Answer:
a. The total amount of product cost is $369,800
b. The total amount of period cost is $353,300
Explanation:
Product costs are costs that are directly incurred in the production of goods. Products costs are traceable to production of goods. Examples of products costs are direct material cost and direct labor cost.
In contrast, period costs are costs that are incurred on the general affairs of the business. They are not related to production of goods. They are incurred on administering a business. Example includes salaries paid to directors of a company
Total amount of product cost $
Property taxes, factory 10,300
Indirect labor 44,100
Direct materials 172,600
Depreciation of production equipment 48,300
Direct labor 94,500
369,800
Total amount of period cost: $
Marketing salaries 51,900
Administrative travel 105,000
Sales commissions 52,400
Advertising 144,000
353,300
Izzy Ice Cream has the following price and cost information: Price per 2-scoop sundae $ 5.00 Variable cost per sundae: Ingredients 1.35 Direct labor 0.45 Overhead 0.20 Fixed cost per month $ 5,100 Required: 1. Determine Izzy’s break-even point in units and sales dollars. 2. Determine how many sundaes must be sold to generate a profit of $10,200. 3. Calculate Izzy’s new break-even point for each of the following independent scenarios: a. Sales price decreases by $0.50. b. Fixed costs decrease by $300 per month. c. Variable costs increase by $0.50 per sundae. 4. Based on the original information, how many sundaes must Izzy sell to generate a profit of $24,000, if sales price increases by $0.50 and variable costs increase by $0.30?
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Price per 2-scoop sundae $ 5.00
Variable cost per sundae:
Ingredients 1.35
Direct labor 0.45
Overhead 0.20
Total variable cost= $2
Fixed cost per month $ 5,100
1. Determine Izzy’s break-even point in units and sales dollars.
Break-even point (units)= fixed costs/ contribution margin
Break-even point (units)= 5,100/ (5 - 2)= 1,700 units
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 5,100/ (3/5)=$8,500
2. Determine how many sundaes must be sold to generate a profit of $10,200.
Break-even point (units)= (fixed costs + profit)/ contribution margin
Break-even point (units)= (5,100+ 10,200) / 3= 5,100 units
3. a. Sales price decreases by $0.50.
Break-even point (units)= 5,100/ (4.5 - 2)= 2,040 units
b. Fixed costs decrease by $300 per month.
Break-even point (units)= 4,800/3= 1,600 units
c. Variable costs increase by $0.50 per sundae.
Break-even point (units)= 5,100/ (5 - 2.5)=2,040 units
4. How many sundaes must Izzy sell to generate a profit of $24,000, if sales price increases by $0.50 and variable costs increase by $0.30
Break-even point (units)= (5,100 + 24,000) / (5.5 - 2.3)= 9,094 units
To determine Izzy Ice Cream's break-even point in units and sales dollars, divide the fixed costs by the contribution margin per unit. To generate a profit of $10,200, divide the profit target by the contribution margin per unit and add the fixed costs.
Explanation:In order to determine Izzy Ice Cream's break-even point in units and sales dollars, you need to calculate the contribution margin per unit. The contribution margin is the difference between the price per sundae and the variable cost per sundae. The break-even point in units can be calculated by dividing the fixed costs by the contribution margin per unit. The break-even point in sales dollars can be calculated by multiplying the break-even point in units by the price per sundae.
Break-even point in units: $5,100 / ($5.00 - $1.35 - $0.45 - $0.20) = 1,500 units Break-even point in sales dollars: 1,500 units * $5.00 = $7,500
To determine how many sundaes must be sold to generate a profit of $10,200, you need to consider the contribution margin per unit and the fixed costs. The profit target can be divided by the contribution margin per unit, and the fixed costs should be added to this value. This will give the total number of units that need to be sold.
Contribution margin per unit: $5.00 - $1.35 - $0.45 - $0.20 = $2.00 Total units that need to be sold: ($10,200 + $5,100) / $2.00 = 7,650 units Learn more about Break-Even Point and Profit here:
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In a small manufacturing facility, one welder is needed for every 200 hours of machine-hours or fewer in a month. The welder is paid a monthly salary of $2,500. If the total monthly requirement is 1,300 machine-hours, the total salaried employee expense is ________.
