Answer:
Flexible budget cost variance= $6,400 unfavorable
Explanation:
To calculate the flexible budget cost variance, we need to use the following formula:
Flexible budget cost variance= (standard costs*actual quantity) - actual costs
Flexible budget cost variance= (6*27,500) - 171,400
Flexible budget cost variance= 165,000 - 171,400
Flexible budget cost variance= $6,400 unfavorable
A firm will maximize the present value of future profits by maximizing current profits when: the growth rate in profits is constant. the growth rate in profits is larger than the interest rate. Correct! the interest rate is larger than the growth rate in profits and both are constant. the growth rate and interest rate are constant and equal.
Answer:
the interest rate is larger than the growth rate in profits and both are constant.
Explanation:
In the case when the firm wants to maximize the present value of the profits that arise in near future so here the current profits would be maximize at the time when the rate of interest would be more than the growth rate and both would remain constant
Hence, the option c is correct
An investor thought that market interest rates were going to decline. He paid $19,000 for a corporate bond with a face value of $20,000. The bond has an interest rate of 10% per year payable annually. If the investor plans to sell the bond immediately after receiving the 4th interest payment, how much will he have to receive in order to make a return of 14% per year? Solve using:
a. tabulated factors
b. the GOAL SEEK tool on a spreadsheet.
Answer:
Answer is explained in the explanation section below.
Explanation:
a. In this part, we need to calculate the present worth using the formula to calculate the sale price of the bond.
As the coupon rate = 10% per year
So,
The Annual dividend will = 2000 = 10% x 20,000
19000 = 2000 (P/A, 14%,4) + B(P/F,14%,4)
19000 = 2000 (2.9137) + B (0.592)
Solving for B = Desired sales price of the bond
B = [tex]\frac{19000 - 5827.4}{0.592}[/tex]
B = 22251
b. Part b of this question is to solve using GOAL SEEK feature of a spreadsheet so, I have attached it in the attachment. Please refer to the attachment for the solution of part b.
Journalize the following transactions in the general journal: Sept. 1 Sold common stock for cash $60,000. 1 Paid rent for the month, $1,500. 3 Borrowed $10,000 from a bank and signed a note payable agreeing to repay the $10,000 in one year plus 10% interest. 3 Purchased $5,500 of cleaning equipment; paid $3,000 down with the remainder due within 30 days. 4 Purchased cleaning supplies for $4,200 cash. 10 Received $3,500 from cash customers. 21 Billed customers for services, $3,800. 23 Paid $2,500 on account to cleaning equipment firm (see Sept. 3 transaction). 28 Collected $2,500 from customers on account. 29 Received electricity bill for the month, $85 and will pay it in October. 30 Paid wages for September, $1,950. 30 Paid service station for gasoline used during September, $275. 30 Paid dividends, $900.
Answer: See explanation
Explanation:
September 1:
Debit Common stock $6000
Credit: Cash $60000
September 1:
Debit: Rent $1500
Credit: Cash $1500
September 3:
Debit: Cash $10000
Credit: Note payable $10000
September 3:
Debit: Cleaning Equipment $5,500
Credit: Cash $3,000
Credit: Account payable $2,500
September 4:
Debit: Supplies $4200
Credit: Cash $4200
September 10:
Debit: Cash $3500
Credit: Service revenue $3500
September 21:
Debit: Account receivable $3800
Credit: Service revenue $3800
September 23:
Debit: Account payable $2500
Credit: Cash $2500
September 28:
Debit: Bank $2800
Credit: Account receivable $2800
September 29:
Debit: Electricity expense $85
Credit: Electricity payable $85
September 30:
Debit: Wages $1950
Credit: Cash $1950
September 30:
Debit: Gasoline $275
Credit: Cash $275
September 30:
Debit Dividend $900
Credit Cash $900
You won the lottery and may choose between Prize 1, which would pay you $50,000 today and $200,000 at the end of 10 years OR receive $50,000 today plus some annuity at the end of each year for 10 years. Using an interest rate of 5%, which of the following comes closest to the annuity that will make the present value of both prizes the same?
a. $172,782.65.
b. $38,431.68.
c. $122,782.65.
d. $15,900.91.
