Answer:
$31.76 million
Explanation:
Economic Value Added is the residual wealth left for shareholders after having accounted for the financing needs of the company as shown by the formula below:
EVA=NOPAT-(WACC*invested capital)
NOPAT is the net operating profit after tax =operating profit(EBIT)*(1-tax rate)
Net income=Earnings before tax*(1-tax rate)
net income= $55 million
EBT=unknown
tax rate=40.0%
$55=EBT*(1-40.0%)
$55=EBT*0.60
EBT=$55/0.60
EBT=$91.67
EBIT=EBT+interest
EBIT=$91.67+$19
EBIT=$110.67
NOPAT=$110.67*(1-40%)
NOPAT=$66.41
WACC=9.0%
perating capital employed=$385
EVA=$66.41-(9.0%*$385)
EVA=$31.76 million
operating capital em
Exercise 4-9 Recording purchases, sales, returns, and shipping LO P1, P2 Following are the merchandising transactions of Dollar Store. Nov. 1 Dollar Store purchases merchandise for $2,900 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. 5 Dollar Store pays cash for the November 1 purchase. 7 Dollar Store discovers and returns $250 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. 10 Dollar Store pays $145 cash for transportation costs for the November 1 purchase. 13 Dollar Store sells merchandise for $3,132 with terms n/30. The cost of the merchandise is $1,566. 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $270 and cost $135; the items were not damaged and were returned to inventory. Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method.
Answer:
Dollar Store
Journal Entries:
Nov. 1 Debit Inventory $2,900
Credit Accounts Payable $2,900
To record the purchase of goods on terms of 2/5, n/30, FOB shipping point, invoice dated November 1.
Nov. 5 Debit Accounts Payable $2,900
Credit Cash $2,842
Credit Cash Discount $58
To record the payment for the goods, including discounts.
Nov. 7 Debit Cash $250
Credit Inventory $250
To record the return of goods for cash.
Nov. 10 Debit Freight-in $145
Credit Cash $145
To record payment for transportation of goods.
Nov. 13 Debit Accounts Receivable $3,132
Credit Sales Revenue $3,132
To record the sale of goods with terms n/30.
Debit Cost of goods sold $1,566
Credit Inventory $1,566
To record the cost of goods sold.
Nov. 16 Debit Sales Returns $270
Credit Accounts Receivable $270
To record the return of goods.
Debit Inventory $135
Credit Cost of goods sold $135
To record the cost of goods returned.
Explanation:
a) Data and Analysis:
Nov. 1 Inventory $2,900 Accounts Payable $2,900
on terms of 2/5, n/30, FOB shipping point, invoice dated November 1.
Nov. 5 Accounts Payable $2,900 Cash $2,842 Cash Discount $58
Nov. 7 Cash $250 Inventory $250
Nov. 10 Freight-in $145 Cash $145
Nov. 13 Accounts Receivable $3,132 Sales Revenue $3,132
with terms n/30
Cost of goods sold $1,566 Inventory $1,566
Nov. 16 Sales Returns $270 Accounts Receivable $270
Inventory $135 Cost of goods sold $135
You are selling an asset. you can earn an interest rate of 7% per yer on your savings. You receive the following two (risk less) offers:
Offer 1: receive $400,000 today
Offer 2: Receive $500,000 in 4 years
a. Which offer should you choose?
b. At what interest rate would you be indifferent between the two offers?
Answer:
Option 1
5.737126344%
Explanation:
to determine which option i would prefer today, i would need to determine the present value of offer 2
Present value is the sum of discounted cash flows
[tex]\frac{500,000}{1.07^{4} }[/tex] = $381,447.61
I would prefer the first option because its present value is greater than that of option 2
The interest rate that would make me indifferent between either options would be the interest at which the present value of $500,000 in 4 years is $400,000
$400,000 = [tex]\frac{500,000}{(1 + x)^{4} }[/tex]
$400,000[tex](1 + x)^{4}[/tex] = $500,000
500,000 / 400,000= (1 + x)^{4}
1.25 = (1 + x)^{4}
[tex]1.25^{0.25}[/tex] = 1 + x
x = 5.737126344%
Which per unit cost does the slope of the total cost line represent? Group of answer choices Fixed Variable. Semivariable Step-variable
Answer: Variable cost
Explanation:
The slope of a regression line is meant to represent the change in the total variable or y, as a result of a change in the number of independent observations or x.
