Answer:
B. False
Explanation:
Since information technology contains all the types of hardware that the firm should be required for attaining the objectives of the business and on the other hand, the information system contains the decision making that should be improved from time to time not the software & the business processes
So as per the given situation, the given statement is false
Hence, the correct option is b.
Kingston Company purchased a piece of equipment on January 1, 2015. The equipment cost $200,000 and had an estimated life of 8 years and a salvage value of $25,000. What was the depreciation expense for the asset for 2016 under the double-declining-balance method
Answer:
Annual depreciation= $32,812.5
Explanation:
Giving the following information:
The equipment cost $200,000 and had an estimated life of 8 years and a salvage value of $25,000.
To calculate the annual depreciation expense, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
2015:
Annual depreciation= 2*[(200,000 - 25,000) / 8]
Annual depreciation= $43,750
2016:
Annual depreciation= 2*[(175,000 - 43,750) / 8]
Annual depreciation= $32,812.5
At the beginning of the current year, Wilson Corporation had 200,000 shares of $1 par common stock outstanding and had retained earnings of $4,800,000. During the year, the company earned $1,675,000 and paid a year-end cash dividend of $3 per share. What was Wilson Corporation's retained earnings at the end of the year
Answer:
$5,875,000
Explanation:
Calculation to determine What was Wilson Corporation's retained earnings at the end of the year?
Ending retained earnings =[1,675,000-(200,000 x 3 )]+4,800,000
Ending retained earnings=(1,675,000 - 600,000 )+4,800,000
Ending retained earnings=1,075,000 + 4,800,000
Ending retained earnings = 5,875,000
Therefore Wilson Corporation's retained earnings at the end of the year is $5,875,000
ABC company manufactures two products in one process. Joint processing costs up to the split-off point total $33,600 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below:
Product X Product Y Total
Allocated joint processing costs $16,800 $16,800 $33,600
Sales value at split-off point $24,000 $24,000 $48,000
Costs of further processing $15,000 $18,700 $33,700
Sales value after further processing $35,500 $45,100 $80,600
What is the financial advantage (disadvantage) for the company of processing Product X beyond the split-off point?
a. ($3,500)
b. $27,700
c. $20,500
d. $3,700
Answer:
a. ($3,500)
Explanation:
Particulars for Product X Amount
Sales value after further processing $35,500
Less: Sales value at split-off point $24,000
Total incremental revenue $11,500
Less: Total incremental processing costs $15,000
Financial (disadvantage) of further processing ($3,500)
So, the financial disadvantage for the company of processing Product X beyond the split-off point is $3,500.
Barney Company makes and sells stuffed animals. One product, Michael Bears, sells for $28 per bear. Michael Bears have fixed costs of $100,000 per month and a variable cost of $12 per bear. How many Michael Bears must be produced and sold each month to break even
Answer:
6,250 units
Explanation:
The computation of the number of units that should be sold and produced in order to break even is shown below:
as we know that
Break even point = Fixed cost ÷Contribution margin per unit
Here
Contribution margin per unit = Selling price - Variable costs
= $28 - $12
= $16
So, the breakeven is
= $100,000 ÷ $16
= 6,250 units
YZ Manufacturing uses a normal costing system and had the following data available for 2018: Direct materials purchased on account $116,000 Direct materials requisitioned 65,000 Direct labor cost incurred 102,000 Factory overhead incurred 112,000 Cost of goods manufactured 230,000 Cost of goods sold 198,000 Beginning direct materials inventory 20,000 Beginning WIP inventory 50,000 Beginning finished goods inventory 43,000 Overhead application rate, as a percent of direct-labor costs 116 percent The ending balance of finished goods inventory is ________.
Answer:
the ending balance of the finished goods inventory is $75,000
Explanation:
The computation of the ending balance of the finished goods inventory is shown below:
Beginning finished goods $43,000
Add: Cost of goods manufactured $230,000
Less: Cost of goods sold -$198,000
Ending finished goods inventory $75,000
hence, the ending balance of the finished goods inventory is $75,000
Chun-Li is evaluating an investment that will provide the following returns at the end of each of the following years: year 1, $12,500; year 2, $10,000; year 3, $7,500; year 4, $5,000; year 5, $2,500; year 6, $0; and year 7, $12,500. Chun-Li believes that she should earn an annual rate of 7.5 percent on this investment. How much should Chun-Li pay for this investment
Answer:
39,338.27
Explanation:
The amount he would be willing to pay can be determined by calculating the present value of the cash flows
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = 12,500
Cash flow in year 2 = 10,000
Cash flow in year 3 = 7500
Cash flow in year 4 = 5000
Cash flow in year 5 = 2500
Cash flow in year 6 = 0
Cash flow in year 7 = 12500
I = 7.5
To find the PV 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 NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
An aging of a company's accounts receivable indicates that $8400 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $4820 credit balance, the adjustment to record bad debts for the period will require a
Answer: Debit to bad debt expense for $3580.
