Answer:
A) Most of the U.S. currency in existence circulates outside U.S. borders.
Explanation:
Both the Secretary of the Treasury and the Federal Reserve estimate that around 60% of all US dollar bills are held in foreign countries.
The US dollar is considered the strongest and most stable currency in the world. That is the reason why so many governments use the US dollar as a reserve of value. Some foreign countries even adopted the US dollar as their own currency, e.g. El Salvador, Ecuador, Guam, Zimbabwe, etc.
It is true is that most of the U.S. currency in existence circulates outside U.S. borders.
In international trade, the United States dollars is the currency which forms the basis of trade for majority of country in the entire continent.
The US Dollars is used in international tarde because of the integrity and stability its offers in the foreign market
The Secretary of the Treasury and the Federal Reserve estimated that more then 60% of US dollar bills are circulating outside its borders.
Therefore, the Option A is correct because It is true is that most of the U.S. currency in existence circulates outside U.S. borders.
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Imagine you have been assigned a semester-long project in one of the courses you are enrolled in the university. It has been two months since you began and you have completed half of the work on the project.
Write a progress report to your instructor using the memo format to update him about the progress on the project.
Answer:
Student: Eastern University Student
Semester: Fall 2020
Supervisor: Mr. Michael Elhawaha
Introduction
I began my research work with respect to Alcoholism and Social Affiliation on 10th of March, 2020.
I have since
created my hypotheses with regard to the above topic which reads: People who are social drinkers are more likely to have better social and business networks than those who don'tcreated my research questions. They are 10 in number. Each question is designed to determine whether or not one is a social drinker, a heavy drinker or not a drinker at all. the question also speaks to how much drinking is considered heavy or social drinking. Two of the questions relate to how much socialising each person does per week. I have already forwarded the documents to your box for appraisal and corrections.Whilst waiting for your revert, I'm doing an extensive secondary research online on same topic to see what has been done and what hasn't. I have about 8 books by different authors that who have done some work on social drinking and it's effects.
I'm hopeful that these will help to add flesh to my research and that their works and findings will help me weave a strong background against which I will publish my findings.
If there is any information you'd like for me to furnish you with on my progress, I'd be happy to provide them at your request.
Cheers!
Zoe Daizymandias
On August 1, Sandhill Company buys 1,060 shares of BCN common stock for $32,520 cash. On December 1, the stock investments are sold for $39,470 in cash. Journalize the purchase and sale of the common stock. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answer: Please refer to Explanation
Explanation:
Date
August 1
DR Stock Investments $32,520
CR Cash $32,520
(To Record purchase of stock)
December 1
DR Cash $39,470
CR Stock Investment $32,520
CR Gain on Sale of Investment $6,950
(To record Sale of Investment)
Working
Gain on sale of investment = Selling Price - Cost Price
= 39,470 - 32,520
= $6,950
Narrations are not needed in the question but I included them for knowledge.
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2017, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $ 20,000 , direct labor $ 12,000 , and manufacturing overhead $ 16,000 . As of January 1, Job No. 49 had been completed at a cost of $ 90,000 and was part of finished goods inventory. There was a $ 15,000 balance in the Raw Materials Inventory account.
During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $ 122,000 and $ 158,000 , respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $ 90,000 on account.
2. Incurred factory labor costs of $ 70,000 . Of this amount $ 16,000 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $ 17,000 ; indirect labor $ 20,000 ; depreciation expense on equipment $ 12,000 ; and various other manufacturing overhead costs on account $ 16,000 .
4. Assigned direct materials and direct labor to jobs as follows.
Job No.
Direct Materials
Direct Labor
50 $ 10,000 $ 5,000
51 39,000 25,000
52 30,000 20,000
Answer:
1. N = 840.66 RPM
2. 1023 w
Explanation:
See attached images
The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing. "How many units were transferred-out during the period
Answer:
Physical Flow units 12000
Equivalent Units Materials 11000
Equivalent units Conversion 15000
Explanation:
The Finishing Department
First-in, First-out (FIFO) Process Costing
Equivalent Units
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
Units Received 15000 100 100 15000 15000
+Ending WIP 2000 50 30 1000 600
Less Beg. Inv 5000 100 30 5000 600
Total units 12000 11000 15000
The units started and completed are transferred out units. The Beginning Work in Process is deducted to ensure first in first out. The units moved first in are transferred out first.
To calculate the number of units transferred-out during the period, you need to use the FIFO method and calculate equivalent units of production for materials and conversion costs for the beginning and ending work-in-process (WIP) inventories.
