Answer:
i am sooooooo sorry im new and i need point and agian i'm so sorry
Explanation:
To attain the lowest possible labor costs per pair produced at each production site, the corporation must minimize labor costs per pair produced at each of its plants.
What is the training objective of production workers?The overarching goal of firm management should be to obtain the lowest possible labor costs per pair produced at each production facility in controlling production worker remuneration and expenditures for best practice training.
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define foreclosure economics.
Answer:
Foreclosure is the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property
Robert, a highly experienced software engineer, joins a new company as the manager of a large group of employees. In his first meeting with the employees of the new organization, he explains his expectations on the behavior of employees. He also lets the employees know that noncompliance with his norms will result in withholding the rewards that they receive. Which of the following types of power is Robert using here?
a. reward
b. transformational
c. referent
d. coercive
Answer:
reward, maybe even referent
Explanation:
Robert is using rewarding to let people know that they need to work or they won't be rewarded.
Beck Manufacturing reports the following information in T-account form for 2019. Raw Materials Inventory Begin. Inv. 11,600 Purchases 57,000 Avail. for use 68,600 DM used 48,000 End. Inv. 20,600 Work in Process Inventory Begin. Inv. 16,000 DM used 48,000 Direct labor 31,100 Overhead 57,000 Manuf. costs 152,100 Cost of goods manuf. 138,200 End. Inv. 13,900 Finished Goods Inventory Begin. Inv. 17,200 Cost of goods manuf. 138,200 Avail. for sale 155,400 Cost of Goods Sold 136,500 End. Inv. 18,900 Required: 1. Prepare the schedule of cost of goods manufactured for the year. 2. Compute cost of goods sold for the year.
Answer:
Beck Manufacturing
1. Schedule of the Cost of Goods Manufactured for the year:
Beginning WIP Inventory 16,000
Direct Materials used 48,000
Direct labor 31,100
Overhead applied 57,000
Total manufacturing costs 152,100
Less Ending WIP Inventory 13,900
Cost of goods manufactured 138,200
2. Cost of goods sold for the year:
Beginning Finished Goods 17,200
Cost of goods manufactured 138,200
Goods available for sale 155,400
Less Ending Finished Goods 18,900
Cost of Goods Sold 136,500
Explanation:
a) Data and Calculations:
T-account form for 2019.
Raw Materials Inventory
Account Title Debit Credit
Begin. Inv. 11,600
Purchases 57,000
DM used 48,000
End. Inv. 20,600
Avail. for use 68,600 68,600
Work in Process Inventory
Account Title Debit Credit
Begin. Inv. 16,000
DM used 48,000
Direct labor 31,100
Overhead 57,000
Cost of goods manuf. 138,200
End. Inv. 13,900
Manuf. costs 152,100 152,100
Finished Goods Inventory
Account Title Debit Credit
Begin. Inv. 17,200
Cost of goods
manufacture 138,200
Cost of Goods Sold 136,500
End. Inv. 18,900
Avail. for sale 155,400 155,400
Carey Company owns a plot of land on which burried toxic wastes have been discovered. Since it will require several years and a considerable sum of money before the property is fully detoxified and capable of generating revenues, Carey wishes to sell the land now. It has located two potenital buyers. Buyer A, who is willing to pay $480,000 for the land now, or Buyer B, who is willing to make 20 annual payments of $75,000 each, with the first payment to be made 5 years from today. Assuming that the appropraite rate of interest is 9%, wo whom should Carey sell the land. Show calculations.
Answer:
Carey should accept buyer A's offer
Explanation:
we need to compare the present values of both proposals:
Present value of proposal A = $480,000
Present value of proposal B:
present value of annuity in 5 years = $75,000 x 9.1285 (PVIFA, 9%, 20 periods) = $684,637.50
present value (today) = $684,637.50 / (1 + 9%)⁵ = $444,967.40
In this simulation, theoretical utilization of the intensive care unit (ICU) is calculated as the flow rate of patients that arrive for service at the ICU in a given unit of time divided by the ICU’s capacity to serve customers in that same unit of time. You can think about this as demand/capacity. What is the theoretical utilization of the ICU if the mean inter-arrival time is 4 hour(s), the mean length of stay is 6 hour(s), and there are 4 beds in the ICU?
