Answer:
Let x be a random variable representing the price of a Congo-imported black diamond. Let the higher price be p. Then,
P(x < p) = P(x < (p - mean)/sd) = P(x < (p - 60,430)/21,958.08) = P(z < 2)
Therefore,
(p - 60,430)/21,958.08 = 2
p - 60,430 = 2 x 21,958.08 = 43,916.16
p = 34,916.16 + 60,430 = 104.346.16
Therefore, The required price is $104,346.16
Explanation:
Collins Co. produces 10,000 units of sewing machines annually. Per unit data are given below: Selling price $150 Direct materials, direct labor, and variable manufacturing overhead 60 Fixed manufacturing overhead 30 Variable selling and administrative expenses 40 Fixed selling and administrative expenses 10 The company has received a special, one-time-only order for 400 units of the product with a selling price of $100. There would be a 60% reduction in variable selling and administrative expenses on this special order. In addition, total fixed manufacturing overhead and total fixed selling and administrative expenses of the company would not be affected by the order. If Collins Co. accepts the order, it will have no effect on other customers. What is the financial advantage or disadvantage of accepting the special order
Answer:
$9,600 Financial advantage
Explanation:
Variable Cost per unit for special order = $60 + $40*40%
Variable Cost per unit for special order = $60 + $16
Variable Cost per unit for special order = $76
The financial advantage or disadvantage of accepting the special order = Sales Revenue from special offer - Variable Cost Cost for special offers
= $100*400 units - $76*400 units
= $40,000 - $30,400
= $9,600 Financial advantage (Disadvantage).
The basic determinant of the transactions demand for money is the multiple choice 1 interest rate. level of nominal GDP. reserve ratio. price level. b. The basic determinant of the asset demand for money is the multiple choice 2 interest rate. price level. level of nominal GDP. reserve ratio. c. Total money demand is the multiple choice 3 vertical sum of the private demand for money and the public demand for money. vertical sum of the transactions demand for money and the asset demand for money. horizontal sum of the consumer demand for money and the producer demand for money. horizontal sum of the transactions demand for money and the asset demand for money. d. The equilibrium interest rate in the money market is determined multiple choice 4 by how much the interest rate fluctuates over time. at the intersection of the aggregate demand and aggregate supply curves. at the intersection of the total demand for money curve and the supply of money curve. by the Fed. e. Complete the following statement: If there is an increase in the total demand for money, multiple choice 5 the equilibrium interest rate will rise. the money supply will rise. the money supply will fall. the equilibrium interest rate will fall. PrevQuestion 1 of 10 Total1 of 10Visit question mapNext
Answer:
1. level of nominal GDP.
2. interest rate.
3. horizontal sum of the transactions demand for money and the asset demand for money.
4. at the intersection of the total demand for money curve and the supply of money curve.
5. the equilibrium interest rate will rise.
Explanation:
In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.
Simply stated, money refers to any asset which can be used to purchase goods and services by customers.
This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.
Additionally, the rate at which an asset can be used to purchase any goods or services refers to its liquidity. Thus, liquidity is a quality or characteristics of money as a medium of exchange. Therefore, money is a generally accepted medium of exchange around the world.
The three (3) main functions of money all over the world are;
I. Medium of exchange.
II. Unit of account.
III. Store of value.
Some of the characteristics of money includes the following statements;
1. The basic determinant of the transactions demand for money is the level of nominal GDP.
2. The basic determinant of the asset demand for money is the interest rate.
3. Total money demand is the horizontal sum of the transactions demand for money and the asset demand for money.
4. The equilibrium interest rate in the money market is determined at the intersection of the total demand for money curve and the supply of money curve.
5. If there is an increase in the total demand for money, the equilibrium interest rate will rise.
To combat a recession with discretionary fiscal policy, Congress and the president should A) decrease government spending to balance the budget. C) lower interest rates and increase investment by increasing the money supply. B) decrease taxes to increase consumer disposable income. D) raise taxes on interest and dividends, but not on personal income.
Answer:
B) decrease taxes to increase consumer disposable income.
