Answer:
a) high initial costs and fees
Explanation:
A franchise is formed when a business obtains the licence to use another business's brand to operate.
The franchisor (brand owner) usually gives managerial assistance, training, and other needed support.
The franchisee is the entity using the franchisor's brand name. There is usually an initial royalty payment and other fees paid the use the franchisor's brand.
The journal entry to write-off a significant underapplied overhead balance at the end of an accounting period is:
A. Applied Manufacturing Overhead xxx
Cost of Goods Sold xxx
Manufacturing Overhead Control xxx
B. Applied Manufacturing Overhead xxx
Cost of Goods Sold xxx
Manufacturing Overhead Control xxx
C. Applied Manufacturing Overhead xxx
Work-In-Process Inventory xxx
Finished Goods Inventory xxx
Cost of Goods Sold xxx
Manufacturing Overhead Control xxx
D. Applied Manufacturing Overhead xxx
Work-In-Process Inventory xxx
Finished Goods Inventory xxx
Cost of Goods Sold xxx
Manufacturing Overhead Control xxx
Option A
Option B
Option C
Option D
Answer:
Option C
Explanation:
The journal entry to write-off underapplied overhead is shown below:
Applied Manufacturing Overhead xxx
To Work-In-Process Inventory xxx
To Finished Goods Inventory xxx
To Cost of Goods Sold xxx
To Manufacturing Overhead Control xxx
(Being the underapplied overhead written off is recorded)
The work in process inventory, finished goods inventory, and the cost of goods sold would be written off based on the overhead applied.
Read the following short scenario. Then select the response that best describes your views.
ABC Insurance Company served the inner-city area of a large western city with homeowners insurance. Recently, because of civil unrest, payment of claims exceeded estimates and the company found itself in the position of having to substantially reduce the dividend payment to its shareholders. The research department suggested the company cancel all policies in the inner city area and begin writing policies in the more affluent subdivisions of the city.
1. No ethical concern
2. Minor ethical concern
3. Moderate ethical concern
4. Important ethical concern
5. \Extremely important ethical concern
Answer:
4.
Explanation:
The response that best describes the views is, Important ethical concern. The suggestion to cancel all policies in the inner city area and shift focus to more affluent areas raises an important ethical concern, that could be considered redlining.
Hence, the correct option is 4.
The scenario raises an important ethical concern. The suggestion to cancel all policies in the inner city area and shift focus to more affluent subdivisions of the city indicates a potential discriminatory practice. By selectively serving only the more affluent areas and abandoning the inner-city area, the company would be engaging in redlining, which is the unfair practice of denying or limiting services based on geographical location or socioeconomic factors.
This action perpetuates social and economic disparities, further marginalizing an already disadvantaged community. Such a decision based on financial considerations without considering the impact on the affected community raises significant ethical concerns.
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a. How can increases in government spending crowd out investment spending? An increase in government spending increases the use of automatic stabilizers, which reduces private investment spending. causes firms to worry about inflation, which reduces private investment spending. increases the real interest rate, which reduces private investment spending. lowers the real interest rate, which reduces private investment spending. b. Is crowding out a major concern when actual output is below potential output? Why? Crowding out is a major concern, because the goal is always to increase investment spending. is not a major concern, because the Fed will likely lower the real interest rate when actual output is far below potential. is a major concern, because the crowding out effect will outweigh the increase in government spending. is not a major concern, because the Fed will likely raise the real interest rate when actual output is above potential output.
Answer:
a. increases the real interest rate, which reduces private investment spending.
b. is not a major concern, because the Fed will likely lower the real interest rate when actual output is far below potential.
Explanation:
Increase in government spending means that the government would probably have to borrow money from the credit market. Because the government is so large, it will borrow in large amounts which would force rates to rise. At these higher rates, the private sector might find it too expensive to borrow money and so would be crowed out such that they reduce their investment spending.
When the economy is facing an output that is lower than potential, the Fed will engage in monetary policy aimed at reducing interest rates to improve investment spending. This therefore negates the effect of crowing out which means that it would no longer be a major concern.
