Answer:
Inventory turnover= 4.57
Explanation:
To calculate the inventory turnover, we need to use the following formula:
Inventory turnover= Cost of goods sold/ average inventory
Average inventory= (beginning inventory + ending inventory) / 2
Average inventory= (325,500 + 540,250) / 2
Average inventory= 432,875
Inventory turnover= 1,978,250 / 432,875
Inventory turnover= 4.57
In an inventory control system, the annual demand is 12,000 units, the ordering cost is GHS 30 per order and the inventory holding cost is GHS 3.00 per year. The order quantity is 1000 units and the cost per unit of the item is GHS 150. What is the total cost per year?
Answer:
Total cost per year = $1,801,860
Explanation:
Given:
Annual demand = 12,000 units
Ordering cost = $30 per order
Inventory holding cost = $3 per year
Order quantity = 1000 units
Cost per unit of the item = $150
Find:
Total cost per year
Computation:
Total cost per year = Purchase cost + Order cost + Inventory holding cost
Total cost per year = [12,000 x 150] + [12,000/1000 x 30] + [1,000/2 x 3]
Total cost per year = 1,800,000 + 360 + 1500
Total cost per year = $1,801,860
All of the following assets require a title as proof of ownership, except: Group of answer choices Life insurance. Boat. Home. Vehicle.
Answer:
Life insurance.
Explanation:
A life insurance policy can be defined as a contract between a policyholder and an insurer, in which the insurer agrees to pay an amount of money to a specific beneficiary either upon the death of the insured person (decedent) or after a set period of time.
All of the following assets such as home, boat, vehicle require a title as proof of ownership, except a life insurance because no one person can present a proof to attest to the ownership of their life.
Simply stated, a life of an individual is abstract and as such can not be quantified or qualified by any document as a proof to be presented to another person or business entity. Thus, a life insurance cannot be used as a collateral to obtain credits or loans from a financial institution or investors.
The following costs were incurred in August: Direct Materials $18,000 Direct Labor $21,000 Manufacturing Overhead $33,000 Selling Expenses $14,000 Administrative Expenses $19,000 Conversion costs during the month of August totaled: a. $39,000. b. $105,000. c. $54,000. d. $51,000.
Answer:
C. $54,000
Explanation:
Given the following information,
Direct labor = $21,000
Manufacturing overhead = $33,000
Conversion cost refers to the sum of direct labor and manufacturing overhead
Conversion cost = Direct labor + Manufacturing overhead
Conversion cost = $21,000 + $33,000
Conversion cost = $54,000
Cash Received from Customers—Direct Method Sales reported on the income statement were $480,000. The accounts receivable balance increased $54,000 over the year. Determine the amount of cash received from customers. $fill in the blank 1
Answer:
$426000
Explanation:
Cash = sales - account receivable
480000 - 54000 = $426000
Finisher Inc. sells merchandise of $250,000 in 2020 that includes a three-year limited warranty. Warranty costs are estimated to be 1% of sales. The company incurred actual costs of $800 in 2020 related to the warranties. a. Record the warranty accrual at the time of sale in 2020. b. Record the adjustment to the warranty accrual for actual warranty costs in 2020.
Answer: See explanation
Explanation:
a. Record the warranty accrual at the time of sale in 2020.
Debit Warranty expense = $250,000 × 1% = $2,500
Credit Warranty Liability $2,500
(To record the warranty accrual)
b. Record the adjustment to the warranty accrual for actual warranty costs in 2020.
Debit Warranty Liability $800
Credit Cash and Payables $800
A legal document which summarizes the rights and privileges of bondholders as well as the obligations and commitments of the issuing company is called Group of answer choices a bond indenture. a bond debenture. trading on the equity. a term bond.
Answer:
a bond indenture
Explanation:
a bond debenture can be described as the legal contract of a bond
Features of a bond debenture
Reason why the bond was created the interest rate to earned the method by which interest is calculated Maturity datescovenantsa bond indenture is a legal document which summarizes the rights and privileges of bondholders as well as the obligations and commitments of the issuing company
Assume Peanut Butter and Jelly are two complement products. For both markets explain what happens for an increase in the Supply of Jelly to both the Peanut butter and Jelly markets.
