Answer:
The Federal Reserve System is the central bank of the United States. It performs five general functions to promote the effective operation of the U.S. economy and, more generally, the public interest.
Explanation:
Carmelo, the editor of a business department of a national news magazine, went through a sequence of jobs in the company before he achieved this position. He joined as a staff reporter, then got promoted to technology reporter, then to editor of the business department, and then to deputy managing editor before achieving his current position. This is __________.
Answer:
organization-centered career planning
Explanation:
According to the information in the question, it is correct to say that the case of Carmelo fits into a organization-centered career planning, because Carmelo grew in the organization in a progressive sequence, joined as a team reporter and was climbing new roles until reaching a higher hierarchical position as your current position as editor of the magazine's business department.
Organization-centered career planning can be very beneficial to employees when the organization is well structured through a culture that enables the growth of employees and professional advancement in the company.
In its income statement for the year ended December 31, 2022, Pharoah Company reported the following condensed data. Salaries and wages expenses $595,200 Loss on disposal of plant assets $106,880 Cost of goods sold 1,263,360 Sales revenue 2,828,800 Interest expense 85,200 Income tax expense 32,000 Interest revenue 83,200 Sales discounts 204,800 Depreciation expense 396,800 Utilities expense 140,800
Prepare a multiple-step income statement. (List other revenues before other expenses.)
Pharoah Company
Income Statement
Answer:
Net income is $86,960.
Explanation:
A multi-step income statement is an income statement which dsplayes th gross profit and the detailed of each category of expenses and incomes to arrive at a company's net income for a particular period.
A multi-step income statement can be prepared as follows:
Pharoah Company
Income statement
For the year ended December 31, 2022
Details $
Sales revenue 2,828,800
Sales discounts (204,800)
Net sales revenue 2,624,000
Cost of goods sold (1,263,360)
Gross profit 1,360,640
Operating expenses:
Salaries and wages expenses (595,200)
Depreciation expense (396,800)
Utilities expense (140,800)
Operating income 227,840
Other income (loss):
Loss on disposal of plant assets (106,880)
Interest income (expense):
Interest expense (85,200)
Interest revenue 83,200
Income before tax 118,960
Income tax expense (32,000)
Net income 86,960
Road Gripper Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 4,160 tires were as follows:
Standard Costs Actual Costs
Direct materials 100,000 lbs. at $6.40 101,000 lbs. at $6.50
Direct labor 2,080 hrs. at $15.75 2,000 hrs. at $15.40
Factory overhead Rates per direct labor hr.,
based on 100% of normal capacity of 2,000 direct
labor hrs.:
Variable cost, $4.00 $8,200 variable cost
Fixed cost, $6.00 $12,000 fixed cost
Each tire requires 0.5 hour of direct labor.
Required:
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance.
b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance.
c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance.
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
a.
In part a, we need to find the following 3 requirements:
1. Direct Materials Price Variance
2. Direct Materials Quantity Variance
3. Total Direct Materials Cost Variance
Direct Materials Price Variance:
It can be calculated by using the following formula:
DMPV = AQ multiplied by (AP minus the SP)
Where,
DMPV = Direct Materials Price Variance
AQ = Actual Quantity
AP = Actual Price
SP = Standard Price
We do have all the data, so just plug in the values into the above equation to get the DMPV.
AQ = 101,000
AP = 6.50 USD
SP = 6.40 USD
So,
DMPV = 101,000 ( 6.50 - 6.40)
DMPV = 10,100 USD
Direct Materials Quantity Variance:
DMQV = SP ( AQ - SQ )
Where,
DMQV = Direct Materials Quantity Variance = ?
SP = Standard Price = 6.40 USD
AQ = Actual Quantity = 101,000
SQ = Standard Quantity = 100,000
Plugging in the values:
DMQV = 6.40 ( 101,000 - 100,000)
DMQV = 6400 USD
Total Direct Materials Cost Variance:
DMCV = SMC - AMC
Where,
DMCV = Direct Materials Cost Variance = ?
