Because transit tends to be congested in this country, many people prefer to shop in their local neighborhoods. They tend to go to stores several times a week to get what they need rather than making one big trip less frequently. Since the culture of this company is very network oriented, shoppers expect a trip to the store to involve significant interaction with store employees. Shoppers are also used to good deals and haggling for better prices. A U.S. store opens in this country and exhibits the following characteristics. Which of these characteristics will be problematic for the success of the store?
A) A few large flagship stores located in big cities
B) Product experts on the floor to answer customers' questions
C) Store locations easy to access via public transit
D) High-end pricing
E) Products available individually rather than in bulk

Answers

Answer 1

Answer: A few large flagship stores located in big cities; High-end pricing( Option A and D)

Explanation:

Because the people in this country usually shop close to their home, it would not be wise for a business to opt for few large flagship stores rather than a larger number of the smaller stores.

It would also be unwise for such business to sell mainly high-end products because the shoppers are used to good deals and haggling. Such company would be smart, to sell the products individually, because bulk purchases would make little sense for people that make frequent trips to the store.

Also, in a country with a congested transportation, an easy-to-access store locations will be important and having product experts on the floor who answers the questions of customers’ would appeal to network-oriented local culture.


Related Questions

On November 1, Bahama National Bank lends $3.8 million and accepts a six-month, 6% note receivable. Interest is due at maturity. Record the acceptance of the note and the appropriate adjustment for interest revenue at December 31, the end of the reporting period. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)

Answers

Answer and Explanation:

The journal entries are shown below:

a. Note receivable Dr $3,800,000

        To Cash $3,800,000

(Being the acceptance of the note is recorded)

For recording this we debited the note receivable as it increased the assets and credited the cash as it decreased the liabilities

b. Interest receivable Dr  $38,000

                 To Interest revenue  $38,000

(Being the interest revenue is recorded)

For recording this we debited the interest receivable as it increased the assets and credited the interest revenue as it increased the revenue

The computation is shown below:

= $3,800,000 × 6% × 2 months ÷ 12 months

= $38,000

,

"The Price King Auto Mall pays their sales staff by commission. They are paid a percent of the profit the dealership makes on each sold car. If the profit is $900 or less, the commission rate is 18%. If the profit is great than $900 and less than or equal to $1,500, the commission rate is 20% of the profit. If the profit is higher than $1,500, the rate is 25% of the profit. Jared sold a car that made a profit of $2500. What is the amount of commission he will receive

Answers

Answer:

$625

Explanation:

He made a profit of $2500 which is greater than $1500, so he would earn a 25% commmision

25% of $2500 = $625

I hope my answer helps you

On January 1, Guillen Corporation had 91,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following occurred. Apr. 1 Issued 20,000 additional shares of common stock for $16 per share. June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. July 10 Paid the $1 cash dividend. Dec. 1 Issued 1,000 additional shares of common stock for $20 per share. 15 Declared a cash dividend on outstanding shares of $4.10 per share to stockholders of record on December 31.
Prepare the entries to record these transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answers

Answer:

Apr. 1 Issued 20,000 additional shares of common stock for $16 per share.

Dr Cash 320,000 (= 20,000 x $16)

    Cr Common stock 320,000

June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30.

Dr Retained earnings 42,875 (= 42,875 x $1)

    Cr Dividends payable 42,875

July 10 Paid the $1 cash dividend.

Dr Dividends payable 42,875

    Cr Cash 42,875

Dec. 1 Issued 1,000 additional shares of common stock for $20 per share.

Dr Cash 20,000 (= 1,000 x $20)

    Cr Common stock 20,000

Dec. 15 Declared a cash dividend on outstanding shares of $4.10 per share to stockholders of record on December 31.

Dr Retained earnings 179,887.50 (= 43,875 stocks x $4.10)

    Cr Dividends payable 179,887.50

Listed below are several transactions. For each transaction, indicate whether the ca financing, or noncash activity. Also, indicate whether the transaction is a cash inflow
Also, indicate whether the transaction is a cash inflow or cash outflow, or has no effect on cash. 1. Payment of employee salaries. 2. Sale of land for cash. Investing 3. Purchase of rent in advance. 4. Collection of an account receivable. 5. Issuance of common stock. 6. Purchase of inventory 7. Collection of notes receivable. 8. Payment of income taxes. 9. Sale of equipment for a note receivable. 10. Issuance of bonds. 11. Loan to another firm. 12. Payment of a long-term note payable. 13. Purchase of treasury stock. 14. Payment of an account payable. 15. Sale of equipment for cash.

