According to a supply and demand model for apples, if the average household income decreases at the same time 10 apple orchards go out of business, one would expect the equilibrium Group of answer choices price of apples to be indeterminate and the equilibrium quantity of apples in the market to increase. quantity of apples in the market to be indeterminate and the equilibrium price of apples to increase. price of apples to increase and the equilibrium quantity of apples in the market to decrease. quantity of apples in the market to decrease and the equilibrium price of apples to stay the same. quantity of apples in the market to decrease and the equilibrium price of apples to be indeterminate.
Answers
Answer:
quantity of apples in the market to decrease and the equilibrium price of apples to be indeterminate.
Explanation:
The decrease in income would reduce the demand for apples because there would be less disposable income available to buy apples. The decrease in demand would lead to a fall in price and quantity
If 10 orchards go out of business. The supply of apples would reduce. This would reduce quantity and increase price.
Taking these two occurrence together, equilibrium quantity would fall and there would be an indeterminate change in equilibrium price
Check the attached image for a graph showing these changes
Related Questions
X Manufacturing uses a normal cost system and had the following data available for 20x8: Direct materials purchased on account $148,000 Direct materials requisitioned 98,000 Direct labor cost incurred 127,000 Factory overhead budgeted 155760 Factory overhead incurred 137,800 Cost of goods sold 260,000 Beginning direct materials inventory 34,000 Beginning WIP inventory 70,000 Beginning finished goods inventory 55,000 Ending finished goods inventory 104,000 Overhead application rate, as a percent of direct-labor costs 118% Round your answers to the nearest dollar. Fill in the blank without $ or comma or period, e.g., 12345 What is the adjusted cost of goods sold assuming the over/under applied overhead is immaterial?
Answers
Answer:
Adjusted cost of goods sold = $247,940
Explanation:
Under / Over-applied overhead = Factory overhead incurred - Factory overhead applied
Under / Over-applied overhead = Factory overhead incurred - (Direct labor cost*Overhead application rate)
= $137,800 - ($127,000*118%)
Over-applied overhead = $137,800 - $149,860
Over-applied overhead = ($12,060)
Adjusted cost of goods sold = Unadjusted cost of goods sold - Over-applied overhead
Adjusted cost of goods sold = $260,000 - $12,060
Adjusted cost of goods sold = $247,940
Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2020). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Department Quarter 1 Quarter 2 Quarter 3 Quarter 4 Auditing 2,450 1,840 2,330 2,710 Tax 3,130 2,650 2,300 2,800 Consulting 1,640 1,640 1,640 1,640 Average hourly billing rates are auditing $84, tax $94, and consulting $105. Prepare the service revenue (sales) budget for 2020 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.
Answers
Answer and Explanation:
The Preparation of service revenue is prepared below:-
For Quarter 1
Billable Hours Billable rate Total
Auditing 2,450 84 205,800
Tax 3,130 94 294,220
Consulting 1,640 105 172,200
Total 672,220
For Quarter 2
Billable Hours Billable rate Total
Auditing 1,840 84 154,560
Tax 2,650 94 249,100
Consulting 1,640 105 172,200
Total 575,860
For Quarter 3
Billable Hours Billable rate Total
Auditing 2,330 84 195,720
Tax 2,300 94 216,200
Consulting 1,640 105 172,200
Total 584,120
For Quarter 4
Billable Hours Billable rate Total
Auditing 2,710 84 227,640
Tax 2,800 94 263,200
Consulting 1,640 105 172,200
Total 663,040
Now the total revenue is
= $575,860 + $584,120 + $663,040
= $1,823,020
For Quarter 1: The Preparation of service revenue is 672,220
For Quarter 2: 575,860
For Quarter 3: 584,120
For Quarter 4: The total revenue is = $1,823,020
Calculation of Total revenueWhen The Preparation of service revenue is prepared below:-
For Quarter:1 is
Billable Hours Billable rate Total
Auditing 2,450 84 205,800
Tax 3,130 94 294,220
Consulting 1,640 105 172,200
Total 672,220
For Quarter:2 is
Billable Hours Billable rate Total
Auditing 1,840 84 154,560
Tax 2,650 94 249,100
Consulting 1,640 105 172,200
Total 575,860
For Quarter:3 is
Billable Hours Billable rate Total
Auditing 2,330 84 195,720
Tax 2,300 94 216,200
Consulting 1,640 105 172,200
Total 584,120
For Quarter:4 is
Billable Hours Billable rate Total
Auditing 2,710 84 227,640
Tax 2,800 94 263,200
Consulting 1,640 105 172,200
Total 663,040
Now the total revenue is
= $575,860 + $584,120 + $663,040
Therefore, = $1,823,020
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You can buy a property today for $4 million and sell it in 6 years for $5 million. You will not earn any rental income on the property. Answer the following questions. a.) If the interest rate is 5%, what is the present value of the sales price? _____________ (4 pts) b.) Is this a good investment for you? Explain your answer ____________________________ _______________________________________________________________________(4 pts) c.) If the interest rate is 5%, what is the present value of the sales price if you also earned $200,000 in rental income each year? _______________________________________________(4 pts)
Answers
Answer:
a. Present value = $3,731,076.98
It is not a good investment because the present value of the sales price is less than the purchase price of the property. This means that purchasing the property would be unprofitable.
