Answer:
10 days
Explanation:
Day's sales in receivables = (365 days × Average receivables) / Net sales
Day's sales in receivables = (365 days × $100,000) / $3,650,000
Day's sales in receivables = 10 days
• Note
Average receivables = (Beginning receivables + Ending receivables) / 2
= ($112,000 + $88,000) / 2
= $100,000
Therefore, the average collection period of the receivables in terms of days was 10days
A project manager has just assigned a team that comes from many countries, including Brazil, Japan, the United States, and Britain. What is her BEST tool for success?
Answer: Communication and well-developed people skills
Explanation:
Since the team comprises of workers who come from different countries, the best tool is the communication and well developed people skill.
These skills are vital when interacting and communicating with others. Since they're from different countries, communication skill is required to build a relationship with them, motivate them and achieve organizational goals.
Journalize Closing Entries Using the information from the Adjusted Trial Balance, journalize the closing entries for the end of the month.
Date SMART TOUCH LEARNING Adjusted Trial Balance December 31, 2016 Accounts and Explanation Debit Credit Account Title Balance Debit Credit 19.800 Accounts Recewable 10.900 Date Office Supplies Accounts and Explanation 200 Debit Credit Prepaid Rent 13.200 Furniture 23.100 Acumulated Depreciation Accounts Payable 2.600 Salanes Payable 600 best Pay 200 Uneaned Re Notes able Date Accounts and Explanation Debit Credit Comment 12.000 Dividends 33.700 Serce Reven 50.000 Depression Expense Rumine Date Accounts and Explanation Debit Credit Interesten 300 Rent tense Slanes Expen 4.600 1,000 Total 113.300
Answer:
Smart Touch Learning
Closing Journal Entries:
Debit Service Revenue $50,000
Credit Income Summary $50,000
To close service revenue to income summary.
Debit Income Summary $12,400
Credit Depreciation Expense $6,500
Credit Interest Expense $300
Credit Rent Expense $4,600
Credit Salaries Expense $1,000
To close expenses to the income summary.
Debit Income Summary $37,600
Credit Retained Earnings $37,600
To close income summary to retained earnings.
Debit Retained Earnings $37,600
Credit Dividends $33,700
To close dividends to retained earnings.
Explanation:
a) Data and Analysis:
SMART TOUCH LEARNING
Adjusted Trial Balance
December 31, 2016
Accounts and Explanation Debit Credit
Account Title Balance Debit Credit
Cash 19,800
Accounts Receivable 10,900
Office Supplies 200
Prepaid Rent 13,200
Furniture 23,100
Accumulated Depreciation 7,900
Accounts Payable 2,600
Salaries Payable 600
Interest Payable 200
Unearned Revenue 5,000
Notes Payable 12,000
Common stock 35,000
Dividends 33,700
Service Revenue 50,000
Depreciation Expense 6,500
Interest Expense 300
Rent Expense 4,600
Salaries Expense 1,000
Total 113,300 113,300
Analysis of Closing Entries:
Service Revenue $50,000 Income Summary $50,000
Income Summary $6,500 Depreciation Expense $6,500
Income Summary $300 Interest Expense $300
Income Summary $4,600 Rent Expense $4,600
Income Summary $1,000 Salaries Expense $1,000
Income Summary $37,600 Retained Earnings $37,600
Retained Earnings $37,600 Dividends $33,700
A company had net sales of $600,000, total sales of $750,000, and an average accounts receivable of $75,000. Its accounts receivable turnover equals:
Answer: 8 times
Explanation:
The Accounts receivable turnover measures how efficiently a company collects the debt that is owed to it. It is calculated by the formula:
Accounts receivable turnover = Net Credit sales / Average accounts receivable
= 600,000 / 75,000
= 8 times
Innovation is the introduction of
New goods or Services or Improvement in offering goods or services.
_________________________[tex]\bf \Large \hookrightarrow \:More \: \: Information : [/tex]
[tex]\Large{\textrm{{{\color{blue}{What \: is \: Innovation ? \: }}}}}[/tex]
Innovation is the process and outcome of creating something new, which is also of value.
