Answer:
Using solver, the optimal solution = 900 acres of soybean resulting in $8,100,000 profit
Explanation:
you need to maximize 9000S + 6000C + 3000W
where:
S = acres of soybean
C = acres of corn
W = acres of wheat
constraints:
S + C + W ≤ 900
5S + 2C + 1W ≤ 5400
5S + 2C + 2W ≤ 5400
S, C, W ≥ 0
S, C, W are whole numbers
Using solver, the optimal solution = 900 acres of soybean resulting in $8,100,000 profit
what is the major difference between corporations and other kinds businesses?
Answer:
A corporation is a separate entity apart from that of the owners. A corporation is not responsible for its debts if it fails. A corporation is much larger than other kinds of businesses.
Explanation:
A corporation has a separate legal entity apart from that of the owners and workers.
In March, Stinson Company completes Jobs 10 and 11. Job 10 cost $20,000 and Job 11 $30,000. On March 31, Job 10 is sold to the customer for $35,000 in cash.Journalize the entries for the completion of the two jobs and the sale of Job 10.Date Account Titles and Explanation Debit CreditMar. 31 31 31
Answer:
Mar. 31
Dr Finished goods inventory $50,000
(20,000+30,00)
Cr Work in process inventory $50,000
31 Dr Cash $35,000
Cr Sales revenue $35,000
31 Dr Cost of goods sold $30,000
Cr Finished goods inventory $30,000
Explanation:
Preparation of the journal entries for the completion of the two jobs and the sale of Job 10
Mar. 31
Dr Finished goods inventory $50,000
(20,000+30,00)
Cr Work in process inventory $50,000
(Being To record the completion of the two jobs)
31 Dr Cash $35,000
Cr Sales revenue $35,000
(Being To record the sale job 10)
31 Dr Cost of goods sold $30,000
Cr Finished goods inventory $30,000
(Being To record the cost of the job sold)
Name and describe three ways that companies can benefit from being ethical.
A foundry is developing a long-range strategic plan for buying scrap metal for its operations. The foundrycan buy scrap metal in unlimited quantity from two sources: Atlanta and Birmingham, and it receives thescrap daily by railroad cars.The scrap is melted down, and lead and copper are extracted. Each railroad car from Atlanta yields 1 ton ofcopper and 1 ton of lead, and costs $10,000. Each railroad car from Birmingham yields 1 ton of copper and2 tons of lead, and costs $15,000. The foundry needs at least 4 tons of lead and at least 2.5 tons of copperper day for the foreseeable future.1. In order to minimize the long-range scrap metal cost, how many raiload cars of scrap should bepurchased per day from each source
Answer:
The answer is below
Explanation:
Let x represent the number of railroad cars of scrap purchased per day from Atlanta and let y represent the number of railroad cars of scrap purchased per day from Birmingham.
Since Atlanta yields 1 ton of copper and 1 ton of lead while Birmingham yields 1 ton of copper and 2 tons of lead.
The foundry needs at least 2.5 tons of copper per day. Hence:
x + y ≥ 2.5 (1)
The foundry needs at least 4 tons of lead per day. Hence:
x + 2y ≥ 4 (2)
Plotting equations 1 and 2 using geogebra online graphing tool, we get the points that is the solution to the problem as:
(0, 2.5), (4, 0), (1, 1.5)
Car from Atlanta cost $10000 while car from Birmingham costs $15000. Therefore the cost equation is:
Cost = 10000x + 15000y
We are to find the minimum cost:
At (0, 2.5): Cost = 10000(0) + 15000(2.5) = $37500
At (4, 0): Cost = 10000(4) + 15000(0) = $40000
At (1, 1.5): Cost = 10000(1) + 15000(1.5) = $32500
The minimum cost is at (1, 1.5).
The systems theory Multiple Choice emphasizes that an organization is one system in a series of subsystems. implements a piecerate system in which workers are paid additional wages when they exceed a standard level of output for each job. enforces a system that suggests that frontline supervisors should receive a bonus for each of their workers who completed their assigned daily tasks. develops a system to lower costs and increase worker productivity by showing how employees could work smarter, not harder. suggests that organizations are effective when they have the social system and the technical system to make products and services that are valued by customers.
