Precise Machinery is analyzing a proposed project. The company expects to sell 2,100 units, give or take 5 percent. The expected variable cost per unit is $260 and the expected fixed costs are $589,000. Cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $129,000. The sales price is estimated at $750 per unit, give or take 2 percent. The tax rate is 35 percent. The company is conducting a sensitivity analysis on the sales price per unit using a sales price estimate of $755. What is the operating cash flow based on this analysis

Answers

Answer 1

Answer:

$337,975

Explanation:

Operating Cash Flow:

Operating Cash Flow

{[($755 - $260) x 2,100 units] - $589,000} {1 - 0.35} + {$129,000 x 0.35}

{[$495 x 2,100 units] - $589,000} {0.65} + {$129,000 x 0.35}

{$1,039,500 - $589,000} {0.65} + $45,150

{$450,500‬} {0.65} + $45,150

$292,825 + $45,150

$337,975


Related Questions

The area manager of the Red, White, and Brew Restaurants is considering two possible expansion alternatives. The required investments, expected controllable margins, and the ROIs of each are as follows:
Project Investment Controllable Margin ROI
Phoenix $120,000 $30,000 25%
Chicago $540,000 $50,000 9.25%
The Red, White, and Brew segment has currently $2,000,000 in invested capital and a controllable margin of $250,000.
1. Which one of following projects will increase the Red, White, and Brew division’s ROI?
O Both the Phoenix and Chicago optionsO Only the Phoenix optionO Only the Chicago optionO Neither the Phoenix nor the Chicago options

Answers

Answer:

Only the Phoenix

Explanation:

According to the scenario, computation of the given data are as follow:-

ROI of Red, White And Brew Segment = Controllable Margin ÷ Total Investment × 100

$250,000 ÷ $2,000,000 × 100 = 12.5%

ROI of Phoenix = 25%

ROI of Chicago = 9.25%

So only phoenix will increase the red, white and brew division’s ROI, Because Chicago ROI is less than ROI of Red, White and Brew Segment.

On December 12, 2021, an investment in equity securities costing $77,000 was sold for $94,000. The total of the sale proceeds was credited to the investment in equity securities account. Required: 1. Prepare the journal entry to correct the error, assuming it is discovered before the books are adjusted or closed in 2021. (Ignore income taxes.) 2. Prepare the journal entry to correct the error assuming it is not discovered until early 2022. (Ignore income taxes.)

Answers

Answer:

1.

Dr. Investment Account $17,000

Cr. Gain on Sale             $17,000

2.

Dr. retained Earning      $17,000

Cr. Gain on Sale             $17,000

Explanation:

1.

If an assets is sold more than the book value, then there is a gain on the sales of asset.

Gain on Sale = Sales Proceeds - Book value of Investment = $94,000 - $77,000 = $17,000

As sales proceeds of $94,000 are credited in the Investment account, which needs to be credited by $77,000 only. The excessive amount of $17,000 should be recorded in the Gain on sale account.

2.

Error is not discovered until 2022 and earning for 2021 was transferred to retained earning. So, adjustment should me made in the retained earnings to eliminate the effect.

Absorption and variable costing. (CMA) Miami, Inc., planned and actually manufactured 250,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $19 per unit produced. Variable operating (nonmanufacturing) cost was $13 per unit sold. Planned and actual fixed manufacturing costs were $750,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $420,000. Miami sold 170,000 units of product at $41 per unit.

Required:

1. Miami's 2017 operating income using absorption costing is:

(a) $ 600,000
(b) $ 360,000
(c) $ 780,000
(d) $ 1,020,000
(e) None of above

2. Miami's 2017 operating income using variable costing is:(a) $ 1,100,000(b) $ 600,000(c) $ 360,000(d) $ 780,000(e) None of above

Answers

Answer:

1.(b) $ 360,000

2. (c) $ 360,000

Explanation:

Miami, Inc.

Absorption Costing

Income Statement

Sales 170,000 units * $41         $ 6970,000

Variable manufacturing cost  $19 *170,000 units = 3230,000

Actual fixed manufacturing costs $750,000

Contribution Margin  $ 2990,000

Variable operating (non manufacturing) cost  $13  *170,000 units =2210,000

Actual fixed operating (non manufacturing) costs $420,000

Operating Income                                         $ 360,000

The difference b/w variable and absorption costing is that in variable costing the variable expenses are treated as product costs and fixed expenses as period costs. But in absorption costing the manufacturing expenses variable and fixed are treated as product costs and selling and administrative expenses  both fixed and variable are treated as period costs.

Miami, Inc.

