Answer:1.
a)Through put time =8.4days
b)The manufacturing cycle efficiency =36.9%
c)percentage of the through put time spent on non–value-added activities =63.1%
d)Delivery time =25.4days
e) The New manufacturing cycle efficiency =73.8%
Explanation:
1. The through put time is given as
Process time + Inspection time + Move time+Queue time
Through put time=3.1 + 0.2 + 0.9 + 4.2
Through put time=8.4days
2. The manufacturing cycle efficiency
,is given as
Process ÷Through put time
manufacturing cycle efficiency
, =3.1/8.4=0.369=36.9%
3. The manufacturing cycle efficiency
, is 36.9%
Thus percentage of the throughput time spent in non–value-added activities is given as
1 - 36.9% = 63.1%
4.The delivery cycle time is calculated as
Wait time + through put time
Delivery cycle =17.0 + 8.4 = 25.4 days
5. The New manufacturing cycle efficiency is calculated as
Process ÷through put time
But the new through put time =8.4 -4.2=4.2
New manufacturing cycle efficiency =3.1 / 4.2 = 0.7380
=73.8%
Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $205,900, $265,100, and $78,400, respectively. The cost driver for each activity and the estimated annual usage are number of setups 2,900, machine hours 24,100, and number of inspections 1,600. Compute the overhead rate for each activity.
Answer:
Overhead cost per set-up =$71
Overhead cost per machine hour =$11
Overhead cost per inspection=$49
Explanation:
Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers. Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.
Activity rate is calculated as:
Activity cost for the period / Total cost drivers for the period
So, we can apply this formula as follows:
Overhead cost per set-up = $205,900/2,900 set-ups=$71
Overhead cost per machine hour = $265,100/24,100 hours=$11
Overhead cost per inspection = $78,400/1,600 inspection=$49
The following information is available for the year ended December 31: Beginning raw materials inventory$12,000 Raw materials purchases 88,000 Ending raw materials inventory 11,400 Manufacturing supplies expense 800 The amount of raw materials used in production for the year is: Multiple Choice $88,600. $76,600. $89,400. $87,400.
Answer:
Direct material used= $88,600
Explanation:
Giving the following information:
Beginning raw materials inventory$12,000
Raw materials purchase 88,000
Ending raw materials inventory 11,400
To calculate the direct material used in production, we need to use the following formula:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 12,000 + 88,000 - 11,400
Direct material used= $88,600
Problems and Applications
For each of the following characteristics, indicate whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither.
Characteristic Perfectly Monopolistically
Competitive Competitive
Charges a price that is the same as marginal cost.
Sells a product differentiated from those of its competitors.
Produces at the efficient scale of the firm.
Equates marginal revenue and marginal cost.
Operates with excess capacity.
Earns economic profit in the long run.
Answer:
a perfectly competitive firm
a monopolistically competitive firm
a perfectly competitive firm
Both the perfectly competitive firm and monopolistically competitive firm
a monopolistically competitive firm
Neither firms
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Firms are productive and allocative efficient and do not operate with excess capacity
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services. As a result, price is always higher than marginal cost
Profit is maximised when marginal revenue equal marginal cost
An example of monopolistic competition are restaurants
Joan filed her individual income tax return 4½ months after it was due. She did not request an extension of time for filing. Along with her return, Joan remitted a check for $750, which was the balance of the taxes she owed with her return. Disregarding interest, calculate the total penalties that Joan will be required to pay, assuming the failure to file was not fraudulent
Answer:
$187.50
Explanation:
Calculation to determine the total penalties that she will be required to pay
Based on the information if she remitted a check for the amount of $750 the total penalties that she will be required to pay, if it was assumed that the failure to file was not fraudulent will be calculated as:
Total penalties=[$750*(5%*5)]
Total penalties=$750*0.25
Total penalties= $187.50
Therefore the total penalties that she will be required to pay is $187.50
The sales tax you pay when you gas up your car is regressive.
True.
False
Answer:
True
Explanation:
Regressive taxes place more burden on low-income earners. Since they are flat taxes, they take a higher percentage of income on the poor than on high-income earners. Taxes on most consumer goods, sales, gas, and Social Security payroll are examples of regressive taxes.
