Recent financial statements for Madison Company follow:Recent financial statements for Madison Company follow: Madison Company Balance Sheet June 30Assets Current assets: Cash $21,000 Accounts receivable, net 160,000 Merchandise inventory 300,000 Prepaid expenses 9,000 Total current assets 490,000 Plant and equipment, net 810,000 Total assets $1,300,000 Liabilities and Stockholders' EquityLiabilities: Current liabilities $200,000 Bonds payable, 10% 300,000 Total liabilities 500,000 Stockholders’ equity: Common stock, $5 par value $100,000 Retained earnings 700,000 Total stockholders’ equity 800,000 Total liabilities and stockholders' equity $1,300,000 Madison Company Income Statement For the Year Ended June 30Sales $2,100,000 Cost of goods sold 1,260,000 Gross margin 840,000 Selling and administrative expenses 660,000 Net operating income 180,000 Interest expense 30,000 Net income before taxes 150,000 Income taxes 45,000 Net income $105,000 ccount balances at the beginning of the company’s fiscal year were: accounts receivable, $140,000; and inventory, $260,000. All sales were on account.Required:Compute financial ratios as follows:1. Gross margin percentage. 2. Current ratio. (Round your answer to 2 decimal places.)3. Acid-test ratio.4. Average collection period. 5. Average sale period. 6. Debt-to-equity ratio. 7. Times interest earned.8. Book value per share.

Answers

Answer 1

Answer:

1. Gross margin percentage = 40%

2. Current ratio. (Round your answer to 2 decimal places.) = 2.45

3. Acid-test ratio = 0.95

4. Average collection period = 26 days

5. Average sale period = 81 days

6. Debt-to-equity ratio = 0.63

7. Times interest earned = 6 times

8. Book value per share = $40 per share

Explanation:

1. Gross margin percentage.

This can be calculated using the following formula:

Gross margin percentage = (Gross margin / Sales) * 100 .......... (1)

Where;

Sales = $2,100,000

Gross margin = $840,000

We substitute the values into equation (1) and have:

Gross margin percentage = ($840,000 / $2,100,000) * 100 = 0.40 * 100 = 40%

2. Current ratio. (Round your answer to 2 decimal places.)

This can be calculated using the following formula:

Current ratio = Total current assets / Current liabilities ............ (2)

Where;

Total current assets = $490,000

Current liabilities = $200,000

We substitute the values into equation (2) and have:

Current ratio = $490,000 / $200,000 = 2.45

3. Acid-test ratio.

This can be calculated using the following formula:

Acid-test ratio = (Total current assets – Closing Merchandise Inventory) / Current liabilities ........ (3)

Where;

Total current assets = $490,000

Closing Merchandise Inventory = $300,000

Current liabilities = $200,000

We substitute the values into equation (3) and have:

Acid-test ratio = ($490,000 - $300,000) / $200,000 = $190,000 / $200,000 = 0.95

4. Average collection period.

This can be calculated using the following formula:

Average collection period = (Average accounts receivable / Sales) * 365 days …….. (4)

Where;

Average accounts receivable = (Beginning account receivable + Ending account receivable) / 2 = ($140,000 + $160,000) / 2 = $300,000 / 2 = $150,000

Sales = $2,100,000

We substitute the values into equation (4) and have:

Average collection period = ($150,000 / $2,100,000) * 365 = 26 days approximately.

5. Average sale period.

This can be calculated using the following formula:

Average sale period = 365 days / Inventory turnover ……………………….. (5)

Where;

Inventory turnover = Cost of goods sold / Average inventory = Cost of goods sold / [(Opening inventory + Closing inventory) / 2] = 1,260,000 / [($260,000 + $300,000) / 2] = 1,260,000 / [$560,000 / 2] = 1,260,000 / $280,000 = 4.50

We substitute the values into equation (5) and have:

Average sale period = 365 days / 4.50 = 81 days

6. Debt-to-equity ratio.

This can be calculated using the following formula:

Debt-to-equity ratio = Total liabilities / Total stockholders’ equity ……………………. (6)

Where;

Total liabilities = $500,000  

Total stockholders’ equity = $800,000

We substitute the values into equation (6) and have:

Debt-to-equity ratio = $500,000 / $800,000 = 0.63

7. Times interest earned.

This can be calculated using the following formula:

