Answer:
Contribution Margin Income Statement for the year end MM DD, YY
$ $
Sales revenue ($100 per unit) 66,000
Less: Variable Cost
Less cost of goods sold ($56 per unit) 36,960
Commissions expense ($6 per unit) 3,960
Shipping expense ($3 per unit) 1,980
42,900
Contribution Margin 23,100
Less: Fixed Cost
Salaries expense 7,900
Advertising expense 5,800
13,700
Net Income 9,400
To help in music class I will remember the phrase ‘every good boy does fine,’ since the first letter in each word is the note on the line in this scale," Douglas thinks. This is best described as an example of _______ knowledge.
A) person
B) strategy
C) achievement
D) task
Answer:
B
Explanation:
Strategy knowledge is a knowledge that shows one's capability to memorize a skill or what to do to achieve a goal.
Under the Fair Credit Reporting Act of 1970 (FCRA), consumers can stop financial institutions from sharing their credit report or credit applications with affiliates. True False
Answer:
True
Explanation:
The Fair Credit Reporting Act of 1970 (FCRA) was enacted as a legislation by the U.S. Federal Government to ensure accuracy, fairness, and privacy of consumer information which consumer reporting agencies have in their files. The aim is to ensure that inaccurate information are not intentionally and/or negligently included in the credit report of consumer reporting agencies.
Although, initially when FRCA was passed in 1970, customers does not have the option of preventing sharing of information about them. However, when FCRA was amended in 1996, it allows companies to share among their affiliates different data collected on their customers subject to the provision that customers are allowed to prevent the sharing of the information.
Therefore, under the Fair Credit Reporting Act of 1970 (FCRA), consumers can stop financial institutions from sharing their credit report or credit applications with affiliates.
I wish you the best.
For each of the following, compute the future value (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.): Present Value $2,328 Years 11 Interest Rate 13% Future Value - ?
Answer:
$8,929.88
Explanation:
The computation of the future value is shown below:
Future value = Present value × (1 + interest rate)^number of years
where,
Present value = $2,328
Rate = 13%
Number of years = 11
So, the future value
= $2,328× (1 + 0.13%)^11
= $2,328 × 3.8358611506
= $8,929.88
Simply we use the above formula to determine the future value
In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe. Historians estimate that the price he paid for the island was about $24 worth of goods, including beads, trinkets, cloth, kettles, and axe heads. Many people find it laughable that Manhattan Island would be sold for $24, but you need to consider the future value (FV) of that price in more current times. If the $24 purchase price could have been invested at a 5% annual interest rate, what is its value as of 2012 (386 years later)?
Answer:
The value of the island as of 2012=$3,624,771,902
Explanation:
To determine the future value of the 1626 investment, use the expression below;
F.V=P.V(1+r)^n
where;
F.V=future value of investments
P.V=present value of the investment
r=annual interest rate
n=number of years
In our case;
F.V=unknown
P.V=$24
r=5%=5/100=0.05
n=386 years
Replacing;
F.V=24(1+0.05)^386
F.V=24(1.05)^386
F.V=$3,624,771,902
The value of the island as of 2012=$3,624,771,902
Final answer:
The value of $24 invested at a 5% annual interest rate over 386 years is approximately $3,569,590.55.
Explanation:
To find the future value of $24 invested at a 5% annual interest rate over 386 years, we can use the formula for compound interest:
Future Value (FV) = Present Value (PV) * (1 + interest rate)^number of periods
Given that PV = $24, interest rate = 5% = 0.05, and number of periods = 386, we can substitute these values into the formula:
FV = $24 * (1 + 0.05)³⁸⁶
Calculating this equation, we find that the value of $24 as of 2012 is approximately $3,569,590.55.
Assume that you are the auditor of Weller, Inc. and that you have been asked to explain the appropriate accounting and related disclosure necessary for each of these items.
a. The company decided that, for the sake of conciseness, only net income should be reported on the income statement. Details as to revenues, cost of goods sold, and expenses were omitted.b. Equipment purchases of $170,000 were partly financed during the year through the issuance of a $110,000 notes payable. The company offset the equipment against the notes payable and reported plant assets at $60,000.c. Weller has reported its ending inventory at $2,100,000 in the financial statements. No other information related to inventories is presented in the financial statements and related notes.d. The company changed its method of valuing inventories from weighted-average to FIFO. No mention of this change was made in the financial statements.
Answer:
(a) It is true that details of revenues ,cost of goods sold and expenses ought to be in the balance statement, but was not always so ,. In the past only net income was recorded but .Accounting Principles has evolved over the years.
(b) Notes payable should be recorded as liability(because it is a form of cash Outflow) and equipments are assets. Offsetting is can be used when some assets are used to pay off liabilities.