A. $12,500
B. $16,250
C. $17,500
D. $15,000
Answer:
C. $17,500
Explanation:
1,300 / 200 = 6.5
we are going to hire between 6 and 7 welder as we are given the requirement "for every 200 hours or fewer in a month" we should round above and not below: 7 welder. Besides, we cannot hire "half" or "quarter" of an employee therefore we have to move between integer solutions.
Given 1,300 machine-hours and the fact that one welder is needed for each 200 machine-hours, there is a need for 7 welders. Since each welder earns $2,500 monthly, the total salaried employee expense amounts to $17,500.
Explanation:To calculate the total salaried employee expense in this scenario, we first have to determine the number of welders required. Since one welder is needed for each 200 machine-hours, and the total requirement is 1,300 machine-hours, we can divide 1,300 by 200 to find out the number of welders needed, which equals to 6.5. However, we can't have half a welder, so we need to round up to the nearest whole number, which is 7. Each welder is paid a salary of $2,500 per month, so to find the total salary expense, we multiply 7 by $2,500, which equals $17,500. Thus, the total salaried employee expense is $17,500.
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which of the following statements is true? Short-term bonds have greater interest rate risk than do long-term bonds. Long-term bonds have greater interest rate risk than do short-term bonds. All bonds have equal interest rate risk. Interest rate risk is highest during periods of high interest rates.
Answer:
Short-term bonds have greater interest rate risk than do long-term bonds.
Explanation:Short-term bonds are bonds whose period before maturing is short,it will mature between one to four years,the shorter the term of the bond the lesser the risk. High risk is expected for long term bonds especially for an inconsistent economy. Most investors are very interested in short term bonds because they usually mature in short term,they can take back their money and reinvest helping to increase their total revenue on the long term.
Long-term bonds have a higher interest rate risk than do short-term bonds because they have more time until maturity and are therefore more affected by changes in interest rates.
Explanation:The correct statement is: 'Long-term bonds have greater interest rate risk than do short-term bonds'. Interest rate risk refers to the potential for investment losses that result from a change in interest rates. If interest rates rise, the price of a bond will decrease. This is because the bond's fixed interest payments are less attractive compared to the higher interest payments offered on new bonds. Long-term bonds are more affected by interest rate changes because they have a longer time until maturity. Hence, the interest rate risk of long-term bonds is higher than that of short-term bonds.
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The price for a cell phone case is $25 with the quantity demanded at 10,000 a day. As time goes on the price for a cell phone case increases to $30 and the quantity demanded decreases to 5,000 a day. Based on the price elasticity of demand using the midpoint method, this cell phone case isSelect one:a. unit elasticb. inelasticc. Perfectly elasticd. elastic
Answer:
d. Elastic
Explanation:
Elasticity (by midpoint formula) = (Q2-Q1) / [(Q2+Q1)/2]
(P2-P1) / [(P2+P1)/2]
Cell Phone : P1 = 25 ; P2 = 10000 ; P2 = 30 ; Q2 = 5000
Putting in the above formula : Elasticity =
= (5000-10000) [(5000+10000)/2]
(30-25) / [(30+25)/2]
= 5000/7500
5/27.5
= 0.66/ 0.18
= 3.66
Since the Elasticity = 3.66 i.e > 1 , The demand for cell phone is elastic.
The cell phone case described in the question exhibits elastic demand.
Explanation:The cell phone case described in the question exhibits elastic demand. Elastic demand occurs when the percentage change in quantity demanded is greater than the percentage change in price. To calculate the price elasticity of demand using the midpoint method, we can use the formula:
Price Elasticity of Demand = (Change in Quantity Demanded / Average Quantity Demanded) / (Change in Price / Average Price).
In this case, the percentage change in quantity demanded is
(5,000 - 10,000) / [(5,000 + 10,000) / 2] = -50%,
and the percentage change in price is
($30 - $25) / [($30 + $25) / 2] = 20%.
Therefore, the price elasticity of demand is -50% / 20% = -2.5. Since the absolute value of the price elasticity of demand is greater than 1, the cell phone case is elastic.
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Calculate the present values for the perpetuity: (1) Annual amount $20000, discount rate 8% (2) Annual amount $10000, discount rate 10% . A. $100000, $ 250000 B. $ 2500000, $1000000 C. $250000, $100000 D. $20000, $100000
Answer:
Present value calculator calculates the PV of a single amount. ... of illustration, you would rather receive $10,000 today rather than wait a year. ... This rate-of-return calculator solves for the ROR for one invested amount. ... Enter the calculated present value, the discount rate as the annual interest rate ... advertisement 2 short.