Times interest earned = Income before interest and tax / Interest expense ……………….. (7)

Where;

Income before interest and tax = Net operating income = $180,000

Interest expense = $30,000

We substitute the values into equation (7) and have:

Times interest earned = $180,000 / $30,000 = 6 times

8. Book value per share.

This can be calculated using the following formula:

Book value per share = Total stockholders’ equity / Number of shares outstanding ……….. (8)

Where;

Total stockholders’ equity = $800,000

Number of shares outstanding = $100,000 / $5 = 20,000 shares

We substitute the values into equation (8) and have:

Book value per share = $800,000 / 20,000 = $40 per share


Related Questions

What is the difference between an authorized dealer and an agent?

Answers

Answer:

the main difference is in their commissions

Explanation:

An authorized dealer is a term to describe anyone who is independent of a  particular business (company), and yet sell the products or services of the business to their customers. In such case, the authorized dealer adds their own margin to cover their costs and profit.

However, an agent is an intermediary appointed by a business to negotiate with customers on behalf of the company (business). Hence, the company or business pays the agents commissions on the sales they make.

Quantitative Problem: Jenna is a single taxpayer with no dependents so she qualifies for one personal exemption. During 2013, she earned wages of $126,000. She doesn't itemized deductions, so she will take the standard deduction and her personal exemption to calculate 2013 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $7,500. How much does Jenna owe to the IRS for taxes

Answers

Answer:

$26,898.25

Explanation:

Jenna'a taxable ordinary income = $126,000 - $6,100 (standard deduction) - $3,900 (personal exemption) = $116,000

ordinary income taxes = $17,891.25 + [($116,000 - $87,850) x 28%] = $25,773.25

capital gains taxes = $7,500 x 15% = $1,125

total tax liability = $25,773.25 + $1,125 = $26,898.25

Suppose you have a choice between investing in a savings account that pays an 8.6% APR, compounded monthly (Bank Monthly) and one that pays an 8.5% APR, compounded daily (Bank Daily). Using only effective annual rates, which bank would you prefer?

Answers

Answer:

8.6% APR, compounded monthly

Explanation:

Effective annual rate = ( 1 + periodic interest rate)^m - 1

8.6% APR = (1.007167)^12 - 1 = 0.089472 = 8.95%

m = number of compounding = 12

periodic interest rate = 8.6% / 12 = 0.717%

8.5% APR = (1.000233)^365 - 1 = 0.088706 = 8.87%

m = number of compounding = 365

periodic interest rate = 8.5% / 365 = 0.02329%

I would prefer the 8.6% APR, compounded monthly because the effective annual rates are higher

You can determine a company's cash situation by analyzing the cash flow statement. The cash flow statement also helps determine whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets.
Which of the following is true for the statement of cash flows?
a. It reflects cash generated and used during the reporting period.
b. It reflects revenues when earned.
Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the following table, identify which type of activity is described by each statement.
Globo-Chem Co. reported net sales of $200 million last year and generated a net income of $44 million. Last year's accounts receivable increased by $20 million. What is the maximum amount of cash that Globo-Chem Co. received from sales last year?
a. $135 million
b. $64 million
c. $90 million
d. $180 million

Answers

Answer:

Which of the following is true for the statement of cash flows?

a. It reflects cash generated and used during the reporting period.

Revenues are recognized when the earning process is completed, and they are not necessarily associated to the collection of cash, e.g. accounts receivable.

Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the following table, identify which type of activity is described by each statement.

What statements? I looked for a similar question:

Ruth Enterprises distributes a holiday bonus to all its employees ⇒ OPERATING ACTIVITYYum Co. uses cash to repurchase 10% of its common stock. ⇒ FINANCING ACTIVITYA company buys some common stock in its supplier's firm with its extra cash. ⇒ INVESTING ACTIVITYA company records a decrease in its total raw materials inventory from the previous year. ⇒ OPERATING ACTIVITY

Globo-Chem Co. reported net sales of $200 million last year and generated a net income of $44 million. Last year's accounts receivable increased by $20 million. What is the maximum amount of cash that Globo-Chem Co. received from sales last year?

d. $180 million

What are the five primary factors of production?

Answers

Land, labor, capital, and entrepreneurship

Which of the following is not an example of the bricks-and-clicks e-tailing business model? A. Walmart.com B. JCPcnney.com C. Drugstore.com D. Staples.com

Answers

Answer:

C

Explanation:

bricks-and-clicks e-tailing business model are businesses that have physical stores and also have an online store.