Answer:
Complementary goods are goods that are consumed together
If the supply of Jelly increases, the supply curve for jelly shifts rightward. As a result of the rightward shift, price decreases and quantity increases.
Because jelly and peanut butter are complements, an increase in the supply leads to an increase in the supply of peanut butter.
the supply curve of peanut butter shifts outward also. As a result of the rightward shift, price decreases and quantity increases.
Explanation:
A complimentary service or product is one that is employed in connection with just another good or service. When ingested solo, the complement product is usually of little or no value. If a commodity has a positive connection with another product, it is considered complimentary.
The supply curve for jelly goes rightward as the supply of jelly increases. Price drops and quantity volume increases of the rightward shift. Because jelly and peanut butter complement one other, an increase in jelly availability leads to an increase in peanut butter supply. Peanut butter's supply curve is also shifting outward. Price decreases and quantity increases as a result of the rightward shift.
The cross-price elasticity of demand is equal to 2 and larger than 1, indicating that demand is elastic and positive since wheat and rice are complimentary items, and as the price of wheat rises, so does the demand for rice.
To know more about the complementary goods, refer to the link below:
https://brainly.com/question/1240785
Theresa is considering starting a small business. She plans to purchase equipment costing $145,000. Rent on the building used by the business will be $26,000 per year while other operating costs will total $30,000 per year. A market research specialist estimates that Theresa's annual sales from the business will amount to $80,000. Theresa plans to operate the business for 6 years. Disregarding the effects of taxes, what will be the amount of annual net cash flow generated by the business?
A) $24,000
B) $56,000
C) $80,000
D) None of these answers is correct.
In the liquidation of a partnership, any partner who has a capital deficiency Group of answer choices has a personal debt to the partnership for the amount of the deficiency. is automatically terminated as a partner. will receive a cash distribution only on the basis of his or her income-sharing ratio. is not obligated to make up the capital deficiency.
Answer: A. has a personal debt to the partnership for the amount of the deficiency
Explanation:
Partnership is a form of business whereby two or more people come together and manage an organization together.
Capital deficiency refers to when there's a debit balance in the capital account of a partner after the allocation of gain or loss.
In the liquidation of a partnership, any partner who has a capital deficiency has a personal debt to the partnership for the amount of the deficiency.
Suppose net exports and net capital outflow are in equilibrium in a small open economy. If foreign governments adopt expansionary fiscal policy, in the small open economy the real exchange rate ____________ and net exports ____________. g
Answer:
the small open economy the real exchange rate DEPRECIATES and net exports INCREASE.
Explanation:
If the government adopts an expansionary monetary policy, then the country's currency will depreciate since a higher interest rate will result in a lower value according to the PPP thoery. When a currency depreciates, the exports become cheaper for foreign countries, so they increase. While the imports become more expensive and they decrease.
Nancy Lerner is taking a course from Professor Goodheart who will count only her best midterm grade and from Professor Stern who will count only her worst midterm grade. In one of her classes, Nancy has scores of 30 on her first midterm and 50 on her second midterm. When the first midterm score is measured on the horizontal axis and her second midterm score on the vertical, her indifference curve has a slope of zero at the point (30, 50). Therefore this class could
Answer:
be professor Goodheart's but could not be Professor Stern's.
Explanation:
The indifference curve has a slope zero when marginal rate of substitution is zero. The marginal rate of substitution for Nancy is zero when she scores 30 in her first midterm. She scores 50 in her second midterm. The Professor Goodheart's count best midterm grades so Nancy grades must belong to Professor Goodheart.
The GASB requires governments to present budgetary comparisons in their external annual financial statements (either as an additional financial statement or as schedules in required supplementary information). What does the GASB require these statements/schedules to include
Answer:
The GASB requires these statements/schedules to include:
1. budgetary comparisons for the activities that are reported in the general fund and each major special revenue fund.
