Answer:
The Cost of Manufactured Goods 9,998,145
Explanation:
The question is to determine Choco-rama's Cost of Goods Manufactured for the 2016 Fiscal Year.
CHOCO RAMA COST OF GOODS MANUFACTURED FOR THE 2016 FISCAL YEAR
Description Amount ($) Amount ($)
Opening Inventory of Raw materials 42,385
Add: Purchase of raw materials 387,521
Direct raw materials available 429,906
Subtract: Closing raw materials (44,299)
Raw materials in Production 385,607
Add:
Direct labour ($388,400 x $23.60) 9,166,240
Manufacturing overhead 451,850
The total manufacturing costs 10,003,697
Add: Opening Work-in-Progress 22,655
10,026,352
Subtract: Closing work-in-progress (28,207)
The Cost of Manufactured Goods 9,998,145
Common ownership interest in a business, sharing profits (or losses) of a business, and the right to participate in managing the operations of the business are characteristics of a(n):A) corporation.B) sole proprietorship.C) partnership.D) S-corporation.
Answer:
C) partnership
Explanation:
In partnership the partner share the profit / loss of a business and can also participate in the operation of the business. Corporation is is a form of large company they work for the common interest and sole proprietorship does not share the profit or operations of the company with others.
The Akron Slugger Company produces various types of wooden baseball bats. It has calculated the average cost per unit of a production level of 7 comma 700 bats to be $ 14. If $ 22 comma 500 of the costs are fixed, and the plant manager uses the cost equation to predict total costs, her forecast for 8 comma 600 bats will be (Round any intermediary calculations to the nearest cent.)
Answer:
[tex]\arge\boxed{\large\boxed{\$ 117,788}}[/tex]
Explanation:
Assume the cost equation to be:
[tex]Cost(x)=Fixed\text{ }costs+Variable\text{ }costs\\\\Cost(x)=A+Bx[/tex]
Where [tex]x[/tex] is the number of units (wooden baseball bats) produced.
The average cost per unit of production level is the total cost divided by the number of units produced:
[tex]Average\text{ }cost(x)=Cost(x)/x\\\\Average\text{ }cost(x)=(A+Bx)/x\\[/tex]
You are given that the average cost per unit of a production level of 7,700 bats is $14, then:
[tex]14=(A+7,700B)/7,700[/tex]
You are also given that the fixed costs are $22,500, thus A = 22,500. Hence, you can substitute the value of A in the previous equation and find B:
[tex]14=(22,500+7,700B)/7,700\\\\14\times 7,700=22,500+7,700B\\\\107,800-22,500=7,700B\\\\85,300/7,700=B\\\\B=11.08[/tex]
Now you can complete the cost equation:
[tex]Cost(x)=\$ 22,500+11.08x[/tex]
And to predict the total costs for 8,600 bats you must subsitute x with 8,600 in the previous equation:
[tex]Cost(8,600)=\$ 22,500+11.08(8,600)=\$ 117,788[/tex]
Problem 1-1A (Video) Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno’s monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,300 Insurance on factory building 1,700 Raw materials (plastics, polystyrene, etc.) 84,800 Utility costs for factory 1,000 Supplies for general office 300 Wages for assembly line workers 65,700 Depreciation on office equipment 800 Miscellaneous materials (glue, thread, etc.) 1,300 Factory manager’s salary 6,500 Property taxes on factory building 500 Advertising for helmets 15,100 Sales commissions 11,000 Depreciation on factory building 1,600 Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. Total the dollar amounts in each of the columns.Compute the cost to produce one helmet.
Answer:
cost per helmet: $17.52
Explanation:
The manufacturing cost only should be considered that is overhead,labor and materials.