SMC = Standard Market Cost = 6.40 USD x 100,000
AMC = Actual market Cost = 6.50 USD x 101,000
DMCV = (6.40 USD x 100,000) - (6.50 USD x 101,000)
DMCV = 640,000 - 656,500
DMCV = 16,500 USD
b.
For part b, we need following particulars:
1. Direct Labor Rate Variance (DLRV)
2. Direct Labor Time Variance (DLTV)
3. Direct Labor Cost Variance (DLCV)
Direct Labor Rate Variance (DLRV) :
DLRV = (ADLR - SDLR) x ADLH
Where,
ADLR = Actual Direct Labor Rate = 15.40 USD
SDLR = Standard Direct Labor Rate = 15.75 USD
ADLH = Actual Direct Labor Hour = 2000
So,
DLRV = (ADLR - SDLR) x ADLH
DLRV = (15.40 USD - 15.75 USD ) x 2000
DLRV = 700 USD
Direct Labor Time Variance (DLTV):
DLTV = ( ADLH - SDLH ) x SDLR
SDLH = Standard Direct Labor Hour = 2080
DLTV = ( 2000 - 2080 ) x 15.75 USD
DLTV = 1260 USD
Direct Labor Cost Variance (DLCV)
DLCV = SDLC - ADLC
SDLC = Standard Direct Labor Cost
ADLC = Actual Direct Labor Cost
DLCV = (1540 x 2000) - (15.75 x 2080)
DLCV = 1960 USD
c.
For Part c, we need following:
1. variable factory overhead controllable variance (VFOCV)
2. fixed factory overhead volume variance (FFOVV)
3. Total factory overhead cost variance (TFOCV)
variable factory overhead controllable variance (VFOCV):
VFOCV = AFO - B
Where,
AFO = Actual Factory Overhead = 8200
B = Budgeted Allowance Based on Standard Hours Allowed = 4160x0.5x4
B = 8320 USD
VFOCV = 8200 - 8320
VFOCV = 120 USD
fixed factory overhead volume variance (FFOVV) :
FFOVV = (S - BH ) x SOR
Where,
S = Standard Hours for actual output = 4160 x 0.5
BH = Budgeted Hours = 2080
SOR = Standard Overhead Rate = 6 USD
FFOVV = (4160 x 0.5 - 2080) x 6
FFOVV = 0 USD
Total factory overhead cost variance (TFOCV):
TFOCV = AFO - SO
Where,
AFO = Actual Factory Overhead = 20,200
SO = Standard Overhead = 2080 x 10
TFOCV = 20,200 - ( 2080 x 10 )
TFOCV = 600 USD
All materials are added at the start of production. Refer to Keyser Corporation. Assume that the cost per EUP for material and conversion are $1.75 and $4.55, respectively. What is the cost assigned to ending Work in Process
Answer:
The cost assigned to ending Work in Process explanations only.
Explanation:
Hi your question is incomplete, I tried to look for it online but I could not find it.
Here are some explanations and steps you need to consider to answer this question.
The cost assigned to ending Work in Process :
Ending Work in Process usually have different number of equivalent units of production with respect to materials and conversion cost depending on the percentage of work completed for materials and conversion during the production process.
Step 1
So the first step is to calculate the equivalent units of production of Ending Ending work in process for Materials and Conversion costs.
Equivalent units of production = Physical units x Percentage completion (Materials / Conversion).
Step 2
The next step would be to calculate the cost assigned to ending Work in Process.
Equivalent units in materials are multiplied against Cost per Equivalent Unit) EUP for materials ($1.75 ) so is the Equivalent units in conversion costs against Cost per Equivalent Unit) EUP for conversion ($1.75). The total of the two amounts is the cost assigned to ending Work in Process.
The following data relate to Department no. 3 of Winslett Corporation: Segment contribution margin$540,000 Profit margin controllable by the segment manager 310,000 Segment profit margin 150,000 On the basis of this information, Department no. 3's variable operating expenses are: Multiple Choice Not determinable. $160,000. $80,000. $390,000. $230,000.
