Answer:
When you reconcile your business bank account, you compare your internal financial records against the records provided to you by your bank. A monthly reconciliation helps you identify any unusual transactions that might be caused by fraud or accounting errors, and the practice can also help you spot inefficiencies.
Answer:
all of the above
Explanation:
est County Bank agrees to lend Cullumber Company $496000 on January 1. Cullumber Company signs a $496000, 6%, 6-month note. What entry will Cullumber Company make to pay off the note and interest at maturity assuming that interest has been accrued to June 30? Interest Payable 7440 Notes Payable 496000 Interest Expense 7440 Cash 510880 Interest Expense 14880 Notes Payable 496000 Cash 510880 Notes Payable 510880 Cash 510880 Notes Payable 496000 Interest Payable 14880 Cash 510880
Answer:
Dr Notes Payable $496,000
Dr Interest Payable $14,880
Cr Cash $510,880
Explanation:
Preparation of the journal entry that Cullumber Company will make to pay off the note and interest at maturity assuming that interest has been accrued to June 30
Dr Notes Payable $496,000
Dr Interest Payable $14,880
($496000*6%*6/12)
Cr Cash $510,880
($496,000+$14,880)
(To record note and interest at maturity)
Howard's Supply Co. suffered a fire loss on April 20, 2021. The company's last physical inventory was taken January 30, 2021, at which time the inventory totaled $226,000. Sales from January 30 to April 20 were $606,000 and purchases during that time were $456,000. Howard's consistently reports a 30% gross profit. The estimated inventory loss is: Multiple Choice
Answer:
$257,800
Explanation:
According to the scenario, calculation of the given data are as follows,
Inventory on Jan. 30,2021 = $226,000
Sales = $606,000
Purchase = $456,000
Gross profit = 30% × $606,000 = $181,800
So, we can calculate the inventory loss by using following formula,
Inventory loss = COG for sale - COG sold
= ($226,000 + $456,000) - ($606,000 - $181,800)
= $682,000 - $424,200
= $257,800
Use the following information for the Quick Study below. (The following information applies to the questions displayed below.]
The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 12,500 units during November. The following production activity unit and cost information refers to the assembly department's November production activities. Assembly Department Beginning work in process Units transferred out Ending work in process Units 3,000 10,000 5,500 Percent of Direct Materials Added 708 100% 803 Percent of Conversion 308 100% 30% $3,070 (includes $2,130 for direct materials and $940 for conversion) Beginning work in process inventory-Assembly dept Costs added during the month: Direct materials Conversion $ 20,910 $ 22,360 QS 16-13 Weighted average: Journal entry to transfer costs LO P4
Required: Prepare the November 30 journal entry to record the transfer of units (and costs) from the assembly department to the painting department. Use the weighted average method.
Answer:
The Carlberg Company
Journal Entry:
Debit Work in Process (Painting Department) $36,000
Credit Work in Process (Assembly Department) $36,000
To record the transfer of 10,000 units from the assembly department to the painting department.
Explanation:
a) Data and Calculations:
Units started during November = 12,500
Assembly Department
Units Percent of Direct Percent of
Materials Added Conversion
Beginning work in process 3,000 70% 30%
Units started during Nov. 12,500
Units transferred out 10,000 100% 100%
Ending work in process 5,500 80% 30%
Cost of beginning work in process = $2,130 $940 $3,070
Costs added during the month: $ 20,910 $ 22,360 $43,270
Total costs of production $23,040 $23,300 $46,340
Equivalent units of production:
Units transferred out 10,000 10,000 10,000
Ending work in process 5,500 4,400 1,650
Total equivalent units 14,400 11,650
Cost per equivalent unit:
Total costs of production $23,040 $23,300
Total equivalent units 14,400 11,650
Cost per equivalent unit $1.60 $2.00
Cost assigned to: Materials Conversion Total
Units transferred out $16,000 $20,000 $36,000
($1.60*10,000) ($2*10,000)
Ending Work in process 7,040 3,300 10,340
($1.60*4,400) ($2*1,650)
Total costs allocated $23,040 $23,300 $46,340
A developing economy requires 1,000 hours of work to produce a television set and 10 hours of work to produce a bushel of corn. This economy has available a total of 1,000,000 hours of work per day.
