Answer:
Explanation:
In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:
Total assets = Total liabilities + stockholder equity
The debit and credit side of the balance sheet should always be equal and balanced.
Moreover, it always is prepared on the specified date.
The preparation of the receivable section is presented below:
Accounts Receivable $2,910
Other Receivables $189
Notes Receivable $1,353
Less: Allowance for Doubtful Accounts ($52)
Net receivables $4,400
Other considerations of _______________ are important such as services performed in the home raising children, but these are not included in GDP..
A social well-being
B. production of cars
C.production of oil
D. production of education services
Answer:
The correct answer is letter "A": social well-being .
Explanation:
Social well-being is the state in which a community is in regards to lifestyles, traditions, and beliefs. It represents how healthy individuals in a society are mentally and physically. It also influences on citizens' intellectual state. The methods parents use at home to raise their children can be directly associated with how good is a region well being. Though, this factor is not included at the moment of calculating the Gross Domestic Product (GDP) of a country.
A manufacturing process has a fixed cost of $250,000 per month. Each unit of product being produced contains $15 worth of material and $35 in labor. Each finished product will sell for $100. How many units must be sold each month to break even?
Answer:
500,000 units
Explanation:
BEP = fixed asset / CMR
CMR = contribution / sales
contribution = 100 - (15 +35)
= $50
CMR = $50 / $100
= 0.5
BEP = $250000/ 0.5
= 500,000 units
Southern Alliance Company needs to raise $45 million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 65 percent common stock, 5 percent preferred stock, and 30 percent debt. Flotation costs for issuing new common stock are 9 percent, for new preferred stock, 6 percent, and for new debt, 3 percent. The true initial cost figure Southern should use when evaluating its project is $.(Do not include the dollar sign ($). Do not round the weighted average floatation cost. Round your answer to the nearest whole dollar amount. (e.g., 32))
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
The argument that import restrictions save jobs and promote prosperity fails to recognize that:
a. there are no secondary effects of import restrictions.
b. import restrictions will lower prices in the protected industries.
c. import restrictions cannot create jobs in any industries.
d. U.S. imports provide people in other countries with the purchasing power required for the purchase of U.S. exports.
Answer:
The correct answer is letter "B": import restrictions will lower prices in the protected industries.
Explanation:
Import restrictions apply to specific tariff and non-tariff barriers levied by an importing nation to regulate the number of goods coming from other countries. This situation boosts domestic consumption in certain industries but the demand for those goods increases in quantity which causes the price of those products to drop.
Zimmerman, a real estate salesman, asked Robertson if she was interested in selling her property. Robertson said she might be. Zimmerman came to Robertson with an offer by Velten to buy the property. Both parties signed a contract for sale. Zimmerman told Robertson he was being paid a commission by Velten. Before the deal on the property was to close, Robertson asked for a copy of the agreement between Zimmerman and Velten, but they refused. Robertson refused to go through with the deal. Velten sued, claiming there was a valid contract. Robertson said that Zimmerman violated his fiduciary duty to her to disclose his interests. Is the deal valid?
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Don Wyatt is unable to reconcile the bank balance at January 31. Don Wyatt’s reconciliation is as follows. Cash balance per bank $3,560.20 Add: NSF check 490.00 Less: Bank service charge 25.00 Adjusted balance per bank $4,025.20 Cash balance per books $3,875.20 Less: Deposits in transit 530.00 Add: Outstanding checks 730.00 Adjusted balance per books $4,075.20(a) Prepare a correct bank reconciliation (b) Journalize the entries required by the reconciliation.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
a) Amount in $
Balance per bank statement 3,560.20
Deposit in transit 530.00
Outstanding check (730.00)
Bank charges 25.00
NSF Check 490.00
Book balance 3,875.20
b)
Debit Bank charge $25
Credit Cash account $25
Being entries to recognize bank charges for the period.