Explanation:
Recession can be defined as a period of economic meltdown, in which there's a general decline in all economic activities such as trade.
Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.
A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.
Furthermore, if during a severe recession, Congress passes legislation to cut taxes, this would be an example of an expansionary fiscal policy.
According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers
Hence, to combat a recession with discretionary fiscal policy, Congress and the president should decrease taxes to increase consumer disposable income.
Bugle's Bagel Bakery is investigating the purchase of a new bagel making machine. This machine would provide an annual operating cost savings of $3,650 for each of the next 4 years. In addition, this new machine would allow the production of one new type of bagel which would result in selling 1,500 dozen more bagels each year. The company earns a contribution margin of $0.90 on each dozen bagels sold. The purchase price of this machine is $13,450 and it will have a 4 year useful life. Bugle's discount rate is 14%. (Ignore income taxes.)
The total annual cash inflow from this machine for capital budgeting purposes is:
a. $4,750
b. $5,150
c. $5,000
d. $3,650
Answer:
Total annual cash inflow= $5,000
Explanation:
The total annual cash inflow will be the sum of the savings in operating costs and the incremental contribution from the sale of the bagels.
Annual contribution from Bagel = 1,500×$0.90=1350
Operating cost savings = 3,650
Total annual cash inflow = 1,350 + 3,650 =5,000
Total annual cash inflow= $5,000
Baymont Corporation purchased inventory on account on March 3, 2017, for a gross price of $50,000. The company purchased additional inventory on account on March 10, 2017, for a gross price of $140,000. Baymont Corporation paid for the frst purchase on April 25, 2017, and for the second purchase on March 20, 2017. The company prepares monthly adjusting journal entries and uses the perpetual inventory method. Prepare journal entries for each transaction.
Answer:
Baymont Corporation
Journal Entries:
March 3, 2017: Debit Inventory $50,000
Credit Accounts payable $50,000
To record the purchase of goods on account.
March 10, 2017: Debit Inventory $140,000
Credit Accounts payable $140,000
To record the purchase of goods on account.
March 20, 2017: Debit Accounts payable $140,000
Credit Cash $140,000
To record the payment for goods purchased on account.
April 25, 2017: Debit Accounts payable $50,000
Credit Cash $50,000
To record the payment for goods purchased on account.
Explanation:
a) Data and Analysis:
March 3, 2017: Inventory $50,000 Accounts payable $50,000
March 10, 2017: Inventory $140,000 Accounts payable $140,000
March 20, 2017: Accounts payable $140,000 Cash $140,000
April 25, 2017: Accounts payable $50,000 Cash $50,000
For the products launched by companies to succeed, it is important that Multiple Choice marketing is aggressive and separate from other functional areas. marketing endeavors are directed solely at manipulating consumers. all the functional areas of the business are coordinated with marketing decisions. the marketing environment changes constantly. one environmental force is not interconnected with another environmental force.
Answer:
all the functional areas of the business are coordinated with marketing decisions.
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
According to the economist Philip Kotler in his book titled "Marketing management" he stated that, there are five (5) levels of a product. This includes;
1. Core benefit.
2. Generic product.
3. Expected product.
4. Augmented product.
5. Potential product.
The core benefit of a product can be defined as the basic (fundamental) wants or needs that is being satisfied, met and taken care of when a customer purchase a product.
Hence, for the products launched by companies to succeed, it is important that all the functional areas of the business are coordinated with marketing decisions.
Marketing mix can be defined as the choices about product attributes, pricing, distribution, and communication strategy that a company blends and offer its targeted markets (customers) so as to build and maintain a desired response.
At December 31, 2021, Sunland Company had a credit balance of $15,300 in Allowance for Doubtful Accounts. During 2022, Sunland wrote off accounts totaling $12,800. One of those accounts of $1,700 was later collected. At December 31, 2022, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $26,800. Prepare journal entries to record the 2022 transactions of Sunland Company.
