Answer:
The Expected time a customer spends in the system is 4
Explanation:
According to the given data we have the following:
Arrival rate A = 1 every other minute = 30/hour or (30/60) per minute
Service rate S = 84 seconds = 60×60/84= 42.86 customers per hour
System utilization factor P = A/S = 30/42.86 = 0.699
Length of the system L = P/(1-P) = 0.699/(1-0.699) = 2.322
Therefore, Expected time a customer spends in the system = L/A = 2.322/(30/60) = 4.644=4
You are a financial analyst for Ford Motor Company and have been asked to determine the impact of alternative depreciation methods. For your analysis, you have been asked to compare methods based on a machine that cost $106,000. The estimated useful life is 13 years and the estimated residual value is $2,000. The machine has an estimated useful life in productive output of 200,000 units. Actual output was 20,000 in Year 1 and 16,000 in Year 2. Required: 1. For years 1 and 2 only, prepare separate depreciation schedules assuming: (Do not round intermediate calculations and round your final answers to the nearest dollar amount.) a. Straight-line method.
Answer: Please refer to Explanation
Explanation:
a) Straight-line method.
For a straight line method, the depreciation is constant for all years and so is calculated as
Depreciation per year = (106,000 - 2,000) / 13 = 8,000 per year
That means both years 1 and 2 both have $8,000 as their Depreciation amounts.
The depreciation schedule has been attached to this answer.
b) Units of Production Method
Here we use the estimated useful life in productive output to find out how to depreciate machine.
The formula is,
Depreciation per unit = (106,000 - 2,000) / 200,000 = 0.52
That 0.52 is then used to depreciate per year in the following manner,
Year 1 = 20,000 x 0.52
= $10,400
Year 2 = 16,000 x 0.52
= $8,320
I have attached the schedule as well.
c) Double Declining Balance Method
This is an accelerated depreciation method that gets it's name because it goes at twice the rate of the Straight line method.
It is calculated by the following formula,
Depreciation rate = (1/13) x 2
= 15.38%
This 15.38% is then deducted from the balance per year.
Year 1 = 106,000 * 15.38%
= $16,307.69
Year 2 = (106,000 - 16,307.69) * 15.38%
= $13,798.82
Iverson Company purchased a delivery truck for $45,000 on January 1, 2018. The truck was assigned an estimated useful life of 100,000 miles and has a residual value of $10,000. The truck was driven 18,000 miles in 2018 and 22,000 miles in 2019. Compute depreciation expense using the units-of-activity method for the years 2018 and 2019. Depreciation expense for 2018$ Depreciation expense for 2019
Answer:
Depreciation expense for 2018 is $6,300.
Depreciation expense for 2019 is $7,700.
Explanation:
The unit-of-production method also known as units-of-activity method is used when the asset value closely relates to the units of output it is able to produce. It is expressed with the formula below:
(Original Cost - Salvage value) / Estimated production capacity x Units/year
At Year 2018, depreciation expense (DE) is: ($45,000 - $10,000) / 100,000 miles x 18,000 miles = $6,300/year
At Year 2019, depreciation expense (DE) is: ($45,000 - $10,000) / 100,000 miles x 22,000 miles = $7,700/year
Accumulated depreciation for 2 years is $6,300 + $7,700 = $14,000.
Note that this depreciation method results in higher depreciation charge when the asset is heavily used, at this time, it was in Year 2019.
The NBV under this method is: $45,000 - $14,000 = $31,000.
Quantitatively, how important is international trade to the United States relative to the importance of trade to other nations? What country is the United States’ most important trading partner, quantitatively? With what country does the United States have the largest trade deficit?
Answer:
Quantitatively, the significance of trade to the U.S is extra than it is for the other nations. The United states has the very best collective size of trades (imports and exports). It is also third in price of exports listed, next to China and European nation. The U.S most significant commerce companion, in relations of facts, is Canada. Virtually 20% of exported product from the America were to Canada in 2009, and 15% of imported product came from Canada during the year. The America has the most important deficit with China. A deficit happens once the worth of imports surpass the importance of exports. In 2009, the America had a $220 billion deficit with China.Standard variable overhead rate $2 per machine hour Standard fixed overhead rate $1 per machine hour Actual variable overhead costs $390,000 Actual fixed overhead costs $175,000 Budgeted fixed overhead costs $190,000 Standard machine hours per unit produced 10 Good units produced 18,000 Actual machine hours 200,000 Using the above information provided for Underfoot Products, compute the fixed overhead budget variance.
Answer:
Fixed overhead budget variance = $15,000 favorable
Explanation:
The fixed overhead budget variance is the difference between the budgeted fixed overhead expenditure and the actual fixed overhead for a given period of time.
Where the actual amount of expenditure exceeds the budgeted it is unfavorable variance, a favorable variance implies the opposite.