c. Present value = $4,746,215.40
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
a. Cash flow each year from year 1 to 5 = 0
Cash flow in year 6 = $5,000,000
I = 5%
Present value = $3,731,076.98
It is not a good investment because the present value of the sales price is less than the purchase price of the property. This means that purchasing the property would be unprofitable.
c. Cash flow each year from year 1 to 5 = $200,000
cash flow in year 6 = $200,000 + $5,000,000 = $5,200,000
I = 5%
Present value = $4,746,215.40
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
What are the main parts of a cover letter and their purposes?
Answers
Answer:
The introduction: Whenever possible, indicate how you came to apply to the company, such as...
responding to an advertised opening
having identified the company through research (do not use this if you didn't do the research as it may be obvious to the employer)
reading about the company or its executives in a publication
receiving a referral from John Jones at XYZ company
The body: It is important to highlight your qualifications and strengths as they relate to the requirements of the position. Amplify or augment information contained in your resume (rather than merely repeating it) and include a few strengths or personal qualities.
The closing: If the position was unadvertised and the resume is unsolicited, indicate that you will follow up in a few days. If you are responding to an advertised position, indicate you are looking forward to the opportunity to discuss how you can contribute to the success of the organization.
Explanation:
The main parts of a cover letter are the Introduction, Sales Pitch, and Conclusion which help people to achieve the objective for which it is written.
What is a cover letter?A one-page professional letter is submitted with your resume when you apply for a job is known as a cover letter. It allows you to reveal a personal side while proving why choosing you is a wise choice.
The cover letter should serve as an argumentative essay that explains to the employer why you are a strong candidate for the position. Include concrete situations from your prior experience that demonstrate your suitability for the job.
The main parts of a cover letter are the Introduction, Sales Pitch, and Conclusion which helps to introduce a person in front of the employer and help to make convince through their conversation about suitability for a particular role.
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Economic Order Quantity computes:
A: Cost of an order
B: Re-order level
C: Cost of stock
D: Optimum Order size
Answers
Answer:
D: Optimum Order size
Explanation:
Economic Order Quantity (EOQ) is a formula applied in logistic and supply chain management to calculate a business's ideal order size. As the name suggests, the order EOQ provides an order quantity that makes economic sense.
Economies of scale suggest that a bigger order size is better because the business will save transport costs. However, ordering in large quantities increases the cost of holding stock. The economic order quantity strikes a balance between these two important factors.
Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method.
Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventorypurchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)
Purchases
Cost of Goods Sold
Inventory on Hand
Unit
Total
Unit
Total
Unit
Total
Date
Quantity
Cost
Cost
Quantity
Cost
Cost
Quantity
Cost
Cost
May 1
11
23
26
29
Totals
Compute gross profit using the FIFO inventory costing method.
Gross profit is $
using the FIFO inventory costing method.
Requirement 2. Compute cost of goods sold and gross profit using the LIFO inventory costing method.
Begin by computing the cost of goods sold and cost of ending merchandise inventory using the LIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventorypurchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)
Purchases
Cost of Goods Sold
Inventory on Hand
Unit
Total
Unit
Total
Unit
Total
Date
Quantity
Cost
Cost
Quantity
Cost
Cost
Quantity
Cost
Cost
May 1
11
23
26
29
Totals
Compute gross profit using the LIFO inventory costing method.
Gross profit is $
using the LIFO inventory costing method.
Answers
Answer:
The question is incomplete because the numbers are missing, so I looked for a similar question that can help you understand how this works.
