Answer: $180,046
Explanation:
First find the annuity that was invested monthly that yielded $550,000.
Interest rate = 3%/12 months = 0.25%
Period = 25 * 12 = 300 months
Future value of annuity = Annuity * ( ( 1 + rate) ^ no. of periods - 1) / rate
550,000 = Annuity * ( ( 1 + 0.25%)³⁰⁰ - 1 ) / 0.25%
550,000 = Annuity * 446
Annuity = 550,000 / 446
Annuity = $1,233.18
Without compounding, investing $1,233.18 per month would have yielded:
= 1,233.18 * 300 months
= $369,954
Money earned from interest is:
= 550,000 - 369,954
= $180,046
rt, a $0.73 per share cash dividend was declared by the board of directors for it common stock. On 12/31, the date of declaration, there were 98,000 shares authorized, 59,000 shares issued, and 8,000 Treasury shares. On the date of the dividend declaration, what amount will Walmart record into their dividend account
Answer:
$36,792
Explanation:
Missing word "At Walmart, the board of directors declared a $0.73"
Outstanding stockholder = Issued stockholder - Treasury stock
Outstanding stockholder = 59,000 shares - 8,600 shares
Outstanding stockholder = 50,400 shares
Amount of Dividend = Declared per share cash dividend * Outstanding stockholder
Amount of Dividend = 50,400 shares * $0.73
Amount of Dividend = $36,792
So therefore, on the date of the dividend declaration, $36,792 shall be recorded by Walmart into their dividend account.
University Car Wash built a deluxe car wash across the street from campus. The new machines cost $270,000 including installation. The company estimates that the equipment will have a residual value of $24,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours. Actual use per year was as follows: Year Hours Used 1 3,100 2 1,100 3 1,200 4 2,800 5 2,600 6 1,200 2. Prepare a depreciation schedule for six years using the double-declining-balance method.
Answer:
Year Depreciation expenses
1 $90,000
2 $60,000
3 $40,000
4 $26,667
5 $17,778
6 $11,556
Explanation:
Note: See the attached excel file for the depreciation schedule for six years using the double-declining-balance method.
The double-declining-balance method is a depreciation approach in which the rate of depreciation for an asset is twice the rate of depreciation for the straight line method.
In the attached excel, the double-declining-balance depreciation rate is therefore calculated as follows:
Straight line depreciation rate = 1 / Number of expected useful years = 1 / 6 = 0.166666666666667 = 16.6666666666667%
Double-declining depreciation rate = Straight line depreciation rate * 2 = 16.6666666666667% *2 = 33.3333333333334%
Also note the following in the attached excel file:
Beginning depreciable amount in Year 1 = Cost of the new machine = $270,000
The depreciation expenses for Year 6 is calculated by deducting the residual value of $24,000 from Year 6 Beginning depreciable amount. That is:
Depreciation expenses for Year 6 = $35,556 - $24,000 = $11,556
The residual value of $24,000 therefore represents the book value at the end of Year 6.
From the attached excel file, we therefore have:
Year Depreciation expenses
1 $90,000
2 $60,000
3 $40,000
4 $26,667
5 $17,778
6 $11,556
Bob agreed to tutor Lola in Spanish for two (2) hours and Lola agreed to pay $25.00 per hour for the tutoring services. Bob tutored Lola and she paid Bob $50.00. This means that the parties have been _____.
Answer: discharged by performance
Explanation:
When parties to a contract are discharged from their duties as per the contract, it means that they are no longer party to the agreement. When this is done by performance, it means that the discharge was done because both parties have fulfilled the demands of the contract.
Bob agreed to tutor Lola for two hours and Lola agreed to pay Bob $50 for that. Bob then tutored her for the two hours and was paid the amount. The parties have therefore fulfilled their obligations to each other and so the contract has been satisfied.
Umatilla Bank and Trust is considering giving Kingbird, Inc. a loan. Before doing so, it decides that further discussions with Kingbird, Inc.’s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $253,450. Discussions with the accountant reveal the following.
