Jack, Jill and Maritza are employed as sales persons for Deuce Hardware Supplies. None was hired for a definite period and each has an excellent sales record. Jack was terminated because Don Deuce, the president of Deuce Hardware, decided that customers were more likely to spend more if the sales person was an attractive woman, rather than a man. Jill was terminated for cheating on her expense account. Assuming only these facts, explain, separately whether Jack or Jill has any claim against Deuce Hardware.
Answer:
Jack has claim while Jill didn't have.
Explanation:
Jack has claim against Deuce Hardware because his performance is tremendous and make more sales for the company. He done his work very well so he can claim against Deuce Hardware Supplies while on the other hand, Jill has no claim against Deuce Hardware because he commit a crime on the basis of which the company has the authority to terminate him from the job. He works very well in the company but his crime is big enough to terminate him.
The Clean Air Act (CAA) of 1970 did all of the following except _____.
establish the National Ambient Air Quality Standards (NAAQS)
introduce motor vehicle emissions controls
create State Improvement Plans (SIP) to promote better air quality
reduce the federal government's enforcement authority
Answer:
The Clean Air Act (CAA) of 1970 did all of the following except ___
reduce the federal government's enforcement authority__.
Answer:
reduce the federal government's enforcement authority
Explanation:
i got it right
Mighty Manny, Incorporated manufactures ice scrapers and distributes them across the midwestern United States. Mighty Manny is incorporated and headquartered in Michigan. It has product sales to customers in Illinois, Indiana, Iowa, Michigan, Minnesota, and Wisconsin. It has sales personnel only where discussed. Determine the state in which Mighty Manny does not have sales and use tax nexus given the following scenarios: _____________
A) Mighty Manny is incorporated and headquartered in Michigan. It also has property, employees, sales personnel, and intangibles in Michigan.
B) Mighty Manny has a warehouse in Illinois.
C) Mighty Manny has independent sales representatives in Minnesota. The representatives distribute ice scraper-related items for over a dozen companies.
D) Mighty Manny has two customers in Wisconsin. Mighty Manny receives orders over the phone and ships goods to its customers using FedEx.
Answer:
The answer is "Choice D".
Explanation:
FedEx Express has developed or continued being a pioneer in high level, providing quick, which remains the global leader offering quick, efficient, or timely delivery to even more than 220 countries that connect more than 99% of the world's largest gross national product with markets, that's why the Two customers are in Wisconsin for Mighty Manny. Mighty Manny accepts phone orders or ships products via FedEx to its customers.
Eva Company sells one product at a price of $25 per unit. Variable expenses are 40 percent of sales, and fixed expenses are $25,000. What is the sales dollars level required to break even
Answer:
$41,667
Explanation:
Break even (Sales dollars) = Fixed Cost ÷ Contribution margin ratio
therefore
the sales dollars level required to break even is $41,667
Question Instructions
- Answer all the questions provided.
- Show your calculations in detail and explain the rationale of your answers thoroughly.
- Calculators are allowed.
1. A kitchenware company asked 10 customers the number of times they used the specialty cooking equipment they bought from the company in the last month:
4 6 8 6 7 2 1 8 12 10
A) Calculate the mean number of uses in the last month.
[5 marks]
B) Calculate the standard deviation. Make sure to show your calculations.
[15 marks]
2. A drilling company has estimated a 60% chance of striking oil for their new well. A detailed test has been scheduled. Historically, 40% of successful wells have had detailed test, and 10% of unsuccessful wells have had detailed test.
A) Given that this well has been scheduled for a detailed test, what is the probability that the well will be successful? Use Bayes’ Theorem.
[10 marks]
B) Would you say that the probability of successful drilling and the probability of having a detailed test are independent? Explain your answer using probabilities.
[10 marks]
3. Answer the following questions in no more than 3-4 lines for each one:
A) Why do you think investigating sample is more efficient for statistical control than investigating an entire population?
[5 marks]
B) What sample size is large enough to assume that the sampling distribution of proportion is normally distributed?
[5 marks]
C) Can 100% confidence level be used to determine a population parameter?
[5 marks]
D) What happens to confidence intervals when the confidence level is increased?