Variable Costing

Income Statement

Sales 170,000 units * $41         $ 6970,000

Variable manufacturing cost  $19 *170,000 units = 3230,000

Variable operating (non manufacturing) cost  $13  *170,000 units =2210,000

Contribution Margin  $1530,000

Actual fixed manufacturing costs $750,000

Actual fixed operating (non manufacturing) costs $420,000

Operating Income                                         $ 360,000

Great Adventures Problem
[The following information applies to the questions displayed below.]
Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2022, for $15,600. They expect to use the Suburban for five years and then sell the vehicle for $6,300. The following expenditures related to the vehicle were also made on July 1, 2022:_________.
1. The company pays $2,700 to GEICO for a one-year insurance policy.
2. The company spends an extra $6,600 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. An additional $2,900 is spent on a deluxe roof rack and a trailer hitch.
3. The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2022, the company pays $2,200 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.
Great Adventures
4. Record the depreciation expense and any other adjustments related to the vehicle on December 31, 2022. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answers

Answer and Explanation:

The Journal entry is shown below:-

Amount should be capitalized for new vehicle = Cost + Painting and new logo cost + Deluxe Roof rack and trailer hitch

= $15,600 + $6,600 + $2,900

= $25,100

We took the cost of painting and deluxe roof and trailer hitch costs into account as they are supposed to increase the vehicle's future benefits.

Depreciation = (Cost - Salvage Value) ÷ Number of Years

= ($25,100 - $6,300) ÷ 5

= $3,760 per year

In the year 2022 vehicle is used only for 6 months (July to Dec), depreciation expense for the year ended December 31, 2022 is

= $3,760 × 6 ÷ 12

= $1,880

So, the Journal entry is

Depreciation expense Dr, $1,880

         To Accumulated Depreciation $1,880

(Being depreciation provided for the year 2022 is recorded)

Therefore for recording the depreciation provided for the year 2022 we simply debited the depreciation expenses while we credited the accumulated depreciation.

The journal entry will include a depreciation account as well as accumulated depreciation.

What is depreciation?

Depreciation can be defined as the amount deducted from the asset because of the wear and tear of the asset after its use Which will reduce the price of the asset.

Capitalization for a new car should be calculated as follows: Cost + Painting and Logo Cost + Deluxe Roof Rack and Trailer Hitch

= $15,600 + $6,600 + $2,900

= $25,100

We factored in the price of the painting, a luxurious roof, and a trailer hitch because such expenses should raise the car's potential future value.

Depreciation is calculated as (Cost - Salvage Value) x Years.

= ($25,100 - $6,300) ÷ 5

= $3,760 annually

For the year ending December 31, 2022, the depreciation expense for the automobile operated for only 6 months (July to December) is

= $3,760 × 6 ÷ 12

= $1,880

The journal entry is therefore

depreciation costs (dr.)  $1,880

accumulated depreciation     $1,880

Learn more about Depreciation, here:

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Firm 1 produces output X with a cost function C_1(X)=\frac{X^2}{200}. Firm 2 produces output Y with a cost function C_2(X,Y)=\frac{Y^2}{100}-2X. Both firms face competitive markets. The competitive price of X is 6 and the competitive price of Y is \$ 5. There is no entry or exit into this market. What is the socially optimal production of X?

Answers

Answer:

800

Explanation:

The objective here is to determine the socially optimal production of X.

For this to occur ; it is crucial that both firm must merge together.

Therefore; the Profit will be = Total revenue - Total Cost

From the question; the total revenue = 6X + 5Y ;     &

The total cost is : [tex]\dfrac{X^2}{200} + \dfrac{Y^2}{100} - 2X[/tex]

Now: The profit = [tex]6X+5Y - \dfrac{X^2}{200}- \dfrac{Y^2}{100}-2X[/tex]

= [tex]8X+5Y - \dfrac{X^2}{200}- \dfrac{Y^2}{100}[/tex]

If the socially optimal production of X is the differential of the equation [tex]8X+5Y - \dfrac{X^2}{200}- \dfrac{Y^2}{100}[/tex]

(X) = [tex]8-\frac{2X}{200} =0[/tex]

= [tex]8-\frac{X}{100} =0[/tex]

= [tex]\dfrac{X}{100}=8[/tex]

= 800

Thus the social optimal production of X = 800

Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted 10,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $10,500 Direct labor 4,800 Total $15,300 The standard materials price is $0.7 per pound. The standard direct labor rate is $12 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $9,500 Actual direct labor 4,400 Total $13,900 There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 8,800 units during June. Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Answers

Answer:

Direct material quantity variance = -$260 Unfavorable

Direct labor time variance = -$176 Unfavorable

Explanation:

The computation of the direct materials quantity and direct labor time variances is shown below:-

Direct material quantity variance = (Standard Direct material ÷ Company budgeted × Produced units) - Actual direct material

= ($10,500 ÷ 10,000 × 8,800) - $9,500

= ($1.05 × 8,800) - $9,500

= $9,240 - $9,500

= -$260 Unfavorable

Direct labor time variance = (Standard Direct labor ÷ Company budgeted × Produced units) - Actual direct labor

= ($4,800 ÷ 10,000 × 8,800) - $4,400

= $0.48 × 8,800) - $4,400

= $4,224 - $4,400

= -$176 Unfavorable

Therefore we have applied the above formula.

