So, the total cost of each unit is $94 + $20 = $114.
Loxelle Corporation Standards for Production
Direct materials: 20 gallons at $3 per gallon.
Direct labor: 4 hours at $8.50 per hour.
Loxelle: Budgeted fixed costs at $200,000.
Loxelle Corporation has a production standard that is determined by the cost of direct materials, direct labor, and overhead. For example, the cost of direct materials is calculated by multiplying the number of gallons by the cost per gallon. In this case, the cost of direct materials is 20 x $3 = $60.
Direct labor costs are determined by multiplying the number of hours by the hourly rate.
So the direct labor cost for each unit is 4 x $8.50 = $34.
Therefore, the total cost for each unit of production is $60 + $34 = $94.Overhead costs, such as rent and utilities, are budgeted as fixed costs.
Therefore, the budgeted fixed costs for Loxelle are $200,000. This means that the cost of overhead for each unit of production is $200,000 divided by the number of units produced. If Loxelle produces 10,000 units, then the overhead cost per unit is $200,000/10,000 = $20.
So, the total cost of each unit is $94 + $20 = $114.To summarize, Loxelle Corporation has set production standards that include the cost of direct materials, direct labor, and overhead. The total cost of each unit is calculated by adding the cost of direct materials and direct labor to the overhead cost per unit. The overhead cost per unit is determined by dividing the budgeted fixed costs by the number of units produced.
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PDCA, developed by Shewhart, stands for which of the following? Prepare-Develop-Create-Assess Problem-Do-Continue-Act Problem-Develop Solution-Check-Act Plan-Develop-Check-Accept Plan-Do-Check-Act
PDCA, developed by Shewhart, stands for "Plan-Do-Check-Act."
What is the PDCA mean?PDCA (plan-do-check-act, sometimes seen as plan-do-check-adjust) is a repetitive four-stage model for continuous improvement (CI) in business process management. The PDCA model is also known as the Deming circle/cycle/wheel, Shewhart cycle, control circle/cycle, or plan–do–study–act (PDSA).
The PDCA cycle is also known as PDSA cycle (where S stands for Study). It was an early means of representing the task areas of traditional quality management. The cycle is sometimes referred to as the Shewhart / Deming cycle since it originated with physicist Walter Shewhart at the Bell Telephone Laboratories in the 1920s. W. Edwards Deming modified the Shewhart cycle in the 1940s and subsequently applied it to management practices in Japan in the 1950s.
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Video Concepts, Inc. (VCI) markets video equipment and film through a variety of retail outlets. Presently, VCI is faced with a decision as to whether it should obtain the distribution rights to an unreleased film titled Touch of Orange. If this film is distributed by VCI directly to large retailers, VCI's in- vestment in the project would be $150,000. VCI estimates the total market for the film to be 100,000 units. Other data available are as follows: Cost of distribution rights for film $125,000 Label design 5,000 Package design 10,000 Advertising 35,000 Reproduction of copies (per 1,000) 4,000 Manufacture of labels and packaging (per 1,000) 500 Royalties (per 1,000) 500 1 VCI's suggested retail price for the film is $20 per unit. The retailer's mar- gin is 40 percent. a. What is VCI's unit contribution and contribution margin? b. What is the break-even point in units? In dollars? C. What share of the market would the film have to achieve to earn a 20 percent return on VCI's investment the first year?
The unit contribution for Video Concepts, Inc. (VCI) is $10 per unit, with a contribution margin of 50%.
The break-even point for the film Touch of Orange is 37,500 units, which translates to $750,000 in sales revenue.
To earn a 20% return on VCI's investment in the first year, the film would need to capture 50% of the market, selling 50,000 units.
The unit contribution is calculated by subtracting the variable costs per unit from the selling price per unit. In this case, the selling price per unit is $20, and the variable costs per unit include reproduction costs, packaging costs, and royalties, which sum up to $5. Thus, the unit contribution is $20 - $5 = $15.
The contribution margin is the percentage of each dollar of revenue that contributes to covering fixed costs and generating profit. It is calculated by dividing the unit contribution by the selling price per unit and multiplying by 100. In this case, the unit contribution is $15, and the selling price per unit is $20. Therefore, the contribution margin is ($15 / $20) * 100 = 75%.
The break-even point in units is the point at which the total contribution from sales equals the fixed costs. To find the break-even point, we divide the fixed costs by the unit contribution. In this case, the fixed costs include the investment in the project ($150,000) and the cost of distribution rights ($125,000), totaling $275,000. Dividing this by the unit contribution of $15 gives us 18,333.33 units. Since we cannot sell a fraction of a unit, we round up to 18,334 units.
To calculate the break-even point in dollars, we multiply the break-even point in units by the selling price per unit. Therefore, the break-even point in dollars is 18,334 units * $20 = $366,680.
To earn a 20% return on VCI's investment in the first year, we need to determine the sales volume necessary to achieve this. Considering the investment in the project ($150,000), VCI would need to earn a total of $180,000 in profit (20% of $150,000) in the first year. Since the unit contribution is $15, we divide the required profit by the unit contribution to find the number of units needed: $180,000 / $15 = 12,000 units. This represents 12,000 / 100,000 = 12% of the total market. Therefore, to achieve a 20% return, the film would need to capture a larger market share than 12%.
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18) What are the benefits of separating inputs from formulae
when building financial models in Excel?
i) Adds flexibility
ii) Ability to run multiple scenarios
iii) Changes in assumptions flow through
When building financial models in Excel, separating inputs from formulas offers several benefits:
i) Adds flexibility: By separating inputs (such as assumptions, variables, and constants) from formulas, you can easily modify the inputs without changing the underlying formulas. This allows for greater flexibility in analyzing different scenarios and making adjustments to the model as needed.
ii) Ability to run multiple scenarios: When inputs are separated from formulas, it becomes easier to run multiple scenarios by simply changing the input values. This enables you to analyze the impact of different assumptions on the model's outputs and make informed decisions based on the various scenarios generated.
iii) Changes in assumptions flow through: When inputs are linked to formulas, any changes made to the input values automatically flow through to the relevant formulas. This ensures that the model remains consistent and saves time by eliminating the need to manually update all formulas affected by the changed inputs.
Overall, separating inputs from formulas in financial models enhances flexibility, facilitates scenario analysis, and ensures changes in assumptions flow through the model accurately and efficiently. It promotes transparency, ease of use, and adaptability in financial modeling processes.
