Answer:
1. Clients'
2. The principal real estate broker (PREB) may require the buyer to sign a release before returning the money.
Explanation:
In this scenario, a buyer properly revokes the offer after receiving the property condition disclosure and requests the return of the buyer's earnest money the principal broker is holding in a clients' trust account. The principal real estate broker (PREB) may require the buyer to sign a release before returning the money.
Additionally, a principal real estate broker (PREB) can be defined as an individual who is licensed to individually provide a professional real estate service or work with other licensed brokers.
The amount of money being paid to a broker by a buyer as an initial payment to sign a purchase agreement letter is referred to as the earnest money. A principal real estate broker collects the earnest money from a buyer on behalf of the seller of a property such as land, buildings etc.
Gi Gi's Dance Studio provided $280 of dance instruction and rented out its dance studio to the same client for another $165. The client paid immediately. Identify the general journal entry below that Gi Gi's will make to record the transaction.
Answer:
General Journal entry for GI is given below
Explanation:
General journal entry for GI's for its dance studio and the dance instructions would be
Entry DEBIT CREDIT
Cash $445
Renta income $165
Services provided $280
NOTE: As GI's is receiving cash for providing services and the studio, cash would be debited and Rental income and Services revenue would be credited.
On January 1, Parson Freight Company issues 9.0%, 10-year bonds with a par value of $3,400,000. The bonds pay interest semiannually. The market rate of interest is 10.0% and the bond selling price was $3,168,967. The bond issuance should be recorded as:
Answer:
January 1
Cash $3168967 Dr
Discount on Bonds Payable $231033
Bonds Payable $3400000 Cr
Explanation:
The issuance of bond on January 1 is at a discount as the coupon rate paid by the bond is less than the market interest rate. In such case the bond is issued at a lower value than its par/face value. The discount on bonds payable is the difference between the face value and the cash received on issuance.
The entry to record the issues include a debit to cash account as cash is received, a debit to the discount on bonds payable account for the amount of discount and a credit to bonds payable account as liability is created as a result of the issuance of the bonds.
Discount = 3400000 - 3168967 = 231033
Your estimate of the market risk premium is 9%. The risk-free rate of return is 3.7% and General Motors has a beta of 1.7. According to the Capital Asset Pricing Model (CAPM), what is its expected return?
Answer:
19%
Explanation:
The market risk premium is 9%
The risk free rate of return is 3.7%
General motors have a beta of 1.7
Therefore, using the capital asset pticing model the expected return can be calculated as follows
= 3.7% + 1.7×9%
= 3.7% + 15.3%
= 19%
Hence the expected return is 19%
ABC uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $393,500 ($594,000), purchases during the current year at cost (retail) were $3,408,000 ($5,193,600), freight-in on these purchases totaled $159,500, sales during the current year totaled $4,666,000, and net markups were $414,000. What is the ending inventory value at cost
Answer:Ending Inventory at Cost= $981,248.40
Explanation:
Cost Retail
Beginning inventory $393,500 $594,000
purchases $3,408,000 $5,193,600
freight in $159,500,
net markups $414,000
Total $3,961,000 $6,201,600
Sales $4,666,000
Ending Inventory at Retail:=(Beginning inventory + purchases +net markups - Sales during the current year
594,000 + $5,193,600 + $414,000- $4,666,000, = $1,535,600
Cost to Retail Ratio:( Beginning inventory + purchases+freight in)/ (Beginning inventory + purchases +net markups )
=($393,500 + $3,408,000 +$159,500,) ÷ (594,000 + $5,193,600 + $414,000) =$3,961,000/$6, 201, 600= 0.638= 0.639
Ending Inventory at Cost: Ending Inventory at Retail x Cost to Retail Ratio
$1,535,600 x 0.639 = $981,248.40
Let M be the number of units to make and B be the number of units to buy. If it costs $2 to make a unit and $3 to buy a unit and 4000 units are needed, the objective function is
Min 2M + 3B
Min 4000 (M + B)
Max 2M + 3B
Max 8000M + 12000B
Answer:
Min 2M + 3B
Explanation:
Data provided in the question
Let us assume M denotes the making units
B denotes the buying units
So,
Making cost per unit = $2
And, the buying cost per unit = $3
And, the total number of units required = 4,000 units
Based on the above information, the objective function is Min 2M + 3B.