Answer:
so what's your question
Benny is 57 years old and is employed by the state as a school bus driver.He has an exemplary record,with no accidents in the past 27 years.Tom,aged 31,replaces Benny.Benny intends to file a discrimination claim under the Age Discrimination in Employment Act (ADEA)with the Equal Employment Opportunity Commission.If Benny lives in a state that has not waived sovereign immunity,which of the following statements is most likely to be true?
A) Benny has a valid claim and can sue the state because he can establish all of the elements of a prima facie case.
B) Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
C) Benny is a state employee and must file his claim pursuant to the Older Workers' Benefit Protection Act.
D) Benny does not have a claim for age discrimination under the ADEA as he was replaced by an employee who is older than 30.
Answer: B. Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
Explanation:
Based on the information given in the question, since Benny lives in a state that has not waived sovereign immunity, thus simply means that Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
Eben though the Age Discrimination in the Employment Act protects workers that are 40 years and above and Benny is 57 years, it should be noted that in the states whereby sovereign immunity hasn't been waived, the state employees cannot due their employers as they're barred from doing so.
Therefore, the correct option is B.
Waterway Industries is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6400000 on March 1, $5250000 on June 1, and $8650000 on December 31. Waterway Industries borrowed $3200000 on January 1 on a 5-year, 11% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 3-year, $6440000 note payable and an 10%, 4-year, $12550000 note payable.
Required:
What are the weighted-average accumulated expenditures?
Answer:
$8,395,833
Explanation:
Calculation to determine What are the weighted-average accumulated expenditures
Weighted-average accumulated expenditures
=($6,400,000 × 10/12) + ($5,250,000 × 7/12) + ($8,650,000 × 0/12)
Weighted-average accumulated expenditures=$5,333,333+$3,062,500+0
Weighted-average accumulated expenditures=$8,395,833
Therefore the weighted-average accumulated expenditures will be $8,395,833
According to the attraction-selection-attrition (ASA) theory, job applicants Question 27 options: do not typically pay much heed to organizational values when applying for work. with a variety of personal characteristics are preferred by organizations, resulting in a more heterogeneous organization. avoid employment in companies whose values seem incompatible with their own values. avoid other applicants if they are competing for the same jobs.
Answer:
avoid employment in companies whose values seem incompatible with their own values.
Explanation:
Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;
I. Natural Rate of Unemployment (NU).
II. Frictional unemployment rate (FU).
III. Structural unemployment rate (SU).
IV. Actual unemployment rate (AU).
V. Cyclical unemployment rate (CU).
The attraction-selection-attrition (ASA) theory was developed and introduced by Benjamin Schneider. This theory typically gives the reason why a business firm or organization looks and feels the way it does with respect to the employees and employers.
According to the attraction-selection-attrition (ASA) theory, job applicants avoid employment in companies whose values seem incompatible with their own values. Also, it states that job applicants are usually attracted to colleagues having similar assumptions and values.
what is the reading about?
Task 1 . The income (in thousand $) of 5 small companies labeled AA , BB , CC , DD , EE has been calculated and the results are as follo,;vs:
2.49j 2.39j 2.39, 1.79, 3.8 .
1. Put the obtained data as points on the following coordinate system.
Income value
3
2
1
AA BB CC DD EE Company
2. Calculate the mean value from the sample for these data:
On the chart draw a line y = x (a horizontal line at the level of the mean of the sample) and for every measurement mark the difference between the value of the measurement and the sample mean.
3. Calculate the samples variance, standard deviation and the estimator of variance:
Icr2 =_.!_ f=_(xi -
I• I
__ n i=l
x_) _= iT
4. Write proper values into the following tagged fields and interpret the results obtained:
CJ CJ
x - 20- x - a x+ a x+ 20-
Date of simulation : 2021 03 02 20:30:20.050 Seed: 20302 8071 .
