Answer:
Bombay
the company has a charged net income for a year and an earthquake
PepsiCo, Inc. (PEP), the parent company of Frito-LayTM snack foods and Pepsi beverages, had the following current assets and current liabilities at the end of two recent years: Year 2 (in millions) Year 1 (in millions) Cash and cash equivalents $ 9,096 $ 6,134 Short-term investments, at cost 2,913 2,592 Accounts and notes receivable, net 6,437 6,651 Inventories 2,720 3,143 Prepaid expenses and other current assets 1,865 2,143 Short-term obligations (liabilities) 4,071 5,076 Accounts payable and other current liabilities 13,507 13,016 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.
Answer:
Current ratio
Year 1 = 1.3
Year 2 = 1.1
Quick ratio
Year 1 = 1.0
Year 2 = 0.8
Explanation:
Current ratio is the ration of a company's current assets to the current liabilities while the quick ratio is similar to the current asset except that the prepaid expenses and inventories are excluded from the determination of the assets.
Current assets
Year 1 = 9,096 + 2,913 + 6,437 + 2,720 + 1,865
= $ 23,031.00
Year 2 = 6,134 + 2,592 + 6,651 + 3,143 + 2,143
= $ 20,663.00
Current Liabilities
Year 1 = 4,071 + 13,507
= $ 17,578.00
Year 2 = 5,076 + 13,016
= $ 18,092.00
Current ratio
Year 1 = $ 23,031.00/$ 17,578.00
= 1.3 ( to 1 decimal place)
Year 2 = $ 20,663.00/$ 18,092.00
= 1.1 to 1 decimal place
Quick ratio
Year 1
= (23,031.00 - 2,720 - 1,865)/ 17,578.00
= 1.0 to 1 decimal place
Year 2
= (20,663.00 - 3,143 - 2,143)
= 0.8 to 1 decimal place
Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year 20x1. Five units of raw material are required to produce each unit of finished product. January 1 December 31 Raw material 42,000 49,000 Work in process 19,000 19,000 Finished goods 92,000 75,000 Required: 1. If Bodin Company plans to sell 476,000 units during the year, compute the number of units the firm would have to manufacture during the year. 2. If 508,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be purchased.
Answer and Explanation:
The computation is shown below:
1. The number of units to be manufactured during the year is
= Selling units + ending finished goods - opening finished goods
= 476,000 units + 75,000 units - 92,000 units
= 459,000 units
2. The raw material purchased amount is
= (508,000 × 5) + 49,000 - 42,000
= $2,547,000
The same would be relevant
Your losses from a stolen ATM card are unlimited if you fail to report unauthorized use within 30 days after your statement is mailed to you.
a. True
b. False
A researcher was interested in the relationship between the number of texts sent in a day and the number of e-mails sent in a day by employees at a certain company. Using 15 data values, a 90 percent confidence interval for the slope of a regression model was found to be (2.31, 3.47). The researcher claims that the interval would have been narrower with a different sample size if all other things remained the same. Which of the following sample sizes would make the researcher's claim NOT true?
A. 14
B. 16
C. 20
D. 30
E. 100
Answer:
A. 14
Explanation:
the researcher claims that the width of the interval would have been smaller if the sample had been different, and in this case different refers to larger. The original sample included only 15 people, so in order to increase the data sample, you must include more than 15 people. That is why 14 doesn't make sense.
Fraud Investigators Inc. operates a fraud detection service. On March 31, 10 customers were billed for detection services totaling $21,000. On October 31, a customer balance of $1,300 from a prior year was determined to be uncollectible and was written off. On December 15, a customer paid an old balance of $760, which had been written off in a prior year. On December 31, $460 of bad debts were estimated and recorded for the year.
Required:
1. Prepare journal entries for each transaction above. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
a) Record the service revenue of $34,000 billed on account.
Transaction General Journal Debit Credit
a
B) Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,950..
Transaction General Debit Credit
C1.Record the reversal of the write-off of a $810 customer account.
C2. Record the receiptof cash of $810 from the customer.
D. Record the estimate bad debts of $590 for the year.
2. Complete the following table, indicating the amount and effect (+ for increase, − for decrease, and NE for no effect) of each transaction. Ignore income taxes.
Transaction Net Receivable Net Sales Income From Operation
A
B
C
D
Option for A : NE, +/- 34,000, +34,000, -34,000
Option for B : NE, +/- 1950, +1950, -1950
Option for C: NE, +/- 810, +810, -810
Option for D : NE, +/- 590, +590, -590
Answer:
Fraud Investigators Inc.
1. Journal Entries:
March 31: Debit Accounts Receivable $21,000
Credit Service Revenue $21,000
To record the rendering of service on account.
