Explaination
Marketers sometimes forced to reposition their services or products to ensure profitability the company has no other option but to reposition its services or products that would cater to a new target segment of their existing market and ensure sales or profitability.
ReasonThere could be many reasons for marketers repositioning their products.
The products are evolving and getting more features into it. They needs to marketed differently in order to make the customers aware of the new features, add-ons. In this case, it is better to reposition the products.
Total assets were $78,000 and total liabilities were $42,000 at the beginning of the year. Net income for the year was $15,500, and dividends of $5,000 were declared and paid during the year.
Required:
Calculate total stockholders' equity at the end of the year.
Answer:
$46,500
Explanation:
Accounting equation is stated as :
Assets = Equity + Liabilities
therefore,
Equity = Assets - Liabilities
Equity at Beginning of the Period :
Equity = Assets - Liabilities
= $78,000 - $42,000
= $36,000
Equity at end of the Period
Closing Equity Balance = Opening Balance + Net Income - Dividends
= $36,000 + $15,500 - $5,000
= $46,500
Before month-end adjustments are made, the February 28 trial balance of Neutral Milk Hotel contains revenue of $7,000 and expenses of $4,400. Adjustments are necessary for the following items: Depreciation for February is $1,800. Revenue recognized but not yet billed is $2,700. Accrued interest expense is $700. Revenue collected in advance that is now recognized is $2,500. Portion of prepaid insurance expired during February is $400.InstructionsCalculate the correct net income for Neutral Milk Hotel’s Income Statement for February.
Answer: $4,900
Explanation:
Net income will be:
= (Revenue + Revenue recognized but not yet billed + Revenue collected in advance that is now recognized) - Expenses - Depreciation - Accrued interest expense - Portion of prepaid insurance for the month
= (7,000 + 2,700 + 2,500) - 4,400 - 1,800 - 700 - 400
= $4,900
You are planning to make monthly deposits of $90 into a retirement account that pays 10 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 19 years?
Answer:
$71,644.27
Explanation:
Future value of the deposit in 19 years = Monthly deposit * [(1 + interest rate/12)^12*No. of years - 1] / (interest rate/12
= $90 * [(1 + 10%/12)^12*19 - 1] / (10%/12)
= $90 * [6.63346333924 - 1] / 0.008333
= $90 * 6.63346333924/0.008333
= $90 * 796.0474
= $71644.269835
= $71,644.27
Your grandparents put $10,200 into an account so that you would have spending money in college. You put the money into an account that will earn an APR of 4.19 percent compounded monthly. If you expect that you will be in college for 4 years, how much can you withdraw each month?
Answer:
Monthly withdrawal = $ 231.17 per month
Explanation:
Below is the calculation:
Deposit amount in the bank = $10200
Interest rate earned by the deposit = 4.19%
Monthly interest rate = 4.19% / 12 = 0.34917%
Number of periods = 4 years x 12 = 48
Amount in the account = Monthly withdrawal x (P/A, 0.34917%, 48)
10200 = Monthly withdrawal x 44.12246
Monthly withdrawal = 10200/44.12246
Monthly withdrawal = $ 231.17 per month
Complete accounting cycle and financial statements
The city council of E. Staatsboro approved the following budget for the General Fund for fiscal year 2019.
Estimated Revenues
Property taxes $335,000
License fees 40,000
Fines and penalties 15,000
Total revenues $390,000
Appropriations
Salaries $350,000
Supplies and utilities 30,000
Debt service 3,000
Total appropriations 383,000
Budgeted Increase in Fund Balance $7,000
The postclosing trial balance for the fund, as of December 31, 2018, was as follows:
Debits Credits
Cash $15,000
Vouchers payable $8,000
Fund balance (unassigned) 7,000
$15,000 $15,000
The following transactions and events occurred during FY 2019.
1. Levied property taxes of $335,000 and mailed tax bills to property owners.
2. Borrowed $300,000 on tax anticipation notes at an interest rate of 1 percent per annum.
3. Ordered supplies expected to cost $18,000.
4. The supplies arrived, along with an invoice for $19,000; the city paid the invoice immediately.
5. Received cash ($383,000) from the following sources: property taxes ($330,000), licenses and fees ($38,000), fines and penalties ($15,000).
6. Paid cash for the following purposes: unpaid vouchers at the start of year ($8,000); salaries ($340,000); utility bills ($11,000).
7. Repaid the tax anticipation notes 6 months after date of borrowing, with interest.
8. Processed a budgetary interchange, increasing the appropriation for supplies and utilities by $2,000 and reducing the appropriation for salaries by the same amount.
