Answer:
The resulting rise in unemployment is mostly a rise in __cyclical____ unemployment because it is related to the state of the economy.
Explanation:
Frictional unemployment occurs as a result of workers' search for or transition to new jobs. It is brief and does not leave a mark on the economy. Structural unemployment comes about when the skills of workers do not match the requirements of employers. Therefore, workers require retraining and reskilling. Cyclical unemployment relates to the macro-economic situation that is prevailing during periods of recession.
Assume that Division Blue has achieved a yearly income from operations of $166,000 using $976,000 of invested assets. If management has set a minimum acceptable return of 8%, the residual income is a.$166,000 b.$105,504 c.$70,336 d.$87,920
Answer:
d.$87,920
Explanation:
Residual Income = Net Income - Cost of Investment
therefore
Residual Income = $166,000 - ($976,000 x 8%)
= $87,920
The adjusted trial balance of Novak Corp. shows these data pertaining to sales at the end of its fiscal year, October 31, 2022: Sales Revenue $907,200; Freight-Out $13,600; Sales Returns and Allowances $19,800; and Sales Discounts $15,200.
Required:
Prepare the sales section of the income statement.
Answer:
$872,200
Explanation:
Preparation of the sales section of the income statement.
NOVAK CORP Income Statement ( Partial)
for the year ended 31 Oct, 2022
Revenue [Net Sales]
Sales Revenue $907,200
Less:
Sales Return & Allowances ($19,800)
Sales Discounts ($15,200)
Net Sales $872,200
Therefore the sales section of the income statement is $872,200
Griffin Co. is considering the investment of $136,000 in a new machine. The machine will generate cash flow of $22,500 per year for each year of its eight-year life and will have a salvage value of $8,000 at the end of its life. Griffin Co.'s cost of capital is 8 percent.(a) Calculate the net present value of the proposed investment. Ignore income taxes, and round all answers to the nearest $1. (b) What will the internal rate of return on this investment be relative to the cost of capital?
Answer:
$-2,378.47
7.55
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Cash flow in year 0 = $-136,000
Cash flow in year 1 to 7 = $22,500
Cash flow in year 2 = $22,500 + 8,000
I = 8 %
NPV = $-2,378.47
IRR = 7.55
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button
sells subscriptions for for months. The company collects cash in advance and then subscribers have access to unlimited movies each month. Apply the revenue recognition principle to determine a. when should record revenue for this situation. b. the amount of revenue should record for months.
Answer:
First part of the question is:
Movies Online sells subscriptions for $36 for 18 months.
a. Apportion revenue to each month.
Going by the Revenue Recognition principle, revenue should only be recognized when the service has been delivered. Seeing as the service is monthly, the company should find out the total revenue for the 18 months and then apportion this to each of those 18 months and recognize a monthly revenue at the end of each month.
b. Amount of revenue for 8 months:
First find the revenue per month:
= Total revenue / 18 months
= 36 / 18
= $2 per month
Revenue for 8 months:
= 2 * 8
= $16
A company needs 550,000 items per year. It costs the company $330 to prepare a production run of these items and $5 to produce each item. If it also costs the company $0.75 per year for each item stored, find the number of items that should be produced in each run so that total costs of production and storage are minimized. items/run
Answer:
Company A
The number of items that should be produced in each run to minimize total costs of production and storage is:
= 22,000 units
Explanation:
a) Data and Calculations:
Total annual demand = 550,000 units
Cost per production run = $330
Cost per unit = $5
Storage (holding) cost per item = $0.75
The number of items that should be produced in each run to minimize total costs of production and storage is given by Economic Order Quantity (EOQ) formula
= square root of (2 * 550,000 * $330)/$0.75
= square root of $363,000,000/$0.75
= square root of 484,000,000
= 22,000 units
Define and explain SMART?
