Answer:Cash flow from operating activities = $347,000
Net cash used in Investing:= -$2,000
Explanation:
1.
The net cash provided by operating activities by Karr, Inc., reported in 2011
Account Titles and explanation Amount
Net income $300,000
Adjustments made
Add:
Depreciation expense $52,000
Decrease in inventory $20,000
Less:
Increase in account receivable -$15,000
Decrease in account payable -$5,000
Gain on sale of equipment -$5,000
Cash flow from operating activities $347,000
2. Net cash used in Investing:
Sales of equipment =cost -depreciation + gain of sale
Sales of equipment 18,000(($25,000-$12,000+$5,000)
Purchase of Equipment 20,000
Net cash used in Investing:= -$2,000
The following activities occur at Greenwich Corporation. a company that manufactures a variety of products.a. Various individuals manage the parts inventories.b. A clerk in the factory issues purchase orders for a job.c. The personnel department trains new production workers.d. The factory’s general manager meets with other department heads such as marketing to coordinate plans.e. Direct labor workers assemble products.f. Engineers design new products.g. The materials storekeeper issues raw materials to be used in jobs.h. The maintenance department performs periodic preventive maintenance on general-use equipment.Required:Classify each of the activities above as either a unit-level, batch-level, Product-level, or organizationsustaining activity.
Answer:
Product level activities have to do with the individual products themselves and issues concerning them.
Batch level activities are related to uses that concern a group of products including their sales and raw material acquisition.
Unit level activities are those that concern the production volumes of units and include direct materials and direct labor.
Organization sustaining or Facility level entails issues that relate to the general facility used in production and is more of an administrative measure.
Batch Level Activities
b. A clerk in the factory issues purchase orders for a job.
g. The materials storekeeper issues raw materials to be used in jobs.
Product Level Activities
a. Various individuals manage the parts inventories.
f. Engineers design new products.
Unit Level Activities
e. Direct labor workers assemble products.
Organization sustaining Level
c. The personnel department trains new production workers.
d. The factory’s general manager meets with other department heads such as marketing to coordinate plans.
h. The maintenance department performs periodic preventive maintenance on general-use equipment.
Following are summary financial statement data for Nordstrom Inc. for fiscal years ended 2014 through 2016.
$ thousands 2014 2015 2016
Sales $15,860 $15,478 $14,757
Net income 564 437 354
Total assets 7,886 8,115 7,858
Equity 873 977 870
Required:
a. Compute the return on assets (ROA) for fiscal years ended 2019 and 2018.
b. Compute the profit margin (PM) for fiscal years ended 2019 and 2018.
c. Compute the asset turnover (AT) for fiscal years ended 2019 and 2018.
Answer:
Nordstrom Inc.
a. Return on Assets (ROA) for the fiscal years ended 2019 and 2018:
= Net income/Total Assets
2019 = 7.15%
2018 = 5.39%
b. Profit Margin (PM) for fiscal years ended 2019 and 2018:
= Net income/Sales * 100
2019 = 3.56%
2018 = 2.82%
c. Asset Turnover (AT) for fiscal years ended 2019 and 2018:
= Total Sales / Average Assets
2019 = 1.98x
2018 = 1.94x
Explanation:
a) Data and Calculations:
$ thousands 2019 2018 2017
Sales $15,860 $15,478 $14,757
Net income 564 437 354
Total assets 7,886 8,115 7,858
Average assets 8,001 7,986
Equity 873 977 870
a. Return on Assets (ROA) for the fiscal years ended 2019 and 2018:
= Net income/Total Assets
2019 = $564/$7,886 * 100 = 7.15%
2018 = $437/$8,115 * 100 = 5.39%
b. Profit Margin (PM) for fiscal years ended 2019 and 2018:
= Net income/Sales * 100
2019 = $564/$15,860 * 100 = 3.56%
2018 = $437/$15,478 * 100 = 2.82%
c. Asset Turnover (AT) for fiscal years ended 2019 and 2018:
= Total Sales to Average Assets
2019 = $15,860/$8,001 = 1.98x
2018 = $15,478/$7,986 = 1.94x
b) Return on Assets (ROA) indicates the relative profitability of assets, which indicates the ability of management to generate earnings from the entity's assets.