Answer:
Annual payment= $15,900.91
Explanation:
First, we need to calculate the present value of Prize 1:
PV= FV / (1 + i)^n
PV= 50,000 + [200,000 / (1.05^10)]
PV= $172,782.65
Now, we need to determine the annuity that would make equal both prizes:
Difference= 172,782.65 - 50,000= $122,782.65
To calculate the annuity that would have a PV of $122,782.65; we need to use the following formula:
Annual payment= (PV*i) / [1 - (1+i)^(-n)]
Annual payment= (122,782.65*0.05) / [1 - (1.05^-10)]
Annual payment= $15,900.91
Is a measurement of the way suppliers respond to a change in price
Answer:
Elasticity
Explanation:
Elasticity of supply is a measure of the way suppliers respond to a change in price.
Good Luck!
The goal of the review in a business presentation is to Multiple choice question. compel audience members to consider taking specific actions. lead audience members in participating in a dramatic demonstration. tie together the meaning of any visual aids used in the presentation. provide a brief evaluation of the speaker's reaction to audience members.
Answer:
provide a brief evaluation of the speaker's reaction to audience members.
Explanation:
In a business presentation review, the main objective is to provide a brief assessment of the speaker's reaction to audience members, that is, the objective is to share with the members of that company how business was conducted, what efforts were achieved and how company is moving into the market. Sharing a brief assessment of the speaker's reaction with members helps to create a sense of belonging to the company, identification of members and satisfaction with the results achieved, thus increasing reliability and appreciation at work, strengthening integration, productivity and organizational culture.
Robert, a highly experienced software engineer, joins a new company as the manager of a large group of employees. In his first meeting with the employees of the new organization, he explains his expectations on the behavior of employees. He also lets the employees know that noncompliance with his norms will result in withholding the rewards that they receive. Which of the following types of power is Robert using here?
a. reward
b. transformational
c. referent
d. coercive
Answer:
reward, maybe even referent
Explanation:
Robert is using rewarding to let people know that they need to work or they won't be rewarded.
Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In the exchange, Red Blossom received land with a fair market value of $520,000. The corporation's basis in the Tea Company stock was $417,500. The land had a basis to Tea Company of $622,500. What amount of gain does Red Blossom recognize in the exchange and what is its basis in the land it receives
Answer: $102,500 gain recognized and a basis in the land of $520000
Explanation:
From the information given in the question, we can infer that the amount of gain that Red Blossom recognize in the exchange will be:
= Fair market value of land - Corporation's basis in the Tea Company stock
= $520,000 - $417,500
= $102500
We should also note that the land basis will be $520000 which is the fair market value of the land.
Liberty Corporation was authorized to issue 300,000 shares of $5 par value common stock. Liberty issued 60,000 shares of common stock on January 15, 2020, at $15 per share. Required a. Record the entry on June 30, 2020, for purchase of 6,600 common shares for the treasury at $18 per share. b. Record the entry on September 20, 2020, for sale of 2,400 treasury shares at $21 per share. c. Record the entry on November 3, 2020, for sale of 1,500 treasury shares at $17 per share.
Answer:
Liberty Corporation
Journal Entries:
January 15, 2020:
Debit Cash $900,000
Credit Common stock $300,000
Credit Additional Paid-in Capital $600,000
To record the issue of 60,000 shares of common stock at $15 per share.
a) June 30, 2020:
Debit Treasury Stock $33,000
Debit Additional Paid-in Capital $85,800
Credit Cash $118,800
To record the purchase of 6,600 treasury shares at $18 per share.
b) September 20, 2020:
Debit Cash $50,400
Credit Treasury Stock $12,000
Credit Additional Paid-in Capital $38,400
To record the sale of 2,400 treasury shares at $21 per share.
c) November 3, 2020:
Debit Cash $25,500
Credit Treasury Stock $7,500
Credit Additional Paid-in Capital $18,000
To record the sale of 1,500 treasury shares at $17 per share.
