The petty cash fund of Ricco's Automotive contained the following items at the end of September 2021:
Currency and coins $58
Receipts for the following expenditures:
Delivery charges $16
Printer paper 11
Paper clips and rubber bands 8 35
Lent money to an employee 25
Postage 32
Total $150
The petty cash fund was established at the beginning of September with a transfer of $150 from cash to the petty cash account.
Required:
Prepare the journal entry to replenish the fund at the end of September.
Answer:
Date Account titles and Explanation Debit Credit
Sep 30 Delivery expenses $16
Offices supplies $19
Postage expenses $32
Receivables from employees $25
Cash $92
(To record replenishment of petty cash fund)
Free Flight Corporation, located in Denver, Colorado, produces bicycle accessories, including bicycle helmets which requires a rigid, crushable foam. During the quarter ending June 30, the company manufactured 3,800 helmets, using 2,736 kilograms of foam. The foam cost the company $18,058. According to the standard cost card, each helmet should require 0.66 kilograms of foam, at a cost of $7.00 per kilogram.
Required:
1. What is the standard quantity of kilograms of foam (SQ) that is allowed to make 3,800 helmets?
2. What is the standard materials cost allowed (SQ * SP) to make 3,800 helmets?
3. What is the materials spending variance?
4. What is the materials price variance and the materials quantity variance?
(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)
1. Standard quantity of kilograms allowed
2. Standard cost allowed for actual output
3. Materials spending variance
4. Materials price variance
Materials quantity variance
Answer:
1. Standard quantity of kilograms allowed 2508kg
2. Standard cost allowed for actual output $17,556
3. Materials spending variance $502 Unfavorable
4. Materials price variance $1094Favorable
Materials quantity variance $1596 unfavorable
Explanation:
1. Calculation to determine the standard quantity of kilograms of foam
Standard quantity of kilograms allowed = 0.66*3800
Standard quantity of kilograms allowed =2508kg
2. Calculation to determine the standard materials cost allowed
Standard cost allowed for actual output = 2508kg *7
Standard cost allowed for actual output=$17,556
3. Calculation to determine the materials spending variance using this formula
Material spending variance = Standard cost - Actual cost
Let plug in the formula
Material spending variance= $17,556- $18,058
Material spending variance= $502 Unfavorable
4. Calculation to determine the materials price variance and the materials quantity variance
Material price variance = (7- $18,058/2,736)*2,736
Material price variance = $1094Favorable
Material quantity variance =(2508kg-2,736)*7
Material quantity variance= $1596 unfavorable
Therefore:
1. Standard quantity of kilograms allowed 2508kg
2. Standard cost allowed for actual output $17,556
3. Materials spending variance $502 Unfavorable
4. Materials price variance $1094Favorable
Materials quantity variance $1596 unfavorable
In the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of $82,000. During the year, Dinty wrote off $32,000 of accounts receivable it had attempted to collect and failed. Credit sales for the year were $2,200,000, and cash collections from credit customers totaled $1,950,000. What accounts receivable balance would Dinty report in its first year-end balance sheet?
Answer:
$218,000
Explanation:
Account receivable balance = Credit sales - Cash collection - Wrote-offs
Account receivable balance = $2,200,000 - $1,950,000 - $32,000
Account receivable balance = $218,000
So, the accounts receivable balance would Dinty report in its first year-end balance sheet is $218,000
Suppose the world price is $20. a. Is this country an exporter or an importer? A. exporter B. importer b. How many units of the good are exported/imported? nothing units c. Fill in the chart below. If your answer is negative, put a minus sign in front of the number. Area Before Trade Value After Trade Value Change Value Consumer Surplus $ nothing $ nothing $ nothing Producer Surplus $ nothing $ nothing $ nothing Total Welfare $ nothing $ nothing $ nothing d. Who gains when the country allows free international trade? A. consumers and the government B. consumers C. no one gains D. consumers and producers E. consumers, producers, and the government F. producers G. producers and the government H. the government Who loses from free trade in this case? A. the government B. no one gains C. consumers and the government D. producers E. consumers F. consumers, producers, and the government G. producers and the government H. consumers and producers Overall, is there a net gain or a net loss when the country moves from No Trade to Free Trade? A. net gain B. net loss What is the overall value of the gain or loss? $ nothing (if your answer is negative, put a minus sign before your answer).
