Answer:
1. In this case, Clancy imposes a Negative externality on his neighbor in the form of noise pollution.
A Negative Externality refers to the negative effects on a third party that was not party to the transaction that is causing the negative effect. Here Clancy is listening to Rock 'n' Roll music loudly which is the transaction. Hubert feels affected by this even though Hubert has nothing to do with Clancy playing the loud music.
2. Clancy playing his music loudly does not do any harm if Hubert is not home.
Such a command-and-control policy would be inefficient because it would not take into account the times when Hubert is not harmed by music and just place uniform restrictions of Clancy. A policy needs to be employed that caters for the times when Hubert won't be affected thereby giving Clancy freedom to play the music as Clancy wants.
3. False
According to the Coase Theorem, parties facing an externality dilemma can actually work out their problems by themselves provided that the cost of doing so is not a lot. Clancy and Hubert can therefore reach a solution on their own without outside help if the cost of doing so is not too high.
In reality however, it is quite hard for both parties to reach a consensus on their own and so a third party is usually needed to mediate.
Staley Inc. reported the following data:
Net income $396,200
Depreciation expense 61,250
Loss on disposal of equipment 27,600
Increase in accounts receivable 9,000
Increase in accounts payable 3,350
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.
Staley Inc.
Statement of Cash Flows (partial)
1 Cash flows from operating activities:
2
3 Adjustments to reconcile net income to net cash flow from operating activities:
4
5
6 Changes in current operating assets and liabilities:
7
8
9
Answer:
The cash flows from operating activities is $479,400.
Explanation:
Staley Inc.
Statement of Cash Flows (partial)
Cash flows from operating activities:
Adjustments to reconcile net income to net cash flow from operating activities:
Net income $396,200
Add: Depreciation expense 61,250
Loss on disposal of equipment 27,600
Changes in current operating assets and liabilities:
Less: Increase in accounts receivable 9,000
Add: Increase in accounts payable 3,350
Cash flows from operating activities: $479,400
Sandra Sousa, Registered Dietician Trial Balance July 31, 2018 Balance Account Title Debit Credit Cash 33000 Accounts Receivable 9600 Office Supplies 2200 Prepaid Insurance 2800Equipment 18000Accounts Payable 3100Unearned Revenue 292Notes Payable 34000Sousa, Capital 22000Sousa, Withdrawals 2000 Service Revenue 11258 Salaries Expense 1500Rent Expense 1200 Utilities Expense 350Total $ Net Inoome 70,650 70,650Requirement1. Prepare the income statement for the month ended July 31, 2018,Requirement 2. Prepare the statement of owners equity for the month ended July 31, 2018. Requirement 3. Prepare the balance sheet &s of July 31, 2018. Requirement 4. Calculate the debt ratio as of July 31, 2018 70,650 $ 70,650 Select the debt ratio formula on the first line and then calculate the ratio -Debt ratio
Answer:
Requirement 1. Prepare the income statement for the month ended July 31, 2018.
Sandra Sousa, Registered Dietitian
Income Statement
For the Month Ended July 31, 2018
Service Revenue $11,258
Salaries Expense -$1,500
Rent Expense -$1,200
Utilities Expense -$350
Net income $8,208
Requirement 2. Prepare the statement of owners equity for the month ended July 31, 2018.
Sandra Sousa, Registered Dietitian
Statement of Owner's Equity
For the Month Ended July 31, 2018
Sousa, Capital balance July 1, 2018 $22,000
Investment during month $0
Net income $8,208
subtotal $30,208
Withdrawals during the month -$2,000
Sousa, Capital balance July 31, 2018 $28,208
Requirement 3. Prepare the balance sheet &s of July 31, 2018.
Sandra Sousa, Registered Dietitian
Balance Sheet
For the Month Ended July 31, 2018
Assets:
Cash $33,000
Accounts Receivable $9,600
Office Supplies $2,200
Prepaid Insurance $2,800
Equipment $18,000
Total assets $65,600
Liabilities and equity:
Accounts Payable $3,100
Unearned Revenue $292
Notes Payable $34,000
Sousa, Capital $22,000
Retained earnings $6,208
Total liabilities and equity $65,600
Requirement 4. Calculate the debt ratio as of July 31, 2018.
debt ratio = liabilities / assets = $65,600 / $37,392 = 175.44%
debt to equity ratio = liabilities / equity = $37,392 / $28,208 = 132.56%
Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the lease will be $2,468. The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. If the discount rate is 5%, the present value of the lease payments is closest to (Ignore income taxes.):
Answer:
$13,153.15
Explanation:
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator
Cash flow each year from year 0 to 5 = $2,468
I = 5%
PV = $13,153.15
To find the PV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Maddox is Gordon's 17-year-old son. He is a whiz at repairing machines and is employed doing so at the factory full-time during the summer. He has already worked 40 hours this week, but some machines still need repaired. Is Max eligible for overtime pay?