________ would be hurt by unexpected inflation. a. A firm that purchased inputs with a two-year contract b. A worker whose wage increases with inflation c. A worker who signed a two-year wage contract d. A firm who hired a worker on a two-year wage contract
Answer:
a firm who hired a worker
Explanation:
on a two year wage contract
A firm that hired a worker on a two-year wage contract would be hurt by unexpected inflation. Thus, option D is correct.
What is inflation?Inflation, in financial aspects, aggregates expansions in the stockpile of cash, in cash salaries, or in costs. Expansion is by and large considered an exorbitant ascent in the general degree of costs.
While high expansion is by and large thought to be hurtful, a few financial experts accept that a modest quantity of expansion can assist with driving monetary development.
Inter worker was having job security for at least 2 years but due to inflation, he might not have a job. This is the most unexpected thing that the person could experience. As it will be treated as something that has caused hindrances in his planning.
Therefore, option D is correct.
Learn more about Inflation, here:
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Calculate the activity rate per grooming order. $fill in the blank 1 per grooming order 2. Calculate, in terms of grooming orders, the: a. Total activity availability fill in the blank 2 grooming orders b. Unused capacity fill in the blank 3 grooming orders 3. Calculate the dollar cost of: a. Total activity availability $fill in the blank 4 b. Unused capacity
Solution :
1. calculate the activity rate per grooming order
Activity rate Amount paid to agent
Number of grooming order
28,000
4,000
Therefore, the activity rate = 7 per grooming order
2. Calculating, in terms of grooming order, the :
a. Total activity availability
Number of grooming orders (A) = 4,000
Number of agents (B) 5
Total activity availability (A x B) 20,000
b). Total activity availability 20,000
Less: Orders actually processed (17,800)
Unused capacity 2,200
3. calculating the dollar cost of :
a). Amount paid to the agent (A 28,000
Number of agents (B) 5
Total activity availability in dollars (AxB) 140,000
b). Unused capacity (A) 2,200
Activity rate (B) 7
Unused capacity in dollars (AxB) 15,400
Assume that EEG Company wanted to reduce the cost of materials handling in each of its stores, and management set a target reduction of 2 percent per year. If a given store has current annual materials handling costs of $200,000 and expected an increase next year due to 15 percent growth, the budget for next year would be: A. $230,000 B. $216,000 C. $196,000 D. $225,400
Beginning three months from now, you want to be able to withdraw $2,700 each quarter from your bank account to cover college expenses over the next four years. If the account pays .67 percent interest per quarter, how m
Answer:
PV= $40,835.6
Explanation:
Giving the following information:
Quarterly withdrawal (A)= $2,700
Number of periods= 4*4= 16 quarters
Interest rate= 0.67% per quarter
To calculate the initial investment, we need to use the following formula:
PV= A*{(1/i) - 1/[i*(1 + i)^n]}
PV= 2,700*{(1/0.0067) - 1 / [0.0067*(1.0067)^16]
PV= $40,835.6
15) A factory manager can improve EVA by A) increasing earnings and increasing capital employed. B) increasing capital employed and reducing earnings. C) reducing earnings and reducing capital employed. D) increasing earnings and reducing capital employed.
Answer: D) increasing earnings and reducing capital employed.
Explanation:
Economic Value Added (EVA) shows how much residual income that a company has after it subtracts the cost of the capital invested from the operating profit that the company got.
If a manager wants to increase EVA therefore, they need to reduce the capital used so that the cost of capital will be less. This should be done while earnings are increased for an even higher increase in EVA.
The contribution margin ratio is interpreted as the percent of: Multiple choice question. each variable cost dollar that remains after deducting fixed costs each sales dollar that remains after deducting fixed costs each sales dollar that remains after deducting unit variable cost
Answer: each sales dollar that remains after deducting unit variable cost
Explanation:
The contribution margin ratio is interpreted as the percent of each sales dollar that remains after the deduction of unit variable cost.