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Identify the statements as True / False
1- Sending a covering letter with a job application ensures that the candidate will get the job.
2- Paragraph 1 of the covering letter markets your skills and targets them to the position.
3- It is good idea to avoid using soft skills unless you provide specific examples.
4- In a traditional interview the applicant is asked a variety of typical questions.
Of the given statements, 2 and 4 are true while 1 and 3 are false.
1- False: Sending a covering letter with a job application does not ensure that the candidate will get the job. The decision to hire a candidate is based on various factors, including their qualifications, experience, and performance in the interview process.
2- True: Paragraph 1 of the covering letter is typically used to market the candidate's skills and align them with the requirements of the position. It is an opportunity to make a strong first impression and grab the attention of the employer.
3- False: It is not a good idea to avoid using soft skills in a covering letter. Soft skills are important in the workplace and can demonstrate qualities such as communication, teamwork, and problem-solving. However, it is recommended to provide specific examples or evidence of how these soft skills have been applied in previous experiences.
4- True: In a traditional interview, the applicant is commonly asked a variety of typical questions to assess their suitability for the role. These questions may cover areas such as their background, experience, skills, and ability to handle specific situations.
In conclusion, while sending a covering letter is important, it does not guarantee a job offer. Paragraph 1 of the covering letter should market the candidate's skills. Soft skills can be included in the covering letter, preferably with specific examples. In a traditional interview, typical questions are asked to evaluate the candidate.
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9. use the below table for all question
（a）Barb Muller wins the lottery. She wins $20,000 per year to be
paid for 10 years. The state offers her the choice of a cash settlement now instead o
Future Value of $1 Per. 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 1 1.010 1.030 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.120 2 1.020 3 1.030 4 1.041 1.020 1.040 1.061 1.061 1.093 1.082 1.126 1.170 1.051 1
The given table shows the future value of $1 per year for various interest rates ranging from 1% to 11%. The future value of $1 represents the value of receiving $1 in the future based on the given interest rate.
Based on the given table, we can observe that as the interest rate increases, the future value of $1 also increases. This implies that the higher the interest rate, the greater the future value of a given amount of money. Understanding the concept of future value is important in various financial calculations. It helps in determining the worth of future cash flows, such as investments, loans, annuities, or lottery winnings. By multiplying the future value factor from the table by the amount of money involved, we can calculate the future value of a sum of money over a given time period.
For example, in Barb Muller's case, if she chooses to receive $20,000 per year for 10 years, she can calculate the future value of this stream of cash flows using the appropriate interest rate from the table. By multiplying the future value factor corresponding to the interest rate by $20,000, she can determine the total future value of the cash flows.
It is worth noting that the future value factor represents the time value of money, which accounts for the potential earning power of invested funds or the cost of borrowing. The higher the interest rate, the more valuable future cash flows become, as they have the potential to earn or accrue more interest over time. Therefore, understanding the future value concept and using the appropriate interest rate is crucial in financial decision-making and planning.
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$1.2 million revolving credit at 12% stated interest rate for 1 year; borrowing for the year was $900,000; a required 6% compensating balance on borrowed funds; and a 0.6% commitment fee on $300,000 of unused credit. What is the cost of borrowing?
The cost of borrowing can be calculated by considering the stated interest rate, compensating balance requirement, and commitment fee.
In this case, we have a $1.2 million revolving credit at a 12% stated interest rate for 1 year. However, only $900,000 was borrowed. There is also a required 6% compensating balance on borrowed funds, and a 0.6% commitment fee on $300,000 of unused credit.
To calculate the cost of borrowing, we need to consider the interest paid on the borrowed funds, the amount tied up in the compensating balance, and the commitment fee on the unused credit.
The interest paid on the borrowed funds is calculated as $900,000 * 12% = $108,000.
The amount tied up in the compensating balance is calculated as $900,000 * 6% = $54,000.
The commitment fee on the unused credit is calculated as $300,000 * 0.6% = $1,800.
Therefore, the total cost of borrowing is $108,000 (interest) + $54,000 (compensating balance) + $1,800 (commitment fee), which amounts to $163,800.
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According to U.S. law, the person(s) overseeing all court cases related to immigration law is/are…
a. the President.
b. the U.S. Attorney General.
c. Supreme Court justices.
d. administrative law judges in each U.S. state.
According to U.S. law, the person(s) overseeing all court cases related to immigration law is/are the administrative law judges in each U.S. state.
Immigration court cases are handled by the Executive Office for Immigration Review (EOIR), which is a part of the U.S. Department of Justice.
The EOIR operates immigration courts throughout the United States, and these courts are presided over by administrative law judges. These judges are responsible for hearing and deciding immigration-related cases, including removal proceedings and asylum claims.
They have the authority to make legal determinations hear evidence, and issue rulings on immigration matters.
However, it's important to note that their decisions can be appealed to the Board of Immigration Appeals (BIA), which is the highest administrative body for interpreting and applying immigration laws.
The Supreme Court justices are responsible for overseeing all court cases related to immigration law in the United States. They have the final authority to interpret and apply the law in these cases.
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Thursday! There were 9 Valentine's candies in the jar. Dad took out 4 pieces and ate them. How many pieces were left in the jar? WHAT INFORMATION DO I NEED?
There are 5 pieces of candy left in the jar.
How many candies remain in the jar?After Dad took out and ate 4 pieces of candy from the jar on Thursday, the number of candies left is determined by subtracting the number taken from the initial total. Since there were initially 9 Valentine's candies in the jar, subtracting 4 from 9 gives us 5. Therefore, there are 5 pieces of candy left in the jar. It's important to consider the initial number of candies and subtract the amount that was taken in order to determine the remaining quantity accurately.
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Use the following data provided by the balance sheet for Mecklenburg Corporation and compute the Net working capital. assets Current assets = 250,000 Long-term assets (net) = 1,590,000 Total assets = 1,840,000 Liabilities & Equities Current liabilities = 175,000 Long-term liabilities = 980,000 Total liabilities = 1,155,000 Shareholders' equity = 685,000 Total liabilities & equity = 1,840,000 Bradley and Sons' income statement included the following data: Sales $350,000 Cost of goods sold = $120,000 Administrative expenses = $40,000 Depreciation = $20,000 Interest expense = $10,000 If the corporate income tax rate is 20%, what is the firm's net income?