1. Kingbird, Inc. sold goods costing $51,940 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
2.The physical count of the inventory did not include goods costing $88,290 that were shipped to Kingbird, Inc. FOB destination on December 27 and were still in transit at year-end.
3. Kingbird, Inc. received goods costing $25,690 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count.
4. Kingbird, Inc. sold goods costing $53,020 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Kingbird, Inc. physical inventory.
5. Kingbird, Inc. received goods costing $46,060 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $253,450.
Answer:
$286,100
Explanation:
Calculation to determine the correct inventory amount on December 31.
Using this formula
Correct Inventory amount=Ending Inventory+ Goods received shipping points + Goods shipped FOB destination-Goods received FOB destination
Let plug in the formula
Correct Inventory amount=$253,450+$25,690+$53,020-$46,060
Correct Inventory amount=$286,100
Therefore the correct inventory amount on December 31 is $286,100
Dan purchases a 1000 par value 10-year bond with 9% semiannual couponsfor 925. He is able to reinvest his coupon payments at a nominal rate of 7%convertible semiannually.Calculate his nom
Answer:
9.2%
Explanation:
Missing word "Calculate his nominal annual yield rate convertible semiannually over the ten-year period"
Semi annual coupon payments = 9% / 2 = 4.5%
Par value = 4.5% * 1,000 = $45
interest rate per period = r = 7% / 2 = 3.5%
Number of periods, n = 2 x 10 = 20
FV of all the coupons reinvested = 45 / r * [(1 + r)^n - 1]
FV of all the coupons reinvested = 45 / 3.5% * [(1 + 3.5%)^20 - 1]
FV of all the coupons reinvested = $1,272.59
Receipt of par value at the end of the 10 years = par value = 1,000
Total accumulated value at the end of 10 years = $1,272.59 + 1,000
Total accumulated value at the end of 10 years = $2,272.59
Invested amount = $925
i = nominal interest convertible semi annually.
$925 * (1 + i / 2)^n = 2,272.59
925 * (1 + i / 2)^20 = 2,272.59
i = 2 * [(2,272.59 / 925)^1/20 - 1]
I = 9.19%
I = 9.2%
So, his nominal annual yield rate convertible semiannually over the ten-year period is 9.2%
Jake lives in Detroit and runs a business that sells boats. In an average year, he receives $722,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. He owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Jake does not operate this boat business, he can work as a paralegal, receive an annual salary of $21,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. No other costs are incurred in running this boat business.
Identify each of Felix’s costs in the following table as either an implicit cost or an explicit cost of selling guitars.
Implicit Cost Explicit Cost
The wholesale cost for the guitars that Felix pays the manufacturer
The rental income Felix could receive if he chose to rent out his showroom
The salary Felix could earn if he worked as a paralegal
The wages and utility bills that Felix pays
Complete the following table by determining Felix’s accounting and economic profit of his guitar business. Profit (Dollars)Accounting Profit Economic Profit
Answer:
Explicit Cost
The wholesale cost for the guitars that Felix pays the manufacturerThe wages and utility bills that Felix paysImplicit Cost
The salary Felix could earn if he worked as a paralegal The wages and utility bills that Felix paysAccounting profit = $32,000
Economic profit = $9,000
Explanation:
Accounting profit= total revenue - explicit cost
Total revenue =price x quantity sold
Explicit cost includes the amount expended in running the business.