(c) According to General Accepted Accounting Principles, the inventory amounts are stated and the method used in determining cost (LIFO, FIFO, average cost, etc.) should also be stated. Methods used in determining cost should be emphasized and alternatives should be made known as well.
(d)In accounting principles, changes in financial statements should be made known. Contrariwise, this will lead to a false financial statement. Financial statements ought to be compared with that of previous years to substantiate its usefulness.
Explanation:
The company decided that, for the sake of conciseness, only net income should be reported on the income statement. Details as to revenues, cost of goods sold, and expenses were omitted
(a) It is true that details of revenues ,cost of goods sold and expenses ought to be in the balance statement, but was not always so ,. In the past only net income was recorded but .Accounting Principles has evolved over the years.
b. Equipment purchases of $170,000 were partly financed during the year through the issuance of a $110,000 notes payable. The company offset the equipment against the notes payable and reported plant assets at $60,000.
(b) Notes payable should be recorded as liability(because it is a form of cash Outflow) and equipments are assets. Offsetting is can be used when some assets are used to pay off liabilities.
c. Weller has reported its ending inventory at $2,100,000 in the financial statements. No other information related to inventories is presented in the financial statements and related notes.
(c) According to General Accepted Accounting Principles, the inventory amounts are stated and the method used in determining cost (LIFO, FIFO, average cost, etc.) should also be stated. Methods used in determining cost should be emphasized and alternatives should be made known as well.
d. The company changed its method of valuing inventories from weighted-average to FIFO. No mention of this change was made in the financial statements.
(d)In accounting principles, changes in financial statements should be made known. Contrariwise, this will lead to a false financial statement. Financial statements ought to be compared with that of previous years to substantiate its usefulness.
A column in the New York Times noted that during the housing boom that ended in 2006: open double quote"Global banks had loaded up on these supposedly safe securities, and were at risk of becoming insolvent when their true value became known. Some banks blew up; others were bailed out.
Source: Neil Irwin, open double quote"What 'The Big Short' Gets Right, and Wrong, About the Housing Bubble, close double quote" New York Times ,December 22, 2015.
Which of the following are the securities the columnist is referring to?
A.
Mortgage-backed securities.
B.
Commercial paper.
C.
Tax-deferred annuities.
D.
Government bonds.
What caused the value of these securities to decline?
A.
Lower interest rates.
B.
Recession.
C.
Declining property values.
D.
Inflation.
Answer:
A.
C.
Explanation:
A. Mortgage-backed securities.
C. Declining property values.
The housing bubble caused the values of mortgaged properties to go down during the financial crisis of 2007-08. the banks thought ther were investing in safe securities since the loans were mortgaged against properties.
When assessing the reliability of a measure, one might be interested in knowing how scores on the measure at one time relate to scores on the same measure at another time. This refers to:
A. correlation coefficient.
B.test-retest reliability.
C. retest validity.
D. test utility.
Answer:
B.test-retest reliability
Explanation:
Test-retest reliability is used when measuring the the consistency or relationship between the scores of two tests of the same variable, taken at different times.
It involves comparing the score on the first test taken earlier, with the score on a second test taken later.
The measure is considered to be reliable if there is no significant difference between the two test scores.
Using an MACRS depreciation schedule having a class life of 5 yr, (a) Compute the cash flows. (b) At an effective interest rate of 20%, determine the net present value. (c) Is the investor’s rate of return less than or greater than 20%? Explain. (d) Compute the investor’s rate of return.
Answer:
Straight-Line
Depreciation MACRS
Depreciati
Year 1 $ 10,000 $ 20,000
Year 2 20,000 32,000
Year 3 20,000 19,200
Year 4 20,000 11,520
Year 5 20,000 11,520
Year 6 10,000 5,760
Totals $ 100,000 $ 100,000
Compute the net present value of the investment if MACRS depreciation is used. Use 10% as the discount rate.
Net income after tax depreciation Net Cas flow
(1) (2) (3)=(1)+(2)
$ 100,000
$100,000
$32,240.00 $20,000.00 $52,240.00
$24,800.00 $32,000.00 $56,800.00
$32,736.00 $19,200.00 $51,936.00
$37,497.00 $11,520.00 $49,017.60
$37,497.00 $11,520.00 $49,017.60
$41,068.00 $5,760.00 $49,017.60
Compute the net present value:
Year Net cas flow PVF@20% Present Value
(1) (2) (3)=(1)x(2)
0 $100,000.00 1 $100,000
1 $52,240.00 0.909 $47,486.16
2 $56,800.00 0.826 46,916.80
3 $51,936.00 0.751 $39,003.94
4 $49,017.60 0.683 $33,479.02
5 $49,017.60 0.621 $30,439.33
6 $46,828.80 0.564 $26,411.44
NPV $123,739.29
Explanation:
You book a hotel online, and the registration process is clear and streamlined. This is an example of a(n) ______________ process that has _______________.
