Sales Budget: Sales are expected to increase at the rate of 20% per month. Given October Sales = $340,000, sales for November and December can be calculated as follows; November Sales = October Sales + 20% of October Sales = $408,000 December Sales = November Sales + 20% of November Sales = $489,600.
follows: ParticularsOctoberNovemberDecemberTotalSales$340,000$408,000$489,600$1,237,600 Cash Sales 40%$136,000 $163,200 $195,840 $495,040 Credit Sales 60%$204,000$244,800$293,760$742,560 Total Sales $340,000 $408,000 $489,600 $1,237,600Schedule of Cash Receipts: The company expects to collect 100% of the accounts receivable generated by credit sales in the month following the sale. Therefore, Schedule of Cash Receipts for the three months is as follows;ParticularsOctoberNovemberDecemberTotalCash Sales $136,000$163,200 $195,840$495,040 Cash collections from credit sales in October40% of October Credit Sales = $81,600$81,600Cash collections from credit sales in November60% of November Credit Sales = $146,880Accounts Receivable generated in December = $293,760Cash collections from December Credit Sales in January = $293,760Total Cash Receipts$217,600$310,080$489,600$1,017,280.
Inventory Purchases Budget: The company desires to maintain a minimum ending inventory equal to 20 percent of the next month’s cost of goods sold. However, the ending inventory of December is expected to be $12,900.Cost of goods sold is 70% of sales. Therefore, Cost of Goods Sold for the three months is as follows; Particulars October November December Total Sales $340,000$408,000$489,600$1,237,600Cost of Goods Sold70% of Sales $238,000$ 285,600$ 342,720$ 866,320 Add: Desired Ending Inventory20% of the next month's COGS = 20% of $285,600 (COGS for November) = $57,12012,90057,12057,120126,140Total Requirements for Inventory$250,920$342,720$399,840$993,480Less: Beginning Inventory- - $12,900$12,900Inventory Purchases$250,920$342,720$386,940$980,580Cash Payments Budget for Inventory Purchases:The company pays 70% of accounts payable in the month of purchase and the remaining 30% in the following month. Therefore, Cash Payments Budget for the three months is as follows;
ParticularsOctoberNovemberDecemberTotalInventory Purchases$250,920$342,720$386,940$980,580Cash payments in October30% of September Purchases = 30% of $386,940 = $116,082Cash payments in November70% of October Purchases = 70% of $250,920 = $175,64430% of November Purchases = 30% of $342,720 = $102,816Cash payments in December70% of November Purchases = 70% of $342,720 = $239,90430% of December Purchases = 30% of $386,940 = $116,082Total Cash Payments$116,082$278,460$356,802$751,344 This question involves the preparation of sales budget, schedule of cash receipts, inventory purchases budget, and cash payments budget for inventory purchases. The sales are estimated to be $340,000, of which 40% will be cash and 60% will be credit. The company expects sales to increase at the rate of 20% per month. The company expects to collect 100% of the accounts receivable generated by credit sales in the month following the sale. The cost of goods sold is 70% of sales. The company desires to maintain a minimum ending inventory equal to 20% of the next month’s cost of goods sold. The ending inventory of December is expected to be $12,900. Assume that all purchases are made on account. The company pays 70% of accounts payable in the month of purchase and the remaining 30% in the following month. The sales budget for three months is $1,237,600. The cash sales for three months is $495,040, and the credit sales for three months is $742,560. The schedule of cash receipts for three months is $1,017,280. The inventory purchases budget for three months is $980,580. The cash payments budget for inventory purchases for three months is $751,344.
Thus, the preparation of the sales budget, schedule of cash receipts, inventory purchases budget, and cash payments budget for inventory purchases can be done based on the estimated sales, cost of goods sold, and ending inventory for the period under consideration.
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Two parties agree to a currency forward contract for €1 million at $1.15 per euro. At contract expiration, the euros trade at $1.17 per euro. In a cash-settlement forward contract, the:
A. short pays the long $1.15 million.
B. short pays the long $0.02 million.
C. long pays the short $0.02 million.
D. long pays the short $1.17 million
In a cash-settlement forward contract, the settlement amount is determined based on the difference between the contracted exchange rate and the spot exchange rate at contract expiration. The correct answer is option B. The short pays the long $0.02 million in a cash-settlement forward contract.
In this case, the contracted exchange rate is $1.15 per euro, and at contract expiration, the spot exchange rate is $1.17 per euro. Since the spot exchange rate is higher than the contracted exchange rate, the euros have appreciated in value relative to the dollar.
For the short party, who agreed to sell euros at $1.15 per euro, the appreciation of the euro means they will receive less in dollars than they would have received based on the contracted exchange rate.
The calculation for the settlement amount is as follows:
Settlement amount = (Spot exchange rate - Contracted exchange rate) * Contract amount
Settlement amount = ($1.17 - $1.15) * €1 million = $0.02 million
Therefore, the correct answer is option B. The short pays the long $0.02 million in a cash-settlement forward contract.
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Question Content Area Bryce Co. sales are $862,000, variable
costs are $463,500, and operating income is $298,000. What is the
contribution margin ratio? a.59.0% b.46.2% c.53.8% d.41.9%
The contribution margin ratio for Bryce Co. is 46.2%. So, the correct option is (b) 46.2%.
Contribution margin ratio is the percentage of the sales price that exceeds the total variable costs. The contribution margin ratio is useful for businesses in that it helps to estimate how much profit will be made based on the number of units sold.Bryce Co. has sales of $862,000, variable costs of $463,500, and operating income of $298,000. So, we can calculate the contribution margin by subtracting the total variable costs from the sales revenue. This gives us:
Contribution margin = Sales revenue - Variable costs Contribution margin = $862,000 - $463,500
Contribution margin = $398,500
Now, we can calculate the contribution margin ratio by dividing the contribution margin by sales revenue. This gives us:
Contribution margin ratio = (Contribution margin / Sales revenue) x 100 Contribution margin ratio = ($398,500 / $862,000) x 100 Contribution margin ratio = 46.2%
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Company A purchased 8,500 shares of Company B common stock for $50 per share on January 1,2021. Company B reported net income of $130,000 for 2021 and paid dividends of $30,000 during the year. As of December 31,2021 , the market value of Company B common stock was $52 per share. Assuming that the shares owned by Company A represent 35 percent of the total outstanding stock of Company B, Company A should report the long-term investment on December 31,2021 , at a carrying value of: a. $470,500. b. $460,000. c. $442,000. d. None of the above
d. None of the above . Company a should report the long-term investment on december 31, 2021, at a carrying value of $425,000 which is not listed among the provided answer choices.
to calculate the carrying value of the long-term investment on december 31, 2021, we need to consider the purchase price, dividends received, and the change in market value of the stock.
given:
- company a purchased 8,500 shares of company b common stock for $50 per share.
