Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a series of payments over time. If you pick the lump sum, you get $2,800 today. If you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today.
1) At an interest rate of 6% per year, the winner would be better off accepting the (LUMP SUM or PAYMENTS OVER TIME?), since it has the greater present value.
2) At an interest rate of 9% per year, the winner would be better off accepting the (LUMP SUM or PAYMENTS OVER TIME?), since it has the greater present value.
3) Years after you win the lottery, a friend in another country calls to ask your advice. By wild coincidence, she has just won another lottery with the same payout schemes. She must make a quick decision about whether to collect her money under the lump sum or the payments over time. What is the best advice to give your friend?
A) The lump sum is always better.
B) The payments over time are always better.
C) It will depend on the interest rate; advise her to get a calculator.
D) None of these answers is good

Answers

Answer 1

Answer:

PAYMENTS OVER TIME

lump sum

c

Explanation:

To know the better option, we have to calculate the present value of the series of cash flows

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 0 = $1000

Cash flow in year 1 = $1000

Cash flow in year 2 = $1000

PV when interest rate is 6 = 2833.93

PV when interest rate is 8 = 2783.26

When PV when interest rate is 6 , choose payment over time because it is higher

PV when interest rate is 8 , choose lump sum because it is higher

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  


Related Questions

A manufacturing plant that assembles television sets has variable output volume from 200 sets to 350 sets a day. The building for both manufacturing and warehousing has an area of 80,000 square feet. It employs about 250 people. It produces all of the components that go into the assembly. An example for variable cost in this plant is ___________________. Group of answer choices building cost equipment cost labor cost property taxes

Answers

Answer:

Labor cost

Explanation:

An example for variable cost in this plant is Labor cost. Labor cost is a variable cost at producers have to hire more labor to raise manpower to produce more goods. Labor cost is also the cost of human effort expended towards projects objectives.

What may make a small business loan challenging to obtain? List at least two potential obstacles.

Answers

Answer:

credit

work history

Explanation:

hope this helps

Which of the following types of insurance allows individuals to keep a former employer's group coverage for a set period of time?
COBRA
Individual health insurance
Hospital indemnity policy
Group health insurance

Answers

Answer:

group health insurance

I. Prepare a journal entry.
(a) Stockholder invests $15,000 into the business.
(b) Company borrows $15,000 signing a note payable to the bank that is due in three months.
(c) Receives and pays for a $10,000 truck and $5,000 of equipment.
(d) Purchases $600 of supplies on account.
(e) Signs contract for first website design for $10,000.
(f) Pays $200 to the supplier in (d).
(g) Purchases and pays for $400 of supplies.
(i) Orders a $900 computer, to be delivered in 90 days.
Transaction # Accounts titles (names) Debit Credit
II. Post the transactions to ledger accounts and then determine the ending balances of each of the following T-accounts.
Assets Liabilities Stockholders' Equity
Cash Accounts Payable Common Stock
Supplies Notes Payable Retained Earnings
Equipment
3. PREPARING A TRIAL BALANCE AND A CLASSIFIED BALANCE SHEET
Use the ending balances from the T-accounts to prepare a trial balance as of December 31, Year 1.
World Wide Webster
Trial Balance
At December 31, Year 1

Answers

Answer:

1. Journal Entries:

a. Debit Cash $15,000

Credit Common Stock $15,000

To record investment by stockholder

b. Debit Cash $15,000

Credit Note Payable $15,000

To record note payable to the bank in three months.

c. Debit Truck $10,000

Debit Equipment $5,000

Credit Cash $15,000

To record the purchase of truck and equipment.

d. Debit Supplies $600

Credit Accounts Payable $600

To record the purchase of supplies on account.

e. No journal required.

f. Debit Accounts Payable $200

Credit Cash $200

To record the payment on account.

g. Debit Supplies $400

Credit Cash $400

To record the purchase of supplies for cash.

h. or i. No journal entry required.