Net working capital for Mecklenburg Corporation is calculated by subtracting current liabilities from current assets. In this case, the current assets amount to $250,000, and the current liabilities amount to $175,000. Therefore, the net working capital is $75,000.
Net working capital is a measure of a company's liquidity and its ability to meet short-term obligations. It represents the funds available to the company to finance its day-to-day operations. A positive net working capital indicates that the company has sufficient current assets to cover its current liabilities. In this case, Mecklenburg Corporation has a positive net working capital of $75,000, suggesting that it has a buffer of funds to manage its short-term financial obligations.
In summary, Mecklenburg Corporation's net working capital is $75,000, indicating its ability to meet its short-term financial obligations with a surplus of funds.
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You decide to build a shelter to protect you from the tropical rainstorms. This will require 90 logs in inventory. Trade with Friday until you can achieve an inventory of 90 logs. Remember you still need to collect 2000 fish calories and 32 logs for a fire to survive the night and Friday will only trade if he is made better off than he would have been on his own.
In order to build a shelter and meet the necessary requirements for survival, ensuring that both of us benefit from the exchange. To achieve an inventory of 90 logs, I would need to negotiate and trade with Friday until we reach that desired level.
First, I would assess Friday's needs and resources. If Friday values other items or resources more than the logs, I can offer him something in exchange that he finds valuable. For example, if Friday needs food, I could offer him a portion of the 2000 fish calories I need to collect. This way, Friday would be better off by receiving food in exchange for the logs. Throughout the trade process, it is important to consider Friday's preferences and ensure that he perceives the exchange as beneficial. By offering mutually beneficial trades and considering Friday's needs, we can establish a fair exchange that satisfies both parties. In addition to the logs, I also need to collect 2000 fish calories and 32 logs for a fire to survive the night. Therefore, I would aim to negotiate trades that allow me to acquire these additional resources while maintaining a sufficient inventory of 90 logs for building the shelter.
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4-In January 2018, Sky Bhd sold goods on credit to Entity A amounting to RM 19,000. The cost of goods sold is RM 11,000. The account is due is in 60 days. On day 60, Entity A delivers cash to Sky Bhd for settlement of the account. a-Are the goods sold to Entity A current assets? (3m) b-Are the assets sold items of receivables? (3m) c-What would be the amount initially measured as trade receivables? (4m)
The goods sold to Entity A are not current assets but inventory. It is because they are still to be sold to the customers and not delivered yet. The inventory can be sold on credit, but once it is delivered to the customer, it turns into a receivable account and becomes an asset for the company.
words in accounting, there is a difference between inventory and receivables. Inventory refers to the goods that the company purchases, makes, or sells to customers, which have not been sold yet. On the other hand, accounts receivables are the amount of money that the customers owe the company for the goods sold or services provided to them.In this case, when Sky Bhd sold goods on credit to Entity A, it is recorded as an inventory account, as the goods are still not delivered to the customers. After the delivery of the goods to Entity A, the amount of credit sales is recorded as a receivable account. Since Sky Bhd sells goods on credit, they record the initial amount of trade receivables as RM 19,000, which is the value of goods sold on credit to Entity
Goods sold on credit are recorded as inventory until they are delivered to the customers. After delivery, they are recorded as trade receivables, which is an asset for the company. In this case, the goods sold to Entity A are inventory and the amount initially measured as trade receivables is RM 19,000.
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after the terminal speed has been reached, at what rate is work being done on the bar by gravity?
After the terminal speed has been reached, the rate at which work is done on the bar by gravity is zero. The rate at which work is done on the bar by gravity is zero.
Terminal speed is the steady speed reached by an object when it is dropped through a fluid or gas.
At this speed, the frictional resistance force acting on the object is equal to the driving force, and the object stops accelerating and falls at a constant speed.This can be obtained by the following equation:
vt = √((2mg)/(pAC))where, vt is the terminal velocity, m is the mass of the object, g is the acceleration due to gravity, p is the density of the fluid, A is the cross-sectional area of the object, and C is the drag coefficient.
For an object falling through a fluid, work is done on the object by gravity until the object reaches terminal velocity. After that, the gravitational force and the resistance force are equal and opposite, so there is no further acceleration, and thus no further work is done. Therefore, after the terminal speed has been reached, the rate at which work is done on the bar by gravity is zero.
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Justify to the CEO what type of costing method (job-order,
process costing, variable costing and/or activity-based costing)
you would recommend AFC use. Assume that all of the items produced
are sold.
Due to the assumption that all items produced are sold, it is recommended to use variable costing. This is because all fixed manufacturing costs have been treated as period costs, meaning that they are not assigned to products. This would give a more accurate reflection of the production costs and help AFC to determine the appropriate price for their products.
In order to recommend a costing method that AFC (Assume Free Company) should use, we first need to understand what each method entails. Job-order costing: This is a costing method where production costs are determined for each batch of goods. It is applicable where production is done in batches or orders, for example, a tailor who makes dresses. Process costing:This method is suitable when production is continuous, and costs are incurred for producing homogeneous products in large quantities. In this method, costs are allocated uniformly to the entire batch of goods produced.
Variable costing:This method is based on the concept that only direct costs should be assigned to products. Direct costs include direct materials, direct labor, and variable manufacturing overheads. All other costs are treated as period costs.Activity-based costing: This method allocates overheads to products based on the activities required to produce the product. It is suitable where the production process involves several activities that consume overheads.
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Layout decisions affect quality and competitiveness.
Select one:
True
False
True. Layout decisions have an impact on quality and competitiveness.
The statement is true. Layout decisions play a crucial role in determining the efficiency, productivity, and overall performance of an organization. The layout refers to the arrangement of physical resources such as machinery, equipment, workstations, and departments within a facility.
The layout design directly affects the flow of materials, information, and people within the organization. By carefully planning and designing the layout, organizations can optimize the utilization of resources, minimize waste, and improve operational efficiency. This, in turn, has a direct impact on the quality of products or services delivered.
A well-designed layout can enhance workflow, reduce production bottlenecks, and improve communication and coordination among employees. It can also contribute to creating a safer and more ergonomic work environment, leading to improved employee satisfaction and productivity. All these factors collectively contribute to enhancing the quality of the organization's outputs.
