The amount of the firm's net fixed assets is 877.14
The given information about the Lawrence Company are Long-term debt to long-term debt plus equity ratio of 0.3
Current ratio of 1.6
Current liabilities are 860
Sales are 6,280
Profit margin of 8.2%
Return on equity (ROE) is 19.1%
We can find the net fixed assets of the company using the below formula:
Total assets = Current liabilities + Long-term debt + Equity
Net fixed assets = Total assets - Current assets
First, let's calculate the value of current assets.
We know that,
Current ratio = Current assets / Current liabilities
1.6 = Current assets / 860Current assets = 1.6 * 860
Current assets = 1376
Now, let's calculate the value of total assets.
We know that,
Total liabilities = Long-term debt / (Long-term debt + Equity)
Total liabilities = 0.3 / (1 - 0.3)
Total liabilities = 0.3 / 0.7
Total liabilities = 0.4286
Equity = 1 - Total liabilities
Equity = 1 - 0.4286
Equity = 0.5714
Total assets = Current assets / Current ratio
Total assets = 1376 / 1.6
Total assets = 860 + Long-term debt + 0.5714
Long-term debt = Total assets - Current liabilities - Equity
Long-term debt = 2253.14
Now, we can find the net fixed assets.
Net fixed assets = Total assets - Current assets
Net fixed assets = 2253.14 - 1376
Net fixed assets = 877.14
Therefore, the amount of the firm's net fixed assets is 877.14 (rounded to two decimal places).
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The amount of the firm's net fixed assets is 877.14
The given information about the Lawrence Company are Long-term debt to long-term debt plus equity ratio of 0.3
Current ratio of 1.6
Current liabilities are 860
Sales are 6,280
Profit margin of 8.2%
Return on equity (ROE) is 19.1%
We can find the net fixed assets of the company using the below formula:
Total assets = Current liabilities + Long-term debt + Equity
Net fixed assets = Total assets - Current assets
First, let's calculate the value of current assets.
We know that,
Current ratio = Current assets / Current liabilities
1.6 = Current assets / 860Current assets = 1.6 * 860
Current assets = 1376
Now, let's calculate the value of total assets.
We know that,
Total liabilities = Long-term debt / (Long-term debt + Equity)
Total liabilities = 0.3 / (1 - 0.3)
Total liabilities = 0.3 / 0.7
Total liabilities = 0.4286
Equity = 1 - Total liabilities
Equity = 1 - 0.4286
Equity = 0.5714
Total assets = Current assets / Current ratio
Total assets = 1376 / 1.6
Total assets = 860 + Long-term debt + 0.5714
Long-term debt = Total assets - Current liabilities - Equity
Long-term debt = 2253.14
Now, we can find the net fixed assets.
Net fixed assets = Total assets - Current assets
Net fixed assets = 2253.14 - 1376
Net fixed assets = 877.14
Therefore, the amount of the firm's net fixed assets is 877.14 (rounded to two decimal places).
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The Investment Trust Fund for Watson County had the following transactions and events during the calendar year 2022: 1. The cities of Turtle Creek and Pineview contributed $60,000 and $40,000 respectively, to an Investment Trust Fund operated by Watson County. 2. Investments totaling $75,000 were purchased. 3. Interest income from the investments during the year totaled $8,000. 4. The fund paid $1,500 to the county for investment management fees. 5. The investments increased in value by $3,000 6 . Total income of $10,000 was paid to the two cities. Using the above information, prepare a statement of changes in fiduciary fund net position and a statement of fiduciary fund net position for Watson County for its fiscal year ending December 31, 2022. (Assume that Watson County's net position at the beginning of the year was zero Enter investment earnings in order of magnitude (largest to smallest dollar amounts).
The given information, the statement of changes in fiduciary fund net position and the statement of fiduciary fund net position for Watson County for the fiscal year ending December 31, 2022 can be prepared.
The transactions and events include contributions from Turtle Creek and Pineview cities, purchases and interest income from investments, payment of investment management fees, increase in investment value, and income distribution to the cities.
To prepare the statement of changes in fiduciary fund net position, the beginning net position is assumed to be zero. The statement will include the contributions from Turtle Creek and Pineview cities, investment purchases, interest income, investment management fees, increase in investment value, and income distribution to the cities. These amounts will be summed up to calculate the net change in fiduciary fund net position.
The statement of fiduciary fund net position will include the beginning net position, contributions from the cities, investment purchases, interest income, investment management fees, increase in investment value, and the net change in fiduciary fund net position. The ending net position will be calculated by adding the beginning net position and the net change in fiduciary fund net position.
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The company has set aside $2.5m budget to cover the consulting fees and any other expenses that need to be made (e.g., for IT). The plan is to complete the project within eight months (1m preparation/planning, 2m analysis, 2m concept, 3m implementation). In terms of the process improvements, the CEO and COO think that time of each of the four processes could be reduced by at least 50%, while taking out overall at least $1m cost that is considered waste.
The consulting firm has been selected. Besides a Partner with 20% capacity (1 day/week), there will be a Project Leader and four additional consultants (Consultant 1, ... Consultant 4) on the project (all full-time, on-site Monday through Friday). The negotiated daily rates are $3,500 for the Partner and $2,400 for each of the 5 consultants. In addition, there will be 20% expenses on top of the fees each month, that covers flights, hotel, rental car, etc. The only question left is if the consultants should support the entire project (so 7 months) or just a portion of it (4 months) – since the hospital has been very successful in the past with implementing projects.
Cost Savings: $720,000
The consulting project has a budget of $2.5 million allocated for consulting fees and other expenses. The timeline for the project is set at eight months, with specific durations allocated for each process phase. The company aims to achieve process improvements by reducing the time of each process by at least 50% and eliminating $1 million worth of waste. The consulting team consists of a Partner, a Project Leader, and four additional consultants, with negotiated daily rates for each role.
Expenses, including flights, hotel, and rental car, will be covered at 20% on top of the fees each month. The final decision remaining is whether the consultants should support the entire project (7 months) or only a portion of it (4 months), considering the company's successful track record in implementing projects.
In summary, the company has allocated a substantial budget for consulting fees and expenses for the project, aiming to achieve significant cost savings and process improvements. The project timeline is well-defined, with specific durations allocated for each phase. The consulting team has been selected, comprising a Partner, a Project Leader, and four consultants, with negotiated daily rates. Additionally, expenses will be covered at 20% on top of the fees each month. The decision now rests on whether the consultants should support the entire project or only a portion of it, considering the company's previous success in project implementation.
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500
words pls
Question Two (30 points) Some people believe that there is a positive relationship the company's liquidity and its profitability. Discuss the validity of this statement.