Answer:
See below
Explanation:
During 2022, Sunland Company wrote off accounts totalling $12,800
Entry
Allowance for doubtful account Dr $12,800
---------- To Accounts receivable Cr $12,800
(Being entries to write off accounts initially provided for)
Only one of those accounts ($1,700) was later collected
Entry
Cash account Dr $1,700
----------- To Bad debt expense Cr $1,700
(Being entries to record receipt of cash from account previously written off)
At December 31, 2022 an aging schedule indicated that the balance in Allowance for Doubtful accounts should be $26,800
Entry
Bad debt expense Dr $24,300
---------------- To Allowance for doubtful debt Cr $24,300
(Being entries to recognize bad debt expense at year end based on aging schedule)
Workings
Adjustment required for doubtful accounts
= $26,800 - ($15,300 - $12,800)
= $24,300
Select the examples of Warehousing and Distribution Center Operations workplaces. Check all that apply.
ships
stores
ports
trains
warehouses
offices
Hello! :D
The correct answer is B, C, E, F!
Explanation:
Good Luck!! ^-^
The most accurate examples of warehousing and distribution center operations offices are stores, ports, warehouses, and offices.
What is warehousing and distribution?A warehouse is a building for storing items. Warehouses are utilized by manufacturers, importers, exporters, wholesalers, shipping businesses, customs, etc.
They are typically massive, simple homes in commercial parks on the outskirts of cities, towns, or villages. They typically have loading docks to load and sell off items from trucks.
Sometimes warehouses are designed for the loading and unloading of products at once from railways, airports, or seaports.
They regularly have cranes and forklifts for transferring items, which can be typically located on ISO-preferred pallets and loaded into pallet racks.
Stored items can consist of any uncooked materials, packing materials, spare parts, components, or completed items related to agriculture, manufacturing, and production.
In India and Hong Kong, a warehouse can be called a "godown." There are also godowns inside the Shanghai Bund. Distribution (or placement) is one of the four factors of the advertising and marketing blend.
Distributing is the procedure of creating a service or product to be had for the purchaser or commercial enterprise consumer who desires it.
This may be accomplished at once via the means of the manufacturer or carrier issuer or through the usage of oblique channels with vendors or intermediaries.
The three different factors of the advertising and marketing blend are product, pricing, and promotion. Decisions about distribution want to be taken in keeping with a company's average strategic imaginative and prescient and mission.
Developing a coherent distribution plan is a significant factor in strategic planning. At the strategic level, there are 3 major methods of distribution, specifically mass, selective and extraordinary distribution.
The quantity and form of intermediaries decided on in large part rely on the strategic approach. The average distribution channel ought to upload this cost to the purchaser.
So, it is clear that alternatives B, C, E, and F, stores, ports, warehouses, and offices, are the perfect alternatives.
Learn more about warehousing and distribution, refer to:
https://brainly.com/question/15681337
Your company purchased a vacant lot 3 years ago for $1.2 million and at that time spent $100,000 to convert it into a parking lot, which now generates $120,000/year in revenue. You are considering building a distribution center on the lot with a construction cost of $5 million and an annual OCF of $750,000. Which of these cash flows should be included in a capital budgeting analysis for the distribution center?
I. The $1.2 Million purchase price for the lot
II. The $100,000 conversion cost
III. The $120,000/ year parking revenue
IV. The $5 million construction cost for the distribution center
V. The $750,000/year OCF from the distribution center
a. I and II only
b. I, III, IV only
c. IV, and V only
d. III, IV, and V only
e. ALL of them
Answer:
The cash flows that should be included in a capital budgeting analysis for the distribution center are:
d. III, IV, and V only
Explanation:
a) Data and Calculations:
Parking Lot Distribution Center
Initial investment costs $1.2 million $5 million
Conversion costs 100,000 0
Annual revenue $120,000 $750,000
b) Not all the cash flows should be included in a capital budgeting analysis for the distribution center. The initial investment and conversion costs are sunk costs. The annual revenue from the parking lot becomes an opportunity cost when the lot is converted to a distribution center.
You are upgrading to better production equipment for your firm's only product. The new equipment will allow you to make more of your product in the same amount of time. Thus, you forecast that total sales will increase next year by over the current amount of units. If your sales price is per unit, what are the incremental revenues next year from the upgrade?
