The income of the company, based on the given information, would be $28,000.
The income of the company can be calculated by subtracting the total fixed costs from the total contribution margin. In this case, the contribution margin per unit is given as $36, and the company expects to sell 2,500 units. Therefore, the total contribution margin can be calculated as $36 multiplied by 2,500, which equals $90,000.
Next, we need to consider the total fixed costs incurred by the company, which amount to $62,000. To calculate the income, we subtract the total fixed costs from the total contribution margin: $90,000 minus $62,000 equals $28,000.
Hence, the income of the company, based on the given information, would be $28,000. This represents the amount of money left after deducting the fixed costs from the contribution margin and indicates the potential profitability of the company's operations.
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Math in Finance II
21. The intervals in a frequency distribution should always have the following characteristics? The intervals should always:
A. be truncated
B. be open-ended
C. be nonoverlapping
22. Which of the following groups best illustrates a sample?
A. The set of all estimates for Exxon Mobil's FY2015 EPS
B. The FTSE Euro top 100 as a representation of the European stock market
C. UK shares traded on 13 August 2015 also closed above £120/share on the London Stock Exchange
23. Published ratings on stocks ranging from 1{strong sell) to 5 {strong buy) are examples of which measurement scale?
A. Ordinal
B. interval
C. Nominal
24. In descriptive statistics, an example of a parameter is the:
A. median of a population
B. mean of a sample of observations
C. standard deviation of a sample of observations
25. A mutual fund has the return frequency distribution shown in the following table.
Which of the following statements is correct?
A. The relative frequency of the interval"-1.0 to +2.0" is 20%
B. The relative frequency of the interval"+2.0 to +5.0" is 23%
C. The cumulative relative frequency of the interval"+5.0 to +8.0" is 91.7%
26. Given the conditional probabilities in the table below and the unconditional probabilities P(Y = 1) =
0.3 and P (Y = 2) = 0.7, what is the expected value of X?
A. 5.0
B. 5.3
C. 5.7
27. Given the joint probability table, the expected return of Stock A is closest to:
A. 0.08
B. 0.12
C. 0.15
28. The probability that the DJIA will increase tomorrow is 2/3. The probability of an increase in the DJIA stated as odds is:
A. two-to-one
B. one-to-three
C. two-to-three
29. At a charity ball, 800 names are put into a hat. Four of the names are identical. On a random draw, what is the probability that one of these four names will be drawn?
A. 0.004
B. 0.005
C. 0.010
30. What is the conditional probability of having good stock performance in a poor economic environment?
A. 0.02
B. 0.10
C. 0.30
21. The intervals should always: be nonoverlapping.
22. The FTSE Euro top 100 as a representation of the European stock market. Option B
23. Ordinal. Option A
24. . In descriptive statistics, an example of a parameter is the:median of a population. Option A
25. The relative frequency of the interval"+2.0 to +5.0" is 23%. Optiopn B
26. the expected value of X 5.3. Optiopn B
27. Given the joint probability table, the expected return of Stock A is closest to 0.12. Option B
28. The probability of an increase in the DJIA stated as odds is: two-to-one. Option A
29. the probability that one of these four names will be drawn 0.005. Option B
30. the conditional probability of having good stock performance in a poor economic environment 0.10. Option B
21. C. The intervals in a frequency distribution should always be nonoverlapping. This means that each data point should fall into one and only one interval. Nonoverlapping intervals ensure that the data is properly categorized and counted without duplication or ambiguity. Option C
22.B. The FTSE Euro top 100 as a representation of the European stock market best illustrates a sample. A sample is a subset of a larger population that is selected for analysis or study. The FTSE Euro top 100 represents a specific group of European stocks chosen to provide insight into the performance of the broader European stock market. Option b
23.A. Published ratings on stocks ranging from 1 (strong sell) to 5 (strong buy) are examples of an ordinal measurement scale. An ordinal scale assigns a rank or order to objects or observations based on a particular characteristic or attribute. In this case, the ratings indicate a specific order of preference or recommendation for the stocks. Option A
24. A. The median of a population is an example of a parameter in descriptive statistics. A parameter is a numerical value that describes a population characteristic. In contrast, a sample statistic, such as the mean or standard deviation, is used to estimate or describe a characteristic of a sample. Option A
25.B. The relative frequency of the interval "+2.0 to +5.0" is 23%. Relative frequency is calculated by dividing the frequency of an interval by the total number of observations. In this case, the frequency of the interval "+2.0 to +5.0" is 23, which corresponds to a relative frequency of 23% (23/100). Option B
26.B. The expected value of X can be calculated by multiplying each value of X by its corresponding conditional probability and summing them up. The calculation would be: (1 * 0.3) + (2 * 0.4) + (3 * 0.2) + (4 * 0.1) = 5.3. Option B
27 B. The expected return of Stock A can be calculated by multiplying each return value by its corresponding joint probability and summing them up. The calculation would be: (0.1 * 0.1) + (0.2 * 0.4) + (0.3 * 0.3) + (0.4 * 0.2) = 0.12. Option B
28 A. The probability of an increase in the DJIA stated as odds is "two-to-one." Odds represent the ratio of the probability of an event occurring to the probability of it not occurring. In this case, the probability of an increase is 2/3, which can be expressed as 2 to 1 odds. Option A
29. B. On a random draw, the probability of one of the four identical names being drawn can be calculated as 4/800 = 0.005. This corresponds to 0.5% or 0.005 probability. Option B
30 B. The conditional probability of having good stock performance in a poor economic environment is 0.10. Conditional probability measures the likelihood of an event occurring given that another event has already occurred. In this case, the probability of good stock performance is 0.10 given the condition of a poor economic environment. Option B
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Discuss top 6 IT infrastructure management challenges and their solutions
IT infrastructure management is crucial for businesses. With the increasing demands for technological advances, businesses need to manage their IT infrastructure effectively. However, managing IT infrastructure comes with challenges.
The top six IT infrastructure management challenges and their solutions.1. Security Challenges The threat of cyber attacks and data breaches is a significant concern for businesses.2. Scalability Issues Managing IT infrastructure is a continuous process. As the business grows, it becomes necessary to scale up IT infrastructure. 3. System Integration Challenges As businesses adopt new technologies, integration of different systems becomes a challenge. Integrating different systems can be complicated and require the help of IT professionals. 4. Cost Management Challenges Managing IT infrastructure can be expensive. To address this challenge, businesses can outsource their IT infrastructure management to third-party providers. 5. Compliance Challenges Compliance regulations can be complex and vary by industry. Businesses need to ensure that they comply with relevant regulations. This can be achieved through regular audits and risk assessments. 6. Disaster Recovery Challenges Disasters can occur at any time, and businesses need to be prepared. Disaster recovery planning involves identifying potential threats, developing a plan, and testing the plan.
However, businesses can address these challenges through security measures, scalability, system integration, cost management, compliance, and disaster recovery planning.