The Profit Margin (PM) measures the degree to which a dollar-sales is turned into profit.
Asset Turnover (AT) measures the efficiency achieved by the entity in generating sales from its assets.
what is the difference between time work and piece work rates
Answer:
the process by which green plants turn carbon dioxide and water into food using energy from sunlight
Describe TWO ways in which the above law protects citizens against human
rights violations.
Answer:
1. Protection of Human Rights Act 1993: declares the rights pertaining to life, equality, liberty,and dignity of an individual that is guaranteed by the Constitution of India.
2. The Universal Declaration of Human Rights (UDHR)- declared by the United Nations General Assembly in the year 1948.
Explanation:
A project has an initial cost of $89,800, a life of 7 years, and equal annual cash inflows. The required return is 8.2 percent. According to the profitability index decision rule, what is the minimum annual cash flow necessary to accept the project?
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 2018, are as follows. Assume all accounts have normal balances.
110 Cash $83,600 312 Dividends $135,000
112 Accounts Receivable 233,900 313 Income Summary —
115 Inventory 624,400 410 Sales 5,069,000
116 Estimated Returns Inventory 28,000 510 Cost of Goods Sold 2,823,000
117 Prepaid Insurance 16,800 520 Sales Salaries Expense 664,800
118 Store Supplies 11,400 521 Advertising Expense 281,000
123 Store Equipment 569,500 522 Depreciation Expense —
124 Accumulated Depreciation— Store Equipment 56,700 523 Store Supplies Expense —
210 Accounts Payable 96,600 529 Miscellaneous Selling Expense12,600
211 Salaries Payable — 530 Office Salaries Expense 382,100
212 Customers Refunds Payable 50,000 531 Rent Expense 83,700
310 Common Stock 100,000 532 Insurance Expense —
311 Retained Earnings 585,300 539 Miscellaneous Administrative Expense 7,800
Part 1: Journalize the transactions below for May, the last month of the fiscal year. For a compound transaction, if an amount box does not require an entry, leave it blank.
Part 2: Using the attached spreadsheet, post the journal entries from Part 1 to the general ledger. Extend the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers.
May 1: Paid rent for May, $5,000.
Comprehensive Problem 2
Part 3:
NOTE: You must complete parts 1 and 2 before completing part 3.
Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank.
Answer:
1- Rent expense (Dr.) $5,000
Cash (Cr.) $5,000
2- Advertising Expense (Dr.) $11,000
Cash (Cr.) $11,000
3 - Accounts Receivable (Dr.) $43,200
Sales Revenue (Cr.) $43,200
4 - Office Supplies (Dr.) $9,280
Accounts Payable (Cr.) $9,280
5 - Salaries Expense (Dr.) $56,000
Salaries Payable (Cr.) $56,000
Explanation:
The journal entries for the month of May are recorded. These transactions are posted into general ledger accounts which forms the trial balance. The trial balance summarizes the account balances and debit, credit totals are found.
Trial Balance :
Debits;
Rent Expense $5,000
Advertising Expense $11,000
Office Supplies $9,280
Accounts Receivable $43,200
Salaries Expense $56,000
Credits;
Cash $16,000
Salaries Payable $56,000
Sales Revenue $43,200
Accounts Payable $9,280
If variances are recorded in the accounts at the time the manufacturing costs are incurred, what does a debit balance in Direct Materials Price Variance represent?
Answer:
unfavorable variance
Explanation:
In such situation, a debit balance in Direct Materials Price Variance represents
unfavorable variance. This is an accounting term that explains situations when the actual cost of the project is higher than the standard or projected cost.