Explanation:
Considering the transaction, Deposit in transit has been recognized in the books and will thus be added to the balance per bank. The bank charge was deducted from the bank balance but is yet to be deducted from the book balance hence it is added back to the bank balance. The outstanding check has been deducted from the books hence the deduction from the bank. See the reconciliation below.
Amount in $
Balance per bank statement 3,560.20
Deposit in transit 530.00
Outstanding check (730.00)
Bank charges 25.00
NSF Check 490.00
Book balance 3,875.20
b) The entries required is the recognition of the bank charge in the books
Debit Bank charge $25
Credit Cash account $25
Being entries to recognize bank charges for the period.
Which of the following is true of viral marketing? It is the Internet version of word-of-mouth marketing. It refers to problems that occur with viruses in the online marketing process. It is another term for invasions of online privacy. It is an automated system that manages the sales and marketing functions. It is a system that allows a supplier to access a customer's inventory levels online.
Answer:
Viral marketing is the Internet version of word-of-mouth marketing.
Explanation:
Viral Marketing is a term that can be best understood by considering the way a virus spreads continuously from one person to another and then to others.
Viral Marketing entails the use of social media and other digital platforms or the internet to spread information.
It involves people coming in contact with an organization's marketing message and then sharing it with others who also share it with other people till it "goes viral".
Maldovar Company is considering purchasing a new machine to replace a machine purchased one year ago that is not achieving the expected results. The following information is available:
Expected maintenance costs of new machine $ 12,000 per year
Purchase price of existing machine $150,000
Expected cost savings of new machine $ 20,000 per year
Expected maintenance costs of existing machine $ 8,000 per year
Resale value of existing machine $ 35,000
Which of these items is IRRELEVANT?
a. Expected maintenance costs of new machine
b. Expected maintenance costs of existing machine
c. Purchase cost of existing machine
d. Expected resale value of existing machine
Answer:
c. Purchase cost of existing machine
Explanation:
Relevant costs are the incremental costs that can be avoided by avoiding the functional activity with which the costs are associated.
Maintenance costs are relevant as they are directly linked to the use of machinery and as such are incremental with the use. The same is the case with the maintenance costs of the existing machine as they are avoidable if the new machine is purchased.
Expected cost savings would be incremental with the improved new machine. These cost savings thus are relevant.
Resale value of existing machine are also relevant as these would contribute towards the purchase of new machine.
The purchase price of existing machine is irrelevant as the machine cost has already been paid and regardless of purchasing the new machine or not, this cost is not a part of any calculations.
Hope that helps.
Final answer:
The purchase cost of the existing machine is a sunk cost and therefore irrelevant to the decision of whether to purchase a new machine for Maldovar Company. The relevant costs to consider are those that impact future cash flows, such as maintenance costs and resale value.
Explanation:
In evaluating whether to replace an existing machine, certain financial factors must be considered to determine the relevant costs and benefits. When analyzing the information provided for the Maldovar Company's decision to purchase a new machine, it's important to distinguish between relevant and irrelevant costs. The relevant costs are the expected maintenance costs of both machines, the expected cost savings of the new machine, and the resale value of the existing machine, as these will impact the future cash flows of the company.
The purchase cost of the existing machine is considered a sunk cost, meaning it has already been incurred and cannot be recovered. The sunk cost is therefore irrelevant to the decision-making process because it will not affect the future costs or revenues associated with the new machine. This makes option c. Purchase cost of existing machine the correct answer as it has no bearing on the decision about whether to purchase the new machine.
Sandusky Inc. has the following costs when producing 100,000 units: Variable costs $600,000 Fixed costs 900,000 An outside supplier is interested in producing the item for Sandusky. If the item is produced outside, Sandusky could use the released production facilities to make another item that would generate $150,000 of net income. At what unit price would Sandusky accept the outside supplier's offer if Sandusky wanted to increase net income by $120,000?