Choose from the option list provided the procedure the auditor could implement to test the operating effectiveness of the internal control for each of the following situations. Each choice may be used once, more than once, or not at all.
1. To determine that all credit sales transactions of an entity are recorded.
2. To detect a failure to post invoices to customers' accounts ledger.
3. To detect failure to invoice a shipment.
4. To ensure sales orders are properly authorized.
5. To determine goods sent to customers are based only on authorized sales orders.
6. To verify the completeness of cash receipts for cash sales at a retail outlet
7. To ensure cash receipts are deposited.
Answer:
Note: Missing word (list) are attached as picture below
1. To determine that all credit sales transaction of an entity are recorded
Procedure to implement: Match pre-numbered shipping documents with entries in sales journal.
2. To detect a failure to post invoice to customer account ledger
Procedure to implement: Trace Sales invoices to account receivable subsidiary ledger
3. To detect failure to invoice a shipment
Procedure to implement: Vouch bill of lading file to approved sales invoice
4. To ensure sales orders are properly authorized
Procedure to implement: Confirm sales orders were sent to the credit department
5. To determine goods sent to customers are based only on authorised sales order
Procedure to implement: Match bill of lading file to approved sales order
6. To verify the completeness of cash receipts for cash sales at a retail outlet
Procedure to implement: Observe consistency of employee's use cash registers and tapes
7. To ensure cash receipts are deposited
Procedure to implement: Compare daily cash receipts total with bank deposits
Net Present Value Analysis [LO12-2] Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company has mineral rights. An engineering and cost analysis has been made, and it is expected that the following cash flows would be associated with opening and operating a mine in the area:
Cost of new equipment and timbers $ 275,000
Working capital required $ 100,000
Annual net cash receipts $ 120,000
Cost to construct new roads in year three $ 40,000
Salvage value of equipment in four years $ 65,000
Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth. The mineral deposit would be exhausted after four years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company’s required rate of return is 20%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.
Required:
a. What is the net present value of the proposed mining project?
b. Should the project be accepted?
Answer:
NPV = $-56,153.55
The project should not be accepted because the NPV is negative
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
because it is the most profitable.
Cash flow in year 0 = $275,000 + $100,000 = $-375,000
Cash flow in year 1 = $ 120,000
Cash flow in year 2 = $ 120,000
Cash flow in year 3 = $ 120,000 - $40,000 = $80,000
Cash flow in year 4 = $ 120,000 + $65,000 = $185,000
I = 20%
NPV = $-56,153.55
The project should not be accepted because the NPV is negative
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
TB MC Qu. 20-94 Masterson Companys budgeted... Masterson Company's budgeted production calls for 67,000 units in April and 63,000 units in May of a key raw material that costs $1.65 per unit. Each month's ending raw materials inventory should equal 20% of the following month's budgeted materials. The April 1 inventory for this material is 13,400 units. What is the budgeted materials purchases for April
Answer:
Total Purchases(in $) 109,230
Explanation:
The computation of the budgeted material purchase is shown below;
Budgeted Production (in units) 67,000
Add:-Desired Ending Inventory (20% of 63,000) (in units) 12,600
Total needed (in units) 79,600
Less:-Opening Inventory (in units) 13,400
Total Purchases (in units) 66,200
Price per unit(in $) 1.65
Total Purchases(in $) 109,230
Hence, the same would be relevant
Jamieson Enterprises has presented the following information for the past year of operations Month Units Total Cost January 2,800 $ 9,200 February 3,500 $ 11,300 March 1,900 $ 6,500 April 2,700 $ 8,900 May 4,500 $ 14,300 June 5,300 $ 16,700 July 7,200 $ 22,400 August 5,100 $ 16,100 September 4,700 $ 14,900 October 3,900 $ 12,500 November 3,400 $ 11,000 December 2,400 $ 8,000 a. Using the high-low method, calculate the fixed cost per month and variable cost per unit. b. What would total costs be for a month with 8,200 units produced?
Answer:
a.
VC/unit = $3 per unit
Fixed Cost = $800
b.