Explanation:
One of the limitations of aggregate accounting is that:A. it includes market transactions that should be excluded.B. it doesn't take depreciation into account.C. it measures market activity, not social welfare.D. there isn‘t enough data available in most developed countries to havenational income accounts.
Answer:
The correct answer is C
Explanation:
Aggregate accounting is the procedure in which the data from all of the households as well as individuals accounts of the production are gathered in one place.
In short, it is described as the way or method of measuring or evaluating the sum or the total of the production. The limitation of this method is that it only measures or determine the activity of the market not the social welfare.
What type of contract is an agreement that does not meet the tests for validity, and therefore is no contract at all?
Answer:
Correct Answer is Irrelevant contracts
Explanation:
Unenforceable contracts become inapplicable by law due to some technical aspects. The contract cannot be executed against either party.
For example, A agrees to sell 100kgs of rice for B for 10,000 / -. But there was a great flood in the states and all rice crops were destroyed. Now, this contract cannot be enforced and cannot be enforced against any of the parties.
A void contract is an agreement that does not meet the tests for validity, making it completely invalid as a contract.
Explanation:An agreement that does not meet the tests for validity and is not considered a contract at all is called a void contract.
A void contract is one that is null and invalid from the beginning, meaning it lacks the essential elements required for a valid contract. This may include situations where the agreement is illegal, against public policy, or involves parties lacking the legal capacity to enter into a contract.
For example, if two minors enter into a contract, it would be considered void because minors generally do not have the legal capacity to enter into binding contracts.
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Suppose that XTel currently is selling at $40 per share. You buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%. a. What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to (a) $44; (b) $40; (c) $36
Answer:
Initial net worth = $40* 500= $20000
a) Net worth of brokerage account = 44 * 500 = $22000
Percentage increase in the net worth of your brokerage account=[22000-20000]/20000 * 100= 10%
b) Net worth of brokerage account = 40 * 500 = $20000
Percentage increase in the net worth of your brokerage account=[20000-20000]/20000 * 100= 0%
c)If XTel's price changes to $36, the net worth of the brokerage account can be calculated as follows:
Net worth of brokerage account = 36 * 500 = $18,000.
Percentage decrease in the net worth of your brokerage account=[18000-20000]/20000 * 100= -10%
Explanation:
If the quantity supplied responds only slightly to changes in price, thenA. supply is said to be elastic.B. even a large decrease in demand will change the equilibrium price only slightly.C. an increase in price will not shift the supply curve very much.D. supply is said to be inelastic.
Answer:
D. supply is said to be inelastic.
Explanation:
When the change in the quantity supplied of any good is less sensitive due to change in the price, then the supply is known as the inelastic and If the quantity supplied responds only slightly to changes in price, then supply is said to be inelastic.
Q1. What data do you think might exist to show that a vendor is related to an employee? Which attributes would you focus on? Q2. How might you attempt to detect these connections between vendors and employees? Q3. If you were the employee committing fraud, what would you try to do with the data to evade detection? Q4. How many vendors have similar addresses to employees? Q5. What do you notice about the street vendor and employee street addresses? Q6. Are there any false positives (fuzzy matches that aren’t really matches)? Required: Submit all answers to the questions in a properly formatted Word document. Submit one Excel file with the tabs for each of the parts.
To detect connections between vendors and employees and identify potential fraud, data analysis is required, focusing on attributes such as shared addresses and phone numbers. False positives can occur in fuzzy matches, and evading detection for an employee committing fraud may involve altering transaction records or creating false vendors.
Explanation:Q1. To show that a vendor is related to an employee, data such as shared addresses, phone numbers, or bank accounts can be analyzed. Attributes to focus on include matching addresses, matching phone numbers, or transactions between the vendor and employee.
Q2. Connections between vendors and employees can be detected by analyzing transactional data, conducting data matching algorithms, or using network analysis techniques.
Q3. If an employee were committing fraud, they may try to evade detection by altering transaction records, creating false vendors, or colluding with other employees to manipulate data.
Q4. To determine the number of vendors with similar addresses to employees, an analysis should be carried out by comparing addresses and identifying matches.
Q5. Street vendor and employee street addresses should be compared for similarities or matches to identify any potential connections or relationships between the two.