First and Ten Corporation’s stock returns have a covariance with the market portfolio of .0415. The standard deviation of the returns on the market portfolio is 20% and the expected market risk premium is 6.7%. The company has bonds outstanding with a total market value of $55 million and a yield to maturity of 6.5%. The company also has 4.2 million shares of common stock outstanding, each selling for $35. The company’s CEO considers the firm’s current debt-equity ratio optimal. The corporate tax rate is 21% and Treasury bills currently yield 3.4%. The company is considering the purchase of additional equipment that would cost $49 million. The expected unlevered cash flows from the equipment are $16.4 million per year for five years. Purchasing the equipment will not change the risk level of the firm. Calculate the NPV of the project.
Answer:
NPV of the project = $14,906,309.99
Explanation:
Note: See the attached excel file for calculation of the NPV of the project (in bold red color).
The weighted average cost of capital (WACC) used in calculating the discounting factor used in the attached excel file is calculated as follows:
Cost of equity = Treasury bills current yield + (Stock returns covariance with the market portfolio / Standard deviation of the returns on the market portfolio^2) * Expected market risk premium = 3.4% + (0.0415 / 20%^2) * 6.7% = 10.35%
After tax cost of debt = Bond yield to maturity * (100% - Tax rate) = 6.5% * (100% - 21%) = 5.14%
Market value of debt = $55,000,000
Market value of equity = Shares of common stock outstanding * Market price per share = 4,200,000 * $35 = $147,000,000
Total market value = Market value of equity + Market value of debt = $147,000,000 + $55,000,000 = $202,000,000
Equity share in the market value = $147,000,000 / $202,000,000 = 72.77%
Debt share in the market value = $55,000,000 / $202,000,000 = 27.23%
WACC = (Cost of equity * Equity share in the market value) + (After tax cost of debt * Debt share in the market value) = (10.35% * 72.77%) + (5.14% * 27.23%) = 8.93%
From attached excel file, we have:
NPV of the project = $14,906,309.99
explain the roles of directors of the company and the roles of auditors using the categories provided explain in three points exclude executed non-executive
Answer:
directors are the trustees of the company's money and property, and also act as agents in the transaction which they enter into on behalf of the company. Directors are liable as trustees for breach of trust, if they misapplied the funds or committed breach of byelaws of the company.
An auditor is an authorised personnel that reviews and verifies the accuracy of financial records and ensures that companies comply with tax norms. They primarily objective is to protect businesses from fraud, highlight any discrepancies in accounting methods, among other things.
. During 2007, Eaton Corp. started a construction job with a total contract price of $7,000,000. It was completed on December 15, 2008. Additional data are as follows: 2007 2008 Actual costs incurred in current year $2,700,000 $3,050,000 Estimated remaining costs 2,700,000 — Billed to customer 2,400,000 4,600,000 Received from customer 2,000,000 4,800,000 Under the completed-contract method, what amount should Eaton recognize as gross profit for 2008?
Answer:
$1,250,000
Explanation:
Calculation to determine what amount should Eaton recognize as gross profit for 2008
Using this formula
2008 Recognized gross profit=Total contract price- 2007 Actual costs incurred in current year -2008 Actual costs incurred in current year
Let plug in the formula
2008 Recognized gross profit=$7,000,000 - $2,700,000 - $3,050,000
2008 Recognized gross profit=$1,250,000
Therefore The amount that Eaton should recognize as gross profit for 2008 is $1,250,000
If the toothpaste market is monopolistically competitive, product differentiation would not take the form of: production of many varieties of toothpaste, including those with whitening agents. quality differences among the various brands. setting the price of the product well below the price charged by the rivals. differentiation in the locations where certain toothpastes are available.
Answer:
setting the price of the product well below the price charged by the rival
Explanation:
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.
