Answer:
the financial disadvantage is -$6,000
Explanation:
The computation of the financial advantage or disadvantage is as follows
= Lost of the contribution margin + avoidable fixed cost + increase in contribution margin
= -$30,000 + $8,000 + $16,000
= -$6,000
It should not be dropped as the saving cost is lower than the contribution loss
Hence, the financial disadvantage is -$6,000
The ship Audie Murphy leaves the New York Port with a ship load of GMC pick-up trucks bound for the Port of Istanbul, Turkey. A fire breaks out aboard the ship and destroys more than thirty GMC pick-up trucks. After an investigation it has been unable to determine the cause. Who is financially responsible for the damage
Answer: c. The Owner of the ship - Jack Palace
Explanation:
The investigation was unable to determine the cause of the fire. While this does not clear any party, it does not lay the blame on any party either.
In such a case the financial responsibility will fall on the company operating the transport company which in this case is Jack Palace who is the owner of the ship.
Dean has earned $75,000 annually for the past seven years working as an architect for WCC Incorporated Under WCC's defined benefit plan (which uses a seven-year graded vesting schedule) employees earn a benefit equal to 4.5 percent of the average of their three highest annual salaries for every full year of service with WCC. Dean has worked for seven full years for WCC and his vesting percentage is 99 percent. What is Dean's vested benefit (or annual retirement benefit he has earned so far)
Answer:
$23,388.75
Explanation:
Calculation for Dean's vested benefit
Dean's vested benefit =$75,000 x (4.5% x 7 years) x 99%
Dean's vested benefit =$75,000×0.315×99%
Dean's vested benefit =$23,388.75
Therefore Dean's vested benefit will be $23,388.75
18. A company's flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $16,000. The sales expected if the company produces and sells 16,000 units is: a. $24,000. b. $18,000. c. $48,000. d. $40,000. e. $64,000.
Answer:
e. $64,000.
Explanation:
The computation of the sales expected in the case of 16,000 units
Sales on 16,000 units is
= Budgeted sales ÷ Budgeted volume × Actual volume
= $48,000 ÷ 12,000 units × 16,000 units
= $64,000
hence, the sales expected in the case of 16,000 units is $64,000
Therefore the correct option is e
Hence, the same is to be considered
Bothell Construction, LLC, Ballard Remodel, Inc., and Tim's House Painting Company agreed that on three upcoming projects, Ballard Remodel would bid lowest on one, Bothell Construction would submit the lowest bid on the second project, and Tim's House Painting would submit the lowest bid on the third project. All three discussed this and agreed that this would be the best way that each would be assured of work for the upcoming season. This behavior:
Answer:
violates ethical, but not legal, standards.
Explanation:
Sherman act was created to prohibit restrains on trade of any collusion by different parties to form a monopoly or control price.
The act does not however prohibit all restraints of trade, bit rather those that are very unreasonable and harmful to competition.
In the given scenario the three companies only agreed to bid lowest for the 3 project under consideration.
Their action does not give them unfair advantage over other firms and may even lead to a loss on their part.
They do not have a strategy that will guarantee an edge over other firms.
So this is an ethical violation but not a legal one.
The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash equivalents $ 10,319 Accounts receivable 79,922 Merchandise inventories 69,862 Prepaid expenses 6,000 Accounts payable $ 16,850 Notes payable 96,138 Other current liabilities 11,400 If net credit sales for the current year were $602,000, the firm's days' sales uncollected for the year is: (Use 365 days a year.)
Answer:
49 days
Explanation:
Account receivable turnover ratio = Net credit sales / Accounts receivable
Account receivable turnover ratio = $602,000 / $79,922
Account receivable turnover ratio = 7.53
Average collection period = 365/7.53
Average collection period = 48.47277556440903
Average collection period = 49
Thus, firm’s sales uncollected for year is 49 days.