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New Star Software is preparing financial statements for the end of the fiscal period December 31, 20--. On November 1, New Star Software received $30 000 in contract revenue. As of December 31, half of the contract work had been completed and supplied to the customer. (a) Prepare the journal entry to record the unearned revenue of $30 000 on November 1. (b) Record the December 31 adjustment to Unearned Revenue and Contract Revenue. (c) After posting, what will be the December 31 balance in Unearned Revenue?
a. Journal Entry to record the unearned revenue of $30 000 on November 1 Cash $30,000 [Debit] Unearned Revenue$30,000 [Credit]
(a) On November 1, when New Star Software received $30,000 in contract revenue, the journal entry to record the unearned revenue would be as follows:
Date: November 1
Account Debit Credit
Unearned Revenue $30,000
Contract Revenue $30,000
(b) On December 31, an adjustment needs to be made to recognize the portion of the contract work that has been completed. Assuming that half of the contract work has been completed and supplied to the customer, the adjustment would be as follows:
Date: December 31
Account Debit Credit
Unearned Revenue $15,000
Contract Revenue $15,000
The adjustment reduces the unearned revenue by $15,000 and recognizes it as contract revenue in financial statement
(c) After posting the adjustment, the December 31 balance in Unearned Revenue will be $15,000.
Financial statements are reports that provide financial data on a company or organization's financial performance, including its income statement, balance sheet, and statement of cash flows.
The financial statements provide a comprehensive overview of the organization's financial health and performance.
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Current Attempt in Progress Bonita Industries has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of
The price variances for Direct Materials and Direct Labor were analyzed based totally on the provided information. The charge variance for Direct Materials showed a positive result of $6,000, indicating that the real charges of materials have been lower than the same old costs.
However, the performance variance for Direct Materials becomes adverse at $4,750, suggesting that more materials were used than predicted for the given output.
Bonita Industries - Statement of Cash Flows (2022)
Operating Activities:
Net earnings: $291,000
Adjustments:
Depreciation cost (selling price): $206,000
Changes in operating capital:
Increase in money owed receivable: $34,000
Increase in inventory: $28,000
Increase in accounts payable: $3,000
Net cash furnished by means of working sports: $562,000
Investing Activities:
Sale of equipment: $242,000
Financing Activities:
Dividends paid: $192,000
The net boom in coins: $612,000
Cash at the beginning of the year: $407,000
Cash at the end of the yr: $1,019,000
The statement of coins flows summarizes the coins inflows and outflows for Bonita Industries during 2022. Operating sports generated a net coins inflow of $562,000, generally from the agency's net income and changes for depreciation and adjustments in operating capital.
The sale of the device ended in a coins influx of $242,000. Dividends paid to shareholders amounted to $192,000. Overall, the organization skilled a net growth in coins of $612,000, finishing the yr with a cash balance of $1,019,000.
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The correct question is:
" Current Attempt in Progress Bonita Industries has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Bonita Industries for 2022 and 2021 are provided below. Cash Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock BALANCE SHEETS $608000 (321000) 12/31/22 $407000 358000 386000 287000 $1438000 $ 178000 352000 358000 208000 $960000 (306000) 12/31/21 $ 192000 218000 482000 654000 $1546000 $ 94000 392000 601000 216000 Common stock Retained earnings INCOME STATEMENT For the Year Ended December 31, 2022 Sales revenue Cost of sales Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before taxes Income taxes Net income $598000 191000 208000 342000 $1438000 $8400000 7153000 1247000 789000 458000 70000 388000 97000 $291000 216000 243000 $1546000 Income taxes Net income The following additional data were provided: The net cash provided by operating activities is 97000 1. Dividends for the year 2022 were $192000. 2. During the year, equipment was sold for $242000. This equipment cost $354000 originally and had a book value of $287000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. $291000. $206000. O $246000. O $418000. $ 291000"
a digital marketing manager is working with a national insurance provider and wants to use first-party data in their ai eforts. before they can start using the data, what question do they need to answer? what are the capabilities for data storage on each of the marketing team members' corporate devices? to what extent are we aligned with local regulations on data collection and user privacy that help us ensure the proper use of first-party data? in what ways can we begin using this data as quiclkly as possible, even at the expense of alignment with other teams? is it possible to modify our data collection policies to encourage customers to share as much as possible?
The question the digital marketing manager needs to answer is: "To what extent are we aligned with local regulations on data collection and user privacy that help us ensure the proper use of first-party data?"
Before utilizing first-party data in AI efforts, the digital marketing manager needs to assess the alignment with local regulations on data collection and user privacy. This involves understanding the legal requirements and privacy standards imposed by authorities to ensure compliance in utilizing customer data.
Adhering to these regulations is essential for safeguarding user privacy and ensuring the proper use of first-party data.
Additionally, it is important to consider the capabilities for data storage on each marketing team member's corporate devices. Assessing storage capacity and security measures ensures that data is stored appropriately and securely, minimizing the risk of data breaches or unauthorized access.
While quick implementation of data usage is desirable, it should not come at the expense of alignment with other teams. Collaborative alignment with other departments ensures a cohesive and coordinated approach to data utilization, improving efficiency and maintaining consistency within the organization.
Modifying data collection policies to encourage customers to share more information should be done cautiously. Balancing customer consent and privacy protection is crucial to maintain trust and compliance. It is important to adhere to ethical practices and obtain explicit consent from customers for data collection and usage.
In summary, the digital marketing manager needs to address questions regarding alignment with regulations, capabilities for data storage, alignment with other teams, and modification of data collection policies.
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3. True or False (5 points): if biological, environmental, and economic conditions stay the same, then the same optimal harvest age (T*) will apply to all subsequent forest stands.
Due to the optimal harvest age for forest stands is dependent on several factors that can change over time, the statement is false.
The optimal harvest age (T*) of a forest stand is influenced by several factors, including the tree species, site quality, stand density, and economic conditions. In addition, these factors can vary over time, making it difficult to determine a single optimal harvest age that will apply to all subsequent forest stands.
For example, changes in environmental conditions, such as climate change, can affect the growth and health of trees, which can impact the optimal harvest age. Similarly, changes in economic conditions, such as fluctuations in timber prices or demand, can also affect the optimal harvest age.
Therefore, while an optimal harvest age may be determined for a specific forest stand under specific conditions, it is unlikely that the same optimal harvest age will apply to all subsequent forest stands due to the variability of these factors over time.
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creditor purchased an individual debtors 5,000 interest bearing note from a third party as an investment at a cost of 4,000. several yeats later, debtor pays off the
The creditor earned a profit of $1,000. They purchased a $5,000 interest-bearing note from a third party for $4,000 and received the full payment from the debtor years later.
The creditor bought the debt from a third party as an investment at a discounted price of $4,000. The note was worth $5,000 and carried interest. After several years, the debtor repaid the full amount of $5,000 plus any accrued interest to the creditor. Therefore, the creditor made a profit of $1,000 ($5,000 - $4,000) from this transaction.
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Trade is appreciated and promoted throughout the world but there exists certain loopholes for efficient trade system .Highlight the concerned factors ?