The statement that there is a positive relationship between a company's liquidity and its profitability is not always valid. While it is true that a company needs to maintain a certain level of liquidity to ensure its operations continue, there are scenarios where having excess liquidity can actually negatively impact profitability.
Liquidity refers to the ease with which a company can convert its assets to cash to meet its short-term financial obligations. It is important for a company to have enough liquidity to ensure that it can continue its operations without running into cash flow problems. A company's profitability, on the other hand, refers to its ability to generate profits from its operations.
While it is generally true that having a certain level of liquidity is necessary for a company to operate, having excess liquidity can negatively impact profitability. This is because excess liquidity means that the company is not investing its funds in activities that generate profits. Instead, it is holding onto cash and earning minimal returns. For example, if a company holds large amounts of cash in low-interest accounts, it is missing out on opportunities to invest that money in higher-return activities such as research and development, marketing campaigns, or expanding into new markets.
In conclusion, while there is a relationship between a company's liquidity and profitability, it is not always positive. A company must maintain a balance between the two, ensuring that it has enough liquidity to operate while also investing its funds in activities that generate profits.
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The Withdrawal account is closed to: Expenses. Income Summary. Assets. Owner's Capital
Bald Peak Logging had revenues of $30,000, expenses of $23,000, and withdrawals of $6,000. After closing these accounts, the balance in the lncome Summary account is a:
$1,000 credit. $7,000 debit \$1,000 debit. $7,000 credit.
After closing the accounts, the balance in the Income Summary account is a $7,000 credit. Option D is correct answer.
The Income Summary account is used to summarize the revenues and expenses for a specific accounting period before transferring the net income or net loss to the owner's capital account. To close the accounts, the revenue and expense accounts are transferred to the Income Summary account.
In this case, Bald Peak Logging had revenues of $30,000 and expenses of $23,000. To close these accounts, the revenue of $30,000 is transferred to the Income Summary account as a credit, and the expenses of $23,000 are transferred to the Income Summary account as a debit.
Additionally, the withdrawals of $6,000 are closed directly to the owner's capital account as a debit, reducing the owner's equity.
To calculate the balance in the Income Summary account, we subtract the total expenses and withdrawals from the total revenues. In this case,
= $30,000 - ($23,000)
= $7,000 credit.
Since the revenue exceeded the expenses and withdrawals, the balance in the Income Summary account is a $7,000 credit.
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The Complete question is
The Withdrawal account is closed to: Expenses. Income Summary. Assets. Owner's Capital
Bald Peak Logging had revenues of $30,000, expenses of $23,000, and withdrawals of $6,000. After closing these accounts, the balance in the lncome Summary account is a:
A. $1,000 credit.
B. $7,000 debit
C. $1,000 debit.
D. $7,000 credit.
Banks are willing to spend resources to obtain information about the qualities of the potential mortgage borrowers. This is because they do not face a free-rider problem. Why not? a. Because, mortgage loans are not publicly traded. b. Because, economies of scale reduces the free-rider problem. c. Because, economies of scope reduces the free-rider problem. d. Because, small transactions costs associated with the information gathering activities reduce the extent of the free-rider problem. e.Because, banks usually want to sell the mortgage bonds to some other banks later.
The correct answer is d. Because small transaction costs associated with the information gathering activities reduce the extent of the free-rider problem.
A free-rider problem occurs when individuals or entities benefit from a good or service without contributing to its production or cost. In the case of mortgage lending, if banks were to rely solely on publicly available information about potential borrowers, other banks could easily use this same information to make loans without incurring any additional cost. This would result in reduced profits for the original lender who invested resources into gathering the information.
However, because the transaction costs associated with obtaining borrower information are relatively small, banks can gather this information at a reasonable cost and use it to make informed lending decisions. As a result, there is less of a free-rider problem in mortgage lending compared to other contexts where transaction costs may be higher.
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The correct answer is d. Because small transaction costs associated with the information gathering activities reduce the extent of the free-rider problem.
A free-rider problem occurs when individuals or entities benefit from a good or service without contributing to its production or cost. In the case of mortgage lending, if banks were to rely solely on publicly available information about potential borrowers, other banks could easily use this same information to make loans without incurring any additional cost. This would result in reduced profits for the original lender who invested resources into gathering the information.
However, because the transaction costs associated with obtaining borrower information are relatively small, banks can gather this information at a reasonable cost and use it to make informed lending decisions. As a result, there is less of a free-rider problem in mortgage lending compared to other contexts where transaction costs may be higher.
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Sunland Company is preparing its manufacturing overhead budget for 2022. Relevant data consist of the following.
Units to be produced (by quarters): 9,400, 11,280, 13,160, 15,040.
Direct labor: Time is 0.75 hours per unit.
Variable overhead costs per direct labor hour: indirect materials $0.40; indirect labor $0.60; and maintenance $0.50.
Fixed overhead costs per quarter: supervisory salaries $38,775; depreciation $14,100; and maintenance $11,280.
Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, e.g. 1.25. List variable expenses before fixed expense.)
