The current price of Bond M can be calculated by finding the present value of each cash flow using the required return rate, and then summing them up. The current price of Bond N is equal to its face value.
Explanation:To calculate the price of Bond M, we need to calculate the present value of each cash flow and sum them up. The cash flows consist of no payments for the first six years, $900 every six months for the next eight years, and $1,300 every six months for the last six years. We discount each cash flow using the required return rate, which is 5.4% compounded semiannually.
Calculating the present value of no payments for the first six years:PV = 0 (since there are no cash flows)Calculating the present value of $900 every six months for the next eight years:Number of periods = 8 (16 semiannual periods)Required return rate = 5.4% (0.054/2)PV = $900 * ((1 - (1 + 0.054/2)^(-16)) / (0.054/2))Calculating the present value of $1,300 every six months for the last six years:Number of periods = 6 (12 semiannual periods)Required return rate = 5.4% (0.054/2)PV = $1,300 * ((1 - (1 + 0.054/2)^(-12)) / (0.054/2))Summing up all the present values:Current price of Bond M = PV(no payments) + PV($900 payments) + PV($1,300 payments)To calculate the price of Bond N, since it makes no coupon payments over the life of the bond, its price is equal to its face value. Therefore, the current price of Bond N is $20,000.
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Alpha Company makes all its sales on account. The accounts receivable payment experience is as follows: Percent paid in the month of sale 35% Percent paid in the month after the sale 54% Percent paid in the second month after the sale 6% Alpha provided the following information on sales: May $150,000 June $125,000 July $136,000 August (expected) $142,000 How much of June's credit sales is expected to be collected in the month of July
Answer:
$67,500
Explanation:
Data provided as per the requirement of expected cash collection in July is shown below:-
June sales = $125,000
Percent paid in the month after the sale = 54%
The computation of expected cash collection in July is shown below:-
Expected cash collection in July = June sales × Percent paid in the month after the sale
= $125,000 × 54%
= $67,500
Therefore for computing the expected cash collection in July we simply applied the above formula.
Construct profit diagrams or profit tables on expiration to show what position in IBM puts, calls and/or underlying stock best expresses the investor’s objectives described below. Assume IBM currently sells for $150 so that profit diagrams/ tables between $100 and $200 (in $10 increments) are appropriate. Also assume that "at the money" puts and calls cost $15 each. (As usual, the profit calculations ignore dividends and interest.)
(a) An investor wants upside potential if IBM increases but wants (net) losses no greater than $15 if prices decline.
(b) An investor wants to capture prots if IBM declines in price but wants a guaranteed limited loss if prices increase.
(c) An investor wants to capture prots if IBM declines in price and is ready to accept unlimited losses if prices increase. Further, the investor wants to break even if the stock price does not change between now and the maturity of the options.
(d) An investor wants to prot if IBM's upcoming earnings announcement is either unexpectedly good or disappointingly bad.
Answer:
Check the explanation
Explanation:
Kindly check the attached images below to see the step by step explanation to the question above.
Dapple Company incurred the following costs while producing 480 units: direct materials, $ 13 per unit; direct labor, $ 26 per unit; variable manufacturing overhead, $ 16 per unit; total fixed manufacturing overhead costs, $ 7 comma 680; variable selling and administrative costs, $ 2 per unit; total fixed selling and administrative costs, $ 4 comma 320. There are no beginning inventories. What is the operating income using variable costing if 430 units are sold for $ 160 each?
Answer:
Operating Income $32290
Explanation:
The difference between the variable and absorption costing is that the fixed costs are treated as period costs in variable costing and as product costs in absorptioon costing. In variable costing all variable costs are treated as product costs.
Dapple Company
Income Statement
Variable Costing
Sales 430 units* $ 160 $ 68,800
Less
Variable Cost OF Goods Sold ( 23650)
Direct materials, $ 13 per unit * 430 5590
Direct labor, $ 26 per unit *430 11180
Variable Manufacturing
Overhead, $ 16 per unit *430 6880
Less
Variable selling and
Administrative costs, $ 2 per unit *430 (860)
Contribution Margin 44290
Less
Total Fixed Manufacturing overhead costs, $ 7, 680;
Total Fixed selling and administrative costs, $ 4,320
Operating Income $32290
The operating income using variable costing is calculated as the contribution margin ($44,290) minus the total fixed costs ($12,000), resulting in an operating income of $32,290.