Answers

Answer:

1. Operating and Cash outflow: Payment of employee salaries.

2. Investing and Cash inflow: Sale of land for cash. Investing

3. Operating and Cash outflow: Purchase of rent in advance.

4. Operating and Cash inflow: Collection of an account receivable.

5. Financing and Cash inflow: Issuance of common stock.

6. Operating and Cash outflow: Purchase of inventory

7. Investing and Cash inflow: Collection of notes receivable.

8. Operating and Cash outflow: Payment of income taxes.

9. Noncash activity, so no effect: Sale of equipment for a note receivable.

10. Financing and Cash inflow: Issuance of bonds.

11. Investing and Cash outflow: Loan to another firm.

12. Financing and Cash outflow: Payment of a long-term note payable.

13. Financing and Cash outflow: Purchase of treasury stock.

14. Operating and Cash outflow: Payment of an account payable.

15. Investing and Cash inflow: Sale of equipment for cash.

Explanation:

A statement of cash flow is a financial statement that gives the aggregate cash inflow and cash outflow in an organization during an accounting period. The three categories of statement of cash flows are investing activities, financing activities, and operating activities.

1. Investing activities are essentially the cash activities with respect to non-current assets such as sale of equipment for cash.

2. Financing activities refers to cash activities with respect to owners’ equity and non-current liabilities such as purchase of treasury stock.

3. Operating activities are mainly the cash activities with respect to net income such as payment of employee salaries.

The Delta Manufacturing Company has a marginal tax rate of 21 %. The last dividend paid by Delta was $2.60. The expected long-run growth rate is 4%. If investors require 11% rate of return, what is the current price of the stock (P0)?

Answers

Answer:

The stock price is 38.63

Explanation:

We use the gordon model to calculate the horizon value and with htat the value of the stock:

[tex]\frac{D_1}{r-g} = PV\\\frac{D_0(1+g)}{r-g} = PV\\[/tex]

D1 = 2.60 x 1.04 = 2.704

rate of return 11% = 0.11

grow rate = 4% = 0.04

[tex]\frac{2.704}{0.11-0.04} = PV\\[/tex]

P0 = 38.62857143

The taxes should be ignored as the gordon model do not include them in the calculations

Prepare three income statements for the year assuming that revenue is to be recognized when:_________.
1. Crocodiles have been caught (i.e. production complete).
2. Crocodiles have been sold and delivered
3. Cash collections are complete

Answers

Answer:

3

Explanation:

The right answer is "cash collections are complete"

Revenue can only be recognized when the amount of earning of whole year completes basically it's the total amount of money which is earned by the customer and income is the profit which can be calculated by subtracting the revenue and what remains after the expenses.

Leonard Technologies invests $ 62,000 to acquire $ 62,000 face​ value, 8​%, fiveminusyear corporate bonds on December​ 31, 2014. The bonds will mature on December​ 31, 2019. The bonds pay interest semiannually on December 31 and June 30 every year until maturity. Assume Leonard Technologies uses a calendar year. Based on the information​ provided, which of the following will be included in the journal entry for the transaction on December​ 31, 2018?

a. a debit to Interest Revenue for $5,400
b. a credit to Interest Revenue for $2,700
c. a debit to Interest Revenue for $2,700
d. a credit to Interest Revenue for $5,400

Answers

Answer:

Find attached correct question that matches the options provided in this question:

The correct option is B, a credit to Interest Revenue for $2,700

Explanation:

The semiannual coupon interest receivable from the bond investment is the face value of $54,000 multiplied by 10% adjusted to reflect a six month revenue rather than a year a shown below:

semiannual interest receipt=$54,000*10%*6/12=$2,700

The $2,700 would be debited to cash as an income while also being credited to interest revenue ,hence option B is correct

g A stock will issue a dividend of $20 one year from today. Dividends will shrink by 3% per year for the next two years after that, and then remain constant forever. Find the current price of one share of this stock, given an effective annual rate of 6%.

Answers

Answer:

Current price = $341.943

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

PV dividend in year 1 = 20 × 1.03^(-1)= 19.41747573

PV of dividend in year 2 = 97%× 20 × 1,03^(-2)= 18.28636064

PV of dividend in year 3 = 97%× 97%×  20× 1.03^(-3) = 17.22113575

PV of dividend from year 4  and beyond

This will be done in two steps

PV (in year 3 terms

(97%× 97%×  20× 1.03^(-3))/0.06 =313.6333333

PV in year o terms

PV = A/r

A= 313.63, r = 6%

313.63× 1.03^(-3)= 287.0189291

Price of stock = 19.41 +18.28 +  17.221 +  17.221= 341.943

Current price = $341.943

Work Place Products Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 50,000 shares of preferred 2% stock, $40 par and 750,000 shares of $7 par common stock. The following selected transactions were completed during the first year of operations:
Journalize the transactions.
a. July 1. Issued 400,000 shares of common stock at par for cash.
b. July. 1. Issued 1,000 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.
c. Aug. 7. Issued 80,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $250,000, $400,000, and $70,000, respectively. For a compound transaction, if an amount box does not require an entry, leave it blank.
d. Sept. 20. Issued 25,000 shares of preferred stock at $44 for cash. For a compound transaction, if an amount box does not require an entry, leave it blank.