Total Cost = $25400
Explanation:
a.
The high-low method is used to separate the components of a mixed cost and it calculates the variable cost component in a mixed cost. The formula to calculate the variable cost per unit under the high-low method is as follows,
VC/unit = [Highest Activity cost - Lowest Activity Cost] / [Highest Activity units - Lowest Activity units]
VC/unit = [22400 - 6500] / [7200 - 1900]
VC/unit = $3 per unit
Using figures from March, The total fixed costs will be,
Fixed cost = 6500 - [3 * 1900]
Fixed Cost = $800
b.
Total cost in a month with 8200 units will be,
Total Cost = Total Fixed cost + Total variable costs
Total Cost = 800 + (3 * 8200)
Total Cost = $25400
The act of attempting to acquire information such as user names passwords and credit card details by acting as a trustworthy entity in an electric communication is called
Phishing is the practice of pretending to be a reliable entity in an electronic conversation in order to get sensitive data such as usernames, passwords, credit card information, and occasionally even money (indirectly).
What happens when someone pretends to be a reliable internet source in order to try and get information like usernames or passwords?Phishing is the fraudulent act of pretending to be a reliable entity in an electronic contact in order to get sensitive information like usernames, passwords, and credit card numbers.
Is it an attempt to get sensitive information such credit card numbers, usernames, and passwords?Phishing is the practice of pretending to be a reliable entity in an electronic communication in order to get sensitive data, such as usernames, passwords, and credit card numbers.
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A new strip mall is being considered and the developers want to determine how many parking spaces there should be. It is assumed that if the lot is full, an arriving car will leave. Cars arrive at a rate of 15/hour. The average time a customer spends shopping is 30 minutes. Assume the interarrival times and the shopping times are exponentially distributed. Assume the average shopper purchases $150 worth of merchandise and also assume the mall is open 12 hours/day, 350 days/year.
a) If there are 10 spaces, determine the throughput rate of cars departing after completing shopping, the expected number of cars in the parking lot and the rate of lost revenue due to cars leaving because they could not find a space to park.
b) Assume the cost to create a parking spot is $2500. Assuming a 5 year horizon and an internal interest rate of 15%, how many spots should be built to minimize the combined construction and lost revenue costs?
Answer:
The responses to the given question can be defined as follows:
Explanation:
For point a:
Car arrival time[tex]= \frac{15}{hour}[/tex]
Each car arrives at an interval of time of [tex]\frac{60}{15} = 4\ minutes[/tex]
process time [tex]=0.5 \ hour[/tex]
The number of vehicles moving in an hour equals 2 per hour.
As [tex]\frac{15}{2}[/tex] is greater than 1. The device will not work, resulting in such a revenue loss.
Within 44 minutes, a parking lot would be completely full, with only 1 person being serviced, and then the next empty slot would be completed 64 minutes later.
The system's production capacity is 8.5 per hour [a person entering at 0 will exit at 30]. The person that comes in at 4 will leave at 34. Roughly 50 customers would be supported for an hour.
For point b:
The number of customers would be [tex]= 8.5 \times 12 = 102[/tex] for a 12-hour time frame.
Total cost=[tex]12\times 150 = \$1800[/tex]
The total number of customers to be served at an expense of [tex]2500= \frac{2500}{150} = 18[/tex] customers.
g Assume you just purchased 100 shares of Apple stocks at $300. You are worrying that the competition from other tablet PC and smart phone producers will have a negative impact on Apple stock prices in 1 month. Generally speaking, you are still quite bullish on Apple stock. In order to hedge against this downside risk, you establish a protective put position by buying a put option contract with around 1-month maturity on Apple stock. However, the premium of the put option with strike price at $300 is $12, which is quite expensive. If you feel purchasing the put option with strike price at $300 and $12 premium is too expensive, what else can we do to reduce the cost of protective put position
Answer:
Buy at a lower strike put option or sell at a higher call option
Explanation:
100 shares of apple stock bought at $300
premium of put option ( cost ) = $12
Put option = $300
What can be done to reduce the cost of protective put position
To reduce the cost we can either buy at a lower strike put option or sell at a higher call option
Buying at a lower strike put option price ( < $300 )
This way premium will be reduced but this will not hedge against small fall in price
Sell at a higher call option
This way the premium charged will be reduced but if the price rises above the entry price on expiration then the gains made above the price will be foregone .
