Answer:
See below
Explanation:
Total cost of equipment
Cash paid for equipment, including sales tax
$155,400
Freight and insurance cost while in transit
$2,960
Cost of moving equipment into place at factory
$4,588
Wage cost for technicians to test the new equipment
$5,920
Special plumbing fixtures required for new equipment
$11,840
Total cost of equipment
$180,708
Insurance premium paid reported in the profit and loss statement as insurance expense for $2,220
Repair cost of equipment reported in the profit and loss statement as repair and maintenance expense for $1,924
••All expenses up to put to use of fixed assets should be capitalized
Total cost of construction
Material and purchased price [$296,000 × 0.98]
$290,080
Labor cost
$281,200
Overhead cost
$74,000
Cost of installing equipment
$6,512
Total cost of construction
$651,792
•Material and purchase parts costs after discount is taken back because its cash equivalent price
•Inputted interest on funds used during construction(stock financing) is treated as opportunity cost and it should not be reported.
The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses:
North South
Sales $900,000 $800,000
Variable expenses 450,000 300,000
Traceable fixed expenses 260,000 210,000
Allocated common corporate expenses 240,000 190,000
Net operating income (loss) ($50,000) $100,000
Management at Kelsh is pondering the elimination of the North Division. If the North Division were eliminated, its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected.
Given this data, the elimination of the North Division would result in an overall company operating income of:
a. 50,000
b. 150,000
c. (140,000)
d. 100,000
Answer:
c. (140,000)
Explanation:
Effect on net income of dropping the North Division:
Sales $(900,000)
Variable expenses $450,000
Contribution margin $(450,000)
Traceable fixed expenses $260,000
Effect on net income ($190,000)
Since the North Division currently have Net operating income (loss) of ($50,000), so therefore, after dropping the North Division, the overall company net operating loss will be $140,000 ($50,000 - $190,000).
Berry Corp. is considering an investment with an initial cost of $250,000. Assume straight line depreciation with no salvage value is appropriate. The investment is expected to generate cash revenues of $200,000 and incur cash costs of $120,000 each year for the next four years. Assume straight line depreciation with no salvage value is appropriate. What is the investment's annual rate of return
Answer:
14%
Explanation:
Depreciation = Cost - Residual value / Useful life
Depreciation = ($250,000 - 0)/4
Depreciation = $62,500
Annual net earnings = Revenue - Cost - Depreciation
Annual net earnings = $200,000 - $120,000 - $62,500
Annual net earnings = $17,500
Annual rate of return = Annual net earnings / Average investment
Annual rate of return = $17,500/ [($250,000 + $0) /2]
Annual rate of return = $17,500 / $125,000
Annual rate of return = 0.14
Annual rate of return = 14%
A process control system costs $200,000, has a three year service life, and a salvage value of $20,000. Find the depreciation and book value for all three years using each of the following methods: a. Straight line depreciation (20 points) b. Sum of year digits depreciation (20 points) c. Double declining balance depreciation (20 points)
Answer:
A.
Depreciation expense each of the three years would be $60,000
Book value at the end of year 1 = $140,000
Book value at the end of year 2 =$80,000
Book value at the end of year 3 = $20,000
B.
Depreciation expense in year 1 =$90,000
Depreciation expense in year 2 =$60,000
Depreciation expense in year 3 =$30,000
Book value at the end of year 1 =$110,000
Book value at the end of year 2 = $50,000
Book value at the end of year 3 = $20,000
C.
Depreciation expense in year 1 = $133,333.33
Book value at the end of year 1 = $66,666.67
Depreciation expense in year 2 = $44,444.45
Book value at the end of year 2 = $22,222.22
Depreciation expense in year 3 = $14,814.16
Book value at the end of year 3 = $7,407.40
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($200,000 - $20,000) / 3 = $60,000
Depreciation expense each of the three years would be $60,000
Book value at the end of year 1 = $200,000 - $60,000 = $140,000
Book value at the end of year 2 = $140,000 - $60,000 = $80,000
Book value at the end of year 3 = $80,000 - $60,000 = $20,000
Sum-of-the-year digits = (remaining useful life / sum of the years ) x (Cost of asset - Salvage value)
Sum of the years = 1 + 2 + 3 = 6 years
Depreciation expense in year 1 = (3/6) x ($200,000 - $20,000) = $90,000
Depreciation expense in year 2 = (2/6) x ($200,000 - $20,000) = $60,000
Depreciation expense in year 3 = (1/6) x ($200,000 - $20,000) = $30,000
Book value at the end of year 1 = $200,000 - $90,000 = $110,000
Book value at the end of year 2 = $110,000 - $60,000 = $50,000
Book value at the end of year 3 = $50,000 - $30,000 = $20,000
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2/3
Depreciation expense in year 1 = (2/3) x $200,000 = $133,333.33
Book value at the end of year 1 = $200,000 - $133,333.33 = $66,666.67
Depreciation expense in year 2 = (2/3) x $66,666.67 = $44,444.45
Book value at the end of year 2 = $66,666.67 - $44,444.45= $22,222.22
Depreciation expense in year 3 = (2/3) x$22,222.22 = $14,814.16
Book value at the end of year 3 =$22,222.22 - $14,814.16 = $7,407.40
Calculate amortization expense
In early January, Burger Mania acquired 100% of the common stock of the Crispy Taco restaurant chain. The purchase price allocation included the following items: $4 million, patent; $5 million, trademark considered to have an indefinite useful life; and $6 million, goodwill. Burger Mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life.