Overhead
Rent on factory equipment 11,300
Depreciation on factory building 1,600
Property taxes on factory building 500
Miscellaneous materials (glue, thread, etc.) 1,300
Factory manager’s salary 6,500
Insurance on factory building 1,700
Utility costs for factory 1,000
Depreciation on office equipment 800
Total Overhead: 24,700
Raw materials (plastics, polystyrene, etc.) 84,800
Wages for assembly line workers 65,700
Total Manufacturing Cost 175,200
helmet produced: 10,000
cost per Helment: 175,200 / 10,000 = $17.52
The total monthly cost of producing helmets is $174,400. When this total cost is divided by the number of helmets produced in a month (10,000), the result is $17.44. Therefore, the cost to produce one helmet is $17.44.
To figure out the cost to produce one helmet, all costs associated with production need to be added up. These include rent on factory equipment ($11,300), insurance on factory building ($1,700), raw materials ($84,800), utility costs ($1,000), wages for assembly line workers ($65,700), miscellaneous materials ($1,300), factory manager's salary ($6,500), property taxes on factory building ($500), and depreciation on factory building ($1,600).
The sum of these costs is $174,400. This total cost is then divided by the number of helmets produced per month, which is 10,000. $174,400 / 10,000 = $17.44.
Therefore, the cost to produce one helmet is $17.44.
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Wallace and Simpson formed a partnership with Wallace contributing $92,000 and Simpson contributing $72,000. Their partnership agreement calls for the income (loss) division to be based on the ratio of capital investments. Wallace sold one-half of his partnership interest to Prince for $63,000 when his capital balance was $84,000. The partnership would record the admission of Prince into the partnership as:
Answer:
Given that,
Wallace contributing = $92,000
Simpson contributing = $72,000
Wallace capital balance = $84,000
Wallace sold one-half of his partnership interest to Prince for $63,000,
Now, 50% of the share is transferred to the prince:
= 50% of Capital balance of Wallace (at that time)
= 50% × $84,000
= $42,000
Therefore, the journal entry is as follows:
Wallace capital A/c Dr. $42,000
To Prince capital $42,000
(To record the transfer of share)
A small business owner visits his bank to ask for a loan. The owner states that she can repay a loan at $2,500 per month for the next two years and then $3,000 per month for another two years after that. If the bank is charging customers 6.5 percent APR, how much would it be willing to lend the business owner?
Answer:
Present value = $115,278.17
Explanation:
Given data:
Monthly repay amount for 2 year = $2500
Monthly repay amount for another 2 year = $3500
APR =6%
monthly interest rate = 6.50/12 = 0.54167%
Present value is calculated as
Present value [tex]= \frac{monthly payment}{(1 + monthly rate)^n} [/tex]
Present value [tex]= \frac{2500}{(1 + 0.54167\%)^1} +\frac{2500}{(1 + 0.54167\%)^2} +........ + \frac{2500}{(1 + 0.54167\%)^{24}} + \frac{3000}{(1 + 0.54167\%)^{25}} + ...... + \frac{3000}{(1 + 0.54167\%)^{48}}[/tex]
Present value [tex]= 2500\times \frac{(1-(\frac{1}{1.0054167})^{24})}{0.0054167} + 3000\times \frac{(1-(\frac{1}{1.0054167})^{24})}{0.0054167}[/tex]
Present value = $115,278.17
A car loan requiring quarterly payments carries an APR of 8%. What is the effective annual rate of interest?
Answer:
Effective annual rate 8.24%
Explanation:
We solve for the effective rate by calcualte how much is the value of the APR with quarterly compounding.
[tex](1+\frac{APR}{M} )^m = 1 + EAR[/tex]
[tex](1+0.08/4)^4 = 1+ EAR\\(1+0.08/4)^4 -1 = EAR\\\\EAR = 0.08243216[/tex]
Final answer:
The Effective Annual Rate (EAR) for an 8% APR with quarterly compounding is approximately 8.24%, which is higher than the nominal APR due to the effects of compound interest.
Explanation:
The student's question pertains to the conversion of an Annual Percentage Rate (APR) to the Effective Annual Rate (EAR) of interest when payments are made quarterly. APR represents the nominal interest rate provided on a yearly basis without taking into account the effect of compounding within the year. However, when an APR is given, and payments or interest compounding occur more frequently than annually, the actual interest rate is higher than the nominal rate due to the effects of compound interest. To determine the EAR, one must take into account the frequency of compounding.