On January 1 of this year, Barnett Corporation sold bonds with a face value of $500,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest annually on December 31. Barnett uses the effective-interest amortization method. Ignore any tax effects. Each case is independent of the other cases.
Complete the table below using the factors provided.
Case A (7%) Case B (8%) Case C (6%)
Cash received at issuance
Interest expense recorded in Year 1
Cash paid for interest in Year 1
Cash paid at maturity for bond principal
Answer:
Barnett Corporation
Table
Case A (7%) Case B (8%) Case C (6%)
Cash received at issuance $500,000 $466,449.59 $536,800.44
Interest expense recorded in Year 1 35,000 37,315.97 32,208.03
Cash paid for interest in Year 1 35,000 35,000 35,000
Cash paid at maturity for
bond principal $500,000 $500,000 $500,000
Explanation:
a) Data and Calculations:
Face value of bonds issued = $500,000
Coupon rate = 7% annually
Maturity period = 10 years
Case A (7%) Case B (8%) Case C (6%)
Cash received at issuance $500,000 $466,449.59 $536,800.44
Interest expense recorded in Year 1 35,000 37,315.97 32,208.03
Cash paid for interest in Year 1 35,000 35,000 35,000
Cash paid at maturity for
bond principal $500,000 $500,000 $500,000
Bonds Issuance At Par value At Discount At Premium
Cash received at issuance:
Case A (7%) Issued at par value
PV = Face Value/(1+0.07)^10
= $500,000/(1.07)^10
From an online calculator:
N (# of periods) 10
I/Y (Interest per year) 7
PMT (Periodic Payment) 35000
FV (Future Value) 500000
Results
PV = $500,000.00
Sum of all periodic payments $350,000.00
Total Interest $350,000.00
Interest expense for the first year = $35,000 ($500,000 * 7%)
Case B (8%) Issued at a discount
PV = Face Value/(1+0.08)^10
= $500,000/(1.08)^10
From an online calculator:
N (# of periods) 10
I/Y (Interest per year) 8
PMT (Periodic Payment) 35000
FV (Future Value) 500000
Results
PV = $466,449.59
Sum of all periodic payments $350,000.00
Total Interest $383,550.41
Interest expense for the first year = $37,315.97 ($466,449.59 * 8%)
Case C (6%) Issued at a premium
PV = Face Value/(1+0.06)^10
= $500,000/(1.06)^10
From an online calculator:
N (# of periods) 10
I/Y (Interest per year) 6
PMT (Periodic Payment) = 35000
FV (Future Value)
500000
Results
PV = $536,800.44
Sum of all periodic payments = $350,000.00
Total Interest $313,199.56
Interest expense for the first year = $32,208.03 ($536,800.44 * 6%)
On January 1 of this year, Houston Company issued a bond with a face value of $18,000 and a coupon rate of 6 percent. The bond matures in 3 years and pays interest every December 31. When the bond was issued, the annual market rate of interest was 5 percent. Houston uses the effective-interest amortization method. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.) Required: 1. Complete a bond amortization schedule for all three years of the bond's life. (Enter all values as positive values.)
Answer:
Houston Company
The Bonds Amortization Schedule
Period PV PMT Interest FV
1 $18,490.18 $1,080.00 $924.51 $18,334.69
2 $18,334.69 $1,080.00 $916.73 $18,171.43
3 $18,171.43 $1,080.00 $908.57 $18,000.00
Explanation:
a) Data and Calculations:
Face value of bond = $18,000
Coupon rate = 6%
Annual coupon payment = $1,080 ($18,000 * 6%)
From an online financial calculator, the PV of the bond = $18,490.18:
N (# of periods) 3
I/Y (Interest per year) 5
PMT (Periodic Payment) = $1,080
FV (Future Value) = $18,000
Results
PV = $18,490.18
Sum of all periodic payments = $3,240.00
Total Interest = $2,749.82
The employers who physically move inventory items for storage or shipment are called _____.
