Answer:
See below
Explanation:
1. Contribution margin ratio
= (Sales - Variable cost) / Sales
Sales = $300,000
Variable cost = $234,000
Contribution margin = ($300,000 - $234,000) / $300,000
= 0.22
= 22%
Hence, contribution margin ratio is 22%
2. Change in the net operating income if it can increase total sales by $2,500
Contribution margin of $2,300 = $2,300 × 22%
= $506
Operating income for $300,000 sales is
= Sales - total variable expenses - fixed expenses
= $300,000 - $234,000 - $38,700
= $27,300
If sales is $302,500 the net operating income would be
= $27,300 + $506
= $27,806
• It therefore means that the net operating income will increase by $506
The IPO process involves several entities, such as the issuing company, institutional investors, brokers, lawyers, regulators, retail investors, and an intermediary company. Consider the following IPO deal:
In 1999, Goldman Sachs Group and its partners, Sumitomo Bank Capital Markets Inc. and Kamehameha Activities Association, raised $3.6 billion its initial public offering in the United States and Canada. Goldman Sachs & Co., Bear Stearns & Co. Inc., Credit Suisse First Corporation, Lehman Brothers Inc., and J.P. Morgan Securities Inc. became some of the U.S. representatives the deal by entering into an agreement to sell a certain number Of shares to potential investors at a predetermined.
Identify one of the underwriters in the IPO deal described above.
a. J.P. Morgan Securities Inc.
b. Kamehameha Activities Association
Answer:
The IPO Process
One of the underwriters in the IPO deal described above is.
a. J.P. Morgan Securities Inc.
Explanation:
J.P. Morgan Securities Inc. and the following underwriters, Goldman Sachs & Co., Bear Stearns & Co. Inc., Credit Suisse First Corporation, and Lehman Brothers Inc. was involved in the Initial Public Offering (IPO) in 1999, where $3.6 billion was raised in the United States and Canada. An underwriter is a financial specialist, working closely with the issuing houses to determine the initial offering price of the securities. The underwriters usually buy the securities from the issuer and then sell them to investors using its distribution network.
Your company has decided to give employees yearly mental health days, in addition to the sick leave and vacation days that already exist. The company sends out an e-mail to employees explaining the new benefit and urges them to take care of themselves and to understand the importance of good mental health. The leaders of this company probably think of leadership as which of the following?
a. relationship
b. skill
c. influence
d. process
Answer:
A relationship because he/she is reaching out personaly
If nominal GDP is $1,200 billion and, on average, each dollar is spent five times in the economy over a year, then the quantity of money demanded for transactions purposes will be?
Choices
1,200
6,000
600
240
960
Out of the choices provided above, it can be concluded to state that the quantity of money demanded for transactions will be $6,000 if the conditions given above with respect to the nominal GDP are satisfied in an economic situation. Therefore, the option B holds true.
What is the significance of nominal GDP?The nominal GDP of an economy can be referred to or considered as the unit of measurement that is used to represent the final value of finished goods and services, where no adjustments for the prevailing inflation rates are taken into consideration.
The quantity of money demanded can be computed using the given nominal GDP's information as under,
Quantity of Money Demanded = Nominal GDP x Dollar Spending
Quantity of Money Demanded = 1200 × 5
Quantity of Money Demanded = $6,000
Therefore, the option B holds true and states regarding the significance of nominal GDP.
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Vertical analysis can best be described as a technique for analyzing the percentage change in individual financial statement line items from one accounting period to the next.
a. True
b. False
Answer:
False
Explanation:
Vertical analysis can be regarded as accounting tool which gives room for
proportional analysis of some documents. This document is usually
financial statements.In carrying out vertical analysis, all the item line that is on the financial statement is been recorded as percentage of another item. Instance of this is an income statement.
Which of the following is true of hierarchical clustering?
a. The data partition does not occur in a single step
b. All clusters must have the same number of data
c. All clusters must have more than one object in it
d. No single cluster can have all data
Answer:
The data partition does not occur in a single step
Explanation:
Consider the following argument from analogy. According our rules for appraising analogical reasoning, if a subsequent consideration strengthens the argument, answer a. Answer b if a consideration weakens the argument. Answer c if a consideration does not affect the argument.