June 1 Beginning inventory 17 units at $15 each June 12 Purchase 5 units at $19 each June 20 Sale 14 units at $37 each = $518June 24 Purchase 11 units at $23 each June 29 Sale 13 units at $37 each = $481Cost of goods sold under FIFO (first in, first out):
June 20 sale = 14 units x $15 = $210
Inventory on hand:
June 1 Beginning inventory 3 units at $15 each June 12 Purchase 5 units at $19 eachJune 29 sale = (3 units x $15) + (5 units x $19) + (5 units x $23) = $255
Inventory on hand:
June 24 Purchase 6 units at $23 eachTotal COGS = $465
Ending inventory = $138
Gross profit = ($518 + $481) - $465 = $534
Cost of goods sold under LIFO (last in, first out):
June 20 sale = (5 units x $19) + (9 units x $15) = $230
Inventory on hand:
June 1 Beginning inventory 8 units at $15 eachJune 29 sale = (11 units x $23) + (2 units x $15) = $283
Inventory on hand:
June 1 Beginning inventory 6 units at $15 eachTotal COGS = $513
Ending inventory = $90
Gross profit = ($518 + $481) - $513 = $486
On January 1, 2016, Gless Textiles issued $24 million of 9%, 10-year convertible bonds at 101. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of Gless’s no par common stock. Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). Century Services purchased 15% of the issue as an investment.3. On July 1, 2021, when Gless’s common stock had a market price of $33 per share, Century converted the bonds it held. Prepare the journal entries by both Gless and Century for the conversion of the bonds (book value method). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)1. Record the entry for Gless regarding the conversion of the bonds.2. Record the entry for Century regarding the conversion of the bonds.
Answers
Answer and Explanation:
The Journal entries are shown below:-
1. Convertible bonds payable Dr, $3,600,000
Premium bonds payable Dr, $16,200
To common stock $3,616,700
(Being conversion of the bonds is recorded)
Working note:
Issue price of the convertible bonds $3,636,000
($24,000,000 × 15% × 101%)
Less: Par value of the bonds $3,600,000
($24,000,000 × 15% × 100%)
Premium on bonds payable $36,000
less: Premium on bonds payable
amortized $19,800
($26,000 × 11 ÷ 20)
Available Balance $16,200
2. Investment in common stock Dr, $3,616,200
To Investment in convertible bonds $3,616,200
To Premium on bond investment $16,200
(Being conversion of the bonds is recorded)
what is business mathematics ? and what are the basics of business mathematics ?
Answers
Answer: Business calculation is mathematics used by industrial companies to record and maintain enterprise operations. Profit-making organizations use mathematics in accounting, catalog management, retailing, deals forecasting, and monetary analysis.
Answer: Business mathematics are mathematics used by commercial enterprises to record and manage business operations. Commercial organizations use mathematics in accounting, inventory management, marketing, sales forecasting, and financial analysis.
Use the following information to answer the question below:
Acquirer purchases 100% of target by issuing $100 million in new debt to purchase target shares, carrying an interest rate of 10%
Excess cash is used to help pay for the acquisition
Acquirer expects to be able to close down several of the target company’s old manufacturing facilities and save an estimated $2 million in the first year
Target PP&E is written up by $25 million to fair market value
Investment bankers, accountants, and consultants on the deal earned $30 million in fees
Which of the following adjustments would be made to the pro forma income statement?
a) Advisory fee expense of $30 million
b) Depreciation expense increase due to PP&E write-up
c) Pre-tax synergies of $2 million
d) All of the above
Answers
Answer:
d) All of the above
Explanation:
Pro forma income statements are basically estimated or expected income statements which do not necessarily comply with US GAAP norms (are not useful in legal terms), but should reflect future outcomes.
In this case, Acquirer didn't simply decide to purchase Target and carried the operation immediately. The process is long and complicated and many times companies negotiate fair values and future cash flows. If you analyze the acquisition process of Whole Foods by Amazon it is very interesting. After negotiations Amazon paid 4 times the capitalization value of Whole Foods.
Before the actual process ends, Acquirer should present a pro forma statement and it must include all the relevant issues about the merger. They already know how much the transaction will cost, what actions will be taken to increase profits and any other major event.
An American currency dealer has good credit and can borrow either $1,000,000 or €800,000 for one year. The one-year interest rate is i$ = 2% in the U.S. and i€ = 6% in the euro zone, respectively. The spot exchange rate is $1.25 = €1.00 and the one-year forward exchange rate is $1.20 = €1.00. Show how you can realize a certain dollar profit via covered interest arbitrage.
a. Borrow $1,000,000 at 2%; trade $1,000,000 for €800,000 at the spot rate; invest euros at i€= 6%;translate euro proceeds back to dollars at the forward rate of $1.20 = €1.00. Gross proceeds will be $1,017,600.
b. Borrow $1,000,000 at 2%; trade $1,000,000 for €800,000 at the spot rate; invest euros at i€= 6%;translate euro proceeds back to dollars at the forward rate of $1.20 = €1.00. Net profit will be $17,600.
c. Borrow €800,000 at i€= 6%;translate euros to dollars at the spot rate, invest dollars in the U.S. at i$ = 2% for one year; translate dollars back to €850,000 at the forward rate of $1.20 = €1.00. Net profit will be €2,000.
d. Borrow €800,000 at i€= 6%;translate euros to dollars at the spot rate, invest dollars in the U.S. at i$ = 2% for one year; translate dollars back to €848,000 at the forward rate of $1.20 = €1.00. Net profit will be $2,400.