Answer:
Trade is the transaction of goods and monetary around the world.
Explanation:
Trade and commerce are necessary for the economic development and survival of this world. It is appreciated and is promoted throughout the world, but still there are some loopholes in the trading system.
Trading is generally the economic transaction that is carried all through the world for comparative advantage among the different countries. The goods and products traded are mainly capital goods, consumer goods, financial assets, and others which are traded among the countries.
It creates a dual economy in the world for the less developed countries and due to this the country which exports these goods are developing while those poor countries importing these goods have seen a stop in its development.
Due to the foreign investment, the poor countries have not been able to benefit much from it.
The gains is limited for the exported countries due to the export of only the primary goods.
Explain how environmental policy and business ethics essentials
have evolved in Canada. How do these approaches rank the country
within the global economic and political agenda?
Environmental policy and business ethics are important issues that have evolved in Canada. In this regard, the environmental policies and business ethics of the country have evolved significantly in the past few years.
Environmental policy in Canada has evolved significantly in recent years. It is one of the world's most environmentally conscious nations, with strict regulations and measures in place to protect the environment and promote sustainability.
The Canadian Environmental Protection Act, 1999 (CEPA) is one of Canada's primary environmental laws. It governs the protection of the environment, as well as the health and well-being of the people of Canada.
It focuses on pollution prevention and waste management, as well as environmental emergencies.Business ethics is another key concern in Canada.
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Friends Partnership has three partners. The balance of each partner' capital is Alia $48,000, Mariam $50,000 and Fatima $52,000 Alia withdraws from the Partnership The remaining partners, Mariam and F
After Alia's withdrawal from the Friends Partnership, Mariam's capital balance will be [tex]\$[/tex][tex]86,000[/tex]and Fatima's capital balance will be [tex]\$[/tex][tex]100,000[/tex], while maintaining a profit and loss ratio of [tex]3:4[/tex].
In the Friends Partnership, Alia, Mariam, and Fatima are the three partners with capital balances of [tex]\$48,000 \ , \$50,000 \ , \ and \ \$52,000[/tex]respectively. When Alia withdraws from the partnership, the remaining partners, Mariam and Fatima, agree to maintain a profit and loss ratio of [tex]3:4[/tex]. As a result, the partnership's capital decreases by $[tex]48,000[/tex]. The total capital of Mariam and Fatima is now $[tex]102,000[/tex], which will be divided in the ratio of [tex]3:4[/tex]. Mariam receives a share of $[tex]36,000[/tex]([tex]\frac{3}{7}[/tex] of $[tex]102,000[/tex]), while Fatima receives a share of $[tex]48,000[/tex]([tex]\frac{4}{7}[/tex] of $[tex]102,000[/tex]). After Alia's withdrawal, Mariam's capital balance becomes $[tex]86,000[/tex]([tex]\$50,000 + \$36,000[/tex]), and Fatima's capital balance becomes $100,000 ($52,000 + $48,000).Therefore, After Alia's withdrawal from the Friends Partnership, Mariam's capital balance will be [tex]\$86,000[/tex] and Fatima's capital balance will be [tex]\$100,000[/tex], while maintaining a profit and loss ratio of [tex]3:4[/tex].
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The following data is provided for Garcon Company and Pepper Company for the year ended December 31. Garcon Company $ 12,000 14,500 7,250 27,000 19,000 17,650 22,000 Finished goods inventory, beginnin
The current assets section includes only the assets expected to be converted into cash or consumed within one year or the operating cycle, whichever is longer.
How do we prepare the income statements?To prepare the income statements for Garcon Company and Pepper Company, we need to calculate the cost of goods sold (COGS) and subtract it from the sales to determine the gross profit. Then, we deduct the operating expenses to calculate the net income.
1. Income Statement for Garcon Company:
Sales: $195,030
Cost of Goods Sold (COGS):
Opening Finished Goods Inventory: $12,000
+ Cost of Goods Manufactured:
Opening Work in Process Inventory: $14,500
+ Raw Materials Purchases: $33,000
- Closing Work in Process Inventory: $22,000
= Total Manufacturing Costs
+ Direct Labor: $19,000
+ Factory Overhead:
Rental Cost on Factory Equipment: $27,000
+ Factory Utilities: $9,000
+ Indirect Labor: $9,450
+ Repairs—Factory Equipment: $4,780
= Total Manufacturing Overhead
= Total Manufacturing Costs + Total Manufacturing Overhead
+ Opening Raw Materials Inventory: $7,250
- Closing Raw Materials Inventory: $5,300
= Cost of Goods Sold
Gross Profit: Sales - COGS
Operating Expenses:
General and Administrative Expenses: $21,000
Selling Expenses: $50,000
= Total Operating Expenses
Net Income: Gross Profit - Total Operating Expenses
2. Income Statement for Pepper Company:
Sales: $290,010
Cost of Goods Sold (COGS):
Opening Finished Goods Inventory: $16,450
+ Cost of Goods Manufactured:
Opening Work in Process Inventory: $19,950
+ Raw Materials Purchases: $52,000
- Closing Work in Process Inventory: $16,000
= Total Manufacturing Costs
+ Direct Labor: $35,000
+ Factory Overhead:
Rental Cost on Factory Equipment: $22,750
+ Factory Utilities: $12,000
+ Indirect Labor: $10,860
+ Repairs—Factory Equipment: $1,500
= Total Manufacturing Overhead
= Total Manufacturing Costs + Total Manufacturing Overhead
+ Opening Raw Materials Inventory: $9,000
- Closing Raw Materials Inventory: $7,200
= Cost of Goods Sold
Gross Profit: Sales - COGS
Operating Expenses:
General and Administrative Expenses: $43,000
Selling Expenses: $46,000
= Total Operating Expenses
Net Income: Gross Profit - Total Operating Expenses
Now, prepare the current assets section of the balance sheet for each company.
3. Current Assets Section of the Balance Sheet for Garcon Company:
Cash: $20,000
Accounts Receivable, Net: $13,200
Raw Materials Inventory: $5,300
Finished Goods Inventory: $17,650
Total Current Assets: Cash + Accounts Receivable + Raw Materials Inventory + Finished Goods Inventory
4. Current Assets Section of the Balance Sheet for Pepper Company:
Cash: $15,700
Accounts Receivable, Net: $19,450
Raw Materials Inventory: $7,200
Finished Goods Inventory: $13,300
Total Current Assets: Cash + Accounts Receivable + Raw Materials Inventory + Finished Goods Inventory
Note that the current assets section includes only the assets expected to be converted into cash or consumed within one year or the operating cycle, whichever is longer. Other assets like property, plant, and equipment, long-term investments, and intangible assets are not included in the current assets section.
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The complete question goes thus:
The following data is provided for Garcon Company and Pepper Company for the year ended December 31.