Bill has taken three history courses and found them very stimulating and valuable. So he signs up for another one, confidently expecting that it too will be worthwhile.
25. Suppose that his previous history courses were in ancient history, modern European history, and American history.
26. Suppose that his previous history courses had all been taught by the same professor that is scheduled to teach the present one.
27. Suppose that his previous history courses all had been taught by Professor Smith, and the present one is taught by professor Jones.
28. Suppose that Bill had found his three previous history courses to be the most exciting intellectual experiences of his life.
29. Suppose that his previous history courses had all met at 9:00am, and the present one is scheduled to meet at 9:00am also.
30. Suppose that, in addition to the three history courses previously taken, Bill also had taken and enjoyed courses in anthropology, economics, political science, and sociology.
Answer:
Bill has taken three history courses and found them very stimulating and valuable. So he signs up for another one, confidently expecting that it too will be worthwhile.
25. Suppose that his previous history courses were in ancient history, modern European history, and American history.
Answer A
26. Suppose that his previous history courses had all been taught by the same professor that is scheduled to teach the present one.
Answer A
27. Suppose that his previous history courses all had been taught by Professor Smith, and the present one is taught by professor Jones.
Answer B
28. Suppose that Bill had found his three previous history courses to be the most exciting intellectual experiences of his life.
Answer A
29. Suppose that his previous history courses had all met at 9:00am, and the present one is scheduled to meet at 9:00am also.
Answer C
30. Suppose that, in addition to the three history courses previously taken, Bill also had taken and enjoyed courses in anthropology, economics, political science, and sociology.
Answer B
Explanation:
Collins Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The following information applies to the Collins Corporation for the current year: Direct Labor-Hours: Estimated for the Year 24,000 Actual Hours Worked 19,500 Direct Labor Cost Estimated for the Year 300,000 Actual Cost Incurred 210,000 Manufacturing Overhead Estimated for the Year 240,000 Actual Cost Incurred 185,000 Beginning Balance Ending Balance Raw Materials 14,000 22,000 Work in Process 27,000 9,000 Finished Goods 62,000 77,000 The manufacturing overhead cost for the current year will be: a. $17,000 overallocated. b. $17,000 underallocated. c. $55,000 overallocated. d. $55,000 underallocated.
Answer:
b. $17,000 underallocated
Explanation:
Given the information above, the computation of manufacturing overhead cost for the current year is seen below;
First, we will compute the predetermined overhead cost
= Estimated manufacturing overhead / Estimated direct labor hour
Read the following paragraph and respond to the questions below.
(1) Frequently, department managers and supervisors recruit applicants without working through our corporate human-resources office. (2) Our human-resources departments at all of our locations across the country have experienced this problem. (3) Recently, the manager of our tool-design department met with a recent industrial design graduate to discuss an opening for a tool designer. (4) The graduate was sent to the human-resources department, where she was told that no such position existed. (5) When the tool-design manager asked the director of human resources about the matter, the manager learned that the company president had ordered a hiring freeze for two months. (6) I’m sure that our general employment situation will get better. (7) As a result of the manager’s failure to work through proper channels, the applicant was not only disappointed but bitter.
a. Which number sentence is the topic sentence?
b. Which number sentence does not contribute to paragraph unity?
c. What is the writer providing in sentences 3 through 7 to help the reader understand his/her point?
d. Why is that helpful, or why is the message better by adding sentences 3 through 7?
Answer:
a. The number sentence that is the topic sentence is sentence (1).
b. Sentence (6) does not contribute to the paragraph's unity. It can be eliminated, without changing the meaning that can be obtained from the paragraph. It does not support the topic.
c. The writer, in sentences 3 through 7, provides an example and further details to help the reader to understand her point.
d. The example in a sentence makes the idea clearer to the reader. Without the example, which provides further details, the reader may not clearly appreciate the topic under discussion.