9. Will pay salaries for the last few days in December, amounting to $2,000, at the end of the first pay period in January 2020; also, received in early January 2020 a utilities invoice for $1,000 applicable to December 2019.
Use the preceding information to do the following:
a. Prepare journal entries to record the budget and the listed transactions and events.
b. Prepare a preclosing trial balance.
c. Prepare a balance sheet; a statement of revenues, expenditures, and changes in fund balance; and a budgetary comparison schedule.
Leona, whose marginal tax rate on ordinary income is 37 percent, owns 100 percent of the stock of Henley Corporation. This year, Henley generates $1 million of taxable income.
If Henley wants to pay all of its after-tax earnings to Leona as a dividend, calculate the amount of the dividend payment.
Calculate Leona’s tax due on the dividend computed in part a, and her after-tax cash flow from the dividend receipt.
Compute the combined corporate and individual tax burden on Henley’s $1 million of current year income, and the effective combined tax rate on this income.
Answer: See explanation
Explanation:
First and foremost, it should be noted that there's a flat tax rate of 21% on the taxable income, therefore the after tax income will be:
= (1 - 21%) × $1 million
= 79% × $1 million
= $790,000
Therefore, the amount of the dividend payment is $790,000 which is given to Leona.
The after tax cash flow from the dividend receipt will be:
= $790,000 - (20% × $790,000)
= $790,000 - (0.2 × $790,000)
= $790,000 - $158,000
= $632,000
Therefore, the total tax by Henly and Leona will then be:
= $210,000 + $158,000
= $368,000.
This is 36.8% (368000/1 million) of the tax rate.
Redeker Company purchased equipment on January 1, 2016, for $90,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life.
Required:
Compute the amount of depreciation expense for the year ended December 31, 2016, using the straight-line method of depreciation
Answer:
to the end of the sixth year;
b/ The number of years required before the capital stock exceeds $200 000.
If the straight-line method of depreciation were used in the given case, the amount of depreciation expense for the year ending December 31, 2016, would be $17,000.
What is the depreciation?Depreciation is the measurement for the decline in any assets because over time, wear, use, and tear, or devolution cause an asset's monetary value to drop.
Depreciation, or a decline in asset value, can be brought forward on by a variety of other variables, such as bad market conditions, etc.
Computation of depreciation:
According to the given case,
Equipment Cost = $90,000
Salvage Value = $5,000
Useful Life = 5 years
Depreciation per Year = (Cost of asset – Salvage Value)/5 years
Depreciation per Year = ($90,000-$5,000/5)
Depreciation per Year = $17,000
Therefore, the depreciation as per straight line method would be $17,000.
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Mr. Hopper expects to retire in 30 years, and he wishes to accumulate $1,000,000 in his retirement fund by that time. If the interest rate is 12% per year, how much should Mr. Hopper put into his retirement fund at the end of each year in order to achieve this goal
Answer:
Annual deposit = $4100
Explanation:
Annual deposit = $4100
Number of years for retirement = 30 years
Future value of money = $1000000
Interest rate = 12%
Now use the below formula to find the annuity amount.
Annual deposit = Future value (A/F, r, n)
Annual deposit = 1000000 (A/F, 12%, 30)
Annual deposit = 1000000(0.0041)
Annual deposit = $4100
The amount Mr Hopper should put in his retirement fund each year is $4143.66.
In order to determine the amount of money Mr. Hopper should deposit each year, this formula would be used:
Yearly payment = future value / annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
Where:
R = interest rate
N = number of years
Annuity factor = [(1.12)^30 - 1] / 0.12 = 241.332684
Yearly payment = $1,000,000 / 241.332684 = $4143.66
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trên cơ sở lý thuyết nhóm hãy chọn một công ty hiện kinh doanh tại thị trường việt nam, dòng sản phẩm tiêu dùng, phân tích thực trạng:
- chiến lược điều chỉnh giá của công ty
- chiên lược chủ động thay đổi giá
Answer:
es la coma estate should be your answer
Mickley Company’s plantwide predetermined overhead rate is $20.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour. The following information pertains to Job A-500: Direct materials $ 280 Direct labor $ 150 Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 70 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)
Answer and Explanation:
The computation is shown below;
1.
Total hours for job A - 500
= Direct labor ÷direct labor wage rate
= $150 ÷ $15
= 10
Total over head cost = overhead cost per labor hours × no. of labor hours
= $20 × 10
= $200
total manufacturing cost = Direct materials cost + Direct labor cost + Total over head cost
= $280 + $150 + $200
= $630
2.
Cost assigned to each unit
= total manufacturing cost ÷ number of units
= $630 ÷ 70
= $9
Define and explain SMART?