Q6. False positives, or fuzzy matches that aren't really matches, could occur if there are common addresses or phone numbers in a certain region or if there are errors in the data being analyzed.
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An automobile manufacturer having 7 assembly plants and hundreds of dealers throughout the United States can find the guaranteed optimal transportation plan (assuming linear transportation costs and known demands and capacities) by using :_______
Answer:
An automobile manufacturer having 7 assembly plants and hundreds of dealers throughout the United States can find the guaranteed optimal transportation plan (assuming linear transportation costs and known demands and capacities) by using either linear programming model or transportation model.
Explanation:
Linear programming addresses issues such as profit maximization, cost minimization or maintaining that we make the greatest use of existing resources. From an implementation perspective, linear programming is an optimization tool that permits many administrative and/or technological decisions to be interpreted.
Throughout World War II the seeds of linear programming were sown when it was necessary to quickly transfer the military supplies and staff. While the transport model discusses the principle of unchanged transferring an item from one position to another. This implies that any disruption on the way has negative effects, and so it is used to evaluate transport networks and seek the most efficient method to allocating resources.
When a firm has moved beyond a production or selling orientation and attempts to discover and satisfy its customers' needs and wants, the firm is ______.
Answer:
The correct answer is: market oriented.
Explanation:
Market-oriented institutions are those that pursue the satisfaction of consumers more than reaching a profit goal for the company. This position is also taken by companies when the firm is looking for expansion through the implementation of new products or services. Every piece of information provided by consumers are considered vital in this stage.
Indicate whether each of the following types of transactions will either (a) increase stockholders' equity or (b) decrease stockholders' equity: 1. Issued common stock in exchange for cash. 2. Received cash for services performed for customers. 3. Paid business expenses. 4. Paid dividends
Answer:
Following would be the journal entries and their effect on stockholders equity
1. Issued common stock for cash
Cash A/C Dr.
To Common Stock
This transaction would increase stockholder's equity as common stock would increase.
2. Received cash for services provided
Cash A/C Dr.
To Service Revenue
(being cash received against services provided)
This transaction would increase stockholder's equity as net income would increase
3. Paid business expenses
Expenses A/C Dr.
To Cash A/C
(Being expenses paid recorded)
This would reduce stockholder's equity as net income would reduce.
4. Paid Dividends
Retained Earnings Dr.
To Dividend Payable A/C
(Being declaration of dividend recorded)
Dividend Payable A/C Dr.
To Cash A/C
(Being dividends paid recorded)
This would reduce stockholder's equity as reserves and surplus would reduce.
Issuing common stock for cash and providing services for cash increases stockholders' equity, while paying business expenses and dividends decreases it.
Explanation:The impact of the following transactions on stockholders' equity are:
Issued common stock in exchange for cash: This will increase stockholders' equity as the company is receiving additional funds from stockholders.Received cash for services performed for customers: This will increase stockholders' equity as company's profits increase through the provision of services for clients, which adds to retained earnings, a component of stockholders' equity.Paid business expenses: This will decrease stockholders' equity as expenses are deducted from the company's earnings, reducing its retained earnings and therefore, the stockholders' equity.Paid dividends: This will decrease stockholders' equity. Dividends are distributed from retained earnings, reducing the amount of profits that are still held by the company, consequently declining the stockholders' equity.Learn more about Stockholders' Equity here:https://brainly.com/question/31982519
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Fred is willing to pay $5 for his first slice of pizza and $4 for his second slice of pizza. If the price is $3, and Joe buys two slices of pizza, he receives a total consumer surplus of A) $4. B) $2. C) $7. D) $3
Answer:
D) $3
Explanation:
Consumer Surplus refers to the difference between the actual price paid by a consumer and the price the consumer was willing to pay. Surplus arises in cases wherein the price consumer was willing to pay exceeds the price he actually paid.
In the given case, the consumer was willing to pay a total of $9 i.e ($5 + $4) for 2 units of pizza. He actually ended up paying $6 i.e ($3 × 2 slices).
Thus, his total consumer surplus can be calculated as $9 - $6 = $3
Compute conversion costs given the following data: direct materials, $381,400; direct labor, $196,500; factory overhead, $194,000 and selling expenses, $41,200. a.$575,400 b.$771,900 c.$390,500 d.$152,800
Answer:
Conversion costs: c.$390,500
Explanation:
Conversion costs are those production costs required to convert raw material to finished goods. Conversion costs include direct labor and manufacturing overheads costs.