[5 marks]
4. A company claims that the average consumer buys 50 bars of chocolate in a calendar year Suppose a random sample of 100 consumers displayed the following statistics regarding the number of chocolate bars consumed in a year: X-bar=40, S=25.
A) What are the null and alternative hypotheses to determine if the number of chocolates consumed in a year is actually more or less than 50?
[5 marks]
B) What would be the value of the test statistic in this case?
[5 marks]
C) Considering that a confidence level of 5% for a normally distributed sample corresponds to a statistic score of ±1.96, what is your inference of the outcome in (B)?
[5 marks]
D) Explain briefly what are the Type I and Type II errors.
[5 marks]
5. A research group is trying to predict the performance of students on final exams based on the amount of time students study during the year. They use the following data:
SST = 110.00
SSR = 90.25
n = 200
A) Determine the coefficient of determination r2 and interpret its meaning.
[8 marks]
B) Determine the standard error of the estimate.
[7 marks]
C) How useful do you think this regression model is for predicting the performance of students on exams by the variation of the time spent studying?
[5 marks]
Answer:
Let x be a random variable representing the price of a Congo-imported black diamond. Let the higher price be p. Then,
P(x < p) = P(x < (p - mean)/sd) = P(x < (p - 60,430)/21,958.08) = P(z < 2)
Therefore,
(p - 60,430)/21,958.08 = 2
p - 60,430 = 2 x 21,958.08 = 43,916.16
p = 34,916.16 + 60,430 = 104.346.16
Therefore, The required price is $104,346.16
Explanation:
Swifty Co. uses the gross method to record sales made on credit. On July 1, 2020, it made sales of 69,000 with terms 2/10 n/30. On July 9, 2020, Swifty received full payment for the July 1 sale. Prepare the required journal entries for Swifty Co.
Answer:
July 1, 2020
Debit : Accounts Receivable $69,000
Credit : Sales $69,000
July 9, 2020
Debit : Cash $62,100
Debit : Discount allowed $1,380
Credit : Accounts Receivable $69,000
Explanation:
Note : Remove the discount from final payment.
The required journal entries for Swifty Co have been prepared above.
What are the most relevant cultural values affecting the consumption of each of the following?
Describe how and why these values are particularly important.
Milk
Fast food
Answer:
gghjfjfjtfttftftfftuhugh
Explanation:
Tristar Production Company began operations on September 1, 2016. Listed below are a number of transactions that occurred during its first four months of operations.
a. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $240,000 in cash for the property. According to appraisals, the land had a fair value of $169,000 and the building had a fair value of $91,000.
b. On September 1, Tristar signed a $54,000 noninterest-bearing note to purchase equipment. The $54,000 payment is due on September 1, 2022. Assume that 9% is a reasonable interest rate.
c. On September 15, a truck was donated to the corporation. Similar trucks were selling for $3,900.
d. On September 18, the company paid its lawyer $4,500 for organizing the corporation.
e. On October 10, Tristar purchased maintenance equipment for cash. The purchase price was $29,000 and $1,200 in freight charges also were paid.
f. On December 2, Tristar acquired various items of office equipment. The company was short of cash and could not pay the $6,900 normal cash price. The supplier agreed to accept 200 shares of the company's no-par common stock in exchange for the equipment. The fair value of the stock is not readily determinable.
g. On December 10, the company acquired a tract of land at a cost of $34,000. It paid $4,500 down and signed a 11% note with both principal and interest due in one year. Eleven percent is an appropriate rate of interest for this note.
Required:
Prepare journal entries to record each of the above transactions.
Answer:
Tristar Production Company
a. September 1, Debit Land $156,000
Debit Building $84,000
Credit Cash $240,000
To record the purchase of land, which had a fair value of $169,000 and building, which had a fair value of $91,000.
b. September 1, Debit Equipment $54,000
Credit Notes Payable $54,000
To record the purchase of equipment with a note.