To calculate the operating income using variable costing, we first need to determine the total variable costs at the production level and then calculate the contribution margin from the sales of 430 units. Next, we subtract the total fixed manufacturing and selling costs from the total contribution margin to find the operating income.
Total variable costs per unit = Direct materials + Direct labor + Variable manufacturing overhead + Variable selling and administrative costs
Total variable costs per unit = $13 + $26 + $16 + $2
Total variable costs per unit = $57
Total variable production costs for 480 units = $57 * 480
Total variable production costs for 480 units = $27,360
Sales revenue = $160 * 430
Sales revenue = $68,800
Total variable costs for units sold = $57 * 430
Total variable costs for units sold = $24,510
Contribution margin = Sales revenue - Total variable costs for units sold
Contribution margin = $68,800 - $24,510
Contribution margin = $44,290
Total fixed costs = Fixed manufacturing overhead + Fixed selling and administrative costs
Total fixed costs = $7,680 + $4,320
Total fixed costs = $12,000
Operating income = Contribution margin - Total fixed costs
Operating income = $44,290 - $12,000
Operating income = $32,290
The operating income using variable costing is $32,290.
You are the HR manager at FoodFaire, a local grocery store. Your clerks belong to the United Food and Commercial Workers International Union, which has threatened a strike in 11 days unless their demands are met. They are asking for a 12% raise, and you can offer them only 4%. You can almost feel the hours ticking by—this is a critically important negotiation, and neither party really wants the strike.The _________ conflict-handling technique is most appropriate in this situation.A) avoidingB) compromising C) accommodating D) collaborating E) dominating
Answer:
B) compromising
Explanation:
According to the scenario,
The compromising conflict-handling technique is most appropriate in this situation. As they are asking for a raise of 12%, in this situation HR manager calls the meeting of workers and gives the chance to put their point on their demands. Try to understand their problem and the reason behind their demands. At that point Hr manager wholly examine the situation and try to negotiate with raise of 12% of their demands. So they are ready to do the work with that negotiable price. So this reflects the compromising situation
According to the situation, option (B) compromising conflict-handling technique is correct.
a. Calculate the reserve requirement. b. Assume that Rey withdraws $5,000 in cash from her checking account at Solo Bank. i. By how much will Solo Bank’s reserves change based on Rey’s withdrawal? ii. What is the initial effect of the withdrawal on the M1 measure of money supply? Explain. iii. Calculate the new value of excess reserves on the balance sheet of Solo Bank after the withdrawal based on the reserve requirement from part
Answer and Explanation:
(a) Reserve requirement
10%[ RR of $10,000 is 10% of DD of $100,000]
(b)
i All ER [of $5,000] would disappear and they would have only the RR of $10,000.
iiThe M1 MS would not change and the MS
will includes currency and DD of the public.
The $5,000 Luis withdrew [currency] is still M1.
iii When Luis withdrew $5,000, that simply means that RR was now $9,500.
Hence RR will be decrease by $500 and the remainder of the $5,000 withdrawal was taken from excess leaving only 500 currently in ER.
C.They can borrow from another bank which is either from Fed Funds Rate or from the Fed Discount Rate.
Place in order the events in the evolution of the Solow growth model. Start by clicking the first item in the sequence or dragging it here The Solow growth model was developed in 1956. The Solow model was applied to many African nations that had just gained independence. Real-world observations caused economists to revisit the Solow growth model. Growth policies failed; nations that had received international aid were no better off.
The Solow growth model, first developed in 1956 and applied to newly independent African countries, encountered setbacks when these nations failed to economically improve despite international aid. The model was revisited, highlighting the importance of the Industrial Revolution and technological advancements for modern economic growth. Countries in East Asia like South Korea, Japan, and China have demonstrated rapid economic growth by employing market-oriented reforms and investing in technology and education.
Explanation:The Solow growth model details the long-term economic growth experienced by different countries. This model, developed in 1956, was first applied to countries in Africa that had recently gained independence. However, despite assistance from international aid, growth policies failed, leaving these nations no better off economically. This caused economists to revisit the Solow economic growth model.