This indicates the minimum total cost
Hence, the correct option is A.
An increase in input prices causes:___________
a) the market supply to shift inward, driving the equilibrium price downward.
b) the market supply to shift outward, leading to a higher equilibrium price.
c) the market supply to shift inward, driving the equilibrium price higher.
d) the supply curve to decrease and the demand curve to decrease.
Answer: the market supply to shift inward, driving the equilibrium price higher.
Explanation:
An increase in input prices will result into a rise in the production costs. This will result in a leftward shift of the supply curve.
Therefore, the market supply will shift inward, driving the equilibrium price higher. This simply means that there will be lesser supply of the product and hence, increase in price.
Discounted payback period. Given the following two projects and their cash flows, LOADING..., calculate the discounted payback period with a discount rate of %, %, and %. What do you notice about the payback period as the discount rate rises? Explain this relationship. With a discount rate of %, the cash outflow for project A is:
Answer:
the numbers are missing, so I looked for a similar question:
Cash Flow A B
Cost $10,000 $105,000
Cash flow year 1 $3,571 $21,000
Cash flow year 2 $3,571 $10,500
Cash flow year 3 $3,571 $42,000
Cash flow year 4 $3,571 $31,500
Cash flow year 5 $3,571 $5,250
Cash flow year 6 $3,571 $0
With a discount rate of 5%, 10% & 15%
Discounted cash flows for project A:
5% 10% 15%
Cost $10,000
Cash flow year 1 $3,571 $3,401 $3,246 $3,105
Cash flow year 2 $3,571 $3,239 $2,951 $2,700
Cash flow year 3 $3,571 $3,085 $2,683 $2,348
Cash flow year 4 $3,571 $2,938 $2,439 $2,042
Cash flow year 5 $3,571 $2,798 $2,217 $1,775
Cash flow year 6 $3,571 $2,665 $2,016 $1,544
discounted payback period:
5% = 3.09 years
10% = 3.46 years
15% = 3.9 years
The higher the discount rate, the longer the discounted payback period.
Discounted cash flows for project B:
5% 10% 15%
Cost $105,000
Cash flow year 1 $21,000 $20,000 $19,091 $18,261
Cash flow year 2 $10,500 $9,524 $8,678 $7,940
Cash flow year 3 $42,000 $36,281 $31,555 $27,616
Cash flow year 4 $31,500 $25,915 $21,515 $18,010
Cash flow year 5 $5,250 $4,114 $3,260 $2,610
discounted payback period:
5% = more than 5 years, the project's NPV is negative -$9,166.37
10% = more than 5 years, the project's NPV is negative -$20,901.42
15% = more than 5 years, the project's NPV is negative -$30,563.54
Ultimate Butter Popcorn issues 5%, 15-year bonds with a face amount of $58,000. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid semiannually. At what price will the bonds issue
Answer:
So, the bonds will issue at par which means that they will issue at their face value of $58000
Explanation:
If the coupon rate paid by the bond and the market interest rates are same, the bonds are always issued at par. We can check this through the following.
To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 0.05 * 1/2 * 58000 = $1450
Total periods (n)= 15 * 2 = 30
r or YTM = 5% * 1/2 = 2.5% or 0.025
The formula to calculate the price of the bonds today is attached.
Bond Price = 1450 * [( 1 - (1+0.025)^-30) / 0.025] + 58000 / (1+0.025)^30
Bond Price = $58000
Two mutually exclusive projects have an initial cost of $60,000 each. Project A produces cash inflows of $30,000, $37,000, and $20,000 for Years 1 through 3, respectively. Project B produces cash inflow of $80,000 in Year 2 only. The required rate of return is 10 percent for Project A and 11 percent for Project B. Which project(s) should be accepted and why
Answer:
Project A should be accepted because the NPV is higher. this means that project A is more profitable than project B
Explanation:
Net present value van be used to determine which project should be accepted.