- company b reported net income of $130,000 for 2021.
- company b paid dividends of $30,000 during the year.
- the market value of company b common stock on december 31, 2021, was $52 per share.
- the shares owned by company a represent 15 percent of the total outstanding stock of company b.
first, let's calculate the total purchase price of the shares:
purchase price = 8,500 shares * $50/share = $425,000
next, let's calculate the dividends received by company a:
dividends received = 15% * $30,000 = $4,500
to calculate the change in market value, we need to find the difference between the market value on december 31, 2021, and the purchase price:
change in market value = (8,500 shares * $52/share) - $425,000 = $17,000
now, let's determine the carrying value of the long-term investment on december 31, 2021:
carrying value = purchase price - dividends received + change in market value
carrying value = $425,000 + $0 - $0 = $425,000 thus, the correct answer is "none of the above."
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Which organization has standard setting authority over governmentally related not-for-profit organizations, such as hospitals colleges and universities?
A) FASB.
B) GASB.
C) AICPA.
D) SEC.
The organization with standard-setting authority over governmentally related not-for-profit organizations, such as hospitals, colleges, and universities, is the b) Governmental Accounting Standards Board (GASB).
The Governmental Accounting Standards Board (GASB) is the organization responsible for establishing accounting and financial reporting standards for government entities in the United States. This includes governmentally related not-for-profit organizations, such as hospitals, colleges, and universities.
The GASB was created in 1984 and operates under the Financial Accounting Foundation (FAF). Its mission is to improve the usefulness of financial reporting for users of government financial statements. The GASB sets standards known as Generally Accepted Accounting Principles (GAAP) for state and local governments, as well as other governmental entities.
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Which of the following needs to be performed as a part of the Closing process group?
Obtaining client acceptance
Managing stakeholder expectations
Team reporting
Status reporting
As a part of the Closing process group, obtaining client acceptance, managing stakeholder expectations, team reporting, and status reporting are key activities that ensure the project is successfully closed.
As a part of the Closing process group, the following needs to be performed:
1. Obtaining client acceptance: This involves confirming that the client is satisfied with the final deliverables and formally accepting the project's outcome. It ensures that the client's expectations have been met and that the project can be considered complete.
2. Managing stakeholder expectations: This step focuses on addressing any remaining concerns or issues that stakeholders may have. By engaging with stakeholders and ensuring their expectations are managed and met, it helps to create a smooth transition from the project to its operational phase.
3. Team reporting: This involves providing a final report to summarize the project's activities, outcomes, and any lessons learned. Team reporting allows for knowledge sharing, evaluation of performance, and documentation of the project's achievements and challenges.
4. Status reporting: During the Closing process group, it is essential to provide a final status report to stakeholders and key project sponsors. This report highlights the project's success, budget and schedule performance, and any outstanding tasks or risks that need attention.
In summary, as a part of the Closing process group, obtaining client acceptance, managing stakeholder expectations, team reporting, and status reporting are key activities that ensure the project is successfully closed.
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S eBook Problem Walk-Through Investors require an 8% rate of return on Mather Company's stock (1.e. 8%). a. What is its value if the previous dividend was D $3.50 and investors expect dividends to grow at a constant aneual rate of (13-2%, (2) 0% ( 2%, ar (4) 617 Do not round intermediate calculations, Round your answers to the nearest cent (1) $ (2) $ (3) $ (4) $ b. Using data from part a, what would the Gordon (constant growth) model value be the required rate of retum was 8% and the expected growth rate was (1) answers to the nearest cent. If the value is undefined, enter N/A. (2) S Are these reasonable results? 1. These results show that the formula does not make sense of the required rate of return is equal to or less than the expected growth rate. 11. These results show that the formula does not make sense of the required rate of return is equal to or greater than the expected growth rate 111. These results show that the formula makes sense if the required rate of return is equal to or less than the expected growth rate. IV. These results show that the formula makes sense if the required rate of return is equal to or greater than the expected growth rate V. These results show that the formula does not make sense if the expected growth rate is equal to or less than the required rate of return (2) 127 Round your b. Using data from part a, what would the Gordon (constant growth) model value be if the required rate of return was 8% and the expected growth rate was (1) or (2) 127 Round your answers to the nearest cent. If the value is undefined, enter N/A. (1) $ (2) $ Are these reasonable results? 1. These results show that the formula does not make sense if the required rate of return is equal to or less than the expected growth rate II. These results show that the formula does not make sense if the required rate of return is equal to or greater than the expected growth rate. III. These results show that the formula makes sense if the required rate of return is equal to or less than the expected growth rate. IV. These results show that the formula makes sense if the required rate of return is equal to or greater than the expected growth rate. V. These results show that the formula does not make sense if the expected growth rate is equal to or less than the required rate of return. -Select- V c. Is it reasonable to think that a constant growth stock could have gr? 1. It is not reasonable for a firm to grow indefinitely at a rate higher than its required return. 11. It is reasonable for a firm to grow indefinitely at a rate higher than its required return. III. It is not reasonable for a firm to grow even for a short period of time at a rate higher than its required return. IV. It is not reasonable for a firm to grow indefinitely at a rate lower than its required return. V. It is not reasonable for a firm to grow indefinitely at a rate equal to its required return. Select
If the previous dividend was $3.50 and investors expect dividends to grow at a constant annual rate of: 12.2%, the stock value will be the stock value will be the stock value will be the stock value.
The Gordon (constant growth) model value would be: when the expected growth rate is 12.2%. ii) $43.75 when the expected growth rate is 0%.Yes, these results are reasonable. The formula does not make sense when the expected rate of return is less than the growth rate, and it makes sense when the expected rate of return is greater than the growth rate.
But if the expected growth rate is equal to or less than the required rate of return, the formula does not make sense. It is not reasonable for a firm to grow indefinitely at a rate higher than its required return. Option II is incorrect because growing indefinitely at a rate higher than its required return is not realistic as the firm's growth cannot continue.
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You are the owner of a start up company in Bengaluru \& have a total of 5 employees. Your budget is quite limited in nature \& hence you would not like to invest a lot in IT hardware Infrastructure that includes servers. Suggest an alternative solution to substitute IT hardware solution where your expenses can be minimized. Enlist 5 features \& 5 benefits of this solution. (10 Marks)
The alternative solution to substitute IT hardware solution is cloud computing. The five features of cloud computing are on-demand self-service, broad network access, resource pooling, rapid elasticity, and measured service.
Cloud computing is the alternative solution to substitute IT hardware solutions. It is a model of shared computing resources that can be accessed through the Internet. With cloud computing, you don't have to invest a lot of money in IT hardware infrastructure that includes servers. Instead, you can subscribe to cloud services that offer the same features and benefits. The five features of cloud computing are on-demand self-service, broad network access, resource pooling, rapid elasticity, and measured service.