It means that the actual price at which the materials are bought is higher than the standard price / budgeted price / estimated price and therefore, more amount has to be paid than expected.
The following data relate to Lebeaux Corporation for the year just ended: Sales revenue $ 750,000 Cost of goods sold: Variable portion 370,000 Fixed portion 110,000 Variable selling and administrative costs 50,000 Fixed selling and administrative cost 75,000 Which of the following statements is correct?
A) Lebeaux's variable-costing income statement would show a gross margin of $270,000.
B) Lebeaux's variable costing income statement would show a contribution margin of $330,000.
C) Lebeaux's absorption-costing income statement would show a contribution margin of $330,000.
D) Lebeaux's absorption costing income statement would show a gross margin of $330,000.
E) Lebeaux's absorption-costing income statement would show a gross margin of $145,000.
Answer:
B) Lebeaux's variable costing income statement would show a contribution margin of $330,000.
Explanation:
See below the Statements that are produced under Absorption and Variable Costing methods.
Absorption Costing
Sales revenue $750,000
Less Cost of goods sold :
Variable portion $370,000
Fixed portion $110,000 ($480,000)
Gross Profit $270,000
Variable Costing
Sales revenue $750,000
Less Variable Costs :
Variable portion - Cost of Sales $370,000
Variable selling and administrative costs $50,000 ($420,000)
Contribution $330,000
therefore,
The only correct statement is : Lebeaux's variable costing income statement would show a contribution margin of $330,000
Wallaby Kite Company, a small Melbourne firm that sells kites on the Web, wants a master budget for the three months beginning January 1, 2012. It desires an ending minimum cash balance of $20,000 each month. Sales are forecast at an average wholesale selling price of $8 per kite. Merchandise costs average $4 per kite. All sales are on credit, payable within 30 days, but experience has shown that 60 percent of current sales are collected in the current month, 30 percent in the next month, and 10 percent in the month thereafter. Bad debts are negligible.
In January, Wallaby Kite is beginning just-in-time (JIT) deliveries from suppliers, which means that purchases will equal expected sales. On January 1, purchases will cease until inventory decreases to $24,000, after which time purchases will equal sales. Purchases during any given month are paid in full during the following month. Monthly operating expenses are as follows:
Wages and salaries....$60,000
Insurance expired...........500
Depreciation.................1,000
Miscellaneous.............10,000
$1,000/month + 10% of quarterly sales over
Rent...........................$40,000
Cash dividends of $6,000 are to be paid quarterly, beginning January 15, and are declared on the 15th of the previous month. All operating expenses are paid as incurred, except insurance, depreciation, and rent. Rent of $1,000 is paid at the beginning of each month, and the additional 10 percent of sales is paid quarterly on the 10th of the month following the end of the quarter. The next rent settlement date is January 10.
The company plans to buy some new fixtures for $12,000 cash in March.
Money can be borrowed and repaid in multiples of $2,000. Management wants to minimize borrowing and repay rapidly. Simple interest of 10 percent per annum is computed monthly but paid when the principal is repaid. Assume that borrowing occurs at the beginning, and repayments at the end, of the months in question. Compute interest to the nearest dollar.
Answer:
ask brainly lol
Explanation:
2. Provide three examples of innovative activities, practices that leaders might undertake. Do not limit your ideas to
those presented in the text.
Answer:
Examples of innovative activities which leaders might undertake are:
1. Reading and reviewing a book with their employees in an area of organizational deficiency;
2. Encouraging and promoting problem-solving rather than rote activities through the use of financial rewards tied to such activities
3. Carrying our regular (weekly performance) feedback of each person's performance including the leader she or himself in order to ensure timely and goal-oriented course correction.
Cheers
Project A requires a $280,000 initial investment for new machinery with a five-year life and a salvage value of $30,000. The company uses straight-line depreciation. Project A is expected to yield annual net income of $20,000 per year for the next five years. QS 26-6 Accounting rate of return LO P2 Compute Project A’s accounting rate of return.