Answer:
Maddox must be paid overtime.
Explanation:
Solution
Generally,most people or individuals above 16 and 17 years old are considered as for calculating working hours and overtime pay during summer vacation.
In this scenario, Maddox had already worked 40 hours in the week and needs to work extra for the sole purpose of fixing machines.
For this, it is required or expected for Maddox to be paid.
Given the following information, calculate the debt ratio percentage: Liabilities = $25,000Liquid assets = $5,000Monthly credit payments = $800Monthly savings = $760Net worth = $75,000Take-home pay = $2,300Gross income = $3,500Monthly expenses = $2,050
Answer:
33.33%
Explanation:
The debt ratio percentage is calculated as:
Liabilities / Net worth = Debt Ratio Percentage
$25,000 / $75,000 = 0.3333
0.3333 * 100 = 33.33%
The debt ratio is easy to calculate and is calculated by dividing the total liabilities of a person with the total net worth of the person. Dividing both gives a figure in decimal which is then multiplied by 100 to derive a percentage.
Green Company is planning to introduce a new product with a 75 percent incremental unit-time learning curve for production in batches of 1,500 units. The variable labor costs are $55 per unit for the first 1,500-unit batch. Each batch requires 200 hours. There are $15,000 in fixed costs not subject to learning. What is the cumulative total time (labor hours) to produce 3,000 units
Answer:
210 hours
Explanation:
The learning curve rate can be found by log75%
Ln0.75 = 0.12249
1 batch requires 200 hours
The 1500 units batch will require 200 hours
For 3000 units there will be two batches of 1500 units each
200 hours * 2 batches * 0.12249 * 4.5 = 210 hours
Miller, Inc. estimates the cost of its physical inventory at March 31 for use in an interim financial statement. The rate of markup on cost is 25%. The following account balances are available: Inventory, March 1 $220,000 Purchases 172,000 Purchase returns 8,000 Sales during March 300,000 The estimate of the cost of inventory at March 31 would be
Answer:
$144,000
Explanation:
The computation of the estimation of the inventory cost at the ending is shown below:
As we know that
Ending inventory = Opening inventory + net purchase - cost of goods sold
= opening inventory + purchase - purchase return - cost of goods sold
= $220,000 + $172,000 - $8,000 - ($300,000 ÷ 125%)
= $220,000 + $164,000 - $240,000
= $144,000
We simply applied the above formula to determine the ending inventory cost
Upon graduating from UCI, you start a job in finance earning $72,000 per year and decide to buy a home. You can afford to pay no more than $1,000 per month for the fixed monthly payments on a 30-year fixed-rate home loan (mortgage) and the current conventional 30-year fixed mortgage annual interest rate that you qualify to borrow at is 4%. What is the maximum size home loan you can afford? Please round your numerical answer to the nearest dollar.
Answer:
Maximum size of home loan than can afford is $209,471
Explanation:
Rate of interest on borrowing = 4%
Per month rate (r) = 4% / 12 = 0.33%
n = 30*12 = 360 months
Maximum size of home loan than can afford =
= $1000 * PVAF (0.33% , 360)
= $1000 * 209.47135
= $209471.35
= $209,471
Maximum size of home loan than can afford = $209471
Note: Monthly payment * PVAF( r, n)
PVAF at (0.33% , 360)
PVAF = 209.47135
A firm considers to buy a machine in 2020. The cost of that machine is $ 5 000 000. The firm uses 5 year straight line depreciation which allows it to write off $ 1 000 000 depreciation expense each year. The firm is subject to 20% corporate tax rate. The firm's revenue in 2021 is expected to be $ 6 000 000 if the investment is not done. The revenue will be $ 9 000 000 if the investment is done. The firm's total costs (including both COGS and General&Administrative Costs) will be $ 4 000 000 if the investment is not done. The total costs will be $ 5 500 000 if the investment is done. Also the following information is given for the year 2021
Without Investment With Investment
Inventories $ 300 000 $ 500 000
Acc. Receivables $ 200 000 $ 300 000
Acc. Payables $ 100 000 $ 150 000
Given the above information, calculate the free cash flow of that investment for the years 2020 and 2021.