Cho e hỏi các vấn đề của chuỗi cung ứng thực phẩm trong kinh doanh ẩm thực và cách khắc phục ạ
Mong mọi người giúp đỡ e ạ
Answer: Dưới nhu cầu thưởng thức các loại thực phẩm đa dạng, tươi ngon vào bất kỳ thời điểm nào trong năm, chuỗi cung ứng thực phẩm đã phải mở rộng hơn nhiều về mặt địa lý và buộc phải thông qua nhiều nhà cung cấp hơn. Điều này đã làm cho nghiệp vụ quản lý chuỗi cung ứng ngành thực phẩm trở nên cồng kềnh và phức tạp hơn bao giờ hết. Các nhà sản xuất, nhà phân phối hay các nhà cung cấp dịch vụ logistics theo đó cũng phải chịu những áp lực không nhỏ để đưa các sản phẩm thực phẩm ra thị trường một cách nhanh chóng, an toàn và trong điều kiện tốt nhất có thể. Một chuỗi cung ứng thực phẩm điển hình bao gồm sáu giai đoạn:
1. Tìm nguồn cung cấp nguyên liệu thô
2. Sản xuất
3. Chế biến và đóng gói
4. Lưu trữ
5. Phân phối bán buôn
6.Phân phối bán lẻ
Explanation:
1. Bên cạnh đó mọi vấn đề liên quan đến giá trị sản xuất đều gặp những khó khăn nhất định, một trong những vấn đề mà mọi doanh nghiệp hay cá nhân tham gia vào chuỗi cung ứng thực phẩm đều phải lo ngại về vấn đề ( Tìm nguồn cung cấp nguyên liệu thô). Vấn đề truy xuất và đảm bảo nguồn thực phẩm sạch là vấn đề cần cân nhắc đầu tiên, đi đôi đó là phải đảm bảo phù hợp với mô hình kinh doanh của doanh nghiệp, phù hợp với điều kiện kinh tế.
May mắn thay chúng ta đang sống ở thời đại 4.0 việc truy xuất nguồn gốc nguyên liệu đã không còn nhiều thách thách bởi việc áp dụng công nghệ vào việc truy xuất nguyên liệu rất dễ dàng ví dụ thông qua mã code, mã QR... bằng vài một thao tác đơn giản cũng có thể truy xuất nguồn gốc nguyên liệu nhanh, hiệu quả, tiết kiết chi phí đi lại xác minh. Vấn đề thứ hai là đảm bảo nguồn nguyên liệu thô được xử lý an toàn đã và đang ngày càng không còn là thách thức. Bởi việc ứng dụng công nghệ vào xử lý nguyên liệu thô vừa nhanh chóng, chính xác hiệu quả, ví dụ ngay từ khâu thu hoạch nguyên liệu thô các may móc đã hỗ trợ giúp đảm bảo nguồn nguyên liệu đầu vào đều và chính xác. Các khâu gieo trồng hay xử lý cũng được giúp ngắn và khoa học nhờ có ứng dụng công nghệ, khoa học. Nhưng đi bên cạnh là chi phí cao để đảm bảo chất lượng.
Bên cạnh đó việc xây dựng một mạng lưới về chuỗi cung ứng thực phẩm trong kinh doanh là một việc vô cùng quan trọng, quyết định sự phát triển của cả doanh nghiệp. Mặc dù là một loại công nghệ vẫn chưa được sử dụng rộng rãi trong ngành công nghiệp thực phẩm, nhưng blockchain được nhiều lãnh đạo coi là một công nghệ đầy hứa hẹn cho phép truy xuất nguồn gốc trong chuỗi cung ứng thực phẩm.
Công nghệ blockchain là một nền tảng số chung, nơi người dùng có thể lưu trữ và chia sẻ thông tin qua một mạng lưới tổng. Hệ thống này cho phép người dùng xem tất cả các giao dịch cùng một thời điểm trong thời gian thực. Một trong những lợi thế chính của blockchain là một khi thông tin được thêm vào hệ thống, thông tin đó sẽ được phân phối nội bộ trong mạng lưới và được lưu trữ cố định trong đó vĩnh viễn. Thông tin do vậy sẽ không thể bị tấn công, thao túng hoặc bị hư hại bởi bất kỳ cách nào.
2. Tiếp đó là thách thức chi phí vận hành chuỗi cung ứng tăng cao
Điều hành một chuỗi cung ứng thực phẩm sẽ tiêu tốn nhiều loại chi phí, một số chi phí quan trọng bao gồm: Chi phí điện và nhiên liệu, Chi phí logistics, vận chuyển hàng hóa , Chi phí nhân công , Chi phí đầu tư vào công nghệ mới
Những chi phí này rất đáng kể, do vậy, việc theo dõi chi phí hoạt động thường xuyên là một thách thức cho các doanh nghiệp ngành thực phẩm.