Answer:
12.90%
Explanation:
Annual average investment = (Initial investment + Salvage value) / 2
Annual average investment = ($280000 + $30000) / 2
Annual average investment = $155,000
Accounting rate of return = Annual after-tax net income / Annual average investment
Accounting rate of return = $20,000 / $155,000
Accounting rate of return = 0.1290322581
Accounting rate of return = 12.90%
The "Truth in Savings Law" requires banks to advertise their rates on investments such as CDs and savings accounts as annual percentage yields (APY).
a) true
b) false
In assembly-line balancing, cycle time (the ratio of available production time to scheduled production) is the: minimum time that a product is allowed at each workstation. maximum time that a product is allowed at each workstation. inverse of the minimum number of workstations needed. sum of all the task times divided by the maximum number of workstations. equivalent of the maximum task time among all tasks.
Answer:
maximum time that a product is allowed at each workstation
Explanation:
The cycle time represent the maximum time for each and every workstation
Also,
Theoretical number of workstation = Total task time ÷ Cycle time
The cycle time is the vital concept with regard to the line balancing to give assurance related to the production happen according to the demand. Also it help in allocation of the resources in the proper way.
Therefore the above statement should be considered
Weekly demand figures at Hot Pizza are as follows:
Week Demand($)
1 108
2 116
3 118
4 124
5 96
6 119
7 96
8 102
9 112
10 102
11 92
12 91
Using the Hot Pizza weekly demand figures provided, estimate demand for Week 4 to Week 12 by using a 3-week moving average as well as simple exponential smoothing with α = 0.2. Evaluate the MAD, MAPE, MSE, bias, and TS in each case. Which of the two methods do you prefer? Why? Include all calculations as well as your narrative explanation and summary.
Answer:
MAD: 10.04, 11.53
MAPSE: 10% , 12%
MSE : 146.33, 178.72
Bias : -0.56 , -0.96
3-week moving average method is better
Explanation:
i ) Evaluate MAD ( average of absolute errors )
using 3 week moving average
= 10.04
using simple exponential smoothing
= 11.53
ii) MAPSE ( average of absolute percentage error )
using 3 week moving average
= 10%
using simple exponential smoothing
= 12%
iii) MSE ( average of Squared Errors )
3 week MV = 146.33 , Simple exponential smoothing = 178.72.
iv) Bias
3 week MV = -5/9 = -0.56, Simple exponential smoothing = -8.69/9 = -0.96.
v) TS ( Total error / MAD )
3 week MV = -5 / 10.04 = -0.49 ,
simple exponential smoothing = -8.69 / 11.53 = -0.75
b) I prefer 3-week moving average based on the values of MAD , MAPE, MSE, bias and TS which shows that there is a better estimate when using the 3 -weeks moving average.
Attached below is the Tabular calculations of the required parameters for the question
A store has two different coupons that customers can use. One coupon gives the customer $15 off their purchase, and the other coupon gives the customer 30% off of their purchase. Suppose they let a customer use both coupons and choose which coupon gets applied first. For this context, ignore sales tax.
Let f be the function that inputs a cost (in dollars) and outputs the cost after applying the "$15 off" coupon, and let g be the function that inputs a cost (in dollars) and outputs the cost after applying the "35% off" coupon.
a. Suppose acustomerwants to purchase asi 40 item and apply the si 5 of coupon first, and then the 35% or coupon How much will the item cost after applying the coupons?
b. Suppose a customer wants to purchase a S 140 item and apply the SI 5 off coupon first, and then the 35% or coupon Ure ction notation to represent how much the item will cost (dollars) after applying the coupons.
c. Suppose a customer wants to purchase a $140 item and apply the 35% om coupon first and then the sis of coupon How much will the item cost after applying the coupons?
d. Suppose a customer wants to purchase a S 140 item and apply the "35% or coupon first and then the "S 15 off coupon. Usefu ction notation to represent how much the item will cost (dollars) after applying the coupons.