$
Budgeted fixed overhead 190,000
Actual fixed overhead 175,000
Budget Variance 15,000 favorable
Fixed overhead budget variance = $15,000 favorable
Big Boy Burgers (BBB) is an American fast food restaurant chain that has franchises around the world. Recently, BBB managers have been concerned about protecting the firm’s intellectual property, which includes the recipes for its unique burger sauces and specialty burger buns. Although BBB has never experienced a theft of intellectual property, the firm’s managers feel BBB should be more cautious. Managers are meeting with security and legal experts to discuss the options available to the firm which would protect BBB from future international problems.Which of the following questions would be more important for the experts to evaluate when determining how to ensure intellectual property protection for Big Boy Burgers?A) What should be the penalties for theft of the recipes for their unique burger sauces and specialty burger buns?B) Is BBB partnering with ethical franchisees that have no intention of becoming BBB competitors in the future?
C) What are the commonly counterfeited goods in the market?
D) How are BBB franchisees modifying recipes and menus to meet the needs and desires of customers in local markets?
Answer:
B) Is BBB partnering with ethical franchisees that have no intention of becoming BBB competitors in the future?
Explanation:
The question that "Is BBB partnering with ethical franchisees that have no intention of becoming BBB competitors in the future?" would be more important for the experts to evaluate when determining how to ensure intellectual property protection for Big Boy Burgers.
The managers and experts at BBB should ensure they are in partnership with ethical franchisees in order to protect the firm’s intellectual property, which includes the recipes for its unique burger sauces and specialty burger buns.
An unethical franchise would be much more concerned with gaining access to their business plans and strategies, so as to compete with them or even go as far as pushing them out of the fast food business.
The accountant for Mandarin Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $ 1,029,000 Net income for the year 335,000 Cash dividends declared for the year 63,000 Retained earnings balance at the end of the year 1,637,000 Cash dividends payable at the beginning of the year 14,200 Cash dividends payable at the end of the year 17,300 What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows
Answer:
$59,900
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
The movement in the dividend payable account may be expressed mathematically as
Opening balance + Dividend declared - Dividend paid = Closing balance
$14,200 + $63,000 - Dividend paid = $17,300
Dividend paid
= $14,200 + $63,000 - $17,300
= $59,900
Answer:
$59,900
Explanation:
Base on the scenario been described in the question, we can use the following method to solve the given problem
The movement in the dividend payable account is given as
Opening balance + Dividend declared - Dividend paid = Closing balance
Substituting the values we have
$14,200 + $63,000 - Dividend paid = $17,300
Making dividend paid the subject of formula we have
Dividend = $14,200 + $63,000 - $17,300
Dividend paid = $59,900
As the answer
A partnership has the following capital balances: Allen, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,000 Burns, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 Costello, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000 Profits and losses are split as follows: Allen (20 percent), Burns (30 percent), and Costello (50 percent). Costello wants to leave the partnership and is paid $100,000 from the business based on provisions in the articles of partnership. If the partnership uses the bonus method, what is the balance of Burns’s capital account after Costello withdraws?
Answer:
$24,000
Explanation:
Allen, Capital $60,000 (20% profits)
Burns, Capital $30,000 (30% profits)
Costello, Capital $90,000 (50% profits)
To determine the balance in Burns's account using the bonus method, we must first determine the bonus to be allocated between Burns and Allen:
bonus = amount paid to Costello - Costello's basis = $100,000 - $90,000 = $10,000
now the bonus ($10,000) must be allocated in the same way as profits or losses:
Allen, Capital ⇒ 20% profits
Burns, Capital ⇒ 30% profits
total 50%, so Burns should be allocated 3/5 of the bonus = $10,000 x 3/5 = $6,000
Burns's capital account = original capital balance - allocated bonus = $30,000 - $6,000 = $24,000
When Costello withdraws from the partnership with a payout of $100,000, Burns's capital account is adjusted to $27,000 after accounting for his share of the bonus deduction using the bonus method.
The question revolves around the withdrawal of a partner from a partnership and the use of the bonus method to adjust capital accounts after the withdrawal. The partnership consists of Allen, Burns, and Costello, with capital balances of $60,000, $30,000, and $90,000, respectively. Profits and losses are shared at rates of 20%, 30%, and 50% respectively. When Costello withdraws and receives $100,000, exceeding his capital account balance by $10,000, this excess amount is considered a bonus which is absorbed by the remaining partners based on their profit and loss ratio. Since Burns has a 30% share in profits and losses, he absorbs 30% of the $10,000 bonus, equating to a $3,000 deduction from his capital account. Therefore, after Costello's withdrawal, Burns's capital account is adjusted to $27,000.
Delmar Inc. uses a standard cost system. Labor standards are 2.0 hours per widget at $8.80 per hour. During August, Delmar Inc. paid its workers $147,250 for 16,500 hours. Delmar Inc. produced 8,600 widgets during August. a. Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) b. Calculate the direct labor efficiency variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).)
Answer:
Instructions are below.
Explanation:
Giving the following information:
Labor standards are 2.0 hours per widget at $8.80 per hour.
During August, Delmar Inc. paid its workers $147,250 for 16,500 hours.