Cho nên giải pháp hữu hiệu nhất đó là Bước đầu tiên để kiểm soát chi phí là phải hiểu rõ các loại chi phí hiện có trong hoạt động doanh nghiệp. Trong các chuỗi cung ứng đơn giản, điều này có thể được thực hiện bằng các công cụ bảng tính. Nhưng ở nếu chuỗi cung ứng ngày càng trở nên phức tạp, doanh nghiệp sẽ cần một giải pháp công nghệ. Doanh nghiệp nên nâng cấp công nghệ của mình, những công việc như gửi tệp bảng tính qua email hay gọi điện báo tin cần được loại bỏ.
Một lưu ý khác là nếu các lãnh đạo quá quan tâm đến việc tiết kiệm chi phí thì tính hiệu quả và sự phát triển lâu dài của doanh nghiệp có thể bị kìm hãm. Một giải pháp công nghệ “đắt tiền”, ví dụ đó là đẩy mạnh mảng truyền trông marketing sản phảm, xâm nhập thị trường khôn ngoan bằng công nghệ mới, mặt hàng mới tác dụng mới, có thể mang lại lợi tức đầu tư đáng kể và tiết kiệm rất nhiều loại chi phí về lâu dài. Từ đó, doanh nghiệp vận hành hiệu quả và trở nên hấp dẫn hơn trong mắt các khách hàng.
Trên đây là những vấn đề cơ bản mà mình nghĩ sẽ giúp ích cho bạn từ kinh nghiệp của bản thân cũng như những kinh nghiệm mà mình học hỏi được. Mong rằng sẽ giúp ích cho bạn. Mình chỉ muốn khuyên là hãy trở thành nhà đầu tư, kinh doanh khôn ngoan, sáng tạo.
Why do you think demand analysis is essential for businesses?
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--------------------------------------------------------------------------------------------------------------Question: Why do you think demand analysis is essential for businesses?
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Answer: Demand analysis is the process of understanding the customer demand for a product or service in a target market. Companies use demand analysis techniques to determine if they can successfully enter a market and generate expected profits to expand their business operations. It also gives a better understanding of the high-demand markets for the company’s offerings, using which businesses can determine the viability of investing in each of these markets. The importance of demand analysis in the business decision is that it helps firms design their pricing policy. The Firm can choose either to lower or raise a product’s price by observing the trend of consumer demand for that product. Producers can’t fix the price for their products without first understanding the market demand for them. These are reasons why I think demand analysis is essential for businesses
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XYZ pays for 40% of its raw materials purchases in the month of purchase and 60% in the following month. Budgeted cost of materials purchases in July is $256,550 and $278,050 in Aug. Total budgeted cash disbursements for materials purchases in August is:______.
A) S265,150
B) $153,930
C) $166,830
D) S111,220
Answer:
$265,150
Explanation:
Cost of material purchases in July
= 256,550 × 60/100
= 256,550×0.6
= 153,930
Cost of purchases in August
= 278,050×40/100
= 278,050×0.4
= 111,220
Total cash disbursement
= 111,220+153,930
= $265,150
The information below applies to a competitive firm that sells its output for $40 per unit.
• When the firm produces and sells 150 units of output, its average total cost is $24.50.
• When the firm produces and sells 151 units of output, its average total cost is $24.55.
How does the firm's marginal revenue (MR) compare to its marginal cost (MC) when it increases its output from 150 units to 151 units?
a. MR exceeds MC by $7.95.
b. MR exceeds MC by $11.05.
c. MC exceeds MR by $11.05.
d. MC exceeds MR by $13.50.
Answer:
A
Explanation:
Marginal cost is the change in total cost when output is increased by 1 unit
total cost = average cost x quantity
Marginal cost = (151 x 24.55) - (150 x 24.50) = 32.05
marginal
A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 7.3%, and sells for $1,170. Interest is paid annually.a. If the bond has a yield to maturity of 10.7% 1 year from now, what will its price be at that time? (Do not round intermediate calculations. Round your anser to nearest whole number.)b. What will be the annual rate of return on the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)c. Now assume that interest is paid semiannually. What will be the annual rate of return on the bond?Slightly greater than your part b answerSlightly less than your part b answerd. If the inflation rate during the year is 3%, what is the annual real rate of return on the bond? (Assume annual interest payments.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)
Answer:
a. Price 1 year later = $810
b. Annual rate of return on the bond = -24.53%
c. Since -24.79% is lower than -24.53% obtained part b, this implies that annual rate of return is slightly less than our part b answer.
d. Annual real rate of return on the bond = -26.73%
Explanation:
a. If the bond has a yield to maturity of 10.7% 1 year from now, what will its price be at that time? (Do not round intermediate calculations. Round your answer to nearest whole number.)