Explanation:The number of units transferred-out during the period can be calculated by subtracting the ending work-in-process (WIP) inventory from the sum of the beginning WIP inventory and units received, following the FIFO method. In this case:
Calculate the equivalent units of production for materials and conversion costs for the beginning and ending WIP inventories.Multiply the units received by the degree of completion for materials and conversion costs to obtain the equivalent units.Sum up the equivalent units of production for the beginning WIP inventory, units received, and the ending WIP inventory.Subtract the equivalent units of the ending WIP inventory from the sum.After performing these calculations, the number of units transferred-out during the period can be determined.
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Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below: Sales $ 670,000 Variable expenses $ 295,000 Fixed manufacturing expenses $ 246,000 Fixed selling and administrative expenses $ 194,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $196,000 of the fixed manufacturing expenses and $111,000 of the fixed selling and administrative expenses are avoidable if product D14E is discontinued. Required: a. According to the company's accounting system, what is the net operating income earned by product D14E? (Net losses should be indicated by a minus sign.) b. What would be the financial advantage (disadvantage) of dropping product D14E? Should the product be dropped?
Answer:
a. According to the company's accounting system, what is the net operating income earned by product D14E? (Net losses should be indicated by a minus sign.)
net loss -$65,000b. What would be the financial advantage (disadvantage) of dropping product D14E? Should the product be dropped?
financial disadvantage of discontinuing the produce is -$68,000, so the company should not discontinue the product since its losses would increaseExplanation:
total sales $670,000
- variable expenses $295,000
- fixed manufacturing expenses $246,000
- fixed selling and administrative expenses $194,000
net loss = $65,000
if product D14E is discontinued, $196,000 + $111,000 = $307,000, of fixed expenses can be avoided, but $133,000 are not avoidable. if the company discontinues the product, its losses will increase by $133,000 - $65,000 = $68,000
E11-8 (Algo) Reporting Stockholders' Equity LO11-1, 11-3, 11-7 Abe's Steakhouse is the largest upscale steakhouse company in the United States, based on total company- and franchisee-owned restaurants. The company's menu features a broad selection of high-quality steaks and other premium offerings. Assume the information below is from a recent annual report: a. Common stock, $0.01 par value; 100,090,000 shares authorized; 23,563,356 issued and outstanding at the end of the current year, 23,405,356 issued and outstanding at the end of last year. b. Additional paid-in capital: $192,389,000 at the end of the current year and $170,431,000 at the end of last year. c. Retained earnings / (accumulated deficit): ($80,797,000) at the end of last year. d. In the current year, net income was $54,583,000 and a cash dividend of $7,138,000 was paid. Required: Prepare the stockholders’ equity section of the balance sheet to reflect the above information for the current year and last year. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Shareholders equity current year last year
Common stock: $235,563.56 $234,053.56
Capital in excess of par value: $192,389,000.00 $170,431,000.00
Retained earnings: -$33,352,000.00 -$80,797,000.00
Total shareholders' equity $159,272,563.56 $89,868,053.56
common stocks last year = 23,405,356 x $0.01 = $234,053.56
common stocks current year = 23,563,356 x $0.01 = $235,563.56
Capital in excess of par value last year = $170,431,000
Capital in excess of par value current year = $192,389,000
retained earnings last year = -$80,797,000.00
retained earnings current year = -$80,797,000 + $54,583,000 - $7,138,000 = ($33,352,000.00)
The Abe's Steakhouse Company will present the stockholders' equity section of the balance sheet as follows:
Stockholders' Equity Section
Current Year Last Year
Authorized Common Stock:
100,090,000 shares at $0.01 par value
23,563,356 shares, issued and outstanding $235,633.56 $234,053.56
Additional paid-in capital $192,389,000 $170,431,000
Retained earnings -$33,397,000 -$80,797,000
Total equity $159,227,633.56 $89,868,053.56
Data Analysis:
Retained earnings brought forward ($80,797,000)
Net income for the current year $54,583,000
Cash dividend paid in the current year ($7,138,000)
Retained earnings for the current year ($33,397,000)
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The Bramble Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $55 a night. Operating costs are as follows: Salaries $6,600 per month Utilities $1,100 per month Depreciation $900 per month Maintenance $420 per month Maid service $11 per room Other costs $22 per room Determine the inn’s break-even point in number of rented rooms per month. Break-even point enter the break-even point in number of rented rooms rooms eTextbook and Media Determine the inn’s break-even point in dollars. Break-even point $enter the Break-even point in dollars
Answer:
410 rooms and $22,550
Explanation:
The computation of the break even point and in dollars is shown below:
Break even point in units is
= Fixed cost ÷ (Selling price - variable cost)
where,
Fixed cost is
= Salaries + Utilities + Depreciation + Maintenance
= $6,600 + $1,100 + $900 + $420
= $9,020
And, the selling price is $55
And the variable cost is
= Maid service + other cost
= $22 + $11
= $33
So, the break even point in points is
= ($9,020) ÷ ($55 - $33)
= 410 rooms
And the break even point in dollars is
= 410 rooms × $55
= $22,550
In order to be more cost effective, it is important when establishing a support structure to: A. Hire enough staff to assure 24-hour coverage to monitor social media B. Enlist local graduate students to manage your social media presence C. Find employees with social media experience and put them in charge of your program D. Be creative in using current staff and to cross train on the different platforms used
Answer:
D. Be creative in using current staff and to cross train on the different platforms used.
Explanation:
For a flexible organization, support structures are needed to meet with the ever growing demands in business. Support structures are those measures put in place by employers to ensure that the organization has sufficient resources to meet business demands at every point in time. Having the available resources does not have to cost much. Current staff can be cross trained on several social media platforms so that they are flexible and can easily fit into any role.
Cross training would result to maximizing the potentials of the staff and making them more useful in discharging more duties. This is cost effective as the money and resources that would be spent in hiring new employees is saved.
The Real Estate Products Division of McKenzie Co. is operated as a profit center. Sales for the division were budgeted for 2019 at $1,250,000. The only variable costs budgeted for the division were cost of goods sold ($610,000) and selling and administrative ($80,000). Fixed costs were budgeted at $130,000 for the cost of goods sold, $120,000 for selling and administrative, and $95,000 for noncontrollable fixed costs.
Actual results for these items were:
Sales $1,175,000
Cost of goods sold Variable 545,000
Fixed 140,000
Selling and administrative Variable 82,000
Fixed 100,000
Noncontrollable fixed 105,000
Prepare a responsibility report for the Real Estate Products Division for 2019.
Answer and Explanation:
The Preparation of responsibility report for the Real Estate Products Division is following below:-
Particulars Budgeted Actual Difference Favorable/
Unfavorable
Sales $1,250,000 $1,175,000 $75,000 Unfavorable
(Sales of Budgeted - Actual)
Variable cost ($610,000) $545,000 $65,000 Favorable
(variable cost of Budgeted - Actual)
Selling and
administration ($80,000) $82,000 $2,000 Unfavorable
(selling and admin. of Budgeted - Actual)
Total variable
cost $690,000 $627,000 $63,000 Favorable
Contribution
margin $560,000 $548,000 $12,000 Unfavorable
(Sales - Total variable cost)
Fixed cost
Cost of goods
sold $130,000 $140,000 $10,000 Unfavorable
Selling and
administration $120,000 $100,000 $20,000 Favorable
Total fixed cost $250,000 $240,000 $10,000 Favorable
(Fixed cost of goods sold + Selling and administration and the difference of these two)
Net operating
income $310,000 $308,000 $2,000 Unfavorable
Therefore to reach the net operating income we will simply deduct the Contribution margin and total fixed cost.
Which of the following statements is correct?
A. A spam will send a network packet that appears to come from a source other than its actual source.
B. SOC 1 reports provide the evaluations on a broader set of controls implemented by the service provider.
C. Fault tolerance uses redundant units to provide a system with the ability to continue functioning when part of the system fails.
D. Multi-factor authentication is less secure than requiring a user always entering a password to access a network.
Answer:
opton c: fault tolerance uses redundant units to provide a system with the ability to continue functioning when part of the system fails
Explanation:
Fault tolerance on a system is simply defined as a key feature that makes a computer system to continue with its operations even though there is a system failure on one part or a specific part of the system. A computer that is said to be fault tolerant system will operate well/ fine, after one of the power supplies fails,
A fault tolerant system is known to have no occurrence of Single point of failure, No single point repair takes the system down, fault isolation or identification and Fault containment, robustness or variability control
Cashmere Soap Corporation had the following items listed in its trial balance at 12/31/2018: Currency and coins $ 630 Balance in checking account 2,900 Customer checks waiting to be deposited 2,900 Treasury bills, purchased on 11/1/2018, mature on 4/30/2019 3,600 Marketable equity securities 10,400 Commercial paper, purchased on 11/1/2018, mature on 1/30/2019 4,700 What amount will Cashmere Soap include in its year-end balance sheet as cash and cash equivalents
Answer:
11130
Explanation:
630+2,900+2,900+4,700
Legend Service Center just purchased an automobile hoist for $35,100. The hoist has an 8-year life and an estimated salvage value of $3,120. Installation costs and freight charges were $3,500 and $800, respectively. Legend uses straight-line depreciation. The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable his mechanics to replace 6 extra mufflers per week. Each muffler sells for $74 installed. The cost of a muffler is $39, and the labor cost to install a muffler is $15. (a) Compute the cash payback period for the new hoist. (Round answer to 2 decimal places, e.g. 10.50.) Cash payback period years (b) Compute the annual rate of return for the new hoist. (Round answer to 1 decimal place, e.g. 10.5.) Annual rate of return %
Answer:
a) Cash payback period = Initial investment / Annual cash inflows = $39,400 /$6,240= 6.31 years
b) Annual rate of return = Average annual income / Average investment= $1,705 / $21,260 = 8.0%
Explanation:
a)
Initial investment = Cost of automobile hoist + Installation cost + Freight charges
= $35,100 + $3,500 + $800 = $39,400
Annual cash inflows = 6 × ($74 -$39 -$15) ×52 = $6,240
Cash payback period = Initial investment / Annual cash inflows = $39,400 /$6,240= 6.31 years
b)
Average annual income = Annual cash inflows - Depreciation = $6,240 - [($39,400 - $3,120)/8] = $1,705
Average investment = (Cost + Salvage value)/2 = ($39,400 + $,3120)/2 = $21,260
Annual rate of return = Average annual income / Average investment= $1,705 / $21,260 = 8.0%
Warila Inc. has provided the following data for the month of September. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.
