Answer and Explanation:
a. Since an american buys a sony tv so it would decrease the net exports as we know that net exports would be determined by deducting the imports from exports. Here the sony is an import so if an import is increase the net export would decrease
b. As the american purchase a sony stock share so it would increase the net capital outlow as the financial asset and stock would be shown in the capital account. as the money is given to sony so it would increase the net capital outflow
c. Sine the Japanese car would build a factory in Ohio so it decrease the net capital outflow as it is an imported good
d. As German citizen purchase an apple computer so it would rise the net exports as export would increase
Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, $20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.
Required:
Prepare the stockholders’ equity section of the balance sheet for Stahl Company.
Answer:
Stahl Company
Stockholders' Equity section of the balance sheet
As of December 31, 2019
Authorized shares:
Common Stock, 600,000 at $2 par value
6%, Preferred Stock, 80,000 at $20 par value
Issued shares:
Common stock, 75,000 at $2 par value $150,000
6% Preferred stock, 5,000 at $20 par value 100,000
Additional Paid-in Capital, Common stock 975,000
Additional Paid-in Capital, 6% Preferred stock 25,000
Retained earnings, December 31, 2019 500,000
Total equity $1,750,000
Explanation:
a) Data and Calculations:
Authorized shares:
Common Stock, 600,000 at $2 par value
6%, Preferred Stock, 80,000 at $20 par value
Issued shares:
Cash $1,125,000 Common stock $150,000 Additional Paid-in Capital, Common stock (75,000 * $13) $975,000
Cash $125,000 6% Preferred stock, $100,000 Additional Paid-in Capital, 6% Preferred stock $25,000 ($5 * 5,000)
Retained earnings, December 31, 2019 = $500,000
Coronado Industries had 293000 shares of common stock issued and outstanding at December 31, 2020. No common stock was issued during 2021. On January 1, 2021, Coronado issued 200000 shares of nonconvertible preferred stock. During 2021, Coronado declared and paid $110000 cash dividends on the common stock and $79000 on the preferred stock. Net income for the year ended December 31, 2021 was $618000. What should be Coronado's 2021 earnings per common share
Answer:
$3.72
Explanation:
earnings per common share = earning attributable to holder of common stock ÷ weighted average number of common stocks outstanding
therefore,
earnings per common share = $3.72
Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information: Activity Cost Driver Amount M XY Production setups Number of setups $82,000 8 12 Material handling Number of parts 48,000 56 24 Packaging costs Number of units 130,000 80,000 50,000 $260,000 What is the total overhead per unit allocated to Product M using activity-based costing (ABC)
Answer:
Unitary cost= $1.83
Explanation:
First, we need to calculate the allocation rates:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Production setups= 82,000/20= $4,100 per setup
Material handling= 48,000/80= $600 per part
Packaging costs= 130,000/130,000= $1 per unit
Now, we allocate cost to Product M:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Production setups= 4,100*8= 32,800
Material handling= 600*56= 33,600
Packaging costs= 1*80,000= 80,000
Total= $146,400
Finally, the unitary cost:
Unitary cost= 146,400 / 80,000
Unitary cost= $1.83
Suppose Dina gets a sales bonus at her place of work that gives her an extra $800 of disposable income. She chooses to spend $600 and save the remaining $200. From this, you can tell that Dina's marginal propensity to consume (MPC) is , and her marginal propensity to save (MPS) is . Mathematically, it must always be true that: Disposable Income = Therefore, it must also be true that: 1 =
Answer:
MPC = 0.75
MPS = 0.25
Disposable income = amount spent on consumption + amount saved
Marginal Propensity to Consume + Marginal Propensity to Save = 1
Explanation:
Marginal propensity to consume is the proportion of disposable income that is spent on consumption
Marginal propensity to consume = amount consumed / disposable income
Marginal propensity to save is the proportion of disposable income that is saved
Marginal propensity to save = amount saved / disposable income
MPC + MPS = 1
Disposable income = amount spent on consumption + amount saved
MPC = 600 / 800 = 0.75
MPS = 200 / 800 = 0.25
On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $414,430 and has an expected economic life of five years. Aqua expects the residual value at December 31, 2024, to be $52,000. Negotiations led to Maywood guaranteeing a $73,000 residual value. Equal payments under the lease are $104,000 and are due on December 31 of each year with the first payment being made on December 31, 2021. Maywood is aware that Aqua used a 7 % interest rate when calculating lease payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 6 Required: 1. & 2. Prepare the appropriate entries for Maywood on January 1, 2021 and December 31, 2021, related to the lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.)