Delmar Inc. produced 8,600 widgets during August
To calculate the direct labor rate and efficiency variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (8,600*2 - 16,500)*8.8
Direct labor time (efficiency) variance= (17,200 - 16,500)*8.8
Direct labor time (efficiency) variance= $6,160 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 147,250/16,500= $8.92
Direct labor rate variance= (8.8 - 8.92)16,500
Direct labor rate variance= $1,980 unfavorable
Daily Enterprises is purchasing a $ 10.4 million machine. It will cost $ 48 comma 000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $ 4.2 million per year along with incremental costs of $ 1.1 million per year. Daily's marginal tax rate is 35 %. You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated with the new machine?
Answer:
The free cash flow for year 0 will be $ -10,448,000
The free cash flow for years 1–5 will be $2,746,360
Explanation:
Free Cash Flow for the Year 0
Free Cash Flow for the Year 0 = Cost of the Machine + Transportation + Installation Charges
= -$10,400,000 - $48,000
= -$10,448,000
Free cash flows for the Years 1 – 5
Incremental free cash flows =
[(Annual Sales - Costs) x (1 – Tax Rate)] + [Depreciation x Tax Rate]
= [($4,200,000 - $1,100,000) x (1 – 0.35)] + [($10,448,000 / 5 Years) x 0.35]
= [$3,100,000 x 0.65] + [$2,089,600 x 0.35]
= $2,015,000 + $731,360
= $2,746,360
Therefore the The free cash flow for year 0 will be $ -10,448,000 and the free cash flow for years 1–5 will be $2,746,360
Fallsview Glatt Kosher Caterers ran a business that provided travel packages, including food, entertainment, and lectures on religious subjects, to customers during the Passover holiday at a New York resort. Willie Rosenfeld verbally agreed to pay Fallsview $24,050 for the Passover package for himself and his family. Rosenfeld did not appear at the resort and never paid the money owed. Fallsview sued Rosenfeld for breach of contract. Rosenfeld claimed that the contract was unenforceable because it was not in writing and violated the UCC’s Statute of Frauds. Is the contract valid? Explain.
Answer: The Contract is valid.
Explanation:
Under the UCC’s Statute of Frauds, transactions above $500 for goods cannot be made orally alone and have to be written in writing as well. This is the law that Rosenfield relied on.
However, Fallsview can argue that the Passover Retreat is not a Good, but rather a Service in which case it does not fall under the Statute.
The main bone of contention thereby becomes, if indeed it is a service or a good.
If it is a Hybrid of both, then the Court needs to decide if the services outweigh the goods involved.
From the text we see that the following were included in the package, food, entertainment, and lectures on religious subjects.
Food is the only good there and is outweighed by Entertainment and lectures on religious subjects.
As such, the contract is valid as it is for more service than good.
The contract between Rosenfeld and Fallsview may be valid despite not being in writing. This depends on whether the service package provided by Fallsview is interpreted as a 'sale of goods' under the UCC's Statute of Frauds, which typically requires a written contract. Proof of the agreement by other means could also make the contract enforceable.
Explanation:The contract's validity in this case depends on whether it falls under the Statute of Frauds, which is a part of the Uniform Commercial Code (UCC). The Statute of Frauds requires that certain contracts must be in writing to be enforceable, most commonly those concerning real estate transactions, contracts that cannot be performed within one year, and contracts for the sale of goods over $500. However, there are exceptions such as if the parties have begun performance of the contract, or if there is a specially manufactured good.
In this case, Fallsview Glatt Kosher Caterers were providing a service package, and it can be argued that this does not strictly fall under the sale of goods. Therefore, it might not necessarily need to be in writing according to the UCC. Furthermore, if there is any proof of the verbal agreement such as witnesses, emails, or quotes, this could also make the contract enforceable. So, whether the contract is valid or not ultimately depends on the specific details of the case and how the courts interpret the UCC's Statute of Frauds in relation to this situation.
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hums 202 Which of the following describes a consumer installment loan? A. A loan you get based on the tax refund that you expect to receive. B. A loan that is repaid in equal monthly payments for a specific period of time, usually several years. C. A loan where you have to promise to give the bank your assets if you do not repay the loan. D. A loan for consumer goods where you own the item(s) at the end of the payment period.
Final answer:
A consumer installment loan is repaid in equal monthly payments over a set time frame and can be used for personal expenses. It differs from secured loans like mortgages or auto loans and can be unsecured with no collateral necessary.
Explanation:
A consumer installment loan is best described as a loan where the borrower repays the principal and interest in equal monthly payments over a set period of time. This type of loan can be used to finance various personal expenses such as purchasing a vehicle, appliances, or an education. Unlike some loans that may require collateral (secured loans) like mortgages or auto loans, consumer installment loans can also be unsecured, meaning no collateral is required. When choosing a loan, it's vital to understand the terms, including the payback period, the interest rate, and whether the loan is secured or unsecured.
All of the following are true regarding variance investigation except: a.every variance is investigated. b.managers must consider whether a variance will recur. c.it is difficult to assess the costs and benefits of variance analysis on a case-by-case basis. d.variances are not investigated unless they are large enough to be of concern. e.the investigation should be undertaken only if the anticipated benefits are greater than the expected costs.