A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual fixed costs of $150,000 and variable costs of $20,000 per unit; location B has annual fixed costs of $350,000 and variable costs of $18,000 per unit. The finished items sell for $22,000 each. a. At what volume of output would the two locations have the same total cost
Answer: 100 units
Explanation:
Assume the volume of output where the two locations have the same total cost is x.
Volume is;
150,000 + 20,000x = 350,000 + 18,000x
20,000x - 18,000x = 350,000 - 150,000
2,000x = 200,000
x = 200,000 / 2,000
x = 100 units
Yanita Company, an IFRS reporting firm, has three bank accounts. The respective account balances are as follows: Account 1: $50,000; Account 2: $70,000; Account 3: $(10,000). Consistent with IFRS, cash and cash equivalents are equal to:
Answer:
Consistent with IFRS, cash and cash equivalents are equal to:
$110,000.
Explanation:
a) Data and Calculations:
Account 1: $50,000
Account 2: $70,000
Account 3: $(10,000)
Total $110,000
b) Yanita's cash and cash equivalents are the assets that are cash or can be converted into cash immediately, which include bank accounts and marketable securities such as commercial paper and short-term government bonds. Under IFRS, cash and cash equivalents also include bank overdrafts, which are recorded under current liabilities on the Balance Sheet. However, under US GAAP, bank overdrafts are not treated as part of the cash and cash equivalents. This implies that under US GAAP, Yanita's cash and cash equivalents would be totaling $120,000.
At the beginning of its fiscal year, the Town of Harmon estimates that its revenues for street maintenance activities are $100,000, and it appropriates $90,000 forstreet maintenance supplies. It currently has outstanding encumbrances for street maintenance supplies of $40,000 and has incurred expenditures for street maintenance supplies of $30,000. How much does the Town of Harmon currently have available to spend for street maintenance supplies
Answer:
The amount that the Town of Harmon currently have available to spend for street maintenance supplies is $20,000.
Explanation:
From the question, we can obtain the following:
Amount appropriated for street maintenance supplies = $90,000
Outstanding encumbrances for street maintenance supplies = $40,000
Expenditures incurred for street maintenance supplies = $30,000
Therefore, we have:
Amount currently available to spend for street maintenance supplies = Amount appropriated for street maintenance supplies - Outstanding encumbrances for street maintenance supplies - Expenditures incurred for street maintenance supplies = $90,000 - $40,000 - $30,000 = $20,000
Therefore, the amount that the Town of Harmon currently have available to spend for street maintenance supplies is $20,000.
International trade is the subject of much debate. Many economist favor encouraging international trade, citing the benefits gained by trade. However, there are economic arguments for limiting international trade with protectionism. Classify the given statements into the appropriate category. Arguments for promoting international trade Arguments for limiting international trade with protectionism
Answer:
the arguments are missing, so I looked for similar questions and found:
The ability of a nation to consume more than it can produce domestically. ⇒ ARGUMENT FOR PROMOTING INTERNATIONAL TRADE. Excess production should be exported. The infant industry argument. ⇒ ARGUMENT FOR LIMITING INTERNATIONAL TRADE WITH PROTECTIONISM. Certain new industries should be protected until they mature and become leaders. Changes in productivity associated with specialization. ⇒ ARGUMENT FOR PROMOTING INTERNATIONAL TRADE. As specialization occurs, production output increases allowing for trade benefits. The potential for other governments to subsidize firms, enabling them to charge lower prices than domestic firms can. ⇒ ARGUMENT FOR LIMITING INTERNATIONAL TRADE WITH PROTECTIONISM. Since other countries subsidize their exports, we should impose tariffs to level the market. The national defense/interest argument. ⇒ ARGUMENT FOR LIMITING INTERNATIONAL TRADE WITH PROTECTIONISM. Some sectors are important and should be protected. Job loss in some labor markets. / Worries about domestic labor markets. ⇒ ARGUMENT FOR LIMITING INTERNATIONAL TRADE WITH PROTECTIONISM. Imported goods result in people losing their jobs.Dorman Company reported the following data: Net income $225,000 Depreciation expense 25,000 Gain on disposal of equipment 20,500 Decrease in accounts receivable 14,000 Decrease in account payable 3,600 Prepare the Cash Flows from Operating Activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
Answer:
$239,900
Explanation:
Cash Flows from Operating Activities section
Particulars Amount
Net income $225,000
Add Depreciation expenses $25,000
Less Gain on disposal of equipment $20,500
Add Decrease in accounts receivables $14,000
Less Decrease in accounts payable $3,600
Net cash flow from operating activities $239,900
Which one of the following statements is TRUE? a. A targeted share repurchase can be used to encourage a hostile takeover. b. A targeted share repurchase is when the company purchases stock from one shareholder at a higher price than it offers to other shareholders. c. A shareholder-friendly charter will make it harder for a company to be acquired. d. An example of asset switching is an option to exchange one piece of real estate for another.