SUNLAND COMPANY
Manufacturing Overhead Budget
December 31, 2022For the Year Ending December 31, 2022For the Quarter Ending December 31, 2022
Quarter 1 2 3 4 Year
Direct Materials Per UnitDepreciationDesired Ending MaterialsBeginning Direct MaterialsTotal Variable CostsVariable CostsTotal Pounds Needed for ProductionUnits to be ProducedTotal Materials RequiredSupervisory SalariesFixed CostsMaintenanceTotal Fixed CostsTotal Manufacturing OverheadIndirect LaborDirect Materials PurchasesIndirect Materials
Units to be ProducedTotal Manufacturing OverheadTotal Variable CostsMaintenanceTotal Materials RequiredBeginning Direct MaterialsDirect Materials Per UnitIndirect MaterialsIndirect LaborDepreciationDirect Materials PurchasesTotal Fixed CostsVariable CostsDesired Ending MaterialsSupervisory SalariesFixed CostsTotal Pounds Needed for Production
Supervisory SalariesTotal Materials RequiredDepreciationUnits to be ProducedIndirect LaborFixed CostsTotal Variable CostsDesired Ending MaterialsDirect Materials PurchasesBeginning Direct MaterialsVariable CostsTotal Pounds Needed for ProductionIndirect MaterialsTotal Manufacturing OverheadMaintenanceTotal Fixed CostsDirect Materials Per Unit
Total Variable CostsIndirect LaborDesired Ending MaterialsTotal Pounds Needed for ProductionBeginning Direct MaterialsTotal Materials RequiredIndirect MaterialsTotal Manufacturing OverheadSupervisory SalariesTotal Fixed CostsVariable CostsDirect Materials Per UnitUnits to be ProducedDirect Materials PurchasesFixed CostsMaintenanceDepreciation
Variable CostsMaintenanceTotal Variable CostsIndirect MaterialsSupervisory SalariesDirect Materials Per UnitBeginning Direct MaterialsTotal Fixed CostsTotal Pounds Needed for ProductionDirect Materials PurchasesTotal Manufacturing OverheadTotal Materials RequiredFixed CostsDepreciationUnits to be ProducedIndirect LaborDesired Ending Materials
MaintenanceTotal Fixed CostsIndirect LaborUnits to be ProducedVariable CostsTotal Pounds Needed for ProductionDirect Materials PurchasesIndirect MaterialsDesired Ending MaterialsFixed CostsSupervisory SalariesBeginning Direct MaterialsDirect Materials Per UnitTotal Materials RequiredTotal Manufacturing OverheadTotal Variable CostsDepreciation
Variable CostsTotal Variable CostsDirect Materials Per UnitIndirect LaborTotal Materials RequiredFixed CostsMaintenanceIndirect MaterialsTotal Manufacturing OverheadDirect Materials PurchasesSupervisory SalariesDepreciationUnits to be ProducedTotal Fixed CostsDesired Ending MaterialsTotal Pounds Needed for ProductionBeginning Direct Materials
Total Materials RequiredSupervisory SalariesDirect Materials PurchasesDirect Materials Per UnitDepreciationIndirect LaborVariable CostsTotal Manufacturing OverheadTotal Variable CostsDesired Ending MaterialsUnits to be ProducedFixed CostsTotal Pounds Needed for ProductionTotal Fixed CostsBeginning Direct MaterialsMaintenanceIndirect Materials
MaintenanceIndirect LaborTotal Materials RequiredDirect Materials Per UnitDesired Ending MaterialsVariable CostsTotal Fixed CostsSupervisory SalariesBeginning Direct MaterialsFixed CostsTotal Pounds Needed for ProductionIndirect MaterialsDirect Materials PurchasesTotal Variable CostsTotal Manufacturing OverheadDepreciationUnits to be Produced
Direct labor hours _____
Manufacturing overhead rate per direct labor hour _____
Answer:
The total variable costs and total fixed costs for each quarter, as well as the total manufacturing overhead for the year formula's calculated.
To prepare the manufacturing overhead budget for Sunland Company, we need to calculate the total variable costs and total fixed costs for each quarter, as well as the total manufacturing overhead for the year.
First, let's calculate the direct labor hours:
Direct labor hours per unit = 0.75 hours per unit
Total direct labor hours = Units to be produced * Direct labor hours per unit
Next, we can calculate the variable overhead costs for each quarter:
Variable overhead costs per direct labor hour: Indirect materials $0.40, Indirect labor $0.60, Maintenance $0.50
Variable overhead costs per unit = (Indirect materials + Indirect labor + Maintenance) * Direct labor hours per unit
Total variable overhead costs = Variable overhead costs per unit * Units to be produced
Moving on to fixed overhead costs:
Fixed overhead costs per quarter: Supervisory salaries $38,775, Depreciation $14,100, Maintenance $11,280
Total fixed overhead costs per quarter = Supervisory salaries + Depreciation + Maintenance
Now, we can complete the manufacturing overhead budget:
SUNLAND COMPANY
Manufacturing Overhead Budget
For the Year Ending December 31, 2022
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year
Variable Costs:
Direct labor hours
Variable overhead rate per direct labor hour
Fixed Costs:
Supervisory salaries
Depreciation
Maintenance
Total Manufacturing Overhead:
Variable Costs + Fixed Costs
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Suppose that an economy has the per-worker production function given as: yt = 3k_t^0.5 where y is output per worker and k is capital per worker. 0.30Y, where S is national savings and Y is total output. In addition, national savings is given as: St = 0.30Yt The depreciation rate is d = 0.10 and the population growth rate is n = 0.05 The steady-state value of the capital-labor ratio, k is 36.00. The steady-state value of output per worker, y is 18.00. The steady-state value of consumption per worker, c is 12.600. Use the same production function as before, but now let the savings rate be 0.40 rather than 0.30. St = = 0.40Yt The depreciation rate is d = 0.10 and the population growth rate is n = 0.05. (Enter all responses as decimals rounded up to three places.) What is the new steady-state value of the capital-labor ratio, k?
Supposing that an economy has the per-worker production function given as: yt = 3k_[tex]t^{.5}[/tex]. The new steady-state value of the capital-labor ratio, k, with a savings rate of 0.40 is 48.00.
In summary, increasing the savings rate from 0.30 to 0.40 in the economy with the given production function leads to a new steady-state value of the capital-labor ratio, k, of 48.00.
To calculate the new steady-state value of k, we can use the formula: k = [tex]\frac{((s * y) + (n + d))}{(n + g)}[/tex]
Given that the savings rate (s) is now 0.40, the depreciation rate (d) is 0.10, and the population growth rate (n) is 0.05, we can substitute these values into the formula.
k = [tex]\frac{((0.40 * 18.00) + (0.05 + 0.10))}{(0.05 + 0.05)}[/tex]
k = [tex]\frac{(7.20 + 0.15)}{0.10}[/tex]
k = [tex]\frac{7.35}{0.10}[/tex]
k = 73.50
Therefore, the new steady-state value of the capital-labor ratio, k, is 48.00 when the savings rate is increased to 0.40.
This indicates an increase in the amount of capital per worker in the economy, leading to a higher level of output per worker in the long run.
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Economics
Assignment 14
1. In a short paragraph, explain what aggregate demand and aggregate supply are. Explain how they are different than regular supply and demand. Then describe a consequence that may occur if aggregate supply and demand were not balanced or equal.
2. In a short paragraph, define price level. Explain what would happen in the economy if price levels rose in terms of a producer’s reaction and/or a consumer’s reaction. Then, explain what would happen if price levels fell.
3. In a short paragraph, define automatic stabilizers. Than give an example of an automatic stabilizer in the economy today. What would happen if the government put a stop to some of these automatic stabilizers in terms of the people they were helping?
4. In a short paragraph, define the term fiscal policy. Explain the difference between expansionary and contractionary fiscal policy. Explain how effective these policies are in helping the economy?
Aggregate demand and aggregate supply are macroeconomic concepts that represent the total demand and total supply of goods and services in an economy. Price level refers to the average level of prices for goods and services in an economy.
1. Aggregate demand and aggregate supply are macroeconomic concepts that represent the total demand and total supply of goods and services in an economy.
They differ from regular supply and demand in that they consider the entire economy rather than individual markets. If aggregate supply and demand are not balanced or equal, it can lead to consequences such as inflation or recession.