Answer:
The theoretical utilization of the ICU is:
= 0.25 or 25%
Explanation:
Inter-arrival time or flow rate of patients that arrive for service at the ICU = 4 hours
Mean length of stay = 6 hours
ICU's capacity to serve customers in 6 hours = 4*6 = 24 bed-hours
Total demand = 6 hours
Therefore, the theoretical utilization = flow rate of patients that arrive for service at the ICU in a given unit of time divided by ICU's capacity to serve customers in that same unit of time
= 6 hours/24 bed-hours
= 0.25
One reason critics think advertising is wasteful is that: a. advertising is silent about things like product quality. b. businesses use deceptive methods of advertising which is harmful for consumers. c. large sums of money are spent on advertising that produces no consumer benefit. d. most ads are distasteful and send the wrong messages to consumers.
Answer:
c. large sums of money are spent on advertising that produces no consumer benefit
Explanation:
Critics consider advertising to be a waste because they believe that there is a large amount of financial resources being spent on advertising that will not be converted into benefits for the consumer, that is, they believe that it is a lot of money spent on communication marketing that it should be spent on product development, for example, in the form of converting investments into physical benefits that add greater value to the product and greater satisfaction for the consumer.
But a company that wants to become competitive and well positioned in the market, must allocate financial resources so that both things can be carried out, because advertising is extremely necessary to attract and retain potential consumers, since there is currently a great offer of them products available on the market and the company needs to develop a strategy that attracts consumers to its product, which can occur through well-developed advertising that generates consumer engagement and identification with the offered product.
On December 30, 2017, the Board of Directors of Blue Manufacturing, Inc. committed to a plan to discontinue the operations of its Owl division. Blue estimated that Owl's 2018 operating loss would be $750,000 and that the fair value of Owl's facilities was $450,000 less than their carrying amounts. The estimate for the 2018 operating loss turned out to be correct. Owl's 2017 operating loss was $1,000,000, and the division was actually sold for $400,000 less than its carrying amount in 2018. Blue's effective tax rate is 35%. In its 2017 income statement, what amount should Blue report as loss from discontinued operations
Answer:
$942,500
Explanation:
Calculation to determine what amount should Blue report as loss from discontinued operations
Using this formula
Loss from discontinued operations=[(Operating loss+Fair value)*Tax rate]
Let plug in the formula
Loss from discontinued operations=[($1,000,000+ $450,000)* (100% - 35% tax rate)]
Loss from discontinued operations=$1,450,0000*65%
Loss from discontinued operations= $942,500
Therefore what amount should Blue report as loss from discontinued operations is $942,500
Companies that depend upon and highly value the contribution of intellectual capital to good strategy execution, generally do not:___________.
A. provide their employees with challenging, interesting, and skill-stretching assignments and also rotating them through jobs that not only have great content but also span functional and geographic boundaries.
B. implement rewards and benefits programs such as promotions, salary increases, performance bonuses, stock options, and other perks.
C. invest time and money into coaching underperformers and benchwarmers to improve their skills and capabilities.
D. encourage their employees to challenge existing ways of doing things, to be creative and innovative in proposing better ways of operating, and to push their ideas for new products or businesses.
E. foster a stimulating and engaging work environment so that their employees will consider the company a great place to work.
Answer:
Option c: Invest time and money into coaching underperformers and benchwarmers to improve their skills and capabilities
Explanation:
The staffing the organization, building core competencies and competitive capabilities, structuring of the organization and work effort of everyone involved is important to growth of companies. Firms or organizations will not employ individuals who will not contribute to its growth. They rather employ capable hands and intelligent people to work and move the country forward. The requirements of a Good Strategy Execution demands team effort. All managers have strategy executing responsiblility in their areas of authority, and all employees are active participants in the stategy execution process.
Assume the cholesterol levels in a certain population have mean µ= 200 and standard deviation σ = 24. The cholesterol levels for a random sample of n = 9 individuals are measured and the sample mean x is determined. What is the z-score for a sample mean x = 180?
a. –3.75
b. –2.50
c. −0.83
d. 2.50
The required z-score for the given sample mean would be -0.83. which is the correct answer would be an option (C).
What is Z -score?A Z-score is defined as the fractional representation of data point to the mean using standard deviations.
Given the mean µ= 200 and standard deviation σ = 24. The cholesterol levels for a random sample of n = 9 individuals are measured sample mean is 180.
To determine the Z-score for the given sample mean
⇒ z-score = (X-ц )/σ
Here,
ц = 200
σ = 24
X = 180
Substitute the values in the above formula,
⇒ z-score = (180 - 200)/24
⇒ z-score = -20 /24
⇒ z-score = -0.833
Therefore, the required z-score for the given sample mean would be -0.83.
