Answer:
Profit Margin = 10.92%
so correct option is a. 10.92%
Explanation:
given data
assets = $375,000
sales = $515,000
net income = $25,000
return on equity = 15.0%
ROE = 15%
to find out
What profit margin would the firm need
solution
we know that Profit Margin is
profit margin = Net Income ÷ Sales .............1
here Net Income is = Common Equity × ROE
net income = $375,000 × 15%
so from equation 1
Profit Margin = [tex]\frac{375,000*0.15}{515000}[/tex]
so
Profit Margin = 10.92%
so correct option is a. 10.92%
Chang Corp. would need a profit margin of 10.92% to achieve a 15% return on equity, by calculating the target net income based on their assets and applying it to their sales. The correct answer is a.
Explanation:To find the profit margin needed for Chang Corp. to achieve a 15% return on equity (ROE), we first calculate the target net income for a 15% ROE. This is done by multiplying the total equity, which is the same as the total assets in this case because the company has zero debt, by the target ROE percentage.
Target net income = Total assets × Target ROE
Target net income = $375,000 × 15%
Target net income = $56,250
Now, we calculate the profit margin by dividing the target net income by the sales, and then multiplying by 100 to get the percentage.
Profit margin = (Target net income / Sales) × 100
Profit margin = ($56,250 / $515,000) × 100
Profit margin = 10.92%
The firm would need a profit margin of 10.92% in order to achieve the 15% ROE, holding everything else constant.
Standing in line at a small-town grocery store gives people a chance to socialize. Is this a positive externality associated with the act of shopping? Why or why not?
a. Yes, because chatting with others is not inherently part of buying groceries
b. No, because the benefit is to the shoppers, not to third parties.
c. Yes, because in large cities such socializing would not occur.
d. No, because people can casily socialize elsewhere, as well.
e. Yes. because not every shopper is in a mood to talk.
Answer:
A. Yes, because chatting with others is not inherently part of buying groceries
Explanation:
When a third party benefits from the transaction between two parties its is known as economic transaction. For example when the parents pay for college education for their children, school and the parents are not the only beneficiaries , it is also beneficial for the society as the student would become a good citizen and that would solve many social problems itself.
Standing in line at small town grocery store gives the people chance to socialise. It is part of positive externality because chatting with others is not inherently part of buying groceries, it is an extra benefit for the buyers.
An insured dies within the time limit of an Increasing Term Rider and the beneficiary receives the face amount plus the value of all paid premiums. Which rider is attached to the policy?(A) Return of cash flow(B) Return of premium(C) Waiver of premium(D) Not allowed, insurers do not return premiums in this manner.
Answer:
The correct answer is B
Explanation:
Return of premium rider is the kind of policy where the add on that returns, the premiums paid if the insured person or outlives the terms and the conditions of the policy.
So, in this case, Insured person dies within the time period, and the beneficiary received the face amount and in addition all the premiums paid. It is the return of premium which is linked with the policy.
Highly Suspect Corp. has current liabilities of $415,000, a quick ratio of .79, inventory turnover of 9.5, and a current ratio of 1.25. What is the cost of goods sold for the company?
Answer:
1. Current ratio = Current assets
Current liabilities
1.25 = Current assets
$415,000
Current assets = 1.25 x $415,000
Current assets = $518,759
2. Quick ratio= Current assets - Inventory
Current liabilities
0.79 = $518,750 - Inventory
$415,000
0.79 x $415,000 = $518,750 - Inventory
$327,850 = $518,750 - Inventory
Inventory = $518,750 - $327,850
Inventory = $190,900
3. Inventory turnover = Cost of goods sold
Inventory
9.5 = Cost of goods sold
$190,900
Cost of goods sold = 9.5 x $190,900
Cost of goods sold = $1,813,550
Explanation:
In the first instance, there is need to apply the formula of current ratio in which current ratio and current assets have been given with the exception of current assets. Therefore, current asset is made the subject of the formula.
In the second case, we will apply the formula of quick ratio, where quick ratio, current assets and current liabilities were known except the inventory. Inventory becomes the subject of the formula.
Finally, we will apply the formula of inventory turnover, where inventory and inventory turnover were known, cost of goods sold is made the subject of the formula.
Cost of goods sold to a company is $1,813,550. The explanation part is attached in the form of image for better understanding.
What is inventory turnover?The inventory turnover ratio determines how often inventory is sold and replaced over a predetermined period of time. Inventory turnover ratio is Average Inventory divided by Cost of Goods Sold.
Inventory turnover measures the frequency with which a company's stock is changed in relation to its cost of sales. A higher ratio is preferred in general. Slow sales or overstocking may be indicated by a low inventory turnover ratio it is also known as surplus inventory.
