Answer:
Fiduciary call.
Explanation:
Foreign exchange market can be defined as type of market in which the currency of one country is converted into that of another country.
For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.
A covered interest arbitrage can be defined as trading strategy in which an investor minimizes his or her currency risk by using a forward contract to hedge against the interest rate difference between two countries i.e the exchange rate risk. Thus, it's considered to be the most common interest rate arbitrage around the world.
Generally, when a protective put is combined with a forward contract it would generate equivalent outcomes at expiration to those of a fiduciary call.
This ultimately implies that, a fiduciary call combines both a call option and a bond that's risk free and matures on the expiry date of an option.
A 3-year bond has an 8.0% coupon rate and a $1,000 face value. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semiannual coupon payments.
Answer:
$738.68
Explanation:
the price of the bond is $738.68.
Texas Curtain Works is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Fabric purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 20 percent of sales and are paid during the month of sale. Other operating costs amounting to 25 percent of sales are to be paid in the month following the month of sales. Sales revenue is forecasted as follows:
Month Sales
February $440,000
March $450,000
April $480,000
May $500,000
June $510,000
What is the amount of fabric purchases during the month of March?
a) $480,000
b) $336,000
c) $288,000
d) $300,000
Answer:
b. $336,000
Explanation:
Here, the Fabric purchases & payments are to be made during the month before the month of sale.
The Amount of fabric purchases during the month of march = 70% of sales of the month of April
Purchases of March = 70% * $480,000
Purchases of March = 0.70 *$480,000
Purchases of March = $336,000
So, the amount of fabric purchases during the month of March is $336,000.
today, many long-term care policies are treated as tax-qualified contracts. Which of the following is not correct regarding tax-qualified long-term care contracts?
A. Tax-qualified long-term care policies must provide benefits that are limited to long-term care services.
B. These policies can be provided under an employer sponsored cafeteria plan.
C. These policies allow employers to provide this benefit, take a curent income tax deduction and allow the employee to avoid income inclusion.
D. The premiums for these policies may be deductible either above the line or below line.
Answer:
C. These policies allow employers to provide this benefit, take a current income tax deduction and allow the employee to avoid income inclusion.
Explanation:
Tax qualified long term care contracts usually insurance policies which provide benefit to the company and policy amounts can be deducted from the tax. These benefits are limited to the long term care services. The premium amount of these policies is deductible which provide tax benefit.
An example of fast tracking a project schedule would be to overlap the design and production phases for a design-to-production project, where the conventional approach would be to move on to construction only after completing the design phase.
a. True
b. False
Answer:
a. True
Explanation:
Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service.
Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.
Furthermore, the main purpose of project management is working toward a common goal.
This ultimately implies that, project managers should ensure adequate attention and time is taken to identify, analyze and manage capital, raw materials, people, system of tasks and other resources, so as to effectively and efficiently achieve a common goal with all project stakeholders.
The fundamentals of Project Management includes;
1. Project initiation
2. Project planning
3. Project execution
4. Monitoring and controlling of the project.
5. Adapting and closure of project.
In the execution of a project, delaying a task normally affects the start or finishing time of the other tasks (successors) in a project.
The amount of time that is permitted for an activity to be delayed without delaying the early start date of any immediately following (succeeding) activities refers to the free slack or having an adverse effect on entire project.
A project schedule can be defined as a plan that comprises of the deliverables, activities and milestones with respect to a project, especially by including the intended start and finish dates.
The time for the implementation or execution of a project can be fast-tracked by a project manager.
For example, you can fast-track a design-to-production project by overlapping the design and production phases; especially by moving on to construction only after completing the design phase.
Question 3 4 Marks Mi Tierra Driving School charges $680 per student to prepare and administer written and driving tests. Variable costs of $408 per student include trainers’ wages, study materials, and gasoline. Annual fixed costs of $63,920 include the training facility and fleet of cars. Requirements 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided: a. Breakeven point with no change in information. b. Decrease sales price to $544 per student. c. Decrease variable costs to $340 per student. d. Decrease fixed costs to $53,040.
