A review of current distribution procedures reveals that the Valley Voice employs 100 truck drivers to drop off bundles of newspapers to 1,300 teenagers who deliver papers to individual homes. The drivers are paid an hourly wage while the teenagers receive 4 cents for each paper they deliver.

Turkey is considering an alternative method of distributing the papers, which he says has worked in other cities the size of Flower Mound (where the Valley Voice is published). Under the new system, the newspaper would retain 20 truck drivers to transport papers to five distribution centers around the city. The distribution centers are operated by independent contractors who would be responsible for making their own arrangements to deliver papers to subscribers’ homes. The 20 drivers retained by the Valley Voice would receive the same hourly rate as they currently earn, and the independent contractors would receive 20 cents for each paper delivered.

Required:
1. What payroll information does Turkey need in order to make a decision about adopting the alternative distribution method?
2. Assume the following information:

a. The average driver earns $42,000 per year.
b. Average employee income tax withholding is 15 percent.
c. The social security tax is 6.2 percent of the first $122,700 of earnings.
d. The Medicare tax is 1.45 percent of all earnings.
e. The state unemployment tax is 5 percent, and the federal unemployment tax is 0.6 percent of the first $7,000 of earnings.
f. Workers’ compensation insurance is 70 cents per $100 of wages.
g. The paper pays $300 per month for health insurance for each driver and contributes $250 per month to each driver’s pension plan.
h. The paper has liability insurance coverage for all teenage carriers that costs $100,000 per year.

3. Prepare a schedule showing the costs of distributing the newspapers under the current system and the proposed new system. Based on your analysis, which system would you recommend to Turkey?
4. What other factors, monetary and nonmonetary, might influence your decision?

Question Completion:

The Valley Voice is a local newspaper that is published Monday through Friday. It sells 90,000 coples dally. The paper is currently in a profit squeeze, and the publisher, Tom Turkey, Is looking for ways to reduce expenses.

Answer:

Valley Voice

1. It needs to know the total costs incurred under the old system and the new system.

2. See schedules below showing the costs under the two distribution systems.

3. The old system wins under economic considerations, especially given the fact that the publisher is currently experiencing profit squeeze.

4. If the amount paid per paper to the independent contractors can be renegotiated downwards, this may change the decision.  With the new arrangement, will more papers be sold each day?  Labor practices and laws do not favor the use of teenagers as workers.  Will the company face some penalties or sanctions as a result?  What about the bad publicity that the paper will face as a backlash following the use of teenagers?  There are other considerations.

Explanation:

a) Data and Calculations:

Number of copies daily = 90,000

Number of copies yearly = 32,850,000 (90,000 * 365 days)

Average annual salary of a driver = $42,000

Total annual salary of drivers = $4,200,000

Average employee income tax withholding = 15%

Social security tax = 6.2% of the first $122,700 of earners

Medicare tax = 1.45% all earnings

State Unemployment tax = 5%

Federal Unemployment tax  = 0.6% of the first $7,000 of earnings

Workers' compensation insurance = 0.7% ($0.70 per $100 of wages)

Health insurance for each driver = $3,600 ($300 * 12)

Pension Plan = $3,000 ($250 * 12)

Liability insurance coverage for all teenage carriers = $100,000 per year

Total cost under the old system:

Total annual salary of drivers ($42,000 * 100)         $4,200,000

Social security tax = 6.2% of the first $122,700 =              7,607

Medicare tax = 1.45% all earnings =                                 60,900

State Unemployment tax = 5%                                       105,000 (1/2)

Federal Unemployment tax  = 0.6% of the first

$7,000 of earnings ($700,000 * 0.6%)                            4,200

Workers' compensation insurance = 0.7%

($0.70 per $100 of wages)  ($4,200,000 * 0.7%)         29,400

Health insurance for each driver = $3,600 * 100

($300 * 12)                                                                    360,000

Pension Plan = $3,000 ($250 * 12) $3,000 * 100       300,000

Liability insurance coverage

for all teenage carriers = $100,000 per year             100,000

Payment to teenage carriers ($0.04 * 32,850,000) 1,314,000

Total payroll cost                                                      $6,481,100

Total cost under the new arrangement:

Total annual salary of drivers ($42,000 * 20)         $840,000

Social security tax = 6.2% of the first $122,700 =          7,607

Medicare tax = 1.45% all earnings =                              12,180

State Unemployment tax = 5%                                    21,000 (1/2)