Explanation:
The purpose of the topic sentence is to introduce the theme of the paragraph or the point of view of the writer. It captures the essence of the story. As it bears the central idea, it focuses the paragraph to achieve unity.
Capital budgeting analysis not only requires the evaluation of cash flows but also requires the understanding of the origin of those cash flows. Based on your understanding of cash flows in a firm, complete and answer the following questions The present value of ___________ can be used to determine the basis of a firm's value. Ideally, capital budgeting analysis should take cash flows into account ___________
Understanding the nature of projects
Capital budgeting analysis often involves decisions related to expansion projects and/or replacement projects. Based on your understanding of expansion and replacement projects, complete the following:
If a clothing store opens a second retal location on the other side of town, this project would be considered__________ project.
What are sunk costs?
Acme Manufacturing owns a warehouse that it is not currently using. It could sell the warehouse for $300,000 or use the warehouse in a new project. Should Acme Manufacturing include the value of the warehouse as part of the in investment in the new project or treat the value of the warehouse as a sunk cost?
Yes, include the value of the warehouse as part of the initial investment in the new project
No, treat the value of the warehouse as a sunk cost
The role of externalities
A paper manufacturer has built a plant that meets all government-mandated environmental regulations, but the pl sant odor when it is being operated. Many residents in the area dislike the paper mill because of these unpleasant odors. This is an example of ________externality.
Answer:
Present Value of Cash Flows
Exactly when they occur
Expansion Project
Sunk cost is the cost which is already incurred and it is not affected by the decision to accept or reject the project.
Include the value of the warehouse as part of the initial investment in the new project.
Negative Externality
Explanation:
Present value of Cash flows is the discounted cash flows which shows the real worth of the money now which is to be received in future. Sunk costs are not part of the project as they are already incurred. These cost are not included in the calculations of the project cash flows. Negative externality is the undesirable impact due to production and manufacturing plants operations on the environment.
In the world map the United States appears to be a large producer of oranges. Explain how the world map misrepresents the scale of production for the cultivation of oranges in the United States.
Answer:
The map misrepresents the scale of orange production in the United States, because even in the U.S. is an important orange producer, the map conveys the idea that the U.S. as a whole is a producer, when it only produces oranges in a few states, with almost the entirety of the production being located in Florida.
A more accurate map would clarify this in a textbox or a note, or would have the state of Florida colored in a way that highlights that the production of oranges in the U.S. comes almost exclusively from this state.
The concept of leverage is that a.a high debt-to-equity ratio is favorable. b.it is appropriate to borrow if the return on the assets is greater than the cost of the financing. c.it is appropriate to borrow as long as the lender approves the loan. d.it is unfavorable to borrow funds rather than raise the capital from stockholders.
Answer:
b. it is appropriate to borrow if the return on the assets is greater than the cost of the financing.
Explanation:
A leverage can be defined as a process which typically involves the use of fixed-charged assets or items in a business with the intention of multiplying potential financial gains and returns.
In Financial accounting, the concept of leverage is that it is appropriate for a business firm to borrow an amount of money (debt), if the return on the assets (capital gain or income) is greater than the cost of the financing (debt or borrowed money).
Basically, financial leverage which is also known as trading on equity, is the utilization of debt (borrowed money) to acquire or purchase new assets with the intent and expectation that the income generated from these assets would exceed the cost incurred from borrowing. Thus, a business that engages in financial leveraging assumes that it would generate a higher income or capital gain from the amount of debt (borrowed money) used in its capital structure.
Prepare a journal entry for the purchase of a truck on April 4 for $72,240, paying $5,900 cash and the remainder on account. Refer to the Chart of Accounts for exact wording of account titles.
JOURNAL
DATE DESCRIPTION POST. REF. DEBIT CREDIT
1
2
3
Answer:
Dr Truck $72,240
Cr Cash $5,900
Cr Accounts Payable $66,340
Explanation:
Preparation of the journal entry for the purchase of a truck on April 4
April 4
Dr Truck $72,240
Cr Cash $5,900
Cr Accounts Payable $66,340
($72,240 - $5,900)
(To record purchase of truck)
Legal Forces Legal forces are important external forces that international managers need to understand. They are developed at the national level, so international ventures should take care to build relationships with local-level lawyers.