II. Ledger Accounts:

Cash

Accounts titles            Debit    Credit

a. Common stock     $15,000

b. Note payable          15,000

c. Truck & Equipment              $15,000

f. Accounts payable                       200

g. Supplies                                      400

Balance                                    $14,400

Totals                      $30,000  $30,000

Common Stock

Accounts titles            Debit    Credit

a. Cash                                    $15,000

Notes Payable

Accounts titles            Debit    Credit

b. Cash                                   $15,000

Truck

Accounts titles            Debit    Credit

c. Cash                     $10,000

Equipment

Accounts titles            Debit    Credit

c. Cash                      $5,000

Supplies

Accounts titles            Debit    Credit

d. Accounts payable  $600

g.  Cash                        400

Balance                                  $1,000

Totals                      $1,000   $1,000

Accounts Payable

Accounts titles            Debit    Credit

d. Supplies                              $600

f.  Cash                       $200

Balance                      $400

Totals                         $600   $600

III. Trial Balance

Accounts titles            Debit    Credit

Cash                          $14,400

Truck                          10,000

Equipment                  5,000

Supplies                      1,000

Common stock                        $15,000

Notes payable                           15,000

Accounts payable                          400

Totals                      $30,400 $30,400

IV. Classified Balance Sheet

Assets

Current Assets:

Cash                         $14,400

Supplies                       1,000   $15,400

Long-term Assets:

Truck                          10,000

Equipment                  5,000  $15,000

Total Assets                           $30,400

Liabilities + Equity:

Accounts payable                          400

Notes payable                           15,000

Common stock                         15,000

Liabilities + Equity                  $30,400

Explanation:

Journal Entries are made to record transactions for the first time in the accounting books.  These transactions are then posted to the general ledger where balances are extracted for the Trial Balance.  Based on the Trial Balance, the financial statements are prepared to determine the financial performance and position of the business at the end of an accounting year.

Markel entered into a contract with Jaylin to paint a portrait for her in consideration of $600. This contract was freely negotiated. There was nothing in the terms of the agreement about when Markel had to start on the portrait or how long it should take him to finish. It took Markel a long time to complete the portrait, almost 18 months. Which of the following is true of this contract?

a. It must be in writing because it took longer than one year to complete.
b. It must be in writing because it was for more than $500.
c. It is a unilateral contract.
d. The contract need not be in writing.

Answers

Answer:

It is a unilateral contract.

Explanation:

A unilateral contract is a type of contract where only one party of the persons involved in the contract agrees to offer something.

In this case, Markel is offering to give Jaylin $600 for her portrait and Jaylin is not giving any specified time of delivery.

The contract is termed as the legal agreement between two-person that defines the rights and duties between the individuals or among the parties.

It is a legally enforceable obligation or the boundation between the person that accepts at their own wish for the exchange of the goods and services.  

The correct option is c. It is a unilateral contract.

A unilateral contract is a type of contract where only one party of the persons involved in the contract agrees to offer something.

In this case, Markel is offering to give Jaylin $600 for her portrait and Jaylin is not giving any specified time of delivery. This is the correct option because it has been specified in the context itself about the one side contract by Markel.

To know more about the unilateral contract, refer to the link below:

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you have $26,605.46 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $270,000. you expect to earn 10% annually on the account. how many years will it take to reach your goal? do not round intermediate calculations. round your answer to the nearest whole number.

Answers

ANSWER=14years

So the first year would you get the 10% before or after depositing the 5k?because if you’re going to deposit at the end of the year then we have to assume the first year you only get 10% on the 26,605.45 because that’s how investing works... so the answer is it would take 14years to reach $270,000.018

A farmer in Germany can use his land to produce corn or wheat. Suppose he can produce 1 million bushels of corn if it devotes all of its land to corn or 10 million bushels of wheat if it devotes all time to wheat. Plot the PPF with corn on the vertical access and wheat on the horizontal axis. What is the opportunity cost of a bushel of corn

Answers

Answer:

1/3 bushel of rye

Explanation:

Given that the farmer produces 30 bushels of corn every year but using the entire field on producing 30 corn bushels would cost 10 rye bushels. Thus, the opportunity cost of producing one bushel of corn would be 1/3 bushel of rye(10/30). The slope of the farmer's PPF would be -1/3 and hence, the opportunity cost of the farmer can be calculated by considering the reciprocal of a bushel of corn's opportunity cost.