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price= $680
Unitary variable cost= $408
Fixed cost= $63,920
To calculate the contribution margin and break-even point in units, we need to use the following formula:
Unitary contribution margin= selling price - unitary variable cost
Break-even point in units= fixed costs/ contribution margin per unit
a:
Unitary contribution margin= 680 - 408= $272
Break-even point in units= 63,920 / 272
Break-even point in units= 235
b:
Unitary contribution margin= 544 - 408= $136
Break-even point in units= 63,920 / 136
Break-even point in units= 470
c:
Unitary contribution margin= 680 - 340= $340
Break-even point in units= 63,920 / 340
Break-even point in units= 188
d:
Unitary contribution margin= 680 - 408= $272
Break-even point in units= 53,040 / 272
Break-even point in units= 195
Consider the following gasoline sales time series data. Click on the datafile logo to reference the data.
Week Sales (1000s of gallons)
1 16
2 20
3 20
4 23
5 18
6 17
8 19
9 23
10 19
11 14
12 21
a. Using a weight of 1/2 for the most recent observation, 1/3 for the second most recent observation, and 1/6 the most recent observation, compute a three-week weighted moving average for the time series (to 2 decimals). Enter negative values as negative numbers.
Week
Time-Series Value Weighted Moving
Average Forecast Forecast
Error
(Error)2
1
2
3
4
5
6
7
8
9
10
11
12
Total
b. Compute the MSE for the weighted moving average in part (a).
MSE =
Do you prefer this weighted moving average to the unweighted moving average? Remember that the MSE for the unweighted moving average is 8.90.
Prefer the unweighted moving average here; it has a (greater/smaller) MSE.
c. Suppose you are allowed to choose any weights as long as they sum to 1. Could you always find a set of weights that would make the MSE at least as small for a weighted moving average than for an unweighted moving average? (Yes/ No)
Answer:
a) attached below
b) MSE for weighted moving average = 14.5
c) Yes
Explanation:
a) Computing a three-week weighted moving average using
1/2 for most recent , 1/3 for second most recent and 1/6 for third most recent observation
Given data :
Week Sales (1000s of gallons)
1 16
2 20
3 20
4 23
5 18
6 17
7 19
8 23
9 19
10 14
11 21
solution attached below
B) Determine MSE for the weighted moving average
MSE = ∑ (error)^2 / 8
= 116.0289 / 8 = 14.50
The MSE for unweighted moving average ( 8.90 ) is smaller than the MSE for weighted moving average
C) Yes I will find a weight that makes at least the MSE for weighted moving average than unweighted moving average
mprudential, Incorporated, has an unfunded pension liability of $750 million that must be paid in 25 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 10.0 percent, what is the present value of this liability
Answer:
PV= $69,221,998.63
Explanation:
Giving the following information:
Future Value= $750,000,000
Number of periods (n)= 25 years
Discount rate (i)= 10%
To calculate the present value, we need to use the following formula:
PV= FV / (1 + i)^n
PV= 750,000,000 / (1.1^25)
PV= $69,221,998.63
At the end of business on September 1, the total displayed on the cash register tape shows $1,059 of cash sales for the day. However, when the clerk and the supervisor count the cash in the register, the count reveals that $1,050 was actually collected from customers.
Complete the journal entry.
Answer:
Date Account Title Debit Credit
Sept. 1 Cash $1,050
Cash short and over $ 9
Sales $1,059
Cash short and over is calculated thus:
= 1,059 - 1,050
= $9.00
Using the Base Case, calculate total depreciation expense for the year 2023E. Assume that depreciation expense on assets pre-2020E is $15,000 per year. Depreciation on capital expenditures made from 2020E-2024E assumes a 4-year useful life and a salvage value equal to 10% of the original cost.