Federal Unemployment tax  = 0.6% of the first

$7,000 of earnings ($700,000 * 0.6%)                       4,200

Workers' compensation insurance = 0.7%

($0.70 per $100 of wages)  ($840,000 * 0.7%)          5,880

Health insurance for each driver = $3,600 * 20

($300 * 12)                                                                 72,000

Pension Plan = $3,000 ($250 * 12) $3,000 * 20     60,000

Payment to contractors ($0.20 * 32,850,000)  6,570,000

Total payroll cost                                               $7,592,867

Kim's Bridal Shoppe has 10,400 shares of common stock outstanding at a price of $38 per share. It also has 225 shares of preferred stock outstanding at a price of $89 per share. There are 540 bonds outstanding that have a coupon rate of 5.7 percent paid semiannually. The bonds mature in 19 years, have a face value of $1,000, and sell at 94 percent of par. What is the capital structure weight of the common stock

Oering's Furniture Corporation is a Virginia-based manufacturer of furniture. In a recent year, it reported the following activities:

Net income $5,135
Purchase of property, plant, and equipment 1,071
Borrowings under line of credit (bank) 1,117
Proceeds from issuance of stock 11
Cash received from customers 37,164
Payments to reduce long-term debt 46
Sale of marketable securities 219
Proceeds from sale of property and equipment 6,894
Dividends paid 277
Interest paid 90
Purchase of treasury stock (stock repurchase) 2,583

Required:
Based on this information, present the cash flows from investing and financing activities sections of the cash flow statement. (List cash outflows as negative amounts.)

Exercise
1. State and explain 5 characteristics of the
youth​

What is demand curve? (Gradpoint)

The students have to create their assignment reports using a word processing program. Some of the questions in their assignment involve comparison between different items. Which function of a word processing program will be the most useful to present this information?
The ______ function of a word processing program will be the most useful for comparison.

Assume a central bank follows a rule that requires it to take steps to keep the price level constant. If the long run price level fell because of a decrease in aggregate demand and a subsequent increase in short run aggregate supply that kept output unchanged, then Question 5 options: a) the central bank would have to decrease the money supply which would decrease output. b) the central bank would have to increase the money supply which would decrease output. c) the central bank would have to increase the money supply which would increase output. d) the central bank would have to decrease the money supply which would increase output.

what is jute sacks ?​

Demmert Manufacturing incurred the following expenditures during the current fiscal year: annual maintenance on its equipment, $5,600; remodeling of offices, $22,200; rearrangement of the shipping and receiving area resulting in an increase in productivity, $35,200; addition of a security system to the manufacturing facility, $25,200.How should Demmert account for each of these expenditures

Before an interview, you should perform a self-assessment to:
A. review your strengths, weaknesses, and career goals.
B. choose what you should study in college.
C. discover what you like to do.
D. find out what careers are right for you.
SUBMIT

The operating revenues of the three largest business segments for Time Warner, Inc., for a recent year follow. Each segment includes a number of businesses, examples of which are indicated in parentheses.
Time Warner, Inc.
Segment Revenues
(in millions)
Turner (cable networks and digital media) $21,700
Home Box Office (pay television) 22,200
Warner Bros. (films, television, and videos) 80,600
Assume that the variable costs as a percent of sales for each segment are as follows:
Turner 22%
Home Box Office 47%
Warner Bros. 32%
Determine the contribution margin and contribution margin ratio. Enter amounts in millions. When required, round to the nearest whole millionth (for example, round 5,688.7 to 5,689). Round contribution margin ratio to the nearest whole percent for each segment from the information given. Enter all amounts as positive numbers. 40% 35% 25% Turner Home Box Office Warner Bros. Revenues Variable costs Contribution margin Contribution margin ratio (as a percent) b. Does your answer to (b) mean that the other segments are more profitable businesses?