This can be calculated as follows:
Price 1 year later = Coupon rate * Par value / Yield to maturity * (1 - 1 / (100% + Yield to maturity)^Years to maturity) + Par value / (100% + Yield to maturity)^Years to maturity = 7.3% * 1000 / 10.7% * (1 - 1 / (100% + 10.7%)^9) + 1000 / (100% + 10.7%)^9 = $810
b. What will be the annual rate of return on the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)
This can be calculated as follows:
Annual rate of return on the bond = (Price 1 year later + Coupon rate * Par value) / Price now - 1 = (810 + 7.3% * 1000) / 1170 - 1 = -24.53%
c. Now assume that interest is paid semiannually. What will be the annual rate of return on the bond?Slightly greater than your part b answer Slightly less than your part b answer
This can be determined as follows:
Price 1 year later = (Coupon rate / 2) * Par value / (Yield to maturity / 2) * (1 - 1 / (100% + (Yield to maturity / 2))^(Years to maturity * 2)) + Par value / (100% + (Yield to maturity / 2))^(Years to maturity * 2) = (7.3% / 2) * 1000 / (10.7% / 2) * (1 - 1 / (100% + (10.7% / 2))^(9 * 2)) + 1000 / (100% + (10.7% / 2))^(9 * 2) = $807
Annual rate of return on the bond = (Price 1 year later + Coupon rate * Par value) / Price now - 1 = (807 + (7.3% / 2) * 1000) / 1170 - 1 = -24.79%
Since -24.79% is lower than -24.53% obtained part b, this implies that annual rate of return is slightly less than our part b answer.
d. If the inflation rate during the year is 3%, what is the annual real rate of return on the bond? (Assume annual interest payments.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)
This can be calculated as follows:
Annual real rate of return on the bond = (1 + nominal return) / (1 + inflation)-1 = (1 - 24.53%) / (1 +3 %) - 1 = -26.73%
Which of the following non-GAAP disclosures is LEAST LIKELY to create variance between GAAP and non-GAAP operating income:
a. Goodwill impairment
b. Inventory write down
c. Currency loss from closing of a foreign subsidiary
d. Gain on sale of an asset
Answer: c. Currency loss from closing of a foreign subsidiary.
Explanation:
GAAP refers to the industry standard and it gives a clear view of the operations of a business from a financial point of view. On the other hand, the non-GAAP disclosure deviates from the industry standard and in such case, adjustments are made to show company's operations.
The non-GAAP disclosures which is least likely to create variance between GAAP and non-GAAP operating income is the currency loss from closing of a foreign subsidiary.
Categorize each scenario as describing a movement along a demand curve or a shift of the demand curve.
a. College students rush and buy discount furniture to take advantage of a one-day sale
b. Students eat out more often as the federal government increase how much grant money it provides
c. College students reduce how detergent they for each of laundry response to higher detergent prices.
d. College students purchase many more energy drinks during finals week than during the rest of the semester.
Answer:
a, a movement along a demand curve
b. shift of the demand curve.
c. a movement along a demand curve
d. shift of the demand curve.
Explanation:
Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.
Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :
1. a change in consumers' expectation
2. a change in the taste of consumers
3. a change in income
a. A discount would reduce the price of furniture, as a result the quantity demanded would increase. There would be a movement down along the demand curve.
b. As a result of the increase in grant, the income of students increase. this would lead to an increase in demand. the demand curve would shift outward
c. As a result of higher prices, the quantity demanded of detergents would reduce. This would lead to a movement up along the demand curve for detergents
d. An increase in demand for energy drinks is as a result of a change in taste. this would lead to an outward shift of the demand curve
Gray, Stone, and Lawson open an accounting practice on January 1, 2016, in San Diego, California, to be operated as a partnership. Gray and Stone will serve as the senior partners because of their years of experience. To establish the business, Gray, Stone, and Lawson contribute cash and other properties valued at $410,000, $340,000, and $170,000, respectively. An articles of partnership agreement is drawn up. It has the following stipulations:
Personal drawings are allowed annually up to an amount equal to 10 percent of the beginning capital balance for the year.
Profits and losses are allocated according to the following plan:
1. A salary allowance is credited to each partner in an amount equal to $8 per billable hour worked by that individual during the year.
2. Interest is credited to the partners’ capital accounts at the rate of 12 percent of the average monthly balance for the year (computed without regard for current income or drawings).
3. An annual bonus is to be credited to Gray and Stone. Each bonus is to be 10 percent of net income after subtracting the bonus, the salary allowance, and the interest. Also included in the agreement is the provision that there will be no bonus if there is a net loss or if salary and interest result in a negative remainder of net income to be distributed.
