Answer: A. can help with leadership selection and development.
Explanation:
The focus of the trait approach to leadership is on the personal attributes of a leader like the values, competencies, the physical and personality characteristics, etc.
Here, focus isn't on the followers but rather on the leader as it's concerned with the leaders traits. The leaders traits are vital to the leadership process. This can help with leadership selection and development.
Renee paid $4,000 in mortgage interest on a $110,000 mortgage that was taken out when she bought her home several years ago. She also has a home equity loan of $130,000 that she used to pay for a cruise around the world. The interest on the home equity loan was $8,000. What amount is deductible as interest expense for Renee in 2021
Answer:
The amount that is deductible as interest expense for Renee in 2021 is:
= $4,000.
Explanation:
a) Data:
Home mortgage - $110,000
Interest on home mortgage = $4,000
Home equity loan for a cruise around the world = $130,000
Interest on the home equity loan = $8,000
Deductible interest expense for Renee in 2021 is $4,000
b) Usually, the interest expenses that a taxpayer pays on her home equity loan to enjoy a cruise around the world, on personal credit card, on automobile loan, and on other types of personal consumer finance interests are not tax-deductible.
While under contract to play professional basketball for the Philadelphia 76ers, Billy Cunningham, an outstanding player, negotiated a three-year contract with the Carolina Cougars, another professional basketball team. The contract with the Cougars was to begin at the expiration of the contract with the 76ers. In addition to a signing bonus of $125,000, Cunningham was to receive under the new contract a salary of $100,000 for the first year, $110,000 for the second, and $120,000 for the third. The contract also stated that Cunningham "had special, exceptional and unique knowledge, skill and ability as a basketball player" and that Cunningham therefore agreed the Cougars could enjoin him from playing basketball for any other team for the term of the contract. In addition, the contract contained a clause prohibiting its assignment to another club without Cunningham’s consent. In 1971, the ownership of the Cougars changed, and Cunningham’s contract was assigned to Munchak Corporation, the new owners, without his consent. When Cunningham refused to play for the Cougars, Munchak Corporation sought to enjoin his playing for any other team. Cunningham asserts that his contract was not assignable. Was the contract assignable? Explain.
Answer:
Billy Cunningham and the Cougars
The contract was not assignable to another club.
But, the contract (assets and liabilities) can be inherited by a successor entity using the same club, the Cougars.
Explanation:
The contract was not assigned to another club, despite the change of ownership of the Cougars. Interestingly, the contract between Cunningham and Carolina Cougars was inheritable with the change of ownership of the Cougar Club from the formers owners, Carolina Cougars, to the new owners, Munchak Corporation. The clause prohibiting the contract's assignment to another club without Cunningham's consent was not violated.
Given the following production plan, use a chase production strategy to compute the monthly production, ending inventory/(backlog), net requirements and required workforce levels. A worker can produce 75 units per month. Assume that the beginning inventory in January is 750 units, and the firm desires to have 750 units of inventory at the end of June.
Month Jan Feb Mar Apr May Jun
Demand 2100 3000 5100 6000 4800 2400
Required:
a. What are the net requirements for January?
b. What month has the highest number of workers required?
c. What is the production level for June?
d. How many people will be employed for the month of January?
Answer:
Computation of the monthly production, ending inventory/(backlog), net requirements and required workforce levels:
a. The net requirements for January = 2,025 units and 27 workers.
b. The month with the highest number of workers required is April.
c. The production level for June is 2,475 units
d. 27 workers will be employed for the month of January.
Explanation:
a) Data and Calculations:
Production per worker per month = 75 units
Beginning inventory in January = 750 units
Desired ending inventory in June = 750 units
Production Schedule, using the chase production strategy:
Month Jan Feb Mar Apr May Jun
Beginning inventory 75 0 0 0 0 0
Monthly production 2,025 3,000 5,100 6,000 4,800 2,475
Net requirements 2,100 3,000 5,100 6,000 4,800 2,400
Ending inventory/(backlog) 0 0 0 0 0 75
Required workforce levels 27 40 68 80 64 33
Cullumber Corporation has announced that its net income for the year ended June 30, 2017, was $1,353,412. The company had EBITDA of $4,948,000, and its depreciation and amortization expense was equal to $1,128,000. The company's average tax rate is 34 percent. What was its interest expense
Answer:
See below
Explanation:
Net income = $1,353,412
Tax rate is 34% hence the company's EBT amount is calculated as
EBT = $1,353,412 / 0.66 = $2,050,624.24
Add back Depreciation and amortization to the EBT
= $2,050,624.24 + $1,128,000
= $3,178,624.24
The difference between the above and EBITDA amount will be the interest expense for the year
= $4,948,000 - $3,178,624.24
= $1,769,375.76
Therefore, the interest expense is $1,769,375.76
As a manager, you are trying to decide how to best layoff 10% of your workforce. You are considering laying off the 10% who are the oldest in age, because you feel that they are closest to retirement anyway. Which of the following types of justice would you most likely violate the rules of by doing this?