Answer:
Option b: A targeted share repurchase is when the company purchases stock from one shareholder at a higher price than it offers to other shareholders
Explanation:
Stock repurchase is simply the buying of stock by a company from its stockholders. It is another means or way for a company to distribute value to the stockholders. It is a transactions in which a firm buys back shares of its own stock, thereby decreasing shares outstanding and increasing the stock price.
Repurchase by direct negotiation involves purchasing shares from a major shareholder often at a premium over market price.
Repurchase shares: is a way companies uses cash to buy shares of its own outstanding stock, shares are held and usually resold if company needs to raise money in the future.
Computer equipment was acquired at the beginning of the year at a cost of $65,000 that has an estimated residual value of $3,800 and an estimated useful life of 8 years. (1)Determine the (a) depreciable cost for straight rate, (b) straight-line rate, and (c) annual depreciation for the straight line rate (d) double declining balance depreciation amount for 1st year (2) Journalize the sale of the equipment at the end of the 4th year for $20,000 cash, if using the straight line rate.
Answer:
a) Depreciable cost = $61,200
b) Straight-line rate = 12.5%
c) Annual depreciation for the straight-line rate is:
$7,650.
d) The double-declining balance depreciation amount for the 1st year is:
$15,300.
e) Journal Entry of sale of equipment at the end of the 4th year for $20,000, using the straight-line rate:
Debit Sale of Equipment $65,000
Credit Equipment $65,000
To record the transfer of the equipment account.
Debit Accumulated Depreciation $30,600
Credit Sale of Equipment $30,600
To record the transfer of accumulated depreciation to the account.
Debit Cash Account $20,000
Credit Sale of Equipment $20,000
To record the cash received from the sale.
Debit Profit and Loss Account $14,400
Credit Sales of Equipment $14,400
To record the loss on sale of equipment.
Explanation:
a) Data and Calculations:
Cost of computer equipment = $65,000
Estimated residual value = 3,800
Depreciable value = $61,200
Estimated useful life = 8 years
Annual depreciation expense = $7,650 ($61,200/8) or $61,200 * 12.5%
Depreciable cost = $61,200 ($65,000 - $3,800)
Straight-line rate = 12.5% (100%/8)
Double-declining rate = 12.5% x 2 = 25%
Depreciation amount for the 1st year = $15,300 ($61,200 * 25%)
Book value of asset at the end of the 4th year, straight-line method:
Cost of equipment = $65,000
Accumulated Depreciation = $30,600 ($7,650 * 4)
Book value = $34,400
Sales proceed = $20,000
Loss on sale of asset = $14,400 ($34,400 - $20,000)
Balance Sheet October 31 Assets Cash $ 36,500 Accounts receivable 87,000 Merchandise inventory 195,300 Property, plant and equipment, net of $624,000 accumulated depreciation 925,000 Total assets $ 1,243,800 Liabilities and Stockholders' Equity Accounts payable $ 259,000 Common stock 760,000 Retained earnings 224,800 Total liabilities and stockholders' equity $ 1,243,800 Q: What is the cost of December merchandise purchases
Answer:
so hard so hard i cant do this omgod so hard thos is your mom can answer this lol its funny
make this simple and not hard i cant answer this
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $14 per share 10 years from today and will increase the dividend by 8 percent per year thereafter. If the required return on this stock is 14 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
the current price of the stock is $71.75
Explanation:
The computation of the current stock price is shown below:
Price at year 9 is
= Dividend ÷ (required rate of return - growth rate)
= $14 ÷ (14 - 8%)
= $233.33
Now the current price of the stock is
= Price at year 9 ÷ (1 + required rate of return)^number of years
= $233.33 ÷ (1 + 0.14)^9
= $71.75
Hence, the current price of the stock is $71.75