Answers
Answer:
c. Borrow €800,000 at i€= 6%;translate euros to dollars at the spot rate, invest dollars in the U.S. at i$ = 2% for one year; translate dollars back to €850,000 at the forward rate of $1.20 = €1.00. Net profit will be €2,000.
Explanation:
borrow 800,000€ today and purchase $1,000,000
invest the $1,000,000 and get $1,020,000 in one year
purchase back $1,020,000 / $1.20 = 850,000€
pay your loan resulting in a = 850,000€ - (800,000€ x 1.06) = 850,000€ - 848,000€ = 2,000€ gain
if you borrow $1,000,000 and purchase 800,000€
invest 800,000€ and get 848,000€ in one year
purchase back 848,000€ x 1.2 = $1,017,600
pay your loan back = $1,017,600 - ($1,000,000 x 1.02%) = $1,017,600 - $1,020,000 = -$2,400 loss
Which of the following statements about normal costing is not true? Group of answer choices Manufacturing overhead is allocated using budgeted rate and actual cost allocation base used. Direct costs and indirect costs are traced using an actual rate. Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate. Manufacturing overhead is allocated using budgeted rate and budgeted cost allocation base. Direct costs and indirect costs are traced using budgeted rates. Direct costs are traced using a budgeted rate, and indirect costs are allocated using an actual rate.
Answers
Answer:
Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate
Explanation:
Normal costing refers to the actual cost of direct materials, direct labor, and manufacturing overhead applied. This cost is calculated by using a predetermined annual overhead rate.
Direct costs are expenses involved in producing goods or providing services and indirect costs are general expenses that are involved in operating.
The statement about normal costing which is not true is ''Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate''
Prepare summary journal entries to record the following transactions for a company in its first month of operations. a. Raw materials purchased on account, $98,000. b. Direct materials used in production, $41,500. Indirect materials used in production, $18,800. c. Paid cash for factory payroll, $45,000. Of this total, $33,000 is for direct labor and $12,000 is for indirect labor. d. Paid cash for other actual overhead costs, $8,125. e. Applied overhead at the rate of 125% of direct labor cost. f. Transferred cost of jobs completed to finished goods, $63,000. g1. Jobs that had a cost of $63,000 were sold. g2. Sold jobs on account for $90,000.
Answers
Answer and Explanation:
The Journal entries are prepared below:-
a. Raw materials inventory Dr, $98,000
To Accounts payable $98,000
(Being raw material is purchased on the account is recorded)
b. Work in process inventory Dr, 41,500
To Raw materials inventory $41,500
(Being direct material used is recorded)
Factory overhead Dr, 18,800
To Raw materials inventory $18,800
(Being indirect material used is recorded)
c. Work in process inventory Dr, $45,000
Factory overhead Dr, $33,000
To Cash $78,000
(Being cash paid is recorded)
d. Factory overhead Dr, $8,125
To Cash $8,125
(Being cash paid is recorded)
e. Work in process inventory Dr, $56,250 (45,000 × 125% )
To Factory overhead $56,250
(Being overhead is recorded)
f. Finished goods inventory Dr, $63,000
To Work in process inventory $63,000
(Being transferred cost is recorded)
g, Cost of goods sold Dr, $63,000
To Finished goods inventory $63,000
(Being cost of goods sold is recorded)
Accounts receivable Dr, $90,000
To Sales $90,000
(Being sales value is recorded)
Hudek Inc., a manufacturing Corporation, has provided the following data for the month of July. The balance in the Work in Process inventory account was $20,000 at the beginning of the month and $10,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $50,000 and direct labor cost of $22,000. The actual manufacturing overhead cost incurred was $58,000. The manufacturing overhead cost applied to Work in Process was $56,000. The cost of goods manufactured for July was:
Answers
Answer:
$138,000
Explanation:
The computation of cost of goods manufactured for July is shown below:-
Cost of goods manufactured for July = Opening work in progress + Direct material + Direct labor + Manufacturing cost - Closing work in progress
= $20,000 + $50,000 + $22,000 + $56,000 - $10,000
= $148,000 - $10,000
= $138,000
Therefore for computing the cost of goods manufactured for July we simply applied the formula.
Accounts payable 448 394 Accounts receivable 1,292 840 Accumulated depreciation 6,758 6,642 Cash & equivalents 236 138 Common stock 1,196 1,130 Cost of goods sold 1,500 n.a. Depreciation expense ? n.a. Common stock dividends paid ? n.a. Interest expense 140 n.a. Inventory 1,026 1,036 Addition to retained earnings 602 n.a. Long-term debt 824 746 Notes payable 230 380 Gross plant & equipment 10,260 10,000 Retained earnings 3,074 2,486 Sales 3,018 n.a. Other current liabilities 116 96 Tax rate 34 % n.a. Market price per share – year end $ 19.80 $ 17.50 Number of shares outstanding 500 million 500 million
Answers
Answer:
a. Year 2 ICR = 10.01
Year 1 ICR = 10.81
b. Year 2 ACP = 566 days
Year 1 ACP = 187 days
c.Year 2 current ratio = 4.53
Year 1 current ratio = 4.11
d. Year 2 Quick ratio = 2.71
Year 1 Quick ratio = 2.00
Explanation:
Note: This question is not complete and the data in it are merged together. The complete question is therefore provided before answering the question. Please, see the attached pdf file for the complete question and the sorted data.