During their revisit, it was found that the Industrial Revolution and subsequent technological advancements were essential drivers of modern economic growth, increasing worker productivity and bolstering trade. This growth has been evidenced within the Western Europe and North American economies which consistently maintained an average growth rate of about 2% per year since the early 19th century.
In the last half-century, other regions, specifically East Asia, showcased their ability to rapidly catch up with the developed countries. Countries like South Korea, Japan, and China utilized market-oriented economic reforms, new technology, education, and substantial capital investment to bolster their economic growth.
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Coronado Company borrowed $1,018,620 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $2,005,300 note payable and an 11%, 4-year, $3,444,000 note payable. Compute the weighted-average interest rate used for interest capitalization purposes. (Round answer to 2 decimal places, e.g. 7.58%.)
Answer:
weighted-average interest rate =10.8%
Explanation:
The weighted average interest rate is the average interest rate of all of the Notes weighted using the nominal value of the notes.
Total nominal value = 1,018,620 + 2,005,300 + $3,444,000 = 6,467,920.
Weighted average interest rate
= (1,018,620× 12%) + (10%×2,005,300)+(11%×3,444,000 )/6,467,920.
= 10.8%
weighted-average interest rate =10.8%
On December 31, Strike Company traded in one of its batting cages for another one that has a cost of $538,160. Strike receives a trade-in allowance of $31,185. The old equipment had an initial cost of $231,000 and has accumulated depreciation of $196,350. Depreciation has been recorded up to the end of the year. The difference will be paid in cash. What is the amount of the gain or loss on this transaction?
Answer:
Loss of $3,465
Explanation:
the journal entry to record the exchange should be:
Dr Batting cage - new 538,160
Dr Accumulated depreciation - batting cage old 196,350
Dr Loss on exchange 3,465
Cr Cash 506,975
Cr Batting cage old - 231,000
the carrying value of the old batting cage was = $231,000 - $196,350 = $34,650, but it was exchanged at $31,185, which results in a $3,465 loss (= $34,650 - $31,185).
_____ are designed to draw data in real time from various sources, including corporate databases and spreadsheets, so decision makers can make use of up-to-the-minute data. Select one: a. Tactical dashboards b. Operational dashboards c. Strategic dashboards d. Analytical dashboards
Answer: (B) Operational dashboard
Explanation:
The operational dashboard is one of the type of reporting device which is typically used to monitoring the various types of business process and tracking the performance or daily progress in an organization that include spreadsheet and the corporate database.
The main purpose of the operational dashboard is to overview and monitoring the database process in an organization on daily basis and the operational database is basically design to draw the information in real time with the helps of different types of sources.
The main advantage of the operational database is that it helps in making effective decisions in an organization. Therefore, Operational dashboard is the correct answer.
Samuel slips on an icy spot in front of an apartment and is hospitalized for three weeks. The owner of the apartment pays Samuel $14,000 for medical expenses and gives him $4,000 for his pain and suffering. Samuel receives his regular $1,800 salary from his employer while he couldn't work and also receives $7,000 in disability pay from a plan that he had purchased. Samuel's gross income from these payments is: a. $-0-. b. $1,800. c. $2,500. d. $5,800. e. $8,800.
Answer:
B) $1,800.
Explanation:
$14,000 in medical expenses are not part of Samuel's gross income.
$7,000 in disability payments are not included in Samuel's gross income because he paid the premiums.
$4,000 in pain and suffering compensation are not part of your gross income.
The only payments that are part of Samuel's gross income and therefore are taxed, are his regular monthly salary payments = $1,800. If Samuel's disability insurance premium had been paid by his employer, then the $7,000 would have been taxable.
The CEO of a heavy equipment manufacturing company suspects that a member of the company’s senior staff has been selling confidential information to a competitor. When asked to take a polygraph test by the CEO, the senior staff member becomes visibly upset and refuses to take the test. Which of the following is true of the given scenario? a. The CEO can fire the senior staff member for refusing to take the polygraph test. b. The senior staff member can face legal charges for refusing to take the polygraph test. c. The senior staff member cannot be fired for refusing to take the polygraph test. d. The senior staff member can sue the firm for illegally attempting to conduct the polygraph test.