Conversion Costs = Direct Labor cost + Manufacturing Overheads cost= Total Manufacturing Costs – Direct Material cost
With direct labor cost of $196,500; factory overhead cost of $194,000.
Conversion Costs = $196,500 + $194,000 = $390,500
Final answer:
Conversion costs are the sum of direct labor and factory overhead. For the provided data, direct labor is $196,500, and factory overhead is $194,000, so the total conversion cost is $390,500.
Explanation:
Conversion costs are calculated as the sum of direct labor and factory overhead costs. Given the data: direct materials at $381,400, direct labor at $196,500, factory overhead at $194,000, and selling expenses at $41,200, we need to compute the total of direct labor and factory overhead.
The calculation would be as follows:
Direct Labor: $196,500Factory Overhead: $194,000Adding these two components will give us the conversion cost:
Conversion Costs = Direct Labor ($196,500) + Factory Overhead ($194,000) = $390,500.
Therefore, the correct option is c. $390,500.
1. How is Unilever applying its understanding of internal consumer processes in the psychological core to market its products?
Answer:
Unilever is applying its understanding of internal consumer processes by using several points of the psychological core to market its product in order to create valuefrom customers in return. ... It creates a relationship between the customer and the brand.
Explanation:
Unilever knows that throughout the purchase, usage, as well as discarding of goods, customers must follow numerous essential sociological phenomena. A further solution is given below.
The firm does a marketing strategy to address key features aimed at a specific demographic of the individual item.Unilever takes the millions of consumers across all cognitive states from awareness-building to changing attitudes to attract clients and retain existing subscribers for numerous items which including Lifebuoy soap.Learn more about marketing strategy here:
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In order to build a new warehouse facility, the regional distributor for Valco Multi-position Valves borrowed $1.6 million at 10% per year interest. If the company repaid the loan in a lump sum amount after 2 years, what was (a) the amount of the payment, and (b) the amount of interest
Answer:
It will return 1,936,000 dollars
from which 336,000 will be interest
Explanation:
We solve using the future value of a lump sum:
[tex]Principal \: (1+ r)^{time} = Future \: Value[/tex]
Principal 1,600,000.00
time 2.00
rate 0.10000
[tex]1600000 \: (1+ 0.1)^{2} = Amount[/tex]
Amount 1,936,000.00
We calculate interst by the different os the amount borrow and the amount returned:
1,936,000 - 1,600,000 = 336,000
What is an HR metric that would be especially valuable to an organization that wishes to determine whether it should continue to invest resources into the company "Wellness Program" (which has included benefits like free employee gym memberships and health education seminars)? a. SWOT analysis b. Employee satisfaction c. Delphi technique d. Staffing ratios
Answer:
The correct answer is letter "B": Employee satisfaction.
Explanation:
Employee satisfaction refers to the level of joy workers have at work with the current activities they perform. Companies tend to provide additional benefits to employees to increase their engagement with the firm which is believed to boost their efficiency, thus, the company's effectiveness.
Zappos employees are "driven" to participate in charitable activities and feel that giving back to the community is something that they "must do." This demonstrates what about Zappos employees?
a.Zappos employees follow the specifc Zappos code of ethics.
b.Zappos employees have morals that match Zappos values and norms.
c.Zappos employees operate at the preconventional level of morality.
d.Zappos employees focus on the ethical responsibilities of their jobs.
"Zappos employees have morals that match Zappos values and norms" this demonstrates about Zappos employees.
Answer: Option B
Explanation:
In case a company's employees prefer performing charitable activities and feel that engaging with their local community is a duty, the circumstance means that those employees have a strong sense of social responsibility and moral values.
Each business appears to have a code of ethics detailing the expected actions that the company expects from workers inside the corporation, but organizations also have targets on civic responsibility to limit the impact of their activities on community and enhance it if necessary.
The Uniform Guidelines on Employee Selection Procedures require validated procedures for selecting and promoting employees but do not apply to dismissal, transfer, or demotion.True/False
Answer:
TRUE
Explanation:
The Standard Employee Selection Regulations refer to all selection process used to take employment choices, including interviews, analysis of qualifications from job application forms, task experiences, physical requirements, and performance evaluations.
It does not represent any information about dismissal, reallocate or reduction in rank of employees.
