analysis consists basically in the process of recognizing every aspect of the company as one of the four major factors according to the analysis and when it comes to refering to the strengths and weaknesses they will be base upon the internal part of the organization that could be control and manage and the opportunities and threats are considered to be external factors so therefore they can not exactly be control and sometimes even managed.
Strenght
JPM has superior information technology infrastructureJPM has an excellent workforce and human resource departmentOpportunities
Increasing demand for international packagesWeaknesses
JPM has less fuel-efficient planesJPM has increasing labor costsThreats
Potential global economic recessionIncreasing fuel costs due to turmoil in the Middle EastPost office closingsWhat is SWOT Analysis?This is a strategy tool, a framework that is mostly used to evaluate a company's competitive position and to develop tailed strategies for its external and internal environment. SWOT is coined from the acronym which of course means Strengths, Weaknesses, Opportunites, and Threats.
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Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2017.
a. Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 17, 2017. Calculo imports the calculator into the United States on May 21, 2017.
b. Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 12, 2027. A family buys the sedan on December 24.
c. Awake Cafe, a U.S. coffee company, produces a latte at its location in Minneapolis on January g, 2017. It sells the latte to a customer immediately.
d. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 19, 2017. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2017. (Note: Focus exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the cereal on GDP.)
e. You chop down a cherry tree on your property in California and make a dining room table in 2017. A similar table sells for $800 in a local furniture store.
Answer:
B
C
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
Items not included in the calculation off GDP includes:
1. services rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
Only goods produced in a country would be included in the GDP. for this reason, the calculator would not be included in GDP
Consider the following data from the market demand and supply for apartments.
Rent Quantity Demanded Quantity Supplied
$2,000 5,000 23,000
$1,800 8,000 20,000 $1,600 11,000 17,000
$14,000 $1,400 14,000
$1,200 17,000 11,000
$1,000 20,000 8,000
A. Suppose that the average monthly rent for apartments is $1,200. At this price, how many apartments will be rented in this market?
B. Is the market currently in equilibrium, experiencing a shortage, or experiencing a surplus?
C. What do you expect to happen to the average rent?
D. What is the equilibrium rent and quantity in the market?
Answer:
11,000
Shortage
rise
$14,000 14,000
Explanation:
At the price of $1200, only 11,000 apartments would be rented. This is the quantity supplied.
Because the quantity demanded (17,000) exceeds the quantity demanded (11,000), there is a shortage. Shortage exists when quantity supplied exceeds quantity demanded. Generally, when price is below equilibrium, there is a shortage.
Due to demand exceeding supply, prices would rise until equilibrium is restored.
Equilibrium price is the price at which quantity demanded equals quantity supplied. Equilibrium quantity is the quantity where quantity demanded equals quantity supplied
IN the light of Nike Case, identify the following:
Nike company marketing management.
Nike is following marketing orientation rather than a product orien
Nike's competitive advantage as a market leader.. identify Nike e
opportunities through the scanning tools.
Answer:
Nike company follows brand recognition marketing strategy.
Nike focuses on market trends rather than product features.
Explanation:
Nike has great brand image among its customers. It focusses on its brand and launches new products with heavy R&D experiences. The management of Nike focus on market orientation rather than product orientation. It identifies the market trends and then customizes its product according to customers needs.