Answer: See explanation
Explanation:
The appropriate entries for Maywood on January 1, 2021 and December 31, 2021, related to the lease goes thus:
January 1, 2021:
Debit Right of use asset $368291
Credit Lease payment $368291
December 31, 2021:
Debit Ammortization expense $92073
Credit Rights of use asset $92073
Debit Interest expense $25780
Debit Lease payable $78220
Credit Cash $104000
The working to the above entries has been attached
Market Structure and Market Power
The marginal revenue curve of a firm with market power will always lie below its demand curve because of:_____.
a. the discount effect and the substitution effect.
b. the substitution effect and the income effect.
c. the output effect and the discount effect.
d. the output effect and the substitution effect.
Answer: c. the output effect and the discount effect.
Explanation:
The output effect is how firms with market power control their production in honest to make profit.
A firm with market farm will have to reduce it's marginal revenue curve to increase sales.
The marginal revenue will therefore be below the Demand curve to show that the marginal revenue has to be reduced for a team to sell more goods.
Southern Atlantic Distributors began operations in January 2021 and purchased a delivery truck for $40,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 45% of cost in 2021, 30% in 2022, and 25% in 2023. Pretax accounting income for 2021 was $460,000, which includes interest revenue of $68,000 from municipal governmental bonds. The enacted tax rate is 25%.
Assuming no differences between accounting income and taxable income other than those described above:
Required:
1. Complete the following table given below and prepare the journal entry to record income taxes in 2021.
2. What is Southern Atlantic’s 2021 net income?
Answer:
1. Depreciation as per books = Cost of purchase/Useful life
Depreciation as per books = $40,000/4
Depreciation as per books = $10,000
Depreciation as per tax for 2021 = Cost of purchase * Deduction rate
Depreciation as per tax for 2021 = $40,000 * 45%
Depreciation as per tax for 2021 = $18,000
Temporary difference = $18,000 - $10,000
Temporary difference = $8,000
Particulars Amount Tax Rate Tax Recorded as
Pretax accounting income $460,000
Permanent difference -$68,000
Income subject to taxation $392.00 25% $98,000 Income tax expense
Temporary difference -$8,000 25% -$2,000 Deferred tax liability
Income taxable in $384,000 25% $96,000 Income tax payable
current year
Journal Entries - Southern Atlantic Distributors
Date Particulars and Explanation Debit Credit
Income tax expense $98,000
To Income taxes payable $96,000
To Deferred tax liability $2,000
(To record income tax expense)
2. Net income for 2021 = Pretax income - Income tax expense
Net income for 2021 = $460,000 - $98,000
Net income for 2021 = $362,000
When a company uses a
allocation rate there is only one base for allocating all overhead costs to products or other cost objects.
Answer:
company-wide
Explanation:
Using a single company-wide allocation rate implies that only one cost driver (or cost base) is used to allocate all the overhead costs to the product units, batches, departments, or divisions, and other cost objects. This single rate is the plant-wide or company-wide allocation rate. It is opposed to the use of multiple allocation rates, where different rates are calculated and used to allocate overhead costs from different cool pools to the units or activities consuming the services. The company-wide allocation rate is typical with traditional costing method, while the multiple allocation rates are used with ABC costing method.
In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $59,160, and the Purchasing Department had expenses of $20,680 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:
Residential Commercial Government Contract
Sales $2,000,000 $3,250,000 $2,900,000
Weekly payroll (52 weeks per year) 400 250 150
Monthly payroll 80 30 10
Number of purchase requisitions per year 7,500 3,000 2,000
Required:
a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.
b. Residential's service department charge is _______ than the other two divisions because Residential is a user of service department services. Residential has many employees on a weekly payroll, which translates into a ________ number of payroll transactions.
Answer: See explanation
Explanation:
a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.
The solution has been attached.
b. Residential's service department charge is (higher) than the other two divisions because Residential is a (heavy) user of service department services. Residential has many employees on a weekly payroll, which translates into a (larger) number of payroll transactions.
Sanders Co. is planning to finance an expansion of its operations by borrowing $49,200. City Bank has agreed to loan Sanders the funds. Sanders has two repayment options: (1) to issue a note with the principal due in 10 years and with interest payable annually or (2) to issue a note to repay $4,920 of the principal each year along with the annual interest based on the unpaid principal balance. Assume the interest rate is 9.5 percent for each option.
Required
a. What amount of interest will Sanders pay in year 1 under option 1 and under option 2?
Amount of Interest
Under option 1
Under option 2
b. Wihat anount of insyinyder option 1 and under option 27 (Round your final answers to the nearest dollar amount)
Amount of Interest
Under option 1
Under option 2
c. Which option is more advantageous to Sanders?