The average wage of workers increases in a purely competitive industry. This change will result in (I) increase in marginal cost for the firms in the industry (II) increase in average variable cost for firms in the industry (III) increase in average fixed cost for firms in the industry (IV) increase in the industry supply curve
Answer:
The correct option is (I) increase in marginal cost for the firms in the industry
Explanation:
According to the given scenario, when there is a rise in increase in the workers wages in a purely competitive industry so the production cost would also rise that results in an increment in the marginal cost also the maximize profit arises when the marginal cost is equivalent to the marginal revenue
Therefore as per the given scenario, the correct option is (I)
In one hour of labor input, South Korea can produce either 100 computer chips or 50 bed linens. In the U.S., in one hour of labor input, either 150 computer chips or 100 bed linens can be made. Select the correct response below. Group of answer choices S. Korea has a comparative advantage in computer chip manufacturing. The U.S. has an absolute advantage in bed linen manufacturing. All of these are correct The U.S. has a comparative advantage in bed linen manufacturing. The U.S. has an absolute advantage in computer chips manufacturing.
Answer: All of these are correct
Explanation:
South Korea
Opportunity cost of Computer chips = 50/100 = 0.2 bed linens
Opportunity cost of bed linens = 100/50 = 2 computer chips
USA
Opportunity cost of Computer chips = 100/150 = 0.67 bed linens
Opportunity cost of bed linens = 150/100 = 1.5 computer chips
Country with Comparative advantage in the production of a good is one that incurs the lower opportunity cost.
Country with Absolute advantage is county that produces the most quantity of a good or service.
Therefore;
US has Absolute advantage in both Computer chips and Bed linens.
South Korea has comparative advantage in Computer chips.
US has comparative advantage in bed linen manufacturing.
A manager must decide how many machines of a certain type to buy. The machines will be used to manufacture a new gear for which there is increased demand. The manager has narrowed the decision to two alternatives: buy one machine or buy two. If only one machine is purchased and demand is more than it can handle, a second machine can be purchased at a later time. However, the cost per machine would be lower if the two machines were purchased at the same time. The estimated probability of low demand is .30, and the estimated probability of high demand is .70. The net present value associated with the purchase of two machines initially is $75,000 if demand is low and $130,000 if demand is high. The net present value for one machine and low demand is $90,000. If demand is high, there are three options. One option is to do nothing, which would have a net present value of $90,000. A second option is to subcontract; that would have a net present value of $110,000. The third option is to purchase a second machine. This option would have a net present value of $100,000. How many machines should the manager purchase initially
Answer:
BUY TWO MACHINES
Explanation:
Calculation for how many machines should the manager purchase initially
BUY ONE MACHINE =(High demand 0.7*100,000)+(Low demand 0.3*90,000)
BUY ONE MACHINE =70,000+27,000
BUY ONE MACHINE=97,000
Note :High demand 100,000 is the Average of Do nothing ,Tomorrow Sub-contract and Buy second machine
High demand=90,000+110,000+100,000
High demand=300,000/3
High demand=100,000
BUY TWO MACHINES
High demand =(0.7 x 130000)
High demand= 91,000
Low demand= (0.3 x 75000)
Low demand=22,500
Hence,
BUY TWO MACHINES= (91,000 + 22,500)
BUY TWO MACHINES=113,500
Based on the above calculation we can see that
the expected payoff from BUY ONE MACHINE is 97,000 while that of BUY TWO MACHINES is 113,500 which means that BUY TWO MACHINES is higher hence, the manager should BUY TWO MACHINES today.