Hence, the correct answer would be an option (C).
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Explain why effective critical thinking is important for high self-esteem?
Answer:
Critical thinking help you to be active and love what you do. Therefore it call critical thinking
PLEASE , chart this out !
Answer:
Purchases
Date Qty Unit Cost Total Cost
11 12 $18 $216
21 9 $15 $135
Cost of Sales
Date Qty Unit Cost Total Cost
14
21 $16 $336
5 $18 $90
25
7 $18 $126
4 $15 $60
Total $612
Inventory
Qty Unit Cost Total Cost
5 $15 $75
Total $75
Explanation:
FIFO method assumes that the units to arrive first, will be sold first. Also note that the perpetual Inventory method is used. This means the cost of sales and inventory value is calculated after every transaction.
So with FIFO , Cost of Sales will be calculated on earlier prices (old prices) whilst Inventory will be valued at recent (later prices) prices.
Bob Lee, a division manager for JTCL Ltd has been given a mandate to control costs. Bob’s division is called the Murray Division. After taking an Operations Management class he remembered that a good place to start would be to get a current measure of his division's productivity. The Murray Division is comprised of 5 employees who are paid $10 hourly and work 40 hours per week. The division used 75 pounds of material during the week he is studying. Each week JTCL Ltd assigns an overhead charge of $1,000 to the Murray Division. Material costs $10 per pound. The division completed 9000 units of product last week. Which of the following best describes last week’s labor productivity at the Murray Division?
a. 45 units per labor hour
b. 4.5 units per labor hour
c. 3.75 units per labor hour
d. 45 units per labor hour
e. 37.5 units per labor hour
Answer:
a. 45 units per labor hour.
Explanation:
No. of units produced is 9000 units
No. of labor hours per week is 40 hours
There are total 5 labors so the hours per labor is 40/ 5 = 8 hours per labor.
No. of units produced by each labor is 9000 / 5 = 1800 units per labor
The unit per labor hour is 1800 / 8 hours = 225 units
These units are further distributed among 5 workers so each labor has produced 225 / 5 = 45 units per week.
The last week’s labor productivity at the Murray Division is option a. 45 units per labor hour.
Calculation of last week’s labor productivity:Since the No. of units produced is 9000 units and the No. of labor hours per week is 40 hours and there are total 5 laborers
so the hours per labor should be = 40/ 5 = 8 hours per labor.
Now
No. of units produced by each labor should be
= 9000 / 5
= 1800 units per labor
Now
The unit per labor hour is
= 1800 / 8 hours
= 225 units
Since there are 5 workers so per worker it should be
= 225 / 5
= 45 units per week.
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Assume that a $1,000,000 par value, semiannual coupon US Treasury note with three years to maturity has a coupon rate of 3%. The yield to maturity (YTM) of the bond is 11.00%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note:$960,214.55$504,112.64$680,151.97$800,178.79
Answer: $800,178.79
Explanation:
This is a semi-annual coupon bond so convert rate and period to semi annual rates.
Coupon payment = 3% * 1,000,000 * 1/2 years
= $15,000
YTM = 11%/2 = 5.5%
Number of periods = 3 years * 2 = 6 semi annual periods
Value of Bond = Present value of coupon payments + Present value of par
= 15,000 * ( 1 - ( 1 + 5.5%)⁻⁶) / 5.5%) + 1,000,000 / (1 + 5.5%)⁶
= 74,932.9546296555 + 725,245.8330245964
= $800,178.79
Orion Flour Mills purchased a new machine and made the following expenditures:
Purchase price $55,000
Sales tax 5,000
Shipment of machine 800
Insurance on the machine for the first year 500
Installation of machine 1,600
The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash.
Required:
Record the above expenditures for the new machine.
Answer:
Dr Equipment 62400
Dr Prepaid Insurance 500
Cr Cash 2900
Cr Accounts Payable 60,000
Explanation:
Preparation of the journal entry to Record the above expenditures for the new machine.
Dr Equipment 62400
Dr Prepaid Insurance 500
Cr Cash 2900
Cr Accounts Payable 60,000
(62,400+500-2900)
Equipment:
Purchase price ($55,000) + Sales tax (5,000) + Shipping (800) + Installation (1,600) =
Total cost 62400
Cash:
Shipment of machine (800) + Insurance on the machine ((500)) +Installation of the machine (1,600) = 2900
Jack and Jill are the only two residents in a neighbourhood, and they would like to hire a security guard. The value of a security guard is $50 per month to Jack and $90 per month to Jill. Irrespective of who pays the guard, the guard will protect the entire neighbourhood and charge $120 per month for the service. Suppose Jack earns $4,000 per month and Jill earns $8,000 per month.
a. With a proportional tax of 1 percent on income, how much would Jack and Jill pay, and would it be enough to pay for the security guard?