E-tailing business models only exist online

Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) owner’s equity:_______.
a. accounts payable
b. cash
c. fees earned
d. land
e. supplies
f. wages expense

Answers

Answer:

a. accounts payable -liability

b. cash -asset

c. fees earned -owner’s equity

d. land -asset

e. supplies -asset

f. wages expense- owner’s equity

Explanation:

Accounts payable is an obligation payable to the supplier,hence,it is a liability.

Cash is an asset of the business which is used in purchasing other assets such as inventory or trading securities.

Fees earned would increase retained earnings which is an integral part of the owner's equity

Land is a long-lived asset whose benefits would be derived in more than one year.

Supplies are assets of the business which are used in the business.

Wages expense reduces retained earning in owner's equity

Suppose the following table reflects the total satisfaction (utility) derived from eating slices of pizza. Calculate the marginal utility of each slice of pizza and answer two questions about marginal utility.a. What is the marginal utility of each slice of pizza? Instructions: Complete each of the seven yellow cells below. Enter your responses as a whole number. Indicate negative responses with a (-) negative sign.Quantity Consumed Total Utility Marginal UtilityNo slices 0 -First slice 25 Second slice 50 Third slice 75 Fourth slice 90 Fifth slice 103 Sixth slice 100 Seventh slice 90 b. Marginal utility first diminishes with slice numberc. Marginal utility first turns negative with slice number

Answers

Answer:

a)

quantity consumed         total utility            marginal utility

0                                             0                               0

1                                             25                             25

2                                            50                             25

3                                            75                             25

4                                            90                             15

5                                           103                             13

6                                           100                             -3

7                                            90                            -10

b) slice number 4

c) slice number 6

Explanation:

The law of marginal utility states that as the total number of units consumed increases, the utility yielded by consuming one more unit decreases.

Which of the following is NOT a benefit of setting goals?A. You can focus on important things B. You can take control of your life C. You will be more confident D. All of these

Answers

Answer:

C. You will be more confident

Explanation:

When you consistently set goals in life, it helps you greatly in many ways. For example, you become more focused in regards to what you want in life because you have already set a goal and will work towards to achieve in life. It also helps you taking control of your future. You can manage your timetable for future and all the things you want to o in your life.

However, setting goals may not help you become more confident. Confidence is something that comes from within a person. You have to work on many things to gain confidence in life. Only setting goals will not be sufficient.

The main advantage of __________ is specialization, as it allows the firm to focus its resources toward understanding and serving a single segment.a. focused marketingb. multisegment marketingc. unidimensional marketingd. market concentratione. mass marketing

Answers

Answer:

market concentration

Explanation:

Market Concentration in finance can also be reffered to as " Seller Concentration" it can be explained as how the firms has shares in the total market, it is used to expressed how dominant a smaller firm is in the total market.

Market concentration has some advantages but it's main advantage is specialization, as it allows the firm to focus its resources toward understanding and serving a single segment.

A company's trial balance included the following account balances: Accounts payable $19,287 Accounts receivable 81,416 Cash 73,404 Income tax payable 3,592 Inventories 25,896 Note payable, due in two years 1,789 Equipment 54,928 Stockholders' equity 203,608 Supplies 5,592 Wages payable 12,960 What is the amount of Total Assets on the Balance Sheet

Answers

Answer:

Total Assets on the Balance Sheet is $241,236.

Explanation:

Total Assets would include the total from the Non Current Assets Section and the total from the Current Assets Section of the Balance sheet.

Here is an extract of the Assets Section of the Balance Sheet :

