Question Completion:
The following shows Triptych Food Corp.'s income statement for the last two years. The company had assets of $10,575 million in the first year and $16,916 million in the second year. Common equity was equal to $5,625 million in the first year, 100% of earnings were paid out as dividends in the first year, and the firm did not issue new shares in the second year.
Answer:
Triptych Food Corp.
The profitability ratios of Triptych Food Corp.
Year 2 Year 1
Net profit margin 50.19% 49.06%
Return on total assets 18.84% 23.20%
Return on common equity 36.17% 43.61%
Basic earning power 29.04% 35.56%
Explanation:
a) Data and Calculations:
Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1
Net Sales $6,350 $5,000
Operating costs except
depreciation and amortization 1,120 1,040
Depreciation and amortization 318 200
Total Operating Costs 1,438 1,240
Operating Income (or EBIT) 4,912 3,760
Less: Interest 663 489
Earnings before taxes (EBT) 4,249 3,271
Less: Taxes (25%) 1,062 818
Net Income $3,187 $2,453
Total assets $16,916 $10,575
Common equity $8,812 $5,625
Profitability ratios and formulas:
Net profit margin = Net Income/Sales * 100
Return on total assets = Net Income/Total assets * 100
Return on common equity = Net Income/Common Equity * 100
Basic earning power = EBIT/Total assets * 100
Year 2 Year 1
Net profit margin 50.19% 49.06%
= ($3,187/$6,350 * 100) ($2,453/$5,000 * 100)
Return on total assets 18.84% 23.20%
= ($3,187/$16,916 * 100) ($2,453/$10,575 * 100)
Return on common equity 36.17% 43.61%
= ($3,187/$8,812 * 100) ($2,453/$5,625 * 100)
Basic earning power 29.04% 35.56%
= ($4,912/$16,916 * 100) ($3,760/$10,575 * 100)
Heavy use of long-term debt can be of benefit to a firm to help expand, although it adds to the firm's overall level of risk.
A. True
B. False.
Answer:
A
Explanation:
Long term debt is debt that has a maturity that is longer than a year.
The higher the use of debt, the higher the risk a firm takes on. This is because the greater the use of debt, the higher the chances of the firm defaulting on debt.
firms that use a high amount of debt, have an higher beta. As a result of the higher beta, the required return is also higher.
use of long-term debt provides firms with the necessary cash flows that would be needed to carry out necessary projects. Thus, it benefits a firm by helping it expand
Operating Cash Flows (Direct Method)
Refer to the information in Exercise EB-31. Calculate the net cash flow from operating activities using the direct method. Show a related cash flow for each revenue and expense.
Answer:
The method to calculate Cash Flow from Direct Method is explained as follows:
Explanation:
The method to calculate Cash Flow from Direct Method is explained as follows:
Cash Flows
Direct Method
+ Cash received from Customer
- Cash paid to suppliers
- Cash payments for operating expenses
- Cash payments for interest
- Cash payments for taxes
= Net Cash flow from Operating Activities.
Melanie is the director of human resources for a small manufacturing firm. She has a strong personal interest in technology, and is known throughout the firm as the one with the most knowledge about new kinds of communications technologies. If the firm decides to upgrade its network, Melanie will probably function in what role in the firm's buying center
Answer:
Influencer
Explanation:
An influencer is a person that has the ability to affect the purchasing decision of customers through their authority, position, relationship, or relationship.
They have good social relations and this is an asset in directing customer buying decision.
In the given scenario Melanie has a strong personal interest in technology, and is known throughout the firm as the one with the most knowledge about new kinds of communications technologies.
This knowledge will be beneficial in the buying centre, where she can be an influencer.
The Allowance for Bad Debts account had a balance of $10,600 at the beginning of the year and $12,200 at the end of the year. During the year (including the year-end adjustment), bad debts expense of $18,800 was recognized.
Required:
Calculate the total amount of past-due accounts receivable that were written off as uncollectible during the year. (Hint: Make a T-account for the Allowance for Bad Debts account, plug in the amounts that you know, and solve for the missing amount.)
Bad debt write-offs _________
Answer:
Written off = $17,200
Explanation:
Allowance for Bad Debt Account
Debtors (Write off) (Bal. fig) $17,200 Beginning Bal. $10,600
Bad debt expense $18,800
Ending Balance $12,200
Thus, the total amount of past-due accounts receivable that were written off as uncollectible during the year is $17,200.