Work in Process Finished Goods Cost of Goods Sold Total
Direct materials $2,620 $17,280 $44,130 $64,030
Direct labor 1,810 16,140 42,340 60,290
Manufacturing-
overhead applied 2,135 10,200 30,365 42,700
Total $6,565 $43,620 $116,835 $167,020
Manufacturing overhead for the month was underapplied by $1,200.
The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts.
Required:
The work in process inventory at the end of September after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to $_____. (Round intermediate calculations to two decimal places.)
Answer:
$6,625
Explanation:
The computation of total Cost of WIP inventories is shown below:-
Manufacturing overhead under-applied = $1,200 × $2,135 ÷ $42,700
= $60
Total Cost of WIP inventories = Direct materials + Direct labor + Manufacturing overhead applied + Manufacturing overhead under-applied
= $2,620 + $1,810 + $2,135 + $60
= $6,625
Therefore for calculating the total Cost of WIP inventories we simply applied the above formula.
. Zara, an HR manager at Fluxin LLC, is responsible for implementing a guided self-appraisal system using management by objectives in her organization. She has developed specific standards for performance. Which of the following is typically the next step for Zara? a. Continuing performance discussions. b. Implementation of the performance standards. c. Setting of objectives. d. Job review and agreement.
Answer:
Setting of objectives.
Explanation:
Performance appraisal system can be described as a means of measuring the level of employees performance on a job. This system helps the managers to review their employees strengths and weakness, it also creates an avenue for the workers to increase the level of their productivity in the company.
From the scenario described above, Zara the HR manager at Fluxin LLC has implemented a guided self-appraisal system which is used individually by the employees to measure their performance based on the management specific standards for performance. The next step for her to take is to set the different objectives in which all employees of the organisation must try to attain for the growth and success of the company.
Mattress Wholesalers, Inc. is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $7.537.53 million and inventory was $1.551.55 million. This year, costs of goods sold is $8.638.63 million and inventory investment is $1.631.63 million. a) What was its weeks of supply last year? nothing weeks (round your response to two decimal places).
Answer:
Weeks supply = 10.70 million (Approx)
Explanation:
Given:
Last year, cost of goods sold = $7,537.53 million
Last year Inventory = $1,551.55 million
Computation:
Average cost of sold good on week basis = Cost of goods sold / Total number of weeks
Average cost of sold good on week basis = $7,537.53 million / 52
Average cost of sold good on week basis = 144.96 million
Computation of weeks supply:
Weeks supply = Last year Inventory / Average cost of sold good on week basis
Weeks supply = $1,551.55 million / 144.96 million
Weeks supply = 10.70 million (Approx)
Rocoe Company produces a variety of garden tools in a highly automated manufacturing facility. The costs and cost drivers associated with four activity cost pools are given below: Activities: Unit Level Batch Level Product Level Facility Level Total Cost $40,800 $13,800 $9,600 $50,400 Total Cost Driver Volume 6,800 labor hours 276 set ups % of use 50,400 units Production of 10,000 units of a handheld tiller required 310 labor hours, 40 setups, and consumed 25% of the product sustaining activities. Assuming the company uses activity-based costing, how much total overhead will be allocated to this tool
Answer:
$16,260
Explanation:
The computation of total overhead is shown below:-
Unit level = $40,800 ÷ 6,800 × 310 $1,860
Batch level = $13,800 ÷ 276 × 40 $2,000
Product Level = $9,600 ÷ 100 × 25% $2,400
Facility level = $50,400 ÷ $50,400 × 10,000 units $10,000
Total overhead allocated $16,260
So, for computing the total overhead allocated we simply added the unit level, batch level, product level and facility level.