Oct. 31: Debit Allowance for Uncollectible Accounts $1,300
Credit Accounts Receivable $1,300
To write-off uncollectible accounts.
Dec. 15: Debit Accounts Receivable $760
Credit Allowance for Uncollectible Accounts $760
To reverse a previously written-off account.
Dec. 15: Debit Cash $760
Credit Accounts Receivable $760
To record the cash collected from the customer.
Dec. 31: Debit Bad Debts Expense $460
Credit Allowance for Uncollectible Accounts $460
To record bad debts expense for the year.
A) Debit Accounts Receivable $34,000
Credit Service Revenue $34,000
To record the rendering of service on account.
B) Debit Allowance for Uncollectible Accounts $1,950
Credit Accounts Receivable $1,950
To write off uncollectible accounts.
C1) Debit Accounts Receivable $810
Credit Allowance for Uncollectible Accounts $810
To reverse a previously written-off debt.
C2) Debit Cash $810
Credit Accounts Receivable $810
To record the receipt of cash from the customer.
D) Debit Bad Debts Expense $590
Credit Allowance for Uncollectible Accounts $590
To record bad debts expense for the year.
2. Transaction Net Receivable Net Sales Income From Operation
A +34,000 +34,000 +34,000
B -1,950 NE -1950
C +/- 810 NE +810
D NE NE -590
Explanation:
a) Data and Analysis:
March 31: Accounts Receivable $21,000 Service Revenue $21,000
Oct. 31: Allowance for Uncollectible Accounts $1,300 Accounts Receivable $1,300
Dec. 15: Accounts Receivable $760 Allowance for Uncollectible Accounts $760
Dec. 15: Cash $760 Accounts Receivable $760
Dec. 31: Bad Debts Expense $460 Allowance for Uncollectible Accounts $460
A) Accounts Receivable $34,000 Service Revenue $34,000
B) Allowance for Uncollectible Accounts $1,950 Accounts Receivable $1,950
C1) Accounts Receivable $810 Allowance for Uncollectible Accounts $810
C2) Cash $810 Accounts Receivable $810
D) Bad Debts Expense $590 Allowance for Uncollectible Accounts $590
Consider the following statements when answering this question I. Increases in the demand for a good, which is produced by a competitive industry, will raise the short-run market price. II. Increases in the demand for a good, which is produced by a competitive industry, will raise the long-run market price. I is true, and II is false. I and II are true. I is false, and II is true. I and II are false.
Answer:
I and II are true
Explanation:
I. Increases in the demand for a good, which is produced by a competitive industry, will raise the short-run market price
In the short run of the competitive industry when the market demand for goods rises then the price of these goods will also increase. This is because the price equals marginal revenue. Therefore, when price rises then marginal revenue will increase and as a result, the marginal cost curve moves up and firms produce more quantity of goods. This statement is therefore true.
II. Increases in the demand for a good, which is produced by a competitive industry, will raise the long-run market price
The effect of the increase in goods demand is the same in the long run of the competitive industry as it is in the short run. Therefore, a rise in demand would raise the price of the goods above ATC (Average Total Cost). Hence, the above statement is also true.
Russell Retail Group begins the year with inventory of $65,000 and ends the year with inventory of $55,000. During the year, the company has four purchases for the following amounts. Purchase on February 17 $ 220,000 Purchase on May 6 140,000 Purchase on September 8 170,000 Purchase on December 4 420,000 Required: Calculate cost of goods sold for the year.
Answer:
COGS= $960,000
Explanation:
Giving the following information:
Beginning inventroy= $65,000
Ending inventory= $55,000
Total Purchase= 220,000 + 140,000 + 170,000+ 420,000= $950,000
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning inventory + cost of goods purchased - ending inventory
COGS= 65,000 + 950,000 - 55,000
COGS= $960,000
The manager of the Quick Stop Corner convenience store (which is open 360 days per year) sells four cases of Stein soda each day (1440 cases per year). Order costs are $8.00 per order. The lead time for an order is three days. Annual holding costs are equal to $57.60 per case. If the manager orders 16 cases each time she places an order, how many orders would she place in a year
Answer:
90 orders she would place in a year
Explanation:
The total annual cases of Stein soda that the manager buys are 1,440 cases. If she were to place 16 cases in a single order then we would divide the total cases bought in a year by the cases bought in a single order to determine the number of orders the manager would place in a year. As shown below:
No. of orders placed in a year = Annual Total Cases bought / Cases purchased in single order
No. of orders placed in a year = 1,440 / 16
No. of orders placed in a year = 90 orders
Kampus Corporation had the following eight investment transactions or events:
Jan 1 Purchased Argon Co. bonds for $10,000 cash. (Purchase is considered a short-term investment in available-for-sale (AFS) debt securities.)