Answer:
The correct word for the blank space is: automated; high value to customers.
Explanation:
Most online operations nowadays are automated which implies not having an employee behind a computer to satisfy customers' needs since they are too basic that can be all processed with the use of a server. However, the automation does not imply consumers undervalue the help obtained. Otherwise, the automation helps the process be faster which ends up representing high value for most customers.
Fran is the project manager in her organization. She reports to a PMO (project management office) that takes control of the project and manages the project. Fran is a part of what type of PMO
Answer:
Directive PMO
Explanation:
A project management office(PMO) refers to creation of groups and departments within an organization so as to define standards and to ensure those standards are met.
In a directive form of project management office, it completely takes over projects and allots resources, and assigns project managers to projects.
In such a form of Project management office, the project managers are supposed to report to such directive offices.
In the given case, since Fran reports to such a PMO form which assumes control of the projects and manages the project, this is a directive form of project management.
Fran is part of a controlled PMO, which directly manages projects in an organization. This PMO type differs from others, such as supportive or controlling, in its degree of authority over projects. Effective project management involves comprehensive knowledge and skills across five process groups, as defined by PMI.
Explanation:Based on the description provided, Fran operates within a controlled PMO, which is one type of Project Management Office (PMO) structure. In a controlled or directive PMO, the PMO maintains control over projects and manages them directly. This is in contrast to other types of PMOs such as supportive, where the PMO plays a consultative role, or controlling, where the PMO provides governance and enforces standards and processes without managing the projects themselves.
The Project Management Institute (PMI) defines project management as an endeavor that requires application of knowledge, skills, tools, and techniques across various activities to meet or exceed stakeholder needs and expectations. The PMBOK Guide, which is a well-known authoritative text, outlines the five process groups and nine knowledge areas integral for effective project management. These groups and areas collectively underpin the successful management of a project, ensuring all aspects are covered, including project integration management and project scope management.
In each of the following independent cases the company closes its books on December 31.
1.Sanford Co. sells $500,000 of 10% bonds on March 1, 2014. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2017. The bonds yield 12%. Give entries through December 31, 2015.
2. Titania Co. sells $400,000 of 12% bonds on June 1, 2014. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2018. The bonds yield 10%. On October 1, 2015, Titania buys back $120,000 worth of bonds for $126,000 (includes accrued interest). Give entries through December 1, 2016.
For the two cases prepare all of the relevant journal entries from the time of sale until the date indicated. Use the effective-interest method for discount and premium amortization (construct amortization tables where applicable). Amortize premium or discount on interest dates and at year-end. (Assume that no reversing entries were made.)
Answer:
cash 472,088 debit
discount on BP 27,912 debit
bonds payable 500,000 credit
--to record issuance--
interest expense 28325.29
discount on BP 3325.29
cash 25000
--to record first interest payment
interest expense 19,016.53
discount on BP 2,349.86
interest payable 16,666.67
--to record accrued interest Dec 31th--
Titania:
Cash 532,316.06
Bonds payable 500,000
Premium on BP 32,316.06
--to record issuance--
interest expense 26615.8
Premium on BP 3384.2
cash 30000
--first interest payment--
interest expense 4,407.77
Premium on BP 592.23
interest payable 5,000
--to record accrued interest Dec 31th--
Explanation:
Sanford Co.Present value at market rate:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 25,000.000
time 7
rate 0.06
[tex]25000 \times \frac{1-(1+0.06)^{-7} }{0.06} = PV\\[/tex]
PV $139,559.5360
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 500,000.00
time 7.00
rate 0.06
[tex]\frac{500000}{(1 + 0.06)^{7} } = PV[/tex]
PV 332,528.56
PV c $139,559.5360
PV m $332,528.5568
Total $472,088.0928
then, we solve for the first interest payment
carrying value x market rate
472,088.09 x 0.06 = 28325.29
we compare with the cash outlay and solve for the amortization
28,325.29 - 25,000 = 3,325.29
At year-end we also solve for the accrued interest
(472,088.09 + 3,325.29) x 0.06 x 4/6 = 19,016.53
accured payable:
500,000 x 5% x 4/6 = 16,666.67
amortization 19,016.53 - 16,666.67 = 2,349.86
Titania[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 30,000.000
time 8
rate 0.05
[tex]30000 \times \frac{1-(1+0.05)^{-8} }{0.05} = PV\\[/tex]
PV $193,896.3828
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 500,000.00
time 8.00
rate 0.05
[tex]\frac{500000}{(1 + 0.05)^{8} } = PV[/tex]
PV 338,419.68
PV c $193,896.3828
PV m $338,419.6810
Total $532,316.0638
interest first payment:
532,316.06 x 0.05 = 26615.8
then, compare wit hteh cash outlay of 30,000
30,000 - 26,615.8 = 3384.2
accrued interest:
(532,316.06 - 3,384.2) X 0.05 x 1/6 = 4,407.77
payable 30,000 x 1/6 = 5,000
amoritzation 5000 - 4,407.77 = 592.23
Which of these is the more meaningful measure of leadership effectiveness? Analytical ability Subject matter knowledge Technical skill Emotional intelligence
I believe it would be emotional intelligence
The measure of Leadership is Emotional intelligence, it is the ability to understand and manage one's own emotions, as well as the emotions of others.