A. Distributive
B. Procedural
C. Interpersonal
D. Informational
Answer:
B. Procedural
Explanation:
Remember, the procedural type of justice focuses on identifying the best way to treat others in a fair way, such as following the adhering to the rule of no bias when administering justice.
In this scenario, if the manager decides to select and lay off 10% of his workforce based on their age range, he would be unintentionally displaying an age bias in his selection process, which of course most likely violates the rules of this type of justice.
Future pension liabilities are estimated based on all of the following except a.expected employee compensation levels. b.federal withholding income tax. c.employee life expectancy. d.employee turnover.
Answer:
The answer is B.
Explanation:
The correct option is B. - federal withholding income tax.
Pension liability is the amount of money that a company or government at any level(federal or state) has to account for in order to make future pension payments. It is a future payment that a company or government is obligated to pay its retired employees.
They take into considerations:
1. Their employees turnover
2. Their employees life expectancy
3. Their employees compensation level.
Federal tax level is not the issue because the payment is futuristic and federal tax can change.
Auto Industries Company reported the following on its income statement:
Income before income taxes $420,000
Income tax expense (120,000)
Net income $300,000
If the income statement also shows interest expense equal to $80,000, what is the company's times interest earned ratio?
a. 5 times.
b. 6.25 times.
c. 5.25 times.
d. 8 times.
Answer:
Option c. 5.25 times is the correct answer.
Explanation:
Below is the calculation:
Income before income tax = $420000
Income tax expenses = 120000 dollars
Net income = $300000
Interest expense = $80000
Interest earned ratio = Earning Before Interest and Taxes / Interest Expenses
Interest earned ratio = 420000 / 80000
Interest earned ratio = 5.25 times
Option c. 5.25 times is the correct answer.
explain why it is important for marketers to be able to measure the effectiveness of marketing activities.
The purpose of GAAP's flexibility in its reporting standards allows companies to: Select one: a. Smooth reported revenues and earnings over several reporting periods. b. Change accounting estimates to meet target sales or earnings. c. Change accounting principles to improve reported earnings. d. Adopt specific accounting and reporting procedures to represent the firm's activities more accurately.
Answer:
D. Adopt specific accounting and reporting procedures to represent the firm's activities more accurately.
Explanation:
GAAP in accounting means Generally accepted accounting principle. It is a uniform collection of accounting rules and standards for reporting financial accounting for organizations
The main reason or purpose of GAAP is to ensure that there is transparency and consistency in the reporting of financial details from one organization to another. The aim is to also help firms record their financial activities accurately by adopting specific accounting and reporting procedures as stipulated by GAAP.
The following events apply to Guiltf Seafood for the 2018 fiscal year 1.
a. The company started when it acquired $17,000 cash by issuing common stock.
b. Purchased a new cooktop that cost $16,900 cash. Earned $22,500 in cash revenue.
c. Paid $10,300 cash for salaries expense.
d. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of four years and an estimated salvage value of $2,200. Use straight-line depreciation. The adjustment was made as of December 31, Year 1.
Required:
Record the above transactions in a horizontal statements model.
Answer:
Gulf Seafood
Horizontal Statements Model:
Balance Sheet Income Statement Cash Flows
Assets = Liabilities + Equity Revenue - Expenses = Income
a. $17,000 0 + $17,000 FA
b. $16,900 ($16,900) IA
$22,500 $22,500 $22,500 OA
c. ($10,300) ($10,300) ($10,300) OA
d. ($3,675) ($3,675) ($3,675) None
$25,525 = 0 + $25,525 $22,500 - $13,675 = $8,825
Explanation:
a) Data and Analysis:
a. Cash $17,000 Common stock $17,000
b. Equipment $16,900 Cash ($16,900)
Cash $22,500 Revenue $22,500
c. Cash ($10,300) Salaries Expense ($10,300)
d. Accumulated Depreciation ($3,675) Depreciation Expense ($3,675)
Prosecutors representing the Securities and Exchange Commission recentlyannounced criminal charges against 13 individuals for engaging in insidertrading. According to the SECs director of enforcement, a trading ring acting on inside information compromises the marketsintegrity and investorstrust. . . . Explain why.