On-demand self-service means that you can request and use cloud services without any interaction with the service provider. Broad network access means that you can access cloud services from anywhere in the world using any device that has an internet connection. Resource pooling means that cloud resources are shared among multiple users to achieve economies of scale. Rapid elasticity means that cloud resources can be scaled up or down quickly based on demand. Measured service means that cloud services are monitored, controlled, and billed based on usage.
The five benefits of cloud computing are cost-effectiveness, scalability, reliability, security, and flexibility. Cost-effectiveness means that you can pay only for the resources that you use without any upfront investment. Scalability means that you can quickly scale up or down your cloud resources based on demand. Reliability means that cloud services are highly available and can be accessed from anywhere in the world. Security means that cloud services are highly secure and protected against cyber-attacks. Flexibility means that you can choose from a wide range of cloud services to meet your specific business needs.
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2. You are given the following information about the short-term nominal interest rate and the rate of inflation over a period of 8 years. In which year was the real rate of interest at its maximum and
This analysis does not consider other factors that may influence interest rates, such as monetary policy, economic conditions, or market forces, which can impact the real rate of interest.
To determine the year in which the real rate of interest was at its maximum, we need to calculate the real interest rate for each year and identify the highest value. The real interest rate is calculated by subtracting the inflation rate from the nominal interest rate.
Let's assume the given data is as follows:
Year: 2016 2017 2018 2019 2020 2021 2022 2023
Nominal: 3% 4% 2% 5% 6% 3% 4% 5%
Inflation: 2% 3% 1% 2% 3% 1% 2% 3%
To calculate the real interest rate for each year, we subtract the inflation rate from the nominal interest rate:
Real Rate: 1% 1% 1% 3% 3% 2% 2% 2%
From the data above, we can see that the real rate of interest is highest in 2019, where it reaches 3%. Therefore, the year when the real rate of interest was at its maximum is 2019.
It's important to note that this calculation assumes that the nominal interest rate and inflation rates are annual rates and are compounded annually. Additionally, this analysis does not consider other factors that may influence interest rates, such as monetary policy, economic conditions, or market forces, which can impact the real rate of interest.
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On January 1,X5, Company A acquired 80% equity of Company B for $90,000 and had control over Company B. Company B's equity on that date includes common share cap $60,000 and retained earnings of $40,000, and the carrying amounts of identifiable assets and liabilities other than equipment are the equalion date. The above equipment can still be used for ten years from the date of acquisition, and the depreciation shall be provided on investment in Company B. In X5, Company B incurred a net loss of $10,000 and did not issue any dividends. Company B still has an account payable to Company A of $18,000 on 31 December X5. Company A's own net profit (excluding investment income and dividend income) in X5 was $150,000. What is the amount of net profit from controlling interests on the consolidated consolidated statement of profit and loss for the year X 5 of Company A and its subsidiaries? (10\%)
The net profit from controlling interests on the consolidated statement of profit and loss for the year X5 of Company A and its subsidiaries can be calculated using the following steps.
What are the steps?1. Calculate the net profit of Company B:
- Start with Company B's equity on January 1, X5, which includes common share capital of $60,000 and retained earnings of $40,000.
- Subtract the net loss incurred by Company B in X5, which is $10,000.
- The resulting net profit of Company B is $90,000 ($60,000 + $40,000 - $10,000).
2. Calculate the depreciation on the investment in Company B:
- The equipment acquired in the acquisition can still be used for ten years from the date of acquisition.
- Calculate the annual depreciation expense by dividing the acquisition cost ($90,000) by the remaining useful life (10 years).
- The annual depreciation expense is $9,000 ($90,000 / 10 years).
3. Calculate the net profit from controlling interests:
- Start with Company A's own net profit in X5, which is $150,000.
- Add the net profit of Company B ($90,000) and subtract the depreciation on the investment in Company B ($9,000).
- Subtract the account payable from Company B to Company A ($18,000).
- The net profit from controlling interests on the consolidated statement of profit and loss for the year X5 of Company A and its subsidiaries is $213,000 ($150,000 + $90,000 - $9,000 - $18,000).
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what will be the value in 20 years of $2,500 invested at the end of each year for the next 20 years? excel
The value in 20 years of $2,500 invested at the end of each year for the next 20 years is $89,982.14.
To calculate the value of an investment, including the compounding interest rate, we can use the Excel function "FV". Therefore, to determine the value in 20 years of $2,500 invested at the end of each year for the next 20 years, we will use the "FV" function in Excel.
Here is how:
Step 1: Open an Excel worksheet.
Step 2: Enter $2,500 as the present value of the investment.
Step 3: In the next cell, enter the annual interest rate that the investment earns (we can assume a rate of 5% per year, compounded annually).
Step 4: In the next cell, enter the number of years of the investment (20).
Step 5: In the next cell, enter -2,500, indicating the payment made at the end of each year. The minus sign before 2,500 is because we are making a payment into the investment account.
Step 6: Now use the FV function to determine the future value of the investment. In the cell that you want to display the future value, type
=FV(5%,20,-2500,,0)
and press Enter. Here's how the formula works:
FV: This is the name of the Excel function.5%: This is the annual interest rate.20:
This is the number of years of the investment.-2500:
This is the annual payment made at the end of each year.
The minus sign indicates that the payment is made into the investment account.0:This indicates that the investment is compounded annually (this is the default).
Step 7: You will see that the value of the investment at the end of 20 years is $89,982.14, rounded to two decimal places.
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Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for disposable ballpoint pens?
student submitted image, transcription available below
a. A decrease in the price of disposable ballpoint pens.
b. An increase in the price of fountain pens.
c. An increase in the price of ink.
d. An improvement in technology that allows firms to use less labor in the production of disposable ballpoint pens.
The correct answer is "d. An improvement in technology that allows firms to use less labor in the production of disposable ballpoint pens".
The supply curve shifts due to the changes in the factors affecting the supply of a commodity. The shift of the supply curve happens to the right or left of the original supply curve. The shift to the right means an increase in supply and the shift to the left means a decrease in supply. The factors affecting the supply of disposable ballpoint pens are:
a) A decrease in the price of disposable ballpoint pens will lead to a decrease in the supply of ballpoint pens because the firms will produce fewer pens if the price is low.
b) An increase in the price of fountain pens will lead to an increase in the supply of disposable ballpoint pens because the customers will prefer to buy disposable ballpoint pens instead of costly fountain pens. This will increase the demand for disposable ballpoint pens and lead to an increase in supply.
c) An increase in the price of ink will lead to a decrease in the supply of disposable ballpoint pens because the firms' production cost will increase, and the profit margin will reduce. The firms will produce fewer pens in this situation.
d) An improvement in technology that allows firms to use less labor in the production of disposable ballpoint pens will increase the supply of disposable ballpoint pens. The firms will be able to produce more pens in less time and at less cost. This will increase the profit margin, and the firms will be able to supply more pens.
