5300vthe long-run framework.
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If a check correctly written and paid by the bank for $646 is incorrectly recorded on the company's books for $664, the appropriate treatment on the bank reconciliation would be to deduct $646 from the book's balance. deduct $18 from the bank's balance. subtract $18 from the book's balance. add $18 to the book's balance.
Answer:
See below
Explanation:
Bank reconciliation occurs basically when there is a difference between the bank statement balance and cash. With regards to the above, the error should be treated thus in the bank reconciliation.
Since the check written and paid by the bank is $646, while it is written in the company's book as $664 , then a book balance of $18 is added which is the difference between $664 and $646
(1) Given access to the same risk-free asset and the same investment opportunity set of risky assets, an investor's degree of risk aversion will determine his or her ______. A. optimal risky portfolio B. risk-free rate C. optimal mix of the risk-free asset and risky asset D. capital allocation line
Answer: C. optimal mix of the risk-free asset and risky asset
Explanation:
Risk aversion simply has to do with how people curtail risk and this is done through the preference for the outcomes that have low uncertainty than those that have high uncertainty.
An investor's degree of risk aversion will determine his or her optimal mix of the risk-free asset and risky asset even if they've access to the same risk-free asset and also the same investment opportunity set of risky assets.
A small, privately-owned Asian company is producing a private-label soft drink Yoggo. A machine paced line puts the soft drinks into plastic bottles and then packages the bottles into boxes holding 10 bottles each. The machine paced line is comprised of the following 4 steps:Step 1 Bottling machine takes 1 second to fill a bottleStep 2 The lid machine takes 3 seconds to cover the bottle with a lidStep 3 A labelling machine takes 5 seconds to apply a label to the bottleStep 4 The packaging machine takes 4 seconds to place a bottle into a boxWhen a box has been filled with 10 bottles, a worker tending the packaging machine removes the filled box and replaces it with an empty box. Assume that the time for the worker to remove the filled box and replace it with an empty box is negligible and hence does not affect the capacity of the line. At step 3, there are two labeling machines that each process alternating bottles. That is, the first machine processes bottles 1,3,5 etc and the second machine processes 2,4,6 etc.Problem data are summarized in the table:Process step: Bottling# of machines: 1 Second per bottle: 1Process step: Apply a lid # of machines: 1 Second per bottle: 3Process step: Labeling # of machines: 2 Seconds per bottle: 5Process step: Packaging # of machines: 1 Second per bottle: 4a) What is the processing capacity (bottles/hr) for the machine paced line?b) What is the bottleneck in the process?c) If one identical labelling machine is added to the process, how much is the increase in the processing capacity going to be (in terms of bottles/hr)?
Answer:
A. 15 per min or 900 bottles per hour
B. Station 4
C. No increase
Explanation:
a) Calculation to determine the processing capacity (bottles/hr) for the machine paced line
Output of station 1 = 60 /1
Output of station 1 = 60 per minutes
Output of station 2 = 60/3
Output of station 2 =20 per minute
Output of station 3 = 2x 60/5
Output of station 3 =24per minute
Output of station 4 = 60/4
Output of station 4=15 per minute
Based on the above calculation the PROCESS CAPACITY of the machine paced line will either be 15 per minute or 900 bottles per hour (15minx60)
b)The BOTTLENECK in the process will be STATION 4
c) In a situation were an identical labelling machine is been added to the process there won't be any increase in the processing capacity in terms of bottles/hr reason been that the bottleneck is not the labelling machine.
Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio. Consider the following case: Graham Pharmaceuticals has a quick ratio of 2.00x, $31, 500 in cash, $17, 500 in accounts receivable, some assets of inventory, total $70,000, and total abilities of $24, 500. The company reported annual sales of $100,000 in the most recent annual report, over the past year, how often did Graham Pharmaceuticals sell and replace its inventory? a. 8.01 x.b. 5.24 x.c. 2.85 x.d. 4.75 x.The inventory turnover ratio across companies in the pharmaceutical industry is 4.05x. Based on this information, which of the following statements is true for Graham Pharmaceuticals? A. Graham Pharmaceuticals is holding less inventory per dollar of sales compared to the industry average. B. Graham Pharmaceuticals is holding more inventory per dollar of sales compared to the industry average. You are analyzing two companies that manufacture electronic toy s-Like Games Inc. and our Play Inc. Like Games was launched eight years ago, whereas Our Play is a relatively new company that has been in operation for only the past two years. However, both companies have an equal market share with sales of $100,000 each. You've collected company data to compare Like Games and our play. Last year the average companies in the coming year. You've collected data from the companies financial statements. This information is listed as follows:Using this information, complete the following statements to include in your analysis. Data collected (in dollars) Like Games Our Play Industary AverageAccounts receivable 2,700 3,900 3,850Net fixed assets 55,000 80,000 216,750Total assets 95,000 125,000 234,6001. A ____ days of sales outstanding represents an efficient credit and collection policy. between the two companies ____ is collecting cash from its customers faster than ____ but both companies are collecting their receivables less quickly than the industry average. 2. Our Play's fixed assets turnover ratio is ___ than that of Like Games. This could be because our play is relatively new company, so the acquisition cost of its fixed assets is ____ than the recorded cost of Like Games's fixed assets. 3. Like Games's total assets turnover ratio is ____ which is ___ than the industry's average total assets turnover ratio. In general, a higher total assets turnover ratio indicates greater efficiency.
Answer:
Asset Management Ratios
Part A:
1. Inventory turnover:
= d. 4.75 x
2. Based on this information, the true statement for Graham Pharmaceuticals is:
B. Graham Pharmaceuticals is holding more inventory per dollar of sales compared to the industry average.
Part B:
1. A __Average__ days of sales outstanding represents an efficient credit and collection policy. Between the two companies _Like Games__ is collecting cash from its customers faster than _Our Play_ but both companies are collecting their receivables less quickly than the industry average.
2. Our Play's fixed assets turnover ratio is _lower__ than that of Like Games. This could be because Our Play is relatively new company, so the acquisition cost of its fixed assets is _higher___ than the recorded cost of Like Games's fixed assets.
3. Like Games's total assets turnover ratio is _1.05x_ which is _higher_ than the industry's average total assets turnover ratio. In general, a higher total assets turnover ratio indicates greater efficiency.
Explanation:
a) Data and Calculations:
Graham Pharmaceuticals
Quick ratio = 2.00x
Cash = $31,500
Accounts receivable = $17,500
Inventory = x
Total current assets = $70,000
Total current liabilities = $24,500
Quick assets = $24,500 * 2 = $49,000 ($31,500 + $17,500)
Inventory (x) = $21,000 ($70,000 - $49,000)
Annual sales = $100,000
Inventory Turnover = $100,000/$21,000 = 4.76x
Part B:
Like Games Our Play Industry Average
Accounts receivable 2,700 3,900 3,850
Net fixed assets 55,000 80,000 216,750
Total assets 95,000 125,000 234,600
Sales revenue 100,000 100,000 100,000
Days Sales Outstanding 9.9 days 14.2 days 14x
Accounts receivable turnover 37x 25.6x 26x
Average Collection Period 9.9 days 14.3 days 14x
Fixed assets turnover ratio 1.82x 1.25x 0.46x
Total assets turnover ratio 1.05x 0.8x 0.43x
Average days of sales outstanding = Average Accounts Receivable/Sales * 365
Accounts receivable turnover = Net Sales/Average Receivable
Average Collection Period = 365/Accounts receivable turnover
Fixed assets turnover ratio = Net Sales/Net Fixed Assets
Total assets turnover ratio = Net Sales/Total assets
It costs Sheridan Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 1700 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Sheridan has sufficient unused capacity to produce the 1700 scales. If the special order is accepted, what will be the effect on net income
Answer:
$3,400 Increase
Explanation:
Computation to determine what will be the effect on net income
Using this formula
Effect on net income = Units ordered * (Special price - Variable cost)
Let plug in the formula
Effect on net income = 1700 * [$15- ($12+$1)]
Effect on net income = 1700 * ($15 -$13)
Effect on net income = 1700 *$2
Effect on net income = $3,400 Increase
Therefore If the special order is accepted, what will be the effect on net income will be $3,400 Increase
Imagine that David is preparing his will and is trying to decide how to divide his assets between his two grown children. His daughter, Tonya, is a chemical engineer who earns a high income. His son, Terry, opted out of college and went to work straight out of high school. Now Terry works in construction; he works just as hard as Tanya, but he is less affluent than she is.