Inventories: March 1 March 31 Raw material $18,000 $15,000 Work in process 9,000 6,000 Finished goods 27,000 36,000 Additional information for March: Raw material purchased $42,000 Direct labor payroll $30,000 Direct labor rate per hour $7.50 Overhead rate per direct labor hour $10.00 Refer to Crawford Enterprises. For March, conversion cost incurred was

Answers

Answer:

$118000

Explanation:

Calculation for conversion cost incurred

First step is to calculate the Prime Cost

Opening stock Of Raw Material $18000

Add: Material purchased $42000

Less: Closing stock of raw material ($15000)

Add: Direct Labour $30000

Prime Cost $75000

Now let calculate the conversion cost incurred

Prime cost $75000

Add: overhead expenses $40000

[($30000/ $7.50)**10]

( 4000 * $10=$40000)

Total $115000

($75000+$40000)

Add: opening work in progress $9000

Total $124000

($115000+$9000)

Less: Closing stock of work in progress ($6000)

Factory cost or conversion cost $118000

($124000-$6000)

Therefore For March, conversion cost incurred was $118,000

You have received two bids from outside companies to conduct guest satisfaction surveys for you. You want at least 320 responses. Company A charges $3,200 + $6 per respondent. Company B charges $4,000 + $3 per respondent. Which company will cost you less?

a) Company A
b) Company B

Answers

From the two bids received  from outside companies to conduct guest satisfaction surveys, the company that would cost me less will be Company B which charges $4,000 + $3 per respondent.

What is a bid?

A bid is the price offer that a corporation or individual is willing to pay in the context of auctions, stock exchanges, or real estate. Bidding is an individual or business's offer to set a price for a product or service, or a demand that something is done. Bidding is a method of determining the price or worth of something.

Bidding can be done by a person who is influenced by a product or service in a given setting. It is used by numerous economic niches to determine demand and thus the worth of a commodity or property. In today's modern technology environment, the Internet is a preferred platform for giving bidding services.

Therefore, from the bids received it can be concluded that Company B would cost less.

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Which of the following is not a way to improve your credit?
Keep your balances low
Move debt around
Keep established accounts
Pay your bills on time

Answers

Answer:

Move debt around

Explanation:

The way where the credit is not improved is that if we moving the debt around.

Information related to the credit score & creditworthiness:

The credit score is the mathematical expression that depends upon your creditworthiness. Creditworthiness is the willingness of the lender for believing you to pay off the debts.

The credit should be improved by:

Having established accounts.Bills are paid on timeLess balances.

But if the debt is moving around so this does not improve your credit.

Therefore we can conclude that the way where the credit is not improved is that if we moving the debt around.

Learn more about creditworthiness here: brainly.com/question/2254218

Use the following information to answer this question.
Bayside, Inc. 2010 Income Statement ($ in thousands)
Net sales $ 5,970
Less: Cost of goods sold 4,320
Less: Depreciation 340
Earnings before interest and taxes 1,310
Less: Interest paid 33
Taxable Income $ 1,277
Less: Taxes 447
Net income $ 830
Bayside, Inc. 2009 and 2010 Balance Sheets ($ in thousands)
2009 2010 2009 2010
Cash $ 90 $195 Accounts payable $ 1,480 $ 1,455
Accounts rec. 980 820 Long-term debt 770 570
Inventory 1,585 2,020 Common stock $ 3,205 $ 3,240
Total $ 2,655 $ 3,035 Retained earnings 840 1,090
Net fixed assets3,640 3,320
Total assets $ 6,295 $ 6,355 Total liab. & equity $ 6,295 $ 6,355
How many dollars of sales are being generated from every dollar of fixed assets? (use 2010 values)
a. $1.72
b. $0.94
c. $0.95
d. $1.64
e. $1.80

Answers

Answer:

e. $1.80

Explanation:

Calculation for How many dollars of sales are being generated from every dollar of fixed assets

Using this formula

Sales generated by every dollar of fixed assets= Net sales/Fixed assets

Let plug in the formula

Sales generated by every dollar of fixed assets= 5,970/3,320

Sales generated by every dollar of fixed assets= $1.798

Sales generated by every dollar of fixed assets=$1.80 (Approximately)

Therefore How many dollars of sales are being generated from every dollar of fixed assets will be $1.80

Adams Company has two products: A and B. The annual production and sales of Product A is 2,300 units and of Product B is 1,700 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor-hours per unit and Product B requires 0.6 direct labor-hours per unit. The total estimated overhead for next period is $105,475.
The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows:
Total Estimated
Overhead
Costs Expected Activity
Product A Product B Total
Activity 1 $32,592 1,600 1,200 2,800
Activity 2 18,564 2,300 800 3,100
General Factory54,319 690 1,020 1,710
Total $105,475
(Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.)
The overhead cost per unit of Product B under the traditional costing system is closest to:________.
a. $20.30
b. $14.62
c. $16.71
d. $37.01

Answers

Answer:

The correct answer is D.