Answer:
The option that is not true about variance investigation is A) every variance is investigated.
Explanation:
Every business projection and forecast is made based on speculation. These estimates in theory vary with what is obtainable in practice. Therefore, variance is inevitable.
It is not every variance that is investigated. Variances are not investigated unless they are large enough to be of concern and the investigation should be undertaken only if the anticipated benefits are greater than the expected costs.
Variance investigation models are concerned with decisions to investigate the cause of particular variances and in particular, to distinguish significant deviations from random fluctuations.
A dynamic capability is the Group of answer choices functional and operating resources management process. ongoing capability to understand and establish a rival commitment to resource alignment. most compelling product or service a firm. improvement evaluation process for eliminating waste in the firm. ongoing capacity to modify existing resources and capabilities to create new ones.
Answer:
ongoing capacity to modify existing resources and capabilities to create new ones.
Explanation:
A dynamic capabilities can be simply defined as the ability of an organisation or firm to blend, build and reshape both the internal and external aspect of an organisation so as to get/produce an outcome that is needed by the organisation/firm. it is a series of processes in organisations that brings about a required needed outcome. DC gives organisation an advantages or an edge over others as companies or organisations has restructured/reconfigure their organisation for better performance.
Under U.S. laws: A. Only private workers have the right to hold an election to choose what union they want to represent them, if any.B. Only public workers have the right to hold an election to choose what union they want to represent them, if any.C. Most private and public workers have the right to hold an election to choose what union they want to represent them, if any.D. Only the employer has the right to hold an election to choose what unions they want to represent the workers within the organization, if any.
Answer:
C) Most private and public workers have the right to hold an election to choose what union they want to represent them, if any.
Explanation:
An employee is generally not required to join a union even, in most cases if a union exists and it has an agreement with the employer regarding employees joining it, the most it can do is charge everyone the union fees. This means that the employees are required to pay union fees even if they do not want to join the union. Full union membership cannot be required.
Also, employees are free to decide in an election to what union they want to belong to, or if they want to belong to any type of union at all. E.g. most of the employees from foreign car manufacturers have chosen not to join the UAW union (Toyota, Honda, Mercedes Benz, BMW, etc.).
Cullumber Company had a 40 percent tax rate. Given the following pre-tax amounts, what would be the income tax expense reported on the face of the income statement? Sales revenue $ 1100000 Cost of goods sold 617000 Salaries and wages expense 80400 Depreciation expense 119000 Dividend revenue 89500 Utilities expense 10600 Discontinued operations loss 99100 Interest expense 19200
Answer:
$101,520
Explanation:
Income statement will be made as follows:
$
Sales Revenue 1100000
Less: COGS (617000)
Gross Profit 483000
Less: Salaries & Wages (80400)
Less: Depreciation exp. (119000)
Less: Utilities exp. (10600)
Less: Interest expense (19200)
Earning before tax 253800
Less: Tax(40%) (101520)
Hope this helps.
Good luck buddy.
Final answer:
The income tax expense for Cullumber Company is calculated by applying the 40 percent tax rate to its taxable income, which is deduced by subtracting all allowable expenses from its sales revenue.
Explanation:
The question asks about calculating the income tax expense for Cullumber Company that will be reported on its income statement. The company has a fixed 40 percent tax rate. To calculate the income tax expense, we need to determine the company's taxable income. The taxable income is obtained by subtracting all allowable deductions, including the cost of goods sold (COGS), salaries and wages, depreciation, utilities, and interest expenses, from the sales revenue. Dividend revenue is generally considered an addition to income and the discontinued operations loss can be deducted.
Income tax expense is then calculated by applying the 40 percent tax rate to the taxable income. In this particular situation, specific calculations are not provided, as the student is supposed to use the given pre-tax amounts to find the correct taxable income and then apply the tax rate to find the income tax expense.
The effective tax rate and understanding of how income taxes work for corporations is crucial in business education, especially for students in finance or accounting. The mentioned tax policies and effective tax rates provide a general context for how corporate incomes are taxed in practice.
"In a long-run equilibrium, price is equal to average total cost." This statement applies to A. perfectly competitive markets, but not to monopolistically competitive markets or monopolies. B. perfect competitive and monopolistically competitive markets, but not to monopolies. C. perfect competitive markets, monopolistically competitive markets, and monopolies. D. None of the above is correct.
Answer:
C) perfect competitive markets, monopolistically competitive markets, and monopolies.
Explanation:
In economics, the short run is defined as a period of time where at least one (or more) of the factors of production is fixed, e.g. production facilities, equipment, etc.
The long run refers to a period of time where no factor of production is fixed, meaning that all costs are variable.
Short run and long run are not definite time periods, they can last a few months to several years.
These concepts apply to all markets, and in all types of markets (perfect competition, monopolistically competitive and monopolies) the long run average total cost will equal the price. At that point the firms will all be maximizing their accounting profits (because output will be located where marginal cost = average total cost = total variable cost) but making $0 economic profits.