The contribution margin ratio refers to the difference between the sales that a company makes and its variable costs which is expressed as a percentage. The ratio simply indicates the amount of money that is available to cover the fixed costs.
Identify the inventory costing method best described by each of the following separate statements. Assume a period of increasing costs. results in
a. Results in the highest cost of goods sold.
b. Yields the highest net income.
c. Has the lowest tax expense because of reporting the lowest net income.
d. Better matches current costs with revenues,
e. Precisely matches the costs of items with the revenues they generate.
Answer:
LIFO is a form of inventory costing that assumes that more recent stock is sold first and early stock sold last. FIFO is the opposite of this and believes earlier stock is sold first and later stock is sold last.
Weighted average uses a weighted price for all available stock and specific identification uses the exact cost of the inventory.
a. Results in the highest cost of goods sold. ⇒ LIFO
This is LIFO because the closing stock that is subtracted from the cost of goods sold will be earlier stock and as costs are rising, it will be lower than the purchases.
b. Yields the highest net income. ⇒ FIFO
Because FIFO gives a lower Cost of goods sold as opposed to LIFO, it gives a higher income.
c. Has the lowest tax expense because of reporting the lowest net income.⇒ LIFO
Reports lowest income due to high cost of goods sold.
d. Better matches current costs with revenues. ⇒ LIFO
LIFO uses the current inventory which would reflect the current cost of inventory so it matches current costs with revenue.
e. Precisely matches the costs of items with the revenues they generate. ⇒ Specific Identification.
Uses the exact cost of the inventory so precisely matches costs.
John is working on his department's annual plan. Employee performance has been okay and commitment to his department's goals moderate. In the past John
has asked his employees to do their best. This year he is asking each employee to work with him in determining exactly what that employee is going to
accomplish this year. John wants his people to feel the goals are theirs, to invest in their accomplishment. He wants them to believe that they can accomplish
these goals. He thinks he can help this whole process by meeting with each employee quarterly and talking about where the department is and where the
employee is in regards to goal accomplishment. In the past what principle of goal setting did John violate?
O A) Goal commitment
OB) Assigning specific goals
O Setting difficult but acceptable goals
OD) Providing feedback on goal attainment
Answer:B
Explanation:
As discussed in the lecture video, Crocs’ plastic molding and sandal design capabilities have provided the firm with only a temporary competitive advantage, as incumbent firms began selling sandals that were very similar to the Crocs’ clogs. Crocs lost its competitive advantage primarily because of ___________
Answer: c. competitor imitation
Explanation:
When a company makes a good product that people like and therefore brings in profit, other companies will copy that product if it is not protected by law so that they too can make profit as well.
This is what happened to the Crocs' clogs. Other companies imitated them and so Crocs lost their competitive advantage. This led to prices falling for such footwear as the supply increased. It is for this reason that companies try to get patents when they make a product.
Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 12 percent, and the company just paid a dividend of $2.35, what is the current share price
Answer:
53.98
Explanation:
current share price is the present value of dividends
Year 1 = 2.35 x 1.22 = 2.867
Year 2 = 2.867 x 1.22 = 3.50
Year 3 = 3.50 x 1.22 = 4.27
+ 4.27 x 1.05 / (0.12 - 0.05) = 64
I - 12%
PV = 53.98
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
A region is in the middle of a very cold and snowy winter. As a result, hot chocolate has become more desirable, and many of the shipping channels for imported goods have closed due to the weather. What will happen to the price and quantity sold of hot chocolate made with imported cocoa?1) Price and quantity will both increase2) Price will increase and the effect on quantity cannot be determined3) Price will increase and quantity will decrease4) Neither the effect on quantity nor the effect on price can be determined
Answer:
2
Explanation:
As a result of the weather, the demand for chocolate increases. the demand curve shifts to the right. there is an increase in equilibrium price and quantity
As a result of the channels closing, the supply of imported cocoa falls. As a result, supply decreases. the supply curve shifts to the left
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department:
Units: Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $43,000.
