Horace Company manufactures a professional-grade vacuum cleaner and began operations in 2020. For 2020, Horace budgeted to produce and sell 25,000 units. The company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2020 are as follows:_______.
Data: Units produced 21,000 Units sold 18,500 Selling price $432 Variable cost: Manufacturing cost per unit produced: Direct materials $33 Direct manufacturing labor $23 Manufacturing Overhead $62 Marketing cost per unit sold $46 Fixed cost: Manufacturing costs $1,550,000 Administrative costs $906,000 Marketing costs $1,479,000
Requirements:
1. Prepare a 2020 income statement for Horace Company using variable costing.
2. Prepare a 2020 income statement for Horace Company using absorption costing.
3. Explain the differences in operating incomes obtained in requirements 1 and 2.
4. Horace​'s management is considering implementing a bonus for the supervisors based on gross margin under absorption costing. What incentives will this bonus plan create for the​ supervisors? What modifications could Horace management make to improve such a​plan? Explain briefly.

Answers

Answer 1

Answer:

Horace Company

1. 2020 Income Statement using variable costing

Sales revenue                      $7,992,000

Variable Cost of goods sold:

Manufacturing costs            $2,183,000

Marketing cost per unit sold  $851,000

Contribution margin           $4,958,000

Fixed Costs:

Manufacturing costs $1,550,000

Administrative costs   $906,000

Marketing costs        $1,479,000

Total fixed costs =            $3,935,000

Net income =                     $1,023,000

2. 2020 Income Statement using absorption costing:

2. Sales revenue                      $7,992,000

Cost of goods sold:

Variable Manufacturing costs $2,478,000 ($118 * 21,000)

Fixed Manufacturing costs        1,550,000

Total cost of production         $4,028,000

Less Ending Inventory                 479,525

Cost of goods sold                 $3,548,475

Gross profit                            $4,443,525

Period costs:

Variable marketing costs $851,000

Fixed marketing costs     1,479,000

Administrative costs         906,000

Total period costs                $3,236,000

Net income                           $1,207,525

3. The differences that Horace obtains in the operating incomes under variable costing and absorption costing are due to the fixed manufacturing costs that are included in the ending inventory under absorption costing, making the cost of goods sold to be less and resulting in more profits. Under variable costing, the ending inventory does not include the fixed manufacturing costs.  So the cost of goods sold is higher, resulting in reduced profits.

4. A bonus for Horace's supervisors based on gross margin under absorption costing will entice supervisors to produce more and  sell less products so that the fixed costs can be carried forward.  Many products will be left in inventory at the end of the period, which is then carried forward to the following period, thus, enhancing the period's gross profit for maximum bonus for the supervisors.

Modifications that Horace management could make to improve the bonus plan is ensuring that production units do not exceed the budgeted sales units by a large margin and ensuring that ending inventory does not exceed an established limit.  This will entice the supervisors to produce according to market demand.

Explanation:

a) Data and Calculations:

Budgeted production and sales units for 2020 = 25,000

Actual production units for 2020 = 21,000

Actual sales unit for 2020 = 18,500

Ending inventory units for 2020 = 2,500

Selling price per unit = $432

Sales revenue = $7,992,000 ($432 * 18,500)

Variable cost:

Manufacturing cost per unit produced:

Direct materials                        $33

Direct manufacturing labor     $23

Manufacturing Overhead       $62 $118

Marketing cost per unit sold  $46

Total variable costs per unit $164

Fixed cost:

Manufacturing costs $1,550,000

Administrative costs   $906,000

Marketing costs        $1,479,000

Total fixed costs =   $3,935,000

1. 2020 Income Statement using variable costing

Sales revenue                      $7,992,000 ($432 * 18,500)

Variable Cost of goods sold:

Manufacturing costs            $2,183,000 ($118 * 18,500)

Marketing cost per unit sold  $851,000 ($46 * 18,500)

Contribution margin           $4,958,000 ($268 * 18,500)

Fixed Costs:

Manufacturing costs $1,550,000

Administrative costs   $906,000

Marketing costs        $1,479,000

Total fixed costs =            $3,935,000

Net income =                     $1,023,000

2. Sales revenue                      $7,992,000

Cost of goods sold:

Variable Manufacturing costs $2,478,000 ($118 * 21,000)

Fixed Manufacturing costs        1,550,000

Total cost of production         $4,028,000 (per unit = $191.81)

Less Ending Inventory                 479,525 ($191.81 * 2,500)

Cost of goods sold                 $3,548,475

Gross profit                            $4,443,525

Period costs:

Variable marketing costs $851,000

Fixed marketing costs     1,479,000

Administrative costs         906,000

Total period costs                $3,236,000

Net income                           $1,207,525


Related Questions

The journal entry to record the accrual of factory utilities is to: Multiple choice question. debit Factory Overhead and credit Utilities Payable debit Utilities Payable and credit Factory Overhead debit Factory Overhead and credit Cash debit Cash and credit Factory Overhead

Answers

Answer:

debit Factory Overhead and credit Utilities Payable

Explanation:

The journal entry to record the accrual of factory utilities is to: Debit Expense Account -  Factory Overhead and Credit Liability Account -Utilities Payable.

Find the present value of $19,000 in 11 months at 5.1% interest

Answers

Answer:

$19,886.396

Explanation:

Given :

Interest rate = 5.1% = 5.1

Principal = $19000

Period = 11 months = (11/12)year

The present value of 19000 in 11 months at 5.1% interest Can be obtained using the relation:

PV = P(1 + r)^n

PV = 19000(1 + 0.051)^(11/12)

PV = 19000(1.051)^(11/12)

PV = 19000 * 1.0466524

PV = 19886.396

Hence, the present value is $19,886.396

Suppose net exports and net capital outflow are in equilibrium in a small open economy. If foreign governments adopt expansionary fiscal policy, in the small open economy the real exchange rate ____________ and net exports ____________. g

Answers

Answer:

the small open economy the real exchange rate DEPRECIATES and net exports INCREASE.

Explanation:

If the government adopts an expansionary monetary policy, then the country's currency will depreciate since a higher interest rate will result in a lower value according to the PPP thoery. When a currency depreciates, the exports become cheaper for foreign countries, so they increase. While the imports become more expensive and they decrease.

All of the following assets require a title as proof of ownership, except: Group of answer choices Life insurance. Boat. Home. Vehicle.

Answers

Answer:

Life insurance.

Explanation:

A life insurance policy can be defined as a contract between a policyholder and an insurer, in which the insurer agrees to pay an amount of money to a specific beneficiary either upon the death of the insured person (decedent) or after a set period of time.

All of the following assets such as home, boat, vehicle require a title as proof of ownership, except a life insurance because no one person can present a proof to attest to the ownership of their life.

Simply stated, a life of an individual is abstract and as such can not be quantified or qualified by any document as a proof to be presented to another person or business entity. Thus, a life insurance cannot be used as a collateral to obtain credits or loans from a financial institution or investors.

An Uber driver faces costs for driving that include sunk costs like insurance that contribute $.50 to the average cost per mile. Yet when a rider offers to pay less than $0.50 per mile for a ride, the driver agrees because

Answers

Answer:

sunk costs like auto insurance (in this case) do not increase as driving increases

Explanation:

In the case when the uber driver faces cost for driving so the sunk cost such as insurance that contribute $0.50 but the other rider pay lower than $0.50 per mile so here the driver agrees as the sunk cost would not increased in the same way like driving rises.

Therefore the above represent the answer

In an inventory control system, the annual demand is 12,000 units, the ordering cost is GHS 30 per order and the inventory holding cost is GHS 3.00 per year. The order quantity is 1000 units and the cost per unit of the item is GHS 150. What is the total cost per year?