The statement applies to both perfectly competitive and monopolistically competitive markets, but not to monopolies. This is because perfectly competitive and monopolistically competitive markets adjust to a point where price equals average total cost in the long run, while monopolies, having control over price, do not necessarily reach this point.
Explanation:The statement "In a long-run equilibrium, price is equal to average total cost" applies to both perfectly competitive and monopolistically competitive markets but not to monopolies. So the correct answer is B. Perfect competitive and monopolistically competitive markets, but not to monopolies.
In perfectly competitive markets, firms are price takers and do not have control over the price. They can only adjust output level to maximise profit. In the long run, new firms will enter or existing firms will exit until price equals the minimum point of the average total cost.
Similarly, in monopolistically competitive markets, firms will also reach a point where price equals average total cost in the long run. However, monopolies do not necessarily reach this point because they have control over price, hence they can make profits even in the long run.
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Elliott Corp.'s transactions for the year ended December 31, 2020 included the following: Purchased real estate for $1,250,000 cash which was borrowed from a bank. Sold available-for-sale securities for $1,000,000. Paid dividends of $1,200,000. Issued 500 shares of common stock for $500,000. Purchased machinery and equipment for $250,000 cash. Paid $900,000 toward a bank loan. Reduced accounts receivable by $200,000. Increased accounts payable $400,000. Elliott's net cash used in investing activities for 2020 was a. $1,500,000 b. $ 500,000 c. $ 750,000 d. $ 250,000
Answer:
b. $ 500,000
Explanation:
The computation of the net cash used in investing activities is shown below:
Cash flow from investing activities
Purchased real estate -$1,250,000
Purchased machinery and equipment -$250,000
Sold available-for-sale securities for $1,000,000
Net cash used by investing activities -$500,000
The negative sign represents the cash outflow and the positive sign represents the cash inflow and the same is to be considered
Let’s suppose you (USA dealer) imported a product from German on Dec 1, 2018 at € 300, payable in 60 days. You sold the product in the US market at $400 in cash on Dec 15, 2018. The company's fiscal year ends on Dec 31. You paid to your German supplier on Feb 1, 2019. Below, please find the exchange rate information: Dec 1, 2018: 1.2 €/$. Dec 31, 2018: 0.6 €/$. Feb 1, 2019: 1.0 €/$. What was gross profit for 2018 and 2019, respectively?
Answer:
- $140, -$120.
Explanation:
Okay, we are given the following parameters in the question above;
The value of the product imported from German on Dec 1, 2018 = € 300, payable = 60 days, the value of the product in the US market = $400 in cash on Dec 15, 2018 and the exchange rate are; Dec 1, 2018: 1.2 €/$, Dec 31, 2018: 0.6 €/$, Feb 1, 2019: 1.0 €/$.
Therefore, in the year 2018 we have that;
Purchase cost = €300 × 1.2 = $360.
Sales = $400.
Thus, the exchange loss = (1.2 - 0.6) × 300 = $180.
Therefore, the net income = sales - purchase cost - exchange loss.
The net income = $(400 - 360 - 180) = - $140.
Also, In the year 2019 we have that;
Exchange gain = (0.6 - 1) × 300 = -120.
Therefore, net income = -$120
Clampett, Inc., has been an S corporation since its inception. On July 15, 2020, Clampett, Inc., distributed $50,000 to J.D. His basis in his Clampett, Inc., stock on January 1, 2020, was $45,000. For 2020, J.D. was allocated $10,000 of ordinary income from Clampett, Inc., and no separately stated items. What is the amount of income J.D. recognizes related to Clampett, Inc., in 2020
Answer:
$5,000
Explanation:
Given:
Basis distribution = $50,000
Basis stock = $45,000
Ordinary income = $10,000
Computation of Capital gain:
Capital gain = Basis distribution - Basis stock - Ordinary income
Capital gain = $50,000 - $45,000 - $10,000
Capital gain = - $5,000
Computation of J.D. income related to Clampett = Ordinary income + Capital gain
Computation of J.D. income related to Clampett = $10,000 - $5,000
Computation of J.D. income related to Clampett = $5,000
A government leader determines that the 5% unemployment rate is too high. She asks her staff to research policy options to reduce the rate and a few weeks later is given four options. Each option would reduce the rate by a different amount and at a different cost. The leader studies the options and chooses the one she feels is best for the country. In order, what types of analysis were used in this three-stage chain of events?
Answer:
4 alnylisssss
Explanation:
On July 1, 20Y1, Danzer Industries Inc. issued $50,000,000 of 10-year, 8% bonds at a market (effective) interest rate of 10%, receiving cash of $43,768,920. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
Required:
1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1.*
2. Journalize the entries to record the following:*
a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.)
b. The interest payment on June 30, 20Y2, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.)
3. Determine the total interest expense for 20Y1.
4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest?
5. Compute the price of $43,768,920 received for the bonds by using the present value tables. (Round to the nearest dollar.)
*Refer to the Chart of Accounts for exact wording of account titles.
The journal entries have been provided for the issuance of bonds, and the semiannual interest payments. The total expense for 20Y1 is $2,188,448. Indeed, the bond proceeds will always be less than the face amount when the contract rate is less than the market rate.