Also note: See the attached pdf file for the explanation of the answer.
Leo Consulting enters into a contract with Highgate University to restructure Highgate’s processes for purchasing goods from suppliers. The contract states that Leo will earn a fixed fee of $25,000 and earn an additional $10,000 if Highgate achieves $100,000 of cost savings. Leo estimates a 50% chance that Highgate will achieve $100,000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract?
Answers
Answer:
The transaction price would Leo estimated for this contract is $30,000
Explanation:
The computation of the transaction price is shown below:
= (Fixed fee + additional amount) × chance + fixed fee × chance
= $35,000 × 50% + $25,000 × 50%
= $17,500 + $12,500
= $30,000
hence, the transaction price would Leo estimated for this contract is $30,000
We simply applied the above formula so that the correct answer could come
XYZ Corporation has a 6 1/2% convertible bond outstanding that is convertible into 40 shares of common stock. The bond is currently selling in the market at 85 ($850) and the common stock is selling at 21. The XYZ Corporation is offering its existing bondholders a new straight (nonconvertible) bond paying 6 1/2% that matures at the same time as the convertible bond. The effect of the successful completion of the proposal would be to:_________
a) Reduce interest costs
b) Reduce potential dilution
c) Have no effect on interest costs
d) Increase dilution
Answers
Answer:
b) Reduce potential dilution
c) Have no effect on interest costs
Explanation:
Since in the question it is mentioned that the corporation is offering its existing bondholders for paying 6 1/2% this matured at the same time just like the convertible bond.
So here if the proposal is completed so the impact would be reduction in the potential dilution also it would not have impact on the effect on the interest rate and the same is to be considered
Rearrange the following steps in the accounting cycle in proper sequence: a. A post-closing trial balance is prepared. 3 b. Adjustment data are asssembled and analyzed. c. Adjusting entries are journalized and posted to the ledger. d. An adjusted trial balance is prepared. e. An optional end-of-period spreadsheet is prepared. f. An unadjusted trial balance is prepared. g. Closing entries are journalized and posted to the ledger. h. Financial statements are prepared. i. Transactions are analyzed and recorded in the journal. j. Transactions are posted to the ledger.
Answers
Answer:
The Accounting Cycle of a Business refers to the entire process of accounting for the transactions in the business from the moment the company begins a new transaction to the end of the period where it is aggregated into other accounts and presented to relevant stakeholders.
There are 10 steps to this cycle and they are;
Transactions are analyzed and recorded in the journal. Transactions are posted to the ledger An unadjusted trial balance is prepared Adjustment data are assembled and analyzed An optional end-of-period spreadsheet is preparedAdjusting entries are journalized and posted to the ledger An adjusted trial balance is prepared Financial statements are prepared Closing entries are journalized and posted to the ledger A post-closing trial balance is preparedi ⇒ j ⇒ f ⇒ b ⇒ e ⇒ c ⇒ d ⇒ h ⇒ g ⇒ a
Lovely Company offers a 2-year warranty on its product and as of 1/1/2018 Lovely’s warranty liability had an overall balance of $415. During 2018 Lovely sold 1,600 units of inventory at a selling price of $125 per unit and repaired 62 units under warranty at a total repair cost to Lovely of $740. When accounting for warranty cost, Lovely studies prior year customer claims as well as projected labor and material costs and for 2018, Lovely estimated that 4% of the units sold in 2018 would break over the 2-year warranty period at an estimated repair cost of $12.50 per unit. What amount should Lovely report at 12/31/2018 as warranty liability
Answers
Answer:
$475
Explanation:
the summary journal entry to record sales revenue and warranty expense during 2018:
Dr Cash 200,000
Cr Sales revenue 200,000
Dr Warranty expense 800
Cr Warranty liability 800
The journal entry to account for actual warranty costs:
Dr Warranty liability 740
Cr Cash (or wages payable or inventory) 740
the December 31, 2018 balance of warranty liability = initial balance + warranty liability associated to 2018 sales - incurred warranty costs = $415 + $800 - $740 = $475
Erics - Automotive Final Exam
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Exacto Company reported the following net income and dividends for the years indicated:
Year Net Income Dividends
20X5 $35,000 $12,000
20X6 45,000 20,000
20X7 30,000 14,000
True Corporation acquired 75 percent of Exacto’s common stock on January 1, 20X5. On that date, the fair value of Exacto’s net assets was equal to the book value. True uses the equity method in accounting for its ownership in Exacto and reported a balance of $259,800 in its investment account on December 31, 20X7.