The requirement that certain professionals possess a license in order to work in a particular market has the effect of reducing the supply of those services, which in turn causes _________.
O price and the profits of firms in the market to increase.
O price to decrease and the profits of firms in the market to increase.
O price to increase and the profits of firms in the market to decrease.
O price and the profits of firms in the market to decrease.

Answers

Answer:

C

Explanation:

The correct option is  C :price to increase and the profits of firms in the market to decrease

This can be explained by the fact that, since it always been mandatory to possess a license in order to work in a particular market. This certainly  reduces the competition in the market and thus, the prices would increase; therefore, as the firms have to pay for licence thus would reduce the profits of firm.

Balser Corporation manufactures and sells a number of products, including a product called JYMP. Results for last year for the manufacture and sale of JYMPs are as follows: Sales $ 960,000 Less expenses: Variable production costs $ 464,000 Sales commissions 144,000 Salary of product manager 100,000 Fixed product advertising 160,000 Fixed manufacturing overhead 132,000 1,000,000 Net operating loss $ (40,000 ) Balser is trying to decide whether to discontinue the manufacture and sale of JYMPs. All expenses other than fixed manufacturing overhead are avoidable if the product is dropped. None of the fixed manufacturing overhead is avoidable. Assume that dropping Product JYMP would result in a $90,000 increase in the contribution margin of other products. If Balser chooses to discontinue JYMP, the annual financial advantage (disadvantage) of eliminating this product should be:

Answers

Answer:

$2,000 disadvantage

Explanation:

The computation of the annual financial advantage or disadvantage of eliminating the product is shown below:

Sales                                            $960,000

Less Variable production costs    ($464,000)

Less Sales commission                    ($144,000)

Less salary of product manager    ($100,000)

Less fixed product advertising    ($160,000.00)

Less contribution margin from other products        ($90,000)

Income from JYMP                         2,000.00

This is the financial disadvantage for eliminating the product of $2,000 so the company should continue to manufactured the JYMP

And the fixed cost is not considered here as it is not relevant because it has fixed in nature does not have create any impact whether company should manufactured the product or not

Here are the comparative income statements of Cullumber Corporation. CULLUMBER CORPORATION Comparative Income Statement For the Years Ended December 31 2022 2021 Net sales $639,400 $578,200 Cost of goods sold 464,800 433,400 Gross Profit 174,600 144,800 Operating expenses 70,500 43,000 Net income $ 104,100 $ 101,800 (a) Prepare a horizontal analysis of the income statement data for Cullumber Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)

Answers

Answer:

Explanation:

Horizontal analysis of financial statements  is a system of comparing each item of financial statement in a previous year to the current year with each line item analysis expressed in a horizontal pattern for clear comparison.

The change in growth is calculated by deducting the previous year's value of an item of the financial statement from the current year while the percentage growth is calculated by calculating the growth value as a percentage of the previous year value

                          2022         2021         Change     % Change

Net sales         639,400    578,200       61,200     10.6%

Cost of goods  464,800   433400        31,400      7.3%

Gross profit      174,600    144,800       29,800      20.6%

Operating exp. 70,500      43,000        27,500       70%

Net Income       104,100       101,800      2,300       2.26%

The following information was drawn from the balance sheets of the Kansas and Montana companies: Kansas Montana Current assets $ 59,000 $ 78,000 Current liabilities 40,000 43,000 Required a. Compute the current ratio for each company. b. Which company has the greater likelihood of being able to pay its bills? c. Assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return-on-assets ratio.

Answers

Answer:

a) Current ratio for Kansas company is  1.475

Current ratio for Montana company is 1.814

b) Since the current ratio for the Montana company is more than that of the Kansas company which shows better liquidity, the Montana company has the greater likelihood of being able to pay its bills.

c) Kansas company would produce the higher return-on-assets ratio.