Garcon Company Pepper Company
Finished goods inventory, beginning $ 12,000 $ 16,450
Work in process inventory, beginning 14,500 19,950
Raw materials inventory, beginning 7,250 9,000
Rental cost on factory equipment 27,000 22,750
Direct labor 19,000 35,000
Finished goods inventory, ending 17,650 13,300
Work in process inventory, ending 22,000 16,000
Raw materials inventory, ending 5,300 7,200
Factory utilities 9,000 12,000
General and administrative expenses 21,000 43,000
Indirect labor 9,450 10,860
Repairs—Factory equipment 4,780 1,500
Raw materials purchases 33,000 52,000
Selling expenses 50,000 46,000
Sales 195,030 290,010
Cash 20,000 15,700
Accounts receivable, net 13,200 19,450
1. Prepare income statements for both Garcon Company and Pepper Company.
2. Prepare the current assets section of the balance sheet for each company.
The current assets section includes only the assets expected to be converted into cash or consumed within one year or the operating cycle, whichever is longer.
How do we prepare the income statements?
To prepare the income statements for Garcon Company and Pepper Company, we need to calculate the cost of goods sold (COGS) and subtract it from the sales to determine the gross profit. Then, we deduct the operating expenses to calculate the net income.
1. Income Statement for Garcon Company:
Sales: $195,030
Cost of Goods Sold (COGS):
Opening Finished Goods Inventory: $12,000
+ Cost of Goods Manufactured:
Opening Work in Process Inventory: $14,500
+ Raw Materials Purchases: $33,000
- Closing Work in Process Inventory: $22,000
= Total Manufacturing Costs
+ Direct Labor: $19,000
+ Factory Overhead:
Rental Cost on Factory Equipment: $27,000
+ Factory Utilities: $9,000
+ Indirect Labor: $9,450
+ Repairs—Factory Equipment: $4,780
= Total Manufacturing Overhead
= Total Manufacturing Costs + Total Manufacturing Overhead
+ Opening Raw Materials Inventory: $7,250
- Closing Raw Materials Inventory: $5,300
= Cost of Goods Sold
Gross Profit: Sales - COGS
Operating Expenses:
General and Administrative Expenses: $21,000
Selling Expenses: $50,000
= Total Operating Expenses
Net Income: Gross Profit - Total Operating Expenses
2. Income Statement for Pepper Company:
Sales: $290,010
Cost of Goods Sold (COGS):
Opening Finished Goods Inventory: $16,450
+ Cost of Goods Manufactured:
Opening Work in Process Inventory: $19,950
+ Raw Materials Purchases: $52,000
- Closing Work in Process Inventory: $16,000
= Total Manufacturing Costs
+ Direct Labor: $35,000
+ Factory Overhead:
Rental Cost on Factory Equipment: $22,750
+ Factory Utilities: $12,000
+ Indirect Labor: $10,860
+ Repairs—Factory Equipment: $1,500
= Total Manufacturing Overhead
= Total Manufacturing Costs + Total Manufacturing Overhead
+ Opening Raw Materials Inventory: $9,000
- Closing Raw Materials Inventory: $7,200
= Cost of Goods Sold
Gross Profit: Sales - COGS
Operating Expenses:
General and Administrative Expenses: $43,000
Selling Expenses: $46,000
= Total Operating Expenses
Net Income: Gross Profit - Total Operating Expenses
Now, prepare the current assets section of the balance sheet for each company.
3. Current Assets Section of the Balance Sheet for Garcon Company:
Cash: $20,000
Accounts Receivable, Net: $13,200
Raw Materials Inventory: $5,300
Finished Goods Inventory: $17,650
Total Current Assets: Cash + Accounts Receivable + Raw Materials Inventory + Finished Goods Inventory
4. Current Assets Section of the Balance Sheet for Pepper Company:
Cash: $15,700
Accounts Receivable, Net: $19,450
Raw Materials Inventory: $7,200
Finished Goods Inventory: $13,300
Total Current Assets: Cash + Accounts Receivable + Raw Materials Inventory + Finished Goods Inventory
Note that the current assets section includes only the assets expected to be converted into cash or consumed within one year or the operating cycle, whichever is longer. Other assets like property, plant, and equipment, long-term investments, and intangible assets are not included in the current assets section.
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Question :-
The following data is provided for Garcon Company and Pepper Company for the year ended December 31.
Garcon Company Pepper Company
Finished goods inventory, beginning $ 12,000 $ 16,450
Work in process inventory, beginning 14,500 19,950
Raw materials inventory, beginning 7,250 9,000
Rental cost on factory equipment 27,000 22,750
Direct labor 19,000 35,000
Finished goods inventory, ending 17,650 13,300
Work in process inventory, ending 22,000 16,000
Raw materials inventory, ending 5,300 7,200
Factory utilities 9,000 12,000
General and administrative expenses 21,000 43,000
Indirect labor 9,450 10,860
Repairs—Factory equipment 4,780 1,500
Raw materials purchases 33,000 52,000
Selling expenses 50,000 46,000
Sales 195,030 290,010
Cash 20,000 15,700
Accounts receivable, net 13,200 19,450
1. Prepare income statements for both Garcon Company and Pepper Company.
2. Prepare the current assets section of the balance sheet for each company.
me Page-Ne X C Take Test Under X Qontario leam log x polportal x https://niagara blackboard.com/webapps/assessment/take/launch.jsp?course assessment id= 136126 1&course_id=246815 18content id-50. A thegg-Search X C Get Homewat X Disasion 1: Max Question Completion Status: QUESTION 1 1 points Save Arwe Your friend has just bought a $72 book bag and she told you why was from high school and looked way to 2010 She really did NOT want to date herself with this new group of students Which need was likely her motivation? she said that she bought it because her old book bag OA Situational Needs OB Social Needs OC. Psychological Needs OD. Functional Needs QUESTION 2 1 points In Ar A person buying a new taptop computer says 't would never pay that money without purchasing an extended warranty She is motivated by which need? Knowledge Needs Stuational Needs Functional Needs OPsychological Needs Save and S Click Save and Submit to save and submit. Click Save All Answers to save all answers, 27 San A63% ING Type here to search H C C 2011 Your friend has just bought a $72 book bag and she told you why.... she said that "she bought it because her old book bag was from high school and looked way to 2010! She really did NOT want to 'date' herself with this new group of students." Which need was likely her motivation? OA. Situational Needs OB. Social Needs OC. Psychological Needs O D. Functional Needs
The motivation for buying a new book bag that your friend had because her old book bag was from high school and looked way too 2010 and she did not want to 'date' herself with this new group of students is Social Needs. The correct answer is option(b).
According to Maslow's hierarchy of needs, social needs relate to the need for love, companionship, and affection in social interactions with others. Social needs are thought to be satisfied through social interactions with others, particularly friends and family members.
The motivation to purchase a new book bag that is up-to-date, modern, and stylish is driven by social needs because the desire to be seen in a favorable light by others is a key component of social needs. When a person interacts with others, they often feel more confident, optimistic, and motivated to engage with the world around them if they have a strong sense of social support and approval.