Required
a. What amount did True pay when it purchased Exacto’s shares?
b. What was the fair value of Exacto’s net assets on January 1, 20X5?
c. What amount was assigned to the NCI shareholders on January 1, 20X5?
d. What amount will be assigned to the NCI shareholders in the consolidated balance sheet pre-pared at December 31, 20x7?
Answers
Answer:
A. $211,800
B. $282,400
C. $70,600
D. $ 86,600
Explanation :
A. Calculation for the amount that True pay when it purchased
Balance in investment account, December 31, 20x7$259,800
Cumulative earnings since acquisition$110,000
(35,000+45,000+30,000)
Less Cumulative dividends since acquisition(46,000)
(12,000+20,000+14,000)
Total $64,000
(110,000-46,000)
Proportion of stock held by True Corporationx 0.75
Total amount debited to Investment account(48,000)
(0.75*64,000)
Purchase amount on January 1, 20X5 $211,800
(259,000-48,000)
B. Calculation for fair value of Exacto’s net assets on January 1, 20X5
True Corporation’s Purchase amount $211,800
÷True Corp.’s percentage 0.75
Fair Value of Exacto Company’s Net Assets $282,400
C. Calculation for the amount that was assigned to the NCI shareholders on January 1, 20X5
Fair Value of Exacto Company’s Net Asset$282,400
× Exacto Company’s percentage 0.25
(100%-75%)
NCI’s portion $70,600
D. Calculation for the amount that will be assigned to the NCI shareholders
True Corp’s investment balance$259,800
÷True Corp’s percentage0.75
=Fair Value of Exacto’s Net Assets 20X7 $346,400
×Exacto Company’s percentage 0.25
(100%-75%)
NCI’s Portion, December 31, 20X7 $ 86,600
($346,400×0.25)
As organizations expand into global markets, business communicators need to become aware of their own culture and how it differs from other cultures. Cultural awareness allows professionals to communicate successfully with other cultures and to navigate the intercultural challenges of a globalized business world. The first step in overcoming intercultural obstacles is understanding the trends that drive globalization.
Identify the trend illustrated by the following example.
A U.S. retailer of high-tech products looks to open stores in Russia where there has been a surge in demand for smartphones and tablet computers.
A) Favorable trade agreements
B) Robust middle-class growth
C) Transportation advancements
Answers
Answer:
Option C (Robust middle-class growth) seems to be the correct option.
Explanation:
We will construct a convincing hypothesis of middle-class development by culling through canonical academics as well as contemporary scholars. Stable demand, confidence, political stability, and a collection of respectable, forward-looking liberal as well as proto-capitalist practices are the main structures of middle-class-led growth.Some other possibilities given weren’t connected to the instance given. So, the solution here is the best one.
Spaceley’s Sprockets has just developed a new product. George Jetson, the Head of Product Development, feels that the product is a winner, but he also feels it would be an even better product if waited six more months for further development before launching. Unfortunately, Spaceley’s closest competitor, Cogsley Cogs, has a similar product in the development pipeline. George feels that if he launches the product now to get a head start on Cogsley, he has a 50% chance of achieving a high level of sales, a 30% chance of a medium level of sales, and a 20% chance of a low level of sales. If he waits, he has a 30% chance of a high level of sales, and a 70% chance of a medium level of sales, with no chance of a low level of sales. High sales represents 100,000 units, medium sales represents 65,000 units, and low sales represents 10,000 units. If his objective is to maximize his expected number of units sold, what should George do and how many units would he be expected to sell
Answers
Answer:
George should wait for six more months for further development before launching.
Total units expected to be sold by this time is 75500 units
Explanation:
when launched early
Spaceley has : 50% of high level sale, 30% chance of medium level sale
20% chance of low level sale
When launched late
Spaceley has : 30% of high level sale, 70% of medium level sale, o% of low level sale
while
High sales = 100000
Medium sale = 65000
low level sale = 10000
A) when launched early
50% * 100000 = 50000
30% * 65000 = 19500
20% * 10000 = 2000
Total sales = 71500 units
B) when launched after 6 months
30% * 100000 = 30000
70% * 65000 = 45500
Total sales = 75500 units
George should wait for six more months for further development before launching.