The more meaningful measure of leadership effectiveness is emotional intelligence. Leaders who have a high level of emotional intelligence are better equipped to communicate effectively with their team members, manage conflicts, and build strong relationships based on trust and mutual respect. They are also more likely to be adaptable, resilient, and able to handle stress and pressure, which are essential qualities for effective leadership.
Therefore, the correct answer is Emotional intelligence.
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Cushenberry Corporation had the following transactions.1. Sold land (cost $11,360) for $14,200.2. Issued common stock at par for $18,900.3. Recorded depreciation on buildings for $15,730.4. Paid salaries of $8,080.5. Issued 1,170 shares of $1 par value common stock for equipment worth $8,420.6. Sold equipment (cost $10,300, accumulated depreciation $7,210) for $1,236.
Explanation:
The journal entries are shown below:
1. Cash A/c Dr $14,200
To Gain on land A/c $2,840
To Land $11,360
(Being the land is sold)
2. Cash A/c Dr $18,900
To Common stock A/c $18,900
(Being the common stock is issued for cash)
3. Depreciation Expense A/c Dr $15,730
To Accumulated Depreciation - Buildings A/c $15,730
(Being depreciation expense is recorded)
4. Salaries expense A/c Dr $8,080
To Cash A/c $8,080
(Being the salaries expense is paid for cash)
5. Equipment A/c Dr $8,420
To Common stock A/c $1,170
To Additional paid-in capital in excess of par value A/c $7,250
(Being the equipment is purchased)
6. Cash A/c Dr $1,236
Accumulated depreciation - Equipment A/c Dr $7,210
Loss on sale of equipment A/c Dr $1,854
To Equipment A/c $10,300
(Being the equipment is sold)
What are the environmental and firm-specific drivers that are driving Alpaca Luxe to explore international markets?
Answer:
The economy downturn.
Explanation:
An economic crisis is a factor that can lead companies to seek the internationalization of their activities, in order to find new opportunities in new markets.
One factor that influenced this point is the appreciation of the Dollar in underdeveloped economies, which is configured as a commercial policy to encourage the internationalization of American companies. With a strong currency, companies are able with less resources to settle in other locations with cheaper labor, government incentives and less bureaucratization to implement companies in these countries.
You are graduating from college at the end of this semester and have decided to invest $4 comma 500 at the end of each year into a Roth IRA (a retirement investment account that grows tax free and is not taxed when it is liquidated) for the next 30 years. If you earn 6 percent compounded annually on your investment of $4 comma 500 at the end of each year, how much will you have when you retire in 30 years? How much will you have if you wait 10 years before beginning to save and only make 20 payments into your retirement account?
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
You decided to invest $4,500 at the end of each year earning 6 percent compounded annually.
We need to use the following formula to calculate the final value of the investment:
FV= PV*(1+i)^n
A) n= 30 years
FV= 4,500*(1+0.06)^30= $25,845.71
B) The investment is made for 20 years.
FV= 4,500*1.06^20= $14,432.11
The future value of the investment after contributing $4,500 annually at an interest rate of 6% compounded annually for 30 years is $391,284.69. If you wait 10 years before starting to save and only make 20 payments, the future value of the investment would be $131,199.17.
Explanation:To calculate the future value of the investment, we can use the formula for the future value of an ordinary annuity:
FV = PMT x ((1 + r)^n - 1) / r
Using this formula, we can calculate the future value of the investment to be $391,284.69 after 30 years of contributing $4,500 annually at an interest rate of 6% compounded annually.
If you wait 10 years before starting to save and only make 20 payments, you can calculate the future value using the same formula:
FV = PMT x ((1 + r)^n - 1) / r
Using this formula, the future value of the investment would be $131,199.17 after 20 years of contributing $4,500 annually at an interest rate of 6% compounded annually.
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A middle-class customer (target) base in a region is most concerned with quality and price of products. Which of the following would be considered a best value proposition for the customers?A. a company that identifies unique features of its products without comparing it with a rival's products
B. a company that offers copycat products at low cost but an average quality compared torivalsC. a company that offers the same quality of products as rivals but at a high cost based ongreater market share and higher brand value
Answer:
The correct answer is letter "B": a company that offers copycat products at low cost but an average quality compared to rivals.