What is the total amount of amortization expense that would appear in Burger Mania's income statement for the first year ended December 31 related to these items? (Enter your answers in dollars, not in millions.
Answer: $800,000
Explanation:
The total amount of amortization expense that would appear in Burger Mania's income statement for the first year ended December 31 related to these items will be:
Ammortization value = Patent value / Useful life
= $4,000,000 / 5
= $800,000
Therefore, the ammortization value is $800,000 per year.
Machinery purchased for $69,600 by Tamarisk Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,640 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $5,220 at the end of that time. Assume straight-line depreciation.
Prepare the entry to correct the prior years' depreciation, if necessary.
Prepare the entry to record depreciation for 2021.
Answer and Explanation:
The journal entries are shown below:
a. No journal entry is required
b. Depreciation expense $4,756
To Accumulated depreciation-Machinery $4,756
(Being depreciation expense is recorded)
Here the depreciation expense is debited as it increased the expense and credited the accumulated depreciation as it decreased the assets
Working
Accumulated depreciation is
= ($69,600 - $4,640 ÷ 8 × 5)
= $40,600
Now Revised depreciation is
= ($69,600 - $40,600 - $5,220) ÷ 5
= $4,756
"What are the results of a contractionary monetary policy, which intends to slow down the economy, and what are not? You are currently in a sorting module. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop. Is a result of a contractionary monetary policy (tight money policy) Is not a result of contractionary monetary policy (tight money policy)"
Answer:
Contractionary monetary policy usually results in:
lower money supplyhigher interest rateslower inflation rateslower investment rateslower nominal gross domestic producthigher unemploymentdecrease in consumer spendingaggregate demand curve shifts to the left
Answer: It can decrease inflation.
Explanation:
During 2022, Tamarisk, Inc. reported cash provided by operations of $826000, cash used in investing of $713000, and cash used in financing of $198000. In addition, cash spent on fixed assets during the period was $287000. Average current liabilities were $676000 and average total liabilities were $1785000. No dividends were paid. Based on this information, what was Tamarisk free cash flow? ($628000). $539000. ($150000). $113000.
Answer:
b. $539,000
Explanation:
Free cash flow = Cash flow from operating activities - Capital expenditures
Free cash flow = $826,000 - $287,000
Free cash flow = $539,000
Therefore, based on this information, Tamarisk Inc. free cash flow is $539,000
Wildhorse Co. had the following assets on January 1, 2022. Useful Life (in years) Item Cost Purchase Date Useful Life (in years) Salvage Value Machinery $68,000 Jan. 1, 2012 10 $ 0 Forklift 27,000 Jan. 1, 2019 5 0 Truck 33,400 Jan. 1, 2017 8 3,000 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $11,700. The truck was discarded on December 31. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Solution :
Journal Entry
Date Account and Explanation Debit Credit
1 Jan,2022 Accumulated depreciation-machine $ 68,000
Machine $ 68,000
30 June, Depreciation expense, [tex]$\left(\frac{27000}{5} \times \frac{6}{12}\right)$[/tex] $ 2700
2022 Accumulated depreciation- Forklift $ 2700
30 June, Cash $ 11,700
2022 Accumulated depreciation- Forklift, $ 18,900
[tex]$\left(\frac{27000}{5} \times 3.5 \right)$[/tex]
Gain on sale of forklift $ 3600
Forklift $ 27000
31 Dec, Depreciation expense, [tex]$\left( \frac{33400-3000}{8}\right)$[/tex] $ 3800
2022 Accumulated depreciation - Truck $ 3800
31 Dec, Accumulated depreciation - Truck, $ 22800
2022 [tex]$\left( \frac{33400-3000}{8} \times 6\right)$[/tex]
Loss on disposal of truck $ 10600
Truck $ 33400
A foreign branch bank operates like a local bank, but legally Group of answer choices a branch bank is subject to only the banking regulations of its home country and not the country in which it operates. it is a part of the parent bank. a branch bank is subject to both the banking regulations of its home country and the country in which it operates. it is a part of the parent bank, and a branch bank is subject to both the banking regulations of its home country and the country in which it operates.
Answer:
Foreign branch
This is usually refered to as legal and operational section (part)of the parent bank. It is said that creditors of the branch have full legal rights on the bank's assets in all and also creditors of the parent bank have hold/claims on its branches' assets.