4. Any remaining partnership profit or loss is to be divided evenly among all partners.
Because of financial shortfalls encountered in getting the business started, Gray invests an additional $9,200 on May 1, 2016. On January 1, 2017, the partners allow Monet to buy into the partnership. Monet contributes cash directly to the business in an amount equal to a 20 percent interest in the book value of the partnership property subsequent to this contribution. The partnership agreement as to splitting profits and losses is not altered upon Monet’s entrance into the firm; the general provisions continue to be applicable. The billable hours for the partners during the first three years of operation follow:
2016 2017 2018
Gray 2,020 4,200 2,130
Stone 1,680 2,300 1,860
Lawson 3,700 1,620 1,550
Monet 0 1,430 1,820
The partnership reports net income for 2016 through 2018 as follows:
2016 $98,000
2017 (44,400)
2018 236,000
Each partner withdraws the maximum allowable amount each year.
A. Determine the allocation of income for each of these three years.
B. Prepare in appropriate form a statement of partners’ capital for the year ending December 31, 2018.
Answer:
thast way too long for just 10 points
Explanation:
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Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed: Std. Hours or Quantity Std. Price or Rate Direct materials 3 pounds $0.75 per pound Direct labor 0.4 hours $12 per hour During March the laboratory performed 2,000 core tests. The following events occurred during March: 8,600 pounds of sand were purchased at a cost of $7,310. 7,200 pounds of sand were used for core tests. 840 actual direct labor hours were worked at a cost of $8,610. The direct material usage variance for March is:
Answer:
1200 U
Explanation:
Standard of material usage:
Material required 3 pounds per test
2000 core tests performed
Standard usage : 2,000 test * 3 pound per test = 6000 pounds
Actual usage of material = 7,200
Variance = 1,200 unfavorable.
Consider the case of Cranked Coffee Company:
Cranked Coffee Company is a mature firm that has a stable flow of business. The following data was taken from its financial statements last year:
Annual sales $10,200,000
Cost of goods sold $6,630,000
Inventory $3,200,000
Accounts receivable $2,200,000
Accounts payable $2,400,000
Cranked Coffee’s CFO is interested in determining the length of time funds are tied up in working capital. Use the information in the preceding table to complete the following table. (Note: Use 365 days as the length of a year in all calculations, and round all values to two decimal places.)
Value
Inventory conversion period 46.93; 41.71; 176.71; or 39.11
Average collection period 27.25; 78.73; 24.38; or 22.94
Payables deferral period 32.50; 41.07; 33.24; or 132.13
Cash conversion cycle 39.62; 122.77; 37.54; 45.88
B: Both the inventory conversion period and payables deferral period use the average daily COGS in their denominators, whereas the average collection period uses average daily sales in its denominator. Why do these measures use different inputs?
Inventory and accounts payable are carried at cost on the balance sheet, whereas accounts receivable are recorded at the price at which goods are sold.
Current assets should be divided by sales, but current liabilities should be divided by the COGS.
C. Is there generally a positive or negative relationship between net working capital and the cash conversion cycle?(In other words, if a firm has a high level of net working capital, is it likely to have a high or low cash conversion cycle?)
There is a positive relationship between net working capital and the cash conversion cycle.
There is a negative relationship between net working capital and the cash conversion cycle.
D. What are the four key factors in a firm’s credit policy?
Credit terms, discounts, credit standards, and collection policy
Credit period, discounts, credit standards, and collection policy
E. If the credit terms as published by a firm were 2/15, net 60, this means the firm will:
allow a 2% discount if payment is received within 15 days of the purchase, and if the discount is not taken the full amount is due in 60 days.
allow a 15% discount if payment is received within 2 days of the purchase, and if the discount is not taken the full amount is due in 60 days.
F. The management at Cranked Coffee Company wants to continue its internal discussions related to its cash management. One of the finance team members presents the following case to his cohorts:
Case in Discussion
Cranked Coffee Company’s management plans to finance its operations with bank loans that will be repaid as soon as cash is available. The company’s management expects that it will take 40 days to manufacture and sell its products and 35 days to receive payment from its customers. Cranked Coffee’s CFO has told the rest of the management team that they should expect the length of the bank loans to be approximately 75 days.
Which of the following responses to the CFO’s statement is most accurate?
The CFO is not taking into account the amount of time the company has to pay its suppliers. Generally, there is a certain length of time between the purchase of materials and labor and the payment of cash for them. The CFO can reduce the estimated length of the bank loan by this amount of time.