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
For project A :
Cash flow in year 0 = $-60,000
Cash flow in year 1 = $30,000
Cash flow in year 2 = $37,000
Cash flow in year 3 = $20,000
I = 10%
NPV = $12,877.54
For project B :
Cash flow in year 0 = $-60,000
Cash flow in year 1 = $0
Cash flow in year 2 = $80,000
Cash flow in year 3 = $0
I = 11%
NPV = $4,929.79
Project A should be accepted because the NPV is higher. this means that project A is more profitable than project B
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Additional short-term borrowings $ 20,000
Purchase of short-term investments 5,000
Cash dividends paid 16,000
Interest paid 8,000
Compute cash flows from financing activities using the above company information. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
Cash flow from from financing activities = $(4,000)
Explanation:
The cash flow from financing activities includes that entails any or a combination of the following; issuance and redemption of stocks , issuance and redemption of debts and payment of interest and/or dividend, and receipt of dividend and or interest.
Kindly note that the purchase of short term investment is not a financing activity but rather an investing activity
Cash flow $
Short term borrowing 20,000
Cash dividend paid (16,000)
Interest paid (8,000)
Total Cash flow (4000)
Cash flow from from financing activities = $(4,000)
The risk-free rate of return is 3.2 percent and the market risk premium is 4.6 percent. What is the expected rate of return on a stock with a beta of 2.12
Answer:
12.95%
Explanation:
The risk free rate of return is 3.2%
The market risk premium is 4.6%
The beta is 2.12
Therefore, the expected rate of return on a stock can be calculated as follows
= 3.2% + (2.12×4.6%)
= 3.2% + 9.752
= 12.95%
Hence the expected rate of return on a stock is 12.95%
Calculate the effective annual interest rate for the following: a. A 3-month T-bill selling at $97,820 with par value $100,000. (Round your answers to 2 decimal places.) b. A 8% coupon bond selling at par and paying coupons semiannually.
Answer:
A.9.2%
B.8.16%
Explanation:
a. Calculation for the Effective annual rate on three-month T-bill
First step
T-bill =(Par value-Selling amount)/Par value
Let plug in the formula
T-bill =($100,000-$97,820)/$97,820
T-bill =$2,180/$97,820
T-bill =0.02228
Now let calculate for the Effective Annual Interest rate
Effective Annual Interest rate = (1 + 0.02228)^4– 1
Effective Annual Interest rate = (1.02228)^4-1
Effective Annual Interest rate =1.0921-1
Effective Annual Interest rate =0.0921×100
Effective Annual Interest rate=9.2%
B. Calculation for the effective annual interest rate for A 8% coupon bond .
First step
Semi-annual return=8%/2
Semi-annual return=4%
Second step is to calculate for the effective annual interest rate
Using this formula
Effective annual interest rate =(1+Semi-annual return percentage)^2-1
Let plug in the formula
Effective annual interest rate=(1+0.04)^2-1
Effective annual interest rate=(1.04)^2-1
Effective annual interest rate=1.0816-1
Effective annual interest rate=0.0816×100
Effective annual interest rate=8.16%
Therefore the Effective annual rate on three-month T-bill will be 9.2% while that of coupon bond is 8.16%
.