A.) Shipping clerks
B.) Receiving clerks
C.) Logisticians
D.) Materials Handlers
Answer:
Materials Handlers
The employers who physically move items for storage or shipment are known as the materials handlers. The materials handlers are those who have worked almost on their own. Hence, option D is appropriate.
Who are the Material handlers?The material handlers are tasked with the job to look after the materials or the commodities which are going to be supplied. These materials need to be taken into custody.
The task of the material handlers is to pull and check the products of the customers as well as the clients. Thus, by allowing the Quality Assurance of the product.
The Materials handlers also verify the productsby pulling up the inventory. Hence, option D is correct.
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Different cultures have different ways of greeting each other in the business world.
Is this statement true or false?
A. true
B. false
Answer:
this statement is true.............
In preparing its August 31, 2020 bank reconciliation, Vaughn Manufacturing has available the following information:
Balance per bank statement, 8/31/20 $25750
Deposit in transit, 8/31/20 3480
Return of customer's check for insufficient funds, 8/30/20 600
Outstanding checks, 8/31/20 2760
Bank service charges for August 100
At August 31, 2020, Vaughn's correct cash balance is :_________
a. $25030.
b. $25770.
c. $26470.
d. $25870.
Answer:
c. $26470
Explanation:
Calculation to determine what Vaughn's correct cash balance is
Using this formula.
Correct cash balance =Balance per bank statement + Deposit in transit - Outstanding checks
Let plug in the formula
Correct cash balance= $25750 + 3480 - 2760
Correct cash balance=$26470
Therefore At August 31, 2020, Vaughn's correct cash balance is:$26470
the graph at right shows the situation after the u.s. removes a tariff on imports of canned tuna.
A. C.
B. A+B+C+D.
C. A.
D. B+C+D.
Which area shows the loss in producer surplus?
A. B+C+D.
B. A+B.
C. A.
D. A+B+C+D.
Which area shows the loss in government tariff revenue?
A. A.
B. C.
C. A+B+C+D.
D. B+C+D.
Which areas show the reduction in deadweight loss?
A. B+C+D.
The graph that shows the situation when the U.S. removes a tariff on imports of canned tuna shows that the gain in consumer surplus is B. A+B+C+D.
The area which shows the loss of producer surplus is C. A.
The area which shows the loss in government tariff revenue is B. C.
The area showing a reduction in deadweight loss is B+D.
What happens when a tariffs are lifted ?When a tariff is lifted, the price of the good or service usually decreases, which increases consumer surplus. Consumers are able to purchase the same goods and services for a lower price, which results in a larger consumer surplus.
The price of the good or service usually decreases, which decreases producer surplus. Producers receive a lower price for the same goods and services, which results in a smaller producer surplus.
The government no longer receives revenue from that tax. Therefore, government revenue decreases when a tariff is lifted. The market becomes more efficient as the price of the good or service decreases, this leads to a decrease in deadweight loss.
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Assume that a gourmet food manufacturer has considered renting a booth at a local mall to sell gift boxes of candy, nuts, and cookies during the holiday season. The fixed costs to rent and operate the booth would be $27,900. The unit contribution margins and sales mix anticipated by the company are as follows: Unit Contribution Margin Sales Mix Candy $1.50 50% Nuts $2.00 30% Cookies $1.00 20% What would be the weighted average contribution margin
Companies often require non-disclosure agreements from their employees because a non-disclosure agreement
allows the employer to release private information about employees if necessary
identifies all the different ways an employee could violate company policies
maintains employee trust, which is needed for productivity and therefore profitability
provides for a documented exchange of information between employees and employers
A non-disclosure agreement (NDA) is a legally binding contract that establishes a confidential connection. The signatory(s) declare that they will not share any private information they may gather with outside parties. As a result, choice (B) is acceptable.