Answers

Answer and Explanation:

The Journal entries are shown below:-

1. Cash Dr,  $2,800,000 (400,000 × $7)

          To Common stock $2,800,000

(Being issue of common stock is recorded)

Here we debited the cash as as it increased the assets and we credited the common stock as it also increased stockholder equity

2. Organisation expenses Dr, $7,000 (1,000 × $7)

         To Common stock $7,000

(Being issue of common stock for organisation expenses is recorded)

Here we debited the organization expenses as  it increased the expenses  and we credited the common stock as it also increased stockholder equity

3. Land Dr,  $250,000  

Building Dr, $400,000  

Equipment $70,000  

       To Common stock  $560,000

      To Paid in capital in excess of par value- Common stock $160,000

(Being exchange of common stock with Land, building and equipment is recorded)

Here we debited the land, building, equipment as it increased the assets  and we credited the common stock and paid in capital in excess of par value as it also increased stockholder equity

4. Cash Dr,  $1,100,000 (25,000 × $44)

       To Preferred stock  $1,000,000  (25,000 × $40)

       To Paid in capital in excess of par value-preferred stock $100,000

(Being issue of preferred stock is recorded)  

Here, we debited the cash as it increased the assets  and we credited the preferred stock and paid in capital in excess of par value as it also increased stockholder equity

In 2016, Hudson Corp. sold 3,000 units at $150.00 each. Variable expenses were $113.00 per unit, and fixed expenses were $58,240. The same variable expenses per unit and fixed expenses are expected for 2017. If the company cuts selling price by 6.00%, what is its break-even point in units for 2017?

Answers

Answer:

Break even in units (2017) = 2080 units

Explanation:

The break even point in units is the number of units where the total revenue equals total cost. It is a point of no profit and no loss. The break even point in units is calculated as follows,

Break even in units = Fixed cost / Contribution margin per unit

Contribution margin per unit = Selling price per unit - Variable cost per unit

A cut in selling price of 6% would mean that the new selling price will be,

New selling price = 150 - (150 * 0.06)  = $141

Contribution margin per unit = 141 - 113  = $28

Break even in units = 58240 / 28

Break even in units (2017) = 2080 units

During the year, Lillie rented her vacation home for three months and spend one month there. Gross rental income from the property was $5,000. Lillie incurred the following expenses: mortgage interest, $3,000; real estate taxes $1,500; utilities, $800; and depreciation, $4,000. Compute Lillie's allowable deductions for the vacation home.

Answers

Answer:

$8,100

Explanation:

The home was rented for more than 14 days, you must pay taxes for the rental income

Since Lille used the house for more than 15 days herself, limits her deduction. The home cannot be treated as rental home nor personal use vacation home.

total days used = (30 x 3) + 30 = 120 days

rental days = 90/120 = 75% (this doesn't apply to mortgage interest nor real estate taxes, they are still 100% deductible)

mortgage interest and real estate taxes still qualify as personal expenses = $3,000 + $1,500 = $4,500

utilities and depreciation will be deducted only 75% = ($800 + $4,000) x 75% = $3,600

total deductions = $4,500 + $3,600 = $8,100

The price of coffe beans use to make coffee has decreased. At the same time, the price of cream (a compliment good) has increased. Given these two effects, what will happen to the current equilibrium quantity and price of coffee?
A. Equilibrium quantity will increase, equilibrium price will increase.
B. Equilibrium price will increase; the effect on quantity is ambiguous.
C. Equilibrium quantity will decrease; the effect on price is ambiguous.
D. Equilibrium price will decrease; the effect on quantity is ambiguous.

Answers

Answer:

The correct answer is:

Equilibrium price will decrease; the effect on quantity is ambiguous. (D)

Explanation:

First, note that if the price of coffee beans, used in the manufacture of coffee decreases, the price of coffee sold to consumers will decrease, because it takes a lesser amount in manufacturing than it used to, therefore this reduction in manufacturing costs is reflected in the selling price.

Next, it is hard to tell whether this reduction in equilibrium price will affect quantity demanded, because, at the same time, the price of cream ( a complementary good) increases, and since both goods are complementary, they are bought together, and the effect of the reduction in the price of coffee might not necessarily caused an increase in the quantity demanded because this effect is cancelled out by the increase in the price of cream, hence the effect on quantity is ambiguous.

Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2018, net credit sales totaled $5,800,000, and the estimated bad debt percentage is 1.40%. The allowance for uncollectible accounts had a credit balance of $55,000 at the beginning of 2018 and $46,500, after adjusting entries, at the end of 2018. Required: 1. What is bad debt expense for 2018 as a percent of net credit sales

Answers

Answer:

Bad debt expense for 2018 is $81,200

Explanation:

2018 net credit sales = $5,800,000

Estimated bad debt percentage = 1.40%.

The allowance for uncollectible accounts had a credit balance of $55,000 at the beginning of 2018 and $46,500, after adjusting entries, at the end of 2018.

Bad debt expense = Estimated bad debt percentage × net credit sales

= 1.40% × $5,800,000

= $ 81,200

Based on guidelines established by the accounting manager, Jaime, the accounts payable clerk, makes payments to vendors in order to maximize discounts. What type of decision does this represent?

Answers

Answer:

Programmed.

Explanation:

This is a form of decision that is has been made or is been made by as manager just like Jaime the account managing clerk which is repetitive or occurs steadily and over and over. The fact that it happens this steadily makes it a programmed decision.

This decision making are always taken in accordance with some establishment habit, regulations or procedures while the nature of problem that requires a non programmed decision is unstructured and something different. It needs a higher management participation.

In programmed decision making, there could likely be no error in the decisions because it is a routine and managers usually have the information they need to create rules and guidelines to be followed by others.

Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $25,000, and it had a market value of $43,000 on the date of the transfer. Cecile sold the stock for $40,000 a month after receiving it. In addition, Casper is required to pay Cecile $1,500 a month in alimony. He made five payments to her during the year.What are the tax consequences for Casper and Cecile regarding these transactions?

Answers

Answer:

According to IRS, the party making the payments is entitled to cancel the alimony & separate maintenance fees in a divorce situation while the party accepting the payment is obliged to include the amounts received in their gross revenue. Any transfer of property in respect of a divorce other than cash, however, is not taxable.The party receiving the property also does not recognize income and include the item on cost basis equal to basis of the party making transfer.

Explanation:

The assumptions of the production order quantity (EPQ) model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 20 and the daily production rate is 100. What is the optimal order and setup cost?
A) 139.B) 174.C) 184.D) 365.E) 548.

Answers

Answer:

C) 184

Explanation:

Options are inconsistent with data given.

Optimal Order is the level of order that is made to keep the setup cost to a minimum level.

It can be calculated by using following formula.

EPQ = [tex]\sqrt{\frac{2 X K X D}{h X ( 1 - x )}}[/tex]

K = Setup Cost   = $50

D = Annual demand  = 3,650 units

h = Holding cost  = $12

x = daily demand rate/ daily production rate =  20 / 100 = 0.2

Placing values in the formula

EPQ = [tex]\sqrt{\frac{2 X 50 X 3650}{12 X ( 1 - 0.2 )}}[/tex]

EPQ = 194.99 units = 195 units

Answer according to correct data

Question

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. The production order quantity for this problem is approximately

Answer

Options are inconsistent with data given.

Optimal Order is the level of order that is made to keep the setup cost to a minimum level.

It can be calculated by using following formula.

EPQ = [tex]\sqrt{\frac{2 X K X D}{h X ( 1 - x )}}[/tex]

K = Setup Cost   = $50

D = Annual demand  = 3,650 units

h = Holding cost  = $12

x = daily demand rate/ daily production rate =  10 / 100 = 0.1

Placing values in the formula

EPQ = [tex]\sqrt{\frac{2 X 50 X 3650}{12 X ( 1 - 0.1 )}}[/tex]

EPQ = 183.84 units = 184 units

Widgeon Co. manufactures three products: Bales; Tales; and Wales. The selling prices are: $55; $78; and $32, respectively. The variable costs for each product are: $20; $50; and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 7 hours to process, Tales take 4 hours, and Wales take 1 hour. What is the contribution margin per machine hour for Bales

Answers

Answer:

  $5/h

Explanation:

The contribution margin for Bales is ...

  $55 -20 = $35

The machine hours for Bales is 7.

The contribution margin per machine hour is ...

  $35/(7 h) = $5/h

A scrambled list of accounts from the income statement and balance sheet of Belmond, Inc. is found here:
a. How much is the​ firm's net working​ capital?
b. Complete an income statement and a balance sheet for Belmond.
c. If you were asked to respond to parts ​(a​) and ​(b​) as part of a training​ exercise, what could you tell your boss about the​ company's financial condition based on your​ answers?"

Answers

Answer:

a. How much is the​ firm's net working​ capital?

net working capital = current assets - current liabilities = (cash + accounts receivable + inventory) - (accounts payable + short term notes payable) = ($16,540 + $9,580 + $6,450) - ($4,770 + $600) = $27,200

b. Complete an income statement and a balance sheet for Belmond.