Explanation:
As the consumer is focused both on the quality of the product and price, the best value proposition for the product that is likely to purchase must be the result of the combination of those two factors. Then, if a company offers an average quality product at a lower cost, is highly possible to obtain the consumer's preference.
Suppose a monopoly can separate its customers into two groups. If the monopoly practices price discrimination, it will charge the lower price to the group with: the higher price elasticity of demand. the lower price elasticity of demand. the fewer close substitutes. The answer cannot be determined with the information given.
Answer:
the higher price elasticity of demand
Explanation:
A monopoly is when there is only one firm operating in an industry.
Price discrimination is when a producer sells the same good for different prices in different markets.
Elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Demand is elastic when a change in price has greater effect on the quantity demanded.
A monopoly would charge the lower price for customers with a higher elasticity of demand because if price is high consumers would reduce the quantity demanded and the revenue of the monopoly firm would fall.
I hope my answer helps you.
Answer:
The correct answer is letter "A": the higher price elasticity of demand.
Explanation:
Elasticity is a measure of the reaction of a variable to fluctuations in another variable. It can describe to what degree a product or service's supply or demand, varies with the price of the goods or consumer income. Elasticity is calculated by dividing the percentage change in quantity demanded with the percentage change in price.
Thus, while allocating prices, a company should provide a lower price to a sector with high elasticity because that part of the market is prone to make big demand changes if the price varies abruptly.
Selected transactions for Indigo Corporation during its first month in business are presented below.
Sept. 1 Issued common stock in exchange for $18,300 cash
received from investors.
5 Purchased equipment for $8,540, paying $2,870 in . cash
and the balance on the account.
8 Performed services on account for $20,000.
14 Paid salaries of $3,200.
25 Paid $3,030 cash on the balance owed for equipment.
30 Paid $830 cash dividend
Instructions:
(a) Prepare a tabular analysis of the September transactions.
The column headings should be:
Cash + Accounts Receivable + Equipment = Accounts Payable + Common Stock Revenues Expenses Dividends.
For transactions affecting stockholders' equity, provide explanations in the right margin.
(b) Journalize the transactions. Do not provide explanations
(c) Post the transactions to T-accounts.
Answer:
a. See attached file.
b. Debit Cash 18,300
Credit Common Stock 18,300
Debit Equipment $8,540
Credit cash $2,870
Credit Accounts payable $5,670
Debit Accounts receivable $20,000
Credit Revenue $20,000
Debit salaries expense $3,200
Credit cash $3,200
Debit accounts payable $3,030
Credit Cash $3,030
Debit Dividends $830
Credit cash $830
c.
Cash
Debit Credit
18,300 2,870
3,200
3,030
830
18,300 9,930
8,370 Ending balance
Equipment
Debit Credit
8,540
Accounts payable
Debit Credit
3,030 5,670
2,640 (ending balance)
Common Stock
Debit Credit
18,300
Revenue
Debit Credit
20,000
Expenses
Debit Credit
3,200
Dividends
Debit Credit
830
Explanation:
a.
1-Sep Issuance of common stock from investor will result to an inflow of cash through the cash invested, So have to recognize cash received and credit common stock
8-Sep Based on matching principle, revenue will be recognized on the date of transaction whether collected or not.
14-Sep Payment of expenses will result to deduction to cash and increase expense account.
30-Sep Dividends is a deduction to Retained earnings
In some social dilemmas, when one member of a group may make a contribution to the general welfare of his or her group that makes other members feel that their contribution is unnecessary, it is called the Select one: a. easy-rider mechanism. b. sidecar mechanism. c. transit-rider syndrome. d. free-rider mechanism.
Answer:
The correct answer is letter "D": free-rider mechanism.
Explanation:
The free-rider mechanism refers to someone being able to get for less or even for free what others pay more for. The problem comes when individuals are unwilling to pay their fair share for something that most others pay for. This is more prevalent when talking about public goods.
On which financial statements would you look to find the total costs of merchandise that remains and the total that has been sold? Select one: A. Statement of cash flows and balance sheet B. Balance sheet and income statement C. Balance sheet and statement of cash flows D. Statement of stockholders' equity and balance sheet
Answer:
The answer is B. Balance sheet and income statement
Explanation:
Merchandise is an inventory. It is bought and sold.
We can get the total cost of merchandise that were sold and remained in income statement.
In income statement, this can be gotten from cost of sales(cost of goods sold). This tells us the total amount of goods that were sold and the closing/ending inventory tells us the total cost of merchandise remaining.
And in the balance sheet, we can get it under current asset. The balance of inventory tells us how much of merchandise remaining at a period.