Explanation:

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

Total estimated overhead= $105,475

Total direct labor hours= (2,300*0-3) + (1,700*0.6)

Total direct labor hours= 1,710

Predetermined manufacturing overhead rate= 105,475 / 1,710

Predetermined manufacturing overhead rate= $61.68 per direct labor hour

Now, we can allocate overhead to Product B:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 61.68*(0.6*1,700)

Allocated MOH= $62,913.6

Finally, the cost per unit:

Cost per unit= 62,913.6/1,700

Cost per unit= $37

Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.2 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 7% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end.

Required:
a. Prepare the journal entries on October 1, 2021, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank.
2. Record the adjustments on December 31, 2021, for (a) Precision Castparts and (b) Midwest Bank.
3. Prepare the journal entries on September 30, 2021, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank.

Answers

Answer:

a. Prepare the journal entries on October 1, 2021, to record (a) the notes payable for Precision Castparts

Dr Cash 40,200,000

    Cr Notes payable 40,200,000

and (b) the notes receivable for Midwest Bank.

Dr Notes receivable 40,200,000

    Cr Cash 40,200,000

2. Record the adjustments on December 31, 2021, for (a) Precision Castparts and

Dr Interest expense 703,500

    Cr Interest payable 703,500

(b) Midwest Bank.

Dr Interest receivable 703,500

    Cr Interest revenue 703,500

3. Prepare the journal entries on September 30, 2021, to record payment of (a) the notes payable for Precision Castparts and

Dr Interest expense 2,110,500

Dr Notes payable 40,200,000

Dr Interest payable 703,500

    Cr Cash 43,014,000

(b) the notes receivable for Midwest Bank.

Dr Cash 43,014,000

    Cr Interest revenue 2,110,500

    Cr Notes receivable 40,200,000

    Cr Interest receivable 703,500

Suppose the market for hamburgers is unregulated. That is, hamburger prices are free to adjust based on the forces of supply and demand. If a shortage exists in the hamburger market, then the current price must be ________than the equilibrium price. For the market to reach equilibrium, you would expect _______.
If a shortage exists in the hamburger market, then the current price must be a)higher b)lower than the equilibrium price. For the market to reach equilibrium, you would expect:__________
a) buyers to offer higher prices
b) sellers to offer lower prices
c) persistent excess demand

Answers

Answerp

lower, buyers to offer higher prices

Explanation:

An unregulated market, is one whereby the supply and demand is left unguided or unmonitored. This makes buyers and sellers execute different prices as they deem fit.

It is commonly known that Prices that is behind or below the equilibrium price brings about excess demand as various buyers would want to buy to more goods than sellers are willing to sell. In this case, the quantity supplied will be less than the quantity demanded at that price. Some buyers who wish to be hamburger at the current price will be unable to do so. In order to buy hamburger, some buyers will offer higher prices. Some sellers will be love to sell additional unit only if the buyers increases the selling rate. The market being move toward the equilibrium price, where the quantity of the hamburger demanded by buyers is of an equals amount with the quantity supplied by sellers.

The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled steel was $1.8 million for the first 4 years. An effective energy conservation program resulted in a reduced cost of $1.77 million in year 5, and $1.74 million in year 6, and amounts decreasing by $30,000 each year through year 10. What is the present worth of the pumping costs in year 0 at an interest rate of 12% per year?

Answers

Answer:

  $9,923,100

Explanation:

The computation of the present worth is as follows:

Year         Annual cost      PV factor at 12%    Present value

1             $1,800,000             0.893                    $1.607,400

2           $1,800,000              0.797                     $1,434,600

3             $1,800,000             0.712                      $1,281,600

4            $1,800,000              0.636                     $1,144,800

5         $1,770,000                  0.567                    $1,003,590

6         $1,740,000                  0.507                    $882,180

7          $1,710,000                   0.452                    $772,920

8            $1,680,000                0.404                    $678,720

9           $1,650,000                0.361                      $595,650

10           $1,620,000            0.322                    $521,640

Present worth                                                   $9,923,100

what is Amazon's current price-to-book value?