A foreign branch bank operates like a local bank, but is legally part of the the parent.
A branch bank is subject to both the banking regulations of home country and the country in which it operates (foreign country)
Explanation:
Foreign Branches
A foreign branch bank is a branch of a bank in other country. It usually operates like a local bank even though they are a section or part of the the parent legally. Thehy abide by the rules and regulations of the banking regulations of home country and also that of foreign country which their operating is based (branched)
They are commonly known to give a wide and broad range of services than a representative office. Branch Banks are used by U.S. banks to expand overseas.
Wesley, who is single, listed his personal residence with a real estate agent on March 3 of the current year at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on August 16, he and the purchaser signed a contract to sell for $363,000. The sale (i.e., closing) took place on September 7. The closing statement showed the following disbursements:
Real estate agent's commission $21,780
Appraisal fee 600
Exterminator's certificate 300
Recording fees 800
Mortgage to First Bank 305,000
Cash to seller 34,520
Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2017, Wesley purchases another residence for $325,000.
a. Wesley's recognized gain on the sale is __________
b. Wesley's adjusted basis for the new residence is ___________
c. Assume instead that the selling price is $800,000.
Wesley's recognized gain is _____________, and his adjusted basis for the new residence is __________
Answer:
a. Wesley's recognized gain on the sale is $0.
b. Wesley's adjusted basis for the new residence is $325,000
c. Assume instead that the selling price is $800,000.
Wesley's recognized gain is $326,520, and his adjusted basis for the new residence is $325,000.
Explanation:
Wesley's actual gain = $363,000 - $21,780 - $600 - $300 - $800 - $200,000 = $139,520, but it can all be excluded using section 121.
If the selling price is $800,000;
Wesley's actual gain = $800,000 - $21,780 - $600 - $300 - $800 - $200,000 = $576,520, but he can exclude $250,000, so his recognized gain = $326,520
As a condition of being allowed to apply for a job with Good Hands Industries, Charles is asked to waive his right to object to workplace searches. After signing the waiver, he is offered a job, and he accepts it. Sometime later, he is subjected to a search. If Charles seeks legal redress on the grounds that the search violated his privacy rights, his employer:_________-
A. will be unable to successfully assert the waiver as a defense because it was not given voluntarily.
B. will be unable to successfully assert the waiver as a defense because Charles did not grant it intentionally.
C. will be unable to successfully assert the waiver as a defense because it was given by Charles prior to his job offer.
D. will be able to successfully assert the waiver as a defense because it was given in exchange for valuable consideration.
Answer:
The answer is C (will be unable to successfully assert the waiver as a defense because it was given by Charles prior to his job offer).
Explanation:
In the employment setting, there are instances where an employer could violate an employee privacy right. For instance, the Fourth Amendment’s prohibition on unreasonable search and seizure could be very strict on a public employer compared to a private employer where the private employers are given some degree of power too. Searching employees without their consent would be directly proportional to their breach of privacy that they have right to. Charles seeking legal redress is permitted since he initially signed to waive his right to object to workplace searches prior to his job offer. At every point where workplace searches is required by the employer especially when the searches are not done at public open places, the employee consent should be required too.
g Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 20Y6 Net income $1,687,000 $2,632,000 Preferred dividends $40,000 $40,000 Average number of common shares outstanding 90,000 shares 120,000 shares a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 20Y5 20Y6 Earnings per Share $fill in the blank 1 $fill in the blank 2 b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable
Answer:
a) EPS
2005 Earnings per share=$18.3
2005 Earnings per share=$21.6
b) EPS Variance = $3.3 favorable
Explanation:
Earnings per share(EPS) is the total earnings attributable to ordinary shareholders divided by the number of units of common stock
Earnings attributable to ordinary shareholders= Net income after tax - preference dividend
Earnings per share = (Net income after tax - preference dividend)/Number of shares
2005 Earnings per share = $1,687,000- $40,000/90,000 shares=$18.3
2006 Earnings per share=($2,632,000- $40,000)/120,000 shares=$21.6
2005 Earnings per share=$18.3
2006 Earnings per share=$21.6
EPS Variance
Comparing the EPS the Earning per share in 2006 is higher than that of 2005. Hence, the variance = 21.6-18.3= $3.3 favorable
EPS Variance = $3.3 favorable
Personal branding involves ________.