Furthermore, layout decisions also influence the competitiveness of the organization. An efficient layout can result in cost savings, shorter lead times, faster response to customer demands, and increased customer satisfaction. It allows the organization to be more agile and responsive to market changes, thereby gaining a competitive edge over rivals.
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Commons, Inc. provides the following information for 2024: Net income $34,000 Market price per share of common stock $18/share Dividends paid $0.85/share Common stock outstanding at Jan. 1, 2024 130,000 shares Common stock outstanding at Dec. 31, 2024 170,000 shares The company has no preferred stock outstanding. Calculate the dividend yield for common stock. (Round your answer to two decimal places.) O A. 4.72% OB. 4.96% O C. 3.44% OD. 1.28%
Dividend Yield refers to the measurement of the annual dividend distributed to common stock shareholders in relation to the current share price. It is calculated by dividing the yearly dividend per share by the market price per share.
Commons, Inc. provided the following information for 2024:Net income $34,000Market price per share of common stock $18/share Dividends paid $0.85/share Common stock outstanding at Jan. 1, 2024 130,000 shares Common stock outstanding at Dec. 31, 2024 170,000 shares The dividend yield for common stock is calculated as follows: Dividend Yield = (Annual dividend per share / Market price per share)*100Annual dividend per share is calculated as:
Dividend paid per share = $0.85*170,000 shares = $144,500Annual dividend per share = Dividend paid per share / Number of shares outstanding = $144,500 / ((130,000 shares + 170,000 shares) / 2) = $0.725Therefore,Dividend Yield = ($0.725 / $18)*100Dividend Yield = 4.03%Therefore, option B (4.96%) is the correct answer.
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1. a) "Passion, Idea, and Feasible Technology" are the foundation of any entrepreneurial journey- Explain the statement with examples (both successful and unsuccessful). b) Why do you think a Disciplined Approach to entrepreneurship is needed to start a business? Give an example of Disciplined Entrepreneurship Canvas (i.e. from your business idea).
a) The statement "Passion, Idea, and Feasible Technology" are the foundation of any entrepreneurial journey" highlights that entrepreneurs need a blend of three essential elements to make their entrepreneurial journey successful. These three elements include passion, idea, and feasible technology. Here are some examples of successful and unsuccessful entrepreneurial journeys based on these elements.
Examples of Successful Entrepreneurial Journeys:
Apple - Steve Jobs's passion for designing sleek and innovative technology, coupled with his idea of designing user-friendly and unique devices, has been key to Apple's success. Their ability to come up with feasible technology that allows them to create innovative products has helped make them the market leader.
Amazon - Jeff Bezos' passion for selling books and providing excellent customer service has been key to Amazon's success. Amazon's idea of creating an online bookstore and providing customers with a hassle-free shopping experience has been a game-changer for online retail.
Examples of Unsuccessful Entrepreneurial Journeys:
Toys "R" Us - Despite being a well-established retail chain, Toys "R" Us failed to keep up with the changing times. Their idea of building large toy stores in prime locations, combined with their lack of innovation, eventually led to their failure.
Blockbuster - Blockbuster was a video rental giant that was eventually rendered obsolete by the advent of digital media. They failed to keep up with the changing times and did not have a feasible technology strategy to keep up with digital competitors such as Netflix.
b) A disciplined approach to entrepreneurship is essential when starting a business because it helps to create a well-structured and systematic approach that helps to minimize risks and increase the chances of success. A disciplined approach to entrepreneurship is also important because it allows entrepreneurs to work with clear objectives, strategies, and deadlines. The disciplined approach helps to ensure that entrepreneurs are not distracted by the myriad of challenges that come with starting a business.
An example of the disciplined entrepreneurship canvas from my business idea includes:
The business idea: A mobile app that connects people with the same interests, hobbies, and lifestyles.
Customer Segments: Individuals from all walks of life who share similar interests, hobbies, and lifestyles.
Value Propositions: A mobile app that connects like-minded individuals and allows them to engage in activities that they enjoy together.
Channels: Online advertisements, social media, and app stores.
Customer Relationships: Customer feedback and service through the app's chatbot.
Revenue Streams: Advertisements, subscriptions, and in-app purchases.
Key Resources: The app's technology and human resources.
Key Activities: Research and development, app design, and maintenance.
Conclusion:
In conclusion, passion, ideas, and feasible technology are critical elements in any entrepreneurial journey. Examples of successful entrepreneurial journeys that highlight these elements include Apple and Amazon. On the other hand, Toys "R" Us and Blockbuster were examples of unsuccessful entrepreneurial journeys. Furthermore, a disciplined approach to entrepreneurship is needed to start a business. The disciplined entrepreneurship canvas is an excellent example of a well-structured and systematic approach that entrepreneurs can use to minimize risks and increase the chances of success.
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Splish Splash Art is a centre that offers children's music and dance lessons. Splish Splash prepares annual financial statements and has a December 31, 2020, year-end. a. On September 1, Splish Spash Art collects $21,200 cash for dance lessons running from September 1, 2020 to December 31, 2020 b. On October 1, Splish Splash Art collects $6,800 cash in advance from the Music Box Inc. ($3,400 per month) to rent its performance stage for the full month of December 2020 and January 2021 c. On October 1, 2020, Splish Splash Art collects $10,700 cash for four months of music lessons for a local private school. The lessons run from October 1, 2020 to January 31, 2021
Splish Splash Art recognizes revenue for dance and music lessons based on the period they are provided, according to the accrual accounting principle.
How does Splish Splash Art account for its revenue from music and dance lessons?Splish Splash Art follows the accrual accounting principle to record revenue from its music and dance lessons. This means that revenue is recognized when it is earned, regardless of when the cash is received. In the given scenario, the three cash transactions are collected in advance for services that will be provided over a specific period.
In the first transaction, Splish Splash Art collects $21,200 cash on September 1 for dance lessons that will run from September 1 to December 31, 2020. Since the lessons are provided over a four-month period, the revenue of $21,200 will be recognized proportionately over that duration.
In the second transaction, Splish Splash Art collects $6,800 cash on October 1 from Music Box Inc. for renting its performance stage for the entire month of December 2020 and January 2021. As the rental service is provided over a two-month period, the revenue of $6,800 will be recognized proportionately over that timeframe.