Answer and Explanation:
The computation of the free cash flow of the investment for the year 2020 and 2021 is shown below:
Particulars Case 1 Case 2
Without Investment With Investment
Add: Earnings Before
Interest and
Tax × (1 - Tax Rate) $2,000,000 $2,500,000
Add: Non Cash Expenses $0 $1,000,000
less: Change in
(Current Assets
- Current Liabilities) ($400,000) ($650,000)
Less: Capital Expenditure $0 ($5,000,000)
Free Cash Flows $1,600,000 ($2,150,000)
Working notes:
1.
Particulars Without Investment With Investment
Revenue for the Year 2021 $6,000,000 $9,000,000
Less: Cost of Goods Sold $4,000,000 $5,500,000
(-) Depreciation $0 $1,000,000
Earnings Before
Interest and Tax $2,000,000 $2,500,000
Tax Savings on Depreciation
(Depreciation × 20%) $0 $200,000
2.
Current Assets Without Investment With Investment
Inventories $300,000 $500,000
Accounts Receivable $200,000 $300,000
Total $500,000 $800,000
(Less: Current Liabilities)
Accounts Payable $100,000 $150,000
Less: Change in
(Current Assets
- Current Liabilities) $400,000 $650,000
On January 1, 20X8, Package Company acquired 80 percent of Stamp Company's common stock for $280,000 cash. At that date, Stamp reported common stock outstanding of $200,000 and retained earnings of $100,000, and the fair value of the noncontrolling interest was $70,000. The book values and fair values of Stamp's assets and liabilities were equal, except for other intangible assets which had a fair value $50,000 greater than book value and an 8-year remaining life. Stamp reported the following data for 20X8 and 20X9: Stamp Corporation Year Net Income Comprehensive Income Dividends Paid 20X8 $ 25,000 $ 30,000 $ 5,000 20X9 35,000 45,000 10,000 Package reported net income of $100,000 and paid dividends of $30,000 for both the years. Based on the preceding information, what is the amount of comprehensive income attributable to the controlling interest for 20X8?
Answer:
Comprehensive income attributable to the controlling interest for 20X8 is $119,000
Explanation:
Stamp Corporation
Year Net Income Comprehensive Income Dividends Paid 20X8 $ 25,000 $ 30,000 $ 5,000
20X9 $35,000 $45,000 $ 10,000
The amount of comprehensive income attributable to the controlling interest for 20X8 ;
Comprehensive income of Stamp Corporation = $30,000
Less: Annual amortization of intangible assets acquired on acquisition (50000/8) = $6,250
Comprehensive income of Stamp Corporation after adjustment = $23,750
Income attributable to controlling interest = 80% × $23,750 = $19,000
Net income of Package Company = $100,000
Comprehensive income attributable to the controlling interest = Income attributable to controlling interest + Net income of Package Company
= $19,000 + $100,000
= $119,000
You are cautiously bullish on the common stock of EXTREME INC over the next several months. The current price of the stock is $59 per share. You want to establish a bullish money spread to help limit the cost of your option position. You find the following option quotes: EXTREME INC Underlying Stock price: $59.00 Expiration Strike Call Put June 54.00 9.40 2.45 June59.00 4.95 3.90 June64.00 2.45 8.40 Suppose you establish a bullish money spread with the puts. In June the stock's price turns out to be $62. Ignoring commissions, the net profit on your position is
Answer: $395
Explanation:
A bull put spread is a strategy that is utilized by investors when a moderate rise is being expected in the price of an asset. Investors will purchase put at a lower price and then sells the put option at a strike price that is higher.
In this scenario, the $54 put option will have to be bought and the $64 put option will then be sold.
Profit = Premium received – Premium Paid + Settlement gain/Loss
Since we have been given that the stock's price turns out to be $62 in June, $64 put will be exercised which will lead to ($64 - $62) = $2 loss per option.
The net profit will now be:
= (8.40 - 2.45 - 2) × 100
= 3.95 × 100
= $395
Therefore, the net profit is $395
Tri-products is trying to decide whether to make or buy an accessory item for one of their products. It is projected that this item will sell for $10 each. If the item is outsourced, there is virtually no cost other than the $6 per unit that they would pay their supplier. Internally, they have two choices. Process A requires an investment of $120,000 for design and equipment, but results in a $4 per unit cost. Process B requires only a $100,000 investment, but its per unit cost is $5. Regardless of whether the item is subcontracted or produced internally, there is a 50% chance that they will sell 50,000 units, and a 50% chance that they will sell 100,000 units. Draw the decision tree appropriate to the alternatives and outcomes stated. Using the decision tree and Expected Values, what is their best choice?