The cost that changes during production as a result of an increase in x which is the volume of products, is the variable cost so it is the slope of the total cost line,
Slope of total cost line:
y = mx + c
y = total cost
m = variable cost. m is also slope.
x = production volume
c = fixed cost
Russell Retail Group begins the year with inventory of $62,000 and ends the year with inventory of $52,000. During the year, the company has four purchases for the following amounts.
Purchase on February 17 $217,000
Purchase on May 6 137,000
Purchase on September 8 167,000
Purchase on December 4 417,000
Required:
Calculate cost of goods sold for the year.
Answer:
Cost of goods sold = 948000
Explanation:
Inventory at the beginning of the year = $62000
Inventory at the end of the year = $52000
Cost of goods sold = Beginning inventory + purchases during the year - ending inventory
Cost of goods sold = $62000 + 217000 + 137000 + 167000 + 417000 - $52000
Cost of goods sold = 948000
A company purchased office supplies costing $5,000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $900 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be: debit Supplies Expense, $4,100; credit Supplies, $4,100. debit Supplies, $4,100; credit Supplies Expense, $4,100. debit Supplies Expense, $5,900; credit Supplies, $5,900. debit Supplies, $900; credit Supplies Expense, $900.
Answer:
Debit Supplies Expense, $4,100; Credit Supplies, $4,100
Explanation:
Based on the information given The appropriate adjusting journal entry to be made at the end of the period would be:Debit Supplies Expense, $4,100; Credit Supplies, $4,100
Debit Supplies Expense $4,100
Credit Supplies $4,100
($5,000-$900)
implications of game theory
Answer:
Game Theory is a general mathematical analysis to investigate the strategic interactions among players. Game theorists attempt to provide precise descriptions of situations of conflicting interests in order to study the behavior that such a conflict would (or, in some cases, should) elicit from rational agents. Players are assumed to consider the position and perceptions of other players while forming their strategies. In our examples, we will assume that there are two players, and that each has two choices and the fact that the players are selfish (operate in their own best interests) and rational .
Limitations of Game Theory :
The biggest issue with game theory is that, like most other economic models, it relies on the assumption that people are rational actors that are self-interested and utility-maximizing. Of course, we are social beings who do cooperate and do care about the welfare of others, often at our own expense. Game theory cannot account for the fact that in some situations we may fall into a Nash equilibrium, and other times not, depending on the social context and who the players are.
Gantner Company had the following department information about physical units and percentage of completion: Physical Units Work in process, May 1 (60%) 60000 Completed and transferred out 180000 Work in process, May 31 (40%) 50000 If all materials are added at the beginning of the production process, what is the total number of equivalent units for materials during May
Answer:
200,000 units by Weighted Average Cost Method
164,000 units by FIFO Method
Explanation:
1. Where Weighted Average Cost Method is used.
Assuming that Gantner Company uses the Weighted Average Cost Method, the total number of equivalent units for materials during May can be determined as follows :
Completed and transferred out (180000 x 100) 180,000
Ending Work In Process (50000 x 40%) 20,000
Total equivalent units for materials 200,000
1. FIFO Method is used.
Assuming that Gantner Company uses the FIFO Cost Method, the total number of equivalent units for materials during May can be determined as follows :
To Complete Opening Work in Process (60000 x 40%) 24,000
Completed and transferred out (180000 - 60,000) x 100% 120,000
Ending Work In Process (50000 x 40%) 20,000
Total equivalent units for materials 164,000
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $217,500 of total manufacturing overhead for an estimated activity level of 87,000 machine-hours. Required: 1. Assume that during the year the company works only 82,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T-accounts. 2A. Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account.