Answer: c. The senior staff member cannot be fired for refusing to take the polygraph test.
Explanation: For refusing to take a polygraph test on the grounds of selling confidential business information to a competitor, the senior staff member cannot be fired. Under the Employee Polygraph Protection Act (EPPA) of 1988, private employers are prohibited from administering polygraph tests to their employees, to request results from the polygraph test, and also to or discharge, discipline, or discriminate against them for refusing to take the test whether for employment purposes or during the course of employment. However, there are exceptions for security firms and employees of the federal, state or local government agencies.
The board of directors of Testa Incorporated has decided that they would like to declare a $400,000 cash dividend at some point in the near future. The company currently has Retained Earnings of $2,419,000 and a Cash balance of $827,000. They also have current liabilities totaling $436,000. What is missing in order for Testa to be able to pay a cash dividend
Tesla is unable to pay a cash dividend because they have the serious problem of not having B : a healthy cash reserve
In order to pay dividends, a company needs to have a healthy cash reserve from which the dividends can be paid.
Tesla cash reserve:
= Cash balance - Current liabilities
= 827,000 - 436,000
= $391,000
This amount is less than the dividend amount of $400,000 which means that Tesla does not have a healthy cash reserve to pay dividends.
Options for this question include:
A : approval of the executives
B : a healthy cash reserve
C : approval of the investors
D : adequate Retained Earnings
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For purposes of allocating joint costs to joint products, the estimated net realizable value at split-off is equal to A. final sales price reduced by cost to complete after split-off. B. sales price less a normal profit margin at the point of sale C. separable product cost plus a normal profit margin. D. total sales value less joint costs at point of split-off.
Answer:
A. Final sales price reduced by cost to complete after split-off.
Explanation:
Net realizable value (NRV) is explained here to be the value of an asset that can be realized upon the sale of the asset, less a reasonable estimate of the costs associated with the eventual sale or disposal of the asset. It is a common method used to evaluate an asset's value for inventory accounting. NRV is a valuation method used in both Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
Many business transactions allow for judgment or discretion when choosing an accounting method.
A conservative approach means that the accountant should use the accounting method that generates less profit and does not overstate the value of assets.
Will give BRAINLIEST! Please read the question THEN answer correctly! No guessing.
Answer:
D
Explanation:
Since Sula is making her decision based on what would be environmentally friendly, she is being socially responsible, but not necessarily analyzing the other variables. Therefore, the answer is D. Hope this helps!
Lean Accounting The annual budgeted conversion costs for a lean cell are $180,000 for 1,000 production hours. Each unit produced by the cell requires 20 minutes of cell process time. During the month, 600 units are manufactured in the cell. The estimated materials costs are $30 per unit. (Do not round per unit cost. If required, round your answers to the nearest dollar.) Journalize the following entries for the month: a. Materials are purchased to produce 500 units. b. Conversion costs are applied to 600 units of production. c. The cell completes 450 units, which are placed into finished goods. If an amount box does not require an entry, leave it blank.
Answer:
Lean Accounting
General Journal
Sr. No Particulars Debit Credit
1. Materials $ 15000 Dr
Cash (Accounts Payable) $ 15000 Cr
500 units* $30 per unit = $15000
2. Conversion Costs $ 36000 Dr
Work In Process $ 36000Cr
One unit require 20 minutes
600 units require= 600*20= 12000 minutes
There are 60 minutes in 1 hour
12000/60 = 200 hours
600 units require 200 hours
1 hour costs $180
Conversion Costs for 600 units= ($ 180,000/1000)*200= $ 36000
3. Finished Goods 40500 Dr
Work in Process 40500 Cr
Materials for 450 units = $30 * 450= $ 13500
Conversion for 450 units = $ 180 *( 450*20/60) = 150*180= $27000
Total Cost of 450 units completed= $ 13500+ $ 27000= $ 40 500
Ellis Television makes and sells portable televisions. Each television regularly sells for $210. The following cost data per television is based on a full capacity of 10,000 televisions produced each period. A special order has been received by Ellis for a sale of 2,000 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $6 per television for shipping. Ellis is now selling 6,000 televisions through regular channels each period. What should be the minimum selling price per television in negotiating a price for this special order?