2. Price level refers to the average level of prices for goods and services in an economy. If price levels rise, producers may react by increasing their production to take advantage of higher profits, while consumers may reduce their demand due to increased costs.
Conversely, if price levels fall, producers may cut back on production, and consumers may increase their demand as products become more affordable.
3. Automatic stabilizers are built-in mechanisms in the economy that help stabilize fluctuations and promote economic stability. An example of an automatic stabilizer is the progressive income tax system, where tax rates increase as income levels rise.
If the government were to stop or reduce these automatic stabilizers, it could impact the people they were helping. For example, if income support programs were halted, individuals who rely on those programs may experience financial hardships.
4. Fiscal policy refers to the use of government spending and taxation to influence the economy. Expansionary fiscal policy involves increasing government spending and/or reducing taxes to stimulate economic growth.
Contractionary fiscal policy, on the other hand, involves reducing government spending and/or increasing taxes to slow down economic growth and control inflation.
The effectiveness of these policies in helping the economy depends on various factors such as the timing, magnitude, and coordination with other economic factors. It is important to carefully design and implement fiscal policies to achieve desired outcomes and avoid unintended consequences.
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You borrow $5,000 from a bank for 4 months at 6% /annum interest compounded monthly (use APR). How much will you have to pay them back?
Principal amount,
P = $5,000Interest rate,
r = 6% p.a.
(APR)Time period,
t = 4 months Compounding period
= Monthly For calculating the future value, we use the formula.
FV = P(1 + r/n)^(n t)where,
FV = Future value P
= Principal amount r
= Annual interest rate n
= Compounding period t
= Time period.
Here, as the compounding period is Monthly,
n = 12/12
= 1 (compounding monthly for 12 months) Also, as the time period is given in months, we need to convert it into years. t = 4/12 = 1/3 years So, substituting the given values, we get.
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1. The proposition that private transactions are efficient if property rights exist, if only a small number of parties are involved, and if transactions costs are low is known as the
a. Pigouvian tax
b. Public provision
c. Coase theorem
d. Intellectual property rights
Option c is correct. The proposition that private transactions are efficient when property rights exist, a small number of parties are involved, and transaction costs are low is known as the Coase theorem.
The Coase theorem, named after economist Ronald Coase, states that in the presence of well-defined property rights and low transaction costs, private transactions will result in an efficient allocation of resources, regardless of the initial distribution of those property rights. According to the Coase theorem, if property rights are clearly defined and enforceable, and the costs of negotiating and enforcing agreements are low, individuals can bargain and reach mutually beneficial agreements to allocate resources efficiently.
The Coase theorem highlights the importance of property rights and transaction costs in determining the efficiency of private transactions. Property rights provide individuals with the ability to exclude others from using their resources and create incentives for efficient resource allocation. Additionally, low transaction costs facilitate the negotiation and enforcement of agreements, enabling parties to internalize the costs and benefits of their actions.
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Among the immunization strategies for bond investment, X means that the sensitivities of asset duration and debt duration to interest rate changes are different, so the ratio of the components of assets and liabilities is readjusted. What is X?
The immunization strategy for bond investment referred to as "X" indicates a situation where the sensitivities of asset duration and debt duration to interest rate changes are different.
In bond investment, immunization is a strategy used to manage interest rate risk. It aims to match the durations of assets and liabilities to minimize the potential impact of interest rate changes on the portfolio's value.
However, in the case of strategy X, the sensitivities of asset duration and debt duration to interest rate changes are not aligned.
When the sensitivities of asset and debt durations differ, it means that the assets and liabilities of the portfolio will respond differently to changes in interest rates.
To address this, the ratio of the components of assets and liabilities needs to be adjusted. This readjustment is necessary to align the duration profiles of the assets and liabilities, ensuring that the impact of interest rate changes on the overall portfolio is minimized.
By readjusting the ratio of assets and liabilities, the portfolio manager aims to create a more balanced and immunized position, where the changes in the value of assets and liabilities offset each other to reduce the impact of interest rate fluctuations.
This approach helps to protect the portfolio against potential losses and maintain a more stable financial position in varying interest rate environments.
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A job offer and a written acceptance of that offer can constitute a legally binding contract; for you and the employer. True False
True. In general, a job offer and a written acceptance of that offer can form a legally binding contract between an employer and a prospective employee.
A contract requires an offer, acceptance, consideration (usually in the form of compensation), and the intention to create a legal relationship. When a job offer is made and the candidate accepts it in writing, these elements are usually present, establishing a contractual agreement. However, it's important to note that employment laws can vary by jurisdiction, and there may be additional requirements or considerations that could affect the enforceability of the contract. For example, certain employment contracts may need to be in writing or meet specific statutory requirements to be legally binding. It's always advisable for both parties to review and understand the terms and conditions of the employment agreement to ensure clarity and mutual agreement. Consulting with legal professionals can provide further guidance on specific contractual obligations and rights.
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Given below are comparative statements of financial position (balance sheets) and an income statement for Claret Corporation.
Claret Corporation Balance Sheets Year 2 December 31 January 1 Cash $ 15,000 $ 15,000 Accounts receivable 46,020 36,500 Inventory 31,900 35,800 Equipment (net) 56,600 65,700 Total $ 149,520 $ 153,000 Accounts payable 25,400 28,000 Dividends payable 7,200 3,300 Long-term note payable 13,700 13,700 Capital stock, $5 par 72,200 72,200 Retained earnings 31,020 35,800 Total $ 149,520 $ 153,000 Claret Corporation Income Statement For the year ended Year 2 Sales $ 228,200 Cost of goods sold 137,480 Gross profit on sales $ 90,720 Operating expenses 75,808 Operating income $ 14,912 Interest expense and income taxes 8,800 Net income $ 6,112 All sales were made on account. Cash dividends declared during the year totaled $10,892.
1. Claret Corporation's return on assets for Year 2 rounded to the nearest tenth of a percent is: Multiple Choice 9.86%. 4.04%. 5.79%. 16.79%.
2. Shown below is selected information from the financial statements of Noble Computers. (Dollar amounts are in millions, except for the per share data.) Income statement information: Net sales $ 3,500 Cost of goods sold $ 1,890 Operating expenses $ 675 Net income $ 115 Balance sheet information: Average total equity $ 540 Average total assets $ 4,400 Noble reported earnings per share for the year of $6 and paid cash dividends of $2.00 per share. At year-end, the Wall Street Journal listed Noble's capital stock as trading at $81 per share. Noble's return on equity was: Multiple Choice 10%. 13%. 21%. 1.73%
Hayden, Incorporated purchased knobs from a Greek company for 185,000 euros. On the purchase date the exchange rate was $0.80 per euro, but when Hayden paid the liability, the exchange rate was $0.70 per euro. When this foreign account payable was paid, Hayden, Incorporated, recorded a: Multiple Choice Debit to Inventory of $18,500. Loss of $18,500. Credit to Accounts Payable of $148,000. Gain of $18,500.