Answer:
$6.30
Explanation:
For computing the unit price, first we have to determine the difference in cost which is shown below:
= $150,000 - $120,000
= $30,000
Now the break even price would be
= Variable cost + cost difference
= $600,000 + $30,000
= $630,000
So, the unit price would be
= Break even price ÷ number of unit produced
= $630,000 ÷ 100,000 units
= $6.30
A management that wanted to increase the financial leverage of its firm would: raise additional capital by selling fixed interest rate long-term bonds. raise additional capital by selling common stock. use excess cash to purchase preferred stock for the treasury. try to increase its ROI by increasing asset turnover.
Answer: Raise additional capital by selling fixed Interest rate long term bonds
Explanation:
A firm can finance it's operations through equity or debts, the art of a firm financing it's operations through debts like bonds etc it's refered to as financial leverage.
A firm cannot increase it's financial leverage by selling common stock, neither through buying stock from his cash and financial leverage does relate with asset turnover.
Maxim manufactures a hamster food product called Green Health. Maxim currently has 19,000 bags of Green Health on hand. The variable production costs per bag are $3.20 and total fixed costs are $24,000. The hamster food can be sold as it is for $11.00 per bag or be processed further into Premium Green and Green Deluxe at an additional cost. The additional processing will yield 19,000 bags of Premium Green and 4400 bags of Green Deluxe, which can be sold for $10 and $8 per bag, respectively. Assuming Maxim further processes Green Health further into Premium Green and Green Deluxe, revenue from the two products would be:
Answer:
$225,200
Explanation:
Revenue from the two products would be:
= Green health + Hamster food
= (Unit sales × selling price per unit) + (Unit sales × selling price per unit)
= (19,000 × $10) + (4,400 × $8)
= $190,000 + $35,200
= $225,200
Therefore, Assuming Maxim further processes Green Health further into Premium Green and Green Deluxe, revenue from the two products would be $225,200.
You are considering buying a company using leveraged buyout. The company is projected to have sales of 500 million each year in the three years after buyout. The cost of sales and other administrative expenses are 60% of the sale. Depreciation and amortization are 5% of the sale. Tax rate is 40%. Suppose that the change in net working capital and capital expenditure each year is zero. If you borrow 1.5 billion at interest rate of 8% per year, and you use all the cash flow to repay debt.
What is the net income in the first year after the buyout?
Answer:
Net income= $33 million
Explanation:
A leveraged buyout is a buyout of an entity by it's own managers/board members mostly through debt financing. Now the expected sales after the buyout is 500 million, we are asked to calculate net income only in the first year. First of all lets see what net income is. Net income is the remaining amount of income after having paid all the expenses which is mostly the residual income available for either distribution to shareholders or transfer to retained earnings.
The formula for net income is as follows:
Net income/profit= Sales revenue - COGS - Administrative expenses- depreciation and amortization - Interest expense - Tax
Let first calculate COGS & other administrative expense, depreciation and interest expenses first.
COGS & ADMIN: 500*0.6=300 m
Depreciation: 500*0.05 =25m
Interest expense for the year: 1500 * 0.08= 120m
Now lets substitute values in the formula mentioned above:
Income before taxes: 500m - 300m - 25m - 120m
Income before taxes: 55m
Income after taxes; 55m - 22m (taxes= 55*40%)
Net income= $33 million
Everly Corporation acquires a coal mine at a cost of $400,000. Intangible development costs total $100,000. After extraction has occurred, Everly must restore the property (estimated fair value of the obligation is $80,000), after which it can be sold for $160,000. Everly estimates that 4,000 tons of coal can be extracted.
If 700 tons are extracted the first year, prepare the journal entry to record depletion. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
Explanation:
The journal entry is shown below:
Inventory A/c Dr $73,500
To Accumulated depletion A/c $73,500
(Being the depletion is recorded)
The computation is shown below
First we have to compute the depletion per ton which is shown below:
= (Acquired cost of coal mine + Intangible development costs + fair value of the obligation - Sale value) ÷ (Number of estimated tons of coal extracted)
= ($400,000 + $100,000 + $80,000 - $160,000) ÷ (4,000 tons)
= $105
Now if 700 are extracted in first year, so the depletion would be
= 700 × $105
= $73,500
Nathan buys several shares of ABC Corp. stock for $60 each. At the end of one year, the stock price has risen to $66. Plus he was paid a dividend of $1.50 per share. What is the approximate rate of return (or yield) on this investment for the year. (You can ignore any commissions or taxes.) Remember: the rate of return is the total return as a percentage of your initial investment.