The average yearly inventory is essentially inventory turnover. It shows how frequently the business has sold stock over a given period of time. This figure is significant since it allows businesses to plan their next financial activities.
Thus, it is $1,813,550.
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Howard Cooper, the president of Glacier Computer Services, needs your help. He wonders about the potential effects on the firm’s net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal year 2019: Standard rate and variable costs Service rate per hour $ 60.00 Labor cost 32.00 Overhead cost 5.76 Selling, general, and administrative cost 3.44 Expected fixed costs Facility maintenance $ 320,000 Selling, general, and administrative 120,000 Required Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 30,000 hours of services in 2019. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant’s analysis, if Glacier charges customers $56 per hour, the firm can achieve 38,000 hours of services. Prepare a flexible budget using the consultant’s assumption. The same consultant also suggests that if the firm raises its rate to $64 per hour, the number of service hours will decline to 25,000. Prepare a flexible budget using the new assumption.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Final answer:
A pro forma income statement and two flexible budgets were prepared for Glacier Computer Services based on different service rates and expected service hours. The highest net income is achieved at a rate of $64 per hour with 25,000 service hours. Lowering the rate to $56 per hour for 38,000 service hours results in a lower net income.
Explanation:
Howard Cooper, president of Glacier Computer Services, wishes to understand how fluctuations in the service rate might affect the company’s net income. We need to prepare pro forma and flexible budgets based on differing service rates and projected service hours. To begin, we will create a master budget's pro forma income statement for the initial expectation of 30,000 service hours at a $60.00 rate per hour.
Master Budget (Initial):
Revenue: $60.00/hour × 30,000 hours = $1,800,000
Variable Costs (Labor + Overhead + SG&A): ($32.00 + $5.76 + $3.44)/hour × 30,000 hours = $1,236,000
Fixed Costs (Facility + SG&A): $320,000 + $120,000 = $440,000
Net Income: Revenue – Variable Costs – Fixed Costs = $1,800,000 – $1,236,000 – $440,000 = $124,000
Next, we'll prepare flexible budgets considering the consultant’s suggestions:
Flexible Budget (Service Rate $56/hour, 38,000 hours):
Revenue: $56.00 × 38,000 = $2,128,000
Variable Costs: ($32.00 + $5.76 + $3.44) × 38,000 = $1,578,880
Net Income: $2,128,000 – $1,578,880 – $440,000 = $109,120
Flexible Budget (Service Rate $64/hour, 25,000 hours):
Revenue: $64.00 × 25,000 = $1,600,000
Variable Costs: ($32.00 + $5.76 + $3.44) × 25,000 = $1,030,000
Net Income: $1,600,000 – $1,030,000 – $440,000 = $130,000
Comparing the net incomes of all budgets, raising the price to $64/hour for fewer hours results in a higher net income compared to the original master budget, while reducing the price to $56/hour leads to a decrease in net income despite more service hours.
Describe two of the four approaches to ethical reasoning. Please include an example of each. Your example could be one that you observed or experienced during your life or an original idea.
Explanation:
1- Virtue Ethics: It can be described as an ethical approach that prioritizes the subjective and instinctive virtues shared by all human beings regardless of cultural traits. Emphasizes generosity, faithfulness, the sense of human generosity, character, and virtues coming from the mind.
An example of the ethical theory of virtue is an unknown person who needs some help and approaches another person who is readily available to help.
2- Duty-based ethics: It is ethics based on human rationality to exercise principles and ethical duty, regardless of positive or negative consequences for oneself.
An example of this ethical theory is entrepreneurs who use some strategies to achieve operational goals, but are aware that they must take responsibility not to exceed ethical values even if it is for the good of the business.
Efrain owns 1,000 shares of RJ Inc. common stock which he purchased three years ago for $36,000. Efrain sells the 1,000 shares on October 15, 2018, for $10,000 On November 12, he purchases 400 shares of RJ Inc. preferred stock for $8,000. Efrain's recognized loss on the sale of the 1,000 shares will be A. $26,000. B. $10,400 O C. $15,600. O D. $0.
Answer:
option (A) $26,000
Explanation:
Data provided in the question:
Number of shares owned = 1,000
Cost of stocks 3 years ago = $36,000
Number of shares sold = 1,000
Selling value = $10,000
Now,
Loss on sale of 1000 Shares = Sale value - Purchase value
or
Loss on sale of 1000 Shares = $36,000 - $10,000
or
Loss on sale of 1000 Shares = $26,000
Hence,
answer is option (A) $26,000
One way in which philanthropy can be made strategic is to
a.consult with a tax professional to get the maximum deductions.
b.bring contribution programs into sharper alignment with business endeavors.
c.distribute contributions as widely as possible.
d.eliminate contributions to inefficient non-profit organizations.
