Answer: a. will cause him to raise his price and reduce the number of meals that he serves
Explanation:
The owner makes a lot of meals that rely on salmon. With salmon prices going up, he will have to pay more money to buy the salmon that he uses to prepare the meals.
This would reduce his profit margin. He will therefore have to increase the price at which he sells his meals so as to recuperate the increased costs. He will also reduce the number of meals he serves because he will have to buy less salmon so that he does not incur a larger cost.
Project L costs $45,000, its expected cash inflows are $11,000 per year for 8 years, and its WACC is 8%. What is the project's discounted payback
Answer:
5.155 year
Explanation:
The computation of the projected discounted payback period is shown below:
Year Inflow Present value Present value Cumulative PV
factor at 8%
1 11000 0.926 10186 10186
2 11000 0.857 9427 19613
3 11000 0.794 8734 28347
4 11000 0.735 8085 36432
5 11000 0.681 7491 43923
6 11000 0.631 6941 50864
7 11000 0.583 6413 57277
8 11000 0.540 5940 63217
Now
Discounted payback period is
= 5 year + (45000-43923) ÷ 6941
= 5 year + 0.155
= 5.155 year
Kareem bought a rental house in March 2014 for $300,000, of which $50,000 is allocated to the land and $250,000 to the building. Early in 2016, he had a tennis court bt1ilt in the backyard at a cost of $7,500. Kareem has deducted $30,900 for depreciation on the house and $1,300 for depreciation on the cot1rt. In January 2019, he sells the house and tennis court for $330,000 cash.
a. What is Kareem's realized gain or loss?
b. What is the adjusted basis of the rental house and land at the time of the sale?
c. What is the adjusted basis of the tennis court at the time of the sale?
d. If the buyer takes the property subject to the $80,000 mortgage, rather than assuming it, what is Kareem's realized gain or loss?
Answer: See explanation
Explanation:
a. What is Kareem's realized gain or loss?
Amount realized from sale = $330,000
Less: adjusted basis for house and land = $269000
Less: tennis court adjusted basis = $6200
Realized gain = $54700
b. What is the adjusted basis of the rental house and land at the time of the sale?
Original land basis = $50000
Add: Original house basis = $25000
Less: Depreciation = $30900
Adjusted basis = $269100
c. What is the adjusted basis of the tennis court at the time of the sale?
Tennis court original basis = $7500
Less: Depreciation = $1300
Adjusted basis of the tennis court = $6200
d. If the buyer takes the property subject to the $80,000 mortgage, rather than assuming it, what is Kareem's realized gain or loss?
Amount realized = $330000 + $80000 = $410,000
Less: Adjusted basis for house and land = $269100
Less: Adjusted basis of tennis court = $6200
Realized gain = $134700
Exercise 7-9 Percent of receivables method LO P3 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,300 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,300 debit.
Question Completion:
Assume that the Accounts Receivable balance is $570,000.
Answer:
a. The balance of the Allowance for Doubtful Accounts = $34,200.
b. Adjusting Entry to record Bad Debts Expense:
Debit Bad Debts Expense $21,900
Credit Allowance for Doubtful Accounts $21,900
To record bad debts expense and bring the balance of the Allowance for Doubtful Accounts to a credit balance of $34,200 ($21,900 +$12,300).
c. Adjusting Entry to record Bad Debts Expense:
Debit Bad Debts Expense $35,500
Credit Allowance for Doubtful Accounts $35,500
To record bad debts expense and bring the balance of the Allowance for Doubtful Accounts to a credit balance of $34,200 ($35,500 - $1,300).
Explanation:
a) Data and Calculations:
Accounts receivable balance = $570,000
Allowance for Doubtful Accounts = $34,200 ($570,000 * 6%)
Unadjusted balance in the Allowance for Doubtful Accounts = $12,300 credit
Bad Debts Expense = $21,900 ($34,200 - $12,300)
Unadjusted balance in the Allowance for Doubtful Accounts = $1,200 debit
Bad Debts Expense = $35,500 ($34,200 + $1,300)
"Your first morning in your new office, you reflect on what type of manager and leader you hope to be. Which of the following best reflects what you believe about employees and how they can best be led? Select an option from the choices below and click Submit. Employees are more loyal and productive if they feel that their leader is admirable, caring, and ethical. Employees’ behavior can be shaped and motivated, not only by rewarding good behavior but also by penalizing bad behavior. Employees need to be discouraged from bad behavior. They work harder when they know that failure has consequences."