Explanation:
a) Data and Analysis:
Authorized common stock share capital of 300,000 at $5 = $1,500,000
January 15, 2020: Issued 60,000 shares at $15 per share:
Cash $900,000 Common stock $300,000 Additional Paid-in Capital $600,000
June 30, 2020: Purchased 6,600 for the treasury shares at $18 per share:
Treasury Stock $33,000 Additional Paid-in Capital $85,800 Cash $118,800
September 20, 2020: Sale of 2,400 treasury shares at $21 per share:
Cash $50,400 Treasury Stock $12,000 Additional Paid-in Capital $38,400
November 3, 2020: Sale of 1,500 treasury shares at $17 per share:
Cash $25,500 Treasury Stock $7,500 Additional Paid-in Capital $18,000
Rodgers Company gathered the following reconciling information in preparing its May bank reconciliation. Calculate the adjusted cash balance per books on May 31. Cash balance per books, 5/31 $4,022 Deposits in transit 248 Notes receivable and interest collected by bank 746 Bank charge for check printing 28 Outstanding checks 1,754 NSF check 164 a.$4,576 b.$994 c.$3,098 d.$2,516
Answer: a.$4,576
Explanation:
Sometimes the cash balance according to the books is not the same as the cash in the bank account and this is due to some transactions not being recorded by either the bank or the firm.
Adjusted cash balance per books = Unadjusted cash balance + Note receivable and interest collected by bank - Bank charge for check printing - NSF Check
= 4,022 + 746 - 28 - 164
= $4,576
Analyzing Marketing
Tasks
Which examples best demonstrate likely tasks for Marketing Information Management and Research workers?
Check all that apply.
Josie teaches a customer how to use a company's product.
Morris organizes a company's inventory and makes sure customers receive their orders on time.
o Wally gathers information about a company's competitors.
Shani designs advertisements to promote a company's product.
Jenna writes a survey to learn what customers do and don't like about a company.
Ruben predicts a company's sales trends and creates a presentation for its managers.
Answer:
Wally gathers information about a company’s competitors.Jenna writes a survey to learn what customers do and don’t like about a company. Ruben predicts a company’s sales trends and creates a presentation for its managers.Explanation:
I just did it on Edg.
Marketing information management refers to the practice of gathering, collecting, and evaluating critical market research data.
What is the function of marketing research?Marketing research helps marketing management by offering decision-relevant data. Marketing research does not make decisions, and it does not ensure results. Marketing research, on the other hand, aids in reducing the uncertainty around upcoming decisions.
Thus, the examples which demonstrate marketing information are options C, E, and F.
For more information about the roles of marketing research refer to the link:
https://brainly.com/question/7032988
Dynamic Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on June 30, 20Y7, the end of the fiscal year, the balances of selected accounts from the ledger of Dynamic Weight Loss are as follows:
Accounts Payable $51,200
Accounts Receivable 187,500
Accumulated Depreciation - Equipment 186,000
Cash ?
Common Stock 100,000
Equipment 325,900
Land 375,000
prepaid Insurance 8400
Prepaid Rent 6000
Retained Earnings 620,300
Salaries Payable 7500
Supplies 11,200
Unearned Fees 21,000
Required:
Prepare a classified balance sheet that includes the correct balance for Cash.
Answer:
Dynamic Weight Loss Co.
Statement of Financial position as at June 30, 20Y7
Assets
Current Asset $ $
Cash 72,000
Accounts Receivable 187,500
Supplies 11,200
prepaid Insurance 8,400
Prepaid Rent 6,000
Total Current asset 285,100
Property, plant and Equipment
Land 375,000
Equipment 325,900
Accumulated Depreciation - Equipment (186,000) 514,900
Total Assets 800,000
Liabilities and Owners Equities
Current liabilities
Accounts Payable 51,200
Salaries Payable 7,500
Unearned Fees 21,000
Total liabilities 79,700
Owners Equities
Common Stock 100,000
Retained Earnings 620,300
Total Equities 720,300
Total Liabilities and Owners Equities 800,000
Explanation:
The balance sheet shows the company's assets, liabilities and equities.
Using the accounting equation
Assets = Liabilities + Equities
Total assets
= 187,500 + 325,900 - 186,000 + 375,000 + 8400 + 6000 + 11,200 + C
where C is the closing balance in the cash account
= 728,000 + C
Total liabilities
= 51,200 + 7500 + 21,000
= $79,700
Total equities
= 620,300 + 100,000
= $720,300
Since Assets = Liabilities + Equities
728,000 + C = 720,300 + 79,700
C = 720,300 + 79,700 - 728,000
C = $72,000
As long as a firm's net income is positive, then the firm can use the positive net income to pay dividends to its shareholders.