Answer:
The best choice is process A since it has the highest EMV of $330000
Explanation:
there is a 50% chance that they will sell 50,000 units, and a 50% chance that they will sell 100,000 units
The decision tree is attached below, the calculations for the decision tree is given as:
The item sells for $10. Process A requires an investment of $120,000 for design and equipment, but results in a $4 per unit cost.
If there is high demand, they will sell 100,000 units, The profit = 100000($10-$4) - $120000 = $480000.
If there is low demand, they will sell 50,000 units, The profit = 50000($10-$4) - $120000 = $180000.
The EMV of process A = 0.5($480000) + 0.5($180000) = $330000
Process B requires only a $100,000 investment, but its per unit cost is $5
If there is high demand, they will sell 100,000 units, The profit = 100000($10-$5) - $100000 = $400000.
If there is low demand, they will sell 50,000 units, The profit = 50000($10-$5) - $100000 = $150000.
The EMV of process B = 0.5($400000) + 0.5($150000) = $275000
If the item is outsourced, there is virtually no cost other than the $6 per unit that they would pay their supplier
If there is high demand, they will sell 100,000 units, The profit = 100000($10-$6) = $400000.
If there is low demand, they will sell 50,000 units, The profit = 50000($10-$6) = $200000.
The EMV of Buying = 0.5($400000) + 0.5($200000) = $300000
The best choice is process A since it has the highest EMV
The question asks about whether to buy and sell a product or produce and sell a product.
The item can be sold for $10.
If Outsourced
The cost of an item will be $6 which can be sold at $10, this in return will provide a profit of $4.
If there is high demand 100,000 units will be sold
Sales $10 * 100,000 = $1,000,000.
Cost $6 * 100,000 = $600,000
Profit = $1,000,000 - $600,000 = $400,000
If there is low demand
Sales $10 * 50,000 = $500,000.
Cost $6 * 50,000 = $300,000
Profit = $500,000 - $300,000 = $200,000
Calculating Probability
$400,000 * 0.5 + $200,000 *.05
=$300,000
If Produced Internally
A
Investment required $120,000
Cost per unit will be $4
If there is high demand 100,000 units will be sold
Sales $10 * 100,000 = $1,000,000.
Cost $4 * 100,000 = $400,000
Profit = $1,000,000 - $400,000 - $120,000 = $480,000
If there is low demand
Sales $10 * 50,000 = $500,000.
Cost $4 * 50,000 = $200,000
Profit = $500,000 - $200,000 - $120,000 = $180,000
Calculating Probability
$480,000 * 0.5 + $180,000 *.05
=$330,000
B
Investment required $100,000
Cost per unit will be $5
If there is high demand 100,000 units will be sold
Sales $10 * 100,000 = $1,000,000.
Cost $5 * 100,000 = $500,000
Profit = $1,000,000 - $500,000 - $100,000 = $400,000
If there is low demand
Sales $10 * 50,000 = $500,000.
Cost $5 * 50,000 = $250,000
Profit = $500,000 - $250,000 - $100,000 = $150,000
Calculating Probability
$400,000 * 0.5 + $150,000 *.05
=$275,000
The highest gain/profit is achieved at A thus Process A should be selected
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The Monster Truck operates several specialty vehicles that provide hot food and beverages for firms that have workers employed in outlying regions. The company has annual sales of $627,200. Cost of goods sold average 38 percent of sales and the profit margin is 5.1 percent. The average accounts receivable balance is $35,300. On average, how long does it take the company to collect payment for its services
Answer:
The answer is 20.55 days
Explanation:
Solution
Given that:
Annual sales =$627,200
Average accounts receivable =$35,300
Now
The accounts turnover ratio (receivable) = Sales/Average accounts receivable
Accounts receivable turnover ratio = $627,200/$35.300
=17.76 times
Thus
Number of days payment receives = 365/ Accounts receivable turnover ratio =365 days/17.76 times
=20.55 days
Therefore The company takes 20.55 days to get payment for its services
Lindell Co. expects to purchase $19,100 of materials in July and $22,700 of materials in August. 70.00% of all purchases are paid for in the month of purchase, and the remaining 30.00% are paid for in the month following the month of purchase. What will be the company's cash disbursements in August?
A student believes that the average grade on the statistics final examination is 87. A sample of 36 final
examinations is taken. The average grade in the sample is 83.96. The population variance is 144.
a. State the null and alternative hypotheses.
b. Using a critical value, test the hypothesis at the 5% level of significance.
c. Using a p-value, test the hypothesis at the 5% level of significance.
d. Using a confidence interval, test the hypothesis at the 5% level of significance.