Hence, option (d) is the correct answer.
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Torch My Taco want to raise $600,000,000 in an equity offering to purchase Taco Smell. Torch Me will be charged a 4.75% Flotation Cost by the investment bankers and the current stock price is $49.24 per share. How many shares must Torch My Taco sell in order to meet the target capital raise? Round to the nearest 100 shares.
Torch My Taco must sell 12,180,000 shares in order to meet the target capital raise.
Given,
Torch My Taco wants to raise $600,000,000 in an equity offering
Flotation Cost= 4.75%
Stock price= $49.24
The formula for the number of shares is:
Number of shares= Amount raised / (Stock price × (1 − Flotation cost %))
Here, the amount raised is $600,000,000 and the stock price is $49.24 per share. The flotation cost is 4.75%.Number of shares= 600,000,000 / (49.24 × (1 − 4.75%))= 600,000,000 / (49.24 × 0.9525)= 12,180,000
The Torch My Taco must sell 12,180,000 shares in order to meet the target capital raise. We rounded the answer to the nearest 100 shares.
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You are a researcher with a keen interest in the dynamics of rural entrepreneurship and rural economic development. Informed by ample examples in the literature, you believe that rural communities can be revitalised and transformed into vibrant centres of entrepreneurial activities. In this regard, you are proposing an exploratory study with the aim of mapping out the main challenges and the key success factors of rural entrepreneurship in selected predominantly rural municipalities in the Limpopo province. Your choice of Limpopo province as the site of the proposed study was informed by a recent study by Malatji (2020) in which he identified the Limpopo province as the most predominantly rural province in South Africa in 2018, with roughly 82% of the population living in rural areas, and with the highest poverty rate in the country. According to Malatji (2020), a local municipality is classified as predominantly rural are if the share of rural population in the local municipal area is above 50%, significantly rural area, if the share of the rural population in the local area represents 15% and 49% of the local area's total population, and predominantly urban area if the share of rural population in the local area is below 15%. Out of the 25 local municipalities across Limpopo, 19 are classified as predominantly rural areas, five as significantly rural areas and one as predominantly urban area. You intend to gather data from entrepreneurs across five predominantly rural municipalities in the Limpopo province via semi-structured interviews. Currently, you have managed to recruit only two entrepreneurs for the study, and you intend to continue with the recruitment through referrals until data saturation is reached. Please outline how you would go about conducting the proposed study with reference to the following:
1.1 Formulate a suitable title for the proposed study. (5 marks)
1.2 Specify the aim and significance of the proposed study. (4 marks)
1.3 Formulate THREE (3) research objectives and THREE (3) research questions that the proposed study will attempt to answer. (6 marks) Specify and briefly discuss an appropriate research design for the proposed study, and rationalise the choice of this particular design.
1.4 (5 marks)
1.5 Based on the design you have chosen above, discuss the research methodology you would follow with regard to:
1.5.1 Sampling Methodology:
1.5.1.1 Identify the target population for the proposed study. (2 marks)
1.5.1.2 State whether you would use a probability or non-probability sampling strategy. (2 marks)
1.5.1.3 Substantiate the expression: "… you intend to continue with the recruitment through referrals until data saturation is reached." (6 marks)
1.5.2 Method of Data Collection:
1.5.2.1. What data collection instrument(s) and/or method(s) would you use to collect your data? Provide a rationale for, and justify the appropriateness of, the proposed data collection method(s). (5 marks)
1.5.3 Method of Data Analysis:
1.5.3.1 Briefly discuss the method(s) of data analysis that you would use in the proposed study. (5 marks)
1.1 Title: "Mapping the Challenges and Success Factors of Rural Entrepreneurship in Limpopo Province: A Study of Predominantly Rural Municipalities"
1.2 Aim and Significance: The aim of this study is to investigate the main challenges and key success factors of rural entrepreneurship in selected predominantly rural municipalities in Limpopo Province. The significance of this study lies in its potential to inform policies and interventions aimed at revitalizing rural communities and promoting rural economic development. By understanding the unique challenges and success factors of rural entrepreneurship, stakeholders can create targeted strategies to support and empower rural entrepreneurs, leading to the transformation of rural areas into vibrant centers of entrepreneurial activities.
1.3 Research Objectives:
Objective 1: Identify the main challenges faced by rural entrepreneurs in predominantly rural municipalities in Limpopo Province.
Objective 2: Determine the key success factors that contribute to the growth and sustainability of rural entrepreneurship in the selected municipalities.
Objective 3: Explore the strategies and support mechanisms that can be implemented to overcome challenges and enhance the success of rural entrepreneurship in these areas.
Research Questions:
1. What are the main challenges faced by rural entrepreneurs in predominantly rural municipalities in Limpopo Province?
2. What are the key success factors that contribute to the growth and sustainability of rural entrepreneurship in the selected municipalities?
3. What strategies and support mechanisms can be implemented to overcome challenges and enhance the success of rural entrepreneurship in these areas?
1.4 Research Design: The proposed study will utilize an exploratory research design. This design is appropriate as it allows for an in-depth investigation of the challenges and success factors of rural entrepreneurship in predominantly rural municipalities in Limpopo Province. The exploratory nature of the study will provide valuable insights and generate hypotheses for future research.
1.5 Research Methodology:
1.5.1 Sampling Methodology:
1.5.1.1 The target population for the proposed study would be entrepreneurs operating in the five selected predominantly rural municipalities in Limpopo Province.
1.5.1.2 Non-probability sampling strategy would be used as it is often more feasible and practical in exploratory studies. It allows for the selection of participants based on their relevance and availability for the study.
1.5.1.3 The expression "… you intend to continue with the recruitment through referrals until data saturation is reached" means that the researcher will initially recruit participants through existing contacts and networks. Once the initial participants are interviewed, the researcher will ask them to refer other entrepreneurs who may be suitable for the study. This process will continue until no new or relevant information is obtained from additional interviews, indicating data saturation.
1.5.2 Method of Data Collection:
1.5.2.1 The data collection instrument for this study will be semi-structured interviews. These interviews will allow the researcher to gather rich and detailed information from the entrepreneurs, exploring their experiences, challenges, and success factors in depth.
1.5.2.2 The semi-structured interviews will be conducted with the selected entrepreneurs from the five predominantly rural municipalities in Limpopo Province. The rationale for using this method is that it allows for flexibility in probing and follow-up questions, ensuring a comprehensive understanding of the subject matter.
1.5.3 Method of Data Analysis:
1.5.3.1 The method of data analysis for this study will involve thematic analysis. Thematic analysis involves identifying, analyzing, and reporting patterns or themes within the collected data. The researcher will carefully review and code the interview transcripts, identifying key themes and patterns related to the challenges, success factors, and strategies of rural entrepreneurship in the selected municipalities. This analysis will provide insights and evidence to address the research objectives and answer the research questions.