Explanation:
Based on the information given, the bad debt expense will be:
= Desired balance - Actual balance before adjustment
= $8400 - $4820
= $3580
Based on the above, the journal entry will be:
Debit Bad debt expense $3580
Credit Allowance for uncollectible $3580
What will happen to the Canadian dollar, according to the purchasing power parity, if an ounce of silver is priced at $17 in the US but can be purchased in Canada for CAD $32 with an exchange rate of $1
Answer: c. It is overvalued and should lose value against the U.S. dollar over time.
Explanation:
The Purchasing power parity states that prices should be the same in two countries when the price is adjusted for changes in exchange rate.
The exchange rate here is $1 so the prices should be the same.
Seeing as the prices are not the same, the exchange country that has the more expensive price will have to decrease in value overtime because its currency is overvalued which is why it is charging so high.
Once the value depreciates, it will then have the same price as the price in the U.S. when the price is adjusted for exchange rate differences.
A new manufacturing machine is expected to cost $278,000, have an eight-year life, and a $30,000 salvage value. The machine will yield an annual incremental after-tax income of $35,000 after deducting the straight-line depreciation. Compute the accounting rate of return for the investment. a. 22.7%. b. 23.4%. c. 46.9%. d. 12.2%.
Answer:
D
Explanation:
Accounting rate of return = Average net income / cost of investment
35,000 / 278,000 = 12.2%
The entry to record the amortization of a patent would include a debit to __________ and a credit to __________. Amortization Expense; Patents Amortization Expense; Accumulated Amortization Patents; Accumulated Amortization Patents Expense; Accumulated Amortization
Answer: Amortization Expense; Patents
Explanation:
The entry to record the amortization of a patent would include a debit to the amortization expense and a credit to the patents.
The journal entry will be:
Debit Amortization expenses XX
Credit Patents XX
Therefore, the correct option is A.
In the value chain, what is the term of the activities that are required but not directly add value to the company's products or services sold to the customers
Answer:
In the value chain analysis, the term of the activities that are required but not directly add value to the company's products or services sold to the customers is:
Support or Secondary Activities.
Explanation:
Support or secondary activities are the indirect services that improve the primary activities of the value chain. The secondary or support activities include procurement of input resources, human resources management, infrastructure (accounting, legal, and administrative), and research and development (technology). These support the primary value chain activities, according to Porter's Value Chain, including In-bound logistics, Operations, Outbound logistics, Marketing and Sales, and Customer Services.
AZ-64409 company makes and sells two products: Product W903 and Product Z653. The annual production and sales of Product W903 is 600 units and of Product Z653 is 600 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product W903 600 10.0 6,000 Product Z653 600 5.0 3,000 Total direct labor-hours 9,000 The direct labor rate is $27.00 per DLH. The direct materials cost per unit is $227.00 for Product W903 and $283.00 for Product Z653. The AZ-64409 company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product W903 Product Z653 Total Labor-related DLHs $ 40,936 6,000 3,000 9,000 Production orders orders 58,660 700 600 1,300 Order size MHs 433,375 3,800 3,000 6,800 $ 532,971 The unit product cost of Product W903 under activity-based costing is closest to:
Answer:
AZ-64409 Company
The unit product cost of Product W903 under activity-based costing is closest to:
= $999.