Answers

Answer:

The current price to book value of Amazon as on date (25 February 2021) is 16.48

Explanation:

The current price to book value of Amazon as on date (25 February 2021) is 16.48

However, on 24th February 2021, the price to book value of Amazon  was 17.03

The following information is for Punta Company for July: Factory overhead costs were applied to jobs at the predetermined rate of $51.50 per labor hour. Job S incurred 6,265 labor hours; Job T used 4,365 labor hours. Job S was shipped to customers during July. Job T was still in process at the end of July. The overapplied or underapplied overhead to the Cost of Goods Sold account was closed at the end of July. Factory utilities, factory depreciation, and factory insurance incurred are summarized as follows: Utilities $ 16,950 Depreciation 49,500 Insurance 19,800 Total $ 86,250 f. Direct materials and indirect materials used are as follows: Job S Job T Total Material A $ 33,000 $ 75,750 $ 108,750 Material B 14,700 37,700 52,400 Subtotal $ 47,700 $ 113,450 $ 161,150 Indirect materials 215,500 Total $ 376,650 g. Direct labor incurred for the two jobs and indirect labor are as follows: Job S $ 64,500 Job T 54,000 Indirect labor 151,000 Total $ 269,500
Required:
1. Calculate the total manufacturing cost for Job S and Job T for July. (Round your intermediate calculations and final answers to 2 decimal places.)
2. Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will be increased or decreased by the adjustment.?

Answers

Answer:

Solution 1 : Total Manufacturing Cost of Job S is $434,847.5 while for Job T is $ 392,247.5

Solution 2 : The amount of overheads has been over-applied and the Cost of Goods Sold will decrease by $94,695

Explanation:

Solution 1

Particulars                                             Job S ($)                Job T ($)

Direct material                                47,700               113,450

Direct labor                                        64,500                54,000

Overhead Applied (Hours* $51.50)      322,647.5       224,797.5

Total manufacturing cost                 434,847.5       392,247.5

Solution 2

In order to calculate the amount of over-applied or under-applied, we will take the difference between the overheads applied and the actual overheads incurred during the period. If the applied overheads are more than the actual then the amount has been over-applied and the Cost of Goods Sold will decrease. However, in case the overheads were under-applied then the Cost of Goods Sold would increase. The calculation has been done below:

Actual Overhead = $86,250 + $215,500 + $151,000 = $452,750

Applied overhead = 322,647.5 + 224,797.5 = $547,445

Over-applied/Under-applied overhead = Applied overhead - Actual Overhead

547,445 - 452,750 = $94,695. The overheads has been over-applied.  

Cost of Goods Sold account will be decreased by $94,695.

As a long-term investment at the beginning of the 2018 fiscal year, Florists International purchased 25% of Nursery Supplies Inc.'s 16 million shares for $68 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $52 million and distributed cash dividends of $.75 per share. At the end of the year, the fair value of the shares is $64 million.Required: Prepare the appropriate journal entries from the purchase through the end of the year.

Answers

Answer:

1. Dr Investment in Nursery supplies common share $68 million

Cr Cash $68 million

2. Dr Investment in Nursery supplies common share $13 million

Cr Investment Revenue $13 million

3.Dr Cash $3 million

Cr Investment in Nursery supplies common share $3 million

4. No Journal entry

Explanation:

Preparation of the appropriate journal entries from the purchase through the end of the year.

1. Dr Investment in Nursery supplies common share $68 million

Cr Cash $68 million

2. Dr Investment in Nursery supplies common share $13 million

Cr Investment Revenue $13 million

(25%*$52 million )

3.Dr Cash $3 million

Cr Investment in Nursery supplies common share $3 million

(16 million shares *25%*$.75 per share)

4. No Journal entry is required to record the change in fair value

The August 31 balance shown on the bank statement is $9,813.

a. There is a deposit in transit of $1,263 at August 31.
b. Outstanding checks at August 31 totaled $1,877.
c. Interest credited to the account during August but not recorded on the company's books amounted to $116.
d. A bank charge of $35 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived.
e. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $626 had been recorded as a disbursement of $373. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,371.

Required:
Prepare a bank reconciliation as of August 31 from the above information.

