Answer:
functional finance
Can allow the national debt to burgeon with chronic deficits
Explanation:
Functional finance is a theory developed by Abba P. Lerne during the World War II. It encourages the government's intervention in the economy to achieve its goals and reduce economic insecurity. It is the current budget philosophy in the US
Advantage
It allows the government to stabilise the economy using fiscal policy
Disadvantage
it encourages deficit spending and this can increase the debt of a country
Annually balanced budget is a budget where at the end of every year, revenue must equal expenditure. this type of budget can magnify the business cycle.
A Cyclically balanced budget is when in a recession, the government makes use of expansionary fiscal policy and in a boom, the government makes use of a contractionary fiscal policy to stabilise the economy
Suppose that Expresso and Beantown are the only two firms that sell coffee. The following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises:
Beantown
Advertise Doesn't Advertise
Expresso Advertise 8, 8 15, 2
Doesn't Advertise 2, 15 9, 9
For example, the upper right cell shows that if Expresso advertises and Beantown doesn't advertise, Expresso will make a profit of $15 million, and Beantown will make a profit of $2 million. Assume this is a simultaneous game and that Expresso and Beantown are both profit-maximizing firms.
If Expresso decides to advertise, it will earn a profit of $ ____________ million if Beantown advertises and a profit of $ _________ million if Beantown does not advertise. If Expresso decides not to advertise, it will earn a profit of $ ____________ million if Beantown advertises and a profit of $_________ million if Beantown does not advertise.
Answer:
$15 Million
$8 Million
Explanation:
Payoff Matrix is as follows: Beantown
Expresso Advertise = Advertise Doesn't Advertise
(8,8) (15,2)
Doesn't Advertise (2,15) (9,9)
If Expresso decides to advertise, it will earn a profit of $2 million if Beantown
advertises, it follows the strategy (Advertise, Advertise)
He earns a profit of $15 million if Beantown does not Advertise, here it follows the strategy (Advertise, Doesn't Advertise).
A new firm is developing its business plan. It will require $565,000 of assets, and it projects $452,800 of sales and $354,300 of operating costs for the first year. Management is quite sure of these numbers because of contracts with its customers and suppliers. It can borrow at a rate of 7.5%, but the bank requires it to have a TIE of at least 4.0, and if the TIE falls below this level the bank will call in the loan and the firm will go bankrupt. What is the maximum debt-to-assets ratio the firm can use
Answer:
58.11%
Explanation:
Sales = $452,800
Operating costs= 354,300
Operating Income (EBIT) = $98,500
TIE= 4.00
Maximum interest expense= EBIT/TIE= $24,625
Interest rate= 7.50%
Max. debt =Max interest/Interest rate = $328,333
Maximum debt ratio=Debt/ Assets= 58.11%
Meritor, a company that makes muffler assemblies for the automotive industry, is committed to the use of kanban to pull material through its manufacturing cells. Meritor has designed each cell to fabricate a specific family of muffler products. Fabricating a muffler assembly involves cutting and bending pieces of pipe that are welded to a muffler and a catalytic converter. The mufflers and catalytic converters are pulled into the cell based on current demand. The catalytic converters are made in a specialized cell.
Catalytic converters are made in batches of 10 units and are moved in special hand carts to the fabrication cells. The catalytic converter cell is designed so that different types of catalytic converters can be made with virtually no setup loss.
Meritor hires a team of consultants. The consultants suggest a partial robotic automation as well as the safety stock to be 12.5 percent. Meritor implements these suggestions. The result is an increase in efficiency in both the fabrication of muffler assembly and the making of catalytic converters. The muffler assembly fabrication cell averages 16 assemblies per hour and the lead time is two hours’ response time for a batch of 10 catalytic converters. How many kanban cards are needed? (Round up your answer to the next whole number.)
Answer: See explanation
Explanation:
The number of kanban cards that are needed can be calculated below:
Average demand, D = 16
Lead time, L = 2 hours
Safety stock, S = 12.5% = 0.125
Catalytic converters, C = 10
Using the formula, =DL(1+S) / C
= 16×2(1 + 0.125) / 10
= 32(1.125) / 10
= 36 / 10
= 3.6
= 4 approximately
Therefore, 4 kanban cards are needed.
Most managers believe that although it is possible to connect logistics decisions to costs, the
connection to revenue enhancement is difficult to impossible. Provide an example of how logistics could
improve sales.
Answer:
It can Increase Sales Predictability.
Generate Leads Consistently, and
Increase Sales Conversions.
Explanation:
Which type of law controls the operation and procedures of government
agencies?
A. Statutory
B. International
C. Regulatory
D. Constitutional
Example of how this skill can make you valuable to potential employer of self and social awareness
Answer:Self-awareness can help improve your career because it makes it easier to understand how others see you. This is key for success. It's essential to be aware of the perceptions of higher-ups, of course, but it's also important to know how you come off when you're working in a leadership capacity.