Answer:
16.25;
g(f(x)) ;
76 ;
f(g(x))
Explanation:
For 15 off
f(x) = x - 15
For 35% off
g(x) = (1 - 0.35)x = 0.65x
g(x) = 0.65x
A.)
For the $15 off coupon :
f(x) = x - 15
f(x) 40 - 15 = 25
For the 35% coupon :
g(x) = (1-0.35)x
g(x) = 0.65(25)
g(x) = 16.25
B.)
Applying $15 off first, then 35%
Here, g is a function of f(x)
g(f(x))
Here g(x) takes in the result of f(x) ;
For the $140 off coupon :
f(x) = x - 15
f(140) = 140 - 15 = 125
For the 35% coupon :
g(125) = (1-0.35)x
g(124) = 0.65(125) = $81.25
C.)
x = 140
g(x) = 0.65x
g(140) = 0.65(140)
g(140) = 91
f(x) = x - 15
f(91) = 91 - 15
f(91) = 76
D.)
Here, F is a function of g(x)
f(g(x))
f(x) = (0.65*140) - 15
Suppose that an investor buys a 100-share call option for $250. It has an exercise price of $60. The underlying price per share of the stock at expiration is $66. What then is the amount of profit or loss, ignoring brokerage fees
Answer:
$350
Explanation:
Call option is profitable when Stock price expires above the Strike price of the option.
Strike price of call = $60
Stock price at expiration = $66
Total profit = Size*(Stock price-Strike price) - Premium paid
Total profit = 100*($66-$60) - $250
Total profit = 100*$6 - $250
Total profit = $600 - $250
Total profit = $350
Thus, the amount of profit (ignoring brokerage fees) is $350.
Voice Com, Inc., produces and sells cellular phones. The costs of producing and selling 8,000 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 81 per unit Factory overhead $325,600 Direct labor 37 Selling and admin. exp. 114,400 Factory overhead 24 Selling and admin. exp. 20 Total $162 per unit Voice Com desires a profit equal to a 14% rate of return on invested assets of $942,400. Assume that Voice Com, Inc., uses the total cost concept of applying the cost-plus approach to product pricing. a. Determine the total costs and the total cost amount per unit for the production and sale of 8,000 units of cellular phones. Round the cost per unit to two decimal places. Total cost $ fill in the blank 1 Cost amount per unit $ fill in the blank 2 b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. fill in the blank 3 % c. Determine the selling price of cellular phones. Round to the nearest cent. $ fill in the blank 4 per phone
Answer:
Voice Com, Inc.
1a. Total costs = $1,621,600
1b. Total cost per unit = $202.70
2a. Mark-up amount = $131,936
2b. Mark-up percentage = 8.14%
2c. Selling price = $219.19
Explanation:
a) Data and Calculations:
Variable costs per unit:
Direct materials $ 81
Direct labor 37
Factory overhead 24
Selling and admin. exp. 20
Total per unit $162
Fixed costs:
Factory overhead $325,600
Production and sales units = 8,000
Rate of return on invested assets = 14%
Desired profit = $131,936 ($942,400 * 14%)
Sales revenue = Total costs + Desired profit
= $1,753,536
1a. Total costs = $1,621,600 ($162 * 8,000 + $325,600)
1b. Total cost per unit = $202.70 ($1,621,600/8,000)
2a. Mark-up amount = $131,936
2b. Mark-up percentage = 8.14% ($131,936/$1,621,600 * 100)
2c. Selling price = $219.19 ($1,753,536/8,000)
A car dealer leases a small computer with software for $5,000 per year. As an alterative he could buy the computer for $7,500 and lease the software for $3,500 per year. Any time he would decide to switch to some other computer he could cancel software lease and sell the computer for $500.