                        Belmond Inc.

                   Income Statement

   For the Year Ended December 31, 202x

Sales                                                             $12,830

Cost of goods sold                                     ($5,790)

Gross Profit                                                      $7,040

Operating Expenses                                     ($1,330)

General and Administrative Expense                ($870)

Interest Expense                                               ($920)

Depreciation Expense                                       ($540)

Operating Income                                              $3,380

Taxes                                                             ($1,460)

Net Income                                                         $1,920

                        Belmond Inc.

                      Balance Sheet

   For the Year Ended December 31, 202x

ASSETS

Cash                                $16,540

Accounts Receivable         $9,580

Inventory                         $6,450

Building and Equipment      $122,110

Accumulated Dep.              ($34,370)

TOTAL ASSETS               $120,310

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts Payable                 $4,770

Short-Term Notes Payable   $600

Long-Term Debt              $55,230

Common Stock              $44,900

Retained Earnings                $14,810

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $120,310

c. If you were asked to respond to parts ​(a​) and ​(b​) as part of a training​ exercise, what could you tell your boss about the​ company's financial condition based on your​ answers?"

The financial condition of the company can be considered healthy, since its profit margin is almost 15%, although its debt to equity ratio is high = $60,600 / $59,710 = 101.5%. The company has too much debt, even though it makes enough money to pay its obligations.

You are CEO of Rivet​ Networks, maker of​ ultra-high performance network cards for gaming​ computers, and you are considering whether to launch a new product. The​ product, the Killer​ X3000, will cost $900,000 to develop up front​ (year 0), and you expect revenues the first year of $790,000​, growing to $1.43 million the second​ year, and then declining by 45% per year for the next 3 years before the product is fully obsolete. In years 1 through​ 5, you will have fixed costs associated with the product of $91,000 per​ year, and variable costs equal to 50% of revenues.   
a. What are the cash flows for the project in years 0 through​5?
b. Plot the NPV profile for this investment using discount rates from​ 0% to​ 40% in​ 10% increments.
c. What is the​ project's NPV if the​ project's cost of capital is 10.3%​?
d. Use the NPV profile to estimate the cost of capital at which the project would become​ unprofitable; that​ is, estimate the​project's IRR.

Answers

Answer:

A)

year          cash inflows        cash outflows       net cash flows

0                       0                        -900,000              -900,000

1                 790,000                  -486,000               304,000

2                1,430,000                -806,000              624,000

3                786,500                  -484,250               302,250

4                432,575                  -307,288                125,287

5                 68,908                   -125,454                -56,546

B)

NPV 0% discount rate = $398,991

NPV 10% discount rate = $169,613

NPV 20% discount rate = -$725

NPV 30% discount rate = -$130,712

NPV 40% discount rate = -$232,241

C)

NPV 10.3% discount rate = $163,760

D)

almost 20%, since the IRR is the discount rate where NPV = $0

Actual IRR = 19.95%

Find the present value of $10,000 received at the start of every year for 20 years if the interest rate is J1 = 12% p.a. and if the first payment of $10,000 is received at the end of 10 years

Answers

Answer:

$ 26,935.56

Explanation:

The key to this question is that present value of those cash flows in year ten is the future value today.

PV=PMT*(1/i-1/i*(1+i)^n)*(1+i)

PMT is the annual amount receivable which is $10,000

i is 12% or 0.12

n is 20 years

1/i*(1+i)^=1/0.12*(1+0.12)^20=1/(0.12*9.646293093 )=0.863889709

1/i=1/0.12=8.333333333

1+i=1+0.12=1.12

PV=10,000*(8.333333333 -0.863889709 )*1.12

PV=10,000*7.469443624*1.12=$83,657.77  

The PV In ten years' time is future value today, hence we need to discount that future value to today's terms

PV=FV*(1+r)^-n

n is ten

r is 12%

PV=$83,657.77*(1+12%)^-10=$ 26,935.56  

Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production 157,000 Fixed manufacturing overhead cost $ 650,000 Variable manufacturing overhead cost per machine-hour $ 4.40 Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job 400 was started and completed. The following information was available with respect to this job: Direct materials $ 320 Direct labor cost $ 230 Machine-hours used 37 Compute the total manufacturing cost assigned to Job 400. 3. If Job 400 includes 50 units, what is the unit product cost for this job

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Estimated machine-hours= 157,000

Estimated fixed manufacturing overhead= $650,000

Variable manufacturing overhead cost per machine-hour $4.40

First, we need to calculate the predetermined overehad rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (650,000/157,000) + 4.4

Predetermined manufacturing overhead rate= $8.54 per machine-hour

Job 400:

Direct materials $320

Direct labor cost $230

Machine-hours used 37

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated overhead= 8.54*37= $315.98

Finally, we need to determine the unitary cost for Job 400:

Total cost= 320 + 230 + 315.98= $865.98

Unitary cost= 865.98/50= $17.32

Laworld Inc. manufactures small camping tents. Last year, 200,000 tents were made and sold for $60 each. Each tent includes the following costs: Direct materials $18 Direct labor 12 Manufacturing overhead 16 The only selling expenses were a commission of $2 per unit sold and advertising totaling $100,000. Administrative expenses, all fixed, equaled $300,000. There were no beginning or ending finished goods inventories. There were no beginning or ending work-in-process inventories. Required: 1. Calculate (a) the product cost for one tent and (b) the total product cost for last year. 2. CONCEPTUAL CONNECTION: (a) Prepare an income statement for external users. (b) Did you need to prepare a supporting statement of cost of goods manufactured? Explain. 3. CONCEPTUAL CONNECTION: Suppose 200,000 tents were produced (and 200,000 sold) but that the company had a beginning finished goods inventory of 10,000 tents produced in the prior year at $40 per unit. The company follows a first-in, first-out policy for its inventory (meaning that the units produced first are sold first for purposes of cost flow). (a) What effect does this have on the income statement? (b) Prepare a cost of goods sold statement.

Answers

Answer:

1. Calculate (a) the product cost for one tent

$46

and (b) the total product cost for last year.

$9,200,000

2. (a) Prepare an income statement for external users.

                                    Laworld Inc.

                                Income Statement

Total revenue                                                          $12,000,000

Cost of goods sold:

Direct materials $3,600,000Direct labor $2,400,000Manufacturing overhead $3,200,000        

Total COGS                                                             ($9,200,000)

Gross profit                                                               $2,800,000

Operating expenses:

Sales commissions $400,000Advertising expenses $100,000Administrative expenses $300,000

Total operating expenses                                        ($800,000)

Net profit from operations                                      $2,000,000

(b) Did you need to prepare a supporting statement of cost of goods manufactured? Explain.

No, since the COGS were fairly simple (no beginning or ending inventory) you can just squeeze the information.

3. Suppose 200,000 tents were produced (and 200,000 sold) but that the company had a beginning finished goods inventory of 10,000 tents produced in the prior year at $40 per unit. The company follows a first-in, first-out policy for its inventory (meaning that the units produced first are sold first for purposes of cost flow). (a) What effect does this have on the income statement?

Both gross profit and net profit would increase since COGS would be lower: COGS = (10,000 x $40) + (190,000 x $46) = $9,140,000, which is $60,000 less.

(b) Prepare a cost of goods sold statement.

Incurred costs:

Direct materials                                                            $3,600,000

Direct labor                                                                   $2,400,000

Manufacturing overhead                                             $3,200,000

Cost of goods manufactured                                      $9,200,000

Beginning inventory of finished units                            $400,000

Ending inventory of finished units                                ($460,000)

Cost of goods sold                                                       $9,140,000

Explanation:

revenue = 200,000 x $60 = $12,000,000

manufacturing costs:

Direct materials $18 x 200,000 = $3,600,000Direct labor $12 x 200,000 = $2,400,000Manufacturing overhead $16 x 200,000 = $3,200,000total = $9,200,000

product cost per unit = $18 + $12 + $16 = $46

S&A expenses:

sales commission of $2 x 200,000 = $400,000advertising totaling $100,000administrative expenses $300,000total $800,000

Susan wants to prepare a presentation that will calculate the total cost of ownership for the system. What financial analysis tools are available to her, and what are the advantages (and possible disadvantages) of each tool

Answers

Personal Trainer, Inc. owns and operates fitness centers in a dozen Midwestern cities. The centers have done well, and the company is planning an international expansion by opening a new “supercenter” in the Toronto area. Personal Trainer’s president, Cassia Umi, hired an IT consultant, Susan Park, to help develop an information system for the new facility. During the project, Susan will work closely with Gray Lewis, who will manage the new operation. Background

During data and process modeling, Susan Park developed a logical model of the proposed system. She drew an entity-relationship diagram and constructed a set of leveled and balanced DFDs. Now Susan is ready to consider various development strategies for the new system. She will investigate traditional and Web-based approaches and weigh the pros and cons of in-house development versus other alternatives.

Susan wants to prepare a presentation that will calculate the total cost of ownership for the system.

What financial analysis tools are available to her, and what are the advantages (and possible disadvantages) of each tool?

Answer:

The answer is below

Explanation:

The financial tools available to her,

NPV: Net Present Value

1.  It is the total value benefit minus the total value of the costs.

2.  It adjusts the value of future costs and benefits to account for the time value of money.

3.  The systems can be compared more accurately and consistently.

ROI:  Return On Investment.