Question Completion:
Manufacturing Overhead Account
Maintenance $24,000
Indirect materials 8,300
Indirect labor 82,000
Utilities 36,000
Insurance 7,300
Depreciation 65,000
Total costs $222,600
Work in Process
Direct materials $740,000
Direct labor 83,000
Answer:
Harwood Company
1. The amount of overhead cost that would be applied to Work in Process for the year is:
= $205,000.
2. T- Accounts:
Work in Process
Direct materials $740,000
Direct labor 83,000
Applied overhead 205,000
Manufacturing overhead
Maintenance $24,000
Indirect materials 8,300
Indirect labor 82,000
Utilities 36,000
Insurance 7,300
Depreciation 65,000
Applied overhead: WIP $205,000
Underapplied overhead 17,600
Total costs $222,600 $222,600
2A. The amount of underapplied overhead for the year is:
= $17,600
2B. Manufacturing overhead
Maintenance $24,000
Indirect materials 8,300
Indirect labor 82,000
Utilities 36,000
Insurance 7,300
Depreciation 65,000
Applied overhead: WIP $205,000
Underapplied overhead 17,600
Total costs $222,600 $222,600
Explanation:
a) Data and Calculations:
Predetermined overhead rate per machine-hour = $2.50
Estimated total manufacturing overhead = $217,500
Estimated activity level = 87,000
Actual results from production during the year:
Machine-hours worked = 82,000
Applied overhead costs = $205,000 (82,000 * $2.50)
Total manufacturing costs incurred = $222,600
Underapplied overhead = $17,600
From 1990 to 2000, calculate the percentage change in Instructions: Enter your responses rounded to one decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Real GDP. % b. Real consumption. % c. Real government spending
Answer:
Note The full question is attached as picture below
1. Real consumption % change = ((Consumption in 2009 / Consumption in 2007) - 1) * 100
Real consumption % change = ((9847 / 10042) - 1) * 100
Real consumption change % = (0.981 - 1) * 100
Real consumption change% = -1.9%
2. Real investment % = ((Investment in 2009 / 2007) - 1) * 100
Real investment % = ((1898 / 2644) - 1) * 100
Real investment % = (0.718 - 1) * 100
Real investment % = -28.2%
3. Government spending % = ((Government spending 2009 / 2007) - 1)*100
Government spending % = ((3089 / 2914) - 1)*100
Government spending % = (1.06 - 1) * 100
Government spending % = 6%
The DEF partnership reported net income of $130,000 for the year ended December 31, 20X8. According to the partnership agreement, partnership profits and losses are to be distributed as follows in the following order:
D Â Â Â Â Â Â Â Â Â Â Â Â EÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â F
Salaries               $25,000            $20,000        $15,000
Bonus on net income        10%                       -----                -----
Remainder            60%            30%         10%
Required:
How should partnership net income for 2008 be allocated to D, E, and F?
Answer:
The DEF Partnership
Allocation of Partnership Net Income for 2008:
D E F Total
Net income $130,000
Salaries $25,000 $20,000 $15,000 (60,000)
Bonus on net income 13,000 ----- ----- (13,000)
Remainder 34,200 17,100 5,700 (57,000)
Total allocation $72,200 $37,100 $20,700 $130,000
Explanation:
a) Data and Calculations:
Net income for the year ended December 31, 2008 = $130,000
Order of distribution of partnership profits and losses:
D E F
Salaries $25,000 $20,000 $15,000
Bonus on net income 10% ----- -----
Remainder 60% 30% 10%
Bonus on net income = $13,000 ($130,000 * 10%)
Remainder after salaries and bonus = $57,000 ($130,000 - $73,000)
D = $34,200 ($57,000 * 60%)
E = $17,100 ($57,000 * 30%)
F = $5,700 ($57,000 * 10%)
Be-The-One is a motivational consulting business. At the end of its accounting period, December 31, 20Y2, Be-The-One has assets of $395,000 and liabilities of $97,000. Using the accounting equation, determine the following amounts: a. Stockholders' equity as of December 31, 20Y2. $fill in the blank 1 b. Stockholders' equity as of December 31, 20Y3, assuming that assets decreased by $65,000 and liabilities increased by $36,000 during 20Y3. $fill in the blank 2
Answer:
a. Stockholders' equity as of December 31, 20Y2
Assets = Equity + Liabilities
395,000 = Equity + 97,000
Equity = 395,000 - 97,000
= $298,000
b. Stockholders' equity as of December 31, 20Y3.