An increase in the demand for lobster due to changes in consumer tastes, accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster, will result in:
Answer:
an increase in price and an indeterminate increase in equilibrium quantity
Explanation:
Increase in demand leads to an outward shift of the demand curve. As a result equilibrium price and quantity increases
A decrease in supply leads to an inward shift of the supply curve
mwakilembe Co.ltd is a micro business which buys and sell toys on 1 January 2020 the company predicted its annual sales to be 1000000 units. Each order would cost the company TZS 80 . The company pays TZS 160 per unit of a product. Estimated inventory carrying costs are 25 percent of inventory value. Establish the EOQ units.
Answer:
2000
Explanation:
Given:
Annual DEMAND, D = 1,000,000
Holding cost, H = (I * C)
Cost per order, S = 80
Unit cost, C = 160
Holding cost (%) = 25% = 0.25
The Economic order quantity :
EOQ = √[(2 * D * S) / (I * C)]
EOQ = √[(2 * 1000000 * 80) / (0.25 * 160)]
EOQ = √[(160000000) / 40]
EOQ = √4000000
EOQ = 2000
Danielle has loaned $500 to Richard at a 4% annual rate of interest for one year. If the inflation rate is constant at 7% for the entire term of the loan, how much purchasing power is lost after Richard repays the loan in full
Answer:
$15
Explanation:
In order to calculate the purchasing power lost the following formulae will be used:
Purchasing power lost = Loaned amount * (inflation rate - nominal rate)
Purchasing power lost = $500 * (0.07 - 0.04)
Purchasing power lost = $500 * 0.03
Purchasing power lost = $15
Hence, the purchasing power lost after Richard repays the loan in full is $15.
Suppose that the price of a cupcake is $4. At this price, 50 cupcakes will be demanded. If the price rises to $5 per cupcake, consumer surplus will
Answer: fall by less than $50.
Explanation:
The options are:
• fall by more than $50.
• fall by less than $50.
• rise by less than $50.
• rise by more than $50.
Expert Answer
Consumer surplus, is referred to as the economic measure of the excess benefit that a customer gets. The consumer surplus is the difference between the amount that the customer is willing to pay and the amount that he or she eventually pays.
Based on the question, the total Price paid is: 50 × $4 = $200
Total Revised Price = 50 × $5 = $250
Therefore, there will be a fall by $50 that's ($250 - $200).
Enterprise mashup technology does not provide a mechanism to easily customize and share knowledge throughout the company.
a. True
b. False
Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years
and an estimated residual value of $25,000.
A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method
of depreciation?
B. What was the book value of the equipment on January 1 of Year 4?
C. Assuming that the equipment was sold on January 3 of Year 4 for $300,000, journalize the
entry to record the sale.
D. Assuming that the equipment had been sold on January 3 of Year 4 for $325,000 instead
of $300,000, journalize the entry to record the sale.
Answer:
A. Year 1 $17,500
Year 2 $17,500
Year 3 $17,500
B. $322,500
C. Dr Cash $300,000
Dr Accumulated Depreciation-Equipment $52,500
Dr Loss on disposal of Equipment $22,500
Cr Equipment $375,000
D. Dr Cash $325,000
Dr Accumulated Depreciation-Equipment $52,500
Cr Equipment $375,000
Cr Gain on disposal of Equipment $2,500
Explanation:
A. Calculation to determine What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation
Year 1 Depreciation expense Year 1=($375,000-$25,000)/20 years
Year 1 Depreciation expense Year=$17,500
Year 2 Depreciation expense Year=($375,000-$25,000)/20 years
Year 2 Depreciation expense Year=$17,500
Year 3 Depreciation expense Year=($375,000-$25,000)/20 years
Year 3 Depreciation expense Year=$17,500
Therefore the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation is :
Year 1 $17,500
Year 2 $17,500
Year 3 $17,500
B. Calculation to determine What was the book value of the equipment on January 1 of Year 4
Book value of Equipment=[$375,000-($17,500*3)]
Book value of Equipment=[$375,000-$52,500)
Book value of Equipment=$322,500
Therefore the book value of the equipment on January 1 of Year 4 is $322,500
C. Preparation of the journal entry to record the sale.
Jan. 3
Dr Cash $300,000
Accumulated Depreciation-Equipment $52,500
($17,500*3)
Dr Loss on disposal of Equipment $22,500
($322,500-$300,000)
Cr Equipment $375,000
(To record sales)
