The predetermined overhead rate is $17.10 per direct labor hour and the amount of manufacturing overhead applied is $682,180 the overhead variance is $2,960 overapplied.
Predetermined overhead rate
The predetermined overhead rate is calculated by dividing the estimated annual manufacturing overhead costs by the estimated annual operating activity base. In this case, the estimated annual operating activity base is direct labor hours.
Predetermined overhead rate = Estimated annual manufacturing overhead costs / Estimated annual operating activity base
= $684,000 / 40,000 direct labor hours
= $17.10 per direct labor hour
Manufacturing overhead applied
The amount of manufacturing overhead applied is calculated by multiplying the predetermined overhead rate by the actual direct labor hours. In this case, the actual direct labor hours were 39,800.
Manufacturing overhead applied = Predetermined overhead rate * Actual direct labor hours
= $17.10 per direct labor hour * 39,800 direct labor hours
= $682,180
Overhead variance
The overhead variance is the difference between the actual manufacturing overhead costs and the manufacturing overhead applied. In this case, the actual manufacturing overhead costs were $685,140 and the manufacturing overhead applied was $682,180.
Overhead variance = Actual manufacturing overhead costs - Manufacturing overhead applied
= $685,140 - $682,180
= $2,960 overapplied
Therefore, the predetermined overhead rate is $17.10 per direct labor hour and the amount of manufacturing overhead applied is $682,180. The overhead variance is $2,960 overapplied.
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The Town of Southfork Fire Department's fire attack truck was delivered with an invoice of $94,500. The expected cost of the truck was $92,000. The invoice was approved. Prepare entry using the following Debit (Enter Account Name} example: Amount Credit (Enter Account Name} Do not include entry descriptions. Do not abbreviate account names or you will not receive credit. Amount
The Town of Southfork Fire Department's fire attack truck was purchased for $94,500 with an expected cost of $92,000. The invoice was approved, and the journal entry was recorded as a debit to Fire Trucks and a credit to Cash or Accounts Payable for $94,500.
The entry using the following Debit and Credit account names along with the amount are given below: Debit: Fire Trucks $94,500Credit: Cash or Accounts Payable $94,500Note: If payment is made immediately, then we will credit the cash account, and if payment is deferred to a later date, we will credit the accounts payable account.
The Town of Southfork Fire Department's fire attack truck was delivered with an invoice of $94,500. The expected cost of the truck was $92,000. The invoice was approved.
The entry is a simple journal entry with a debit to the Fire Trucks account, representing the cost of the truck, and a credit to the Cash or Accounts Payable account, representing the amount paid or owed for the purchase of the truck. The journal entry for this transaction is: Debit: Fire Trucks $94,500Credit: Cash or Accounts Payable $94,500
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What are the key features of neo-liberalism and how has it
impacted Australia’s politics since the 1980s?
Neo-liberalism has significantly impacted Australia's politics since the 1980s. The key features of neo-liberalism are discussed in detail The key features of Neo-liberalismThe term 'neo-liberalism' refers to an ideology that advocates for free-market capitalism and the privatization of state-owned assets. The key features of neo-liberalism are as follows:Individualism: It emphasizes individual freedoms and independence, such as the freedom to own and operate a business, earn profits, and participate in the market.Individual responsibility:
Each person is responsible for their own well-being, which is achieved through hard work and personal effort.Competition: It promotes the idea that competition is beneficial because it encourages innovation and efficiency in the market.Private Property: It advocates for the privatization of assets previously owned by the state, allowing for the operation of the market by the private sector.Reduced Government Intervention: It advocates for a reduced role of the state in the market.
The impact of Neo-liberalism on Australia's politics since the 1980sThe impact of neo-liberalism on Australia's politics since the 1980s is multifaceted and diverse. The most important impacts are as follows:Privatization: It has led to the privatization of a large number of state-owned assets in Australia, which has resulted in increased efficiency in the innovation.Cuts in Social Spending: The neo-liberal policies have resulted in cuts in social spending, particularly in the areas of health, education, and welfare. This has increased social inequality and poverty.Globalization: It has also led to an increase in globalization, which has seen many businesses move offshore in search of cheaper labor costs, resulting in further job losses in Australia's manufacturing sector.Overall, neo-liberalism has had a significant impact on Australia's politics since the 1980s. While it has increased efficiency in the market, it has also resulted in social inequality and significant job losses, particularly in the public sector.
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Assume that you will pay $1,450 cash annually for three years (at the end of the year), and that the discount rate is 8%.
Calculate the present value using a PV table.
The present value of receiving $1,450 annually for three years (at the end of the year) with an 8% discount rate is approximately $3,737.45.
To calculate the present value of a cash flow using a present value (PV) table, we need to multiply the cash flow by the corresponding discount factor from the table. The discount factor represents the present value of $1 received at the end of each year for the specified discount rate.
Let's calculate the present value for the annual cash flow of $1,450 over three years at an 8% discount rate:
Year 1:
Discount factor for 8% and 1 year = 0.9259
Present value for Year 1 = $1,450 * 0.9259 = $1,342.655
Year 2:
Discount factor for 8% and 2 years = 0.8573
Present value for Year 2 = $1,450 * 0.8573 = $1,244.025
Year 3:
Discount factor for 8% and 3 years = 0.7938
Present value for Year 3 = $1,450 * 0.7938 = $1,150.770
Now, let's sum up the present values for each year:
Present value = $1,342.655 + $1,244.025 + $1,150.770 = $3,737.45
Therefore, the present value of receiving $1,450 annually for three years (at the end of the year) with an 8% discount rate is approximately $3,737.45.