Assets

Non-Current Assets

Equipment                                             $54,928

Total Non-Current Assets                    $54,928

Current Assets

Inventories                                            $25,896

Supplies                                                  $5,592

Accounts receivable                              $81,416

Cash                                                      $73,404

Total Current Assets                          $186,308

Total Assets                                        $241,236

The general ledger of Zips Storage at January 1, 2021, includes the following account balances:Accounts Debits CreditsCash $ 25,700 Accounts Receivable 16,500 Prepaid Insurance 14,200 Land 159,000 Accounts Payable $ 7,800 Deferred Revenue 6,900 Common Stock 154,000 Retained Earnings 46,700 Totals $ 215,400 $215,400 The following is a summary of the transactions for the year:1. January 9 Provide storage services for cash, $145,100, and on account, $57,700.2. February 12 Collect on accounts receivable, $52,600.3. April 25 Receive cash in advance from customers, $14,000.4. May 6 Purchase supplies on account, $11,400.5. July 15 Pay property taxes, $9,600.6. September 10 Pay on accounts payable, $12,500.7. October 31 Pay salaries, $134,600.8. November 20 Issue shares of common stock in exchange for $38,000 cash.9. December 30 Pay $3,900 cash dividends to stockholders.1. Prepare a post-closing trial balance. (Hint: The balance of Retained Earnings will be the amount shown in the balance sheet.)2. Prepare an unadjusted trial balance3. Prepare an adjusted trial balance4-a. Prepare the income statement for the year ended December 31, 2021.4-b. Prepare the classified balance sheet for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)5. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)6. Post the transactions, adjusting entries and closing entries to the T-accounts. Be sure to include beginning balances.

Answers

Answer:

The  solution and the calculation for this question is shown on the first, second , third , fourth and fifth image

Explanation:

A group of investors are discussing the formation of a new property and liability insurer. The proposed com-pany would market a new homeowners policy that combines traditional homeowner coverages with unem-ployment benefits if the policyholder becomes involun-tarily unemployed. Each investor would contribute at least $100,000 and would receive a proportionate interest in the company. In addition, the company would raise additional capital by selling ownership rights to other investors. Management wants to avoid the expense of hiring and training agents to sell the new policy and wants to sell the insurance directly to the public by selective advertising in personal finance magazines.
A. Identify the type of insurance company that best fits the above description.
B. Identify the marketing system that management is considering adopting.

Answers

Answer:

A. Stock insurance company

B. Direct response system marketing strategy

Explanation:

A. A stock insurance company has the stock holders or owners as investors and not policyholders. Profit is made when the stock increases in value over time. In this given question raising additional capital only happens In a stock insurance company.

B. Because the management do not want hiring of agents and personalized selling, they can do this through direct response system marketing strategy. This policy is sold directly to customers through various system such as telemarketing or through the media

Williams Company computed its cost per equivalent unit for direct materials to be $1.90 and its cost per equivalent unit for conversion to be $3.85. A total of 245,000 units of product were completed and transferred out as finished goods during the month. The ending Work in Process inventory consists of 26,000 equivalent units of direct materials and 26,000 equivalent units of conversion costs. The amount that should be reported in ending Work in Process Inventory is:

Answers

Answer:The amount that should be reported in ending Work in Process Inventory is:

=$149,500

Explanation:

Work-in-process inventory is materials that are unfinished or partially completed in a  production process.

Work in Process inventory = Direct materials cost+ conversion cost

  = (equivalent units of direct materials x direct material cost per unit) + (equivalent units of direct materials x conversation cost per unit )

=26,000 x $1.90 +  26,000 x $3.85

$49,400 + $100.100

=$149,500

The amount that should be reported in ending Work in Process Inventory is:

=$149,500

Answer:1408750

Explanation:

Direct Materials 245,000 x 1.90 = 465500

Conversión 245,000x3.85= 943250

Total transferred to finished goods = 465500+943250=1408750

Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 7.5 percent, a YTM of 6 percent, and 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 6 percent, a YTM of 7.5 percent, and also 13 years to maturity. Assume the interest rates remain unchanged and a $1,000 par value.

Required:
a. What are the prices of these bonds today?
b. What do you expect the prices of these bonds to be in one year?
c. What do you expect the prices of these bonds to be in three years?
d. What do you expect the prices of these bonds to be in eight years?