D. Preparation of the journal entry to record the sale.
Jan. 3
Dr Cash $325,000
Dr Accumulated Depreciation-Equipment $52,500
($17,500*3)
Cr Equipment $375,000
Cr Gain on disposal of Equipment $2,500
($325,000+$52,500-$375,000)
(To record sales)
XYZ has the following for the January budget: Budgeted sales are $210,000; Cost of goods sold averages 66% of sales; Marketing costs are $3,600; Distribution costs are $5,300; Administrative costs are $10,100. The budgeted nonmanufacturing costs are
Answer:
Budgeted manufacturing cost= $138,600
Explanation:
Giving the following information:
Budgeted sales are $210,000
Cost of goods sold averages 66% of sales
To calculate the budgeted manufacturing costs, we need to use the following formula:
Budgeted manufacturing cost= sales*COGS ratio
Budgeted manufacturing cost= 210,000*0.66
Budgeted manufacturing cost= $138,600
Signature Appliance Group decided to remove the grill unit from the ovens it sells in South America after customers complained they preferred to grill outside and would never use this feature. Which environmental force caused the company to change its product
Answer:
Signature Appliance Group
The environmental force that caused the company to change its product features is:
the Social and Cultural Environment.
Explanation:
The Social and Cultural Environment refers to the changing needs of customers in South America as a result of the values, attitudes, and preferred styles of consumers. These are always in a state of flux every year. Since customers preferred to grill outside rather than inside their kitchens, adding the grill unit in the ovens that the company sells in South America will not enable customers to choose its ovens over competitors'. To respond to the stated needs of its customers, the grill must be removed, thereby reducing the cost of the ovens.
Peterkin Inc needs to arrange financing for its expansion program. Sandy Bank offers to lend Peterkin the required funds on a loan in which interest must be paid monthly, and the quoted rate is 6 percent. Money Plus Bank will charge 6.8 percent, with interest due at the end of the year. Which bank should Peterkin take the loan from
Answer:
Sandy Bank
Explanation:
to determine which bank Peterkin would prefer a loan from, calculate the effective annual interest rate
the bank with the lower effective annual interest rate would be preferred
Effective annual rate = (1 + APR / m ) ^m - 1
M = number of compounding
Sandy Bank : (1 + 0.06/12)^12 - 1 = 0.062 = 6.2%
Money Plus Bank = 6.8
Sandy bank has a lower effective annual interest rate and would be preferred for the loan
Assume that you have a three-year-old daughter and you have come to appreciate the power of saving and investing. Can you open up and put money into a Roth IRA in your child's name so that she can benefit from many years of compounding
Answer:
No.
You cannot open up and put money into a Roth IRA in your child's name.
Explanation:
The IRS allows that any child, regardless of age, can contribute to an IRA if they have earned income. This means that only a child that has earned income can have an IRA opened for him or her. As the child is still underage, the IRA must be set up as a custodial account by the parent or another adult. This implies that the child cannot operate the account during the period she is underage but can have money saved in the account from her earned income.
Knowing what you have learned about customer service situations, why do win-lose situations often become lose-lose situations? What can an employee do to avoid this from occurring?
Answer:
Explanation:
In business a win-lose situation would mean that one is correct while the other is wrong. This often becomes a lose-lose situation because one party will get upset and refuse to do business with the other party, this means that one party ultimately loses out on the profit of the potential transaction and the other party loses out on the product/service that they wanted. Therefore, making it a lose-lose situation. The best thing that an employee can do is to de-escalate the situation and look for an alternative solution so that the customer leaves happy, the business gets the transaction, and they do not lose money or customers.
g e-Dynamix Technologies, another electronics manufacturing firm, in important factors such as manufacturing capability and adaptability to market conditions. Which of the following terms best describes Futura-Core's abilities in comparison to Core-Dynamix? A. absolute advantage B. collective bargaining C. comparative advantage D. competitive advantage
Complete Question:
Futura-Core Technologies, an electronics manufacturing firm, has advantages in financial capability and sustainability, but a disadvantage in speed of innovation. It is also at a disadvantage relative to Core-Dynamix Technologies, another electronics manufacturing firm, in important factors such as manufacturing capability and adaptability to market conditions.
Answer:
C. comparative advantage
Explanation:
Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.