2. schedules showing the original budget, the final appropriations budget, and actual inflows, outflows, and balances on a budgetary basis.
Explanation:
The purpose of GASB section 34 is to improve the financial transparency of state and local governments' fiscal reports. It also increases governmental accountability, making it possible for citizens to participate in deciding operating budgets of their states and local governments.
A certain machine will have a cost of $25,000 (then $) six years from now. Find the PW of the machine if the real interest rate is 10% per year and the inflation rate is 5% per year using (a) constant-value dollars, and (b) then-current dollars.
Answer:
The Present Worth of the machine if the real interest rate is 10% per year and the inflation rate is 5% per year, using:
(a) constant-value dollars
= $10,518.60
(b) then-current dollars
= $10,818.65
Explanation:
a) Data and Calculations:
Cost a certain machine six years from now = $25,000
Time period = 6 years
Real interest rate = 10%
Inflation rate = 5%
Nominal interest rate = 5% (10% - 5%)
Discount factor at 10% for 6 years = 0.564
Discount factor at 5% for 6 years = 0.746
PW using:
a) Constant-value dollars = $18,650 ($25,000 * 0.746)
PW = $10,518.60 ($18,650 * 0.564)
b) Then-current dollars:
The nominal rate = 0.1 + 0.05 + (0.1 * 0.05) = 0.155
$10,818.65 ($25,000 * 0.432746)
At the beginning of the year, Crane Company estimates annual overhead costs to be $2400000 and that 400000 machine hours will be operated. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 375000 hours is
Answer:
the amount of overhead applied during the year is $2,250,000
Explanation:
The computation of the overhead applied is shown below;
= Estimated annual overhead ÷ machine hours × actual machine hours
= $2,400,000 ÷ 400,000 machine hours × 375,000 hours
= $2,250,000
hence, the amount of overhead applied during the year is $2,250,000
Winston Company reported net income of $50,000 for the year. During the year, accounts receivable decreased by $7,000, accounts payable increased by $3,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is Group of answer choices $40,000. $65,000. $49,000. $45,000.
Answer:
$65000
Explanation:
Below is the calculation:
To find the net cash from the operating activity, we are required to add depreciation, accounts payable and accounts receivables.
Net income of the company = $50000
Add- expenses of depreciation = 5000
Add - Increase in accounts payable = 3000
Add - Decrease in accounts receivable = $7000
Thus net cash from operating activity = 50000 + 5000 + 3000 + 7000 = $65000
Test Tech has preferred stock outstanding that pays an $10.85 annual dividend. It price is $125. What is the required rate of return on the preferred stock
Answer:
8.7%
Explanation:
Calculation to determine the required rate of return on the preferred stock
Using this formula
Required rate of return=Annual dividend/Price
Let plug in the formula
Required rate of return=$10.85/$125
Required rate of return=0.087*100
Required rate of return=8.7%
Therefore the required rate of return on the preferred stock is 8.7%
Mutual fund A earned 10 percent while B earned 8 percent. The standard deviations of the returns were 10 percent and 7 percent, respectively. The risk free rate is 1%. According to the Sharpe ratio, which fund performed better
Answer:
Explanation:
The Sharpe ratio is given by:
(Return of portfolio - risk free rate) / standard deviation.
A farmer is considering the installation of a fuel storage system that will save $0.065 per gallon because the fuel can be purchased in bulk. The farmer uses about 20,000 gallons per year. The system will cost $10,000 to install. The annual operating and maintenance cost will be nothing in the first year but will increase by $25 each year thereafter. After ten years that the system will be used it will have a salvage value of $3,000. The Farmer
The farmer's cost of funds is 12%. What is the equivalent uniform annual benefit for the fuel storage system?Based on this analysis, should the farmer purchase the fuel storage?