The CFO’s approximation of the length of the bank loans should be accurate, because it will take 75 days for the company to manufacture, sell, and collect cash for its goods. All these things must occur for the company to be able to repay its loans from the bank.
Setting and implementing a credit policy is important for three main reasons:
It has a minor effect on sales, it influences the amount of funds tied up in receivables, and it affects bad debt losses.
It has a major effect on sales, it influences the amount of funds tied up in receivables, and it affects bad debt losses.
Answer:
Cranked Coffee Company
A. Cash conversion cycle = 122.77 days.
B. The measures use different inputs because:
Inventory and accounts payable are carried at cost on the balance sheet, whereas accounts receivable are recorded at the price at which goods are sold.
C. There is a negative relationship between net working capital and the cash conversion cycle.
D. Credit period, discounts, credit standards, and collection policy
E. If the credit terms as published by a firm were 2/15, net 60, this means the firm will:
allow a 2% discount if payment is received within 15 days of the purchase, and if the discount is not taken the full amount is due in 60 days.
F. The most accurate response to the CFO's statement is:
The CFO’s approximation of the length of the bank loans should be accurate, because it will take 75 days for the company to manufacture, sell, and collect cash for its goods. All these things must occur for the company to be able to repay its loans from the bank.
G. Setting and implementing a credit policy is important for three main reasons:
It has a major effect on sales, it influences the amount of funds tied up in receivables, and it affects bad debt losses.
Explanation:
a) Data and Calculations:
Annual sales $10,200,000
Cost of goods sold $6,630,000
Inventory $3,200,000
Accounts receivable $2,200,000
Accounts payable $2,400,000
Inventory conversion period = Inventory ÷ (Cost of sales ÷ 365)
= $3,200,000/$6,630,000 * 365
= 176.17 days
Average collection period = Accounts receivable/Sales * 365
= $2,200,000/$10,200,000 * 365
= 78.73 days
Payables deferral period = Accounts payable/Cost of goods sold * 365
= $2,400,000/$6,630,000 * 365
= 132.13 days
Cash conversion cycle = Inventory conversion period + Average collection - Payables deferral period
= 176.17 + 78.73 - 132.13
= 122.77
Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 9,600,000 $ 26,000,000 Net operating income $ 672,000 $ 2,340,000 Average operating assets $ 3,200,000 $ 13,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 16%. Compute the residual income for each division.
Answer and Explanation:
The computation is shown below;
a. The return on investment is
= Margin turnover
= Net operating income ÷ sales × sales ÷ average operating assets
For Osaka
= $672,000 ÷ $9,600,000 × $9,600,000 ÷ $3,200,000
= 21%
For Yokohama
= $2,340,000 ÷ $2,600,000 × $2,600,000 ÷ $13,000,000
= 18%
2. The residual income is
= Net operating income - (average operating assets × rate of return)
For Osaka
= $672,000 - ($3,200,000 × 16%)
= $160,000
For yokohama
= $2,340,000 - ($13,000,000 × 16%)
= $260,000
Transaction-processing systems _____.
a. involve low volumes of data
b. require maximum human involvement
c. require extensive managerial judgment
d. involve operations that are repetitive
Answer:
d. involve operations that are repetitive
Explanation:
Transaction-processing systems can be defined as a system used by businesses to process their daily transactions by collecting, storing, modifying and retrieving of related data (informations). It's commonly used by businesses that deals with e-commerce (online transactions) and as such involves a request by a customer, an acknowledgement by the company, an action in response to the request and an output to the customer.
Transaction-processing systems involve operations that are repetitive.
Assume that Division Blue has achieved a yearly income from operations of $166,000 using $976,000 of invested assets. If management has set a minimum acceptable return of 8%, the residual income is a.$166,000 b.$105,504 c.$70,336 d.$87,920
Answer:
d.$87,920
Explanation:
Residual Income = Net Income - Cost of Investment
therefore
Residual Income = $166,000 - ($976,000 x 8%)
= $87,920
Suppose a commercial banking system has $40,000 of outstanding checkable deposits and actual reserves of $4,500. If the reserve ratio is 10 percent, the banking system can expand the supply of money by the maximum amount of
Answer: $50000
Explanation:
Based on the information that's been given in the question, firstly we need to calculate the excess reserves which will be:
= $4500 - (10% × $40000)
= $4500 - $4000
= $500
Then, the money supply that's expanded will be:
= Excess reserve / Reserve ratio
= $5000 / 10%
= $5000 / 0.1
= $50000
Therefore, the answer is $50,000.
A company enters a futures contract to sell 50,000 units of a commodity for 70 cents per unit. The initial margin is $4,000 and the maintenance margin is $3,000. What change in the futures price (per unit) would lead to a margin call?