Answer:
d. Eliminate contributions to inefficient non-profit organizations
Explanation:
Other listed options are valuable to the question on strategic philanthropy except that on the need to eliminate contributions to inefficient non-profit organizations. No philanthropist would want to offer support to non-profit organizations that are unproductive and inefficient.
Munchery provides an alternative to standard food delivery with its high-quality meals created by talented chefs. As the company grew, it discovered the need for a robust system to capture new and repeat customer information. That system helped the company identify customers' food needs and wants.. After implementing a CRM system, Munchery discovered that not only did the system provide management and relationship-building capabilities, but it also met a third overall business goal. What was that third CRM system goal?
The third goal Munchery achieved through implementing a CRM system was the capability to analyze customer data for strategic decision making and product development. This data provided insight into customer trends, habits and preferences, helping the company devise effective business strategies and new product offerings.
Explanation:The Customer Relationship Management (CRM) system Munchery adopted aimed to accomplish three major goals: capturing customer information, facilitating relationship management, and a third goal which was to analyze customer behavior for strategic decision-making and product development. The data captured by the CRM system allowed Munchery to analyze trends, preferences, and eating habits across their customer base. This information directly fed their strategic decision making and influenced the development of new dishes and meal plans. Hence, the third overarching goal achieved by implementing the CRM system was leveraging valuable customer data to guide business strategy and future product offerings.
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Laurel, Inc., has debt outstanding with a coupon rate of 5.9 % and a yield to maturity of 7.1 %. Its tax rate is 40 %. What is Laurel's effective (after-tax) cost of debt? NOTE: Assume that the debt has annual coupons. Note: Assume that the firm will always be able to utilize its full interest tax shield.
Answer:
4.26%
Explanation:
The computation of the Laurel's effective (after-tax) cost of debt is shown below:
= Cost of debt × (1 - tax rate)
= 7.1% × (1 - 0.40)
= 4.26%
The cost of debt is also known as the yield to maturity.
For computing it, we deduct the tax rate from the cost of debt so that the accurate rate can come
All other information which is given is not relevant. Hence, ignored it
Firm X has declared a stock dividend that pays one share of stock for every five shares owned. After the stock dividend, earnings per share will:_________a. Remain the same.b. Decline 20%.c. Decline 5%.d. Not enough information.
Answer:
Option (b) Decline 20%
Explanation:
Data provided in the question:
Firm X has declared a stock dividend that pays one share of stock for every five shares owned
Therefore,
The increase in number of shares
= [ 1 ÷ 5 ] × 100%
= 20%
Thus,
The earnings per share will decrease by the amount of increase in number of shares i.e decrease by 20%
Hence,
Option (b) Decline 20%
A partnership agreement provides that, at sale, cash proceeds are distributed first to Ms. Jones in an amount equal to her original investment less any cash distributions previously received, then split 60%-40% between Ms. Jones and Mr. Smith, respectively. Assume that the cash flows from sale are $1 million. How much would Ms. Jones receive if her initial investment was $600,000 and she previously received $100,000 in distributions
Answer:
$800,000
Explanation:
The total amount received by Ms. Jones (A) is given by the following expression:
[tex]A = I-D + (S-(I-D))*0.6[/tex]
Where 'I' is Ms. Jones initial investment, 'D' are cash distributions previously received and 'S' is the cash flow from sales.
The amount received by Ms. Jones is:
[tex]A = 600,000-100,000 + (1,000,000-(600,000-100,000))*0.6\\A= 800,000[/tex]
She would receive $800,000.
On January 1, 2016, Randolf Company signed a contract to have Rory Associates construct a manufacturing facility at a cost of $14,000,000. It was estimated that it would take three years to complete the project. Also on January 1, 2016, to finance the construction cost, Randolf borrowed $14,000,000 payable in seven annual installments of $2,000,000 plus interest at the rate of 9%. During 2016, Randolf made progress payments totaling $5,000,000 under the contract, and the average amount of accumulated expenditures was $3,000,000 for the year. The excess borrowed funds were invested in short-term securities, from which Randolf realized investment income of $330,000. What amount should Randolf report as capitalized interest at December 31, 2016?
Answer:
$270000
Explanation:
Actual interest = 14.000.000*9%=1.260.000 Avoidable interest=Weighted average accumulated expenditure*interest rate = 3.000.000*9%=270.000 Interest to be capitalized=Lower of actual interest or avoidable interest=Lower of 1.260.000 or 270.000=270.000
Answer is $270000
McCann Co. has identified an investment project with the following cash flows.