Explanation: trust
The followings are the example of how this skill can make you valuable to a potential employer of self and social awareness:
recognizing your feelings and your emotions.Identify your main coping techniques.defining your own opinions independently of outside influences.putting your happiness and purpose first.recognizing your advantages and weaknesses.What is Social Awareness?The capacity to understand others' viewpoints and have empathy for them, even those from different cultures and origins. the capacity to perceive community resources and supports, as well as to comprehend social and ethical norms for behavior.
A more peaceful workplace can be achieved through developing your self-awareness so that you can interact with coworkers, direct reports, and superiors more effectively. You can view problems more objectively and consider your possible contribution to their development. You pay attention and live in the present.
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The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 16 percent a year for the next 4 years and then decreasing the growth rate to 6 percent per year. The company just paid its annual dividend in the amount of $1.60 per share. What is the current value of one share of this stock if the required rate of return is 7.10 percent
Answer:
$287.01
Explanation:
The 2 stage dividend discount model would be used to determine the current value of the stock.
first stage
Present value in year 1 = (1.6 x 1.16) / 1.071 = 1.73
Present value in year 2 = (1.6 x 1.16²) / 1.071² = 1.88
Present value in year 3 = (1.6 x 1.16³) / 1.071³ =2.03
Present value in year 4 = (1.6 x 1.16^4) / 1.071^4 = 2.20
second stage
[ (1.6 x 1.16^4) x (1.06) ] / (0.071 - 0.06) = 279.17
Value of the stock = 1.73 + 1.88 + 2.03 + 2.20 + 279.17 = $287.01
During year 2019, Chocolate International (GI) has purchased its inventory as follow: Date Units Unit Cost Total Cost Beginning Inventory 2,500 $8.00 $20,000 April 8, 2019 4,000 $8.10 $32,400 August 7, 2019 2,000 $8.30 $16,600 September 28, 2019 3,500 $8.40 $29,400 Total 12,000 $98,400 Additional Information On December 31, 2019, GI conducted a physical inventory and discovered that it has 800 unit remains in ending inventory. GI used the periodic inventory system. Requirements [You must show your work/steps of how you arrive at your answers] Question 1: Use the weighted average method to find GI's Cost of goods sold and Cost of Ending Inventory. Question 2: Use the LIFO method to find GI's Cost of goods sold and Cost of Ending Inventory. Question 3: Use the FIFO method to find GI's Cost of goods sold and Cost of Ending
Answer:
Chocolate International (CI)
Periodic Inventory system
1. Weighted-Average method:
Cost of goods sold = $91,840 (11,200 * $8.20)
Cost of ending inventory = $6,560 (800 * $8.20)
2. LIFO method:
Cost of ending inventory = $6,400 (800 * $8.00)
Cost of goods sold = Total cost Minus Cost of Ending Inventory
= $98,400 - $6,400
= $92,000
3. FIFO method:
Cost of ending inventory = $6,720 (800 * $8.40)
Cost of goods sold = Total cost Minus Cost of Ending Inventory
= $98,400 - $6,720
= $91,680
Explanation:
a) Data and Calculations:
Date Description Units Unit Cost Total Cost
April 1, 2019 Beginning Inventory 2,500 $8.00 $20,000
April 8, 2019 Purchase 4,000 $8.10 $32,400
August 7, 2019 Purchase 2,000 $8.30 $16,600
September 28 Purchase 3,500 $8.40 $29,400
Total 12,000 $98,400
Weighted-average cost per unit = $8.20
Ending inventory 800
Units sold 11,200 (12,000 - 800)
b) The FIFO (First-in, First-out) method is based on the assumption that Chocolate sales are made from the first items in stock. This means that the ending inventory of Chocolate is made up of the newest items.
On the other hand, the LIFO (Last-in, First-out) method bases its assumption on the sale of the newest Chocolate in stock while the oldest items form the bulk of the ending inventory.
The weighted-average method calculates a weighted-average unit cost of inventory by dividing the total cost of Chocolate available for sale by the total units of Chocolate for sale. Using the period inventory system, the computations of both the cost of goods sold and the ending inventory are done at the end of the specific financial period, unlike the perpetual inventory system.
You, being a supplier of steak dinners, opened your steak house. Assume the market-clearing price is $20 and the market clearing quantity is 500 for a steak dinner; (however, you do not have this information). You, the owner of the steak diner, decide to price your steak dinners at $15.00. You notice that when you do this you could have sold 650 steak dinners but are willing and able to sell only 400. Draw this situation on a graph. Put all numbers given on your graph.