Answer:
yes and because yes
Explanation:
Company Company A Company B Forecasted return 7% 11% Standard deviation of returns 8% 23% Beta 1 3 The market risk premium is 6% and the risk-free rate is 3%. Using Capital Asset Pricing Model (CAPM), will you invest in the companies
Answer and Explanation:
The computation is shown below:
As we know that
Required rate of return = Risk Free Rate + Beta × (Market Return -Risk Free Rate)
For company A
= 3% + 1 × 6%
= 9%
For Company B
= 3% + 3 × 6%
= 21%
As we can see that the forecast return should be lower than the required return so we should not invest in company A also the same is done in company B too
Therefore we dont invest in any of the company
Nike has so far had $30,000,000 in losses at its shoe factory in Vietnam in 2017. The additional revenue that it will earn from producing an additional shoe is $100 while the additional cots incurred for that additional shoe is $99.99. Should Nike continue operations in that factory and produce that additional shoe
Answer: c. Yes, because the marginal revenue from producing the additional shoe is greater than the marginal costs.
Explanation:
When making financial decisions, companies abide by the principle of Sunk Costs. This means that money that has already been spent, should not have any effect on future financial decisions. The $30 million that has been lost already will therefore not be considered.
The only figures now are the additional cost and revenue. The additional revenue is more than the additional cost so this shoe should be produced because it brings in a profit of $0.01.
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 40 billion bottles of wine were sold every year at a price of $7 per bottle. After the tax, 35 billion bottles of wine are sold every year; consumers pay $9 per bottle, and producers receive $6 per bottle (after paying the tax). The amount of the tax on a bottle of wine isper bottle. Of this amount, the burden that falls on consumers isper bottle, and the burden that falls on producers isper bottle. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.
Answer and Explanation:
The computation is shown below:
The amount of the tax for the wine bottle is
= $9 per bottle - $6 per bottle
= $3 per bottle
Before the tax, the price per bottle is $7 per bottle
The Tax burden on consumers is
= $9 - $7
= $2 per bottle
And, the tax burden on producers is
= $7 per bottle - $6 per bottle
= $1 per bottle
So, the given statement is false as the impact would remain the same whether it is for producer or consumer
Acme Air Compressor Company has decided to limit the number of compressors it will supply to some of its distributors that it suspects are selling a line of compressors made by one of its competitors. Acme is using its referent power in its distribution channel.
a. True
b. False
Answer:
b. False
Explanation:
A Referent power in an organization my be defined as the power of a person or a company that is based on high level of identification with that of admiration or inspiration or out of respect.
Thus in the context, the Acme company does not uses its referent power to its distribution channel when the company decides to limit the supply of the its compressors to some of its distributors as the distributors are selling some of the air compressors of the competitor company.
Hence the answer is FALSE.
What would happen to GDP if the government hired unemployed workers who had been receiving an amount $0.5 TR in unemployment benefits, as government employees and now paid them $1 TR
Answer:
GDP will increase by $1 TR.
Explanation:
If the government is giving an amount to the unemployed worker then it will not account for the GDP because GDP calculation does not account the government transfers. Moreover, when the government hires them and paid them $1 TR. Thus this will consider as salary and salary is included in the GDP. Therefore, GDP will increase by $1TR.
Furniture, Inc., estimates the following number of mattress sales for the first four months of 2019: Month Sales January 29,000 February 40,800 March 34,600 April 36,200 Finished goods inventory at the end of December is 7,000 units. Target ending finished goods inventory is 20% of the next month's sales. How many mattresses need to be produced in January 2019?