Costs in beginning Work in Process - Conversion: $48,850.
Costs incurred in February - Direct Materials: $287,000.
Costs incurred in February - Conversion: $599,150.
Required:
Calculate the equivalent units of conversion.
a. 110,000
b. 140,000
c. 144,000
d. 130,250
e. 165,000
Solution :
UNITS TO ACCOUNT FOR :
[tex]\text{Beginning Work}[/tex] in Process units $ [tex]25,000[/tex]
[tex]\text{Add: Units Started}[/tex] in Process $ [tex]14,000[/tex]
Total Units to account for $ [tex]165,000[/tex]
UNITS TO BE ACCOUNTED FOR:
[tex]\text{Units completed}[/tex] and transferred out $ [tex]135,000[/tex]
[tex]\text{Ending Work}[/tex] in Process $ [tex]30,000[/tex]
[tex]\text{Total Units}[/tex] to be accounted for $ [tex]165,000[/tex]
[tex]\text{Equivalent units}[/tex]
Material cost Conversion
% of completion Units % of completion Units
[tex]\text{Units started}[/tex] [tex]100\%[/tex] $[tex]135,000[/tex] [tex]100\%[/tex] $[tex]135,000[/tex]
and completed.
[tex]\text{Ending Work}[/tex] in Process [tex]100\%[/tex] [tex]30,000[/tex] [tex]30\%[/tex] [tex]9000[/tex]
[tex]\text{Total equivalent units}[/tex] [tex]165,000[/tex] [tex]144,00[/tex]
Therefore, the equivalent units of conversion is [tex]144,000 \text{ units}.[/tex]
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 86,400 units per year is: Direct materials $ 1.50 Direct labor $ 2.00 Variable manufacturing overhead $ 0.60 Fixed manufacturing overhead $ 3.75 Variable selling and administrative expenses $ 1.90 Fixed selling and administrative expenses $ 1.00 The normal selling price is $25.00 per unit. The company’s capacity is 122,400 units per year. An order has been received from a mail-order house for 3,000 units at a special price of $22.00 per unit. This order would not affect regular sales or the company’s total fixed costs. Required: 1. What is the financial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the company’s inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for these units?
Answer:
Delta Company
1. The financial advantage of accepting the special order is:
= $53,700.
2. The minimum selling price for these units that is relevant is:
= $4.10 (the unit variable manufacturing cost).
Explanation:
a) Data and Calculations:
Normal activity level per year = 86,400 units
Direct materials $ 1.50
Direct labor $ 2.00
Variable manufacturing overhead $ 0.60
Variable manufacturing cost per unit $4.10
Fixed manufacturing overhead $ 3.75
Variable selling and administrative expenses $ 1.90
Fixed selling and administrative expenses $ 1.00
The normal selling price = $25.00 per unit.
The company’s capacity is 122,400 units per year
Special Order:
Sales revenue $66,000 (3,000 * $22)
Cost of goods:
Variable manufacturing 12,300 (3,000 * $4.10)
Contribution margin $53,700
Martinique Fashion is an all-equity firm that has projected perpetual EBIT of $344,000. The current cost of equity is 12.4 percent and the tax rate is 34 percent. The company is in the process of issuing $989,000 worth of perpetual bonds with an annual coupon rate of 6.6 percent at par. What is the value of the levered firm
Answer:
$2,167,228
Explanation:
Calculation to determine the value of the levered firm
First step is calculate Unlevered firm value using this formula
Unlevered firm value = EBIT(1 - Tax) / Cost of equity
Let plug in the formula
Unlevered firm value = $344,000(1 - 0.34) / 0.124
Unlevered firm value = $344,000(0.66)/0.124
Unlevered firm value = $1,830,968
Now let calculate the Levered firm value using this formula
Levered firm value = Unlevered firm value + (Debt * Tax rate)
Let plug in the formula
Levered firm value = $1,830,968 + ($989,000 * 0.34)
Levered firm value = $1,830,968+$336,260
Levered firm value = $2,167,228
Therefore the value of the levered firm is $2,167,228
Discuss the two differences of Theory X and Y. Give example
The cost of land includes all of the following except:___.
a. cost of leveling and grading.
b. payments to clear liens.
c. purchase price.
d. cost of fencing and lighting.