Option 1
Option 2
Answer:
Following are the responses to the given question:
Explanation:
For point a:
Interest amounts are paid by sanders in year 1 Under option 1 and 2
In option 1
Due principal [tex]\$49,200[/tex]
Rate of Interest [tex]9.50\%[/tex]
Expanse Interest [tex]\$4,674[/tex]
In Option 2
Due principal [tex]\$49,200[/tex]
Rate of Interest [tex]9.50\%[/tex]
Expanse Interest [tex]\$4,674[/tex]
For point b:
Interest amounts are paid by sanders in year 1 Under option 1 and 2
In option 1
Due principal [tex]\$49,200[/tex]
Rate of Interest [tex]9.50\%[/tex]
Expanse Interest [tex]\$4,674[/tex]
In Option 2
Due principal [tex]\$44,280[/tex]
Rate of Interest [tex]9.50\%[/tex]
Expanse Interest [tex]\$4,207[/tex]
For point c:
Option 2 is better for Sanders since it reduces investment expenditure
Hurte-Paroxysm Products, Inc. (HP) of the United States exports computer printers to Brazil, whose currency, the reals (symbol R$) havebeen trading at R$3.40/US$. Exports to Brazil are currently 50,000 printers per year at the reals equivalent of $200 each. A strong rumor exists that the reals will be devalued to R$4.00/$ within two weeks by the Brazilian government. Should the devaluation take place, the exchange rate isexpected to remain unchanged for the foreseeable future. Based on this forecast, HP Products may either (1) maintain the same realprice and sell for fewer dollars, in which case Brazilian volume will not change, or (2) maintain the same dollar price, raise the realprice in Brazil to compensate for the devaluation, and experience a 20% drop in volume. Direct costs in the U.S. are 60% of the U.S. sales price.
Required:
a. What would be the short-run (one-year) impact of each pricing strategy?
b. Which do you recommend?
If HP maintains the same real price and same unit volume, what will be the firm's gross profits?
Answer:
Hurte-Paroxysm Products, Inc. (HP)
The short-run impact of each pricing strategy is as follows:
Alternative 1 Alternative 2
Reduce Price to $170 Maintain Price of $200
Gross profit $2,500,000 $3,200,000
Reduction in Gross Profit $1,500,000 $800,000
b. (2) maintain the same dollar price of $200, raise the real price in Brazil (to R$800 from R$680)to compensate for the devaluation, and experience a 20% drop in volume.
c. If HP maintains the same real price and same unit volume, the firm's gross profits will be $2,500,000.
Explanation:
a) Data and Calculations:
Exchange rate = R$3.40/US$
Current exports of printers per year to Brazil = 50,000
US unit price of printer in dollars = $200
Brazil unit price of printer in R$ equivalent = R$680 ($200 * R$3.40)
Unit price of printer in R$ when reals is devalued = R$800 ($200 * R$4.00)
The reduced dollar price with devaluation, when real price is maintained = $170 (R$680/R$4.00)
Before Devaluation of Brazil's Real (R$):
Sales volume 50,000
Sales revenue $10,000,000 (50,000 * $200)
Direct costs 6,000,000 (50,000 * $120)
Gross profit $4,000,000
Alternative 1 Alternative 2
Reduce Price to $170 Maintain Price at $200
Sales volume 50,000 40,000 (50,000 * 80%)
Sales revenue $8,500,000 $8,000,000 ($200 * 40,000)
Direct costs 6,000,000 4,800,000 ($120 * 40,000)
Gross profit $2,500,000 $3,200,000 ($80 * 40,000)
Direct costs = $6m ($120 * 50,000) = $4.8m ($120 * 40,000)
Lancelot Corporation manufactures tennis gear and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information relates to the company's manufacturing overhead data: Budgeted output units 8,000 units Budgeted machine-hours 24,000 hours Budgeted variable manufacturing overhead costs for 8,000 units $288,000 Actual output units produced 8,500 units Actual machine-hours used 23,750 hours Actual variable manufacturing overhead costs $250,000 What is the flexible-budget amount for variable manufacturing overhead
Answer:
$56,000 Favorable
Explanation:
The computation of the flexible-budget amount for variable manufacturing overhead is shown below
The Budgeted machine hours per unit os
= 24,000 ÷ 8,000
= 3
The Budgeted machine hours allowed for 8,500 units is
= 8,500 × 3
= 25,500
Now the Budgeted variable overhead rate per machine hour is
= $288,000 ÷ 24,000
= $12.00
Now
Flexible-budget amount is
= 25,500 × $12.00
= $306,000
So, the Flexible-budget variance is
= $250,000 - $306,000
= $56,000 Favorable
Transformational leadership is a positive predictor of job performance and organizational commitment.
a. True
b. False
Answer:
a. True
Explanation:
Transformational leadership can be understood as a leadership style whose main objective is the motivation of employees. The transformational leader is the one who seeks to inspire employees through their own example and willingness to work, is the leader who assertively communicates with his team, seeking the autonomy of employees, building a relationship based on trust and increasing of creativity and organizational innovation.