Mira offered to sell Peter a parking lot for $75,000. The offer was in writing and signed by Mira and provided that any acceptance by Peter must be within 5 days. On the fourth day, Mira accepted a better offer from Dean and transferred the parking lot to Dean on that day. Unaware of this sale, Peter telephoned Mira on the fifth day and accepted Mira’s offer. In an action by Peter against Mira for breach of contract, judgment for whom?
Answer:
Yes the agreement among Mira and Peter is legal because it is in inscription and each have acknowledged the terms of the agreement. It has the agreement of each the parties, a worth set, period is assumed for thought and is in inscription and onward might be a legal agreement. Mira signed the manuscript and then she has to anticipate the five days specified to Peter to finish and if he failed to reply once those 5 days, solely then Mira will select alternative provide. She is absolute to wait and provides the assets to Peter if he approves to the agreement before those five days. Therefore the agreement is effective and Mira is absolute to it.
The judgment would likely go in favor of Peter. Mira's transaction with Dean constituted a breach of contract, as Peter's acceptance on the fifth day was within the deadline specified by Mira.
Explanation:In this case, the judgment would likely go in favor of Peter. When Mira sent Peter the offer, it became a firm offer that couldn't be revoked within the time frame specified, which is 5 days in this case. Even though Mira sold the parking lot to Dean on the fourth day, the contract with Peter was already in existence from the moment Mira made the offer and the transaction with Dean thus constitutes a breach of contract. The acceptance by Peter on the fifth day was within the deadline specified by Mira, so, regardless of the transaction with Dean, Peter can successfully sue Mira for breach of contract.
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The appropriate format of the December 31, 2017 closing entry for John & Hope Limited Liability Partnership, whose two partners had withdrawn their salaries from the partnership during the year, is: A) John, Drawing XXX Hope, Drawing XXX Salaries Payable XXX B) Salaries Expense XXX John, Drawing XXX Hope, Drawing XXX C) John, Capital XXX Hope, Capital XXX Salaries Payable XXX D) John, Capital XXX Hope, Capital XXX John, Drawing XXX Hope, Drawing XXX
Answer:
D)
John, Capital XXX
Hope, Capital XXX
John, Drawing XXX
Hope, Drawing XXX
Explanation:
In a partnership, the account used to record the salaries received by the partners is called the drawing account. The drawing account has a debit balance because it reduces the partner's basis in the partnership. It is not an expense account.
When a partner receives his/her salary, the following journal entry is made:
Dr Drawing account - Susan 1,000
Cr Cash 1,000
When you are closing the drawing account at the end of the year (like all other temporary accounts), you must close it to the partner's capital account:
Dr Susan - capital 1,000
Cr Drawing account - Susan 1,000
A result of this country allowing international trade in crude oil is as follows: a. The effect on the well-being of the country is unclear in that domestic producer surplus increases, while the effect on domestic consumer surplus is unclear. b. The effect on the well-being of domestic crude-oil consumers is unclear in that they now buy more crude oil, but at a higher price per barrel. c. domestic consumers lose by more than domestic producers gain. d. The well-being of domestic crude-oil producers is now higher in that they now sell more crude oil at a higher price per barrel.
When a country allows international trade in crude oil, domestic producers often gain by selling more at higher prices, while domestic consumers may face higher prices, affecting their consumer surplus. The overall national well-being is complex and depends on various factors, including the success of producers and the ability of consumers to afford higher prices.
Explanation:The question you've asked pertains to the effects international trade, specifically in crude oil, has on consumer and producer surplus within a country. If a country allows international trade in crude oil, different economic outcomes can be expected:
With the introduction of international trade, domestic producers of crude oil may experience higher well-being as they are able to sell more oil at potentially higher prices on the global market, increasing their producer surplus.Domestic consumers might face higher prices due to global demand, which can lead to a reduction in their consumer surplus. However, they may benefit from a greater variety in supply and potentially more stable supply conditions.The overall effect on national well-being is complex and can vary. Successful producers in the country may see gains as they become part of a global supply chain, potentially increasing production and employment. However, some domestic consumers may face higher prices and reduced consumer surplus.It's important to note that while trade can lead to overall efficiency gains and increased total surplus in an economy, not all groups within the country will necessarily benefit equally, leading to winners and losers in different sectors of the economy. In any instance of introducing trade, considerations of both consumer surplus and producer surplus are essential to evaluate the net effect on societal welfare.
Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $136,300. The equipment will have an initial cost of $470,000 and have a 7 year life. If the salvage value of the equipment is estimated to be $8,000, what is the accounting rate of return?