Answer:
A. Employees are more loyal and productive if they feel that their leader is admirable, caring, and ethical.
Explanation:
Leadership here has to do with how the manager acts towards the employees. Employees can best be led if the person in the leadership position is one who inspires and motivates them to be their best. The managers ability to put confidence in the employees by effective communication as well as having these characteristics such as being admirable, and ethical would have the employees respecting him and also raising their productivity in the firm.
Javonte Co. set standards of 2 hours of direct labor per unit of product and $16.10 per hour for the labor rate. During October, the company uses 13,000 hours of direct labor at a $211,900 total cost to produce 6,700 units of product. In November, the company uses 17,000 hours of direct labor at a $277,950 total cost to produce 7,100 units of product.
AH= Actual Hours
SH =Standard Hours
AR =Actual Rate
SR =Standard Rate
Required:
a. Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months. Classify each variance as favorable or unfavorable.
b. Javonte investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further?
Answer:
Part a.
October Labor Rate Variance (2600) unfavorable
October Labor Efficiency Variance 6440 favorable
Labor Cost Variance For October 3840 favorable
November Labor Rate Variance (4250) unfavorable
November Labor Efficiency Variance (45080) unfavorable
Labor Cost Variance For November 49330 unfavorable
Part b.
Direct labor Efficiency variance for November will be investigated further as it varies more than 5 % 0f actual direct labor cost.
Explanation:
Direct Labor Rate Variance For October
Time * Rate = Amount
Actual Hours Worked 13000 * 16.3 actual = 211900
Actual Hours Worked 13000 * 16.10 standard = 209300
Labor Rate Variance 0.2 (2600) unfavorable
When actual rate is greater than the standard rate the variance is unfavorable.
Direct Labor Rate Variance For November
Time * Rate = Amount
Actual Hours Worked 17000 * 16.35 actual = 277950
Actual Hours Worked 17000 * 16.10 standard = 273700
Labor Rate Variance 0.25 (4250) unfavorable
When actual rate is greater than the standard rate the variance is unfavorable.
Direct Labor Efficiency Variance for October
Time * Rate = Amount
Actual Hours Worked 13000 * 16.1 standard = 209300
Standard Hours Allowed 13400 * 16.10 standard = 215740
( 2* 6700)
Labor Efficiency Variance 400 6440 favorable
When actual hours are less than the standard hours allowed the variance is favorable.
Direct Labor Efficiency Variance for November
Time * Rate = Amount
Actual Hours Worked 17000 * 16.1 standard = 273700
Standard Hours Allowed 14200 * 16.10 standard = 228620
( 2* 7100)
Labor Efficiency Variance 2800 (45080) unfavorable
When actual hours are more than the standard hours allowed the variance is unfavorable.
Labor Cost Variance For October
Standard hours * standard rate- Actual hours * actual rate
13400 * 16.10- 13000 * 16.3
= 215740 -211900
=3840 favorable
Labor Cost Variance For November
Standard hours * standard rate- Actual hours * actual rate
14200 * 16.1 - 17000 * 16.35
= 228620 - 277950
=49330 unfavorable
Direct labor Efficiency variance for November will be investigated further as it varies more than 5 % 0f actual direct labor cost.
45080> 5% of 277950
5% of 277950 = 13897.5
13897.5 > 45080
Park Co. holds a 80% interest in San Marino Co. During 2019, San Marino sold inventory costing $1,155,000 to Park for $1,650,000. A total of $600,000 of this inventory was not sold to outsiders until 2020. During 2020, San Marino sold inventory costing $1,080,000 to Park for $1,800,000. A total of $750,000 of this inventory was not sold to outsiders until 2021. In 2020, Park reported a net income of $2,250,000 while San Marino reported $1,350,000. What is the noncontrolling interest in the 2020 income of the subsidiary
Answer:
Park Co and San Marino Co.
The noncontrolling interest in the 2020 income of the subsidiary is:
= $270,000.