Answer:
(a) H₀: μ = 87 vs. Hₐ: μ ≠ 87.
(b) [tex]z=-1.52>-z_{\alpha/2}=-1.96[/tex]. The average grade on the statistics final examination is 87.
(c) The p-value = 0.1286 > α = 0.05. The average grade on the statistics final examination is 87.
(d) The 95% confidence interval for the average grade on the statistics final examination is (80.04, 87.88).
Explanation:
A statistical hypothesis test is to be performed to determine whether the average grade on the statistics final examination is 87.
(a)
The hypothesis can be defined as follows:
H₀: The average grade on the statistics final examination is 87, i.e. μ = 87.
Hₐ: The average grade on the statistics final examination is not 87, i.e. μ ≠ 87.
(b)
The information provided is:
[tex]n=36\\\bar x=83.96\\\sigma^{2}=144[/tex]
As the population variance is provided, we will use a z-test for single mean.
Compute the test statistic value as follows:
[tex]z=\frac{\bar x-\mu}{\sqrt{\sigma^{2}/n}}=\frac{83.96-87}{\sqrt{144/36}}=-1.52[/tex]
The test statistic value is -1.52.
Decision rule:
Reject H₀ if:
[tex]z<-z_{\alpha/2}\ \text{or}\ z<z_{\alpha/2}\\\\\Rightarrow z<-z_{0.05/2}\ \text{or}\ z<z_{0.05/2}\\\\\Rightarrow z<-1.96\ \text{or}\ z<1.96[/tex]
The calculated value of [tex]z=-1.52>-z_{\alpha/2}=-1.96[/tex].
The null hypothesis will not be rejected.
Conclusion:
The average grade on the statistics final examination is 87.
(c)
Decision Rule:
If the p-value of the test is less than the significance level then the null hypothesis will be rejected.
Compute the p-value for the two-tailed test as follows:
[tex]p-value=2\cdot P(Z<-1.52)=2\times 0.0643=0.1286[/tex]
*Use a z-table for the probability.
The p-value of the test is 0.1286.
p-value = 0.1286 > α = 0.05
The null hypothesis will not be rejected.
Thus, it can be concluded that average grade on the statistics final examination is 87.
(d)
Compute the 95% confidence interval for the average grade on the statistics final examination as follows:
[tex]CI=\bar x\pm z_{\alpha/2}\cdot \sqrt{\frac{\sigma^{2}}{n}}[/tex]
[tex]=83.96\pm 1.96\cdot \sqrt{\frac{144}{36}}\\\\=83.96\pm 3.92\\\\=(80.04, 87.88)[/tex]
The 95% confidence interval for the average grade on the statistics final examination is (80.04, 87.88).
As the 95% confidence interval consists of the null value, i.e. 87, the null hypothesis will not be rejected.
Hence, concluding that the average grade on the statistics final examination is 87.
Jayne Butterfield, a single mother with three children, lived in Sacramento, California. Sarah Huckleberry also lived in California until she moved to New York City to open and operate an art gallery. Huckleberry asked Butterfield to manage the gallery under a one-year contract for an annual salary of $90,000. To begin work, Butterfield relocated to New York. As part of the move, Butterfield transferred custody of her children to her husband, who lived in London, England. In accepting the job, Butterfield also forfeited her husband's alimony and child-support payments, including unpaid amounts of nearly $45,000. Before Butterfield started work, Huckleberry repudiated the contract. Unable to find employment for more than an annual salary of $30,000, Butterfield moved to London to be near her children. She filed a suit in an California state court against Huckleberry, seeking damages for breach of contract. Should the court hold, as Huckleberry argued, that Butterfield did not take reasonable steps to mitigate her damages? Why or why not?
Answer:
No, the court should not hold in favor of Huckleberry.
Explanation:
The rule of mitigation that Huckleberry tries to use in her favor states that the non-breaching party (Butterfield) should have taken all the necessary steps to reduce her loss, e.g. take a job in New York. She probably argued that Butterfield leaving for England to meet with her children made things worse.
But in this case, Butterfield relied on Huckleberry's promise to organize her life and the well being of her children. Butterfield made a lot of changes and sacrifices in her life because of this, e.g. forfeiting unpaid alimony, transferring custody of her children , etc.
Moving to a different city or country requires a lot of work, expat life is not easy and not everyone can handle it. Butterfield took decisions that affected the lives of many people and she is not responsible for Huckleberry's breaching, the only party responsible for all this mess is Huckleberry and it is normal that Butterfield would want to go to where her children are.
Workplace Messaging and Texting
Instant messaging (IM) enables users to communicate in real time via the Internet.