Question
Ellis Television makes and sells portable televisions. Each television regularly sells for $210. The following cost data per television is based on a full capacity of 10,000 televisions produced each period.
Direct material - $80
Direct Labour -$60
Manufacturing overhead(70% variable, 30% unavoidable fixed cos) -$40
A special order has been received by Ellis for a sale of 2,000 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $6 per television for shipping. Ellis is now selling 6,000 televisions through regular channels each period. What should be the minimum selling price per television in negotiating a price for this special order?
Answer:
The minimum selling price = $174.
Explanation:
The minimum selling price to be acceptable for the special order be the same as the relevant variable cost of producing a unit.
The relevant variable cost = marginal cost of a unit
Marginal cost = Direct material + Direct labour + Variable manufacturing overhead + shipping cost
Marginal cost = 80 + 60 + (70%× 40) + 6
= 174
The minimum selling price = $174.
Note : The 30% balance of manufacturing overhead which represents unavoidable fixed costs is irrelevant for this decision. These are costs that would be incurred either way whether or not the special order is accepted.
The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3.34 in 2014 (to $2.40 in 2015). Required: 1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Insignia Corporation for the year ended December 31, 2015 (amounts in billions). 2-a. Conduct a vertical analysis by expressing each line as a percentage of total revenues. 2-b. Excluding income tax and other operating costs, did Insignia earn more profit per dollar of revenue in 2015 compared to 2014?
Answer and Explanation:
As per the data given in the question,
1)
Insignia Corporation
Income Statements
For the year ended Dec-31
Change in
Particulars 2015 2014 Dollars %
Revenues 126 266 -140 -52.6%
Cost of crude oil and products 63 153 -90 -58.8%
Other operating costs 61 55 6 10.9%
Income before income tax expense 2 58 -56 -96.6%
Income tax expense 0 30 -30 -100.0%
Net income 2 28 -26 -92.9%
2-a)
Insignia Corporation
Income Statements
For the year ended Dec-31
2015 2014
Revenues 126 100.0% 266 100.0%
Cost of crude oil and products 63 50.0% 15.3 57.5%
Other operating costs 61 49.4% 55 20.7%
Income before income tax expense 2 1.6% 58 21.8%
Income tax expense 0 0.0% 30 11.3%
Net income 2 1.6% 28 10.5%
2-b)
No, Insignia earned $0.575 per dollar of revenue in 2015 but it earned only $0.500 per dollar of revenue in 2015.
The horizontal analysis involves comparing each line item of Insignia Corporation's income statement for 2015 with the one from 2014 in dollars and percentage. Vertical analysis is done by expressing each line item as a percentage of total revenues. To assess if Insignia earned more profit per dollar of revenue, compare the net income ratio to total revenues for both years.
Horizontal Analysis
To perform a horizontal analysis of Insignia Corporation's income statement for 2015, you would compare each line item to the equivalent line item from 2014. The change in dollars is found by subtracting the 2014 amount from the 2015 amount. The percentage change is found by dividing the change in dollars by the 2014 amount and multiplying by 100.
Vertical Analysis
In a vertical analysis, each line item on the income statement is expressed as a percentage of total revenues for the same year. To do this, divide the amount of each line item by the total revenues and then multiply by 100.
Whether Insignia earned more profit per dollar of revenue in 2015 compared to 2014 can be determined by comparing the ratios of net income to total revenues for both years.
Understanding Price Determinants
Economists gain a practical understanding of what determines prices and why they change by studying real-world data. Factors affecting gasoline prices, for example, include demand, supply, taxes, and the global oil market.
Western Company is preparing a cash budget for June. The company has $10,600 in cash at the beginning of June and anticipates $31,400 in cash receipts and $37,300 in cash payments during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company has no loans outstanding. To maintain the $10,000 required balance, during June the company must:
a. Borrow $5,300.
b. Repay $4,900.
c. Borrow $10,000.
d. Repay $5,100.
e. Borrow $4,900.