Refer to the following financial statements for Crosby Corporation:
CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 20X2
Sales $ 3,880,000
Cost of goods sold 2,620,000
Gross profit $ 1,260,000
Selling and administrative expense 656,000
Depreciation expense 300,000
Operating income $ 304,000
Interest expense 87,900
Earnings before taxes $ 216,100
Taxes 155,000
Earnings after taxes $ 61,100
Preferred stock dividends 10,000
Earnings available to common stockholders $ 51,100
Shares outstanding 150,000
Earnings per share $ .34
Statement of Retained Earnings
For the Year Ended December 31, 20X2
Retained earnings, balance, January 1, 20X2 $ 855,400
Add: Earnings available to common stockholders, 20X2 51,100
Deduct: Cash dividends declared and paid in 20X2 153,000
Retained earnings, balance, December 31, 20X2 $ 753,500
Comparative Balance Sheets
For 20X1 and 20X2
Year-End
20X1 Year-End
20X2
Assets
Current assets:
Cash $ 134,000 $ 66,500
Accounts receivable (net) 526,000 531,000
Inventory 649,000 719,000
Prepaid expenses 66,800 39,100
Total current assets $ 1,375,800 $ 1,355,600
Investments (long-term securities) 99,500 82,900
Gross plant and equipment $ 2,520,000 $ 3,000,000
Less: Accumulated depreciation 1,450,000 1,750,000
Net plant and equipment 1,070,000 1,250,000
Total assets $ 2,545,300 $ 2,688,500
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 315,000 $ 558,000
Notes payable 510,000 510,000
Accrued expenses 76,900 58,000
Total current liabilities $ 901,900 $ 1,126,000
Long-term liabilities:
Bonds payable, 20X2 198,000 219,000
Total liabilities $ 1,099,900 $ 1,345,000
Stockholders’ equity:
Preferred stock, $100 par value $ 90,000 $ 90,000
Common stock, $1 par value 150,000 150,000
Capital paid in excess of par 350,000 350,000
Retained earnings 855,400 753,500
Total stockholders’ equity $ 1,445,400 $ 1,343,500
Total liabilities and stockholders’ equity $ 2,545,300 $ 2,688,500
a. Prepare a statement of cash flows for the Crosby Corporation: (Amounts to be deducted should be indicated with parentheses or a minus sign.)
b. Compute the book value per common share for both 20X1 and 20X2 for the Crosby Corporation. (Round your answers to 2 decimals places.)
c. If the market value of a share of common stock is 3.6 times book value for 20X2, what is the firm’s P/E ratio for 20X2? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Answer:
Crosby Corporation
a. Statement of Cash Flows
Operating activities:
Operating Income $304,000
Add Depreciation 300,000
Cash from operations $604,000
Changes in working capital items:
Accounts receivable (net) (5,000)
Inventory (70,000)
Prepaid expenses 27,700
Accounts payable 243,000
Notes payable 0
Accrued expenses (18,900)
Interest expense (87,900)
Taxes (155,000)
Net cash from operations $537,900
Investing Activities:
Purchase of plant (480,000)
Investments
(long-term securities) 16,600
Financing Activities:
Bonds payable 21,000
Preferred stock dividends (10,000)
Common stock dividends (153,000)
Net cash flows ($67,500)
Reconciliation with cash:
Beginning Cash Balance 134,000
Ending Cash Balance $66,500
b. The book value per common share for both 20X1 and 20X2:
= Total stockholders’ equity/Common stock outstanding
20X1 20X2
= $ 1,445,400/150,000 $ 1,343,500/150,000
= $9.636 = $8.957
= $9.64 = $8.96
Market value = $8.96 * 3.6 = $32.256
c. If the market value of a share of common stock is 3.6 times book value for 20X2, P/E ratio =
P/E ratio = Market price/EPS
= $32.256/$ .34
= 94.87 times
Explanation:
a) Data and Calculations:
CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 20X2
Sales $ 3,880,000
Cost of goods sold 2,620,000
Gross profit $ 1,260,000
Selling and administrative expense 656,000
Depreciation expense 300,000 956,000
Operating income $ 304,000
Interest expense 87,900
Earnings before taxes $ 216,100
Taxes 155,000
Earnings after taxes $ 61,100
Preferred stock dividends 10,000
Earnings available to common stockholders $ 51,100
Shares outstanding 150,000
Earnings per share $ .34
Statement of Retained Earnings
For the Year Ended December 31, 20X2