Explanation:

                                    Current Assets           Current liabilities

Kansas Company           $ 59,000                     $ 40,000

Montana Company        $ 78,000                      $ 43,000

a) To calculate the current ratio of A company

Current ratio = [tex]\frac{Current Assets}{Current Liabilities}[/tex]

Therefore current ratio for Kansas company = $ 59,000 ÷ $ 40,000 = 1.475

Current ratio for Montana company =  $ 78,000 ÷ $ 43,000 = 1.814

Scenario 28-1 Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment. Refer to Scenario 28-1. What is the unemployment rate?

Answers

Answer:

10.7%

Explanation:

Solution:

Recall that:

The Reports from Bureau of labor statistics is shown as follows:

Employed people = 25 million

Unemployed people = 3 million

Discouraged workers = 1 million

Workers or Homemakers or retirees, or students = 1 million

The next step from this scenario is to find out the unemployment rate

Now,

The rate of unemployed =  (unemployed x 100 ) / labor force

= 300/28

=10.7%

Analysis reveals that a company had a net increase in cash of $22,750 for the current year. Net cash provided by operating activities was $20,500; net cash used in investing activities was $11,250 and net cash provided by financing activities was $13,500. If the year-end cash balance is $27,750, the beginning cash balance was: Multiple Choice $5,000. $17,750. $50,500. $45,500. $44,500.

Answers

Answer:

The correct answer = $5,000

Explanation:

First of all, let us find the difference between the total cash provided and the total cash used up within the period:

Total cash provided = operating activities + financing activities

Total cash provided = 20,500 + 13,500 = $34,000

Total cash used up = investing activities = $11,250

Retained balance from the activities of the period = Total cash provided - Total cash used up

= 34,000 - 11,250 = $22,750

Retained balance from the activities of the period = $22,750

However, we are told that the year-end cash balance = $27,750. This means that the excess cash on the retained balance from operating activities within the period is from the beginning cash balance, and this is calculated as follows:

year-end cash balance = Retained balance from the activities  + beginning cash balance

27,750 = 22,750 + beginning cash balance

∴ beginning cash balance = 27,750 - 22,750 = $5,000

∴ beginning cash balance = $5,000

On January 1, Gemstone Company obtained a $165,000, 10-year, 7% installment note from Guarantee Bank. Thenote requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. The firstpayment consists of interest of $11,550 and principal repayment of $11,942. The journal entry to record the issuance of the installment note for cash on January 1 would include a:_____

Answers

Answer:

Credit to notes payable for $165000

Explanation:

Journal entries for issuance of Note Payable :

Cash Account ..... Debit $165000

7% Note payable Accounts .... Credit $165000

Note:

Note payable is a liability so it is credited as on date of issuance.

c. Assume that neither country experiences population growth or technological progress and that 6 percent of capital depreciates each year. Assume further that country A saves 15 percent of output each year and country B saves 23 percent of output each year. Using your answer from part b and the steady-state condition that investment equals depreciation, find the steady-state level of capital per worker (k∗) , income per worker (y∗) , and consumption per worker (c∗) for each country.

Answers

Answer:

Check Explanation.

Explanation:

Note that the production function of bother country = Y=F(K,L) = K L c : k^1/2 L^1/2.

Thus Y/L = b; b = k^1/2 L^1/2/ L.

b = k^1/2.

From the question we are given that L = 6% = 0.06.

Country A saves 15% = 15/100 = 0.15 and country B saves 23% = 23/100 = 0.23.

For country A,

(a). the steady state;

∆k = 0 = y - dk.

0 = 0.15 × k^1/2 - 0.06k.

K^1/2 = 2.5, k* = 6.25

(b). y = K^1/2 = (6.25)^1/2.

y* = 2.5

(c). C = 2.5 - (0.15 × 2.5) = 2.5 - 0.375.

C* = 2.125.

Then, for COUNTRY B.

(a). ∆k = 0 = y - dk.

0 = 0.25 × k^1/2 - 0.06k.

K^1/2 = 4.167, k* = 17.36

(b). y = K^1/2 = (17.36)^1/2.

y* = 4.167.

(c). C = 4.167 - (0.25 × 4.167) = 2.5 - 0.375.

C* = 3.127.

C* = 2.125.