Answers

Answer:

a. What are the prices of these bonds today?

price of bond X:

0.03 = {37.5 + [(1,000 - MV)/26]} /  [(1,000 + MV)/2]

0.03 x [(1,000 + MV)/2] = 37.5 + [(1,000 - MV)/26]

0.03 x (500 + 0.5MV) = 37.5 + 38.46 - 0.03846MV

15 + 0.015MV = 75.96 - 0.03846MV

0.05346MV = 60.96

MV = 60.96 / 0.05346 = $1,140.29

price of bond Y:

0.0375 = {30 + [(1,000 - MV)/26]} /  [(1,000 + MV)/2]

0.0375 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/26]

0.0375 x (500 + 0.5MV) = 30 + 38.46 - 0.03846MV

18.75 + 0.01875MV = 68.46 - 0.03846MV

0.05721MV = 49.71

MV = 49.71 / 0.05721 = $868.90

b. What do you expect the prices of these bonds to be in one year?

price of bond X:

0.03 = {37.5 + [(1,000 - MV)/24]} /  [(1,000 + MV)/2]

0.03 x [(1,000 + MV)/2] = 37.5 + [(1,000 - MV)/24]

0.03 x (500 + 0.5MV) = 37.5 + 41.67 - 0.04167MV

15 + 0.015MV = 79.17 - 0.04167MV

0.05667MV = 64.17/0.05667 = $1,132.29

price of bond Y:

0.0375 = {30 + [(1,000 - MV)/24]} /  [(1,000 + MV)/2]

0.0375 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/24]

0.0375 x (500 + 0.5MV) = 30 + 41.67 - 0.04167MV

18.75 + 0.01875MV = 71.67 - 0.04167MV

0.06042MV = 52.92

MV = 52.92 / 0.06042 = $875.87

c. What do you expect the prices of these bonds to be in three years?

price of bond X:

0.03 = {37.5 + [(1,000 - MV)/20]} /  [(1,000 + MV)/2]

0.03 x [(1,000 + MV)/2] = 37.5 + [(1,000 - MV)/20]

0.03 x (500 + 0.5MV) = 37.5 + 50 - 0.05MV

15 + 0.015MV = 87.5 - 0.05MV

0.065MV = 72.5

MV = 72.5 / 0.065 = $1,115.38

price of bond Y:

0.0375 = {30 + [(1,000 - MV)/20]} /  [(1,000 + MV)/2]

0.0375 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/20]

0.0375 x (500 + 0.5MV) = 30 + 50 - 0.05MV

18.75 + 0.01875MV = 80 - 0.05MV

0.06875MV = 61.25

MV = 61.251 / 0.06875 = $890.91

d. What do you expect the prices of these bonds to be in eight years?

price of bond X:

0.03 = {37.5 + [(1,000 - MV)/10]} /  [(1,000 + MV)/2]

0.03 x [(1,000 + MV)/2] = 37.5 + [(1,000 - MV)/10]

0.03 x (500 + 0.5MV) = 37.5 + 100 - 0.1MV

15 + 0.015MV = 137.5 - 0.1MV

0.115MV = 122.5

MV = 122.5 / 0.115 = $1,065.22

price of bond Y:

0.0375 = {30 + [(1,000 - MV)/10]} /  [(1,000 + MV)/2]

0.0375 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/10]

0.0375 x (500 + 0.5MV) = 30 + 100 - 0.1MV

18.75 + 0.01875MV = 130 - 0.1MV

0.11875V = 111.25

MV = 111.25 / 0.11875 = $936.84

Identify the two basic categories of items on an income statement.

Answers

Answer:

RevenueExpenses

Explanation:

The Income statement is used to check the financial performance of a company within a period by calculating the net income or losses made.

It does so by subtracting the expenses incurred from the revenue realized. These two categories are therefore the most basic items in the income statement and will always appear in them.

Examples of Revenue sources include; Sales and Service Revenues.

Examples of Expenses include; Advertising, Salaries and Depreciation.

Analyse two ways in which employee innovation andcreativity can be developed.

Answers

Answer:

° Ask for ideas from employees

° Provide guidance to employees

Explanation:

° Ask for ideas from employees. For an organization that wants to develop innovation and creativity of its employees, such must come up with an avenue for employees to express their ideas and then create a process internally for submission. The management may allocate time frame for such idea generation and submission; while also supporting it with incentive so that people can think beyond the norm.

° Provide guidance to employee. Generally, virtually everyone can develop an idea, however, the skills needed to making it come to reality is not common to most people. In terms of providing guidance, an innovation and creativity champion could be appointed, who will give support, encouragement, advise and directions to other employees who have developed certain ideas. The aim here is not just to develop an idea, but getting support with the right skills to getting the ideas materialized.