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Suppose there are three countries in the world: Australia, New Zealand, and Vietnam. Australia's domestic demand for headphone follows DA = 100 - PA while its domestic supply of headphone follows SA = 0.4PA - 4 where DA, SA refer to Quantities Demanded and Supplied in Australia at the domestic price Pª, respectively. The unit cost of headphone production in Vietnam is $30, while it is $40 in New Zealand. Currently, there is a 100% tariff on headphone imports into Australia. a. (4 marks) What is the price of headphone in Australia? How many headphones will Australia import, and how much tariff revenue will the Australian government collect? Suppose now that Australia signs a free trade agreement (FTA) with New Zealand. b. (4 marks) How many headphones will Australia import, and from which country? c. (4 marks) Is this the case of trade creation or trade diversion as a result of Australia forming an FTA with New Zealand? Explain why. d. (6 marks) Calculate the amount of trade diversion loss/trade creation gain from the Australia-New Zealand FTA. e. (6 marks) Calculate the total welfare gain/loss to Australia as a result of the Australia-New Zealand FTA.
The price of headphones in Australia is $75. Australia will import 25 headphones, and the government will collect $2,500 in tariff revenue.
In Australia, the domestic demand for headphones is given by DA = 100 - PA, and the domestic supply is given by SA = 0.4PA - 4. To find the equilibrium price, we set the quantity demanded equal to the quantity supplied:
100 - PA = 0.4PA - 4
Simplifying the equation, we get:
1.4PA = 104
PA = 104/1.4 = 74.29
Since prices are usually rounded to the nearest dollar, the price of headphones in Australia would be $75.
To determine the quantity of headphones Australia imports, we need to look at the difference between domestic demand and domestic supply at the equilibrium price. Plugging the equilibrium price into the demand and supply equations, we have:
DA = 100 - 75 = 25
SA = 0.4(75) - 4 = 26
The difference between the quantity demanded and supplied is 25 - 26 = -1. Since the quantity is negative, it means that Australia is not able to supply enough headphones domestically to meet its demand. Therefore, Australia will import 25 headphones.
The tariff on headphone imports into Australia is currently 100%. This means that the price of imported headphones will be doubled due to the tariff. Therefore, the price of imported headphones would be $75 * 2 = $150. Since Australia imports 25 headphones, the total tariff revenue collected by the Australian government would be $150 * 25 = $3,750. However, the question states that the government collects 100% tariff revenue, so the actual amount collected would be $3,750 / 2 = $2,500.
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Calculation of unknown project life RKE \& Associates is considering the purchase of a building it currently leases for $30,000 per year. The owner of the building put it up for sale at a price of $170,000, but because the firm has been a good tenant, the owner offered to sell it to RKE for a cash price of $160,000 now. If purchased now, how long will it be before the company recovers its investment at an interest rate of 8% per year? Solve by using the NPER function. The company will recover its investment in years.
It will take approximately 7.28 years for RKE & Associates to recover its investment in the building at an interest rate of 8% per year.
To calculate the time it takes for RKE & Associates to recover its investment, we can use the NPER function in financial calculations. The NPER function calculates the number of periods required to reach a specific future value based on periodic payments and an interest rate.
In this case, RKE is considering purchasing the building for $160,000 and wants to know how long it will take to recover this investment at an interest rate of 8% per year.
Using the NPER function, we input the following parameters:
Rate: 8% per year
Payment: -$30,000 (negative because it represents an outgoing payment)
PV (Present Value): -$160,000 (negative because it represents an outgoing payment)
FV (Future Value): 0
The formula using the NPER function is as follows:
=NPER(rate, payment, PV, FV)
Using this formula in a financial calculator or spreadsheet, we find that the NPER value is approximately 7.28.
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charlie's utility function is xaxb. the price of apples used to be $1 per unit and the price of bananas was $2 per unit. his income was $40 per day. if the price of apples increased to $2.25 and the price of bananas fell to $1.25, then in order to be able to just afford his old bundle, charlie would have to have a daily income of
In order to be able to just afford his old bundle, Charlie would have to have a daily income of $40.
To determine Charlie's new daily income, we need to calculate the total cost of his old bundle and compare it to his new income.
His old bundle consists of x units of apples and b units of bananas.
Given that the price of apples increased to $2.25 per unit and the price of bananas fell to $1.25 per unit, the cost of his old bundle can be calculated as 1x + 2b.
To be able to afford his old bundle, Charlie's new daily income should cover the cost of his old bundle at the new prices.
Therefore, his new income can be calculated by equating the cost of the old bundle to his new income: 1x + 2b = 2.25x + 1.25b.
Simplifying the equation, we find that 0.25x = 0.25b, which implies that x = b
Since his utility function is xaxb, it means that x and b are equal.
Thus, in order to be able to just afford his old bundle, Charlie would have to have a daily income of $40.
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Which of the following terms describes how the value of real estate is influenced by the addition of diciarble facilities and amenities in the surrounding areas?
Durability
Progression
Return on investment (ROI)
Scarcity
The term that describes how the value of real estate is influenced by the addition of desirable facilities and amenities in the surrounding areas is "Progression."
Progression is a concept in real estate that suggests the value of a property can increase when it is located in an area with higher-value properties or when desirable facilities and amenities are added to the surrounding neighborhood. The presence of amenities such as parks, schools, recreational facilities, shopping centers, and transportation infrastructure can enhance the desirability and perceived value of the real estate in that location.
This phenomenon occurs because buyers and investors are often willing to pay a premium for properties that are situated in areas with desirable amenities and facilities. The added value from these amenities can positively impact the appreciation potential and marketability of the real estate. As a result, properties in areas with a higher level of amenities and facilities tend to command higher prices and experience greater demand.
Overall, progression highlights the influence of surrounding facilities and amenities on the value of real estate and underscores the importance of location and neighborhood characteristics in determining property values.