Answer:
The correct answer is 29.00%
Explanation:
The account rate of return on investment is the percentage of the amount invested that makes up the net return on investment. This is calculated as:
rate of return = (net income from investment ÷ cost of investment) × 100
net income from investment = $136,300
cost of investment = $470,000
∴ Rate of return = (136,300 ÷ 470,000) × 100 = 0.29 = 29%
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price $ 71,000 Delivery cost $ 3,000 Installation charge $ 2,000 Estimated life 5 years Estimated units 146,000 Salvage estimate $ 3,000 During Year 1, the machine produced 42,000 units, and during Year 2 it produced 44,000 units. Required a. Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. b. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. d. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the m
Answer:
a. The amount of depreciation expense for Year 1 and Year 2 using straight-line method is for year 1 and year 2 $14,600
b. the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance is for year 1 $30,400 and for year 2 $18,240
c. the amount of depreciation expense for Year 1 and Year 2 using units of production method is for year 1 $21,840 and for year 2 is $22,880
d. the amount of depreciation expense for Year 1 and Year 2 using MACRS is for year 1 $10,860 and for year 2 $18,612
Explanation:
a. To calculate the amount of depreciation expense for Year 1 and Year 2 using straight-line method we would have to make the following calculation:
Straight line Depreciation = ($71,000 + $3,000 + $2,000- $3,000) /5 = $14,600
For each year same depreciation
B) To calculate the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method we have to make the following calculations:
Double declining method = 1/5 * 2 = 40%
Year 1 depreciation -= $76,000 *40% = $30,400
Year 2 Depreciation = ($76,000 - $30,400) 40% = $18,240
c) To calculate the amount of depreciation expense for Year 1 and Year 2 using units of production method we have to make the following calculations:
Unit production method
76000/146000 = 0.52
Year 1 42,000 *0.52 = $21,840
Year 2 44,000 * .52 = $22,880
d) To calculate the amount of depreciation expense for Year 1 and Year 2 using MACRS we have to make the following calclations:
MACRS
Year 1 = 76000 *14.29% = $10,860
Year 2= - 76000 *24.49% = $18,612
Depreciation for Year 1 and Year 2:
a. Straight-Line: $13,600 each year.
b. Double-Declining-Balance: $28,400 (Year 1), $17,040 (Year 2).
c. Units of Production: $20,160 (Year 1), $21,120 (Year 2).
d. MACRS: $14,200 (Year 1), $16,992 (Year 2).
How is this so?a. Straight-Line Method:
- Year 1 Depreciation = (Purchase Price - Salvage Estimate) / Estimated Life
- Year 1 Depreciation = ($71,000 - $3,000) / 5 = $13,600
- Year 2 Depreciation = (Purchase Price - Salvage Estimate) / Estimated Life
- Year 2 Depreciation = ($71,000 - $3,000) / 5 = $13,600
b. Double-Declining-Balance Method:
- Year 1 Depreciation = (2 / Estimated Life) x Book Value at the Beginning of Year 1
- Year 1 Book Value = Purchase Price - Year 1 Depreciation
- Year 1 Depreciation = (2 / 5) x ($71,000) = $28,400
- Year 1 Book Value = $71,000 - $28,400 = $42,600
- Year 2 Depreciation = (2 / Estimated Life) x Book Value at the Beginning of Year 2
- Year 2 Book Value = Year 1 Book Value - Year 1 Depreciation
- Year 2 Depreciation = (2 / 5) x ($42,600) = $17,040
c. Units of Production Method:
- Determine the depreciation rate per unit: (Purchase Price - Salvage Estimate) / Estimated Units
- Depreciation per unit = ($71,000 - $3,000) / 146,000 = $0.48 per unit
- Year 1 Depreciation = Depreciation per unit x Units produced in Year 1
- Year 1 Depreciation = $0.48 x 42,000 = $20,160
- Year 2 Depreciation = Depreciation per unit x Units produced in Year 2
- Year 2 Depreciation = $0.48 x 44,000 = $21,120
d. MACRS (assuming 5-year property):
- MACRS provides specific depreciation percentages for each year of an asset's life. Assuming a 5-year property, Year 1 uses a 20% depreciation rate, and Year 2 uses a 32% depreciation rate.
- Year 1 Depreciation = 20% x Purchase Price
- Year 1 Depreciation = 0.20 x $71,000 = $14,200
- Year 2 Depreciation = 32% x Book Value at the Beginning of Year 2
- Year 2 Book Value = Purchase Price - Year 1 Depreciation
- Year 2 Depreciation = 0.32 x ($71,000 - $14,200) = $16,992
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Which of the following is the correct order for the preparation of the listed budgets? A) Budgeted income statement, sales budget, cash budget B) Cash budget, capital acquisitions budget, direct labor budget C) Sales budget, direct material purchases budget, budgeted income statement D) Direct labor budget, sales budget, budgeted income statement
Answer:
The correct option is C,sales budget, direct material purchases budget, budgeted income statement
Explanation:
Te correct order in preparing budgets is to first of all have a sales forecast based on information on previous years' sales figures as well as looking at the future economic outlook.