True
False
Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 2,000,000 shares of no-par common stock were authorized; 750,000 shares were issued on January 1, 2019, at $35 per share. 800,000 shares of $100 par value, 7.5% cumulative, preferred stock were authorized; 540,000 shares were issued on January 1, 2019, at $105 per share. No dividends were declared or paid during 2019 or 2020. However, on December 22, 2021, the board of directors of Permabilt Corp. declared dividends of $15,000,000, payable on February 12, 2022, to holders of record as of January 8, 2022.
Prepare the journal entries to record each of the below transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
The issuance of common stock and preferred stock on January 1, 2019.
The declaration of dividends on December 22, 2021.
The payment of dividends on February 12, 2022.
b. Of the total amount of dividends declared during 2021, how much will be received by preferred shareholders?
c. Calculate the common stock dividends per share declared during 2021. (Round your answer to 2 decimal places.)
Answer:
Permabilt Corp.
a. Journal Entries:
Debit Cash $26,250,000
Credit Common stock $26,250,000
To record the issuance of 750,000 shares at $35 per share.
2. Debit Cash $56,700,000
Credit Preferred stock $54,000,000
Credit Additional paid-in capital- preferred stock $2,700,000
To record the issuance of 540,000 shares at $105 per share.
3. Debit Cumulative preferred stock dividends $12,150,000
Debit Common stock $2,850,000
Dividends Payable $15,000,000
To record the declaration of dividends.
b. Preferred shareholders will receive $12,150,000 out of the $15 million declared dividends during 2021 ($4,050,000 for each year)
c. Common stock dividends per share = $3.80 ($2,850,000/750,000)
Explanation:
a) Data and Calculations:
Authorized share capital:
Common stock = 2,000,000 shares of no-par value
7.5% cumulative, preferred stock = 800,000 shares at $100 par value
Issued share capital:
Common stock, 750,000 at $35 = $26,250,000
Cash $26,250,000 Common stock $26,250,000
Preferred stock, 540,000 at $105 = $56,700,000
Cash $56,700,000 Preferred stock $54,000,000 Additional paid-in capital $2,700,000
Declared Dividends = $15,000,000
Cumulative preferred stock dividends for 3 years
= $12,150,000($4,050,000 * 3)
Common stock = $2,850,000 ($15,000,000 - $12,150,000)
As a supervisor you observe a female member of your staff is being harassed
both verbally and at times physically. She seems to disapprove but does not
make any reports. How would you go about dealing with this situation?
Answer:
Pull into the office and have a talk about it, then talk about ways to deal with it
Explanation:
Sometimes in these situations they have been traumatized by the harassment to report it (im saying she may be too scared to report it).
If the price elasticity of demand for a good is 1.2, then a 3 percent decrease in price results in a
Answer:
3.6%
Explanation:
The price elasticity is 1.2%
The price decreases by 3%
Therefore the quantity supplied can be calculated as follows
= price elasticity × change in price
= 1.2 × 3
= 3.6
Hence this results in 3.6% increase in the quantity demanded
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year.
Cash Receipts Cash payments
January $528,000 $473,700
February 405,000 350,700
March 470,000 536,000
According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $160,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $40,000 on the last day of each month. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1.
Required:
Prepare monthly cash budgets for January, February, and March.
Answer:
Ending Cash Balance as are follows:
January = $40,000
February = $67,535
March = $40,000
Also, Loan Balance End of Month as follows:
January = $26,500
February = $0
March = $38,465
Explanation:
Note: See the attached excel file for the cash budget.
In the attached excel file, the following calculations are made:
January loan repayment = January Preliminary cash - January Interest expense - Minimum required cash balance = $94,300 - $800 - $40,000 = $53,500
February Loan repayment = January Loan Balance End of the Month = $26,500
March Additional Loan = Minimum required cash balance - March Preliminary cash balance = $40,000 - $1,535 = $38,465
From the attached excel file, we have Ending Cash Balance as follows:
January = $40,000
February = $67,535
March = $40,000
And also, Loan Balance End of Month as follows:
January = $26,500
February = $0
March = $38,465
from the video "the best stats you've ever seen "
what are some of the variables that rosling's graphs analyze? why are these factors important?