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Choose one of the following options to complete the sentence. How__money do you need to buy a good quality car?
a. a lot of b. many c. much. Choose one of the following options to complete the sentence. There is____ milk in the bottle, please help yourself.
a. a lot of b. much
c. many.
Choose one of the following options to complete the sentence. My sister has got a lot of dresses, but she has not got__shoes.
a. many
b. much
c. a lot of
Choose one of the following options to complete the sentence.
I have got___English books, but I have not got many Arabic ones.
a. much
b. many
c. a lot
All the answers of above questions are as follows:
How much money do you need to buy a good quality car?
The correct answer to the first question is option c. much.
We use much with uncountable nouns like "money".
The second question requires the answer:
There is much milk in the bottle, please help yourself.
For uncountable nouns like milk, we use much instead of many.
For the third sentence, the answer is option a. many. We use "many" with countable nouns like "shoes".
For the fourth sentence, the correct answer is option b. many. We use many with countable nouns.
English books are countable, so "many" is used with them. "Much" is used with uncountable nouns, and "a lot of" is used with both countable and uncountable nouns.
In summary, uncountable nouns take "much" while countable nouns take "many" and "a lot of" can be used with both.
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) Apply Overhead Cost to Jobs [LO2-2] Luthan Company uses a plantwide predetermined overhead rate of $22.50 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $270,000 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor- hours. The company incurred actual total manufacturing overhead cost of $267,000 and 12,600 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period. Manufacturing overhead applied
The amount of manufacturing overhead cost that would have been applied to all jobs during the period is $283,500.
The amount of manufacturing overhead cost that would have been applied to all jobs during the period can be determined by multiplying the actual direct labor-hours by the predetermined overhead rate.
In this case, the predetermined overhead rate is $22.50 per direct labor-hour. The company incurred 12,600 total direct labor-hours during the period.
The predetermined overhead rate is calculated as follows:
Estimated total manufacturing overhead cost: $270,000Estimated activity level: 12,000 direct labor-hoursPredetermined overhead rate: $270,000 / 12,000 direct labor-hours = $22.50 per direct labor-hourThe amount of manufacturing overhead cost that would have been applied to all jobs during the period is calculated as follows:
Predetermined overhead rate: $22.50 per direct labor-hourActual direct labor-hours: 12,600 direct labor-hoursManufacturing overhead applied: $22.50 per direct labor-hour * 12,600 direct labor-hours = $283,500Therefore, the amount of manufacturing overhead cost that would have been applied to all jobs during the period is $283,500.
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Colin is 65 years old. He is married to Rebecca. Rebecca is 55 years old. During the current year of assessment Colin earned the following income: - Salary from employer of R835 000 - Interest on savings account with local bank of R19 650 - Interest on a tax-free investment account with a South African bank of R3 000 - Dividends from a South African company of R12000) During the current year of assessment Rebecca earned the following income: - Local dividends of R60 000 Colin's Employees' tax deducted from his Salary is R223 328 Colin and Rebecca are married out of community of property, YOU ARE REQUIRED to calculate Colin s Gross income for the current rear of assessment.
Colin's gross income for the current year of assessment is R869,650. This includes his salary from his employer, interest on his savings account, interest on his tax-free investment account (R3,000), etc.
Colin's gross income is determined by considering all the income sources he received during the year. His salary from his employer forms the bulk of his income, as it amounts to R835,000. This is the amount he earned through his employment. Additionally, he earned R19,650 in interest from a savings account held with a local bank. This interest is considered part of his income.
To calculate Colin's gross income, we add up all the different sources of income that he earned during the year. His salary from his employer is the main component, totaling R835,000. In addition, he received R19,650 in interest from a savings account with a local bank, R3,000 in interest from a tax-free investment account with a South African bank, and R12,000 in dividends from a South African company.
Furthermore, Colin received R3,000 in interest from a tax-free investment account with a South African bank. This interest is also included in his gross income. Lastly, Colin earned R12,000 in dividends from a South African company.
Dividends are a distribution of a company's profits to its shareholders, and this amount adds to Colin's gross income. By summing up all these components, Colin's gross income for the current year of assessment is calculated to be R869,650.
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Green Company has beginning inventory of 20 units at a cost of $12.00 each on May 1. On May 5, it purchases 11 units at $14.00 per unit. On May 12 it purchases 25 units at $16.00 per unit. On May 15, it sells 45 units for $32 each. Using the FIFO perpetual inventory method, what is the value of the inventory on May 15 after the sale?
The value of the inventory on May 15, after the sale, using the FIFO perpetual inventory method is $176.00.
To calculate the value of the inventory on May 15 using the FIFO (First-In, First-Out) perpetual inventory method, we need to determine the cost of the remaining units in inventory.
May 1: Beginning inventory
Units: 20
Cost per unit: $12.00
Total cost: 20 units * $12.00 = $240.00
May 5: Purchase
Units: 11
Cost per unit: $14.00
Total cost: 11 units * $14.00 = $154.00
May 12: Purchase
Units: 25
Cost per unit: $16.00
Total cost: 25 units * $16.00 = $400.00
Total units available for sale: 20 + 11 + 25 = 56 units
To calculate the cost of the remaining inventory on May 15, we need to subtract the units sold from the total units available and determine the cost of the remaining units.
Units sold on May 15: 45 units
Remaining units: 56 units - 45 units = 11 units
Since the FIFO method assumes that the first units purchased are the first ones sold, the cost of the remaining units will be based on the most recent purchase.
Cost of the remaining units: 11 units * $16.00 = $176.00
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Explain graphically how the law of diminishing returns provides a natural tendency toward competitive balance.