Assets = Equity + Liabilities
(395,000 - 65,000) = Equity + (97,000 + 36,000)
330,000 = Equity + 133,000
Equity = 330,000 - 133,000
= $197,000
Moonbeam Company manufactures toasters. For the first 8-months of 2017, the company reported the following operating results while operating at 75% of plant capacity:
Sales (350,000 units) $4,375,000
Cost of goods sold 2,600,000
Gross profit 1,775,000
Operating expenses 840,000
Net income $935,000
Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam receives a special order for 21,600 toasters at $8.12 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,100 of shipping costs but no increase in fixed costs.
Required:
a. Prepare an incremental analysis for the special order.
b. Should Moonbeam accept the special order? Why or why not?
Answer:
Moonbeam Company
a. Incremental Analysis:
Sales revenue:
Units of toasters (21,600 at $8.12) $175,392
Variable costs (21,600 * $7.12) 153,792
Shipping costs 3,100
Total incremental costs $156,892
Incremental net income $18,500
b. Moonbeam should accept the special order. It has the required capacity to deliver the additional toasters. It will generate an incremental income of $18,500, which is better than nothing.
Explanation:
a) Data and Calculations:
Sales (350,000 units) $4,375,000
Cost of goods sold 2,600,000
Gross profit 1,775,000
Operating expenses 840,000
Net income $935,000
Operating capacity = 75%
Current sales = 350,000
Plant capacity = 466,667 units (350,000/75%)
Total Per Unit
Sales (350,000 units) $4,375,000 $12.50
Variable cost of goods sold = 1,820,000 ($2,600,000 * 70%)
Variable operating expense = 672,000 ($840,000 * 80%)
Total variable costs = $2,492,000 $7.12
Net income = $1,883,000
Special Order:
Incremental Sales revenue
Units of toasters (21,600 at $8.12) $175,392
Variable costs (21,600 * $7.12) 153,792
Shipping costs 3,100
Total incremental costs $156,892
Incremental net income $18,500
g dividends paid 13500. what was the net income for the past year of the firm faces a tax rate of 30%
Answer:
A.) £27,214.29
B.) £19,250
Step-by-step explanation:
Given the following :
Andy £13500
Bevan £27500
Cheryl £13250
Deva £75000
Elliott £18750
Frankie £27500
Grace £15000
Mean income = (total sum of salaries / number of workers)
Mean income = £(13500 + 27500 + 13250 + 75000 + 18750 + 27500 + 15000) / 7
Mean income = (£190,500 / 7) = £27,214.286
B.) mean income excluding Deva's salary:
Mean income = Mean income = £(13500 + 27500 + 13250 + 18750 + 27500 + 15000) / 7
Mean income = £115,500 / 6
Mean income = £19,250
How does the current organizational and operational structure, including the system of corporate governance, benefit the firm
Answer:
The organizational and operational structure of a company must be aligned with the core values and objectives of the business, as it impacts and determines the relationships and culture in the organizational environment.
Therefore, when there is an organizational structure where the hierarchical positions and the decision-making system match the way the company operates in the market, it is correct to say that such organization has a culture that enables its development and the correct progress of the business. Combined with corporate governance, which is a system of inspection, control and incentive to interested parties, the company will benefit from being well structured, positioned and oriented to achieve quality and continuous process improvement.