Answer and Explanation:
Insider trading compromises the integrity of the market because insider investors have non-public information about the stocks of the company that could very much impact the value of the stock of the company. In other words, an insider knows what the public doesn't know about a company and it allows him an unfair advantage to trade the stocks of the company using this information and make large unusual profit. This could lead to market collapse as investors are no longer encouraged to invest seeing that they can't trust that the market is transparent and trustworthy(they don't have all the important information that would affect the company)
What is salary system?
Answer:
Salary systems – also referred to as compensation plans or pay structure – are a collection of steps, policies and practices employers use to pay employees for their work. Salary systems consist of more than producing a weekly, biweekly or bimonthly paycheck.
Explanation:
Leonard is creating disaster recovery documents for his company's online operations. He is documenting metrics for a measurable SLA that outlines when you can expect operations to be back online and how much data loss can be tolerated when recovering from an outage. Which metrics is he documenting
Answer:
RTO, RPO
Explanation:
Recovery point objective (RPO)
This simply measures the amount of data that may be lost in real sense due to system failure. It covers the volumes of files that must be gotten back from backup storage so as the normal operations can start agai (data loss)
RTO (recovery time objective)
This is simply regarded as the amount or the timelind by which a business process must be put in place or restored after a disaster occurs.(downtime). It is the time limit at most that is taken to put in place or restore an organization's information system following a disaster occurrence, In layman term is how much time do we have to get everything up and working again.
The four disaster recovery strategies includes
1. Backup and Restore
2. Pilot light
3. Warm standby
4. Hot site/multi-site approach.
In order to update a production process, a company can spend money now or four years from now. If the amount now would be $20,000, what equivalent amount could the company spend four years from now at a compound interest rate of 15% per year?(All the alternatives presented below were calculated using compound interest factor tables including all decimal places
Answer: $34,980.13
Explanation:
The amount that the company will spend 4 years from now is simply the future value of the amount that it can spend today.
The amount to be spent today is $20,000 so the amount to be spent 4 years from now is the future value of $20,000:
= Amount * (1 + rate) ^ number of years
= 20,000 * ( 1 + 15%)⁴
= $34,980.13
Feliciano Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, I63E and E76I, about which it has provided the following data: I63E E76I Direct materials per unit $ 21.70 $ 65.10 Direct labor per unit $ 19.50 $ 58.50 Direct labor-hours per unit 0.80 2.40 Annual production (units) 90,000 30,000
The company's estimated total manufacturing overhead for the year is $2,063,250 and the company's estimated total direct labor-hours for the year is 45,000.
The company is considering using a form of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:
Activities and Activity Measures Estimated
Overhead Cost
Assembling products (DLHs) $ 720,000
Preparing batches (batches) 263,250
Product support (product variations) 1,080,000
Total $ 2,063,250
Expected Activity
I63E E76I Total
DLHs 24,000 21,000 45,000
Batches 1,080 675 1,755
Product variations 2,115 1,485 3,600
The manufacturing overhead that would be applied to a unit of product E76I under the activity-based costing system is closest to:________.
Answer:
Unitary cost= $30.91
Explanation:
First, we need to calculate the activities rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Assembling products= 720,000/45,000= $16 per DLH
Preparing batches= 263,250/1,755= $150 per batch
Product support= 1,080,000/3,600= $330 per product variation
Now, we allocate costs to Product E76l:
Assembling products= 16*21,000= $336,000
Preparing batches= 150*675= $101,250
Product support= 330*1,485= $490,050
Total= $927,300
Finally, the unitary cost:
Unitary cost= 927,300 / 30,000
Unitary cost= $30.91
It has been said that Earned Value Management (EVM) came about because the Federal Government often used "Cost-plus" contractors with project organizations. Cost-plus contracting allows the contractor to recover full project development costs plus accumulate profit from these contracts. Why would requiring contractor firms to employ earned value management help the government hold the line against project cost overruns?
Answer:
Earned Value Management (EVM)
The Federal Government requires contractor firms to employ earned value management because it enables it to assess the work that has been completed against an established baseline plan in terms of technical, time, and cost performance.
Armed with this information, it is in a better position to make important project decisions and help to control over-spending.