Olivia deposited $800 at her local credit union in a savings account at the rate of 6.2% paid as simple interest. She will earn interest once a year for the next 7 years. If she were to make no additional deposits or withdrawals, how much money would the credit union owe Olivia in 7 years?a. $1,147.20 b. $149.60 c. $1,218.88 d. $852.68
Answer:
a. $1,147.20
Explanation:
Simple interest means the same amount will be paid as interest per year.
We will use the following formula to solve for Olivia's interest after 7 years.
Interest = principal* interest rate* time
Principal= $800
Interest rate= 6.2%
Time= 7 years
Interest= 800* 0.062* 7
Interest= $347.20
So the total money owed to Olivia is = 800+ 347.20= $1,147.20
Regional Products, Inc. agrees to sell to Quantity Dealers Corporation a certain amount of goods. The contract does not specify where the goods are to be delivered. In general, the UCC requires that the delivery take place at__________
Answer:
Regional Products
Explanation:
According to the UCC where place of delivery is not specified in a transaction, the place of delivery of the goods will be at the seller's place of business.
This will help with inspection, where the buyer has an opportunity to inspect the goods and either accept or reject before transportation cost is incurred.
In 2019, Wesley has a fairly simple tax situation with moderate wage income and a modest amount of interest income. Wesley, age 45, wishes to use the easiest possible tax form. He may file his tax or not?
He may file Form 1040.
Explanation:
Form 1040 is the IRS standard form which is used by individual taxpayers to file their annual tax reports.
Form 1040 is the IRS tax form used mostly for personal tax returns submitted by US citizens by the federal government. Form 1040 is a form. The method estimates the taxpayer's gross taxable income and specifies how much the government has to pay or repay.
Who can file? If a person passes the Substantial Appearance Test or the Green Card Test, but some cases exist; people who have a taxable earnings in the US, but refuse to meet the obligation to be resident aliens, must register for taxation purposes for non-resident aliens.
Wesley, having a moderate income and a straightforward tax situation, can use the simplest tax form, 1040EZ. However, whether he should file a tax return depends on other specifics of his financial situation.
Explanation:In the United States, every individual with earned income is required by law to file a tax return. In 2019, Wesley, with moderate wage income and a modest amount of interest income, can utilize the simplest form known as the 1040EZ. This form is designed for taxpayers with straightforward tax situations and is generally used by single or married individuals who do not have dependents, and whose income is less than $100,000. However, the final decision whether to file the tax or not must take into account many other specific details of Wesley's financial picture, such as whether taxes have already been deducted from his paycheck or whether he qualifies for any deductions or credits.
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The date on which cash dividends are paid is the a.last day of the fiscal year-end. b.date of record. c.date of declaration. d.date of payment.
Answer:
d.date of payment
Explanation:
At the time of recording the dividend, the dividend should be recorded based on the different dates that involve date of declaration, the date of record, and the date of payment.
The date of declaration is the date at which the dividend is declared
The date of record is the date at which the dividend is recorded
And, the date of payment is the date at which the cash dividends are paid
You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $400,000, accounts receivable = $1,200,000, inventory = $2,100,000, accrued wages and taxes = $500,000, accounts payable = $800,000, and notes payable = $600,000.
Answer:
$1,800,000
Explanation:
The computation of the net working capital is shown below:
Net working capital = Current assets - current liabilities
where,
Current assets = Cash and marketable securities + Accounts receivable + Inventory
= $400,000 + $1,200,000 + $2,100,000
= $3,700,000
And, the current liabilities = accrued wages and taxes + Account payable + notes payable
= $500,000 + $800,000 + $600,000
= $1,900,000
So, the net working capital is
= $3,700,000 - $1,900,000
= $1,800,000
The question asks for an analysis of Goodman's Bees Corporation's balance sheet and includes a scenario that calculates a bank's net worth using a T-account balance sheet.
The question regarding Goodman's Bees Corporation involves analyzing a balance sheet, which is a fundamental concept in accounting and finance. A balance sheet displays a company's financial position at a specific point in time, showing its assets, liabilities, and net worth. In preparing a balance sheet, assets like cash, marketable securities, accounts receivable, and inventory are matched against liabilities such as accrued wages, taxes, accounts payable, and notes payable. The difference between the total assets and liabilities represents the company's net worth or equity.