Review Later
a) $19,500
b) $33,000
c) $30,000
d) $20,000
Answer:
b) $33,000
Explanation:
Capital Expenditure = $20,000
Salvage Value in % = 10%
Useful Life = 4 Years
Salvage Value = Salvage Value% * Capital Expenditure
Salvage Value = 10% * 20,000
Salvage Value = $2,000
Annual Depreciation = (Capital Expenditures - Salvage Value) / Useful Life
Annual Depreciation = ($20,000 - $2,000) / 4
Annual Depreciation = $18,000 / 4
Annual Depreciation = $4,500
Depreciation of 2023E = Depreciation Pre 2020E + Depreciation on capital expenditures in 2020E + Depreciation on capital expenditures in 2021E + Additional Depreciation on capital expenditures in 2022E + Additional Depreciation on capital expenditures in 2023E
Depreciation of 2023E = $15,000 + $4,500 + $4,500 + $4,500 + $4,500
Depreciation of 2023E = $33,000
The electronic invoicing and payment (EIPP) system for the B2B environment is similar to the electronic bill presentment and payment (EBPP) system for the B2C environment. a) True b) False
Answer:
a) True
Explanation:
Electronic bill payment and presentment (EBPP) can be regarded as process that is been utilized by
companies in collection of payments electronically by utilization of systems such as Automated Teller Machines (ATMs) as well as Internet and direct-dial access. This has turned to a core component of online banking as regards to some financial institutions today, some industries such as telecommunications and insurance providers make use of it.
Electronic invoicing and presentment payment (EIPP) can be regarded as process involving sending of electronic invoice to customers using the internet, as well as the ability of customers to be able to pay that invoice online also. It give a solution that brings about increased productivity, as well as given room for business owner to spend more time in developing their business as well as relationships with their customers.
It should be noted that the The electronic invoicing and payment (EIPP) system for the B2B environment is similar to the electronic bill presentment and payment (EBPP) system for the B2C environment.
Allen Green is a single taxpayer with an AGI (and modified AGI) of $214,000, which includes $172,000 of salary, $26,200 of interest income, $10,400 of dividends, and $5,400 of long-term capital gains. What is Allen's net investment income tax liability this year, rounded to the nearest whole dollar amount
Answer:
$532
Explanation:
The income that is considered for NIIT is the (a) lesser of the net investment income or (b) the amount by which MAGI exceeds the applicable threshold.
a. $42,000 ($26,200 interest income + $10,400 dividends + $5,400 Long-term capital gains)
b. $14,000 ($214,000 - $200,000)
Note: MAGI threshold of $200,000 for single taxpayer is applicable before they fall under the NIIT bracket of 3.8% of tax.
Net Investment Income = $14,000
Net investment income tax liability = Net Investment Income * 3.8%
Net investment income tax liability = $14,000 * 3.8%
Net investment income tax liability = $532
So, Allen's net investment income tax liability this year is $532.
True or False: It was better for the united states not to receive this foreign investment because it decreases economic growth
Answer:
False
Explanation:
When the foreign investment should received so it generally complement the capital stock of the domestic one. ALso, the foreign investment includes both macro and micro impact. Like for macro, it is good for export, imprort and for micro it improved the labor force quality
So it increased the capital and the new business opportunities
Therefore the given statement is false
The Bretton Woods system ended when: A. several countries tied the value of their currencies to the U.S. dollar.
B. the United States decided to stop backing the U.S. dollar with gold reserves C. the United States experienced its second Industrial Revolution
D. the gold standard became more popular in countries around the world
Answer:
B
Explanation:
There is no other answer but B. That was Nixon's doing. He took the American dollar off the Gold system. Gold in 1980 eventually went from 35 dollars to 800 which is a stupendous move. Many people, unfortunately for them, bought at the top and it took 31 years (I think) for them to recover their money.
Answer:
B
Explanation:
Lucy has been the sole shareholder of a calendar year S corporation since 1980. At the end of 2011, Lucy's stock basis is $23,500, and she receives a distribution of $25,000. Corporate level accounts are computed as follows.
AAA 7,000
PTI 11,000
Accumulated E&P 600
How much capital gain, if any, will Lucy have?
a. $600
b. $7,000
c. $6,400
d. $900
e. None of the above
Answer: d. $900
Explanation:
Capital gain = Total distribution - AAA as this isn't taxed - Accumulated E&P - PTI which isn't taxed either - Stock basis
Stock basis = Stock basis - AAA - PTI
= 23,500 - 7,000 - 11,000
= $5,500
Capital Gain = 25,000 - 7,000 - 600 - 11,000 - 5,500
= $900
A(n) ______ cost requires a future outlay of cash and is relevant for current and future decision making. Multiple choice question. opportunity sunk historical out-of-pocket
Answer:
out-of-pocket
Explanation:
In Accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Cost pool is simply the amount of money spent by a firm on a particular activity.
Generally, an activity-based costing uses numerous cost pools such as manufacturing cost or customer services and numerous cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.