Explanation:Firstly, the journal entry to record the cash proceeds from the issuance of the bonds on July 1, 20Y1 would be:https://brainly.com/question/33477032
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The questions involve the issuance of bonds and calculation of interest and amortization. It first requires recording the transaction and then calculating and recording the interest payments and bond discount amortizations. It finally requires calculating the interest expense and confirms that bond proceeds will be less if contract rate is less than market rate.
Explanation:The subject of this question is the understanding of bond issuance and bond interest payments, which falls under Business, specifically Financial Accounting. Here are the answers to these segments of your question:
On July 1, 20Y1, the journal entry will be:
Debit: Cash $43,768,920
Credit: Bonds payable $50,000,000
Credit: Discount on Bonds payable $6,231,080.
a. The first semiannual interest payment is calculated by multiplying the face value of the bonds ($50,000,000) by the contract interest rate (8%) and dividing by 2 (as interest is paid semiannually). This gives us $2,000,000.
The amortization of the bond discount using the straight-line method is calculated by dividing the total discount ($6,231,080) by the no. of periods (20), which gives us $311,554 (rounded to the nearest dollar).
The journal entry on December 31, 20Y1 would be:
Debit: Interest expense $2,311,554
Credit: Cash $2,000,000
Credit: Discount on bonds payable $311,554.
b. The journal entry on June 30, 20Y2 would be identical to the one on Dec 31, 20Y1.
Total interest expense for 20Y1 is $2,311,554.
Yes, the bonds proceeds will always be less than the face value if the contract rate is less than the market rate.
The price received ($43,768,920) is already the present value of the bonds calculated using market interest rate.
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On January 1, 2018, Nana Company paid $100,000 for 8,000 shares of Papa Company common stock. The ownership in Papa Company is 10%. Nana Company does not have significant influence over Papa Company. Papa reported net income of $52,000 for the year ended December 31, 2018. The fair value of the Papa stock on that date was $45 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2018
Answer:
$360,000
Explanation:
As per the data given in the question,
Nana company paid = $10,000
Number of share = 8,000
Ownership in Papa company = 10%
Net Income = $52,000
Value = $45 per share
The amount will be reported in balance sheet of Nana company for the investment in Papa company = Value × Number of shares
= $45 × 8000 share
= $360,000
City is a product of the Chester company which is primarily in the Nano segment, but is also sold in another segment. Chester starts to create their sales forecast by assuming all policies (R&D, Marketing, and Production) for all competitors are equal this year over last. For this question assume that all 700 of units of City are sold in the Nano segment. If the competitive environment remains unchanged what will be the City product’s demand next year (in 000’s)?
Answer:
700 units
Explanation:
Since it is given that the 700 units if city are sold to the nano segment and it is also mentioned that the competitive environment remains unchanged so the city demand of the product for the next year is also remains same as there is no change in the competitive environment
Hence, the demand fro the product in the next year is 700 units
Chester company's City product's demand next year can be predicted to remain at the current level of 700 units if the competitive environment stays the same. Forecasting depends on production and cost conditions and market structure. The concept of economies of scale and the analysis of the LRAC curve are important in understanding these market dynamics.
Explanation:To determine the demand for Chester company's City product next year, given that all competitors' policies remain the same, we would start by looking at the current sales figures, which are 700 units in the Nano segment. If the competitive environment, including market shares and consumer behavior, does not change, it is reasonable to forecast that the product’s demand will remain the same, meaning Chester can expect to sell a similar amount of units next year. The assumptions on market structure, competitive environment, and production costs are critical for such forecasting.
When looking at microeconomic questions similar to this, the decision to produce more or fewer goods hin_ges on production and cost conditions as well as the market's structure. For instance, changes in the competitive landscape, such as a price increase for running shoes or a government subsidy for green technologies, would need to be considered when forecasting demand and profits for the coming year.
Market structure is crucial; a key question to ask is how many competitors are in the market and what their capacities are. For instance, if the market can only support a certain number of units before reaching saturation, producing beyond that point would lead to excess supply and potential losses. This is tied into the concept of economies of scale and the intersection of market demand with the long-run average cost (LRAC) curve, which can predict whether a company will be able to sell all its products at a profitable price.
Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor.
In 2015, GII estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container.
Budgeted quantity Budgeted price
Direct materials 0.30 pounds $20 per pound
Direct labor 0.20 hours $12 per hour
During July, GII produced and sold 3, 000 containers using 1.000 pounds of direct materials at an average cost per pound of $19 and 625 direct manufacturing labor hours at an average wage of $11.75 per hour.