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the discount rate can best be described as: group of answer choices an opportunity cost real rate of interest prime rate of interest present value interest factor
The discount rate can best be described as the real rate of interest, which is an opportunity cost of investing capital. It is the interest rate that financial institutions such as banks charge to lend money to their customers, or the rate at which companies discount future cash flows to determine their present values.
The Federal Reserve uses the discount rate to control the money supply and influence economic growth. When the economy is slow, the Fed can lower the discount rate to encourage borrowing and investment, thereby increasing spending and stimulating growth.
On the other hand, when the economy is overheating, the Fed can raise the discount rate to discourage borrowing and investment, thereby slowing down growth and preventing inflation.
The discount rate is also used in financial analysis to calculate the present value of future cash flows. This calculation involves discounting future cash flows back to their present value using the discount rate. The lower the discount rate, the higher the present value of future cash flows, and vice versa.
In conclusion, the discount rate is a crucial concept in finance and economics. It is the real rate of interest that reflects the opportunity cost of investing capital and is used by the Federal Reserve to control the money supply and influence economic growth. It is also used in financial analysis to calculate the present value of future cash flows.
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A company is examining two choices for moving its goods from the plant to its depots in eastern India: Truck and Rail. The relevant information is as follows: Transport lead time is 4 and 12 for Truck and Rail respectively. Transportation charges are Rs 30 and Rs 20. Shipment sizes in units are 500 and 5000 in both options. The company is planning to ship 20,000 units per year. The cost of the product is Rs 500 per unit. Assume the inventory holding/carrying cost is 20%. Which mode of transport should the company choose?
The company should choose rail transport as the mode of transportation for moving its goods from the plant to its depots in eastern India. The lower transportation charges and larger shipment size of rail transport offset the longer transport lead time, resulting in a lower overall cost for the company.
To determine the best mode of transport for the company, we need to consider the total cost associated with each option.
For truck transport:
Transport lead time = 4 days
Transportation charges = Rs 30
Shipment size = 500 units
Annual shipment = 20,000 units
Cost of product = Rs 500 per unit
Inventory holding cost = 20%
The total cost for truck transport can be calculated as follows:
Transportation cost = (Transportation charges * Annual shipment) / Shipment size = (30 * 20,000) / 500 = Rs 1,200
Inventory holding cost = (Annual shipment * Cost of product * Inventory holding cost) / 365 = (20,000 * 500 * 0.2) / 365 = Rs 547.95
Total cost = Transportation cost + Inventory holding cost = Rs 1,200 + Rs 547.95 = Rs 1,747.95
For rail transport:
Transport lead time = 12 days
Transportation charges = Rs 20
Shipment size = 5,000 units
Annual shipment = 20,000 units
Cost of product = Rs 500 per unit
Inventory holding cost = 20%
The total cost for rail transport can be calculated as follows:
Transportation cost = (Transportation charges * Annual shipment) / Shipment size = (20 * 20,000) / 5,000 = Rs 80
Inventory holding cost = (Annual shipment * Cost of product * Inventory holding cost) / 365 = (20,000 * 500 * 0.2) / 365 = Rs 547.95
Total cost = Transportation cost + Inventory holding cost = Rs 80 + Rs 547.95 = Rs 627.95
Comparing the total costs, we find that the total cost for rail transport is lower than that of truck transport. Therefore, the company should choose rail transport as the mode of transportation.
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Please help
Toshiba's Notebook Computer Assembly Line Toshihiro Nakamura, manufacturing engineering section manager, is examining the prototype assembly process sheet (shown in Exhibit 6,8) for the newest subnote
The assembly of Toshiba's Notebook computer assembly line can be improved by standardizing the assembly process sheet.
The prototype assembly process sheet for the latest subnotebook is shown in Exhibit 6,8. Toshihiro Nakamura, the manufacturing engineering section manager, is examining it to identify any inefficiencies or errors in the assembly process.
The assembly of the subnotebook can be made more efficient by standardizing the assembly process sheet. The sheet should contain detailed instructions for each step of the assembly process.
This would reduce the time required to assemble the subnotebook and ensure that each unit is assembled correctly.
It would also make it easier to train new assembly workers on the assembly process.Standardizing the assembly process sheet would also make it easier to identify any inefficiencies in the assembly process.
For example, if a particular step is taking longer than expected, the assembly workers could review the process sheet to determine if there are any improvements that can be made.
This would help to identify bottlenecks in the assembly process and improve overall efficiency.Standardizing the assembly process sheet would also help to reduce errors in the assembly process.
The sheet should include clear instructions for each step of the assembly process, including any tools or materials that are required.
This would reduce the likelihood of errors occurring during the assembly process and ensure that each unit is assembled correctly.
In conclusion, standardizing the assembly process sheet for Toshiba's Notebook computer assembly line would help to improve efficiency, reduce errors, and make it easier to train new assembly workers.
It would also help to identify any inefficiencies in the assembly process and improve overall efficiency.
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Exercise 2-3A Analyze the impact of transactions on the accounting equation (LO2-2) Green Wave Company plans to own and operate a storage rental facility. Required: For the first month of operations,
Each transaction will impact the accounting equation by altering the values of assets, liabilities, and shareholders' equity.
In the first month of operations for Green Wave Company's storage rental facility, several transactions will impact the accounting equation. The accounting equation represents the fundamental relationship between a company's assets, liabilities, and shareholders' equity.
Initial Investment: If Green Wave Company invests capital to start the business, it will increase the assets (cash) and shareholders' equity. The equation would be: Assets = Liabilities + Shareholders' Equity.
Purchase of Land and Buildings: Acquiring land and buildings for the storage rental facility will increase the assets (property, plant, and equipment) while reducing cash or increasing liabilities (if financed through debt).
Equipment and Furniture Purchase: Buying equipment and furniture required for the facility will increase the assets and reduce cash or increase liabilities.
Rental Income: As customers rent storage units, the company will generate revenue, which will increase assets (cash) and shareholders' equity.
Operating Expenses: Expenses like utilities, maintenance, and employee wages will decrease assets (cash) and shareholders' equity.
Financing Activities: If the company borrows money or issues shares to raise funds, it will increase liabilities and shareholders' equity.
The equation must always remain in balance, reflecting the financial position of Green Wave Company.
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write a fictional scenario describing an ethical challenge you might encounter in a loan transaction.
A fictional scenario describing an ethical challenge that one might encounter in a loan transaction could be that of a bank manager who is handling loan applications from clients.
In this scenario, one of the clients, a businessman, approaches the bank manager requesting a loan for a new project he has been working on. The businessman provides all the necessary documents, and upon review, the bank manager realizes that the client has previously defaulted on a loan from another bank. The client assures the bank manager that he will repay the loan, but the bank manager is hesitant to grant him the loan due to his previous record.
This poses an ethical challenge for the bank manager, who has to decide whether to approve the loan, knowing that the client has a history of defaulting on loans. On the one hand, the bank manager is aware that the loan will benefit the businessman, who has invested a lot of money in the project, and will, in turn, benefit the bank by earning interest.