Suppose in a six-team league, the winning percentages were as follows at the end of the season: Team A, .750; Team B, .600; Team C, .500; Team D, .500; Team E, .400; Team F, .250. Compute the standard deviation of win percentage.
The law of diminishing returns states that as inputs increase, the output eventually increases at a decreasing rate. This tendency toward diminishing returns can lead to competitive balance in sports leagues.
The law of diminishing returns suggests that as teams invest more resources (e.g., money, talent, training) to improve their performance, the marginal benefit of each additional resource diminishes over time. In the context of a sports league, this means that initially, teams may experience significant improvements in their win percentages by investing in better players, coaching staff, or facilities. However, as teams continue to allocate more resources, the incremental gains become smaller. This provides a natural tendency toward competitive balance because teams with lower win percentages have room for improvement, while those with higher win percentages face diminishing returns on their investments. Over time, this can help level the playing field and create a more balanced and competitive league.
To compute the standard deviation of win percentage for the given six-team league, we first calculate the mean win percentage. Adding up the win percentages and dividing by the number of teams, we find the mean win percentage to be 0.475.
Next, we subtract the mean from each team's win percentage and square the differences. These squared differences are: 0.096, 0.006, 0.025, 0.025, 0.306, and 0.331.
Taking the average of these squared differences (0.180) and then taking the square root gives us the standard deviation. Therefore, the standard deviation of win percentage for the league is approximately 0.424.
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Pharoah Company is considering a long-term investment project called ZIP. ZIP will require an investment of $129,800. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $88,000, and annual cash outflows would increase by $44,000. The company's required rate of return is 12%. Click here to view the factor table. Calculate the internal rate of return on this project. (Round answers to 0 decimal places, e.g. 15%.) Internal rate of return on this project is between Determine whether this project should be accepted? The project should be accepted. _______% and ______%.
Pharoah Company is evaluating a long-term investment project called ZIP. The project requires an initial investment of $129,800 and is expected to generate annual cash inflows of $88,000 and cash outflows of $44,000 over a 4-year period. The company's required rate of return is 12%. The question asks for the internal rate of return (IRR) on the project and whether it should be accepted.
The internal rate of return (IRR) is the discount rate that makes the net present value (NPV) of an investment project equal to zero. To calculate the IRR, we need to determine the present value of the cash inflows and outflows using the company's required rate of return of 12% and solve for the rate that makes the NPV zero.
The present value of the cash inflows can be calculated using the annuity present value formula, considering the annual cash inflow of $88,000 over 4 years and a discount rate of 12%. Similarly, the present value of the cash outflows can be calculated using the same formula with the annual cash outflow of $44,000.
By subtracting the present value of the cash outflows from the present value of the cash inflows, we can determine the NPV. If the NPV is zero, it means that the IRR is equal to the discount rate used in the calculation.
Based on the calculations, the IRR on this project is between 16% and 17%. Since the required rate of return is 12%, and the IRR exceeds this rate, the project should be accepted. The IRR represents the rate of return that the project is expected to generate, and if it is higher than the required rate of return, it indicates that the project is expected to be profitable and generate positive returns for the company.
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Using the company Berkshire Hathaway
What is this company's stock price, the P/E ratio, Beta, and EPS ratio?
What do these numbers tell us? How is the company doing compared to the market if the market's beta is 1 and the current S&P 500 P/E ratio is 21.09?
How many stocks are outstanding for this company?
What is the latest news regarding the stock? How did Covid and current inflation affect their performance (price/return)?
Do they have any preferred stock?
What is your recommendation in regard to this stock (Buy/Sell) and why?
Berkshire Hathaway's stock price is $X per share, with a P/E ratio of Y, Beta of Z, and EPS ratio of W. These numbers provide insights into the company's valuation, profitability, and risk profile.
Berkshire Hathaway's stock price is $X per share, with a P/E ratio of Y, Beta of Z, and EPS ratio of W. These numbers provide insights into the company's valuation, profitability, and risk profile. The stock price reflects the market's perception of the company's value per share. The P/E ratio indicates the price investors are willing to pay for each dollar of earnings generated by the company. A higher P/E ratio suggests higher expectations for future earnings growth.
The Beta measures the stock's sensitivity to market movements. A Beta of 1 indicates that the stock tends to move in line with the overall market. Comparing Berkshire Hathaway's Beta to the market's Beta of 1 can provide insights into its relative riskiness. The EPS ratio indicates the company's earnings per share, which is a measure of its profitability.
Regarding the company's performance compared to the market, we need the actual values of Berkshire Hathaway's P/E ratio and Beta. If the market's Beta is 1 and the current S&P 500 P/E ratio is 21.09, we can evaluate Berkshire Hathaway's Beta and P/E ratio to determine how it is performing relative to the market.
If its Beta is greater than 1, it indicates higher volatility compared to the market, while a Beta lower than 1 suggests lower volatility. Similarly, if the P/E ratio is higher or lower than the market's P/E ratio, it indicates how investors value Berkshire Hathaway's earnings compared to the overall market.
The number of outstanding stocks for Berkshire Hathaway can vary over time, so it's important to refer to the latest available financial reports or company announcements to obtain the most accurate information.
To understand the latest news regarding Berkshire Hathaway's stock and the impact of Covid and current inflation on their performance, it's essential to consult reliable financial news sources or the company's official statements. These sources will provide up-to-date information on any significant developments, including the company's response to market conditions and the potential effects of external factors such as Covid and inflation.
As for preferred stock, Berkshire Hathaway may or may not have issued any. This information can be found in the company's financial reports or disclosed in relevant filings.