How might a business be in violation of a truth-in-advertising law?
A. By adding surcharges in fine print
B. By claiming its product is healthy without having any scientific
evidence
C. By hiring actors to portray consumers in its commercials
D. By claiming that you'll love its product

Answers

Answer:

B

Explanation:

Apex

A business be in violation of a truth-in-advertising law is  By claiming its product is healthy without having any scientific evidence.

What is  truth-in-advertising?

Wherever consumers see or hear an advertisement, whether on the Internet, radio, television, or elsewhere, federal law requires it to be accurate, not misleading, and backed up by scientific data where necessary.

Thus, option B is correct.

For more details about truth-in-advertising, click here

https://brainly.com/question/9902626

#SPJ2

What would the net value of a long straddle position be if the stock price at expiration is $35?

Answers

Answer:

$1.15

Explanation:

Calculation for the net value of a long straddle position

Using this formula

Net value of a long Straddle=(Stock price at expiration-Strike price)-Put option selling-Call option selling

Let plug in the formula

Net value of a long Straddle = ($35-$29)-$2.90-$1.95

Net value of a long Straddle=$6-$2.90-$1.95

Net value of a long Straddle=$1.15

Therefore the net value of a long straddle position will be the amount of $1.15

Which of the following is a difference between the marketing concept and the selling concept?
a. The marketing concept focuses on customer conquest, whereas the selling concept focuses on targeting the right customers.
b. The marketing concept focuses on short-term sales, whereas the selling concept strives to build long-term customer relationships.
c. The marketing concept is product-centered, whereas the selling concept is production-centered.
d. The marketing concept focuses on customer needs, whereas the selling concept focuses on existing products.
e. The marketing concept takes an inside-out perspective, whereas the selling concept takes an outside-in perspective.

Answers

Answer: d. The marketing concept focuses on customer needs, whereas the selling concept focuses on existing products.

Explanation:

A difference between the marketing concept and the selling concept is that the marketing concept focuses on customer needs, whereas the selling concept focuses on existing products.

A selling concept believes there must be adequate promotion and large scale selling for consumers to purchase a firm's products while according to Marketing concept,the need of the consumers has to be known and identified by the firms.

Which of the following is perhaps the main advantage associated with the use of advertising?
A) It takes little time to develop an advertising campaign.
B) The total dollar layout in advertising is usually low.
C) It is an extremely cost efficient way to reach a large number of people.
D) It can quickly convey a large amount of technical information.
E) It can be quite memorable.

Answers

Answer:

C) It is an extremely cost efficient way to reach a large number of people.

Explanation:

Advertising refers to a marketing strategy in which the company able to promote its goods and services in a various ways like in television, social media, print media, etc so that it could create awareness among the people

According to the given options, the option C is correct as it derives the actual meaning and motive of advertising that it is cost efficient plus it also reaches to a large number of people.

hence, the correct option is c.

Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead, and (d) period costs.For each item, indicate the cost category to which it belongs.ItemCategory1. Property taxes on the factory building. Period Costs Direct Materials Direct Labor Manufacturing Overhead Direct Materials and Manufacturing Overhead2. Production superintendents’ salaries. Period Costs Direct Materials and Manufacturing Overhead Direct Materials Manufacturing Overhead Direct Labor3. Memory boards and chips used in assembling computers. Manufacturing Overhead Direct Materials and Manufacturing Overhead Direct Labor Direct Materials Period Costs4. Depreciation on the factory equipment. Direct Materials Direct Materials and Manufacturing Overhead Direct Labor Manufacturing Overhead Period Costs5. Salaries for assembly-line quality control inspectors. Direct Materials and Manufacturing OverheadDirect MaterialsPeriod CostsDirect Labor or Manufacturing Overhead6. Sales commissions paid to sell laptop computers. Period CostsManufacturing OverheadDirect Materials and Manufacturing OverheadDirect LaborDirect Materials7. Electrical components used in assembling computers. Manufacturing OverheadDirect MaterialsPeriod CostsDirect Materials and Manufacturing OverheadDirect Labor8. Wages of workers assembling laptop computers. Period CostsDirect Materials and Manufacturing OverheadDirect LaborDirect MaterialsManufacturing Overhead9. Soldering materials used on factory assembly lines. Direct Materials and Manufacturing OverheadDirect LaborManufacturing OverheadPeriod CostsDirect Materials10. Salaries for the night security guards for the factory building. Manufacturing OverheadPeriod CostsDirect Materials and Manufacturing OverheadDirect MaterialsDirect Labor

Answers

Answer:

The various costs associated with the Gala Company could be classified into the following:

a. Direct Material Cost

Memory boards and chips used in assembling computers.

b. Direct Labour Cost

Production superintendents’ salaries.