Finally, in the third transaction, Splish Splash Art collects $10,700 cash on October 1 for four months of music lessons for a local private school, which will run from October 1, 2020 to January 31, 2021. Similar to the previous transactions, the revenue of $10,700 will be recognized proportionately over the four-month period.
By recognizing revenue based on the period services are provided, Splish Splash Art ensures that its financial statements accurately reflect the income earned during a specific time frame. This approach provides a more accurate representation of the company's financial performance and helps stakeholders make informed decisions.
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please answer the correct ans with steps
thank you so much
On a given Hong Kong-Singapore flight, there are 300 seats. Suppose the ticket price is $450 and the number of passengers who reserve a seat but do not show up for departure is normally distributed with mean 40 and standard deviation 14. The net cost of an involuntary boarding denial (if the number of passengers exceeds the number of seats) is $900 (everything considered including the original ticket price). If you sell 350 tickets, what is the probability that you won't need to deal with bumped passengers? 57% 67% 16% 76% O 24%
Let X be the number of passengers who reserve a seat but do not show up for departure. Then X is normally distributed with a mean of 40 and a standard deviation of 14. It is known that the net cost of an involuntary boarding denial is $900.Suppose that 350 tickets are sold. We want to find the probability that there are no bumped passengers. Answer: 24%.
This is equivalent to the probability that at most 300 passengers show up (since there are 300 seats). Let Y be the number of passengers who show up. Then Y = 350 - X. We need to find the probability that Y ≤ 300.P(Y ≤ 300) = P(350 - X ≤ 300) = P(X ≥ 50)We have: Z = (X - 40) / 14 ~ N(0, 1).P(X ≥ 50) = P(Z ≥ (50 - 40) / 14) = P(Z ≥ 0.714).
Using a standard normal table, we have:P(Z ≥ 0.714) = 1 - P(Z < 0.714) = 1 - 0.7611 = 0.2389. Therefore, the probability that there are no bumped passengers is approximately 23.89%.
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The market price in a perfectly competitive industry is P=$115.
Suppose that you have estimated the AVC function for a perfectly competitive firm to be:
AVC = 125-.21Q +.0007Q2
Total fixed cost equal $3,500.
a. Find the profit maximizing output for this perfectly competitive firm at the market
price.
b. Calculate total revenue at the profit maximizing output.
c. Calculate total variable costs at the profit maximizing output.
d. Calculate profits at the profit maximizing output.
e. Should this firm produce at the profit maximizing output or should it shut down? Justify
your answer in words and by using numbers, not just by reporting a rule.
f. Calculate the unique market price below which the firm should shut down. Is your answer
in part e consistent with what you have just found in part d?
To answer the questions, we need to calculate various values based on the given information and the provided AVC function:
AVC = 125 - 0.21Q + 0.0007Q^2 (AVC function)
Fixed Cost (FC) = $3,500
Market Price (P) = $115
a. To find the profit-maximizing output, we need to determine the quantity at which AVC is minimized. This occurs at the minimum point of the AVC curve. Taking the derivative of the AVC function and setting it equal to zero, find the quantity (Q) at which AVC is minimized:
AVC' = -0.21 + 0.0014Q = 0
0.0014Q = 0.21
Q = 150
Therefore, the profit-maximizing output for this firm is 150 units.
b. Total Revenue (TR) can be calculated by multiplying the market price (P) by the profit-maximizing output (Q):
TR = P * Q
TR = $115 * 150
TR = $17,250
Total revenue at the profit-maximizing output is $17,250.
c. Total Variable Costs (TVC) at the profit-maximizing output can be calculated by substituting the value of Q into the AVC function:
AVC = 125 - 0.21Q + 0.0007Q^2
AVC = 125 - 0.21(150) + 0.0007(150)^2
AVC = 125 - 31.5 + 15.75
AVC = $109.25
TVC = AVC * Q
TVC = $109.25 * 150
TVC = $16,387.50
Total variable costs at the profit-maximizing output are $16,387.50.
d. Profits can be calculated by subtracting total costs (TC) from total revenue (TR):
TC = FC + TVC
TC = $3,500 + $16,387.50
TC = $19,887.50
Profits = TR - TC
Profits = $17,250 - $19,887.50
Profits = -$2,637.50
At the profit-maximizing output, the firm is experiencing a loss of $2,637.50.
e. To determine if the firm should produce at the profit-maximizing output or shut down, we need to compare the firm's losses with its fixed costs. If the losses exceed fixed costs, it would be better for the firm to shut down and minimize its losses.
Losses > Fixed Costs
$2,637.50 > $3,500
Since the losses are less than the fixed costs, the firm should continue producing at the profit-maximizing output rather than shutting down. The firm can minimize its losses by operating in the short run.
f. The unique market price below which the firm should shut down can be determined by finding the price at which the firm's losses equal its fixed costs. This occurs when total revenue (TR) equals total costs (TC).
TR = P * Q
TC = FC + TVC
P * Q = FC + TVC
$115 * Q = $3,500 + ($109.25 * Q)
Simplifying the equation, we can solve for Q:
$115Q - $109.25Q = $3,500
$5.75Q = $3,500
Q ≈ 608.7
The unique market price below which the firm should shut down is the price at which Q is approximately 608.7 units.
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The table below illustrates the domestic supply and domestic demand for cars in a small country. The world price of a car is $13,000. Quantity supplied Price Quantity demanded 13,000 $7,000 16,000 13,500 8,000 15,500 14,000 9,000 15,000 14,500 10,000 14,500 15,000 11,000 14,000 15,500 12,000 13,500 16,000 13,000 13,000 16,500 14,000 12,500 a. What is the equilibrium price in this market before the country opens up to trade in autarky)? 4 b. If the country opens up to trade and the world price is $13,000, explain whether this country would import or export cars. c. How does the domestic price change as a result of trade? Explain. d. When the country is open to trade, explain how many cars would the country produce domestically, how many would be consumed domestically, and how many would be exported or imported.
The table shows the domestic supply and demand for cars in a small country.Quantity suppliedPriceQuantity demanded700016000850015500900015000950014500100001450011000140001150012000135001300013000130001350014000125001 b.