They include rent , salary and cost of raw materials
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
B. Lopez Company reports unadjusted first-year merchandise sales of 221,000 and cost of merchandise sales of $64,000. The company expects future returns and allowances equal to 5% of sales and 5% cost of sales. The year-end adjusting entry to record the cost side of sales returns and allowances is:
Answer: See explanation
Explanation:
The year-end adjusting entry to record the cost side of sales returns and allowances will be:
Dr Inventory Return estimated $3200
Cr Cost of goods sold $3200
(To record expected coat of returns)
Note that the above calculation was done as:
= $64,000 × 5%
= $64,000 × 0.05
= $3200
Redbud Company uses a certain part in its manufacturing process that it buys from an outside supplier for $44 per part plus another $6 for shipping and other purchasing-related costs. The company will need 10,000 of these parts in the next year and is considering making the part internally. After performing a capacity analysis, Redbud determined that it has sufficient unused capacity to manufacture the 10,000 parts but would need to hire a manager at an annual salary of $40,000 to oversee this production activity. Estimated production costs are determined to be:
Direct material $ 28
Direct labor 12
Variable overhead 6
Fixed overhead (includes manager at $4 per unit) 10
Total unit cost $ 56
A) Identify the relevant costs to make this part internally. (Select all that apply)
A) Historical cost
B) Direct labor
C) Direct material
D) Variable overhead
E) Fixed overhead
F) New manager's salary
B) Should Redbud produce the part or continue to buy it from the outside supplier? (Select the right answer)
A) Redbud should produce the part.
B) Redbud is indifferent about the decision.
C) Redbud should continue to buy it from the outside supplier.
C.What are the other factors that Redbud Company should consider in deciding to make the part internally? (Select all that apply.)
A) Total sales quantity.
B) The potential for improved control over the availability of the parts by having it when needed and the potential for improved quality of the parts.
C) Since Redbud Company is considering the use of currently available capacity, it should evaluate any relevant opportunity costs of using this capacity for more profitable activities.
Answer:
Redbud Company
A) Relevant costs:
B) Direct labor
C) Direct material
D) Variable overhead
F) New manager's salary
B) B) Redbud is indifferent about the decision.
C. Other factors to consider:
B) The potential for improved control over the availability of the parts by having it when needed and the potential for improved quality of the parts.
C) Since Redbud Company is considering the use of currently available capacity, it should evaluate any relevant opportunity costs of using this capacity for more profitable activities.
Explanation:
a) Data and Calculations:
Cost of buying parts from outside supplier = $50 per part
Units required in the next year = 10,000
Costs required to produce internally:
Supervisor's salaries $40,000
Direct material $ 28
Direct labor 12
Variable overhead 6
Fixed overhead (includes
manager at $4 per unit) 10
Total unit cost $ 56
Relevant costs:
Direct material $ 28
Direct labor 12
Variable overhead 6
Fixed overhead (includes
manager at $4 per unit) 4
Total unit cost $50
Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below:
Estimated machine-hours 72,900
Estimated variable manufacturing overhead $ 3.50 per machine-hour
Estimated total fixed manufacturing overhead 838,710
The predetermined overhead rate for the recently completed year was closest to:________.
A. $6.66 per machine-hour
B. $10.50 per machine-hour
C. $8.69 per machine-hour
D. $15.00 per machine-hour
Answer:
D. $15.00 per machine hour
Explanation:
The computation of the predetermined overhead rate for the recently completed year is seen below;
First, we will calculate the fixed overhead rate.
Fixed overhead rate = Estimated total fixed manufacturing overhead / Estimated machine - hours
Fixed overhead rate = $838,710 / 72,900
Fixed overhead rate = $11.50
Then,
Predetermined overhead rate = Fixed overhead rate + Variable overhead rate
Predetermined overhead rate = $11.50 + $3.50
Predetermined overhead rate for the recently completed year was closest to $15.00 per machine hour
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
The Molding Department of Boswell Company has the following production data: beginning work process 40,000 units (60% complete), started into production 730,000 units, completed and transferred out 690,000 units, and ending work in process 80,000 units (40% complete). Assuming conversion costs are incurred uniformly during the process, the equivalent units for conversion costs are:
Answer: 770,000 units
Explanation:
The Equivalent units for Conversion cost is calculated as:
= Total units completed and transferred out + Equivalent units of closing work in process
As the conversion costs were incurred uniformly during the process, the entire closing work in process would have already incurred conversion cost. Conversion cost closing equivalent units are therefore 80,000 units.