Answer:
$473,760
Explanation:
Calculation to determine the incremental revenues next year from the upgrade
Using this formula
Incremental revenues= Units* Percentage Increase in total sales*Sales price
Let plug in the formula
Incremental revenues=94000 units* 24% * $21
Incremental revenues= $473,760
Therefore the incremental revenues next year from the upgrade will be $473,760
Generic Company sponsors an unfunded postretirement plan providing healthcare benefits. The following information relates to the current year's activity of Generic's postretirement benefit plan: Postretirement benefit expense $150 million Service cost $120 million Amortization of net gain–AOCI $10 million Prior service cost–AOCI none Retiree benefits paid (end of year) $30 million The interest cost for the year is: Group of answer choices $40 million $20 million $30 million $50 million
Answer: $40 million
Explanation:
Based on the information given in the question, the interest cost for the year will be calculated as follows:
Interest cost = Postretirement benefit expense - Service cost + Amortization of net gain–AOCI
Interest cost = $150 million - $120 million + $10 million
Interest cost = $40 million
Being Human, Inc., recently issued new securities to finance a new TV show. The project cost $14.6 million, and the company paid $785,000 in flotation costs. In addition, the equity issued had a flotation cost of 7.6 percent of the amount raised, whereas the debt issued had a flotation cost of 3.6 percent of the amount raised. If the company issued new securities in the same proportion as its target capital structure, what is the company’s target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.)
Answer: 1.6631
Explanation:
The company’s target debt-equity ratio will be calculated thus:
Let's assume x = equity
Let's assume (1-x) = debt
Total funds needed = $14,600,000 + $785,000 = $15,385,000
Then, we calculate the flotation which will be:
15,385,000 × (1 - f) = 14,600,000
15,385,000 - 15,385,000f = 14,600,000
-15,385,000f = 14,600,000 - 15385000
- 15,385,000f = -785,000
f = -785000 / -15385000
f = 0.05102
Then,
(7.6% × x) + (3.6% × 1-x) = 0.05102
(0.076 × x) + (0.036 × 1-x) = 0.05102
0.076x + 0.036 - 0.036x = 0.05102
0.076x - 0.036x = 0.05102 - 0.036
0.04x = 0.01502
x = 0.01502/0.04
x = 0.3755
Equity = 0.3755 = 3.755%
Debt = 1-x = 1 - 0.3755 = 0.6245
Debt equity ratio = Debt / Equity
= 0.6245/0.3755
= 1.6631
The debt-equity ratio is 1.6631.
A process plant making 5000 kg/day of a product selling for $1.75/kg has annual variable pro- duction costs of $2 million at 100 percent capacity and fixed costs of $700,000. What is the fixed cost per kilogram at the breakeven point? If the selling price of the product is increased by 10 percent, what is the dollar increase in net profit at full capacity if the income tax rate is 35 percent of gross earnings?
Answer:
a. Breakeven point = Fixed cost / Contribution margin
Contribution margin = Selling price - Variable costs per unit
Variable cost per unit = 2,000,000 / (5,000 * 365 days)
= $1.10
Contribution margin = 1.75 - 1.10
= $0.65
Breakeven point = 700,000 / 0.65
= 1,076,923 kg
Fixed cost per kilogram at those units is:
= 700,000 / 1,076,923
= $0.65
_________________________________________________________
b. Net profit at original prices:
= (Contribution margin * units produced) - Fixed costs
= (0.65 * 5,000 * 365) - 700,000
= $486,250
Less taxes:
= 486,250 * (1 - 35%)
= $316,062.50
Net profit after price increase:
New selling price = 1.75 * 1.1
= $1.93
Net profit = ((Selling price - Variable cost) * units sold) - fixed cost
= ( (1.93 - 1.10) * 5,000 * 365) - 700,000
= $814,750
After tax:
= 814,750 * (1 - 35%)
= $529,587.50
Dollar increase:
= 529,587.50 - 316,062.50
= $213,525
Which of the following statements is TRUE? Group of answer choices Dependent demand is directly related to the demand of other stock-keeping units (SKUs) and can be calculated without needing to be forecasted. When using ABC analysis, C items require close control by operations managers as they account for a large dollar value but a relatively small percentage of total items. Stockouts occur in a fixed-quantity system (FQS) whenever the lead-time demand exceeds the replenishment level (M). Inventory is any physical asset held for future use or sale.