It is important to note that as an AI language model, I do not have access to real-time financial data or the ability to provide personalized investment advice. To make an informed decision on whether to buy or sell Berkshire Hathaway's stock, it is recommended to consult with a qualified financial advisor or conduct thorough research based on up-to-date information and individual investment goals.
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Cash Dividends Teater Corporation issued 22,000 shares of common stock. At the beginning of the year, Teater held 9,000 shares of treasury stock, but it reissued 4,000 of those shares in November. On December 1, Teater's board of directors declares a cash dividend of $0.88 per share payable on December 20, to stockholders of record on December 15. Required: Prepare the appropriate journal entries for the date of declaration, date of record, and date of payment. If an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank. 3 Dec. 1 Dec. 15 Dec. 20
The journal entries for Teater Corporation's cash dividend transactions are as follows: December 1: Declaration of cash dividend, December 15: Record date for the dividend, December 20: Payment of the cash dividend.
On December 1, the declaration of the cash dividend is recorded by debiting the Dividends Payable account and crediting the Dividends Declared account. The amount of the dividend is calculated by multiplying the dividend per share ($0.88) by the number of shares outstanding (22,000 - 4,000 reissued shares).
On December 15, the record date for the dividend, no journal entry is required. The record date is used to determine which stockholders are eligible to receive the dividend.
On December 20, the payment of the cash dividend is recorded by debiting the Dividends Payable account and crediting the Cash account. The amount of the dividend is calculated by multiplying the dividend per share ($0.88) by the number of shares outstanding (22,000 - 4,000 reissued shares).
These journal entries reflect the proper accounting treatment for the declaration, record, and payment of a cash dividend by Teater Corporation.
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on january 1, 2014, tong purchased a ten-year bond bought at par to yield an annual nominal rate of 5% convertible semiannually. the bond pays semiannual coupons. because tong is an actuary, he enjoys calculating duration as a hobby. tong calculated the duration of the bond as x on january 1, 2016 before the coupon was paid on that date. calculate annualized x.
The annualized duration of the bond as of January 1, 2016, is -0.010028%. a negative number, which means that the bond's price would increase if the yield decreased and decrease if the yield increased.
The annualized duration of the bond on January 1, 2016, can be calculated as follows:
First, calculate the time to the next coupon payment, which is 0.5 years.
Next, calculate the present value of the bond as of January 1, 2016, using the semiannual yield to maturity. Since the bond was purchased at par, the present value is also par, which is RM100.
Then, calculate the present value of the bond after a small change in yield, say 0.01%. To do this, we need to calculate the new price of the bond using the new yield. The new yield to maturity can be calculated as 2 * ((1 + 0.0001)^(1/2) - 1) = 0.0000999974. Using this yield, the new price of the bond is RM99.997493.
Now, calculate the percentage change in price by dividing the difference between the new and old prices by the old price and multiplying by 100. This gives ((RM99.997493 - RM100) / RM100) * 100 = -0.002507%.
Finally, divide this percentage change by the time to the next coupon payment to get the annualized duration, which is (-0.002507% / 0.5) * 2 = -0.00010028
Therefore, the annualized duration of the bond as of January 1, 2016, is approximately -0.010028%.
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The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. [These are the same transactions analyzed in Exercise 2-1, when we determined their effect on elements of the accounting equation.] 1. Issued 30,000 shares of capital stock in exchange for $300,000 in cash. 2. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable to the seller was signed for the balance owed. 3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. 5. Paid $5,000 in rent on the warehouse building for the month of March. 6. Paid $6.000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2018. 7. Paid $70.000 on account for the merchandise purchased in 3. 8. Collected $55.000 from customers on account. 9. Recorded depreciation expense of $1.000 for the month on the equipment. Required: Prepare income statement and balance sheet for 2018.
The income statement will show the company's revenues, expenses, and net income for the year, while the balance sheet will present the company's assets, liabilities, and shareholders' equity at the end of the year.
Income Statement for 2018:
Revenue:
Credit sales: $120,000
Cost of Goods Sold:
Cost of goods sold: $70,000
Gross Profit: (Revenue - Cost of Goods Sold)
Gross Profit: $50,000
Operating Expenses:
Rent expense: $5,000
Insurance expense: $6,000
Depreciation expense: $1,000
Total Operating Expenses: (Sum of all operating expenses)
Total Operating Expenses: $12,000
Net Income: (Gross Profit - Total Operating Expenses)
Net Income: $38,000
Balance Sheet for 2018:
Assets:
Cash: $300,000 (From the issuance of capital stock)
Equipment: $40,000 (Cost)
Less: Accumulated Depreciation: $1,000 (Depreciation expense recorded)
Total Assets: (Sum of all assets)
Total Assets: $339,000
Liabilities:
Note payable: (Balance owed for equipment)
Shareholders' Equity:
Capital Stock: $300,000 (From the issuance of capital stock)
Retained Earnings: $38,000 (Net income)
Total Liabilities and Shareholders' Equity: (Sum of liabilities and shareholders' equity)
Total Liabilities and Shareholders' Equity: $339,000
Note: Detailed presentation and additional line items for the balance sheet may be required, but the given information is sufficient for a basic presentation.
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which of the following statements describes a critical skill to ensure a successful implementation of a strategic plan?which of the following statements describes a critical skill to ensure a successful implementation of a strategic plan?ability to implement operational goalsability to deliver results on budgetability to develop performance metrics and track them on a balanced scorecardability to accomplish all goals by oneself
The ability to develop performance metrics and track them on a balanced scorecard is a critical skill to ensure a successful implementation of a strategic plan.
A critical skill to ensure a successful implementation of a strategic plan is the ability to develop performance metrics and track them on a balanced scorecard.
This skill is important because it allows an organization to measure progress towards its goals and evaluate the effectiveness of its strategic plan.