Answer:
$230,000
Explanation:
The Profit margin controllable by the segment manager contains only items directly controllable by the manager and this consists of variable costs. So deduct the profit margin controllable by the segment manager from segment contribution margin to arrive at Variable operating expenses.
Calculation of Variable operating expenses
Segment contribution margin $540,000
Less Profit margin controllable by the segment manager ($310,000)
Variable operating expenses $230,000
Computing Basic and Diluted Earnings per Share Soliman Corporation began the year 2018 with 25,000 shares of common stock and 5,000 shares of convertible preferred stock outstanding. On May 1, an additional 9,000 shares of common stock were issued. On July 1, 6,000 shares of common stock were acquired for the treasury. On September 1, the 6,000 treasury shares of common stock were reissued. The preferred stock has a $4 per share dividend rate, and each share may be converted into 2 shares of common stock. Soliman Corporation’s 2018 net income is $230,000.
Required
a. Compute earnings per share for 2018. Round your answer to two decimal places.
b. Compute diluted earnings per share for 2018. Round your answer to two decimal places.
Answer:
Soliman Corporation
1. Basic EPS
= $6.18 per share
2. Diluted EPS
= $5.23 per share
Explanation:
a) Data and Calculations:
Convertible Preferred Stock = 5,000 or 10,000 Common Shares
Common Stock:
January 1, 2018 = 25,000
May 1, 2018 Issued 9,000
July 1, 2018 Treasury (6,000)
September 1, 2018 Treasury 6,000
Total outstanding 34,000
Converted preferred stock 10,000
Total outstanding 44,000
2018 Net Income = $230,000
Preferred dividend 20,000 ($4 * 5,000)
Income for Common $210,000
Basic Earnings per share = $210,000/34,000 = $6.18
Diluted Earnings per share = $230,000/44,000 = $5.23
Swifty Company's financial information is presented below. Sales Revenue $ p?Cost of Goods Sold 536000 Sales Returns and Allowances 37000 Gross Profit p?Net Sales 868000 The missing amounts above are: Sales Revenue Gross Profit a. $905000 $332,000 b. $832,000 $332,000 c. $ 905,000 $416,000 d. $832,000 $416,000
Answer:
The correct answer is A.
Explanation:
The gross profit is calculated by deducting from net sales the cost of goods sold:
Gross profit= net sales - COGS
Gross profit= 868,000 - 536,000
Gross profit= $332,000
Now, the sales revenues are the sales before returns and allowances. Therefore, we need to add them to the net sales:
Sales revenue= 868,000 + 37,000
Sales revenues= $905,000
Difference between free market and capitalism.
Dmitri doesn't like Val, one of his coworkers. Dmitri started to send an e-mail to his workgroup, falsely accusing Val of stealing company supplies. Before clicking "Send," Dmitri reread his message. He decided to delete the message instead of sending it, fearing that his work team members might consider his e-mail to be inappropriate. Which ethical consideration did Dmitri use in his decision to behave in a principled manner?
A) Publicity Test
B) Common Good approach
C) Professional Ethic
D) Utilitarian approach
Answer:
C. Professional Ethics.
Explanation:
Ethics are moral qualities which governs a persons behavior. A person is sometimes in an ethical dilemma scenario where he has to take decision which might impact his ethical values. Professional ethics is a situation where a person thinks how his decision will be viewed by an independent jury or audience.
4. Between January 2012 and January 2019, U.S. employment
increased by 17.3 million workers, but the number of
unemployed workers declined by only 6.3 million. How are
these numbers consistent with each other? Why might one
expect a reduction in the number of people counted as
unemployed to be smaller than the increase in the number of
people employed?
Answer:
The fact that employment increased by 12.1 million workers while unemployment declined by only 7.3 million is consistent with the growth of the labor force by 4.8 million.