Answers

Answer:

Total cost per year = $1,801,860

Explanation:

Given:

Annual demand = 12,000 units

Ordering cost = $30 per order

Inventory holding cost = $3 per year

Order quantity = 1000 units

Cost per unit of the item = $150

Find:

Total cost per year

Computation:

Total cost per year = Purchase cost + Order cost + Inventory holding cost

Total cost per year = [12,000 x 150] + [12,000/1000 x 30] + [1,000/2 x 3]

Total cost per year = 1,800,000 + 360 + 1500

Total cost per year = $1,801,860

Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that at the optimal quantity for each firm. Furthermore, the quantity the firm produces in long-run equilibrium is the efficient scale. True or False: This indicates that there is a markup on marginal cost in the market for shirts. True

Answers

Answer:

Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that P = ATC, P>ATC, MR =MC, or MR>MC at the optimal quantity.  Furthermore, the quantity the firm produces in long-run equilibrium is the efficient scale. True False

This indicates that there is a markup on marginal cost in the market for shirts. True False

Explanation:

In the long run, monopolistically-competitive entities produce at a level where marginal cost and marginal revenue are equal. This makes it impossible for individual companies to sell their products at prices above the average cost. This situation means that monopolistically-competitive companies will always earn zero economic profit in the long run.

The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the:

Answers

Direct method

Explanation:

considers the problem of building railway tracks under the assumption that pieces fit exactly with no slack. Now consider the real problem, in which pieces don’t fit exactly but allow for up to 10 degrees of rotation to either side of the "proper" alignment. Explain how to formulate the problem so it could be solved by simulated annealing

Answers

Answer:

By using simulated annealing we will sample the next state, evaluate and take the next state according to the probability e^Δv

Value function ( V ) = ( a * number of gaps ) + ( b * number of misconnected pieces ) + ( c * sum of sizes of gaps )

a,b,c = adjustable

Explanation:

In order to solve this problem by simulated annealing

First condition : assuming that pieces of the railways tracks fit exactly with no slack

Assume a state configuration of 32 pieces, use of discrete operations whose function is to remove pieces and reconnect it somewhere else without slack , we will also consider a continuous operations to help change angles to real values

Second condition : considering a real problem

This condition can be considered to be a closed loop because when one joint is moved all other joints are moved, here we will consider using a heuristic function

By using simulated annealing we will sample the next state, evaluate and take the next state according to the probability e^Δv

Value function ( V ) = ( a * number of gaps ) + ( b * number of misconnected pieces ) + ( c * sum of sizes of gaps )

a,b,c = adjustable

Bloom Company management predicts that it will incur fixed costs of $251,000 and earn pretax income of $365,100 in the next period. Its expected contribution margin ratio is 61%. Required: 1. Compute the amount of total dollar sales. 2. Compute the amount of total variable costs

Answers

Answer and Explanation:

The computation is shown below;

a. The amount of the total dollar sales is

Pretax income  = Sales value - Variable cost - Fixed cost

where,  

Sales value - variable cost = Contribution margin

$365,100  = Contribution margin - $251,000          

So,  

Contribution margin = $616,100

Now  

Contribution margin = Sales value × Contribution margin ratio

$616,100 = Sales value ×  61%

So,

Sales value = $1,010,000

b. The total variable cost is

= Sales - fixed cost - pre tax income

= $1,010,000 - $251,000 - $365,100

= $393,900

A DuPont analysis is conducted using the DuPont equation, which helps to identify and analyze three important factors that drive a company’s ROE. According to the equation, which of the following factors directly affect a company’s ROE? Check all that apply. Total Assets / Total Common Equity Net Income / Sales Price per Share / Earnings per Share

Answers

Answer:

Total Assets / Total Common Equity

Explanation:

Depend upon theDu Pont Equation,

The following formula should be used  

ROE = Net profit margin × Total asset turnover × Equity multiplier

And,

ROE = (Net profit ÷ Sales) × (Sales ÷ Total Assets) × (Assets ÷ Equity)

So as per the above formula, the above answer should be considered  

A certain machine will have a cost of $25,000 (then $) six years from now. Find the PW of the machine if the real interest rate is 10% per year and the inflation rate is 5% per year using (a) constant-value dollars, and (b) then-current dollars.