Explanation:
Earned value management (EVM) as a integrated project management methodology details the project time schedule, costs, and scope to ensure correct measurement of project performance. Using planned and actual values, EVM enables future predictions, improving the ability of project managers to adjust according to requirements.
Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000 at a yield to maturity of 8%. Now, with 7 years left until the maturity of the bonds, the company has run into hard times and the yield to maturity on the bonds has increased to 12%. What is the price of the bond now
Answer:
$814.10
Explanation:
Calculation to determine what the price of the bond now
Using this formula
Bond price = PV of coupon payments + PV of face value
Bond price= C×((1 / r) – {1 / [r(1 + r)t]}) + FV / (1 + r)t
Let plug in the formula
Bond price= [(.080 ×$1,000) / 2] ×[[1 / (.12 / 2)] – (1 / {(.12 / 2)[1 + (.12 / 2)](7 ×2)})] + $1,000 / [1 + (.12 / 2)](7 ×2)
Bond price= $814.10
Therefore the price of the bond now is $814.10
Fort Thomas Living is a small publishing company located in the Northern Kentucky. Recently, Fort Thomas Living has contracted with several different local writers to publish various magazines and short-story books. Once such transaction involves an exchange of $10,200. Another transaction involves an exchange of $9,600? Are both of these exchanges of money subject to the disclosure requirements of the Money Laundering Control Act?
Answer: No
Explanation:
The Money Laundering Control Act of 1986 which was passed to curb the effects of large scale money laundering at the federal level, only requires that transactions above $10,000 be disclosed.
There is a transaction here that is only to the tune of $9,600 so this will not be disclosed as it is less than the $10,000 threshold. The other transaction of $10,200 will however, be disclosed.
As of December 31, 2019, Nilsen Industries had $2,000 of raw materials inventory. At the beginning of 2019, there was $1,600 of materials on hand. During the year, the company purchased $354,000 of materials; however it paid for only $314,000. How much inventory was requisitioned for use on jobs during 2019? a. $354,400b. $344,400c. $343,600d. $353,600
Answer:
d. $353,600
Explanation:
The computation of the inventory requisitioned for use on jobs during 2019 is shown below;
= OPening inventory + purchase made - ending inventory
= $1,600 + $354,000 - $2,000
= $353,600
Hence, the inventory requisitioned for use on jobs during 2019 is $353,600
Therefore the option d is correct
You wrote a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. A large networking company wants to incorporate your software into its systems and is offering to pay you $458,000 today, plus $458,000 at the end of each of the following six years, for permission to do this. If the appropriate interest rate is 8 percent, what is the present value of the cash flow stream that the company is offering you?
Answer:
$2,575,278.87
Explanation:
Present Value = $458,000 + $458,000 /(1+.08)^1 + $458,000 /(1+.08)^2 + $458,000 /(1+.08)^3 + $458,000 /(1+.08)^4 + $458,000 /(1+.08)^5 + $458,000 /(1+.08)^6
Present Value = $458,000 + $424,074.07 + $392,661.18 + $363,575.16 + $336,643.67 + $311,707.10 + $288617.69
Present Value = $2,575,278.87
So, the present value of the cash flow stream that the company is offering to me is $2,575,278.87.
The following information was taken from the income statement and balance sheet of The Perryman Company for the years 2018 and 2019: 2019 2018 Sales revenues $590,000 $574,000 Net income 212,000 184,000 Total assets 2,142,000 1,998,000 Total stockholders’ equity 712,000 690,000 Compute the following ratios for 2019:
Answer:
a. Net profit margin for 2019 = 35.93%
b. Asset turnover for 2019 = 0.29 times
c. Return on assets = 10.24%
Explanation:
Note: This question is not complete. The complete question is thereore provided before answering the question as follows:
The following information was taken from the income statement and balance sheet of The Perryman Company for the years 2018 and 2019:
2019 2018
Sales revenues $590,000 $574,000
Net income 212,000 184,000
Total assets 2,142,000 1,998,000
Total stockholders’ equity 712,000 690,000
Compute the following ratios for 2019:
Net profit margin
Asset turnover
Return on assets
The answers are now explained as follows:
a. Net profit margin for 2019
This can be calculated as follows:
Net profit margin for 2019 = Net income in 2019 / Sales revenues in 2019 = $212,000 / $590,000 = 0.3593, or 35.93%
b. Asset turnover for 2019
This can be calculated as follows:
Asset turnover for 2019 = Sales revenues / Average total assets = Sales revenues in 2019 / ((Total assets in 2019 + Total assets in 2018) / 2) = $590,000 / (($2,142,000 + $1,998,000) / 2) = 0.29 times
c. Return on assets for 2019
This can be calculated as follows:
Return on assets = Net income / Average total assets = Net income in 2019 / ((Total assets in 2019 + Total assets in 2018) / 2) = $212,000 / (($2,142,000 + $1,998,000) / 2) = 0.1024, or 10.24%
During 2004, Thor Lab supplied hospitals with a comprehensive diagnostic kit for $120. At a volume of 80,000 kits, Thor had fixed costs of $1,000,000 and a profit before income taxes of $200,000. Due to an adverse legal decision, Thor’s 2005 liability insurance increased by $1,200,000 over 2004. Assuming the volume and other costs are unchanged, what should the 2005 price be if Thor is to make the same $200,000 profit before income taxes?