Answer:
A). Dependent demand is directly related to the demand of other stock-keeping units (SKUs) and can be calculated without needing to be forecasted.
Explanation:
The first statement asserts a true claim as it correctly states that 'dependent demand is promptly associated to the demand of further SKUs and therefore, it can be measured without requiring any prediction.' Dependent demand is characterized as a demand that is reliant on the other products' demand. This is why such demands are directly influenced by a rise or fall in the other products' demand and this is the reason due to which dependent demand can be calculated easily without any prediction because it will observe a similar impact as its associated product would face. Thus, option A is the correct answer.
Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at January 1, 2021, the company issued 320,000 executive stock options permitting executives to buy 320,000 shares of Pastner stock for $28 per share. One-fourth of the options vest in each of the next four years beginning at December 31, 2021 (graded vesting). Pastner elects to separate the total award into four groups (or tranches) according to the year in which they vest and measures the compensation cost for each vesting date as a separate award. The fair value of each tranche is estimated at January 1, 2021, as follows:
Vesting Date Amount Vesting Fair Value per Option
Dec. 31, 2018 25% $4.00
Dec. 31, 2019 25% $4.40
Dec. 31, 2020 25% $4.80
Dec. 31, 2021 25% $5.60
Required:
a. Determine the compensation expense related to the options to be recorded each year 2018-2021, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately.
b. Determine the compensation expense related to the options to be recorded each year 2018-2021, assuming Pastner uses the straight-line method to allocate the total compensation cost.
Answer:
Pastner Brands
a. Compensation expense related to the options to be recorded each year, allocated with separate tranches:
Vesting Date Amount Vesting Fair Value Compensation
per Option Expense
Dec. 31, 2018 25% = 80,000 $4.00 $320,000
Dec. 31, 2019 25% = 80,000 $4.40 352,000
Dec. 31, 2020 25% = 80,000 $4.80 384,000
Dec. 31, 2021 25% = 80,000 $5.60 448,000
Total 100% 320,000 $1,504,000
b. Compensation expense related to the options, allocated using the straight-line method:
= $376,000
Explanation:
a) Data and Calculations:
Executive stock options issued = 320,000
Options exercise price = $28 per share
Number of tranches for the options = 4
Number of options exercisable in each tranche = 80,000
Vesting Date Amount Vesting Fair Value Compensation
per Option Expense
Dec. 31, 2018 25% = 80,000 $4.00 $320,000 (80,000 * $4.00)
Dec. 31, 2019 25% = 80,000 $4.40 352,000 (80,000 * $4.40)
Dec. 31, 2020 25% = 80,000 $4.80 384,000 (80,000 * $4.80)
Dec. 31, 2021 25% = 80,000 $5.60 448,000 (80,000 * $5.60)
Total 100% 320,000 $1,504,000
Compensation expense, using the straight-line method = $376,000 ($1,504,000/4)
On January 1, 2019, Agree Company issued $85,000 offive-year, 8% bonds when the market interest rate was 12%. The issue price of the bonds was $62,401. Agree uses theeffective-interest method of amortization for bond discount. Semiannual interest payments are made on June 30 and December 31 of each year. Which of the following is the correct journal entry to record the first interest payment? (Round all amounts to the nearest whole dollar.)