Jan 3 Purchased 1,200 shares of Elmer, Inc. for $36,000 cash. (Purchase is considered a long-term stock investment with insignificant influence.)
Mar 31 Received cash dividend of $0.25 per share from Elmer, Inc.
Jun 1 Purchased 5,000 shares of Logan, Inc. for $60 per share. These shares represent a 40% ownership in Logan, Inc.
Sep 30 Received cash dividend of $2 per share from Logan, Inc.
Dec 31 Logan, Inc. reported net income of $150,000 for the year.
Dec 31 As of December 31, the Argon Co. bond had a fair (market) value of $12,000.
Dec 31 As of December 31, the Elmer, Inc. stock had a fair (market) value of $25 per share.
Required:
Prepare the journal entries Kampus Corporation should record for these transactions and events.
Answer:
Kampus Corporation
Journal Entries:
Jan 1 Debit Bonds Receivable (Argon Co.) $10,000
Credit Cash $10,000
To record a short-term investment in available-for-sale (AFS) debt securities.)
Jan 3 Debit Investments (Long-term) in Elmer, Inc. $36,000
Credit Cash $36,000
To record the long-term investment (1,200 shares of Elmer, Inc. at $30 each.)
Mar 31 Debit Cash $300
Credit Dividend Received $300
To record dividend received from Elmer's investment
($0.25 per share of 1,200 shares).
Jun 1 Debit Investment in Logan, Inc. $300,000
Credit Cash $300,000
To record the investment in 5,000 shares of $60 per share, representing a 40% equity ownership.
Sep 30 Debit Cash $10,000
Credit Investment in Logan, Inc. $10,000
To record dividend received from investment in Logan, Inc. ($2 per share of 5,000 shares).
Dec 31 Debit Investment in Logan, Inc. $60,000
Credit Retained Earnings $60,000
To record 40% share of the Net income of $150,000 in Logan, Inc.
Dec 31 No Journal Required: Argon Co. bond had a fair (market) value of $12,000.
Dec 31 Debit Unrealized Loss from Investment in Elmer, Inc. $6,000
Credit Investment in Elmer, Inc. $6,000
To record $5 lost in the (market) value of $25 per share.
Explanation:
a) Data and Analysis:
Jan 1 Bonds Receivable (Argon Co.) $10,000 Cash $10,000
a short-term investment in available-for-sale (AFS) debt securities.)
Jan 3 Investments (Long-term) in Elmer, Inc. $36,000 Cash $36,000 1,200 shares of Elmer, Inc. at $30 each.
Mar 31 Cash $300 Dividend Received $300
$0.25 per share of 1,200 shares.
Jun 1 Investment in Logan, Inc. $300,000 Cash $300,000
5,000 shares of $60 per share, represent a 40% ownership.
Sep 30 Cash $10,000 Dividend Received $10,000
$2 per share of 5,000 shares.
Dec 31 Investment in Logan, Inc. $60,000 Retained Earnings $60,000
40% share of the Net income of $150,000 in Logan, Inc.
Dec 31 No Journal Required: Argon Co. bond had a fair (market) value of $12,000.
Dec 31 Unrealized Loss from Investment in Elmer, Inc. $6,000 Investment in Elmer, Inc. $6,000 (market) value of $25 per share.
You have been given the following information about the production of Usher Co., and are asked to provide the plant manager with information for a meeting with the vice president of operations.
Standard Cost Card
Direct materials (5 pounds at $5 per pound) $25.00
Direct labor (0.90 hours at $10) 9.00
Variable overhead (0.90 hours at $4 per hour) 3.60
Fixed overhead (0.90 hours at $9 per hour) 8.10
$45.70
The following is a variance report for the most recent period of operations.
Variances
Costs Total Standard Cost Price Quantity
Direct materials $405,000 $8,298 F $9,900 U
Direct labor 145,800 4,590 U 7,200 U
(a) How many units were produced during the period? (Round answers to 0 decimal places, e.g. 125.)
Number of units
You have been given the following information abou
(b) How many pounds of raw material were purchased and used during the period? (Round answers to 0 decimal places, e.g. 125.)
Raw material
You have been given the following information abou
pounds
(c) What was the actual cost per pound of raw materials? (Round to 2 decimal places, e.g. 1.25.)