The formula to calculate the Effective Annual Rate when interest is compounded quarterly is EAR = (1 + APR/n)ⁿ - 1, where 'APR' is the annual percentage rate and 'n' is the number of times interest is compounded per year. For quarterly compounding, n = 4.
To calculate the EAR for an 8% APR compounded quarterly: EAR = (1 + 0.08/4)⁴ - 1. Doing the calculation: EAR = (1 + 0.02)⁴ - 1, EAR = 1.08243216 - 1, EAR = 0.08243216, or an effective annual rate of about 8.24%.
Therefore, although the APR is 8%, the actual interest accrued over a year due to quarterly compounding will be slightly higher at approximately 8.24%. This is the effective annual rate of interest that the borrower would experience.
Which of the following options correctly completes the sentence?
The social security lump-sum election means the taxpayer elects to treat the lump-sum social security benefit as if the benefits:
a) For prior years had been received in those years, by amending the prior-year returns.
b) Had been evenly allocated among the reported years.
c) For prior years had been received in those years.
d) For prior years were received in the current years.
Answer:
The correct answer is letter "D": For prior years were received in the current years.
Explanation:
The Social Security lump-sum election refers to a payment made in the current year based on similar payments sent on previous years. That payment could be subject to taxes. The Average Gross Income (AGI) of the taxpayer will determine if the lump-sum is taxable or not.
Martin wrote Dall and offered to sell Dall a building for $200,000. he offer stated it would expire 30 days from April 1. Martin Changed his mind and does not wish to be bound by this offer. If a legal dispute arises between the parties regarding whether there has been a valid acceptance of the offer, which one of the following is correct?
If Dall categorically rejects the offer on April 10, Dall cannot validly accept within the remaining stated period of time.
Answer:
If the offer is rejected by the Dall then the offer is no more in place. The particular reason is that Martin is not required to tell Dall that the offer is no more in place. Suppose Martin is wishing to close his offer and till now Dall has not declined the offer. So Martin will have to communicate Dall that the offer is been closed. If Dall has communicated Martin that he has rejected the offer, then this means the offer essence has vanished. Hence Martin has no liability towards Dall, if Dall sues him.
Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $160,400. The fair market value of the interest is $176,440. In a proportionate current distribution, the LLC distributes $32,080 cash and equipment with an adjusted basis of $80,200 and a fair market value of $120,300 to him on that date.
Required:
A) Franco's adjusted basis in the LLC interest after the distribution is $ __________ and his basis in the equipment received is $ _______.
Answer:
Adjusted basis = $48,120
Basis of equipment is given as $80,200
Explanation:
Given data:
Yearly basis of Franco = $160,400
market value of interest = $176,440
Distributed cash = $32,080
Adjusted basis = $80,200
Adjusted basis after distribution is calculated as
Adjusted basis = yearly basis - distributed cash - equipment adjusted basis
Adjusted basis = 160,400 - 32080 - 80,200
Adjusted basis = $48,120
in the question, basis of equipment is given as $80,200
Final answer:
Franco's adjusted basis in the LLC interest after receiving a distribution is $48,120, and his basis in the equipment received is $80,200. The non-taxable cash and equipment distribution reduces his original basis in the LLC interest, with steps clearly explaining the calculations.
Explanation:
When Franco receives a distribution from Dulera LLC, the distribution is non-taxable to the extent of his adjusted basis in the LLC interest. Initially, his adjusted basis is $160,400. The distribution consists of $32,080 cash and equipment with an adjusted basis to the LLC of $80,200 and a fair market value of $120,300.
First, reduce Franco's basis in the LLC by the amount of cash received ($32,080). So, the new basis in the LLC before accounting for the equipment is $160,400 - $32,080 = $128,320.
Since the fair market value of the equipment is not less than its adjusted basis in the hands of the LLC, Franco's basis in the equipment should be equal to the LLC's basis in the equipment, which is $80,200. After receiving the equipment, we reduce Franco's LLC interest basis by $80,200: $128,320 - $80,200 = $48,120.