Assume that 9% is a reasonable interest rate.
c. September 15, Debit Truck $3,900
Credit Donation $3,900
To record the receipt of a truck through donation.
d. September 18, Debit Attorney Fee $4,500
Credit Cash $4,500
To record the payment of legal fees for organizing the corporation.
e. October 10, Debit Maintenance Equipment $30,200
Credit Cash $30,200
To record the purchase of equipment for $29,000 and $1,200 in freight.
f. December 2, Debit Office equipment $6,900
Credit Common stock $6,900
To record the purchase of office equipment with 200 shares of no-par common stock in exchange for the equipment.
g. December 10, Debit Land $34,000
Credit Cash $4,500
Credit 11% Notes Payable $29,500
To record the purchase of land for cash and notes payable.
Explanation:
a) Data and Calculations:
a. September 1, Land $156,000 Building $84,000 Cash $240,000
land had a fair value of $169,000 and the building had a fair value of $91,000.
b. September 1, Equipment $54,000 Notes Payable $54,000
Assume that 9% is a reasonable interest rate.
c. September 15, Truck $3,900 Donation $3,900
d. September 18, Attorney Fee $4,500 Cash $4,500
for organizing the corporation.
e. October 10, Maintenance Equipment $30,200 Cash $30,200
$29,000 and $1,200 in freight charges also were paid.
f. December 2, Office equipment $6,900 Common stock $6,900
200 shares of no-par common stock in exchange for the equipment.
g. December 10, Land $34,000 Cash $4,500 11% Note Payable $29,500
Everything else held constant, in the market for reserves, when the federal funds rate is 2%, lowering the interest rate paid on excess reserves rate from 1% to 0.5% has no effect on the federal funds rate. has an indeterminate effect on the federal funds rate. lowers the federal funds rate. raises the federal funds rate.
Answer: lowers the federal funds rate.
Explanation:
The federal funds rate is the rate at which banks lend money to their selves overnight to ensure that they meet lending and reserve requirements.
The interest rate paid on excess reserves rate is the amount of interest that the Fed pays banks to keep excess reserves. If this rate was to decrease, banks would have less incentive to keep excess reserves at the Fed and so would have more money to meet lending and reserve requirements such that they won't need to borrow from other banks as much which would then lead to the federal funds rate decreasing due to less demand.
On November 1, year 1, Jamie (who is single) purchased and moved into her principal residence. In the early part of year 2, Jamie was laid off from her job. On February 1, year 2, Jamie sold the home at a $45,500 gain. She sold the home because she found a new job in a different state. How much of the gain, if any, may Jamie exclude from her gross income in year 2
Answer: $31,250
Explanation:
The amount from the gain that Jamie may exclude from her gross income in year 2 will be calculated thus:
= $250,000 × 3/24
= $31,250.
Therefore, Jamie may exclude $31,250 from the gross income in year 2.
Thanks
Suppose during 2022 that Cypress Semiconductor Corporation reported net cash provided by operating activities of $96,447,240, cash used in investing of $46,576,080, and cash used in financing of $7,957,440. In addition, cash spent for fixed assets during the period was $27,888,840. No dividends were paid. Calculate free cash flow. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer:
Free cash flow = $68,558,400
Explanation:
Free cash flow represents the amount that is left to all the providers of capital after the payment of all all operating expenses, working capital and investment in fixed asset expenditures.
It is computed as cash flow made from operation less capital expenditures
Free cash flow = net cashflow from operating activities - fixed assets
= $96,447,240 - $27,888,840
= $68,558,400
Free cash flow = $68,558,400
Once the adjusting entries are posted, the adjusted trial balance is prepared to a. verify that the debits and credits are in balance b. verify that the net income (loss) is correct for the period c. verify the correct flow of accounts into the financial statements d. verify that the net income correctly flows into the statement of stockholders' equity from the income statement
Answer:
a. verify that the debits and credits are in balance
Explanation:
A periodic system of inventory can be defined as a method of financial accounting, that typically involves updating informations about an inventory on a periodic basis (at specific intervals) as the sales or purchases are being made by the customers, through the use of either an enterprise management software applications or a digitized point-of-sale equipment.
On the other hand, a perpetual inventory system is a type of inventory management that continuously records in real-time the amount of inventory sold or purchased through the use of enterprise software or technological software applications such as a point of sale (POS).