Explanation:
a) Data and Calculations:
Product W903 Product Z653
Annual production and sales 600 600
Direct labor-hours per unit 10.0 5.0
Total direct-labor hours 6,000 3,000 9,000
Direct labor rate $27.00 per DLH $27.00 per DLH
Direct labor costs per unit $270.00 $135.00
Direct materials cost per unit 227.00 283.00
Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product W903 Product Z653 Total
Labor-related DLHs $ 40,936 6,000 3,000 9,000
Production orders orders 58,660 700 600 1,300
Order size MHs 433,375 3,800 3,000 6,800
$ 532,971
Activity Rates Product W903 Product Z653
Labor-related costs $4.55 per DLH 27,300 $13,650
Production orders $45.12 per order 31,584 27,072
Order size $63.73 per MH 242,174 191,190
Total costs assigned $301,058 $231,912
Overhead cost per unit $501.76 $386.52
Product W903 Product Z653
Direct labor costs per unit $270.00 $135.00
Direct materials cost per unit 227.00 283.00
Overhead cost per unit 502.00 387.00
Total cost per unit $999.00 $805.00
George Johnson recently inherited a large sum of money; he wants to use a portion of this money to set up a trust fund for his two children. The trust fund has two investment options: (1) a bond fund and (2) a stock fund. The projected returns over the life of the investments are 9% for the bond fund and 11% for the stock fund. Whatever portion of the inheritance he finally decides to commit to the trust fund, he wants to invest at least 40% of that amount in the bond fund. In addition, he wants to select a mix that will enable him to obtain a total return of at least 9.5%.
Required:
a. Formulate a linear programming model that can be used to determine the percentage that should be allocated to each of the possible investment alternatives.
b. Solve the problem using the graphical solution procedure.
yo what sup bro I have no idea on what to say so just pray to God and he will give it to you
Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $20 million, and production and sales will require an initial $3 million investment in net operating working capital. The company's tax rate is 35%. What is the initial investment outlay
Answer:
the initial investment outlay is $23,000,000
Explanation:
The computation of the initial investment outlay is given below:
Initial Investment Outlay = New Equipment Cost + Requirement of Working Capital
= $20,000,000 + $3,000,000
= $23,000,000
hence, the initial investment outlay is $23,000,000
We simply added the above two items
The Smelting Department of Kiner Company has the following production and cost data for November. Production: Beginning work in process 2,100 units that are 100% complete as to materials and 20% complete as to conversion costs; units transferred out 9,100 units; and ending work in process 7,100 units that are 100% complete as to materials and 40% complete as to conversion costs. Compute the equivalent units of production for (a) materials and (b) conversion costs for the month of November.
Answer:
A. 16,200
B. 11,940
Explanation:
Computation for the equivalent units of production for (a) materials and (b) conversion costs for the month of November.
A. Equivalent units of production for materials Materials
Total equivalent units= 9100 + (7100*100%)
Total equivalent units= 9100+7100
Total equivalent units= 16,200
B.Equivalent units of production for conversion costs
Total equivalent units= 9100+ (7100*40%)
Total equivalent units=9100+2840
Total equivalent units= 11,940
Therefore the equivalent units of production for (a) materials is 16,200 and (b) conversion costs for the month of November is 11,940
On January 2, 2016, Rafa Company purchased a franchise with a useful life of 10 years for $50,000. An additional franchise fee of 3% of franchise operating revenues also must be paid each year to the franchisor. Revenues during 2016 totaled $400,000. In its December 31, 2016, balance sheet, what net amount should Rafa report as an intangible asset-franchise
Answer:
$45,000
Explanation:
Calculation to determine the net amount should Rafa report as an intangible asset-franchise
Acquisition Cost P $50,000
Less: Franchise Amortization $5,000
(P$50,000/10)
Intangible asset-franchise - December 31, 2016 P$45,000
($50,000-$5,000)
Therefore the net amount should Rafa report as an intangible asset-franchise is $45,000
Complete each sentence by selecting the correct term using the drop-down list.
Abbey Company completed the annual count of its inventory. During the count, certain items were identified as requiring special attention. Decide how each item would be handled for Abbey Company's inventory.
items Activities
Goods transit shipped to Abbey (purchaser) FOB Destination
Goods in transit shipped to Abbey (purchaser) FOB Shipping Pont
Goods transit shipped by Abbey (seller) FOU Destination
Goods in transit shipped by Abbey (seller) FOB Shipping Pont
Answer:
FOB destination means "Free on Board Destination.