Answer:
The answer is D.
Explanation:
The correct option is D. -The cost of fencing and lighting is not part of the cost of land. Why? - Because this is the cost to improve land.
Option A is wrong. Cost of levelling and grading is part of the cost of land
Option C is wrong. Purchase price is the main cost in the determining the cost of land
Option D is also wrong
Exhibit 15-8 The following estimated regression model was developed relating yearly income (y in $1000s) of 30 individuals with their age (x1) and their gender (x2) (0 if male and 1 if female). ŷ = 30 + 0.7x1 + 3x2 Also provided are SST = 1200 and SSE = 384. The yearly income of a 24-year-old female individual is _____. a. $49.80 b. $19,800 c. $19.80 d. $49,800
Answer:
d. $49,800
Explanation:
The yearly income of a 24 year old female is $49,800. Relationship between SST and SSE is defined as SST - SSE.
The equation describes the relationship between two variables that these variables are independent.
Marigold Corp. reported a net loss of $12300 for the year ended December 31, 2017. During the year, accounts receivable decreased $6150, inventory increased $9840, accounts payable increased by $12300, and depreciation expense of $7380 was recorded. During 2017, operating activities ________.
Answer:
See below
Explanation:
Computation of operating activities
Net loss
($12,300)
Add:
Depreciation expense
$7,380
Accounts payable increase
$12,300
Accounts receivable decreased
$6,150
Less:
Inventory increased
($9,840)
Operating activities
$3,690
Therefore, during 2017 operating activities used net cash of $3,690
Quantity demand is 385 and quantity supplied is 203 calculate the shortage
Answer:
Shortage = 182 units
Explanation:
Given:
Quantity demanded = 385
Quantity supplied = 203
Find:
Shortage
Computation:
In economic terms, a shortage occurs when the amount sought exceeds the quantity available at the market price.
Shortage is difference between Quantity demanded and Quantity supplied.
Shortage = Quantity demanded - Quantity supplied
Shortage = 385 - 203
Shortage = 182 units
Record the journal entry for Sales and for Cash Over and Short for each of the following separate situations.a. The cash registerâs record shows $420 of cash sales, but the count of cash in the register is $430.b. The cash registerâs record shows $980 of cash sales, but the count of cash in the register is $972.
Answer and Explanation:
The journal entry is shown below:
Cash $430
To Sales revenue $420
To Cash over and short $10
(Being cash is recorded)
Here cash is debited as it increased the assets and credited the sales as it also increased the revenue
Cash $972
Cash over and short $8
To Sales revenue $980
(being cash is recorded)
Here cash is debited as it increased the assets and credited the sales as it also increased the revenue
Jose rents office space for $20,000 per year. He uses the office to fill out tax returns for 1,000 clients per year. If the office rent increases to $25,000 per year, the marginal cost of filling out tax returns will A. increase, but we cannot determine the amount of the increase with the information given. B. increase by $5. C. not change. D. increase by $5,000.
Answer:
C. Not change
Explanation:
Based on the information given the MARGINAL COST of filling out tax returns will NOT CHANGE reason been that RENT is a FIXED COST because it is not movable which is why RENT
DOES NOT AFFECT MARGINAL COST.
Therefore the marginal cost of filling out tax returns will NOT CHANGE.
Despite aggressive campaigns to attract customers with lower mobile phone prices, Telenor- has
been losing large number of monthly subscribers. Management wants to know why so many
customers are leaving Telenor and what can be done to entice them back. Are customers
deserting because of poor customer services, uneven network coverage, or wireless service
charges? How can the company use information systems to help find the answer? What
management decisions could be made using information from these systems?