1 Cash on hand at the company and not yet deposited at the bank. 4,800
2 EFT for monthly utility bill not yet recorded by the company. 1,600
3 Note collected by the bank and not yet recorded by the company. 10,200
4 Interest collected by the bank from note in #3 not yet recorded by the company. 1,300
5 A check witten for insurance expense for $90 was cashed. The check was recorded on the books for $160. ?
6 Checks written by the company but not yet processed by the bank. 2,600
7 Service fee charged by bank but not yet recorded by the company. 100
8 Customer checks determined by the bank to have nonsufficient funds. 3,000
Bank balance at the end of the period. 16,990
Company balance at the end of the period. 12,320
Required:
1-a. What is the revised Cash balance at the end of the period?
1-b. Is the bank reconciliation in balance?
Yes
No
2-a. What is the balance in Cash if the entry to correct the insurance payment hasn't been made?
2-b. Would the bank reconciliation still be in balance?
Yes
No
3. Which statement below is true regarding the effect of the company incorrectly recording a customer deposit at $180,000 rather than $18,000?
No effect on the bank reconciliation.
The difference of $162,000 will be subtracted from the book balance.
The difference of $162,000 will be added to the book balance.
The bank balance will be increased by $180,000.
Answer:
1 a. $19,190
1 b. Yes
2 a. $19,050
2 b. No
3. The difference of $162,000 will be subtracted from the book balance.
Explanation:
Reconciliation Statement:
Balance as per bank $16,990
Add: deposits $4,800
Less; Outstanding Checks - $2,600
Adjusted Bank Balance $ 19,190
Balance as per Books $12,320
Less: EFT on monthly bills - $1,600
Add: Notes Collected $10,200
Add: Interest On notes $1,300
Less: Error in recording $70
Add: Service Fees - $100
Less : Checks returned -$3,000
Adjusted Balance of Books $19,190
Categorize each scenario as describing a movement along a demand curve or a shift of the demand curve.
a. College students rush and buy discount furniture to take advantage of a one-day sale
b. Students eat out more often as the federal government increase how much grant money it provides
c. College students reduce how detergent they for each of laundry response to higher detergent prices.
d. College students purchase many more energy drinks during finals week than during the rest of the semester.
Answer:
a, a movement along a demand curve
b. shift of the demand curve.
c. a movement along a demand curve
d. shift of the demand curve.
Explanation:
Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.
Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :
1. a change in consumers' expectation
2. a change in the taste of consumers
3. a change in income
a. A discount would reduce the price of furniture, as a result the quantity demanded would increase. There would be a movement down along the demand curve.
b. As a result of the increase in grant, the income of students increase. this would lead to an increase in demand. the demand curve would shift outward
c. As a result of higher prices, the quantity demanded of detergents would reduce. This would lead to a movement up along the demand curve for detergents
d. An increase in demand for energy drinks is as a result of a change in taste. this would lead to an outward shift of the demand curve
New lithographic equipment, acquired at a cost of $800,000 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $90,000. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, the equipment was sold for $135,000. Required: 1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double declining- balance method. 2. On January 1, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. 3. On January 1, journalize the entry to record the sale, assuming that the equipment was sold for $88,750 instead of $135,000. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Alternative Depreciation Methods
(a) the straight-line method calculations:
Annual depreciation expense for each of the five years of use = $142,000 ($710,000/5)
(b) the double declining- balance method calculations:
Depreciation rate = 100%/5 * 2 = 40%
1st year Depreciation = $320,000 ($800,000 * 40%)
2nd year Depreciation = $192,000 ($480,000 * 40%)
3rd year Depreciation = $115,200 ($288,000 * 40%)
4th year Depreciation = $69,120 ($172,800 * 40%)
5th year Depreciation = $13,680 ($103,680 - $90,000)
2. Journal Entries (double-declining-balance method):
Debit Sale of Equipment $800,000
Credit Equipment $800,000
To transfer the equipment to Sale of Equipment account.
Debit Accumulated Depreciation $696,320
Credit Sale of Equipment $696,320
To transfer the accumulated depreciation to Sale of Equipment account.
Debit Cash $135,000
Credit Sale of Equipment $135,000
To record the proceeds from the sale of the equipment.