Advanatge

1.  It is a % rate that compares total net benefits received from a project to the total costs of the project.

2. Companies set a minimum ROI that all projects must match or exceed.

3. Disadvantage of this tool is that it expresses only an overall average rate of the return. It is not accurate for a given time period

PAY BACK ANALYSIS

1.  It determines the time it takes for an information system to pay for itself.

2. Total development and operating costs are compared with total benefits.

3.  Disadvantage of this method is that pay back analyzes on costs and benefits incurred at the beginning of a system’s useful life.

commission earned but not received is debit or credit?​

Answers

it will be debit ...... sorry for all the dots had to make it longer

Which of the following statements is CORRECT? a. The advantage of the basic earning power ratio (BEP) over the return on total assets for judging a company's operating efficiency is that the BEP does not reflect the effects of debt and taxes. b. The price/earnings (P/E) ratio tells us how much investors are willing to pay for a dollar of current earnings. In general, investors regard companies with higher P/E ratios as being more risky and/or less likely to enjoy higher future growth. c. Other things held constant, the less debt a firm uses, the lower its return on total assets will be. d. Suppose you are analyzing two firms in the same industry. Firm A has a profit margin of 10% versus a margin of 8% for Firm B. Firm A's total debt to total capital ratio is 70% versus 20% for Firm B. Based only on these two facts, you cannot reach a conclusion as to which firm is better managed, because the difference in debt, not better management, could be the cause of Firm A's higher profit margin.

Answers

Answer: The advantage of the basic earning power ratio (BEP) over the return on total assets for judging a company's operating efficiency is that the BEP does not reflect the effects of debt and taxes

Explanation:

a. This is correct.

The advantage of basic earning power ratio over the return on the total assets for judging a firm's operating efficiency is that the basic earning power does not reflect effects of debt and taxes.

b. This is incorrect.

Only the price/earnings ratio of the company will tell us nothing about a company. When we compare the price/earnings of a company with the peers, we would know whether such company is under valued, or over valued or maybe fairly valued.

c. This is incorrect.

The total assets is made up of total liabilities plus the shareholders equity, when other things are held constant, less debt simply means less liabilities. To balance both sides, the total assets should reduce as the shareholder's equity is constant. When total assets decreases, the return on the assets will increase.

d. This is incorrect.

We can reach a conclusion on which firm is better managed based on the facts given. The debt ratio is the total liabilities divided by total assets, and a lower ratio is known to be good in comparison to a higher ratio. Similarly, the profit margin is the profit divided by the sales, and low profit margin shows high expenses and also a need for the management to decrease the expense.

The demand curve for the new computer game, Rock and Roll Trivia, is given as follows: Q = 200 - 5P - .1Pc - .5Pd + .2A - I Where P is the price of the game, Pc is the price of a computer, Pd is the price of a diskette, A is the level of advertising, and Q is the level of income. Suppose P = 10, Pc = 100, Pd = 2, A = 5, and I = 50. What is the price elasticity of demand?

Answers

Answer:

Income elasticity of demand = - 0.56

Explanation:

Given,

P=10, Pc=100, Pd=2, A=5, and I=50.

So,

Q=200-5(10)-.1(100)-.5(2)+.2(5)-(50).

Q=90 (level of income)

Computation:

Given , I = 50, Q = 90.

ΔQ / ΔI = -1

Income elasticity of demand = (ΔQ / ΔI) x (I / Q)

Income elasticity of demand = - 1 x (50 / 90)

Income elasticity of demand = - 0.56

Fleet Delivery Corporation is a public company with a market capitalization of less than $75 million. Fleet is poised to issue securities in a transaction that, under the Securities Act of 1933, is "exempt." This enables Fleet to ______________.

Answers

Answer:

This enables Fleet to reduce costs of regulatory compliance in relation to the security issue

Explanation:

When a company is exempt under the Securities Act of 1993,this implies that when issuing securities in the market place,the stock exchange ,the company is not required to produce audited financial statements.

Auditing financial statements sometimes cost fortunes especially when it is also required that one of the Big-4 professional firms is to be consulted.

By not requiring audited financials,the costs of audit is saved,hence cost of compliance with exchange rules is reduced overall

Bob's lawn-mowing service is a profit-maximizing, competitive firm. Bob mows lawns for $30 each. His total cost each day is $320, of which $70 is a fixed cost. He mows 10 lawns a day. In the short run, Bob should____________ . In the long run, Bob should__________ the industry.

Answers

Answer:

In the short run, as long as the contribution margin is positive he should continue in the industry. In the long run, if the company keeps losing money, he should leave the industry.