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________ seldom offend people in international markets, but ________ can be highly offensive.
Cultural symbols and practices seldom offend people in international markets, but there are instances where cultural symbols, especially when misappropriated or used insensitively, can be highly offensive.
Cultural symbols hold deep significance and meaning within specific communities, and their misuse or misrepresentation can be seen as disrespectful and offensive. It is crucial to approach and engage with cultural symbols in a respectful and informed manner to avoid causing offense or perpetuating harmful stereotypes.
On the other hand, certain forms of communication or behavior can be highly offensive in international markets. This includes the use of racial, ethnic, or religious slurs, derogatory language, or gestures that demean or discriminate against individuals or groups. Such actions are not only disrespectful but also contribute to a hostile and exclusionary environment.
Navigating international markets requires cultural sensitivity and awareness of the diverse backgrounds and perspectives present. It is important to understand and respect the cultural norms, values, and sensitivities of the target market. Adhering to principles of inclusivity, equality, and respect is vital in establishing positive and fruitful relationships with international partners, customers, and stakeholders.
To ensure cultural sensitivity, it is beneficial to engage in cross-cultural training, research, and consultation with local experts when entering new international markets. This allows for a deeper understanding of the local culture and enables the development of appropriate marketing strategies, products, and services that resonate positively with the target audience.
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The Snyder Trust reports 2020 gross rent income of $1,800,000, expenses attributable to the rents of $700,000, tax-exempt interest from state bonds of $20,000 and $30,000 of dividend income. Under the
Given:The Snyder Trust reports a 2020 gross rental income of $1,800,000, expenses attributable to the rents of $700,000, tax-exempt interest from state bonds of $20,000 and $30,000 of dividend income.Calculation of the tax-exempt interest from state bonds:
(Given) Tax-exempt interest from state bonds = $20,000Calculation of the dividend income:(Given) Dividend income = $30,000Calculation of the Net Investment Income:(Net investment income is the sum of all the investment income less the investment expenses)Net Investment Income= [(Rent Income - Rent expenses) + (Tax-exempt interest from state bonds) + (Dividend Income)] - Investment expenses= [(1800000 - 700000) + (20000) + (30000)] - Investment expenses= (900000 + 20000 + 30000) - Investment expenses= $950000 - Investment expenses
Therefore, the Net Investment Income will be $950,000 minus the Investment expenses.
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Western Company determines the cost of its inventory is $410,000 and net realizable value is $400,000. Western Company should (Select all that apply.)
a. debit cost of goods sold $10,000
b. debit inventory $10,000
c. not record a journal entry
d.credit cost of goods sold $10,000
e. credit inventory $10,000
Western Company should record a journal entry to debit cost of goods sold $10,000 and credit inventory $10,000 to write down the inventory to its net realizable value of $400,000.
The lower of cost or market rule states that inventory should be valued at the lower of its cost or its net realizable value. In this case, the net realizable value of the inventory is $400,000, which is lower than its cost of $410,000. Therefore, Western Company should write down the inventory to $400,000.
The journal entry to record the write-down would be:
Dr. Cost of goods sold 10,000
Cr. Inventory 10,000
This entry would decrease the value of the inventory on the balance sheet and increase the cost of goods sold on the income statement.
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If the population standard deviation is equal to 7. 5 and the standard error is approximately 1. 33, what is the sample size (rounded to the nearest whole number)?
The sample size can be determined by dividing the population standard deviation by the standard error and squaring the result. In this case, dividing 7.5 by 1.33 gives approximately 5.64. Squaring this value gives approximately 31.81. Therefore, the sample size is approximately 32.
The standard error is a measure of the variability of the sample mean, and it is calculated by dividing the population standard deviation by the square root of the sample size. In this case, we are given the standard error as approximately 1.33.
To find the sample size, we can rearrange the formula for the standard error:
Standard error = Population standard deviation / √(sample size)
We are given the population standard deviation as 7.5. Rearranging the formula and substituting the given values, we have:
1.33 = 7.5 / √(sample size)
To isolate the sample size, we can square both sides of the equation:
(1.33)^2 = (7.5 / √(sample size))^2
Simplifying further:
1.77 = (7.5^2) / sample size
Cross-multiplying:
1.77 * sample size = 7.5^2
Dividing both sides by 1.77:
sample size ≈ 7.5^2 / 1.77
Calculating the value:
sample size ≈ 31.81
Rounding this value to the nearest whole number, the sample size is approximately 32.
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What two tasks need to be performed as a part of the Initiating process project group phase?
Hold the project kickoff meeting and perform stakeholder identification
Develop the project charter and project kickoff meeting
Develop the project charter and stakeholder identification
Create the project plan and develop the project charter
He two tasks that need to be performed as part of the Initiating process project group phase are developing the project charter and performing stakeholder identification.
The two tasks that need to be performed as part of the Initiating process project group phase are:
1. Develop the project charter: The project charter is a formal document that authorizes the project and provides a high-level overview of its objectives, scope, and stakeholders. It serves as a reference point for decision-making throughout the project. To develop the project charter, the project manager, with input from key stakeholders, identifies the project's goals, constraints, risks, and success criteria. This document outlines the project's purpose, defines its deliverables, and establishes the project manager's authority.
2. Perform stakeholder identification: Stakeholder identification involves identifying and documenting all individuals or groups who may have an interest in or be affected by the project. Stakeholders can include project sponsors, customers, end-users, team members, suppliers, regulatory bodies, and others. By identifying stakeholders, the project manager can understand their needs, expectations, and influence on the project. This information is crucial for effective communication, managing expectations, and ensuring stakeholder satisfaction.
To summarize, the two tasks that need to be performed as part of the Initiating process project group phase are developing the project charter and performing stakeholder identification. These tasks lay the foundation for the project by defining its objectives, scope, and key stakeholders.
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D Question 38 The number of banks in the US today is less than one third of the number that existed in the 1980s, and it continues to shrink. True 2 pts O False The entity in the United States that clears the largest number of electronic payments, such as debit card charges, is the: O Interstate Bank Compact FDIC O Fed Bank of America D Question 44 Within the Fed, decisions on what to do about the money supply are made by the: FGMC FDIC FMDC FOMC
The statement is False. The number of banks in the US has actually been increasing in recent years, although the overall trend since the 1980s has been a decline in the number of banks.
While there has been consolidation in the banking industry, resulting in larger banks and fewer small community banks, it is not accurate to say that the number of banks today is less than one third of what existed in the 1980s. The entity in the United States that clears the largest number of electronic payments, such as debit card charges, is the:
The correct answer is "D) Federal Reserve (commonly referred to as 'the Fed')." The Federal Reserve operates various systems, such as the Automated Clearing House (ACH) and the Fedwire Funds Service, which handle the clearing and settlement of electronic payments, including debit card charges.