Salaries for assembly-line quality control inspectors.

Wages of workers assembling laptop computers.

c. Manufacturing Overhead

Sales commissions paid to sell laptop computers.

Electrical components used in assembling computers.

Soldering materials used on factory assembly lines.

d. Period Cost

Property taxes on the factory building.

Depreciation on the factory equipment.

Salaries for the night security guards for the factory building.

Explanation:

Answer:

Explanation:\

Which core competency of the Lean Enterprise focuses on building quality in?

Answers

Answer:

Technical Agility

Explanation:

Lean Enterprise is a process of continuous improvements in operations which generates value for the end product. The company have to continuously improve its product so that the customers remains satisfied and newer markets can be easily accessed depending upon the added features in the product.

For this reason, technical agility says that the newer technologies must be adapted or must be integrated with its existing technology because it brings quality to the company end products and makes processes and operations better than before.

Inferring Values Using the Income Statement and Balance Sheet Equations Review the chapter explanations of the income statement and the balance sheet equations. Apply these equations in each of the following independent cases to compute the two missing amounts for each case. Assume that it is the end of the first full year of operations for the company. TIP: First identify the numerical relations among the columns using the balance sheet and income statement equations. Then compute the missing amounts. Independent Total Total Net Total Total Stockholders' Cases Revenues Expenses Income (loss) Assets Liabilities Equity A A $100,000 82,000 $150,000 70,000 $ B 80,000 12,000 112,000 60,000 C 80,000 86,000 104,000 26,000 D 50,000 13,000 22,000 77,000 E 81,000 (6,000) 73,000 28,000

Answers

Answer:

The solution and the calculation is shown on the first uploaded image

Explanation:

Men and women tend to differ somewhat in their communication styles. Which of the following statements regarding those differences is correct?a. Women focus more on competition in their communication; men on cooperation.b. Women use metaphors from the home; men from work.c. In meetings,women tend to withhold their opinions more than men.d. Men focus on requests in their communication; women on orders.

Answers

Answer: In meetings, women tend to withhold their opinions more than men.

Explanation:

Communication is simply the process of exchanging information between the individuals by using signs, symbols of behavior, symbols, or signs. It should be noted that nonverbal gesture, such as the OK symbol that is made in some countries, could be found to be offensive somewhere else.

Men and women tend to differ somewhat in their communication styles. In meetings, women tend to withhold their opinions more than men.

What 4ps known as ?

Answers

Answer:

4 P's are place, price, product, and promotion

Explanation:

The four P's of marketing are the key factors that are involved in the marketing of a good or service. They are the product, price, place, and promotion of a good or service.

Here are simplified financial statements for Watervan Corporation. INCOME STATEMENT (Figures in $millions)Net sales $881Cost of goods sold 741Depreciation 31Earnings before interest and taxes (EBIT) $109Interest before tax $97Taxes 34Net income $63 BALANCE SHEET (Figures in $millions) End of Year Start of YearAssetsCurrent assets $369 $312Long-term assets 258 222Total assets $627 $534Liabilities and shareholders; equityCurrent liabilities $194 $157Long-term debt 108 121Shareholders' equity 325 256Total liabilities and shareholders' equity $627 $534The company's cost of capital is 8.5%a. Calculate Watervan's economic value added (EVA). Do not round intermediate calculations. Enter answer in millions rounded 2 decimal places.Economic value added $_____ millionb. What is the company's return on capital? Use start of year rather than average capital. Do not round intermediate calculations. Enter answer as a percent rounded to 2 decimal places.Return on capital _____%c. What is its return on equity? Use start of year rather than average equity. Enter answer as a percent rounded to 2 decimal places.Return on equity _____%

Answers

Answer:

1. Economic value added = $34.04 million

2. Company's return on capital = 18.79%

3. Return on equity = 24.61%

Explanation:

1. Economic value added (EVA) = NOPAT - capital charge

Where;

NOPAT = EBIT × ( 1 - tax rate )

Tax rate = Taxes / Income before taxes

= 34 / 97 * 100

= 35%

NOPAT = 109 × ( 1 - 35% )