RequireD:
a. What will happen in this market? Will there be a shortage or a surplus? Show this on your graph. What will happen in this market (assume there are no price controls).
b. A news released proved the inefficiency of hybrid vehicles. However, 2 months ago the number of dealers offering various hybrid models nearly tripled. How will this affect the price of hybrid vehicles?
Answer:
A) Shortage, B) Fall in Price
Explanation:
A] Market is at equilibrium where - downward sloping Market Demand (inversely related to price), & upward sloping Market Supply (directly related to price) - are equal & these curves intersect each other.
Above condition gives us equilibrium price & quantity.
If market price < equilibrium price, as given case 15 < 20. Then, supply being directly related to price is lesser, demand being inversely related to price is higher. So, there is a situation of excess demand, ie shortage (graphically denoted by distance between demand & supply curve at actual price below equilibrium price)
B] Dealers of hybrid vehicles increase imply increase in supply of these vehicles, rightwards shift in the supply curve. This creates excess supply ie surplus of them. It implies that competition among sellers lead to fall in price of these hybrid vehicles.
The ABC Corporation is considering opening an office in a new market area that would allow it to increase its annual sales by $2.5 million. Cost of goods sold is estimated to be 40 percent of sales, and corporate overhead would increase by $300,000, not including the cost of either acquiring or leasing office space. The corporation will have to invest $2.5 million in office furniture, office equipment, and other up-front costs associated with opening the new office before considering the costs of owning or leasing the office space. A small office building could be purchased for sole use by the corporation at a total price of $3.9 million, of which $600,000 of the purchase price would represent land value, and $3.3 million would represent building value. The cost of the building would be depreciated over 39 years. The corporation is in a 30 percent tax bracket. An investor is willing to purchase the same building and lease it to the corporation for $450,000 per year for a term of 15 years, with the corporation paying all real estate operating expenses (absolute net lease). Real estate operating expenses are estimated to be 50 percent of the lease payments. Estimates are that the property value will increase over the 15-year lease term for a sale price of $4.9 million at the end of the 15 years. If the property is purchased, it would be financed with an interest-only mortgage for $2,730,000 at an interest rate of 10 percent with a balloon payment due after 15 years.
a. What is the return from opening the office building under the assumption that it is leased?
b. What is the return from opening the office building under the assumption that it is owned?
c. What is the return on the incremental cash flow from owning versus leasing?
d. In general, what other factors might the firm consider before deciding whether to lease or own?
Answer:
A. 12.02%
B. 12.56%.
C. 13.41%
D.1. How long will it take for the asset to be needed
2. How much space is needed to establish the firm.
3. How much expense will the firm incurred to help keep the assets perfectly.
Explanation:
a. Calculation to determine the return from opening the office building under the assumption that it is leased
First step is to calculate the after-tax cash flow l
Sales $2,500,000
Less Cost of goods sold $1,000,000
(40%*$2,500,000)
Gross income $1,500,000
($2,500,000-$1,000,000)
Less: Operating expense
Business expense $300,000
Real estate $225,000
(50%*$450,000)
Less: Lease payments $450,000
Interest payment-
Depreciation-
Taxable income $525,000
Less: Tax ($157,500)
(30%*$225,000)
Income after tax$367,500
($525,000-$157,500)
Add: Depreciation-
Principal-
After-tax cash flow$367,500
($525,000-$157,500)
Now let determine the return from opening the office building
Since the after tax cash flow for 15 years is the amount of $367,500 while the cash outlay is the amount of $2,500,000 using excel to determine the Internal rate of return (IRR) the return from opening the office building will be 12.02%.
Therefore the return from opening the office building under the assumption that it is leased is 12.02%
b. Calculation to determine the return from opening the office building under the assumption that it is owned.
First step is to Calculate the after-tax cash flow
Sales $2,500,000
Cost of goods sold $1,000,000
(40%*$2,500,000)
Gross income $1,500,000
($2,500,000-$1,000,000)
Less: Operating expense
Business expense $300,000
Real estate $225,000
(50%*$450,000)
Less: Lease payments
Interest payment $273,000
(10%*$2,300,000)
Less: Depreciation $84,615
Taxable income $617,385
Less: Tax at 30% $185,215
(30%*$617,385)
Income after tax $432,169
($617,385-$185,215)
Add: Depreciation$84,615
Principal0
After-tax cash flow $516,785
($432,169+$84,615)
Since the after tax cash flow for 15 years is the amount of $367,500, the residual value after 15 years is the amount of $2,006,015 calculated as ($1,489,231+$$516,785)and The cash outlay is the amount of $3,670,000 using excel to compute the Internal rate of return (IRR) the return from opening the office building
will be 12.56%.