Complete the following sentence about instant messaging.
IM communication tends to be conducted_______.
IM is increasingly used by businesses. Ider_____workers find IM useful.
A. In real time
B. Litigation
C. Presence functionality
D. Convenience
E. Speed
F. Unobtrusiveness
G. Control
Before using instant messaging on the job, obtain permission and follow best practices for professional use. IM is increasingly used by businesses. Identify the reasons workers find IM usefil.
A. Litigation
B. Presence functionality
C. Convenience
D. Speed
E. Unobtrusiveness
F. Control
Before using instant messaging on the job, obtain permission and follow best practices for professional use.
To ensure that people don't waste their time trying to reach you, you should:______.
A. Beware of jargon, slang, and abbreviations.
B. Keep your IM presence status current.
C. Learn about your organization's IM policies.
Read the following IM transcript.
A. Gene Kestler: Did you hear about the new customer?
B. Gene Kestler: Dude! Where are you! We need to talk NOW!
C. Gene Kestler: Come on Herb.
Does the preceding IM transcript apply professional best practices?
A. No
B. Yes
Answer:
1. IM communication tends to be conducted in real time.
Instant Messaging as the phrase shows is supposed to be instantaneous. This means that communication must happen in real time regardless of where the parties involved are located.
2.Identify the reasons workers find IM useful;
Presence functionality
This allows the person who wants to send a message know whether the intended recipient is online to receive the message which is useful is knowing if information required can be readily available.
Convenience
This type of messaging is convenient as it is readily accessible on our phones and allows for informal communication.
Speed
As it is Instantaneous, the recipient receives the message immediately and can reply immediately as well.
Unobtrusiveness
IM is unobtrusive to others because it can be done quietly on one's mobile device without disturbing others unlike phone calls.
3. B. Keep your IM presence status current.
It is important that people know whether they can reach you or not to enable them get instantaneous information from you. As such, it is important that you let them know your IM status at all times so that they know whether they can reach you or not and avoid wasting time if they cannot.
4. No.
Two things are majorly wrong with this conversation.
Firstly, Gene Kestler is talking to their own self. They should have checked whether Herb was online first before messaging. And if they did and Herb said they were yet they are not responding, Gene should wait till they get a response before sending more messages.
Secondly, Gene seems to be taking a forceful tone with Herb and even if this is made in jest, it can still be misconstrued. Gene should make better use of the cache of emojis present in IM applications to convey emotions better.
Bill Carson owned some land that was mortgaged to Bob Jordan. Carson erected a building on this land in which he installed heavy machinery and boilers. At the time he intended these fixtures to be permanent. The machinery was fastened to the floor, and the boilers were set in masonry. Carson failed in the enterprise, and Jordan foreclosed. Carson sought to remove the machinery as personal property. Decide the case.
Answer:
In this case, when Carson mortgaged the land to Bob Jordan. he mortgaged the land and not the building or furniture.
The building, Plant and Machinery placed by Bill is not included for the mortgaged carried out by Bill and its free from any impediment.
Secondly, Bob cannot have an assert on the Building, Plant and Machinery unless its specifically mentioned in the original mortgaged documents.
Explanation:
Solution
In this scenario when Carson mortgaged the land to Bob Jordan. he mortgaged the land and not the building or furniture.
If Bill Carson has taken the loan without no alternative, what it implies is that if the land is not sufficient to repay the loan taken, Bob cannot have claim on the personal property of Bill.
The building, Plant and Machinery installed by Bill is not part for the mortgaged done by Bill and its free from any burden.
Bob cannot have any claim on the Building, Plant and Machinery unless its specifically stated in the original mortgaged documents.
B Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 5,000 units in its beginning work in process inventory. An additional 68,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 33,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs.
What were the equivalent units for conversion costs in the Assembly Department for the month?A. 86,100B. 42,900C. 55,520D. 57,900
Answer:
Total equivalent units= 60,300
Explanation:
Giving the following information:
Beginning inventory= 5,000 units
An additional 68,500 units were transferred in from the prior department.
There were 33,000 units in the ending work in process inventory of the Assembly Department that were 60% complete concerning conversion costs.
We need to calculate the number of conversion units.
We will use the following structure:
Beginning WIP= 5,000
Transferred-in= 68,500
Total= 73,500
Ending WIP= (33,000)
Complete units= 40,500
The calculation for completion WIP:
ending wip*completion of WIP
33,000*0.6= 19,800
Total equivalent units= 40,500 + 19,800= 60,300
At the beginning of the year, long-term debt of a firm is $308 and total debt is $339. At the end of the year, long-term debt is $269 and total debt is $349. The interest paid is $35. What is the amount of the cash flow to creditors
Answer:
The amount of the cash flow to creditors is $74
Explanation:
Beginning of the year:
Long-term debt = $308
Total debt = $339
At the end of the year:
Long-term debt = $269
Total debt = $349.