The concepts in this exercise are drawn from Chapter 6 and directly address differences in legal approaches at the national level.
Identify each of the legal characteristics by dragging where it is found to the correct characteristic.
U.S. Product Liability Law per se application
EU Competition Law misuse of activity
US and EU extraterritoriality
U.S. Tort Law trade obstacle, nontariff
U.S. Competition Law strict liability
France punitive damages
Answer:
Please find the solution in the attached file.
Explanation:
BR Company has a contribution margin of 18%. Sales are $423,000, net operating income is $76,140, and average operating assets are $131,000. What is the company's return on investment (ROI)
Answer:
58.12%
Explanation:
Return on investment = Net operating income / Average operating assets
Return on investment = $76,140 / $131,000
Return on investment = 0.5812214
Return on investment = 58.12%
So, the company's return on investment (ROI) is 58.12%.
While the evidence suggests that over long periods of time that stocks will outperform bonds, individuals with a long-term investment horizon may still choose to invest in bonds. Is this rational behavior? Why or why not?
Answer:
Stocks and Bonds
Yes. It is a rational behavior for individuals with a long-term investment horizon to choose to invest in bonds rather than investing in stocks despite the overwhelming "evidence that suggests that over long periods of time stocks still outperform bonds."
Rational behavior involves making rational choices that provide optimal levels of benefit or utility for the individual. People who make rational choices would rather choose bonds with lower risks and returns than stocks with higher risks and returns.
Explanation:
Every rational investor would prefer to reduce her risk exposure instead of increasing it. Every investor is also aware that investments with higher risks attract higher returns. However, determining the certainty of the returns is difficult.
Tumbling Haven, a gymnastic equipment manufacturer, provided the following information to its accountant. The company had net fixed assets of $25 million, and other non-current assets of $2 million. The firm has current liabilities of $2 million, long-term debt of $10 million, common stock of $3 million, and retained earnings of $25 million. What amount of current assets did this firm have
Answer:
See below
Explanation:
Given the information above,
Total asset = Current asset + Net fixed assets + Other non current assets
= Current asset + $25m + $2m
= Current asset + $27m
= Long term debt + equity
= 10m + $3m + $25m
= $38m
Current liabilities = $2m
Since current liabilities = Total asset - (long-term debt + equity)
$2m = (current asset + $27m) - $38m
$2m = current asset + $27m - $38m
Current asset = $2m - $27m + $38m
Current asset = $13m
If capital rents for $25 per unit per hour, labor can be hired for $9 per unit per hour, the level of total factor productivity is normalized to 1, and the firm is minimizing costs.(a) Determine whether the production function exhibits diminishing marginal returns to each input.
Answer:
Following are the solution to the given question:
Explanation:
The decrease of a marginal input return implies that its input is increasing by one unit, thereby decreasing its marginal input product.
Function of production
[tex]F(K, L) = AK^{\frac{3}{4}} L^{\frac{3}{4}}[/tex]
Its capital products subject (MPK) is derived by differentiating the factor of production from K.
[tex]MPK = \frac{3}{4}\times AK^{\frac{3}{4}} - 1L^{\frac{3}{4}}\\\\MPK = \frac{3}{4}AK^{-\frac{1}{4}}L^{\frac{3}{4}}\\\\MPK = \frac{3}{4}\times A\times (\frac{L^{\frac{3}{4}}}{K^{\frac{1}{4}}})[/tex]
Note: When a value is changed from numerator to denominator, then the power symbol shifts between positive to negative.
Since k is in the denominator, K decreases [tex]\frac{3}{4}\times A\times (\frac{L^{\frac{3}{4}}}{K^{\frac{1}{4}}})[/tex], and therefore MPK is reduced.
There's hence a decreased effective return on capital again for production function.
Its marginal labor product (MPL) is determined by distinguishing the manufacturing function from L.