Answer:
$5,300
Explanation:
The computation of maintained balance is shown below:-
Total amount = Opening Balance + Cash Receipts - Cash Disbursement
= $10,600 + $31,400 - $37,300
= $42,000 - $37,300
= $4,700
In order to maintain a balance of $10,000, it needs to borrow = $10,000 - $4,700
= $5,300
Therefore to maintain a balance of $10,000, it needs to borrow $5,300
ABC Inc. hires you as its Ethics Officer, and the CEO of ABC Inc wants you to help ABC Inc become ESG compliant. She asks you to make two recommendations each for the Environmental, Social, and Governance components of the ESG report for ABC Inc. She is keen on not repeating Enron’s mistakes, and also wants you to point out how your recommendations will ensure that ABC Inc will function differently from Enron
Answer:
The definition of the problem is listed throughout the section below on explanations.
Explanation:
ABC Inc employs ABC Inc as an internal auditor as well as CEO into becoming compliant with ESG. She requests you should consider 2 recommendations each for ABC Inc's ESG research on Climate, Economic, and Governance. Why your advice will ensure ABC Inc operates differently against Enron.
Environment:
Through its operational activities, ABC should incorporate renewable energy. Solar panels could be used for generating power in organizations where appropriate.ABC will devote 5% of all its sales to research for environmentally friendly energy resources to significantly reduce its reliance on coal.Social:
ABC could perhaps recognize the perspective including its investors and therefore should share the required info.When the CEO is unaware of the corporation's misconduct as well as some informant points something out to herself, therefore that individual or organization must be tended to or respected.Governance:
ABC ought to be more open concerning its activities. If it's the founder or the worker. Stockholders ought to learn what the internal operations of their business are.Boards must be supervised closely and they should include separate, representative members. Their pay should not have been so strong that incongruity is prevented in conferences.As contrasted with Enron's. Enron did not follow up on such above compliance issues.
We were vague when it came to disclosing their liabilities off the income statement. Shareholders were unfamiliar with the firm's operations.Whistle-blower or anybody who referred out such a program flaw was embarrassed and disciplined.ABC Inc may obey these guidelines above to have been consistent with ESG.
Ginger Hardware was organized on January 1, 2021. The firm was authorized to issue 170,000 shares of $5 par value common stock. During 2021, Ginger Hardware had the following transactions relating to stockholders' equity: Issued 51,000 shares of common stock at $7 per share. Issued 34,000 shares of common stock at $8 per share. Reported a net income of $170,000. Paid dividends of $85,000. What is total paid-in capital at the end of 2021
Answer:
$544,0000
Explanation:
Shareholders equity = (51,000 * $7) + (34,000 * $8) = $629,000
Retained earnings = $170,000 - $85,000 = $85,000
Total paid-in capital = Shareholders equity - Retained earnings = $629,000 - $85,000 = $544,0000
On September 1, 2021, Southwest Airlines borrows $39.4 million, of which $6.8 million is due next year. Show how Southwest Airlines would record the $39.4 million debt on its December 31, 2021, balance sheet. (Enter your answers in dollars, not millions. For example, $5.5 million should be entered as 5,500,000.)
Is there a long term liability?
Answer:
$32,600,000
Explanation:
The presentation of the liabilities section is presented below:
Balance sheet
Current liability
Current portion of long term debt $6,800,000
Long term liability
notes payable $32,600,000
Total liabilities $39,400,000
By this presentation, there is a long term liability of $32,600,000
The principle of comparative advantage asserts that a. the world price of a good will prevail in all countries, regardless of whether those countries allow international trade in that good. b. countries can become better off by specializing in what they do best. c. not all countries can benefit from trade with other countries. d. countries can become better off by exporting goods, but they cannot become better off by importing goods.
Answer:
b. countries can become better off by specializing in what they do best.
Explanation:
Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.
The comparative advantage gives a country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.
In 1817, David Ricardo who is an english political economist talked about the law of comparative advantage in his book “On the Principles of Political Economy and Taxation."
Also, the principle of comparative advantage asserts that countries can become better off by specializing in what they do best.
This simply means that, any country applying the principle of comparative advantage, would enjoy an increase in output and consequently, a boost in their Gross Domestic Products (GDP).