Answer:
Usher Co.
a. The units produced during the period is:
= 16,200 units
b. The pounds of raw materials purchased and used during the period is:
= 82,980 pounds
c. The actual cost per pound of raw materials is:
= $4.90
Explanation:
a) Data and Calculations:
Standard Cost Card
Direct materials (5 pounds at $5 per pound) $25.00
Direct labor (0.90 hours at $10) 9.00
Variable overhead (0.90 hours at $4 per hour) 3.60
Fixed overhead (0.90 hours at $9 per hour) 8.10
$45.70
Variances
Costs Total Standard Cost Price Quantity
Direct materials $405,000 $8,298 F $9,900 U
Direct labor 145,800 4,590 U 7,200 U
Units produced = Total standard cost/direct materials standard cost per unit
= $405,000/$25
= 16,200 units
Pounds of raw materials purchased and used = (Total standard cost + Unfavorable Quantity Variance)/direct materials standard cost per pound
= ($405,000 + $9,900)/$5
= 82,980 pounds
Actual costs:
Direct materials = $406,602 ($405,000 - $8,298 + $9,900)
Actual price per pound = $4.90 ($406,602/82,980)
Direct labor = $157,590 ($145,800 + 4,590 + 7,200)
Actual price per pound = ((Actual Quantity * Standard Price) - Favorable Price Variance)/Actual Quantity
= ((82,980 * $5) - $8,298)/82,980
= ($414,900 - $8,298)/82,980
= $406,602/82,980
= $4.90
A. The units produced during the period are 16200 (rounded off to nearest zero).
B. 82980 pounds of raw material was being required during the period.
C. The actual cost of raw materials come out of $4.90/pound
We know that formula to find units produced is,[tex]\rm units\ produced=\dfrac{\rm{total standard cost}}{\rm{direct materials}}\\\\units \ produced = \dfrac{405000}{25}\\\\\rm units\ produced = 16200[/tex]
So, 16200 units were produced.
Raw material purchased and used can be obtained by the following formula,[tex]\rm raw\ material\ used = \dfrac{\rm{total\ standard\ cost+\ unfavourable \ quantity\ variance}}{\rm{direct\ material \ standard\ cost\ per \pound}} \\\\ =\dfrac{4149000}{5}\\\\=829800[/tex]
So, 829800 pounds of raw material was consumed during the period.
The actual cost of raw material per pound can be calculated by simply dividing direct materials with pounds purchased and used which comes out to $4.90.Hence, the answers are calculated as
Actual cost per pound = $4.90
Raw material consumed and purchased = 829800 pounds
Units produced = 16200 units
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University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period:
Maintenance Personnel Printing Developing
Machine-hours — 1,800 1,800 5,400
Labor-hours 650 — 650 2,600
Department direct costs $4,000 $14,000 $15,900 $12,600
Required:
Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)
Maintenance Personnel Printing Developing
service dept. costs
maintenance allocation
personnel allocation
total cost allocation
Answer:
Maintenance $0
Personnel $0
Printing $19,700
Developing $26,800
Explanation:
Calculation to allocate these service department costs to the operating departments Using the direct method
Particulars Allocation Basis Maintenance Personnel Printing Developing
Cost as per primary data
$4,000 $14,000 $15,900 $12,600
SERVICE DEPARTMENT COSTS:
Maintenance allocation (S)
$0 $0 $1,000 $3,000
Personnel allocation (S)
$0 $0 $2,800 $11,200
Total Costs Allocated
$0 $0 $19,700 $26,800
Computation for the allocation of costs:
Maintenance = $4,000 *1,800/(1,800+5,400)
Maintenance = $4,000 *1,800/7,200
Maintenance =$1,000
Personnel = $14,000 *650/650+2,600
Personnel=$14,000 *650/3,250
Personnel=$2,800
Maintenance = $4,000 *5,400/(1,800+5,400)
Maintenance = $4,000 *5,400/7,200
Maintenance = $3,000
Personnel = $14,000 *2,600/650+2,600
Personnel = $14,000 *2,600/3,250
Personnel = $11,200
Therefore allocation of these service department costs to the operating departments Using the direct method will be :
Maintenance $0
Personnel $0
Printing $19,700
Developing $26,800
You are given the following information on Parrothead Enterprises:
Debt: 9,300 6.5 percent coupon bonds outstanding, with 22 years to maturity and a quoted price of 104.75. These bonds pay interest semiannually and have a par value of $1,000.
Common stock: 240,000 shares of common stock selling for $64.80 per share. The stock has a beta of.93 and will pay a dividend of $3.00 next year. The dividend is expected to grow by 5.3 percent per year indefinitely.
Preferred stock: 8,300 shares of 4.65 percent preferred stock selling at $94.30 per share. The par value is $100 per share.