A journal entry involves the process of keeping the records of business transactions made by an organization.
The journal entry is used by bookkeepers and accountants. Ideally, it is important that a journal has all of following informations; date, reference number, debit balance, credit balance and transaction description.
In Accounting, most businesses use a double-entry account system and as such, the total amount debited must equal the total amount credited in a journal entry.
Once the adjusting entries are posted, the adjusted trial balance is prepared to verify that the debits and credits are in balance.
Firms HL and LL are identical except for their leverage ratios and the interest rates they pay on debt. Each has $25 million in invested capital, has $5 million of EBIT, and is in the 40% federal-plus-state tax bracket. Firm HL, however, has a debt-to-capital ratio of 55% and pays 11% interest on its debt, whereas LL has a 20% debt-to-capital ratio and pays only 10% interest on its debt. Neither firm uses preferred stock in its capital structure.
1. Calculate the return on invested capital (ROIC) for each firm. Round your answers to two decimal places.
ROIC for firm LL is %
ROIC for firm HL is %
2. Calculate the rate of return on equity (ROE) for each firm. Round your answers to two decimal places.
ROE for firm LL is %
ROE for firm HL is %
3. Observing that HL has a higher ROE, LL's treasurer is thinking of raising the debt-to-capital ratio from 20% to 60%, even though that would increase LL's interest rate on all debt to 15%. Calculate the new ROE for LL. Round your answer to two decimal places.
Answer:
A. ROIC for firm LL 12%
ROIC for firm HL 12%
B. ROE for firm LL 13.5%
ROE for firm HL 18.6%
C. New ROE for firm LL 16.5%
Explanation:
A. Calculation to determine the return on invested capital (ROIC) for each firm
Using this formula
ROIC=EBIT(1-T)/Total Invested Capital
Let plug in the formula
ROIC=$5 million(1-.40)/$25 million
ROIC=$5 million*.60/$25 million
ROIC=$3 million/$25 million
ROIC=0.12*100
ROIC=12% for both firms
Therefore the return on invested capital (ROIC) for each firm is:
ROIC for firm LL is 12%
ROIC for firm HL is 12%
B. Calculation to determine the rate of return on equity (ROE) for each firm.
Calculation for ROE for firm LL
First step is to calculate the Debt
Debt=$25 million*20%
Debt=$5 million
Second step is to calculate the Debt Interest
Debt Interest=$5 million*10%
Debt Interest=$500,000
Third step is to calculate the EBIT of firm LL
EBIT of firm LL=$5 million- $500,000
EBIT of firm LL=$4,500,000
Fourth step is to calculate Tax owed
Tax owed =$4,500,000*40%
Tax owed =$1,800,000
Fifth step is to calculate the Net income of firm LL
Net income of firm LL=$4,500,000-$1,800,000
Net income of firm LL=$2,700,000
Sixth step is to calculate the Equity for firm LL
Equity for firm LL=$25million-$5 million
Equity for firm LL=$20 million
Now let calculate the ROE using this formula
ROE=Net income /Equity
Let plug in the formula
ROE=$2,700,000/$20 million*100
ROE=13.5%
Calculation for ROE for firm HL
First step is to calculate the Debt
Debt=$25 million*55%
Debt=$13,750,000
Second step is to calculate the EBIT of firm HL
EBIT of firm HL=$5 million-[(55%*$25 million)*11%]
EBIT of firm HL=$5 million-($13,750,000*11%)
EBIT of firm HL=$5 million-$1,512,500
EBIT of firm HL=$3,487,500
Third step is to calculate the Tax owed
Tax owed =$3,487,500*40%
Tax owed =$1,395,000
Fourth step is to calculate the Net income of firm HL
Net income of firm HL=$3,487,500-$1,395,000
Net income of firm HL=$2,092,500
Fifth step is to calculate the Equity for firm HL
Equity for firm HL=$25million- $13,750,000
Equity for firm HL=$11,250,000
Now let calculate the ROE using this formula
ROE=Net income /Equity
ROE=$2,092,500/$11,250,000*100
ROE=18.6%
Therefore the rate of return on equity (ROE) for each firm is:
ROE for firm LL is 13.5%
ROE for firm HL is 18.6%
C. Calculation to determine the new ROE for LL
First step is to calculate the debt
Debt=$25 million*60%
Debt=$15 million
Second step is to calculate the Debt Interest
Debt Interest=$15 million*15%
Debt Interest=$2,250,000
Third step is to calculate the EBIT of firm LL
EBIT of firm LL=$5 million- $2,250,000
EBIT of firm LL=$2,750,000
Fourth step is to calculate the Tax owed
Tax owed =$2,750,000*40%
Tax owed =$1,100,000
Fifth step is to calculate the Net income of firm LL
Net income of firm LL=$2,750,000-$1,100,000
Net income of firm LL=$1,650,000
Sixth step is to calculate the Equity for firm LL
Equity for firm LL=$25million-$15 million
Equity for firm LL=$10 million
Now let calculate the New ROE using this formula
ROE=Net income /Equity
Let Plug in the formula
ROE=$1,650,000/$10 million*100
ROE=16.5%
Therefore the new ROE for LL is 16.5%
Use in your own words, what is corporate debt ?