1. Goods transit shipped to Abbey (purchaser) FOB Destination
Answer: Exclude from inventory
2. Goods in transit shipped to Abbey (purchaser) FOB Shipping Point
Answer: Include in inventory count
3. Goods transit shipped by Abbey (seller) FOB Destination
Answer: Include in inventory
4. Goods in transit shipped by Abbey (seller) FOB Shipping Point
Answer: Exclude from inventory
A tenant with a triple net lease rents a building that has the following yearly operating expenses: Property taxes $5,000, Utilities $7,000, Repairs & Maintenance $1,500. The tenant would be responsible for how much of these expenses?
Answer: $13500
Explanation:
The triple net lease refers to a lease agreement whereby the tenant pays all the property expenses such as property taxes, building insurance, utilities, repairs and maintenance.
Therefore, based on the question given, the expenses to be paid will be:
Property taxes = $5,000
Add: Utilities = $7,000
Add: Repairs & Maintenance = $1,500
Total = $13500
Assume you are to receive a 30-year annuity with annual payments of $2,000. The first payment will be received at the end of Year 1, and the last payment will be received at the end of Year 30. You will invest each payment in an account that pays 6 percent annually compounded interest. What will be the value in your account at 55 years from today?
Answer:
Total FV= $678.615.02
Explanation:
First, we need to calculate the value of the annuity at the end of the last payment:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,000*[(1.06^30) - 1]} / 0.06
FV= $158,116.37
Now, the total future value after 25 years:
FV= PV*(1 + i)^n
FV= 158,116.37*(1.06^25)
FV= $678.615.02
Suppose that the equilibrium exchange rate (Euro/$) is .90 and the The Federal Reserve decides to fix the exchange rate at .70. What will the Federal Reserve have to do in order to maintain this fixed exchange rate
Answer:
C. The Federal Reserve will need to have official reserves of euros to purchase dollars in the foreign exchange market.
Explanation:
Federal Reserve required to have a euros reserves as it can applied it also at the case when the exchange rate is move upward or downward
For the other things, the fed could restrict the supply with respect to the dollar in the foreign exchange market in order to get it stable that opposed with euro
Therefore the option c is correct
The following firms in the widget industry have the following market shares:
Spacely Sprocket Widgets 12 %,
Cogswell Cog Widgets 13 %,
Intel Widgets 14 %,
Compaq Widgets 15 %,
IBM Widgets 16%,
Apple Widgets 17 %, &
Microsoft Widgets 13 %.
Required:
Based on this information, what is the Herfindahl Hirschmann Index (HHI) for the Widget Industry ?
Answer: 1,448
Explanation:
The Herfindahl Hirschman Index (HHI) is used to show how concentrated an industry is. A lower score indicates that the industry is not very concentrated because there are multiple firms involved.
A higher score shows that the industry is concentrated and controlled by a few firms.
HHI = ∑ square of every firm market share
= 12² + 13² + 14² + 15² + 16² + 17² + 13²
= 1,448
This industry is relatively competitive.
Middelton Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for October:
a. All materials are added at the beginning of the process.
b. Beginning work in process had 81,200 units, 20 percent complete with respect to conversion costs.
c. Ending work in process had 16,100 units, 20 percent complete with respect to conversion costs.
d. Started in process, 104,500 units.
Required:
Prepare a physical flow schedule.
Answer:
Middelton Company
Physical flow schedule:
Units
Beginning work in process 81,200
Started in process 104,500
Units in process 185,700
Ending work in process 16,100
Units completed 169,600
Explanation:
a) Physical flow schedule:
Degree of Completion
Units Materials Conversion
Beginning work in process 81,200 100% 20%
Started in process 104,500
Units in process 185,700
Ending work in process 16,100 100% 20%
Units completed 169,600 100% 100%
Kirchhoff Industries has computed that the proper balance for the Allowance for Doubtful Accounts at August 31 is $143,495. Assume that the allowance for doubtful accounts for Kirchhoff Industries has a credit balance of $6,934 before adjustment on August 31. Required: Journalize the adjusting entry for uncollectible accounts as of August 31. Refer to the chart of accounts for the exact wording of the account titles. KNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. KNOW journals will automatically indent a credit entry when a credit amount is entered.