When sales forecasts are made based on educated guess,the sales budget is prepared using the most appropriate selling price per unit.
Thereafter,based on the number of units planned for sales,the required materials needed to accomplish the sales level is forecast,hence direct material purchases budget is prepared with informed unit cost of material.
Lastly,the income statement which encompasses both revenue from sales budget in addition to costs from direct materials purchase budget is finalized.
A bicycle manufacturer wants to know how many bicycles it must sell to break even. The break-even point (i.e. number of bicycles) is found by dividing total fixed expenses by: A) the contribution margin ratio percentage. B) the variable expenses dollar amount per bicycle. C) the sales price dollar amount per bicycle. D) the contribution margin dollar amount per bicycle.
Answer:
The contribution margin dollar amount per bicycle.
Explanation:
The break-even point refers to the point in which the costs and the earnings are equal which means that you don't lose or gain money. To calculate the break-even point on units, you have to divide the fixed costs by the contribution margin and the contribution margin is equal to the price of the product per unit minus the variable costs per unit.
According to this, the answer is that the break-even point (i.e. number of bicycles) is found by dividing total fixed expenses by: the contribution margin dollar amount per bicycle.
Tyson Foods is the largest U.S. beef and chicken supplier, processing more than 100,000 head of cattle and 40-plus million chickens weekly. Primary distribution channels are supermarket meat departments. However, the company is now expanding distribution into convenience stores. There are almost 150,000 gas stations and convenience stores where the company would like to sell hot Buffalo chicken bites near the checkout. This is a promising channel, as sales are growing considerably at these retail outlets and profit margins on prepared foods are higher than selling raw meat to grocery stores. Tyson will have to hire fifteen more sales representatives at a salary of $25 comma 000 each to expand into this distribution channel because many of these types of stores are independently owned. Each convenience store is expected to generate an average of $50,000 in revenue for Tyson. If Tyson's contribution margin is 40 percent on this product, what increase in sales will it need to break even on the increase in fixed costs to hire the new sales reps? The increase in the fixed costs is $ nothing. (Round to the nearest dollar.) The increase in sales is $ nothing. (Round to the nearest dollar.)
Answer:
i. Increase in sales to break even is $937,500
ii. Increase in sales is $125,000
iii Increase in fixed cost is $375,000
Explanation:
The increase in fixed deposit is computed as shown below;
=The Salary of each sales representative × The number of sales representative hired
= $25,000 × 15
= $375,000
The increase in sales is computed as ;
= Average revenue ÷ Contribution margin
= $50,000 ÷ 40%
=$125,000
The increase in sales to break even is therefore;
= Increase in fixed deposit ÷ Contribution margin
= $375,000 ÷ 40%
= $937,500
The following is a list of account titles and amounts (in millions) reported at December 27, 2015, by Hasbro, Inc., a leading manufacturer of games, toys, and interactive entertainment software for children and families: Accounts Receivable $ 1,235 Equipment $ 415 Accumulated Amortization 840 Goodwill 595 Accumulated Depreciation 360 Inventories 380 Allowance for Doubtful Accounts 15 Land 5 Buildings 180 Licensing Rights 1,860 Cash and Cash Equivalents 980 Prepaid Rent 290 Required: Prepare the asset section of a classified balance sheet for Hasbro, Inc. Using Hasbro’s 2015 Net Sales Revenue of $4,450 (million), its Net Fixed Assets of $240 (million) at December 28, 2014, and its Net Fixed Assets computed at December 27, 2015, calculate the fixed asset turnover ratio for 2015.
Answer:
The assets session if the company may be presented as follows;
Hasbro Inc.
Assets section of the balance sheet
Assets Amount in $'millions Amount in $'millions
Current Assets
Cash and cash equivalent 980
Account receivables 1,235
Allowance for doubtful debt (15)
Inventories 380
Prepaid rent 290
Total current asset 2,870
Property, plant and equipment
Land 5
Building 180
Equipment 415
Accumulated depreciation (360)
Property, plant and equipment (net) 240
Other assets
Licensing rights 1860
Accumulated amortization (840)
Goodwill 595
Total other assets 1615
Total assets 4,725
Fixed assets turnover ratio for 2015 = 18.54
Explanation:
The asset turnover is a financial measure that shows how much revenue management has been able to generate for each $1 invested in asset. In computing the asset turnover ratio, we use the average asset which is the result of the opening asset plus closing assets divided by 2.