Answers

Answer:

The Present Worth of the machine if the real interest rate is 10% per year and the inflation rate is 5% per year, using:

(a) constant-value dollars

= $10,518.60

(b) then-current dollars

= $10,818.65

Explanation:

a) Data and Calculations:

Cost a certain machine six years from now = $25,000

Time period = 6 years

Real interest rate = 10%

Inflation rate = 5%

Nominal interest rate = 5% (10% - 5%)

Discount factor at 10% for 6 years = 0.564

Discount factor at 5% for 6 years = 0.746

PW using:

a) Constant-value dollars = $18,650 ($25,000 * 0.746)

PW = $10,518.60 ($18,650 * 0.564)

b) Then-current dollars:

The nominal rate = 0.1 + 0.05 + (0.1 * 0.05) = 0.155

$10,818.65 ($25,000 * 0.432746)

Winston Company reported net income of $50,000 for the year. During the year, accounts receivable decreased by $7,000, accounts payable increased by $3,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is Group of answer choices $40,000. $65,000. $49,000. $45,000.

Answers

Answer:

$65000

Explanation:

Below is the calculation:

To find the net cash from the operating activity, we are required to add depreciation, accounts payable and accounts receivables.

Net income of the company = $50000

Add- expenses of depreciation = 5000

Add - Increase in accounts payable = 3000

Add - Decrease in accounts receivable = $7000

Thus net cash from operating activity =  50000 + 5000 + 3000 + 7000 = $65000

The price elasticity of demand measures: Group of answer choices how responsive consumers are in the quantity they want when consumer incomes change how responsive producers are in the quantity they produce when the price changes how responsive consumers are in the quantity they want when the price changes how responsive producers are in the quantity they produce when consumer incomes change

Answers

Answer:

how responsive consumers are in the quantity they want when the price changes

Explanation:

The price elasticity of demand is

= Percentage change in quantity demanded ÷ percentage change in demand

So based on the above formula it shows that the consumers are responsive with regard to the quantity they need at the time when the price is changed

Therefore the above represent the answer

Answer:

Price

Inelastic

Elastic

Explanation:

got it right on edg

Finisher Inc. sells merchandise of $250,000 in 2020 that includes a three-year limited warranty. Warranty costs are estimated to be 1% of sales. The company incurred actual costs of $800 in 2020 related to the warranties. a. Record the warranty accrual at the time of sale in 2020. b. Record the adjustment to the warranty accrual for actual warranty costs in 2020.

Answers

Answer: See explanation

Explanation:

a. Record the warranty accrual at the time of sale in 2020.

Debit Warranty expense = $250,000 × 1% = $2,500

Credit Warranty Liability $2,500

(To record the warranty accrual)

b. Record the adjustment to the warranty accrual for actual warranty costs in 2020.

Debit Warranty Liability $800

Credit Cash and Payables $800

Samantha Rose Inc. made a $25,000 sale on account with the following terms: 1/15, n/30. If the company uses the net method to record sales made on credit, how much should be recorded as revenue

Answers

Answer:

$24,750

Explanation:

The computation of the amount that should be recorded is shown below"

Sales on account = $25,000

Credit term = 1/15, n/30

Sales discount rate = 1%

Now  

Sales discount = Sales on account × Sales discount rate

= 25,000 × 1%

= $250

So,

Net sales = Sales- Sales discount

= $25,000 - $250

= $24,750

National Furniture Company has 25,000 shares of cumulative preferred 2% stock, $75 par and 200,000 shares of $10 par common stock. The following amounts were distributed as dividends: Year 1 $25,000 Year 2 88,000 Year 3 95,500 Determine the dividends per share for preferred and common stock for each year. If an answer is zero, enter '0'. Round all answers to two decimal places.

Answers

Answer:

Year 1

Preferred Dividend = $25,000

Common Stock Dividend  = $0

Year 2

Preferred Dividend = $37,500

Common Stock Dividend  = $50,500

Year 3

Preferred Dividend = $25,000

Common Stock Dividend  = $70,500

Explanation:

The dividends per share for preferred and common stock for each year.