Total units expected to be sold by this time is 75500 units
Meyer & Smith is a full-service technology company. They provide equipment, installation services as well as training. Customers can purchase any product or service separately or as a bundled package. Container Corporation purchased computer equipment, installation and training for a total cost of $144,000 on March 15, 2021. Estimated standalone fair values of the equipment, installation, and training are $90,000, $60,000, and $30,000 respectively. Determine The transaction price allocated to equipment is The transaction price allocated to installation is The transaction price allocated to training is Express your answer as an integer without $ sign (Round all computations to the nearest dollar. For example, input "100,000" if your answer is $100,000.22).
Answers
Answer & Explanation:
If the services were sold separately, their total cost would be;
= 90,000 + 60,000 + 30,000
= $180,000
They were instead bundled together and sold for $144,000
The cost of the individual services will therefore be a proportion of this bundled price based on their proportion were they sold alone.
The transaction price allocated to equipment;
= (90,000/180,000) * 144,000
= $72,000
The transaction price allocated to installation;
= (60,000/180,000) * 144,000
= $48,000
The transaction price allocated to training;
= (30,000/180,000) * 144,000
= $24,000
You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of .6 percent per year, compounded monthly for the first six months, increasing thereafter to 17.5 percent compounded monthly. Assume you transfer the $6,500 balance from your existing credit card and make no subsequent payments. How much interest will you owe at the end of the first year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answers
Answer:
Total interest paid = $606.63
Explanation:
First calculate the monthly payment for first six months
Monthly interest for first 6 months =.006/12=.0005
= 6500*(1.0005)^6
=6519.52
Interest rate for next six months
=17.37%/12=1.45%
(1.0145)^6=1.090054
=6519.52*(1+.0145)^6
=7106.63
Total interest paid = 7106.63-6500
Total interest paid = 606.63
I. Journalize the following transactions: 1. Madison Co. purchased $225,500 of raw materials on account. 2. Actual manufacturing overhead costs include: a. Utilities : $2,800 b. Depreciation on equipment: $12,650 c. Repairs on account: $3,200 d. Rent paid, $6,000 e. Insurance (prepaid policy): $3,350 3. Madison Co. issued $75,500 of material to Process A. 4. Assigned $18,000 is factory labor, of which $12,000 is indirect labor 5. Manufacturing Overhead costs are applied at 82% of material issued 6. Balance in WIP – A is transferred to Process –B 7. $51,000 of material is issued to Process – B 8. Assigned $22,000 of factory labor, of which $15,000 is indirect labor 9. Manufacturing overhead costs are applied to Process B at a rate of 62.5% of material issued (to process B) 10. Actual manufacturing overhead costs paid totaled $39,500; manufacturing overhead costs charged to accounts payable totaled $1,500 11. Balance of Process B is transferred to Finished Goods 12. The cost transferred to finished goods included 62,500 units. Calculate the cost per unit (round to hundredths); Madison Co. sold 13,250 units for $79,000 cash; they sold 4,125 units for $24,500 on account 13. Determine over or under-applied manufacturing overhead and prepare adjusting entry.
Answers
Answer and Explanation:
Dr raw materials 225000
Cr accounts payable 225000
Dr wages 40000
Cr materials 40000
Dr manufacturing overhead 28000
Cr cash 2800
Cr accumulated depreciation 12650
Cr rent 3200
Cr repairs 6000
Cr prepaid insurance 3350
Work in progress A Dr 75500
Raw material Cr 75500
Work in progress A Dr 6000
Manufacturing overhead Dr 12000
Wages Cr 18000
Work in progress A Dr 61910
Manufacturing overhead cr 61910
cash dr 79500
account receivable dr 24500
Sales cr 104000
cost of goods Dr 64853
Finished goods Cr 64853
Manufacturing overhead Dr 9785
Cost of goods sold Cr 9785
Note
Work in progress A to overhead calculated 82% of 79500=61910
Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. As a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only thing to be changed. The bakery makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor-hour, how many workers will lackey need to add?
Answers
Answer:
It would take is one worker to finish it. The further explanation is given below.
Explanation:
The given value are:
Complete loaves for every hour of labor
= 2.244
Each employee who works every month.
= 160 hours
Monthly output of one worker will be:
= [tex]Total \ loaves\times Total \ hours[/tex]
= [tex]2.344\times 160[/tex]
= [tex]375.04 \ loaves[/tex]
The increased competition, as we know, seems to be "25%" of 1,500 loaves every month.
= [tex]1500\times 25 \ percent[/tex]
= [tex]375[/tex]
= [tex]\frac{375}{375.04}[/tex]
= [tex]0.99[/tex]
Throughout preparation around for job to be completed, Lackely would need to employ another worker although one worker's monthly output is equivalent to 375.04 loaves as well as the minimum additional loaves every month becomes 375, so what it would take is one worker to finish it.