Generally, an out-of-pocket cost requires that an individual or business outlay their future cash-flow and it must be relevant for current and future decision making.
A US Treasury is quoted at $137.111 based on $100 par. Today is 12/31/2020. Assume that transaction date and settlement date is the same. The coupon rate is 8%. The bond has 30-year maturity. What is the yield-to-maturity
Answer: 5.46%
Explanation:
You can use excel to solve for this.
Number of periods = 30
Coupon = Payment = 8% * 100 = $8
PV = $137.11
FV = $100 par value
Do this and the YTM would be: 5.46%
This makes sense because the bond is trading at a premium which means that the YTM is less than the coupon rate.
During its first year of operations, Mario Lupo formed Lupo Company as a corporation and personally invested $15,000 in the business in exchange for common stock. Lupo Company also paid dividends of $2,000. The company earned $35,000 of revenues and incurred $23,000 of expenses. At the end of the year, the company's equity totaled:_____.
a. $13,000.
b. $15,000.
c. $25,000.
d. $75,000.
Answer:
c. $25,000
Explanation:
Calculation to determine At the end of the year, the company's equity totaled:
First step is to calculate the Net income using this formula
Net income= Revenues- Expense
Let plug in the formula
Net income= 35000-23000
Net income=12000
Second step is to calculate Net income added to capital using this formula
Net income added to capital = Net income-Cash dividend
Let plug in the formula
Net income added to capital=12000-2000
Net income added to capital=10000
Now let determine the Ending company total equity using this formula
Ending company total equity= Opening invested capital + Net income added to capital
Let plug in the formula
Ending company total equity=15000+10000
Ending company total equity=$25000
Therefore At the end of the year, the company's equity totaled:$25,000
At February 1, 2022, the balance in Wildhorse Co. supplies account was $3780. During February Wildhorse purchased supplies of $3240 and used supplies of $4320. At the end of February, the balance in the Supplies account should be
Answer: $2,700
Explanation:
The balance in Supplies account at the end of February can be calculated using the formula:
= Beginning balance + Supplies purchased in the month - Supplies used in the month
= 3,780 + 3,240 - 4,320
= $2,700
Calculate the end of the year cash balance based on the information below:
Beginning of the year cash balance 1,600
Revenue 1,200
Net income 450
Depreciation 100
Negative changes in operating assets and liabilities 60
Acquisitions of PP 300
Dividends paid in the current year 110
Increase in long-term debt 500
Answer: $2,180
Explanation:
Net income is already derived from revenue so adding revenue would be double counting.
Depreciation is a non cash expense so should be added back to cash holdings.
Negative changes in operating assets and liabilities reduces cash.
Acquisitions of Property and Plants reduces cash
Dividends also reduce cash
Increase in debt increases cash.
Cash balance is therefore:
= Beginning of year cash + Net income + Depreciation + Increase in long-term debt - Negative changes in operating assets and liabilities - Acquisitions of PP - Dividends paid in current year
= 1,600 + 450 + 100 + 500 - 60 - 300 - 110
= $2,180
Net income is derived from revenue so adding revenue give double counting
Depreciation is a non cash expense so should be added back to cash holdings
Negative changes in operating assets and liabilities reduces cash
Acquisitions of Property and Plants reduces cash
Dividends reduce cash
Increase in debt increases cash
Cash balance based on the information is:
= Beginning of year cash + Net income + Depreciation + Increase in long-term debt - Negative changes in operating assets and liabilities - Acquisitions of PP - Dividends paid in current year
= 1,600 + 450 + 100 + 500 - 60 - 300 - 110
= 2,180
What are Operating Assets?Operating assets are those assets acquired for use in the conduct of the ongoing operations of a business. This means assets that are needed to generate revenue.
Examples of operating assets are cash, prepaid expenses, accounts receivable, inventory, and fixed assets. If there are recognized intangible assets, such as technology licenses needed to manufacture goods, these should also be considered operating assets.
Assets not considered to be operating assets are those used for long-term investment purposes, such as marketable securities.
Assets no longer used for operations, such as assets held for sale, are also not considered to be operating assets.
Further, a non-cash asset that is held for investment purposes, such as an investment property, is not considered an operating asset.
What is Liability?A liability is something a person or company owes, usually a sum of money.