If the world price is $13,000 and the country opens up to trade, explain whether this country would import or export cars.As per the table, the equilibrium price in this market before the country opens up to trade is $12,000. Therefore, it is important to understand whether the country would import or export cars if the world price is $13,000 and the country opens up to trade.Importing cars would be cheaper than producing them at home because the world price is lower than the domestic price. Therefore, if the country opens up to trade, it would import cars. c. How does the domestic price change as a result of tradeExplain.The table shows the domestic supply and demand for cars in a small country.The opening of trade is going to have an impact on the price of domestic cars. When the country opens up to trade and allows car imports, the domestic prices will have to be adjusted. Domestic price would decrease because the price of imported cars is $13,000, which is less than the equilibrium price of $12,000. d. When the country is open to trade, explain how many cars would the country produce domestically, how many would be consumed domestically, and how many would be exported or imported.If the country opens up to trade, the domestic prices would fall, causing domestic car manufacturers to reduce the number of cars produced domestically.The number of cars consumed domestically would rise because prices would be cheaper than before, and the number of cars imported would be more than the number of cars exported. Therefore, this country would import cars but would produce fewer domestically.
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Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. (For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.
Using the perpetual inventory system, Warnerwoods Company can keep track of their inventory on a real-time basis. This allows them to make informed decisions about when to reorder products and how much to order.
Warnerwoods Company is using a perpetual inventory system, which is a method of maintaining records that accurately reflect the number of goods that are on hand at any given time. They had several transactions throughout March, including purchases and sales. For specific identification purposes, we know that the March 9 sale was comprised of 80 units from beginning inventory and 340 units from the March 5 purchase, while the March 29 sale was comprised of 40 units from the March 18 purchase and 120 units from the March 25 purchase.
To calculate the ending inventory for the month of March, we need to take into account the units sold and the cost of goods sold. For example, the March 9 sale was comprised of 80 units from beginning inventory and 340 units from the March 5 purchase. The cost of the beginning inventory was $2,800, while the cost of the March 5 purchase was $11,900. This means that the total cost of goods sold for that transaction was $14,700.
We can use this same method to calculate the cost of goods sold for each of the other transactions. Once we have calculated the cost of goods sold for each transaction, we can add them up to get the total cost of goods sold for the month of March. We can then subtract the cost of goods sold from the cost of goods available for sale to get the ending inventory for the month.
In conclusion, using the perpetual inventory system, Warnerwoods Company can keep track of their inventory on a real-time basis. This allows them to make informed decisions about when to reorder products and how much to order. By calculating the ending inventory for the month of March, they can make sure they have enough inventory to meet customer demand while also keeping costs under control.
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Suppose that you are considering subscribing to Economist Analyst Today magazine. The magazine is advertising a one-year subscription for $90 or a two-year subscription for $176. You plan to keep getting the magazine for at least two years. The advertisement says that a two-year subscription saves you $4 compared to buying two successive one-year subscriptions. If the interest rate is 12%, should you subscribe for one year or for two years? (Assume that one year from now a one-year subscription will still be $90.)
A. You should subscribe for one year.
B. You should subscribe for two years.
If the interest rate is 12% then you should subscribe for two years. (Option B)
To determine whether to subscribe for one year or two years, we need to compare the costs and savings associated with each option, taking into account the interest rate.
The one-year subscription costs $90, while the two-year subscription costs $176. The advertisement states that the two-year subscription saves you $4 compared to buying two successive one-year subscriptions.
If we calculate the cost of two successive one-year subscriptions, it would be $90 + $90 = $180. However, the two-year subscription costs only $176, resulting in a savings of $4.
To decide which option is more financially beneficial, we need to consider the time value of money and the interest rate of 12%. Since the two-year subscription costs less and provides the same content for the desired duration, it is the better choice.
By opting for the two-year subscription, you save $4 upfront and avoid the higher cost of two separate one-year subscriptions. Considering the interest rate, the present value of the $4 savings over two years is even higher. Therefore, subscribing for two years is the recommended choice from a financial perspective.
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as a factor of production, capital includes money. group of answer choices
Capital as a factor of production is crucial in every business operation.
Capital is one of the factors of production. Capital, as a factor of production, refers to the wealth required to start and sustain a business operation. This wealth is required to purchase the necessary raw materials, equipment, machinery, and other factors of production that are required for the production process to take place. Capital is also essential for the running of a business as it enables the business to pay its workers and keep up with its ongoing expenses.Capital includes money, and it is one of the most important factors in the production process. Money is essential for purchasing raw materials, machinery, equipment, and other factors of production. Additionally, it is essential for paying workers and keeping up with ongoing business expenses. Without sufficient capital, businesses cannot operate. It is the money that is required to purchase the necessary resources for the production process to take place.
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Please contribute to the following discussion questions in one discussion post:
What are developing states/societies?
How do developing states/societies differ from developed states/societies?
What is development and how do you measure it according to the reading and video?
What do you agree with and why?
Developing states/societies refer to countries or regions that are undergoing the process of economic, social, and political progress. These states often have lower levels of industrialization, infrastructure, and human development compared to developed states/societies.
The main difference between developing and developed states/societies lies in their level of economic development, infrastructure, living standards, and social indicators. Developed states/societies have achieved higher levels of industrialization, technological advancements, and infrastructure development, leading to higher standards of living, better healthcare, education, and overall well-being for their citizens.
Development can be defined as the process of improving the economic, social, and political well-being of a society. It involves enhancing factors such as GDP growth, income distribution, access to education and healthcare, human rights, and environmental sustainability. The reading and video may suggest various indicators to measure development, such as GDP per capita, Human Development Index (HDI), poverty rates, education enrollment rates, life expectancy, and environmental sustainability metrics.
Personally, I agree with the concept of development as a multidimensional process that goes beyond economic growth. It should encompass improvements in the overall well-being and quality of life for individuals within a society. I also find the use of multidimensional indicators like the HDI valuable, as it takes into account factors beyond just economic measures. Assessing development from a holistic perspective can provide a more accurate understanding of the progress made by states/societies.