If he buys the computer nad leases the software, what is the payback period?
a. 3 years
b. 4 years
c. 5 years
d. 6 years
If he kept the computer and software for 8 years, what would be the benefit-cost ratio, based on a 5% interest rate.
a. 1.5
b. 1.4
c. 1.3
d. 1.2
Answer:
1. The payback period is:
= 3 years
2. The benefit-cost ratio is:
= 1.1
Explanation:
a) Data and Calculations:
Leasing Computer Buying Computer &
with Software Leasing Software
Annual lease payment $5,000 $3,500
Cost of computer $7,500
Salvage value of computer $500
Usage period 8 years 8 years
Interest rate 5% 5%
Present value annuity factor 6.463 6.463
Present value factor for salvage 0.677
Present value of annuity $32,315 $29,782 ($22,621 + $7,500 - 339)
$22,782 = ($3,500 * 6.463 + $7,500 - ($500 * 0.677))
Benefit-cost ratio = $32,315/$29,782 = 1.1
3. Explain the success of the training program using Conditioning Theory and Social Cognitive Theory. For each theory: A. How do you explain why the training program was not effective? B. How could the program be improved by using some of the concepts from each theory.
Answer:
you just explain how smart it is.
it can add more tecnoligy
Explanation:
A company's perpetual preferred stock currently trades at $87.50 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock?
a. 8.25%
b. 9.14%
c. 8.69%
d. 9.62%
Answer:
9.62%
Explanation:
The firm cost of preferred stock can be calculated as follows
Dividend= $8
Price= $87.50
Floation cost= 5%
= 5/100
= 0.05
= 8/87.50(1-0.05)
= 8/87.50(0.95)
= 8/83.125
= 0.0962×100
= 9.62%
Hence the firm cost of preferred stock is 9.62%
The accounting records of Diego Company revealed the following costs, among others:
Factory insurance $32,000
Raw material used $256,000
Customer entertainment $15,000
Indirect labor $45,000
Depreciation on salespersons' cars $22,000
Production equipment rental costs $72,000
Costs that would be considered in the calculation of manufacturing overhead total:
A. $149,000.
B. $171,000.
C. $186,000.
D. $442,000.
E. some other amount.
Answer:
Option A ($149,000) is the correct alternative.
Explanation:
Given:
Factory insurance,
= $32,000
Indirect labor,
= $45,000
Production equipment rental costs,
= $72,000
Now,
The total manufacturing costs will be:
= [tex]Factory \ insurance+Indirect \ labor+Production \ equipment \ rental \ costs[/tex]
By putting the given values, we get
= [tex]32000+45000+72000[/tex]
= [tex]149,000[/tex] ($)
Fran’s Fries has budgeted sales for May, June and July at $500,000, $680,000 and $720,000, respectively. Sales are 80% cash and 20% on account. Assume sales on account are collected in the month following the sale. Compute cash receipts for June and July. Show your work here.
Answer:
Results are below
Explanation:
Giving the following information:
Sales are 80% cash and 20% on account.
Sales:
May= $500,000
June= $680,000
July= $720,000
Cash collection June:
Cash collection from May= (500,000*0.2)= 100,000
Cash collection June= (680,000*0.8)= 544,000
Cash collection June= $644,000
Cash collection July:
Cash collection from June= (680,000*0.2)= 136,000
Cash collection July= (720,000*0.8)= 576,000
Cash collection July= $712,000
True or False: In general, term loans may be created and modified more easily than bond issues because (1) there are fewer parties to the transaction, and (2) the borrower and the lender have the potential to meet directly to reach mutually agreeable terms.
Answer:
False
Explanation:
A term loan can be regarded as monetary loan which is expected to be repaid on regular payments basis over particular period of time. Term loans are one that the lasting duration is
usually between one and ten years, and in some cases could last as long as 30 years . It is a loan that usually encompass unfixed interest rate which could add additional balance to the amount be repaid.
Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements.
Jun. 1 Jenna Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 of drafting equipment to launch the company in exchange for common stock.
Jun. 2 The company purchased land worth $49,000 for an office by paying $6,300 cash and signing a long-term note payable for $42,700.