Answer:
Personal Branding. the practice of people marketing themselves and their careers as brands.
est County Bank agrees to lend Cullumber Company $496000 on January 1. Cullumber Company signs a $496000, 6%, 6-month note. What entry will Cullumber Company make to pay off the note and interest at maturity assuming that interest has been accrued to June 30? Interest Payable 7440 Notes Payable 496000 Interest Expense 7440 Cash 510880 Interest Expense 14880 Notes Payable 496000 Cash 510880 Notes Payable 510880 Cash 510880 Notes Payable 496000 Interest Payable 14880 Cash 510880
Answer:
Dr Notes Payable $496,000
Dr Interest Payable $14,880
Cr Cash $510,880
Explanation:
Preparation of the journal entry that Cullumber Company will make to pay off the note and interest at maturity assuming that interest has been accrued to June 30
Dr Notes Payable $496,000
Dr Interest Payable $14,880
($496000*6%*6/12)
Cr Cash $510,880
($496,000+$14,880)
(To record note and interest at maturity)
The following costs related to Summertime Company for a relevant range of up to 20,000 units annually: Variable Costs: Direct materials $2.50 Direct labor 0.75 Manufacturing Overhead 1.25 Selling and administrative 1.50 Fixed Costs: Manufacturing overhead $10,000 Selling and Administrative 5,000 The selling price per unit of product is $15.00. At a sales volume of 15,000 units, what is the total cost for Summertime Company
Answer:
Total cost= $105,000
Explanation:
Because the 15,000 units are in the relevant range, the fixed costs remain constant. Now, we need to calculate the total cost of 15,000 units:
Direct material= 15,000*2.5= 37,500
Direct labor= 15,000*0.75= 11,250
Variable overhead= 15,000*1.25= 18,750
Variable selling and administrative= 15,000*1.5= 22,500
Total variable cost= $90,000
Total fixed costs= $15,000
Total cost= $105,000
Shown below is a segmented income statement for Mullett Marina’s three main boating service lines:
Winter Storage Boat Fuel & Boat Total
Concessions Maintenance
Sales revenue $4,000,000 $1,000,000 $5,000,000 $10,000,000
Less: Variable expenses 2,000,000 200,000 4900,000 7,100,000
Contribution margin $2,000,000 $800,000 $100,000 $2,900,000
Less direct fixed expenses:
Garage/warehouse rent 700,000 55,000 350,000 1,105,000
Supervision 50,000 70,000 150,000 270,000
Equipment depreciation 250,000 75,000 100,000 425,000
Segment margin $1,000,000 $600,000 $(500,000) $1,100,000
Relevant fixed costs associated with this line include 60% of Boat Maintenance’s garage/warehouse rent and 50% of Boat Maintenance’s supervision salaries. In addition, assume that dropping the Boat Maintenance service line would reduce sales of the Winter Storage line by 20% and sales of the Boat Fuel & Concessions line by 10%. All other information remains the same.
Required:
1. If the Boat Maintenance service line is dropped, what is the contribution margin for the Boat Fuel & Concessions line? For the Winter Storage line?
2. Which alternative (keep or drop the Boat Maintenance line) is now more cost effective and by how much?
Answer:
1. We have:
Contribution margin for the Boat Fuel & Concessions line = $700,000
Contribution margin for the Winter Storage line = $1,200,000
2. Keeping Boat Maintenance service line by $630,000.
Explanation:
Note that after dropping Boat Maintenance service line, its Sales revenue and Variable expenses will be eliminated while all the fixed costs will be retained. This is because, generally in Management Accounting, the fact that a a fixed cost is a direct cost does NOT mean that it is avoidable.
Note: See part a of the attached excel for the Segmented Income Statement Before Dropping Boat Maintenance service line, and see part b of the attached excel for the Segmented Income Statement After Dropping Boat Maintenance service line.
1. If the Boat Maintenance service line is dropped, what is the contribution margin for the Boat Fuel & Concessions line? For the Winter Storage line?
In the part b of the attached excel, we have:
Contribution margin for the Boat Fuel & Concessions line = $700,000
Contribution margin for the Winter Storage line = $1,200,000
2. Which alternative (keep or drop the Boat Maintenance line) is now more cost effective and by how much?
From the part a of the attached excel file, we have:
Operating income before dropping Boat Maintenance service line = $815,000
Operating income after dropping Boat Maintenance service line = -$185,000
Cost saving = $815,000 - $185,000 = $630,000
Therefore, keeping Boat Maintenance service line by $630,000.
A coal-fired power plant can produce electricity at a variable cost of $0.07 per kilowatt-hour when running at its full capacity of 30 megawatts per hour, $0.16 per kilowatt-hour when running at 20 megawatts per hour, and $0.24 per kilowatt-hour when running at 10 megawatts per hour. A gas-fired power plant can produce electricity at a variable cost of $0.12 per kilowatt-hour at any capacity from 1 megawatt per hour to its full capacity of 5 megawatts per hour. The cost of constructing a coal-fired plant is $70 million, but it costs only $14 million to build a gas-fired plant.
Required:
a. Consider a city that has a peak afternoon demand of 80 megawatts of electricity. If it wants all plants to operate at full capacity, what combination of coal-fired plants and gas-fired plants would minimize construction costs?
b. How much will the city spend on building that combination of plants?
c. What will the average cost per kilowatt-hour be if you average over all 80 megawatts that are produced by that combination of plants?