The correct answer is "FOMC (Federal Open Market Committee)." The FOMC is responsible for making decisions related to monetary policy in the United States, including setting the target federal funds rate and determining the appropriate level of the money supply. The FOMC consists of members from the Federal Reserve's Board of Governors and regional Federal Reserve Bank presidents.
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Xavier Medical Supply is a retailer of home medical equipment. Last year, Xavier's sales revenues totaled $6,800,000. Total expenses were $2,600,000. Of this amount, approximately $1,088,000 were variable, while the remainder were fixed. Since Xavier's offers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units.
Read the requirements.
Requirement 1. What is Xavier's current operating income?
Begin by identifying the formula to compute the operating income.
Xavier's current operating income is $5,288,000 - COGS
To find the operating income of Xavier, we need to use the formula of operating income:
Operating Income = Gross Profit - Operating Expenses = Total Revenue - Cost of Goods Sold (COGS) - Operating Expenses where Gross Profit = Total Revenue - Cost of Goods Sold (COGS) And Operating Expenses = Fixed Expenses + Variable Expenses
Total Revenue = $6,800,000, Variable expenses = $1,088,000,
Fixed expenses = Total expenses - Variable expenses= $2,600,000 - $1,088,000= $1,512,000
Substituting the given values in the formula of operating income,
Operating Income = Total Revenue - Cost of Goods Sold (COGS) - Operating Expenses
= $6,800,000 - COGS - ($1,512,000) = $5,288,000 - COGS
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you are thinking about setting up a fish farm in your pond. you can rig it up to farm tilapia or pollock, but not both. you have the following information on the two possibilities: type of fish farm initial cost annual cash flow tilapia $1,000 $200 pollock $1,800 $350 each option will yield the annual cash flows for 10 years and then will be finished with no additional cost or revenue. if the required return is 8%, what is the pi of the incremental project that you would use to decide between these two types of fish farms?
To determine the profitability index (PI) of the incremental project, we need to compare the present value of the cash inflows to the initial cost of each option. The PI is calculated as follows:
PI = Present Value of Cash Inflows / Initial Cost
Given data:
Tilapia fish farm:
Initial Cost = $1,000
Annual Cash Flow = $200
Pollock fish farm:
Initial Cost = $1,800
Annual Cash Flow = $350
We will calculate the present value (PV) of the cash inflows for each option over a 10-year period, considering an 8% required return.
Using the formula for the present value of an annuity:
PV = Annual Cash Flow * (1 - (1 + r)^-n) / r
Where r is the discount rate (8% or 0.08) and n is the number of years (10).
Tilapia fish farm:
PV = $200 * (1 - (1 + 0.08)^-10) / 0.08
≈ $1,642.50
Pollock fish farm:
PV = $350 * (1 - (1 + 0.08)^-10) / 0.08
≈ $3,045.71
Now, we can calculate the PI for the incremental project:
PI = PV of Cash Inflows / Initial Cost
For the incremental project, the cash inflows are the difference between the Pollock fish farm and the Tilapia fish farm:
Incremental Cash Flow = Cash Flow of Pollock - Cash Flow of Tilapia
= $3,045.71 - $1,642.50
≈ $1,403.21
PI = Incremental Cash Flow / Initial Cost
= $1,403.21 / ($1,800 - $1,000)
= $1,403.21 / $800
≈ 1.754
Therefore, the profitability index (PI) of the incremental project is approximately 1.754.
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Adonis Creed, a U.S. citizen, travels to Moscow, Russia to fight Victor Drago in a boxing match. Adonis Creed's earnings from this boxing match a. would count as part of Russian GNP and U.S. GDP b. would count as part of U.S. GNP and Russian GDP C. would be double-counted, raising both U.S. GDP and Russian GDP d. would count as part of U.S. GDP, but would have no effect on Russia's GNP or GDP
Adonis Creed's earnings from the boxing match in Moscow, Russia would count as part of U.S. GDP, but would have no effect on Russia's GNP or GDP.
The Gross Domestic Product (GDP) measures the total value of goods and services produced within a country's borders, while the Gross National Product (GNP) measures the total value of goods and services produced by a country's residents, regardless of their location.
In this scenario, Adonis Creed, being a U.S. citizen, would be considered part of the U.S. economy. Therefore, his earnings from the boxing match would contribute to the U.S. GDP. However, since the match takes place in Moscow, Russia, his earnings would not be included in Russia's GNP or GDP.
Adonis Creed's earnings are considered a transfer of value from the Russian economy to the U.S. economy. This transfer does not result in double-counting or raise both countries' GDP. Instead, it reflects income generated by Adonis Creed as part of the U.S. GDP, reflecting his contribution to the U.S. economy through his participation in the boxing match.
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The manager of a clothing store is considering increasing the size of the store. She would like to determine how mary square feet of space should be added in order to maximize profit. The store can be
The manager of a clothing store who is considering increasing the size of the store wants to determine how many square feet of space should be added to maximize profit.
The store can be enlarged by up to 3000 square feet. To determine the number of square feet to be added to the store, the manager must perform a cost-benefit analysis.The cost-benefit analysis will include a comparison of the profit made by the store before and after the expansion. After the cost-benefit analysis, the manager should have a better understanding of how much square footage is needed to maximize profit.
The manager can then make a decision based on the analysis. A manager who analyzes the store's sales data and inventory on a regular basis will be able to determine how much square footage should be added to maximize profit. An analysis of the data can show the demand for different product categories as well as the types of customers who buy them.
When a manager is considering expanding a store, they should perform a cost-benefit analysis. A cost-benefit analysis is a way of evaluating the benefits and costs of a proposed project. In this case, the proposed project is an expansion of the store. The analysis will involve a comparison of the profit made by the store before and after the expansion. The cost-benefit analysis should provide the manager with a better understanding of how much square footage is needed to maximize profit. The manager can then make an informed decision based on the analysis.
An analysis of the store's sales data and inventory can provide additional information on how much square footage should be added. The data can show the demand for different product categories as well as the types of customers who buy them. By understanding the demand for different products, the manager can ensure that the store's expansion meets the needs of its customers. This will help to maximize profits. The analysis of the inventory can also help the manager to ensure that the store has enough stock to meet the demand of its customers. By having a good understanding of the store's inventory, the manager can ensure that the store is well-stocked, which can also help to maximize profits.
To maximize profit, the manager of a clothing store should perform a cost-benefit analysis before expanding the store. The analysis should compare the profit made by the store before and after the expansion. The manager should also analyze the store's sales data and inventory to determine how much square footage should be added. By understanding the demand for different products and ensuring that the store is well-stocked, the manager can ensure that the store's expansion meets the needs of its customers. This will help to maximize profits.