The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are as follows: Standard Costs Direct materials 1,040 kilograms at $8.75 Actual Costs Direct materials 2,000 kilograms at $8.00 The direct materials price variance is a.$2,750 favorable b.$2,750 unfavorable c.$1,500 unfavorable d.$1,500 favorable
Answer:
$2,250 favorable
Explanation:
The direct material price variance is computed as;
= ( Standard price - Actual price ) × Actual quantity
Given that;
Standard price = $8.75
Actual price = $8
Actual quantity = 3,000 units
Direct material price variance
= ( $8.75 - $8 ) × 3,000
= ( $0.75 ) × 3,000
= $2,250 favorable
If two identifiable markets differ with respect to their price elasticity of demand and resale is impossible, a firm with market power will Group of answer choices Set price equal to marginal cost in both markets. Set price so as to equate the elasticity of demand across markets. Set a higher price in the market that is more elastic. Set a lower price in the market that is more price elastic.
Answer: Set a lower price in the market that is more price elastic.
Explanation:
It would be in the best interest of the firm with market power to set a lower price if the market is more price elastic.
Price elasticity is the measure of how much quantity demanded changes in response to a change in price.
If the firm with market power sets a lower price in a market that is more price elastic, it can expect that the quantity demanded will increase more which can give a higher profit.
If a preferred stock from Pfizer Inc. (PFE) pays $4.00 in annual dividends, and the required return on the preferred stock is 8.00 percent, what's the value of the stock?
a. $50.00
b. $0.32
c. $32.00
d. $0.50
Answer:
Option a ($50.00) seems to be the right approach.
Explanation:
The given values are:
Annual dividend is,
= $4.00
Required return is,
= 8.00% i.e., 0.08
By using the formula, we get
⇒ [tex]Value \ of \ the \ stock=\frac{Annula \ Dividend}{Required \ return}[/tex]
On putting the above given values, we get
⇒ [tex]=\frac{4.00}{0.08 }[/tex]
⇒ [tex]=50[/tex] ($)
In terms of dividend payment procedures, the payment date refers to the date: Group of answer choices upon which the stock pays an extra dividend. on which the firm actually sends the dividend to investors. on which the right to the current dividend no longer accompanies the stock. on which a firm's board of directors issues a statement declaring the dividend.
Answer:
In terms of dividend payment procedures, the payment date refers to the date:
on which the firm actually sends the dividend to investors.
Explanation:
There are three dates with regard to the payment of dividends. The first date is the declaration date when the board of directors of the company decides to pay the dividends to stockholders. The second date is the date of record when the records are checked to establish the stockholders entitled to receive dividends. The last is the payment date when actual payment of the dividend is made to the investors through the issue of dividend warrants or certificates.
he Tattle Teller has a printing press sitting idly in its back room. The press has no market value to another printer because the machine utilizes old technology. The firm could get $250 for the press as scrap metal. The press is six years old and originally cost $148,000. The current book value is $2,570. The president of the firm is considering a new project and feels he can use this press for that project. What value, if any, should be assigned to the press as an initial cost of the new project
Answer: $250
Explanation:
The value that should be assigned to the press as an initial cost of the new project will simply be the relevant cost which has to.do with the opportunity cost that's what is forgone for something else to happen.
In this scenario, the value that should be assigned to the press as an initial cost of the new project will be $250 which is the value that the firm could get for the press as scrap metal.