Answer:
michael jackson it about life
Explanation:
Illumination Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year: Budgeted costs of operating the plant for 2000 to 3000 hours: Fixed operating costs per year $480,000 Variable operating costs $800 per hour Budgeted long-run usage per year: Flashlight Division 1500 hours Night Light Division 700 hours Practical capacity 3000 hours Assume that practical capacity is used to calculate the allocation rates. Actual usage for the year by the Flashlight Division was 1400 hours and by the Night Light Division was 600 hours. If a single-rate cost-allocation method is used, what amount of operating costs will be allocated to the Night Light Division
Answer:
Allocated operating costs= $576,000
Explanation:
First, we need to calculate the predetermined operating costs allocation rate:
Predetermined operating costs allocation rate= total estimated operating costs for the period/ total amount of allocation base
Predetermined operating costs allocation rate= (480,000 / 3,000) + 800
Predetermined operating costs allocation rate= $960 per hour
Now, we can allocate overhead to Night Light Division:
Allocated operating costs= Predetermined operating costs allocation rate* Actual amount of allocation base
Allocated operating costs= 960*600
Allocated operating costs= $576,000
In 2018, the Orange Furniture Store, an accrual method sole proprietorship, sold furniture on credit for $1,000 to Sammy. The cost of the furniture was $600. In 2019, Orange took a bad debt deduction for the $1,000. In 2020, Sammy inherited some money and paid Orange the $1,000 he owed. Orange's owner was in the 35% marginal tax bracket in 2018, the 12% marginal tax bracket in 2019, and the 35% marginal tax bracket in 2020. Orange Furniture must include $fill in the blank 4bc14b03ef8bfd3_1 in gross income as the recovery of a prior deduction. The timing of the income and deductions cost Orange $fill in the blank 4bc14b03ef8bfd3_2 . b. In 2019, Marvin, a cash basis taxpayer, took a $2,000 itemized deduction for state income taxes paid; the deduction was not limited by the SALT cap. This increased his itemized deductions to a total that was $800 more than the standard deduction. In 2020, Marvin received a $1,500 refund when he filed his 2019 state income tax return. Marvin was in the 12% marginal tax bracket in 2019 but was in the 35% marginal tax bracket in 2020. How much must Marvin include in his gross income for 2020
Answer:
1a. $230
1b. $800
Explanation:
Calculation to determine The timing of the income and deductions cost Orange
Using this formula
Timing of the income and deductions cost Orange=(Marginal tax bracket in 2018-Marginal tax bracket in 2019)×Gross income
Let plug in the formula
Timing of the income and deductions cost Orange= (0.35 − 0.12) × $1,000
Timing of the income and deductions cost Orange=0.23×$1,000
Timing of the income and deductions cost Orange= $230
Therefore the Timing of the income and deductions cost Orange will be $230
1b. Calculation to determine How much must Marvin include in his gross income for 2020
Based on the information given the amount that Marvin must include in his GROSS INCOME for the year 2020 is the refund amount of $800 which represent the amount we were told increased his itemized deductions reason been that a tax benefit amount was received for the deduction in the year 2019 while on the other hand the refund amount of $700 that was remaining which is calculated as ($1,500-$800) will not be included in Marvin GROSS INCOME reason been that it does not have any tax benefit.
Therefore The Amount that Marvin must include in his gross income for 2020 is $800
Information from the records of the Abel Corporation for July 2018 was as follows:
Sales $1,230,000
Selling and administrative expenses 210,000
Direct materials used 264,000
Direct labor 300,000
Factory overhead * 405,000
*variable overhead is $205,000, fixed overhead is $200,000
Inventories
July 1, 2018 July 31, 2018
Direct materials $36,000 $42,000
Work in process 75,000 84,000
Finished goods 69,000 57,000
The total product cost is:_______.
a. $969,000
b. $1,179,000
c. $764,000
d. $615,000
Answer:
a. $969,000
Explanation:
Calculation for what The total product cost is
TOTAL PRODUCT COST
Direct Material Used $264,000
Direct Labor $300,000
Factory Overhead $405,000
Total Product Cost $ 969,000
($264,000+$300,000+$405,000)
Therefore The total product cost is $ 969,000
Ace Leasing acquires equipment and leases it to customers under long-term sales-type leases. Ace earns interest under these arrangements at a 6% annual rate. Ace leased a machine it purchased for $790,000 under an arrangement that specified annual payments beginning at the commencement of the lease for five years. The lessee had the option to purchase the machine at the end of the lease term for $200,000 when it was expected to have a residual value of $350,000. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Calculate the amount of the annual lease payments. (Enter amounts as positive values rounded to the nearest whole dollar.)