3. Journal Entries (double-declining-balance method):
Debit Sale of Equipment $800,000
Credit Equipment $800,000
To transfer the equipment to Sale of Equipment account.
Debit Accumulated Depreciation $696,320
Credit Sale of Equipment $696,320
To transfer the accumulated depreciation to Sale of Equipment account.
Debit Cash $88,750
Credit Sale of Equipment $88,750
To record the proceeds from the sale of the equipment.
Explanation:
a) Data and Calculations:
Cost of the new lithographic equipment = $800,000
Estimated useful life = 5 years
Estimated residual value = $90,000
Depreciable amount = $710,000 ($800,000 - $90,000)
Sales proceeds in the first week of the fifth year = $135,000
A machine having a first cost of $20,000 is expected to save $1500 in thefirst year of operation, and the savings should increase by $200 every year until (and including) the ninth year, thereafter the savings will decrease by $150 until (and including) the 16th year.
Using equivalent uniform annual worth, is this machine economical? Assume a MARR of 9%.
Answer:
This machine is not economical. A further explanation is provided below.
Explanation:
Given:
First cost,
= $20,000
Saving,
= $1500
Increase by,
= $200
Decrease by,
= $150
Now,
The EUAW will be:
= [tex]-20000+1500(\frac{P}{F}, 9 \ percent,1 )+1700(\frac{P}{F}, 9 \ percent,8 )+1550(\frac{P}{F}, 9 \ percent,7 )[/tex]
= [tex]-20000+1500\times 0.9174+1700\times 0.5018+1550\times 0.5470[/tex]
= [tex]-20,000 + 1,371.1 + 856.06 + 847.85[/tex]
= [tex]-16,294.99[/tex] ($) negative
Thus this machine is not economical.
Retained earnings, December 31, 2019 $210,300
Decrease in total liabilities during 2019 45,800
Gain on the sale of buildings during 2019 16,100
Dividends declared and paid in 2019 4,500
Proceeds from sale of common stock in 2019 49,400
Net income for the year ended December 31, 2019 22,600
Required:
From the above data, calculate the retained earnings balance as of December 31, 2015.
Answer:
See below
Explanation:
Given the above information,
Retained earnings balance as of December 31, 2015
Ending retained earnings = Beginning retained earnings + Net income for year ended - Dividends declared and paid in 2019
$210,300 = Beginning retained earnings + $22,600 - $4,500
Beginning retained earnings = $192,200
Therefore, retained earnings balance as of 31 December 2015 is $192,200
You own a bond that has a duration of 7 years. Interest rates are currently 8%, but you believe the Fed is about to increase interest rates by 28 basis points. Your predicted price change on this bond is ________.
a. +1.81%
b. +6.48%
c. −6.48%
d. −1.81%
A company enters a futures contract to sell 50,000 units of a commodity for 70 cents per unit. The initial margin is $4,000 and the maintenance margin is $3,000. What change in the futures price (per unit) would lead to a margin call?
Answer:
72 cents
Explanation:
There is going to be a margin call when greater than 1000 dollars has been lost from the margin. Then the balance in the account is going to be smaller than that of the maintenance margin. so 1 cent increase in the price would bring about a lossof
0.01 * 50000
= $500
if the increase in the future price is about 2 cents then there would be a margin call.
70+2 = 72cents, this is when there would be a margin call
Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Product X at a total cost of $1,000 per unit, of which $680 is product cost and $320 is selling and administrative expenses. In addition, the total cost of $1,000 is made up of $570 variable cost and $430 fixed cost. The desired profit is $200 per unit.
Required:
Determine the markup percentage on total cost.
Answer:
the markup percentage on total cost is 20 %
Explanation:
Mark up = Profit / Total Cost x 100
where,
Total Cost = $1,000
Profit = $200
therefore,
Mark up = $200 / $1,000 x 100 = 20 %
thus,
the markup percentage on total cost is 20 %
Maxwell Washington's weekly gross earnings for the week ending March 9 were $2,620, and her federal income tax withholding was $550.20. Assuming the social security tax rate is 6% and Medicare tax is 1.5% of all earnings, what is Washington's net pay?