Answer:
72 cents
Explanation:
There is going to be a margin call when greater than 1000 dollars has been lost from the margin. Then the balance in the account is going to be smaller than that of the maintenance margin. so 1 cent increase in the price would bring about a lossof
0.01 * 50000
= $500
if the increase in the future price is about 2 cents then there would be a margin call.
70+2 = 72cents, this is when there would be a margin call
Rocky Mountain Corporation makes two types of hiking boots—Xactive and Pathbreaker. Data concerning these two product lines appear below: Xactive Pathbreaker Direct materials per unit $ 64.00 $ 50.20 Direct labor cost per unit $ 17.40 $ 12.20 Direct labor-hours per unit 1.4 DLHs 1 DLHs Estimated annual production and sales 17,000 units 67,000 units The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead $1,743,360 Estimated total direct labor-hours 90,800 DLHs
Requried:
a. Compute the predetermined overhead rate based on direct labor-hours.
b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product.
Answer:
1a. Predetermined overhead rate = Estimated total manufacturing overhead / Estimated total direct labor-hours
Predetermined overhead rate = $1,743,360 / 90,800 DLHs
Predetermined overhead rate = $19.20 per DLH
1b. Computation of Unit Product Cost
Xactive Pathbreaker
Direct material $64.00 $50.20
Direct Labor $17.40 $12.20
Manufacturing overhead ((1.4, 1)*$19.20) $26.88 $19.20
Unit product cost $108.28 $81.60
New lithographic equipment, acquired at a cost of $800,000 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $90,000. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, the equipment was sold for $135,000. Required: 1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double declining- balance method. 2. On January 1, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. 3. On January 1, journalize the entry to record the sale, assuming that the equipment was sold for $88,750 instead of $135,000. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Alternative Depreciation Methods
(a) the straight-line method calculations:
Annual depreciation expense for each of the five years of use = $142,000 ($710,000/5)
(b) the double declining- balance method calculations:
Depreciation rate = 100%/5 * 2 = 40%
1st year Depreciation = $320,000 ($800,000 * 40%)
2nd year Depreciation = $192,000 ($480,000 * 40%)
3rd year Depreciation = $115,200 ($288,000 * 40%)
4th year Depreciation = $69,120 ($172,800 * 40%)
5th year Depreciation = $13,680 ($103,680 - $90,000)
2. Journal Entries (double-declining-balance method):
Debit Sale of Equipment $800,000
Credit Equipment $800,000
To transfer the equipment to Sale of Equipment account.
Debit Accumulated Depreciation $696,320
Credit Sale of Equipment $696,320
To transfer the accumulated depreciation to Sale of Equipment account.
Debit Cash $135,000
Credit Sale of Equipment $135,000
To record the proceeds from the sale of the equipment.
3. Journal Entries (double-declining-balance method):
Debit Sale of Equipment $800,000
Credit Equipment $800,000
To transfer the equipment to Sale of Equipment account.
Debit Accumulated Depreciation $696,320
Credit Sale of Equipment $696,320
To transfer the accumulated depreciation to Sale of Equipment account.
Debit Cash $88,750
Credit Sale of Equipment $88,750
To record the proceeds from the sale of the equipment.
Explanation:
a) Data and Calculations:
Cost of the new lithographic equipment = $800,000
Estimated useful life = 5 years
Estimated residual value = $90,000
Depreciable amount = $710,000 ($800,000 - $90,000)
Sales proceeds in the first week of the fifth year = $135,000
Maxwell Washington's weekly gross earnings for the week ending March 9 were $2,620, and her federal income tax withholding was $550.20. Assuming the social security tax rate is 6% and Medicare tax is 1.5% of all earnings, what is Washington's net pay?
Answer:
1 million
Explanation:
Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $5 per unit. Minor currently produces and sells 7,500 units at $6.00 each. This level represents 75% of its capacity. Production costs for these units are $4.50 per unit, which includes $3.00 variable cost and $1.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,000 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. Should the company accept the special order?
A. No, because additional production would exceed capacity.
B. No, because incremental costs exceed incremental revenue.
C. No because incrementa conse o Yes, because incremental revenue exceeds incremental costs.
D. Yes, because incremental costs exceed incremental revenues.
E. No, because the incremental revenue is too low.
Answer:
D. Yes, because incremental costs exceed incremental revenues.
Explanation:
Given that
The Selling price of the order is $5
The Variable cost of manufacturing is $3
The Contribution per unit is $2
The Number of units is 1500
now
Total contribution
= 1500 × $2
= $3,000
Less: Machine costs ($1000)
Tota incremental revenue $2,000
As the incremental revenue is positive and exceeds the incremental cost so the special order can be accepted