Interest = $35
Net new borrowing = Ending Long-term debt - Beginning Long-term debt
= $269 - $308
= ($39)
Cash flow to creditors = Interest paid - Net new borrowing
= $35 - ($39) = $ 74
Valotic Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. The budget for the Consumer Products Division for the month ended January 31 is as follows (in thousands):
1. Customer service salaries $546,840.00
2. Insurance and property taxes 114,660.00
3. Distribution salaries 872,340.00
4. Marketing salaries 1,028,370.00
5. Engineer salaries 836,850.00
6. Warehouse wages 586,110.00
7. Equipment depreciation 183,792.00
8. Total $4,168,962.00
During January, the costs incurred in the Consumer Products Division were as follows:
1. Customer service salaries $602,350.00
2. Insurance and property taxes 110,240.00
3. Distribution salaries 861,200.00
4. Marketing salaries 1,085,230.00
5. Engineer salaries 820,008.00
6. Warehouse wages 562,632.00
7. Equipment depreciation 183,610.00
8. Total $4,225,270.00
Required:
1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January. Enter all amounts as positive numbers.
Valotic Tech Inc.
Budget Performance Report—Director, Consumer Products Division
For the Month Ended January 31, 2016
1 Budget Actual Over Budget Under Budget
2 Customer service salaries
3 Insurance and property taxes
4 Distribution salaries
5 Marketing salaries
6 Engineer salaries
7 Warehouse wages
8 Equipment depreciation
9 Total
2. For which costs might the director be expected to request supplemental reports?
Answer:
Total Over budget = $112370
Total Under Budget= $ 56062
Explanation:
Valotic Tech Inc.
Budget Performance Report—Director, Consumer Products Division
For the Month Ended January 31, 2016
Budget Actual (Over) Under Budget
Customer service salaries $546,840 $602,350 (55,510)
Insurance & property taxes 114,660 110,240 4420
Distribution salaries 872,340 861,200 11,140
Marketing salaries 1,028,370 1,085,230 (56,860)
Engineer salaries 836,850 820,008 16842
Warehouse wages 586,110 562,632 23478
Equipment depreciation 183,792 183,610 182
Total $4,168,962 $4,225,270 (56308)
Total Over budget = $112370
Total Under Budget= $ 56062
Over budget means that the amount is spent more than the amount budgeted.
The Customer service salaries and Marketing salaries are over budgeted and the the director is expected to request supplemental reports of these to analyze where the amount has been overspent.
Under the BOT option for a project:
a. The customer organization transfers employees to the project organization for the duration of the project.
b. The customer organization must accept the work product of the project at the scheduled delivery date.
c. The project organization must operate the work product of the project for a while.
d. The project organization may build the work product to their own specifications instead of the customer.
Answer:
The correct answer is the option C: The project organization must operate the work product of the project for a while
Explanation:
To begin with, the name of "Build-operate-transfer" or BOT is used to refer to a form of project delivery method in where a private entity receives the concession from the public sector with the only purpose of financing, constructing, own and operate a facility stated previously in the contract done by all the parties. Therefore that this type of method is used in large scale infrastructure projects with the purpose of making the process easier.
If a fixed asset, such as a computer, were purchased on January 1 for $2,061 with an estimated life of 5 years and a salvage or residual value of $159, the journal entry for monthly expense under straight-line depreciation is
Answer:
Depreciation Expense 31.70
Accumulated Depreciation 31.70
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
( $2,061 -- $159) / 5 = $380.4
Monthly depreciation = $380.4 / 12 = $31.70
I hope my answer helps you
Williamson Industries has $6 billion in sales and $1.1 billion in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity. What level of sales could Williamson Industries have obtained if it had been operating at full capacity
Answer:
$6,666,666.67
Explanation:
The computation of the level of sales operating at full capacity is as follows
= Sales ÷ Operating capacity percentage
where,
Sales is $6,000,000
And, the operating capacity percentage is 90%
Now placing these values to the above formula
So, the level of sales operating at full capacity is
= $6,000,000 ÷ 90%
= $6,666,666.67
Hence, the level of sales is $6,666,666.67
Consider the following activities that take place in a veterinary clinic. (a.) Cleaning cages. (b.) Heating and air conditioning the clinic. (c.) Sending blood work to a lab. (d.) Dispensing medicine. Which of the following statements is true? A. Sending blood work to a lab is a facility level activity. B. Dispensing medicine is a facility level activity. C. Service entities cannot use ABC for overhead allocation. D. Heating and air conditioning the clinic is a facility level activity. E. Cleaning cages is a facility level activity
Answer: D. Heating and air conditioning the clinic is a facility level activity.