An example of monopolistic competition are restaurants
When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero
If firms are earning negative economic profit, in the long run, firms leave the industry. This drives economic profit to zero
in the long run, only normal profit is earned
If a monopolistically competitive sets price below competitors, losses would be made. So, there is no incentive to do this
On January 1, 2018, Frontier Corporation purchased for $474,000, equipment having a useful life of ten years and an estimated salvage value of $24,000. Adventure has recorded depreciation of the equipment on the straight-line method. On December 31, 2025, the equipment was sold for $84,000. What is the journal entry to record this sale
Answer:
Frontier Corporation
Journal Entry to record the sale:
Debit Cash $84,000
Credit Sale of Equipment $84,000
To record the sale of the equipment.
Others:
Debit Sale of Equipment $474,000
Credit Equipment $474,000
To transfer the equipment account to the Sale of Equipment account.
Debit Accumulated Depreciation $360,000
Credit Sale of Equipment $360,000
To transfer the accumulated depreciation to the Sale of Equipment account.
Debit Loss from Sale of Equipment $30,000
Credit Sale of Equipment $30,000
To close the Sale of Equipment account to income statement.
Explanation:
a) Data and Calculations:
January 1, 2018: Purchase of equipment = $474,000
Estimated useful life = 10 years
Estimated salvage value = $24,000
Depreciable amount = $450,000 ($474,000 - $24,000)
Straight-line Annual Depreciation Expense = $45,000 ($450,000/10)
Accumulated depreciation after 8 years = $360,000 ($45,000 * 8)
Net book value of equipment = $114,000 ($474,000 - $360,000)
December 31, 2015: Proceeds from sale of equipment = $84,000
Analysis:
Cash $84,000 Sale of Equipment $84,000
Sale of Equipment $474,000 Equipment $474,000
Accumulated Depreciation $360,000 Sale of Equipment $360,000
Loss from Sale of Equipment $30,000 Sale of Equipment $30,000
Condensed financial data of Swifty Company for 2020 and 2019 are presented below. SWIFTY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,770 $1,170 Receivables 1,780 1,300 Inventory 1,570 1,880 Plant assets 1,870 1,710 Accumulated depreciation (1,210 ) (1,190 ) Long-term investments (held-to-maturity) 1,290 1,430 $7,070 $6,300 Accounts payable $1,200 $900 Accrued liabilities 200 250 Bonds payable 1,430 1,580 Common stock 1,860 1,730 Retained earnings 2,380 1,840 $7,070 $6,300 SWIFTY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,820 Cost of goods sold 4,640 Gross margin 2,180 Selling and administrative expenses 910 Income from operations 1,270 Other revenues and gains Gain on sale of investments 80 Income before tax 1,350 Income tax expense 550 Net income 800 Cash dividends 260 Income retained in business $540 Additional information: During the year, $80 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows using the direct method.
Answer:
Swifty Company
Explanation:
a) Data and Calculations:
SWIFTY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019
Cash $1,770 $1,170
Receivables 1,780 1,300
Inventory 1,570 1,880
Plant assets 1,870 1,710
Accumulated depreciation (1,210 ) (1,190 )
Long-term investments
(held-to-maturity) 1,290 1,430
Total assets $7,070 $6,300
Accounts payable $1,200 $900
Accrued liabilities 200 250
Bonds payable 1,430 1,580
Common stock 1,860 1,730
Retained earnings 2,380 1,840
Total liabilities and equity $7,070 $6,300
SWIFTY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue $6,820
Cost of goods sold 4,640
Gross margin 2,180
Selling and administrative expenses 910
Income from operations 1,270
Other revenues and gains
Gain on sale of investments 80
Income before tax 1,350
Income tax expense 550
Net income 800
Cash dividends 260
Income retained in business $540
Additional Information:
a) Issue of Common stock for plant assets = $80
Adjustments for cash transactions:
Receipts:
Customers = $1,300 + $6,820 - $1,780 = $6,340
Sale of investment = $1,430 - $1,290 = $140
Common stock = $1,860 - $1,730 - $80 = $50
Payments:
Suppliers = $900 + $4,330 - $1,200 = $4,030
Expenses = $250 + $910 - $200 = $960
Bonds = $1,580 - $1,430 = $150
Plant = $1,870 - $80 - $1,710 = $80
Purchases = $1,570 + 4,640 - $1,880 = $4,330
Statement of Cash Flows for the year ended December 31, 2020:
Cash flows from operating activities:
Receipt from customers $6,340
Payment to suppliers (4,030)
Payment for services (960)
Income tax expense (550)
Net cash from operating activities 800
Cash flows from investing activities:
Receipt from sale of investments $140
Purchase of plant assets (80)
Net cash from investing activities 60
Cash flows from financing activities:
Issue of Common stock $50
Payment to bondholders (150)
Payment to stockholders (260)
Net cash from financing activities (360)
Net cash flows $500
Gilberto Company currently manufactures 90,000 units per year of one of its crucial parts. Variable costs are $3.20 per unit, fixed costs related to making this part are $100,000 per year, and allocated fixed costs are $87,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $4.40 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 90,000 and buying 90,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?