Answer:
rate of return = 12.50%
Explanation:
given data
stock = $60 each
stock price = $66
paid dividend = $1.50 per share
to find out
rate of return
solution
first we get here total return that is express as
total return = stock price - stock + paid dividend .................1
total return = $66 - $60 + $1.5
total return = $7.5
so now rate of return will be here as
rate of return = [tex]\frac{total\ return}{stock}[/tex]
rate of return = [tex]\frac{7.5}{60}[/tex] × 100
rate of return = 12.50%
The Great Giant Corp. has a management contract with its newly hired president. The contract requires a lump sum payment of $24,800,000 be paid to the president upon the completion of her first 9 years of service. The company wants to set aside an equal amount of funds each year to cover this anticipated cash outflow. The company can earn 8 percent on these funds. How much must the company set aside each year for this purpose?
Answer:
The company must set aside $1,985,976.79 each year for this purpose
Explanation:
Data provided in the question:
Required payment = $24,800,000
Time = 9 years
Interest rate = 8% = 0.08
Now,
Required payment = A × [( ( 1+ r )ⁿ - 1) ÷ r ]
Here,
A is the amount required to be set aside each year
Therefore,
$24,800,000 = A × [( ( 1+ 0.08 )⁹ - 1) ÷ 0.08 ]
or
$24,800,000 = A × 12.48755
or
A = $1,985,976.79
Hence,
The company must set aside $1,985,976.79 each year for this purpose
3. A property that produces a first year NOI of $80,000 is purchased for $750,000. The NOI is expected to increase by 15% in the sixth year when some of the leases turnover. The resale price in year 10 is expected to be $830,000. What is the net present value of the property based on the 10-year holding period and a discount rate of 9.5%? (D)
Answer:
Net Present Value (NPV) = $ 115,998
Explanation:
Calculation of the Net Present Value
Net Present Value = Cash Inflows - Cash Outflows
NOI from 6th year = 80,000*115% = 92,000
NPV = 80000 (PVAF, 5 year) + 92,000 (PVAF, (105), 9.5%) + 830,000/(1.095)10 - 750,000
NPV = (80,000 x 3.839) + (92,000 x 2.439) + (830,000 x 0.403) - 750,000
= 307,120 + 224,388 + 334,490 - 750,000
The Net Present Value will be $ 115998
The net present value of the property is approximately $95,235.12.
Explanation:To calculate the net present value (NPV) of the property, we need to discount the cash flows from the property at the given discount rate. The formula to calculate NPV is:
NPV = CF0 + Σ(CFt / (1+r)t) - C0
In this case, CF0 is the initial purchase price (-$750,000), CFt is the expected cash flow in year t, r is the discount rate (0.095), and C0 is the expected resale price in year 10 (+$830,000). We need to calculate the present value of each year's cash flow and then sum them up to find the NPV.
The cash flows for each year can be calculated as follows:
Year 1: $80,000 (no discounting needed)Year 2-5: $80,000 × (1+0.15)t-1Year 6-9: $80,000 × (1+0.15)t-1 × (1+0.155)Year 10: $830,000 × (1+0.15)10Substituting these values into the formula and summing up the discounted cash flows, the net present value of the property is approximately $95,235.12.
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Which core ethical value are you violating if you hide information from your team about an impending budget cut?a. Trustworthiness b. Respect c. Justice and fairness d. Caring
The core value that you are violating if you hide information from your team about impending budget cut is : a. Trustworthiness
Not saying anything or not saying the whole thing to your co-workers and friends are considering hiding the truth from them and almost similar to lying. This will test how trust worthy you are. If you cannot trust them with any issues, you can expect for them not to trust you too which is not a healthy mindset and relationship in work.