The fixed asset amounts to the cost net the accumulated depreciation
The Fixed asset as at December 27 2015,
= $415 + $5 +180 - 360
= $240
Average asset turnover = (240 + 240)/2
= $240
Fixed assets turnover ratio for 2015 = $4,450/$240
= 18.54
Marigold Corp. is indebted to Ivanhoe under a $960000, 13%, three-year note dated December 31, 2019. Because of Marigolds financial difficulties developing in 2021, Marigold owed accrued interest of $124800 on the note at December 31, 2021. Under a troubled debt restructuring, on December 31, 2021, Ivanhoe agreed to settle the note and accrued interest for a tract of land having a fair value of $870000. Marigolds acquisition cost of the land is $720000.
Required:
1. Ignoring income taxes, on its 2021 income statement, what should Marigold report as its gain on disposal and restructuring gain?
Answer:
$150,000 and $214,800
Explanation:
The computation is shown below:
Gain on disposal = Fair value of the land - cost of the land
= $870,000 - $720,000
= $150,000
Now the restructuring gain is
= Loan amount + accrued interest - fair value of the land
= $960,000 + $124,800 - $870,000
= $214,800
We simply applied the above formulas so that the gain on disposal and restructuring gain could come
A bank charges a fee called a(n) ______ charge for handling many checking accounts.
Answer:
The correct answer to the following question will be "Service charges".
Explanation:
Financial service charge cost seems to be the description of such an account where all amounts paid by that of the company to such an agency's checking accounts are kept.
Defining a service charge seems to be an extra service payment or fee that is in addition to the standard payment.An illustration of such a service cost is PayPal offering a cost for an individual utilizing their service to transfer money to the other.Zeller Company estimates that 2017 sales will be $40,000 in quarter 1, $48,000 in quarter 2, and $58,000 in quarter 3. Cost of goods sold is 50% of sales. Management desires to have ending finished goods inventory equal to 10% of the next quarter’s expected cost of goods sold. Prepare a merchandise purchases budget by quarter for the first 6 months of 2017.
Answer and Explanation:
As per the data given in the question,
Quarter
1 2 6 month
Budgeted cost of goods sold (40,000×0.50) (48,000×0.50) $44,000
$20,000 $24,000
Add: Desired ending inventory (24,000×0.10) (58,000×0.10) $8,200
$2,400 $5,800
Total required units $20,000+$2,400 $24,000+$5,800 $52,200
$22,400 $29,800
Less: Begin. merchandise inv. $20,000×0.10 $24,000×0.10 $4,400
$2,000 $2,400
Budgeted purchase $20,400 $27,000 $47,800
Final answer:
This answer provides a detailed explanation of how to prepare a merchandise purchases budget for the first six months of 2017 based on the given sales and cost information.
Merchandise Purchases Budget for the First 6 Months of 2017:
Quarter 1: Purchases = ($40,000 x 50%) + (Quarter 2 expected cost of goods sold x 10%)
Quarter 2: Purchases = ($48,000 x 50%) + (Quarter 3 expected cost of goods sold x 10%)
Quarter 3: Purchases = ($58,000 x 50%) + (Quarter 4 expected cost of goods sold x 10%)
Cheyenne Corp. had the following transactions during 2017: 1. Issued $212500 of par value common stock for cash. 2. Recorded and paid wages expense of $102000. 3. Acquired land by issuing common stock of par value $85000. 4. Declared and paid a cash dividend of $17000. 5. Sold a long-term investment (cost $5100) for cash of $5100. 6. Recorded cash sales of $680000. 7. Bought inventory for cash of $272000. 8. Acquired an investment in Zynga stock for cash of $35700. 9. Converted bonds payable to common stock in the amount of $850000. 10. Repaid a 6-year note payable in the amount of $374000. What is the net cash provided by investing activities
Answer:
($30,600)
Explanation:
Data provided as per the requirement of answer is shown below:-
Sold investment = $5,100
Acquired investment = $35,700
The computation of net cash provided by investing activities is shown below:-
Net cash provided by investing activities = Sold investment - Acquired investment
= $5,100 - $35,700
= ($30,600)
Therefore for computing the net cash provided by investing activities we simply applied the above formula.
Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to Salt for $90 each. Salt sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31, 20X8, and sold the remainder in early 20X9 to unaffiliated companies for $130 each. Both companies use perpetual inventory systems. Based on the information given above, what amount of cost of goods sold did Pepper record in 20X8?
A. $2,765,000
B. $1,620,000
C. $2,963,000
D. $1,422,000
Answer:
A. $2,765,000
Explanation:
Data provided
Number of chairs sold = 35,000
Cost per chair = $79
The computation of cost of goods sold of Pepper is shown below:-
Cost of goods sold = Number of chairs sold × Cost per chair
= 35,000 × $79
= $2,765,000
Therefore for computing the amount of cost of goods sold of pepper we simply multiply the number of chairs sold with cost per chair