Answers

Answer:

Adjusted Balance per bank $9,199

Adjusted Balance per books $9,199

Explanation:

Preparation of a bank reconciliation as of August 31

Balance per bank on August 31 $9,813

Add Deposit in transit $1,263

Less Outstanding checks ($1,877)

Adjusted Balance per bank $9,199

Balance per books on August 31 $9,371

Add Interest earned $116

Less Bank charge ($35)

Less Error in Books ($253)

($626-$373)

Adjusted Balance per books $9,199

Therefore the bank reconciliation as of August 31 will be:

Adjusted Balance per bank $9,199

Adjusted Balance per books $9,199

A company currently using an inspection process in its material receiving department is trying to install an overall cost reduction program. One possible reduction is the elimination of one inspection position. This position test material has a defective content on the average of 0.04. By inspecting all items, the inspector is able to remove all defects. The inspector can inspect 50 units per hour. The hourly rate including fringe benefits for this position is $9. If the inspection position is eliminated, defects will go into product assembly and will have to be replaced later at a cost of $10 each when they are detected in final product testing.

Required:
a. If the inspector position is eliminated, what will the hourly cost of defects be?
b. Should this inspection position be eliminated?
c. What is the cost to inspect each unit?
d. Is there benefit (or loss) from the current inspection process? How much?

Answers

Answer:

defects per hour = 0.04

units inspected per hour = 50

inspector's salary per hour = $9

cost per undetected defects = $10

a. If the inspector position is eliminated, what will the hourly cost of defects be?

number of defects per hour = 0.04 x 50 = 2

cost of defects = 2 x $10 = $20

b. Should this inspection position be eliminated?

no, because the cost of eliminating the position is higher than the cost of hiring the inspector

c. What is the cost to inspect each unit?

cost to inspect each unit = $9 / 50 = $0.18 per unit

d. Is there benefit (or loss) from the current inspection process? How much?

the benefit of the inspection process = $20 - $9 = $11 per hour, or $11 / 50 = $0.22 per unit

The following balance sheet for the Hubbard Corporation was prepared by the company:

HUBBARD CORPORATION
Balance Sheet
At December 31, 2021
Assets
Buildings $754,000
Land 262,000
Cash 64,000
Accounts receivable (net) 128,000
Inventory 248,000
Machinery 284,000
Patent (net) 104,000
Investment in equity securities 68,000
Total assets $1,912,000

Liabilities and Shareholders' Equity
Accounts payable $219,000
Accumulated depreciation 259,000
Notes payable 508,000
Appreciation of inventory 84,000
Common stock (authorized and issued
104,000 shares of no par stock) 416,000
Retained earnings 426,000
Total liabilities and shareholders' equity $1,912,000

Additional information:
The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $54,000 but, due to a significant increase in market value, is listed at $128,000. The increase in the land account was credited to retained earnings. The investment in equity securities account consists of stocks of other corporations and are recorded at cost, $24,000 of which will be sold in the coming year. The remainder will be held indefinitely. Notes payable are all long term. However, a $140,000 note requires an installment payment of $35,000 due in the coming year. Inventory is recorded at current resale value. The original cost of the inventory is $164,000.

Required:
Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2018.

Answers

Answer:

Assets

Current assets

Cash $64,000

Accounts receivable (net) $128,000

Inventory $164,000

Available for sale securities $24,000

Total current assets                                            $380,000

Non-current assets

Buildings $754,000

Land $188,000

Machinery $284,000

Patent (net) $104,000

Investment in equity securities $44,000

Accumulated depreciation 259,000

Total non-current assets                                     $1,115,000

Total assets                                                                            $1,495,000

Liabilities and Shareholders' Equity

Current liabilities

Accounts payable $219,000

Current portion of long term debt $35,000

Total current liabilities                                          $254,000

Long term liabilities

Notes payable $473,000

Total long term liabilities                                     $473,000

Stockholders' equity

Common stock (authorized and issued

104,000 shares of no par stock) $416,000

Retained earnings $352,000

Total equity                                                          $768,000

Total liabilities and shareholders' equity                                $1,495,000

Smith Corporation has provided the following information: Cash sales totaled $135,000. Credit sales totaled $289,000. Cash collections from customers for services yet to be provided totaled $48,000. An $10,000 gain from the sale of property and equipment occurred. Interest income totaled $8,700. How much of these items were included in operating income

Answers

Answer:

$434,000

Explanation:

The total amount that should be included in the operating income as follows:

1. Cash sales $135,000

2. Credit sales $289,000

3. Gain from the sale of property and the equipment $10,000

Operating income $434,000

hence, the $434,000 should be included in the operating income

Green marketing refers to:________
A) the purchasing of products from producers whose farming practices are Fair Trade certified.
B) the marketing efforts taken by new and smaller companies that lack both the experience and resources of their major competitors.
C) the marketing efforts to produce,promote,and reclaim environmentally sensitive products.
D) the marketing of products that have in no way been altered or reprocessed by artificial means.
E) the marketing of those products made exclusively from recycled materials.