c. Calculation to determine the return on the incremental cash flow from owning versus leasing
First step is to Calculate the difference between owning and leasing cash flows
Sales -
Cost of goods sold-
Gross income-
Less: Operating expense-
Business expense-
Real estate-
Less: Lease payments ($450,000)
Interest payment $273,000
(10%*$2,300,000)
Less: Depreciation$84,615
Taxable income $92,385
Less: Tax at 30% $27,715
(30%$92,385)
Income after tax $64,669
($92,385-$27,715)
Add: Depreciation $84,615
Principal0
After-tax cash flow $149,285
($64,669+$84,615)
Since the after-tax cash flow is the amount of $149,285 for 15 years and the cash outlay is the amount of $1,170,000 using the internal rate of return with excel the return on the incremental cash flow from owning versus leasing will be 13.41%.
d.Factors the firm might consider before deciding whether to lease or own are :
1. How long will it take for the asset to be needed
2. How much space is needed to establish the firm.
3. How much expense will the firm incurred to help keep the assets perfectly.
How do the McDonald brothers propose to control the involvement Ray Kroc would have in their business?
Consider a monopoly where consumers are currently consuming where the marginal utility is 10 units of utility for the good. The price of the product is $5. The marginal cost of producing the good is $2.00. Then consider perfectly competitive firms where consumers are currently consuming where the marginal utility is 20 units of utility for the perfectly competitive product. The price of the product is $10. At current production levels, the marginal cost of producing the good is $10.
Required:
a. Calculate the marginal utility per dollar spent by consumers in a monopolistic industry.
b. Calculate the consumer marginal utility per dollar of marginal cost for the monopoly.
Answer and Explanation:
a. The marginal utility per dollar spent in a monopolistic industry is
= Marginal utility ÷ Price
= 10 ÷ 5
= 2 utils per dollar
b. The consumer marginal utility per dollar for the monopoly is
= Marginal utility ÷ Marginal cost
= 10 ÷ 2
= 5 utils per dollar
hence by using the above formulas, the above answers should be considered
Fitz Company reports the following information.
Selected Annual Income Statement Data Selected Year-End Balance Sheet Data
Net income $ 374,000 Accounts receivable decrease $ 17,100
Depreciation expense 44,000 Inventory decrease 42,000
Amortization expense 7,200 Prepaid expenses increase 4,700
Gain on sale of plant assets 6,000 Accounts payable decrease 8,200
Salaries payable increase 1,200
Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31.
Answer and Explanation:
The preparation of the operating activities section is presented below:
Cash flows from operating activities
Net income $374,000
Adjustments made
Add: Depreciation $44,000
add: Amortisation expanses $7,200
Add: Accounts receivable decrease $17,100
Add: Inventory decrease $42,000
Less: Prepaid expense increase -$4,700
Less: Accounts payable decrease -$8,200
Add: Wages payable increases $1,200
Less: Gain on sale of machinery -$6,000
Net cash provided by operating activities $466,600
Fitz Company reports the given information. We can use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. The statement is given below:
The preparation of the operating activities section is presented below:
Cash flows from operating activities
Net income $374,000
Adjustments made
Add: Depreciation $44,000
add: Amortisation expenses $7,200
Add: Accounts receivable decrease $17,100
Add: Inventory decrease $42,000
Less: Prepaid expense increase $4,700
Less Accounts payable decrease $8,200 Add: Wages payable Increases $1,200
Less: Gain on sale of machinery $6,000
Net cash provided by operating activities $466,600
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Which of the following statements is true of raw materials?
Can you put the complete question, please?
Raw materials include products used in producing other products. They are the the input goods or inventory that a company needs to manufacture its products.
What is a raw material?A raw material, which is also referred to as a feedstock, an unprocessed material, or a primary commodity, is a kind of fundamental resource that is used to make other materials, such as intermediate materials that will be used as feedstock for finished items in the future.
Materials or substances used in the initial stages of producing or manufacturing items are known as raw materials. On commodity exchanges around the world, raw materials are commodities that are purchased and sold. Because raw materials are production factors, businesses trade them on the factor market.
Therefore, raw materials are directly used in any manufacturing process.
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Your question is incomplete, but most probably the full question was,
a. They are large capital purchases designed for a long productive life.
b. They include products used in producing other products.
c. They are the goods and services that hold little interest for consumers.
d. They are categorized as consumer products.
Creative Solutions Company, a computer consulting firm, has decided to write off the $13,780 balance of an account owed by a customer, Wil Treadwell.
a. Journalize the entry to record the write-off, assuming that the direct write-off method is used.
b. Journalize the entry to record the write-off, assuming that the allowance method is used.