Answer:
$143,750
Explanation:
We have to first calculate the present value of the bargain purchase option:
PV = $200,000 / (1 + 6%)⁵ = $149,451.63
net lease amount = $790,000 - $149,452 = $640,548
PVIF Annuity due, 6%, 5 payments = 4.546
Annual payment = $640,548 / 4.456 = $143,750
Wesson Company uses the allowance method to record its expected credit losses. It estimates its losses at one percent of credit sales, which were $750,000 during the year. The Accounts Receivable balance was $220,000 and the Allowance for Doubtful Accounts has a credit balance of $1,000 at year-end. What amount is the debit to the Bad Debts Expense
Answer: $7,500
Explanation:
The Bad Debt expense is the amount that might not be paid by the account receivables of a company.
It is calculated by the formula:
= Credit sales * Estimated losses
= 750,000 * 1%
= $7,500
If you will become a manager or part of the management how will you implement the effective organizing strategies?
Answer:
A well-developed strategy is easier to implement than one that has not received sufficient thought. Create strategies that can be effectively implemented by specifying clear objectives and projecting measurable milestones. Align these strategic steps with your company's overall mission.
Explanation:
A baseball team plays in a stadium that holds 48000 spectators. With the ticket price at $8 the average attendance has been 20000. When the price dropped to $5, the average attendance rose to 24000. a) Find the demand function p(x), where x is the number of the spectators. (Assume that p(x) is linear.) p(x)= b) How should ticket prices be set to maximize revenue? The revenue is maximized by charging $ per ticket.
Answer:
The ticket price should be $10.2
Explanation:
The revenue is given by the equation:
1 /3 (5000x + 102,000) x
dy / dx = -5000 * 2/3 x + 34,000 = 0
x = 10.2
The ticket price should be $10.2 per ticket. This is the optimal price which will maximize the revenue of the stadium.
6.
Jane's Juice Bar has the following cost schedules:
Quantity
Variable Cost
Total Cost
O vats of juice
1
2.
3
4
5
$ 0
10
25
45
70
100
135
$ 30
40
55
75
100
130
165
6
a. Calculate average variable cost, average total
cost, and marginal cost for each quantity.
b. Graph all three curves. What is the
relationship between the marginal-cost
curve and the average-total-cost curve?
Between the marginal-cost curve and the
average-variable-cost curve? Explain.
Answer:
This may help you to solve it
The Bassos contracted with Dierberg to purchase her property for $1,310,000. One term of the contract stated, "[t]he sale under this contract shall be closed . . . at the office of Community Title Company. . . on May 16, 1988 at 10:00 am. . . . Time is of the essence of this contract." After forming the contract, the Bassos assigned their right to purchase Dierberg’s property to Miceli and Slonim Development Corp. At 10:00 am on May 16, 1988, Dierberg appeared at Community Title for closing. No representative of Miceli and Slonim was there, nor did anyone from Miceli and Slonim inform Dierberg that there would be any delay in the closing. At 10:20 am, Dierberg declared the contract null and void because the closing did not take place as agreed, and she left the title company office shortly thereafter. Dierberg had intended to use the purchase money to close another contract to purchase real estate later in the day. At about 10:30 AM, a representative of Miceli and Slonim appeared at Community Title to begin the closing, but the representative did not have the funds for payment until 1 :30 PM. Dierberg refused to return to the title company, stating that Miceli and Slonim had breached the contract by failing to tender payment on time. She had already made alternative arrangements to finance her purchase of other real estate to meet her obligation under that contract. Miceli and Slonim sued Dierberg, claiming that the contract did not require closing exactly at 10:00 AM, but rather some time on the day of May 16. Will they prevail?
Answer:
Certainly, they cannot prevail. The contract terms stated clearly that "time is of the essence of this contract." The Bassos and Miceli and Slonim Development Corp did not actually respect this contract term.
The contract was expected to have closed at 10:00 am on May 16, 1988, and not after. By the time that Dierberg left the venue, the contract should have been finalized. Alternatively, if there were unseen delays, Dierberg should have been informed at least 30 minutes before 10:00 am.