Explanation:
The fact that employment increased by 12.1 million workers while unemployment declined by only 7.3 million is consistent with the growth of the labor force by 4.8 million. One might expect a reduction in the number of people counted as unemployed to be smaller than the increase in the number of people employed because the labor force constantly increases as the population grows, and as the labor-force participation rate increases, the increase in employed might exceed the reduction in the number of unemployed.
From 1948 to 2022, the employment rate in the United States was around 59.22 % on average, the topic is further explained below.
What is the high rate of employment in the United States?From 1948 to 2022, the employment rate in the United States was around 59.22 % on average, with a high of 64.70 percent in April 2000 and a low of 51.30 percent in April 2020.
Employment increased by 12.1 million workers while unemployment decreased by only 7.3 million, corresponding to a 4.8 million increase in the labor force. One might expect a decrease in the number of unemployed people to be smaller than an increase in the number of employed people because the labor force is constantly increasing as the population grows.
And as the labor-force participation rate rises, the increase in employed people may outnumber the decrease in the number of unemployed people.
Therefore, the above statement explains employment in the United States.
Learn more about the employment in the United States here:
https://brainly.com/question/7200715
A stock index currently stands at 280. The risk-free interest rate is 10% per annum (with semiannual compounding) and the dividend yield on the index is 5% per annum (continuously compounded). The futures price for a six-month contract is closest to the which of following value:________
a. $235.07
b. $287.09
c. $277.11
d. $340.21
Answer:
b. $287.09
Explanation:
The computation of the future price of a six month contract is shown below;
Given that
Current stock index = 280
Risk free rate = 10% or 0.10
Dividend yield = 5% or 0.05
Periods (n) = 6 months or 0.5 year
now
Futures price = Current stock index × e^(risk free rate - dividend yield) × n
= 280 × e^(0.10 - 0.05) × 0.5
= 280 × e^(0.05) × 0.5
= 280 × e^(0.025)
= 280 × 1.025315
= $287.09
Materials used by Square Yard Products Inc. in producing Division 3's product are currently purchased from outside suppliers at a cost of $5.00 per unit. However, the same materials are available from Division 6. Division 6 has unused capacity and can produce the materials needed by Division 3 at a variable cost of $3.00 per unit. A transfer price of $3.20 per unit is established, and 40,000 units of material are transferred, with no reduction in Division 6's current sales. Square Yard Products Inc.'s total operating income will increase by
Answer: $80,000
Explanation:
First, we'll need to calculate division 3's income from the increase in operations and this will be:
= (40000 × $5) - ($40000 × $3.20)
= $200,000 - $128,000
= $72000
Division 6 income from operation increase will be:
= 40000 × ($3.20 - $3.00)
= 40000 × 0.2
= $8000
Therefore, Square Yard Products Inc.'s total operating income will increase by:
= $72000 + $8000
= $80000
On October 1, 2021, Sonoma Company leased equipment from Napa Inc. in lease payable in five equal annual payments of $400,000, beginning Oct 1, 2022. Similar transactions have carried an 11% interest rate. The right-of-use asset would be recorded at: _________
Answer:
$1,478,360
Explanation:
Calculation for what The right-of-use asset would be recorded at:
PV ordinary annuity of $1: n = 5; i = 11%
PV ordinary annuity = $400,000 × 3.69590
PV ordinary annuity = $1,478,360
Therefore right-of-use asset would be recorded at:$1,478,360
The Fabricating Department started the current month with a beginning Work in Process inventory of $10,900. During the month, it was assigned the following costs: direct materials, $76,900; direct labor, $24,900; and factory overhead, 70% of direct labor cost. Also, inventory with a cost of $113,500 was transferred out of the department to the next phase in the process. The ending balance of the Work in Process Inventory account for the Fabricating Department is: Group of answer choices $83,461. $196,961. $68,030. $16,630. $112,700.