By developing performance metrics, the organization can clearly define what success looks like and track its performance against those metrics.
The balanced scorecard approach ensures that multiple dimensions of performance, such as financial, customer, internal processes, and learning and growth, are considered. By tracking performance on a balanced scorecard, the organization can identify areas of improvement and make necessary adjustments to its strategic plan.
This skill helps ensure that the strategic plan is effectively implemented and leads to desired outcomes.
In conclusion, the ability to develop performance metrics and track them on a balanced scorecard is a critical skill to ensure a successful implementation of a strategic plan.
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What is a "gratuitous promise" (in your own words) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial v 10pt W X² X₂ &¶¶ - #1 [+ ili
A gratuitous promise is an agreement that a person enters into without any particular exchange of value or any legal duty. It is also known as a promise to make a gift or a promise without consideration.
In essence, a gratuitous promise is a statement made by a party that agrees to do something without receiving any consideration or benefit.A gratuitous promise is not legally enforceable unless it is made by a deed. When a promise is made by deed, it becomes a binding legal document that is enforceable in court.
However, a promise that is not made by deed is not enforceable unless it is supported by consideration or part performance. If a person relies on a gratuitous promise and suffers a loss as a result, they may be able to sue for damages. However, the damages will be limited to the actual loss that was suffered as a result of the promise, and the person will not be able to enforce the promise itself.
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"When using the fair-value method of accounting for Equity
Investments, journal entries to the Fair Value Adjustment account
are offset with entries to the Unrecognized Gain or Loss -Income
account.
Tr"
When using the fair-value method of accounting for equity investments, journal entries to the Fair Value Adjustment account are offset with entries to the Unrecognized Gain or Loss - Income account.
The fair-value method of accounting for equity investments involves adjusting the value of the investment to its fair market value on the balance sheet. This adjustment is recorded through journal entries. The Fair Value Adjustment account is used to reflect the changes in the fair value of the equity investment. If the fair value of the investment increases, a credit entry is made to the Fair Value Adjustment account. Conversely, if the fair value decreases, a debit entry is made. To offset the impact of these adjustments on the income statement, entries are made to the Unrecognized Gain or Loss - Income account. This allows for the recognition of any unrealized gains or losses on the equity investment.
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An employee who owns an individual Disability Income policy is injured in an automobile accident and files Proof of Loss with the insurance company. Under he Payment of Claims provision in the policy, the company will likely pay the policy benefits to the A.insured's employer B. insured's attending physician if the insured has assigned the benefits C. insured's beneficiary D.insured
Based on the information provided, the most likely answer is C. The insured's beneficiary.
The Payment of Claims provision in an individual Disability Income policy typically outlines the procedures and requirements for the payment of policy benefits.
In this case, the insured employee who was injured in an automobile accident has filed a Proof of Loss with the insurance company. If the insured has assigned the benefits to someone else, such as their employer or attending physician, the insurance company may pay the benefits to that assigned party.
However, if no assignment has been made, the default recipient of the policy benefits is typically the insured's beneficiary. The beneficiary is the individual or entity designated by the insured to receive the policy proceeds in the event of a covered claim.
Therefore, unless the insured has specifically assigned the benefits to someone else, the insurance company will likely pay the policy benefits to the insured's beneficiary as specified in the policy.
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In the event of a claim under a Disability Income policy, the policy benefits are typically paid to the insured person. There could be exceptions if different arrangements have been made. It's important to note that workman's compensation and pension insurance also play significant roles in such cases.
Explanation:In the context of the scenario you have described where an employee who owns an individual Disability Income policy has been injured and filed Proof of Loss with the insurance company, under the Payment of Claims provision in the policy, the policy benefits will likely be paid to the
D. insured
. The insured is typically the recipient of the benefits in a Disability Income policy, unless another arrangement has been specified. Workman's compensation insurance and pension insurance are also relevant factors in insurance cases. In Workman's compensation insurance, employers are required by law to pay into a state-run fund, which then provides benefits to workers who suffer an injury on the job. Pension insurance involves employers setting aside a part of their pension for the Pension Benefit Guarantee Corporation, protecting workers in the event of the employer's bankruptcy while paying out medical expenses and damage costs.
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George Pensioner received the following amounts during the taxation year:
Old age security $ 6,072
Canada Pension Plan $ 4,200
Net income from partnership $ 175,000
Taxable capital gain $ 5,000
A. George will have to repay some of his OAS and CPP because of his high net income.
B. George will have to repay some of his OAS, because of his high net income.
C. George will have to repay some of his CPP, because of his high net income
D. George will not have to repay any of his OAS or CPP.
George Pensioner will have to repay some of his OAS because of his high net income. This statement is the correct answer.
Because George Pensioner had a net income from partnership of $175,000, he will have to repay some of his OAS because of his high net income. Old Age Security (OAS) repayment has been implemented by the Canadian government, which allows high-income senior citizens to repay part or all of their OAS benefit. The repayment process is dependent on the senior's net income for the previous year. OAS benefits would need to be paid back once a senior's net income for the previous year exceeds a certain threshold. For 2020, this threshold was CAD 79,054. It is important to note that if you have high net income, you will only have to repay your OAS benefits if your net income exceeds the threshold limit.
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the following information is taken from bardell, incorporated statement of cash flows for the current year: net cash provided by operating activities $ 24,500 net cash provided by investing activities 5,200 cash balance, beginning of year 6,800 cash balance, end of year 11,100 what is the amount of net cash provided by (used in) financing activities? multiple choice $25,400 $4,300 ($4,300)
The correct answer is ($4,300), which represents a net cash outflow of $4,300. However, based on the given information, the net cash provided by (used in) financing activities is actually -$25,400.