Generally, comparative advantage gives a country or business firm a stronger sales margin than their competitors because they are able to sell their specific products or render their peculiar services at a lower opportunity cost.
Hence, the term which best describes Futura-Core's abilities in comparison to Core-Dynamix is comparative advantage.
The accounting records of Whispering Winds Corp. show the following data. Beginning inventory 3,010 units at $6 Purchases 8,130 units at $8 Sales 9,090 units at $11. Determine cost of goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method, and the average-cost method.
Answer:
$66,700
b. LIFO = $70800
67807.81
Explanation:
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
(8130 x 8) + [(9090 - 8130) x 6) = 70800
FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold
(3010 x 6) + [(9090 - 3010) x $8] = 66,700
Average cost = [(3010 x 6) + (8130 x 8)] /
18060
48640
b 65040
5760
Prepare a Master Schedule given the following information:
Forecast for each week for an eight-week schedule is 75 units.
The Master Production Schedule (MPS) rule is to schedule production if the projected on-hand inventory would be negative without it.
Committed customer orders are as follows:
WeeWeek CjusCustomer order
1 75
2 53
3 26
4 18
Use a production lot size of 100 units and no beginning inventory.
Week
1 2 3 4 5 6 7 8
Forecast 75 75 75 75 75 75 75 75
Customer Orders 75 53 26 18 0 0 0 0
Projected On-Hand Inventory
MPS
Formulas for Projected On-Hand Inventory
Week 1 = Beginning Inventory + MPS – MAX (Forecast:Customer Order)
Highest number
Weeks 2 – 8 = Previous Week Inventory + MPS – (Forecast: Customer Order)
Because the problem says we cannot have any negative inventory, then we require MPS shipments to come in. When a shipment comes in, it is in lots of 100. In this problem, MPS will be added for Weeks 1,2,3 and Weeks 5, 6, 7. No MPS shipments are expected in Week 4 or Week 8.
Answer:
Master Production Schedule (MPS)
Week 1 2 3 4 5 6 7 8
Forecast Customer Order 75 75 75 75 75 75 75 75
Customer Orders 75 53 26 18 0 0 0 0
Projected On-Hand Inventory 25 50 75 0 25 50 75 0
MPS 100 100 100 0 100 100 100 0
Explanation:
a) Data and Calculations:
Master Production Schedule (MPS)
Week 1 2 3 4 5 6 7 8
Forecast Customer Order 75 75 75 75 75 75 75 75
Customer Orders 75 53 26 18 0 0 0 0
Projected On-Hand Inventory
MPS
Formulas for Projected On-Hand Inventory
Week 1 = Beginning Inventory + MPS – MAX (Forecast:Customer Order)
Highest number
Weeks 2 – 8 = Previous Week Inventory + MPS – (Forecast: Customer Order)
For years, Luke has had the idea of making his own business. As Luke will realize, he will face three basic economic questions. What are these questions?
a. When, How, For whom
b. Who, when, why
c. What, How, for whom
d. What, When, How
What is the meaning of assessment
Answer:
the meaning of assessment is the evaluation or estimation of the nature, quality, or ability of someone or something. like your being tested on you knowledge of something, so you have a test.
Explanation:
Answer:
the act of judging or deciding the amount, value, quality, or importance of something, or the judgment or decision that is made.the evaluation or estimation of the nature, quality, or ability of someone or something.
Tại sao nói Marketing vừa là khoa học, vừa là nghệ thuật?
Answer:
Sorry I can't understand.....
Warner Company purchases $52,200 of raw materials on account, and it incurs $62,200 of factory labor costs. Supporting records show that (a) the Assembly Department used $31,900 of the raw materials and $44,200 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs. g
Answer and Explanation:
The journal entry is given below:
Work in process - finishing department $28,800 ($62,200 - $44,200) × 160%
Work in process - assembly department $70,720 ($44,200 × 160%)
To Manufacturing overhead $99,520
(Being the overhead allocated to assembly and finishing department)
Here the work in process is debited as it increased the assets and the manufacturing overhead is credited as it decreased the expesne
A dispute between labor and management at an automobile production plant has effectively stopped production for 2 months and has cost the company a tremendous amount of money. Despite the use of third parties, neither side can agree on a solution, but they do agree that the dispute must be settled soon. How should this dispute at this stage be settled
Answer:
Arbitration
Explanation:
The arbitration process seems to be the best way to make the settlement process happen in this case. The arbitration process will be between labor and management as an impartial third party (arbitrator or arbitral tribunal) takes charge of the process. Once both parties have agreed to arbitraueb, the arbitrator then proffers powerful ways of ensuring dispute resolution in such a way that a mutual agreement is reached by both labor and management. Even though proferred solution shouldn't be compulsorily adopted by the conflicting parties.