Answer:
Ending Work in Process $16,630
Explanation:
The computation of the ending balance of the work in process inventory is shown below:
Beginning Work in process $10,900
Add: Manufacturing Costs
Direct Materials $76,900
Direct Labor $24,900
Factory Overhead $17,430 (70% of $24,900)
Less: Cost of goods manufactured ($113,500)
Ending Work in Process $16,630
Decide whether each of the following is frictional, structural, or cyclical unemployment:
a. The economy gets worse, so General Motors shuts down a factory for four months, laying off workers. cyclical structural frictional
b. General Motors lays off 5,000 workers and replaces them with robots. The workers start looking for jobs outside the auto industry. cyclical structural frictional
c. About 10 workers per month at a General Motors plant quit their jobs because they want to live in another town. They start searching for work in the new town.
Answer and Explanation:
The classification is as follows:
a. Cyclical unemployment
Since the economy got worse and the factory would be shut down for 4 months so this represent that the economy would go into recession
b. Structural unemployment
As General motors would lays off 5,000 workes and wants to subsitute with robots so here there is a mismatch of the skills & characteristics according to the job requirements
c. Frictional unemployment
Frictional unemployment is classify as a short-term unemployment that occurred for matching the workers with the available jobs
Windsor, Inc. decided to establish a petty cash fund to help ensure internal control over its small cash expenditures. The following information is available for the month of April.
1. On April 1, it established a petty cash fund in the amount of $268.
2. A summary of the petty cash expenditures made by the petty cash custodian as of April 10 is as follows. Delivery charges paid on merchandise purchased $76 Supplies purchased and used 41 Postage expense 49 I.O.U. from employees 33 Miscellaneous expense 52 The petty cash fund was replenished on April 10. The balance in the fund was $8.
3. The petty cash fund balance was increased $116 to $384 on April 20.
Prepare the journal entries to record transactions related to petty cash for the month of April.
april 1
pety cash 342 (d)
cash 342 (c)
april 10
???????????????????? 72 (d)
miscellaneous expense 48 (d)
postage expense 52 (d)
accounts recievable 29 (d)
???????????????????
??????????????????
??????????????????
petty cash ??
cash ??
Answer:
April 1
Dr Petty cash $268
Cr Cash $268
April 10
Dr Freight-in (Or Inventory) $76
Dr Supplies expense $41
Dr Dr Postage expense $49
Dr Accounts Receivable/Loan to employees $33
Dr Miscellaneous expense $52
Cr Cash over and short $9
Cr Cash $260
April 20
Dr Petty cash $116
Cr Cash $116
Explanation:
Preparation of the journal entries to record transactions related to petty cash for the month of April.
April 1
Dr Petty cash $268
Cr Cash $268
April 10
Dr Freight-in (Or Inventory) $76
Dr Supplies expense $41
Dr Dr Postage expense $49
Dr Accounts Receivable/Loan to employees $33
Dr Miscellaneous expense $52
Cr Cash over and short $9
($260-$76-$41-$49-$33-$52)
Cr Cash $260
($268-$8)
April 20
Dr Petty cash $116
Cr Cash $116
How does risk influence the rate of interest?
Answer:
Interest rate risk directly affects the values of fixed income securities. Since interest rates and bond prices are inversely related, the risk associated with a rise in interest rates causes bond prices to fall and vice versa. Interest rate risk affects the prices of bonds, and all bondholders face this type of risk.
Explanation:
Hope this helped Mark BRAINLEST!!
How does a realistic market potential estimate affect small business success?
Answer:
Estimating market size is a crucial first step in the development of any startup or small business. And it really doesn't matter what industry you're in — or want to be in — getting an accurate picture of your market size reveals insights that can drive both the present and future success of your business.
Assume that the entry closing total revenues of $284,900 and total expenses of $212,600 has been made for the year ending December 31. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $330,000 and Teresa Schafer, Drawing has a balance of $27,600.