To determine the amount of net cash provided by (used in) financing activities, we can use the formula:
Net Cash Provided by (Used in) Financing Activities = Cash Balance, End of Year - Cash Balance, Beginning of Year - Net Cash Provided by Operating Activities - Net Cash Provided by Investing Activities
Plugging in the given values, we have: Net Cash Provided by (Used in) Financing Activities = $11,100 - $6,800 - $24,500 - $5,200
= $-25,400
Therefore, the amount of net cash provided by (used in) financing activities is -$25,400. This indicates a net cash outflow in the financing activities, meaning that more cash was used in financing the company's operations and investments than was generated from those activities.
The correct answer from the multiple-choice options is ($4,300), which represents a net cash outflow of $4,300. However, based on the given information, the net cash provided by (used in) financing activities is actually -$25,400.
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As we discussed in class, a decrease in supply or demand reduces economic welfare. We also saw how price ceilings and price floors reduced economic welfare. Using the concept of Pareto optimality, explain why one of these welfare reductions is seen as efficient while the other is inefficient.
When no economic adjustments can make one person better off without making at least one other person worse off, the economy is considered to be in a Pareto optimal state. The concept of Pareto efficiency, named after the Italian economist and political scientist Vilfredo Pareto (1848-1923), is a key tenet of welfare economics.
Pareto optimality (also known as Pareto efficiency) is a common economic standard. It denotes a condition in which no additional advances to society's well-being can be accomplished through resource reallocation that benefits at least one individual while making someone else worse off. The Paretian criteria refers to the welfare optimum attained by trading in which everyone or at least one individual benefits while no other person suffers.
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At the beginning of your textbook, there is a quote as follows:
"Congress intended for taxable income to reflect the net increase in wealth from a business, so it is only fair that businesses be allowed to deduct expenses incurred to generate business income…"
The business deductions from a proprietor’s perspective, and the rules generally apply to all types of business entities (sole proprietorships, partnerships, S corporations, and C corporations).
Congress provides specific statutory rules authorizing deductions which is addressed in Internal Revenue Code (IRC) §162: The rule is very broad and tends to be unclear.
Why do you think Section 162(a), which allows a deduction for all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, is unclear? How can a rule be "fair" to business if it's ambiguous?
Can you provide a specific example as to how IRC §162 could have been made more specific for a business?
Discussion Question#2
Describe the record-keeping requirements for deducting business expenses, including mixed-motive expenditures.
Maintain accurate records with receipts, invoices, and bank statements to substantiate business expenses. Clearly differentiate personal and business use for mixed-motive expenditures. Comply with IRS regulations to support deductions.
To deduct business expenses, it's crucial to maintain accurate and contemporaneous records. Keep all relevant documents such as receipts, invoices, and bank statements to substantiate each expense. For mixed-motive expenditures, clearly differentiate between personal and business use by using separate accounts or logs. This helps track the portion of the expense attributable to the business activity.
Additionally, maintain detailed records for expenses that may be subject to stricter scrutiny, such as travel and entertainment expenses. By adhering to proper record-keeping practices, businesses can ensure they have the necessary documentation to support their deductions, comply with IRS regulations, and minimize the risk of disputes or audits.
Therefore, Maintain accurate records with receipts, invoices, and bank statements to substantiate business expenses. Clearly differentiate personal and business use for mixed-motive expenditures. Comply with IRS regulations to support deductions.
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As a business grows or if the market changes, an initial organization may not be optimal. In such a case, the leadership of the firm might consider reorganizing.
But reorganizing a firm to a more optimal structure does not come without a cost.
When should a firm reorganize? Research the cost of reorganizing and come to an informed opinion.
How often should firms undergo reorganization?
Should a unit be reorganized whenever its leadership changes?
Should there be regular reorganizations every few years or should major restructurings be less frequent?
A firm should consider reorganizing when its business grows or if the market changes. Reorganizing a firm to a more optimal structure does not come without a cost. Firms should undergo reorganization as the market changes and as the firm grows.
It is recommended that firms should undertake reorganizations every few years. A unit should not be reorganized whenever its leadership changes.Business reorganization is the process of restructuring a company's operations to make it more efficient. Reorganization may be necessary for a company to remain competitive, reduce costs, or improve operations. Reorganizing a company can be costly and can take a lot of time and resources. Therefore, a company must carefully consider the costs and benefits of reorganization before making any decisions.A company should consider reorganizing when its business grows or if the market changes. When a company grows, it may need to change its structure to be more efficient and effective. If the market changes, a company may need to reorganize to remain competitive. In such cases, the leadership of the firm might consider reorganizing.
A unit should not be reorganized whenever its leadership changes. Instead, the unit should be assessed to determine if there are any inefficiencies or problems that need to be addressed. If there are no problems or inefficiencies, then there may be no need to reorganize the unit. If there are problems, the leadership should identify the root cause of the problems and address them. Firms should undergo reorganization as the market changes and as the firm grows. It is recommended that firms should undertake reorganizations every few years. Regular reorganizations will help the company to remain competitive, reduce costs, or improve operations. Major restructurings may be necessary less frequently, depending on the company's needs.
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2. Pharrell, Inc., has sales of \( \$ 634,000 \), costs of \( \$ 328,000 \), depreciation expense of \( \$ 73,000 \), interest expense of \( \$ 38,000 \), and a tax rate of 35 percent. What is the net"
The net income for Pharrell, Inc. is -$27,900. This indicates a net loss for the firm in this particular period.
To calculate the net income for Pharrell, Inc., we need to subtract the total expenses from the total sales and then subtract the taxes.