Retained earnings, balance, January 1, 20X2 $ 855,400
Add: Earnings available to common stockholders, 20X2 51,100
Deduct: Cash dividends declared and paid in 20X2 153,000
Retained earnings, balance, December 31, 20X2 $ 753,500
Comparative Balance Sheets
For 20X1 and 20X2
Year-End 20X1 Year-End 20X2
Assets
Current assets:
Cash $ 134,000 $ 66,500
Accounts receivable (net) 526,000 531,000
Inventory 649,000 719,000
Prepaid expenses 66,800 39,100
Total current assets $ 1,375,800 $ 1,355,600
Investments (long-term securities) 99,500 82,900
Gross plant and equipment $ 2,520,000 $ 3,000,000
Less: Accumulated depreciation 1,450,000 1,750,000
Net plant and equipment 1,070,000 1,250,000
Total assets $ 2,545,300 $ 2,688,500
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 315,000 $ 558,000
Notes payable 510,000 510,000
Accrued expenses 76,900 58,000
Total current liabilities $ 901,900 $ 1,126,000
Long-term liabilities:
Bonds payable, 20X2 198,000 219,000
Total liabilities $ 1,099,900 $ 1,345,000
Stockholders’ equity:
Preferred stock, $100 par value $ 90,000 $ 90,000
Common stock, $1 par value 150,000 150,000
Capital paid in excess of par 350,000 350,000
Retained earnings 855,400 753,500
Total stockholders’ equity $ 1,445,400 $ 1,343,500
Total liabilities and
stockholders’ equity $ 2,545,300 $ 2,688,500
Changes in working capital items:
20X1 20X2 Changes
Accounts receivable (net) 526,000 531,000 5,000
Inventory 649,000 719,000 70,000
Prepaid expenses 66,800 39,100 -27,700
Accounts payable $ 315,000 $ 558,000 243,000
Notes payable 510,000 510,000 0
Accrued expenses 76,900 58,000 -18,900
Bonds payable, 20X2 198,000 219,000 21,000
Investments (long-term securities) 99,500 82,900 16,600
Plant and equipment 252,000 300,000 -48,000
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:Manufacturing overhead costs incurred:Indirect materials $ 15,000Indirect labor 130,000Property taxes, factory 8,000Utilities, factory 70,000Depreciation, factory 240,000Insurance, factory 10,000Total actual manufacturing overhead costs incurred $ 473,000Other costs incurred:Purchases of raw materials (both direct and indirect) $ 400,000Direct labor cost $ 60,000Inventories:Raw materials, beginning $ 20,000Raw materials, ending $ 30,000Work in process, beginning $ 40,000Work in process, ending $ 70,000The company uses a predetermined overhead rate of $25 per machine-hour to apply overhead cost to jobs. A total of 19,400 machine-hours were used during the year.Required:1. Compute the amount of underapplied or overapplied overhead cost for the year.2. Prepare a schedule of cost of goods manufactured for the year.
Answer:
See below
Explanation:
1.
Actual manufacturing overhead cost incurred
$473,000
Less manufacturing overhead cost applied $25 × 19,400
($485,000)
Over applied overhead
$12,000
2.
Raw materials at the beginning
$20,000
Add raw materials purchased
$400,000
Raw materials available for use
$420,000
Less raw materials at the end
($30,000)
Raw materials used in production
$390,000
Less indirect materials
($15,000)
Add direct labor
$60,000
Add manufacturing overhead applied
$485,000
Total manufacturing cost
$920,000
Add work in process inventory at the beginning
$40,000
Total work in process inventory
$960,000
Less work in process inventory at the end
($70,000)
Cost of goods manufactured.
$890,000
The bookkeeper for Jeff Sobol Equipment Repair made a number of errors in journalizing and posting, as described below.
a. A credit posting of $485 to Accounts Receivable was omitted.
b. A debit posting of $730 for Prepaid Insurance was debited to Insurance Expense.
c. A collection from a customer of $130 in payment of its account owed was journalized and posted as a debit to Cash $130 and a credit to Service Revenue $130.
4. A credit posting of $415 to Property Taxes Payable was made twice.
5. A cash purchase of supplies for $250 was journalized and posted as a debit to Supplies $25 and a credit to Cash $25.
6. A debit of $475 to Advertising Expense was posted as $457.
Required:
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.
Answer:
Jeff Sobol Equipment Repair
a. Indication of whether the trial balance will balance with each error:
1. No.
2. Yes.
3. Yes
4. No.
5. No.
6.No.
b. The amount of the difference:
1. $485
2. $0
3. $0
4. $415
5. $225
6. $18
c. Indication of the trial balance column that have the larger total:
1. Debit
2. N/A
3. N/A
4. Credit
5. Debit
6. Credit
Explanation:
a) Data and Calculations:
1. Debit side greater by $485
2. No effect on the trial balance.
3. No effect on the trial balance
4. Credit side greater by $415
5. Debit side greater by $225 ($250 -$25)
6. Credit side greater by $18 ($475 -457)
b) The trial balance shows that the double entry system has been correctly maintained. It does not reveal some posting errors, e.g. errors of transposition, omission, commission, and compensatory errors. It only reveals clerical (human) errors and errors of principle (wrong application of accounting principles).
Suppose that an appraiser has come to the following conclusions in evaluating the subject property. Due to the dramatic shift in the perceived safety of the neighborhood, values of any residential properties in the area of the subject property have fallen by $10,000, on average. Due to the subject property's age, physical deterioration to the building accounts for an estimate of S50,000 in lost value. An evaluation of the floor plan reveals that it is quite obsolete relative to current homebuyer preferences. This has a detrimental effect on the value of the property that is estimated to be approximately $15,000. Based on your understanding of adjustments related to accrued depreciation, which of the following pertains to the adjustment for external obsolescence?
A. $10,000
B. $15,000
C. $50,000
D. $75,000
Answer:
A
Explanation:
Obsolescence is the loss in value of a property.
there are different types of obsolescence
They include :
1. External obsolescence is the loss in value of a property as a result of factors external to the property. Such factors include economic, social or environmental.
Loss in value due to safety concerns qualifies as external obsolescence
2. Physical obsolescence
3. Functional obsolescence
Tom Johnson Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost for A is $12.00, and forB, $10.00. The revenue generated by each unit is $20.00.a) If the expected volume is 8,500 units, _______(proposal A or proposal
b) with a total profit = $______ should be chosen(enter your response as a whole number).
Answer:
For 8,500 units, proposal A provides a higher income ($3,000).
Explanation:
Giving the following information:
Proposal A:
Fixed cost= $50,000
Unitary cost= $12
Proposal B:
Fixed cost= $70,000
Unitary cost= $10
We need to choose the proposal with the higher income if 8,500 units are produced.
Proposal A:
Net income= 8,500*(20 - 12) - 50,000
Net income= $18,000
Proposal B:
Net income= 8,500*(20 - 10) - 70,000
Net income= $15,000
For 8,500 units, proposal A provides a higher income ($3,000).
The full array of tangible products offered for sale by a business represents the business's
Group of answer choices
product mix.
services.
depth.
product line.
Consider an economy with a corn producer, some consumers, and a government. In a given year, the corn producer grows 30 million bushels of corn and the market price for corn is $5 per bushel. Of the 30 million bushels produced, 20 million are sold to consumers, 5 million are stored in inventory, and 5 million are sold to the government to feed the army. The corn producer pays $60 million in wages to consumers and $20 million in taxes to the government. Consumers pay $10 million in taxes to the government, receive $10 million in interest on the government debt, and receive $5 million in Social Security payments from the government. The profits of the corn producer are distributed to consumers.
Required:
a. Calculate GDP using (i) the product approach, (ii) the expenditure approach, and (iii) the income approach.
b. Calculate private disposable income, private sector saving, government saving, national saving, and the government deficit. Is the government budget in deficit or surplus?
Answer:
a. GDP using product approach
There are no intermediate goods inputs. Corn producer grows 30 million bushels of corn and each bushel of corn worth is $5.
GDP = 30 million * $5
GDP = $150 million
GDP using expenditure approach
i) Consumers buy 20 million bushels of corn
Consumption = 20 million * 5
Consumption (C) = $100 million
ii) Corn producer adds 5 million bushels to inventory
Investment = 5 million * $5
Investment (I) = $25 million
iii) Government buys 5 million bushels of corn
Government spending = 5 million * $5
Government spending (G) = $25 million
GDP = C + I + G
GDP = $100 + $25 + $25
GDP = $150 million
GDP using income approach
Profit income = $150 million - $60 million - $20 million
Profit income = $70 million
Government income = Taxes paid by the corn producer = $20 million
GDP = $60 million + $70 million + $20 million
GDP = $150 million
b. Private disposable income = GDP + Net factor payments + Government transfers + Interest on the government debt - Total taxes
Private disposable income = $150 million + 0 + $5 million + $10 million - $30 million
Private disposable income = $135 million
Private savings = Private disposable income - Consumption
Private savings = $135 million - $100 million
Private savings = $35 million
Government savings = Government tax income - Transfer payments - Interest on the government debt - Government spending
Government savings = $30 million - $5 million - $10 million - $5 million
Government savings = $10 million
National savings = Private savings + Government savings
National savings = $35 million + $10 million
National savings = $45 million
Government budget surplus = Government savings = $10 million
Government deficit = (-) $10 million
The correct amounts of different calculations in an economy with corn producer, consumers and government are as follows,
1. GDP as per product approach will be $150 million.
2. GDP as per the expenditure approach will be $150 million.
3 GDP as per the income approach will be calculated as $150 millions.
4. The net disposable income will be calculated as $135 million.
5. The private sector savings will be calculated as $35 million.
6. The government savings will be $10 million.
7. The National savings will be calculated as $45 million
8. And the government budget surplus is calculated as $10 million.
The calculation of financial status of an economyThe calculation of GDP can be done using the different approaches by using different formulas and putting the given values. [tex]\rm GDP\ Product\ Approach= \$30\ x\ 5\\\\\rm GDP\ Product\ Approach= \$150\ million[/tex]Using expenditure approach,[tex]\rm GDP = \$(100+25+25)\ million\\\\\rm GDP= \$150\ million[/tex]Using Income approach[tex]\rm GDP = \$(60+70+20)\ million\\\\\rm GDP = \$150\ million[/tex]Now calculating private disposable income [tex]\rm Private\ disposable\ income = GDP\ + Net\ factor\ payments\ + Government\ transfers\ + Interest\ on\ the\ government\ debt\ - Total\ taxes\\\\\rm Private\ disposable\ income = \$(150 + 0 + $5\ + $10\ - $30) \rm million\\\\\rm Private\ Disposable\ Income= \$135\ million[/tex]Now calculating Private Sector Savings[tex]\rm Private\ Savings = Private\ Disposable\ Income\ - Consumption\\\\\rm Private\ Savings = \$(135-100)\ million\\\\\rm Private\ Savings= \$35\ million[/tex]Now calculating government savings, [tex]\rm Government\ Savings\ = Government\ Tax\ Income\ - Transfer\ Payment\ - Interest\ Government\ Debt\ - Government\ Spending\\\\\rm Government\ Savings\ = \$(30 - $5 - $10 - $5) \rm million\\\\\rm Government\ Savings\ = \$10 million[/tex]Now calculating National Savings [tex]\rm National\ savings\ = Private\ savings\ + Government\ savings\\\\\National savings = \$(35 \ + $10) \rm million\\\\National\ savings = \$45\ \rm million[/tex]Now calculating government deficit\surplus [tex]\rm Government\ Budget\ Surplus = Government\ Savings\\\\\rm Government\ Budget\ Surplus = \$10 million[/tex]
Hence, the different financial calculations regarding the standings of the economy as on such date are as aforementioned, and it can be concluded that the government budget is in surplus.
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A company had average total assets of $3,060,000, total cash flows of $2,160,000, cash flows from operations of $415,000, and cash flows from
financing of $1,170,000. The cash flow on total assets ratio equals:
Answer:3060000:3745000
Explanation:2160000+415000+1170000 put to a ratio of the total assets 3060000
Total assets= 3060000
2160000+415000+1170000 = 3745000
3060000:3745000
Cash flow is a statistic for how much money a company earned or spent overall during a given period of time. On the statement of cash flows, a common financial statement, cash flow is often divided into cash flow from operating activities, investing activities, and financing activities.
Why cash flow is important?Positive cash flow will put your mind and heart at ease. You don't need to be concerned about how you'll fare week after week or month after month. The same goes for those of you who own businesses.
Understanding cash flow effectively is crucial because it enables you to pinpoint your sources of income and your spending habits.
With this knowledge, you may act appropriately to maintain a healthy cash flow and ultimately meet your financial objectives.
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Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here:
Estimated Value Actual Value
Manufacturing overhead cost $732,000 $842,000
Direct labor cost $366,000 $377,000
Direct labor hours 14,640 hours 16,600 hours
Machine hours 18,300 hours 17,500 hours
Required:
Based on the company’s current allocation base (direct labor hours), compute the following:
a. Predetermined overhead rate.
b. Applied manufacturing overhead.
c. Over- or underapplied manufacturing overhead.
Answer:
Results are below.
Explanation:
Giving the following information:
Estimated Value Actual Value
Manufacturing overhead cost $732,000 $842,000
Direct labor hours 14,640 hours 16,600 hours
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 732,000 / 14,640
Predetermined manufacturing overhead rate= $50 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 50*16,600
Allocated MOH= $830,000
Finally, the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 842,000 - 830,000
Underapplied overhead= $12,000
Robert treats coffee and creamer as perfect complements and has very specific requirements for the ratio of creamer to coffee. He will drink coffee only if he has exactly 5.00 packets of creamer for every cup of coffee. Coffee is priced at $3.00 per cup and creamer at $0.25 per packet. In the questions below, give your answers to two decimal places.
a. Suppose that Robert has $39.00 to spend on coffee and creamer. His optimal consumption bundle contains _______cups of coffee and _________
b. Now, suppose that the price of creamer rises to $0.50 per packet. What is the substitution effect of this price change?
Answer:
a. Robert's optimal consumption bundle contains 9.18 cups of coffee and 45.88 packets of creamer.
b. Zero packets of creamer is the substitution effect.
Explanation:
a. Suppose that Robert has $39.00 to spend on coffee and creamer. His optimal consumption bundle contains _______cups of coffee and _________
The consumption ratio can be stated as follows:
5 Creamer = 1 cup of coffee
Budget line has an equation can also be given as follows:
B = (Pm * Qm) + (Pf * Qf) ...................... (1)
Where;
B = Budget = The amount Robert has to spend on coffee and creamer = $39.00
Pm = Price of creamer = $0.25
Qm = Quantity of creamer = ?
Pf = Price of coffee = $3.00
Qf = Quantity of coffee = ?
39 = (0.25 * Qm) + (3 * Qf)
39 = 0.25Qm + 3Qf
Since "5 Creamer = 1 cup of coffee". This also implies thal 1 creamer = 1 / 5 cup of coffee. Therefore, we have;
39 = 0.25Qm + (3 * 1/5 * Qm)
39 = 0.25Qm + (3/5)Qm
39 = 0.25Qm + 0.60Qm
39 = 0.85Qm
Qm = 39 / 0.85
Qm = 45.88
Qf = 45 / 5 = 9.18
Therefore, Robert's optimal consumption bundle contains 9.18 cups of coffee and 45.88 packets of creamer.
b. Now, suppose that the price of creamer rises to $0.50 per packet. What is the substitution effect of this price change?
Since Robert treats coffee and creamer as perfect complements, this implies that there there is nothing like substitution effect under this condition.
Therefore, zero packets of creamer is the substitution effect.
Marketers are more likely to recognize a problem as unethical when
Answer:
The explanation of the discussion has been characterized below.
Explanation:
The higher the degree of the contract between management peers that perhaps the intervention would be hazardous, the further presumably it is just that advertising agencies will understand the issue when unethical. Research has shown us that the strong ethical social structure and that of other work colleagues reduces the assertion of fraudulent activities.Suppose that at the current price of a good, the quantity demanded is 44 units and the quantity supplied is 40 units. We can expect: Group of answer choices the price of the good to increase. the price of the good to decrease. the demand for the good to increase. the supply of the good to decrease.
Answer:
the price of the good to increase
Explanation:
Quantity demanded = 44 units
Quantity supplied = 40 units
Here,
Quantity demanded [tex]>[/tex] Quantity supplied
This is a situation of excess demand.
If quantity demanded is greater than quantity supplied then the supplier increases the price of the good.
So, option: the price of the good to increase is correct.