An analysis of the income statement revealed that interest expense was $100000. Waterway Company's times interest earned was
Answer: 8.3
Explanation:
The times interest earned is used to estimate the ability of a company to pay its debt payments using income from operations.
It is calculated by the formula:
= Earnings before interest and tax / Interest expense
Earnings before interest and tax:
= Earnings before tax + Interest expense
= 730,000 + 100,000
= $830,000
Times interest earned:
= 830,000 / 100,000
= 8.3
Work in process inventory, September 1 (2,000 units, 100% complete with respect todirect materials, 80% complete with respect to direct labor and overhead; includes$45,000 of direct material cost, $25,600 in direct labor cost, $30,720 overhead cost) $ 101,320 Units started in April 28,000 Units completed and transferred to finished goods inventory 23,000 Work in process inventory, September 30 (? units, 100% complete with respect to direct materials, 40% complete with respect to direct labor and overhead) ? Costs incurred in September Direct materials $ 375,000 Conversion $ 341,000Required:Compute each of the following, assuming Hi-Test uses the weighted-average method of process costing.(Round "Cost per EUP" to 2 decimal places.)1. The number of physical units that were transferred out and the number that are in ending work in process inventory.2&3. The number of equivalent units for materials and conversion for the month.4&5. The cost per equivalent unit of materials and conversion for the month6. The total cost of goods transferred out.7. The total cost of ending work in process inventory.
Answer:
1. Number of physical units transferred out = 23,000 units
Number of units in ending work in process = 7,000 units
2. The number of equivalent units for materials = 30,000 units
3. The number of equivalent units for conversion = 25,800 units
4. The cost per equivalent units for materials = $14.00
5. The cost per equivalent units for conversion = $15.40
6. The total cost of goods transferred out = $676,200
7. The total cost of ending work in process inventory = $141,120
Explanation:
a) Data and Calculations:
Units Materials Conversion Total
Work in process inventory,
September 1 2,000 100% 80%
Cost of beginning WIP $45,000 $56,320 $101,320
Cost during April 375,000 341,000 716,000
Total production costs $420,000 $397,320 $817,320
Units started in April 28,000
Total units in process 30,000 (2,000 + 28,000)
Units transferred out 23,000 23,000 23,000
Ending WIP, Sept. 30 7,000 7,000 (100%) 2,800 (40%)
Total equivalent units 30,000 25,800
Cost per EUP $14.00 ($420,000/30,000) $15.40 ($397,320/25,800)
Cost of goods transferred out $322,000 $354,200 $676,200
($14.00 * 23,000) ($15.40 * 23,000)
Cost of ending WIP $98,000 $43,120 $141,120
($14.00 * 7,000) ($15.40 * 2,800)
Total costs accounted for $420,000 $397,320 $817,320
Consider the following project network and activity times (in weeks): Activity A B C D E F G H Time 5 3 7 6 7 3 10 8 How much time will be needed to complete this project
Answer:
Please find the attached file of the complete question:
Explanation:
Please find the attached file of the solution:
Critical Path: ACH
Duration: 21
Because C is on the Critical Path, it cannot be postponed without causing the project to be delayed.
E is not on the critical path, thus it may also be delayed by two weeks without causing the project to be delayed.
[tex]D : ES : 6, EF : 10, LS : 7, LF : 11[/tex]
The Hi-Stakes Company has a number of importing and exporting transactions. Importing activities result in payables and exporting activities result in receivables. (LCU represents the local currency unit of the foreign entity.)
Required:
If the direct exchange rate increases, does the dollar weaken or strengthen relative to the other currency? If the indirect exchange rate increases, does the dollar weaken or strengthen relative to the other currency?
Answer:
The Hi-Stakes Company
a. If the direct exchange rate increases, the dollar strengthens relative to the other currency.
b. If the indirect exchange rate increases, the dollar also strengthens relative to the other currency.