Liabilities are settled over time through the transfer of economic benefits including money, goods, or services.
Liability is Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and accrued expenses.
Liabilities can be contrasted with assets.
Liabilities refer to things that you owe or have borrowed; assets are things that you own or are owed.
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Caber corporation applies manufacturing overhead on the basis of machine-hours. at the begining of the most recent year, the company based it predetermined overhead rate on total estimated overhead of $60,600. Actual manufacturing overhead for the year amounted to $59,000 and actual machine-hours were 5,900. The company's predetermined overhead rate for the year was $10.10 per machine-hour.
a. The pre-determined overhead rate was based on how many estimated machine-hours?
A. 5,783.
B. 6,000.
C. 5,900.
D. 5,842 24.
b. The applied manufacturing overhead for the year was closest to:_____.
A. $58,017.
B. $59,590.
C. $60,600.
D. $58,597.
c. The overhead for the year was:_____.
A. $1,010 underapplied.
B. $590 overapplied.
C. $590 underapplied.
D. $1,010 overapplied.
Answer and Explanation:
The calculation of each part is given below:
a. The estimated machine hours is
= $60,600 ÷ 10.10
= 6,000 machine hours
b. The applied manufacturing overhead is
= 5,900 × $10.10
= $59,590
c. The overhead should be
= $60,600 - $59,590
= $1,010 underapplied
In this way each and every part should be determined
So the same should be considered and relevant
The marginal product of labor in the production of computer chips is chips per hour. The marginal rate of technical substitution (MRTS) of hours of labor for hours of machine capital is . What is the marginal product of capital? The marginal product of capital is nothing chips per hour. (Enter your response as an integer.)
Answer: 500 chips per hour
Explanation:
Marginal rate of technical substitution is calculated by the formula:
= Marginal product of labor / Marginal product of capital
0.20 = 100 / marginal product of capital
Marginal product of capital * 0.20 = 100
Marginal product of capital = 100 / 0.20
= 500
The CEO of Kwikee Shoppe, a chain of convenience stores, believes that some of his managers aren’t making decisions as effectively as they could. He has hired you as a consultant to analyze the types of bias that could be causing poor decisions. If you can identify the biases that may cloud their judgment, then they can be made aware of these tendencies so they can improve their performance. You gather data about Kwikee Shoppe managers’ most recent decisions.
Stella is in charge of the western region, and she has a strong track record of opening new stores that perform well and closing stores that could not contribute satisfactorily to the bottom line. Lately, however, many of her new stores have had below average performance, and she has closed some stores that probably could have been turned around by putting a different store manager in charge, advertising more, or offering more specials on popular products. Nonetheless, Stella knows that she is great at her job. Which of the following would not be a way for Stella overcome this bias?
A. Consult with other regional managers for their opinion before closing stores.
B. Before closing a store, replace the manager with one from a successful store and revisit the decision in 90 days.
C. Create a checklist of items to ask before closing stores, providing weights to each item based on their importance.
D. Focus on the stores that she closed that would not have improved with a different manager in place, additional advertising, or sales.
Answer:
Kwikee Shoppe
The way that Stella would overcome this bias is:
D. Focus on the stores that she closed that would not have improved with a different manager in place, additional advertising, or sales.
Explanation:
The other listed actions would enable Stella to overcome her personal bias, which may be clouding her sense of judgment. The focus on the stores that she had closed would only puff her ego instead of reducing bias. To focus on the past when Stella is proud of her achievements cannot allow her to objectively review the situation in order to improve on her decisions and performance.
Ken Jones, an architect, organized Jones Architects on April 1, 20Y2. During the month, Jones Architects completed the following transactions: Transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $30,000. Purchased used automobile for $20,000, paying $4,500 cash and giving a note payable for the remainder. Paid April rent for office and workroom, $3,000. Paid cash for supplies, $1,440. Purchased office and computer equipment on account, $6,000. Paid cash for annual insurance policies on automobile and equipment, $2,000. Received cash from a client for plans delivered, $7,500. Paid cash to creditors on account, $1,740. Paid cash for miscellaneous expenses, $375. Received invoice for blueprint service, due in May, $1,000. Recorded fees earned on plans delivered, payment to be received in May, $5,200. Paid salary of assistant, $1,600. Paid cash for miscellaneous expenses, $810. Paid installment due on note payable, $240. Paid gas, oil, and repairs on automobile for April, $390.