A. Interest Expense 3,400 Discount on Bonds Payable 1,700 Cash 5,100
B. Interest Expense 5,100 Cash 5,100
C. Interest Expense 3,744 Discount on Bonds Payable 344 Cash 3,400
D. Interest Expense 5,100 Discount on Bonds Payable3,400 Cash 1,700
Answer:
c. Interest Expenses $ 3,744 Discount on Bonds Payable 344 Cash 3,400
Explanation:
Date General Journal Debit Credit
Interest Expenses $3,744
($62,401*12%*6/12)
Discount on Bonds Payable $344
Cash $3,400
($85,000*8%*6/12)
So, the correct journal entry to record the first interest payment is Interest Expenses $3,744, Discount on Bonds Payable $344, Cash $3,400
Allen Corporation has provided the following information: Cash sales totaled $120,000. Credit sales totaled $209,000. Cash collections from customers for services yet to be provided totaled $38,000. Interest income totaled $7,700. Interest expense totaled $14,000 Required: How much of these items should be included in calculating operating income
Answer and Explanation:
The Interest Income and Interest Expense would not be considered while determining the operating income
The cash collections from customers would be treated to be an unearned revenue so the same would be deduted from the sales
The Cash Sales would be
= $120,000 - $38,000
= $82,000.
And, the Credit Sales would be $209,000.
SO, the Total Sales is
= $82,000 + $209,000
= $291,000.
The Unearned Revenue of $38,000 would be shown in the Current Liabilities section of the Balance Sheet.
An ______ in the interest rate (r), ceteris paribus, will cause planned investment to ______.
Answer:
An increase in the interest rate (r), ceteris paribus, will cause planned investment to decrease.
Explanation:
An increase in the interest rates determined by the Federal Reserve would imply that the American financial system would pay larger sums of money for direct investments in banks or bonds, which would stop capital investment outside the public financial system, that is, in stocks. private, real estate investments, etc., since money would be invested at a higher profit in safer sectors of the market.
Dechow Company has outstanding 20,000 shares of $50 par value, 6% cumulative preferred stock and 50,000 shares of $10 par value common stock. The company declares and pays cash dividends amounting to $160,000.
a. If there are no preferred dividends in arrears, how much in total dividends, and in dividends per share, does Dechow pay to each class of stock?
b. If there are one year’s dividends in arrears on preferred stock, how much in total dividends, and in dividends per share, does to each class of stock?
Answer:
a. Dividends to Preferred shareholders:
Total dividends:
= 20,000 * 50 * 6%
= $60,000
Dividends per preferred share:
= 60,000 / 20,000 shares
= $3.00 per share
Common shareholder dividends
Common shareholders get the remaining dividends that did not go to Preferred shareholders:
= 160,000 - 60,000
= $100,000
Common dividends per share:
= 100,000 / 50,000 shares
= $2.00 per share
b. These are cumulative preferred shares which means that accrued dividends must be paid off:
Preferred shares in total would be:
= 60,000 * 2
= $120,000
Preferred dividends per share:
= 120,000 / 20,000
= $6.00 per share
Common dividends in total:
= 160,000 - 120,000
= $40,000
Common dividends per share:
= 40,000 / 50,000 shares
= $0.80 per share
An injection-molding machine has a first cost of $1,050,000 and a salvage value of $225,000 in any year. The maintenance and operating cost is $235,000 with an annual gradient of $75,000. The MARR is 10%. What is the most economic life
The following information relating to a company's overhead costs is available. Actual total variable overhead $ 75,000 Actual total fixed overhead $ 14,000 Budgeted variable overhead rate per machine hour $ 2.50 Budgeted total fixed overhead $ 15,000 Budgeted machine hours allowed for actual output 32,000 Based on this information, the total variable overhead variance is:
Answer:
$5,000 favorable
Explanation:
The computation of the total variable overhead variance is given below:
= Budgeted machine hours allowed for actual output × Budgeted variable overhead rate per machine hour - Actual total variable overhead
= 32,000 hours × $2.50 - $75,000
= $80,000 - $75,000
= $5,000 favorable
Since the favorable is more than the actual so it should be favorable
The marketing concept emphasizes satisfying customer needs and wants. How does marketing satisfy your needs as a college student? Are certain aspects of your life influenced more heavily by marketing than others? Provide examples
Answer:
JAGAJABAAJAKABAGAHAJABSBS
Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 4% of sales. Assume that sales were $280,000 for January. On February 7, a customer received warranty repairs requiring $180 of parts and $105 of labor.a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. b. Journalize the entry to record the warranty work provided in February.
Answer:
Explanation:
a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty.