Explanation:
When the exchange rate increases, it means that more of the other currency is required in order to embark on importing and exporting transactions. However, the increases will weaken the ability of the importing currency to afford the dollar-based goods, which have then being made more expensive.
Your boss believes the company's power plant is producing too much air pollution on a typical island. Your boss gives you three choices for dealing with this problem because he/she does not want to deal with it: You can pay a pollution tax (Carbon Offsets) one time of $13,000,000 immediately. You can close the plant and install a power cable from the mainland to the Island. That will cost you $1,000,000 at the end of this year, $3,000,000 at the end of next year and then $750,000 forever for maintenance. You can retrofit the plant with scrubbers to reduce the emissions to make the plant green. That will cost $7.5m at the end of this year and $100,000 for 50-years for maintenance. Assume that the cost of generating power on the mainland is approximately the same as the cost of generating power at the Island's plant. Assume, this comes as a surprise to you and you, have not saved any money in reserves, and you need to raise capital. Additional information is that market has a 12 percent market risk premium on the power plant with the risk-free rate being 5 percent with a company tax rate of 35 percent.
Current total raised capital at the power plant: (This will help you calculate the WACC) Debt – 7,000 outstanding bonds, at 7.5% coupon and 20 years to maturity. These bonds pay interest semiannually and quoted a price of 108 percent of par. Common Stock -180,000 shares outstanding, selling for $50 per share: Beta .90. Preferred Stock – 8,000 shares of 5.5 percent preferred stock outstanding, currently selling for $95.00 per share. Please answer in essay format and provide your Excel document showing all your calculation in appendixes choose the best option for Island. Support your answer with your calculations. Also, to calculations use specified resources, other appropriate scholarly resources, including older articles.
Answer:
WACC is 10.38%.
Best option is no 3, paying $750,000 this year and then $100,000 for 5 years.
Explanation:
WACC = Common stock * cost of equity + Debt * Cost of debt + Preferred stock * rate of return.
Common stock = 180,000 shares * $50 = $9,000,000
Preferred stock = 8,000 shares * $95 per share = $760,000
Debt = 7,000 bonds * 108% = $7,560,000
Cost of equity : 12% * 0.9 + 5% = 12.5%
Cost of debt : 7.5% * 0.65 = 4.40%
Preferred stock return rate : 5.5% / 95 = 5.79%
WACC = 10.38%
PV for option 1: $13,000,000
PV for option 2: $9,298,647
PV for option 3: $7,661,247
A company designs a training program for underperforming employees. They enroll in the program the employees who received the worst 10% of performance evaluations in a given year. They find that very few of the employees who go through the program are in the bottom 10% of performance evaluations the next year. What can they conclude about their new program
Answer:
They can conclude that the program was a success
Explanation:
They can conclude that the program was a success. The main goal of the program is to increase the performance of the employees that were performing the worst in the company. By choosing the bottom 10% of the performance evaluation, they make sure that they are getting the worst of the worst in the company. Therefore, if after the program, the subjects are no longer in the bottom 10% then this means that they have drastically increased their performance and have even passed those that were in a much higher performance ranking than them in the previous year. This means that the program exceeded its goal and can be marked as successful.
Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $910. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 310 Units sold 280 Units in ending inventory 30 Variable costs per unit: Direct materials $ 130 Direct labor $ 350 Variable manufacturing overhead 50 Variable selling and administrative 40 Fixed costs: Fixed manufacturing overhead $ 62,000 Fixed selling and administrative $ 26,000 The absorption costing income statement prepared by the company’s accountant for last year appears below: Sales $ 254,800 Cost of goods sold 204,400 Gross margin 50,400 Selling and administrative expense 37,200 Net operating income 13,200Required:1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.Total fixed manufacturing overhead in ending inventory: ?2. Prepare an income statement for the year using variable costing.