Final answer:
The total costs of unsold merchandise is found on the balance sheet under inventory, while the total costs of merchandise sold are on the income statement under cost of goods sold (COGS). The correct financial statements to refer to are the balance sheet and the income statement. Option B is correct.
Explanation:
To find the total costs of merchandise that remains and the total that has been sold, you would look at the balance sheet and the income statement. The balance sheet provides a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time. The merchandise inventory, which represents the total costs of merchandise that remains unsold, is an asset and can be found on the balance sheet.
On the other hand, the income statement summarizes the company's revenues and expenses over a period, typically a year. The cost of goods sold (COGS), which includes the total costs of merchandise that has been sold during that period, appears on the income statement. Thus, the correct option from the provided selection is B: Balance sheet and income statement.
An ad in a newspaper reads: "AVAILABLE TODAY ONLY. FRIENDLY'S APPLIANCES. CLEARANCE SALE FOR ALL FLOOR ITEMS. 75% OFF RETAIL PRICES." Joan Ludwig arrived at Friendly's about one hour after it opened and there were no appliances left. Which of the following is true? a. Friendly's has breached a contract and owes damages to Joan. b. There is no breach of contract. c. Joan has no rights of recovery because the contract was required to be in writing. d. There was no contract, but Joan can recover on the basis of quasi contract. e. none of the above
Answer:
Correct answer is b, there is no breach contract
Explanation:
There is no breach contract happened because what Friendly did is just a mere advertisement published in a news paper. What happened is that, Friendly notify the customers that they will be having a clearance sale for all the floor items that they had. Mere advertisement is not yet in the stage of contract to sell and the advertiser is not bound for any liability in case the product is not available at the time the customer decided to buy the product.
Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.49 and the averagevariable expense per cup is $0.36. The average fixed expense per month in $1,300. An average of 2,100 cups are sold each month. What is the Cm Ratio for Coffee Klatch a. 1.319 b. 0.758 c. 0.242 d. 4.139
Answer:
The Cm Ratio for Coffee Klatch is b. 0.758
Explanation:
The contribution margin ratio is calculated by using following formula:
Contribution margin ratio = (Sales - Total Variable cost)/Sales
The average selling price of a cup of coffee is $1.49 and the average variable expense per cup is $0.36. An average of 2,100 cups are sold each month.
Total sales = $1.49 x 2,100 = $3,129
Total Variable cost = $0.36 x 2,100 = $756
Contribution margin ratio = ($3,129 - $756)/$3,129 = 0.758
Final answer:
The CM Ratio for Coffee Klatch is calculated by dividing the contribution margin per cup by the selling price per cup, resulting in a CM Ratio of 0.758.
Explanation:
The CM (Contribution Margin) Ratio is calculated by dividing the contribution margin by the selling price. To find Coffee Klatch’s CM Ratio, we first need to calculate the contribution margin per cup of coffee, which is the selling price ($1.49) minus the variable expense per cup ($0.36). The contribution margin per cup is therefore $1.49 - $0.36 = $1.13. Next, we calculate the CM Ratio by dividing the contribution margin per cup by the selling price per cup: $1.13 / $1.49 = 0.758, which makes option b (0.758) the correct answer.
Given the following information for a retailer, compute the cost of goods sold. Ending inventory. . . . . . . . . . . . . . . . . $5,500 Website maintenance. . . . . . . . . . . . . $7,200 Revenues. . . . . . . . . . . . . . . . . . . . . . . $65,000 Freight-in. . . . . . . . . . . . . . . . . . . . . . . $3,200 Import duties. . . . . . . . . . . . . . . . . . . . $1,600 Marketing expenses. . . . . . . . . . . . . $14,000 Delivery expenses. . . . . . . . . . . . . . . . $1,400 Purchases. . . . . . . . . . . . . . . . . . . $44,000 Beginning inventory. . . . . . . . . . . . . . . $4,200
Answer:
$47,500
Explanation:
Given that,
Ending inventory = $5,500
Website maintenance = $7,200
Revenues = $65,000
Freight-in = $3,200
Import duties = $1,600
Marketing expenses = $14,000
Delivery expenses = $1,400
Purchases = $44,000
Beginning inventory = $4,200
Cost of goods available for sale:
= Beginning inventory + Purchases + Freight-in + Import duties
= $4,200 + $44,000 + $3,200 + $1,600
= $53,000
Cost of goods sold:
= Cost of goods available for sale - Ending inventory
= $53,000 - $5,500
= $47,500
The remaining balance on an amortized loan is paid down evenly over the life of the loan. For example, if you borrow $20,000 today on a 60-month amortized loan then your remaining balance reduces by 20,000/60.