Jack would pay $ _____.
Jill would pay $ _____.
This tax _____ be enough to pay for the security guard.
b. Suppose instead that Jack proposes a payment scheme under which Jack and Jill would each receive the same net benefit from hiring the guard. How much would Jack and Jill pay now?
Jack would pay $ _____.
Jill would pay $ _____.
Would both Jack and Jill vote for this scheme? _____
Answer:
Jack and Jill
a. With a proportional tax of 1 percent on income, it would be enough to pay for the security guard $120.
Jack would pay $ __40___.
Jill would pay $ __80___.
This tax _will____ be enough to pay for the security guard.
b. Based on net benefit from the guard:
Jack would pay $ __43___.
Jill would pay $ _ 77____.
Would both Jack and Jill vote for this scheme? __No___ Jack will feel cheated by Jill in the sum of $3. Jack will likely prefer the 1% based on income.
Explanation:
a) Data and Calculations:
Value of a security guard for Jack = $50 per month
Value of a security guard for Jill = $90 per month
Total value of a security guard for both Jack and Jill = $140 ($50 + $90)
Cost of hiring a guard = $120 per month
Jack's monthly earnings = $4,000
Jill's monthly earnings = $8,000
Total monthly earnings for both Jack and Jill = $12,000
a. Proportional tax of 1 percent on income = $120 ($12,000 * 1%)
Jack will pay $4,000 * 1% = $40
Jill will pay $8,000 * 1% = $80
Total = $120
b. Net benefit scheme:
Jack will pay $50/$140 * $120 = $43
Jill will pay $90/$140 * $120 = $77
Total = $120
What method can help to avoid typos when writing a function that includes a range?
Answer:
clicking and dragging to select the range
A business must decide whether to open a new office in China. If it opens the
branch, it will increase its chances of selling a high volume of its products in
China. On the other hand, the business will have to spend a lot of money to
make the branch operational.
What would be an opportunity cost for the business if it chooses not to open
the new branch in China?
O A. The business would increase its marginal benefits on each
product it makes
O B. The business would lose the chance to make more money in
China.
O C. The business would have to open a new branch in a different
country
O D. The business would be able to use the money it saves on other
projects.
Liberty Corporation was authorized to issue 300,000 shares of $5 par value common stock. Liberty issued 60,000 shares of common stock on January 15, 2020, at $15 per share. Required a. Record the entry on June 30, 2020, for purchase of 6,600 common shares for the treasury at $18 per share. b. Record the entry on September 20, 2020, for sale of 2,400 treasury shares at $21 per share. c. Record the entry on November 3, 2020, for sale of 1,500 treasury shares at $17 per share.
Answer:
Liberty Corporation
Journal Entries:
January 15, 2020:
Debit Cash $900,000
Credit Common stock $300,000
Credit Additional Paid-in Capital $600,000
To record the issue of 60,000 shares of common stock at $15 per share.
a) June 30, 2020:
Debit Treasury Stock $33,000
Debit Additional Paid-in Capital $85,800
Credit Cash $118,800
To record the purchase of 6,600 treasury shares at $18 per share.
b) September 20, 2020:
Debit Cash $50,400
Credit Treasury Stock $12,000
Credit Additional Paid-in Capital $38,400
To record the sale of 2,400 treasury shares at $21 per share.
c) November 3, 2020:
Debit Cash $25,500
Credit Treasury Stock $7,500
Credit Additional Paid-in Capital $18,000
To record the sale of 1,500 treasury shares at $17 per share.
Explanation:
a) Data and Analysis:
Authorized common stock share capital of 300,000 at $5 = $1,500,000
January 15, 2020: Issued 60,000 shares at $15 per share:
Cash $900,000 Common stock $300,000 Additional Paid-in Capital $600,000
June 30, 2020: Purchased 6,600 for the treasury shares at $18 per share:
Treasury Stock $33,000 Additional Paid-in Capital $85,800 Cash $118,800
September 20, 2020: Sale of 2,400 treasury shares at $21 per share:
Cash $50,400 Treasury Stock $12,000 Additional Paid-in Capital $38,400
November 3, 2020: Sale of 1,500 treasury shares at $17 per share:
Cash $25,500 Treasury Stock $7,500 Additional Paid-in Capital $18,000
A US company makes furniture and uses large amounts of exotic woods. How will quotas on imported wood affect he price of the product and the
marketing plans?