8
Answer:
yggjuytygyvcfryttgggv
Explanation:
Citibank need to borrow $1 million for 6 months starting in 2 years. Citibank is concerned about the interest rate would like to lock in the interest rate it pays by going long an FRA with Bank of America. The FRA specifies that Citibank will borrow at a fixed rate of 0.04 for 6 months on $1 million in 2 years. If the 6 months LIBOR rate proves to be 0.01. Then to settle the FRA, what is the cash flow to Citibank at the end of 2 years
Answer:
"$ 15,000" is the correct solution.
Explanation:
The given values are:
Agreed fixed rate,
= 0.04
LIBOR rate,
= 0.01
No. of borrowing months,
= 6
National amount,
= 1000000
Now,
The net payment will be:
= [tex]National \ principal*(Floating \ rate - Fixed \ rate)\times \frac{No. \ of \ months}{12}[/tex]
On substituting the above values, we get
= [tex]1000000\times (0.01-0.4)\times \frac{6}{12}[/tex]
= [tex]1000000\times (-0.03)\times 0.5[/tex]
= [tex]-15,000[/tex] ($)
8. Imagine a private company decides to sponsor an event in exchange for publicity. Give an example of when a sponsorship could have a negative result for the sponsoring company.
Answer:
Political events like a candidate rally are particularly tricky for companies, and sponsoring them could result in a lot of consumer backlash, specially from the people who are not affiliated to the sponsored politician or political party.
This is why many companies avoid political sponsorships or political statements, because politics is a very divisive issue, and while such an action could earn the company the loyal following of a few, it could also discourage a lot more people from ever buying their products.
Dinham Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During March, the kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,740 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Fixed element per month Variable element per tenant-day Revenue - $ 34.60 Wages and salaries $ 2,600 $ 7.60 Food and supplies 1,600 14.10 Facility expenses 8,100 3.10 Administrative expenses 6,600 0.10 Total expenses $ 18,900 $ 24.90 Actual results for March: Revenue $ 125,356 Wages and salaries $ 28,560 Food and supplies $ 54,875 Facility expenses $ 19,150 Administrative expenses $ 7,096 The spending variance for food and supplies in March would be closest to:
Answer:
$541 Unfavorable
Explanation:
Flexible budget for food and supplies = Fixed expenses + (Actual activity * Variable cost per tenant day)
Flexible budget for food and supplies = $1,600 + (3,740 * $14.10)
Flexible budget for food and supplies = $1,600 + $52,734
Flexible budget for food and supplies = $54,334
Spending variance = Actual results - Flexible budget
Spending variance = $54,875 - $54,334
Spending variance = $541 Unfavorable
advantages and disadvantages of proxemics
Answer:
Advantages of non-verbal communication are a compliment, substitute, attraction, express, helps physically challenged
TB MC Qu. 08-93 A company has established... A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 5,200 pounds of Material J that cost $9,880.The direct materials price variance is: Multiple Choice $520 unfavorable. $400 unfavorable. $120 favorable. $520 favorable. $400 favorable.
Answer:
Direct material price variance= $520 favorable
Explanation:
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2 - 1.9)*5,200
Direct material price variance= $520 favorable
Actual price= 9,880 / 5,200= $1.9
When presenting evidence in a Small Claims Court, it is advisable to avoid using pictures or graphics.
T OR F
The statement "When presenting evidence in a Small Claims Court, it is advisable to avoid using pictures or graphics" is true.
What is graphics?Graphics are visual pictures or designs on a material, such as a wall, canvas, screen, paper, or stone, that inform, explain, or entertain.
In modern use, it refers to a graphical representation of data, such as in design and manufacturing, typesetting and the visual arts, and instructional and recreational software. Computer graphics refers to images created by a computer.
Small claims courts are a simple, informal, and low-cost method for settling matters with claims of $7,000 or less.
It is correct that "when presenting evidence in a Small Claims Court, it is best to avoid introducing photographs or graphics." Therefore, it can be concluded that the above statement is true.
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Ralph, knowing that his son, Ed, desires to purchase a tract of land, promises to give him the $25,000 he needs for the purchase. Ed, relying on this promise, buys an option on the tract of land. Now Ralph wants to rescind his promise to Ed. Will Judy be required to give her daughter, Liza, the tract of land on which she has started to build, and will Ralph be required to give his son, Ed $25,000 to purchase a tract of land. Can Ralph rescind his promise?