Col1 Year 1 2 3 4
Col2 Cash Flow $ 530 690 875 1,090
a. If the discount rate is 10 percent, what is the present value of these cash flows
b. What is the present value at 18 percent? (Do not round intermediate calculations
c. What is the present value at 24 percent? (Do not round intermediate calculations e.g., 32.16.) and round your answer to 2 decimal places,
Answer:
Explanation:
Cash flow is 530 , 690 , 875 and 1090 in 1st to 4 th year respectively
discount rate = 10 %
NPV = 530/ 1.10 + 690 / (1.10)² + 875/(1.10)³ + 1090/ (1.10)⁴
= (530x1.10³ + 690 x 1.10² + 875x 1.10 + 1090)/ 1.10⁴
= (705.43 x +834.9 +962.5 +1090)1.10⁴
= 3592.83 / 1.10⁴
= 2453.95
Discount rate 18%
NPV = 530/ 1.18 + 690 / (1.18)² + 875/(1.18)³ + 1090/ (1.18)⁴
= (530x1.18³ + 690 x 1.18² + 875x 1.18 + 1090)/ 1.18⁴
= (870.80696 +960.756 +1032.5 +1090)1.18⁴
= 2039.46
Discount rate 24%
NPV = 530/ 1.24 + 690 / (1.24)² + 875/(1.24)³ + 1090/ (1.24)⁴
= (530x1.24³ + 690 x 1.24² + 875x 1.24 + 1090)/ 1.24⁴
1010.51072+ 1060.944+1085+1090 / 1.24⁴
= 1796.14
Explain how leveraging an IS solution can help Soliel Panel Distribution achieve operational efficiency.
Answer:
efficiency is the main concern for Soliel Panel Distribution. Integrating technology into its operations will enhance internal efficiencies and service delivery. As the organization grows, change is inevitable (Have & Have, 2017). With the crises the company is going through, the IT department should consider incorporating business process management (BPM), while developing SolDistHR. BPM gives an opportunity to look and control organizational processes. Effective implementation of BPM requires organizing the outcomes to ensure proper focus on the goals, correcting and enhancing processes before automation, standardizing processes, enabling continuous change, and improving the existing processes.
As the business grows, it brings new challenges, which make it critical to ensure effective change management. The IT teams should first understand the prevailing status quo within the organization. Creation of a compelling vision of the future is the second stage. The second stage requires the participation of each employee to guarantee smooth organizational operation. In the third stage, building a change coalition, the IT team ensure that they buy the rational for change and be part of the change. In step four, the team mobilizes its commitment and ensuring that there is adequate support for the change. The final stage is evaluation of programs to ensure everything is in order.
The IT team should include finance manager responsible for budgeting and forecasting project activities. Two IT professionals responsible for designing the program to ensure it meets the needed specifications and developing software compatible with other programs. Legal officer ensures that all contractual obligations are met and overseeing all the copyright issues.
Final answer:
Leveraging an IS solution helps Soliel Panel Distribution improve operational efficiency via reduced unit costs, flexible service structures, improved workflow, and enhanced communication. It enables strategic group purchasing and ensures technology deployment is value-driven. These benefits culminate in increased productivity, profitability, and customer satisfaction.
Explanation:
Leveraging an Information System (IS) solution can significantly enhance Soliel Panel Distribution's operational efficiency in numerous ways. By leveraging new technology, Soliel Panel Distribution can drive down unit costs through automation and improved efficiency in production and distribution processes. This results in increased productivity and quality, substantial cost savings, and an edge in competitive pricing.
Furthermore, the ability to re-centralize or decentralize services allows the company to optimize its operational structure based on current needs and market conditions. This flexibility can lead to improved service quality and faster response times, adapting to customer demands efficiently. The use of an IS solution can greatly improve workflow planning and efficiency by streamlining processes, leading to enhanced performance and customer satisfaction.
The concept of group purchasing within an IS framework can be used to negotiate better deals and lower prices for bulk purchases, which in turn increases the company's profitability. Moreover, IS can improve communications and information flow within the organization and with external stakeholders, thus fostering problem-solving and relationship-building.
Finally, ensuring coordinated efforts between IT specialists and operations staff reflects the importance of extracting the most value from deploying Management and Automation Systems (MAS). By being solution-oriented and implementing changes based on scientific analysis of problems, Soliel Panel Distribution can meet customer needs more effectively, thereby increasing the share of the market (SOM) and profitability.