On the other hand, the bank manager has a responsibility to ensure that the bank's resources are being used in a responsible manner and that the bank's clients are not exposed to undue risk.
To resolve this ethical challenge, the bank manager needs to consider various factors, such as the likelihood of the client repaying the loan, the potential benefits of the loan, and the bank's risk tolerance.
Ultimately, the bank manager must ensure that the loan is granted only if it meets the bank's lending criteria and that the client is likely to repay the loan. The bank manager should also be transparent with the client, explaining the reasons for the loan's approval or denial.
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Multiple Choice Questions
Clearly circle the best answer to each of the following questions, 1) Users of the CAPM should be aware of some of the problems in its practical application. These problems include which of the following? a) Estimating expected future market returns. b) Determining the most appropriate measure of the risk-free rate. c) Determining an asset's future beta. d) Both a. and b. e) Both a. and c. f) All of the above. 2) Which of the following is TRUE? a) T-Bills generally yield a higher return than common stocks. b) Long-term corporate bonds generally yield a higher return than common stocks, c) Bonds with higher YTM will sell at a higher market price than otherwise identical bonds with lower YTM. d) The nominal interest rate exceeds the real interest rate when inflation is greater than zero. e) None of the above 3) A portfolio lies on the security market line. It has beta of 1.5 and the risk-free rate is 2%. What is the market risk premium? a) 3.00% b) 5.00% c) 6.67% d) 8.00% e) None of the above 4) When the cost of capital (or discount rate) increases, the IRR of a project: a) increases. b) decreases. c) tends to have multiple solutions. d) cannot be determined without knowing the discount rate. e) None of the above. 5) All else equal, the efficient frontier: a) Shifts to the left as the correlation between assets decreases. b) Identifies portfolios that are risk efficient but not return efficient. c) Shifts to the left as the number of investable assets decreases. d) Is the location of a portfolio invested 100% in bonds. e) None of the above.
1) Users of the CAPM should be aware of some of the problems in its practical application. These problems include which of the following?The problems in its practical application are estimated future market returns and determining the most appropriate measure of the risk-free rate. So, the answer is d) Both a. and b.
2) Which of the following is TRUE? The nominal interest rate exceeds the real interest rate when inflation is greater than zero. Therefore, the answer is d) The nominal interest rate exceeds the real interest rate when inflation is greater than zero.
3) A portfolio lies on the security market line. It has beta of 1.5 and the risk-free rate is 2%. What is the market risk premium?Here, the risk-free rate is 2%, and beta is 1.5. Market risk premium can be found as the difference between the expected return on the market and the risk-free rate.
Then,Market risk premium = Expected return on market - Risk-free rateSML equation is,Expected return on market = Risk-free rate + Beta × Market risk premium = 2% + 1.5 × Market risk premium Market risk premium = (Expected return on market - Risk-free rate) / Beta= (2% + 1.5 × Market risk premium - 2%) / 1.5 = Market risk premium / 1.5Market risk premium = 1.5 × Market risk premium / 1.5 = 1%. Hence, the market risk premium is 1%.
So, the answer is e) None of the above.
4) When the cost of capital (or discount rate) increases, the IRR of a project:IRR (Internal rate of return) is the rate at which the project's NPV (Net Present Value) is equal to zero. An increase in the discount rate will cause the present value of future cash flows to decrease, causing the NPV to decrease.
Because the IRR is the rate at which the NPV equals zero, an increase in the discount rate will reduce the IRR of the project. Hence, the answer is b) decreases.
5) All else equal, the efficient frontier:In finance, the efficient frontier is a graph that depicts a set of optimal portfolios that offer the highest expected return for a given level of risk or the lowest risk for a given level of expected return. The efficient frontier will shift to the left if the correlation between assets decreases, indicating that investors can achieve the same level of returns with less risk.
Therefore, the answer is a) Shifts to the left as the correlation between assets decreases.
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Annual subscriptions are 12 months and if payments are received in advance, the amounts are posted to a revenue account. On August 1st, A Company received $72,000 for an annual subscription. The revenues was earned uniformly over the subscription period. On date of receipt, the company recorded an increase to subscription revenues and cash for $72,000. On December 1st, the company received an additional $108,000 for annual subscriptions to be earned uniformly over the subscription period. On December 31st, the adjusting journal entry related to the subscription would include O Subscription Revenues Unearned Revenues Subscription Revenues Unearned Revenues Subscription Revenues Unearned Revenues Unearned Revenues Subscription Revenues none of these entries are correct $180,000 $39,000 $141,000 $141,000 $180,000 $39,000 $141,000 $141,000
On December 31st, the adjusting journal entry related to the subscription would include Subscription Revenues - Unearned Revenues.
On December 1st, A Company received $108,000 for annual subscriptions. This revenue is also unearned because it is for 12 months.
Therefore, subscription revenues should be increased by $108,000, while unearned revenue should be credited by $108,000.
Subscription Revenue $108,000
Unearned Revenue $108,000
At the end of the year, the adjusting entry for subscription revenue would include the unearned revenue adjustment:
Unearned Revenue $39,000
Subscription Revenue $39,000
The adjusting journal entry related to the subscription on December 31 would include
Subscription Revenues - Unearned Revenues.
The answer is Subscription Revenues - Unearned Revenues.
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Which of the following are functions banks perform as financial intermediaries in the economy? (Check all that apply.)
A. Transform short-term liabilities into long-term assets.
B. Introduce new paper currency into the economy.
C. Enforce lending standards and rules.
D. Manage risk through diversification strategies.
E. Identify profitable lending opportunities.
The functions that banks perform as financial intermediaries in the economy include the correct options are C, D, and E.
C. Enforce lending standards and rules: Banks play a crucial role in assessing the creditworthiness of borrowers and enforcing lending standards. They evaluate loan applications, set interest rates, and establish criteria for loan approvals, ensuring responsible lending practices.
D. Manage risk through diversification strategies: Banks manage risk by diversifying their loan portfolios across various sectors and borrowers. This helps mitigate the impact of potential defaults and economic fluctuations on their overall financial health.
E. Identify profitable lending opportunities: Banks actively identify profitable lending opportunities by assessing the creditworthiness of potential borrowers and evaluating the potential returns on investment. They analyze market conditions, economic trends, and borrower profiles to make informed lending decisions.
A. Transform short-term liabilities into long-term assets: Banks facilitate the transformation of short-term liabilities, such as customer deposits, into long-term assets through lending activities. They channel funds from savers to borrowers, providing long-term financing for investment purposes.
Therefore, the correct options are C, D, and E. Banks enforce lending standards and rules, manage risk through diversification strategies, and identify profitable lending opportunities as financial intermediaries in the economy.