Answer:
The corporate debt market is where companies go to borrow cash. And for over a decade, super-low interest rates left over from the 2008 financial crisis have made borrowing easier and easier. Since then, U.S. companies have regularly offered up bonds for sale, taking advantage of the cheap access to cash.
Explanation:
Hope this helps you
The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information:
Sales at $450,000, all for cash.
Merchandise inventory on October 31 was $200,000.
The cash balance November 1 was $18,000.
Selling and administrative expenses are budgeted at $60,000 for November and are paid for in cash.
Budgeted depreciation for November is $25,000.
The planned merchandise inventory on November 30 is $230,000.
The cost of goods sold is 70% of the selling price.
All purchases are paid for in cash.
There is no interest expense or income tax expense.
The budgeted cash receipts for November are:_____.
a. $315,000.
b. $450,000.
c. $135,000.
d. $475,000.
Answer:
im not sure
Explanation:
The budgeted cash receipts for November are there.
What is a budget?A budget You can prepare for your income and expenses over the course of a specific time period using a budget. Making a monthly budget, for instance, considers where your income and expenses will go each month. "A budget is frequently a dirty term or has a nasty ring to it.
Simply said, a budget is a spending plan that accounts for both present and future sources of income and expenses. A budget ensures that your spending is under control and that your savings are on track for the future.
CoGS = Opening Inventory + Purchases - Closing Stock
315,000 = 200,000 + P - 230,000
Purchases = $345,000
Particulars$Sales450,000(-) CoGS(345,000)(-) Selling and Adinistrative Expenses(60,000)Change in Cash45,000(+) Opening Balance of cash18,000Closing balance of Cash63,000
Budgeted Cash Receipts are $450,000 (Sales Receipts) for November. However, the cash budget is $63,000.
Therefore, Thus option (B) is correct.
Learn more about budget here:
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what is human rights
Answer:
Human rights are the basic rights and freedoms that belong to every person in the world, from birth until death. ... These basic rights are based on shared values like dignity, fairness, equality, respect and independence. These values are defined and protected by law.
SME Ads Inc. (SME) Steven Monahan owns SME Ads Inc., an advertising agency. At present, the company focuses on advertising only. However, Steven plans to expand the company's focus to include all the major elements of an organization's promotional mix. Steven feels that expanding the focus in such a way will allow the firm to meet customer needs in a more coordinated fashion. Currently, the firm organizes its work according to the media being used. Steven believes this is the most effective way to subdivide advertising. Since television is the most widely used advertising medium, the company spends most of its time on television advertising. SME knows what it takes to get the job done, and it is committed to success. Refer to SME Ads Inc. In developing the advertising campaign for a client, in which of the following steps should SME include the important selling points or features of the client's products?
A) Identifying and analyzing the industry.
B) Defining the advertising objectives.
C) Creating the advertising platform.
D) Determining the advertising appropriation.
E) Developing the media plan.
Answer:
SME Ads Inc.