Answer:
the company should do research and find out why costomer are decreasing ,or do surveys, interview
Explanation:
the company must upgrade the service that it way offering before
Health and Wealth Company is financed entirely by common stock that is priced to offer a 15 percent expected return. If the company repurchases 25 percent of the common stock and substitutes an equal value of debt yielding 6 percent, what is the expected return on the common stock after refinancing
Answer: 18%
Explanation:
The expected return on the common stock after refinancing will be calculated thus:
Let's assume that common stock is 1000. Therefore, return will be:
= 15% × 1000 = 150
Since 25% of the common stock is repurchased, this will be:
= 25% × 1000 = 250
Then, this 250 is financed by debt at 6%, and this will be:
= 6% × 250 = 15
Then, the new return will be:
= 150 - 15 = 135
Expected Return will now be:
= 135/(1000 - 250)
= 135/750
= 18%
Suppose a third firm enters the market. If they all don't cheat, then they split the profits three ways so that each firm gets 2 million. If one firm cheats, he steals profits from the other two firms and earns 5.5 million while the other firms incur losses of 1 million. Will it be harder or easier to sustain cooperation?
Answer: Harder to sustain cooperation
Explanation:
When the number of firms in an oligopolistic market increases as is the case here, cooperation becomes harder because profits become smaller so companies start to become more selfish.
Also in this scenario, the cheating firm has the incentive to do so because the profit is so much higher than sharing so companies will always be looking to cheat in order to make this profit. The other firms would reply by reducing prices and all of them would suffer.
Farrick and Kenley want to form a business in which they invest money in exchange for stock ownership in their organization. What type of business entity do they wish to form
Answer:
Limited liability company
Explanation:
In simple words, A limited liability corporation (LLC) is a type of private company structure. It's among the most frequent legal structures for forming a company. In a comprehensive partnerships all members are accountable for the firm and have unlimited accountability for its obligations.
Thus the limited liability structure is most suitable for the two.
E6-9 Littleton Books has the following transactions during May May 2 Purchases books on account from Readers Wholesale for $3,300, terms 1/10, n/30. May 3 Pays cash for freight costs of $200 on books purchased from Readers. May 5 Returns books with a cost of $400 to Readers because part of the order is incorrect. May 10 Pays the full amount due to Readers. May 30 Sells all books purchased on May 2 (less those returned on May 5) for $4,000 on account. Required 1. Record the transactions of Littleton Books, assuming the company uses a perpetual inventory system. 2. Assume that payment to Readers is made on May 24 instead of May 10. Record this payment.
Answer:
Littleton Books
Journal Entries:
May 2 Debit Inventory $3,300
Credit Accounts Payable (Readers Wholesale) $3,300
To record the purchase of books on account, terms 1/10, n/30.
May 3 Debit Freight-in $200
Credit Cash $200
To record the freight paid for the books of May 2.
May 5 Debit Accounts Payable (Readers Wholesale) $400
Credit Inventory $400
To record the return of some books.
May 10 Debit Accounts Payable (Readers Wholesale) $2,900
Credit Cash $2,871
Credit Cash Discounts $29
To record the full settlement on account, including discounts.
May 30 Debit Accounts Receivable $4,000
Credit Sales Revenue $4,000
To record the sale of books on account.
Debit Cost of goods sold $2,900
Credit Inventory $2,900
To record the cost of books sold.
May 24 Debit Accounts Payable (Readers Wholesale) $2,900
Credit Cash $2,900
To record the full settlement on account.
Explanation:
a) Data and Analysis:
May 2 Inventory $3,300 Accounts Payable (Readers Wholesale) $3,300
terms 1/10, n/30.
May 3 Freight-in $200 Cash $200
May 5 Accounts Payable (Readers Wholesale) $400 Inventory $400
May 10 Accounts Payable (Readers Wholesale) $2,900 Cash $2,871 Cash Discounts $29
May 30 Accounts Receivable $4,000 Sales Revenue $4,000
Cost of goods sold $2,900 Inventory $2,900
May 24 Accounts Payable (Readers Wholesale) $2,900 Cash $2,900