Therefore, Franco's adjusted basis in the LLC interest after the distribution is $48,120, and his basis in the equipment received is $80,200.
Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods. Group of answer choices True False
Answer:
True
Explanation:
Both the countries can achieve gains from the trade because the trade is largely based on the principle of comparative advantage. The principle of comparative advantage states that a country has a comparative advantage in producing a good if it produces that good with a lower opportunity cost than the other country.
Trade is not based on the absolute advantage but on the comparative advantage. A country is having a absolute advantage in producing a commodity if it uses the minimum resources than the other country.
It doesn't matter which country has a absolute advantage in a trade.
5. You have just made your first $2,000 contribution to your individual retirement account. (a) Assuming you earn a 12% rate of return and make no additional contributions, what will your account be worth when you retire in 45 years
Answer:
$327,975.21
Explanation:
The computation is shown below:
Future value = Present value × (1 + interest rate)^number of years
where,
Present value = $2,000
Rate = 12%
Number of years = 45 years
So, the future value
= $2,000 × (1 + 0.12)^45
= $2000 × 163.987603871
= $327,975.21
Basically we applied the future value formula by considering the present value, time period, and the number of years
A company is in its first month of operations. On January 15, the company receives $600 from customers who will receive 10 voice lessons ($60 per lesson). As of January 31, the company has provided 8 voice lessons. What adjusting entry would be made at the end of January?
Explanation:
The adjusting journal entries are shown below:
On January 15
1. Cash A/c Dr $600 ($60 × 10 voice lessons)
To Unearned revenue A/c $600
(Being the cash is received)
On January 31
2. Unearned revenue A/c Dr $480 ($60 × 8 voice lessons)
To Service revenue A/c $480
(Being the unearned revenue is recorded)
Square Hammer Corp. shows the following information on its 2018 income statement: Sales = $398,000; Costs = $298,000; Other expenses = $7,900; Depreciation expense = $15,400; Interest expense = $14,200; Taxes = $21,875; Dividends = $11,500. In addition, you’re told that the firm issued $5,700 in new equity during 2018 and redeemed $4,200 in outstanding long-term debt.
Net income is calculated by subtracting total costs, depreciation expense, other expenses, interest expense, and taxes from total sales. The equity issuance and long-term debt redemption do not factor into the net income calculation.
Explanation:The subject of your question is related to the calculation of net income for Square Hammer Corp. using the provided income statement and additional information. Fundamental to this is an understanding of business financial equations.
First, we begin with the total sales of $398,000. Subtracting the total costs ($298,000), depreciation expense ($15,400), other expenses ($7,900), interest expense ($14,200), and taxes ($21,875) from the sales gives us the net income.
The equity issuance and long-term debt redemption are unrelated to net income calculations as they represent changes in financing, not operations. These activities are reflected in the statement of cash flows, though, which is linked to but separate from the income statement.
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All of the following decisions fall within the scope of operations management EXCEPT for: A. creating the company income statement. B. human resources and job design. C. managing quality. D. location strategy. E. design of goods and services.
Answer:
A. creating the company income statement.
Explanation:
The creation of the companie's income statement is not within the scope of an operation manager's role.
It is a function of the accounting department, and shows the financial position at a particular point in time. Income statements are prepared in relation to profit and loss that the company is making. It shows a snap-shot of financial position so that management can make informed business decisions.
Answer:
The correct answer is letter "A": creating the company income statement.
Explanation:
Operations managers are responsible for implementing business practices, in an attempt to increase income, to achieve the highest possible level of productivity within an enterprise. Managers use their decision-making authority to acquire resource inputs, then use them to produce goods and services that meet customer needs.
Creating the company income statement falls into the duties of the Accountant.
On August 1, 2021, Limbaugh Communications issued $22 million of 11% nonconvertible bonds at 105. The bonds are due on July 31, 2041. Each $1,000 bond was issued with 40 detachable stock warrants, each of which entitled the bondholder to purchase, for $50, one share of Limbaugh Communications’ no par common stock. Interstate Containers purchased 20% of the bond issue. On August 1, 2021, the market value of the common stock was $48 per share and the market value of each warrant was $10.