Contribution Margin Variance, Contribution Margin Volume Variance, Market Share Variance, Market Size Variance Sulert, Inc., produces and sells gel-filled ice packs. Sulert’s performance report for April follows: Actual Budgeted Units sold 290,000 300,000 Sales $1,450,000 $1,515,000 Variable costs 652,500 636,300 Contribution margin $ 797,500 $ 878,700 Market size (in units) 1,250,000 1,200,000 Required: 1. Calculate the contribution margin variance and the contribution margin volume variance. In your computations, round the contribution margin per unit to three decimal places. Contribution margin variance $ Unfavorable Contribution margin volume variance $ Unfavorable 2. Calculate the market share variance and the market size variance. In your computations, round the unit contribution margin to three decimal places and round the market share percentage to one decimal place (for example, .8439 would be rounded to 84.4%). Round your final answers to the nearest dollar. (CMA adapted) Market share variance $ Unfavorable Market size variance $ Favorable

Answers

Answer:

1. Market share variance= $65,903(Unfavorable)

2. Market size variance= $36,613(favourable)

Check attachment for the table

Managers must chart a company's strategic course by Multiple Choice ensuring excess production capacity and/or inventory. building a bigger dealer network. ensuring that marketing and promotion programs are state-of-the-art. developing a thorough understanding of the company's external and internal environments. competing fiercely for a share in the market.

Answers

Answer:

The correct answer is the fourth option: developing a thorough understanding of the company's external and internal environments.  

Explanation:

To begin with, in order to understand that a company's strategy must be guided by thorough understanding of its external and internal environments it is necessary to understand that the system proposed is formed by several factors that influence it and therefore that a manager must study carefully those factors and that system in order to guide the company to a successful work and accomplish the goals by using a strategy that compresses all the information about those factors.

Consider a continuous operation in which raw tomatoes arrive to a processing unit in bulk. The tomatoes arrive at an average steady rate of 75 tons per hour from 8 a.m. to 1 p.m. every day. The processing begins as soon as the tomatoes start arriving, at 8 a.m. However, the processing unit can only process at a steady rate of 25 tons/hr. If need be, the processing unit can process for 24 hours a day. If tomatoes arrive when the processing unit is busy, a queue of inventory will form.
a. How many hours a day does the processing unit operate?
b. What is the maximum inventory of raw tomatoes?
c. What is the capacity utilization of the processing unit?
(Hint: This is equivalent to the fraction of a day the plant operates)
d. How long on average does a tomato stay in the queue?
(Hint: First calculate average inventory and average throughput for the entire time
the processing unit is operating. Then use little’s law to calculate CT.)

Answers

Answer:

15250 T62.5%5 h

Explanation:

a) The amount of tomatoes that arrive in the 5 hours between 8 a.m. and 1 p.m each day is ...

  (75 T/h)(5 h) = 375 T

Processing at the rate of 25 T/h takes ...

  (375 T)/(25 T/h) = 15 h

The processing unit must operate 15 hours per day to process the arriving tomatoes.

__

b) The arriving tomatoes are processed at the rate of 25 T/h, so the net addition to inventory from 8 a.m. to 1 p.m. is 75 -25 = 50 T/h. Over those 5 hours, an inventory accumulates in the amount of ...

  (50 T/h)(5 h) = 250 T

The maximum inventory of raw tomatoes is 250 tons.

__

c) The processing unit operates 15 hours of each 24-hour day, so is operating at 15/24 = 5/8 = 62.5% of capacity.

The capacity utilization of the processing unit is 62.5%.

__

d) Inventory both increases and decreases linearly, so the average inventory is half the peak inventory. Average inventory is 250/2 = 125 tons. This is processed at the rate of 25 T/h, so the amount of time the average tomato spends in inventory is ...

  (125 T)/(25 T/h) = 5 h

The average tomato stays in the queue 5 hours.

Which of the following statements is FALSE? Group of answer choices The right discount rate for a cash flow is the rate of return available in the market on other investments of comparable risk and term. To compensate for the risk that they will receive less than promised if the firm defaults, investors demand a lower interest rate than the rate on U.S. Treasuries. The equivalent after-tax interest rate is r(1 - τ). The actual cash flow that the investor will get to keep will be reduced by the amount of any tax payments.

Answers

Answer:

To compensate for the risk that they will receive less than promised if the firm defaults, investors demand a lower interest rate than the rate on U.S. Treasuries.

Explanation:

Investors are risk averse, this means that they will always prefer those investments with lower risks. Since US treasuries are considered the safest investments,  they are used to calculate the risk free rate.

When investors invest in other securities (not US government) they will always demand a higher return because a private entity or even a state or local government can default on a their debt. That difference between the return yielded by a US security and the return from any other investment is called the risk premium.

Galla Inc. needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects to sell 6420 units. Additional information is as follows: Variable product cost per unit $ 23​ Variable administrative cost per unit 25​ Total fixed overhead 46,500​ Total fixed administrative 30,540​ Using the total cost method what price should Galla charge?