Equivalent units for Conversion cost = 690,000 + 80,000
= 770,000 units
The management of Penfold Corporation is considering the purchase of a machine that would cost $360,000, would last for 10 years, and would have no salvage value. The machine would reduce labor and other costs by $50,000 per year. The company requires a minimum pretax return of 9% on all investment projects. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to (Ignore income taxes.):
Answer:
the net present value is -$72,050
Explanation:
The computation of the net present value is shown below
= $50,000 per year ×PVIFA factor at 10 years for 9% - $360,000
= $50,000 ×5.7590 - $360,000
= $287,950 - $360,000
= -$72,050
hence, the net present value is -$72,050
So the same should be relevant and considered too
Depreciation, in accounting, is a process that results in: Multiple Choice an accurate measurement of the economic usefulness of an asset. depreciable assets being reported in the balance sheet at their fair value. accumulating cash for the replacement of the asset.
Answer:
spreading the cost of an asset over its useful life to the entity.
Explanation:
The depreciation is a non-cash expense that should be charged over the fixed assets i.e. land, buidling, car, etc
It is an expense so the same should be shown on the debit side of the income statement
Also the cost of an asset minus the salvage value divided by the useful life could be spreaded as the depredciation expense by using straight-line method
In most situations, asset values do not equal the amount of money that could be realized if the assets were sold.
a. True
b. False
Answer:
True
Explanation:
The answer to this question is true. The recording of assets is usually done at cost. This is equivalent to the value that was exchanged when the asset was sold. In a country like the United States for example, if an asset such as a land or machine gets to appreciate in value after a period of time, it is not usually revalued. Therefore the answer to this question is true.
When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current-period production is the
Answer: the weighted average method
Explanation:
When computing the equivalent units of production, the weighted average method can be used in the combination of partially completed units in the beginning inventory with the current-period production.
In Weighted Average Cost method, a weighted average is used in the determination of the amount which gives into the inventory and the cost of goods sold.
The specific actions to be taken in implementing a strategy.
The correct answer to this open question is the following.
Although there are no options attached we can say the following.
In general terms, the specific actions to be taken in implementing a strategy are the following.
First of all, the manager has to clearly define the strategic plan and its content.
Then, define the general goal, and specific goals. It is highly recommended to use the SMART formula. Goals have to be specific, measurable, attainable, realistic, and time-bound.
Then, define the Key Performing Indicators or KPI's. These will serve to define the results the company expects to accomplish with the plan.
Create a series of programs and specific actions to reach the goals.
Then, to implement the tactics or specific programs.
Monitoring the programs and then evaluate the results to provide feedback.
An FI purchases at par value a $100,000 Treasury bond paying 10 percent interest with a 7.5 year duration. If interest rates rise by 4 percent, calculate the bond's new value. Recall that Treasury bonds pay interest semiannually. Use the modified duration valuation equation.
Answer:
The bond's new value is $70,000
Explanation:
First calculate the percentage change in the value of the bond
Duration = Percentage change in price / Percentage change in yield
Percentage change in price = Duration x Percentage change in yield
where
Duration = 7.5 years
Percentage change in yield = 4%
Percentage change in price = ?
Placing value sin the formula
Percentage change in price = 7.5 x 4%
Percentage change in price = 0.30
Percentage change in price = 30%
As we know that the value of the bond and the yield rate are inversely proportional to each other, If the yield rate increases the value of the bond decreases due to the discounting factor used in the valuation o the bond.
Hence, the value of the bond is calculated as follow
Value of the bond = Par value of the bond x ( 1 - per centage of change in the price of the bond
Value of the bond = $100,000 x ( 1 - 30% )
Value of the bond = $100,000 x 0.70
Value of the bond = $70,000
With so many workers habituated to using mobile devices for so much of their work, should company management develop apps for influencing subordinates? Explain your reasoning.
Answer:
This is not a yes or no answer.
The action of leadership/management would depend on their assessment of the impact of the habit on the results being delivered by the workers.
The questions to ask are:
Does the use of the mobile phone for their work reduce or increase productivity?Does what are the advantages? are there disadvantages?What would developing an app achieve for management?Explanation:
In trying to influence workers who are already habituated or accustomed to a particular way of doing things, it is best practice to study the culture and establish what its advantages are. This can then be compared to its demerits. If the demerits clearly and consistently present risks that make of no relevance the advantages, the leader(s) must move to correct such a risk.