Answer and Explanation:
The journal entry for recording the bad debt expense is shown below:
a. In case of when direct write off method is used
Bad debt expense $13,780
To Account receivable-Wil Treadwell $13,780
(Being bad debt expense is recorded)
Here the bad debt expense is debited as it increased the expenses and credited the account receivable as it decreased the assets
b. In case of when allowance method is used
Allowance for doubtful accounts $13,780
To Account receivable-Wil Treadwell $13,780
(Being the allowance is recorded)
Here the allowance is debited as it increased the assets and credited the account receivable as it decreased the assets
) when originally issued, an investment in bonds of Flushing Dough, Inc., promised to provide an annual coupon of 7.50%. The bonds have 4 years until maturity, a market price of $735, and are expected to pay all coupon on time. At maturity, however, the bonds are only forecasted to pay 84% of their par value. What is the likely yield to maturity on the bonds
Answer:
The likely yield to maturity on the bonds is 10.23%.
Explanation:
The likely yield to maturity on the bonds can be calculated using the following RATE function in Excel:
YTM = RATE(nper,pmt,-pv,fv) .............(1)
Where;
YTM = likely yield to maturity on the bonds = ?
nper = number of periods = number of years until maturity = 4
pmt = annual coupon payment = annual coupon rate * Face value = 7.50% * $1,000 = $75 = 75
pv = present value = market price = $735 = 735
fv = face value or par value of the bond = 1000
Substituting the values into equation (1), we have:
YTM = RATE(40,75,-735,1000) ............ (2)
Inputting =RATE(40,75,-735,1000) into a cell in an excel (Note: as done in the attached excel file), the YTM is obtained as 10.23%.
Therefore, the likely yield to maturity on the bonds is 10.23%.
The following information was obtained from the records of Appleton Corporation during 2018.
Manufacturing Overhead was applied at a rate of 100 percent of direct labor dollars.
Beginning value of inventory follows:
Beginning Work in Process Inventory, $9,000.
Beginning Finished Goods Inventory, $12,000.
During the period, Work in Process Inventory decreased by 20 percent, and Finished Goods Inventory increased by 25 percent.
Actual manufacturing overhead costs were $88,000.
Sales were $418,000
Adjusted Cost of Goods Sold was $302,000.
Required:
Use the preceding information to find the missing values in the following table:
Item Amount
Direct Materials Used
Direct labor
Manufacturing Overhead Applied 85,000
Total Current Manufactoring Costs
Plus: Begining work in process inventory 9,000
Less: Ending Work in process inventory
Cost of goods manufactured
Plus: Beginning finished goos inventory 12,000
Less: Ending Finished goods inventory
Unadjusted cost of goods sold
Overhead Adjustment
Adjusted Cost of Goods Sold $319,000
Answer:
See below
Explanation:
Items
Direct materials used
($300,200 - $85,000 - $85,000)
$130,200
Direct labor ($85,000/100%)
$85,000
Manufacturing overhead applied $85,000
Total current manufacturing costs
($302,000 + $7,200 - $9,000)
$300,200
Plus: Beginning work in process inventory
$9,000
Less: Ending work in process inventory
($9,000 × 80%)
$7,200
Cost of goods manufactured
($299,000 + $15,000 - $12,000)
$302,000
Plus: Beginning finished goods inventory
$12,000
Less: Ending finished goods inventory
($12,000 × 125%)
$15,000
Unadjusted cost of goods sold ($302,000 - $3,000)
$299,000
Add: Overhead adjustment ($88,000 - $85,000)
$3,000
Adjusted cost of goods sold
$302,000
Using the preceding information to find the missing values in the following table, titled Production Cost Schedule, is as below.
What is a Production Cost Schedule?A production cost schedule is a cost schedule or table that shows the total costs of production at different levels of input and output.
For example, the missing values in the Production Cost Schedule are as follows:
Direct Materials Used $152,000
Direct labor 85,000
Manufacturing Overhead Applied 85,000
Total Current Manufacturing Costs 322,000
Plus: Begining work in process inventory 9,000
Less: Ending Work in process inventory 12,000
Cost of goods manufactured 319,000
Plus: Beginning finished goods inventory 12,000
Less: Ending Finished goods inventory 15,000
Unadjusted cost of goods sold 316,000
Overhead Adjustment 3,000
Adjusted Cost of Goods Sold $319,000
Data and Calculations:Actual manufacturing overhead costs = $88,000
Adjusted cost of goods sold = $302,000
Work in ProcessBeginning Balance $9,000
Ending balance = $10,800 ($9,000 x 1.20)
Finished GoodsBeginning Balance $12,000
Ending balance = $15,000 ($12,000 x 1.25)
Missing Values TableDirect Materials Used 152,000 ($322,000 - $85,000 - $85,000)
Direct labor 85,000 ($85,000/100%)
Manufacturing Overhead Applied 85,000
Total Current Manufactoring Costs 322,000 ($319,000 + $12,000 - 9,000)
Plus: Begining work in process inventory 9,000
Less: Ending Work in process inventory 12,000
Cost of goods manufactured 319,000 ($316,000 +$15,000 - $12,000)
Plus: Beginning finished goods inventory 12,000
Less: Ending Finished goods inventory 15,000
Unadjusted cost of goods sold 316,000 ($319,000 - $3,000)
Overhead Adjustment 3,000 ($88,000 - $85,000)
Adjusted Cost of Goods Sold $319,000
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All good marketers
Create robust social media conversations
Put themselves in the shoes of their target market
Balance push and pull marketing
Minimize negative buzz
Answer:
All good marketers
Put themselves in the shoes of their target market
Explanation:
This creates a personal experience of the marketing efforts and makes marketing a more targeted and conscious activity that is aimed at rendering the best service to the customer instead of just exploiting them. The awareness that marketing creates about goods and services is essential in the supply chain and value creation as a whole. To achieve improved success, a good marketing must be able to put herself in the shoes of their target market or customers.