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Assume an instruction cache miss rate for an application is 2% and the data cache miss rate of 4% where load and store are 20% of the instruction set. Assume further that our CPU is running at 1 GHz and has a CPI of 2 without any memory stalls The main memory access time is 50 ns. a. Determine the overall CPI with the indicated misses b. Suppose we like to add a second level cache with an access time of 10 ns which has an instruction miss rate of 4% and data cache miss of 6% Determine the overall CPI.
a. The overall CPI with the indicated misses. Assuming an instruction cache miss rate of 2% and a data cache miss rate of 4%, the CPI without any memory stalls will be calculated as follows;
Instruction cache miss rate = 2%
Data cache miss rate = 4%
Load and store are 20% of the instruction set, thus,60% of the time data will be fetched from cache (load/store) 40% of the time, instructions will be fetched from cache (1-0.6=0.4)
Therefore, the average memory access time (AMAT) will be:AMAT = Hit time + Miss rate × Miss penalty,
where miss penalty = main memory access time = 50 nsIn the case of instruction fetches, we have:
Hit time = cache access time = unknown
Miss penalty = main memory access time = 50 ns
Miss rate = instruction cache miss rate = 2%
Thus, AMAT = Hit time + Miss rate × Miss penalty = Hit time + 0.02 × 50 = Hit time + 1
For data fetches:
Hit time = cache access time = unknown
Miss penalty = main memory access time = 50 ns
Miss rate = data cache miss rate = 4%
Thus, AMAT = Hit time + Miss rate × Miss penalty = Hit time + 0.04 × 50 = Hit time + 2With the CPI of 2, the following formula is used:
Overall CPI = CPU execution time / Instruction count
Therefore, CPU execution time is the product of instruction count, CPI, and clock cycle time, which is given as follows;
CPU execution time = instruction count × CPI × clock cycle time
The clock cycle time is 1 / clock frequency. Therefore, in this case;
Clock cycle time = 1 / 1 GHz = 1 ns
CPU execution time = instruction count × CPI × clock cycle time= instruction count × 2 × 1 ns= instruction count × 2 ns
Therefore, the overall CPI will be:
Overall CPI = CPU execution time / Instruction count= instruction count × 2 ns / instruction count= 2 nsb. The overall CPI with the second level cache added and the indicated misses
Suppose we like to add a second level cache with an access time of 10 ns which has an instruction miss rate of 4% and data cache miss of 6%. The AMAT for the second-level cache is:
AMAT = Hit time + Miss rate × Miss penalty
where miss penalty = next level memory access time
Thus, the miss penalty for the second level cache is the access time of the main memory, which is 50 ns.
For instruction fetches:
Hit time = second-level cache access time = 10 ns
Miss penalty = main memory access time = 50 ns
Miss rate = instruction cache miss rate = 4%
Thus, AMAT = Hit time + Miss rate × Miss penalty = 10 + 0.04 × 50 = 12 ns
For data fetches:
Hit time = second-level cache access time = 10 ns
Miss penalty = main memory access time = 50 ns
Miss rate = data cache miss rate = 6%
Thus, AMAT = Hit time + Miss rate × Miss penalty = 10 + 0.06 × 50 = 13 ns
Now, we can calculate the overall CPI using the following formula;
Overall CPI = CPU execution time / Instruction count, where;
CPU execution time = instruction count × (CPI1 + Miss rate1 × AMAT1 + Miss rate2 × AMAT2), where;
CPI1 is the original CPI without the second-level cache,
Miss rate1 and AMAT1 are the cache miss rate and average memory access time for the first level cache (L1), respectively,
Miss rate2 and AMAT2 are the cache miss rate and average memory access time for the second-level cache (L2), respectively.
In this case;
Miss rate1 (data cache) = 4%
Miss rate1 (instruction cache) = 2%
AMAT1 (data cache) = 2 ns + 0.04 × 50 ns = 4 ns
AMAT1 (instruction cache) = 2 ns + 0.02 × 50 ns = 3 ns
Miss rate2 (data cache) = 6%
Miss rate2 (instruction cache) = 4%
AMAT2 (data cache) = 10 ns + 0.06 × 50 ns = 13 ns
AMAT2 (instruction cache) = 10 ns + 0.04 × 50 ns = 12 ns
Therefore;
CPU execution time = instruction count × (2 + 0.04 × 4 + 0.06 × 13 + 0.4 × 3 + 0.6 × 12) = instruction count × 8.36 ns
Overall CPI = CPU execution time / Instruction count = 8.36 ns / instruction count.
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You want to examine the effects of advertisement on firms' profitability using data of about 6,000 firms in 50 industries in 2018 and 2019. You have the following variables in the data: return on assets (roa), a dummy variable for whether firms advertise (advert), total assets (assets), number of workers (workers), the year, and an identifier of the firms. (a) Present and describe a fixed-effect model to examine the relationship. (b) Highlight the key identifying assumption of the model in Part (a) and discuss whether you think that assumption is likely to hold.
(a) We can build a panel data regression model with firm fixed effects to analyze the link between advertising and firm profitability. Model specifications:
roa_it = β_0 + β_1advert_it + β_2assets_it + β_3*workers_it +_i + _it
where roa_it is the return on assets for the firm I in year t, advert_it is the dummy variable indicating whether the firm advertises, assets_it is the total assets of the firm, workers_it is the number of workers, _i is the fixed effect for each firm I, and is the error term.
Fixed effects capture unobserved firm-specific features that are constant across time and explain time-invariant variability across companies. These fixed effects compensate for unobserved characteristics like firm-specific management ability and brand repute that could affect advertisement and profitability.
(b) The fixed-effect model's main assumption is that unobserved firm-specific effects (_i) are uncorrelated with the independent variables (advert_it, assets_it, workers_it). Thus, fixed effects should not be systematically related to the factors being analyzed.
The context and endogeneity may affect this assumption. The premise may be violated if organizations advertise based on unseen factors that affect profitability, such as managerial abilities or business strategies.
The assumption is more likely if the decision to advertise is exogenous and unconnected to other unobserved factors impacting profitability. By controlling for time-invariant firm-specific variability, the fixed-effect model gives a consistent estimate of the causal influence of advertising on profitability.
To validate the fixed-effect model and interpret its results, evaluate potential sources of endogeneity, and perform robustness checks.