Record the following transactions for Sparky’s Pet Shop. Date Transaction August 1 Purchased $6,000 of merchandise on account, terms 2/10, n/30. 3 Returned $1,500 of merchandise purchased on August 1 due to defects. 7 Recorded cash sales for the first week of August, $9,750; cost of the merchandise was $4,000. 10 Made sale on account to a local breeder for $500, terms 1/10 net 30; cost of the merchandise was $200. 11 Paid for the merchandise purchased on August 1, less return. 20 Received payment from sale of August 10.
The transactions listed are common retail transactions that include purchases, sales (cash and credit), merchandise returns, and receipts of payment. Each transaction has specific impacts on Sparky's Pet Shop's financial position in terms of cash, merchandise inventory, accounts payable, and accounts receivable.
Explanation:The first transaction was a purchase on account from a supplier for $6,000 of merchandise with terms 2/10, n/30. This means Sparky's Pet Shop can take a 2% discount if they pay within 10 days but the full amount is due within 30 days.
On August 3, Sparky's Pet Shop returned $1,500 of defective merchandise. So, the new amount due to the supplier is $4,500 ($6,000-$1,500).
On August 7, the store recorded cash sales of $9,750, this increased the cash balance and decreased the inventory by the merchandise cost of $4,000.
On August 10, they sold items on account to a local breeder for $500 on credit, terms 1/10 n/30 with a cost of $200.
On August 11, payment was made for the merchandise purchased on August 1, the amount that was paid is $4,500 which is the total cost of purchase less the returns.
Finally, on August 20, they received payment from the sale made on August 10, this decreased accounts receivable by $500 and increased cash by $500.
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Gilberto Company currently manufactures 50,000 units per year of one of its crucial parts. Variable costs are $2.50 per unit, fixed costs related to making this part are $50,000 per year, and allocated fixed costs are $50,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.70 per unit guaranteed for a three-year period.Required:1. Calculate the total incremental cost of making 50,000 units.2. Calculate the total incremental cost of buying 50,000 units.
Answer:
a. Incremental cost of making the part $
Variable cost (50,000 units x $2.50) = 125,000
Attributable fixed cost = 50,000
Incremental cost 175,000
b. Incremental cost of buying the part from outside
= 50,000 units x $3.70
= $185,000
Explanation: The incremental cost of making the part is the total relevant cost of production, which involves variable cost and attributable fixed cost.
The incremental cost of buying the component refers to cost of buying the part from outside.
On June 30, 2018, the High Five Surfboard Company had outstanding accounts receivable of $600,000. On July 1, 2018, the company borrowed $450,000 from the Equitable Finance Corporation and signed a promissory note.
Interest at 10% is payable monthly. The company assigned specific receivables totaling $600,000 as collateral for the loan. Equitable Finance charges a finance fee equal to 1.8% of the accounts receivable assigned.Required:
Prepare the journal entry to record the borrowing on the books of High Five Surfboard. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
The Journal entry is as follows:
On July 1,
Cash A/c Dr. $439,200
Finance charge Expense A/c Dr. $10,800
To Financing arrangement A/c $450,000
(To record the amount of borrowings)
Workings:
Finance charge expense = ($600,000 × 1.8%)
= $10,800
So, cash account = $450,000 - $10,800
= $439,200
The correct journal entry to record the borrowing on the books of High Five Surfboard Company is as follows:
Cash 600,000 Finance Fee Expense (1.8% of $600,000) 10,800 Interest Expense (10% of $450,000 for one month) 3,750 Discount on Notes Payable 10,800 Notes Payable 450,000
To record the borrowing of $450,000 with interest at 10% and a finance fee of 1.8% on assigned accounts receivable totaling $600,000.
1. High Five Surfboard Company borrowed $450,000 from Equitable Finance Corporation, which is recorded as an increase in Cash and a corresponding increase in Notes Payable.