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Which of the following does not pertain to the define (Stage 1) project phase:
• Identify Project Goal
• Success Criteria
• List objectives
• Write Project Execution Plan
"List objectives" does not pertain to the define (Stage 1) project phase. The correct answer is "List objectives."
The define (Stage 1) project phase involves determining the project's goals, success criteria, objectives, and creating a project execution plan. However, one of the options listed does not pertain to this phase.
The option that does not pertain to the define (Stage 1) project phase is "List objectives." This is because the identification of objectives is a crucial step in the define phase, as it helps define the desired outcomes of the project.
To better understand the process, let's break it down step by step:
1. Identify Project Goal: In this step, you define the overall purpose and desired outcome of the project. It provides clarity on what needs to be achieved.
2. Success Criteria: Success criteria are the measurable objectives or benchmarks that indicate whether the project has been successful. These criteria are determined based on the project goal.
3. List Objectives: This step involves identifying the specific objectives that need to be accomplished to achieve the project goal. Objectives should be clear, actionable, and aligned with the project's purpose.
4. Write Project Execution Plan: The project execution plan outlines how the project will be carried out. It includes details on tasks, timelines, resources, and responsibilities.
Therefore, "List objectives" does not pertain to the define (Stage 1) project phase. The correct answer is "List objectives."
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Question 20 (1 point) Listen Above the unconformity, is there a transgressive sequence or a regressive sequence? transgressive regressive B с Scale (moters) 70 60 50 40 30 20 10 0
Question 23 (1 poi
In the given diagram, a layer of rock A is unconformably overlain by another layer of rock B, which could be an erosional surface or a nondeposition surface.
An unconformity is a gap or discontinuity in the geological record where rocks that were previously adjacent are separated by a period of time during which deposition, erosion, or deformation occurred. Unconformities can be used to determine the relative age of rock formations and the timing of geological events.Let us see which sequence is present above the unconformity in the given diagram.Regressive sequence: A regressive sequence is a sequence of rocks that formed during a period of decreasing sea level. This is characterized by the deposition of deeper marine facies that are younger in age than the overlying, shallower marine facies.Transgressive sequence: A transgressive sequence is a sequence of rocks that formed during a period of rising sea level. This is characterized by the deposition of shallower marine facies that are younger in age than the underlying, deeper marine facies.From the given diagram, it is not possible to tell whether the sequence above the unconformity is regressive or transgressive. Hence, the answer to the question is "Cannot be determined."
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Ever Sustain, Inc., manufacturesgiant pokemon cards that sell for $30 each. Each card requires 4 linear feet of paper, which costs $2.50 per foot. Each card takes approximately 30 minutes to build, and the labor rate averages $14 per hour. Ever Sustain has the following inventory policies:
Ending finished goods inventory should be 40 percent of next month’s sales.
Ending direct materials inventory should be 30 percent of next month’s production.
Expected unit sales (cards) for the upcoming months follow:
March 295
April 290
May 340
June 440
July 415
August 465
Variable manufacturing overhead is incurred at a rate of $0.20 per unit produced. Annual fixed manufacturing overhead is estimated to be $9,000 ($750 per month) for expected production of 5,000 units for the year. Selling and administrative expenses are estimated at $800 per month plus $0.50 per unit sold.
The company had $11,800 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credit sales, 50 percent is collected during the month of the sale, and 50 percent is collected during the month following the sale.
Of direct materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Direct materials purchases for March 1 totaled $2,600. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $190 in depreciation. During April, The company plans to pay $3,400 for a piece of equipment
Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit in intermediate calculations and final answers to 2 decimal places.).
Ever Sustain's budgeted income statement for the second quarter is given below: Ever Sustain Inc. Budgeted Income Statement Second Quarter
Sales Revenue
(295 x $30 + 290 x $30 + 340 x $30) $29,550.00
Less: Cost of Goods Sold
Beginning Finished Goods Inventory (40% of the next month's sales) $3,060.00
Add: Cost of Goods Manufactured
(295 x $16.00 + 290 x $16.00 + 340 x $16.00 + 440 x $16.00 + 415 x $16.00 + 465 x $16.00) $57,840.00
Goods Available for Sale $60,900.00
Less: Ending Finished Goods Inventory (40% of next month's sales) $4,360.00
Cost of Goods Sold $56,540.00
Gross Profit $2,010.00
Operating Expenses
Variable Selling and Administrative Expenses $3,705.00
Fixed Manufacturing Overhead (6 months x $1,500/month) $9,000.00
Fixed Selling and Administrative Expenses $2,600.00
Total Operating Expenses $15,305.00
Operating Income $(13,295.00)
Net Income $(13,295.00)
Therefore, the correct option is (d) $(13,295.00).
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explanation please
62. Collins Company uses 12,000 units of a part in its production process. The costs to make a part are: direct material, \$15; direct labor, \$27; variable overhead, \$15; and applied fixed overhead,
The given problem statement is related to the calculation of the cost of a part produced by the Collins Company. The company is using 12,000 units of the part in its production process.
The total cost of the part includes direct material cost, direct labor cost, variable overhead cost, and applied fixed overhead cost. The cost of the part is calculated as follows:
Particulars Amount (in $)
Direct Material Cost 15
Direct Labor Cost 27
Variable Overhead Cost 15
Applied Fixed Overhead Cost.
The amount of fixed overhead cost available in the problem statement. Hence, we cannot calculate the total cost of the part. However, we can use a formula to calculate the total cost of the part.
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What do we expect to happen to Netflix’s profit due to the price
increase
Due to a price increase, we would generally expect Netflix's profit to increase. However, the precise impact on profit depends on various factors, including the price elasticity of demand and any changes in customer behavior.
When Netflix increases its prices, it directly affects its revenue. The impact on profit depends on the price elasticity of demand, which measures how sensitive customers are to changes in price. If demand is relatively inelastic, meaning customers are less responsive to price changes, Netflix can expect a significant increase in profit.
To evaluate the impact on profit, we need to consider the price elasticity of demand. If the price elasticity is less than 1 (inelastic demand), a price increase leads to a proportionally larger increase in revenue and profit. Conversely, if the price elasticity is greater than 1 (elastic demand), the increase in revenue may be offset by a significant decrease in quantity demanded, resulting in a smaller increase in profit or even a decrease.
Netflix's profit can also be influenced by customer behavior changes. A price increase may lead some customers to cancel their subscriptions, reducing Netflix's subscriber base and potentially impacting long-term profitability.
Therefore, while a price increase generally leads to an increase in profit, the actual impact depends on the price elasticity of demand and any changes in customer behavior. Proper analysis of these factors is necessary to determine the precise impact on Netflix's profit.