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Consider the proabilistic DP example described in the DP lecture slides: production planning for the HIT-AND-MISS manufactuting company. Suppose the setup cost is now $4 whereas production cost reduced to $0.5 per item. You are informed that the company always follows a fixed policy: (4,3,3) (i.e, producing 4, 3, and 3 items for runs 1,2, and 3 respectively), without taking into account the inherent stochasticity. a. Calculate the expected cost incurred for the fixed policy. b. Find out the optimal policy and the optimal cost using probabilistic DP. c. Calculate the percentage improvement over the fixed policy if the optimal policy would be implemented. d. If the production cost would increase to $1.5 per item, do you think the percentage improvement over the fixed policy would be higher or lower than what you found in part c) ? Justify your answer.
a. To calculate the expected cost incurred for the fixed policy, we need to consider the production quantities and their corresponding costs.
For the fixed policy (4,3,3), the expected cost can be calculated as follows:
Expected cost = (Setup cost + Production cost) * (Expected demand)
The expected demand for each run can be derived from the given probabilities in the DP example. Let's assume the probabilities are P1 = 0.2, P2 = 0.4, P3 = 0.4.
Expected cost = (4 + 0.5*4) * (0.2*4 + 0.4*3 + 0.4*3)
Expected cost = 8 * (0.8 + 1.2 + 1.2)
Expected cost = 8 * 3.2
Expected cost = 25.6
Therefore, the expected cost incurred for the fixed policy is 25.6.
b. To find the optimal policy and the optimal cost using probabilistic DP, we need to construct a DP table by considering the setup cost, production cost, and the probabilities of demand. By applying the dynamic programming algorithm, we can determine the optimal policy and the corresponding optimal cost.
c. Once we find the optimal policy, we can compare its cost with the expected cost of the fixed policy. The percentage improvement over the fixed policy can be calculated as follows:
Percentage improvement = ((Expected cost - Optimal cost) / Expected cost) * 100
d. If the production cost increases to $1.5 per item, the percentage improvement over the fixed policy would likely be higher than what was found in part c). This is because higher production costs would have a larger impact on the total cost, making it more beneficial to optimize the production quantities based on the probabilities of demand.
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According to a UNESCO report of employer views, _____ are soft skills that are essential for workers in
today's business climate.
a. arithmetic skills
b. discipline-specific skills
c. team skills
d. technical skills
According to the UNESCO report of employer views, team skills are considered to be essential soft skills for workers in today's business climate.
These skills refer to the ability to collaborate effectively with others, communicate and cooperate within a team, and contribute to collective goals. In today's dynamic and interconnected work environment, employers value employees who can work well in teams, as it promotes innovation, problem-solving, and productivity. Team skills encompass qualities such as teamwork, interpersonal communication, adaptability, and cooperation, which are highly sought after by employers across various industries. So, According to the UNESCO report of employer views, team skills are considered to be essential soft skills for workers in today's business climate.
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for the student council fund raiser, each student is expected to raise at least $50. which graph represents this situation?
The situation described, where each student is expected to raise at least $50 for the student council fundraiser, can be represented by a bar graph.
A bar graph is a suitable choice to visually represent this situation because it allows for the comparison of individual students' fundraising amounts. Each student can be represented as a separate bar, with the height of the bar indicating the amount of money raised by that student. The bars can be labeled with the students' names or assigned numbers for identification.
The horizontal axis of the bar graph can represent the students, while the vertical axis represents the amount of money raised. The height of each bar can be adjusted to accurately reflect the fundraising amounts, with a minimum height of $50 to represent the expected target. Using a bar graph provides a clear visualization of how each student's fundraising efforts compare to the expected minimum amount.
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Imagine you are doing a hedonic analysis of different types of pollution and housing values. You have the following equation:
Housing Value = B0 + B1 Rooms + B2 Distance to the city center + B3 Age of the housing unit + B4 Lot Size + B5 Traffic Noise + B6 Concentrations of PM5 + B7 Construction Size + B8 Baths
Rooms = number of room of the house
Distance to the city center = miles to the city center
Age of housing unit = age in years of the house
Lot size = square footage of the lot where the house is located
Traffic Noise = NEF units of noise
Concentrations of PM5 = amount of PM5 ppm
Construction size = square footage of the construction
Baths = number of baths in the house
Where B0=22749; B1-62; B2=-33; B3=-89; B4=67; B5=-58; B6--81; B7-99; B8-87 According to this information what would be the change in the house value if a house is located 57 miles farther from the city center (if the values of the house increases enters the number as positive if it decreases enter it as negative)
The house value would decrease by $1,881 if the house is located 57 miles farther from the city center, based on the given coefficients in the hedonic analysis equation.
To calculate the change in house value when located 57 miles farther from the city center, we need to consider coefficient B2, which represents the effect of distance to the city center on housing value.
In this case, B2 is -33.
The change in house value can be calculated by multiplying the coefficient B2 by the change in distance, which is 57 miles. Therefore, the change in house value would be the equation:
Change in house value = B2 * Change in distance
= -33 * 57
= -1881
Since the coefficient B2 is negative, indicating that distance has a negative impact on house value, the change in house value would be negative (-1881).
Thus, the house value would decrease by $1,881 if it is located 57 miles farther from the city center.
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In
a paragraph consisting of several sentences, please identify the
primary sources of bank income and expenses.
A bank is an institution that accepts deposits and provides loans to individuals and businesses. A bank's revenue comes from several sources, including interest earned from loans and investments, fees charged to customers for services provided, and foreign exchange income.
The primary sources of bank expenses include salaries and benefits paid to employees, rent and utilities for the bank's facilities, and the cost of maintaining and operating the bank's technology infrastructure. Interest earned from loans and investments is one of the most significant sources of bank income. When a bank issues a loan to a borrower, the borrower must pay back the loan amount with interest. Banks also invest in various securities, such as stocks and bonds, and earn income from the interest paid on these investments.
In addition to interest income, banks charge fees for various services provided to customers. For example, a bank may charge a fee for processing a wire transfer or for providing a certified check. Foreign exchange income is another significant source of bank revenue. When a customer exchanges one currency for another, the bank earns a commission on the transaction.
Finally, banks also have various expenses that must be paid to maintain operations. Salaries and benefits for employees are one of the most significant expenses for banks, as are rent and utilities for the bank's facilities. Maintaining and operating the bank's technology infrastructure is another significant expense, as banks must invest in new technology to remain competitive in the digital age.
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Depreciation of fixed assets used during the year was estimated to be $250,000. In which of the following steps of the accounting cycle would the depreciation cost be recorded as an expense?
O Prepare and post adjusting entries
O Prepare closing entries
O Prepare financial statements
O Prepare unadjusted trial balance
O Prepare documents
The depreciation cost is recorded as an expense in the step of preparing and posting adjusting entries. The estimated amount of the depreciation of fixed assets used during the year was $250,000.
Depreciation is the process of systematically allocating the cost of a tangible asset over its useful life. The estimated amount of the depreciation of fixed assets used during the year was $250,000. Depreciation cost is recorded as an expense in the step of preparing and posting adjusting entries. The step comes after the trial balance is prepared.The accounting cycle is the process of recording, classifying, and summarizing financial transactions to provide financial reports and statements. The steps of the accounting cycle are:
Analyzing transactions Recording transactions Posting transactionsPreparing an unadjusted trial balancePreparing adjusting entriesPreparing an adjusted trial balance Preparing financial statementsRecording and posting closing entriesPreparing a post-closing trial balanceThe depreciation cost is recorded as an expense in the step of preparing and posting adjusting entries. The adjustment entry for depreciation expense debits the depreciation expense account and credits the accumulated depreciation account. This entry reduces the book value of the fixed assets as they become less valuable over time and reflects their decline in value.