Answer:
Following is attached the required solution for the question.
I hope it will help you!
Explanation:
A firm decides to provide support services for its products for which its customers will pay extra. These services are not offered by its competitors and the firm does no incur commensurate supplier opportunity costs when it offers the services. This firm has achieved which of the following?
A)competitive advantage
B)added value
C) competitive advantage and added value
D) opportunity
B) Added value
Explanation:
Added value - It is an improvement to the product or service making it more worthwhile.
Competitive advantage makes the product or service more desirable than other competitors.
In this scenario, there is no competition of the services as yet, but definitely has an added value by improving the services.
This firm has achieved competitive advantage and added value
Explanation:
Through adding value to their products and services or can their own prices more than their competition in the industry, a business has a competitive advantage.
The competitive advantage is generated through the use of capital and ability to achieve indeed a lower cost level or a distinct commodity.
The preference of low cost or separation positions a company in its sector. This judgement is a key element of the competitive strategy of the organization.
You invest $500 in a savings account that pays 8.5% annual interest compounded quarterly. What will the total account balance be after 2 years?
Answer:
$591.60
Explanation:
The computation of the future value after two years is shown below:
Future value = Present value × (1 + rate)^number of years
where,
Present value = $500
Rate = 8.5% ÷ 4 = 2.125%
Number of years = 2 year × 4 = 8 years
So, the future value after two years is
= $500 × (1 + 2.125%)^8
= $500 × 1.1831956282
= $591.60
A 10-year $1,000 bond pays a nominal rate of 9% compounded semi-annually. If the market interest rate is 12% compounded annually and the general inflation rate is 6% per year, find the actual-and constant-dollar amounts (in time-0 dollars) of the 15th interest payment on the bond.
Answer:
a) actual dollar = $60
b) Constant dollar of the 15th payment = $38.710
Explanation:
Facts from the question:
The Face value of the bond = $1,000
Nominal Interest rate = 12% and it compounded annually
General inflation rate = 6%
The question: Determine the 15th interest payment on the bond.
Step 1: The coupon for the amount of semi annual payment is as follows:
Coupon= (Interest rate/ Number of compounding times in a year) x face value of the bond
= (0.12/2) x 1000
= $60 -= Actual dollar amount
Step 2: Determine the 15th payment and this will represent the middle of the 8th year or (7 1/2) year.
To calculate this=
Constant dollar amount of the 15th interest payment
= Actual dollar amount (above) / (1 + inflation rate)∧n
where n= the number of years = 7.5 years
= $60 / (1 + 0.06) ∧7.5
= $60/1.55
= $38.710
This means the constant dollar amount on that 15th payment = $38.710
Final answer:
The actual-dollar amount of the bond's 15th interest payment remains fixed at $45. To calculate time-0 dollars for actual and constant amounts, discount using the market rate of 12% for actual dollars and further adjust the result for inflation at 6% for constant dollars.
Explanation:
To calculate the actual-dollar amount and constant-dollar amount of the 15th interest payment on a 10-year $1,000 bond with a nominal rate of 9% compounded semi-annually when the market interest rate is 12% compounded annually and the general inflation rate is 6% per year, you'll need to address each part of the question separately.
First, for the actual-dollar amount with a 9% semi-annual rate, the interest payment every six months would be $1,000 × 0.09/2 = $45. The 15th interest payment does not change and remains $45 in actual dollars. To find the present value of this interest payment we would discount it back to time-0 using the market interest rate of 12% compounded annually assuming the payment is at the end of the seventh year:
Present value = $45 / (1 + 0.12)7
For the constant-dollar amount, you'd adjust for inflation using the formula:
Constant-dollar amount = Actual-dollar amount / (1 + 0.06)7
This accounts for the inflation rate affecting the value of money over time.
The Museum of America is preparing for its annual appreciation dinner for contributing members. Lastâ year, 525 members attended the dinner. Tickets for the dinner were $ 24 per attendee. The profit report for lastâ year's dinner follows.