2. The company is required to pay interest at 10% on the loan. Since the interest is payable monthly, we calculate the interest for one month as 10% of $450,000, which is $45,000 annually. For one month, the interest expense is $45,000/12 = $3,750. This is recorded as an expense (Interest Expense) and a decrease in Cash.
3. Equitable Finance charges a finance fee equal to 1.8% of the accounts receivable assigned as collateral for the loan. The accounts receivable assigned total $600,000, so the finance fee is 1.8% of $600,000, which is $10,800. This finance fee is recorded as an expense (Finance Fee Expense) and a decrease in Cash.
4. However, the finance fee is offset by a Discount on Notes Payable, which represents the amount by which the face value of the note is reduced due to the finance fee. This means that although the finance fee is an expense, it does not result in an outflow of cash because it is subtracted from the amount borrowed. Therefore, the Discount on Notes Payable is credited for $10,800, which effectively reduces the Notes Payable to the amount actually received in cash ($450,000 - $10,800 = $439,200).
5. The net effect of the transaction is that High Five Surfboard Company receives $600,000 in cash ($450,000 from the loan and $150,000 from the assignment of accounts receivable), pays $10,800 in finance fees (which does not affect cash because it is offset by the discount on the note), and accrues $3,750 in interest expense for the first month.
6. The journal entry reflects the increase in Cash by $600,000, the recognition of Finance Fee Expense and Interest Expense, and the increase in Notes Payable by $450,000, net of the Discount on Notes Payable of $10,800.
If Roten Rooters, Inc., has an equity multiplier of 1.27, total asset turnover of 2.10, and a profit margin of 6.1 percent, what is its ROE?
Answer:
16.27%
Explanation:
Given that,
Equity multiplier = 1.27
Total asset turnover = 2.10
Profit margin = 6.1 percent
Here, the return on equity is calculated by multiplying profit margin, asset turnover and equity multiplier.
Return On Equity:
= (Profit margin) × (Asset turnover) × (Equity multiplier)
= (0.061) × (2.10) × (1.27)
= 0.1627
= 16.27%
Roten Rooters, Inc., with an Equity Multiplier of 1.27, a Total Asset Turnover of 2.10, and a Profit Margin of 6.1%, would have an ROE of approximately 16.35%.
Explanation:In Business, Return on Equity(ROE) is a measure of a company's profitability which can be calculated by multiplying the Equity Multiplier, Total Asset Turnover, and Profit Margin. In this case, for a company named Roten Rooters, Inc., with an Equity Multiplier of 1.27, a Total Asset Turnover of 2.10, and a Profit Margin of 6.1 percent, the ROE can be calculated as follows:
ROE = Equity Multiplier x Total Asset Turnover x Profit margin
Therefore, ROE = 1.27 x 2.10 x (6.1/100) = 0.16347 or approximately 16.35%.
This ROE value means that Roten Rooters, Inc., generated a return of approximately 16.35% on its equity during the period in question.
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Jones Industries received $800,000 from issuing shares of its common stock and $700,000 from issuing bonds. During the year, Jones Industries also paid dividends of $90,000. How are the effects of these transactions reported on the statement of cash flows? Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
What are unsought goods?
Answer:
Unsought goods are goods that are not in demand either because consumers are not aware of them, or because they do not see an immediate need for them.
Explanation:
There are certain goods that consumers are not aware of and as such, are not interested in purchasing. These goods are called unsought goods. New products just entering the market are examples of unsought goods and awareness for such products can be generated through advertising and extensive marketing.
In some cases, consumers are aware of unsought goods but are not interested in buying them at the moment as they do not have immediate benefits. An example of such is accident insurance.