Jun. 3 The company purchased a portable building with $55,000 cash and moved it onto the land acquired on June 2.
Jun. 4 The company paid $3,000 cash for the premium on an 18-month insurance policy.
Jun. 5 The company completed and delivered a set of plans for a client and collected $6,200 cash.
Jun. 6 The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500.
Jun. 7 The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days.
Jun. 8 The company purchased $1,150 of additional office equipment on credit.
Jun. 9 The company completed engineering services for $22,000 on credit.
Jun. 10 The company received a bill for rent of equipment that was used on a recently completed job. The $1,333 rent cost must be paid within 30 days.
Jun. 12 The company collected $7,000 cash in partial payment from the client billed on June 9.
Jun. 14 The company paid $1,200 cash for wages to a drafting assistant.
Jun. 17 The company paid $1,150 cash to settle the account payable created in on June 8.
Jun. 20 The company paid $925 cash for minor maintenance of its drafting equipment.
Jun. 23 The company paid $9,480 cash in dividends.
Jun. 28 The company paid $1,200 cash for wages to a drafting assistant.
Jun. 29 The company paid $2,500 cash for advertisements on the web during June.
Required:
Journalize the above entires.
Answer:
1 - Cash (Dr.) $100,000
Office equipment (Dr.) $5,000
Drafting equipment (Dr.) $60,000
Capital (Cr.) $165,000
2- Land (Dr.) $49,000
Cash (Cr.) $6,300
Long term notes payable (Cr.) $42,700
3- Portable building (Dr.) $55,000
Cash (Cr.) $55,000
4- Insurance premium (Dr.) $3,000
Cash (Cr.) $3,000
5- Cash (Dr.) $6,200
Service Revenue (Cr.) $6,200
Explanation:
6- Drafting equipment (Dr.) $20,000
Cash (Cr.) $9,500
Long term notes payable (Cr.) $10,500
7- Accounts Receivable (Dr.) $14,000
Service revenue (Cr.) $14,000
8- Office equipment (Dr.) $1,150
Accounts Payable (Cr.) $1,150
9- Accounts Receivable (Dr.) $22,000
Engineering Service (Cr.) $22,000
10- Cash (Dr.) $9,000
Accounts Receivable (Cr.) $9,000
11- Wages expense (Dr.) $1,200
Cash (Cr.) $1,200
12- Accounts Payable (Dr.) $1,150
Cash (Cr.) $1,150
13- Maintenance expense (Dr.) $925
Cash (Cr.) $925
14- Dividends (Dr.) $9,480
Cash (Cr.) $9,480
15- Wages expense (Dr.) $1,200
Cash (Cr.) $1,200
16- Advertising expense (Dr.) $2,500
Cash (Cr.) $2,500
State and explain ways to set-up business in domestic market?
Answer:
Explanation:Buy products in bulk to sell.
Sell homemade products you make yourself.
Start a dropshipping store.
Start a print-on-demand store.
Sell your service or expertise.
Productize your service or expertise.
Grow an audience you can monetize.
Buy an existing ecommerce business.
Using the money demand and money supply model, an open market purchase of Treasury securities by the Federal Reserve would cause the equilibrium interest rate to
Answer:
C. decrease
Explanation:
In the case when the money demand and the money supply model is used so the open market purchase would result the interest rate of equilibrium to decrease as if there is an open market purchase so it rise the money supply due to which the supply curve of the money move shiftward
Therefore the rate of interest should be decreased
The ____ is equal to the sum of the squares of the market shares of all the firms in an industry. a. market concentration ratio b. Herfindahl-Hirschman index c. correlation coefficient d. standard deviation of concentration e. none of the above
Answer:
b. Herfindahl-Hirschman index
Explanation:
Option b. Herfindahl-Hirschman index
The HHI is calculated by taking the square of the market share and then adding all the squared values. Thus, the resulting answer will be the HHI magnitude.