Answer:
(a) Yes, Judy will be required to give her daughter, Liza, the tract of land on which she has started to build. Therefore, Judy cannot rescind his promise to Liza.
(b) No, Ralph will NOT be required to give his son, Ed $25,000 to purchase a tract of land. Therefore, Ralph can rescind his promise.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
(a) Judy orally promises her daughter, Liza, that she will give her a tract of land for her home. Liza, as intended by Judy, gives up her homestead and takes possession of the land. Liza lives there for six months and starts construction of a home. Now Judy wants to rescind his promise to Liza.
(b) Ralph, knowing that his son, Ed, desires to purchase a tract of land, promises to give him the $25,000 he needs for the purchase. Ed, relying on this promise, buys an option on the tract of land. Now Ralph wants to rescind his promise to Ed.
Will Judy be required to give her daughter, Liza, the tract of land on which she has started to build, and will Ralph be required to give his son, Ed $25,000 to purchase a tract of land. Can Ralph rescind his promise?
Explanation of the answers is now provided as follows:
Each of the two cases will be decided based on the principle promissory estoppel.
Promissory estoppel refers to the legal principle that states that despite that there us formal consideration attached to a promise, it is still enforceable by law if the promise from the promisor makes the promisee to rely on the promise to his subsequent detriment.
(a) Will Judy be required to give her daughter, Liza, the tract of land on which she has started to build?
Yes, Judy will be required to give her daughter, Liza, the tract of land on which she has started to build.
The is because Liza has relied on the promise from Judy to her subsequent detriment by giving up her up her homestead and already starts construction of a home. Since the Judy promise from Judy induces the action of Liza that is reasonably expected by Judy, he cannot rescind his promise to Liza.
(b) Will Ralph be required to give his son, Ed $25,000 to purchase a tract of land. Can Ralph rescind his promise?
No, Ralph will NOT be required to give his son, Ed $25,000 to purchase a tract of land.
This is because there is Ed has not taken any definite and substantial action to justify that he has relied on the promise from Ralph to his subsequent detriment. It may not be possible to construe the purchase of an option on the tract of land by Ed as a definite and substantial action. Therefore, Ralph can rescind his promise.
Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $71,000 per ton, one-fourth of which is allocated to product X15. Six thousand five hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $17 each, or processed further at a total cost of $8,800 and then sold for $22 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15
Answer:
Financial advantage of further processing =$23,700
Explanation:
A company should process a product further if the additional revenue from the split-off point is greater than than the further processing cost.
Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further .
$
Additional sales revenue from further processing
($22-$17)× 6,500 32,500
Less further processing cost (8,800)
Financial advantage 23,700
Financial advantage of further processing =$23,700
Suppose you trade dollars and euros for a bank that has branches in Los Angeles and Frankfurt. You can electronically transfer the funds between the two branch locations at no cost, and trading commissions are negligible. The current dollar-per-euro exchange rate in Los Angeles is E$/EURLA=1.5653 , while in Frankfurt, it is E$/EURFR=1.586.
You can make a profit for the bank if you buy euros in _______ and sell them in _________.
Answer:
Explanation:
Profit will be made by you for the bank if you buy the Euros in Los Angeles, and sell the Euros to customers in Frankfurt...
Buying in Los Angeles comes at a price of $1 = €1.5653, then going ahead to sell in Frankfurt means you get to sell it at a rate of $1 = €1.586
Although this is a very tiny difference, of 0.0207. The reality is that when you're doing a lot of tradings that involves currency, you tend to see the profit. If for example, a total of $1 million is traded, then the profit would be $20700, which we all can attest to the fact that it's a lot of money.
The Cork Company has been sent a special order of 6,000 dongles to be shipped at the end of the month at a selling price of $7 each. The company has a production capacity of 90,000 dongles per month with total fixed production costs of $144,000. At present, the company is selling 80,000 dongles per month through regular channels at a selling price of $11 each. For these regular sales, the cost for one dongle is:
Variable Production $4.60
Cost Fixed Production Cost $1.80
Variable Selling Expense $1.00
At what selling price per unit should Cork be indifferent between accepting or rejecting the special offer?
a. $7.40.
b. $7.70
c. $6.40
d. $4.90.
e. None of the answers provided is correct.