Market: 11.7 percent expected return, risk-free rate of 3.75 percent, and a 23 percent tax rate.
Calculate the company's WACC. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC %
Answer:
8.19%
Explanation:
Calculation to determine the company's WACC
First step is to calculate the CAPM rate of equity
Using this formula
CAPM rate of equity = Risk free rate + market risk premium * beta
Let plug in the formula
CAPM rate of equity=3.75%+(11.7%-3.75%)*0.93
CAPM rate of equity=11.14%
Second step is to calculate the DDM rate of equity
Using this formula
DDM rate of equity= Expected dividend next year/Price today + Growth rate
Let plug in the formula
DDM rate of equity=3/64.8+5.3%
DDM rate of equity=9.93%
Third step is to calculate the Cost of equity using this formula
Cost of equity = Average of CAPM and DDM
Let plug in the formula
Cost of equity=(11.14%+9.93%)/2
Cost of equity= 10.54%
Fourth Step is to calculate the Cost of debt (after tax)
Cost of debt (after tax) using financial calculator to compute YTM
PV -1047.5
FV 1000
PMT 1000*6.5%/2 32.5
N 22*2 44
Compute I 3.05%
YTM =3.05%*2 6.10%
Tax rate = 23%
Hence,
Rate of debt (after tax) = 6.1%*(1-23%)
Rate of debt (after tax) = 4.70%
Fifth step is to calculate the Rate of preferred stock using this formula
Rate of preferred stock = Annual dividend/Current price
Let plug in the formula
Rate of preferred stock=4.65/94.3
Rate of preferred stock=4.93
Sixth step is to calculate the Weight
Market value
Source
equity 240000*64.8= 15552000
debt 1047.5*9300= 9741750
preferred stock 8300*94.3=782690
Total 26076440
equity 15552000/26076440= 59.64%
debt 9741750/26076440=37.36%
preferred stock 782690/ 26076440=3.00%
Now let calculate compute WACC
WACC= weight * cost
equity 59.64%*10.54%=6.28%
debt 37.36%* 4.70% =1.76%
preferred stock3.00%*4.93%=0.15%
WACC = 8.19%
(6.28%+1.76%+0.15%)
Therefore the company's WACC is 8.19%
Bismark Inc, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year:
Activity Cost Pool Activity Cost Activity Cost Driver
Machine Setup $600,000 15,000 setup hours
Material handling 90,000 3,000 tons of materials
Machine operation 420,000 12,000 machine hours
The following data are for the production of single batches of two products, Camshafts and Swing Drives during the month of August:
Camshafts Swing Drives
Units produced 1,500 900
Machine hours 4 5
Direct labor hours 300 500
Direct labor cost $7,000 $12,000
Direct materials cost $40,000 $30,000
Tons of materials 10 7
Setup hours 5 8
Determine the unit costs of Camshafts and Swing Drives using ABC. Round answers to the nearest cent.
Camshafts $ _____
Swing Drives $_____
Answer:
Results are below.
Explanation:
First, we need to calculate the activities rates:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine Setup= 600,000 / 15,000= $40 per setup hour
Material handling= 90,000 / 3,000= $30 per ton of material
Machine operation= 420,000 / 12,000= $35 per machine hour
Now, we can allocate costs to each product:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Camshafts:
Machine Setup= 40*5= $200
Material handling= 30*10= $300
Machine operation= 35*4= $140
Total allocated costs= $640
Swing Drives:
Machine Setup= 40*8= $320
Material handling= 30*7= $210
Machine operation= 35*5= $175
Total allocated costs= $705
Finally, the unitary cost:
Camshafts:
Total cost= 40,000 + 7,000 + 640= $47,640
Unitary cost= 47,640 / 1,500= $31.76
Swing Drives:
Total cost= 30,000 + 12,000 + 705= $42,705
Unitary cost= 42,705 / 900= $47.45
• The Vice President of Customer Service has expressed concern over a project in which you are involved. His specific concern is with the staff you have identified to work on a project to migrate the corporate website from the data center to the cloud. The project sponsor insists that you need to cut down on your project staff. You are the project manager. What resources do you think are really necessary for this project? How would you respond to the project sponsor to defend your staffing plan?
Answer: A. The VP of customer service is correct. Since the cost was not taken into account at the beginning of the project, the project should not go forward as planned. Project initiation should be revisited to examine the project plan and determine how changes can be made to accommodate customer service. B.
Explanation:
If an adjusting entry is not made for an accrued expense,
a. expenses will be overstated,
b. liabilities will be understated.
c. net income will be understated.
d. equity will be understated.
Answer:
c. net income will be understated.