Answer:
a-The construction of 2 coal-fired plants and 4 gas-fired plants will have minimum construction costs.
b-Total construction cost is $196 Million.
c-The average cost is $0.0825 per killowatt-hour.
Explanation:
a
In order to estimate the best combination of the two, consider the following linear programming model
[tex]30X+5Y\leq80\\X\geq0\\Y\geq0[/tex]
with minimizing function as [tex]70X+14Y[/tex]
This yeilds in the optimum solution of 2 coal fired plants and 4 gas fired plants with minimum construction costs.
The construction of 2 coal-fired plants and 4 gas-fired plants will have minimum construction costs.
b
The construction cost is as follows
Number of coal-fired plants=2
Number of gas-fired plants=4
Total Cost=(Cost of 1 Coal-Fired Plant*Number of coal-fired plants)+(Cost of 1 Gas-Fired Plant*Number of gas-fired plants)
[tex]\text{Total Cost}=(70\times 2)+(14\times4)\\\text{Total Cost}=140+56\\\text{Total Cost}=\$196 \text{Million}[/tex]
Total construction cost is $196 Million.
c
Average Cost of Electrici[tex]\text{Average Cost}=\text{Fraction of Coal-Fired}\times\text{Cost of Coal-Fired}+\text{Fraction of Gas-Fired}\times\text{Cost of Gas-Fired}\\\text{Average Cost}=\text{0.75}\times\text{0.07}+\text{0.25}\times\text{0.12}\\\text{Average Cost}=\$0.0525+\$0.03\\\text{Average Cost}=\$0.0825[/tex]ty production is given by estimating the share of electricity produced by coal-fired plants and gas-fired plants
Total energy=80 MW
Energy produced by Coal-Fired Plants at full capacity=2*30=60 MW
Energy produced by Gas-Fired Plants at full capacity=4*5=20 MW
Fraction of Coal-Fired Plants is given as
[tex]\dfrac{\text{Coal-Fired Share}}{\text{Total Energy}}=\dfrac{60}{80}=0.75[/tex]
Fraction of Gas-Fired Plants is given as
[tex]\dfrac{\text{Gas-Fired Share}}{\text{Total Energy}}=\dfrac{20}{80}=0.25[/tex]
Cost of Producing KW-hr by Coal-Fired Plant is $0.07
Cost of Producing KW-hr by Gas-Fired Plant is $0.12
So
[tex]\text{Average Cost}=[\text{Fraction}_{Coal-Fired}\times\text{Cost per KW-hr}_{Coal-Fired}]+[\text{Fraction}_{Gas-Fired}\times\text{Cost per KW-hr}_{Gas-Fired}]\\\text{Average Cost}=(0.75\times0.07)+(0.25\times0.12)\\\text{Average Cost}=(0.0525)+(0.03)\\\text{Average Cost}=\$0.0825[/tex]The average cost is $0.0825 per killowatt-hour.
Ralph, knowing that his son, Ed, desires to purchase a tract of land, promises to give him the $25,000 he needs for the purchase. Ed, relying on this promise, buys an option on the tract of land. Now Ralph wants to rescind his promise to Ed. Will Judy be required to give her daughter, Liza, the tract of land on which she has started to build, and will Ralph be required to give his son, Ed $25,000 to purchase a tract of land. Can Ralph rescind his promise?
Answer:
(a) Yes, Judy will be required to give her daughter, Liza, the tract of land on which she has started to build. Therefore, Judy cannot rescind his promise to Liza.
(b) No, Ralph will NOT be required to give his son, Ed $25,000 to purchase a tract of land. Therefore, Ralph can rescind his promise.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
(a) Judy orally promises her daughter, Liza, that she will give her a tract of land for her home. Liza, as intended by Judy, gives up her homestead and takes possession of the land. Liza lives there for six months and starts construction of a home. Now Judy wants to rescind his promise to Liza.
(b) Ralph, knowing that his son, Ed, desires to purchase a tract of land, promises to give him the $25,000 he needs for the purchase. Ed, relying on this promise, buys an option on the tract of land. Now Ralph wants to rescind his promise to Ed.
Will Judy be required to give her daughter, Liza, the tract of land on which she has started to build, and will Ralph be required to give his son, Ed $25,000 to purchase a tract of land. Can Ralph rescind his promise?
Explanation of the answers is now provided as follows:
Each of the two cases will be decided based on the principle promissory estoppel.
Promissory estoppel refers to the legal principle that states that despite that there us formal consideration attached to a promise, it is still enforceable by law if the promise from the promisor makes the promisee to rely on the promise to his subsequent detriment.
(a) Will Judy be required to give her daughter, Liza, the tract of land on which she has started to build?
Yes, Judy will be required to give her daughter, Liza, the tract of land on which she has started to build.