Answer:
Indifferent special order price=$5.60
Explanation:
To determine whether or not Cork Company should accept the order, we will compare the variable cost of the order to the sales value . If the special order generates a positive contribution margin, then it should be accepted.'
The relevant cash flows to be considered here includes
1. Variable cost of the special order
2. Sales revenue from the special order.
Note that the fixed cost are general unavoidable costs which would be incurred either way. And therefore should not be considered .
variable cos per unit = 4.60 +1.00= 5.60
$
Sales revenue from special order
(7×6,000) 42,000
Variable cost (5.60× 6,000) (33,600)
Net income from special order 8,400
A special order price that will produce a net income of zero is that which will make the Cork Company indifferent. And such price is that which equals to the variable cost of selling
Indifferent special order price = variable cost per unit = $5.60
Indifferent special order price=$5.60
The special offers under the cost accounting are the changes or the events arranged in between the regular business operations. The special offer is launched at lower or higher variable costs. This is done either to attract customers or to clear off the stock.
The correct option is e. None of the answer provided is correct.
The selling price per unit that is indifferent between accepting or rejecting the special offer is $5.60
As per the computation, the special offer should be accepted.
Computations:
The indifferent special order price should include only the variable cost.
[tex]\text{Indifferent price}=\text{Variable Production cost}+\text{Variable selling expense}\\\\=\$4.60+\$1.00\\\\=\$5.60[/tex]
Computation of net income from a special offer:
[tex]\text{Net Income}=\text{Sales revenue}-\text{Variable cost}\\\\=(\$7\times6,000)-(\$5.60\times6,000)\\\\=\$442,000-\$33,600\\\\=\$8,400[/tex]
For taking the decision of accepting or rejecting the special offer:
variable costs of existing and special offers are compared.The variable cost and the selling price must be equal for generating a net income of zero.The positive contribution margin indicates acceptance of the special offer.To know more about cost accounting, refer to the link:
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A company reports the following: Sales $3,150,000 Average accounts receivable (net) 210,000 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover fill in the blank 1 b. Number of days' sales in receivables
Answer:
a. Account Receivables turnover = Sales / Average Account Receivables
Account Receivables turnover = $3,150,000 / $210,000
Account Receivables turnover = 15
b. Number of days sales in receivables = 365 / Account Receivables turnover
Number of days sales in receivables = 365 days / 15
Number of days sales in receivables = 24.33 days
For 126 consecutive days, a process engineer has measured the temperature of champagne bottles as they are made ready for serving. Each day, she took a sample of 8 bottles. The average across all 1,008 bottles (126 days, 8 bottles per day) was 58 degrees Fahrenheit. The standard deviation across all bottles was 1.5 degree.
When constructing an X-bar chart, what would be the center line?
Answer:
58 degrees fahrenheit
Explanation:
the centerline will be 58 degrees fahrenheit
the upper control limit = 58 degrees + (1.099 x 1.5) = 59.6485 degrees fahrenheit
the lower control limit = 58 degrees - (1.099 x 1.5) = 56.3515 degrees fahrenheit
the A₃ control value for n = 8 is 1.099
Berry Corp. is considering an investment with an initial cost of $250,000. Assume straight line depreciation with no salvage value is appropriate. The investment is expected to generate cash revenues of $200,000 and incur cash costs of $120,000 each year for the next four years. Assume straight line depreciation with no salvage value is appropriate. What is the investment's annual rate of return
Answer:
14%
Explanation:
Depreciation = Cost - Residual value / Useful life
Depreciation = ($250,000 - 0)/4
Depreciation = $62,500
Annual net earnings = Revenue - Cost - Depreciation
Annual net earnings = $200,000 - $120,000 - $62,500
Annual net earnings = $17,500
Annual rate of return = Annual net earnings / Average investment
Annual rate of return = $17,500/ [($250,000 + $0) /2]
Annual rate of return = $17,500 / $125,000
Annual rate of return = 0.14
Annual rate of return = 14%
Cavy Company estimates that the factory overhead for the following year will be $1,745,300. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 56,300 hours. Calculate the predetermined overhead rate to apply factory overhead. Round your answer to the nearest cent. $fill in the blank 1 per machine hour
Answer:
$31
Explanation:
Given the following information,
Total factory overhead costs = $1,745,300
Direct labor hours = 56,300
To calculate the predetermined manufacturing overhead rate, we will make use of the formula below;
Predetermined manufacturing overhead rate = Total estimated overhead costs for the period / Total amount of allocation base
= $1,745,300 / 56,300
= $31
Therefore, the predetermined overhead rate to apply to factory overhead is $31
Bill Smith is evaluating the performance of four large-cap equity portfolios: Funds A, B, C, and D. As part of his analysis, Smith computed the Sharpe ratio and the Treynor's measure for all four funds. Based on his finding, the ranks assigned to the four funds are as follows: Fund Treynor Measure Rank Sharpe Ratio Rank A 1 4 B 2 3 C 3 2 D 4 1 The difference in rankings for Funds A and D is most likely due to:
Question Completion with Options:
a. A lack of diversification in fund A as compared to fund D.