Beyer Company is considering the purchase of an asset for $245,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 9% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $ 76,000 $ 55,000 $ 82,000 $ 158,000 $ 37,000 $ 408,000 a. Compute the net present value of this investment. b. Should Beyer accept the investment

Like all companies, McDonald's needs to continue identifying, developing, and introducing new products. One recent concept McDonald's identified is a vegan burger. After assessing the concept, McDonald's research and development kitchen developed a vegan burger that they felt would be appealing to the 13% of Americans that are vegetarian or vegan. Before rolling the vegan burger out, McDonald's wanted to examine the viability in the real world, but on a limited basis. McDonald's next step should be to ________ the vegan burger.

a. test market
b. concept test
c. field exam
d. commercialize

The Jenkins Corporation has purchased an executive jet. The company has agreed to pay $200,000 per year for the next 10 years and an additional $1,000,000 at the end of the 10th year. The seller of the jet is charging 6% annual interest. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Determine the liability that would be recorded by Jenkins.'

Crane Company estimates its sales at 80000 units in the first quarter and that sales will increase by 8000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at

Jane Tucker is the ethics officer for a publicly traded company. She is concerned that the company does not have a mechanism for anonymous reports of issues by employees. The CEO is not inclined to spend the money required to set up a hotline or any other reporting mechanism. Which of the following statements is true about this situation?
A) ​As long as the company has an ethics officer to whom employees can report concerns, it has done everything necessary to enjoy the protections under the Federal Sentencing Guidelines.
B) ​With Jane as an ethics officer and adding in a code of ethics, the company has met the two required prongs for the Federal Sentencing Guidelines.
C) Without an anonymous reporting system, the company does not meet the minimum requirements for the protections of the Federal Sentencing Guidelines.
D) The Federal Sentencing Guidelines protections do not apply to publicly traded companies under Dodd-Frank.

Sunland Company received proceeds of $664000 on 10-year, 6% bonds issued on January 1, 2019. The bonds had a face value of $704000, pay interest annually on December 31, and have a call price of 105. Sunland uses the straight-line method of amortization. What is the amount of interest expense Sunland will show with relation to these bonds for the year ended December 31, 2020

Last year (2016), Sarasota Condos installed a mechanized elevator for its tenants. The owner of the company, Ron Richter, recently returned from an industry equipment exhibition where he watched a computerized elevator demonstrated. He was impressed with the elevator's speed, comfort of ride, and cost efficiency. Upon returning from the exhibition, he asked his purchasing agent to collect price and operating cost data on the new elevator. In addition, he asked the company’s accountant to provide him with cost data on the company’s elevator. This information is presented below.:

Old Elevator New Elevator
Purchase price $103,500 $159,000
Estimated salvage value 0 0
Estimated useful life 5 years 4 years
Depreciation method Straight-line Straight-line
Annual operating costs
other than depreciation:
Variable $34,000 $11,000
Fixed 23,900 8,200

Annual revenues are $241,000, and selling and administrative expenses are $30,000, regardless of which elevator is used. If the old elevator is replaced now, at the beginning of 2017, Bramble Condos will be able to sell it for $25,900.

Required:
Determine any gain or loss if the old elevator is replaced.

Why is having a long credit history with a few blemishes that were corrected better than a short history that is clear? edg

Karen, Kelsey, Rita, and Lizzi own a large commercial building as concurrent owners. They are tenants with the right to survivorship. Lizzi transfers her one-quarter interest in the building to a private charity organization owned by Stella. Which form of concurrent ownership would allow Karen, Kelsey, and Rita to become the owners of the property following Lizzi's death without the inclusion of the private charity organization run by Stella?
a) a tenancy in common
b) a tenancy by entirety
c) a joint tenancy
d) a community property

Juan and Carl have a small medical practice that operates as a partnership. Juan does 70% of the work and Carl does 30%. However, Carl invested 60% of the money required to start the business. If the company makes $100,000 in profit this year, how much will each partner receive?
a. Juan will receive $70,000; Carl will receive $30,000.
b. Juan will receive $50,000; Carl will receive $50,000.
c. Juan will receive $40,000; Carl will receive $60,000.
d. Juan will receive $60,000; Carl will receive $40,000.
e. Profits will be shared in the proportion specified in the partnership agreement.