A. Journalize the entry required to close the Teresa Schafer, Drawing account.
B. Determine the amount of Teresa Schafer, Capital at the end of period.
Answer and Explanation:
a. The journal entry to record the closing of drawing account is given below:
Teresa Schafer, Capital $27,600
Teresa Schafer, Drawing $27,600
(Being closing of drawing account is recorded)
b. The ending capital is
= Credit balance of capital - drawings
= $330,000 - $27,600
= $302,400
Consider the economy of Citronia, where citizens consume only oranges. Assume that oranges cost $1 each, and each person can buy at most 5,000 oranges. The government has devised the following tax plans:
Plan A Plan B
Consumption up to 1,000 oranges is taxed at 20%. Consumption up to 2,000 oranges is taxed at 30%.
Consumption higher than 1,000 oranges is taxed at 80%. Consumption higher than 2,000 oranges is taxed at 10%.
Required:
Derive the marginal and average tax rates under each tax plan at the consumption levels of 500 oranges.
Explanation:
We are to find marginal tax and average tax rate at a consumption level of 500 oranges for plan A and plan B
Plan A
Consumption level = 500 oranges
Tax = 20%
Tax payable on this = 500 x 20% = 500 x 0.2 = 100
Marginal tax rate = 20 %
Average tax return = 100/500 = 0.2x100 = 20%
Plan B
At tax rate = 30%
Same consumption level
Tax payable = 500 x 30% = 500 x 0.3 = 150
Marginal tax rate = 30%
Average tax rate = 150/500 = 0.3 x 100 = 30%
One of the themes that came out of the survey responses is that employees take their responsibility of serving fresh, hot food quickly and helping customers find menu items that they will like very seriously. But most of the time, employees do not feel like the work they do is very important. According to the job characteristics theory, which of the following should you do to address this issue?
A. Improve employees' growth need strength.
B. Improve feedback.
C. Improve skill variety.
D. Improve task significance.
C. After carefully considering the most recent employee survey results, you decide that the core issue that you need to address to improve employee motivation is that employees do not seem to know how they are doing relative to what is expected of them. Knowing this, which critical psychological state will you be most targeting in your job redesign initiative?
A. Experienced responsibility for outcomes of the work.
B. Growth need strength.
C. Knowledge of the actual results of work activities.
D. Experienced meaningfulness of the work.
Answer:
D. Improve task significance.
C. Knowledge of the actual results of work activities.
Explanation:
1. In order to address this issue you should focus on improving task significance. Doing so will increase employee motivation as they will begin actually seeing that their work is important. Being able to visualize the consequences that your work has on others or in general is incredibly motivating in a work environment as it provides purpose to the otherwise mundane tasks.
2. In this case, you would need to target a redesign of Knowledge of the actual results of work activities. Employees need to be able to visualize or atleast hear feedback of how they are performing. This feedback will allow them to adjust their actions/performance and improve upon it. Without this feedback there is no way for the employees to improve as they have no baseline of what is exceptional behavior if they do not have data or an example to compare their performance to.
Reynolds Manufacturers Inc. has estimated total factory overhead costs of $104,000 and expected direct labor hours of 13,000 for the current fiscal year. If job number 117 incurs 1,720 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for a.$104,000 b.$52,000 c.$1,720 d.$13,760
Answer:
Work in Process 13.760
Manufacturing Overhead 13,760
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 104,000 / 13,000
Predetermined manufacturing overhead rate= $8 per direct labor hour
Now, we can allocate overhead to Job 117:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 8*1,720
Allocated MOH= $13,760
Work in Process 13.760
Manufacturing Overhead 13,760
Correctly match the following with: export goods, import goods, export services, import services, investment income inflows, investment income outflows, transfer inflows, transfer outflows, capital inflows, and capital outflows.
Answer:
1. Import goods
2. Transfer outflow
3. Export services
This is what I know so far. Hope this helps.
Contribution Margin and Contribution Margin Ratio
For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions):
Sales $18,169.3
Food and packaging $ 6,129.7
Payroll 4,756.0
Occupancy (rent, depreciation, etc.) 4,402.6
General, selling, and administrative expenses 2,487.9
$17,776.2
Income from operations $ 393.1
Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.
a. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place).
b. What is McDonald's contribution margin ratio? Round to one decimal place.
c. How much would income from operations increase if same-store sales increased by $500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place).