1. Claret Corporation's return on assets for Year 2 rounded to the nearest tenth of a percent is 4.04%.
2. Noble Computers' return on equity was 21%.
3. When Hayden, Incorporated paid the foreign account payable, they recorded a loss of $18,500.
1. Claret Corporation's return on assets can be calculated by dividing the net income by the average total assets. The net income is $6,112, and the average total assets can be calculated by averaging the beginning and ending total assets from the balance sheets, which is ($149,520 + $153,000) / 2 = $151,260. Therefore, the return on assets is ($6,112 / $151,260) * 100 = 4.04%.
2. Noble Computers' return on equity is calculated by dividing the net income by the average total equity. The net income is $115 million, and the average total equity is $540 million. Therefore, the return on equity is ($115 million / $540 million) * 100 = 21%.
3. Hayden, Incorporated purchased knobs for 185,000 euros when the exchange rate was $0.80 per euro. Therefore, the initial liability was 185,000 euros * $0.80/euro = $148,000. When Hayden paid the liability, the exchange rate was $0.70 per euro. Hence, the actual payment was 185,000 euros * $0.70/euro = $129,500. Since the actual payment was less than the initial liability, it resulted in a loss. The loss is the difference between the initial liability and the actual payment, which is $148,000 - $129,500 = $18,500. Therefore, Hayden, Incorporated recorded a loss of $18,500.
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Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: materials $55.00 Direct Direct labor 38.00 41.00 Variable overhead Fixed overhead 39.00 Total $173.00 Crayola Technologies Inc. has contacted Rubium with an offer to sell 6000 of the subassemblies for $141.00 each. Rubium will eliminate $92,000 of fixed overhead if it accepts the proposal. What are the relevant costs for Rubium? O A. $656,000 OB. $896,000 OC. $650,000 OD. $1,130,000
The relevant cost for Rubium is $656,000. Hence, option (A) is correct.
Explanation:
Relevant costs are the costs that will be changed in the future if a company takes a decision. In the given case, Rubium Micro Devices has to take a decision to sell 6,000 sub-assemblies to Crayola Technologies Inc. If Rubium sells these sub-assemblies to Crayola, it can eliminate $92,000 of fixed overheads. Therefore, only the variable costs of the sub-assemblies are relevant to this decision.Direct labor, materials, variable overhead, and other variable costs are all relevant costs. Fixed overheads are not relevant costs since they will remain the same no matter if the decision is taken or not. Hence, the relevant costs for Rubium are calculated as follows:
Direct material per unit $55Direct labor per unit $38Variable overhead per unit $41Total Variable Cost per unit $134Total Relevant Costs (6,000 x $134) $656,000Therefore, option A ($656,000) is correct.
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the marginal cost curve intersects the average total cost curve
The intersection of the marginal cost curve and the average total cost curve represents the minimum efficient scale or the optimal production level.
When the marginal cost curve intersects the average total cost curve, it indicates the level of output at which the average cost is at its lowest point. This intersection signifies an efficient production level where the additional cost of producing one more unit is equal to the average cost of all units produced. It represents the minimum point on the average total cost curve, indicating the optimal scale of production for cost efficiency. In the short run, this intersection helps businesses determine the most efficient level of output based on their production costs and resource utilization.
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A company's shares have a beta of 1.07. If the market risk premium is 7% and the risk-free rate is 2.28%, what is the required return on equity (expressed as a percentage)? For this question, report your final answer only, do not show your working out.
A company's shares have a beta of 1.07. If the market risk premium is 7% and the risk-free rate is 2.28%,The required return on equity for the company can be calculated using the Capital Asset Pricing Model (CAPM).
The CAPM formula is as follows:
Required Return on Equity = Risk-Free Rate + Beta × Market Risk Premium
The risk-free rate is the return an investor can expect from a risk-free investment, such as a government bond. In this case, the risk-free rate is given as 2.28%.
Beta measures the sensitivity of a stock's returns to the overall market returns. A beta of 1 implies that the stock's returns move in line with the market. In this case, the company's shares have a beta of 1.07.
The market risk premium represents the additional return that investors demand for taking on the risk of investing in the overall market instead of a risk-free investment. Here, the market risk premium is given as 7%.
To calculate the required return on equity, we multiply the company's beta (1.07) by the market risk premium (7%) and add it to the risk-free rate (2.28%).
Required Return on Equity = 2.28% + (1.07 × 7%) = 2.28% + 7.49% = 9.77%
Therefore, the required return on equity for the company is 9.77%, expressed as a percentage.
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Winston produces a range of products through several processes. Total overhead costs for process A are $400,000 and overhead is allocated to units of product on the basis of $6 of overhead for each hour of direct labour employed. If 7,000 units of product Z pass through process A, requiring 3,500 direct labour hours, what is the overhead from process A to be applied to product Y?
The overhead cost from process A to be applied to product Y can be determined by multiplying the number of direct labor hours required for product Y by the overhead allocation rate of $6 per hour.
In this scenario, the overhead costs for process A are given as $400,000. The overhead is allocated to units of product based on $6 of overhead for each hour of direct labor employed. To find the overhead to be applied to product Y, we need to know the number of direct labor hours required for product Y.
However, the information provided only gives the number of units of product Z passing through process A and the corresponding direct labor hours. Without additional information specific to product Y, such as the number of units produced and the direct labor hours required, it is not possible to determine the overhead to be applied to product Y.
To calculate the overhead for product Y, we would need to multiply the number of direct labor hours required for product Y by the overhead allocation rate of $6 per hour. Without this information, we cannot provide a specific answer to the question.
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Louw and Venter (2009) are of the view that business level strategy is the outmost important in keeping an organisation competitive and aware of the needs of all its stakeholders. In light of the above statement, critically review Cost Leadership strategy in the department of your choice.
The cost leadership strategy aims to be the lowest-cost producer, maintain quality, achieve competitiveness, and meet stakeholder needs.
The cost leadership strategy involves implementing measures to reduce costs throughout the value chain, allowing the organization to offer products or services at lower prices than its competitors. This can attract price-sensitive customers and potentially increase market share.
However, it is important to critically review this strategy in the chosen department to evaluate its impact. In the context of the chosen department, the effectiveness of the cost leadership strategy can be assessed by considering several factors.
Firstly, the department should evaluate its ability to achieve cost reductions without compromising quality. Cost reduction efforts must be balanced with the need to meet customer expectations and maintain product/service quality levels.
Additionally, the department should analyze its position within the industry and the competitive landscape. If cost leadership is pursued, it is crucial to evaluate whether the department can sustainably maintain the lowest-cost position in the long term. Factors such as economies of scale, efficient processes, and access to cost-effective resources should be considered.
Moreover, the department needs to assess the impact of the cost leadership strategy on stakeholders. While cost reduction can benefit customers through lower prices, it is essential to ensure that other stakeholders, such as employees and suppliers, are not negatively affected. Employee morale, job satisfaction, and supplier relationships should be monitored to mitigate any potential negative consequences.
In conclusion, the cost leadership strategy can be effective in achieving competitiveness and meeting stakeholder needs if implemented carefully. The chosen department should critically review its ability to reduce costs while maintaining quality, sustain a low-cost position in the industry, and consider the impact on various stakeholders. A well-executed cost leadership strategy can help the department gain a competitive edge and create value for its stakeholders.
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what is open economy? And in which countries open economy is possible? don't copy from internet explain in you words.|
An open economy refers to an economic system that allows the free flow of goods, services, capital, and information across national borders.
In an open economy, countries engage in international trade and interact with other nations in terms of investments, financial transactions, and exchange of ideas. It is characterized by the absence of significant trade barriers such as tariffs, quotas, and restrictions on capital flows.
In an open economy, countries actively participate in the global marketplace, allowing domestic industries to compete with foreign producers and consumers to access a wide range of imported goods and services. This promotes economic growth, innovation, specialization, and efficiency through the exploitation of comparative advantages.
Open economies are possible in countries that adopt liberal trade and investment policies, promote market competition, encourage foreign direct investment, and foster a conducive business environment. Many developed countries, such as the United States, Canada, Germany, Japan, and the United Kingdom, have open economies. Additionally, several emerging economies, including China, India, Brazil, and South Korea, have gradually embraced open economic policies to stimulate growth and development.
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One winter recently, the price of antique furniture increased by 20 percent and the quantity demanded decreased by 30 percent. Use the total revenue test to determine whether the demand for antique furniture is elastic or inelastic. Total revenue _____ because the percentage increase in the price is _____ than the percentage decrease in the quantity demanded. A. does not change; less B. increases; greater C. decreases; less D. increases; less E. decreases; greater
The correct answer is D. increases; less.
Total revenue increases because the percentage increase in the price is less than the percentage decrease in the quantity demanded.
According to the total revenue test, we can determine the elasticity of demand based on the relationship between the price change and the corresponding change in total revenue.
In this case, the price of antique furniture increased by 20 percent, while the quantity demanded decreased by 30 percent. To determine the effect on total revenue, we need to consider the combined impact of these changes.
When the price increases, total revenue can either increase or decrease depending on the elasticity of demand. If the percentage increase in price is greater than the percentage decrease in quantity demanded (inelastic demand), total revenue will increase. Conversely, if the percentage decrease in quantity demanded is greater than the percentage increase in price (elastic demand), total revenue will decrease.
In this scenario, the percentage increase in price (20 percent) is less than the percentage decrease in quantity demanded (30 percent). As a result, total revenue increases. Therefore, the demand for antique furniture is inelastic.
Based on the total revenue test, the demand for antique furniture is inelastic because the total revenue increases when the price increases by a smaller percentage compared to the percentage decrease in quantity demanded.
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In supply chain management, there are 3 basic forecasting techniques: simple moving average, weighted moving average, and exponential smoothing. List situations in which each of these models would be a best choice to use. List at least one per forecasting technique.
The three basic forecasting techniques in supply chain management, namely simple moving average, weighted moving average, and exponential smoothing, are each suitable for different situations.
The simple moving average is useful when there is minimal variability in the historical data and a need for a quick and straightforward forecast. The weighted moving average is suitable when recent data is considered more important, allowing for responsiveness to recent changes in demand.
Exponential smoothing is beneficial when there is a need to emphasize the most recent data while still considering past data, making it suitable for situations with moderate variability and a need for adaptability.
Simple Moving Average: The simple moving average is effective in situations where there is minimal variability in the historical data and a need for a quick and straightforward forecast.
For example, if the demand for a product has been relatively stable over time and there are no significant changes or seasonality patterns, a simple moving average can provide a reasonable forecast by averaging a fixed number of previous data points.
Weighted Moving Average: The weighted moving average is useful when recent data is considered more important in forecasting. This technique assigns different weights to different periods, placing higher importance on recent data. It is suitable for situations where there have been recent changes in demand or market conditions.
For instance, if a product's demand has been fluctuating in recent months, giving more weight to the most recent data points can provide a more accurate forecast.
Exponential Smoothing: Exponential smoothing is beneficial when there is a need to emphasize the most recent data while still considering past data. It strikes a balance between responsiveness to recent changes and incorporating historical patterns.
This technique is suitable for situations with moderate variability in demand and a need for adaptability. For example, if a product's demand exhibits a trend or seasonality patterns, exponential smoothing can capture these patterns while also reflecting recent shifts in demand.
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T/F The highest amount of online advertising spending is for online video ads.
The given statement is true, i.e., The highest amount of online advertising spending is for online video ads.
In the past few years, online advertising has gained a significant presence in the advertising industry. Online advertising has grown to become an essential part of the marketing and advertising sector.The highest amount of online advertising spending is for online video ads.
Due to the growth in the use of the internet and social media platforms, people have become more comfortable with online ads. Therefore, businesses have invested heavily in online ads to attract their target audience.
Online video ads have proven to be an effective way of marketing and promoting a brand. Due to the rise in the use of social media, videos have become an essential tool in marketing. Online video ads are easy to share, have the ability to be viral, and engage the audience.
As a result, businesses are willing to pay a higher amount for online video ads. Online video ads have a higher ROI (Return on Investment) when compared to other online ads. Hence, the highest amount of online advertising spending is for online video ads.
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marketers often race too quickly into research studies to collect
Marketers rush into research studies to gather data without sufficient planning, which can lead to poor study design and inaccurate insights.
Marketers often feel a sense of urgency to collect data through research studies. They may be driven by the need to stay competitive, respond to market trends, or meet tight deadlines. However, this rush can lead to several pitfalls. Insufficient planning can result in poorly designed studies, inadequate sample sizes, or biased data collection methods. These flaws can compromise the validity and reliability of the research findings.
Moreover, hastily jumping into research studies without a clear objective or well-defined research questions may yield irrelevant or incomplete insights. It's crucial for marketers to invest time in planning and developing a research strategy that aligns with their goals. This involves defining the purpose of the study, identifying the target audience, selecting appropriate research methodologies, and establishing a robust sampling framework.
Taking the time to properly plan research studies allows marketers to gather accurate and relevant data, enabling them to make informed decisions and develop effective marketing strategies. It also ensures that the research process is thorough and reliable, enhancing the overall quality of the insights obtained.
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Reducing sales will increase profits if marginal revenue is larger than marginal cost.
True
False
Reducing sales will increase profits if marginal revenue is larger than marginal cost.
Marginal revenue (MR) represents the additional revenue generated from selling one additional unit of a product or service.
Marginal cost (MC) represents the additional cost incurred from producing one additional unit.
To determine the impact of reducing sales on profits, the comparison between MR and MC is crucial.
If marginal revenue is larger than marginal cost (MR > MC), it means that the revenue generated from selling an additional unit exceeds the cost of producing that unit.
In this scenario, reducing sales can lead to increased profits because the decrease in costs from producing fewer units outweighs the decrease in revenue.
By reducing sales, the company can optimize its operations by focusing on producing and selling the units that generate higher profits.
However, if marginal cost is larger than marginal revenue (MC > MR), reducing sales may not necessarily increase profits as the decrease in revenue could exceed the decrease in costs.
It's important for businesses to analyze their MR and MC relationship and consider other factors, such as demand elasticity and fixed costs when making decisions to reduce sales.
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When the organizational structure of a Company is getting too tall and the chain of command to long, there is a good chance the executives might lose control over the company strategy and hierarchy. True False
True, when the organizational structure of a company becomes too tall and the chain of command becomes too long, there is a good chance that executives might lose control over the company strategy and hierarchy.
As the organizational structure becomes taller, with more levels of management and a longer chain of command, the flow of information and decision-making processes can become slower and more cumbersome.
Executives at the top of the hierarchy may struggle to effectively communicate and enforce their strategic vision throughout the organization. Important information and feedback may get distorted or delayed as it travels up and down the long chain of command, leading to a loss of control over the company's strategy.
Additionally, with numerous layers of management, it becomes more challenging for executives to monitor and ensure consistent implementation of their directives across all levels. This can result in misalignment between the intended strategy and the actions taken at lower levels of the organization.
Ultimately, a tall organizational structure and lengthy chain of command can hinder effective communication, decision-making, and the execution of the company's strategic goals, potentially leading to a loss of control by executives.
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Skipped Suppose John experienced an increase in income of $1,000 due to a tax reduction. Assume that people in the economy have a marginal propensity to consume of 60% and a marginal propensity to save of 40% Use the table below to track the Increase in total expenditures due to the tax reduction. Assume all individuals consume their income in accordance with the marginal propensity to consume. Instructions: Round your answers to 2 decimal places Fiscal Policy and the Multiplier Change Is Total Event Expenditures Change in Saving John used his income to purchase additional meals frontein's restaurant. trin unes her Income to purchase additional books from Rita's bookstore Rita uses her income to purchase coffee from an'a coffee shop William uses his income to purchase goods from the farmers market. Total increase in expenditures due to these transactions DOM
When John's income increased by $1,000, it was due to a tax reduction. Given that people in the economy have a marginal propensity to consume of 60% and a marginal propensity to save of 40%.
we can determine the increase in total expenditures due to the tax reduction. The marginal propensity to consume (MPC) is the proportion of a change in income that is spent on consumption. MPC is an important determinant of fiscal policy effectiveness, as it determines how much consumer spending will increase when disposable income increases.
The marginal propensity to save (MPS) is the proportion of a change in income that is saved rather than spent. MPS is important for determining the size of the multiplier effect. Because savings are not immediately spent, the multiplier effect is diminished.
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Bond ratings:
a. of C indicate an average level of risk.
b. only assess the possibility of default.
c. consider interest rate risk.
d. are provided solely by Moody’s.
e. of B or higher are considere
Bond rating is a measure of the creditworthiness or risk associated with a bond or debt security. It is an assessment provided by credit rating agencies, such as Moody's, Standard & Poor's, and Fitch Ratings, to indicate the likelihood of default by the issuer and the overall quality of the bond.
e. of B or higher are considered investment
Bond ratings are typically represented by letter grades, with higher grades indicating lower risk and lower grades indicating higher risk. The specific rating scale may vary slightly between rating agencies, but generally, the following are common ratings:
Investment-Grade Ratings:e. of B or higher are considered investment-grade.Learn more about Bond rating here
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Bond rating is a measure of the creditworthiness or risk associated with a bond or debt security. It is an assessment provided by credit rating agencies, such as Moody's, Standard & Poor's, and Fitch Ratings, to indicate the likelihood of default by the issuer and the overall quality of the bond.
e. of B or higher are considered investment
Bond ratings are typically represented by letter grades, with higher grades indicating lower risk and lower grades indicating higher risk. The specific rating scale may vary slightly between rating agencies, but generally, the following are common ratings:
Investment-Grade Ratings:e. of B or higher are considered investment-grade.
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The scalar principle is often incorporated into the chain of command, and the popular saying "The Buck Stops Here" is derived from this idea. Meaning someone in responsible for every decision. Select one: True False
The given statement " The Buck Stops Here is derived from this idea. Meaning someone in responsible for every decision " is True because,
The scalar principle is a fundamental concept in organizational structure, emphasizing a clear chain of command where authority flows from top to bottom.
The principle ensures that every decision or responsibility has a designated individual accountable for it. The popular saying "The Buck Stops Here" is derived from this idea, suggesting that ultimate responsibility lies with a specific person who cannot pass it on to others.
This principle promotes accountability, clarity, and efficient decision-making within an organization by establishing clear lines of authority and holding individuals responsible for their actions and decisions.
"The Buck Stops Here" is a popular saying derived from the scalar principle. It signifies that someone in a position of authority takes ultimate responsibility for making decisions and being accountable for the outcomes.
This concept is often associated with leadership and implies that leaders should not pass the blame or responsibility onto others but should take ownership of the decisions and actions of their subordinates.
By adhering to the scalar principle and embodying the idea that "The Buck Stops Here," organizations can establish a clear chain of command, enhance accountability, and promote effective decision-making and problem-solving processes.
It encourages a culture of responsibility and ensures that someone is ultimately accountable for the outcomes and success of the organization.
Hence it is true.
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The Scalar principle in business refers to a clear hierarchy in which each individual is responsible for their own work and accountable to their superiors. An example of this is the phrase 'The Buck Stops Here', implying that the person saying it takes full responsibility for decisions taken.
Explanation:The statement in the question is True. The scalar principle in management or business refers to a clearly defined line of authority in the organizational structure that includes every employee from the top executive to the lowest rank. This principle implies that responsibility is paired with authority. In other words, each individual is responsible for their own decisions but also accountable to those above them. An example of this principle is the saying, "The Buck Stops Here," popularized by U.S President Harry Truman. It meant that he took ultimate responsibility for the decisions made in his administration.
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Ryun Inc has an order to manufacture several specialty products. The beginning cash and equity balances were $105,000. All other beginning balances were $0. Use your T-Account worksheet to record the following transactions: 1. Purchased $44,000 of direct materials on account. 2. Used $40,000 direct materials in production during the month. 3. Manufacturing employees worked 2,500 hours and were paid at a rate of $15 per hour. Paid cash for the direct labor expense. 4. The company applies OH based on direct labor cost. This year's annual overhead is estimated to be $450,000. The actual direct labor cost last year was $800,000. The company estimates it will spend $750.000 in labor cost this year. 5. Compute and record the OH applied to the job. 6. Completed units costing $50,000 during the month. 7. Sold 5.000 units costing $5.50 during the month. The selling price is 40% above cost. Received cash. 8. This year, the company paid $25,400 cash for actual OH expenses incurred. Last year the: company paid $86,000 cash for OH expenses. Record the actual OH costs. 9. The company considers OH differences less than $4,000 to be immaterial. By how much was OH over applied or under applied? Record the difference. Now, CHOOSE 6 CORRECT STATEMENTS from the choices below. You should have 6 check marks indicating your answer choices. Each answer choice is worth 4 points: 1. The predetermined overhead rate is? 2. The direct labor that is debited to labor expense is? 3. How much are the total current manufacturing costs? 4. How much revenue did the company earn? 5. By how much was MOH over/under applied? 6. How much are the costs of goods manufactured? The cost of goods manufactured is $27,500 The amount of sales revenue earned was $38,500 The cost of goods manufactured is $40,000 The direct labor that will be debited to direct labor expense is $160,137 The amount of over/under applied MOH is $0 The total current manufacturing costs are $100,000 The amount of over/under applied MOH is $2,950 The direct labor that will be debited to direct labor expense is $22,500 The direct labor that will be debited to direct labor expense is $37,500 The predetermined MOH rate is $.60 The amount of over/under applied MOH is $667 The amount of sales revenue earned was $50,000 The direct labor that will be debited to direct labor expense is $0 The amount of sales revenue earned was $27.500 The predetermined MOH rate is $.75 The direct iabor that will be debited to direct tabor expense is $162,833 The cost of goods manufactured is $50,000 The predetermined MOH rate is $1.67
Ryun Inc recorded various transactions related to manufacturing specialty products, starting with a cash and equity balance of $105,000. The transactions included purchasing direct materials, using them in production, paying manufacturing employees, etc,.
The company also recorded actual overhead expenses and determined the over/under application of overhead. To answer the given statements, the cost of goods manufactured is $27,500, the amount of sales revenue earned is $38,500, the direct labor debited to direct labor expense is $22,500, the total current manufacturing costs are $100,000, the over/under application of MOH is $2,950, and the predetermined overhead rate is $1.67.
Ryun Inc started with a cash and equity balance of $105,000 and recorded transactions throughout the month. They purchased $44,000 of direct materials on account and used $40,000 of those materials in production. The manufacturing employees worked 2,500 hours, and their wages of $15 per hour were paid in cash as direct labor expenses.
The company applied overhead (OH) based on direct labor cost. The annual overhead estimate for this year is $450,000, and the actual direct labor cost of the previous year was $800,000. The company expects to spend $750,000 on labor cost this year. The OH applied to the job can be computed based on these values.
During the month, Ryun Inc completed units costing $50,000 and sold 5,000 units costing $5.50 each. The selling price was 40% above the cost. They received cash for the sales revenue.
The company also recorded actual overhead costs. They paid $25,400 cash for this year's overhead expenses and $86,000 cash for last year's expenses.
To determine the over/under application of overhead, the company considers differences less than $4,000 to be immaterial. The difference can be calculated based on the applied overhead and actual overhead costs.
In response to the given statements, the cost of goods manufactured is $27,500, the amount of sales revenue earned is $38,500, the direct labor debited to direct labor expense is $22,500, the total current manufacturing costs are $100,000, the over/under application of MOH is $2,950, and the predetermined overhead rate is $1.67.
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Attached Files: (1.194 MB) Refusing a Request. - Editors of the monthly publication National Business have asked you, a consultant with Brandwise Solutions, to write a brief case study article for their magaine. In particular they are interested in your response to the rebranding of Goliath Groceries, Canada's fourth-largest supermarket chain, which commands a 14 per cent market share. Goliath has recently merged its distribution network, switched over to large-format stores, and repositioned itself as a whole foods and express foods retailer in order to gain a market niche distinct from recently arrived US rivals such as Stars and Stripes of Arkansas. - Although you would like to offer your opinions on the subject, you fear a possible conflict of interest because your consulting firm advised on the branding and redesign of Goliath's low-price chain, Save-a-Buck. You are also scheduled to leave this evening for a three-month overseas consulting job. W Write to the editors declining their request but leaving the door open for future writing opportunities.
Dear [Editors of National Business],I appreciate the interest that your magazine has in my consulting services and for considering me as a candidate to write a case study article about Goliath Groceries. However, I regret that I am unable to participate in this assignment due to a potential conflict of interest. Brand wise Solutions had the opportunity to work with Goliath Groceries on their Save-a-Buck branding and redesign project. Therefore, I am unable to offer any opinions that could be seen as impartial.
I am scheduled to leave on a three-month overseas consulting job later today, but I would like to leave the door open for future writing opportunities. If the situation arises where I can contribute my unbiased perspective, I would be happy to work with you. Please accept my apologies for any inconvenience this may cause. I wish you and the magazine all the best in the future. Sincerely, [Your Name] In the given scenario, the writer has to write to the editors of National Business declining their request to write a case study article about Goliath Groceries. He has to state the reason for declining the offer while leaving the door open for future writing opportunities. He starts the letter by appreciating the magazine's interest in his services and his selection as a candidate to write a case study article about Goliath Groceries. He then regrets that he cannot participate in this assignment because his consulting firm Brand wise Solutions advised Goliath Groceries on their Save-a-Buck branding and redesign project, and he cannot offer any impartial opinions. Furthermore, he will leave for a three-month overseas consulting job later in the day. However, he assures the editors that he is willing to work with them on future writing opportunities if the situation arises where he can contribute his impartial perspective. Finally, he apologizes for any inconvenience caused and wishes the magazine all the best in the future.
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