Debit: Product Warranty expense Account = $280,000 × 4% = $11200
Credit Product Warranty payable = $11200
b. Journalize the entry to record the warranty work provided in February.
Debit Product warranty payable Account $285
Credit Supplies account $180
Credit Wages payable account $105
Olga's Company has a sales budget for next month of $150,000. Cost of goods sold is expected to be 40 percent of sales. All goods are purchased in the month used and paid for in the month following purchase. The beginning inventory of merchandise is $5,000, and an ending inventory of $6,000 is desired. Beginning accounts payable is $38,000. The cost of goods sold for next month is expected to be a.$60,000. b.$40,000. c.$89,000. d.$90,000.
Answer:
a. $60,000
Explanation:
Costs of goods sold = Budgeted sales for next month * 40%
Costs of goods sold = $150,000 * 40%
Costs of goods sold = $60,000
So therefore, the cost of goods sold for next month is expected to be $60,000.
One way to support the domestic marketing campaign is through industry participation. List three other pillars of this campaign.
Answer: strategic pillars: content, data, and execution
Explanation:
The balance sheet of ABC reports total assets of $1,500,000 and $1,700,000 at the beginning and end of the year, respectively. Net income and sales for the year are $240,000 and $2,000,000, respectively. What is ABC's return on assets (round to nearest whole percentage, just put in the number with no %)
Answer:
15%
Explanation:
Average Assets = (Opening asset + Closing asset) / 2
Average Assets = ($1,500,000 + $1,700,000) / 2
Average Assets = $3,200,000 / 2
Average Assets = $1,600,000
Return on assets = Net Income / Average assets
Return on assets = $240,000 / $1,600,000
Return on assets = 0.15
Return on assets = 15%
Question 4
Write a short essay about Controlling Inventory".
Explanation:
The necessity of inventory control is to maintain a reserve (store) of goods that will ensure manufacturing according to the production plan based on sales requirements and the lowest possible ultimate cost.
Losses from improper inventory control include purchases in excess than what needed, the cost of slowed up production resulting from material not being available when wanted. Each time a machine is shut down for lack of materials or each time sale is postponed or cancelled for lack of finished goods. Thus a factory loses money.
To promote smooth factory operation and to prevent piling up of stock or idle machine time proper quantity of material must be on hand when it is wanted. Proper inventory control can reduce such losses to a great extent.
Shelly needs $3,500 to buy equipment for her new business. Ted agrees to loan Shelly $3,500, accepting as collateral Shelly's car. They put their agreement in writing and sign it. Shelly keeps possession of the car. Does Ted have an enforceable security interest
Fruitvale Company prepared the following income statement for 2018:
Sales $242
Cost of goods sold 175
Gross profit 67
Operating expenses:
Salaries expense $12
Depreciation expense 14
Rent expense 5 31
Operating income 36
Loss on sale of land (4)
Net income $32
Also, the company’s December 31 balance sheet revealed the following:
2018 2017
Accounts payable $24 $15
Accounts receivable 33 14
Land 78 60
Inventory 27 20
Wages payable 7 8
The net increase (decrease) in cash from operating activities for 2018 was: __________
Answer:
$32
Explanation:
Particulars Amount
Cash from operating activities
Net Income $32
Add: Loss on sale of land $4
Depreciation Expense $14
Working Capital Changes
Increase in Accounts Payable $9
Increase in Accounts Receivable -$19
Increase in Inventory -$7
Decrease in Wages Payable -$1
Cash flow from operations $32
On October 1, 2020, Adams Company paid $4,800 for a one-year insurance policy with the insurance coverage beginning on that date. On December 31, 2020, Adams needs to make adjusting entries to reflect the part of insurance that it has consumed. How will this adjusting entry affect the company's current ratio on December 31 2020
Answer:
Decrease the Current ratio
Explanation:
Current Ratio = Current Assets ÷ Current Liabilities
When the insurance is consumed, the assets in prepaid insurance decreases. So (three) 3 months insurance of $1,200 was consumed. Resulting in an expense of $1,200 and a decrease in assets of $1,200. Overall effect is a decrease in current ratio