Answer: See explanation
Explanation:
A quota is simply referred to as a limited quantity of a product that can either be produced in a country or imported or exported under official controls. A quota is usually done to limit importation of goods and encourage local production.
Since the US company makes use of large amount of exotic goods which are usually imported, this will bring about a reduction in the supply of furniture as there'll be decrease in wood.
This will hence lead to an increase in price of the available furniture. This will certainly have a negative effect on the marketing plan of the company.
The country of Lessidinia has a tax system identical to that of the United States. Suppose someone in Lessidinia bought a parcel of land for 20,000 foci (the local currency) in 1960 when the price index equaled 100. In 2002, the person sold the land for 100,000 foci, and the price index equaled 600. The tax rate on nominal gains was 20 percent. Compute the taxes on the nominal gain and the change in the real value of the land in terms of 2002 prices to find the after-tax real rate of capital gain.
Answer: -30%
Explanation:
The Nominal gain is:
= 100,000 - 20,000
= 80,000 foci
Tax on nominal gain:
= 20% * 80,000
= 16,000 foci
After tax nominal value of land:
= 100,000 - 16,000
= 84,000 foci
The real value given the price index is:
= 84,000 / 600 * 100
= 14,000 foci
After tax real rate of cap. gain:
= (14,000 - 20,000) / 20,000
= -30%
Spiess Corporation has two major business segments--Apparel and Accessories. Data concerning those segments for December appear below: Sales revenues, Apparel $ 775,000 Variable expenses, Apparel $ 314,000 Traceable fixed expenses, Apparel $ 201,000 Sales revenues, Accessories $ 799,000 Variable expenses, Accessories $ 425,000 Traceable fixed expenses, Accessories $ 128,000 Common fixed expenses totaled $401,000 and were allocated as follows: $172,000 to the Apparel business segment and $229,000 to the Accessories business segment. Required: Prepare a segmented income statement in the contribution format for the company.
Answer:
Spiess Corporation
The segmented income statement in the contribution format for December:
Apparel Accessories Total
Sales revenues, $ 775,000 $ 799,000 $1,574,000
Variable expenses, 314,000 425,000 739,000
Contribution margin $461,000 $374,000 $835,000
Traceable fixed expenses, 201,000 128,000 329,000
Common fixed expenses 172,000 229,000 401,000
Total expenses $373,000 $357,000 $730,000
Net income $88,000 $17,000 $105,000
Explanation:
a) Data and Calculations:
Apparel Accessories
Sales revenues, $ 775,000 $ 799,000
Variable expenses, 314,000 425,000
Traceable fixed expenses, 201,000 128,000
Common fixed expenses 172,000 229,000
b)Spiess' segmented income statement presents the revenues and costs according to the business segments to enable the managers understand how their specific segments are performing vis-a-vis others in Spiess Corporation. It serves as a managerial tool for business insights.
from the video "the best stats you've ever seen "
what are some of the variables that rosling's graphs analyze? why are these factors important?
Answer:
michael jackson it about life
Explanation:
Adjustment for Accrued Expense
Joos Realty Co. pays weekly salaries of $17,250 on Friday for a five-day workweek ending on that day. Journalize the necessary adjusting entry assuming that the accounting period ends on Tuesday.
If an amount box does not require an entry, leave it blank. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6
Answer and Explanation:
The adjusting entry is shown below:
Salary expense Dr ($17,250 ÷ 5 days × 2 days) $6,900
To Salary payable $6,900
(Being salary expense is recorded)
here salary expense is debited as it increased the expense and credited the salary payable as it also increased the liabilities
The Jamison Company's inventory was destroyed on July 4, 2016, when its warehouse caught on fire early in the morning. Inventory was totally destroyed. The accounting records, which were located in a fireproof vault, contained the following information: Sales (1/1/16 through 7/3/16)$240,000 Purchases (1/1/16 through 7/3/16)180,000 Inventory (1/1/16)45,000 Gross profit ratio25% of cost Using the gross profit method, what is the estimated cost of the inventory that was destroyed by the fire
Answer:
$15,000
Explanation:
With regards to the above information, the estimated cost of inventory that was destroyed by fire is computed as
= [Sales - (Purchases + Inventory)]
Given that;
Sales 1/1/16 through 7/3/16 = $240,000
Purchases 1/1/16 through 7/3/16 = $180,000
Inventory 1/1/16 = $45,000
= [$240,000 - ($180,000 + $45,000)]
= $240,000 - $225,000
= $15,000
The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $400,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 1 Year 2 Year 3 Year 4 $157,452.975 / $157,452.975/ $157,452.975/ $157,452.975 The appropriate discount rate for this project is 15%. The internal rate of return (IRR) for this project is closest to ________.