4. A coffee maker vendor has set up two coffee machines, Machine 1 and Machine 2, inside an organization. The service cost incurred on Machine 1 and Machine 2 is $100 and $80, respectively. The production cost of coffee is $2 per mug for Machine 1 and $3 per mug for Machine 2. There is no service provided by the vendor on Sundays. The weekly production capacity is 1000 mugs for Machine 1 and 1200 mugs for Machine 2, and thereafter the machine needs to be serviced before any extra mug of coffee is to be served. Due to Christmas, the employee attendance at the organization is going to be low and only one machine has to be used to serve at least 800 mugs of coffee in that week in order to minimize the total cost. Formulate an integer programming model
Answer:
An example of a linear (integer) programming problem
Explanation:
We infer the following:
Let the number of mugs produced by machine 1 be represented by X,
Since only one machine is to be used in the week of Christmas, this constraints should apply for machine-1;
Constraints
Production cost≤ $2,
Service Incurred cost≤$100,
Production capacity (excluding sunday) ≥ 800 mugs served,
Objective Function
Minimise cost: XService cost + XProduction cost
Minimise: 100x + 20x
Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip: Setup labor cost $25 per hour Annual holding cost $13 per unit Daily production 960 units/8 hour day Annual demand 23,000 (250 days eachtimes×daily demand of 92 units) Desired lot size 120 units (one hour of production)
To obtain the desired lot size, the set-up time that should be achieved = ___ minutes.
Answer:
0.1472 hours or 8.832 minutes
Explanation:
Annual demand- 23,000 units
Daily demand – 92 units
Daily production – 960 units per 8 hour day
Desired lot size - 120 units
Holding cost per unit per year - $13 per unit
Set up labor cost per hour - $25 per hour
Set up cost:
= {(120 × 120) × $13 × [1 - (92 ÷ 960)]} ÷ [2 × (23,000) ]
= $169,260 ÷ 46,000
= $3.68
Set up time:
= Set up cost ÷ Set up labor cost per hour
= $3.68 ÷ $25 per hour
= 0.1472 hours or 8.832 minutes
To achieve the desired lot size of 120 units in Carol Cagle's manufacturing plant, the setup time should be 60 minutes.
Explanation:Considering the desired lot size, which is 120 units, for a daily production of 960 units in an 8-hour shift, production time for a unit must be calculated first.
Production time for a unit is the total time available divided by the total units produced. In this case, it's 8 hours (or 480 minutes) divided by 960 units, which gives 0.5 minutes per unit. Therefore, to produce a lot size of 120 units, 120 units would require 0.5 minutes/unit x 120 units = 60 minutes of setup time. So, the required setup time for the desired lot size should be 60 minutes.
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Chang Corporation issued $6,000,000 of 9%, ten-year convertible bonds on July 1,2017 at 96.1 plus accrued interest. The bonds were dated April 1, 2017 with interestpayable April 1 and October 1. Bond discount is amortized semiannually on astraight-line basis. On April 1, 2018, $1,200,000 of these bonds were converted into500 shares of $20 par value common stock. Accrued interest was paid in cash at thetime of conversion.
What should be the amount of the unamortized bond discounton April 1, 2018 relating to the bonds converted?
A. $46,800.
B. $43,200.
C. $23,400.
D. $44,400.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Assume that the marginal social benefit of the last unit of vaccination provided is greater than the marginal social cost. Which of the following can be used to achieve efficiency in the market for vaccination?Select the correct answer below:a. A per-unit subsidy for vaccinationsb. A lump-sum tax for vaccinationsc. A price ceiling for vaccinationsd. A per-unit tax on vaccinations
Answer:
The correct answer is letter "A": A per-unit subsidy for vaccinations.
Explanation:
A unit subsidy is a certain amount per unit produced given to the manufacturer. This type of subsidy will downturn the supply curve because of the amount of the subsidy. Typically, this is done to decrease the price level and increase the output quantity.
In that case, by creating more output for the vaccinations the marginal cost will be higher which reaches the marginal benefit at a certain point provoking market efficiency for the vaccinations.
Final answer:
A per-unit subsidy for vaccinations is the policy that can be used to achieve efficiency in the vaccination market when MSB exceeds MSC, as it bridges the gap between the market equilibrium and the socially desirable level of output.