Answer:
See below
Explanation:
Variable food and packaging = $6,129.7
Variable payroll = $4,756.0
Variable general, selling and administrative expenses = 40% × $2,487.9 = $995.16
Fixed general, selling and administrative expenses = 60% × $2,487.9 = $1,492.74
Fixed occupancy = $4,402.6
Total fixed cost = $1,492.84 + $4,402.6 = $5,895.34
Total variable cost = Variable food and packaging + Variable payroll + Variable general, selling and administrative expenses
= $6,129.7 + $4,756 + $995.16
= $11,880.86
a. McDonald's contribution margin
= Sales - Variable cost
= $18,169.3 - $11,880.86
= $6,288.44
b. McDonald's contribution margin
= Contribution margin / Sales
= $6,288.44 / $18,169.3
= 34.61%
c. Increase in operating income
= $500 million × 34.71
= $173,050,000
Your family business produces a secret recipe salsa and distributes it through both smaller specialty stores and chain supermarkets. The chains have been demanding sizable discounts but you do not want to drop your prices to the specialty stores. When can you legally accommodate the chains without losing profits from the specialty stores
Answer:
We can make the chain supermarkets buy goods in bulk.
Explanation:
In the given scenario the chain supermarkets have been demanding heavy discounts on goods that you are selling to them.
Also you do not want the eventual price to the speciality stores to drop.
The solution will be to sell products in bulk to the chain supermarkets. This will meet their demand for larger discounts as price per unit of product will be lower with bulk purchase.
Then the speciality stores can still buy in small quantities for higher price.
This will accommodate the requirements from both stores.
Eva received $68,000 in compensation payments from JAZZ Corp. during 2018. Eva incurred $13,500 in business expenses relating to her work for JAZZ Corp. JAZZ did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $12,000. Based on these facts answer the following questions: Use Tax Rate Schedule for reference.
a. Assume that Eva is considered to be an employee. What amount of FICA taxes is she required to pay for the year?
b. Assume that Eva is considered to be an employee. What is her regular income tax liability for the year?
c. Assume that Eva is considered to be a self-employed contractor. What is her self-employment tax liability and additional Medicare tax liability for the year?
I got answer b but you may wanna double check
Answer:
its b
Explanation:
i got it right on mine
Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses.
FORTEN COMPANY
Comparative Balance Sheets
December 31
Current Year Prior Year
Assets
Cash $ 66,400 $ 84,500
Accounts receivable 82,380 61,625
Inventory 292,156 262,800
Prepaid expenses 1,320 2,115
Total current assets 442,256 411,040
Equipment 146,500 119,000
Accum. depreciation—Equipment (42,125) (51,500)
Total assets $ 546,631 $ 478,540
Liabilities and Equity
Accounts payable $ 64,141 $ 131,175
Short-term notes payable 13,300 8,200
Total current liabilities 77,441 139,375
Long-term notes payable 59,500 59,750
Total liabilities 136,941 199,125
Equity
Common stock, $5 par value 179,250 161,250
Paid-in capital in excess of par, common stock 54,000 0
Retained earnings 176,440 118,165
Total liabilities and equity $ 546,631 $ 478,540
FORTEN COMPANY
Income Statement
For Current Year Ended December 31
Sales $ 637,500
Cost of goods sold 296,000
Gross profit 341,500
Operating expenses
Depreciation expense $ 31,750
Other expenses 143,400 175,150
Other gains (losses)
Loss on sale of equipment (16,125)
Income before taxes 150,225
Income taxes expense 39,650
Net income $ 110,575
Additional Information on Current Year Transactions
The loss on the cash sale of equipment was $16,125 (details in b).
Sold equipment costing $79,875, with accumulated depreciation of $41,125, for $22,625 cash.
Purchased equipment costing $107,375 by paying $52,000 cash and signing a long-term note payable for the balance.
Borrowed $5,100 cash by signing a short-term note payable.
Paid $55,625 cash to reduce the long-term notes payable.
Issued 3,600 shares of common stock for $20 cash per share.