= 70.85

But,

Capital charge = Capital employed × Cost of capital = (Equity + Interest bearing Liabilities) × Cost of capital

= (325 + 108) × 8.5%

= 433 × 8.5%

= 36.81

Therefore,

Economic value added(EVA)

= 70.85 - 36.81

= $34.04 million

2. Company's return on capital(using start of year equity)

= NOPAT / (Total assets - Current liabilities)

= 70.85 / (534 - 157)

= 70.85 / 377

= 0.1879

= 18.79%

Return on capital is 18.79%

3. Return on equity(using start of year equity) = Net income / Shareholder's equity

= 63 / 256

= 1.125

= 24.61%

Return on equity is 24.61%

A measurement of the excess value produced on an investment is called the Economic Value Added (EVA). The "true" cash flow return on capital received from an investment is what is meant by the term return on capital (ROC).

1. Economic value added is  $34.04 million.

2. Company's return on capital is 18.79%.

3. Return on equity is 24.61%.

The calculations are provided below:

Economic value added (EVA) = capital charge - NOPAT

Where;

NOPAT equals EBIT - (tax rate - 1)

Tax rate equals taxes / pre-tax income

= 34 / 97 * 100

= 35%

NOPAT = 109 × (1 - 35%)

= 70.85

But,

Capital employed x Capital charge Cost of capital is equal to equity plus interest-bearing liabilities.

= (325 + 108) × 8.5%

= 433 × 8.5%

= 36.81

Therefore,

EVA or economic value added

= 70.85 - 36.81

equals $34.04 billion

2. The firm's return on capital (using equity at the year's beginning)

(Total Assets - Current Liabilities) = NOPAT

= 70.85 / (534 - 157)

= 70.85 / 377

= 0.1879

= 18.79%

18.79% is the return on capital.

3. Net income divided by shareholder equity, or return on equity (using start-of-year equity).

= 63 / 256

= 1.125

= 24.61%

24.61% is the return on equity.

A measure of a company's financial performance known as economic value added (EVA) is based on the residual wealth that is determined by subtracting its cost of capital from its operating profit, adjusted for taxes on a cash basis.

EVA is also known as economic profit since it aims to identify a company's genuine economic profit. Stern Value Management, initially established as Stern Stewart & Co., is a management consulting business that developed this metric.

Learn more about economic value added here:

https://brainly.com/question/32665926

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Underhill Incorporated manufactures and sells two products: Product Y1 and Product Y0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appears below: Direct Direct Expected Labor Labor Production Per Unit Hours Product Y1 300 6.0 1,800 Product Y0 500 9.0 4,500 Total direct labor-hours 6,300The direct labor rate is $27.50 per DLH. The direct materials cost per unit is $106.10 for Product Y1 and $168.40 for Product Y0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Activity Overhead ---- EXPECTED ACTIVITY -----Activity Cost Pool Measures Cost Product Y1 Product Y0 TotalLabor-related DLHs $151,263 1,800 4,500 6,300Production orders Orders $43,253 300 400 700Order size MHs $863,478 4,900 5,000 9,900Total $1,057,9941. What is the overhead applied to each unit of Product Y1 under activity-based costing?2. If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, what is the overhead cost that would be applied to each unit of Product Y1?

Answers

Complete Question

The complete question is shown on the first uploaded image

Answer:

The  solution and  calculations is shown on the second, third uploaded image

Explanation:

What are the two branches of quantitative management?

Answers

Answer:

management science and operations management.

Explanation:

Quantitative Management is a form of management that is often employed in solving issues relating to numbers or figures. It involves the utilization of mathematical components, statistical formulas, and computerization modeling to create definite solutions and aids the management team to make a better decision.

It is basically divided into two, and they are:

1. Management Science: this deals with the mathematical aspect of the management team decision.

2. Operations Management: this deals with products and services delivery of the firm


5) An international company is producing $50 widgets at a cost of $50,000 and is selling
them for $60,000. If it produces a 51st unit, its total sales will be $62,000 and its total cost will
be $51,500. Should the company produce the 51st unit?

6) Hibw will the following events affect the production possibility frontier of an economy?
Event A: A large fraction of the work force becomes unemployed.
Event B: The productivity of all work force doubles.
Event C: The government requires dairy farmers to destroy part of their herds.

Answers

Answer:

00

Explanation:

00

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