Jack, an employee of Desert Sky, Inc., has gross salary for May of . The entire amount is under the OASDI limit of $118,500 and thus subject to FICA. He is also subject to federal income tax at a rate of %. Which of the following is a part of the journal entry for accrual of the employer payroll taxes? (Assume a FICAOASDI Tax of % and FICAMedicare Tax of %.) Jack's income to date exceeds the FUTA and SUTA tax income limits
Answer:
Credit to Cash for $4,995 is correct
Explanation:
here is a complete question
has a gross salary for May of $7,000. The entire amount is under the OASDI limit of $118,500 and thus subject to FICA. He is also subject to federal income tax at a rate of 21%. Which of the following is a part of the journal entry to record the disbursement of his net pay? (Assume a FICA-OASDI Tax of 6.2 % and FICA-Medicare Tax of 1.45%. Round the final answer to the nearest dollar.) A. debit to Cash for $4,995 B. debit to FICA Tax Payable of $4,995 O C. debit to Employee Income Tax Payable of $4,995 D. credit to Cash for $4,995
The computation of the amount that becomes the part for accrual the employer payroll taxes is shown below:
Gross Pay $7,000
Less: Deductions
Federal Income tax $1,470 ($7000 × 21%)
FICA-OASDI tax $434 ($7000 × 6.2%)
FICA-Medicare tax $102 ($7,000 × 1.45%)
Total Deductions 2006
Net pay $4,995
Sound Systems (SS) has 200,000 shares of common stock outstanding at a market price of $37 a share. SS recently paid an annual dividend in the amount of $1.20 per share. The dividend growth rate is 4 percent. SS also has 4,500 bonds outstanding with a face value of $1,000 per bond that are selling at 99 percent of par. The bonds have a 6 percent coupon and a 6.7 percent yield to maturity. If the tax rate is 34 percent, what is the weighted average cost of capital?
Answer:
the weighted average cost of capital is 6.31 %
Explanation:
Weighted Average Cost of Capital (WACC) is the return required by the providers of long term permanent source of capital to the firm.
WACC = Ke × (E/V) + Kp × (P/V) + Kd × (D/V)
Ke = Cost of equity
= $1.20 / $37.00 + 0.04
= 0.0724 or 7.24 %
E/V = Weight of Equity
= (200,000 × $37) ÷ (200,000 × $37 + 4,500 × $1,000 × 99%)
= $7,400,000 ÷ ($7,400,000 + $4,455,000)
= 62.42 %
Kd = Cost of Debt
= Interest × (1 - tax rate)
= 6.70 % × (1 - 0.34)
= 4.42 %
D/V = Weight of Debt
= (4,500 × $1,000 × 99%) ÷ (200,000 × $37 + 4,500 × $1,000 × 99%)
= $4,455,000 ÷ ($7,400,000 + $4,455,000)
= 37.28 %
Therefore,
WACC = 7.24 % × 62.42 % + 4.42 % × 37.28 %
= 6.31 %
A customer sells short 100 shares of ABC at $17 as the initial transaction in a new margin account. The customer must deposit:_______.
A. $750.
B. $1,500.
C. $2,000.
D. $3,000.
Answer: $2,000
Explanation:
Regulation T which governs such actions in the investment market would only require that the customer deposit 50% of the total amount to be called which would be;
= 50% * (100 * 17)
= $850
However, as this is a new margin account, there is a set minimum that must be reached to enable it to be open. That minimum is $2,000.
The depreciation method that allocates an equal portion of the total depreciable cost for a plant asset to each unit produced is called:
Answer:
Accelerated depreciation
Explanation:
The term that is being described in the question is known as an Accelerated depreciation. In other words, this is a depreciation method where an asset loses its book value at a much more rapid pace than more traditional methods. This method is mostly used in accounting or for income tax purposes because it allows for a greater deduction in the first couple of years of the asset's life cycle.
Answer:
The units-of-production depreciation method
Explanation:
The units-of-production depreciation method assigns an equal amount of expense to each unit produced or service rendered by the asset.
Torque corporation is expected to pay a dividend of $1 in the upcoming year. dividends are expected to grow at a rate of 6% per year. the risk free rate of return is 5% and the expected return on the market portfolio is 13%. the stock of torque corporation has a beta of 1.2. what is the return you should require on torque stock?a) 12%,
b) 14.6%,
c) 15.6%,
d) 20%
Answer:
The required rate of return on stock is 14.6% and option b is the correct answer.