Explanation:

Giving the following information:

Bob mows lawns for $30 each. His total cost each day is $320, of which $70 is a fixed cost. He mows 10 lawns a day.

First, we need to calculate the unitary variable cost:

Total variable cost= 320 - 70= 250

Unitary varaible cost= 250/10= $25

Contribution margin= 30 - 25= $5

In the short run, as long as the contribution margin is positive he should continue in the industry. In the long run, if the company keeps losing money, he should leave the industry.

The bookkeeper for Riverbed Company has prepared the following balance sheet as of July 31, 2017.
RIVERBED COMPANY
BALANCE SHEET
AS OF JULY 31, 2017
Cash $ 72,350 Notes and accounts payable $ 47,350
Accounts receivable (net) 43,850 Long-term liabilities 78,350
Inventory 63,350 Stockholders’ equity 158,850
Equipment (net) 84,000 $284,550
Patents 21,000
$ 284,550
The following additional information is provided.
1. Cash includes $1,200 in a petty cash fund and $12,050 in a bond sinking fund.
2. The net accounts receivable balance is comprised of the following two items: (a) accounts receivable $47,350 and (b) allowance for doubtful accounts $3,500.
3. Inventory costing $5,110 was shipped out on consignment on July 31, 2017. The ending inventory balance does not include the consigned goods. Receivables in the amount of $5,110 were recognized on these consigned goods.
4. Equipment had a cost of $115,350 and an accumulated depreciation balance of $31,350.
5. Income taxes payable of $6,000 were accrued on July 31. Riverbed Company, however, had set up a cash fund to meet this obligation. This cash fund was not included in the cash balance, but was offset against the income taxes payable amount.
Prepare a corrected classified balance sheet as of July 31, 2017, from the available information, adjusting the account balances using the additional information.

Answers

Answer: The answer has been attached

Explanation:

A balance sheet also referred to as the statement of financial position is a summary of financial balances of an organization.

Kindly note that in the attached diagram, an asset are the resources owned by the company which have future economic value while a liability is something that a person or a company owes usually a sum of money.

The solution has been attached.

When the government sets an effective price floor suppliers are helped and consumers are helped. suppliers are hurt and consumers are helped. suppliers are helped and consumers are hurt. This is an incorrect answer. Have a nice day! supply increases due to the increase in price.

Answers

Answer:

suppliers are helped and consumers are hurt.

Explanation:

A price floor is when the government or an agency of the government sets the least price a good or service can be purchased.

A price floor is usually set above equilibrium price. As a result, the profit earned by sellers increase while the good becomes more expensive for consumers.

I hope my answer helps you

Other Questions
Can you help me please!! HELPPPPPPWhich is the simplified form of -7 +5-12?112SO M - 51212So112S What two whole, positive numbers that have a one-digit answer when multiplied and a two-digit answer when added? An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. By the end of the year, $400 has been earned. What is the correct adjusting entry that should be include? Martha types a 4digit code into a keypad to unlock her car doors. The code uses the numbers 1 and 0. If the digits are selected at random, what is the probability of getting a code with exactly two 1's? Enter your answer as a simplified fraction.The probability of getting two 1's is_________. Solve the equation: 4(+6)=8 The main opponents in World War II were the . The United States entered the war on the side of the after the bombing of by in . Which option gives an accurate reason why ethical guidelines are needed for the way scientific information is communicated? (Select all that apply) Businesses can perform and fund research studies, which potentially creates bias. Scientific journals have a long history of publishing questionable research. Government funding of research studies has the potential to create bias. Poor research could potentially impact the health and welfare of the public. what is the latitude and longitude of the city of Savannah Hood was forced to evacuate Atlanta. What best describes why this happened?He was in danger of being trapped in the city.They were organizing a new offensive south of the cityHe wanted to stage an attack north in Tennessee,Davis ordered him to leave and head to Petersburg. Find the solution of \2-1/5=\3+1/4 please help me with this Does a corpse flowers smell meet the definition of an adaptations Which of the following best describes the figure? What is the numerical solution to the equation five less than three times a number equals four more than eight times rhetorical number? Please select the word from the list that best fits the definitiongovernment in which monarchs hold total power over the people. ASAPPPPI HAVE AND IMAGE BELOW Please select the word from the list that best fits the definitionAterriza,el agente de la lnea areael comandanteel avinel agente de aduanael pasajeroel asistente de vuelola pantalla Hot coffee in a mug cools over time and the mug warms up. Which describes the energy in this system? The average kinetic energy of the particles in the mug decreases. The average kinetic energy of the particles in the coffee increases. Thermal energy from the mug is transferred to the coffee. Thermal energy from the coffee is transferred to the mug. Question 91) Which number is a rational number?13449913216 Please answer this correctly