So assuming that using mobile phones makes ICT risks (such as loss of company data, loss of company data, risk of unauthorised access etc) even more pronounced, whether or not the app is the best solution will depend on the total cost of that solution to the company weighed against other options.
Other options could simply be
- looking for an already existing app
- banning the using of mobile phone for office work using etc
- re-establishing the use of laptops as the preferred work tool
In any of the above scenarios, the leadership will succeed in influencing its workers positively if it:
plays its part well as a cultural shift role modelbecomes an arbiter of the policies modifying changes affecting work styleencourages the new workstyle by rewarding those that embrace it openly manage change by ensuring that there is a training platform that helps ease the transition into the new work style.Cheers
everyone makes mistakes sometimes. when we ask your most recent manager what types of mistakes you would be least likely to make on the job what will they say
Answer:
needs to be more spefic
Explanation:
Assume that the current price of a stock is $100. A call option on that stock with an exercise price of $97 costs $7. A call option on the stock with the same expiration and an exercise price of $103 costs $3. Using these options what is the expiration profit of a bear call spread if the stock price is equal to $110
Answer:
-2
Explanation:
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers.
Record on page 10 of the journal
Mar. 2 Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,300.
3 Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,000.
4 Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of the goods sold was $33,200.
5 Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $19,400.
12 Received check for amount due from Equinox Co. for sale on March 2.
14 Sold merchandise to customers who used American Express cards, $13,700. The cost of the goods sold was $8,350.
16 Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $16,000.
18 Issued credit memo for $4,800 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,900.
Record on page 11 of the journal
Mar. 19 Sold merchandise on account to Vista Co., $8,250, terms FOB shipping point, 2/10, n/30. Added $75 to the invoice for prepaid freight. The cost of the goods sold was $5,000.
26 Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.
28 Received check for amount due from Vista Co. for sale of March 19.
31 Received check for amount due from Empire Co. for sale of March 4.
31 Paid Fleetwood Delivery Service $5,600 for merchandise delivered during March to customers under shipping terms of FOB destination.
Apr. 3 Paid City Bank $940 for service fees for handling MasterCard and American Express sales during March.
15 Paid $6,544 to state sales tax division for taxes owed on sales.
Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles.
Chart of Accounts
CHART OF ACCOUNTS
Amsterdam Supply Co.
General Ledger
ASSETS
110 Cash
121 Accounts Receivable-Empire Co.
122 Accounts Receivable-Equinox Co.
123 Accounts Receivable-Targhee Co.
124 Accounts Receivable-Vista Co.
125 Notes Receivable
130 Inventory
131 Estimated Returns Inventory
140 Office Supplies
141 Store Supplies
142 Prepaid Insurance
180 Land
192 Store Equipment
193 Accumulated Depreciation-Store Equipment
194 Office Equipment
195 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
216 Salaries Payable
218 Sales Tax Payable
219 Customer Refunds Payable
221 Notes Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
521 Delivery Expense
522 Advertising Expense
524 Depreciation Expense-Store Equipment
525 Depreciation Expense-Office Equipment
526 Salaries Expense
531 Rent Expense
533 Insurance Expense
534 Store Supplies Expense
535 Office Supplies Expense
536 Credit Card Expense
539 Miscellaneous Expense
710 Interest Expense
Journal
Shaded cells have feedback.
Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles.
How does grading work?
PAGE 10
JOURNAL
ACCOUNTING EQUATION
Answer:
Accounts Receivable (Dr.) $18,900
Sales (Cr.) $18,900
Cost of good sold (Dr.) $13,300
Inventory (Cr.) $13,300
Cash (Dr.) $12,031
Sales (Cr.) $11,350
Sales tax payable (Cr.) $681
Cost of goods sold (Dr.) $7,000
Inventory (Cr.) $7,000
Accounts receivable (Dr.) $27,500
Sales (Cr.) $27,500
Cost of goods sold (Dr.) $16,000
Inventory (Cr.) $16,000
Cash (Dr.) $18,711
Cash discount (Dr.) $189
Accounts receivable (Cr.) $18,900
Explanation:
Cash discount is the discount given to customers who pay before the credit terms. This is available to those customers who buy goods on credit. This is recorded as expense.