Explanation:
To achieve efficiency in the market for vaccination when the marginal social benefit (MSB) of the last unit of vaccination provided is greater than the marginal social cost (MSC), the government can provide a per-unit subsidy for vaccinations.
This subsidy acts like a voucher that consumers can use as 'income' to purchase vaccinations. With this financial assistance, the supply and demand in the market adjusts so that the equilibrium quantity of vaccinations, Qsocial, corresponds to the point where MSB equals MSC. At this point, the market produces the socially optimal quantity of vaccinations.
Thus, the answer to the question is: a. A per-unit subsidy for vaccinations. Suppliers would receive payment of Psocial per vaccination, and consumers would use the voucher to pay a lower price of Psubsidy. The end result is an increase in vaccinations to a level that achieves social efficiency by ensuring that the marginal social benefit of vaccinations equals the marginal social cost.
Company X wants to borrow $10,000,000 floating for 5 years. Company Y wants to borrow $10,000,000 fixed for 5 years. Their external borrowing opportunities are; Fixed-Rate Floating-Rate Borrowing Cost Borrowing CostCompany X10% LIBOR Company Y12% LIBOR + 1.5% Design a mutually beneficial interest only swap for X and Y with a notational principal of $10 million by having appropriate values for;A = Company X's external borrowing rateB = Company Y's payment to X (rate)C = Company X's payment to Y (rate)D = Company Y's external borrowing rate
Answer:
The answer is:
10% fixed rate = Company X's external borrowing (rate);
11.8% fixed rate = Company Y's payment to X (rate);
LIBOR + 1.5% = Company X's payment to Y (rate);
LIBOR + 1.5% = Company Y's external borrowing rate.
Explanation:
First, X will borrow at 10% fixed and Y will borrow at LIBOR + 1.5% floating; both at notational principal of $10 million.
Then; they will enter into a interest swap where:
- X will pay to the swap the interest rate of Libor +1.5% and receive from the swap the fixed interest rate of 11.8%. Thus, X interest income and interest expenses will be: Borrowed at fixed 10% and payment at Libor+1.5% to the swap; Receipt of 11.8% from the Swap=> Net effect: X borrowed at LIBOR - 0.3% ( saving of 0.3%).
- Y will pay to the swap the fixed interest rate 11.8% and receive from the swap LIBOR +1.5%. Thus, Y interest income and interest expenses will be: Borrowed at LIBOR +1.5 and payment 11.8% fixed to the swap; Receipt of Libor + 1.5% from Bthe Swap=> Net effect: Y borrowed at 11.8% fixed ( saving of 0.2%).
Sheffield Corp. maintains its accounting records using IFRS. The company recently signed a lease for a new office building, for a lease period of 9 years. Under the lease agreement, a security deposit of $44000 is made, with the deposit to be returned at the expiration of the lease, with interest compounded at 8% per year. What amount will the company receive at the time the lease expires?
Answer:$75,680
Explanation:8% of 44000=3,520. For 9years= 3520×9=31680. Total money at the end= principal+interest= 44000+31680=75680
In 2018, CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 2017, CPS's inventories were $32 million (FIFO). CPS's records indicated that the inventories would have totaled $23.8 million at December 31, 2017, if determined on an average cost basis.
Prepare the journal entry to record the adjustment. (Ignore income taxes.) (Enter your answers in millions (i.e., 5,500,000 should be entered as 5.5). Round your answers to 1 decimal place. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Dr Retained earnings $8.2
Cr Inventory $8.2
Explanation:
By changing method of an inventory valuation, the company should apply it retrospectively based on IAS 8 guidelines on change in accounting estimates and errors. Thus, the said difference from FIFO method to Weighted Average method of valuation should be credited directly against Retained earnings account because, accounts are already closed right after the year ended.
$32-$23.8= $8.2 million
To record the said adjustment you have to
Debit Retained earnings and credit Inventory in the amount of $8.2 million.