Explanation:
The required rate of return is the minimum return that investors demand/expect on a stock based on the systematic risk of the stock as given by the beta. The expected or required rate of return on a stock can be calculated using the CAPM equation.
The equation is,
r = rRF + Beta * (rM - rRF)
Where,
rRF is the risk free rate rM is the return on market
r = 0.05 + 1.2 * (0.13 - 0.05)
r = 0.146 or 14.6%
Company manufactures two products. Both products have the same sales price, and the volume of sales is equivalent. However, due to the difference in production processes, Product A has higher variable costs and Product B has higher fixed costs. Management is considering dropping Product B because that product line has an operating loss.
Total Product A Product B
Sales Revenue $140,000 $70,000 $70,000
Variable Costs 124,250 63,500 60,750
Contribution Margin 15,750 6,500 9,250
Fixed Costs 30,000 3,000 27,000
Operating Income/(Loss) $(14,250) $3,500 $ (17,750)
Required:
a. If fixed costs cannot be avoided, should Richardson drop Product B? Why or why not?
b. If 50% of Product B's fixed costs are avoidable, should Richardson drop Product B? Why or why not?
Answer:
a. No - Because Richardson will be worse off than what he was before.
b. Yes - Because Richardson will be better off than what he was before.
Explanation:
a. Analysis of Operating Income is Richardson drop Product B
Sales Revenue $70,000
Less Variable Costs ($63,500)
Contribution $6,500
Fixed Costs ($30,000)
Total Operating Income ($23,500)
Dropping Product B will result in Total Operating Loss of $23,500. This means Richardson will be worse off than what he was before. He should not drop the product in this case.
b. Analysis of Operating Income is Richardson drop Product B
Sales Revenue $70,000
Less Variable Costs ($63,500)
Contribution $6,500
Fixed Costs ($15,000)
Total Operating Income ($8,500)
Dropping Product B will result in Total Operating Loss of $8,500. This means Richardson will be better off than what he was before. He should drop the product in this case.
A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and sells for $44. a. What is the total rate of return on the stock?
Answer:
The total rate of return on the stock is 14%.
Explanation:
The sources of income from a stock are dividends and increase in its value. Therefore, the total rate of return on stock is calculated by dividing the addition of appreciation in the of the stock and dividends paid by the original stock price.
Therefore, the total rate of return on the stock can be calculated using the following formula:
Total rate of return = [(P1 - Po) + D] / Po .......................... (1)
Where;
P1 = Ending stock price = $44
Po = Initial stock price = $40
D = Dividend paid = $2
Substituting the values into equation (1), we have:
Total rate of return = [(44 - 40) + 2] / 44
Total rate of return = [4 + 2] / 44
Total rate of return = 6 / 44
Total rate of return = 0.14, or 14%
Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in $ millions) Assets 2006 2005 Liabilities and Stockholders' Equity 2006 2005 Current Assets Current Liabilities Cash 58.5 Accounts payable 73.5 Accounts receivable 39.6 Notes payable / shortterm debt 9.6 Inventories 42.9 Current maturities of longterm debt 36.9 Other current assets 3.0 Other current liabilities 6.0 12.0 Total current assets 144.0 Total current liabilities 132.0 LongTerm Assets LongTerm Liabilities Land 62.1 Longterm debt 168.9 Buildings 91.5 Capital lease obligations Equipment 99.6 Less accumulated depreciation () (52.5) Deferred taxes 22.8 22.2 Net property, plant, and equipment 200.7 Other longterm liabilities Goodwill 60.0 Total longterm liabilities 191.1 Other longterm assets 63.0 42.0 Total liabilities 323.1 Total longterm assets 242.7 Stockholders' Equity 63.6 Total Assets 386.7 Total liabilities and Stockholders' Equity 386.7 Refer to the balance sheet above. Luther's current ratio for 2006 is closest to:
Answer:
Luther Corporation
Current Ratio for 2006 is closest to:
1.1 : 1
Explanation:
a) Data and Calculations:
Total Current Assets = $144 million
Total Current Liabilities = $132 million
Current Ratio = Current Assets/Current Liabilities
= $144/$132
= 1.1 : 1
b) Luther Corporation's current ratio is a liquidity measure that shows Luther's ability to pay off short-term obligations worth $132 million or those due within one year with its current assets of $144 million. The ratio tells investors and analysts of Luther Corporation how Luther can use its current assets to pay off its current debts. Since Luther's current ratio is higher than 1, it is considered good, depending on the industry average. This means that Luther's current ratio of 1.1 : 1 should not be considered in isolation, but in comparison with other firms in the industry and its performance over a number of years.