Answers

Answer:

The price Galla should charge is $75

Explanation:

Solution

Now

The total cost = variable product cost + variable administrative cost + fixed overhead + fixed administrative

= ($23 * 6,420) + ($25 * 6,420) + $46,500 + $30,540

= $147,660 + $160,500 + $46,500 + $30,540

= $385,200

Thus,

The total cost per unit = Total cost / units

= $385,200 / 6,420 units

= $60

Hence

The selling price should charge = Cost per unit * 1.25

= $60 * 1.25

= $75

Selected information from Herisau Corporation's accounting records and financial statements for 2021 is as follows ($ in millions): Cash paid to retire notes $ 90 Common shares acquired for treasury 150 Proceeds from issuance of preferred stock 210 Proceeds from issuance of subordinated bonds 270 Cash dividends paid on preferred stock 75 Cash interest paid to bondholders 105 In its statement of cash flows, Herisau should report net cash inflows from financing activities of:

Answers

Answer:

$165

Explanation

The net cash flows from financing activities is the difference between the cash inflows received from finance providers and cash outflows paid to them as shown below:

Net cash flow from financing activities=proceeds from preferred stock+proceeds from subordinated bonds-cash paid for common stock retirement-cash dividends-cash paid to retire notes

Net cash flow from financing activities=$210+$270-$150-$75-$90=$165

Salyers Family Inn is a bed and breakfast establishment in a converted 100 year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below: Activity Level 57 guests Variable overhead costs Supplies $148.20 Laundry 216.60 Fixed Overhead costs Utilities 170.00 Salaries and wages 4,310.00 Depreciation 2,340.00 Total Overhead Cost $7,184.80 The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 53 guests. Group of answer choices $6,680.60 $26,154.40 $7,159.20 $7,184.80

Answers

Answer:

The budgeted overhead= $7,159.2

Explanation:

The budgeted Overhead cost can be determined as follow

The budgeted overhead= Fixed cost + variable cost

Fixed overhead cost =  170.00 + 4,310.00 + 2,340.00 = 6820

Variable cost per activity  = ( 148.20 + 216.60)/57 = 6.4  per guest.

The budgeted cost equation = 6820  + 6.4 x

Where X represent the number of guest

The budgeted overhead = 6820  + (6.4 × 53)= $7,159.2

The budgeted overhead= $7,159.2

Consider the following estimates from the early 2010s of shares of income to each group.   Country Poorest​ 40% Next​ 30% Richest​ 30% Bolivia 10 25 65 Chile 10 20 70 Uruguay 20 30 50 ​1.) Using the​ 4-point curved line drawing tool​, plot the Lorenz curve for Bolivia. Properly label your curve. ​2.) Using the​ 4-point curved line drawing tool​, plot the Lorenz curve for Uruguay. Properly label your curve. Carefully follow the instructions​ above, and only draw the required objects.   Which country has the most nearly equal income​ distribution?   ▼ Chile Uruguay Bolivia .

Answers

Answer:

Check the explanation

Explanation:

Kindly check the attached images below to see the step by step explanation to the question above.

Cawley Company makes three models of tasers. Information on the three products is given below.Tingler Shocker Stunner Sales $296,000 $504,000 $200,000 Variable expenses 145,000 190,000 135,000 Contribution margin 151,000 314,000 65,000 Fixed expenses 114,840 225,160 92,000 Net income $36,160 $88,840 $(27,000) Fixed expenses consist of $290,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler), $79,000 (Shocker), and $34,000 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out.James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company’s net income.

(a) Compute current net income for Cawley Company. Net income $ ______
(b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $290,000 common costs to the two remaining product lines based on their relative sales.)
Tingler Net Income $ _______
Shocker Net Income $ _______
Total Net Income $ _______
(c) Should Cawley eliminate the Stunner product line?
Why or why not?

Net income would _____ from $ ______to $ ________.

Answers

Answer:

Cawley Company

a) Current Net Income

                                        Tingler            Shocker      Stunner     Total

Sales                            $296,000     $504,000   $200,000  $1,000,000

Variable Costs               145,000         190,000      135,000        470,000

Contribution                   151,000         314,000        65,000        530,000

Fixed Expenses              114,840         225,160        92,000       432,000

Net Income                      36,160          88,840        (27,000)       98,000

b) Net Income by product line with Stunner discontinued:

                                                Tingler       Shocker           Total

Sales                                  $296,000       $504,000        $800,000

Variable Costs                      145,000          190,000          335,000

Contribution                          151,000          314,000           465,000

Fixed Expenses                    136,300          261,700           398,000        

Net Income                             14,700          52,300             67,000

c1) Cawley should not eliminate the Stunner product line.

c2) Net income would decrease from $98,000 to $67,000 if the Stunner product line is eliminated.