Answer:
Part 1
total incremental cost of making 90,000 units = $388,000
total incremental cost of buying 90,000 units = $396,000
Part 2
There is a cost advantage of $8,000 of making than buying, therefore the company should continue to manufacture the part.
Explanation:
total incremental cost of making 90,000 units
Variable costs are ($3.20 x 90,000 units) $288,000
Fixed Costs $100,000
Total $388,000
total incremental cost of buying 90,000 units
Purchase Price ($4.40 x 90,000 units) $396,000
Total $396,000
Decision :
There is a cost advantage of $8,000 of making than buying, therefore the company should continue to manufacture the part.
Dennis Kozlowski, John Thain, and Raj Rajaratnam are former CEOs mentioned in the text that have been involved in corporate governance problems to one degree or another. What did Dennis Kozlowski do that was considered inappropriate behavior? Multiple Choice He provided insider information to the Goldman Sachs' board. He sold 500,000 shares of his personal stock right before a negative quarterly earnings report was released. He spent $2 million of company funds for his own birthday party. He created a Ponzi scheme that grew to $65 billion dollars before the SEC shut it down. He spent $1.2 million of company funds redecorating his office while demanding cost cutting from employees.
Answer: He spent $2 million of company funds for his own birthday party.
Explanation:
The article in question relates to the Agency problem which is a problem that arises as a result of management acting in such a way as to benefit themselves instead of the shareholders that they are supposed to be maximizing wealth for.
Dennis Kozlowski was the former CEO of Tyco. In this position, he committed several financial crimes such as throwing a $2 million birthday party that was funded by the company. He eventually went to prison for this and the other crimes.
The management of City Front Inc. must decide between scrapping or reworking units that do not pass inspection. The company has 11,000 defective units that cost $6.00 per unit to manufacture. The units can be sold as is for $2.50 each or they can be reworked for $3.50 each and then sold for the full price of $9.70 each. What is the incremental income from reworking and selling the units
Answer:
If the units are reworked, income will increase by $40,700.
Explanation:
Giving the following information:
Number of units= 11,000
Sell as-is:
Selling price= $2.5
Rework:
Selling price= $9.7
Increase in costs= $3.5
We will take into account the incremental costs, the first production costs are equal to both options.
Sell as-is:
Effect on income= 11,000*2.5= $27,500 increase
Rework:
Effect on income= 11,000*(9.7 - 3.5)
Effect on income= $68,200 increase
If the units are reworked, income will increase by $40,700.
In June 2015, the unemployment rate declined to 5.3 percent from 5.5 percent in May. The labor force participation rate also declined from May to June, from 62.9 percent to 62.6 percent. If the labor force participation rate had remained unchanged from May to June, the unemployment rate for June 2015 would be
Answer: A. greater than 5.3 percent because the value in the numerator of the formula for the unemployment rate would increase more than the value in the denominator.
Explanation:
The unemployment rate is calculated by dividing the number of those who are unemployed but actively seeking employment by the labor force.
= Unemployed / Labor force
If the labor force participation rate had remained unchanged then that would mean that the denominator for the unemployment rate did not change while unemployment did.
The unemployment rate will therefore be greater than 5.3% because the numerator which is the unemployment figure, would have increase more than the denominator.