"A customer who is short 1 ABC Jan 65 Call wishes to create a "short call spread." The second option position that the customer must take is:"
Answer:
long 1 ABC Jan 75 Call
Explanation:
This type of customer (or investor) is bearish about the market, i.e. he/she believes that the stock prices will drop. The investor will try to create a net credit position (the credit spread = $75 - $65). The maximum possible profit is created when the stock price falls below $65, and the maximum possible loss would occur if the price went above $75. This investor is a net seller, since it is a short call spread.
You short-sell 200 shares of Rock Creek Fly Fishing Co., now selling for $50 per share. If you want to limit your loss to $2,500, you should place a stop-buy order at ____. A. $37.50 B. $62.50 C. $56.25 D. $59.75
Answer:
The answer is B. $62.5
Explanation:
A stop order is an order to either buy or sell a stock immediately the stock price reaches a certain price. This particular price is called stop price.
A buy stop order is an order to buy a stock immediately the its price reaches a certain stop price. When stop price is above the current market price, a buy stop order is made.
Let's now go back to the question;
Stop buy order will be placed at:
($2,500 / 200 shares) + $50
= $12.5 + $50
= $62.5
The EOQ model assumes inventory: Multiple Choice can be delivered immediately upon order. is sold at a steady rate until it is depleted. will be available just as it is needed for production. is held at a constant level. has seasonal fluctuations.
Answer:
is sold at a steady rate until it is depleted
Explanation:
The EOQ means Economic order quantity that refers to a quantity which the company should purchase for its inventory
In this order quantity, the carrying cost and the ordering cost are equivalent to each other
Also we assume that the demand would remain the same and the inventory should be depleted at a fixed rate unless it reaches to a zero
Hence, the second option is correct
Barnabas had a very rare necklace that he gave to Willie to hold for him for a few weeks. Barnabas wanted to give the necklace to Victoria for her birthday. Please answer true/false for the following statements.
Barnabas and Willie had a bailment for the sole benefit of Barnabas.
A. False
B. True
If Barnabas gives Victoria the necklace, the necklace is a gift causa mortis.
A. False
B. True
Barnabas would be the donee when he gives Victoria the gift.
A. False
B. True
Willie is the bailee when he receives the necklace from Barnabas.
A. False
B. True
For the gift to be valid, Barnabas only needed to delivery it to Victoria.
Identify if the remedy (relief) is equitable or legal.
direct damages
a. equitable
b. legal
rescission
a. equitable
b. legal
specific performance
equitable /legal
nominal damages
equitable /legal
compensatory damages
a. equitable
b. legal
injunction
a. equitable
b. legal
punitive damages
a. equitable
b. legal
consequential damages
a. equitable
b. legal
Dr. Neil met Mr. Hammond's grandson while they were visiting the Park. His grandson loved dinosaurs and Dr. Neil had written many books on the matter. Dr. Neill happened to have a copy of his latest book on him and thought the grandson would love it. Thus, he signed the book and gave it to him. Identify the party.
The donor in the situation would be:________.
the grandson Dr. Neil
The donee in the situation would be:_______.
the grandson Dr. Neil
Answer:
Answering true/false for the following statements:
Barnabas and Willie had a bailment for the sole benefit of Barnabas.