Answer:
The systems theory:
emphasizes that an organization is one system in a series of subsystems.
Explanation:
A systems theory approach is a theoretical perspective that focuses on the interactions and relationships between parts of a whole. The theory helps to understand how an entity is organized, functions, and produces outcomes, which impact its growth. It also explains how rules and regulations are applied to govern an organization towards the achievement of its goals.
The systems theory is emphasizing that an organization is one system in a series of subsystems. Thus, option (a) is correct.
The systems theory of organization asserts that organizations are composed of many subsystems that are not necessarily related to one another but work together to form the whole.
The systems approach to management looks at a business as a series of systems and subsystems that interact with one another to create the overall organizational system.
In the systems approach to management, employees are more focused on achieving a collective goal for an organization rather than operational output.
Therefore, option (a) is correct
Learn more about on systems theory, here:
https://brainly.com/question/9557237
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Your question is incomplete, but most probably the full question was.
The systems theory:
Multiple Choice
A. Emphasizes that an organization is one system in a series of subsystems.
B. Implements a piece rate system in which workers are paid additional wages when they exceed a standard level of output for each job.
C. Enforces a system that suggests that frontline supervisors should receive a bonus for each of their workers who completed their assigned daily tasks.
D. Develops a system to lower costs and increase worker productivity by showing how employees could work smarter, not harder.
E. Suggests that organizations are effective when they have the social system and the technical system to make products and services that are valued by customers.
An investment offers $6,260 per year for 17 years, with the first payment occurring 11 years from now. If the required return is 3 percent, what is the value of the investment? (HINT: Remember that when you calculate the PV of the annuity, the claculator gives you the present value of the annuity 1 period before the annuity starts. So if the annuity starts in year 7, that calculator will to give you the persent value of annuity in year 6. Now you have to bring this number to period 0 by inputting: N=6 (1 period before the annuity starts, in your case it would be a different number depending when your annuity starts) R=3 FV=Present value of annuity you found in step 1. And you solve for PV)
Answer: $61,328.15
Explanation:
The amount paid is per year so this is an annuity. It will begin 11 years from now so one should find the present value in that year:
Present Value of annuity = Annuity * ( 1 - ( 1 + rate) ^ - no. of periods) / rate
= 6,260 * ( 1 - ( 1 + 3%) ⁻¹⁷) / 3%
= $82,419.90
That is the present value if the annuity starts 11 years from now which means that it is the present value 10 years from now (ordinary annuities are paid end of period).
You need to discount to current period:
= 82,419.90 / ( 1 + 3%)¹⁰
= $61,328.15
Make-or-Buy Decision
Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $40 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 25% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows:
Direct materials $16
Direct labor 20
Factory overhead (25% of direct labor) 5
Total cost per unit $41
If Fremont Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 5% of the direct labor costs.
a. Prepare a differential analysis dated September 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. If an amount is zero, enter "0". If required, round your answers to two decimal places. Use a minus sign to indicate a loss.
Differential Analysis
Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2)
September 30
Make Carrying Case (Alternative 1) Buy Carrying Case (Alternative 2) Differential Effect on Income (Alternative 2)
Sales price $ $ $
Unit costs:
Purchase price
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Income (loss) $ $ $
b. Assuming there were no better alternative uses for the spare capacity, it would (Be advisable, Not be advisable) to manufacture the carrying cases. Fixed factory overhead is(Relevant, Irrelevant) to this decision.
Answer:
A. Make carrying case(Alternative 1) $41.00
Buy carrying case (Alternative 2)$44.00
Differential effect on net income (Alternative 2)($3.00)
B. Assuming there were no better alternative uses for the spare capacity, it would BE ADVISABLE to manufacture the CARRYING CASES. Fixed overhead is IRRELEVANT to this decision.