Answer:
1. 6,000
2. 7,200
Explanation:
1. Calculation to determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.
Using this formula
Ending inventory=Fixed manufacturing overhead/Units produced*Ending units
Let plug in the formula
Ending inventory=62,000/310*30
Ending inventory=6,000
Therefore how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period is 6,000
2. Preparation of an income statement for the year using variable costing.
IDA SIDHA KARYA Company Variable Costing Income Statement
Units produced cost (130+350+50=530)
Sales $254,800
(280*910)
VARIABLE EXPENSES:
Variable cost of goods sold $148,400
(280*530)
Variable selling and administrative expense $11,200
(280*40)
Contribution margin $95,200
($254,800-$148,400-$11,200)
FIXED EXPENSES:
Fixed manufacturing overhead $62,000
Fixed selling and administrative expense $26,000
Net operating income $7,200
($95,200-$62,000-$26,000)
Therefore the income statement for the year using variable costing is $7,200
Rick has met with the Small Business Administration, which analyzed his entrepreneurial skills and provided him with a summary of the results. Out of these findings of the SBA, what might challenge Rick in his quest to become a successful entrepreneur? a) Rick is conscientious and emotionally stable. b) Rick has some tolerance for ambiguity because he knows he is trying to do things that haven't been done before. c) Rick has an external locus of control. d) Rick is comfortable with a moderate level of risk, and he has the confidence to act decisively. e) Rick has a high nec Rick has a high need for autonomy and wants to shape his own destiny
Answer:
c) Rick has an external locus of control.
Explanation:
What can challenge Rick in his quest to become a successful entrepreneur is that he has an external locus of control, which occurs when an individual relates events related to their failures or successes to external variables that are not their responsibility, such as fate, luck or bad luck.
The external locus of control can pose a challenge for Rick in the sense that an entrepreneur's success is related to his own personal control and personal efforts to make the business viable and successful in the market. It is necessary for the entrepreneur to understand that there are risks inherent to the business and that a business can work according to their efforts, learning and planning, that is, the entrepreneur and their control and management actions will be responsible for the success or failure of the business, and not just external factors like fate or bad luck.
Inventory which originally cost 50.0 is sold for 70.0 in cash. Which answer best describes how this transaction would be reflected in the company's balance sheet
Question Completion with Options:
a. Inventory decreases 50.0, cash increases 70.0, retained earnings increases 20.0
b. Cash increases 20.0, sales increases 70.0, inventory decreases 50.0
c. Retained earnings decreases 50.0, inventory decreases 50.0, retained earnings increases 70.0, accounts receivable increases 70.0
d. Inventory decreases 50.0, sales increase 70.0, cash increases 70.0, accounts payable decreases 50.0
Answer:
In the company's balance sheet:
a. Inventory decreases 50.0, cash increases 70.0, retained earnings increases 20.0
Explanation:
a) Data and Analysis:
Cash $70 Sales Revenue $70
Cost of goods sold $50 Inventory $50
b) In the company's balance sheet, the net effect will be an increase in the cash balance by $70 and a decrease of the ending inventory by $50. These two accounts are balanced by an increase in Retained Earnings, which are adjusted from the income statement, in the sum of $20 ($70 - $50).
The transactions which would be reflected in the balance sheet of the company are: Inventory decreases 50.0, cash increases 70.0, and retained earnings increases 20.0.
What is a balance sheet?A balance sheet is a financial statement that lists the assets and liabilities of a corporation at a certain point in time.
It is one of the three primary financial statements—the other two being the income statement and cash flow statement—that are used to assess a company's performance.
Information and analysis
Cash $70 $70 in sales revenue$50 was spent on the goods. $50 in inventoryThe net impact on the company's balance sheet will be an increase in cash by $70 and a reduction in ending inventory by $50.Retained Earnings are raised by $20 ($70 - $50), which is modified from the income statement in order to balance these two accounts.Thus, above is the amount that is to be reflected in the company balance sheet.