All of the five elements of manufacturing contribute to the cost of production. Which one of the following is NOT one of the 5Ms?
A. Methods
B. Mandates
C. Measurement
D. Machinery
Answer:
Mandates, Option B is not a part of 5Ms.
Explanation:
The cost of production is the total sum of money spent as the cost of the resources that went into making the final product. This cost can include different factors of production.
They would include labor (Man), capital (Money), Materials that are processed or assembles to make the final product, Machinery (which actually helps creating the product), Measurement or Method (Each product follows a process or a method for completion). These are the 5Ms of cost of production. So, the M that is not a part of this is Mandates, option B.
On January 1, Whispering Winds Corp. had 62,600 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred.
Apr. 1 Issued 16,650 additional shares of common stock for $13 per share.
June 15 Declared a cash dividend of $1.55 per share to stockholders of record on June 30.
July 10 Paid the $1.55 cash dividend.
Dec. 1 Issued 7,400 additional shares of common stock for $11 per share.
Dec. 15 Declared a cash dividend on outstanding shares of $1.65 per share to stockholders of record on December 31.
Required:
Prepare the entries, if any, on each of the three dates that involved dividends.
Answer:
Explanation:
The journal entries are shown below:
1. Cash Dividend A/c Dr $122,838 (62,600 + 16,650) × $1.55
To Dividend payable A/c $122,838
(Being the dividend is declared)
2. Dividend payable A/c $122,838
To Cash A/c $122,838
(Being the dividend is paid)
3. Cash Dividend A/c Dr $142,97 (62,600 + 16,650 + 7,400) × $1.65
To Dividend payable A/c $142,973
(Bring dividend is recorded)
Suppose we are interested in bidding on a piece of land and we know one other bidder is interested. The seller announced that the highest bid in excess of $10,000 will be accepted. Assume that the competitor's bid x is a random variable that is uniformly distributed between $10,000 and $15,000.
(a) Suppose you bid $12,000. What is the probability that your bid will be accepted? If required, round your answer to two decimal places.
(b) Suppose you bid $14,000. What is the probability that your bid will be accepted? If required, round your answer to two decimal places.
(c) What amount should you bid to maximize the probability that you get the property?
Answer:
Explanation:
f(x) = (1/(15,000-10,000))/0 (elsewhere) = 1/5000
a. What is the probability that a $12,000 bid will be accepted?
P(10,000 < x < 12,000) = 2000(1/5000) = 0.40
b. What is the probability that a $14,000 bid will be accepted?
P(10,000 < x < 14,000) = 4000(1/5000) = 0.80
c. What amount should you bid to maximize the probability that you get the property?
$14,000 is my answer.
$14000 bid has a higher probability, hence a greater chance of being accepted
The probability that a $12,000 bid will be accepted is 40%, while a $14,000 bid has an 80% chance of being accepted. To maximize the probability of securing the property, one should bid just over $15,000.
Explanation:When considering the probability that a bid for a piece of land will be accepted, we assume the competitor's bid is uniformly distributed between $10,000 and $15,000. For the bid to be accepted, it must be higher than the competitor's bid, x.
(a)If you bid $12,000, the probability that this bid exceeds the competitor's bid is the portion of the uniform distribution from $10,000 to $12,000. Since the competitor's bids are uniformly distributed, it's a simple linear calculation: the probability is ($12,000 - $10,000) / ($15,000 - $10,000) = $2,000 / $5,000 = 0.4 or 40%.
(b) If you bid $14,000, we apply the same principle. The probability your bid will be accepted is ($14,000 - $10,000) / ($15,000 - $10,000) = $4,000 / $5,000 = 0.8 or 80%.
(c) To maximize the probability of getting the property, you should bid slightly more than the maximum of the competitor's bid range, which is slightly more than $15,000.
What is the preferred method of controlling environmentally hazardous materials during manufacturing, operations, and disposal?
A. Source reduction or elimination is the most highly preferred control strategy.
B. Treatment of hazardous wastes is preferred over recycling because of lower manufacturing costs.
C. Disposal is the preferred method because of new technologies and improved landfill processes.
D. Recycling is preferred over source reduction because reuse of hazardous substances costs less than substituting alternate processes.
Answer:
b,
Explanation:
treatment of hazardous waste is preferred to the other options, in a sense they all have side effect. But if waste are treated it reduces the rate of pollution.
The most preferable method to control environmentally hazardous materials is source reduction or elimination, which involves changing manufacturing processes to produce less or no hazardous materials.