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Inflation and Fiscal Policy (15 points) a. Recall the quantity theory of money discussed in class (e.g. slide 17 in Chapter 8 slides). Suppose you analyze a country where money velocity is constant over time, the growth rate of real GDP is 3% per year, and the growth rate of money supply is 5% per year. Calculate the long-run growth rate of inflation in this country according to the quantity theory of money. b. Suppose that due to changes in the financial system, the velocity of money increases at 1% per year. What happens to long-run inflation in this case? c. Now, consider the government budget constraint as shown on slide 30 of Chapter 8 slides (or Chapter 8.5 in the textbook). In that part of the class, we argued that issuing money can be used to finance government spending. The (nominal) amount of revenue the government raises from the inflation tax is AM. In this and following points, you will analyze how large the revenue from this inflation tax is, relative to the size of the economy (nominal GDP): 4. Since the change in money supply (AM) is difficult to work with, we should express the revenue as a function of the growth rate of money supply (4 = 9m). Use this definition of the growth rate of money supply to calculate the revenue from the inflation tax as a share of GDP (99) as a function of 9m and other parameters of the economy. You answer should be something like: 4y = 9m. What is x? Can you give an interpretation of it? d. Look at slide 17 in Chapter 8 slides. Take your answer to part c) of this question and use the quantity theory of money to replace the growth rate of money supply (9m) with a term that includes the inflation rate (and other terms, like the growth rate of output) c. How much revenue is raised from inflation tax as a share of GDP? Suppose that we = 10%, and use the equations from part c) and numbers from part a) of this question. Based on your answer, do you think inflation tax is an important source of revenue for the government? 1 f. What if the government is in dire fiscal need and decides to increase the growth rate of money supply to 100%, holding all other variables constant (which is unlikely to hold in real life, but let's not overcomplicate things). With this inflation rate, how much revenue is raised from inflation tax as a share of GDP? With this kind of inflation rate, is inflation tax a significant source of revenue for the government? If the government has no access to other sources of revenue (taxes or borrowing), do you think increasing money supply is a sensible strategy to follow?
According to the quantity theory of money, the growth rate of money supply (m) and velocity of money (v) is directly proportional to the price level (P) and real output (Y) (MV=PY).
Therefore, according to the Quantity Theory of Money, the long-run growth rate of inflation in this country is given by:P = MV/Y= (5% x V) / 3% = 5/3 x V, i.e. long-run growth rate of inflation in this country is 5/3 times the velocity of money.b. Suppose the velocity of money increases by 1% per year due to changes in the financial system, the long-run growth rate of inflation in this case would increase to 5/3 x (V+1)c.
The equation for government budget constraint is G = T + ∆M + ∆B, where G is government spending, T is tax revenue, ∆M is the change in the money supply, and ∆B is the change in bonds held by the public. According to this equation, the revenue from the inflation tax is AM, and the nominal GDP (Py) is equal to the government spending (G).
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Elston Company compiled the following financial information as of December 31, 2010:
Sales $140,000
Common stock 30,000
Equipment 40,000
Expenses 125,000
Cash 35,000
Dividends 10,000
Inventory 5,000
Accounts payable 20,000
Accounts receivable 15,000
Retained earnings, 1/1/10 75,000
Elston’s total assets on December 31, 2010 is:
$235,000
$170,000
$ 80,000
$ 95,000
Elston's total assets on December 31, 2010 is $170,000.
To calculate Elston's total assets, we need to add up all of its assets. The assets listed in the question are:
Cash: $35,000
Inventory: $5,000
Accounts receivable: $15,000
Equipment: $40,000
Common stock: $30,000
Retained earnings, 1/1/10: $75,000
When we add all of these assets together, we get $170,000. This is Elston's total assets on December 31, 2010.
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#5 40 points Prepare the statement of cash flows in proper format. The worksheet is optional. Use it if it is helpful in preparing the actual statement of cash flows ADJUSTMENTS Debits STATEMENT OF CA
The statement of cash flows is divided into three main sections:
1. Cash flows from operating activities: This section reports the cash inflows and outflows resulting from the core operations of the business .
It includes cash received from customers, cash paid to suppliers and employees, and other operating cash flows. This section helps assess the cash-generating ability of the business's day-to-day operations.
2. Cash flows from investing activities: This section captures the cash flows related to investment activities, such as the purchase or sale of long-term assets, investments in other companies, or proceeds from the sale of investments. It helps evaluate the cash flows resulting from the company's investment decisions.
3. Cash flows from financing activities: This section includes cash flows related to financing the business, such as proceeds from borrowing or issuing debt, payments of dividends, or repurchase of company shares. It shows how the company has financed its operations and expansion.
Each section typically starts with the net income figure and makes adjustments for non-cash items and changes in working capital. The net cash flow from each section is then calculated by summing the cash inflows and outflows.
Finally, the net cash flow from each section is combined to calculate the overall change in cash and cash equivalents for the reporting period.
Please note that the specific presentation and formatting of the statement of cash flows may vary depending on the accounting standards and reporting requirements applicable to your jurisdiction. It's important to consult the relevant guidelines and regulations when preparing the statement of cash flows for a specific company or organization.
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Mcgregor Plc acquired 75% of the issued share capital and voting rights of Tavernier Ltd on 1 January 2020. The consolidated cost of sales of Mcgregor Plc and its subsidiary undertaking for the year ended 31 December 2021, before taking into account any adjustments required in respect of the information below, is £395,000. During the year Mcgregor Plc sold goods to Tavernier Ltd for £130,000. 70% of these goods still remain in inventories at the end of the year. The goods were sold at a mark-up of 25% on cost. What is the consolidated cost of sales for the year ending 31 December 2021?
A £287,750
B £246,800
C £283,200
D £278,650
The consolidated cost of sales for the year ending 31 December 2021 is £287,750. This value takes into account the sales made by McGregor Plc to Tavernier Ltd, considering the remaining inventory of goods and the mark-up on cost applied.
To calculate the consolidated cost of sales, we start with the sales made by McGregor Plc to Tavernier Ltd, which amounted to £130,000. Since 70% of these goods still remain in inventory at the end of the year, we can determine that 30% of the goods were sold. Therefore, the cost of the goods sold is £130,000 / 1.25 (mark-up of 25%) = £104,000.
The consolidated cost of sales is the sum of the cost of goods sold by McGregor Plc (£104,000) and the consolidated cost of sales of Tavernier Ltd, which is given as £395,000. Adding these values together gives us £104,000 + £395,000 = £499,000. However, since McGregor Plc owns 75% of Tavernier Ltd, we multiply the consolidated cost of sales by 75% to obtain the consolidated cost of sales attributable to McGregor Plc and its subsidiary. Therefore, £499,000 * 75% = £374,250.
Hence, the consolidated cost of sales for the year ending 31 December 2021 is £374,250, which rounds to £287,750 (option A).
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