Ticket sales $12,600
Cost of dinner 15,300
Gross Margin 2,700
Invitations and paperwork 2,500
Profit (loss) $ 5,200
This year the dinner committee does not want to lose money on the dinner. To help achieve itsâ goal, the committee analyzed lastâ year's costs. Of the â$15,300 cost of theâ dinner, â$9,000 were fixed costs and â$6,300 were variable costs. Of the â$2,500 cost of invitations andâ paperwork, â$1,975 were fixed and â$525 were variable.
Requirement:
1. Prepare last year's profit report using the contribution margin format.
Answer:
Contribution Margin $ 5775
Net Loss ( $ 5,200 )
Explanation:
Ticket sales $12,600
Less
Variable Costs
Cost of dinner
Variable Costs ( 15,300- 9000) $ 6,300
Invitations and paperwork (variable costs) $ 525
Less Fixed Expenses
Cost of dinner (fixed costs) $ 9000
Invitations and paperwork (fixed costs) $ 1975
Net Loss ( $ 5,200 )
Contribution Margin is obtained by deducting variable costs from sales and then the profit or loss is obtained by deducting fixed costs from the contribution margin.
Run-of-the-Mills provides your marketing firm with the following data: When the price of guppy gummies increases by 5%, the quantity of raskels sold decreases by 4% and the quantity of kipples sold increases by 5%. Your job is to use the cross-price elasticity between guppy gummies and the other goods to determine which goods your marketing firm should advertise together.
Answer:
Guppy gummies and Raskels
Explanation:
The relevant elasticity here is the cross-price elasticity of demand. Cross-price elasticity of demand or simply cross elasticity of demand measures the degree of responsiveness of the quantity demanded of a product as a result of change in the price of another product, ll other things being equal.
The formula for calculating is stated as follows:
[tex]E_{c} = \frac{Percentage change in quantity demand of good X}{Percentage change in the price of good Y}[/tex]
= %Δ in the quantity of X ÷ %Δ in the Price of good Y
We can use the formula to determine the elasticity of the goods as follows:
1. Cross elasticity of Guppy gummies and Raskels (Ecgr)
%Δ in the price of guppy gummies = 5%
%Δ in the quantity of raskels = = - 4%
Ecgr = - 4% / 5% = - 0.80
1. Cross elasticity of Guppy gummies and Kipples (Ecgk)
%Δ in the price of guppy gummies = 5%
%Δ in the quantity of Kipples = 5%
Ecgk = 5% / 5% = 1.00
Decision Rule:
When cross elasticity is negative, it implies the two products are complements. In this case, Guppy gummies and Raskels are complements.
When cross elasticity is positive, it implies the two products are substitutes. In this case, Guppy gummies and Kipples are substitutes.
Decision:
Since, Guppy gummies and Raskels are complements while, Guppy gummies and Kipples are substitutes; therefore, the marketing firm should advertise Guppy gummies and Raskels that are compliments together. This is because increase in the sales of one will lead to an increase in the sales of the other one.
Corporation began 2018 with retained earnings of $ 240 million. Revenues during the year were $ 480 million, and expenses totaled $ 360 million. Canada declared dividends of $ 63 million. What was the company's ending balance of retained earnings? To answer this question, prepare Canada's statement of retained earnings for the year ended December 31, 2018, complete with its proper heading.
Answer:
Retained earnings balance for year ended 31st December,2018 is $297m.
Find details in the attached spreadsheet.
Explanation:
In order to compute the closing balance of retained earnings,the retained for the current year was first of all calculated by the formula below:
Retained earnings=Revenue-Expenses-Dividends declared.
Finally,the opening retained earnings of $240m was added to current year retained earnings of $57m gives $297m
"Kim wants to run for the U.S. Senate. Kim experimented with drugs in the 1960s, but has not used any drugs in more than 45 years. Kim decides the public does not need this information. What communication behavior is Kim engaging in?
Answer:
The communication behaviour that kim is engaged in is selective self-disclosure.