Folklore Music manufactures harmonicas. Folklore uses standard costs to judge performance. Recently, a clerk mistakenly threw away some of the records, and only partial data for July exist. Folklore knows that the total direct labor variance for the month was $350 F and that the standard labor rate was $11 per hour. A recent pay cut caused a favorable labor rate variance of $0.40 per hour. The standard direct labor hours for actual July outputs were 5,910.
Required:
a. Find the actual number of direct labor hours worked during July. First, find the actual direct labor rate per hour. Then, determine the actual number of direct labor hours worked by setting up the computation of the total direct labor variance as given.
b. Compute the direct labor rate and efficiency variances. Do these variances suggest that the manager may have made trade-offs? Explain.
Answer: See explanation
Explanation:
a. The actual direct labor rate per hour will be:
= Standard direct labor rate per hour - favorable labor rate variance
= $11 - $0.40
= $10.60
Then, the actual direct labor hours worked during July will be calculated as:
= (5910 × $11) - $350 / $10.6
= ($65010 - $350) / $10.6
= $64660 / $10.6
= 6100
b. The direct labor rate variance will be:
= (Actual rate per hour - standard rate per hour) × Actual labor hours
= (10.60 - 11.00) × 6100
= 2440F
Direct labor efficiency variance will be:
= (6900 - 5910) × $11
= 2090U
The direct labor rate variance that was favorable shows that the manager paid a lower rate to its staffs while the direct labor efficiency variance that was unfavorable implies that the manager used less efficient workers. This indicates that a trade-off took place.
= (6900
1) The pen example in the video suggests that most salespeople ____________________. a struggle to get a foot in the door b are at least polite c ask the right questions before making a sales presentation d focus on relationship building in the first meeting with the customer e start by highlighting the features and points-of-difference of a product
Answer:
A. struggle to get a foot in the door
Explanation:
The example of pen was used to define the fact that most salespeople start off by asking or telling the usual instead of analysing the situation and determining the right questions to be asked from the customer which ultimately leads to most of sales individuals to struggle.
Like in this case where a salesperson is given a pen, he would start by saying that he has a pen to sell with multiple colours, they are affordable and lightweight. These questions are too generic and may not interest the customer. Instead to sale better one must ask intelligent questions that will be relevant for the customer in order to pitch them the right kind of product.
Southeast Bank invests in equity securities and prepares quarterly financial statements. At the beginning of the fourth quarter of 2019, the bank held as an investment in equity securities 160 shares of Eglan Company common stock that originally cost $4,560. At that time, these securities had a fair value of $4,320. During the fourth quarter, the bank engaged in the following transactions:
Oct. 26 Purchased 360 shares of Farrell Company common stock for $38 per share.
Nov. 26 Sold 160 shares of Eglan common stock for $26 per share.
Dec. 10 Purchased 370 shares of Gray Company common stock for $40 per share.
On December 31, 2018, the quoted market prices of the shares were as follows: Eglan Company, $52 per share; Farrell Company, $41 per share; and Gray Company, $39 per share.
Required:
a. Prepare journal entries to record the 2018 transactions for the fourth quarter.
b. Show what the bank reports on its fourth quarter 2018 income statement for these trading securities.
c. Show how the bank reports these trading securities on its balance sheet at the end of the fourth quarter of 2018.
Answer:
Southeast Bank
a. Journal Entries:
Oct. 26: Debit Investment in Farrell Company $13,680
Credit Cash $13,680
To record the investment in 360 equity shares at $38 per share.
Nov. 26: Debit Cash $4,160
Credit Investment in Eglan Company $4,160
To record the sale of investment in Eglan Company.
Debit Realized Loss on Sale of Investment $400
Credit Investment in Eglan Company $400
To record the realized loss on sale of investment.
Dec. 10: Debit Investment in Gray Company $14,800
Cash $14,800
To record the purchase of 370 shares of common stock at $40 per share.
Dec. 31: Debit Investment in Farrell Company $1,800
Credit Unrealized Gain $1,800
To record the fair value of the investment.