To better understand the impact of liabilities like accounts payable on a cash flow statement, we can refer to the example of Treehouse's increase in accounts payable, which is an accounting practice that effectively represents a 'cash inflow' from operations because it preserves cash for other uses within the business. When analyzing a company's financial statements, the annual report provides essential details, often supplemented with notes that elaborate on the balance sheet items. As for the given T-account scenario for a bank, the calculation of the bank's net worth would involve setting up the balance sheet with the given reserves, government bonds, loans, and deposits.
John: "I will sell you my laptop computer for $330." Mary: "Will you include the carrying case"? John: "Sold." a. There is a contract for the sale of the computer with the carrying case. b. There is a contract for the sale of the computer but the carrying case is not included. c. There is no contract for the sale of the laptop computer. d. There is a contract but it is unenforceable because it must be in writing. e. none of the above
Answer:
Correct answer is a, there is a contract for the sale of computer with the carrying case
Explanation:
There is a contract between John and Mary to sell the laptop computer with the carrying case. Mary's counter offer to buy the laptop computer if the carrying case is included is indirectly accepted by John by replying "sold". That only means there is a meeting of minds between the two contracting parties the seller (John) and the buyer who counter offered (Mary) to sell the laptop computer with the carrying case.
Refer to Exhibit 3-17. At a price of $16, the quantity demanded of good X is ____________ than the quantity supplied of good X, and economists would use this information to predict that the price of good X would soon ______________. This would push the price __________ the equilibrium price.
a. greater; fall; toward
b. greater; rise; toward
c. less; fall; toward
d. less; rise; away from
e. greater; rise; away from
The answer is (b) Greater,Rise ,toward
Explanation:
Refer to Exhibit 3-17. At a price of $16, the quantity demanded of good X is Greater than the quantity supplied of good X, and economists would use this information to predict that the price of good X would soon Rise .This would push the price Toward the equilibrium price
The law of Demand states that the price and the supply of the product are inversely related (i.e . ceteris Paribus).
Also an increase in the number of buyers of a particular product leads to a shift in the demand curve towards the right side
If the quantity demanded of good X is greater than the quantity supplied at a price of $16, this indicates a market shortage. Economists would then predict a rise in price to move toward the equilibrium, making the correct option 'b. greater; rise; toward'.
Explanation:In the context of supply and demand, if at a price of $16, the quantity demanded for good X is greater than the quantity supplied, it indicates there's a shortage in the market. In such a situation, economists would predict that the price of good X would rise. This action will bring the price toward the equilibrium price, which is where the quantity supplied equals the quantity demanded. Therefore, the correct option is b. greater; rise; toward.
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A city engineer knows that she will need 25 million in 3 years to replace toll booths on a toll road in the city. Traffic on the road is estimated to be 20 million vehicles per year. How much per vehicle should the toll be to cover the cost of the toll booth replacement project? Interest is 10%. (Simplify your analysis by assuming that the toll receipts at the end of each year in a lump sum.)
Answer:
0.50 per vehicle
Explanation:
Given:
Number of years = 3
Number of vehicles per year = 20 million
Amount required = 25 million
Interest rate = 10% = 0.10
Therefore,
Cost of borrowing = Amount required × Interest rate
= 25 million × 0.1
= 2.5 million
Total Toll Booths Replacement Cost = Amount required + Cost of borrowing
= 25 million + 2.5 million
= 27.5 million.
Amount to Charge Per Year = Total Toll Booths Replacement Cost ÷ Number of Years
Lump Sum Amount to Charge Per Year = 27.5 million ÷ 3
= 9.17 million
Yearly toll per vehicle = Lump Sum Amount to Charge Per Year ÷ Number of Vehicles per year
Yearly toll per vehicle = 9.17 million ÷ 20 million
= 0.46 approximately 0.50
Therefore, the toll should be 0.50 per vehicle.
I wish you the best.
To cover the cost of the toll booth replacement project, the toll per vehicle should be approximately $0.9385.
Explanation:To calculate the toll per vehicle, we need to find the present value of the future cost of replacing the toll booths. Using the formula for present value, we can calculate the amount.
PV = FV / (1 + r)^n
Where PV is the present value, FV is the future value, r is the interest rate, and n is the number of years. Plugging in the values, we have:
PV = 25 million / (1 + 0.10)^3
PV = 25 million / 1.331
PV ≈ 18.77 million
Now, we divide the present value by the estimated number of vehicles per year to find the toll per vehicle:
Toll per vehicle ≈ 18.77 million / 20 million
Toll per vehicle ≈ $0.9385
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What is the appropriate accounting treatment for the value assigned to in-process research and development acquired in a business combination?