Explanation:
Self-disclosure is a process of communication by which one person reveals information about themselves to another. The information can be descriptive or evaluative, and can include thoughts, feelings, aspirations, goals, failures, successes, fears, and dreams, as well as one's likes, dislikes, and favorites.
Selective self-disclosure means self-disclosure but providing only that information which will create a positive image of one person on another.
Answer:
Keeping quiet
Explanation:
Kim decides the public does not need this information.
Failure to record amounts earned for services provided to customers but NOT yet paid results in which of the following?
a. Net income being overstated
b. No effect on total assets
c. Stockholders' equity being overstated
d. Total assets being understated.
Answer:
The correct answer is letter "D": Total assets being understated.
Explanation:
In Accounting, Total Assets represents all the resources a firm possesses from where the company expects to make a profit. It is the result from adding the company's non-current assets (realizable not in the current period) and the current assets (expected to be realized in the current period).
Thus, if the non-realizable amounts a company earns from providing services are not recorded, the total assets will be understated.
Failure to record amounts earned for services but not yet paid results in total assets being understated. That's because the company doesn't record an account receivable, thus its total assets appear lower.
Explanation:The failure to record amounts earned for services provided to customers but not yet paid results in d. Total assets being understated. This is because, under accrual accounting, which most firms use, income is recorded when it is earned, and expenses are recorded when they are incurred, not when cash changes hands.
When a company delivers a service but hasn't received payment, it's supposed to record an account receivable, increasing its total assets. If it fails to do so, its total assets will be understated. In other words, the company will be 'worth less' on paper than it actually is which clearly, is not an accurate representation of its financial health or value.
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Use the following information to compute profit margin for each separate company a through:a. Net income : $4,361 , Net sales : $44,500b. Net income : $97,706 , Net sales : $398,800c. Net income : $111,281 , Net sales : $257,000d. Net income : $65,646 , Net sales : $1,458,800e. Net income : $80,142 , Net sales : $435,500Which of the five companies is the most profitable according to the profit margin ratio? Interpret that company's profit margin ratio.
Answer:
Company c. is the most profitable according to the profit margin ratio.
Profit margin ratio describes that what percentage of sales is left after paying all the cost and expenses of the company. It shows the share of profit in the sales value.
Explanation:
a.
Net income : $4,361
Net sales : $44,500
Profit Margin Ratio = ( Net Income / Net sales ) x 100
Profit Margin Ratio = ($4,361 / $44,500) x 100 = 9.8%
b.
Net income : $97,706
Net sales : $398,800
Profit Margin Ratio = ( Net Income / Net sales ) x 100
Profit Margin Ratio = ($97,706 / $398,800) x 100 = 24.50%
c.
Net income : $111,281
Net sales : $257,000
Profit Margin Ratio = ( Net Income / Net sales ) x 100
Profit Margin Ratio = ($111,281 / $257,000) x 100 = 43.30%
d.
Net income : $65,646
Net sales : $1,458,800
Profit Margin Ratio = ( Net Income / Net sales ) x 100
Profit Margin Ratio = ($65,646 / $1,458,800) x 100 = 4.50%
e.
Net income : $80,142
Net sales : $435,500
Profit Margin Ratio = ( Net Income / Net sales ) x 100
Profit Margin Ratio = ($80,142 / $435,500) x 100 = 18.40%
To compute the profit margin, divide the net income by the net sales and multiply by 100. Company c is the most profitable with a profit margin of 43.28%.
Explanation:To compute the profit margin for each company, divide the net income by the net sales and multiply by 100. For company a, the profit margin is (4,361 / 44,500) * 100 = 9.79%. For company b, the profit margin is (97,706 / 398,800) * 100 = 24.50%. For company c, the profit margin is (111,281 / 257,000) * 100 = 43.28%. For company d, the profit margin is (65,646 / 1,458,800) * 100 = 4.50%. For company e, the profit margin is (80,142 / 435,500) * 100 = 18.40%.
Based on the profit margin ratio, company c is the most profitable with a profit margin of 43.28%. This means that for every dollar of net sales, company c is earning a profit of 43.28 cents.