What is non-disclosure agreement (NDA)?Companies regularly utilize non-disclosure agreements while engaging in discussions with other businesses. They provide the parties the ability to communicate privately without being concerned that their competitors will learn about it. In this case, it might be referred to as a mutual non-disclosure agreement.
It is common for the NDA to be signed before any discussions between companies about potential joint ventures.
NDAs are commonly requested of employees in order to protect a company's confidential business information.
Hence, option (B) is accurate.
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On December 31, 2019, Metlock Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Metlock to make annual payments of $8,482 at the beginning of each year of the lease, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Metlock uses the straight-line method of depreciation for all of its plant assets. Metlockâs incremental borrowing rate is 5%, and the lessorâs implicit rate is unknown.
Required:
Compute the present value of the lease payments.
Answer:
$38,559
Explanation:
Computation of present value of lease payments
Using this formula
Present value of lease payments=annual payments*Present value of an annuity due of 1 for 5 periods at 5%
Let plug in the formula
Present value of lease payments=$8,482 × 4.54595
Present value of lease payments= $38,559
Therefore the present value of lease payments is $38,559
Consider a bond selling at par with modified duration of 12 years and convexity of 265. A 1% decrease in yleld would cause the price to Increase by 12%, according to the duration rule. What would be the percentage price change according to the duration- with-convexity rule?
a. 21.2%
b. 13.3%
c. 25.4%
d. 17.0%
Answer:
b. 13.3%
Explanation:
Calculation to determine What would be the percentage price change according to the duration- with-convexity rule
Using this formula formula
∆P/P = -D*∆y + (1/2) * Convexity * (∆y)^2
Let plug in the formula
∆P/P = -12 * -.01 + (1/2) * 265 * (.01)^2
∆P/P = .12 + .01325
∆P/P = .13325*100
∆P/P=13.3%
Therefore What would be the percentage price change according to the duration- with-convexity rule is 13.3%
In late 2018, malnutrition was widespread in Venezuela. Writing in an opinion column in the New York Times, Javier Corrales argued, "The government is making the crisis worse by...imposing more price controls." Source: Javier Corrales, "The Venezuelan Crisis Is Part of Maduro's Plan," New York Times, September 25, 2018. Shouldn't price controls help reduce malnutrition by lowering the price of food so more people can afford it? A. No. Price controls are intended exclusively to help support farmers to ensure that they are receiving a high enough price for their products to be able to keep supplying food. B. No. Imposing a price control below the equilibrium price in a market causes the quantity of the good available to consumers to fall because sellers will supply a smaller quantity, thereby causing some consumers to go without food that they would have been able to buy in the absence of the price control. C. Yes. Price controls, by definition, will always help reduce malnutrition by lowering the price of food so more people can afford it. D. No. Imposing a price control above the equilibrium price in a market causes the quantity of the good available to consumers to fall because sellers will supply a smaller quantity, thereby causing some consumers to go without food that they would have been able to buy in the absence of the price control.
Answer: B. No. Imposing a price control below the equilibrium price in a market causes the quantity of the good available to consumers to fall because sellers will supply a smaller quantity, thereby causing some consumers to go without food that they would have been able to buy in the absence of the price control.
Explanation:
If price controls are introduced below the equilibrium price in the market, farmers or sellers will supply less to the market because they will not be incentivized to produce more seeing as they are not making what they should be making.
This, coupled with increased demand on account of food being cheaper, will lead to shortages which would mean that those that could have been able to afford the food at the equilibrium price would not be able to access food leading to even worse food shortages.