Explanation:
A. Preparation of a Differential Analysis
DIFFERENTIAL ANALYSIS
Make carrying case Buy carrying case
(Alternative 1) (Alternative 2)
Alternative 1 Alternative 2 Differential effect on net income (Alternative 2)
Sales price
$0.00 $0.00 $0.00
Purchase Price
$0.00 $40.00 ($40.00)
Direct materials
$16.00 $0.00 $16.00
Direct labor
$20.00 $0.00 $20.00
Variable manufacture overhead (20*5%=$1.00)
$1.00 $0.00 $1.00
Fixed manufacture overhead($5.00-$1.00) $4.00 $4.00 $0.00
Income(Loss)
$41.00 $44.00 ($3.00)
Based on the above calculation Alternative 1 which is carrying case should be Choose by the Company .
B. Therefore Assuming there were no better alternative uses for the spare capacity, it would BE ADVISABLE to manufacture the CARRYING CASES. Fixed overhead is IRRELEVANT to this decision.
What was the opportunity cost in a situation in which you use your available cash to buy gas for your car and then stay hungry the rest of the way home?
Answer:
see below
Explanation:
Opportunity cost is the sacrificed benefit by choosing a preferred option over others. The value of opportunity cost is the foregone benefit from the best alternative.
In this situation, the person had to choose between buying gas for the car or using that money to purchase food. Since the person opted to buy gas, they sacrificed having a meal for the rest of the day. The pleasure derived from eating is the opportunity cost for this person.
The Canon Corporation sells ten copiers to the Title Company on October 15 for $40,000. Canon delivers the copiers to Title on October 20 and Title pays $16,000, agreeing to pay the balance on November 10. Under the cash basis, how much revenue should Canon recognize in October
Answer:
$16,000
Explanation:
Under the cash basis, the revenue is recognized when the cash is received and the expenses is recognized when the cash is paid
So according to the question since the $16,000 is paid so the revenue that should be recognized in the October month is $16,000
Therefore the same would be considered
The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data: Year Enrollment Four years ago 2000 Three years ago 2200 Two years ago 2800 Last year 3000 What is this year's forecast using the least squares trend line for these data
Answer:
I used an Excel spreadsheet to calculate R² which gives us the least squares trend. See attached image.
y = 360x + 1600
R² = 0,9529
next year's enrollment should be = (360 x 5) + 1600 = 3400
A key feature of business is that it facilitates an exchange of
Answer:
type ''value''
Explanation:
i took the test
Seasons Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1,550,000 each quarter. The total contract price is $18,600,000 and Seasons estimates total costs of $17,750,000. Seasons estimates that the building will take 3 years to complete, and commences construction on January 2, 2018.At December 31, 2018, Seasons estimates that it is 30% complete with the construction, based on costs incurred. What is the total amount of Revenue and Profit from Long-Term Contracts recognized for 2018?
Answer:
The correct answer is "$5,580,000".
Explanation:
The given values are:
Total contract price,
= $18,600,000
Completion percentage,
= 30%
Seasons estimates,
= $17,750,000
Now,
In 2018,
The total amount of revenue will be:
= [tex]Total \ contract \ price\times Completion \ percentage[/tex]
On substituting the given values, we get
= [tex]18,600,000\times 30 \ percent[/tex]
= [tex]5,580,000[/tex] ($)
One of the keys to successful production planning is resource management. _____ is a system that would note how a possible strike in an Evanston, Indiana, plant will threaten supplies of a needed component part as well as how customer growing preference for time-saving devices such as the company markets and use this information in production planning.
a) Enterprise resource planning (ERP)
b) Manufacturing resource planning II (MRPII)
c) The PERT chart
d) Manufacturing resource planning (MRP)
e) Computer-aided resource planning (CARP)
Answer:
a) Enterprise resource planning (ERP)
hopethis helps!
he balance sheet of Indian River Electronics Corporation as of December 31, 2020, included 13% bonds having a face amount of $92.0 million. The bonds had been issued in 2013 and had a remaining discount of $5.0 million at December 31, 2020. On January 1, 2021, Indian River Electronics called the bonds before their scheduled maturity at the call price of 103. Required:Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2021.