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Assuming that all entries have been posted, prepare correcting entries for each of the following errors.
a. The following entry was made to record the purchase of $774 in supplies on account:
Supplies 142 774
Cash 101 774
b. The following entry was made to record the payment of $475 in wages:
Rent Expense 521 475
Cash 101 475
c. The following entry was made to record a $396 payment to a supplier on account:
Supplies 142 196
Cash 101 196
Answer and Explanation:
The correcting journal entries are shown below:
a. Cash Dr $774
To account payable $774
(Being purchase of supplies on account is recorded)
b. Wages expense Dr $475
To rent expense $475
(Being wages expense is recorded)
c. Account payable $396
To Supplies $196
To cash $200
(being cash paid is recorded)
These 3 correcting entries should be recorded
Promoting from within should __________ be regarded as an act of discrimination because the information costs of inside versus outside employees are __________.
Answer: sometimes not; higher for the outsider
Explanation:
The options are:
a. always; the same
b. always; higher for the insiders
c. sometimes not; the same
d. sometimes not; higher for the outsiders
Promoting from within should (sometimes not) be regarded as an act of discrimination because the information costs of inside versus outside employees are (higher for the outsider).
While Amazon has become a very powerful e-commerce firm here in the US, Alibaba, the Chinese company is very powerful in many parts of the world. Go to Wikipedia and read about the different type of businesses that Alibaba operates. Then write a short outline of these businesses.
Answer:
Alibaba is a chinese company, one of the largest in the world by market capitalization.
While it mainly specializes in online retail (both business to consumer, and business to business), it is also involved in other business activities such as cloud computing, electronic payment, artificial intelligence services, and data science and analysis. In fact, Alibaba is considered not only one of the best retailers in the world, but also one of the best artificial intelligence and data-driven companies in the world.
What is the similarity between high-technology firms and service-based firms that makes them risky as restructuring candidates
Answer:
Thet are both human-resource dependent.
Explanation:
Human resources refers to the group of people who make up a firm's workforce or personnel and are considered a valuable asset in terms of skills and talents.
Restructuring is the phrase used in corporate management to describe the process of rearranging a firm's legal, ownership, operational, or other structures in order to make it more lucrative or better organized for its current needs.
Because the firm's personnel are human, they have the capacity to resist any restructuring they believe will negatively affect them. This makes high-tech and service-based firms which are human-resource dependent to be particularly risky restructuring candidates.
A company reported the following asset and liability balances at the end of 2015 and 2016:
2015 2016
Assets $150,000 $180,000
Liabilities $70,000 $80,000
If the company paid dividends totaling $5,000, what is the amount of net income for 2016?
A. $20,000.B. $105,000.C. $80,000.D. $25,000.
Answer:
D. $25,000
Explanation:
The equity is the difference between assets and liabilities
Opening equity=$150,000-$70,000
opening equity=$80,000
Ending equity=$180,000-$80,000
ending equity=$100,000
The ending equity formula below can be used to derive the net income for 2016:
ending equity=beginning equity+ net income-dividends
The net income increases the amount of ending equity while dividends decrease it.
net income=unknown
dividends=$5000
$100,000=$80,000+net income-$5000
net income=$100,000-$80,000+$5,000
net income=$25,000
Linda believes that employees can view work as being as natural as rest or play, and therefore the average person can learn to accept, and even seek, responsibility. Linda's belief is best described by ______________.
Answer: Theory Y
Explanation:
Douglas McGregor came up with this theory of labor motivation that proposes that people are motivated internally to work hard and so need little push to actually work.
They are like this because they have come to view work as being a natural occurrence just like rest or play. Because it is now natural to them, they are able to learn to accept and even seek responsibility. Managers prefer such workers.
The term city-state refers to:_________.
a. A walled urban center and its agricultural hinderlands
b. The political institution that ruled over all ancient kingdoms
c. The capital of a large empire run by a monarch
d. An association of mutually dependent cities