Answer and Explanation:
The computation of the depreciation and the book value for the first two years would be
Depreciation for Year 1
= 100% Bonus + regular depreciation
= $16,000 + $16,000 ÷ 10 years
= $17,600
And,
Book value year 1 is
= $16,000 - $1,600
= $14,400
Now
Depreciation for Year 2 is
= Regular depreciation
= $1,600
And,
Book value year 2 is
= $14,400 - $1,600
= $12,800
Lacy set her textbook under her chair in her business law class and then forgot to take it with her when she left the classroom. A janitor later discovered the textbook and gave it to the Dean of the Business College. In this situation:___________.a. the college is a constructive bailee, obligated to return the textbook to Lacy, and until it does, it is liable for harm to the property.b. the college is a bailee by agreement because holding items in a lost and found box is generally part of the college-student agreement when the student enrolls for classes.c. the college is responsible for the discovered textbook because in this situation, the college is subject to implied warranties unless the college has disclaimed such warranties in the student handbook.d. this is a bailment for the sole benefit of the bailee.
Answer:
a. the college is a constructive bailee, obligated to return the textbook to Lacy, and until it does, it is liable for harm to the property.
Explanation:
When a party comes into possession of a property not by contractual agreement, they are referred to as constructive bailee and are obligated to take care of the property till it is returned to the owner.
The bailee does not willingly take possession of the property, rather unforseen circumstances leads to them possessing it.
This is common when a person forgets his property in a place.
In the given scenario the college (Dean of Business College) became a constructive bailee when they recieved the misplaced textbook. So they are obligated to care for the textbook till it get back to Lacy or be held liable for any harm done
Target Corporation reported the following information in a recent Form 10-K. Consolidated Statement of Operations ($ millions) FY 2016 Cost of sales $67,596 Consolidated Statement of Financial Position ($ millions) FY 2016 FY 2015 Inventory $10,321 $8,282
What is the (a) inventory turnover ratio, and (b) average days in inventory, for the fiscal year ended January 30, 2016?
Answer: See explanation
Explanation:
a. inventory turnover ratio
This will be calculated as:
= Sales cost / Average inventory
= $67,596 / $9301.50
= 7.2672
= 7.27
(b) average days in inventory.
This will be calculated as:
= 365 days / Inventory turnover ratio
= 365 / 7.27
= 50.20
= 50 days
Note:
Average inventory = ($10,321 + $8,282) / 2 = $9301.50
Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following
FixedBudget
Sales (16,000 units X $211 per unit) 2184,000
Cost of goods sold
Direct materials 322,000
Direct labor 602,000
Production supplies 392,000
Plant manager salary 122,000 14,38,000
Gross profit 13,76,000
Selling expenses
Sales commissions 112,000
Packaging 210,000
Advertising 100,000 422,000
Administrative expenses
Administrative salaries 172,000
Depreciation-office equip. 142,000
Insurance 112,000
Office rent 122,000 548,000
Income from operations 406,000
(1) Compute the total variable cost per unit.
(2) Compute the total fixed costs.
(3) Compute the income from operations for sales volume of 14,000 units.
(4) Compute the income from operations for sales volume of 18,000 units.
Answer:
Part 1
Consider the incremental effects as follows
Sales (2,300 × $75) $172,500
Less Variable Costs ( 2,300 × $25) ($57,500)
Contribution $115,000
Less Fixed Costs ($12,500)
Change in Operating Income $102,500
Part 2
Consider the incremental effects as follows
Sales (2,300 × $75) $172,500
Less Variable Costs ( 2,300 × $25) ($57,500)
Contribution $115,000
Less Fixed Costs ($12,500)
Change in Operating Income $102,500
Part 3
Consider the incremental effects as follows
Sales (2,300 × $75) $172,500
Less Variable Costs ( 2,300 × $25) ($57,500)
Contribution $115,000
Less Fixed Costs ($12,500)
Change in Operating Income $102,500
The Bureau of Labor Statistics counts as employed people who work part-time, but would prefer to work full-time. Suppose the people who had part-time jobs, but wanted full-time jobs, were counted as unemployed. Explain how the unemployment rate and the labor force participation rate would change.
Answer:
The labor participation rate would not change because it counts the labor force as a percentage of the total adult population, and the labor force includes both the number of people employed and the number of people unemployed, so, even if those working part-time were counted as unemployed by the BLS, they would still be part of the Labor Force.
The labor participation rate formula is:
Labor Participation Rate = (Labor Force / Total Adult Population) x 100
The unemployment rate would indeed change, because it counts the number of unemployed as a percentage of the labor force. If those working part-time were counted as unemployed by the BLS, the number of people unemployed would obviously spike.
The formula is:
Unemployment Rate = (Number of Unemployed / Labor Force) x 100
A firm has a tax burden of 0.6, a leverage ratio of 1.2, an interest burden of 0.7, and a return-on-sales ratio of 14%. The firm generates $2.64 in sales per dollar of assets. What is the firm's ROE
Answer:
18.63%
Explanation:
Calculation for the firm's ROE
Using this formula for
ROE=(Tax burden)(Leverage ratio)(Interest burden)(Return-on-sales ratio)(Sales per dollar of assets)
Let plug in the formula
ROE = (.6)(1.2)(.7)(.14)(2.64)
ROE=18.63%
Therefore the firm's ROE is 18.63%
Two major concerns of Management Accounting are:
a. Controlling and Executing.
b. Controlling and Investigating.
C. Planning and Controlling.
d. Planning and Investigating.
If Congress votes to increase spending and taxes by the same amount, what is the effect on employment and interest rates
Answer:
a. Increase / Increase
Explanation:
Since in the question it is mentioned that there is an increase in taxes and government spending so it represents the positive stimuls as it occurs because the government incurrent all the revenue for the public welfare due to which there is a rise in the government expenditure that boost the aggregate demand also the GDP value would be rise because of the multiplier effect
Therefore the employment level and the rate of interest would also increased
Answer:
The correct answer was increase / no change
Explanation:
Just took the test
When a bond sells at a premium:___________
a) The contract rate is above the market rate.
b) The contract rate is equal to the market rate.
c) The contract rate is below the market rate.
d) It means that the bond is a zero coupon bond.
Answer:
a) The contract rate is above the market rate.
Explanation:
In the case when the bond is sold at the premium that means the contract rate or the coupon rate is higher than the market rate
While on the other hand, when the bond is sold at the discount that means the contract rate or the coupon rate is lower than the market rate
Therefore as per the given situation, the correct option is a.
hence, all the other options are wrong
Andrews Corp. ended the year carrying $46,369,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Andrews Corp.?
a. $264,018,840
b. $191,318,000
c. $67,711,000
d. $104,076,000
Answer: $46,369,000
Explanation:
At the end of the year, all the costs associated with inventory and operations have been dealt with in the income statement.
This means that if the entire inventory were sold at current prices which is $46,369,000, the addition to revenue will be what the goods were sold for which is the current price.
Options do not have this answer but that is it.