In developing the advertising campaign for a client,
SME should include the important selling points or features of the client's products in the following step:
A) Identifying and analyzing the industry.
Explanation:
It is at this step that the SWOT analysis is carried out. The client's selling points form part of the client's strengths. Therefore, during the identification and analysis of the industry in which the client plays a role, its selling points or special features must be prominently developed to achieve great advert value for money.
Janice is the sole owner of Catbird Company. In the current year, Catbird had operating income of $100,000, a long-term capital gain of $15,000, and a charitable contribution of $5,000. Janice withdrew $70,000 of profit from Catbird. How should Janice report this information on her individual tax return if Catbird Company is: An LLC? An S corporation? A C corporation?
Answer:
A. LLC
Operating income $100,000
Long-term Capital Gain $15,000
Charitable contribution $5,000
No Effect $70,000
b. S corporation
Operating income $100,000
Long-term Capital Gain $15,000
Charitable contribution $5,000
No Effect $70,000
C. C corporation
Taxable income $110,000
Dividend income $70,000
Explanation:
a. An LLC
Based on the information given She will report the OPERATING INCOME of the amount of $100,000 Schedule C.
LONG-TERM CAPITAL GAIN Schedule D of the amount of $15,000.
Thirdly in a situation where she itemizes, the amount of $5,000 which represent charitable contribution (Schedule A) will be on her tax return
Lastly the amount of $70,000 which represent the amount withdrew from profit would have no effect on her individual tax return.
b. S corporation
Based on the information given she will report the OPERATING INCOME of the amount of $100,000 Schedule E.
LONG-TERM CAPITAL GAIN Schedule D of the amount of $15,000.
Thirdly in a situation where she itemizes, the amount of $5,000 which represent CHARITABLE CONTRIBUTION (Schedule A) will be on her tax return
Lastly the amount of $70,000 which represent the amount withdrew from profit would have no effect on her individual tax return.
c. C corporation
Based on the information given the TAXABLE INCOME of the amount of $110,000 calculated as ($100,000+$15,000-$5,000) will be reported by Catbird Company on FORM 1120 while Janice on the other hand will have to report DIVIDEND INCOME Schedule B of the amount of $70,000 on her tax return.
systems play a key role in helping organizations achieve goals, which are set forth in a(n) statement. Computers can be used by people at all levels of an organization. Workers use information systems to produce and manipulate information. Managers depend on information systems to supply data that is essential for long-term planning and short-term tactical planning. Transaction systems provide an organization with a way to collect, display, modify, or cancel transactions. These systems encompass activities such as general accounting, inventory tracking, and ecommerce. information systems typically build on the data collected by a TPS to produce reports that managers use to make the business decisions needed to solve routine, structured problems. A decision system helps workers and managers make non-routine decisions by constructing decision models that include data collected from internal and external sources. A(n) system is designed to analyze data and produce a recommendation or decision based on a set of facts and rules called a(n) base. These facts and rules can be written using an expert system shell or a programming language. A(n) engine evaluates the facts and rules to produce answers to questions posed to the system. Using a technique called logic, these systems can deal with imprecise data and problems that have more than one solution.
Answer:
The following are those which helps in playing a key role in helping organizations to achieve their goals:
O. Computers can be used by people at all levels of an organization.
O. Workers use information systems to produce and manipulate information.
O. Managers depend on information systems to supply data that is essential for long-term planning and short-term tactical planning.
O. A decision system helps workers and managers make non-routine decisions by constructing decision models that include data collected from internal and external sources.
O. A(n) engine evaluates the facts and rules to produce answers to questions posed to the system.
O. Using a technique called logic, these systems can deal with imprecise data and problems that have more than one solution.
Explanation:
Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.
Units produced this year 35,000 units
Units sold this year 21,000 units
Direct materials $19 per unit
Direct labor $21 per unit
Variable overhead $3 per unit
Fixed overhead $175,000 in total
Given Advanced Company's data, and the knowledge that the product is sold for $71 per unit and operating expenses are $300,000. Compute the net income under absorption costing.