[tex]MPL = (\frac{3}{4})\times AK^{\frac{3}{4}}L^{\frac{3}{4}}-1\\\\MPL = (\frac{3}{4})AK^{\frac{3}{4}}L^{-\frac{1}{4}}\\\\MPL = (\frac{3}{4})\times A\times (\frac{K^{\frac{3}{4}}}{L^{\frac{3}{4}}})[/tex]
The denominator of L reduces L [tex](\frac{3}{4})\times A\times (\frac{K^{\frac{3}{4}}}{L^{\frac{3}{4}}})[/tex] and therefore reduces MPL.
So there is a decreasing marginal return to labor in the production function.
You accept a new job with a starting salary of $53,000. You receive a 4% raise at the start of your second year, a 5.5% raise at the start of your third year, and an 11.1% raise at the start of your fourth year. (Round your answers to two decimal places.)
Answer:
a. Salary for the second year:
Salary is to increase by 4% in second year.
= 53,000 * (1 + 4%)
= $55,120
b. Third year salary:
Second year salary will increase by 5.5%
= 55,120 * (1 + 5.5%)
= $58,151.60
c. Fourth year salary:
Third year salary to increase by 11.1%
= 58,151.60 * (1 + 11.1%)
= $64,606.43
he following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Journalize the entries that should be made by the company that (a) increase cash and (b) decrease cash. g
Answer:
Cash (Dr.) $43,000
Sales Revenue (Cr.) $43,000
Bank (Dr.) $20,000
Cash (Cr.) $20,000
Office Supplies (Dr.) $2,300
Cash (Dr.) $2,300
Petty Cash reimbursement (Dr.) $4,500
Cash (Cr.) $4,500
Explanation:
The journal entries are recorded when transaction occurs in a business. These transactions are recoded at the time of inception of transaction. The journal entries are adjusted when there is any change in the transaction.
Magna Lighting Inc. produces and sells lighting fixtures. An entry light has a total cost of $125 per unit, of which $80 is product cost and $45 is selling and administrative expenses. In addition, the total cost of $125 is made up of $90 variable cost and $35 fixed cost. The desired profit is $55 per unit. Determine the markup percentage on product cost.
Answer:
The correct solution is "125%".
Explanation:
Given:
Desired profit,
= $55
Selling and administrative expenses,
= $45
Product cost,
= $80
Now,
The markup percentage will be:
= [tex]\frac{Desired \ profit+Selling \ and \ administrative \ expenses}{Product \ cost}\times 100[/tex]
By putting the values, we get
= [tex]\frac{55+45}{80}\times 100[/tex]
= [tex]\frac{100}{80}\times 100[/tex]
= [tex]125[/tex] (%)
125% is the markup percentage on product cost.
MarkupIt is important to remember that markup is a term used to refer to the difference between the selling price of a product and cost.
SolutionUsing the formula
Desired profit + Selling and administrative expenses/product cost X 100
Desired profit = $55Selling and administrative expenses = $45product cost = $8055+45/80 = 1.25
1.25* 100= 125
= 125%
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How dose the very small businesses finance
Answer:
Small Business Administration offers lenders, mostly traditional banks, a federal guarantee on your loan
Jerry's Flowers had the following cost information related to its purchases of merchandise. Calculate the total cost of merchandise purchased using the information below: Invoice cost of merchandise purchases $100,000 Purchase discounts received $ 9,000 Cost of transportation-in (shipping) $ 500 Costs of purchase returns and allowances $ 400
Answer:
$91,100
Explanation:
Calculation to determine the total cost of merchandise purchased
Using this formula
Total cost of merchandise purchased = Invoice cost of merchandise purchases + Cost of transportation in - Purchase returns and allowances - Purchase discount
Let plug in the formula
Total cost of merchandise purchased= $100,000 + $500 - $400 - $9,000
Total cost of merchandise purchased= $91,100
Therefore the total cost of merchandise purchased is $91,100
examine the value of interactive leadership in the public sector and demonstrate its capacity to empower the followers
The correct answer to this open question is the following.
The value of interactive leadership in the public sector can be seen in the efficiency and effectiveness of the work done by the cabinet of the executive branch. Many different departments and public offices are managed using interactive leadership, informing employers of what needs to be done and the reason why.