Answer:
1 million
Explanation:
Kumaran Pillay has a vegetable stall at the Suva Market. His business has been plagued with under-stocking and over-stocking problems for some time now. When he under-stocks, he loses sales as customers move to competing stalls. When he over-stocks, is left with unsold vegetables. These are perishable and cannot be kept long for later sales. Pillay is concerned with how he can minimize these losses stemming from under and over-stocking.
1. Identify and explain how he could use 3 qualitative forecasting methods to improve his stocking. Note that you will need to justify your proposals and link it to the business being discussed. (10 marks)
2. Identify and explain how he could use 2 quantitative forecasting methods to improve his stocking. Note that you will need to justify your proposals and link it to the business being discussed. (10 marks)
Answer:
1) Using the 3 qualitative forecasting methods
Executive opinions,
Delphi method,
Salesforce polling.
2) Using the 2 quantitative forecasting methods:-
The straight-line method,
The average approach.
Explanation:
1) Using the 3 qualitative forecasting methods
Executive opinions- In this method, he could seek subjective views from experts concerning his sales. this might be viewed on his purchasing, finance, and future sales. However, it's utilized in conjunction with other quantitative forecasting methods so as to realize the simplest forecasts.
Delphi method- He could question a gaggle of experts about their views individually. they are doing not meet to avoid manipulation in judgments. Forecasts during this case might be compiled and analyzed by an external observer and returned to the experts for further questioning.
Salesforce polling- he could use this approach whereby he reaches bent people that are in touch with the regular customers and who can correctly predict the trends of the customers' consumption so as to offer him insights on how and when to restock counting on demand. This method is sweet for future forecasting since it gives the expected consumption trends of the purchasers that would be employed by the owner to make a decision on the quantity of inventory to stock in the future.
2) Using the 2 quantitative forecasting methods:-
The straight-line method- This is the only method of calculating future sales supported past data. It involves the utilization of a straight-line equation this measures the expansion or future predictions in sort of percentages. Here, past data is collected and a few analysis is completed to work out the trend that customers might adopt in their subsequent purchases. once they're known, the forecast on increasing or decreasing the inventory is predicated on percentage increase or reduction respectively. for instance, once demand is forecasted to grow, the vendor will decide the share they might order to hide the rise in demand.
The average approach- Here, the owner of a business conducts a mean of the past sales they need to be made to customers over a selected period. the most assumption is that the longer-term forecast is that the average of the past data. Since the owner has been making overstocking and understocking methods, it's assumed that the type of the orders is adequate to the longer-term forecast. for instance, if the owner decided within the past to order 100 units of a specific product and therefore the customers demanded quite 100 units maybe 150 units, there's an understocking decision. The owner might plan to increase subsequent stock to 200 units and at this point, the purchasers only demand 175 units making him to possess more stock than it had been required. On learning this concerning the market, the owner then decides to conduct a mean and order 150 units to require care of the overstocking and under-stocking problems.
Why do you think demand analysis is essential for businesses?
✦ ✦ ✦ Beep Boop - Blu Bot! At Your Service! Scanning Question . . .
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--------------------------------------------------------------------------------------------------------------Question: Why do you think demand analysis is essential for businesses?
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Answer: Demand analysis is the process of understanding the customer demand for a product or service in a target market. Companies use demand analysis techniques to determine if they can successfully enter a market and generate expected profits to expand their business operations. It also gives a better understanding of the high-demand markets for the company’s offerings, using which businesses can determine the viability of investing in each of these markets. The importance of demand analysis in the business decision is that it helps firms design their pricing policy. The Firm can choose either to lower or raise a product’s price by observing the trend of consumer demand for that product. Producers can’t fix the price for their products without first understanding the market demand for them. These are reasons why I think demand analysis is essential for businesses
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Suppose that Portugal and Switzerland both produce fish and olives. Portugal's opportunity cost of producing a crate of olives is 3 pounds of fish while Switzerland's opportunity cost of producing a crate of olives is 11 pounds of fish. By comparing the opportunity cost of producing olives in the two countries, you can tell that _____________ has a comparative advantage in the production of olives and _________ has a comparative advantage in the production of fish.