Select one:
a. 27,800 mattresses
b. 41,800 mattresses
c. 30,160 mattresses
d. 44,160 mattresses
Answer:
c. 30,160 mattresses
Explanation:
At the beginning of January, we had 7,000 units as opening stock inventory( which was the ending inventory in December), which means out of the planned sales in January 7,000 units are already available
The balance of January sales to be produced in January is the excess of planned sales of 29,000 units over the beginning inventory of 9,000 units
January sales items to be produced in January=29000-7000
January sales items to be produced in January=22,000
Also, we need to produce 20% of February sales in January which would serve as the closing inventory
total production in January=22,000+(40,800*20%)
total production in January=. 30,160 mattresses
You are a bidder in an independent private values auction, and you value the object at $4,000. Each bidder perceives that valuations are uniformly distributed between $1,500 and $9,000. Determine your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:
Answer:
a. 2 bidders $2,750
b. 10 bidders $3,750
c. 100 bidders $3,975
Explanation:
Calculation to determine what your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:
Using this formula
Optimal bidding = Bidder's own valuation - (Bidder's own valuation - Lowest valuation) ÷ Number of bidders
Let plug in the formula
a) 2 bidders
Optimal bid = $4,000 - [($4,000 - $1,500) ÷ 2]
Optimal bid = $4,000 - ($2,500÷2)
Optimal bid = $4,000 - $1,250
Optimal bid = $2,750
b) 10 bidders
Optimal bid = $4,000 - ($4,000 - $1,500) ÷ 10
Optimal bid = $4,000 - ($2,500÷10)
Optimal bid = $4,000 -$250
Optimal bid =$3,750
c) 100 bidders
Optimal bid = $4,000 - ($4,000 - $1,500) ÷ 100
Optimal bid = $4,000 - ($2,500÷100)
Optimal bid = $4,000-$25
Optimal bid = $3,975
Therefore your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:
a. 2 bidders $2,750
b. 10 bidders $3,750
c. 100 bidders $3,975
Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company’s products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,100 helmets, using 2,232 kilograms of plastic. The plastic cost the company $14,731. According to the standard cost card, each helmet should require 0.65 kilograms of plastic, at a cost of $7.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets? 2. What is the standard materials cost allowed (SQ × SP) to make 3,100 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance?
Answer:
Bandar Industries Berhad of Malaysia
1. The standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets is:
= 2,015
2. The stand materials cost allowed (SQ * SP) is:
= $14,105
3. The materials spending variance is:
= $626 U
4. The materials price variance is:
= $893 F
The materials quantity variance is:
= $1,519 U
Explanation:
a) Data and Calculations:
Number of helmets manufacturing = 3,100
Units of direct materials used = 2,232 kilograms
Actual unit of direct materials used = 0.72 kilograms (2,232/3,100)
Cost of direct materials = $14,731
Unit cost of direct materials = $6.60 ($14,731/2,232)
Standard costs per kilogram = $7.00
Standard units of direct materials = 0.65 kilograms
1. The standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets = 2,015 (3,100 * 0.65)
2. The stand materials cost allowed (SQ * SP) = $14,105 (2,015 * $7.00)
3. The materials spending variance = $626 U ($14,731 - $14,105)
4. The materials price variance = standard price - actual price * actual quantity used
= $7.00 - $6.60 * 2,232
= $893 F
The materials quantity variance = standard quantity - actual quantity * standard price
= 2,015 - 2,232 * $7
= $1,519 U
Hugh is in charge of creating the value proposition for a new start-up company. In order for him to create an effective value proposition, what questions does he need to answer for a potential consumer
Answer:
Who is the target buyer for the offering, what is the offering to the buyer, why is the offering unique for the customer
Explanation:
Since in the given situation, it is mentioned that the hugh developed the value proposition for newly startup company so for developing the effective value proposition he need to answer the question for a consumer that involved about the target purchaser who is offering, the offering made to the buyer and the unique offering made to the customer
These 3 types of questions he need to answer
The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the:
Direct method
Explanation:
How jse reported the negative impact of the coronavirus on the economic conditions
Answer:
C
Explanation:
sorry if im wrong tried my best
Samantha Rose Inc. made a $25,000 sale on account with the following terms: 1/15, n/30. If the company uses the net method to record sales made on credit, how much should be recorded as revenue
Answer:
$24,750
Explanation:
The computation of the amount that should be recorded is shown below"
Sales on account = $25,000
Credit term = 1/15, n/30
Sales discount rate = 1%
Now
Sales discount = Sales on account × Sales discount rate
= 25,000 × 1%
= $250
So,
Net sales = Sales- Sales discount
= $25,000 - $250
= $24,750