This leadership style is a positive indicator of organizational performance and commitment because it is based on strengthening the organizational culture, where each employee has the possibility to contribute with innovative ideas in favor of the organization's objectives and goals, which creates a sense of greater appreciation and job satisfaction, greater motivation that increases the employee's creativity and productivity.
Shamrock, Inc. issues a $660,000, 10%, 10-year mortgage note on December 31, 2022, to obtain financing for a new building. The terms provide for annual installment payments of $107,412. Prepare the entry to record the mortgage loan on December 31, 2022, and the first installment payment on December 31, 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer: See explanation
Explanation:
The entry to record the mortgage loan on December 31, 2022 will be:
Debit Cash Account $660,000
Credit 10% Mortgage loan payable $660,000
The entry to record the first installment payment on December 31, 2023 will be:
Debit 10% Mortgage loan payable = $41412
Debit Interest Expenses $600,000 × 10% = $60,000
Credit Cash $107412
Vaughn Manufacturing purchased land as a factory site for $1345000. Vaughn paid $116000 to tear down two buildings on the land. Salvage was sold for $8100. Legal fees of $5500 were paid for title investigation and making the purchase. Architect's fees were $46900. Title insurance cost $3900, and liability insurance during construction cost $4200. Excavation cost $15860. The contractor was paid $4300000. An assessment made by the city for pavement was $9500. Interest costs during construction were $260000.
1. The cost of the land that should be recorded by Wilson Co. is:_____.
a. $989,880.
b. $980,480.
c $996,280.
d. $986,880.
2. The cost of the building should be recorded by Wilson Co. is:_____.
a. 2,804,840.
b. 2,813,200.
c. 2,803,800.
d. 3,014,240.
Answer:
Cost of Land = $1,471,800
Cost of Building = $4,626,960
Explanation:
Note: "The options attached to the question are incorrect because its belongs to another question entirely and this can be seen as attached as picture below"
1. Cost of Land = Purchase Value + Cost Incurred to Tear Down two Buildings - Salvage + Legal Fees + Title Insurance Cost + Assessment Cost
Cost of Land = $1345000 + $116000 - $8100 + $5500 + $3900 + $9500
Cost of Land = $1,471,800
2. Cost of Building = Architect's Fees + Liability Insurance Cost + Excavation Cost + Contractor's Payment + Interest Cost
Cost of Building = $46900 + $4200 + $15860 + $4300000 + 260000
Cost of Building = $4,626,960
Garrett Company provided the following information:
Product 1 Product 2
Units Sold 10,000 20,000
Price $20 $15
Variable cost per unit $10 $10
Direct fixed cost $35,000 $75,000
Common fixed cost totaled $46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true?
a. Sales will increase by $300,000.
b. Overall operating income will increase by $2,600.
c. Overall operating income will decrease by $25,000.
d. Overall operating income will not change.
e. Common fixed cost will decrease by $27,600.
Jennings Hardware Store marks up its merchandise by 30%. If a part costs $25.00, which of the following is true?
a. The price is $7.50.
b. The markup is $32.50.
c. The price is $32.50.
d. The markup is pure profit.
e. All of these choices are correct.
Answer:
Overall operating profit will decrease by $25,000
Price is $32.5
Explanation:
A product should be shut down if doing so would make the savings in fixed costs associated with the product to exceed the lost contribution. Other wise , the product should remain.
In a shut down decision , the following relevant cash flows should be considered:
1. Lost contribution from the product to be shut down
2. Savings in fixed directly attributable to the product under consideration.
$
Lost contribution from products 2
(15-10)× 20,000 (100,000)
Savings in direct fixed cos 75,000
Net loss from the drop of product 2 (25,000)
Overall operating profit will decrease by $25,000
Mark up is the proportion of cost as profit
Price = cost + (mark-up %× cost
Price = 25 + (30%× 25) = 32.5
Price is $32.5
State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: Retired $400,000 of bonds, on which there was $3,000 of unamortized discount, for $411,000. Sold 20,000 shares of $5 par common stock for $22 per share. Sold equipment with a book value of $55,800 for $60,000. Purchased land for $650,000 cash. Purchased a building by paying $50,000 cash and issuing a $450,000 mortgage note payable. Sold a new issue of $500,000 of bonds at 98. Purchased 10,000 shares of $40 par common stock as treasury stock at $50 per share. Paid dividends of $1.50 per share. There were 1,000,000 shares issued and 120,000 shares of treasury stock.]