Interactive leadership has the capacity to empower employers because it maintains open lines of communication, informing about key activities that need to be done, clarifying goals, establishing strategies, and facilitating the tools to perform and be effective.
The public sector is comprised of what is known as the bureaucracy, and in order to coordinate and lead this public sector, leaders have to properly interact with employers. These employers can openly and honestly express their concerns and opinions to the leader, who takes into consideration this input. The great advantage of using interacting leadership is that people know what is expected of them.
Data concerning Lemelin Corporation's single product appear below: Per Unit Percent of Sales Selling price $ 230 100 % Variable expenses 115 50 % Contribution margin $ 115 50 % The company is currently selling 7,000 units per month. Fixed expenses are $581,000 per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $20 per unit. In exchange, the sales staff would accept a decrease in their salaries of $113,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 300 units. What should be the overall effect on the company's monthly net operating income of this change
Answer:
Lemelin Corporation
The overall effect on the company's monthly net operating income of this change is an increase of $1,500.
Explanation:
a) Data and Calculations:
Sales units per month = 7,000
Fixed expenses per month = $581,000
Per Unit Percent of Sales
Selling price $ 230 100 %
Variable expenses 115 50 %
Contribution margin $ 115 50 %
Income Statements
Before Change After Change Difference
Sales unit 7,000 7,300 300
Sales revenue $1,610,000 $1,679,000 $69,000
Variable cost of sales 805,000 839,500 -34,500
Sales commission 0 146,000 -146,000
Contribution margin $805,000 $693,500 ($111,500)
Fixed expenses 581,000 468,000 113,000
Net operating income $224,000 $225,500 $1,500
The Quorum Company has a prospective 6-year project that requires initial fixed assets costing $962,000, annual fixed costs of $403,400, variable costs per unit of $123.60, a sales price per unit of $249, a discount rate of 14 percent, and a tax rate of 21 percent. What is the present value break-even point in units per year
Answer:
5375
Explanation:
Given that:
Initial Fixed assets costing = $962000
Annual fixed costs = $403400
Variable cost per unit = $123.60
Sales price per unit = $249.00
Discount rate = 14%
Tax rate = 21%
The contribution per unit = Sales price - Variable cost
= $(249.00 - 123.60)
= $125.40
The present value break-even point(BEP) is the region of sales level where the net present value (NPV) equals zero.
Assuming that the sales level = p
i.e.
NPV = PV(of inflows - of outflows)
Inflows = (p * contribution per unit - annual fixed cost)( 1- tax rate) + depreciation * tax rate
= (p * 125.4 - 403400) ( 1 - 0.21) + depreciation * tax rate
where;
depreciation = initial fixed assest cost/ lifetime of the project
= (125.4p - 403400)*0.79 + (962000/6)*0.21
= (125.4p - 403400)*0.79 + (160333.33)*0.21
= (125.4p - 403400)*0.79 + 33670
Now, the PV of the inflows =PV factor(6 years, 14%) * inflows
[tex]= inflows * \dfrac{( 1-(1.14)^{-6})}{0.14}[/tex]
[tex]= inflows * 3.8887[/tex]
Replacing the value for inflows, we have:
[tex]=((125.4p - 403400)*0.79 + 33670)* 3.8887[/tex]
The PV of the outflows = Initial Fixed asset cost = $962000
∴
Equating both together using:
PV(of inflows - of outflows) = 0
((125.4p - 403400)*0.79 + 33670)* 3.8887 - 962000 = 0
((125.4p - 403400)*0.79 + 33670)* 3.8887 = 962000
(99.066p - 318686 + 33670) * 3.8887 = 962000
(99.066p - 285016) * 3.8887 = 962000
385.24p - 1108341.72 = 962000
385.24p= 962000 + 1108341.72
385.24p= 2070341.72
p = 2070341.72 / 385.24
p ≅ 5375
Given the following information, what are the NZD/SGD currency against currency bid-ask quotations?