Suppose that Portugal and Switzerland consider trading olives and fish with each other. Portugal can gain from specialization and trade as long as it receives more than ___________of fish for each crate of olives it exports to Switzerland. Similarly, Switzerland can gain from trade as long as it receives more than __________ of olives for each pound of fish it exports to Portugal. Based on your answer to the last question, which of the following prices of trade (that is, price of olives in terms of fish) would allow both Switzerland and Portugal to gain from trade?
a. 6 pounds of fish per crate of olives
b. 2 pounds of fish per crate of olives
c. 8 pounds of fish per crate of olives
d. 18 pounds of fish per crate of olives
Answer:
Portugal has comparative advantage in producing olives.
Switzerland has comparative advantage in producing fish.
Portugal can gain from trade if it receives more than 3 pounds of fish per crate of olives.
Switzerland can gain from trade if it receives more than 1/11 of olives for each pound of fish.
d. 18 pounds of fish per crate of olives.
Explanation:
Switzerland and Portugal both countries can produce Olives and fish. One country has advantage in producing fish while other has advantage in producing olives. Both countries can gain from trade if they find a intermediary way so that both countries can be in win win situation. It is beneficial for Portugal if it trades with Switzerland if it receives more than 3 pounds of fish.
Mickley Company’s plantwide predetermined overhead rate is $20.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour. The following information pertains to Job A-500: Direct materials $ 280 Direct labor $ 150 Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 70 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)
Answer and Explanation:
The computation is shown below;
1.
Total hours for job A - 500
= Direct labor ÷direct labor wage rate
= $150 ÷ $15
= 10
Total over head cost = overhead cost per labor hours × no. of labor hours
= $20 × 10
= $200
total manufacturing cost = Direct materials cost + Direct labor cost + Total over head cost
= $280 + $150 + $200
= $630
2.
Cost assigned to each unit
= total manufacturing cost ÷ number of units
= $630 ÷ 70
= $9
The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following are arguments in favor of active stabilization policy by the government?
a. Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
b. The current tax system acts as an automatic stabilizer.
c. Businesses make investment plans many month in advance.
d. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.
Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $5 per unit. Minor currently produces and sells 7,500 units at $6.00 each. This level represents 75% of its capacity. Production costs for these units are $4.50 per unit, which includes $3.00 variable cost and $1.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,000 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. Should the company accept the special order?
A. No, because additional production would exceed capacity.
B. No, because incremental costs exceed incremental revenue.
C. No because incrementa conse o Yes, because incremental revenue exceeds incremental costs.
D. Yes, because incremental costs exceed incremental revenues.
E. No, because the incremental revenue is too low.
Answer:
D. Yes, because incremental costs exceed incremental revenues.
Explanation:
Given that
The Selling price of the order is $5
The Variable cost of manufacturing is $3
The Contribution per unit is $2
The Number of units is 1500
now
Total contribution
= 1500 × $2
= $3,000
Less: Machine costs ($1000)
Tota incremental revenue $2,000
As the incremental revenue is positive and exceeds the incremental cost so the special order can be accepted
A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 7.3%, and sells for $1,170. Interest is paid annually.a. If the bond has a yield to maturity of 10.7% 1 year from now, what will its price be at that time? (Do not round intermediate calculations. Round your anser to nearest whole number.)b. What will be the annual rate of return on the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)c. Now assume that interest is paid semiannually. What will be the annual rate of return on the bond?Slightly greater than your part b answerSlightly less than your part b answerd. If the inflation rate during the year is 3%, what is the annual real rate of return on the bond? (Assume annual interest payments.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)
Answer:
a. Price 1 year later = $810
b. Annual rate of return on the bond = -24.53%
c. Since -24.79% is lower than -24.53% obtained part b, this implies that annual rate of return is slightly less than our part b answer.
d. Annual real rate of return on the bond = -26.73%
Explanation:
a. If the bond has a yield to maturity of 10.7% 1 year from now, what will its price be at that time? (Do not round intermediate calculations. Round your answer to nearest whole number.)