The preferred method for controlling environmentally hazardous materials during manufacturing, operations, and disposal is source reduction or elimination. This control strategy is higher on the environmental hierarchy than treatment, recycling, and disposal. While these other methods can also help to mitigate the impact of hazardous materials on the environment, they are less preferable because they do not eliminate the problem at its root. Source reduction involves altering the manufacturing process to lower or eliminate the production of hazardous materials, thereby preventing environmental harm before it begins.
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Planning for acquisition support activities and requirements that deal with fielding/deployment should begin as early as the: [Identify life cycle product support activities and requirements that deal with fielding/deployment (e.g., planning, coordination, organizing deployment teams, materiel release).]
A. Materiel Solution Analysis Phase
B. Engineering and Manufacturing Development Phase
C. Operations and Support Phase
D. Production and Deployment Phase
Option A, Materiel Solution Analysis Phase
Explanation:
The equipment answer Analysis part assesses potential solutions for a required capability in associate Initial Capabilities Document (ICD) and to satisfy the phase-specific Entrance Criteria for ensuing program milestone selected by the Milestone call Authority.
The MSA phase is critical to program fulfilment and attaining materiel readiness because it’s the first possibility to persuade systems sup-portability and affordability by using balancing technology opportunities with operational and sustainment requirements. During this phase, various options are analysed to select the materiel solution and broaden the Technology Development Strategy (TDS) to fill any era gaps.
Your college is considering renting space in the student union to one or two commercial textbook stores. The rent the college can charge per square foot of space depends on the profit (before rent) of the firms and hence on whether there is a monopoly or a duopoly. Which number of stores is better for the college in terms of rent? Which is better for students? Why?
Answer and explanation:
In both cases, in terms of rent and terms of students benefits, it will be better for the college to have two stores, In that way, the college makes sure the profits will be higher than just by having one store on campus and students are benefited because of the variety of books they could find in the two stores, not just in one.
Cobe Company has already manufactured 17,000 units of Product A at a cost of $25 per unit. The 17,000 units can be sold at this stage for $450,000. Alternatively, the units can be further processed at a $280,000 total additional cost and be converted into 5,800 units of Product B and 11,100 units of Product C. Per unit selling price for Product B is $100 and for Product C is $56.
Answer:
It is more convenient to continue processing.
Explanation:
Giving the following information:
Cobe Company has already manufactured 17,000 units of Product A for $25 per unit. The 17,000 units can be sold at this stage for $450,000. Alternatively, the units can be further processed at a $280,000 total additional cost and be converted into 5,800 units of Product B and 11,100 units of Product C. Per unit selling price for Product B is $100 and for Product C is $56.
We need to determine whether it is more convenient to sell the units now, or continue processing.
Sell now:
Income= 450,000 - (17,000*25)= $25,000
Continue processing:
Income= sales produc B + sales product C - joint cost - Product A cost
Income= 5,800*100 + 11,100*56 - 280,000 - (17,000*25)= $496,600
It is more convenient to continue processing.
Which of the following statements about the advertising-to-sales ratio approach to budgeting for marketing communications is TRUEa. It is reliable because it does not vary dramatically across product categories. b. It can be calculated easily without having to analyze customers, competitors, and other contextual factors. c. It is easy to use because revenue projections can be made without considering marketing support. d. It relies on projections of revenue and expenses. e. All of the answers are correct
Answer:
The correct answer is letter "D": It relies on projections of revenue and expenses.
Explanation:
The advertising-to-sales ratio is a numeric value indicating how good the publishing strategies of a firm are. According to this approach, having a low ratio is considered optimal because it implies the advertisement helped increase the number of sales exponentially compared to the investment made. In other words, the ratio measures if the publication was successful in terms of revenues over expenses.
The correct statement that is made about the advertising-to-sales ratio approach is that It relies on projections of revenue and expenses.
What is the advertising-to-sales ratio approach?This is done in order to show if the resources that a firm uses for its advertising has helped them have more sales and the extent to which the sales have been generated.
To get this, the cost of advertising has to be divided by the sales revenue.
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Cordelia is an employee of Snaktyme Foods in Missouri. She earns $24,000 annually. Snaktyme has provided uniforms worth $350 and training worth $850 as part of her employment. She contributes 4% to her 401(k), of which her employer matches half. Cordelia's employer pays the following monthly amounts toward her insurance: health, $125; life, $50; AD&D, $30.
Snaktyme Foods pays employer-only taxes and insurance that comprises an additional 14% of Cordelia's annual salary.