Vaughn Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,088,000 on March 1, $1,236,000 on June 1, and $3,090,260 on December 31. Vaughn Company borrowed $1,083,960 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,493,000 note payable and an 10%, 4-year, $3,319,800 note payable. Compute the weighted-average interest rate used for interest capitalization purposes.
Answer:
9.57 %
Explanation:
The computation of the weighted-average interest rate used for interest capitalization purposes is shown below:
Particulars Loan Amount Interest
9 % 5 year note payable $2,493,000 ($2,493,000 × 9 %) = $224,370
10 % 4 year note payable $3,319,800 ($3,319,800 × 10 %) = $331,980
Total $5,812,800 $556,350
Now
Weighted- average interest rate is
= $556,350 ÷ $5,812,800
= 9.57 %
Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:
Sales $18,600,000
Net operating income $5,200,000
Average operating assets $35,200,000
Required:
1. Compute the margin for Alyeska Services Company.
2. Compute the turnover for Alyeska Services Company.
3. Compute the return on investment (ROI) for Alyeska Services Company.
Answer and Explanation:
The computation is shown below:
a. The margin is
= Net operating income ÷ Sales
= $5,200,000 ÷ $18,600,000
= 27.96%
b. The turnover is
= Sales ÷ average operating assets
= $18,600,000 ÷ $35,200,000
= 0.53 times
c. The return on investment is
= Net operating income ÷ average operating assets
= $5,200,000 ÷ $35,200,000
= 14.77%
Hence, the above formulas to be applied
how can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?
The financial statements of Friendly Fashions include the following selected data (in millions): ($ in millions except share data) 2021 2020 Sales $ 8,143 $ 9,234 Net income $ 159 $ 628 Stockholders' equity $ 2,000 $ 2,240 Average Shares outstanding (in millions) 720 - Dividends per share $ 0.30 - Stock price $ 9.90 - Required: Calculate the following ratios for Friendly Fashions in 2021.
Answer:
A. Return on equity 7.5%
B. Dividend yield 3.03%
C. Earnings per share $0.22
D. Price-earnings ratio 45
Explanation:
A. Calculation to determine the Return on equity
First step is to calculate the Average stockholders equity using this formula
Average stockholders equity = ( Beginning stockholders equity + Ending stockholders equity)/2
Let plug in the formula
Average stockholders equity= (2,240+2000)/2
Average stockholders equity= $2,120 millions
Now let calculate the Return on equity using this formula
Return on equity=Net Income / Average stockholders equity
Let plug in the formula
Return on equity=159 / 2,120
Return on equity= 7.5%
B. Calculation to determine the Dividend yield
Using this formula
Dividend yield=Dividend per share / Stock price
Let plug in the formula
Dividend yield=0.30/ 9.90
Dividend yield= 3.03%
C. Calculation to determine the Earnings per share
Using this formula
Earnings per share=Net Income / Average shares outstanding
Let plug in the formula
Earnings per share=159/ 720
Earnings per share= $0.22
D. Calculation to determine Price-earnings ratio
Using this is formula
Price-earnings ratio=Stock price / Earnings per share
Let plug in the formula
Price-earnings ratio=9.90 / 0.22
Price-earnings ratio= 45
Income Statement The following account balances were taken from the adjusted trial balance for Urgent Messenger Service, a delivery service firm, for the fiscal year ended November 30, 20Y1: Depreciation Expense $6,700 Fees Earned 355,800 Insurance Expense 1,270 Miscellaneous Expense 2,680 Rent Expense 50,900 Salaries Expense 178,900 Supplies Expense 2,280 Utilities Expense 19,400 Prepare an income statement for Urgent Messenger Service.
Answer:
$93,670
Explanation:
Preparation of an income statement for Urgent Mess
INCOME STATEMENT
Urgent messenger service
for the year ended november 30, 20Y1
REVENUE :
Fees earned $355,800
Less expenses :
depreciation expense ($6,700)
insurance expense ($1,270)
miscellaneous expense ($2,680)
rent expense ($50,900)
salaries expense ($178,900)
supplies expense ($2,280)
utilities expense ($19,400)
TOTAL EXPENSES ($262,130)
NET INCOME $93,670
($355,800-$262,130)
Therefore the income statement for Urgent Mess will be $93,670
The net income of Urgent Messenger Service is $93,670.