Explanation:
Facility Level Activities affect the entire operations/ facility of a firm and as such cannot be apportioned or traced to the individual products that the company makes. They are thus fixed and do not vary with production level.
From the above options, Heating and Air Conditioning the clinic affects the entire facility and cannot be apportioned to the services that the veterinary clinic offers. As such it is indeed a Facility Level Activity.
g the company purchased an equipment at $55,275. Two years later, the equipment is sold for $24,120. The equipment is classified as five-year property for MACRS. The MACRS annual depreciation rates are 20%, 32%, 19.2%, 11.52%, 11.52%, 5.76%, for Years 1 to 6, respectively.What is the after tax salvage value of this sale at the year 2
Answer:
to determine the after tax salvage value I assumed a 21% corporate tax rate (no tax rate was given in the question):
after tax salvage value = salvage value - [(book value - market value) x tax rate] = -$2,412 - [($24,120 - $26,532) x 21%] = -$2,412 - (-$506.52) = $1,905.48
Explanation:
original purchase cost $55,275
depreciation year 1 = $55,275 x 0.2 = $11,055, book value $44,220
depreciation year 2 = $55,275 x 0.32 = $17,688, book value $26,532
equipment is sold at $24,120 resulting in a net loss = $24,120 - $26,532 = -$2,412
Partial adjusted trial balance for Blue Spruce Corp. at December 31, 2017, includes the following accounts: Retained Earnings $16,300, Dividends $5,800, Service Revenue $36,100, Salaries and Wages Expense $13,800, Insurance Expense $1,790, Rent Expense $4,010, Supplies Expense $1,490, and Depreciation Expense $850. The balance in Retained Earnings is the balance as of January 1.
Required:
Prepare a retained earnings statement for the year assuming net income is $15,787.
Answer:
Retained Earnings at as December 31 is $26,287
Explanation:
Blue Spruce Corp.
Retained Earnings Statement
For the year Ended December 31, 2017
Retained Earnings, January 1 $16,300
Add: Net Income $15,787
$32,087
Less: Dividend $5,800
Retained Earnings, December 31 $26,287
From the sale of your family property, you will receive a down payment of $15,000 today and then yearly payments of $15,000 for the next 14 years. If the discount rate is 7% compute the present value of your future payments
Answer:
$131,182.029
Explanation:
The computation of the present value of the future payment is shown below:
As we know that
Present Value of Future Payments = Payment made × PVAF factor at 7% for 14 years
where,
Payment made is $15,000
And, the PVIFA factor is 8.7455
Now placing these values to the above formula
So, the present value of the future payment is
= $15,000 × 8.7455
= $131,182.029
Refer to the PVIFA table
Assume someone with no income gets $1000 per month in benefits and there is a benefit-reduction rate of 60%. Someone that earns $1200 per month would have how much total income (including wage and benefits)
Answer:
$1200
Explanation:
This is somehow a tricky question as the examiner has puzzled us by mentioning that someone with no income gets the benefit of $1000 and someone who earns $1200 per month it doesn't mean that he would get the bonus too His total income would be the same as he earns.
Question 1 of 2 A single-step income statement: Is not permitted when financial statements are prepared in accordance with generally accepted accounting principles. Reports the same amount of net income as that reported on a multiple-step income statement. Reports revenues and expenses, but not gains and losses. Always includes a gross profit subtotal. Never includes selling expenses.
Answer:
Single-step Income StatementIs not permitted when financial statements are prepared in accordance with generally accepted accounting principles.
Explanation:
A single step income statement is a financial statement format that lists all expenses including cost of good sold as a total. In other words, the single step income statement presentation doesn't break expenses into categories like cost of goods sold, operating, non-operating, and others.
Instead, a single-step income statement presents the revenue, expenses and the profit or loss generated by a business, but it reports on this information by using just one equation to calculate profits. The equation used in a single-step income statement is: Net Income = (Revenues + Gains) – (Expenses + Losses) .
One important criticism of the single step income statement is that gross profit and income from operations are not readily available for analysis. This is why it not permitted under GAAP.
A single-step income statement gives a simple accounting of a business's net income, whereas a multi-step income statement follows a three-step process to calculate net income, separating operational from non-operational revenues and expenses.