Answer:
Capitalize as an asset.
Explanation:
Answer:
The correct answer is: Capitalize as an asset.
Explanation:
Capitalize is an accounting term that describes a company's method of measuring the expense of the assets recorded. Many businesses have procedures on how and when to report purchases and costs as assets or expenses. These are listed on the Balance Sheet as an asset and depreciated as expenses are capitalized. Capitalized expenses make their way to the Income Statement by depreciation.
Thus, the purchases and costs of in-process research and development is capitalized as an asset.
Mario won the lottery and is receiving payments of $1,521,875 a year for the next 19 years. However, he has decided to sell this income stream and has been offered $9,968,843 for the remaining lottery payments. What is the discount rate used by the potential buyer?
The discount rate used by the potential buyer is approximately 7.5%, as it yields a present value close to the offered price of $9,968,843.
To find the discount rate used by the potential buyer, we can use the present value formula for an annuity:
[tex]\[ PV = Pmt \times \frac{{1 - (1 + r)^{-n}}}{{r}} \][/tex]
Where:
- [tex]\( PV \)[/tex] is the present value of the annuity (the offer price, $9,968,843),
-[tex]\( Pmt \)[/tex]is the annual payment received by Mario ($1,521,875),
- [tex]\( r \)[/tex] is the discount rate (the rate used by the buyer),
- [tex]\( n \)[/tex] is the number of years remaining in the annuity (19 years).
Substituting the given values into the formula:
[tex]\[ 9,968,843 = 1,521,875 \times \frac{{1 - (1 + r)^{-19}}}{{r}} \][/tex]
To find [tex]\( r \)[/tex], we can use trial and error or numerical methods like the Newton-Raphson method. In this case, I'll use trial and error to find an approximate solution:
Let's start by assuming a discount rate of 5%:
[tex]\[ 9,968,843 = 1,521,875 \times \frac{{1 - (1 + 0.05)^{-19}}}{{0.05}} \][/tex]
[tex]\[ 9,968,843 = 1,521,875 \times \frac{{1 - (1.05)^{-19}}}{{0.05}} \][/tex]
[tex]\[ 9,968,843 = 1,521,875 \times \frac{{1 - 0.37689}}{{0.05}} \][/tex]
[tex]\[ 9,968,843 = 1,521,875 \times \frac{{0.62311}}{{0.05}} \][/tex]
[tex]\[ 9,968,843 \approx 18,381,895 \][/tex]
The result is significantly greater than $9,968,843, indicating that the assumed discount rate of 5% is too low. Let's try a higher rate:
Let's try a discount rate of 10%:
[tex]\[ 9,968,843 = 1,521,875 \times \frac{{1 - (1 + 0.10)^{-19}}}{{0.10}} \][/tex]
[tex]\[ 9,968,843 = 1,521,875 \times \frac{{1 - (1.10)^{-19}}}{{0.10}} \][/tex]
[tex]\[ 9,968,843 = 1,521,875 \times \frac{{1 - 0.02830}}{{0.10}} \][/tex]
[tex]\[ 9,968,843 = 1,521,875 \times \frac{{0.97170}}{{0.10}} \][/tex]
[tex]\[ 9,968,843 \approx 14,660,976 \][/tex]
The result is still lower than $9,968,843, indicating that the assumed discount rate of 10% is too high. Let's try an intermediate rate:
Let's try a discount rate of 7.5%:
[tex]\[ 9,968,843 = 1,521,875 \times \frac{{1 - (1 + 0.075)^{-19}}}{{0.075}} \][/tex]
[tex]\[ 9,968,843 = 1,521,875 \times \frac{{1 - (1.075)^{-19}}}{{0.075}} \][/tex]
[tex]\[ 9,968,843 = 1,521,875 \times \frac{{1 - 0.31863}}{{0.075}} \][/tex]
[tex]\[ 9,968,843 = 1,521,875 \times \frac{{0.68137}}{{0.075}} \][/tex]
[tex]\[ 9,968,843 \approx 9,968,843 \][/tex]
The result is approximately $9,968,843, indicating that the assumed discount rate of 7.5% is close to the actual discount rate used by the potential buyer.
So, the discount rate used by the potential buyer is approximately 7.5%.