Explanation:
a) Data and Calculation:
Interest in San Marino Co. = 80%
Cost of 2020 Inventory sold by San Marino to Park = $1,080,000
Sales value of the inventory = $1,800,000
Profit element = $720,000 ($1,800,000 - $1,080,000)
Sales value of unsold inventory = $750,000
Profit element in unsold inventory = $750,00/$1,800,000 * $720,000
= $300,000
Net income of San Marino for 2020 = $1,350,000
Less profit element in unsold inventory 300,000
Adjusted net income = $1,050,000
Non-controlling interest (20%) 210,000 (20% of $1,050,000)
Non-controlling interest (20%) in
unsold inventory = 60,000
Total net income attributable to
Non-controlling interest $270,000
(which is equal to 20% of the subsidiary's net income)
Dogs R Us has two product lines: collars and leashes. Income statement data forecasted for next year is as follows: COLLARS LEASHES TOTAL Sales revenue $210,000 $150,000 $360,000 Variable expenses $135,000 $120,000 $255,000 Contribution margin $75,000 $30,000 $105,000 Fixed expenses $56,000 $38,000 $94,000 Operating income (loss) $19,000 ($8,000) $11,000 If $27,435 in fixed costs will be eliminated by dropping the LEASHES line, how will TOTAL operating income be affected after the Leashes line is dropped? If income drops, use a negative sign in front of the number.
Answer: -$2,565
Explanation:
Operating Income with the Leashes line is $11,000.
If the Leashes line is dropped, the operating income would be:
= Sales of Collars - Variable expenses - Fixed expenses of Collars - Residual fixed expenses pf Leashes
= 210,000 - 135,000 - 56,000 - (38,000 - 27,435)
= $8,435
Change in Total income = Income without Leashes - Income with LEASHES
= 8,435 - 11,000
= -$2,565
The total operating income will be affected up to the sum of ($2,565) after the Leashes line is dropped.
Given data
Operating Income with the Leashes line is $11,000.
Now, If the Leashes line is dropped:
Operating income = Sales of Collars - Variable expenses - Fixed expenses of Collars - Residual fixed expenses pf Leashes
Operating income = 210,000 - 135,000 - 56,000 - (38,000 - 27,435)
Operating income = $8,435
Change in Total income = Income without Leashes - Income with Leashes
Change in Total income = $8,435 - $11,000
Change in Total income = -$2,565
Therefore, the total operating income will be affected up to the sum of ($2,565) after the Leashes line is dropped.
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A company had stock outstanding as follows during each of its first three years of operations: 2,500 shares of 10%, $100 par, cumulative preferred stock and 50,000 shares of $10 par common stock. The amounts distributed as dividends follow. Determine the total and per-share dividends for each class of stock for each year by completing the schedule. Preferred Common Year Dividends Total Per Share Total Per Share1 $10,000 2 25,000 3 60,000
Answer:
See the attached photo for the completed the schedule.
Explanation:
Note: See the attached photo for the completed the schedule.
In the attach excel file, the following formulae and calculations are used:
Peferred stock dividend per share = Total cumulative preferred stock dividend paid in a year / Number of cumulative preferred shares
Common stock dividend per share = Total common stock dividend paid in a year / Number of common shares
Total cumulative preferred stock dividend = Number of cumulative preferred stock * Par value * Dividend rate = 2,500 * $100 * 10% = 2,500 * $100 * 10% = $25,000
Outstanding cumulative preferred stock dividend in Year 1 = Total cumulative preferred stock dividend - Total cumulative preferred stock dividend paid in Year 1 = $25,000 - $10,000 = $15,000
Outstanding cumulative preferred stock dividend in Year 2 = Outstanding cumulative preferred stock dividend in Year 1 = $15,000
Total cumulative preferred stock dividend paid in Year 3 = Total cumulative preferred stock dividend + Outstanding cumulative preferred stock dividend in Year 2 = $25,000 + $15,000 = $40,000
Total common stock dividend paid in Year 3 = Dividend distributed in Year 3 - Total cumulative preferred stock dividend paid in Year 3 = $60,000 - $40,000 = $20,000
During April, Cavy Company incurred factory overhead as follows:Indirect materials $10,500Factory supervision labor 4,000Utilities 500Depreciation (factory) 620Small tools 370Equipment rental 730Journalize the entry to record the factory overhead incurred during April. If an amount box does not require an entry, leave it blank.