Explanation:
The argument by Miceli and Slonim does not hold water. The contract did require closing exactly at 10:00 AM, and not some time on May 16. In my considered opinion, suing Dierberg is a waste of court time and process.
McNulty, Inc., produces desks and chairs. A new CFO has just been hired and announces a new policy that, if a product cannot earn a margin on sales of at least 20 percent, it will be dropped.
The margin is computed as product gross profit divided by reported product cost.
Manufacturing overhead for year 1 totaled $800,000. Overhead is allocated to products based on direct labor cost.
Data for year 1 show the following:
Chairs Desks
Sales revenue $1,150,000 $2,105,000
Direct materials 584,000 800,000
Direct labor 160,000 340,000
a-1. Based on the CFO's new policy, calculate the profit margin for both chairs and desks.
Profit Margin (%)
Chairs
Desks
a-2. Which of the two products should be dropped?
b. Regardless of your answer in requirement a, the CFO decides at the beginning of year 2 to drop the chair product. The company cost analyst estimates that overhead without the chair line will be $650,000. The revenue and costs for desks are expected to be the same as last year.
What is the estimated margin for desks in year 2?
Gross Profit Margin:
Gross Profit margin is given as the gross profit divided by the sales of the company multiplied by 100. It is calculated to compare the results of the company from the past year and also from other companies in the industry.
Answer:
a-1. Profit Margin:
Chairs = 15%
Desks = 25%
a-2. Chair should be dropped.
b. The estimated margin for desks in year 2 is 18%.
Explanation:
a-1. Based on the CFO's new policy, calculate the profit margin for both chairs and desks.
McNulty, Inc.
Calculation of the profit margin for both chairs and desks for year 1.
Details Chairs ($) Desks ($)
Sales revenue (A) 1,150,000 2,105,000
Direct materials (B) 584,000 800,000
Direct labor (C) 160,000 340,000
Manufacturing overhead (D) 256,000 544,000
Product cost (E = B+C+D) 1,000,000 1,684,000
Gross profit (F = A-E) 150,000 421,000
Profit Margin (G = F/E) 15% 25%
Expected margin 20% 20%
Workings:
Chairs Manufacturing overhead = ($160,000 / ($160,000 + $340,000)) * $800,000 = $256,000
Desks Manufacturing overhead = ($340,000 / ($160,000 + $340,000)) * $800,000 = $544,000
a-2. Which of the two products should be dropped?
Chair should be dropped. This is because its estimated profit margin of 15% is less than the expected margin of 20%.
b. Regardless of your answer in requirement a, the CFO decides at the beginning of year 2 to drop the chair product. The company cost analyst estimates that overhead without the chair line will be $650,000. The revenue and costs for desks are expected to be the same as last year. What is the estimated margin for desks in year 2?
The estimated margin for desks in year 2 can be calculated as follows:
McNulty, Inc.
Estimation of margin for desks in year 2
Details Desks ($)
Sales revenue (A) 2,105,000
Direct materials (B) 800,000
Direct labor (C) 340,000
Manufacturing overhead (D) 650,000
Product cost (E = B+C+D) 1,790,000
Gross profit (F = A-E) 315,000
Profit Margin (G = F/E) 18%
Expected margin 20%
Therefore, the estimated margin for desks in year 2 is 18%.
Cory, a college professor, incurred and paid the following expenses in 2020: Tax return preparation fee $ 600 Moving expenses 2,000 Investment expenses 500 Expenses associated with rental property 1,500 Interest expense associated with loan to finance tax-exempt bonds 400 Calculate the amount that Cory can deduct (before any percentage limitations).
Answer:
$4,600
Explanation:
Calculate the amount that Cory can deduct
Tax return preparation fee $ 600
Add Moving expenses $2,000
Add Investment expenses $500
Add Expenses associated with rental property $1,500
Cory Deduction $4,600
($600+$2,000+$500+$1,500)
Therefore Cory can deduct $4,600
What tab should you choose to locate the spelling and grammar check tools?
Home
Layout
Review
View
Answer:
Review
Explanation:
The correct answer is - Review
Reason -
From the Review tab, click the Spelling & Grammar command.
The Spelling and Grammar pane will appear on the right.
Answer:
it is C
Explanation: