Answer:
Requirement: Prepare journal entries to: (a) Accrue the salaries payable on December 31, b) Close the Salaries Expense account on December 31 (the account has a year-end balance of $250,000 after adjustments), (c) Record the salary payment on January 7
Date Accounts title and Explanation Debit Credit
31-Dec Salaries expense $1,880
Salaries Payable $1,880
(To record accrued salaries )
31-Dec Retained Earnings $250,000
Salaries Expense $250000
(To close salaries expense account)
07-Jan Salaries Payable $1,880
Salaries expense $2,920
Cash $4,800
(To record payment of salary)
Whether to pay a lawmaker for giving a speech at your company is an ethical
dilemma that deals with
O A. lobbying
B. awarding honoraria
c. professional standards
D. gift giving
Answer: B
Explanation:
Mutual interdependence occurs when
a. all firms in an industry are affected by the same macro economic conditions, such as a recession, inflation, interest rates, exchange rates, etc.
b. the actions of firms are independent of each other.
c. the actions of one firm in an industry are easily recognized and perhaps copied by others.
d. monopolists recognize that they must face eventual competition in the long run.
Answer:
See below
Explanation:
Mutual interdepence means that action of one firm is seen and copied by others.
Sales for the year were $83,000. The balance sheet at the end of the year is given below:
Assets Liabilities and Equity
Cash 12,000 Accounts payable 19,000
Marketable securities 2,000 Notes payable 6,000
Accounts receivable 6,000 Current liabilities 25,000
Inventory 41,000 Long-term debt 95,000
Current assets 61,000 Total liabilities 120,000
Machines 34,000 Paid-in capital 20,000
Real estate 80,000 Retained earnings 35,000
Net fixed assets 114,000 Equity 55,000
Total assets 149,000 Total lib. & equity 149,000
Required:
What is the firm's days' sales in inventory?
Answer:
See below
Explanation:
The above is an incomplete question. From a similar question, we were given cost of goods sold to be $60,800.
Firm's day sales in inventory is computed as;
= (Ending inventory / Cost of goods sold) × 365
Given that;
Ending inventory = $41,000
Cost of goods sold = $60,800
= ($41,000/$60,800) × 365
= 246days
The following information is related to Splish Company for 2020.
Retained earnings balance, January 1, 2020 $1,332,800
Sales Revenue 34,000,000
Cost of goods sold 21,760,000
Interest revenue 95,200
Selling and administrative expenses 6,392,000
Write-off of goodwill 1,115,200
Income taxes for 2020 1,691,840
Gain on the sale of investments 149,600
Loss due to flood damage 530,400
Loss on the disposition of the wholesale division (net of tax) 598,400
Loss on operations of the wholesale division (net of tax) 122,400
Dividends declared on common stock 340,000
Dividends declared on preferred stock 108,800
Splish Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Splish sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.
Required:
Prepare a multiple—step income statement.
Answer:
Net income is $2,034,560.
Explanation:
The multiple-step income statement refers to an income statement that segregates operating revenues and operating expenses of an organisation from its nonoperating revenues, nonoperating expenses, gains, and losses. In addition, gross profit which is net sales revenue minus the cost of goods sold.
The multiple-step income statement is an alternative to the single-step income statement which reports uses just one equation to calculate profits by deducting total revenue from total expenses from segregating them.
The multiple step income statement of Splish Company for 2020 will look as follows:
Splish Company
Income Statement
For the Year Ended December 31, 2020
Particulars $ $
Sales Revenue 34,000,000
Cost of goods sold (21,760,000)
Gross profit 12,240,000
Selling and administrative expenses (6,392,000)
Income from operation 5,848,000
Other revenues and gains
Interest revenue 95,200
Gain on the sale of investments 149,600
Total other revenues and gains 244,800
6,092,800
Other expenses and losses
Write-off of goodwill (1,115,200)
Loss due to flood damage (530,400)
Total other expenses and losses (1,645,600)
Income from continuing op. b4 tax 4,447,200
Income taxes (1,691,840)
Income from continuing operation 2,755,360
Discontinued operation
Loss on disposal (net of tax) (598,400)
Loss on operations (net of tax) (122,400)
(720,800)
Net income 2,034,560
Round Hammer is comparing two different capital structures: An all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 180,000 shares of stock outstanding. Under Plan II, there would be 130,000 shares of stock outstanding and $1.925 million in debt outstanding. The interest rate on the debt is 8 percent, and there are no taxes. a. If EBIT is $400,000, what is the EPS for each plan
Answer:
Explanation:
Under Plan I, the EPS would be calculated as:
= EBIT / Shares of stock outstanding
= $400,000 / 180,000 shares
EPS = $2.22
Under Plan II, the EPS will be calculated as thus:
We should note that the EBIT in this case will be reduced by interest payment. This will be:
= $400000 - 8% (1.925 million)
= $400000 - 0.08($1,925,000)
= $400,000 - $154000
= $246,000
Then, the EPS for plan II will be calculated as:
EPS = $246,000 / 130,000 shares
EPS = $1.89
Keuka Studies does custom metal sculptures of horses and other animals. A horse sculpture is composed of numerous parts. They use a lathe to construct two types of parts. The "Body" part is used to support the torso of the horse and the "Leg" part is used to support the legs. Each horse sculpture needs 1 Body part and 4 Leg parts. Switching between either of the types of parts requires 12 minutes. Once ready to produce, the lathe produces a Body part in 3 minutes and a single Leg part in 3 minutes. The lathe only makes horse parts. For parts (a)-(d) assume Keuka operates a cyclic schedule in which they make 100 Body parts and then 400 Leg parts. Furthermore, assume the lathe is the bottleneck. Round your answer to 3 decimal places.
a. What is the maximum number of horse sculptures Keuka can make per hour? Do not round intermediate calculations. Enteryour answer as a percentage rounded to 2 decimal places.
b. What is the utilization (%) of the lathe?
Answer and Explanation:
a. The computation of the maximum number of horse sculptures can make per hour is shown below:
= (12 × 2) + (100 × 3) + (400 × 3)
= 24 + 300 + 1200
= 1524 minutes
Now cycle time in hours
= 1524 ÷ 60
= 25.40 hours
Number of horse scupltures could made is
= 400 ÷ 4
= 100
In per hour, it would be
= 100 ÷ 25.40 hours
= 3.94 hours
b. The utilization rate is
= (100 × 3) + (400 × 3) ÷ 1524 minutes
= 300 + 1200 ÷ 1524 minutes
= 1500 ÷ 1524 minutes
= 98.43%
You are given the following information concerning a noncallable, sinking fund debenture: Principal: $1,000 Coupon rate of interest: 7 percent Term to maturity: 15 years Sinking fund: 4 percent of outstanding bonds retired annually; the balance at maturity If you buy the bond today at its face amount and interest rates rise to 13 percent after two years have passed, what is your capital gain or loss
Answer:
Capital loss of $257.38
Explanation:
Use the following formula to calculate the capital gain or (loss).
Capital Gains / (Loss) = Current Price - Purchase price
As two year have been passed and we need to calculate the current price of the debenture using the following formula
Use the following formula to calculate the price of the bond
Price of the bond = [ C x ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Where
F = Face value = $1,000
C = Periodic coupon payment = 7% x $1,000 = $70
r = Periodic interest rate = 13%
n = Numbers of periods = 15 years - 2years = 13 years
Placing values in the formula
Price of the bond = [ $70 x ( 1 - ( 1 + 13% )^-13 ) / 13% ] + [ $1,000 / ( 1 + 13% )^13 ]
Price of the bond = $538.46 + $204.16 = $742.62
Purchase price = $1,000
Placing values in the capital gain or (loss) formula
Capital Gain / ( Loss ) = $742.62 - $1,000
Capital Gain / ( Loss ) = ($257.38)
Each of the following is a characteristic of a defined benefit retirement plan EXCEPT: Question 3 options: The plan assigns the risk of pre-retirement inflation, investment performance, and adequacy of retirement income to the employee. The plan specifies the benefit an employee receives at retirement. The plan has less predictable costs as compared to defined contribution plans. The law specifies the maximum allowable benefit payable from the plan is equal to the lesser of 100% of salary or $230,000 (2020) per year currently
Answer:
Each of the following is a characteristic of a defined benefit retirement plan EXCEPT:
The plan assigns the risk of pre-retirement inflation, investment performance, and adequacy of retirement income to the employee.
Explanation:
No. With a defined benefit retirement plan, the risk of pre-retirement inflation, investment performance, and adequacy of retirement income is never assigned to the employee. Instead, the employer bears this risk. The defined benefit plan always specifies the benefit to which an employee is entitled to at retirement. It also demands that the employee must work for a certain defined period to be entitled to this benefit. By its nature, the defined benefit plan provides a fixed and pre-established benefit for employees. This is why it is preferred by employees.
The board of directors of Milligan Company has decided to dispose of an unneeded parcel of land through a property dividen to their shareholders. Invidivdual homesites have been identified on the land, and those individual sites will be deeded to the shareholders in proportion to their stock holdings. On december 31, 2013, the board of directors declares the property dividend. The land is to be officially deeded to the shareholders as of January 15, 2014 (i.e., pay date).
The board estimates the land to be worth approximately $200,000 on December 31, 2013. The book value of the land prior to the declaration is $175,000. On January 5, 2014, however, the city of Green Valley announces that the adjoining land will become the home of new recreational area, which will cause the value of the Milligan land to increase in value by an additional $100,000.
Required:
Prepare below journal entries to record the declaration of the property dividend on December 31, 2013 and the payment of the dividend on January 15, 2014.
Solution :
The declaration date of the dividends of Milligan Company is Dec,31 2013 on which the loss or the profit on the property will be booked. The book value in this case is $ 175,000 while the FMV is 200,000 dollars. Therefore the gain or the profit is = 200,000 - 150,000 = $ 500,00.
Therefore to gain a profit on the land appreciation of $500,00.
Declaring the dividends on Dec 31, 2013 from the retained earnings, that is the value of FMV of the land is given as :
The earnings retained = 200,000
To the dividends payable = 200,000
On the dividend payment date, Jan 5 2014
Dividends payable at = $200,000
To the land = 200,000
So the FMV or the value of the land is not relevant after Dec 31.
When you retire 35 years from now, you want to have $1.25 million. You think you can earn an average of 13.5 percent on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum 2 years from today. How much more will you have to deposit as a lump sum if you wait for 2 years before making the deposit
Answer:
$19,144.61
Explanation:
The first step would be to determine the present value of $1.25 million. After, the future value of that amount in 2 years has to be calculated
The formula for calculating future value:
P = FV / (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$1.25 million / (1.135)^35 = $14,861.23
Now we find the future value using this formula :
FV = P (1 + r)^n
$14,861.23 x (1.135)^2 = $19,144.61
Given the following demand and supply equations determine the market equilibrium price and quantity. QD=30-3p. As=10-5p. Where Q is quantity and P is price
Answer:
Equilibrium price, p = 2.5
Equilibrium Quantity, Q = 22.5
Explanation:
The equation is:
Qd = 30 - 3p
Qs = 10 + 5p
At equilibrium, Quantity demanded equals quantity supplied
Equate Qd = Qs to find equilibrium price
30 - 3p = 10 + 5p
30 - 10 = 5p + 3p
20 = 8p
p = 20/8
P = 2.5
Substitute equilibrium price into Qd and Qs equation to find equilibrium Quantity
Qd = 30 - 3p
= 30 - 3(2.5)
= 30 - 7.5
= 22.5
Qs = 10 + 5p
= 10 + 5(2.5)
= 10 + 12.5
= 22.5
Therefore,
Equilibrium price, p = 2.5
Equilibrium Quantity, Q = 22.5
the balance in the supplies account, before adjustment at the end of the year is 2750. the inventory of supplies at the end of the year was determined to be 600. the estimated depreciation on equipment at the end of the year is 1600. journalize the adjusting entries required at the end of the year to recognize
A. supplies used during the year and
B. depreciation expense for the year.
Answer and Explanation:
The adjusting entries are shown below:
a. Supplies Expense Dr ($2,750 - $600) $2,150
To Supplies $2,150
(being supplies expense is recorded)
Here supplies expense is debited as it increased the expense and credited the supplies as it decreased the assets
b. Depreciation expense $1,600
To Accumulated depreciation $1,600
(being depreciation expense is recorded)
Here depreciation expense is debited as it increased the expense and credited the accumulated depreciation as it decreased the assets
Fiji, Inc. started 2025 with $12,000 in assets and $2,500 in liabilities. Fiji had issued 50 shares of stock when it went into business in 2019 for $10 per share, and not stock has been issued since that time. At December 31, 2025, Fiji had $23,000 in assets and $4,000 in liabilities. How much was Fiji's net income during 2025 if the company paid $1,000 in dividends during the year?
a $11,500
b $12,000
c $10,500
d $11,000
e None of the above
Answer:
$See below
Explanation:
Fuji Net income in 2025 is computed as
= Beginning asset + Dividend - Beginning liabilities
Given that;
Beginning asset = $12,000
Dividend = $1,000
Beginning liabilities = $2,500
Net income
= $12,000 + $1,000 - $2,500
= $10,500
In each of the following cases, determine how supply or demand shifts and how the equilibrium changes.
a. Smartphones: Microchips used in smartphones become less costly to produce. As a result, the
supply of
supply of and demand for
demand for
smartphones increase(s), causing the equilibrium price to rise, fall, or remain unchanged
fall
rise, fall, or remain unchanged
rise
and the equilibrium quantity to rise
rise
fall
rise, fall, or remain unchanged
b. ALS medical research funds: The ALS ice bucket challenge goes viral, leading to greater awareness of the benefits of and need for ALS research. As a result, the
supply of
supply of and demand for
demand for
ALS research increase(s), causing the equilibrium price (or opportunity cost) of such research to
rise
fall
rise, fall, or remain unchanged
and the equilibrium quantity to
fall
rise, fall, or remain unchanged
rise
Explanation:
A. When microchip used in smartphones become less costly to produce, the supply of smartphones are going to increase, causing a fall in equilibrium price and a rise in equilibrium quantity.
since one of the resources used to make smartphones has become cheaper, more smartphones would be produced, raising its supply, increased supply causes fall in price and rise in equilibrium quantity.
B. since the ALS bucket challenge went viral, supply and demand for research would increase, causing equilibrium price or opportunity cost to either rise or remain unchanged. the equilibrium quantity will then rise, fall or remain unchanged
In April, a firm had an ending cash balance of $35,000. In May, the firm had total cash receipts of $40,000 and total cash disbursements of $50,000. The minimum cash balance required by the firm is $25,000. At the end of May, the firm had
Answer:
60,000
Explanation:
You wish to retire in 20 years, at which time you want to have accumulated enough money to receive an annual annuity of $24,000 for 25 years after retirement. During the period before retirement you can earn 10 percent annually, while after retirement you can earn 12 percent on your money. What annual contributions to the retirement fund will allow you to receive the $24,000 annuity
Answer:
$3,286.52
Explanation:
Interest rate per annum = 12.00%
Number of years = 25
Number of compounding per per annum = 1
Interest rate per period (r) = 12.00%
Number of periods (n) = 25
Payment per period (P) = $24,000
PV of $24,000 payments after 20 years = P * [1 - (1/(1+r)^n)]/ r
PV of $24,000 payments after 20 years = 24000*[1-(1/(1+12%)^25]/12%
PV of $24,000 payments after 20 years = $188,235.34
Interest rate per annum = 10.00%
Number of years= 20
Number of payments per per annum = 1
Interest rate per period (r) = 10.00%
Number of periods (n) = 20
Future value of annuity (FVA) = $188,235
Annual contribution (P) = FVA/ ([ (1+r)^n - 1] / r)
Annual contribution (P) = 188235/(((1+10%)^20-1)/10%)
Annual contribution (P) = $3,286.52
Today manufacturers are relying more heavily on developing an MRP system for purchasing. the bidding process to obtain the lowest price. developing close relationships with just a few suppliers to secure affordable prices. many suppliers to keep their leverage.
Answer:
many suppliers to keep their leverage.
Explanation:
what is the most important law after starting a business
Recently, a group of university students decided to incorporate for the purposes of selling a process to recycle the waste product from manufacturing cheese. Some of the initial costs involved were legal fees and office expenses incurred in starting the business, state incorporation fees, and stamp taxes. One student wishes to charge these costs against revenue in the current period. Another wishes to defer these costs and amortize them in the future. Which student is correct
Answer:
The student wishing to defer these costs and amortize them in the future.
Explanation:
Indeed, according to standard regulatory requirements, all the initial costs associated with incorporating a business cannot be deducted all at once in the first year of operation.
However, these costs are spread over a long period of time. And one way to do this is to amortize them in the future. Therefore, the second student deferring cost is correct.
1. Find the derivative y' = dy/dx:
(a) y = 5x2 + 2x-1/2 + 3
(b) y = (3x2 - 1)(5x2 + 2x)
What is the y prime?
Answer:
you did the questions right . very good
Consider how health insurance affects the quantity of health care services performed. Suppose that the typical medical procedure has a cost of $100, yet a person with health insurance pays only $20 out of pocket. Her insurance company pays the remaining $80. (The insurance company recoups the $80 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) Consider the following demand curve in the market for medical care.
1. Based on the given demand and supply, the given transportation problem is
________?
2. Before finding the initial solution, a dummy_____________ should be introduced.?
3. The total cost of the optimal solution =____________?
Answer:
hello your question has some missing part attached below is the missing demand curve
Answer :
1) the quantity of health procedures Individuals will demand is greater than the optimal quantity ( 20 procedures )
2) quantity of medical procedure
3) $200
Explanation:
1) Based on the given demand and supply, the given transportation problem is the quantity of health procedures Individuals will demand is greater than the optimal quantity ( 20 procedures )
2) A dummy quantity of medical procedure should be introduced
3) Total cost of optimal solution
optimal quantity of medical procedure ( Qd) * price of medical procedure(Qp)
= 20 * 100
= $200
Osborn Manufacturing uses a predetermined overhead rate of $ 19.70 per direct labor- hour. This predetermined rate was based on a cost formula that estimates $265,950 of total manufacturing overhead for an estimated activity level of 13,500 direct labor-hours. The company actually incurred $260,000 of manufacturing overhead and 13,000 direct labor-hours during the period.
Required:
1. Determine the amount of underapplied or overapplied manufacturing overhead for the period.
2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overhead increase or decrease the company's gross margin? By how much?
Answer:
1. $3,900
2. $3900
Explanation:
Required:
1. Calculation to Determine the amount of underapplied or overapplied manufacturing overhead for the period.
Applied overhead = 19.70*13,000
Applied overhead = 256,100
manufacturing overhead = 260,000-256,100
manufacturing overhead= underapplied by $3,900
2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overhead increase or decrease the company's gross margin? By how much
The gross margin would decrease by the amount of $3900
You start a new business in town that is very successful. However, you find out after the first year of operation that you must have a safety permit, and that safety permit must be obtained upon commencement of your business. Obviously you have violated the law. You never had any training in running a business nor did anyone tell you about this law. You can tell the judge you did not know what the law was and he will dismiss your case because of that.
a. True
b. False
Answer:
b. False
Explanation:
False, the judge will not dismiss your case because the fact that you did not know about the safety permit does not exonerate you from fulfilling or breaching the law. As an entrepreneur, it is your legal responsability to meet all license requirements and permits that opening a business in your state requires.
It is false that the judge will dismiss your case because of ignorance.
What is ignorance of the law?It is a legal principle that binds a person that is not aware of law and such individual may not escape the liability for violating the law merely by not being aware of its content.
Although ignorance of the law, is not a defence for violating a principle or law.
It is important as an entrepreneur, to meet all license and permits requirements for opening a business in your state.
Therefore, It is false that the judge will dismiss your case because of ignorance.
Learn more on Law here,
https://brainly.com/question/13383200
Which of the following events would cause a bank to reduce a depositor's account?
The depositor orders new checks through the bank at a cost of $50.
The bank collects a note receivable and related interest on the depositor's behalf.
There are outstanding checks drawn on the account at month-end.
There are deposits in transit on the account at month-end.
The bank corrects an error from previous month by adding $75 to the depositor account
Answer:
There are two events that would reduce a depositor's account:
- the depositor orders new checks through the bank for $50
- there are outstanding checks drawn on the account at the month-end
Explanation:
These situations will decrease the depositor's account balance by $50 and for the amount of the outstanding checks (which amounts were not stated).
Use the following items to determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows.
Rent for the month: $1,300
Monthly take-home salary: $2,835
Spending for food: $670
Cash in checking account: $580
Savings account balance: $2,020
Balance of educational loan: $2,940
Current value of automobile: $9,650
Telephone bill paid for month: $130
Credit card balance: $300
Loan payment: $210
Auto insurance: $360
Household possessions: $4,700
Video equipment: $2,675
Payment for electricity: $155
Lunches/parking at work: $245
Donations: $290
Personal computer: $1,850
Value of stock investment: $1,185
Clothing purchase: $175
Restaurant spending: $195
Answer:
Follows are the solution to this question:
[tex]\text{Total liabilities}= \$3,240\\\\\text{Net worth}=\$19,420\\\\\text{Total cash outflows}= \$3,730\\\\[/tex]
Explanation:
Calculating the values:
[tex]\text{Total assets} = \$22,660 (580 + 2,020 + 9,650+ 2,675+ 1,850+ 4,700 + 1185) \\\\\text{Total liabilities} = \$3,240 (300 + 2,940) \\\\\text{Net worth} = \$19,420 (\$22,660 - \$3,240) \\\\\text{Total cash inflows} = \$3,730\\\\\text{Total cash outflows} = \$3,730 (1300+ 670+ 360+ 245+ 175+ 130+ 210 + 155+ 290 + 195)[/tex]
Which of the following is not a key component of the merger model we walked through in the course?
Answer:
Gathering publicly available comparable company information
Creating detailed forecasts for both companies
An accretion/dilution and sensitivity analysis
Determining and calculating items related to the acquisition structure
You have hired an international agent and are ramping up production in your U.S. facility to keep up with the orders the agent has obtained. You receive an email from your purchasing manager.
From: M. Gomez
Subject: Order
We need to place a large order for bulbs for our solar kits. As you know, we import these bulbs from Japan. I have been watching the exchange rate between the U.S. dollar and the Japanese yen very carefully. The current exchange rate is $1 to 106.94 yen. However, sources tell me that the exchange rate is expected to be $1 to 115 yen very soon. Do you want me to place the order now or wait until the exchange rate changes?
Please advise how you want me to proceed.
Select an option from the choices below and click Submit.
A. Wait and place the order when the exchange rate changes.
B. Place the order now
Answer:
B. Place the order now.
Explanation:
Why wait until the exchange rate changes? When is that going to be? The best reaction would be to place the order when it is needed and not to speculate on the exchange rate. Waiting until the exchange rate changes against Japan makes the prices of goods and services cheaper for foreign purchasers. But, the wait could be endless.
Velocity, a consulting firm, enters into a contract to help Burger Boy, a fast-food restaurant, design a marketing strategy to compete with Burger King. The contract spans eight months. Burger Boy promises to pay $87,000 at the end of each month. At the end of the contract, Velocity either will give Burger Boy a refund of $29,000 or will be entitled to an additional $29,000 bonus, depending on whether sales at Burger Boy at year-end have increased to a target level. At the inception of the contract, Velocity estimates an 80% chance that it will earn the $29,000 bonus and calculates the contract price based on the expected value of future payments to be received. At the start of the fifth month, circumstances change, and Velocity revises to 60% its estimate of the probability that it will earn the bonus. At the end of the contract, Velocity receives the additional consideration of $29,000.
Required:
1) Prepare the journal entry to record revenue each month for the first four months of the contract.
2) Prepare the journal entry that the Velocity Company would record after four months to recognize the change in estimate associated with the reduced likelihood that the bonus will be received.
3) Prepare the journal entry to record the revenue each month for the second four months of the contract.
4) Prepare the journal entry after eight months to record receipt of the cash bonus.
Answer:
Accounts Receivable (Dr.) $87,000
Bonus receivable (Dr.) $29,000
Service Revenue (Cr.) $116,000
Explanation:
Expected Value at contract inception is :
($87,000 * 8 months + $29,000) * 80% = $580,000
($87,000 * 8 months - $29,000) * 20% = $133,400
Total = $713,400
$725,000 / 8 = $89,175
The service revenue is estimated to be 116,000 if there is no probability estimate. When the expected value is incorporated the service revenue will be $89,175.
Consider two neighboring island countries called Arcadia and Dolorium. They each have 4 million labor hours available per week that they can use to produce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor.
Country Jeans (Pairs per hour of labor) Corn(Bushels per hour of labor)
Arcadia 5 10
Dolorium 4 16
Initially, suppose Arcadia uses 1 million hours of labor per month to produce corn and 3 million hours per month to produce jeans, while Dolorium uses 3 million hours of labor per month to produce corn and 1 million hours per month to produce jeans. Consequently, Arcadia produces 8 million bushels of corn and 48 million pairs of jeans, and Dolorium produces 15 million bushels of corn and 20 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of corn and jeans it produces.
Arcadia's opportunity cost of producing 1 pair of jeans is _____ of corn, and Dolorium's opportunity cost of producing 1 pair of jeans is _____ of corn. Therefore, ____ has a comparative advantage in the production of jeans, and ____ has a comparative advantage in the production of corn.
Answer:
Arcadia's opportunity cost of producing 1 pair of jeans is 2 bushels of corn, and Dolorium's opportunity cost of producing 1 pair of jeans is 4 bushels of corn. Therefore, Arcadia has a comparative advantage in the production of jeans, and Dolorium has a comparative advantage in the production of corn.
Explanation:
maximum production
jeans corn
Arcadia 20 40
Dolorium 16 64
initial production
jeans corn
Arcadia 15 10
Dolorium 4 48
Arcadia's opportunity costs:
jeans = 40 / 20 = 2 bushels of corn
corn = 20 / 40 = 0.5 pairs of jeans
Dolorium's opportunity costs:
jeans = 64 / 16 = 4 bushels of corn
corn = 16 / 64 = 0.25 pairs of jeans
Match each term with its definition.
A. Corporate Social Responsibility
B. Corporate governance
C. Ethics
D. The International Organization for Standardization
1. Businesses living and working together for the common good and valuing human dignity
2. Created a variety of standards that help organizations gain international acceptance of their practices and outcomes.
3. The oversight of a public corporation by its board of directors.
4. Bullying may not be illegal, but many companies have enacted policies prohibiting such incivility and abusive behavior in the workplace.
Answer:
Corporate governance - The oversight of a public corporation by its board of directors
Corporate Social Responsibility - Businesses living and working together for the common good and valuing human dignity
Ethics - Bullying may not be illegal, but many companies have enacted policies prohibiting such incivility and abusive behavior in the workplace
The International Organization for Standardization - Created a variety of standards that help organizations gain international acceptance of their practices and outcomes.
Explanation:
Corporate Social Responsibility "is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders"(UNIDO).
Corporate governance "is the system by which companies are directed and controlled. Boards of directors are responsible for the governance of their companies. The shareholders' role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is in place" (ICAEW).
Ethics basically refer to moral principles. These are principles enacted by companies to minimize unacceptable behavior in the workplace.
The International Organization for Standardization creates a variety of standards that help organizations gain international acceptance of their practices and outcomes.