American Terms European Terms Bank Quotations Bid Ask
New Zealand dollar 0.7265 0.7272 1.3751 1.3765
Singapore dollar 0.6135 0.614 1.6287 1.63
Answer:
In American terms: 0.8436 ÷ 0.8451
In European Terms: 1.1832 ÷1.1853
Explanation:
the computation of the NZD/SGD currency against currency bid-ask quotations is shown below:
In american terms In european terms
USD/NZD 0.7265 ÷ 0.7272 E/NZD 1.3751 ÷ 1.3765
USD/SGD 0.6135 ÷ 0.6140 E/SGD 1.6287 ÷ 1.6300
NZD/SGD = (0.6135 ÷ 0.7272) ÷ (0.6140 ÷ 0.7265) = 0.8436 ÷ 0.8451
(1.6287 ÷ 1.3765) ÷ (1.6300 ÷ 1.3751) = 1.1832 ÷ 1.1853
discuss the benefits of considering a reservation in a restaurant.
Answer:
Another important benefit of making a reservation in the desired restaurant is the better quality of service one will receive. As the restaurant knows at what time and with how many people the customer will arrive, a comfortable table with enough seats and space will be reserved, and the restaurant's staff will be prepared to serve ...
Explanation:
Big Blue University has a fiscal year that ends on June 30. The 2019 summer session of the university runs from June 7 through July 27. Total tuition paid by students for the summer session amounted to $111,000. Required: a. How much revenue should be reflected in the fiscal year ended June 30, 2019
Answer:
The amount of revenue that should be reflected in the fiscal year ended June 30, 2019 is $52,235.29.
Explanation:
Number of days from June 7 to June 30 = 30 - 6 = 24 days
Number of days from July 1 to July 27 = 27 days
Total number of days for the summer session = Number of days from June 7 to June 30 + Number of days from July 1 to July 27 = 24 + 27 = 51
Total tuition paid for the summer session = $111,000
Amount to be reflected in the fiscal year ended June 30 = (Number of days from June 7 to June 30 / Total number of days for the summer session) * Total tuition paid for the summer session = (24 / 51) * $111,000 = $52,235.29
Therefore, the amount of revenue that should be reflected in the fiscal year ended June 30, 2019 is $52,235.29.
You must complete parts 1, 2, 3, 4, 6, 7 and 8 before attempting to complete part 9. Part 5 is optional.
Journalize the closing entries. Then post the journal to the general ledger you created in part 1. Indicate closed accounts by inserting a line in both the balance columns opposite the closing entry. Insert the new balance in the owner's capital account.
If an amount box does not require an entry, leave it blank.
Answer:
Sales (Dr.) $45,000
Income Summary (Cr.) $45,000
Income summary (Dr.) $63,900
Advertising Expense (Cr.) $1,200
Rent expense (Cr.) $5,600
Office Supplies Cost (Cr.) $9,800
Insurance Expense (Cr.) $7,000
Sales Returns (Cr.) $2,900
Interest Expense (Cr.) $3,200
Cost of Goods sold (Cr.) $27,500
Selling and administrative expense (Cr.) $6,700
Income Summary (Dr.) $250,000
Capital investment (Cr.) $ 250,000
Explanation:
Closing entries are prepared to close business transactions that occurred during the month. These transactions are closed with a contra account of Income Summary. All debit balance are credited with a debit of Income summary account and vice versa. the temporary account balances are reset to zero after closing entries are passed.
Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $26,000 were put into production. Direct labor of $20,000 (10 workers x 100 hours x $20 per hour) was incurred. Manufacturing overhead equaled $52,000. By the end of the week, the company had manufactured 2,000 hockey stick. Explain how?
Answer:
Slapshot Company
The total production is $98,000 with a unit cost of $49 per hockey stick.
The selling price per unit should be above $49 when marked-up.
Explanation:
a) Data and Calculations:
Direct materials (wood, paint, Kevlar, and resin) $26,000
Direct labor (10 workers x 100 hours x $20 per hour) 20,000
Manufacturing overhead equaled 52,000
Total production costs = $98,000
Production of hockey stick = 2,000 units
Unit cost of hockey stick = $49 ($98,000/2,000)