Answer:
21%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-400,000.
Cash flow in year 1 - 4 = $157,452.975
IRR = 21%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Blair Madison Co. issues $2.4 million of new stock and pays $331,000 in cash dividends during the year. In addition, the company took advantage of falling interest rates to borrow $1.64 million in a new bond issue and paid off existing bonds with a face value of $2.70 million. The company bought 514 of another company's $1,140 bonds at a $114,000 premium. The net cash flow provided by financing activities is:
Answer: $1,009,000
Explanation:
Based on the information given, the net cash flow provided by financing activities will be:
New stock issued = $2,400,000
Add: New bond issued = $1,640,000
Less: Cash dividend = $331,000
Less: Existing bonds paid = $2,700,000
Net cash flow = $1,009,000
Harry was on the phone negotiating the terms of a contract for the purchase of ball caps containing his university's logo with All Logos, LLC. They had agreed on the quantity (1200) and price ($2/cap), but could not agree on the delivery date, so Harry hung up. A few days later, Harry received an invoice in the mail, billing him for the caps, and advising that they would be shipped in 30 days' time. Under the UCC, has a contract been formed?
Answer: d. No, a contract has not been formed, since Harry has not signed a contract for the goods.
Explanation:
The Uniform Commercial Code (UCC) utilizes the Statute of Frauds which states that contracts for goods worth over $500 in value are to be signed for them to be valid.
The goods here are worth:
= 1,200 * 2
= $2,400
This contract is well worth over the $500 required for the contract to be signed which means that as Harry did not sign the contract, there is no contract.
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year.
Cash Receipts Cash payments
January $528,000 $473,700
February 405,000 350,700
March 470,000 536,000
According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $160,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $40,000 on the last day of each month. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1.
Required:
Prepare monthly cash budgets for January, February, and March.
Answer:
Ending Cash Balance as are follows:
January = $40,000
February = $67,535
March = $40,000
Also, Loan Balance End of Month as follows:
January = $26,500
February = $0
March = $38,465
Explanation:
Note: See the attached excel file for the cash budget.
In the attached excel file, the following calculations are made:
January loan repayment = January Preliminary cash - January Interest expense - Minimum required cash balance = $94,300 - $800 - $40,000 = $53,500
February Loan repayment = January Loan Balance End of the Month = $26,500
March Additional Loan = Minimum required cash balance - March Preliminary cash balance = $40,000 - $1,535 = $38,465
From the attached excel file, we have Ending Cash Balance as follows:
January = $40,000
February = $67,535
March = $40,000
And also, Loan Balance End of Month as follows:
January = $26,500
February = $0
March = $38,465
Vaughn Manufacturing records purchases at net amounts. On May 5 Vaughn purchased merchandise on account, $79000, terms 2/10, n/30. Vaughn returned $6700 of the May 5 purchase and received credit on account. At May 31 the balance had not been paid. The amount to be recorded as a purchase return is
Answer:
Vaughn Manufacturing
Purchases at net value ($79000-2%) $77,420.00
Less: Purchase return ($6700-2%) $6,566.00
Net payable $70,854.00
The amount to be recorded as a purchase return is $6,566. When net method is used all purchase is recorded assuming discount will be availed. Similarly when goods are returned that amount is also adjusted with discount.
Aqua Corporation uses the weighted average method in its process costing system. Cost data for its work in process department follow:
Materials Conversion
Beginning work in process $67,000 $48,000
Costs added during the period $125,000 $225,000
Assuming equivalent units of production for materials are 90,000 and for conversion are 20,000, the cost per equivalent unit for materials during the period is closest to: ________
a. $3.89
b. $1.75
c. $1.39
d. $2.13
Answer:
See below
Explanation:
The cost per equivalent unit for materials during the period is closest is computed as;
Beginning work in process
$67,000
Add:
Costs added during the period
$125,000
Balance
$192,000
÷
Units of production for materials
90,000
= $2.13