a. $120.00
b. $135.00
c. $150.00
d. $240.00
Answer:
d. $240.00
Explanation:
Calculation to determine what should the 2005 price be if Thor is to make the same $200,000 profit before income taxes?
2004 CM% = 12.5% ($15/$120)
2005 CM = $2,400,000 ($1,000,000 + $200,000)
2005 CM per unit = $2,400,000/80,000 units
2005 CM per unit= $30 CM per unit;
2005 selling price per unit = $30/.125
2005 selling price per unit= $240
Therefore what should the 2005 price be if Thor is to make the same $200,000 profit before income taxes is $240
A popular hotel has continued to lose business in its room service food sales over the last five years. Using the Six Sigma DMAIC process explain what you would do in each step of the process to improve the sales - provide relevant, practical details. What statistics would you apply and why?
The correct answer to this open question is the following.
Using the Six Sigma DMAIC process, I will explain what I would do in each step of the process to improve the sales.
DMAIC stands for Define, Measure, Analyze, Improve, and control.
What I would do first is, of course, define the nature of the problem. To define exactly what is the root of the drop in sales in the hotel. That would allow me to establish proper goals and define a strategy to implement. If a need to do surveys to customers or unsatisfied clients, I would do that. Listening to customer feedback would provide the necessary information.
Then, I have to measure the performance of my employees. Monitoring and evaluate the productivity of the people who work in the organization.
I have to analyze if the productivity ratio of each employee to know if they are performing to the maximum of their capabilities.
In this case, I could use a Pareto chart or the 80-20 rule, to assess productivity in the company.
I have to pay attention to the causes of poor performance and poor quality service. There is an interesting analysis called Root Cause Analysis (RCA) that can be useful in this case.
Once identified and eliminated the root or causes of the problems, then it comes de Improve the process to enhance the performance in every area of the organization. I would have to get people on the same page and focus on one problem at a time to doing things right.
Another model that could be useful in this scenario would be Design of Experiments, commonly known as DOE, which helps resolve complex issues
Finally, the control of everything implementation and solution to confirm it has been established the right way with the desired results. This could be part of the continuing Quality Control process- The poke yoke system would be a good option to be contemplated.
Assume the risk-free rate is 4%. You are a financial advisor, and must choose one of the funds below to recommend to each of your clients. Whichever fund you recommend, your clients will then combine it with risk-free borrowing and lending depending on their desired level of risk.
Expected Return Volatility
Fund A 10% 10%
Fund B 15% 22%
Fund C 6% 2%
Required:
a. Which fund would you recommend to a client seeking the highest possible expected return with a maximum volatility of 22%?
b. Which fund would you recommend to a client seeking the highest possible expected return with a maximum volatility of 22%?
c. Which fund would your recommend without knowing your clients risk preference?
Answer:
Following are the solution to the given point.
Explanation:
Calculate each fund's Sharpe ratio. It Fund is the best danger reward with the highest Sharpe ratio.
[tex]\text{Sharpe Ratio} = \frac{\text{(Fund return - \text{risk free return)}}}{Volatility}\\\\\to Fund A= \frac{(10\%-4\%)}{10\%} = 0.6\\\\\to Fund B= \frac{(15\%-4\%)}{22\%} = 0.5\\\\\to Fund C = \frac{(6\%-4\%)}{2\%}=1.0\\\\[/tex]
Fund C consequently offers the best risk-benefit. and without understanding client risk preference, we will advise Fund C for any clients. If a client wants to have a 22 percent minimum volatility, we'll nevertheless propose that Fund C instead of Fund B is available, because an investor can take risk-free rates to the degree that the total portfolio volatility stands at 22 percent and deposit it in Fund C.
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.