Answer:
Dr Bonds Payable 92,000,000
Dr Loss on early existing 7,760,000
Cr Discount on Bonds Payable 5,000,000
Cr Cash 94,760,000
Explanation:
Preparation of the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2021
Based on the information given the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2021 will be :
Dr Bonds Payable 92,000,000
Dr Loss on early existing 7,760,000
Cr Discount on Bonds Payable 5,000,000
Cr Cash 94,760,000
(103%*92m)
Calculation for Loss on early existing
Loss on early existing=[(94,760,000 + 5,000,000)- 92,000,000]
Loss on early existing= 99,760,000- 92,000,000
Loss on early existing=7,760,000
Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system with labor hours as the cost driver but is considering switching to an activity-based costing system. In preparation for the possible switch, Bunker has identified two activity cost pools: materials handling and setup. Pertinent data follow: Fabric Case Leather Case Number of labor hours 15,000 9,000 Number of material moves 440 660 Number of setups 40 80 Total estimated overhead costs are $150,000, of which $110,000 is assigned to the materials handling cost pool and $40,000 is assigned to the setup cost pool.
Answer:
$93,750
Explanation:
Required: "Calculate the overhead assigned to the fabric case using the traditional costing system based on direct labor hours."
Total estimated overhead costs (A) = 150,000
Total labor hours (B) = 15,000 + 9,000 = 24,000
Overhead allocation rate (C) = A/B = 150,000/24,000
Overhead allocation rate (C) = $6.25 Per labor hour
Total labor hours used by Fabric case (D) = 15,000 Hours
Overhead assigned to the fabric case (C*D) = $6.25 Per labor hour * 15,000 Hours = $93,750
Rediger Inc., a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Process inventory account was $35,000 at the beginning of the month and $23,500 at the end of the month. During the month, the Corporation incurred direct materials cost of $57,600 and direct labor cost of $31,900. The actual manufacturing overhead cost incurred was $54,300. The manufacturing overhead cost applied to Work in Process was $53,600. The cost of goods manufactured for June was:
Answer:
the cost of goods manufactured is $154,600
Explanation:
The computation of the cost of goods manufactured is shown below:
= Opening work in process inventory + direct material cost + direct labor cost + manufacturing overhead cost applied - ending work in process inventory
= $35,000 + $57,600 + $31,900 + $53,600 - $23,500
= $154,600
Hence, the cost of goods manufactured is $154,600
There are a number of statistics computed to measure the price level, such as the GDP deflator and the CPI. The choice of which of these measures to use depends in many cases on the specific question in which you are interested. For each of the following situations, state whether the CPI or GDP deflator is a more appropriate measure to use and explain why the statistic is preferred.
Question Completion:
a. You are interested in looking at the impact of higher prices of imported oil in the overall cost of living.
b. The government is interested in whether increases in defense spending are affecting the price level.
c. An economic consulting firm is investigating the impact on the aggregate price level of more computers and electronic technology used in production.
Answer:
The GDP Deflator and the CPI
a. The CPI is used here, as its measure is not restricted to domestically produced goods and services.
b. The GDP Deflator is more appropriate here. Defense spending is not related to consumer goods and services but to government spending, which is a component of the GDP.
c. The GDP Deflator is more appropriate with this investigation. Computers and electronic technology used in production relate to business Investments, which are a component of the GDP and are not part of consumer goods and services or a component of the CPI.
Explanation:
The GDP deflator is exclusively used to measure the prices of all goods and services produced domestically in an economy and is based on the nominal or real GDP. On the other hand, the CPI (Consumer Price Index) is used to measure the weighted average prices of a basket of consumer goods and services, whether produced domestically or imported.
The classic supply chain approach has been based on
forecasting which of the following parts of future
inventory using statistical trending?
Transfer
Demand
olololo
Lifecycle
Safety stock
Answer:
Demand
Explanation:
The classic supply chain approach statistics refers to data regarding past suppliers or sales through the distribution channels. A business can use this information to analyze sales trends. Once the sale trends are determined, future demand for products can be estimated. The business uses historical data from its supply chain to predict future sales and demand.
Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2018 of a circuit flaw in an amplifier that poses a potential fire hazard. An intense investigation indicated that a product recall is virtually certain, estimated to cost the company $7.5 million. The fiscal year ends on December 31. Required: 1. Should this loss contingency be accrued
Answer and Explanation:
According to the given situation, the contingent liability should be probable and estimated so the cost of the warranty i.e. loss contingency would be accrued and the same would be recorded and reported depend upon the predicted amounts
hence, the same would be considered and relevant too
Presented below is the income statement of Cowan, Inc.: Sales revenue $380,000 Cost of goods sold 225,000 Gross profit $155,000 Operating expenses 95,000 Income before income taxes 60,000 Income taxes 24,000 Net income $36,000 In addition, the following information related to net changes in working capital is presented: Debit Credit Cash $12,000 Accounts receivable 25,000 Inventories $19,400 Salaries payable (operating expenses) 8,000 Accounts payable 14,000 Income taxes payable 3,000 The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $2,600. Instructions Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows: (a) using the indirect method. (b) using the direct method.
Answer:
NET CASH FLOW FROM OPERATING ACTIVITY INDIRECT METHOD
Cowan Inc.
Statement of cash flow (partial)
Indirect Method
Cash Flows from Operating Activities:
NET INCOME $36,000
Adjustment of non cash expenditure:
Depreciation $16,700
Operating profit before working capital changes $52,0700
ADJUSTMENTS FOR WORKING CAPITAL CHANGES:
INCREASE IN ACCOUNT RECEIVABLE ($25,000)
DECREASE IN INVENTORY $19,400
INCREASE IN ACCOUNT PAYABLE $14,000
DECREASE IN SALARY PAYABLE ($8,000)
DECREASE IN INCOME TAX PAYABLE ($3,000)
INCREASE IN DEFERRED TAX LIABILITY $2,600
NET CASH FROM OPERATING ACTIVITY $52,700
Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 630,000 $ 408,000 $ 102,000 $ 48,000 $ 30,000 $ 42,000 Percent uncollectible 1 % 2 % 5 % 7 % 10 % Exercise 7-9 Percent of receivables method LO P3 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $13,200 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2,200 debit.
Answer:
A. $14,820
B. Dr Bad Debt Expense $1,620
Cr Allowance for Doubtful Accounts $1,620
C. Dr Bad Debt Expense $17,020
Cr Allowance for Doubtful Accounts $17,020
Explanation:
a. Calculation to Estimate the balance of the Allowance for Doubtful Accounts
Using this formula
Balance of the Allowance for Doubtful Accounts=Account Receivable *Percentage Uncollectible
Let plug in the formula
Account Receivable* Percentage Uncollectible = Balance of the Allowance for Doubtful Accounts
Not due $408,000*1%=$4,080
1 to 30 $102,000*2%=$2,040
31 to 60 $48,000*5%=$2,400
61 to 90 $30,000*7%=$2,100
Over 90 $42,000*10%=$4,200
Balance of the Allowance for Doubtful Accounts $14,820
($4,080+$2,040+$2,400+$2,100+$4,200)
b. Preparation of the adjusting entry to record Bad Debts Expense
Dr Bad Debt Expense $1,620
($14,820-$13,200)
Cr Allowance for Doubtful Accounts $1,620
(Being to record Bad Debts Expense)
c. Preparation of the adjusting entry to record bad debts expense
Dr Bad Debt Expense $17,020
($14,820+$2,200)
Cr Allowance for Doubtful Accounts $17,020
(Being to record Bad Debts Expense)
Assume that in 2018, the first edition of a comic book was sold at auction for $762,400. The comic book was originally sold in 1938 for $.05. For this to have been true, what was the annual increase in the value of the comic book
Answer:
See below
Explanation:
The above is calculated using;
A = P(1 + r/100)^n
Where
A = Future value
P = Present value
r = rate of interest
n = time period
762,400 = 0.05(1 + r/100) ^ 80
(762,400/0.05)^(1/80) = 1 + r/100
A water resources engineer is trying to run a cost-benefit analysis for a project. They need to first decide on the planning period (the benefits should be calculated over N years, and N should be determined). If N is too large, then the future benefits in those years (e.g. 70 years from now) will have a very low present value. Therefore, the engineer would like to cut off the planning period after a point when the present equivalent of benefits becomes less than 6.25% of that future benefit. If the interest rate is 8%, use the rule of 72 to determine the duration of the planning period (N).