Answers

Answer:

C) the marketing efforts to produce,promote,and reclaim environmentally sensitive products.

Explanation:

Green marketing can be understood as a way for organizations to concentrate efforts to produce, promote and recover environmentally sensitive products.

It is correct to say that this is a positive marketing for companies to reduce their negative impacts on the environment and adopt environmentally responsible attitudes, due to the fact that today's society expects companies to be positive transforming agents of society, being more than just entities profitable, stekeholders influence companies to adopt strict environmental standards in their processes and thus gain greater reliability, positioning and increase their market value.

Some firms pool overhead into a single plantwide overhead pool, while others accumulate overhead costs into manufacturing departments, each of which has an overhead cost pool and overhead cost application rate. Which approach is likely to provide more accurate cost numbers for cost estimating, pricing, and performance evaluation?

Answers

Answer:

departmental rate

Explanation:

From the question we are informed about Some firms which pool overhead into a single plantwide overhead pool, while others accumulate overhead costs into manufacturing departments, each of which has an overhead cost pool and overhead cost application rate. In this case, the approach likely to provide more accurate cost numbers for cost estimating, pricing, and performance evaluation is departmental overhead rate.

The departmental overhead rate can be regarded as expense rate that is been calculated in production process of a factory for each of the departments. It varies at stages of the production process

Hugh has the choice between investing in a City of Heflin bond at 4.80 percent or investing in a Surething Inc. bond at 7.25 percent. Assuming that both bonds have the same nontax characteristics and that Hugh has a 40 percent marginal tax rate, what interest rate does Surething Inc. need to offer to make Hugh indifferent between investing in the two bonds

Answers

Answer:

8%

Explanation:

Calculation for what interest rate does Surething Inc. need to offer to make Hugh indifferent between investing in the two bonds

Using this formula

Interest rate=City of Heflin bond Percentage rate/(1 − Marginal tax rate)

Let plug in the formula

Interest rate=4.80% / (1 − 40%)

Interest rate=4.80%/60%

Interest rate= 8%

Therefore the interest rate that Surething Inc. need to offer to make Hugh indifferent between investing in the two bonds will be 8%

Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business, these events and transactions occurred:

Apr.
1 Stockholders invested $18,000 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $375 per week, payable monthly.
2 Paid office rent for the month $900.
3 Purchased architectural supplies on account from Burmingham Company $1,300.
10 Completed blueprints on a carport and billed client $1,900 for services.
11 Received $700 cash advance from M. Jason to design a new home.
20 Received $2,800 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,500.
30 Paid $300 to Burmingham Company for accounts payable due.

Required:
Journalize the transactions.

Answers

Answer:

Apr. 1

Dr Cash 18000

Cr Common stock 18000

Apr. 1

No entry

Apr. 2

Dr Rent expense 900

Cr Cash 900

Apr. 3

Dr Supplies 1300

Cr Accounts payable 1300

Apr. 10

Dr Accounts receivable 1900

Cr Service revenue1900

Apr. 11

Dr Cash700

Cr Unearned service revenue700

Apr. 20

Dr Cash 2800

Cr Service revenue 2800

Apr. 30

Dr Salaries and wages expense 1500

Cr Cash1500

Apr. 30

Dr Accounts payable 300

Cr Cash300

Explanation:

Preparation of the journal entries

Apr. 1

Dr Cash 18000

Cr Common stock 18000

Apr. 1

No entry

Apr. 2

Dr Rent expense 900

Cr Cash 900

Apr. 3

Dr Supplies 1300

Cr Accounts payable 1300

Apr. 10

Dr Accounts receivable 1900

Cr Service revenue1900

Apr. 11

Dr Cash700

Cr Unearned service revenue700

Apr. 20

Dr Cash 2800

Cr Service revenue 2800

Apr. 30

Dr Salaries and wages expense 1500

Cr Cash1500

Apr. 30

Dr Accounts payable 300

Cr Cash300

Use the following information available as of December 31 to prepare an income statement for the year and a balance sheet for Goldie Company.
Fees for services performed during the year, $123,000
Accounts payable, $17,800
Accounts receivable, $17,400
Miscellaneous expenses for the year, $9,000
Supplies on hand, $3,300
Notes payable, $25,000
Interest expense on the note for the year, $3,700
Equipment, $92,700
Cash on hand, $11,600
Salaries expense for the year, $71,500
Supplies expense for the year, $8,500
Rent expense for the year, $11,100
Common stock that has been issued, $55,000
Retained earnings at the end of the year, $27,200

Answers

Answer:

Goldie Company

a) Income Statement for the year ended December 31:

Fees for services                             $123,000

Miscellaneous expenses  9,000

Interest expense               3,700

Salaries expense             71,500

Supplies expense             8,500

Rent expense                    11,100   $103,800

Net income                                        19,200

b) Balance Sheet as of December 31:

Assets:

Cash on hand                       $11,600

Accounts receivable              17,400

Supplies on hand                   3,300

Equipment                           92,700

Total assets                     $125,000

Liabilities and Equity:

Accounts payable              $17,800

Notes payable                    25,000

Common stock                  55,000

Retained earnings             27,200

Total liabilities & equity $125,000                    

Explanation:

a) Data and Calculations:

Trial balance as of December 31:

Account Titles                        Debit        Credit

Cash on hand                     $11,600

Accounts receivable            17,400

Supplies on hand                 3,300

Equipment                         92,700

Accounts payable                                $17,800

Notes payable                                      25,000

Common stock                                    55,000

Retained earnings                                 8,000

Fees for services                               123,000

Miscellaneous expenses  9,000

Interest expense               3,700

Salaries expense             71,500

Supplies expense            8,500

Rent expense                   11,100

Totals                        $228,800    $228,800

Retained Earnings at January 1 =       $8,000 (27,200 - 19,200)

Net income                                           19,200

Retained Earnings at December 31 $27,200

Waterway Industries provided the following information on selected transactions during 2021: Dividends paid to preferred stockholders $ 510000 Loans made to affiliated corporations 1400000 Proceeds from issuing bonds 1550000 Proceeds from issuing preferred stock 2090000 Proceeds from sale of equipment 795000 Purchases of inventories 2350000 Purchase of land by issuing bonds 590000 Purchases of treasury stock 1180000 The net cash provided (used) by financing activities during 2021 is

Answers

Answer:

Net cash  provided by financing activities $1,195,000

Explanation:

The computation of the net cash provided by financing activities are as follows:

Cash flows from financing activities

Issue bonds $2,090,000

Issue preferred stock $795,000

Less: Purchase of treasury stock -$1,180,000

Less: Dividend paid to preferred stockholders -$510,000

Net cash  provided by financing activities $1,195,000

a. A ______ of accounts is a list of all accounts a company uses, not including account balances. b. The ______ is a record containing all accounts used by a company, including account balances. c. A(n) ______ describes transcations entering an accounting system, such as a purchase order. d. Increases and decreases in a specific asset, liability,

Answers

Answer:

a. A general ledger of accounts is a list of all accounts a company uses, not including account balances.

b. The Chart of accounts is a record containing all accounts used by a company, including account balances.

c. A source document describes transactions entering an accounting system, such as a purchase order.

d. An account contains a record of decreases and increases in a specific revenue, expense, asset, liability, or equity

The production possibilities frontier will shift outward
A.
if resources are used to produce consumption goods.
B.
if production occurs outside the production possibilities frontier.
C.
if resources are not used in production.
D.
.if resources are not used to produce capital goods
E.
.if technological advances occur

Answers

D. if resources are used to produce capital goods.

Production possibilities frontierThe PPF (production possibilities frontier) is a collection of points along which a country's economy allocates its resources most efficiently to produce as many things as feasible.The Production Possibilities Curve, also known as the Production Possibilities Frontier, is a graph that indicates how many units a firm can produce if it only makes two items and uses all of its resources efficiently.The production possibilities frontier will shift outward D. if resources are used to produce capital goods.

For more information:

https://brainly.com/question/14620714?referrer=searchResults

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