Bentonville Inc. bases its marketing and administrative expense budget on budgeted unit sales. The sales budget shows 4,900 units are planned to be sold in December. The variable marketing and administrative expense is $4.80 per unit. The budgeted fixed marketing and administrative expense is $93,100 per month, which includes depreciation of $8,420 per month. The remainder of the fixed marketing and administrative expense represents current cash flows. The cash disbursements for marketing and administrative expenses on the December marketing and administrative expense budget should be:
Answer:
$108,200
Explanation:
Marketing and Administrative Budget
Budgeted unit sales 4,900
Variable marketing and administrative expense per unit *$4.80
Variable marketing and administrative expense $23,520
Fixed marketing and administrative expense $93,100
Total marketing and administrative expense $116,620
Less: Depreciation $8,420
Cash disbursements for marketing $108,200
and administrative expenses
Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the following information:
Income Statement for Current Year Service revenue $ 52,500
Expenses Salaries $ 42,000
Depreciation 8,100
Amortization of copyrights 270
Other expenses 10,000 60,370
Net loss $ (7,870)
Partial Balance Sheet
Current Year Prior Year Accounts receivable $ 8,800 $ 15,200
Salaries payable 13,000 1,300
Other accrued liabilities 3,000 6,300
In addition, Rodriguez bought a small service machine for $5,900.
Required: 1. Present the operating activities section of the statement of cash flows for Rodriguez Company using the indirect method. (List loss amount and cash outflows as negative amounts.)
Answer: Please find answers in explanation column
Explanation:
Rodriguez Company
Statement of Cash flow(Partial)
Cash flows from operating activities Amount
Net Loss $(7,870)
Add: Depreciation $ 8,100
Add: Increase in Salaries Payable $11,700 ($13,000 − $1,300)
Add: Decrease in Accounts receivable $6,400 ($15,200 − $8,800)
Add: Amortization of Copy Rights $270
Less: Decrease in Other accrued $(3,300) ($3,000− $6,300)
liabilities
Net Cash provided by Operating $15,300
Activities
Joint-cost allocation, insurance settlement Quality Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2009 is:
Wholesale Selling Price per Pound
Parts Pound of Product When Production Is Complete
Joint cost of production in July 2009 was $50.
A special shipment of 40 pounds of breasts and 15 pounds of wings has been destroyed in a fire. Quality Chicken’s insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits Quality Chicken to use a joint-cost-allocation method. The splitoff point is assumed to be at the end of the production process.
1. Compute the cost of the special shipment destroyed using the following:
a. Sales value at splitoff method.
b. Physical-measure method (pounds of finished product).
2. What joint-cost-allocation method would you recommend Quality Chicken use? Explain.
Question Completion:
Sales Qty Sales
in Pound (A) Rate (B)
Breasts 100 $0.55
Wings 20 $0.20
Thighs 40 $0.35
Bones 80 $0.10
Feathers 10 $0.05
Answer:
Quality Chicken
1. The cost of the special shipment destroyed using the following:
a. Sales value at splitoff method:
Product Line cost of the special shipment destroyed
Breasts Wings Total
Qty Lost
(in Pound) 40 15 55
Joint cost Per Pound $0.34 $0.12
Cost of destroyed $13.50 $1.84 $15.34
b. Physical-measure method (pounds of finished product):
Product Line cost of the special shipment destroyed
Breasts Wings Total
Qty Lost
(in Pound) 40 15 55
Joint cost Per Pound $0.20 $0.20
Cost of destroyed $8.00 $3.00 $11.00
2. The sales value at split-off method is recommended. It assess different inventories according to their relative market values instead of their historical costs.
Explanation:
a) Data and Calculations:
Sales Qty Sales Sales value Joint Cost
in Pound Rate at Split-off Allocated
Breasts 100 $0.55 $55.00 $33.74 ($55/$81.50) * $50
Wings 20 $0.20 4.00 2.45 ($4/$81.50) * $50
Thighs 40 $0.35 14.00 8.59 ($14/$81.50) * $50
Bones 80 $0.10 8.00 4.91 ($8/$81.50) * $50
Feathers 10 $0.05 0.50 0.31 ($0.50/$81.50) * $50
Total 250 $81.50 $50.00
Joint Cost
Per Pound
Breasts $0.34 ($33.74/100)
Wings $0.12 ($2.45/20)
Thighs $0.21 ($8.59/40)
Bones $0.06 ($4.91/80)
Feathers $0.03 ($0.31/10)
Product Line cost of the special shipment destroyed
Breasts Wings Total
Qty Lost
(in Pound) 40 15 55
Joint cost Per Pound $0.34 $0.12
Cost of destroyed $13.50 $1.84 $15.34
Physical-Measure Method:
Breasts Wings Thighs Bones Feathers Total
Qty in Pound 100 20 40 80 10 250
Allocation of joint cost $20 $4 $8 $16 $2 $50
Weights 40% 8% 16% 32% 4% 100%
Cost per unit $0.20 $0.20 $0.20 $0.20 $0.20
Cost of Product destroyed:
Breasts = $8 ($0.20 * 40)
Wings = $3 ($0.20 * 15)
Total = $11
Which career is best described by someone who organizes and tracks merchandise during storage and display?