MC Qu. 59 A company's flexible budget for... A company's flexible budget for 16,000 units of production showed sales, $96,000; variable costs, $56,000; and fixed costs, $19,000. The sales expected if the company produces and sells 20,000 units is (Do not round intermediate calculations): Multiple Choice $26,250. $120,000. $21,000. $7,250. $52,500. Next Visit question
Answer:
$120,000
Explanation:
The computation of sales is shown below:-
For computing the sales revenue first we need to find out the selling price per unit which is here below:-
Selling price per unit = Sales ÷ Units
= $96,000 ÷ 16,000
= $6
Sales revenue when 20,000 units are sold = Selling price per unit × Number of units sold
= $6 × 20,000
= $120,000
Therefore for computing the sales revenue we simply applied the above formula.
What group is primarily responsible for the creation of International Financial Reporting Standards (IFRS)?
a. International Forum on Accountancy Development (IFAD)
b. International Accounting Standards Board (IASB)
c. International Federation of Accountants (IFA)
d. Financial Accounting Standards Board (FASB)
Answer:
The correct answer is Option B.
Explanation:
International Accounting Standards Board (IASB) was established in 2001 to replace the International Accounting Standards Committee. It is a private-sector and independent body that approves and develops International Financial Reporting Standards (IFRS). IFRS is an accounting standard that tends to uniform the financial reporting standards across different organizations across different countries. The IASB also makes pronouncement on new and emerging IFRS standards.
Bramble Company purchases $50,500 of raw materials on account, and it incurs $61,400 of factory labor costs. Supporting records show that (a) the Assembly Department used $25,100 of the raw materials and $39,700 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs. Journalize the assignment of overhead to the Assembly and Finishing Departments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
Work In Process : Assembly Department $63,520 (debit)
Work In Process : Finishing Department $34,720 (debit)
Overhead $98,240 (credit)
Explanation:
Overhead allocations are based on the labor cost.Thus, First determine the amounts of labor costs allocated to the Departments.
Labor Cost Allocation :
Assembly Department = $39,700
Finishing Department = $21,700 that is (61,400 -39,700)
Overhead Allocation :
Assembly Department ($39,700 × 160%) = $63,520
Finishing Department ($21,700 × 160%) = $34,720
Each of the following statements may (or may not) describe one of these technical terms. In the space provided below each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms. ________ (a.) An expenditure that will benefit only the current accounting period. ________ b.) The accelerated depreciation system used in federal income tax returns for depreciable assets purchased after 1986. ________ c.) A policy that fractional-period depreciation on assets acquired or sold during the period should be computed to the nearest month. ________ d.) An intangible asset representing the present value of future earnings in excess of normal return on net identifiable assets. ________ e.) Expenditures that could lead to the introduction of new products, but which, according to the FASB, should be viewed as an expense when incurred. ________ f.) Depreciation methods that take less depreciation in the early years of an asset's useful life, and more depreciation in the later years. ________ g.) An account showing the portion of the cost of a plant asset that has been written off to date as depreciation expense
Answer: Please find below the answer. You omitted the terms to be used.
Explanation: Using the accounting terms, Revenue expenditure. straight line policy, Goodwill,capital expenditure, half year convention, accelerated depreciation, research and development, MACRS,
filling in the terms appropriately, or None, if statement does not describe any term, we have
a)An Expenditure that will benefit only the current accounting period - Revenue expenditure
b) The accelerated depreciation system used in federal income tax returns for depreciable assets purchased after 1986 - MACRS
c) A policy that fractional period depreciation on assets acquired or sold during the period should be computed to the nearest month - Straight Line policy
d) An intangible asset representing the present value of future earnings in excess of normal return on net identifiable asset - Goodwill
e) Expenditures that could lead to introduction of new products, but which according to FASB, should be viewed as an expense when incurred - Research and Development
f-)Depreciation method that takes less depreciation in early years of an asset's useful life, and more depreciation in later years - NONE
g) An account showing that portion of the cost of a plant asset that has been written off to date as depreciation expense - Accumulated Depreciation.