Amount
a. $
b. $
c. $
d. $
e. $
f. $
g. $
h. $
Answer:
A. Effect=CASH PAYMENT
Amount=$411,000
B. Effect=CASH RECEIPT
Amount=$440,000
C. Effect= CASH RECEIPT
Amount=$60,000
D. Effect= CASH PAYMENT
Amount=$650,000
E. Effect= CASH PAYMENT
Amount=$50,000
F.Effect=CASH RECEIPT
Amount=$490,000
G. Effect= CASH PAYMENT
Amount=$400,000
H. Effect=CASH PAYMENT
Amount=$1,320,000
Explanation:
Calculation to State the effect of cash receipt or payment and the amount
A. Based on the information given the effect will be CASH PAYMENT of the amount of $411,000
Effect= CASH PAYMENT
Amount=$411,000
B. Based on the information given the effect will be CASH RECEIPT of the amount of $440,000(20,000*$22))
Effect= CASH RECEIPT
Amount= $440,000
(20,000*$22)
C. Based on the information given the effect will be CASH RECEIPT of the amount of $60,000
Effect=CASH RECEIPT
Amount=$60,000
D. Based on the information given the effect will be CASH PAYMENT of the amount of $650,000
Effect=CASH PAYMENT
Amount= $650,000
E. Based on the information given the effect will be CASH PAYMENT of the amount of $50,000
Effect=CASH PAYMENT
Amount=$50,000
F. Based on the information given the effect will be CASH RECEIPT of the amount of $490,000 (98%*$500,000)
Effect=CASH RECEIPT
Amount=$490,000
(98%*$500,000)
G. Based on the information given the effect will be CASH PAYMENT of the amount of $400,000 (10,000*$40)
Effect=CASH PAYMENT
Amount=$400,000
(10,000*$40)
H. Based on the information given the effect will be CASH PAYMENT of the amount of $1,320,000 (1,000,0000*$1.50)-(120,000*$1.50)]
Effect= CASH PAYMENT
Amount=$1,320,000
[(1,000,0000*$1.50)-(120,000*$1.50)]
=$1,500,000-$180,000
=$1,320,000
Why do you think our economy continues to experience wage differences among groups - please
discuss with relevant examples?
Answer:
Las propuestas principales para revisar la determinación de los salarios, el valor (no) asignado al trabajo y sus efectos sobre hombres y mujeres incluyen: 1. la Economía de la familia y la división del trabajo por género; 2. las diferencias salariales por género: el capital humano y la discriminación en el mercado de trabajo; 3. el dualismo y segmentación del trabajo por género; 4. la segregación ocupacional por género; 5. la economía marxista y el género; 6. el género y la economía según las feministas; 7. la crisis económica y el género; 8. las mujeres y la recesión; 9. los estudios económicos con perspectiva de género y 10. la explotación de las fuentes estadísticas
Explanation:
The Gecko Company and the Gordon Company are two firms whose business risk is the same but that have different dividend policies. Gecko pays no dividend, whereas Gordon has an expected dividend yield of 6 percent. Suppose the capital gains tax rate is zero, whereas the income tax rate is 40 percent. Gecko has an expected earnings growth rate of 10 percent annually, and its stock price is expected to grow at this same rate.
Required:
If the aftertax expected returns on the two stocks are equal (because they are in the same risk class), what is the pretax required return on Gordon’s stock?
Answer:
12.4%
Explanation:
After-Tax Return = Capital Gains Growth Rate (g) + Dividend Yield*(1-Tax Rate)
Capital Gains Growth Rate (g) = After-Tax Return - Dividend Yield*(1-Tax Rate)
Capital Gains Growth Rate (g) = 10 - 6*(1-40%)
Capital Gains Growth Rate (g) = 6.4%
Pre-Tax Return = Capital Gains Growth Rate (g) + Dividend Yield
Pre-Tax Return = 6.4% + 6%
Pre-Tax Return = 12.4%
Hence, the pretax required return on Gordon’s stock is 12.4%
You run a coffee shop where demand is constant week to week. You use 10 bags of roasted coffee each week. Currently, you order whole roasted coffee beans from an out-of-town supplier who charges $20 per bag and a fixed cost of $100 per delivery. Storage for each bag per month is estimated at $1. Assume your coffee shop operates for 52 weeks and 12 months per year. Assume there are no lead times.
Required:
a. Under these costs, what is the optimal order size (in bags)?
b. How often (in months) do I place an order under my solution to part a?
c. What are my annual total costs (including purchasing costs) under my solution to part a?
Answer: See explanation
Explanation:
a. Under these costs, what is the optimal order size (in bags)?
Periods per year = 52 weeks.
Weekly demand = 10bags
Annual demand, D = 10 × 52 = 520
Set up cost, S = $100
Item cost = $20.00
Holding cost per year, H= $12.00
We'll then calculate the economic order quantity, Q which will be:
= ✓2×S×D/H
= ✓(2×100×520/12
= ✓104000/12
= ✓8667
= 93
Optimal order size = 93 bags
b. How often (in months) do I place an order under my solution to part a?