INCOME STATEMENT
REVENUE:
Fees earned $355,800
Expenses :
Depreciation expense ($6,700)
insurance expense ($1,270)
Miscellaneous expense ($2,680)
Rent expense ($50,900)
Salaries expense ($178,900)
Supplies expense ($2,280)
Utilities expense ($19,400)
Total Expenses ($262,130)
Net Income $93,670
In conclusion, the net income of Urgent Messenger Service is $93,670.
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Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred.
Sept. 6 Purchased calculators from Dragoo Co. at a total cost of $1,680, terms n/30.
Sept. 9 Paid freight of $60 on calculators purchased from Dragoo Co.
Sept. 10 Returned calculators to Dragoo Co. for $58 credit because they did not meet specifications.
Sept. 12 Sold calculators costing $580 for $810 to Fryer Book Store, terms n/30.
Sept. 14 Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. The calculator costs $33.
Sept. 20 Sold calculators costing $570 for $740 to Heasley Card Shop, terms n/30.
Journalize the September transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answer:
Date Account Titles Debit Credit
Sept 6. Inventory $1,680
Accounts Payable $1,680
Sept 9. Inventory $60
Cash $60
Sept 10 Accounts Payable $58
Inventory $58
Sept 12 Accounts Receivable $810
Sales Revenues $810
Cost of Goods Sold $580
Inventory $580
Sept 14 Sales returns $45
Accounts Receivable $45
Inventory $33
Cost of Goods Sold $33
Sept 20 Accounts Receivable $740
Sales Revenues $740
Cost of Goods Sold $570
Inventory $570
On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $2,050,000 at 11% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021:$6,000,000, 16% bonds$4,000,000, 11% long-term note Construction expenditures incurred during 2021 were as follows:January 1 $ 840,000March 31 1,440,000June 30 1,088,000September 30 840,000December 31 640,000Required:Calculate the amount of interest capitalized for 2021 using the specific interest method. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%).)
Answer:
Highlands Company
The interest capitalized is:
= $294,140.
Explanation:
a) Data and Calculations:
Borrowings on January 1 = $2,050,000 at 11%
Debt outstanding throughout 2021:
16% bonds = $6,000,000
11% long-term note = $4,000,000
Construction expenditures:
January 1 $ 840,000
March 31 1,440,000
June 30 1,088,000
September 30 840,000
December 31 640,000
Date Expenditure Weights Weighted-Average
January 1 $ 840,000 12/12 $840,000
March 31 1,440,000 9/12 1,080,000
June 30 1,088,000 6/12 544,000
September 30 840,000 3/12 210,000
December 31 640,000 0/12 0
Accumulated weighted-average expenditure = $2,674,000
Interest capitalized for 2021, using the specific interest method = $ ($2,674,000 * 11%)
= $294,140
Sophia just graduated from college. She just sold the furniture from her college apartment for $450 in cash. She just deposited $2,700 in graduation money into her checking account and has $7,500 saved in her savings account from working part-time. She charged gas and groceries to her credit card that she hasn't paid off yet. The total balance on her credit card is $179. Sophia has driven the same car since high school that is valued at $3,254. She doesn't have an auto loan. Her total student loan amount after graduating is $54,178. What is Sophia's net worth? (Do not include the $ sign or commas in your answer).
Answer:
Sophia's Net Worth
Sophia's net worth is:
= ($40,453).
Explanation:
a) Data and Calculations:
Assets:
Proceeds from sale of furniture = $450
Checking account deposit = 2,700
Savings account 7,500
Car 3,254
Total assets $13,904
Liabilities:
Credit card $179
Student loan after graduating 54,178
Total liabilities $54,357
Sophia's net worth = ($40,453)
b) Sophia's net worth is in the negative because of the student loan. This implies that she is in debt. A negative net worth simply means that Sophia owes more than she owns. In other words, Sophia's liabilities exceed her assets' value.