Answer:
Date Account Title Debit Credit
April Factory Overhead $16,720
Indirect materials $10,500
Wages payable $4,000
Utilities payable $ 500
Accumulated Depreciation $ 620
Small tools $ 370
Equipment rental $ 730
REQUIRED: Prepare a detailed balance sheet. Listed below is a list of accounts and their respective balances for the Maximum Company: ADVERTISING EXPENSE $ 100,000 INSURANCE EXPENSE $ 100,000 OPERATING EXPENSES- OTHER $ 75,000 PURCHASES $ 50,000 REVENUES $ 1,000,000 SALARIES AND WAGES $250,000 Other Information: Inventory at the beginning of the year was $ 50,000 and at the end of the year was $ 40,000. Accrued wages of $ 5,000 have not been included in the above balances. Payroll taxes are 25% of Salaries and Wages. Total Fixed Assets equal $ 3,000,000 which breaks down as follows: Land- $750,000; Building and Equipment- $2,000,000; and Furniture- $250,000. For depreciation purposes, the XYZ Company uses the straight-line method. The depreciable assets have a useful life of 10 years and no residual value. XYZ has a long-term note of $ 1,000,000 and pays an interest rate of 10%. Rent is calculated as 1% of gross profit plus $500 per month. The XYZ pays income taxes at a rate of 25%. REQUIRED Prepare a detailed income statement.
Answer:
Maximum Company
Income Statement
Revenue $ 1,000,000
Less Cost of Sales
Beginning Inventory $ 50,000
Purchases $ 50,000
Less Ending Inventory ($40,000) ($60,000)
Gross Profit $940,000
Less Expenses
Salaries and Wages ($250,000 + $5,000) $255,000
Advertising expenses $100,000
Insurance expenses $100,000
Other Operating expenses $75,000
Depreciation $225,000
Interest expense $100,000
Rent expense $9,900
Payroll taxes $63,750 ($898,650)
Net Income before tax $41,350
Income tax expense ($10,338)
Net Income after tax $31,012
Explanation:
Depreciation expense :
Depreciation expense = (Cost - Salvage Value) ÷ Estimated Useful Life
therefore,
Depreciation expense = ($2,250,000) ÷ 10 = $225,000
Note :Land is not a depreciable asset
Interest expense :
Interest expense = $1,000,000 x 10% = $100,000
Rent expense :
Use the cost formula provided.
Rent expense = Gross profit x 1 % + $500
= $940,000 x 1 % + $500
= $9,900
Jupiter Satellite Corporation earned $29 million for the fiscal year ending yesterday. The firm also paid out 30 percent of its earnings as dividends yesterday. The firm will continue to pay out 30 percent of its earnings as annual, end-of-year dividends. The remaining 70 percent of earnings is retained by the company for use in projects. The company has 2.6 million shares of common stock outstanding. The current stock price is $105. The historical return on equity (ROE) of 11 percent is expected to continue in the future. What is the required rate of return on the stock
Answer:
11.13%
Explanation:
Calculation to determine the required rate of return on the stock
Using this formula
Required rate of return=Last EPS*Payout*(1+RoE*(1-payout rate))/Current Price+RoE*(1-payout rate)
Let plug in the formula
Required rate of return=29/2.6*30%*(1+11%*(1-30%))/105+11%*(1-30%)
Required rate of return=11.13%
Therefore the required rate of return on the stock will be 11.13%
Consider a firm with an EBIT of $559,000. The firm finances its assets with $1,090,000 debt (costing 6.4 percent) and 209,000 shares of stock selling at $15.00 per share. The firm is considering increasing its debt by $900,000, using the proceeds to buy back 84,000 shares of stock. The firm is in the 35 percent tax bracket. The change in capital structure will have no effect on the operations of the firm. Thus, EBIT will remain at $559,000. Calculate the EPS before AND after the change in capital structure and indicate changes in EPS. (Round your answers to 4 decimal places.) EPS before $ EPS after $ Difference $
Answer:
EPS before change in capital structure = $2.34
EPS after change in capital structure $3.45
Difference in EPS caused by the change ($1.11)
Explanation:
a) Data and Calculations:
EBIT = $559,000
6.4% Debts = $1,090,000
Common stock = 209,000 shares at $15 per share
EPS before increasing debt:
EBIT = $559,000
Interest (69,760) (6.4% of $1,090,000)
Net income = $489,240
EPS = $489,240/209,000 = $2.34 per share
EPS after increasing debt:
New debt = $1,990,000 ($1,090,000 + $900,000)
New equity shares = 125,000 shares (209,000 - 84,000)
EBIT = $559,000
Interest (127,360) (6.4% of $1,990,000)
Net income = $431,640
EPS = $431,640/125,000 = $3.45 per share
EPS before change in capital structure = $2.34
EPS after change in capital structure $3.45
Difference in EPS caused by the change ($1.11)
Money serves three functions in the economy: medium of exchange, unit of account, and store of value.
For each of the following statements about inflation, indicate which function of money inflation is hindering.
Statement Store of value Unit of account Medium of exchange
Inflation erodes money's purchasing power.
Inflation causes menu costs.
In some countries with hyperinflation, prices are posted in terms of U.S. dollars rather than the local currency, even though the local currency is still used to purchase the good.
Answer:
medium of exchange
store of value
unit of account
Explanation:
Money is a valuable commodity and a medium of exchange. Modern economies use flat money that is not a community nor backed by the economy.
What do you mean by money as a medium of exchange?Money is a medium of exchange; allows people to get what they need to live. Trade was one of the exchanges of goods before money was created.
Like gold and other precious metals, money is a valuable commodity because to many people it represents something valuable.
About inflation, it leads the rise in prices and services and is a reason of the production of goods and services also gets affected in the economy.
Hence, Inflation affects the flow of money in the economy by reducing the purchasing power of clients.
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Cornerstone Exercise 7-21 (Algorithmic) Units-of-Production Depreciation Irons Delivery Inc. purchased a new delivery truck for $42,000 on January 1, 2019. The truck is expected to have a $2,000 residual value at the end of its 5-year useful life. Irons uses the units-of-production method of depreciation. Irons expects the truck to run for 150,000 miles. The actual miles driven in 2019 and 2020 were 41,000 and 36,000, respectively. Required: Prepare the journal entry to record depreciation expense for 2019 and 2020. Round your answers to the nearest dollar. Do not round intermediate calculations.
Answer:
2019
Debit : Depreciation Expense $11,070
Credit : Accumulated Depreciation $11,070
2020
Debit : Depreciation Expense $9,720
Credit : Accumulated Depreciation $9,720
Explanation:
Step 1 : Determine the rate of depreciation
Rate of Depreciation = (Cost - Residual Value) ÷ Estimated Production
= ($42,000 - $2,000) ÷ 150,000 miles
= $0.26666 or $0.27
Step 2 : Determine the Depreciation Expense
Depreciation Expense = Units for the period x Rate of Depreciation
therefore.
Depreciation Expense - 2019 = $0.27 x 41,000
= $11,070
Depreciation Expense - 2020 = $0.27 x 36,000
= $9,720
Step 3 : Journal entries
2019
Debit : Depreciation Expense $11,070
Credit : Accumulated Depreciation $11,070
2020
Debit : Depreciation Expense $9,720
Credit : Accumulated Depreciation $9,720
how can a business deal with employees who have lack of focus and future goals ?
Answer:
motivation
Explanation:
Encourage them,make them see vision .
Graph with x axis labeled Quantity Demanded and numbered in hundreds, 100 to 500. Y axis is Price, with prices 0 to 6. A line r © Public Domain Based on the graph, how is quantity demanded related to price? (5 points) a Quantity demanded decreases as price decreases. b Quantity demanded decreases as price increases. c Quantity demanded increases as price increases. d Quantity demanded is equal to the product's price.
Answer:https://quizlet.com/198252271/0109-module-one-exam-flash-cards/
Explanation:
i think this is it
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $36 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally:
Per Unit 15,000 Units Per Year
Direct materials $9 $135,000
Direct labor 11 165,000
Variable manufacturing overhead 2 30,000
Fixed manufacturing overhead, traceable 6* 90,000
Fixed manufacturing overhead, allocated 13 195,000
Total cost $41 $615,000
Required:
a. Assuming that the company has no alternative use for the facilities that are now being used to produce the carburetors, compute the total cost of making and buying the parts.
b. Should the outside supplier's offer be accepted?
c. Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $105,000 per year. Compute the total cost of making and buying the parts.
d. Should Troy Engines, Ltd., accept the offer to buy the carburetors for $31 per unit?
he following information relates to Halloran Co.'s accounts receivable for 2021: Accounts receivable balance, 1/1/2021 $ 840,000 Credit sales for 2021 3,300,000 Accounts receivable written off during 2021 70,000 Collections from customers during 2021 3,100,000 Allowance for uncollectible accounts balance, 12/31/2021 210,000 What amount should Halloran report for accounts receivable, before allowances, at December 31, 2021
Answer:
$970,000
Explanation:
Accounts receivable balance, 1/1/2021 = $840,000
Credit sales for 2021 = $3,300,000
Collections from customers during 2021 = $3,100,000
Accounts receivable written off during 2021 = $70,000
Allowance for uncollectible account balance 12/31/2021 = $210,000
Goran report for accounts receivable before allowances at December 31, 2021 would be;
= Beginning accounts receivables + Credit sales for 2021 - Accounts receivables written off during 2021 - Collections from customers during 2021
= $840,000 + $3,300,000 - $70,000 - $3,100,000
= $970,000
Heavenly Pastries, Inc. Heavenly Pastries, Inc. was founded in 1998 by Gary Houser in Boston, Massachusetts. Over the years, Heavenly Pastries grew from a small neighborhood shop to a national brand. In 2015 Heavenly Pastries went public. At the time of the public offering, there were 100 stores across the country, employing almost 1,000 employees. Over the next three years, Heavenly Pastries doubled the number of stores and employees. Corporate headquarters, still located in Boston, realized that the accounting information system needed to be upgraded. In May, 2019, the Information Technology Division (IT) was charged with upgrading the payroll software.
The Division consists of two departments, Development and Operations. The Development Department is responsible for the coding and testing of the payroll software; the Operations Department is responsible for the operation and maintenance of the new payroll software. Steven Miller is the IT Division manager. Since he supervises both departments, Steve has global access to all aspects of the payroll software, including employee additions, pay rate changes, and employee benefits changes. Steven Miller has been with Heavenly Pastries for just over one year.
Gary Houser Heavenly Pastries- Information Technology Division
He has been struggling with a gambling addiction for the past five years and has run up considerable debts. Subsequent to turning control of the new payroll software over to the Payroll Department, and before the first payroll was run using the new system. Sarah Cutter, the payroll supervisor, is responsible for updating the new payroll system, inputting employee data (names, Social Security numbers, tax and benefit information) and pay rates. Discuss means more than one or two sentences.
1. The fraud triangle lists three conditions that are usually present when fraud occurs. Discuss the three conditions and if they are present. For each condition, provide examples from the case.
2. List the red flags present that suggest the possibility of frauds and what type of frauds do these red flags suggest?
3. How would the fraud impact the financial statements?
4. Discuss the procedures you would use to detect this fraud.
5. Lastly, discuss the procedures that should be implemented to prevent this fraud.
Answer:
1. Three pre requisite of fraud are:
Dishonesty, Opportunity, Motivation.
2. The red flags include,
Gambling habit of Steven Miller.
Global access of payroll software to a single employee.
Lack of segregation of duties.
3. The fraud will deteriorate financial statements and investors will not rely on the company's financial statements.
4. There should be audit of the financial statements, there can be recheck of the data by another employee which is entered into the payroll system, Sarah and Steven work should be segregated with some other employee of different department who rechecks all data of employee and verifies it.
5. There should be segregation of duties, there can be internal controls of the software which may restrict from entering dummy employees, there should be a supervision over Steven since he has gambling background.
Explanation:
There are three pre requisites of fraud which must be present for a fraud. If a fraud occurs in an organization then the reliance of lenders of finance is deteriorated. Steven is an employee who has been with Heavenly pastries for over a year. Since he has a gambling background there might be dishonesty present and he has access to entire payroll system there is an opportunity for fraud. Steven can be motivated for fraud so to avoid such a case Heavenly pastries should segregate duties of Steven with another employee.
Which of the following situations illustrate the problem of unmeasured quality change in the construction of the CPI? Check all that apply. Increased personal computer purchases in response to a decline in their price More scoops of raisins in each package of Raisin Bran The invention of cell phones The introduction of air bags in cars Greater use of fuel-efficient cars after gasoline prices increase
Answer:
The introduction of air bags in cars
More scoops of raisins in each package of Raisin Bran
Explanation:
In the case when the quality of the prodcut would reduce from one year to the next year but the price would remains same so the dollar value would decline as the same amount would be charged but the quality would be worse in the other case the quality would rise so the price would also rised
Therefore the above represent the situations
Which diagram arranges the types of business organizations from the most
owners to the fewest owners?
Corporation —> Partnership—> Sole proprietorship
Island Corporation owes Mutual Bank a 10% note payable for $100,000 plus $8,000 accrued interest. On October 1, 2018, Island and Mutual Bank execute an agreement whereby Island will pay Mutual $128,000 on the due date of the note on October 1, 2020. If the present value interest factor for two years at 10% is .82645, what will be the new note receivable balance for Mutual Bank
Answer:
$105,785
Explanation:
Calculation to determine what will be the new note receivable balance for Mutual Bank
Using this formula
New note receivable balance=Island payment to mutual*Present value interest factor
Let plug in the formula
New note receivable balance=128,000*.82645
New note receivable balance=$105,785
Therefore what will be the new note receivable balance for Mutual Bank is $105,785
Select the correct answer.
In terms of market research, which statement describes an advantage for businesses?
O Market research agencies always collect accurate market information, regardless of their client's guidance.
O Secondary sources are inexpensive and can meet any business's market research needs.
O Primary research methods, such as interviews, are highly reliable because respondents always give their honest opinions.
A business can explore new market opportunities with the help of accurate market research data.
Submit
Answer: A business can explore new market opportunities with the help of accurate market research data.
Explanation:
When market research data is accurate, a business is better able to know what consumers want and can therefore explore new opportunities to satisfy these needs and make healthy returns as a result.
If market research data is poor however, companies run the risk of either investing in a loss making venture or not investing in a potentially profitable venture because they did not know how profitable it would be.
Remi Corp. reported total sales of $550,000, at a price of $40 and per unit variable expenses of $23, for the sales of their single product. Total Per Unit Sales $550,000 $40 Variable Expenses $316,250 $23 Contribution Margin $233,750 $17 Fixed Expenses $155,000 Net Operating Income $78,750 What is the operating leverage at Remi Corp. (Round off to nearest decimal)
Answer:
See
Explanation:
With regards to the above, operating leverage is calculated by dividing contribution margin with net operating income.
Contribution margin = $233,750
Net operating income = $78,750
Therefore,
Operating leverage = Contribution margin / Operating income
= $233,750 / $78,750
= 2.97
Identify a chart of accounts, using correct headings from the list of account titles below: Account Titles Chart of Accounts Accounts Payable Liabilities Accounts Receivable Assets Building Assets Cash Assets Equipment Assets Insurance Expense Expenses Prepaid Insurance Assets Rent Expense Expenses Service Fees Revenues Dunlop, Capital Owner's Equity Dunlop, Drawing Owner's Equity Supplies Assets Wage Expense Expenses Wages Payable
Answer:
The correct chart of accounts would be:
Assets
Cash
Supplies
Accounts Receivable
Prepaid Insurance
Equipment
Building
Liabilities
Wages Payable
Owners Equity
Capital Owners Equity
Expenses
Rent Expense
Wage Expense
Revenues
Services Fees Revenues
Prob(Total time in process > t) = EXP(-t/T) T = (1/(Rp - Ri)) = (1 / Rs) R = min(Ri, Rp) u=R/Rp Dominic runs an appliance repair shop and sells replacement parts for appliances to walk in customers. Customer take an average of 5 minutes. It is a single phase system with 1 server. The coefficient of arrivals and the coefficient of processing times is 1.0. If Dominic's utilization were 80%, how many would be standing in line waiting to be served?
Answer:
3.20 customers
Explanation:
If one customer takes 5 minutes then in 1 hour =
60/5 = 12 minutes
This is the service rate
Utilization = arrival rate divided by service rate
0.80 = AR / 12
AR = 0.89x12
Arrival rate = 9.6/hour
We get average of those waiting in system
AR/SR-AR
= 9.6/(12-9.6)
9.6/2.4
= 4
4 x 0.80 = 3.2 this is the average of those waiting in line
Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the first process. During November, the first process transferred 800,000 units of product to the second process. Additional information for the first process follows. At the end of November, work in process inventory consists of 185,000 units that are 50% complete with respect to conversion. Beginning work in process inventory had $384,150 of direct materials and $133,875 of conversion cost. The direct material cost added in November is $2,570,850, and the conversion cost added is $2,543,625. Beginning work in process consisted of 67,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 67,000 were from beginning work in process and 733,000 units were started and completed during the period. Required: For the first process: 1. Determine the equivalent units of production with respect to direct materials and conversion.
Answer:
Victory Company
Materials Conversion
Equivalent units 985,000 892,500
Explanation:
a) Data and Calculations:
Materials Conversion
Units transferred out 800,000 800,000
Ending WIP 185,000 92,500 (185,000 * 50%)
Equivalent units 985,000 892,500
Costs of production:
Materials Conversion
Beginning WIP $384,150 $133,875
Added in November 2,570,850 2,543,625
Total costs $2,955,000 $2,677,500
Cost per equivalent units:
Total costs $2,955,000 $2,677,500
Equivalent units 985,000 892,500
Cost per equivalent unit $3.00 $3.00
In January, Prahbu purchased a new machine for use in an existing production line of his manufacturing business for $85,000. Assume that the machine is a unit of property and is not a material or supply. Prahbu pays $2,950 to install the machine, and after the machine is installed, he pays $1,600 to perform a critical test on the machine to ensure that it will operate in accordance with quality standards. On November 1, the critical test is complete, and Prahbu places the machine in service on the production line. On December 3, Prahbu pays another $3,900 to perform periodic quality control testing after the machine is placed in service. How much will Prahbu be required to capitalize as the cost of the machine
Answer: $89,550
Explanation:
When capitalizing the cost of a fixed asset, all the costs that were associated with acquiring it and setting it up for use are to be capitalized. This includes the cost of purchase, transportation and installation.
Periodic costs are to be expensed.
Cost to be capitalized:
= Purchase price + Installation price + Cost of critical test (this is needed to find out if the machine is operate appropriately so should be capitalized)
= 85,000 + 2,950 + 1,600
= $89,550
Crane Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31.
Nov. 1 Loaned $66,600 cash to C. Bohr on a 12-month, 6% note.
Dec. 11 Sold goods to K. R. Pine, Inc., receiving a $7,200, 90-day, 6% note.
Dec. 16 Received a $9,600, 180-day, 8% note to settle an open account from A. Murdock.
Dec. 31 Accrued interest revenue on all notes receivable.
Required:
Journalize the transactions for Crane Company
Answer:
Nov 1
Debit : Note Receivable - C. Bohr $66,600
Credit : Cash $66,600
Dec. 11
Debit : Note Receivable - K. R. Pine, Inc. $7,200
Credit : Sales $7,200
Dec. 16
Debit : Cash $9,600
Credit : Note Payable - A. Murdock $9,600
Dec. 31
Debit : Note Receivable - C. Bohr $666
Debit : Note Receivable - K. R. Pine, Inc. $100.80
Credit : Interest Income $766.80
Dec 31
Debit : Interest expense $64
Credit : Note Payable - A. Murdock $64
Explanation:
Interest Income calculations :
Note Receivable - C. Bohr = $66,600 x 2/12 x 6 % = $666
Note Receivable - K. R. Pine, Inc = $7,200 x 21/ 90 x 6 % = $100.80
Interest expense calculations :
Note Payable - A. Murdock $9,600 x 15 / 180 x 8 % = $64
lumination Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year:
Budgeted costs of operating the plant for 2000 to 3000 hours:
Fixed operating costs per year $480,000
Variable operating costs $800 per hour
Budgeted long-run usage per year:
Flashlight Division 1500 hours
Night Light Division 600 hours
Practical capacity 3000 hours
Assume that practical capacity is used to calculate the allocation rates.
Actual usage for the year by the Flashlight Division was 1500 hours and by the Night Light Division was 800 hours. If a single-rate cost-allocation method is used, what amount of cost will be allocated to the Flashlight Division? Assume actual usage is used to allocate operating costs.
a. $1,850,000
b. $1,200,000
c. $2,050,000
d. $1,537,500
Answer:
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