O True
O False
Answer:
O True
Explanation:
Amortization is the gradual reduction in a value or balance of anything over a specified period. Evenly over life amortization of loan is the distribution of outstanding amount over remaining life / period. in this example $20,000 is amortized over 60 months which is 20,000 / 60 = $333.33 per month. So the statement is True.
The statement is False. The remaining balance on an amortized loan is not paid down evenly over the life of the loan.
An amortized loan is structured so that the borrower makes regular, equal payments over the life of the loan. However, the composition of each payment changes over time. Early in the loan term, a larger portion of each payment goes towards interest, and a smaller portion goes towards the principal. As the loan progresses, the portion of each payment that goes towards the principal increases, while the portion that goes towards interest decreases.
Amortization schedules show this shift in payment composition over time.For example, in the first month of a $20,000 loan with a fixed rate, a significant part of the payment will be interest.Only a small portion will reduce the principal.By the end of the loan term, most of the payment will be reducing the principal, and very little will be going towards interest.
Thus, the loan balance is not reduced evenly (e.g., 20,000/60 per month for a 60-month loan) but varies with each payment due to the changing interest and principal components.
A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit. The following cost information describes the two alternatives Process A Process BFixed Cost $500,000 $750,000Variable Cost per Unit $25.00 $23.00The break-even volume for Process A isa. 50,000 unitsb. 62,500 unitsc. 30,000 unitsd. 20,000 units
Answer:
a. 50,000 units
Explanation:
Breakeven point is the units required to be sold for the total cost to be equivalent to the sales. As such, break even is the point where profit/loss is nil.
Given information about product A;
Fixed cost = $500,000
variable cost per unit = $25
Selling price per unit = $35
Breakeven in units = fixed cost/(selling price per unit - variable cost per unit)
= 500,000/(35 - 25)
= 50,000 units
Final answer:
The break-even volume for Process A, where the selling price is $35.00 per unit, the fixed cost is $500,000, and the variable cost per unit is $25.00, is 50,000 units. Option a is correct.
Explanation:
The question relates to break-even analysis, which is a concept in cost accounting used to determine the number of units a company must sell at a given price to cover all its costs. To find the break-even volume for Process A, you will need to calculate the point where total revenue equals total costs, which is when the profit is zero. Using the formula:
Break-even Volume = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)
For Process A, the break-even volume calculation would be:
$500,000 / ($35 - $25) = 50,000 units
So the break-even volume for Process A is 50,000 units.
So, option a is correct.
A company pays its employees $9,100 every two weeks ($650/day). The current two- week pay period ends on December 26, 2018, and employees are paid $9,100. The next two-week pay period ends on January 9, 2019, and employees will be paid $9,100. Record the adjusting entry on December 31, 2018. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view general journal Journal Entry Worksheet 1. Record the adjusting entry on December 31, 2018. 2. General Journal Debit Credit Date December 31 2018 Enter debits before credits
Explanation:
The adjusting entry is shown below:
On December 31,2018
Salaries and wages expense A/c Dr $3,250
To Salaries and wages payable A/c $3,250
(Being the salaries and wages expense is recorded)
The computation is shown below:
= Per day wages × number of days
= $650 × 5 days
= $3,250
The accrued salaries and wages are recorded for $3,250
The goal of value chain analysis is to identify processes in which the firm can add value for the customer and create a competitive advantage for itself, with a ________ or _______________.
Answer:
Cost advantage or product differentiation
Explanation:
The two ways to create competitive advantage is by:
1. Cost advantage: when are firm's cost of production is lower that other competitors, they will be able to sell goods at lower prices and still make profit. Other firms in the industry with higher costs will not be able to compete with the low price, as bringing their own prices down will result in loss.
2. Product differentiation: is when the products offered by a company is different from others in the market in such a way that it attracts more customers.
The purpose of value chain analysis is to find business operations where a company can add customer value and establish a competitive advantage through cost reduction or providing unique offerings. A prime example is Apple Inc.'s value chain.
Explanation:The goal of value chain analysis is to discern business activities where an organization can add value for its customers and secure a competitive edge. This is accomplished either by reducing costs or by providing something unique that exceeds their direct and indirect costs. For instance, Apple Inc.'s value chain is exceptionally strong in the technology sector. They not only cut down costs by sourcing components from around the world but also provide a unique user experience, thus creating a strong competitive advantage.
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Martha works as a project manager at a bank. Due to certain changes in external factors, Martha needs to make a few alterations in the tactical goals of her project. In such a scenario, which of the following will best help Martha cope with the change?
(A) Negotiation
(B) Motivation
(C) Project environment knowledge
(D) Soft skills
Final answer:
Martha, as a project manager at a bank, can best cope with changes in external factors by utilizing project environment knowledge, which helps her understand the context and align the tactical goals of the project accordingly.