Time between orders will be:
= Period per year / Orders per year
= 12 / 5.59
= 2.15
c. What are my annual total costs (including purchasing costs) under my solution to part a?
Annual total cost will be:
= Holding cost + Order cost + Purchase cost
= $11,517.14
Note that:
Orders per year = D/Q = 520/93 = 5.59
CHRO Conversations: SVP of HR Tim Richmond, AbbVie
People will work harder if they know their results are noticed and rewarded appropriately. At AbbVie, the Human Resources area places special emphasis on rewarding employees based on levels of contributions. This activity is important because it will examine how one company utilizes talent philosophies that differentiate rewards based on employee results.
The goal of this activity is to help you recognize how strategic goals of a company can be supported by HR activities that reward and recognize employees who produce at high levels. These rewards go well beyond salary and include opportunities for career growth and development.
At AbbVie, people want to know their ________ and results will be rewarded appropriately.
a) hard work
b) time off
c) verbal communication
d) philosophical ideals
At AbbVie, HR tends to think of "more and better and now" as it relates to career opportunities, human capital capabilities, and raising the bar on a continual basis for:__________
a) career growth.
b) higher salaries.
c) better benefits.
d) higher quantity outputs.
e) higher quality outputs.
The "talent philosophy" at AbbVie includes differentiating levels of:________
a) development and hiring.
b) performance and rewards.
c) rewards and terminations.
d) performance and hiring.
e) development and global travel.
AbbVie has a standard in hiring of "replacing every person who leaves with someone":________
a) younger.
b) with a college degree.
c) who has more experience.
d) better.
e) from another country.
AbbVie does not want to pay its ________ performers the same as it pays its higher performers.
a) older
b) more experienced
c) lower
d) international
e) specialized
Answer:
1. a) hard work
2. e) higher quality outputs
3. b) Performance and rewards
4. d) better
5. c) lower
Explanation:
AbbVie Human resource is mostly concerned with the performance of their employees and rewarding them according to their capabilities. The employees who perform better and completes their tasks within given time are rewarded more than those employees who fail to perform better.
The Human Resource department is an aspect of government that manages the people that work in the organization. The following answers to the prompts about the Human Resources at an organization called AbbVie have been indicated below;
At AbbVie, people want to know their (A. Hardwork) and results will be rewarded appropriately.At AbbVie, HR tends to think of "more and better and now" as it relates to career opportunities, human capital capabilities, and raising the bar on a continual basis for (A. career growth).The "talent philosophy" at AbbVie includes differentiating levels of (B. performance and rewards).AbbVie has a standard in hiring of "replacing every person who leaves with someone" (D. better).AbbVie does not want to pay its (C. lower) performers the same as it pays its higher performers
The excerpt above shows the policies that the Human Resource department of an organization has taken to move the system forward. They have resolved to reward only the top performers.
This will motivate the staff that are not doing well to get better at their jobs.
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Waterway Industries is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6400000 on March 1, $5250000 on June 1, and $8650000 on December 31. Waterway Industries borrowed $3200000 on January 1 on a 5-year, 11% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 3-year, $6440000 note payable and an 10%, 4-year, $12550000 note payable.
Required:
What are the weighted-average accumulated expenditures?
Answer:
$8,395,833
Explanation:
Calculation to determine What are the weighted-average accumulated expenditures
Weighted-average accumulated expenditures
=($6,400,000 × 10/12) + ($5,250,000 × 7/12) + ($8,650,000 × 0/12)
Weighted-average accumulated expenditures=$5,333,333+$3,062,500+0
Weighted-average accumulated expenditures=$8,395,833
Therefore the weighted-average accumulated expenditures will be $8,395,833
A company must decide between scrapping or reworking units that do not pass inspection. The company has 22,000 defective units that cost $6 per unit to manufacture. The units can be sold as is for $2.00 each, or they can be reworked for $4.50 each and then sold for the full price of $8.50 each. If the units are sold as is, the company will be able to build 22,000 replacement units at a cost of $6 each, and sell them at the full price of $8.50 each.
What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them? (Deductible amounts should be indicated with a minus sign.)
Sell as scrap Rework
Sales of scrap units
Sales of reworked units
Cost to rework units
Opportunity cost of not making new units
Incremental income (loss) $0 $0
The company should:
Answer: See explanation
Explanation:
Sell as scrap:
Sales of scrap units:
= 22000 × $2.00
= $44,000
Rework:
Sale of reworked unit = 22000 × $8.50 = $187,000
- Cost to rework unit = 22000 × $4.50 = $99,000
- Opportunity cost of not making new unit = 22000 × ($8.50 - $6) = $45000
Incremental income(loss) = $33000
Since the incremental Income from scrap is more than reworking, then it implies that the company should sell as scrap.