Why is the act of falsifying company records not in line with good business
ethics?
O A. Because it shows aggression
O B. Because it doesn't show teamwork
O C. Because it harms other individuals
O D. Because it shows lack of honesty
SUBMIT
PREVIOUS
US

Kyoko is a hard-working college senior. One Saturday, she decides to work nonstop until she has answered 150 practice problems for her math course. She starts work at 8:00 AM and uses a table to keep track of her progress throughout the day. She notices that as she gets tired, it takes her longer to solve each problem.
Time
Total Problems Answered
8:00 AM 0
9:00 AM 60
10:00 AM 105
11:00 AM 135
Noon 150
Use the table to answer the following questions.
The marginal, or additional, benefit from Kyoko’s second hour of work, from 9:00 AM to 10:00 AM, is
45
problems.
The marginal benefit from Kyoko’s fourth hour of work, from 11:00 AM to noon, is
15
problems.
Later, the teaching assistant in Kyoko’s math course gives her some advice. “Based on past experience,” the teaching assistant says, “working on 52.5 problems raises a student’s exam score by about the same amount as reading the textbook for 1 hour.” For simplicity, assume students always cover the same number of pages during each hour they spend reading.
Given this information, in order to use her 4 hours of study time to get the best exam score possible, how many hours should she have spent working on problems, and how many should she have spent reading?

1 hour working on problems, 3 hours reading
2 hours working on problems, 2 hours reading
3 hours working on problems, 1 hour reading
4 hours working on problems, 0 hours reading

Josiah is training users to navigate Access forms. What is the best way to advance in the form to the next field?

Enter
Shift+Tab
Ctrl+Home
End

A company is considering replacing an old piece of machinery, which cost $105,000 and has $55,000 of accumulated depreciation to date, with a new machine that has a purchase price of $83,000. The old machine could be sold for $56,300. The annual variable production costs associated with the old machine are estimated to be $8,500 per year for eight years. The annual variable production costs for the new machine are estimated to be $5,000 per year for eight years.
a. Prepare a differential analysis dated April 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine.
b. What is the sunk cost in this situation?

McCoy's Fish House purchases a tract of land and an existing building for $930,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, McCoy pays closing costs, including title insurance of $2,300. The company also pays $12,600 in property taxes, which includes $8,300 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $4,300 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $46,500 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $3,600 and pays an additional $10,300 to level the land.

Required:
Determine the amount McCoy’s Fish House should record as the cost of the land.

In its first year of operations, Crane Company recognized $29,500 in service revenue, $6,100 of which was on account and still outstanding at year-end. The remaining $23,400 was received in cash from customers. The company incurred operating expenses of $15,500. Of these expenses, $12,010 were paid in cash; $3,490 was still owed on account at year-end. In addition, Crane prepaid $2,300 for insurance coverage that would not be used until the second year of operations.
1. Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting. 2. Which basis of accounting (cash or accrual) provides more useful information for decision-makers?

What does it mean if a company's website has a high bounce rate?
1. Potential customers who click on their ad are only visiting the company's home page.
2. Potential customers are not clicking on their ad and are instead clicking on the ads of their competitors.
3. Potential customers are clicking on their ad and the company's website is holding their interest enough for them to explore other page links.
4. The company's website ranks high in a search engine's unpaid results.
5. The company has successfully engaged customers to pass along information to other potential customers.

Overhead Application, Activity-Based Costing, Bid Prices Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is:
Purchasing $40,000
Setups 37,500
Engineering 50,000
Other 40,000
Previously, Sanjay Bhatt, Firenza Company's controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for overhead activities are purchase orders for purchasing, number of setups for setup cost, engineering hours for engineering cost, and machine hours for other. Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2,500 engineering hours. Sanjay has been asked to prepare bids for two jobs with the following information:
Job 1 Job 2
Direct materials $4,600 $9,340
Direct labor $1,200 $2,200
Number of purchase orders 15 20
Number of setups 3 4
Number of engineering hours 45 10
Number of machine hours 200 200
The typical bid price includes a 40 percent markup over full manufacturing cost.
Required:
1. Calculate a plantwide rate for Firenza Company based on machine hours.
2. Calculate activity rates for the four overhead activities. What is the bid price of each job using these rates?
3. Which bids are more accurate?

A new operating system for an existing machine is expected to cost $565,000 and have a useful life of six years. The system yields an incremental after-tax income of $165,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $25,000. A machine costs $410,000, has a $26,000 salvage value, is expected to last eight years, and will generate an after-tax income of $75,000 per year after straight-line depreciation. Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

Brussels Enterprises issues bonds at par dated January 1, 2020, that have a $2,000,000 par value, mature in four years, and pay 9% interest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1. 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2023 (assume semiannual interest is already recorded).