Journal Entries (Note Received, Renewed, and Collected) 1. Prepare general journal entries for the transactions. When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Assume 360 days in a year. May 22 Received a 30-day, 6% note in payment for merchandise sale of $20,000. June 21 Received $100 cash (interest) on the old (May 22) note; the old note is renewed for 30 days at 7%. July 21 Received principal and interest on the new (June 21) note. 28 Received a 45-day, 7% note in payment for accounts receivable balance of $11,600. Sept. 11 Received $101.5 cash (interest) plus $1,200 principal on the old (July 28) note; the old note is renewed for 60 days (from September 11) at 7.5%. Nov. 10 Received principal and interest on the new (September 11) note.
Answer:
Journal Entries:
May 22 Debit 6% Note Receivable $20,000
Credit Sales Revenue $20,000
To record the receipt of a 30-day, 6% note in payment for merchandise.
June 21 Debit Cash $100
Credit Interest Revenue $100
To record a month's interest received on the note receivable.
Debit 7% Note Receivable $20,000
Credit 6% Note Receivable $20,000
To record the renewal of the 6% note with a 7% note for 30 days.
July 21 Debit Cash $20,116.67
Credit 7% Note Receivable $20,000
Credit Interest REvenue $116.67
To record the receipt of principal and interest on the new (June 21) note.
July 28 Debit 7% Note Receivable $11,600
Credit Accounts Receivable $11,600
To record the receipt of a 45-day, 7% note in payment for accounts receivable balance.
Sept. 11 Debit Cash $1,301.50
Credit Interest Revenue $101.5
Credit 7% Note Receivable $1,200
To record the receipt of cash for note and interest.
Debit 7.5% Note Receivable $10,400
Credit 7% Note Receivable $10,400
To record the renewal of the old note for 60 days at 7.5%.
Nov. 10 Debit Cash $10,530
Credit 7.5% Note Receivable $10,400
Credit Interest Revenue $130
To record full settlement of principal and interest on the note.
Explanation:
a) Data and Analysis:
May 22 6% Note Receivable $20,000 Sales Revenue $20,000.
June 21 Cash $100 Interest Revenue $100
7% Note Receivable $20,000 6% Note Receivable $20,000
July 21 Cash $20,116.67 7% Note Receivable $20,000 Interest REvenue $116.67
July 28 7% Note Receivable $11,600 Accounts Receivable $11,600
Sept. 11 Cash $1,301.50 Interest Revenue $101.5 7% Note Receivable $1,200
7.5% Note Receivable $10,400 7% Note Receivable $10,400
Nov. 10 Cash $10,530 7.5% Note Receivable $10,400 Interest Revenue $130
Grassley Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-run monthly usage of staff hours for Operating Departments 1 and 2 follow. Department 1 Department 2 Total Short-run usage (hours) 40,000 60,000 100,000 Long-run usage (hours) 45,000 55,000 100,000 If Grassley uses dual-cost accounting procedures and variable administrative costs total $200,000, the amount of variable administrative cost to allocate to Department 1 would be
Answer:
$80,000
Explanation:
Calculation to determine what the amount of variable administrative cost to allocate to Department 1 would be
Variable administrative cost to allocate to Department 1=(40,000 ÷100,000) x $200,000
Variable administrative cost to allocate to Department 1=0.4×$200,000
Variable administrative cost to allocate to Department 1= $80,000
Therefore The Variable administrative cost to allocate to Department 1 would be $80,000
An ad for Tums antacid shows a guest at a restaurant asking for Tums to alleviate his heartburn. The waitress brings him a bowl that is filled with packets of Maalox, Rolaids, Tums and other antacids. The waitress says that all antacids are the same. The guest then explains to her that Tums is different because it is the only antacid brand that has calcium. Tums is using: Group of answer choices one-sided advertising two-sided advertising comparative advertising verbal appeals visual appeals'
Answer:
comparative advertising
Explanation:
Comparative advertising is a marketing strategy where the product or service of the company would be represented as a superior good as compared to the competitor. It compared the features of the company to the competitor
Since in the given situation, it is mentioned that the guest explains to her than tums should be different as it the antacid brand that contains only calcium
So, the above represent the answer