O Wholesale Buyer
Marking Clerk
Purchasing Agent
Stock Clerk
Answer:
stock clerk
Explanation:
Answer:
D Stock Clerck :))))
George was in an automobile accident. According to the police report, he was responsible for causing the wreck. The accident was large enough to close down the interstate for an hour. The three people in the other car were rushed to the hospital. The costs associated with the rescue and medical care were $18,000 for each person. Based on the facts of the case, which of the following statements is true?
I. George can expect his PAP premiums to increase in the future.
II. George will be personally liable for any excess damages not covered by insurance.
III. George’s future liability will be exempt if he can prove that he was covered at the state insurance minimum level.
a. I and III only.
b. I and II only.
c. III only.
d. I only.
Answer:
c. III only.
Explanation:
George is responsible for the damages caused but it is also out of control from the George since he does not willingly does the accident. His liability turn out to be $18,000 for the medical care that the victims of the accident incurred. He can exempt his future liability if he can prove that he was covered at state insurance.
All of the following are unacceptable ways to sit during an interview except.
A. with your legs stretched out in front of you.
B. with your legs crossed at the ankles.
C. sitting cross-legged.
D. with your legs crossed at the thigh.
Answer:
With your legs crossed at the ankles
Explanation:
B
To continue to receive federal student aid while attending college, students
academic progress.
must show
O A. selective
B. completed
C. satisfactory
OD. exceptional
The answer is C. satisfactory.
To continue to receive federal student aid while attending college, students must show satisfactory academic progress. This means that they must maintain a certain grade point average (GPA) and complete a certain percentage of the classes they attempt. These requirements vary depending on the school and the type of federal student aid the student is receiving. In general, students must maintain a GPA of at least 2.0 (on a 4.0 scale) and complete at least 67% of their classes in order to remain eligible for federal student aid. If students fail to meet these requirements, they may be placed on academic probation or lose their financial aid altogether. It is important for students to make sure they are making satisfactory progress in order to continue receiving financial assistance while in school.
Hope This Helps You!
Answer:
C
Explanation:
The following information was taken from Slater Company's balance sheet: Fixed assets (net) $1,912,320 Long-term liabilities 460,800 Total liabilities 779,620 Total stockholders' equity 2,293,000 Round your answers to two decimal places. a. Determine the company's ratio of fixed assets to long-term liabilities. fill in the blank 1 b. Determine the company's ratio of liabilities to stockholders' equity. fill in the blank 2
Answer:
4.15
0.34
Explanation:
Repurchase by the company of its own common stock $ 41,000 Sale of long-term investment $ 60,000 Interest paid to lenders $ 15,500 Dividends paid to the company's shareholders $ 70,000 Collection by McCorey of a loan made to another company $ 46,000 Payment of taxes to governmental bodies $ 25,500 On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities. Based solely on the information above, the net cash provided by (used in) investing activities on the statement of cash flows would be
Answer:
The net cash provided by investing activities on the statement of cash flows will be $106,000
Explanation:
Investing activities include all the cash transactions incurred for the fixed asset of the company.
The net cash provided by (used in) investing activities can be calculated as follows
Net cash provided by (used in) investing activities = Sale of long-term investment + Collection by McCorey of a loan made to another company
Where
Sale of long-term investment = $60,000 ( Cash inflow )
Collection by McCorey of a loan made to another company = $46,000 ( Cash Inflow )
Placing values in the fomrula
Net cash provided by investing activities = $60,000 + $46,000 = $106,000