A. False
B. True
If Barnabas gives Victoria the necklace, the necklace is a gift causa mortis.
A. False
B. True
Barnabas would be the donee when he gives Victoria the gift.
A. False
B. True
Willie is the bailee when he receives the necklace from Barnabas.
A. False
B. True
For the gift to be valid, Barnabas only needed to delivery it to Victoria.
Identify if the remedy (relief) is equitable or legal.
direct damages
a. equitable
b. legal
rescission
a. equitable
b. legal
specific performance
equitable /legal
nominal damages
equitable /legal
compensatory damages
a. equitable
b. legal
injunction
a. equitable
b. legal
punitive damages
a. equitable
b. legal
consequential damages
a. equitable
b. legal
Dr. Neil met Mr. Hammond's grandson while they were visiting the Park. His grandson loved dinosaurs and Dr. Neil had written many books on the matter. Dr. Neill happened to have a copy of his latest book on him and thought the grandson would love it. Thus, he signed the book and gave it to him. Identify the party.
The donor in the situation would be:________.
the grandson Dr. Neil
The donee in the situation would be:_______.
the grandson Dr. Neil
Explanation:
Bailment is the transfer of the rare necklace from Barnabas to Willie so that Willie could hold it for him for a few weeks. Willie is the bailee when he receives the necklace from Barnabas.
Gift causa mortis is a deathbed gift, which is not applicable in this case. The gift here is given inter vivos, that is during the life of Barnabas.
A donee is Victoria who receives the necklace for her birthday. Barnabas is the donor when he gives Victoria the gift.
Lacy Technology transferred items with $12,600 of cost out of the Assembly Department because the items were finished and ready to be sold. What journal entries correctly reflects this transaction?
Answer:
Dr Finished Goods Inventory 12,600
Cr Work in Process - Assembly 12,600
Explanation:
Based on the information given we were told that the company transferred items that cost the amount of $12,600 from the Assembly Department because the items were finished and ready to be sold which means that the journal entries will be recorded as:
Dr Finished Goods Inventory 12,600
Cr Work in Process - Assembly 12,600
Sue Helms Appliances wants to establish an assembly line to manufacture its new product, the Micro Popcorn Popper. The goal is to produce five poppers per hour. The tasks, task times, and immediate predecessors for producing one Micro Popcorn Popper are as follows:
Task Performance time(minutes) Predecessor
A 8 -
B 10 A
C 8 A,B
D 10 B,C
E 8 C
F 4 D,E
a. The theoretical minimum number of workstations is:___________
b. The assignment of tasks to workstations should be:________
Were you able to assign all the activities to workstations equivalent to the theoretical minimum workstation ?
c. The efficiency of the assembly line is:________
Answer:
Please see explanation below.
Explanation:
a. Cycle time = Production time available per hour / Units required per hour
= 60 / 5
= 12minutes
Minimum number of workstations = Sum of the task time / Cycle time
Sum of task time
= 8 + 10 + 8 + 10 + 8 + 4
= 48
The theoretical minimum number of work stations is
= 48 / 12
= 4
b. In order to assign the tasks to the work station, events that precede the task must be considered together with the time taken to complete each task.
°Task A This task is assigned to work station 1 and no task would further be assigned to work station 1, otherwise it will exceed the cycle time.
°Task B. This next task will be assigned to work station 2, no additional task will be assigned to station 2.
Task C is assigned to workstation 3, hence can no longer accept any other assigned task.
°Task D is the next task and will be assigned to work station 4, and we cannot assign any more task to work station 4.
°Task E and F will not be assigned as there are no more available stations.
Task Time Workstation
A. 8 1
B. 10 2
C. 8 3
D. 10 4
E. 8 -
F. 4 -
Please note that due to the theoretical minimum number of work station, which is 4, it will not be possible to assign task to all the workstations hence task E and F remains unassigned.