Answer:
$183,000
Explanation:
Advanced Company
Income Statement for the year - absorption costing
Sales ($71 x 21,000 units) $1,491,000
Less Cost of Sales ($1,008,000)
Gross Profit $483,000
Less Expenses
Operating expenses ($300,000)
Net Income $183,000
where,
Cost of Sales = Units Sold x Product Cost
= 21,000 x $48
= $1,008,000
Product Cost = all manufacturing costs (absorption costing)
= $19 + $21 + $3 + ($175,000 ÷ 35,000)
= $48
A retail operation sells computers. Each computer retails for $499. The monthly holding cost for each computer is $4. Placing an order costs $1000, regardless of the quantity of computers ordered. The monthly demand for computers at this operation is 320. Using the basic EOQ model, the economic order quantity is
Answer:
400
Explanation:
Calculation to determine the economic order quantity is using the basic EOQ model,
Using this formula
EOQ=√(2[Demand][Order cost] / [Unit holding cost])
Where,
Demand=320
Order cost =$1,000
Unit holding cost =$4
Let plug in the formula
EOQ=√2*320*1,000/$4
EOQ=√640,000/$4
EOQ=√160,000
EOQ=400
Therefore the economic order quantity is using the basic EOQ model is 400
All of the following are weaknesses of the payback period: _________
a. it uses cash flows, not income,
b. it is easy to use.
c. it ignores all cash flows after the payback period.
d. it ignores the time value of money.
Answer:
c. it ignores all cash flows after the payback period.
d. it ignores the time value of money.
Explanation:
As the name suggest, the payback period is the period that shows the time period in which the investment money could be paid back
Like we can take an example
Year 0 -$50,000
Year 1 $10,000
Year 2 $10,000
Year 3 $10,000
Year 4 $10,000
Year 5 $10,000
In this, the $50,000 would be paid back in 5 years
Now the weakness is this that it would ignored the cash flows and the times value of money
You own a small manufacturing business that produces widgets. You have spent $150,000 acquiring the fixed assets you need to produce widgets. Each widget costs you $2 to make and they sell for $15 each, so your variable cost is 13.3% of the overall revenue. At your current level of operating leverage, how many widgets must you sell to break even
Answer:
11,538 units
Explanation:
Given that:
Fixed assets = $150,000
Variable cost = $2
Sales price = $15
Break even point = Fixed cost ÷ Contribution margin
Contribution margin = Sales per unit - Variable cost per unit = $15 - $2 = $13
Break even point (Sales) = $150,000 ÷ $13 = 11,538 units
Therefore, 11,538 widgets must be sold to break even.
An appliance store sells 500 units of a particular type of dishwasher each year. The demand for this product is essentially constant throughout the year. The store orders its products from a regional supplier, and it typically takes two weeks for the dishwashers to arrive after an order has been placed. Each time an order is placed, an ordering cost of $1,000 is incurred. Each dishwasher costs the hardware store $300 and retails for $550. The store's annual cost of capital is estimated to be 7% per year.
Using the economic order quantity (EOQ) formula, determine the optimal order quantity
Answer:
161 units
Explanation:
Economic order quantity = √[(2 x annual demand x orderign cost) / annual holding cost per unit]
annual demand = 500 units
ordering cost = $1,000
holding cost = $550 x 7% = $38.50
EOQ = √[(2 x 500 x $1,000) / $38.50] = 161.16 units ≈ 161 units
Consider the following financial statement information for the Hop Corporation:
Item
Beginning Ending Inventory $11,100 $12,100
Accounts receivable 6,100 6,400
Accounts payable 8,300 8,700
Net sales $91,000
Cost of goods sold 71,000
Calculate the operating and cash cycles
Answer: Operating cycle = 84.70 days
Cash cycle = 41 days
Explanation:
Beginning inventory = $11,100
Ending Inventory = $12,100
Average inventory = ($11100 + $12100)/2 = 11600
Average Accounts receivable = (6,100 + 6,400)/2 = 6250
Average Accounts payable = (8,300 + 8,700)/2 = 8500
Day sales in inventory = Average inventory × 365 / Cost of goods sold
= 11600 × 365 / 71000 = 59.63 days
Average collection period = Average receivable × 365 / Credit sales
= 6250 × 365 /91000 = 25.07 days
Average payment period = 43.70 days
Therefore, operating cycle will be:
= Day sales in inventory + Average collection period
= 59.63 days + 25.07 days
= 84.70 days
Cash cycle = Operating cycle - Average payment period
= 84.70 - 43.70
= 41 days
Suppose you are thinking of starting your own small business. Consider how your accounting profit is different than your economic profit.