Answer:
A. Sales as scrap $44,000
Rework $33,000
B. The company should sell as scrap
Explanation:
A. Calculation to determine the incremental income from selling the units as scrap and reworking and selling the units
SALES AS SCRAP REWORK
Sales of scrap units $44,000 $0
( 22000 × $2.00)
Sale of reworked unit $0 $187,000
( 22000 × $8.50 )
Less Cost to rework unit $0 ($99,000)
(22000 × $4.50)
Less Opportunity cost of not making new unit
$0 ($55,000)
[22000 × ($8.50 - $6)]
Incremental income(loss) $44,000 $33,000
Therefore the incremental income from selling the units as scrap is $44,000 and reworking and selling the units is $33,000
B. Based on the above calculation the company should sell as SCRAP because the incremental income of SALES AS SCRAP is higher than that of rework.
Bridgeport Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2020.
Purchase
Cash paid for equipment, including sales tax of $7,400 $155,400
Freight and insurance cost while in transit 2,960
Cost of moving equipment into place at factory 4,588
Wage cost for technicians to test equipment 5,920
Insurance premium paid during first year of operation on this equipment 2,220
Special plumbing fixtures required for new equipment 11,840
Repair cost incurred in first year of operations related to this equipment 1,924
Construction
Material and purchased parts (gross cost $296,000; failed to take 2% cash discount) $296,000
Imputed interest on funds used during construction (stock financing) 20,720
Labor costs 281,200
Allocated overhead costs (fixed-$29,600; variable-$44,400) 74,000
Profit on self-construction 44,400
Cost of installing equipmen 6,512
Compute the total cost to be capitalized for each of these two pieces of equipment.
Purchase equipment $enter a dollar amount
Construction equipment $enter a dollar amount
Answer:
See below
Explanation:
Total cost of equipment
Cash paid for equipment, including sales tax
$155,400
Freight and insurance cost while in transit
$2,960
Cost of moving equipment into place at factory
$4,588
Wage cost for technicians to test the new equipment
$5,920
Special plumbing fixtures required for new equipment
$11,840
Total cost of equipment
$180,708
Insurance premium paid reported in the profit and loss statement as insurance expense for $2,220
Repair cost of equipment reported in the profit and loss statement as repair and maintenance expense for $1,924
••All expenses up to put to use of fixed assets should be capitalized
Total cost of construction
Material and purchased price [$296,000 × 0.98]
$290,080
Labor cost
$281,200
Overhead cost
$74,000
Cost of installing equipment
$6,512
Total cost of construction
$651,792
•Material and purchase parts costs after discount is taken back because its cash equivalent price
•Inputted interest on funds used during construction(stock financing) is treated as opportunity cost and it should not be reported.
Businesses rarely consider profits when supplying goods and services.
True of False
It takes courage to kill a project, but sometimes you know it has to be done. Some common symptoms of a failing project are ill-defined initial requirements, constant changes in scope, excessive changes in resources and personnel, and extreme stress/tension over anticipated changes. Yet, a project may have followed the "book" and done everything right, but still need to be terminated. This was the case with a project in the U.K. where the client was highly committed to the project, contributing time, resources, and prompt decisions. The scope was clear, completion criteria agreed upon, the budget and timeframe acceptable to all. Early on, however, an unavoidable scope change had to be made, requiring a 20 percent increase in time and a 10 percent increase in cost, agreed to by the client. As the project approached the end of the fi rst phase, it was clear that the quality and schedule were both deteriorating, as indicated in progress reports to both the client and senior management. A quick review showed that the results were not going to be acceptable. With the agreement of the PM, an outside Expert was called in to review the effort to date and make a recommendation. Then a joint meeting was held with the Expert, the PM, the Program Manager, and the primary contractor where it was decided that the best thing to do was to work together to complete phase one and then terminate the project, with a clean handover to another team to tackle phase two. Although disappointing to everyone, the close and frequent communications of both progress and concerns throughout the project with upper management and the client, offered in timely, digestible amounts, reduced their expectations and protected the client from a surprise at the end. Honest, consistent communication throughout the project life cycle resulted in improved trust, integrity, and confi dence in the vendor and their team.
Required:
a. What are your thoughts about doing everything right and the project still failing?
b. Does the admonition "Never surprise the boss!" now make more sense? Why?
c. Do you think the scope change at the beginning was the problem here, or was there going to be a problem anyway?
Solution :
a). There are several methodologies for the projects that are followed by the different companies. The successful of any project depends upon the far sightedness of the project manager and the ability of him to the execute the project in a proper order. One of the key factors that makes a project complete is the behavior of the people.
The vendors incur some excessive or some unnecessary costs to the project of they are not properly managed. The duty of the project manager is to foresee the scope of change if there is any.