Answer:
N = 36 years
Explanation:
Solution:
According to the 72 rule, present sum doubles in value, if the product of interest rate in percent and number of compounding period is 72.
So, We can say for every 9 years at 8 percent = 72 = present sum will be doubled.
Similarly, it will be doubled at 18 years., then 27 years, then 36 years and so on.
SO,
We need to find the P/F ratio, for the end of 0 years first.
Formula = (P/F, i, n) = [tex](1 + i)^{-n}[/tex]
here,
i = 8%
n = 0 years.
P/F = [tex](1 + 0.08)^{-0}[/tex] (Anything power zero = 1)
So, similarly, calculate this P/F ratio for every 9 years till present equivalent of benefits becomes less than 6.25% of that future benefit.
find the P/F ratio, for the end of 9 years:
Formula = (P/F, i, n) = [tex](1 + i)^{-n}[/tex]
here,
i = 8%
n = 9 years.
P/F = [tex](1 + 0.08)^{-9}[/tex]
P/F = 0.50
Amount = 2x
find the P/F ratio, for the end of 18 years:
Formula = (P/F, i, n) = [tex](1 + i)^{-n}[/tex]
here,
i = 8%
n = 18 years.
P/F = [tex](1 + 0.08)^{-18}[/tex]
P/F = 0.25
Amount = 4x
find the P/F ratio, for the end of 27 years:
Formula = (P/F, i, n) = [tex](1 + i)^{-n}[/tex]
here,
i = 8%
n = 27 years.
P/F = [tex](1 + 0.08)^{-27}[/tex]
P/F = 0.13
Amount = 8x
find the P/F ratio, for the end of 36 years:
Formula = (P/F, i, n) = [tex](1 + i)^{-n}[/tex]
here,
i = 8%
n = 36 years.
P/F = [tex](1 + 0.08)^{-36}[/tex]
P/F = 0.06 = P/F ratio percentage = 6%
Amount = 16x
Hence, N = 36 years because it is the value nearest to 6.25% required
find the P/F ratio, for the end of 45 years:
Formula = (P/F, i, n) = [tex](1 + i)^{-n}[/tex]
here,
i = 8%
n = 45 years.
P/F = [tex](1 + 0.08)^{-45}[/tex]
P/F = 0.03
Amount = 32x
Use a piece of scrap paper to prepare a cost of Goods Manufactured from the following numbers: Beginning Direct Raw Materials -$69,000 Direct Raw Materials Purchases-$92,000. Direct Raw Materials Ending Inventory- $8000 Direct Labor-$25,000. Factory Overhead $37,000. Beginning work in process inventory $22,000. Ending Work in process Inventory $23,500 What are the total manufacturing costs for this statement
Answer:
the total manufacturing cost is $215,000
Explanation:
The computation of the total manufacturing cost is shown below:
= Direct material used + direct labor cost + manufacturing overhead cost
= $69,000 + $92,000 - $8,000 + $25,000 + $37,000
= $215,000
Hence, the total manufacturing cost is $215,000
We simply applied the above formula
Your company manufactures and sells a variety of personal care products such as hair dryers and curling irons. Every hair dryer is properly labeled and contains safety precautions against misuse. Patrick purchases an SF9000 hair dryer from your company website. After a month of use where the hair dryer functions properly, Patrick accidentally drops it in water causing him an electric shock. Patrick sues your company for breach of the implied warranty of merchantability. Discuss whether the implied warranty of merchantability exists for this product and whether it has been violated in this situation.
Answer:
Product Implied Warranty
According to the Uniform Commercial Code, a product warranty guarantees that a product will work when used for its intended purposes. There are two key types of implied warranties: merchantability and fitness. The implied warranty of merchantability states that a product will meet reasonable expectations of the buyer. The implied warranty of fitness means that the product will meet the buyer's intended use.
Based on the above, we can conclude that the implied warranty of merchantability actually exists for the hair dryer. However, Patrick clearly violated it in this situation through the accident of dropping it in water.
Having thus violated the warranty, he cannot reasonably recover any damages from the company.