The CPI for this year is calculated by dividing thecost of a given market basket of goods and services using this year’s prices by thevalue of all goods and services produced in the economy this year using the base year’s prices and multiplying by 100. However, the GDP deflator reflects only the prices of all goods and services produced domestically. Indicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply.
a. A decrease in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea fishing
b. An increase in the price of a Japanese-made television that is popular among U.S. consumers
Answer:
GDP deflator
CPI
Explanation:
The consumer price index measures the changes in price of a basket of good. It is used to measure inflation. Basket of goods includes goods produced within the country and outside the country.
CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100
An increase in the price of a Japanese-made television that is popular among U.S. consumers will increase CPI
GDP deflator = (nominal GDP / real GDP) x 100
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
A decrease in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea fishing will decrease GDP deflator
Feedback is important in improving your performance, and we should solicit feedback, and not just wait until someone provides us with feedback. Group of answer choices
a. True
b. False
Answer:
The given statement is "True".
Explanation:
Feedback would be a significant aspect in improving the accomplishment or organization's success.Requesting or waiting for such feedback might contribute to less and less input, although the organization must request for input, this same person might communicate with the organization by requesting comments.Thus the above is the correct answer.
The following transactions are for Splish Brothers Company.
1. On December 3, Splish Brothers Company sold $515,600 of merchandise to Sunland Co., on account, terms 3/10, n/30. The cost of the merchandise sold was $320,500.
2. On December 8, Sunland Co. was granted an allowance of $24,000 for merchandise purchased on December 3.
3. On December 13, Splish Brothers Company received the balance due from Sunland Co.
Required:
Prepare the journal entries to record these transactions on the books of Splish Brothers.
Answer and Explanation:
The journal entries are shown below:
On Dec 3
Account receivable $515,600
To Sales revenue $515,600
(Being the sale of merchandise on account is recorded)
Cost of goods sold $320,500
To Inventory $320,500
(Being the cost of merchandise sold on account)
On Dec 8
Sales allowance $24,000
To Account receivable $24,000
On Dec 13
Cash (491600 × 97%) $476,852
Sales discount $14,748
To Account receivable ($515,600 - $24,000) $491,600
(Being the cash received is recorded)
On January 1, Eastern College received $1,280,000 from its students for the spring semester that it recorded in Unearned Tuition and Fees. The term spans four months beginning on January 2 and the college spreads the revenue evenly over the months of the term. What amount of tuition revenue should the college recognize on February 28? Assume the college prepares monthly financial statements.a. $640,000.b. $1,280,000.c. $880,000.d. $960,000.e. $320,000.
Answer:
e. $320,000
Explanation:
Calculation to determine amount of tuition revenue should the college recognize on February 28
Using this formula
Tuition revenue =Amount received/Term spans
Let plug in the formula
Tuition revenue=$1,280,000 /4 months
Tuition revenue=$320,000
Therefore amount of tuition revenue should the college recognize on February 28 is $320,000
A company uses return on investment (ROI) to measure the performance of its business units. The company manufactures and distributes consumer goods. Last year, management identified a possible shortage of raw materials. To mitigate this risk, a large amount of raw material was bought in advance and stored in the manufacturing plant inventory. As a result of this decision, ROI will A. Have an unpredictable change. B. Decrease. C. Increase. D. Not change.
Answer: B. Decrease
Explanation:
Return on investment refers to the ratio between the net income and investment. It should be noted that a high return on investment implies that the investment's gains compare favourably to the cost.
In this scenario, since a large amount of raw material was bought in advance and stored in the manufacturing plant inventory, this will lead to an increase in the cost of production which therefore will reduce the return in investment.
Therefore, the correct option is B.
As Laura checks items off her meeting agenda and various individuals provide input and insight, she beams at her team. She is so proud of the work they do at her clinic every day. They have always been a very high performing team, and for that, she has always been thankful.
Select the statement that is true about high performing teams.
a) High performing teams are able to come up with more rapid solutions and have increased productivity.
b) High performing teams never face obstacles.
c) High performing teams should only have about 4-6 members.
d) High performing teams are most effective when all members share the same skills and experience.
Answer: a) High performing teams are able to come up with more rapid solutions and have increased productivity.
Explanation:
A high performing team is as the term implies, one that is productive. To be productive one has to be able to come up with solutions to problems as fast as possible and implement those solutions so as to continue or even increase production.
A high performing team is one that would do the above. Laura's team provides inputs and insights which means they come up with solutions and they also show up to work every day to be productive. They are indeed a high performing team.