Total Expenses = Costs + Depreciation Expense + Interest Expense
Total Expenses = $328,000 + $73,000 + $38,000 = $439,000
Net Income = Total Sales - Total Expenses - Taxes
Net Income = $634,000 - $439,000 - (35% * $634,000)
Net Income = $634,000 - $439,000 - $222,900
Net Income = $634,000 - $439,000 - $222,900
Net Income = $634,000 - $661,900
Net Income = -$27,900
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Pharrell, Inc. has sales of $634,000, costs of $328,000, depreciation expense of $73,000, interest expense of $38,000 and a tax rate of 35%. What is the net income for the firm?
You are saving for retirement, To live comfortably, you decide you will need to save \( \$ 3 \) million by the time you are 65 . Today is your 27 th birthday, and you decide, starting today and continue
Rounded to the nearest dollar, you need to set aside approximately $19,175 each year to accumulate $1 million by your 65th birthday, assuming an 8% interest rate.
To calculate the amount you need to set aside each year to reach $1 million by your 65th birthday, we can use the concept of annuities.
Given information:
Target savings amount = $1,000,000
Interest rate = 8%
Time period = 65 - 27 = 38 years
We need to find the equal annual deposits required to accumulate $1 million at an 8% interest rate over 38 years.
Using the formula for the future value of an ordinary annuity:
Future value = Payment × [(1 + Interest rate)ⁿ - 1] / Interest rate
n = Time period
$1,000,000 = Payment × [(1 + 0.08)³⁸ - 1] / 0.08
Simplifying the equation:
Payment × (1.08³⁸ - 1) / 0.08 = $1,000,000
Payment × (5.168092 - 1) / 0.08 = $1,000,000
Payment × 4.168092 / 0.08 = $1,000,000
Payment ≈ $1,000,000 / (4.168092 / 0.08)
Payment ≈ $1,000,000 / 52.10115
Payment ≈ $19,175.47
Rounded to the nearest dollar, you need to set aside approximately $19,175 each year to accumulate $1 million by your 65th birthday, assuming an 8% interest rate.
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The complete question is:
You are saving for retirement. To live comfortably, you decide you will need to save $1 million by the time you are 65. Today is your 27th birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 8%, how much must you set aside each year to make sure that you will have $1 million in the account on your 65th birthday?
The amount to deposit each year is ? (Round to the nearest dollar.)
A company collected $100,000 cash from a customer who both received and was billed for the goods last quarter. Which of the following items would be increased by this cash collection transaction? (check all that apply) Total Assets Total Stockholders' Equity Revenue Cash from Operations Accounts Receivable
The items that would be increased by the cash collection transaction of $100,000 from a customer are Total Assets, Cash from Operations, and Total Stockholders' Equity.
In the first part of the answer, I will briefly explain the impact of the cash collection transaction on each of the listed items: 1. Total Assets: Cash is an asset, so when the company collects $100,000 in cash, it increases its total assets. This increase in cash holdings contributes to the overall value of the company's assets. 2. Cash from Operations: The cash collection from a customer is considered a cash inflow from the company's operations. It represents the actual cash received from the customer for the goods previously provided. Therefore, the cash from operations increases by $100,000. 3. Total Stockholders' Equity: When the company collects cash, it typically enhances its retained earnings, which is a component of stockholders' equity. The increase in cash ultimately contributes to the overall equity position of the company and therefore increases total stockholders' equity.
Now, in the second part of the answer, I will provide a more detailed explanation of the impact of the cash collection transaction: The cash collection of $100,000 is an inflow of cash, which directly affects the company's balance sheet and financial position. It increases the company's cash balance, which is recorded as an asset on the balance sheet under the current assets section. This increase in total assets reflects the additional value in the form of cash that the company now possesses. Furthermore, the cash collection is considered revenue that the company has earned from its operations. Revenue represents the inflow of economic benefits resulting from the company's primary activities, such as the sale of goods. As a result, the cash collection contributes to an increase in revenue, which is reported on the income statement. Additionally, the cash collection has an indirect impact on total stockholders' equity. Stockholders' equity represents the residual interest in the company's assets after deducting liabilities. An increase in cash, which is an asset, enhances the company's overall equity position. It affects the retained earnings component of stockholders' equity, as the cash collection is considered an increase in earnings generated from operations.
In conclusion, the cash collection transaction of $100,000 increases Total Assets, Cash from Operations, and Total Stockholders' Equity. It directly impacts the company's financial position by increasing its cash balance, contributes to revenue on the income statement, and indirectly enhances stockholders' equity.
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Sunland Industries had the following transactions. 1. Borrowed $5,200 from the bank by signing a note. 2. Paid $3,224 cash for a computer: 3. Purchared $884 of supplies on account: Sunland Industries had the following transactions. 1. Borrowed $5,200 from the bank by signing a note. 2. Paid $3,224 cash for a computer. 3. Purchased $884 of supplies on account. Your answer is partially correct. Indicate what accounts are increased and decreased by each transaction.
Borrowed $5,200 so, Increased: Cash and Decreased: None. Paid $3,224 cash so, Increased: None and Decreased: Cash. Purchased $884 so, Increased: Supplies and Decreased: Accounts Payable.
When the company borrows $5,200 from the bank, it receives cash, which increases the Cash account. There is no corresponding decrease in any account because this transaction represents a liability (the note payable) rather than an expense or a decrease in assets.
When the company pays $3,224 in cash to purchase a computer, the Cash account decreases. There is no corresponding increase in any account because the cash is being used to acquire an asset (the computer), resulting in a decrease in the Cash account.
When the company purchases $884 worth of supplies on account, the Supplies account increases to reflect the acquisition of supplies. At the same time, the company incurs a liability to the supplier, resulting in an increase in the Accounts Payable account. The Accounts Payable account represents the company's obligation to pay for the supplies at a later date.
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