If there were some additional cost and additional time for the completion of the project, then it means that it will delay the benefits of the project to others and hence attracts lower return of investments. Even though everything went according to the papers or the book, there is a lack of dedication on the project manager who believed and trusted the vendor too much.
b). A manager needs complete and clear information for an effective decision making. In any project, surprises gives a lesser amount of time and also less information related tot he project to resolve any issues that occurs at any time. It also disappoints the management that leads to spur of moment decision. So, 'Never surprise he Boss' makes a complete sentence.
c). The major factor why the project failed is the changed in the scope. The objectives are poorly cited and the timelines went overhead including the cost of the project. Too much trust of the project manager on the vendor also lead to the schedule and the quality issues.
what is the reading about?
Placid Lake Corporation acquired 90 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $640,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $7,000 per year.
Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $540,000. Scenic reported net income of $350,000. Placid Lake declared $170,000 in dividends during this period; Scenic paid $64,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows:
Placid Lake Scenic
Inventory $380,000 $114,000
Land 840,000 440,000
Equipment (net) 640,000 540,000
During 2020, intra-entity sales of $195,000 (original cost of $90,000) were made. Only 30 percent of this inventory was still held within the consolidated entity at the end of 2020. In 2021, $330,000 in intra-entity sales were made with an original cost of $83,000. Of this merchandise, 40 percent had not been resold to outside parties by the end of the year.
Required:
a. What is consolidated net income for Placid Lake and its subsidiary?
b. If the intra-entity sales were upstream, how would consolidated net income be allocated to the controlling and interest?
c. If the intra-entity sales were downstream, how would consolidated net income be allocated to the controlling and interest?
Answer:
See the attached excel file for all the calculation related parts a, b, and c.
From the attached excel file, we have:
a. Consolidated net income for Placid Lake and its subsidiary is $815,700.
b-1. Noncontrolling interest share of consolidated net income is $27,570.
b-2. Placid Lakes share of consolidated net income is $788,130.
c-1. Noncontrolling interest share of consolidated net income is $34,300.
c-2. Placid Lakes share of consolidated net income is $781,400.
Explanation:
Note: See the attached excel file for all the calculation related parts a, b, and c.
Question 2
Mt Jack is a director of a company from which he receives a salary of RM15.000 per month He
also received director's fees of RM5.000 during the year ended 31 December 2020 The
benefits provided to him included:
a Accommodation for which the company pays monthly rental of RM5 000 include
RM1,500 for the furniture
b. Employer's contribution to the Employee's Provident Fund of 13% of salary
c. A company new car costing RM150.000
d. A part-time gardener who is paid RM400 per month
A domestic servant who is paid RM500 per month
f Leave passage to Japan for Mr Jack and his family and the company paid RM5.000 for
their air fait
Mc Jack also received the following Malaysian income during the year ended 31 December
2020
a
Interest income of RM3.800 from a 15-month fixed deposit in a Maaysian bank
b Royalties of RM22 500 from the publisher of his book on taxation
c. Rental income of R12 500 per month. He also paid assessment and out rent of
RM1,350 per annum as well as cost of repairs amounting to RM4500 made up of
repainting (RM1,000) and extension of the kitchen RM3.500)
Mr Jack's wife earns a salary of RM6 200 per month. She is allowed to make use of a company
car (cost RM82 000) during office hours but is not allowed to drive it home She also has
interest income of RM850 from her savings account with Bank Simpanan Nasional She made a
cash donation of RM2 500 to an approved institution as well as donated books worth RM200
to the same institution
Required: Compute the aggregate income for by Mr Jack and his wife for the year of
assessment 2020 separate assessment)
Answer:
sorry i cant answer this :(
Presented below is a list of items that could be included in the intangible assets section of the balance sheet. Choose the items that meet the qualifications to be treated as an intangible asset on the balance sheet.
a. Unsuccessful legal defense costs of trademark
b. Legal costs in securing copyright
c. Purchased patent
d. Investment in subsidiary
e. Filing fees for patent
f. Purchase of a franchise
g. Successful legal defense costs for copyright
h. Research costs for new drug
i. Sale of a franchise
j. Internal development costs for patent
k. Purchased copyright
l. Initial training costs for startup of new business
Answer:
Intangible Assets:
c. Purchased patent
f. Purchase of a franchise
k. Purchased copyright
Explanation:
Intangible assets are financial resources that have no physical properties. They must be acquired by the entity as a result of past events to be recognized. Examples of intangible assets are Brands, Goodwill, Intellectual properties (e.g. Trade Secrets, Patents, Trademark, and Copyrights), Licensing rights, Customer lists, and qualified R&D.
They are usually amortized over their estimated useful life. Annually, the entity must carry out impairment tests to determine if there is an impairment loss, especially for indefinite intangible assets which are not amortized.
The legal costs are not intangible assets on their own but can be capitalized. This means that they can be included in the affected intangible assets.