1. The direct material price variance during July is .
a. $1,100 unfavorable
b. $1,100 favorable
c. $1,000 unfavorable
d. $2,000 unfavorable
2. The direct material efficiency variance during July is .
a. $ 1,000 unfavorable
b. $1,100 favorable
c. $2,000 unfavorable
d. $1,000 favorable
3. The direct manufacturing labor price variance during July is _.
a. $375.00 unfavorable
b. $156.25 favorable
c. $243.75 favorable
d. $ 1, 000 unfavorable
4. The direct manufacturing labor efficiency variance during July is .
a. $300.00 unfavorable
b. $156.25 favorable
c. $143.75 favorable
d. $131.75 unfavorable
Answer and Explanation:
1. The computation of the material price variance is shown below:
= Actual Quantity × (Standard Price - Actual Price)
= 1,000 × ($20 - $19)
= $1,000 favorable
2. The computation of the direct material efficiency variance is shown below:
= Standard Price × (Standard Quantity - Actual Quantity)
= $20 × (3,000 pounds × 0.30 pounds - 1,000)
= $20 × (900 - 1,000)
= $2,000 unfavorable
3.The computation of the labor price variance is shown below:
= Actual Hours × (Actual rate - standard rate)
= 625 × ($11.75 per hour - $12 per hour)
= 625 × $0.25 per hour
= $156.25 favorable
4. The computation of the labor efficiency variance is shown below:
= Standard Rate × (Actual hours - Standard hours)
= $12 per hour × (625 hours - 3,000 containers × 0.20 hours)
= $12 per hour × 25 hours
= $300 unfavorable
If the standard cost is more than actual one so it would be favorable variance e and if the actual cost is more than the standard one so it would be unfavorable variance
Final answer:
The direct material price variance is $1,000 favorable, the direct material efficiency variance is $2,000 unfavorable, the direct labor price variance is $156.25 favorable, and the direct labor efficiency variance is $300 unfavorable.
Explanation:
To calculate the variances, we'll have to apply standard costing methods.
Direct Material Price Variance
The formula for this is (Actual Price - Standard Price) x Actual Quantity. Given the actual price is $19 and the standard price is $20, for 1,000 pounds, the direct material price variance is ($19 - $20) x 1,000 = -$1,000. This result is favorable since the actual price is less than the standard price.
Direct Material Efficiency Variance
This is calculated by (Actual Quantity - Standard Quantity) x Standard Price. The standard quantity for 3,000 containers is 3,000 x 0.30 pounds = 900 pounds. So, the variance is (1,000 - 900) x $20 = $2,000 which is unfavorable because more materials were used than the standard.
Direct Manufacturing Labor Price Variance
The formula is (Actual Hourly Rate - Standard Hourly Rate) x Actual Hours Worked. Substituting the values, we get ($11.75 - $12) x 625 = -$156.25, which is a favorable variance since the actual wage rate is less.
Direct Manufacturing Labor Efficiency Variance
The formula is (Actual Hours - Standard Hours) x Standard Rate. Standard hours for 3,000 containers are 3,000 x 0.20 hours = 600 hours. The variance is (625 - 600) x $12 = $300, which is unfavorable as more hours were worked than the standard.
Your local grocery store offers a coupon that reduces the price of milk during the coming week. The regular retail price of milk in the store is $3.00 per gallon, and the coupon price is $2.00 per gallon for the next week. If the store maximizes profits and the price elasticity of demand for milk is -2 for coupon users, what is the price elasticity of demand for non-users?
Final answer:
Without additional data on the change in quantity demanded by non-coupon users, the price elasticity of demand for milk among non-users cannot be determined. Price elasticity for coupon users is -2, indicating high responsiveness to price changes.
Explanation:
The student's question pertains to the concept of price elasticity of demand, which measures how much the quantity demanded of a good responds to a change in the price of that good. The provided coupon causes a decrease in the price of milk from $3.00 to $2.00 per gallon for coupon users, and given the price elasticity of demand is -2 for them, it implies that the quantity demanded by these users is highly responsive to price changes.
Understanding that, for the non-coupon users, the price elasticity of demand would depend on how their quantity demanded changes with price. However, the exact value cannot be determined from the given information without additional data regarding the change in quantity demanded by non-users when the price remains at $3.00. Typically, demand elasticity varies according to factors such as the availability of substitutes, the proportion of income spent on the good, and the period considered. Detailed data is necessary to accurately calculate the price elasticity for non-users.
Computing Gross Profit The following data were taken from the accounts of Fluter Hardware, a small retail business. Sales $120,000 Sales returns and allowances 900 Sales discounts 650 Merchandise inventory, January 1 35,000 Purchases during the period 77,600 Purchases returns and allowances during the period 4,100 Purchases discounts taken during the period 2,300 Freight-in on merchandise purchased during the period 1,250 Merchandise inventory, December 31 32,000 Determine the gross profit.
Answer:
$43,000
Explanation:
The gross profit is the difference between the sales revenue and the cost of good sold. Net sales is the sales less returns and allowances. Similar to net sales is net purchases which is the gross purchase net the allowances and returns.
Net sales
= $120,000 - $900 - $650
= $118,450
The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance. This may be expressed mathematically as
Opening balance + purchases - cost of goods sold = closing balance
net purchases = $77,600 - $4100 - $2300 + $1250
= $72,450
therefore,
$35000 + $72,450 - cost of goods sold = $32000
Cost of goods sold = $35000 + $72,450 - $32000
= $75,450
Gross profit = $118,450 - $75,450
= $43,000
Allen Boating Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Allen uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 1 pound per unit; $ 11 per pound Direct labor: 4 hours per unit; $ 17 per hour Allen produced 2 comma 000 units during the quarter. At the end of the quarter, an examination of the direct materials records showed that the company used 7 comma 500 pounds of direct materials and actual total materials costs were $ 99 comma 900. What is the direct materials efficiency variance?