C. Efficiency of the assembly line
Efficiency ;
= Sum of task times / Actual number of work stations × cycle time
Although the actual number of required workstation is 5 but we cannot assign task E and F due to the theoretical minimum number of workstation. Therefore, additional work station will be required and there are 5 work stations in total.
= 48 ÷ (5 × 12) × 100
= 80%
The theoretical minimum should be = 4
The efficiency of the assembly line should be 80 percent
The production time = 60
The units that are required per hour = 5
[tex]cycle time = \frac{minutes in one hour}{units needed in a day} \\\\cycle time=\frac{60}{5}[/tex]
= 12
The workstation = 8+10+8+10+8+4
= 48
[tex]The minimum number = \frac{48}{12} \\\\= 4[/tex]
The efficiency of the assembly line
[tex]\frac{48}{5*60} \\\\= 0.8\\\\0.8*100 = \\\\80percent[/tex]
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Rinaldo wants to know how you recorded the part cash and part credit purchase that occurred during the beginning of May in Sage 50. Rinaldo asks which of the following shows the correct series of actions to open a Sage 50 window that must be used to record the above transaction:
Inventory & Services → Enter Bills → New Bill
Inventory & Services → Purchase Invoice → New Invoice
Vendors & Purchases → Enter Bills → New Bill
Vendors & Purchases → Purchase Invoice → New Invoice
Answer:
Vendors & Purchases → Enter Bills → New Bill
Explanation:
To record the part cash and part credit entry in Sage 50, we will use the following series.
Vendors & Purchases → Enter Bills → New Bill
To record the purchase transaction we need to enter the transaction in the vendors and purchase option and then we need to create separate bills for our part cash payment and part credit payment separately.
Which of the following is an advantage of the corporate form of business? A. limited liability of stockholders B. less degree of government regulation C. separation of ownership and management D. low start-up costs
Answer: Limited liability of stockholders
Explanation:
Limited liability in a corporate fo.of business means that the shareholders will be legally responsible for debts of a company based on the on their share's nominal value.
This is an advantage of the corporate form of business along with the easy generation of huge equity.
A firm has a required return of 14.2% and a beta of 1.63. If the risk-free rate is currently 5.4%, what is the expected return to the market? Assume that CAPM is correct.
Answer:
10.8%
Explanation:
Required rate of return = Risk free rate + Beta x ( Expected rate - Risk free rate )
14.2% = 5.4% + 1.63 x ( market rate - 5.4% )
14.2% - 5.4% = 1.63 x ( market rate - 5.4% )
8.8% / 1.63 = market rate - 5.4%
5.4% = market rate - 5.4%
Market rate = 5.4% + 5.4%
Market rate = 10.8%
Market rate = 10.8%
Given the following information. Which of the statements below can you support with this information?
Maximum capacity (labor hours): 480 hours per week
Effective capacity ratio: 85 %
Actual time worked: 380 hours per week over the last two weeks
On-time delivery %: 75 percent of the jobs are being completed on time
a. More capacity needs to be added in the short term to improve performance in the system.
b. We need to look at variability in the rate at which jobs enter the shop.
c. Our workforce is not working hard enough.
d. Our workforce may be waiting on delayed arrivals of inputs needed to do the work.
Describe the reasons why you selected the specific option(s) that you did.
Answer:
d. Our workforce may be waiting on delayed arrivals of inputs needed to do the work.
Explanation:
There are two possible sources for 25% of the jobs not being delivered on time:
we have a problem with inputs required (materials or labor)we have a problem with the capacity of our facilityIf we followed Juran's Law, we can simply assume that the problem here has to do with our productive system (like 85% of production errors). Two clear problems are obvious:
only 380 hours worked out of total of 480 hours per week ⇒ why didn't anyone work during the remaining 100 hours? Is there a delay with the inputs or we don't have enough workers?only 85% of the facility's capacity is being used ⇒ why only 85% of the effective capacity ratio? If we are finishing jobs late, why do we have 15% of unused capacity?Obviously we cannot answer these questions just be reading two paragraphs, but that is what should be answered in order to solve the issues.