Cash discount : $18,900 * 0.01 = $189
Paul, the Director of Recruitment at an insurance company, finds that the company has a disparate impact on the proportion of Hispanic employees compared to the proportion of Hispanics in the labor market. Which of the following steps should Paul take to solve the problem most efficiently?
a) He should lower the job specifications for Hispanic applicants.
b) He should continue using the current recruiting practices because only organizations with affirmative action plans are required to meet EEO guidelines.
c) He should start advertising for job openings on the local Spanish radio station.
d) He should freeze the hiring process until qualified Hispanics apply for vacant positions
Answer: c) He should start advertising for job openings on the local Spanish radio station.
Explanation:
This realization by Paul should make him want to hire more Hispanics into the company and the best way to do so would be to advertise it in such a way that Hispanics have a better chance of hearing about job openings.
Advertising on Spanish radio would ensure that Hispanics hear the advertisements because they are the main ethnicity that speaks Spanish. This will give them an edge in learning about job openings and enable Paul to hire more Hispanics.
Tracey Sales Co. has predicted the following costs for this year for 500,000 units: Manufacturing Selling and Administrative Variable $ 800,000 $250,000 Fixed 1,200,000 300,000 Total $2,000,000 $550,000 What is the markup on variable manufacturing costs needed to break even
Answer: 218.75%
Explanation:
In order to breakeven, the variable manufacturing cost would have to be the same as the fixed costs in addition to the administrative costs.
= Fixed costs + Administrative cost
= 1,200,000 + 550,000
= $1,750,000
Variable cost needs to be $1,750,000
It is currently at $800,000 so it needs to increase by:
= 1,750,000 / 800,000 * 100%
= 218.75%
Ayayai Corp. uses a periodic inventory system. Its records show the following for the month of May, in which 69 units were sold.
Date Explanation Units Unit Cost Total Cost
May 1 Inventory 32 $8 $256
15 Purchase 25 9 225
24 Purchase 41 10 410
Total 98 $891
Calculate the weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.)
Weighted-average unit cost $____
Calculate the ending inventory at May 31 using the FIFO, LIFO and average-cost methods. (Round answers to 0 decimal places, e.g. 125.)
FIFO LIFO Average Cost
$____ $____ $_______
Answer:
a. Weighted-average unit cost = $9.092
b. We have:
Ending inventory at May 31 using the FIFO method = $290
Ending inventory at May 31 using the LIFO method = $232
Ending inventory at May 31 using the average-cost method = $264
Explanation:
a. Calculate the weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.)
Weighted-average unit cost = Total Cost of units of inventory available for sale / Total units of units of inventory available for sale = $891 / 98 = $9.092
b. Calculate the ending inventory at May 31 using the FIFO, LIFO and average-cost methods. (Round answers to 0 decimal places, e.g. 125.)
Ending inventory in units = Total units of units of inventory available for sale – Units sold = 98 - 69 = 29
Therefore, we have:
Ending inventory at May 31 using the FIFO method = Ending inventory in units * Unit cost of purchases on May 24 = 29 * $10 = $290
Ending inventory at May 31 using the LIFO method = Ending inventory in units * Unit cost of inventory on May 1 = 29 * $8 = $232
Ending inventory at May 31 using the average-cost method = Ending inventory in units * Weighted-average unit cost = 29 * $9.092 = $264
Vextra Corporation is considering the purchase of new equipment costing $38,000.The projected annual cash inflow is $11,600, to be received at the end of each year.The machine has a useful life of 4 years and no salvage value.Vextra requires a 12% return on its investments.The present value of an annuity of $1 for different periods follows:Periods 12 Percent1 0.89292 1.69013 2.40184 3.0373What is the net present value of the machine (rounded to the nearest whole dollar)?a. $(35,233).b. $(2,767).c. $38,000.d. $(3,700).e. $5,233.