The is because Liza has relied on the promise from Judy to her subsequent detriment by giving up her up her homestead and already starts construction of a home. Since the Judy promise from Judy induces the action of Liza that is reasonably expected by Judy, he cannot rescind his promise to Liza.
(b) Will Ralph be required to give his son, Ed $25,000 to purchase a tract of land. Can Ralph rescind his promise?
No, Ralph will NOT be required to give his son, Ed $25,000 to purchase a tract of land.
This is because there is Ed has not taken any definite and substantial action to justify that he has relied on the promise from Ralph to his subsequent detriment. It may not be possible to construe the purchase of an option on the tract of land by Ed as a definite and substantial action. Therefore, Ralph can rescind his promise.
Help
1. Please mention the relationship between demand and supply
2. Please use at least one demand and supply curve
3. Please mention the change for demand and supply curve
Answer:
1.It's a fundamental economic principle that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply, prices tend to rise. There is an inverse relationship between the supply and prices of goods and services when demand is unchanged.
2.Supply and demand, in economics, relationship between the quantity of a commodity that producers wish to sell at various prices and the quantity that consumers wish to buy.
3.A demand curve shows the relationship between quantity demanded and price in a given market on a graph. ... A supply curve shows the relationship between quantity supplied and price on a graph. The law of supply says that a higher price typically leads to a higher quantity supplied.
One thousand adults live in Milltown. Every day, they all leave work at 4:30 p.m., arrive home at exactly 5:00 p.m., and go to bed at 9:00 p.m. Three fundraisers, Alpha, Beta, and Charlie, have targeted Milltown's population. To get a donation, they must call Milltown's residents after they get home from work but before they go to bed. Because the charities raising the funds are identical, the first to call a willing donor will get the donation. Beta's manager has decided that the best time to call is 7:00 p.m. because it is exactly halfway between 5:00 p.m. and bedtime. Which of the following is true?
a. Alpha and Charlie will also make calls at 7:00 p.m.
b. Beta's manager did not choose wisely.
c. Alpha and Charlie will divide up the rest of the market, with one choosing to call at 6:00 p.m. and the other at 8:00 p.m.
d. Beta is certain to generate the most donations.
Answer:
b. Beta's manager did not choose wisely.
Explanation:
If you know that you are competing with identical charities, calling later will only result in fewer donations. The calls should start at 5 PM, and probably the three fundraisers will start calling at the same time. The only advantage that they can have depends on reaching the adults first, so the time of the calls is important.
Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for overhead allocation is:
Direct materials used $87,000
Direct labor used 160,000
Predetermined overhead rate (based on direct labor) 155%
Goods transferred to finished goods 432,000
Cost of goods sold 444,000
Credit sales 810,000
a. Debit Factory Overhead $248,000; credit Cash $248,000.
b. Debit Work in Process Inventory $160,000; credit Factory Payroll $160,000.
c. Debit Work in Process Inventory $248,000; credit Factory Overhead $248,000.
d. Debit Work in Process Inventory $160,000; credit Factory Overhead $160,000.
e. Debit Work in Process Inventory $160,000; credit Cash $160,000.
Answer:
c. Debit Work in Process Inventory $248,000; credit Factory Overhead $248,000.
Explanation:
The journal entry to record the overhead allocation is given below:
Work in Process Inventory $248,000 ($160,000 × 155%)
To Factory Overhead $248,000.
(being the overhead allocation is recorded)
here the work in process inventory is debited as it increased the asset and the factory overhead is credited so that the allocation of the overhead could be cone
Therefore the third option is correct
49. Marcy Company declared a 100% common stock dividend on January 1, 2005, when the market price of the stock was $7.50. The entry to record this dividend will: A) debit Retained Earnings,$100,000 B) credit Common Stock Dividend Distributable,$50,000 C) credit Contributed Capital in excess of par, Common Stock, $25,000 D) credit Common Stock Dividend Distributable, $100,000 E) Since this is considered a stock split, no journal entry is made
Answer:
C) credit Contributed Capital in excess of par, Common Stock, $25,000
Explanation:
Missing word "Preferred Stock - 6% cumulative, $20 par value, 10,000 shares authorized, 5,000 shares issued and outstanding . .$100,000. Contributed Capital in excess of par value, Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000. Common Stock, $5 par value, 20,000 shares authorized, 10,000 shares issued and outstanding. . . . . . . . . . . . . . . . . 50,000. Contributed Capital in excess of par value, Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000. Total Contributed Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 850,000. Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150,000. Total Stockholders' Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000"
The journal entry to record the stock dividend will be:
Date Account Titles Debit Credit
Retained earnings $75,000
(10000*7.50*100%)
Common stock dividends distributable $50,000
(10000*100%*$5)
Contributed Capital in excess of par value, $25,000
Common Stock (10000*100%*(7.5-5))
You are analyzing two assets: collectible LEGO sets, and stock of Apple. In the last 5 years, LEGOs have had an annual volatility of 5%, annual return of 6%, and a CAPM beta (the correlation coefficient between the asset and the market risk-premium) of 1.6. Apple has had an annual volatility of 10%, an annual return of 8%, and a CAPM beta of 1.2. Is the following statement true or false?