Classify each example of possible ways David could divide his assets based on fairness and distribution.
a. Leave his money to the child whom he thinks deserves more money.
b. Leave his money to charity instead
c. Split his wealth evenly Terry and Tonya
d. Leave terry his entire wealth to offset the gap between him and his sister.
e. Tell his kids he will leave the money to whoever does the most to take care of him in his old age.
1. Fairness of equal outcomes
2. Fairness of equal opportunity
3. Fairness of process
4. Fairness of what is reserved or earned
Answer:
Fairness of Equal Outcomes: Split his wealth evenly between Terry and Tonya, Leave his money to charity instead.
Fairness of Equal Opportunity: Leave Terry his entire wealth to offset the gap between him and his sister.
Fairness of Process: Tell his kids he will leave the money to whoever does the most to take care of him in his old age.
Fairness of what is deserved or earned: Leave his money to the child whom he thinks deserves the most money.
For calendar year 3, Clark Corp. had depreciation of $300,000 on its income statement. On its Year 3 tax return, Clark had depreciation of $500,000. Clark's income statement also included $50,000 accrued warranty expense that will be deducted for tax purposes when paid in a future year. Clark's enacted tax rates was 25% for all years. These were Clark's only temporary differences. The total deferred tax expense for year 3 should be:
Answer:
Clark Corp.
The total deferred tax expense for year 3 should be:
= $62,500.
Explanation:
a) Data and Calculations:
Accounting depreciation expense = $300,000
Tax depreciation expense = $500,000
Temporary Difference = $200,000 ($500,000 - $300,000)
Accrued Warranty Expense 50,000
Total temporary differences = $250,000
Clark's enacted tax rate = 25%
Total deferred tax expense = $62,500 ($250,000 * 25%)
Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours at a rate of $2 per labor-hour. Strawberry and vanilla flavors are produced in Department SV. Chocolate is produced in Department C. Sven manages Department SV and Charlene manages Department C. The product costs (per thousand gallons) follow:
Strawberry Vanilla Chocolate
Direct labor (per 1,000 gallons) $766 $841 $1,141
Raw materials (per 1,000 gallons) 816 516 616
Requirement 1:
If the number of hours of labor per 1,000 gallons is 60 for strawberry, 70 for vanilla, and 100 for chocolate, compute the total cost of 1,000 gallons of each flavor using plantwide allocation.
Total cost
Strawberry $1,702
Vanilla $1,497
Chocolate $1,957
Requirement 2:
Charlene's department uses older, outdated machines. She believes that her department is being allocated some of the overhead of Department SV, which recently bought state-of-the-art machines. After she requested that overhead costs be broken down by department, the following information was discovered:
Department SV Department C
Overhead $88,760 $915
Machine-hours 25,360 37,600
Labor-hours 25,360 18,300
Using machine-hours as the department allocation base for Department SV and labor-hours as the department allocation base for Department C, compute the allocation rate for each.
Allocation rate
Department SV $3.50
Department C $0.05
Requirement 3:
Compute the cost of 1,000 gallons of each flavor of ice cream using the department allocation rates computed in requirement 2 if the number of machine-hours for 1,000 gallons of each of the three flavors of ice cream are as follows: strawberry, 60; vanilla, 70; and chocolate, 166. Direct labor hours by product remain the same as in requirement 1.
Requirement 4:
A) Was Charlene correct in her belief?
B) Department allocation generally yields more accurate product cost information.
1) True
2) False
Answer:
See below
Explanation:
a. Compute the total cost per 1,000 gallons
Strawberry Vanilla Chocolate
Direct labor $766 $841 $1,141
Raw materials $816 $516 $616
Overhead (60×$2)$120 ($70×2)$140 (100×$2) $200
Total cost $1,702 $1,497 $1,957
Therefore,
Total cost = $1,702 + $1,497 + $1,957 = $5,156
b. Compute the allocation rate for each department
Allocation base
Allocation rate
Department SV Per machine hour $88,760/25,360 $3.5
Department C Per labor hour
$915/18,300 $0.05
c. Compute the total cost
Strawberry Vanilla Chocolate
Direct labor $766 $841 $1,141
Raw materials $816 $516 $616
Overhead (60×$3.5)$210 (70×$3.5)$245 (100×$3.5)$350
Total cost $1,792 $1,707 $2,107
Therefore,
Total cost = $1,792 + $1,707 + $2,107 = $5,606
You have been retained to testify as a damages expert at a binding arbitration about the financial loss your client sustained when a supplier shipped it defective raw materials. Several days before the arbitration proceeding, you discovered that the arbitrator is a member of your country club who occasionally plays golf with you.
a. Do you have a conflict of interest in testifying under oath on behalf of your client?
b. Should you discuss this case with the arbitrator if you see him at the country club?
c. Does the arbitrator have a conflict of interest?