Explanation:
Martha works as a project manager at a bank and needs to alter the tactical goals of her project due to changes in external factors. Among the provided options, Project environment knowledge will best help Martha cope with the change. This knowledge will enable her to understand the external factors influencing the project's environment and to adjust the tactical goals accordingly. While negotiation, motivation, and soft skills are important, they are secondary to understanding the context in which the changes are occurring. This knowledge aids in making informed decisions that ensure the project aligns with the new circumstances, facilitating its successful completion.
For instance, in the business environment, a change in regulatory requirements by financial authorities could necessitate adjustments in project goals. With her project environment knowledge, Martha could reassess and realign the project goals to comply with the new regulations while keeping the project on track to achieve its strategic objectives. Her understanding of the project's environmental context enables her to be responsive and strategic in her approach to managing external changes.
Project environment knowledge is crucial for Martha to cope with changes effectively by understanding project dynamics and making informed decisions.
In a scenario where external factors necessitate alterations to the tactical goals of her project, having a strong understanding of the project environment is crucial for Martha to cope with the change effectively. Project environment knowledge involves understanding various factors such as stakeholders, resources, constraints, and market conditions that influence the project's dynamics. With a deep understanding of the project environment, Martha can anticipate potential challenges, identify opportunities, and make informed decisions about adjusting tactical goals to align with the changing circumstances. This knowledge enables her to navigate complexities, mitigate risks, and leverage available resources efficiently. While negotiation, motivation, and soft skills are important, project environment knowledge serves as the foundation for effective adaptation and decision-making in dynamic situations.
An investment offers a total return of 12.3 percent over the coming year. Janice Yellen thinks the total real return on this investment will be only 8 percent.
What does Janice believe the inflation rate will be over the next year?
Janice Yellen believes the inflation rate to be 4.3% next year. This is found by subtracting the real return (8%) from the total return (12.3%) using the basic economics formula for calculating inflation.
Explanation:To calculate the inflation rate that Janice Yellen is predicting, we need to understand how real return is associated with total return and inflation rate. The formula to calculate inflation based on real return and total return (also known as nominal return) is:
inflation rate = total return - real return
Given that the total return is 12.3%, and the real return is 8%, the equation should look like this:
inflation rate = 12.3% - 8% = 4.3%
Therefore, Janice Yellen believes that the inflation rate over the next year will be 4.3%.
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Assume that on February 1, Procter & Gamble (P&G) paid $729,600 in advance for 2 years’ insurance coverage. Prepare P&G’s February 1 journal entry and the annual adjusting entry on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)Date Account and Explanation Debit Credit
Answer:
Journal entry on February 1:
Debit Prepaid Insurance $729,600
Credit Cash $729,600
Annual adjusting entry on June 30:
Debit Insurance Expense $152,000
Credits Prepaid Insurance $152,000
Explanation:
On February 1, Procter & Gamble (P&G) paid $729,600 in advance for 2 years’ insurance coverage. The company records the insurance as the prepaid Insurance:
Debit Prepaid Insurance $729,600
Credit Cash $729,600
On Jun 30, the last day of the following 5 months, the company records an adjusting entry that Credits Prepaid Insurance for $152,000 ($729,600 divided by 24 months times the 5 months that will be prepaid as of Jun 30) and Debits Insurance Expense for $152,000
Debit Insurance Expense $152,000
Credits Prepaid Insurance $152,000
The journal entries for P&G’s prepaid insurance and subsequent adjustment are explained. On February 1, P&G debits Prepaid Insurance and credits Cash for $729,600. On June 30, P&G makes an adjusting entry by debiting Insurance Expense and crediting Prepaid Insurance for $152,000, representing the portion of the prepaid insurance used in 5 months.
Explanation:The subject of the question refers to accounting, specifically how to record prepaid insurance and adjusting entries for insurance expense. In this case, Procter & Gamble (P&G) has made a prepayment for 2 years’ worth of insurance coverage, and we need to provide the journal entries for these transactions.
On February 1, the journal entry would be as follows: Debit Prepaid Insurance $729,600; Credit Cash $729,600. This entry reflects P&G paying upfront for the insurance coverage. Prepaid Insurance is an account where the expense has been paid but not yet used, and Cash is decreased as the payment has been made.
Then, on June 30, P&G has to make an adjusting entry to account for the portion of the prepaid insurance that has been used. Given that 5 months have passed from February to June, we need to calculate the amount of insurance expense for these 5 months. Considering that the total amount paid was for 24 months (2 years), we can calculate: $729,600 / 24 = $30,400 per month, then $30,400 x 5 = $152,000. The annual adjusting entry then would be: Debit Insurance Expense $152,000; Credit Prepaid Insurance $152,000. This entry represents the insurance that has been 'used up' over the 5 months.
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