1. Accounting profit is different than economic profit because:
a. economic profit is only important to economists and does not apply to the actual decision to launch a new business.
b. accounting profit includes all financial and opportunity costs of starting a business.
c. economic profit is what is reported on your tax return.
d. accounting profit ignores the opportunity cost of launching a new business
2. b. After doing your research, you are confident that you will make an accounting profit if you launch the business but feel it is very unlikely that you will make an economic profit. In this case, you__________ start the business.
Answer:
d
should
Explanation:
Accounting profit= total revenue - explicit cost
Total revenue =price x quantity sold
Explicit cost includes the amount expended in running the business.
They include rent , salary and cost of raw materials
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
A company should still continue its operations if only economic profit would be earned. This is because in some industries, in the long run, economic profit cannot be earned. For example, in perfect competition
Imagine that in the current year the economy is in long-run equilibrium. Then the federal government reduces its purchases of goods by 50%. In the long run, what happens to the expected price level and what impact does this have on wage bargaining
Answer:
The expected price level falls., new wage contracts will be negotiated at a lower wage in the market.
Explanation:
In the case when the economy is in the long run equilibrium and the federal government decreased the goods purchase by 50%. So in the long run the expected price level would be decline and the effect on wage bargaining would be that the new wage control would be negotiated at a less wages in the market place
Therefore, the correct option is c
And, the same would be relevant
Mayo Corp. has estimated that total depreciation expense for the year ending December 31, 2018 will amount to $600,000, and that 2018 year-end bonuses to employees will total $1,200,000. In Mayo's interim income statement for the six months ended June 30, 2018, what is the total amount of expense relating to these two items that should be reported
On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 210,000 shares of $30 par common stock at $34, and on February 27, it issued for cash 15,000 shares of preferred stock, $9 par at $12.
Required:
Journalize the entries for January 22 and February 27.
Answer:
Jan. 22
Dr Cash $7,140,000
Cr Common Stock $6,300,000
Cr Paid in capital in excess of par $840,000
Feb. 27
Dr Cash $180,000
Cr Preferred Stock $135,000
Cr Paid-In Capital in Excess of Par-Preferred $45,000
Explanation:
Preparation of the entries for January 22 and February 27.
Jan. 22
Dr Cash $7,140,000
(210,000*$34)
Cr Common Stock $6,300,000
(210,000*$30)
Cr Paid in capital in excess of par $840,000
($7,140,000-$6,300,000)
Feb. 27
Dr Cash $180,000
(15,000*$12)
Cr Preferred Stock $135,000
(15,000*$9)
Cr Paid-In Capital in Excess of Par-Preferred $45,000
($180,000-$135,000)
Onini, Inc. produces one product with two production levels: 20,000 units and 80,000 units. At each production level, Onini's per-unit costs for Costs A, B, and C are:
Cost A (per unit) Cost B (per unit) Cost C (per unit)
Production = 20,000 $12.00 $15.00
$20.00
Production = 80,000 $12.00 $11.25
$5.00
What type of cost is each?
A. Cost A is variable, Cost B is mixed, and Cost C is fixed.
B. Cost A is fixed, Cost B is variable, and Cost C is mixed
C. Cost A s variable, Cost B is fixed, and Cost C is mixed.
D. Cost A is fixed, Cost B is mixed, and Cost C is variable.
Answer:
A
Explanation:
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.
Hourly wage costs and payments for production inputs are variable costs
Total fixed cost = 20,000 x 20 = 400,000
80,000 x 5 = 400,000
c is fixed cost
Variable costs are costs that vary with production
If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.
Variable cost is constant per unit produced. Thus A, is variable cost
Mixed cost is cost that combines fixed cost and variable cost