Explanation:

a) The decision to be made is whether to eliminate a product line or not.  In making such decisions, the relevant costs to be considered are avoidable costs.  Allocated fixed costs are unavoidable and should not be taken into account.

b) Stunner makes a Net Income of $31,000 without the allocated common fixed expenses.  This shows that the allocated common fixed expenses is actually causing Stunner to record Net Loss.  And when Stunner is eliminated the company is not better off.

c) Allocation of Fixed Expenses based on Sales:

Tingler = 296/800 * $290,000 = $107,300 Plus direct cost of $29,000 = $136,300

Shocker = 504/800 * $290,000 = $182,700 Plus direct of of $79,000 = $261,700

Assume the​ following: ​WIP, beginning 2 comma 500 units​ (100% complete as to direct​ materials, 50​% complete as to conversion​ costs) Started 10 comma 500 units during the period Total spoilage is 700 with normal spoilage is calculated to be 550 units Completed and transferred out during the period 6 comma 000 units ​WIP, ending 6 comma 300 units​ (100% complete as to direct​ materials, 60​% complete as to conversion​ costs) Spoiled units 700 and inspection happens when the process is 20​% complete All materials are added at the start of the process Under the weighted average​ method, would would be the equivalent units of work done for the​ period? A. 9 comma 920 B. 10 comma 190 C. 6 comma 000 D. 6 comma 300

Answers

Answer:

B. 10 comma 190

Or none of the given

Explanation:

Particulars         Units       % of Completion         Equivalent Units

                                   Materials Conversion     Materials    Conversion

Transferred       6000         100       100              6000        6000

+Ending WIP       6300         100        60               6300        3780

+Normal Spoilage 550         100        60               550           330

+Abnormal

Spoilage              150          100        60            150               90      

Total                                                                    13000          10200

As we see the total  weighted Equivalent units  for materials are 13000

and for conversion are 10200 . So the correct choice would be 10190 that is choice B which the nearest answer of the choices given to the answer calculated .

Under weighted method the Transferred out units are added to the ending work in process and the normal and abnormal spoilage is also added to find the equivalent units of production.

The other answer would be none of the given choices if exact figures are to be matched.

Paddle​ Paradise, Inc. sells 2 comma 000 canoes per year at a sales price of $ 470 per unit. It sells in a highly competitive market and uses target pricing. The company has calculated its target full product cost at $ 800 comma 000 per year. Fixed costs are $ 320 comma 000 per year and cannot be reduced. What is the target variable cost per unit assuming units sold are equal to units​ produced

Answers

Answer:

Target unitary variable cost= $240 per unit

Explanation:

Giving the following information:

Sales in units= 2,000

Selling price= $470

Total cost= $800,000 per year

Fixed costs= $320,000 per year.

First, we need to calculate the total variable cost:

Total variable cost= total cost - total fixed costs

Total variable cost= 800,000 - 320,000

Total variable cost= 480,000

Now, we can calculate the target unitary variable cost:

Target unitary variable cost= 480,000/2,000

Target unitary variable cost=$240 per unit

Now consider the case in which the manufacturer offers a marginal unit quantity discount for the plywood. The first 20,000 square feet of any order are sold at $1 per square foot, the next 20,000 square feet are sold at $0.98 per square foot, and any quantity larger than 40,000 square feet is sold for $0.96 per square foot. What is the optimal lot size for Prefab given this pricing structure? How much cycle inven

Answers

Answer:

Explanation:

We can use the following method to solve the given problem

We are given following

Annual demand,

D = 20000*12

D = 240,000 sqft

Fixed order cost, is given as

S = $ 400

Considering the unit cost, is given as

C = $ 1

Holding cost, H = 1*20% = $ 0.2

EOQ = sqrt(2DS/H)

= √(2*240000*400/0.2)

= 30,984 sq ft

This is higher than 20,000 and less than 40,000 sq ft. For this reason, the applicable price for this quantity is $ 0.98

For C = $ 0.98, holding cost, H = 0.98*20% = $ 0.196

Revised EOQ = sqrt(2*240000*400/0.196) = 31,298 sq ft

Total annual cost of EOQ policy = D*C + H*Q/2 + S*D/Q

= 240000*0.98 + 0.196*31298/2 + 400*240000/31298

= $ 241,334.5

Now consider the next level of price, C = $ 0.96

Holding cost, H = 0.96*20% = $ 0.192

EOQ = sqrt(2*240000*400/0.192)

= 31633 sqft

This amount is will not be feasible for this price, because it requires a minimum order of 40000 sqft.

Therefore, Q = 40,000

Total annual cost = 240000*0.96 + 0.192*40000/2 + 400*240000/40000

Total annual cost = $ 236,640

Total annual cost is lowest for order quantity of 40,000 sq ft.