If Fees Earned has been credited, it is most likely that:
A. a correcting entry for the overstatement of revenue was recorded. B. a customer paid in advance
C. services were provided.
D. the owner made an investment.
Answer:
C. services were provided.
Explanation:
If Fees Earned has been credited, it is most likely that: "services were provided."
For fees to be earned it means something must have been done in exchange for the fee. Considering this is a business-related issue, then it is correct to conclude that "If Fees Earned has been credited, it is most likely that: services were provided."
Option A is not correct because the overstatement of revenue is not related to the fee warmed being credited.
Option B is not correct, because a payment made in advance does not correlate to a fee earned. Option D is not correct as well, because an investment has nothing to do with a few earned.
For 2019, Skresso Co. reported $1.82 of earnings per share of common stock. During 2020, the firm had a 4% common stock dividend. The 2019 earnings per share to be reported in the annual report for 2020 are:
Answer:
$1.75
Explanation:
Earnings per share to be reported = Earnings per share of commo stock * (1 - 4%)
Earnings per share to be reported = $1.82 * 96%
Earnings per share to be reported = $1.7472
Earnings per share to be reported = $1.75
So, the 2019 earnings per share to be reported in the annual report for 2020 are $1.75.
Martha B's has total assets of $1,810. These assets are expected to increase in value to either $1,900 or $2,400 by next year. The company has a pure discount bond outstanding with a face value of $2,000. This bond matures in one year. Currently, U.S. Treasury bills are yielding 5.5 percent. What is the value of the equity in this firm
Answer:
$7.24
Explanation:
PV at the risk free rate = $1,900 / (1 + 0.055)
PV at the risk free rate = $1,900 / 1.055
PV at the risk free rate = $1,800.95
Number of options needed = (2,400 - 1,900) / (400 - 0)
Number of options needed = 500 / 400
Number of options needed = 1.25
Total assets = (No of options needed*Value of equity) + Present value at the risk free rate. Let Value of equity be C0
$1,810 = (1.25*C0) + $1,800.95
$1,810 - $1,800.95 = 1.25*C0
C0 = $9.05 / 1.25
C0 = $7.24
So, the Value of equity in this firm is $7.24.
Bush Company reported net income of $60,000 for the year. During the year, accounts receivable decreased by $8,000, accounts payable increased by $4,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is Group of answer choices
Answer:
Net income from operating activities = $77000
Explanation:
Below is the calculation for Net income from operating activities:
Given the net income = $60000
Decrease in accounts receivable = $8000
Increase in accounts payable = $4000
Depreciation = $5000
Add the values in the net income in order to get the net income from operating activities.
Net income from operating activities = 60000 + 8000 + 4000 + 5000
Net Income from operating activities = $77000
At the fourth and final resource, one operator handles the product. No quality problems exist at this step and the processing time is 12 minutes per unit. For every unit of demand, how many units have to flow through the second step in the process
Answer:
2.25 units.
Explanation:
Processing time is 5 minutes per unit for step 1. The total capacity is 60 minutes then no. of units produced can be;
60 / 5 = 12 units per hour.
For second step processing time is 4 minutes per unit. There is 0.85 unit of product is scrapped. Then no. of units produced per hour can be ;
60 / 4 = 15 units per hour.
After scrap the net product units per hour will be;
15 units * [1 - 0.85] = 2.25 units per hour.
A high Power Distance Index score implies that the people who hold power in a country are entitled to privileges.
a. True
b. False
Answer:
a. True
Explanation:
The Power-Distance Index refers to the relationship and interaction between a high ranking individual and a low ranking individual. The index depends on how a low ranking individual reacts to a high ranking individual.
It measures the degree where the members of a society or group accepts the hierarchy of the power and the authority.
Thus according to the high power distance index score, individuals with high power are entitled to number of privileges in a country or in society.
Hence the answer is TRUE.
Which type of communication technology is attractive to businesses
because it eliminates travel expenses by allowing simultaneous
communication globally?
O Groupware
Extranets
Intranets
Hotspots
Client-server networks