What is Cordelia's total annual compensation?A.$28,000B.$31,500C.$29,260D.$29,900
Answer:
option (B) 31,500
Explanation:
Data provided in the question:
Annual earning = $24,000
Worth of uniform = $350
Training worth = $850
Contribution to 401(k) = half of 4% of earning
= 0.5 × 0.04 × $24,000
= $480
monthly amounts toward her insurance:
health = $125
Life = $50
AD&D = $30
Total annual amounts toward her insurance = 12 × [ $125 + $50 +$30 ]
= 12 × 205
= $2,460
Therefore,
Employer taxes and insurance = 14% of $24,000
= $3,360
Therefore,
Cordelia's total annual compensation
= $24,000 + $350 + $850 + $480 + $2,460 + $3,360
= $31,500
Hence,
Answer is option (B) 31,500
Which 2 of the statements below are correct about using the client details and dashboard screens of QuickBooks Online Accountant and working with client company files?
a. You can import QuickBooks Online Trial Balance data into ProConnect Tax Online to prepare tax returns via the client dashboard.
b. You can start a new tax return from the client dashboard for non QuickBooks Online clients or clients that are using QuickBooks Online.
The correct statements about using the client details and dashboard screens of QuickBooks Online Accountant and working with client company files are explained.
Explanation:The correct statements about using the client details and dashboard screens of QuickBooks Online Accountant and working with client company files are:
You can import QuickBooks Online Trial Balance data into ProConnect Tax Online to prepare tax returns via the client dashboard. This feature allows you to easily transfer financial data between QuickBooks and ProConnect for tax preparation purposes.You can start a new tax return from the client dashboard for non-QuickBooks Online clients or clients that are using QuickBooks Online. This option allows you to create tax returns for clients who do not use QuickBooks Online or for those who use a different version of QuickBooks.Learn more about Working with QuickBooks Online Accountant here:https://brainly.com/question/30113117
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A strategic business unit (SBU): Question 4 options: competes with the same companies as the other SBUs in the parent organization shares the same mission with all the other SBUs in the parent organization controls its business independent of other SBUs in the organization usually benefits from the combined corporate raw materials purchases still has strategic planning performed back at corporate headquarters
Answer:
The correct answer is letter "C": controls its business independent of other SBUs in the organization.
Explanation:
A Strategic Business Unit or SBU is a division of a larger company that is managed by itself, having its own vision, mission, and goals. Even if the SBU is an independent unit of the business that has its own competitors, it is an important part of the whole company.
The Equal Employment Opportunity Act requires employers to classify their employees by gender and national origin. Which level of measurement is this? Select one:
a. Nominal
b. Ordinal
c. Interval
d. Ratio
The classification required by the Equal Employment Opportunity Act exemplifies the Nominal level of measurement. This is because these classifications simply provide labels for different categories without establishing an order or hierarchy among them.The correct option is A
Explanation:The classification of employees by gender and national origin as required by the Equal Employment Opportunity Act represents a Nominal level of measurement.
This is because the nominal level of measurement is characterized by data that can be categorized into groups with no order or priority. Here, categories such as 'gender' and 'national origin' are simply labels that distinguish groups without providing a hierarchy or quantifiable difference between these groups.
In the case of other options: Ordinal measurement involves categories with some order (like rankings); Interval measurement entails known and equal differences between values with no fixed zero point; and Ratio measurement has all characteristics of interval measurement but with a fixed zero point
Therefore, based on these definitions, we can ascertain that the level of measurement in this case is nominal.The Correct option is A.
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As of December 31, 2016, Nala Incorporated reported accounts receivable for $275,000 less allowance for doubtful accounts of $27,000 on their balance sheet. During 2017, Nala Incorporated had the following transactions related to their receivables balance:
(1) Sales on account $180,000
(2) Collections of accounts receivable 125,000
(3) Sales returns 20,000
(4) Write-offs of accounts receivable deemed uncollectible 35,000
(5) Recovery of bad debts previously written off 2,500
(a) Prepare the journal entries for each of these five transactions
(b) Prepare the journal entry to record bad debt expense for 2017, assuming that the aging of accounts receivable indicates that estimated bad debts are 10% of accounts receivable.