1) Optimal lot size = 40,000 sq ft.

2) the annual cost of this policy

= $ 236,640

3) the cycle inventory of plywood at Prefab = Q/2 = 40000/2

At prefeb= 20,000 sq ft

4) let's assume the manufacturer sells all plywood at $ 0.96, then

Holding cost, H = 0.96*20%

H= $ 0.192

EOQ = sqrt(2*240000*400/0.192)

EOQ = 31633 sqft

Total annual cost = 240000*0.96 + 0.192*31633/2 + 400*240000/31633

Total annual cost = $ 236,471.6

Difference in total annual cost = 236640 - 236471.6 = $ 168.4

The stock of Cooper Corporation is​ 70% owned by Carole and​ 30% owned by​ Carole's brother, Chris. During​ 2017, Chris transferred property​ (basis of​ $100,000 and FMV of​ $120,000) as a contribution to the capital of Cooper. During February​ 2018, Cooper adopted a plan of liquidation and subsequently made a pro rata distribution of the property back to Carole and Chris. At the time of the​ liquidation, the property had an FMV of​ $80,000. What amount of loss can be recognized by Cooper on the distribution of​ property?

Answers

Answer:

$0

Explanation:

Since 100% of Cooper Corporation's stock were owned by Carole and Chris (who are siblings), then no one can recognize any loss or gain from the contribution of property (nor the distribution of property). Under section 351, no gain or loss can be recognized for the contribution of property in exchange for stocks in a controlled corporation.

Since the contribution was made through a carryover basis transaction less than 5 years before the liquidation, the distribution is carried out in the same way.

Which of the following is false? Economists who advocate discretionary monetary policy argue that it is more likely to achieve the desired economic results because the monetary authority has the flexibility to shape the best monetary policy to the existing circumstances. Here is an example of zero crowding out: The government spends $100 more and the private sector doesn’t spend any less. Here is an example of complete crowding out: The government spends $100 more and the private sector spends $100 less. Not all economists believe that rule-based monetary policy is preferable to discretionary monetary policy. none of the above

Answers

Answer: None of the above

Explanation:

All of the above are correct.

For option A, Economists who advocate discretionary monetary policy do indeed believe that the monetary authority using this policy is more flexible to shape the best monetary policy to the existing circumstances.

Option B is also correct because Crowding out occurs when the government increases investment by borrowing which leaves less money for the private sector to borrow so they spend less. The government spent money here yet the private sector did not spend less so it is Zero Crowing out.

Option C by option B's explanation holds true because the entire amount the Government increased by was denied the private sector.

Option D is also true as not all Economists prefer rule-based monetary policy to discretionary monetary policy.

They are all true.

Rebel Sound Inc. produced 30,000 audio devices last month. Rebel started the month with $10,000 worth of inventory in Finished Goods. The company incurred $15,000 of various utility and rent charges on their factory, paid $50,000 for raw materials to use in production, and paid employees $60,000 in wages.

During the month, inventory costing $120,000 was completed and transferred to the Finished Goods Inventory. At the end of the month, Rebel had $5,000 of Inventory in Finished Goods, $6,000 in Materials Inventory, and $24,000 still in Work in Process.

Required:

1. What was Rebel Sound Inc Cost of Goods Manufactured for the month?

Answers

Answer:

Cost of goods manufactured is $ 101,000 for the month

Explanation:

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Cost of Goods Manufactured:

$

Work in process inventory, beginning $ -

Direct materials:

Direct Material Used $ 60,000

Direct labor $ 15,000

Factory overhead Applied $ 50,000

Total manufacturing costs $125,000

Total work in process during period $125,000

Work in process inventory, ending $ -24,000

Cost of goods manufactured $ 101,000

​Bob, Kara, and Mark are partners in the BKM Partnership. Bob is a​ 40% partner and has a June 30 tax yearminus−end. Kara owns a​ 40% interest in the partnership and has a September 30 tax yearminus−​end, and Mark owns the remaining​ 20% interest and has an October 31 tax yearminus−end. The partnership does not have a natural business year. What is the required tax yearminus−end for the partnership​ (if no Sec. 444 election is​ made)? A. September 30 B. October 31 C. December 31 D. June 30

Answers

Answer:

D. June 30

Explanation:

Since no Sec. 444 election is​ made, the required tax yearmius-end for the partnership​ will be the tax yearminus−end of a partner with at least 40% interest.

Since Bob is a​ 40% partner and has a June 30 tax yearminus−end, therefore, the required tax yearminus−end for the partnership is June 30.

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