Advanced Enterprises reports year−end information from 2019 as follows: Sales (160,250 units) $969,000 Cost of goods sold (641,000) Gross margin 328,000 Operating expenses (268,000) Operating income $60,000 Advanced is developing the 2020 budget. In 2020 the company would like to increase selling prices by 13.5%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. What is budgeted cost of goods sold
Answer:
Cost of goods sold = $576,900
Explanation:
The budgeted cost of goods sold will be the sales volume in 2020 multiplied by cost per unit .
Sales volume in year 2020= (100-10)% × sales figure for 2019
= 90% × 160,250= 144,225
Cost of goods sold per unit = cost of goods sold in 2019/Sales units in 2019
= 641,000/160250=$4
Cost of goods sold = $4× 144,225 = $576,900
Cost of goods sold = $576,900
True or false? Content marketing is a relatively new practice that became popular in the 1950’s with the boom of advertising firms.
Answer:
true
Explanation:
Vaughn, Inc. had net sales in 2020 of $1,410,300. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $348,200 debit, and Allowance for Doubtful Accounts $2,940 credit. If Vaughn estimates that 10% of its receivables will prove to be uncollectible. Prepare the December 31, 2020, journal entry to record bad debt expense.
Answer:
Date Account Title Debit Credit
Dec. 31 2020 Bad Debt expense $31,880
Allowance for Doubtful Accounts $31,880
Explanation:
Bad debt expense for the period:
= (Estimate of uncollectible receivables) - Allowance for Doubtful accounts credit balance
= (348,200 * 10%) - 2,940
= $31,880
A firm is operating in the United States with only two other competitors in the industry. a. It is likely this industry would be characterized as: multiple choice 1 monopolistically competitive. perfectly competitive. oligopoly. pure monopoly. b. Firms in this industry will likely earn: multiple choice 2 a normal profit. an economic profit. an economic loss. c. If foreign firms begin supplying the product, increasing the number of competitors, it is likely that: multiple choice 3 economic profits will fall.
Answer:
a. oligopoly.
b. an economic profit.
c. economic profits will fall.
Explanation:
An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.
Hence, it is a market structure that is distinguished by several characteristics, one of which is either similar or identical products and dominance by few firms.
The characteristics of an oligopolistic market structure are;
I. Mutual interdependence between the firms.
II. Market control by many small firms.
III. Difficult entry to new firms.
Hence, a firm operating in the United States of America with only two other competitors in the industry is likely to be an industry that would be characterized as oligopoly.
Additionally, business firms operating in this industry (oligopolistic market) will likely earn an economic profit. Also, if foreign business firms begin supplying the product, increasing the number of competitors, it is likely that economic profits will fall because the industry is now being competitive and controlled by other business firms.
In economics, market structure refers to how different industries are distinguished depending on the degree and form of product and services rivalry. It's based on the features that influence the outcomes and behaviors of businesses in a given market.
a) An oligopoly is a business that operates in the United States with only two other competitors in the same industry.
Reason:
An oligopoly is a market structure with a small number of enterprises and high entry barriers. A competitive environment in which there are just a few vendors reveals to be Oligopoly because there are only two competitors available in the business.
b) Oligopolistic businesses will almost certainly make an economic profit.
Reason:
In an oligopoly, all firms would have to work together to raise prices and make a bigger profit. The bulk of oligopolies form in industries where goods are essentially homogeneous and give essentially the same advantage to customers.
c) Economic earnings are expected to diminish or fall if international enterprises begin to supply the product, increasing the number of competitors.
Reason:
As the supply curve changes to the right, the market price begins to fall, and as a result, existing and new enterprises' economic earnings fall. Due to the entry of new enterprises, which pulls down the market price, economic profit is zero in the long term.
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Explain the effects of low price-guarantee on the price.
Answer:
Low price guarantees have adverse effects on consumer behavior. These strategies can cause consumers to become suspicious of the offer and may avoid making the purchase all together.
Low price guarantee is a policy where the seller offer a price is guaranteed to match or beat any other lower price in the market.
Usually, the low price guarantees does persuade the consumers to make purchase, but, it can also have adverse effects on consumer behavior at times.
The strategy of low price-guarantee on the price of the product can cause the consumers to become suspicious and thus, may lead to a decision to avoid making the purchase.
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The ___ function returns the year portion of the data/time available
Answer:
The Excel YEAR function returns the year component of a date as a 4-digit number.
Explanation:
Reuse of large amounts of copyrighted film in a documentary would not constitute a copyright infringement.
a) True
b)False
Answer:
B. False
Explanation:
I majored in Business
Pina Company has the following two temporary differences between its income tax expense and income taxes payable.
2020 2021 2022
Pretax financial income $864,000 $917,000 $909,000
Excess depreciation expense on tax return (30,400) (38,500) (9,800 )
Excess warranty expense in financial income 19,400 10,100 8,300
Taxable income $853,000 $888,600 $907,500
The income tax rate for all years is 20%.
a. Assuming there were no temporary differences prior to 2017, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019.
b. Indicate how deferred taxes will be reported on the 2019 balance sheet. Martinezâs product warranty is for 12 months.
c. Prepare the income tax expense section of the income statement for 2019, beginning with the line "Pretax financial income."
Answer:
multiply ur answer by 0.2 if you want to solve for the income tax rate
Explanation:
Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of berries each day, and Jim can either catch 8 fish or gather 24 pounds of berries each day. Both of them work 200 days per year. At current world prices 1 fish trades for 3.5 pounds of berries. Who has the comparative advantage in producing berries
Answer:
SHEILA
Explanation:
A person has comparative advantage in production if it produces at a lower opportunity cost when compared to other people.
Sheila's opportunity cost in producing berries = 10/40 = 0.25
Jim's opportunity cost in producing berries = 8/24 = 0.33
Sheila has a lower opportunity cost in the production of berries and thus has a comparative advantage in the production of berries
Income Statement; Net Loss The following revenue and expense account balances were taken from the ledger of Acorn Health Services Co. after the accounts had been adjusted on January 31, 20Y7, the end of the fiscal year: Depreciation Expense $16,900 Insurance Expense 8,280 Miscellaneous Expense 6,590 Rent Expense 68,300 Service Revenue 324,500 Supplies Expense 4,060 Utilities Expense 26,030 Wages Expense 255,200 Prepare an income statement. Acorn Health Services Co. Income Statement For the Year Ended January 31, 20Y7
Answer:
See below
Explanation:
Acorn Health Services Co.
Income statement for the year ended, January 31st
Service revenue $234,500
Expenses:
Depreciation expense
$16,900
Insurance expense
$8,280
Miscellaneous expense
$6,590
Rent expense
$68,300
Supplies expense
$4,060
Utilities expense
$26,030
Wages expense
$255,200
Total expense ($385,360)
Net income (loss) $150,860
Assume the following information for Splish Brothers Corp.
Accounts receivable (beginning balance) $143,000
Allowance for doubtful accounts (beginning balance) 11,470
Net credit sales 950,000
Collections 902,000
Write-offs of accounts receivable 5,500
Collections of accounts previously written off 2,300
Uncollectible accounts are expected to be 9% of the ending balance in accounts receivable.
1. Prepare the entry to record the write-off of uncollectible accounts during the period.
2. Prepare the entries to record the recovery of the uncollectible account during the period.
3. Prepare the entry to record bad debt expense for the period.
Prepare summary journal entries to record the following transactions and events a through g for a company in its first month of operations.
a. Raw materials purchased on account, $92,000.
b. Direct materials used in production, $40,000. Indirect materials used in production, $25,000.
c. Paid cash for factory payroll, $65,000. Of this total, $45,000 is for direct labor and $20,000 is for indirect labor.
d. Paid cash for other actual overhead costs, $7,750.
e. Applied overhead at the rate of 120% of direct labor cost.
f. Transferred cost of jobs completed to finished goods, $69,000.
g. Jobs that had a cost of $69,000 were sold.
h. Sold jobs on account for $98,000.
Answer:
Journal Entries:
a. Debit Raw materials $92,000
Credit Accounts payable $92,000
To record the purchase of raw materials on account.
b. Debit Work-in-Process $40,000
Debit Manufacturing overhead $25,000
Credit Raw materials $65,000
To record direct and indirect materials.
c. Debit Payroll Expense $65,000
Credit Cash $65,000
To record the payment of payroll.
Debit Work-in-Process $45,000 (direct labor)
Debit Manufacturing overhead $20,000 (indirect labor)
Credit Payroll Expenses $65,000
To record the payment of direct and indirect labor.
d. Debit Manufacturing overhead $7,750
Credit Cash $7,750
To record the payment for other overhead costs.
e. Debit Work-in-Process $54,000
Credit Manufacturing overhead $54,000
To record overhead applied at the rate of 120% of direct labor cost.
f. Debit Finished goods $69,000
Credit Work-in-Process $69,000
To record the transfer of completed jobs to finished goods inventory.
g. Debit Cost of goods sold $69,000
Credit Finished goods $69,000
To record the cost of goods sold.
h. Debit Accounts receivable $98,000
Credit Sales revenue $98,000
To record the sale of goods on account.
Explanation:
a. Raw materials $92,000 Accounts payable $92,000
b. Work-in-Process $40,000 Manufacturing overhead $25,000 Raw materials $65,000
c. Payroll Expense $65,000 Cash $65,000 Work-in-Process $45,000 (direct labor) Manufacturing overhead $20,000 (indirect labor) Payroll Expenses $65,000
d. Manufacturing overhead $7,750 Cash $7,750
e. Work-in-Process $54,000 Manufacturing overhead $54,000 (at the rate of 120% of direct labor cost)
f. Finished goods $69,000 Work-in-Process $69,000
g. Cost of goods sold $69,000 Finished goods $69,000
h. Accounts receivable $98,000 Sales revenue $98,000
The Tradition Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.4 percent per period. Based on the following information, what is the break-even price per unit that should be charged under the new credit policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Current Policy New Policy ?
Price per unit $ 93 ?
Cost per unit $ 44 $ 44
Unit sales per month 2,675 2,750
X Answer is complete but not entirely correct.
Break-even price $ 92.87 x
Answer: $93.86
Explanation:
The break even price simply refers to the price that's required to make a normal profit. From the information given, the break even price will be:
= [($93-$44) × 2675)/2750) + 44] × ( 1 + 2.3%)
= [$49 × 2675)/2750)+44] × (1+0.024)
= [(49 × 2675)/2750)+44] × 1.024
= [(131075/2750) + 44] × 1.024
= (47.66 + 44) × 1.024
= 91.66 × 1.024
= $93.86
Therefore, the break even price is $93.86
Let T1 be the time between a car accident and reporting a claim to the insurance company. Let T2 be the time between the report of the claim and payment of the claim. The joint density function of T1 and T2, f(t1, t2), is constant over the region 0 < t1 < 6, 0 < t2 < 6, t1 t2 < 10, and zero otherwise. Determine E[T1 T2], the expected time between a car accident and payment of the claim.
Answer:
5.7255
Explanation:
From the given information:
[tex]T_1 \to \text{time between car accident \& reporting claim} \\ \\ T_2 \to \text{time between reporting claim and payment of claim}[/tex]
The joint density function of [tex]T_1[/tex] and [tex]T_2[/tex] is:
[tex]f(t_1,t_2) = \left \{ {{c \ \ \ 0<t_1<6, \ \ \ 0<t_2<6, \ \ \ t_1+t_2<10} \atop {0} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ otherwise} \right.[/tex]
Area(A): [tex]= 6\times 6 - \dfrac{1}{2}*2*2[/tex]
= 34
The limits are:
[tex]\text{limits of } \ t_1 \ from \ 0 \ is \ 10 \to t_2 \\ \\ \text{limits of } \ t_2 \ from \ 0 \ is \ 4 \to 6[/tex]
Also;
[tex]\text{limits of } \ t_1 \ is \ 0 \to 6 \\ \\ \text{limits of } \ t_2 \ is \ 0 \to 4[/tex]
∴
[tex]\iint f(t_1,t_2) dt_1dt_2 =1 \\ \\ c \iint 1dt_1dt_2 = 1 \\ \\ cA = 1 \\ \\ \implies c = \dfrac{1}{34}[/tex]
To find;
[tex]E(T_1+T_2) = \iint (t_1+t_2)c \ \ dt_1dt_2 \\ \\ \implies \dfrac{1}{34} \Big[\int \limits^4_0 \int \limits^6_0(t_1+t_2) dt_1 \ dt_2 + \int \limits^6_4 \int \limits^{10-t_2}_0(t_1+t_2) dt_1 dt_2 \Big] \\ \\ \implies \dfrac{1}{34} (120 + \dfrac{224}{3}) \\ \\ = \mathbf{5.7255}[/tex]
If you use a check to pay your monthly rent,
A. the check is not money because it is not part of M1.
B. you have used money because the landlord accepted it as a means of payment.
C. the check is considered money because you received something in return.
D. the check becomes money when it arrives at the landlord's bank.
E. the check is not money because it is just an instruction to your bank to make a payment
Answer:
E
Explanation:
Money is an economic unit that is generally accepted as a medium of exchange in the economy
Functions of money
1. Medium of exchange : money can be used to exchange for goods and services. For example, money serves as a medium of exchange when you pay $20 for your favourite jeans
2. Unit of account : money can be used to value goods and services, For example, $20 is the value of your favourite jeans
3. Store of value : money can retain its value over the long term, this it can be used as a store of value
M1 includes the most liquid from of money. It includes currency, demand deposits and checking account.
A check is not a form of money. It can be defined as a note or an instruction to a bank to make a payment. The payment can either be honoured or not be honoured