b. Different benchmarks used to evaluate each fund’s performance.
c. A difference in risk premiums.
Answer:
The difference in rankings for Funds A and D is most likely due to:
a. A lack of diversification in fund A as compared to fund D.
Explanation:
a) Data and Calculations:
Fund Treynor Measure Rank Sharpe Ratio Rank
A 1 4
B 2 3
C 3 2
D 4 1
b) The Sharpe ratio and the Treynor measure are two financial performance ratios that measure the risk-adjusted rate of return of an investment. Specifically, the Sharpe ratio helps investors to understand an investment's return profile when compared to its risk profile. On the other hand, the Treynor ratio measures the excess return generated for portfolio risk per unit.
In conclusion, the Sharpe ratio appears to be a better measure with a portfolio that is not properly diversified, while the Treynor ratio works better with a well-diversified portfolio.
Determine aggregate expenditures (AE) in this economy when real GDP (Y) is equal to $1,500 billion, $2,000 billion, and $2,500 billion.
When Y = $1,500 billion, AE =
billion.
When Y = $2,000 billion, AE =
billion
When Y = $2.500 billion, AE =
billion.
Answer:
a) When Y = $1,500 billion, AE =$1050 billion
b)When Y = $2,000 billion, AE = $1400 billion
c) When Y = $2.500 billion, AE =$1750 billion
Explanation:
As we know,
Yd = Y- T
Y = national income (or GDP)
T = Tax Revenues = 0.3Y
a) When Y = $1,500 billion, AE = $1,500 -0.3*$1,500 = $1050 billion
b) When Y = $2,000 billion, AE =$2,000 - 0.3*$2,000 = $1400 billion
c) When Y = $2.500 billion, AE = $2.500 - 0.3 * $2.500 = $1750 billion
Assuming the economy to operate in equilibrium, the aggregate expenditure model explains that GDP is equal to the Aggregate expenditure. Therefore, the solutions are:
Y = $1,500 billion, AE = $1,500 billion.Y = $2,000 billion, AE = $2,000 billion.Y = $2,500 billion, AE = $2,500 billion.What is the aggregate expenditure model?The aggregate expenditure model explains the relationship between GDP and planned spending. The model states that:
[tex]\rm GDP = Planned \:spendings[/tex]
Therefore the Aggregate expenditure for the real GPDs is:
Y = $1,500 billion, AE = $1,500 billion.Y = $2,000 billion, AE = $2,000 billion.Y = $2,500 billion, AE = $2,500 billion.Learn more about the aggregate expenditure model here:
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Budgeted Income Statement Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of $19,700,000 and cost of goods sold of $10,835,000. Advertising is a key part of Coral Seas' business strategy, and total marketing expense for the year is budgeted at $3,546,000. Total administrative expenses are expected to be $788,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income.
Required:
Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year. Enter your answers in dollars and not in millions.
Answer:
The budgeted net income for the coming year is $2,718,600.