Required:
Record the above transactions in T accounts.
Answer:
Jones Architects
T-accounts:
Cash
Account Titles Debit Credit
Common Stock, $30,000
Automobile $4,500
Rent expense $3,000
Supplies $1,440
Prepaid Insurance $2,000
Service Revenue $7,500
Accounts Payable $1,740
Miscellaneous expenses, $375
Salary Expense $1,600
Miscellaneous expenses, $810
Note payable, $240
Automobile expense $390
Common Stock
Account Titles Debit Credit
Cash $30,000
Note payable
Account Titles Debit Credit
Automobile $15,500
Cash $240
Automobile
Account Titles Debit Credit
Cash $4,500
Note payable $15,500
Rent expense
Account Titles Debit Credit
Cash $3,000
Supplies
Account Titles Debit Credit
Cash $1,440
Office and computer equipment
Account Titles Debit Credit
Accounts Payable $6,000
Accounts Payable
Account Titles Debit Credit
Office and computer equipment $6,000
Cash $1,740
Blueprint expense $1,000
Prepaid Insurance
Account Titles Debit Credit
Cash $2,000
Service Revenue
Account Titles Debit Credit
Cash $7,500
Accounts receivable $5,200
Miscellaneous expenses
Account Titles Debit Credit
Cash $375
Cash $810
Blueprint expense
Account Titles Debit Credit
Accounts payable $1,000
Accounts Receivable
Account Titles Debit Credit
Service Revenue $5,200
Salary Expense
Account Titles Debit Credit
Cash $1,600
Automobile expense
Account Titles Debit Credit
Cash $390
Explanation:
a) Data and Analysis:
Cash $30,000 Common Stock, $30,000
Automobile $20,000 Cash $4,500 Note payable $15,500
Rent expense $3,000 Cash $3,000
Supplies $1,440 Cash $1,440
Office and computer equipment $6,000 Accounts Payable $6,000
Prepaid Insurance $2,000 Cash $2,000
Cash $7,500 Service Revenue $7,500
Accounts Payable $1,740 Cash $1,740
Miscellaneous expenses, $375 Cash $375
Blueprint expense $1,000 Accounts payable $1,000
Accounts receivable $5,200 Service Revenue $5,200
Salary Expense $1,600 Cash $1,600
Miscellaneous expenses, $810 Cash $810
Note payable, $240 Cash $240
Automobile expense $390 Cash $390
Rickett Corporation had a favorable direct-labor efficiency variance of $6,000 for the period just ended. The actual wage rate was $0.50 more than the standard rate of $12.00. If the company's standard hours allowed for actual production totaled 9,500, how many hours did the firm actually work
Answer:
Actual Quantity= 9,000 hours
Explanation:
Giving the following information:
Direct-labor efficiency variance= $6,000 favorable
Standard rate= $12.00.
Standard quantity= 9,500
To calculate the actual hours worked, we need to use the following formula.
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
6,000 = (9,500 - Actual Quantity)*12
6,000= 114,000 - 12Actual Quantity
12Actual Quantity = 108,000
Actual Quantity= 9,000 hours
On June 10, Pais Company purchased $9,000 of merchandise from MacGyver Company, on account, terms 3/10, n/30. Pais pays the freight costs of $400 on June 11. Goods totaling $600 are returned to MacGyver for credit on June 12. On June 19, Pais Company pays McGiver Company in full, less the purchase discount. Both companies use a perpetual inventory system. Journalize perpetual inventory entries. Instructions a. Prepare separate entries for each transaction on the books of Pais Company. b. Prepare separate entries for each transaction for MacGyver Company. The merchandise purchased by Pais on June 10 cost MacGyver $5,000, and the goods returned cost McGiver $310.