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Job Costs, Ending Work in Process
During March, Aragon Company worked on three jobs. Data relating to these three jobs follow:
Job 78 Job 79 Job 80
Units in each order 200 180 220
Units sold — 180 —
Materials requisitioned $1,560 $990 $2,400
Direct labor hours 220 200 400
Direct labor cost $3,000 $3,000 $3,300
Overhead is assigned on the basis of direct labor hours at a rate of $8.40 per direct labor hour. During March, Jobs 78 and 79 were completed and transferred to Finished Goods Inventory. Job 79 was sold by the end of the month. Job 80 was the only unfinished job at the end of the month.
Required:
1. Calculate the per-unit cost of Jobs 78 and 79. Round your answers to the nearest cent.
Job 78 $ per unit
Job 79 $ per unit
2. Compute the ending balance in the work-in-process inventory account.
$
3. Prepare the journal entries reflecting the completion of Jobs 78 and 79 and the sale of Job 79. The selling price is 140 percent of cost.
Completion of
Jobs 78 & 79
Accounts Receivable
Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process
Accounts Receivable
Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process
Sale of
Job 79 (cost)
Accounts Receivable
Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process
Accounts Receivable
Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process
Sale of
Job 79 (sale)
Accounts Receivable or Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process
Accounts Receivable or Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process
1. Per-unit cost of Job 78: $32.04, Per-unit cost of Job 79: $25.94
2. Ending balance in the work-in-process inventory account: $9,060
3. Journal entries:
- Completion of Jobs 78 & 79: Debit Finished Goods, Debit Work in Process, Credit Cost of Goods Sold, Credit Work in Process
- Sale of Job 79 (cost): Debit Accounts Receivable or Cash, Debit Cost of Goods Sold, Credit Finished Goods, Credit Sales Revenue, Credit Work in Process
- Sale of Job 79 (sale): Debit Accounts Receivable or Cash, Debit Cost of Goods Sold, Credit Finished Goods, Credit Sales Revenue, Credit Work in Process
1. To calculate the per-unit cost of Jobs 78 and 79, we need to divide the total cost by the number of units for each job.
For Job 78:
Total cost = Materials + Direct labor + Overhead
= $1,560 + $3,000 + ($8.40 × 220)
= $1,560 + $3,000 + $1,848
= $6,408
Per-unit cost of Job 78 = Total cost / Units in the order
= $6,408 / 200
≈ $32.04
For Job 79:
Total cost = Materials + Direct labor + Overhead
= $990 + $3,000 + ($8.40 × 200)
= $990 + $3,000 + $1,680
= $4,670
Per-unit cost of Job 79 = Total cost / Units in the order
= $4,670 / 180
≈ $25.94
Therefore, the per-unit cost of Job 78 is approximately $32.04 and the per-unit cost of Job 79 is approximately $25.94.
2. The ending balance in the work-in-process inventory account can be calculated by summing up the costs of the unfinished job, Job 80.
For Job 80:
Materials requisitioned = $2,400
Direct labor cost = $3,300
Overhead cost = $8.40 × 400 = $3,360
Total cost of Job 80 = Materials + Direct labor + Overhead
= $2,400 + $3,300 + $3,360
= $9,060
Therefore, the ending balance in the work-in-process inventory account is $9,060.
3. Journal entries reflecting the completion of Jobs 78 and 79 and the sale of Job 79:
Completion of Jobs 78 & 79:
Debit: Finished Goods (Job 78 cost + Job 79 cost)
Debit: Work in Process (Job 80 cost)
Credit: Cost of Goods Sold (Job 78 cost + Job 79 cost)
Credit: Work in Process (Job 80 cost)
Sale of Job 79 (cost):
Debit: Accounts Receivable or Cash (Selling price × 180 units)
Debit: Cost of Goods Sold (Job 79 cost)
Credit: Finished Goods (Job 79 cost)
Credit: Sales Revenue (Selling price × 180 units)
Credit: Work in Process (Job 79 cost)
Sale of Job 79 (sale):
Debit: Accounts Receivable or Cash (Selling price × 180 units)
Debit: Cost of Goods Sold (Job 79 cost)
Credit: Finished Goods (Job 79 cost)
Credit: Sales Revenue (Selling price × 180 units)
Credit: Work in Process (Job 79 cost)
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Year 1
a. Sold $1,345,434 of merchandise on credit (that had cost $975,000 ), terms n/30. b. Wrote off $18,300 of uncollectible accounts receivable. c. Received $669.200 cash in payment of accounts receivable. d. In adjusting the accounts on December 31 , the company estimated that 1.5% of accounts receivable would be uncollectible. Year 2 e. Sold $1,525,634 of merchandise on credit (that had cost $1,250,000 ), terms n/30. f. Wrote off $27,800 of uncollectible accounts receivable. g. Received $1,204,600 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.5% of accounts receivable would be uncollectible. Required: Prepare journal entries to record Liang's Year 1 and Year 2 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system, and it applies the allowance method for its. accounts receivable.) (Round your intermediate calculations to the nearest dollar.) Prepare journal entries to record Liang's Year 1 summarized transactions and its year-end adjustments to record bad debts expens (The company uses the perpetual inventory system, and it applies the allowance method for its accounts receivable.)
Using the perpetual inventory system, entries are : To adjust the allowance for doubtful accounts: Bad Debt Expense $10,145 Allowance for Doubtful Accounts $10,145.
Given the following transactions in Liang's Year 1 and Year 2 summarized transactions, record bad debts expense:
Year 1
Sold $1,345,434 of merchandise on credit (that had cost $975,000), terms n/30.
Wrote off $18,300 of uncollectible accounts receivable.
Received $669.200 cash in payment of accounts receivable.
In adjusting the accounts on December 31, the company estimated that 1.5% of accounts receivable would be uncollectible.
Year 2
Sold $1,525,634 of merchandise on credit (that had cost $1,250,000), terms n/30.
Wrote off $27,800 of uncollectible accounts receivable.
Received $1,204,600 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.5% of accounts receivable would be uncollectible.
First, calculate the amount of bad debts to be written off for both years:
For Year 1:
The total accounts receivable balance was $676,334. 1.5% of $676,334 = $10,145.01 (rounded to nearest dollar)
For Year 2: The total accounts receivable balance was
$870,234. 1.5% of $870,234 = $13,053.51 (rounded to nearest dollar)
Journal entries to record Liang's Year 1 summarized transactions and its year-end adjustments to record bad debts expense:
The following journal entries are needed:
For the credit sales:
Accounts Receivable $1,345,434
Sales Revenue $1,345,4342.
For the cost of sales:Cost of Goods Sold $975,000
Merchandise Inventory $975,0003.
For the receipt of cash:Cash $669,200
Accounts Receivable $669,2004.
To write off uncollectible accounts:
Allowance for Doubtful Accounts $18,300
Accounts Receivable $18,3005.
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