Answer:
a. 1. Debit Accounts receivable $180,000
Credit Sales $180,000
2. Debit cash $125,000
Credit Accounts receivable $125,000
3. Debit Sales return $20,000
Credit $20,000
4. Debit Provision for bad debts expense $35,000
Credit Accounts receivable $35,000
5. Debit Accounts receivable $ $2,500
Credit Provision for bad debts expense $2,500
Debit Cash $2,500
Credit Accounts receivable $2,500
B. Debit Bad debts expense $27,500
Credit provision for bad debt expense $27,500
Explanation:
1. Sale on account will increase the accounts receivable. So we have to debit accounts receivable and credit to sales in the amount of $180,000
2. Collections will decrease the accounts receivable due payments made by the customer. So we have to debit cash and credit accounts receivable by $125,000
3. Sales return is a contra asset account that will decrease the accounts receivable and also the net sales. So we will debit sales return and credit accounts receivable in the amount of $20,000
4. Write offs will decrease the provision for bad debts account as well as the accounts receivable accounts by $35,000
5. Recovery of bad debts previously written off has no effect in accounts receivable but will increase the provision for bad debts due to reversal of entry previously made. First, we will reverse the original written off entry. Debit Accounts receivable and credit provision for bad debts expense in the amount of $2,500. Then we will record the collection by debiting cash and crediting accounts receivable in the amount of $2,500
B. Let’s determine the balance of accounts receivable first,
Beg. $275,000 + 180,000 sale on account - 125,000 collection - 20,000 sales return - 35,000 write-off = $275,000
Therefore, $275,000 x 10% = $27,500
Entry:
Debit Bad debts expense $27,500
Credit provision for bad debts expense $27,500
Suppose the reserve requirement is currently 20%. Instructions: Enter your answers as a whole number.
a. Assume Second Bank has deposits of $300 million. Calculate the required reserves for Second Bank. $ million.
b. At the end of the day, Second Bank has $65 million of reserves. Will Second Bank be a borrower or lender in the federal funds market
Answer:
Consider the following calculations
Explanation:
a,) required reserves = (20/100) x $300 million = $60 million
b.) Since second bank has reserve of $65 million but needed only $60 million so the bank can LEND reserves of $5 million in the federal funds market.
Suppose Autodesk stock has a beta of 2.20, whereas Costco stock has a beta of 0.68. If the risk-free interest rate is 6 % and the expected return of the market portfolio is 14.0 %, what is the expected return of a portfolio that consists of 70 % Autodesk stock and 30 % Costco stock, according to the CAPM?
Answer:
19.952%
Explanation:
For computing the expected rate of return, first we have to determine the beta which is shown below:
= Stock Auto desk weightage × stock Auto desk beta + Stock Costco weightage × stock Costco beta
= 0.70 × 2.20+ 0.30 × 0.68
= 1.54 + 0.204
= 1.744
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 6% + 1.744 × (14% - 6%)
= 6% + 1.744 × 8%
= 6% + 13.952%
= 19.952%
Final answer:
The expected return of a portfolio consisting of 70% Autodesk stock and 30% Costco stock, calculated using the CAPM model, is 19.172%.
Explanation:
The question involves calculating the expected return of a portfolio using the Capital Asset Pricing Model (CAPM). CAPM formula is given by E(Ri) = Rƒ + β(E(Rm) – Rƒ), where E(Ri) is the expected return of investment i, Rƒ is the risk-free rate, β is the beta of the investment, and E(Rm) is the expected return of the market. Given that the risk-free rate is 6%, the expected return of the market is 14%, Autodesk stock has a beta of 2.20, Costco stock has a beta of 0.68, and the portfolio consists of 70% Autodesk and 30% Costco, we calculate:
Expected return for Autodesk stock = 6% + 2.20(14% – 6%) = 23.6%
Expected return for Costco stock = 6% + 0.68(14% – 6%) = 11.44%
Expected return for the portfolio = 70% * 23.6% + 30% * 11.44% = 19.172%
Therefore, according to CAPM, the expected return of the portfolio is 19.172%.
Fuller Company builds swimming pools. Fuller budgets that they will sell 12 pools during the month of April at a price of $20,176 per pool. Actual pools sold by Fuller during April were 16 pools at a price of $20,992 per pool. What is the Sales Volume Variance for April? If the variance is unfavorable, use a negative sign right before the number with no space in between.
Answer:
$80,704
Explanation:
Data provided in the question:
Budgeted Price = $20,176 per pool
Budgeted quantity = 12 pools
Actual quantity = 16 pools
Actual price = $20,992 per pool
Now,
Sales Volume Variance
= ( Actual Quantity - Budgeted Quantity) × Budgeted price
Thus,
Sales Volume Variance for April = ( 16 - 12 ) × $20,176
or
Sales Volume Variance for April = $80,704
Final answer:
The Sales Volume Variance for April is $80,704.
Explanation:
To calculate the Sales Volume Variance, you need to compare the budgeted sales volume with the actual sales volume.
The formula for Sales Volume Variance is (Actual Quantity - Budgeted Quantity) x Budgeted Price.
In this case, the budgeted quantity is 12 pools and the actual quantity is 16 pools, while the budgeted price is $20,176 per pool.
Therefore, the Sales Volume Variance for April is -
= (16 - 12) x $20,176
= $80,704.