Explanation:
a) Facts of the case:
1. Every hair dryer is properly labeled and contains safety precautions against misuse.
2. The SF9000 hair dryer that Patrick purchased functioned properly for a month.
3. Patrick accidentally drops the hair dryer in water, causing him an electric shock.
4. Patrick sues for breach of the implied warranty of merchantability.
8. Effective Yield. A US investor obtain British pounds when the pound is worth $1.50 and invest in a one year-money market security that provides a yield of 5 percent (in pounds). At the end f one year, the investor converts the proceeds from investment to dollars at the prevailing spot rate of $1.52 per pound. Calculate the effective yield.
Answer:
6.4%
Explanation:
money invest = $1.50 or 1£
interest earned = 1£ x 5% = 0.05£
total returns = 1.05£
now we convert them back to dollars = 1.05£ x $1.52/£ = $1.596
effective yield = (total return - initial investment) / initial investment = ($1.596 - $1.50) / $1.50 = 6.4%
The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.85, without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change
Answer:
4.50%
Explanation:
Note: Question is incomplete but very similar one is attached as picture below
Current ROE = Net Income / Equity = $21,000 / $280,000 = 7.50%
Current Inventory = $210,000
Target Current ratio = 2.70
1. Current assets at target Current ratio = Current Liabilities * Target current ratio = $70000 * 2.70 = $189,000
2. Reduction in Inventories = Present Current assets - Current assets under target current ratio
Reduction in Inventories = $14000 + $70000 + $210000 - $189000
Reduction in Inventories = $105000
3. Reduction on common equity using sale of inventory = Current Equity - reduction
Reduction on common equity using sale of inventory = $280,000 - $105,000
Reduction on common equity using sale of inventory = $175,000
4. Change in ROE = New ROE - Current ROE
Change in ROE = [21000 / 175000] - 7.50%
Change in ROE = 12% - 7.50%
Change in ROE = 4.50%
A company purchased a new delivery van at a cost of $46,000 on July 1. The delivery van is estimated to have a useful life of 4 years and a salvage value of $3,400. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31?
Answer:
The amount of depreciation expense that will be recorded for the van during the first year ended December 31 is $5,325.
Explanation:
Since the company uses the straight-line method of depreciation, the annual depreciation expenses can first be calculated using the following formula:
Annual depreciation expense = (Cost of the asset - Salvage value) / Useful life ............ (1)
Where;
Cost of the asset = $46,000
Salvage value = $3,400
Useful life = 4
Substituting the values into equation (1), we have:
Annual depreciation expense = ($46,000 - $3,400) / 4
Annual depreciation expense = $10,650
Since July 1 to December 31 is just half of the year, the amount of depreciation expense that will be recorded for the van during the first year ended December 31 is the halve of the annual depreciation expense that can be calculated as follows:
Depreciation expense to be recorded = Annual depreciation expense / 2 = $10,650 / 2 = $5,325
Assume sales are $14,570, cost of goods sold is $3,820, depreciation expense is $410, interest paid is $730, selling and general expenses are $960, dividends paid are $1,170, and the tax rate is 21 percent. What is the addition to retained earnings
Answer:
Amount added to retained earnings $5,663.50
Explanation:
The computation of the addition to the retained earning is shown below:
Sales $14,570
Less: Cost of goods sold -$3,820
Less: Depreciation -$410
Less: Interest paid -$730
Less: Selling and administration expenses -$960
Profit Before Tax $8,650
Less: Tax at 21% -1,816.50
Profit After tax $6,833.50
Less: Dividend paid -$1,170
Amount added to retained earnings $5,663.50
What is the value of a building that is expected to generate fixed annual cash flows of $13,800 every year for a certain amount of time if the first annual cash flow is expected in 3 years from today and the last annual cash flow is expected in 8 years from today and the appropriate discount rate is 6.8 percent
Answer:
the present value is $58,026
Explanation:
The computation of the value of the building is shown below
Present value = Cash flows × Present value of discounting factor( interest rate%,time period)
= $13,800 ÷ 1.068^3 + $13,800 ÷ 1.068^4 + $13,800 ÷ 1.068^5 + $13,800 ÷ 1.068^6 + $13,800 ÷ 1.068^7 + $13,800 ÷ 1.068^8
= $58,026
Hence, the present value is $58,026