Tanya Fletcher owns undeveloped land (adjusted basis of $80,000 and fair market value of $92,000) on the East Coast. On January 4, 2017, she exchanges it with Lisa Martin (an unrelated party) for undeveloped land on the West Coast and $3,000 cash. Lisa has an adjusted basis of $72,000 for her land, and its fair market value is $89,000. As the real estate market on the East Coast is thriving, on September 1, 2018, Lisa sells the land she acquired for $120,000.If an amount is zero, enter "0".a. On January 4, 2017, Tanya's realized gain for the West Coast land is $, her recognized gain is $, and her adjusted basis is $.b. On January 4, 2017, Lisa's realized gain for the East Coast land is $, her recognized gain is $, and her adjusted basis is $.c. Lisa's realized gain from the September 1, 2018, sale is $. Her recognized gain from the September 1, 2018 sale is$.d. What effect does Lisa's 2018 sale have on Tanya?Lisa’s sale of the East Coast land has for Tanya.e. Complete the letter to Tanya advising her of the tax consequences of this exchange.
Answers
Answer:
Following are the solution to the given point:
Explanation:
In point a:
Sum of:
= ($89,000 + $3,000)
= $92,000
Modified foundation= -$80,000
A real profit= $12,000
Gain (boot received) recognised = $3,000
Tanya's West Coast Changed Base:
Fair Market = $89,000
Posted benefit:
= ($ 12,000- $ 3,000)
= $ 9,000
Adjusted Base =$80,000
In part b:
Realized benefit calculation:
Sum of = $92,000
Modified Base =$72,000 + $3,000 = $75,000
A real profit= $17,000
gain was accepted = $0
Changed base of Martin to the West Coast:
Fair Market = $92,000
Gain deferred = ($17,000-$0) = $ 17,000
Adjusted Base = $75,000
In point c:
Recognized benefit from Martin:
Value = $1,20,000
Base adjusted= $ 75,000
actual gain = $45,000
Gain Recognized= $45,000
In point d:
Tanya has little effect mostly on selling by Lisa of an eastern seaboard ground. There is no supposed selling care among Lauren and Tanya after selling property on the eastern seaboard since they are unrelated parties.
In point e:
sum of = $92,000.
Tanya 's acceptable basis is $80,000 ($89,000-($12,000-$3,000)).
actual benefit = $ 12,000
gain benefit = $3,000
Since the trade is deemed a non-taxable trade, $3,000 is recognized of the total $12,000 benefit. Its ground earned is $80,000 adjusted.
Your company has a line of credit through a local bank. The bank requires a 6% compensating balance and charges 12% on the amount borrowed against the line. If the company needs $100,000 to purchase inventory, find the amount it should borrow, and calculate the effective annual rate on the loan (b) You’ve worked out a line of credit arrangement that allows you to borrow up to $100 million at any time. The interest rate is 0.4 percent per month. In addition, 5% of the amount that you borrow must be deposited in a non-interest bearing account (i.e. a compensating balance). Assume that your bank uses compound interest on its line of credit loans. What is the effective annual rate (EAR) on the loan? W
Answers
Answer:
A) 19.15%
B) 68.53%
Explanation:
as it requires 6% of compensating balance the company you ask for:
$100,000 / (1 - 6%) = 106.382,98
Now we solve for the effective rate.
106,382.98 x (1 + 0,12) = 100,000 x (1 + r)
r = 119.148,93/100,000 - 1 = 0,1914893
B) we do the same procedure as the previous one
[tex]1/(0,95) (1+0.04)^{12} = 1+r_e[/tex]
re 0,685297072
Hey guys i dont know who to vote for plz give me suggestions and reasons why
Answers
Answer:
me ig im just trying to get more points and brainliest
Explanation:
also im nice :) when people are not rude to me
Which of the following provides the correct sequence in the marketing research process? 1. defining the problem, analyzing the situation, getting problem-specific data, interpreting the data, solving the problem 2. analyzing the situation, defining the problem, getting problem-specific data, interpreting the data, solving the problem 3. getting problem-specific data, interpreting the data, defining the problem, solving the problem, analyzing the situation 4. analyzing the situation, getting problem-specific data, interpreting the data, defining the problem, solving the problem 5. getting problem-specific data, interpreting the data, analyzing the situation, defining the problem, solving the problem
Answers
Answer:
Marketing Research Process
The correct sequence is:
1. defining the problem, analyzing the situation, getting problem-specific data, interpreting the data, solving the problem
Explanation:
A good market research process requires a clear definition of the research problem. This definition is required to focus the research efforts on the identified problem.
Secondly, the situation must be analyzed to enable the development of a good marketing plan, which is the fulcrum of the research.
The third stage is the collection of relevant data that are problem-specific because only relevant data can solve the research questions.
At the fourth stage, the carefully selected and collected data are then analyzed and interpreted in order to create understanding of the issues and help point to solutions based on findings.
Finally, the need to put the identified solutions into action becomes imperative. Information discovered during the research must be put into action to resolve the problem.