Answer:
Direct material quantity (efficiency) variance= $60,500 unfavorable
Explanation:
Giving the following information:
Standards:
Direct materials: 1 pound per unit; $ 11 per pound
Allen produced 2,000 units during the quarter.
Direct material used= 7,500 pounds
To calculate the direct material efficiency variance, we need to use the following formula:
Direct material quantity (efficiency) variance= (standard quantity - actual quantity)*standard price
standard quantity= 2,000*1= 2,000 pounds
Direct material quantity (efficiency) variance= (2,000 - 7,500)*11
Direct material quantity (efficiency) variance= $60,500 unfavorable
It is unfavorable because the company used more materials that estimated to produce 2,000 units.
Show all your work. Indicate clearly the methods you use, because you will be scored on the correctness of your methods as well as on the accuracy and completeness of your results and explanations. At a financial institution, a fraud detection system identifies suspicious transactions and sends them to a specialist for review. The specialist reviews the transaction, the customer profile, and past history. If there is sufficient evidence of fraud, the transaction is blocked. Based on past history, the specialist blocks 40 percent of the suspicious transactions. Assume a suspicious transaction is independent of other suspicious transactions. (a) Suppose the specialist will review 136 suspicious transactions in one day. What is the expected number of blocked transactions by the specialist
Answer:
54.4
Explanation:
According to the scenario, computation of the given data are as follows:-
We can calculate the Expected Number of Blocked Transactions by using following formula:-
Probability of the specialist blocked the suspicious transactions(P) = 40%
= 40/100 =0.40
Number of the suspicious transactions reviewed(N) = 136
Expected Number of Blocked Transactions by the Specialist = P × N
= 0.40 × 136
= 54.4
Suppose the specialist will review 136 suspicious transactions in one day.
The expected number of blocked transactions by the specialist will be 54.4.
The expected number of blocked transactions is calculated using following
below:
Probability of the specialist blocked the suspicious transactions (P) is 40% = 40/100 =0.4The number of suspicious transactions reviewed(N) = 136Therefore the expected Number of Blocked Transactions by the Specialist
= P × N
= 0.40 × 136
= 54.4.
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What are two types of goods/services that lend themselves well to price competition
Final answer:
Goods or services well suited for price competition include generic groceries and basic apparel due to minimal product differentiation. Price competition leads firms to focus on offering the lowest possible prices to attract customers, especially in industries like airlines and electronics.
Explanation:
Two types of goods or services that lend themselves well to price competition are generic groceries and basic apparel. These industries have minimal product differentiation, leading to competition primarily on price. Within the grocery industry, items like sugar, flour, and bottled water are often seen as commodities where consumers are likely to choose the lowest-priced option. Similarly, for basic apparel, such as white t-shirts or socks, there is little differentiation, which creates a focus on price competitiveness.
Price competition is a market condition where multiple businesses offer similar products to the same customers, leading to a focus on lowering prices to attract consumers. This dynamic is evident in industries where product differentiation is minimal, and goods are viewed as interchangeable from various suppliers. Examples include airlines and electronics, where companies vigorously compete on price, sales, and discounts to draw customers.
Finally, it's worth noting that strong competition can also exist when the public sector competes with the private sector for the provision of goods and services, as in the case of public and private schools or hospitals. However, the intensity of competition might differ due to various factors, such as regulation and funding.
In order to sell a product at a profit the product must be priced higher than the total of what it costs you to build the unit, plus period expenses, and plus overhead. At the end of last year the broad cost leader Baldwin had an Elite product Buzz. Use the Inquirer's Production Analysis to find Buzz's production cost, (labor+materials). Exclude possible inventory carrying costs. Assume period expenses and overhead total 1/2 of their production cost. What is the minimum price the product could have been sold for to cover the unit cost, period expenses, and overhead? Select: 1 $32.17 $10.72 $35.00 $21.45
The minimum price to sell a product at a profit should cover the unit production cost (labor + materials) and half of the production cost, assumed to be period expenses and overhead. Without specific figures, a precise answer can't be given, but the described method helps in calculating the minimal selling price.
Explanation:The information provided in the question doesn't contain enough specific details to calculate the minimum price the product Buzz could have been sold for to cover the unit cost, period expenses, and overhead. However, the calculation procedure would involve adding the unit production cost (labor + materials) and half of the production cost as it's assumed to be period expenses and overhead. The resultant figure would give the minimum price at which the product would need to be sold to just cover these costs.
For example, if the unit cost to produce Buzz is $10 and the period expenses and overhead total up to 1/2 of the production cost. Then, the minimum sale price would be unit cost ($10) + 0.5 unit cost ($5) = $15. This is just an example using hypothetical figures as we don't have the actual data.
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