Dec. 31: Debit Unrealized Loss $370
Credit Investment in Gray Company $370
To record the fair value of the investment.
b. Income Statement of fourth quarter, 2018:
Realized Loss on Sale of Investment $400
Unrealized Gain (Farrell Company) $1,800
Unrealized Loss (Gray Company) $370
c. Balance Sheet at the end of the fourth quarter of 2018
Investments:
Farrell Company $15,480 ($13,680 + $1,800)
Gray Company $ 15,170($14,800 - $370)
Explanation:
a) Data and Calculations:
Investment in Eglan Company (equity securities 160 shares) = $4,560
Oct. 26: Investment in Farrell Company $13,680 Cash $13,680
(360 equity shares at $38 per share)
Nov. 26: Cash $4,160 Investment in Eglan Company $4,160
Realized Loss on Sale of Investment $400 Investment in Eglan Company $400
Dec. 10: Investment in Gray Company $14,800 Cash $14,800 (370 shares of common stock at $40 per share)
Dec. 31: Investment in Farrell Company $1,800 Unrealized Gain $1,800
Dec. 31: Unrealized Loss $370 Investment in Gray Company $370
The cost of issuing new common stock is calculated the same way as the cost of raising equity capital from retained earnings. False: Flotation costs need to be taken into account when calculating the cost of issuing new common stock, but they do not need to be taken into account when raising capital from retained earnings. True: The cost of retained earnings and the cost of new common stock are calculated in the same manner, except that the cost of retained earnings is based on the firm’s existing common equity, while the cost of new common stock is based on the value of the firm’s share price net of its flotation cost.
Answer: False: Flotation costs need to be taken into account when calculating the cost of issuing new common stock, but they do not need to be taken into account when raising capital from retained earnings.
Explanation:
When issuing common stock, the firm will need to pay certain floatation costs such as underwriting fees, legal fees, and registration fees. These will reduce the net amount received from the floatation of new securities.
When raising capital from the retained earnings however, the company can avoid flotation costs because they would be acquiring funds internally and so do not have to worry about paying other entities to access it.
A bicameral legislature is made up of how many bodies?
O one
O two
O three
O four
Answer:
two
Explanation:
A bicameral legislature is made up of two bodies. Thus, option B is the correct option.
What is a bicameral legislature?A bicameral legislature, which is distinguished by having two distinct assemblies, chambers, or houses, is one that practices bicameralism. Unicameralism, in which all members discuss and vote as a single body, is distinct from bicameralism. Bicameralism will be used by about 40% of national legislatures throughout the world as of 2022, compared to 60% at the national level and significantly more at the subnational level for unicameralism.
The techniques used to elect or choose the members of the two chambers sometimes varied from jurisdiction to jurisdiction. This frequently results in the membership of the two chambers being significantly different. Primary legislation frequently has to be approved by majorities in both houses of the legislature in order to be passed. If this is the case, the legislature may be seen as the epitome of bicameralism.
Learn more about bicameral legislature here:
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g Suppose a central bank wants to increase its international reserves without changing the domestic money supply. It will Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a make an unsterilized purchase of foreign bonds. b make an unsterilized sale of foreign bonds. c make a sterilized purchase of foreign bonds. d make a sterilized sale of foreign bonds.
Answer:
c. make a sterilized purchase of foreign bonds.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
Bonds are generally debts, which may be floated in different ways with respect to the issuer of the bond and its type. Bonds are used by government and corporate institutions to borrow money with interest and they also have to pay for the face value of the bonds at maturity.
The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.
In Economics, bonds could either be issued at discount or premium. A bond that is being issued at a discount has its stated rate lower than the market interest rate, on the specific date of issuance while a bond that is issued at a premium, has its stated rate higher than the market interest rate on the specific date of issuance.
Hence, a central bank can increase its international reserves without changing the domestic money supply by making a sterilized purchase of foreign bonds.
Mercury Inc. purchased equipment in 2019 at a cost of $497,000. The equipment was expected to produce 580,000 units over the next five years and have a residual value of $33,000. The equipment was sold for $253,600 part way through 2021. Actual production in each year was: 2019 = 83,000 units; 2020 = 133,000 units; 2021 = 67,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date.
Required:
1. Calculate the gain or loss on the sale.
2. Prepare the journal entry to record the sale.
3. Assuming that the equipment was instead sold for $280,000, calculate the gain or loss on the sale.
4. Prepare the journal entry to record the sale in requirement 3.
Answer:
1.
Gain or (Loss) on sale = (17000) Loss
2.
Cash 253600 Dr
Accumulated Depreciation 226400 Dr
Loss on Sale 17000 Dr
Equipment 497000 Cr
3.
Gain or (Loss) on sale = 9400 Gain
4.