Solution :
Pais Company
June 10 Inventory 9000
Accounts payable 9000
June 11 Inventory 400
Cash 400
No entry 0
June 12 Accounts payable 600
Inventory 600
June 19 Accounts payable 8400
Inventory 252 = 8400 x 3%
Cash 8148
McGiver Company
June 10 Accounts Receivable 9000
Sales revenue 9000
Cost of goods sold 5000
Inventory 5000
June 12 Sales return and allowances 600
Accounts receivable 600
Inventory 310
Cost of goods 310
June 19 Cash 8148
Sales discount 252 =8400 x 3%
Account receivable 8400
Prior to recording adjusting entries, the Office Supplies account had a $490 debit balance. A physical count of the supplies showed $175 of unused supplies available. The required adjusting entry is: debit/credit [ Select ] to [ Select ] account for [ Select ] debit/credit [ Select ] to [ Select ] account for [ Select ]
Answer: See explanation
Explanation:
Based on the information that's provided in the question, the required adjusting entry goes thus:
Unadjusted ending balance of supplies = $490
Actual supplies ending balance existing physically = $175
From the information above, the supplies used during the period will be:
= $490 - $175
= $315
Therefore,
Debit office supplies expenses $315 Credit office supplies account $315
The following information applies to the questions displayed below] A local Chevrolet dealership carries the following types of vehicles
Inventory Items Quantity Cost per unit NRV per Unit
Vans 4 27000 25000
Trucks 7 18000 17000
2-door sedans 3 13000 15000
4-door sedans 5 17000 20000
Sports cars 1 37000 40000
SUVs 6 30000 28000
Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks
A) Compute the total cost of the entire inventory.
B) Determine whether each inventory item would be reported at cost or net realizable value (NRV).
C) Prepare necessary journal entry to write down inventory from from close to net realize value.
D) The write-down of inventory from cost to net realizable value reduces total assets and increases total expenses, leading to lower net income and lower retained earnings. True OR False
Answer:
Chevrolet Dealership
A) The total cost of the entire inventory is:
= $575,000
B) Each inventory would be reported at the LCNRV:
Inventory Items Quantity Reporting Cost/Value
Vans 4 NRV
Trucks 7 NRV
2-door sedans 3 Cost
4-door sedans 5 Cost
Sports cars 1 Cost
SUVs 6 NRV
C) Journal Entry:
Debit Cost of goods sold $27,000
Credit Inventory $27,000
To write-down costs to net realizable values.
D) TRUE.
Explanation:
a) Data and Calculations:
Inventory Items Quantity Cost per unit NRV per Unit LCNRV
Vans 4 27000 $108,000 25000 $100,000
Trucks 7 18000 126,000 17000 119,000
2-door sedans 3 13000 39,000 15000 39,000
4-door sedans 5 17000 85,000 20000 85,000
Sports cars 1 37000 37,000 40000 37,000
SUVs 6 30000 180,000 28000 168,000
Total Cost $575,000 $548,000
Suppose Cute Camel Woodcraft Company is evaluating a proposed capital budgeting project (project Alpha) that will require an initial investment of $400,000. The project is expected to generate the following net cash flows:
Year Cash Flow
Year 1 $325,000
Year 2 $500,000
Year 3 $400,000
Year 4 $475,000
Cute Camel Woodcraft Company's weighted average cost of capital is 8%, and project Alpha has the same risk as the firm's average project. Based on the cash flows, what is project Alpha's net present value (NPV)?
Answer:
$996,267.41
Explanation:
The Net Present Value of Alpha`s project can be determined by using the CFj Function of a Financial Calculator as follows :
- $400,000 CF0
$325,000 CF1
$500,000 CF2
$400,000 CF3
$475,000 CF4
I/YR = 8%
Then, SHIFT NPV gives $996,267.41
Thus, Alpha's net present value (NPV) is $996,267.41.
g how long (in years) will it take to triple an investment made at a 2% interest rate if the interest is compounded monthly
Managerial implications for the SDT theory include: Group of answer choices to motivate high performance for uninteresting jobs make performance contingent on extrinsic rewards. All of these. to motivate high performance for uninteresting jobs make performance contingent on intrinsic rewards. focus on the hygiene factors in order to reduce dissatisfaction and increase intrinsic motivation to enhance intrinsic motivation for interesting jobs be sure individuals receive large pay bonuses for high achievement
Answer:
to motivate high performance for uninteresting jobs make performance contingent on extrinsic rewards.
Explanation:
Extrinsic rewards means the motivation i.e. controlled and produced via payment, awards and appreciations. In the case when the job is not interesting so the motivation level should be high in this situation and when the job is interesting the motivation level should not high
So as per the given situation, the above statement should be considered as an answer