This can be calculated as follows:
Price 1 year later = Coupon rate * Par value / Yield to maturity * (1 - 1 / (100% + Yield to maturity)^Years to maturity) + Par value / (100% + Yield to maturity)^Years to maturity = 7.3% * 1000 / 10.7% * (1 - 1 / (100% + 10.7%)^9) + 1000 / (100% + 10.7%)^9 = $810
b. What will be the annual rate of return on the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)
This can be calculated as follows:
Annual rate of return on the bond = (Price 1 year later + Coupon rate * Par value) / Price now - 1 = (810 + 7.3% * 1000) / 1170 - 1 = -24.53%
c. Now assume that interest is paid semiannually. What will be the annual rate of return on the bond?Slightly greater than your part b answer Slightly less than your part b answer
This can be determined as follows:
Price 1 year later = (Coupon rate / 2) * Par value / (Yield to maturity / 2) * (1 - 1 / (100% + (Yield to maturity / 2))^(Years to maturity * 2)) + Par value / (100% + (Yield to maturity / 2))^(Years to maturity * 2) = (7.3% / 2) * 1000 / (10.7% / 2) * (1 - 1 / (100% + (10.7% / 2))^(9 * 2)) + 1000 / (100% + (10.7% / 2))^(9 * 2) = $807
Annual rate of return on the bond = (Price 1 year later + Coupon rate * Par value) / Price now - 1 = (807 + (7.3% / 2) * 1000) / 1170 - 1 = -24.79%
Since -24.79% is lower than -24.53% obtained part b, this implies that annual rate of return is slightly less than our part b answer.
d. If the inflation rate during the year is 3%, what is the annual real rate of return on the bond? (Assume annual interest payments.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)
This can be calculated as follows:
Annual real rate of return on the bond = (1 + nominal return) / (1 + inflation)-1 = (1 - 24.53%) / (1 +3 %) - 1 = -26.73%
Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs.
Products Sales Revenue Traditional ABC
Product 540X 198,200 54,440 45,520
Product 137Y 158,700 49,090 39,290
Product 249S 83,190 11,290 30,010
Required:
a. For each product line, compute operating income using the traditional costing system.
b. For each product line, compute operating income using the activity-based costing system
Solution :
a). Operating the income using traditional costing system
Products Sales revenue($) Traditional($) Operating income($)
( A ) ( B ) ( A - B )
540X 198,200 54,440 143,760
137Y 158,700 49,090 109,610
249S 83,190 11,290 71,900
b). Operating income using the activity-based costing system
Products Sales revenue($) Traditional($) Operating income($)
( A ) ( B ) ( A - B )
540X 198,200 45,520 152,680
137Y 158,700 39,290 119,410
249S 83,190 30010 53,180
Chris and Jane have recently financed the purchase of a new home. They have signed a mortgage note in the amount of $250,000 with a fixed interest rate of 6.25% over 30 years. What would have been the difference, if any, in their monthly payment if they had signed this same note for only a 15-year period
Answer:
Chris and Jane
The difference in their monthly payment if they had signed this same note for only a 15-year period is:
= $8,346.57.
Explanation:
Mortgage Note Payable = $250,000
Fixed interest rate = 6.25%
Period of the note = 30 years or 15 years
Difference in monthly payment:
30-year period = $9,022.96
15-year period = $17,369.53
Difference = $8,346.57
b) The computations show that Chris and Jane pay more per month on a 15-year period mortgage than on a 30-year period mortgage. However, the total interest is more with a 30-year period than with a 15-year period. This shows that interest expense increases more with longer periods of debt.