Cash 280000 Dr
Accumulated Depreciation 226400 Dr
Gain on Sale 9400 Cr
Equipment 497000 Cr
Explanation:
We first need to calculate the carrying value of the equipment at the date of disposal. The carrying value is calculated as follows,
Carrying value = Cost - Accumulated depreciation
Depreciation 2019 = (497000 - 33000) * 83000 / 580000
Depreciation 2019 = 66400
Depreciation 2020 = (497000 - 33000) * 133000 / 580000
Depreciation 2020 = 106400
Depreciation 2021 = (497000 - 33000) * 67000 / 580000
Depreciation 2021 = 53600
Carrying value = 497000 - [ 66400 + 106400 + 53600 ]
Carrying value = $270600
1.
Gain or (Loss) on sale = Sales price - Carrying Value
Gain or (Loss) on sale = 253600 - 270600
Gain or (Loss) on sale = (17000) Loss
2.
Cash 253600 Dr
Accumulated Depreciation 226400 Dr
Loss on Sale 17000 Dr
Equipment 497000 Cr
3.
Gain or (Loss) on sale = Sales price - Carrying Value
Gain or (Loss) on sale = 280000 - 270600
Gain or (Loss) on sale = 9400 Gain
4.
Cash 280000 Dr
Accumulated Depreciation 226400 Dr
Gain on Sale 9400 Cr
Equipment 497000 Cr
Products A and B are joint products. Product A can be sold for $1,200 at the split-off point, or processed further at a cost of $600 and then sold for $1,700. Product B can be sold for $3,000 at the split-off point, or processed further at a cost of $800 and then sold for $4,000. The company should process further: Multiple Choice Product A. Product B. Both products. Neither of the products.
Answer:
The company should process further:
Product B.
Explanation:
a) Data and Calculations:
Product A sales value at split-off point = $1,200
Cost of further processing of Product A = $600
Sales proceeds from Product A after further processing = $1,700
Product B sales value at split-off point = $3,000
Cost of further processing of Product B = $800
Sales proceeds from Product B after further processing = $4,000
b) There is no additional revenue gained from further processing of Product A. Instead, there is a loss of $100 ($1,800 - $1,700). This is unlike Product B where there is a gain of $200 ($4,000 - $3,800) from further processing. The company's decision should be to sell Product A at split-off while further processing Product B to realize incremental revenue.
An organization whose capacity is on that portion of the average unit cost curve that falls as output rises: has a facility that is below optimum operating level and should build a larger facility. has a facility that is above optimum operating level and should reduce facility size. is suffering from diseconomies of scale. has utilization higher than efficiency. has expected output higher than rated capacity
Answer:
has a facility that is below optimum operating level and should build a larger facility.
Explanation:
In the case when the organization whose capacity should be on the average unit cost curve where it would be decline when the output rises so this means that it has a facility i.e. lower than the optimal level of operation and should established the larger facility
Hence, the first option is correct
And, the other options would be incorrect
How can you become a driver of change
Answer: 'Drivers of Change' (DoC) is an approach developed by DFID to address the lack of linkages between a country's political framework and the work of development agencies. The approach focuses on “the interplay of economic, social and political factors that support or impede' poverty reduction”.
Explanation:
Suppose a drop in the compensating wage differential between risky jobs and safe jobs has been observed. Two explanations have been put forward: • Engineering advances have made it less costly to create a safe working environment. • The phenomenal success of a new reality show Die on the Job! has imbued millions of viewers with a romantic perception of work-related fatal risks. Using demand and supply diagrams of risky jobs, show how each of the two developments can explain the drop in the compensating wage differential. Can information on the number of workers employed in the risky occupation help determine which explanation is more plausible?
Answer and Explanation:
As shown in the question above, the advancement of engineering has allowed it to be cheaper for a company to promote a safe environment for professionals than to pay a higher salary for the risk they run within the work environment. This causes companies to modify the offer of risky jobs, as a way of reducing expenses. However, due to wage compensation, the demand for these jobs remains high, because professionals are attracted to compensation. To stop this demand, companies promote a compensation differential, which modifies the demand curve by decreasing it, which means that fewer people will look for these jobs.
Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes.
Example M1 M2
Susan has $8,000 in a two-year certificate of deposit (CD).
Larry has a roll of quarters that he just withdrew from the bank to do laundry.
Raphael has $25,000 in a money market account.
Answer and Explanation:
The identification is as follows:
As we know that
M! money supply involved all the currecies that have physical existance i.e. notes, coins, demand deposits etc
While on the other hand, M2 involves M1 + near money i.e. mutual funds, checking deposits, money market etc
Since Susan has 2 year CD so it would be classified as a M2 money supply
Since larry withdraw from the bank so it would be included in M1 and M2
And, since raphael has $25,000 in money market so would be classified as a M2 money supply