LPM Ltd. uses units produced as its measure of activity. During August, the company budgeted for 46,700 units of output, but actually produced 48,900 units of output. The company uses the following revenue and cost formulas in its budgeting, where q is the number of units of output:
Revenue: $10.40q
Salaries: $31,050 + $2.45q
Supplies: $1.25q
Utilities: $0.60q
Insurance: $23,090
Miscellaneous expenses: $13,800 + $0.21q
The company reported the following actual results for August:
Revenue $ 491,250
Salaries $ 148,360
Supplies $ 55,795
Utilities $ 31,920
Insurance $ 22,100
Miscellaneous expense $ 20,845
The revenue variance in August is:
Answer:
The revenue variance in August is $5,570 favorable.
Explanation:
LPM Ltd.
Actual Revenue = $491,250
Budgeted Revenue = $10.40 x 46,700 units = $485,680
Revenue Variance = Budgeted Variance - Actual Variance
Revenue Variance = $485,680 - $491,250
Revenue Variance = $5,570 favorable
Since the Actual Variance is greater than budgeted variance, hence favorable revenue variance.
Gorberchev Food Processing expects to have 28,000 units of finished goods inventory on hand on March 31 and reports the following expected sales (in units) for the months of April through July: April 128,000 May 138,000 June 155,000 July 128,000 At the end of each month the company desires its ending finished goods inventory to be 25% of the next month's projected sales (in units). The budgeted production (in units) for Gorberchev Food Processing for May should be:
Answer:
Total production= 142,250
Explanation:
Giving the following information:
Sales (in units):
May=138,000
June= 155,000
At the end of each month the company desires its ending finished goods inventory to be 25% of the next month's projected sales (in units).
To calculate the units to be produced in May, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Budgeted production:
Sales= 138,000
Desired ending inventory= (155,000*0.25)= 38,750
Beginning inventory= (138,000*0.25)= (34,500)
Total production= 142,250
Europa Company manufactures only one product. Presented below is direct labor information for November.Standard direct labor hours per unit of product 3.20Number of finished units produced 6,500Standard wage rate per direct labor hour (SP) $19.20Total direct labor payroll for the period $359,424Actual wage rate per direct labor hour worked (AP) $161. The actual direct labor hours worked (AQ) during November was:2. The total standard direct labor hours (SQ) in November for the output produced was:3.The direct labor rate variance for November (to two decimal places) was:4.direct labor efficiency variance for November (to two decimal places) was:
Answer:
1. 22,464 hours
2. 20,800 hours
3. $71,884.80 Favorable
4. $31,948.80 Unfavorable
Explanation:
Given that
Standard hours per unit = 3.20
Number of finished units = 6,500
Standard wage rate per hour = $19.20
Total direct labor payroll = $359,424
Actual wage rate per hour = $16
1. The computation of direct labor hours worked is shown below:-
Direct labor hours worked = Total labor cost ÷ Actual wage rate
= $359,424 ÷ 16
= 22,464 hours
2. The computation of total standard direct labor hours is here below:-
Total standard direct labor hours = Standard hours per unit × Actual units produced
= 3.20 × 6,500
= 20,800 hours
3. The calculation of direct labor rate variance is shown below:-
Direct labor rate variance = Actual hour × (Standard rate - Actual rate)
= 22,464 × ($19.2 - $16)
= 22,464 × $3.2
= $71,884.80 Favorable
4. The calculation of direct labor efficiency variance is shown below:-
Direct labor efficiency variance = Standard Rate × (Standard hour - Actual hours)
= $19.20 × (20,800 - 22,464)
= $19.20 × -$1,664
= $31,948.80 Unfavorable
"Sunnyfax Publishing pays out all its earnings and has a share price of $ 38.00. In order to expand, Sunnyfax Publishing decides to cut its dividend from $3.00 to $2.00 per share and reinvest the retained funds. Once the funds are reinvested, they are expected to grow at a rate of 15%. If the reinvestment does not affect Sunnyfax's equity cost of capital, what is the expected share price as a consequence of this decision?"
Answer:
$59.7193
Explanation:
Cost of capital = $3/$38 = 0.0789473
g= 0.33 × 15/100
g = 0.33× 0.15
= 0.04545
P0= $2 / ( 0.0789473 - 0.04545)
= $2/0.03349
$59.7193