From an online financial calculator:
N (# of periods) 30
I/Y (Interest per year) 6.25
PV (Present Value) 250000
FV (Future Value) 0
Results
PMT = $9,022.96
Sum of all periodic payments = $270,688.83
Total Interest = $20,688.83
N (# of periods) 15
I/Y (Interest per year) 6.25
PV (Present Value) 250000
FV (Future Value) 0
Results
PMT = $17,369.53
Sum of all periodic payments = $260,542.92
Total Interest = $10,542.92
Southern Goods has an estimated going-concern value of $2 million. As a result of negotiations the firm's bankruptcy reorganization plan consists of $600,000 in new mortgage debt, $250,000 in subordinated debt, and $1,150,000 in new equity. Currently the firm has a mortgage of $823,000, other secured debt of $89,000, and unsecured debt of $1.34 million. According to the APR, what will the stockholders receive if they currently have 2 million shares with a par value of $1 each
Answer:
$0
Explanation:
Based on the information given what the STOCKHOLDERS RECEIVE if they currently have 2million shares with a par value of $1 each will be $0 reason been that the Stockholder claims have the LOWEST PRIORITY in a bankruptcy based on the fact that the debts amount has exceeded the firm's value which means that there is $0 amount left for current shareholders.
Mertis, Inc. reported Net fixed assets as follows on its Balance sheets for December 31, 2011, and December 31, 2012 look as follows:
2011 2012
Net fixed assets 815,000 865,000
On its 2012 Income statement, Mertis recorded a depreciation expense of $34,971. What amount of cash did Mertis spend in 2012 on new fixed assets? (Record your answer without a dollar sign and without commas, for example, a record $32,400 as 32400).
Answer:
the amount of cash did Mertis spend in 2012 on new fixed assets is $84,971
Explanation:
The computation of the amount of cash did Mertis spend in 2012 on new fixed assets is shown below;
= ending net fixed assets + depreciation expense - beginning net fixed assets
= $865,000 + $34,971 - $815,000
= $84,971
Hence, the amount of cash did Mertis spend in 2012 on new fixed assets is $84,971
In regards to a Construction Management Class:
Leadership for strong management can influence the ____________________ of a project.
Your grandparents put $10,200 into an account so that you would have spending money in college. You put the money into an account that will earn an APR of 4.19 percent compounded monthly. If you expect that you will be in college for 4 years, how much can you withdraw each month?
Answer:
Monthly withdrawal = $ 231.17 per month
Explanation:
Below is the calculation:
Deposit amount in the bank = $10200
Interest rate earned by the deposit = 4.19%
Monthly interest rate = 4.19% / 12 = 0.34917%
Number of periods = 4 years x 12 = 48
Amount in the account = Monthly withdrawal x (P/A, 0.34917%, 48)
10200 = Monthly withdrawal x 44.12246
Monthly withdrawal = 10200/44.12246
Monthly withdrawal = $ 231.17 per month
United Contractors Inc. holds a lien on Vista Estates real property. This property can be sold to satisfy the debt if, before the sale, notice is given to
Answer:
The answer is Vista Estates
Explanation:
Before any sale can done done, notice must be given to Vista Estates. The property can now be sold after been giving proper notice.
Vista Estates still has the legal right of original ownership even though a lien has been placed on his property. A lien is a legal claim against a property.
The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,117. A total of 34 direct labor-hours and 224 machine-hours were worked on the job. The direct labor wage rate is $14 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $16 per machine-hour. The total cost for the job on its job cost sheet would be:_____.
a. $5,867.b. $10,637.c. $8,492.d. $5,448.
Answer:
$6177
Explanation:
Calculation to determine what The total cost for the job on its job cost sheet would be
TOTAL COST
Direct materials $2,117
Direct labor (34 direct labor-hours × $14 per direct labor-hour) $476
Overhead (224 machine-hours × $16 per machine-hour) $3584
Total manufacturing cost
$6177
Therefore The total cost for the job on its job cost sheet would be:$6177