Answer:
b. $(2,767).
Explanation:
The computation of the net present value is shown below:
= Present cash flows - initial investment
= ($11,600 × 3.0373) - $38,000
= $35,232.68 - $38,000
= -$2,767.32
= -$2,767
Hence, the option b is correct
We simply applied the above formula to determine the net present value
Zero Calories Company has 16,000 shares of cumulative preferred 1% stock, $40 par and 80,000 shares of $150 par common stock. The following amounts were distributed as dividends:
Year 1 $21,600
Year 2 4,000
Year 3 100,800
Determine the dividends per share for preferred and common stock for each year.
You pay $75 for a ticket to a Drake concert. You think the ticket is worth $100. The night before the concert your friend offers you a free ticket to a Post Malone concert that you think is worth $80. What is the opportunity cost to you of going to the Drake concert instead of the Post Malone concert?a) $155b) $20c) $5d) $75e) $80
Answer: $80
Explanation:
The opportunity cost is regarded as the real cost of the alternative that was left or forgone.
Based on the information given in the question, the opportunity cost is the free ticket to a Post Malone concert that is worth $80 which was given to me by my friend.
Therefore, the correct option is E.
Assume a market for a normal good is currently in equilibrium. If the government increases the taxes that firms must pay, then:
Answer:
The supply will decrease.
Explanation:
The supply will decrease because the application of taxes will make selling costly. Thus, when cost increases then producers supply less. Therefore, less quantity will be supplied in the market when tax is imposed and this will increase the prices of products.
A game has a saddle point when the maximin payoff value equals the minimax payoff value. true or false
Answer:
True
Explanation:
To answer this question, I'll use the following illustration.
Minimax = <10,18,15>
Maximax = <8,4,10>
The payoff of the minimax is 10 (i.e. the smallest) and the payoff of the maximax is 10 (i.e. the largest)
Both payoffs are equal; hence, 10 is the saddle point.
Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $1,400,000 of 4-year, 7% bonds at a market (effective) interest rate of 6%, receiving cash of $1,449,138. Interest is payable semiannually on April 1 and October 1.
Required:
A. Journalize the entries to record the following. Refer to the Chart of Accounts for exact wording of account titles.
1. Issuance of bonds on April 1.
2. First interest payment on October 1 and amortization of bond premium for six months, using the straight-line method. The bond premium amortization is combined with the semiannual interest payment. (Round to the nearest dollar.)
B. Explain why the company was able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000.
Answer:
A1.Apr.1
Dr Cash $1,449,138
Cr Premium on Bonds Payable $49,138
Cr Bonds Payable $1,400,000
A2. Oct. 1
Dr Interest Expense $24,431
Dr Premium on Bonds Payable $24,569
Cr Cash $49,000
B. The BONDS was paying HIGHER INTEREST RATE of 7% to the MARKET INTEREST RATE of 6%.
Explanation:
A1. Preparation of the journal entry to record Issuance of bonds on April 1Apr.1
Dr Cash $1,449,138
Cr Premium on Bonds Payable $49,138
($1,449,138-$1,400,000)
Cr Bonds Payable $1,400,000
(To record Issuance of bonds)
A2. Preparation of the journal entry to record First interest payment on October 1 and amortization of bond premium for six months, using the straight-line method.
Oct. 1
Dr Interest Expense $24,431
($49,000-$24,569)
Dr Premium on Bonds Payable $24,569
[($1,449,138-$1,400,000)4*2]
Cr Cash $49,000
( $1,400,000 x 7% x 6/12)
(To record First interest payment and amortization of bond premium )
B. Based on the information given the reason
WHY the company was able to issue the bonds for $20,811,010 RATHER THAN for the FACE AMOUNT of $20,000,000 was because the BONDS was paying HIGHER INTEREST RATE of 7% to the MARKET INTEREST RATE of 6%.