Answer:
Date Account titles and Explanation Debit Credit
31 Aug. Bad debt expense $136,561
($143,495 - $6,934)
Allowance for doubtful accounts $136,561
(To record computed allowance)
For any positive interest rate the present value of a given annuity will be less than the sum of the cash flows, and the future value of the same annuity will be greater than the sum of the cash flows.
a. True
b. False
The management of Cooper Corporation is considering the purchase of a new machine costing $420,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0. 909, 0. 826, 0. 751, 0. 683, 0. 621, respectively. In addition to this information, use the following data in determining the acceptability in this situation:
Year Income from Operations Net Cash Flow
1 $100,000 $180,000
2 40,000 120,000
3 20,000 100,000
4 10,000 90,000
5 10,000 90,000
The cash payback period for this investment is: ___________
Answer:
3.2 years
Explanation:
Cash payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Amount invested = -420,000
Amount recovered in year 1 = -420,000 + 180,000 = -240,000
Amount recovered in year 2 = -240,000 + 120,000 = -120,000
Amount recovered in year 3 = -120,000 + 100,000 = -20,000
Amount recovered in year 4= - 20,000 / 90,000 = 0.22
Cash payback = 3.2 years
Eve's Apples opened for business on January 1, 2021, and paid for two insurance policies effective that date. The liability policy was $52,200 for 18 months, and the crop damage policy was $26,400 for a two-year term. What was the balance in Eve's Prepaid Insurance account as of December 31, 2021
Answer:
$20,600
Explanation:
Computation of prepaid insurance
Insurance 1 ($52,200 * 6/18) $17,400
Insurance 2 ($26,400 * 12/24) $13,200
Total Prepaid Insurance $20,600
Assuming no crowding-out, investment-accelerator, or multiplier effects, a $100 billion increase in government expenditures shifts aggregate demand a. left by $100 billion. b. right by $100 billion. c. left by more than $100 billion. d. right by more than $100 billion.
Answer:
d. right by more than $100 billion.
Explanation:
In the case when the component of an aggregate demand changed because of the presence that means there is a multiplier so there is an increase in the output that should be more than the starting changes in the aggregate demand
So this is because when the aggregate demand curve shift righwards by having more than $100 billion
Therefore the option d is correct
The Marketing Dept. needs to maximize consumer interest in the company's new financial services by sending marketing emails, targeted ads, and texts at prescribed intervals throughout the initial process of attracting and building a relationship with a customer. Riad's team has a large amount of data from previous marketing campaigns that they can analyze to develop a recommended schedule, taking into account a large variety of factors about different types of customers. What kind of technique will this task force need to employ in order to make these recommendations?
Answer:
Simulation
Explanation:
From the question we are informed about The Marketing Dept. Which needs to maximize consumer interest in the company's new financial services by sending marketing emails, targeted ads, and texts at prescribed intervals throughout the initial process of attracting and building a relationship with a customer. Riad's team has a large amount of data from previous marketing campaigns that they can analyze to develop a recommended schedule, taking into account a large variety of factors about different types of customers. In this case, the kind of technique this task force will need to employ in order to make these recommendations is Simulation.
Simulation can be regarded as imitation of particular operation of a real-world process, real world system within some specific period of time. Most times computers can be used in Execution of the simulation. Simulation can be used in different aspects such as in marketing, education, performance tuning.
"How would you need to shift the supply and demand curves in a market to result in a situation where equilibrium quantity increases while the equilibrium price change is indeterminate?"
Answer:
the demand and supply curve shift outward / to the right
Explanation:
Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.
Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :
1. a change in consumers' expectation
2. a change in the taste of consumers
3. a change in income
A change in price of a good leads to a movement along the supply curve and not a shift of the supply curve.
Other factors other than a change in the price of the good would lead to a shift of the supply curve. Such factors include :
1. A change in the price of input
2. A change in the number of suppliers
3. Government regulations
If the demand curve for a good shifts outward as a result of an increase in demand. Equilibrium price and quantity would increase.
If the supply curve for a good shifts outward as a result of an increase in supply, equilibrium price decreases and quantity increases.
Taking these two effects together, there would be an increase in equilibrium quantity while the equilibrium price change is indeterminate
Thomas is concerned about his company's ability to pay off its short-term debts. If he wants to know more about his company's liquidity, what should he do?
Calculate his debt to equity ratio
Calculate his net working capital
Calculate his total assets
Calculate his total liabilities
Answer: Calculate his net working capital
Explanation:
The net working capital shows a company's ability to pay off its short term obligations using its current assets.
It is calculated by subtracting the current liabilities of a company from its current assets. When net working capital is high, a company has enough to ensure that it can grow in the short run but when the net working capital is little or negative, the company will have a hard time paying off short term obligations which will affect its financial health.