Question Completion:
Answer:
1. This country is an
B. importer.
2. The units of the good that are exported/imported are 200.
3. Chart filling
Area Before Trade After Trade Change Value
Value Value
Consumer Surplus $4,000 $9,000 $5,000
Producer Surplus $4,000 $1,000 $−3,000
Total Welfare $8,000 $10,000 $2,000
4. The group that gains when the country allows free international trade.
B. consumers
5. The group that loses from free trade in this case is:
D. producers
6. A. net gain
7. The overall value of the gain is $2,000
Explanation:
a) Data and Calculations:
Area Before Trade After Trade Change
Value Value Value
Consumer Surplus $? $? $?
Producer Surplus $? $? $?
Total Welfare $ ? $? $?
Consumer surplus = Total quantity demanded at consumer's price minus equilibrium quantity * equilibrium price
Producer surplus = Total quantity supplied at supplier's price minus equilibrium quantity * equilibrium price
Change value at consumer surplus = $5,000 ($9,000 - $4,000)
Change value at producer surplus = $-3,000 ($1,000 - $4,000)
Total welfare before trade = $8,000 ($4,000 + $4,000)
Total welfare after trade = $10,000 ($9,000 + $1,000)
The net gain from free international trade is the difference between the total welfare value after trade and before trade = $2,000 ($10,000 - $8,000)
The demand function is given by
D = 20 - p-p2 where D =
demand and p = price. Find the
elasticity of demand w.r.t. price
when price is 2
Answer:
Q=120−4P
Explanation:
putting P = 20 we get
q= 40
we know that elasticity is quantity demanded / price
20
40
=2
hence the correct option: D
_______regulation applies to specific industries, whereas _______economic social regulation applies to businesses throughout the economy. Governments commonly regulate the prices and quality of services provided by electric, gas, and other utilities, which traditionally have been considered____technological oligopolistic geographic natural monopolies. Governments also single out various nonmonopolistic industries, such as the financial and transportation industries, for special forms of ______ economic social regulation. Among the common forms of ____ economic social regulation covering all industries are the occupational, health, and safety rules that federal and state governments impose on producers.
Answer:
Economic; social; natural; economic; social.
Explanation:
Generally, economic regulation are only applicable to business firms or organizations in a specific industry while social regulation is generally applicable to all of the business firms established throughout the economy or country.
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
For example, a public power company is an example of a monopoly because they serve as the only source of power utility provider to the general public in a society.
Governments commonly regulate the prices and quality of services provided by natural monopolies.
The Occupational Safety and Health Administration (OSHA) is a federal agency saddled with the responsibility of assuring and ensuring safe and healthy working conditions for employees by setting and enforcing standards, providing education, trainings and assistance to various organizations.
Bonita Company has a factory machine with a book value of $87,800 and a remaining useful life of 5 years. It can be sold for $32,000. A new machine is available at a cost of $455,100. This machine will have a 5-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $624,400 to $524,400. Prepare an analysis showing whether the old machine should be retained or replaced.
Answer: Old machine should be replaced.
Explanation:
The variable manufacturing cost will reduce by:
= 624,000 - 524,000
= $100,000
Over a period of 5 years this will be:
= 100,000 * 5
= $500,000
Selling the old machine would bring in $32,000:
= 500,000 + 32,000
= $532,000
The cost of the new machine would reduce this gross benefit by:
= 532,000 - 455,100
= $76,900
Net income will increase by a total of $76,900 over the 5 year period if the new machine is bought so it should be bought.
____ is the measure of how much money you can make off each sale.
Answer:
Profit or net profit is the answer.
Explanation:
Hubert lives in San Diego and runs a business that sells boats. In an average year, he receives $851,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $476,000; he also pays wages and utility bills totaling $281,000. He owns his showroom; if he chooses to rent it out, he will receive $71,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Hubert does not operate this boat business, he can work as an accountant, receive an annual salary of $34,000 with no additional monetary costs, and rent out his showroom at the $71,000 per year rate. No other costs are incurred in running this boat business.
Identify each of Bob's costs in the following table as either an implicit cost or an explicit cost of selling boats.
a. The salary Bob could earn if he worked as an accountant
b. The wholesale cost for the boats that Bob pays the manufacturer
c. The rental income Bob could receive if he chose to rent out his showroom
d. The wages and utility bills that Bob pays
Answer:
(a). Implicit cost
(b) Explicit cost
(c) Implicit cost
(d) Explicit cost
Explanation:
Implicit cost are the cost which a person can earn in a period.
Explicit cost are the cost which a person pays in same period for other work.
So by this, we can clearly determine explicit and implicit cost for the following statements.
(a). Implicit cost (Because salary is an earning for Bob.)
(b) Explicit cost ( Because Bob pays an amount for different work)
(c) Implicit cost (Because rental is an earning for Bob.)
(d) Explicit cost ( Because Bob pays an amount for wages and utility)
A company is considering replacing an old piece of machinery, which cost $597,600 and has $351,400 of accumulated depreciation to date, with a new machine that has a purchase price of $483,600. The old machine could be sold for $64,900. The annual variable production costs associated with the old machine are estimated to be $157,400 per year for eight years. The annual variable production costs for the new machine are estimated to be $99,300 per year for eight years.
Required:
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?
Solution :
Differential Analysis : April 29
Continue old machine Replace old Differential
machine effect on income
Revenue : (Alternative 1) (Alternative 2) (Alternative 2)
Proceeds from
sale of old machine 0 64,900 64,900
Cost :
Purchase price 0 -483,600 -483,600
Variable
manufacturing cost -1,259,200 - 794,400 464800
Total cost -1,259,200 -1278000 -18800
Income (loss) -1,259,200 -12131000 46100
So the company should replace the sold machine.
The sunk cost is = 597,000 - 351,400
= $245,600
Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1). (Use appropriate factor(s) from the tables provided.)
Project A Project B
Initial investment $ (174,325 ) $ (152,960 )
Expected net cash flows in year:
1 41,000 44,000
2 60,000 53,000
3 72,295 68,000
4 87,400 81,000
5 59,000 30,000
For each alternative project compute the net present value.
Project A
Initial Investment $174,325
Chart values are based on:
i =
Year Cash inflow x Table factor = Present Value
1 =
2 =
3 =
4 =
5 =
Project B
Initial Investment $152,960
Year Cash inflow x Table factor = Present Value
1 =
2 =
3 =
4 =
5 =
For each alternative project compute the profitability index.
Choose Numerator: / Choose Denominator: = Profitability index
/ = Profitability index
Project A
Project B
2. Assume If the company can only select one project, which should it choose?
Project A or Project B
Answer:
Project A
NPV = $91,771.53
PI = 1.53
Project B
NPV = $79,390.69
PI = 1.52
Project A should be chosen because it has the higher NPV
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Project A
Cash flow in year 0 = $ (174,325)
Cash flow in year 1 = 41,000
Cash flow in year 2 = 60,000
Cash flow in year 3 = 72,295
Cash flow in year 4 = 87,400
Cash flow in year 5 = 59,000
I = 6%
NPV = $91,771.53
Project B
Cash flow in year 0 = (152,960 )
Cash flow in year 1 = 44,000
Cash flow in year 2 = 53,000
Cash flow in year 3 = 68,000
Cash flow in year 4 = 81,000
Cash flow in year 5 = 30,000
I = 6%
NPV = $ $79,390.69
profitability index = 1 + (NPV / Initial investment)
Project A = 1 +( $91,771.53 /$174,325) = 1.53
Project B = 1 + ( $79,390.69 / 152,960 = 1.52
To find the NPV 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
Kylie bought a 7-year, 5,000 par value bond with an annual coupon rate of 7.6% paid semi-annually. She bought the bond with no premium or discount. Calculate the Macaulay duration of this bond with respect to the yield rate on the bond.
Incomplete question. The options read:
a. 5.16
b. 5.35
c. 5.56
d. 5.77
e. 5.99
Answer:
b. 5.35
Explanation:
Remember, we use the Macaulay duration to determine the weighted average time before any bondholder would start to receive their expected bond's cash flows.
Hence, using the formula attached below, we could find the Macaulay duration for this scenario. In the above formula, where:
C= the periodic coupon payment
y= the periodic yield
M= the bond’s maturity value
n= duration of bond in periods.
However, another way to get a solution is to employ an advanced calculator.
WellWheats, Inc. produces breakfast cereal and sells each box, or unit, for $7. The company is projecting sales of 1,000 units for the month of March. There are 30 units in the beginning inventory. Each unit requires 20 ounces of raw materials and 0.20 direct labor hours to make. The company's policy is to keep ending finished goods inventory of 10% of the current month's sales. Selling and administrative expenses for the month have been budgeted at $2,000. If the direct labor cost per hour is $0.75, calculate the budgeted direct labor cost for the month of March.
A. $214.00
B. $160.50
C. $802.50
D. $236.00
Answer:
b. . $160.50
Explanation:
Projected Sales 1,000 units
Desired ending inventory = 10%*1,000 = 100 units
Beginning Inventory = 30 units
Required production = Projected Sales + Desired ending inventory - Beginning Inventory
Required production = 1,000 units + (10%*1,000 units) - 30 units
Required production = 1,000 units + 100 units - 30 units
Required production = 1,070 units
Labor hours per unit = 0.20
Cost per labor hour = $0.75
Budgeted labor cost for March = Required production*Labor hours per unit*Cost per labor hour
Budgeted labor cost for March = 1,070 units*$0.20*$0.75
Budgeted labor cost for March = $160.50
Hence, the budgeted labor cost for March is $160.50.
How to account for this $45,000? I think, this could be as Salary or dividend.
When Scott and Allison are in the store, they are the only ones who operate the register. Scott admits that, because he is in too much of a hurry, he sometimes puts the cash in his pocket rather than take the time to ring up the sale. Having cash in hand allows him to pay his babysitter and other personal expenses. Though it was difficult for him to be certain, Scott estimated that transactions worth about $45,000 each year have been handled in this way. Scott confirmed that he has not filed a personal tax return since he started GPP because he has not taken a salary.
Answer:
Scott should file Personal tax return since he is running his expenses through the money he takes in hand.
Explanation:
Scott will have to file the tax return because he is taking $45,000 as a salary. It does not matter that the salary is run through bank account or through cash but personal tax return filing is necessary. He uses the money to fund his routine expenses and this is to be reported in personal tax filing.
Bismith Company reported: Actual fixed overhead Fixed manufacturing overhead spending variance Fixed manufacturing production-volume variance $700,000 $40,000 unfavorable $30,000 unfavorable
To record the write-off of these variances at the end of the accounting period, Bismith would
A. credit Fixed Manufacturing Production-Volume Variance for $30,000
B. debit Fixed Manufacturing Control for $700,000
C. credit Fixed Manufacturing Overhead Allocated for $700,000
D. debit Fixed Manufacturing Overhead Spending Variance for $40,000
Answer:
D. Debit fixed manufacturing overhead spending variance for $40,000
Explanation:
Since fixed manufacturing overhead shows the difference between the actual fixed overhead costs and budgeted fixed overhead cost during a period, Bismith would debit fixed manufacturing overhead spending variance of $40,000 inorder to write off the recording of the variances at the end of the accounting period because the value for fixed manufacturing overhead spending variance has already being gotten hence would be applied at the end of the period.
On January 1, Mitzu Co. pays a lump-sum amount of $2,750,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $671,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $579,500 and is expected to last another 19 years with no salvage value. The land is valued at $1,799,500. The company also incurs the following additional costs.
Cost to demolish Building 1 $345,000
Cost of additional land grading 195,000
Cost to construct new building (Building 3), having a useful life of 25 years and a $402,000 salvage value 2,242,000
Cost of new land improvement (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value 173,000
Allocate the costs incurred by Mitzu to the appropriate columns and total each column.
Allocation of Purchase Price Appraised Value Percent of Total x Total Cost of Acquisition = Apportioned Cost
Land $1,952,000 x $2,750,000 =
Building 2 $732,000 x $2,750,000 =
Land Improvements 1 $366,000 12% x $2,750,000 = 330,000
Totals $1,952,000 12% x = 330,000
Question Completion:
2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1.
Answer:
Mitzu Co.
1. Allocation of Appraised Value Percent x Total Cost = Apportioned
Purchase Price of Total of Acquisition Cost
Land $1,799,500 59% x $2,750,000 = $1,622,500
Building 2 $671,000 22% x $2,750,000 = 605,000
Land Improve-
ments 1 $579,500 19% x $2,750,000 = 522,500
Totals $3,050,000 100% = $2750,000
2. Journal Entry:
January 1:
Debit Land (demolishing Building 1) $345,000
Debit Land (additional land grading) $195,000
Debit Building 3 $2,242,000
Debit Land Improvements 2 $173,000
Credit Cash $2,955,000
To record the payment of additional costs incurred.
Explanation:
a) Data and Calculations:
Lump-sum amount paid $2,750,000
Additional costs incurred:
Land (demolishing Building 1) $345,000
Land (additional land grading) $195,000
Building 3 $2,242,000, having a useful life of 25 years and a $402,000 salvage value
Land Improvements 2 $173,000 near Building 2 having a 20-year useful life and no salvage value
The Smith family wants to relocate to a neighborhood with better schools before their three-year-old goes to kindergarten. They talked with Byron about properties he has for sale in neighborhoods they would like to live in. They also mentioned to Byron that they both work and may need someone to help with in-home care for their child. Byron gave them Taylor’s name to call about childcare. The Smiths also said they were having a hard time getting loan approval, so Byron suggested that they call Travis. Which best describes the jobs performed by Byron, Taylor, and Travis?
a) Byron is a Customer Service Representative, Taylor is a Child Care Worker, and Travis is a Loan Counselor.
b) Byron is a Real Estate Manager, Taylor is a Nanny, and Travis is a Loan Counselor.
c) Byron is a Real Estate Manager, Taylor is a Preschool Teacher, and Travis is a Customer Service Representative.
d) Byron is a Home Counselor, Taylor is a Nanny, and Travis is a Property Manager.
Answer:
the correct answer is B)
Explanation:
Given that they spoke to Byron about properties that he wants to sell, that means he is a Real Estate Manager. Taylor came up because they needed in-home care. That makes Taylor a Nanny because Nannies are professionals who take care of babies in their own homes.
Loan counselors have no other major business besides advising people on issues relating to taking up a loan. Therefore that makes Travis a loan Counselor.
Cheers
Lifecycle Motorcycle Company is expected to pay a dividend in year 1 of $2, a dividend in year 2 of $3, and a dividend in year 3 of $4. After year 3, dividends are expected to grow at the rate of 7% per year. An appropriate required return for the stock is 12% (for both stages). Using the multistage DDM, the stock should be worth __________ today. Group of answer choices
Answer:
$67.95
Explanation:
Calculation to determine how much should the stock should be worth today.
First step is to calculate the dividend per year;
D4= D3(1+g) = 4(1.07) = $4.28
Second step is to calculate the PV of each dividend
PV (D1) =2 / (1.12)
PV (D1) = 1.7857
PV (D2) = 3/ (1.12²)
PV (D2) = 2.3916
PV (D3) = 4/ (1.12³)
PV (D3) = 2.8471
Fourth Step is to calculate the Value of Perp. at t=3
=[(4(1.07))/(.12-.07)]/1.12^3
=85.6/1.4049
=60.9296
Now let calculate how much should the stock should be worth today
Worth today = 1.7857+ 2.3916 + 2.8471 + 60.9296
Worth today=$67.95
Therefore Using the multistage DDM, the stock should be worth $67.95 today
Tamarisk Corporation had the following activities in 2020. 1. Payment of accounts payable $711,000 4. Collection of note receivable $93,000 2. Issuance of common stock $247,000 5. Issuance of bonds payable $522,000 3. Payment of dividends $335,000 6. Purchase of treasury stock $49,000 Compute the amount Tamarisk should report as net cash provided (used) by financing activities in its 2020 statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash select an option by financing activities $enter a dollar amount
Answer:
the Net Cash flow provided by financing activities is $385,000
Explanation:
The computation of the amount that should be reported as net cash provided or used by financing activities is shown below:
Cash flow from financing activities
Issuance of common stock $247,000
Issuance of bonds payable $522,000
Less: Payment of dividends -$335,000
Less: Purchase of treasury stock -$49,000
Net Cash flow provided by financing activities $385,000
Hence, the Net Cash flow provided by financing activities is $385,000
Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also is the $. The subsidiary acquires inventory on credit on November 1, 2017, for 230,000 pesos that is sold on January 17, 2018, for 267,000 pesos. The subsidiary pays for the inventory on January 31, 2018. Currency exchange rates are as follows:
November 1, 2017 $0.20
December 31, 2017 0.65
January 17, 2018 0.66
January 31, 2018 0.67
1. What amount does Newberry’s consolidated balance sheet report for this inventory at December 31, 2017?
a. $120,600.
b. $115,200.
c. $117,000.
d. $118,800.
2. What amount does Newberry’s consolidated income statement report for cost of goods sold for the year ending December 31, 2018?
a. $115,200.
b. $118,800.
c. $120,600.
d. $117,000.
Answer:
1. $46,000
2.$46,000
Explanation:
According to the scenario, computation of the given data are as follows,
Inventory price = 230,000 pesos
1. Consolidated balance sheet amount = Inventory price × Rate on November 1, 2017
= 230,000 × $0.20
= $46,000
2. Consolidated statement cost of goods sold for the year ending December 31, 2018 = Inventory price × Rate on November 1, 2017
= 230,000 × $0.20
= $46,000
Other things equal, an appreciation of the U.S. dollar would Multiple Choice increase productivity and increase aggregate supply. decrease net exports and decrease aggregate demand. increase the prices of imported resources and decrease aggregate supply. decrease the supply of money and decrease aggregate demand.
Answer:
Other things equal, an appreciation of the U.S. dollar would:
decrease net exports and decrease aggregate demand.
Explanation:
The immediate effect of an appreciation of U.S. dollars is the decrease of net exports to other countries because the importers will find that importing goods from the U.S. is more expensive than importing from some other countries. This drop caused by decreased exports also decreases aggregate demand of U.S. goods. Therefore, excess inventory of U.S. goods in producers' warehouses will result, thus, reducing national productivity and GDP.
Other things equal, an appreciation of the U.S. dollar would decrease net exports and decrease aggregate demand. Thus, Option (B) is correct.
When the U.S. dollar appreciates, it becomes stronger compared to other currencies. This means that goods and services produced in the United States become relatively more expensive for foreign buyers.
As a result, U.S. exports become less competitive in the international market, leading to a decrease in the quantity of goods and services exported. A decline in exports reduces the net exports component of aggregate demand, as net exports are the difference between exports and imports.
A decrease in net exports directly contributes to a decrease in aggregate demand, as aggregate demand is the sum of consumption, investment, government spending, and net exports.
Thus, Option (B) accurately describes what happens when there is an appreciation of the U.S. dollar.
Learn more about the appreciation here:
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At the beginning of 2021, Terra Lumber Company purchased a timber tract from Boise Cantor for $3,510,000. After the timber is cleared, the land will have a residual value of $720,000. Roads to enable logging operations were constructed and completed on March 30, 2021. The cost of the roads, which have no residual value and no alternative use after the tract is cleared, was $279,000. During 2021, Terra logged 620,000 of the estimated 6.2 million board feet of timber.Required:Calculate the 2021 depletion of the timber tract and depreciation of the logging roads assuming the units-of-production method is used for both assets. (Do not round intermediate calculations. Enter values in whole dollars.)
Answer:
A. $279,000
B. $27,900
Explanation:
A. Calculation for 2021 depletion of the timber tract
2021 Depletion=[($3,510,000 - $720,000) / 6.2 million] *$620,000
2021 Depletion=0.45x 620,000
2021 Depletion= $279,000
Therefore 2021 depletion of the timber tract is $279,000
B. Calculation to determine the depreciation of the logging roads
Depreciation=($279,000 / 6.2 million)*$620,000 Depreciation= 0.073*$620,000
Depreciation= $27,900
Therefore the depreciation of the logging roads is $27,900
Hinck Corporation reported net cash provided by operating activities of $361,200, net cash used by investing activities of $150,800 (including cash spent for capital assets of $206,000), and net cash provided by financing activities of $78,900. Dividends of $126,900 were paid.
Answer:
$28,300
Explanation:
Missing word: "Calculate free cash flow."
Free cash flow = Operating cash flow - Capital expenditures - Dividends
Free cash flow = $361,200 - $206,000 - $126,900
Free cash flow = $28,300
So, the Free cash flow of Hinck Corporation is $28,300.
Explain why the following scenario fails to meet the definition of a staff position.
Situation: Carmen helps manufacture auto parts for a company that supplies a manufacturer. She is talking to her operations manager.
Carmen: "I created several designs and have chosen the best one. Here is a prototype. I can make as many as needed."
Answer:
They are the person who ships out already made designs and not ones who are supposed to make new design, that is usually done by a higher up staff manager.
Explanation:
i cant say for certain its correct but i would assume since she is only staff she wouldnt be able to make her own ones.
MIRR [LO6] Solo Corp. is evaluating a project with the following cash flows: The company uses an interest rate of 10 percent on all of its projects. Calculate the MIRR of the project using all three methods. MIRR [LO6] Suppose the company in the previous problem uses a discount rate of 11 percent and a reinvestment rate of 8 percent on all of its projects. Calculate the MIRR of the project using all three methods using these interest rates.
Answer:
a. MIRR = 15.71%
b. MIRR = 13.54%
c. MIRR = 14.11%
Explanation:
Note: This question is not complete because the cash flows are not included. The complete question with the cash flows is therefore presented before answering the question as follows:
MIRR [LO6] Solo Corp. is evaluating a project with the following cash flows:
Year Cash Flow
0 (30,000)
1 12,200
2 14,900
3 16,800
4 13,900
5 (10,400)
Calculate the MIRR of the project using all three methods. MIRR [LO6] Suppose the company in the previous problem uses a discount rate of 11 percent and a reinvestment rate of 8 percent on all of its projects. Calculate the MIRR of the project using all three methods using these interest rates.
a. Calculate the MIRR of the project using the discounting approach method.
b. Calculate the MIRR of the project using the reinvestment approach method.
c. Calculate the MIRR of the project using the combination approach method. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places,
The explanation of the answers is now given as follows:
Let:
D = discount rate = 11%
R = reinvestment rate = 8%
a. Calculate the MIRR of the project using the discounting approach method.
Note: See part a of the attached excel file for the calculations of the MIRRs using the discounting approach method.
In the part a of the attached file, this is calculated using the following formula and the excel function:
MIRR = MIRR(Cash flows from year 1 to 5,D,D) =MIRR(B3:B8,11%,11%) = 15.71%
b. Calculate the MIRR of the project using the reinvestment approach method.
Note: See part b of the attached excel file for the calculations of the MIRRs using the reinvestment approach method.
In the part b of the attached file, this is calculated using the following formula and the excel function:
MIRR = (Cash flows from year 1 to 5,D,D) =MIRR(B15:B20,8%,8%) = 13.54%
c. Calculate the MIRR of the project using the combination approach method.
Note: See part c of the attached excel file for the calculations of the MIRRs using the combination approach method.
In the part c of the attached file, this is calculated using the following formula and the excel function:
MIRR = (Cash flows from year 1 to 5,D,R) =MIRR(B27:B32,11%,8%) = 14.11%
How do you do this journal entry for accounting?
- Now record the estimated cost of the returns. Estimated sales returns of $1,040, with cost of $333.
Answer:
Journal Entries:
1. Debit Sales Returns & Allowance $1,040
Credit Accounts Receivable $1,040
To record the estimated cost of returns.
2. Debit Inventory $333
Credit Cost of goods sold $333
To record the estimated cost of the goods returned.
Explanation:
a) Data and Analysis:
1. Sales returns and Allowances $1,040 Accounts receivable $1,040
2. Inventory $333 Cost of goods sold $333
The first journal entry records the estimated returns to be made by the customers by debiting the Sales returns account (a contra account to the sales revenue account). The corresponding credit entry in the Accounts receivable shows that a part of the accounts has been cancelled as a result of the estimated sales returns.
The second journal entry records the estimated cost of the goods to be returned by debiting the Inventory account and crediting the Cost of goods sold account. This cancels earlier records.
how can technological innovation help a company become globalised
Answer: Technology is the vital force in the modern form of business globalization. ... Technology has helped us in overcoming the major hurdles of globalization and international trade such as trade barrier, lack of common ethical standard, transportation cost and delay in information exchange, thereby changing the market place.
Explanation:
Multiple Choice Question 47 Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 105000 500 orders Machine Setup Setups 283500 450 setups Machining Machine hours 1462500 125000 MH Assembly Parts 1170000 1000000 parts Inspection Inspections 285000 500 inspections If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is
Answer:
Predetermined overhead rate= $22.53 per direct labor hour
Explanation:
Giving the following information:
Direct labor hours are estimated at 100,000 for the year.
Total estimated overhead for the period= (105,000 + 283,500 + 1,462,500 + 117,000 + 285,000) = $2,253,000
To calculate the predetermined overhead rate, we need to use the following formula:
Predetermined overhead rate= total estimated overhead / total amount of allocation rate
Predetermined overhead rate= 2,253,000 / 100,000
Predetermined overhead rate= $22.53 per direct labor hour
Robb Industries Inc. (RII) developed standard costs for direct material and direct labor. In 20X4, RII estimated the following standard costs for one of their major products, the 10-gallon plastic container.
Budgeted quantity Budgeted price
Direct materials 0.10 pounds $30 per pound
Direct labor 0.05 hours $15 per hour
During June RII produced and sold 5,000 containers using 490 pounds of direct materials at an average cost per pound of $32 and 250 direct manufacturing labor-hours at an average wage of $15.25 per hour.
a. What is June’s direct material price variance?
standard price 30 acutal quantity 490
actual price 32 direct material 980 unfavorable
b. What is June’s direct material efficiency variance?
standard price 30 actual quantity 490
standard quality 500 direct material 300 favorable
c. What is June’s direct labor rate variance?
standard rate 15 actual hours 450
actual rate 15.25 manufactoring labor variance 62.50 unfavorable
d. What is June’s direct labor efficiency variance?
standard hours 250 standard rate 15
actual hours 250 maunfaturing varience 0
Answer:
A. 980 unfavorable
B. 300 favorable
C. 62.50 unfavorable
D. 0
Explanation:
A. Calculation to determine June’s direct material price variance
Using this formula
Direct material price variance=Actual quantity(Standard price -Actual price)
Let plug in the formula
Direct material price variance=490 ($32 - $30) Direct material price variance=980 U
B. Calculation to determine June’s direct material efficiency variance
Using this formula
Direct material efficiency variance=Standard price (Actual quantity-Standard quality)
Let plug in the formula
Direct material efficiency variance=$30 (490 – 500)
Direct material efficiency variance= 300 F
C. Calculation to determine June’s direct labor rate variance
Using this formula
Direct labor rate variance=standard hours(actual rate -standard rate )
Let plug in the formula
Direct labor rate variance =250 dlh ($15.25 - $15.00)
Direct labor rate variance = $62.50 U
D. Calculation to determine June’s direct manufacturing labor efficiency variance
Direct manufacturing labor efficiency variance=[250 dlh - (5,000 x 0.05)] x $15
Direct manufacturing labor efficiency variance = 0
advantages and disadvantages of proxemics
Answer:
Advantage::
it allows people to understand how different communities organise there Town and homes