According to CAPM, Apple has a higher expected return than LEGO.
Answer:
No, Apple has lower rate of return than LEGOs.
Explanation:
Risk free rate is 2% and Market risk is 9%
Expected return can be calculated by :
E(r) = Rf + beta * (Rm - Rf)
E(r) LEGOs = 2 + 1.6 * (9 - 2)
E(r) LEGOs = 13.2%
E(r) Apple = 2 + 1.2 * (9 - 2)
E(r) Apple = 10.4%
Snowy Mountain Financial Advisors is a network of branches providing investing and financial advising services. It discloses that it uses a balanced scorecard with the following six performance measures.
Required:
Link the measures to the perspective number(s) of the balanced scorecard.
Perspective
1. Financial
2. Customer
3. Learning and growth
4. Internal business processed
Procedure Measure Prespective number
Market share
Regulatory compliance
New cutomer refresh from existing customer
Order errors
Brach profit
Answer:
Financial : market share and Branch profit Customer : New customer referrals from existing customer Learning and Growth : Not available on the score card Internal business processed : Regulatory compliance, Order errorsExplanation:
Linking the measures to the perspective number(s) of the balanced scorecard
Financial : market share and Branch profit Customer : New customer referrals from existing customer Learning and Growth : Not available on the score card Internal business processed : Regulatory compliance, Order errorsThe Market share is simply a portion of the general market that is been controlled by a product or organization
New customer referrals form existing customers is one way a company can get new and returning customers to patronize them
Regulatory compliance and order errors is been handled by the management of the business
Which of the following problems are likely to be encountered in distribution?
i) Spoilage of goods
ii) Inadequate warehousing
iii) Ineffective communication
Melissa is a crafting machine! She has used this time in quarantine to finesses her skills and has decided to open up a booth at the Groove Street Farmers Market (Monday’s 4-7pm). She does this for fun but before making her next batch of inventory wants to know which products, she should make to maximize her profit. She makes soaps and candles. The soap sells for $18 and the candles sell for $25. The soap requires coconut oil (2 tablespoons), essential oil (5 drops), and soap base (1 per item). The candles require coconut oil (3 tablespoons), essential oil (8 drops), and wax (1 per item). Coconut oil is $12 a jar and contains 112 tablespoons. Essential oils are $50 a container and contains 150 drops. A soap base is 2$ and a wax base is $2.25. Melissa currently has 3 jars of coconut oil, 2.5 bottles of essential oil, 25 soap bases, and 25 wax bases. If Melissa wants to maximize her profit how many soaps and candles should she make for her next both?
Answer:
The maximum profit of $847.03 occurs when Melissa produces 25 soaps and 25 candles.
Explanation:
The linear programming equations forms as follows:
Cost of producing 1 Soap=Cost of Soap Base+Cost of Coconut Oil+Cost of Essential Oil
Cost of Soap base is $2.
Cost of Coconut Oil for one soap is [tex]\$\dfrac{2}{112}\times12[/tex].
Cost of Essential Oil for one soap is [tex]\$\dfrac{5}{150}\times50[/tex]
So the total cost of 1 soap is
[tex]\text{Cost of producing 1 Soap}=\$2+\$\dfrac{2}{112}\times12+\$\dfrac{5}{150}\times50\\\text{Cost of producing 1 Soap}=\$2+\$0.21428+\$1.6666\\\text{Cost of producing 1 Soap}=\$3.8808[/tex]
So the cost of producing one bar of soap is 3.8808
So the profit per soap is
[tex]\text{Profit}=\text{Selling Price}-\text{Cost}[/tex]
Here selling price is $18 for soap so
[tex]\text{Profit}=\text{Selling Price}-\text{Cost}\\\text{Profit}=\$18-\$3.8808\\\text{Profit}=\$14.1192[/tex]
Profit per soap is $14.1192.
Similarly the cost of producing 1 candle is as follows:
Cost of producing 1 Candle=Cost of Wax Base+Cost of Coconut Oil+Cost of Essential Oil
Cost of Wax base is $2.25.
Cost of Coconut Oil for one candle is [tex]\$\dfrac{3}{112}\times12[/tex].
Cost of Essential Oil for one candle is [tex]\$\dfrac{8}{150}\times50[/tex]
So the total cost of 1 candle is
[tex]\text{Cost of producing 1 Candle}=\$2.25+\$\dfrac{3}{112}\times12+\$\dfrac{8}{150}\times50\\\text{Cost of producing 1 Candle}=\$2.25+\$0.32142+\$2.6666\\\text{Cost of producing 1 Candle}=\$5.2380[/tex]
So the cost of producing one candle is $35.2380
So the profit per candle is
[tex]\text{Profit}=\text{Selling Price}-\text{Cost}[/tex]
Here selling price is $25 for a candle so
[tex]\text{Profit}=\text{Selling Price}-\text{Cost}\\\text{Profit}=\$25-\$5.2380\\\text{Profit}=\$19.7620[/tex]
Profit per candle is $19.7620.