On August 1, Year 1, SuperCool Software (SCS) began developing a software program to allow individuals to customize their investment portfolios. Technological feasibility was established on January 31st of year 2, and the program was available for release on March 31, year 2. Development costs were incurred as follows:August 1 through December 31, Year 1 $ 4,000,000January 1 through January 31, Year 2 600,000February 1 through March 31, Year 2 900,000SCS expects a useful life of five years for the software and total revenues of $10,000,000 during that time. During Year 2, SCS recognized $2,000,000 in revenue, included in the $10,000,000 total revenue estimate.Calculate the required amortization for Year 2 (Hint: calculate using both methods, choose the greater number)
Answer:
$180,000
Explanation:
Calculation to determine the required amortization for Year 2
(1)Using Percentage-of-revenue method
Percentage-of-revenue method=($2,000,000/$10,000,000)*$900,000
Percentage-of-revenue method= 20% *$900,000
Percentage-of-revenue method= $180,000
(2) Using Straight-line method
Straight-line method=$900,000 × 1/5 × 9/12
Straight-line method= $135,000
Therefore based on the above calculation the required amortization for Year 2 will be $180,000 using The percentage-of-revenue method reason been that the method help to produces higher amortization of the amount of $180,000.
Blumen Textiles Corporation began April with a budget for 22,000 hours of production in the Weaving Department. The department has a full capacity of 29,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows: Variable overhead $50,600 Fixed overhead 34,800 Total $85,400 The actual factory overhead was $86,400 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 23,000 hours. Determine the variable factory overhead controllable variance and the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required.
Answer:
A. 1300 Favorable
B. $7,200 UnFavorable
Explanation:
A. Calculation to determine the variable factory overhead controllable variance
First step is to calculate the Budgeted rate of variable overhead
Budgeted rate of variable overhead = $50,600/22,000
Budgeted rate of variable overhead= $2.3per hour
Second step is to calculate the Standard variable overhead for actual production
Standard variable overhead for actual production = 23,000 x $2.3
Standard variable overhead for actual production = $52,900
Now let calculate the Variable factory overhead controllable variance using this formula
Variable factory overhead controllable variance = Standard variable overhead - Actual variable overhead
Let plug in the formula
Variable factory overhead controllable variance= $52,900 - ($86,400 - 34,800)
Variable factory overhead controllable variance= 1300 Favorable
Therefore Variable factory overhead controllable variance is 1300 Favorable
B. Calculation to determine the fixed factory overhead volume variance.
First step is to calculate the Predetermined fixed overhead rate using this formula
Predetermined fixed overhead rate = 34,800/29,000
Predetermined fixed overhead rate = $1.20 per hour
Second step is to calculate the Fixed overhead applied
Using this formula
Fixed overhead applied = Standard hours x Standard rate
Let plug in the formula
Fixed overhead applied= 23,000 x $1.20
Fixed overhead applied= $27,600
Now let calculate the Fixed overhead volume variance using this formula
Fixed overhead volume variance = Fixed overhead applied - Budgeted fixed overhead
Let plug in the formula
Fixed overhead volume variance= $27,600 - 34,800
Fixed overhead volume variance= $7,200 UnFavorable
Therefore The Fixed overhead volume variance is $7,200 UnFavorable
Influential factors such as cost, price, break-even analysis, sales potential,
and competition are evaluated as part of which phase? *
Concept development
Generating ideas
Screening ideas
Market Product
Product Development
Answer:46
Explanation:
As a marketing manager what efforts you can put in place that can shape your companies brand to meet dramatic developments occurring in the marketplace everyday?
Answer:
Marketing is a broad subject with various techniques and tools. Thus, there can be a lot of methods through which a marketing manager can stabilize the operations of company to some extent. The main methods are as follows :
1. Use of social media :
Almost every second individual in our society is actively engaged in social media. Therefore, it is an efficient as well as relatively less expensive method of targeting the audience.
2. Knowing the audience :
One best way to hedge the market uncertainties is to completely understand the behavior of your customers. Thus, one can conduct research on different levels to understand customer preference.