Preferred Dividend

Is a fixed charge. When it is cumulative, all dividends in arrears are accumulated an paid in future when funds become sufficient before other dividends are paid.

Preferred Dividend = 25,000 x $75 x 2 % = $37,500

Common Stock Dividend

Holders of Common Stock receive their dividends after the Preferred Stock holders have received their dividends.

Calculations

Year 1

Preferred Dividend = $25,000 (owing $12,500)

Common Stock Dividend  = $0

Year 2

Preferred Dividend = $25,000 + $12,500 (owing ) = $37,500

Common Stock Dividend  = $88,000 - $37,500 = $50,500

Year 3

Preferred Dividend = $25,000

Common Stock Dividend  = $95,500 - $25,000 = $70,500

Nike has so far had $30,000,000 in losses at its shoe factory in Vietnam in 2017. The additional revenue that it will earn from producing an additional shoe is $100 while the additional cots incurred for that additional shoe is $99.99. Should Nike continue operations in that factory and produce that additional shoe

Answers

Answer: c. Yes, because the marginal revenue from producing the additional shoe is greater than the marginal costs.

Explanation:

When making financial decisions, companies abide by the principle of Sunk Costs. This means that money that has already been spent, should not have any effect on future financial decisions. The $30 million that has been lost already will therefore not be considered.

The only figures now are the additional cost and revenue. The additional revenue is more than the additional cost so this shoe should be produced because it brings in a profit of $0.01.

A farmer is considering the installation of a fuel storage system that will save $0.065 per gallon because the fuel can be purchased in bulk. The farmer uses about 20,000 gallons per year. The system will cost $10,000 to install. The annual operating and maintenance cost will be nothing in the first year but will increase by $25 each year thereafter. After ten years that the system will be used it will have a salvage value of $3,000. The Farmer
The farmer's cost of funds is 12%. What is the equivalent uniform annual benefit for the fuel storage system?Based on this analysis, should the farmer purchase the fuel storage?

Answers

Answer:

yes and because yes

Explanation:

Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $ 12,000,000 $ 14,000,000 $ 25,000,000 Average operating assets $ 3,000,000 $ 7,000,000 $ 5,000,000 Net operating income $ 600,000 $ 560,000 $ 800,000 Minimum required rate of return 14% 10% 16% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity

Answers

Answer:

1. See part 1 below for the calculations.

2. We have:

Division A's Residual Income (loss) = $180,000

Division B's Residual Income (loss) = ($140,000)

Division C's Residual Income (loss) = $0

3.a. Only Division B will probably accept the investment opportunity.

3.b. Divisions A and B will probably accept the investment opportunity.

Explanation:

Note: This question is not complete as the part 3-b of the requirement is omitted. The question is therefore completed before answering the question by providing the part 3-b as follows:

b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity?

The explanation of the answer is now provided as follows:

The following are given:

                                              Division A        Division B           Division C

Sales                                     $12,000,000     $14,000,000     $25,000,000

Average operating assets    $3,000,000      $7,000,000        $5,000,000

Net operating income             $600,000          $560,000            $800,000

Min. req'd rate of return               14%                      10%                      16%

1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover.

The relevant formulae are as follows:

Margin = Net Operating Income / Sales

Turnover = Sales / Average Operating Assets

Return on Investment = Margin * Turnover

Therefore, we have:

Division A:

Margin = $600,000 / $12,000,000 = 0.05, or 5%

Turnover = $12,000,000 / $3,000,000 = 4 times

Return on Investment = 5% * 4 = 0.20, or 20%

Division B:

Margin = $560,000 / $14,000,000 = 0.04, or 4%

Turnover = $14,000,000 / $7,000,000 = 2 times

Return on Investment = 4% * 2 = 0.08, or 8%

Division C:

Margin = $800,000 / $25,000,000 = 0.032, or 3.20%

Turnover = $25,000,000 / $ 5,000,000 = 5 times

Return on Investment = 3.2% * 5 = 0.16, or 16%

2. Compute the residual income (loss) for each division.

The following is the formula to use:

Residual Income (loss) = Net Operating Income - (Minimum Required Return * Average Operating Assets)

Therefore, we have:

Division A's Residual Income (loss) = $600,000 - (14% * $3,000,000) = $180,000

Division B's Residual Income (loss) = $560,000 - (10% * $7,000,000) = ($140,000)

Division C's Residual Income (loss) = $800,000 - (16% * $5,000,000) = $0

3-a. Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by ROI, which division or divisions will probably accept the opportunity?