Explanation:
The budgeted income statement for Coral Seas Jewelry Company for the coming year can be constructed as follows:
Coral Seas Jewelry Company
Budgeted Income Statement
For the Coming Year
Details Amount ($)
Sales 19,700,000
Cost of Goods Sold (10,835,000)
Gross Margin 8,865,000
Marketing Expenses (3,546,000)
Administrative Expenses (788,000)
Operating income 4,531,000
Income Tax (40%) (1,812,400)
Net Income 2,718,600
Your and your business partner bake bread to be sold at the Madison Farmer's Market every Saturday. You calculate the underage cost to be $2.50 per loaf and the overage cost to be $0.75 per loaf. If you are baking the profit maximizing amount of bread that balances the overage and underage cost, how often should you expect to run out of bread at the farmer's market
Answer:
23%
Explanation:
Overage cost(Co) = $0.75
Underage cost(Cu) = $2.50
Service level = Cu/(Co + Cu)
Service level = $2.50 / ($0.75+$2.50)
Service level = $2.50 / $3.25
Service level = 0.76923077
Service level = 76.92%
So the optimal service level is 77%
Risk of stock-out = 100% - Service level
Risk of stock-out = 100% - 77%
Risk of stock-out = 23%
Evanson Company expects to produce 540,000 units of their product during the year. Monthly production is expected to range from 40,000 to 80,000 units. The company has budgeted manufacturing costs per unit to be as follows: Direct materials $ 14 Direct labor 15 Variable manufacturing overhead 16 Fixed manufacturing overhead 3 Prepare a flexible manufacturing budget using 20,000 unit increments.
Answer:
Evanson Company
Evanson Company
Flexible Monthly Budget
Activity Level:
Finished goods (Units) 40,000 60,000 80,000
Variable costs:
Direct materials $560,000 $840,000 $1,120,000
Direct labor 600,000 900,000 1,200,000
Manufacturing overhead 640,000 960,000 1,280,000
Total variable costs $1,800,000 $2,700,000 $3,600,000
Fixed manufacturing
overhead 135,000 135,000 135,000
Total production costs $1,935,000 $2,835,000 $3,735,000
Explanation:
a) Data and Calculations:
Expected production units per year = 540,000
Average monthly production units = 45,000 (540,000/12)
Manufacturing costs per unit:
Direct materials $ 14
Direct labor 15
Variable manufacturing overhead 16
Fixed manufacturing overhead 3
Total yearly fixed overhead = $1,620,000 (540,000 * $3)
Monthly fixed overhead = $135,000 ($1,620,000/12)
b) A flexible budget has varying activity levels from one period to the next. One interesting feature of the flexible budget is that the variable costs are fixed per unit, but their totals vary with the volume levels. On the other hand, the fixed costs remain static in totals but vary per unit.
The following is a December 31, 2018, post-closing trial balance for Almway Corporation.
Account Title Debits
Credits
Cash 77,000
Investments 142,000
Accounts Receivable 76,000
Investments 216,000
Prepaid insurance (for the next 9 Months) 6,000
Land 122,000
Buildings 436,000
Accumulated Depreciation-Buildings 116,000
Equipment 126,000
Accumulated Depreciation-Equipment 76,000
Patents (net of amortization) 26,000
Accounts Payable 107,000
Notes Payable 178,000
Interest Payable 36,000
Bonds Payable 256,000
Common Stock 348,000
Retained Earnings 110,000
Totals 1,227,000 1,227,000
Additional information:_______.
The investment in equity securities account includes an investment in common stock of another corporation of $36,000 which management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year. The land account includes land which cost $31,000 that the company has not used and is currently listed for sale. The cash account includes $21,000 restricted in a fund to pay bonds payable that mature in 2024 and $29,000 restricted in a three-month Treasury bill. The notes payable account consists of the following: a $36,000 note due in six months. a $56,000 note due in six years. a $56,000 note due in five annual installments of $11,200 each, with the next installment due February 15, 2022. The $66,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $9,000. The common stock account represents 106,000 shares of no par value common stock issued and outstanding. The corporation has 500,000 shares authorized.
Required:
Prepare a classified balance sheet for the Almway Corporation at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
Almway Corporation
Classified Balance Sheet
As of December 31, 2018
Assets
Current Assets:
Cash $27,000
Restricted fund (treasury bill) 29,000
Marketable Investments 142,000
Accounts Receivable 85,000
Allowance for Uncollectibles (9,000)
Short-term investment 180,000
Prepaid insurance
(for the next 9 Months) 6,000 $460,000
Long-term Assets:
Restricted fund (bonds payable) 21,000
Long-term investment 36,000
Land for sale 31,000
Land in use 91,000
Buildings 436,000
Accumulated Depreciation (116,000)
Equipment 126,000
Accumulated Depreciation (76,000)
Patents (net of amortization) 26,000 $575,000
Total assets $1,035,000
Liabilities and Equity
Current Liabilities:
Accounts Payable 107,000
Short-term notes payable 47,500
Interest Payable 36,000 $190,500
Long-term liabilities:
Long-term notes payable 130,500
Bonds Payable 256,000 $386,500
Total liabilities $577,000
Equity:
Common Stock 348,000
Retained Earnings 110,000 $458,000
Total liabilities and equity $1,035,000
Explanation:
a) Data and Calculations:
Almway Corporation
Trial Balance as of December 31, 2018
Account Title Debits Credits
Cash 77,000
Investments 142,000
Accounts Receivable 76,000
Investments 216,000
Prepaid insurance
(for the next 9 Months) 6,000
Land 122,000
Buildings 436,000
Accumulated Depreciation-Buildings 116,000
Equipment 126,000
Accumulated Depreciation-Equipment 76,000
Patents (net of amortization) 26,000
Accounts Payable 107,000
Notes Payable 178,000
Interest Payable 36,000
Bonds Payable 256,000
Common Stock 348,000
Retained Earnings 110,000
Totals 1,227,000 1,227,000
Additional Information and Analysis:
a. Investments in equity 216,000:
Short-term investment 180,000
Long-term investment 36,000
b. Land 122,000:
Land for sale 31,000
Land in use 91,000
c. Cash 77,000:
Restricted fund (bonds payable) 21,000
Restricted fund (treasury bill) 29,000
Cash balance 27,000
d. Notes Payable 178,000:
Short-term notes payable 36,000 + 11,500 = $47,500
Long-term notes payable 130,500
e. Accounts Receivable 76,000:
Allowance for uncollectibles 9,000
Accounts receivable 85,000
f. Common Stock 348,000:
Authorized shares, 500,000
106,000 Issued shares, no par 348,000
Almway Corporation
Adjusted Trial Balance as of December 31, 2018
Account Title Debits Credits
Cash 27,000
Restricted fund (bonds payable) 21,000
Restricted fund (treasury bill) 29,000
Marketable Investments 142,000
Accounts Receivable 85,000
Allowance for Uncollectibles 9,000
Short-term investment 180,000
Long-term investment 36,000
Prepaid insurance
(for the next 9 Months) 6,000
Land for sale 31,000
Land in use 91,000
Buildings 436,000
Accumulated Depreciation-Buildings 116,000
Equipment 126,000
Accumulated Depreciation-Equipment 76,000
Patents (net of amortization) 26,000
Accounts Payable 107,000
Short-term notes payable 47,500
Long-term notes payable 130,500
Interest Payable 36,000
Bonds Payable 256,000
Common Stock 348,000
Retained Earnings 110,000
Totals 1,236,000 1,236,000
Cedric Company recently traded in an older model computer for a new model. The old model's book value was $140,000 (original cost of $370,000 less $230,000 in accumulated depreciation) and its fair value was $210,000. Cedric paid $65,000 to complete the exchange, which has commercial substance.
Calculate the following values:
1. Amount to debit for new equipment
2. Amount to debit accumulated depreciation
3. Amount to credit to cash
4. Amount to credit for old equipment
5. Gain or loss on sale
Answer:
1. $210,000
2.$230,000
3. $65,000
4. $370,000
5. $135,000 loss
Explanation:
1. Amount to debit for new equipment
Use the Fair Value of Asset given
2. Amount to debit accumulated depreciation
Use the accumulated depreciation of asset given up.
3. Amount to credit to cash
Use the Cash Paid up
4. Amount to credit for old equipment
Use the cost of asset given up
5. Gain or loss on sale
Gain or loss = Carrying Amount - Fair Value - Cash traded up