Types of Financial Assets Match the description of the security to the type of financial asset. A security that provides a payoff that depends on the values of other assets. Multiple Choice equity security debt security derivative security None of these
Answer: Derivative security
Explanation:
Derivative security is referred to as the security that provides a payoff which depends on the values of other assets.
A derivative security is referred to as the financial instrument whereby the value depends on the value of another asset. There are different types of derivatives such as options, swaps, futures, and forwards. Example of derivative security is convertible bond.
Unobserved effects versus idiosyncratic errors
Suppose you have two years' worth of panel data on wages and work experience of adults; however, the data set has no further information on the characteristics of the individuals in the data set. Specifically, you have cross-sectional wage and work experience data on individuals in 2006, and cross-sectional data on those same individuals in 2012. You plan to use the following fixed effects model to analyze the effects of work experience on wages:
log (wage it ) = βo + 80 yr10, + B1 experit + ai + uit
where
wage it = yearly wage of individual i at time t, in dollars
yrl0, =1 in the year 2010 (t = 2), and =0 otherwise (t = 1)
exper = years of work experience of individual i, at time t
ai = unobserved (time-invariant) effect
uit = idiosyncratic error
Two other factors that can influence wage, which you have not controlled for in your model, are height and industry of employment.
Use the following table to indicate which term in the fixed effects model captures the effect of height, which term captures the effect of industry of employment, and which term captures the effect of work experience.
ai uit β1
Work experience
Height
Industry of employment
Answer:
The terms that capture the effect of industry of employment and work experience are:
Industry of employment = uit
Work experience = β1
Height = ai
Explanation:
a) Data:
ai uit β1
Work experience
Height
Industry of employment
b) Explanation
The "idiosyncratic error" (uit) describes the unobserved factors that impact the dependent variable. For example, industry of employment, and this factor vary from one-time period to the next.
The unobserved (time-invariant) effect (ai) refers to the height of the industry of employment, which does not vary over time.
Finally, work experience is depicted by β1, which is a factor that changes with time.
XYZ Inc., manufactures and sells two products: Product B7 and Product Z5. 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 B7 300 5.0 1,500
Product Z5 800 3.0 2,400
Total direct labor-hours 3,900
The direct labor rate is $15.10 per DLH. The direct materials cost per unit is $136.20 for Product B7 and $204.40 for Product Z5. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Activity cost pools Activity measures Estimated overhead cost Expected activity
Product B7 Product Z5 Total
Labor-related DLHs $39,585 1,500 2,400
Production orders Orders $26,884 500 600
Order size MHs $462,768 4,600 4,700
The unit product cost of Product Z5 under activity-based costing is closest to: ____________
Answer:
XYZ Inc.
The unit product cost of Product Z5 under activity-based costing is closest to:
= $999.62.
Explanation:
a) Data and Calculations:
Product B7 Product Z5 Total
Expected Production 300 800
Per Unit 5.0 3.0
Total Direct Labor-Hours 1,500 2,400 3,900
Direct labor rate per DLH $15.10 $15.10
Total direct labor costs $22,650 $36,240
Direct materials per unit $136.20 $204.40
Total direct materials costs $204,300 $490,560
Activity cost pools Activity Estimated Expected activity
measures overhead cost Product B7 Product Z5 Total
Labor-related DLHs $39,585 1,500 2,400 3,900
Production orders Orders $26,884 500 600 1,100
Order size MHs $462,768 4,600 4,700 9,300
Rates
Labor-related $10.15 ($39,585/3,900)
Production orders 24.44 ($26,884/1,100)
Order size 49.76 ($462,768/9,300)
Product Z5
Labor-related $24,360 ($10.15 * 2,400)
Production orders $14,664 (24.44 * 600)
Order size $233,872 ($49.76 * 4,700)
Total overhead $272,896
Product Z5
Direct materials $490,560
Direct labor 36,240
Overhead 272,896
Total costs $799,696
Unit cost = $999.62 ($799,696/800)