If a division's Return on Investment (ROI) is less than 15%, the decision criterion is to accept the investment opportunity. Otherwise, it will be rejected. Therefore, only Division B is will probably accept the investment opportunity, based on the results of Part 1 above. Division A and C will reject it.

3-b. Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by residual income, which division or divisions will probably accept the opportunity?

The decision criterion is for a division to accept the investment opportunity if its minimum required rate of return is lower than 15%. Otherwise, it will be rejected.

Based on the information in the question, Divisions A and B will probably accept the investment opportunity. Division C will reject it.

Test Tech has preferred stock outstanding that pays an $10.85 annual dividend. It price is $125. What is the required rate of return on the preferred stock

Answers

Answer:

8.7%

Explanation:

Calculation to determine the required rate of return on the preferred stock

Using this formula

Required rate of return=Annual dividend/Price

Let plug in the formula

Required rate of return=$10.85/$125

Required rate of return=0.087*100

Required rate of return=8.7%

Therefore the required rate of return on the preferred stock is 8.7%

Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 40 billion bottles of wine were sold every year at a price of $7 per bottle. After the tax, 35 billion bottles of wine are sold every year; consumers pay $9 per bottle, and producers receive $6 per bottle (after paying the tax). The amount of the tax on a bottle of wine isper bottle. Of this amount, the burden that falls on consumers isper bottle, and the burden that falls on producers isper bottle. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.

Answers

Answer and Explanation:

The computation is shown below:

The amount of the tax for the wine bottle is

= $9 per bottle - $6 per bottle

= $3 per bottle

Before the tax, the price per bottle is $7 per bottle

The Tax burden on consumers is

= $9 - $7

= $2 per bottle

And, the tax burden on producers is

= $7 per bottle - $6 per bottle

= $1 per bottle

So, the given statement is false as the impact would remain the same whether it is for producer or consumer

Hot Shot Delivery Inc. provides the following year end data:
2020 2019
Cash $65,000 $38,000
Accounts Receivable 60,000 39,000
Merchandise Inventory 66,000 26,000
Property, Plant & Equip 219,000 154,000
Total Assets 410,000 257,000
Sales Revenue $530,000
Cost of Goods Sold 180,000
Interest Expense 30,000
Net Income 112,000
Calculate the rate of return on total assets for 2018.
a. 55.3%.
b. 52.5%.
c. 42.6%.
d. 27.3%.

Answers

Answer:

c. 42.6%

Explanation:

Average total assets = $410,000+$257,000/2

Average total assets = $667,000

Average total assets = $333,500

Net income = $112,000

Interest expenses = $30,000

Return on total assets = Net income + Interest expenses / Average total assets

Return on total assets = $112,000 + $30,000 / $333,500

Return on total assets = 0.42388060

Return on total assets = 42.39%

The GASB requires governments to present budgetary comparisons in their external annual financial statements (either as an additional financial statement or as schedules in required supplementary information). What does the GASB require these statements/schedules to include

Answers

Answer:

The GASB requires these statements/schedules to include:

1. budgetary comparisons for the activities that are reported in the general fund and each major special revenue fund.

2. schedules showing the original budget, the final appropriations budget, and actual inflows, outflows, and balances on a budgetary basis.

Explanation:

The purpose of GASB section 34 is to improve the financial transparency of state and local governments' fiscal reports.  It also increases governmental accountability, making it possible for citizens to participate in deciding operating budgets of their states and local governments.