Sheridan Company purchased a depreciable asset for $567000. The estimated salvage value is $29000, and the estimated useful life is 10000 hours. Carson used the asset for 1700 hours in the current year. The activity method will be used for depreciation. What is the depreciation expense on this asset in the current year
Answer:
Annual depreciation= $91,460
Explanation:
Giving the following information:
Purchase price= $567,000
Salvage value= $29,000
Useful life in hours= 10,000
To calculate the depreciation per year using the activity method, we need to use the following formula:
Annual depreciation= [(original cost - salvage value)/useful life of production in hours]*hours operated
Annual depreciation= [(567,000 - 29,000) / 10,000]*1,700
Annual depreciation= 53.8*1,700
Annual depreciation= $91,460
Recently, Galaxy Corporation lowered its allowance for doubtful accounts by reducing bad debt expense from 2% of sales to 1% of sales. Ignore taxes. What are the immediate effects on operating income
Answer:
Lower bad debt expenses will result in higher operating income. The corporation operating cash flow is actually not affected until Galaxy actually collects the receivables.
In this case:
- The effect on Operating income would be High
- The effect on Operating cash flows is No effect
Assume that President Trump develops an executive agreement with Russia this month, which will reduce taxes on imports from the country as way to promote cordial international business interests. This executive agreement is directly in conflict with a foreign tax treaty issued by Congress in May of last year. Assuming the president has the power to develop this agreement what is the likely outcome? A. The congressional treaty is discriminatory on its face and will be deemed unconstitutional B. The President's order will supercede the congressional treaty C. The President's order is in direct conflict with Congress' enumerated powers to tax and therefore will be struck down D. The congressional treaty will be upheld
Answer:
C. The President's order is in direct conflict with Congress' enumerated powers to tax and therefore will be struck down
Explanation:
An executive agreement supersedes state's law, but it cannot supersede federal laws or treaties enacted by congress. The president does not need the senate's approval for an executive agreement, but it cannot go against a treaty that was established by congress. The foreign tax treaty that was approved by congress is legally binding.
Suppose labour is available to a firm at a cost of $ 15per hour. Also, suppose that employing another hour of labour adds 3 units to output, and any amount of output can be sold for $10 per unit.
To the nearest dollar, an additional hour of labour would add $___
nothing in additional revenue to the firm. Your answer should be a whole number.
Answer:
$30
Explanation:
Additional hour gives 3 units of output. Each is sold for $10. The total revenue for the additional labour hour would be 3 units x $10 for each.
=$10 x 3
=$30
Question 4 of 10
Charging a lower price per unit for purchases of more units is called a
A. seasonal discount
B. quantity discount
C. sale price
D. stocking allowance
A company used the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable $ 445,000 Debit Allowance for Doubtful Accounts 1,350 Debit Net Sales 2,200,000 Credit All sales are made on credit. Based on past experience, the company estimates 2.0% of its net sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense
Answer:
Dr Bad Debt Expense $44,000
Cr Allowance for Doubtful Accounts $44,000
Explanation:
Preparation of What adjusting Journal entry should the company make at the end of the current year to record its estimated bad debts expense
Based on the information given the adjusting Journal entry that the company should make at the end of the current year to record its estimated bad debts expense will be:
Dr Bad Debt Expense $44,000
Cr Allowance for Doubtful Accounts $44,000
(Net Sales 2,200,000*Estimated 2.0% of net sales)
(Being to record estimated bad debts expense)
**ECONOMICS**A high level of productivity means that a worker:
A. creates a lot of something quickly.
B. has skills that are worth a lot of money.
C. is a member of a worker organization.
D. works in a career with a lot of competition.
Answer:A
Explanation:creates a lot of something quickly/just took the test
Answer: A. Creates a lot of something quickly
Explanation: I just took the test on Ap ex
Pfizer Inc., a pharmaceutical company, reported Net income for fiscal 2007 of $8,144 million, Retained earnings at the start of the year of $49,669 million and dividends of $8,153 million. If there were no other transactions during the year that affected retained earnings, what was the balance of retained earnings at the end of the year
Answer:
$49,660 million
Explanation:
The computation of retained earnings at the end of the year is shown below;
= Beginning retained earnings + Net income - Dividends
Given that;
Beginning retained earnings = $49,669 million
Net income = $8,144million
Dividend = $8,153
Balance of retained earnings at the end of the year
= $49,669 + $8,144 - $8,153
= $49,660 million