The Reserve Company had 606 million shares of common stock outstanding at January 1, 2016. The following activities affected common shares during the year: There are no potential common shares outstanding. 2016 Feb. 27 Purchased 18 million shares of treasury stock. Oct. 30 Sold the treasury shares purchased on February 27. Nov. 29 Issued 72 million new shares. Dec. 31 Net income for 2016 is $1,200 million. 2017 Jan. 14 Declared and issued a 2 for 1 stock split. Dec. 31 Net income for 2017 is $1,200 million. Required: 1. Determine the 2016 EPS. 2. Determine the 2017 EPS. 3. At what amount will the 2016 EPS be presented in the 2017 comparative financial statements
Answer:
1. $2.00
2. $0.88
3. $1.00
Explanation:
1. Calculation to determine the 2016 EPS
First step is to calculate the Total Movement of shares and WACSO
Date Movement of shares Ratio WACSO(no. of shares * Ratio)
1-Jan-16 $606 million*12/12 =$606 million
28-Feb-16 (18 million)*10/12=(15 million)
31-Oct-16 18 million*2/12=3 million
30-Nov-16 72 million*1/12=6 million
Total 678 million 600 million
Now let calculate 2016 EPS
Net income $1,200 million
÷Divided by WACSO 600 million
=EPS $2.00
($1,200 million/600 million)
Therefore 2016 EPS will be $2.00
2. Calculation to determine 2017 Earnings per share
First step is to calculate the No. of shares outstanding after stock split
No. of shares outstanding as of 2017 678 million
*Stock split 2
=No. of shares outstanding after stock split 1,356 million
(678 million*2)
Now let calculate 2017 EPS
Net income $1,200 million
÷Divided by WACSO 1,356 million
=EPS 0.88
($1,200 million/1,356 million)
Therefore 2017 EPS will be $0.88
3. Calculation to determine At what amount will the 2016 EPS be presented in the 2017
First step is calculate No. of shares outstanding after stock split
Wacso based on item no. 1 600 million
*Stock split 2
=No. of shares outstanding after stock split 1200 million
(600 million*2)
Now let calculate the 2016 EPS be presented in the 2017
Net income 1200 million
÷Divided by WACSO 1200 million
=EPS 1.00
(1200 million/1200 million)
Therefore At what amount will the 2016 EPS be presented in the 2017 will be $1.00
On January 1, 2020 Roberts acquires 100% of Smith by issuing 100,000 shares (par value $2, fair value $10). Smith will remain as a wholly owned subsidiary of Roberts. At acquisition date, Smith had a book value of assets of $800,000 and a book value of liabilities of $200,000. Included in the assets Smith had land with a book value of $400,000 and a fair value of $330,000. Included in the liabilities, Smith had a Note Payable with a book value of $120,000 and a fair value of $80,000. What is the amount of goodwill or gain on bargain purchase at January 1, 2020.
Answer:
$430,000
Explanation:
The excess of Purchase Price over the Net Assets taken over is known as Goodwill.
Acquisition of Assets and Liabilities of a subsidiary are made at their Acquisition date Fair Value amounts.
Assets Fair Value
Book Value $800,000
Adjust Land Revalued ($70,000)
Assets fair value $730,000
Liabilities Fair Value
Book Value $200,000
Adjust Note Payable Revalued ($40,000)
Liabilities fair value $160,000
Now,
Net Assets Acquired = $730,000 - $160,000 = $570,000
Purchase Price = 100,000 x $10 = $1,000,000
Goodwill = $430,000
Therefore,
the amount of goodwill or gain on bargain purchase at January 1, 2020 is $430,000
You are the manager of a small hotel with 40 rooms in Niagara. Your business has dropped almost 90% in recent months. Your cash remaining is enough to run the business for 3 more months.
Apply the 6 thinking hats approach, what would you recommend to do if you were:
1. wearing a blue hat?
2. wearing a white hat?
3. wearing a green hat?
4. wearing a red hat?
5. wearing a yellow hat?
6. wearing a black hat?
After considering the views from different perspectives, what is your recommendation?
The U.S. Chamber of Commerce provides a free monthly bank reconciliation template at business.uschamber/tools/bankre_m.asp. Hanna Lind just received her bank statement notice online. She wants to reconcile her checking account with her bank statement and has chosen to reconcile her accounts manually. Her checkbook shows a balance of $715. Her bank statement reflects a balance of $1,386. Checks outstanding are No. 2146, $53; No. 2148, $93; No. 2152, $178; and No. 2153, $490. Deposits in transit are $122 and $77. There is a $18 service charge and $9 ATM charge in addition to notes collected of $68 and $15.
Prepare Hanna’s bank reconciliation.
Answer:
Hanna’s bank reconciliation Statement.
Balance as per Bank Statement $1,386
Add Outstanding Lodgments :
Lodgments ($122 + $77) $199
Less Unpresented Checks :
No. 2146, $53
No. 2148, $93
No. 2152, $178
No. 2153, $490 ($814)
Balance as per Cash Book $771
Explanation:
The Bank Reconciliation Statement is used to provide an accurate cash balance figure and is prepared as above.
A company had the following transactions during the year: 1. Issued $250,000 of par value common stock for cash. 2. Recorded and paid wages expense of $120,000. 3. Acquired land by issuing common stock of par value $1,000,000. 4. Declared and paid a cash dividend of $20,000. 5. Sold a long-term investment (cost $6,000) for cash of $6,000. 6. Recorded cash sales of $800,000. 7. Bought inventory for cash of $320,000. 8. Acquired an investment in another company's stock for cash of $42,000. 9. Converted bonds payable to common stock in the amount of $1,000,000. 10. Repaid a 6-year note payable in the amount of $440,000. What is the net cash provided by investing activities
Answer:
Net cash provided by investing activities determination
Explanation:
Investing Activities involve the Sourcing of Capital and repayment of the Capital and Return to Holders of Sources of Finance.
Thus, Consider events which Source Capital (Involving Cash) and providing repayment of the Capital and Return to Holders of Sources of Finance.
Free contract is the _____.
The City of Oxbow General Fund has the following net resources at year-end:
$250,000 unexpended proceeds of a state grand required by law to be used for health education.
$10,000 of prepaid insurance.
$600,000 rainy day fund approved by city council for use under specified circumstances.
$200,000 budget stabilization fund to be used in the event of revenue shortfall.
$275,000 provided for contractual obligations for capital projects.
$26,000 unexpended proceeds of a tax required by law to be used for emergency 911 services.
$1,622,000 total fund balance.
Prepare the fund balance section of the balance sheet.
Answer:
$1,622,000
Explanation:
Preparation of the fund balance section of the balance sheet.
Partial Balance Sheet-General Fund
As of December 31
FUND BALANCES SECTION OF THE BALANCE SHEET
Nonspendable:
Prepaid Insurance $10,000
Restricted:
Intergovernmental Grants $250,000
Emergency services $26,000
Committed:
Rainy Day Fund $600,000
Capital Projects $275,000
Assigned:
Unassigned $461,000
TOTAL fund balance $1,622,000
Therefore the fund balance section of the balance sheet will be $1,622,000
Why would it be economically efficient to require a natural monopoly LOADING... to charge a price equal to marginal cost? A. Economic efficiency requires natural monopolies to earn zero economic profits. B. Economic efficiency requires the total benefit of producing a good to equal the total cost of producing it. C. Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers equal to the average cost of producing it. D. Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers greater than the additional cost of producing it. E. Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers equal to the additional cost of producing it.
Answer:
Option C is the correct Option.
Explanation:
First of all, let me clear it to you that, it is a multiple choice question with 5 options in it.
Question Statement:
Why would it be economically efficient to require a natural monopoly to charge a price equal to marginal cost?
Solution:
The correct answer to this question is option C .
Option C = Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers equal to the average cost of producing it
Reasoning:
The marginal value of the last unit of output delivered to consumers is equal to the marginal cost of production. The overall welfare surplus is maximized, including both user and producer surpluses. There is no loss of dead weight.
"Justin Company currently produces and sells 4,000 units of a product that has a contribution margin of $6 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $18,000. The company is considering investing in new technology that would decrease the variable cost per unit to $6 per unit and double total fixed costs. The company expects the new technology to increase production and sales to 9,000 units of product. What sales price would have to be charged to earn a $90,000 target profit assuming the investment in technology is made?"
Answer:i dont know
Explanation:
Pulmonary Company's perpetual inventory records indicate that $237,390 of merchandise should be on hand on June 30, 2016. The physical inventory indicates that $211,280 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Pulmonary Company for the year ended June 30, 2016. Assume that the inventory shrinkage is a normal amount.
Answer:
Dr Cost of Merchandise Sold $26,110
Cr Merchandise Inventory $26,110
Explanation:
Preparation of the adjusting entry for the inventory shrinkage for Pulmonary Company for the year ended June 30, 2016.
June 30 2016
Dr Cost of Merchandise Sold $26,110
Cr Merchandise Inventory $26,110
($237,390 – $211,280=$26,110)
(Being to record inventory shrinkage)
Identify two employment laws which might affect
easyJet plc's business activities.
Answer:
EasyJet Plc is the eighth largest airline in the world and the second biggest in Europe, . The business generated revenue per passenger of £58 compared with a cost per seat . The return on capital employed was just under 12% in 2017. regarding Brexit which might impact on both revenue and costs going forward.
Explanation:I dont have one
Which of the following statements is CORRECT?
a. A portfolio with a large number of randomly selected stocks would have more market risk than a single stock that has a beta of 0.5, assuming that the stock's beta was correctly calculated and is stable.
b. If a stock has a negative beta, its expected return must be negative.
c. If the returns on two stocks are perfectly positively correlated (i.e., the correlation coefficient is 1.0) and these stocks have identical standard deviations, an equally weighted portfolio of the two stocks will have a standard deviation that is less than that of the individual stocks.
d. According to the CAPM, stocks with higher standard deviations of returns must also have higher expected returns.
e. A portfolio with a large number of randomly selected stocks would have less market risk than a single stock that has a beta of 0.5.
Answer:
gfhthtghhgjcggfhggchgvjjhvjhvhvk
On October 1, 2021, Ivanhoe Company purchased to hold to maturity, 3000, $1000, 8% bonds for $3460000 which includes $50000 accrued interest. The bonds, which mature on February 1, 2030, pay interest semiannually on February 1 and August 1. Ivanhoe uses the straight-line method of amortization. The bonds should be reported in the December 31, 2021 balance sheet at a carrying value of
Answer:
$3,422,300
Explanation:
Calculation to determine what bonds should be reported in the December 31, 2021 balance sheet at a carrying value
Bonds=($3,460,000 - $50,000)+[($3,460,000 - $50,000)-(3,000*$1,000)*3/100]
Bonds=$3,410,000 +($3,410,000 -$3,000,000 *3/100)
Bonds=$3,410,000+($410,000*3/100)
Bonds=$3,410,000+$12,300
Bonds=$3,422,300
Therefore bonds should be reported in the December 31, 2021 balance sheet at a carrying value of $3,422,300
Trade policies a. alter the trade balance because they alter imports of the country that implemented them. b. do not alter the trade balance because they cannot alter the real exchange rate of the currency of the country that implements them. c. alter the trade balance because they alter net capital outflow of the country that implemented them. d. do not alter the trade balance because they cannot alter the national saving or domestic investment of the country that implements them.
Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for merchandise for the next three months follow. Budgeted July August September Sales $ 62,700 $ 81,300 $ 49,300 Cash payments for merchandise 43,000 32,300 33,100 Sales are 15% cash and 85% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $13,600 in cash; $50,000 in accounts receivable; $5,800 in accounts payable; and a $3,300 balance in loans payable. A minimum cash balance of $13,300 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 2% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (5% of sales), office salaries ($5,300 per month), and rent ($7,800 per month). (1) Prepare a cash receipts budget for July, August, and September. (2) Prepare a cash budget for each of the months of July, August, and September.
Answer:
(1)Total cash receipts:
July = $59,405
August = $65,490
September = $76,500
2-a. Ending Cash Balance:
July = $13,300
August = $26,371
September = $54,206
2-b. Loan Balance End of Month:
July = $2,896
August = $0
September = $0
Explanation:
(1) Prepare a cash receipts budget for July, August, and September.
Note: See part (1) of the attached excel file for the cash receipts budget for July, August, and September.
From the attached excel file, we have:
Total cash receipts:
July = $59,405
August = $65,490
September = $76,500
(2) Prepare a cash budget for each of the months of July, August, and September.
Note: See part (2) of the attached excel file for the cash budget for July, August, and September.
In the attached excel file, the following calculation is made:
July loan repayment = July preliminary cash balance - Minimum cash balance required = $13,704 - $13,300 = $404
From the attached excel file, we have:
2-a. Ending Cash Balance:
July = $13,300
August = $26,371
September = $54,206
2-b. Loan Balance End of Month:
July = $2,896
August = $0
September = $0
surrender of shares is the same thing as forfeiture of shares comment
Answer:
False
Explanation:
The main difference between "Surrender of Shares" and "Forfeiture of shares" is the existence of compulsiveness. Although the two terms result in the loss of shares, the "Surrender of Shares" is done voluntarily, when the company or the shareholder decides to return the shares. The "Forfeiture of shares" occurs when the shares are taken compulsorily, due to non-payment or failure to meet deadlines.
Kinnear Plastics manufactures various components for the aircraft and marine industry. Kinnear buys plastic from two vendors: Tappan Corporation and Hill Enterprises. Kinnear chooses the vendor based on price. Once the plastic is received, it is inspected to ensure that it is suitable for production. Plastic that is deemed unsuitable is disposed of. The controller at Kinnear collected the following information on purchases for the past year: Tappan Hill Total purchases (tons) 4,000 6,500 Plastic discarded 100 520 The purchasing manager has just received bids on an order for 310 tons of plastic from both Tappan and Hill. Tappan bid $1,950 and Hill bid $1,886 per ton.
Required:
a. Assume that the average quality, measured by the amounts discarded from the two companies, will continue as in the past. What is the effective cost per ton for both Tappan and Hill?
b. Assume all else remains the same. What bid by Tappan would make Kinnear indifferent between buying from Tappan or Hill?
Answer:
A. Effective cost is $2000 for tappan, $2050 for hill
B. $1998.75
Explanation:
For tappan
Total tons purchased = 4000
Plastic discarded = 100
Percentage of discarded = 100/4000 x 100 = 2.5%
Percentage of accepted( not discarded) = 100 - 2.5% = 97.5%
Bid price = $1950
Effective cost of Tappan = 1950/97.5% = 1950/0.975 = $2000
For Hill
Total tons purchased = 6500
Plastic discarded = 520
% discarded = 520/6500*100 = 8%
% accepted = 100%-8% = 92%
Bid price = $1886
Effective cost for Hill = 1886/92% = $2050
2. Bid of Tappan/97.5% = $2050
We cross multiply
Bid of Tappan = 2050 x 0.975
= $1998.75
This bid by Tappan would make kinnear indifferent between buying from both
i also solve this in a table format as seen in the atttachment
Which of the four Ps does the question of discounts apply to?
Answer:
product, price, place, and promotion.
The joint processing costs in this operation: should be ignored in determining whether to sell at split-off or process further. should be allocated to products to determine whether they are sold at split-off or processed further. should be ignored in making all product decisions. are never included in product cost, as they are misleading to all management decisions.
Answer:
Should be ignored in determining whether to sell at split-off or process further
Explanation:
In the given situation, the joint processing cost should be ignored while calculating it for sell at the split off point or process further because we can see whether it would provide the additional advantage or it should not be split off or it should be further processed
Therefore the first option is correct
Carey Company owns a plot of land on which buried toxic wastes have been discovered. Since it will require several years and a considerable sum of money before the property is fully detoxified and capable of generating revenues, Carey wishes to sell the land now. It has located two potential buyers.
Buyer A, who is willing to pay $850,000 for the land now, or Buyer B, who is willing to make 20 annual payments of $90,000, with the first payment to be made at the end of the year. Assuming that the appropriate rate of interest is 9%, who should Carey sell the land. Show calculations.
Answer:
Carey should choose buyer B
$911,569.11
Explanation:
Vella owns and operates an illegal gambling establishment. In connection with this activity, he has the following expenses during the year: Rent $43,500 Bribes 65,250 Travel expenses 4,350 Utilities 26,100 Wages 274,250 Payroll taxes 21,750 Property insurance 2,175 Illegal kickbacks 39,150 What are Vella's total deductible expenses for tax purposes
Answer:
$372,125
Explanation:
Calculation to determine Vella's total deductible expenses for tax purposes
Rent $43,500
AddTravel expenses 4,350
Add Utilities 26,100
Add Wages 274,250
Add Payroll taxes 21,750
Add Property insurance 2,175
Total deductible expenses $372,125
Therefore total deductible expenses for tax purposes will be $372,125