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Which of the following statements is true of costing systems? A. A construction company would likely use a process costing system. B. An accounting firm would likely use a job order costing system. C. A job order costing system would be used by manufacturers of baking utensils. D. A process costing system would be used by manufacturers of customminusmade perfumes.
Answer:
B. An accounting firm would likely use a job order costing system
Explanation:
The job order costing is the cost which is depended upon the various job needs that reflects the differential costing based on the instructions given by the customer.
On the other hand, the process costing deals with different processes that are held in the company premises.
As we cant say which costing is used but the job order costing is used by the accounting firm as it gives the various services depending upon the customer needs and for that separate fees is to be charged.
A generation ago, ketchup was an essential element of every American pantry and salsa was a relatively unknown product. The popularity of salsa exploded and has been attributed to trends in demographics such as population size, age, and ethnic mix as well as cultural trends such as attitudes toward obesity and consumer activism. What factor of PESTEL does this represent?
Answer:
SocialExplanation:
PESTLE analysis is a tool to identify those external factors which influences organization.
P: Political Factors influencing organization's performance.
E: Economical Factors creating hurdles in the way of the organizations.
S: Social Factors account for changed behavior of consumers towards organization.
T: Technological Factors playing it's role in influencing organizational performance.
L: Legal Factors accounting for legal barriers for the organizations.
E: Environmental Factors affecting companies but no one pays attention to it.
Salsa's increased popularity is represented by Social Factor: As belief is the most vital element which has effect on consumers decision making a company's growth or loss can be accounted for it. Not just belief the demographics and the attitude of people towards general issues can play their roles as well.Calculate the price of a zero coupon bond that matures in 10 years if the market interest rate is 6 percent. (Assume semi-annual compounding and $1,000 par value.)
Answer:
Price of coupon is $553.7098
Explanation:
Using the formula
Price = Face value/(1+rate)^periods
Face value= $1,000
Rate for semiannual= 6/2= 3
Periods for semiannual= 10*2= 20
Therefore
Price= 1,000/(1+0.03)^20
Price= 1,000/(1.03)^20
Price 1000/1.806= 553.7098
The mission of the _____________________ is to protect consumers and to make sure that business is competitive by eliminating practices harmful to business. Federal Trade Commission (FTC) Federal Financial Institutions Examination Council (FFIEC) National Credit Union Administration (NCUA) Office of Thrift Supervision
Answer:
The correct answer is letter "A": Federal Trade Commission (FTC).
Explanation:
The Federal Trade Commission (FTC) is an independent American agency that has the mission of promoting consumer rights and the abolition and prevention of practices that affect free competition. The FTC is in charge of investigating fraud and misleading advertisements.
Pina Corporation entered into an operating lease agreement to lease equipment from Badger, Inc. on January 1, 2017. The lease calls for annual lease payments of $30,000, beginning on January 1, for each of the 3 years of the lease. In addition, Badger will pay Pina $6,000 as a cash incentive for entering the lease by January 1, 2017. In relation to the lease agreement, Pina incurred the following costs.
Salaries of employees involved in the investigation of the lease $3,000
Lease document preparation costs incurred after execution of the lease 500
Pinas incremental borrowing rate is 9%.
Required:
a. If the value of the lease liability is $82 773, what amount wil Pina record as the value of th operating lease?
Answer:
= $80,273
Explanation:
Value of the right of use asset = Value of lease liability - cash incentive received + costs incurred for lease
= $82,773 -$ 6,000 + $3,000 + $500
=$80,273
The single-step income statement emphasizesa .the gross profit figure.b. total revenues and total expenses.c. extraordinary items and accounting changes more than these are emphasized in the multiple-step income statement.d. the various components of income from continuing operations.
Answer:
b. total revenues and total expenses
Explanation:
A single step income statement -
It refers to the financial statement , which contains all the costs of the goods sold in a single column , is referred to as a single step income statement .
It helps to maintain the record for better understanding .
All the expenses and the revenues are correctly recorded and added , in order to be the best results .
Hence , from the given question ,
The correct option is b.