In the liquidation of a partnership, any partner who has a capital deficiency Group of answer choices has a personal debt to the partnership for the amount of the deficiency. is automatically terminated as a partner. will receive a cash distribution only on the basis of his or her income-sharing ratio. is not obligated to make up the capital deficiency.

Answers

Answer: A. has a personal debt to the partnership for the amount of the deficiency

Explanation:

Partnership is a form of business whereby two or more people come together and manage an organization together.

Capital deficiency refers to when there's a debit balance in the capital account of a partner after the allocation of gain or loss.

In the liquidation of a partnership, any partner who has a capital deficiency has a personal debt to the partnership for the amount of the deficiency.

Furniture, Inc., estimates the following number of mattress sales for the first four months of 2019: Month Sales January 29,000 February 40,800 March 34,600 April 36,200 Finished goods inventory at the end of December is 7,000 units. Target ending finished goods inventory is 20% of the next month's sales. How many mattresses need to be produced in January 2019?
Select one:
a. 27,800 mattresses
b. 41,800 mattresses
c. 30,160 mattresses
d. 44,160 mattresses

Answers

Answer:

c. 30,160 mattresses

Explanation:

At the beginning of January, we had 7,000 units as opening stock inventory( which was the ending inventory in December), which means out of the planned sales in January 7,000 units are already available

The balance of January sales to be produced in January is the excess of planned sales of 29,000 units over the beginning inventory of 9,000 units

January sales items to be produced in January=29000-7000

January sales items to be produced in January=22,000

Also, we need to produce 20% of February sales in January which would serve as the closing inventory

total production in January=22,000+(40,800*20%)

total production in January=. 30,160 mattresses

Assume Peanut Butter and Jelly are two complement products. For both markets explain what happens for an increase in the Supply of Jelly to both the Peanut butter and Jelly markets.

Answers

Answer:

Complementary goods are goods that are consumed together

If the supply of Jelly increases, the supply curve for jelly shifts rightward. As a result of the rightward shift, price decreases and quantity increases.

Because jelly and peanut butter are complements, an increase in the supply leads to an increase in the supply of peanut butter.

the supply curve of peanut butter shifts outward also. As a result of the rightward shift, price decreases and quantity increases.

Explanation:

A complimentary service or product is one that is employed in connection with just another good or service. When ingested solo, the complement product is usually of little or no value. If a commodity has a positive connection with another product, it is considered complimentary.

The supply curve for jelly goes rightward as the supply of jelly increases. Price drops and quantity volume increases of the rightward shift. Because jelly and peanut butter complement one other, an increase in jelly availability leads to an increase in peanut butter supply. Peanut butter's supply curve is also shifting outward. Price decreases and quantity increases as a result of the rightward shift.

The cross-price elasticity of demand is equal to 2 and larger than 1, indicating that demand is elastic and positive since wheat and rice are complimentary items, and as the price of wheat rises, so does the demand for rice.

To know more about the complementary goods, refer to the link below:

https://brainly.com/question/1240785

Theresa is considering starting a small business. She plans to purchase equipment costing $145,000. Rent on the building used by the business will be $26,000 per year while other operating costs will total $30,000 per year. A market research specialist estimates that Theresa's annual sales from the business will amount to $80,000. Theresa plans to operate the business for 6 years. Disregarding the effects of taxes, what will be the amount of annual net cash flow generated by the business?
A) $24,000
B) $56,000
C) $80,000
D) None of these answers is correct.

Answers

C

Answer: the answer is (C)

How jse reported the negative impact of the coronavirus on the economic conditions​

Answers

Answer:

C

Explanation:

sorry if im wrong tried my best

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases. You suspect that _____ Blu-ray players shifts to the _____. demand for; left supply of; left demand for; right supply of; right

Answers

Answer:

supply of; right

Explanation:

When the supply curve shifts rightward, there would be a rightward shift of the supply curve. As a result of the rightward shift, supply would increase and the price falls.

When the price of a good falls, the quantity demanded increases. This is in line with the law of demand.

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Thus, when the price of blue ray players fall, there would be an increase in the quantity of demanded. there would a movement down along the demand curve.

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