Declared and paid cash dividends of $52,300.
Required:
Prepare a complete statement of cash flows using a spreadsheet using the indirect method. (Enter all amounts as positive values.)
Answer:
Cash flow from all activities -$18,100
Cash at the beginning of the year $84,500
Cash at the end of year $66,400
Explanation:
Preparation of a complete statement of cash flows using a spreadsheet using the indirect method.
FORTEN COMPANY
Statement of Cash Flows
For the Year ended December 31
Cash Flow from Operating Activities:
Net Income $110,575
Adjustments to reconcile net income to cash flow from operating activities:
Depreciation $31,750
Loss on sale of Equipment $16,125
Increase in Accounts Receivables -$20,755
($61625 - $82380)
Increase in Inventory -$29,356
($262800-292156)
Decrease in Prepaid Expenses $795
($2115-1320)
Decrease In Accounts Payable -$67,034
($64141 - $131175)
Increase in Short term note payable $5,100
($13300-8200)
Total Adjustments -$63,375
Net Cash Flow From Operating Activities (A) $47,200
Cash Flow from Investing Activities:
Cash Received from sale of Equipment $22,625
Purchase of Equipment (In cash) -$52,000
Net Cash Flow From Investing Activities (B) -$29,375
($22,625-$52,000)
Cash Flow from Financing Activities:
Repayment of Long Term Note Payable -$55,625
Cash received from issue of common stock $72,000 (3600*$20)
Dividend paid -$52,300
Net Cash Flow From Financing Activities (C) -$35,925
Total Cash flow from all activities
(A+B+C) -$18,100
($47,200+-$29,375+-$35,925)
Cash at the beginning of the year $84,500
Cash at the end of year $66,400
($84,500-$18,100)
Therefore The complete statement of cash flows using a spreadsheet using the indirect method will be :
Cash flow from all activities -$18,100
Cash at the beginning of the year $84,500
Cash at the end of year $66,400
Ace Leasing acquires equipment and leases it to customers under long-term sales-type leases. Ace earns interest under these arrangements at a 6% annual rate. Ace leased a machine it purchased for $790,000 under an arrangement that specified annual payments beginning at the commencement of the lease for five years. The lessee had the option to purchase the machine at the end of the lease term for $200,000 when it was expected to have a residual value of $350,000. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Calculate the amount of the annual lease payments. (Enter amounts as positive values rounded to the nearest whole dollar.)
Answer:
$143,750
Explanation:
We have to first calculate the present value of the bargain purchase option:
PV = $200,000 / (1 + 6%)⁵ = $149,451.63
net lease amount = $790,000 - $149,452 = $640,548
PVIF Annuity due, 6%, 5 payments = 4.546
Annual payment = $640,548 / 4.456 = $143,750
The underlying assumption of the dividend discount model is that a stock is worth: A. the present value of the future dividends the company pays. B. an amount computed as the next annual dividend divided by the required rate of return. C. the same amount as any other stock that pays the same current dividend and has the same required rate of return.
Answer:
A. the present value of the future dividends the company pays.
Explanation:
The net present value (NPV) of a project can be defined as the difference between present value of cash-inflow into a project and that of cash-outflow over a specific period of time. Thus, it is simply the value of all cash-flows for a project with respect to its life span.
The underlying assumption of the dividend discount model is that a stock is worth the present value of the future dividends the company pays.
Generally, all financial assets or securities can be securitized i.e turned into a tradable item that can be used to generate money for a potential investor or the owner of the financial asset.
For example, a mortgage backed security can be used as securitization.
Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 8% with semiannual payments of $40, and a par value of $1,000. The price of each bond in the issue is $1,196.00. The bond issue is callable in 5 years at a call price of $1,080. What is the bond's current yield
Answer:
6.69%
Explanation:
Price of Ace products bond issue = $1,196
Annual coupon payment = $80
Current yield = Annual coupon payment / Bond price
Current yield = $80/$1,196
Current yield = 0.0668896
Current yield = 6.69%