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What rate of return per month will an entrepreneur make over a 2.5-year project period if he invested $150,000 to produce portable 12-volt air compressors? His estimated monthly costs are $27,000 with income of $33,000 per month.
The entrepreneur invested $150,000 to produce portable 12-volt air compressors. His estimated monthly costs are $27,000 with income of $33,000 per month.
The rate of return per month will an entrepreneur make over a 2.5-year project period.The rate of return per month that an entrepreneur will make over a 2.5-year project period, who invested $150,000 to produce portable 12-volt air compressors can be calculated as follows:First, find the monthly profit:Monthly income - Monthly expenses= $33,000 - $27,000 = $6,000So, the entrepreneur has a monthly profit of $6,000.
Now, find the annual profit:Monthly profit × 12 = $6,000 × 12 = $72,000To find the profit over 2.5 years, we can multiply the annual profit by 2.5 years:$72,000 × 2.5 = $180,000So the profit over 2.5 years will be $180,000.Now to find the rate of return per month, divide the total profit by the total investment:Rate of return per month = Profit over the project period/ Total investmentRate of return per month = $180,000/ $150,000Rate of return per month = 1.2So the entrepreneur will make a rate of return of 1.2
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The perfectly competitive firm will be allocatively efficient or inefficient. The monopolistically competitive firm will be allocatively efficient or inefficient
The perfectly competitive price will be equal to or above or below marginal cost. The monopolistically competitive price will be equal to or above or below marginal cost.
The perfectly competitive firm's long–run profits will be zero or positive or negative. The monopolistically competitive firm's long–run profits will be zero or positive or negative
Allocative efficient.
Allocative efficiency is a state in which the market is producing what consumers require at the lowest possible cost.
The perfectly competitive firm is considered to be allocatively efficient when its price equals its marginal cost (P = MC). This is also the most economically efficient outcome. It denotes that the last dollar spent on the good or service is equal to the amount it costs to produce the additional unit.
The monopolistically competitive firm is allocatively inefficient because it has some market power. This implies that it can generate a certain degree of pricing power. It can price above its marginal cost without losing all of its consumers.
In addition, monopolistically competitive firms are more likely to participate in non-price competition, which is more efficient than price competition and may result in increased product variety and quality.
The perfectly competitive firm's long-run profits will be zero because if a firm is earning a profit in the short term, other businesses would enter the market, resulting in an increase in supply, lowering prices, and eroding profits. As a result, in a perfectly competitive market, there is no incentive to stay. Therefore, in the long run, the equilibrium price in a perfectly competitive market is equal to the minimum point of the average total cost curve, resulting in zero economic profits for all firms in the industry.
The monopolistically competitive firm's long-run profits will be zero or positive. In the long run, monopolistically competitive firms would have a zero profit condition, but this is only achieved in the long run, with an equal price and marginal cost (P = MC) when all costs are taken into account.
In the short run, monopolistically competitive companies may earn positive economic profits due to product differentiation and the ability to price above marginal cost.
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Roberson Corporation uses a periodic inventory system and the retail inventory method. Accounting records provided the following information for the 2021 fiscal year: Cont Retail $ 420,000 Beginning inventory Net purchases Freight-in $230,000 650,000 1,190,000 15,400 Net markups 18,000 Net markdowns 6,000 Normal spoilage Sales 3,000 1,320,000 The company records sales to employees net of discounts. These discounts totaled $17,000 for the year. Estimate ending inventory and cost of goods sold using the conventional method. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.)) O Beginning inventory. Plus: Purchases Freight-in Net markups Goods available for sale Less: Net markdowns Goods available for sale Cost-to-retail percentage Less: Normal spoilage Less: Net sales Sales Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold $ Cost 230,000 $ 650,000 15,400 895,400 $ Retail 420,000 1,190,000 18,000 1,628,000 (6,000) 1,622,000 (3,000) (1,320,000) (17,000) 282,000 Cost-to-Retail Ratio
Estimated ending inventory at retail: $282,000. Estimated ending inventory at cost: $159,352.80. The estimated cost of goods sold: $754,047.20.
To estimate the ending inventory and cost of goods sold using the conventional method, we will utilize the provided information and follow the steps outlined in the question.
First, let's calculate the cost-to-retail ratio:
Cost-to-Retail Ratio = Cost of Goods Available for Sale / Retail Value of Goods Available for Sale
Cost of Goods Available for Sale = Beginning Inventory + Net Purchases + Freight-in + Net Markups
= $230,000 + $650,000 + $15,400 + $18,000
= $913,400
Retail Value of Goods Available for Sale = Beginning Inventory + Net Purchases + Net Markups - Net Markdowns - Normal Spoilage
= $420,000 + $1,190,000 + $18,000 - $6,000 - $3,000
= $1,619,000
Cost-to-Retail Ratio = $913,400 / $1,619,000
= 0.5644 (rounded to 4 decimal places)
Next, we can estimate the ending inventory at retail:
Ending Inventory at Retail = Retail Value of Goods Available for Sale - Net Sales - Employee Discounts
= $1,619,000 - $1,320,000 - $17,000
= $282,000
Using the cost-to-retail ratio, we can now estimate the ending inventory at cost:
Ending Inventory at Cost = Ending Inventory at Retail * Cost-to-Retail Ratio
= $282,000 * 0.5644
= $159,352.80 (rounded to 2 decimal places)
Finally, we can calculate the estimated cost of goods sold:
Estimated Cost of Goods Sold = Cost of Goods Available for Sale - Estimated Ending Inventory at Cost
= $913,400 - $159,352.80
= $754,047.20 (rounded to 2 decimal places)
Therefore, the estimated ending inventory at retail is $282,000, the estimated ending inventory at cost is $159,352.80, and the estimated cost of goods sold is $754,047.20.
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Which of the following is not one of the questions that must be answered in thinking strategically about a company's excelent Multiple Choice What kinds of compettive foices are industry members facin
The following are the three questions that must be answered when thinking strategically about a enterprise company's excellence and the given answer that is not one of them is not one of the questions that must.
When thinking strategically about a company's excellence because it is unethical to aim for a monopoly. As a result, the company's aim should be to work in a competitive market that ensures that everyone has a fair chance to succeed.
Brief about competitive market A competitive market is a market structure in which a large number of small businesses compete. Companies compete for market share, and the price of goods and services is determined by market forces rather than by companies or consumers. A market can only be considered competitive if no one participant has enough market influence to alter the market's price.
Complete question:
Which of the following is not one of the questions that must be answered in thinking strategically about a company's excelent Multiple Choice What kinds of compettive foices are industry members facing.
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