If the number of soaps produced is X and the number of candles produced is Y then the maximization function of profit is given as
[tex]Z=f(X,Y)=14.1192X+19.7620Y[/tex]
Also the constraints are given as follows:
If Melissa has 3 jars of coconut oil and each jar has 112 tablespoons thus the total tablespoons Melissa has are 336. If 2 tablespoon coconut oil is used for 1 soap and 3 tablespoons are used for 1 candle thus
[tex]2X+3Y\leq336[/tex]
Similarly, Melissa has 2.5 containers of essential oil and each container has 150 drops thus the total drops Melissa has are 375. If 5 drops of essential oil are used for 1 soap and 8 drops are used for 1 candle thus
[tex]5X+8Y\leq375[/tex]
For the soap bases, each soap uses 1 soap bases and total soap bases are 25 thus
[tex]X\leq25[/tex]
Similarly, for the wax base, each candle uses 1 wax base, and the total wax bases are 25 thus.
[tex]Y\leq25[/tex]
So the linear programming model becomes
[tex]2X+3Y\leq336\\5X+8Y\leq375\\X\leq25\\Y\leq25[/tex]
with maximization of
[tex]Z=f(X,Y)=14.1192X+19.7620Y[/tex]
Now solving this using the graphical method of linear programming as attached gives:
The maximum profit of 847.03 occur when Melissa produces 25 soaps and 25 candles.
Debt: 2,000 par value bonds with a 15-year maturity, 7.2% coupon, which are currently selling for 105 percent of par. Common stock: 1M shares outstanding, selling for $20 per share, and a fixed dividend of $2.50 per year. Preferred stock: 9,500 shares of preferred stock with a 6 percent required return, currently selling for $55 per share. What is the company's WACC
Answer:
17.03 %
Explanation:
WACC = Cost of Equity x Weight of Equity + Cost of Debt x Weight of Debt + Cost of Preference Stock x Weight of Preference Stock
where,
Cost of Debt is calculated as :
Per $100 of bonds
FV = $100
PV = ($105)
PMT = $100 x 7.20% = $7.20
N = 15
P/yr = 1
r = ?
Using a financial calculator to enter values as above, cost of debt (r) is 6.66%
We always use after tax cost of debt
Therefore,
After tax cost of debt = interest x (1 - tax rate)
= 4.995%
therefore,
WACC = 12.50 % x 96.51% + 4.995% x 0.965 + 6.00 % x 2.52 %
= 17.03 %
Use the drop-down menu to select the qualification best demonstrated in each example. Virgil is on time every day to his job as a Packaging Machine Operator. Lily analyzes a product's supply chain to identify ways to make it more efficient. Chase manages shipping schedules so products are sent on time. Zaida helps another worker get products ready for shipping.
Answer:
Dependability, critical-thinking skills, organizational skills, and teamwork.
Explanation:
I got it right.
Answer:
Noting here you answer is UP there ↑↑↑↑
Explanation:
Lily Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Lily estimates that 4% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit is $20. The units sold and units defective that occurred during the last 2 months of 2020 are as follows:
Months Units Sold Units Defective Prior to December 31
November 37,300 746
December 39,300 491
Required:
a. Prepare the journal entries to record the estimated liability for warranties and the costs incurred in honoring 1,237 warranty claims.
b. Determine the estimated warranty liability at December 31 for the units sold in November and December.
Answer and Explanation:
The computation is shown below:
In November month:
Estimated defective units:
= Estimated Percentage to be defective units × Units sold
= 4% × 37,300
= 1,492
The Estimated cost of repairing defective units is
= Estimated defective units × Estimated cost of repairing the defective unit
= 1,492 × $20
= $29,840
In December month:
Estimated defective units:
= Estimated Percentage to be defective units × Units sold
= 4% × 39,300
= 1,572
The Estimated cost of repairing defective units:
= Estimated defective units × Estimated cost of repairing the defective unit
= 1,572 × $20
= $31,440
Now the Total estimated liability is
= $29,840 + $31,440
= $61,280
The Journal entries are as follows:
(a) Warranty expenses A/c Dr. $61,280
To Estimated warranty payable $61,280
(Being warranty expense is recorded)
Estimated warranty payable A/c Dr. $24,740
To Cash/ Material consume $24,740
(being cash paid is recorded)
(b) The estimated warranty liability is $61,280
Two organizations are both in the technology industry. What is most likely true about their corporate cultures?
Answer:
it's about vision, value, practices