Answer: place the non breaching party into the position that they would have been had the contract not been breached
Explanation:
A contract is meant to satisfy the reasons for which the contract was gone into for both parties. If one party breaches the contract, the party that did not breach should still have their reason for entering the contract satisfied because they did what they were supposed to do according to the contract.
This is why the purpose of a breach of contract remedy is to ensure that this non-breaching party does indeed get what was supposed to come to them by the contract.
In its closing financial statements for its first year in business, the Runs and Goses Company, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of $3,408, accounts payable of $700, short-term notes payable of $740, long-term liabilities of $1,100, common stock of $1,160, retained earnings of $1,620, net sales of $2,768, cost of goods sold of $1,210, depreciation of $360, interest expense of $160, taxes of $312, addition to retained earnings of $508, and dividends paid of $218.
Calculate:
a. Return on equity = __________
b. Return on total assets = __________
c. Gross profit margin = __________
d. Net profit margin = __________
Answer:
return on equality
return on way
return on potos
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Return on Equity can be calculated as Return on Equity = Net Income / share holders equity. Return on Equity = 726 /2780. Thus, Return on Equity = 26.11%
What is Return on Equity?The ratio of a company's net income to the equity of its shareholders is known as return on equity (ROE). A company's profitability and the effectiveness of its revenue generation are measured by its return on equity (ROE). A corporation is better at turning its equity financing into profits the higher the ROE.
Although average ratios and those deemed "good" and "poor" might differ significantly from industry to industry, a return on equity ratio of 15% to 20% is typically regarded as good. The ratio would be regarded as low at 5%.
b)Return on Asset Ratio
Return on Asset Ratio = Net Income / Total Assets
Return on Asset Ratio = 726/ 5,320
Return on Asset Ratio = 13.65%
c)Gross Profit Margin
Gross Profit Margin = Gross Profit / Net Sales
Profit Margin = 1,558/ 2,768
Profit Margin =56.29%
d)Net Profit Margin
Net Profit Margin = Net Income / Net Sales
Profit Margin = 726/ 2,768
Net Profit Margin =26.23%
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Assume that Corn Co. sold 7,600 units of Product A and 2,400 units of Product B during the past year. The unit contribution margins for Products A and B are $34 and $59, respectively. Corn has fixed costs of $378,000. The break-even point in units is a.9,450 units b.11,340 units c.7,560 units d.14,175 units
,Answer: a. 9,450 units
Explanation:
You need to find the weighted average contribution margin for both products.
Product A
Weighted average contribution margin = Contribution margin * Units sold / Total units sold
= 34 * 7,600 / (7,600 + 2,400)
= $25.84
Product B
= 59 * 2,400 / 10,000
= $14.16
Breakeven point in units = Fixed costs/ (Weighted average contribution margin of both A and B)
= 378,000 / (25.84 + 14.16)
= 9,450 units
The purpose of rough cut capacity planning is to: Select one: a. place a time fence around the MPS. b. determine a production schedule that offers a rough order of magnitude. c. cut excess capacity from the MPS. d. assess the feasibility of the MPS. e. govern the length of the execution cycle.
Answer:
The answer is "Option d".
Explanation:
To compute the estimated work on master capacity planning, the objective of basic resource allocation is utilized. It is then contrasted to a proven ability that enhances organizational MPS feasibility.
It verifies that you have enough ability at your disposal that satisfy the needs of your master's programs. It is a tool in long-term production scheduling for marketing and production to accomplish the ratio of the capacity required and accessible and to manage changes in the plan and/or looking.
Casey transfers property with a tax basis of $3,800 and a fair market value of $6,800 to a corporation in exchange for stock with a fair market value of $5,250 and $720 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $830 on the property transferred. Casey also incurred selling expenses of $461. What is the amount realized by Casey in the exchange
Answer:
$5789
Explanation:
Calculation to determine the amount realized by Casey in the exchange
Fair market value of stock $5250
Add Cash in transaction $ 720
Add Liability which is going to the buyer $ 830
Less Selling expenses ($461)
Amount realized $5789
($5250+$720+$830-$461)
Therefore the amount realized by Casey in the exchange is $5789
Using the high-low method, the fixed cost is calculated ______. Multiple select question. by adding the total cost to the variable cost using either the high or low level of activity before the variable cost is calculated after the variable cost per unit is calculated
Answer:
is calculated after the variable cost per unit is calculated
Explanation:
Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
In Financial accounting, fixed cost can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Some examples of fixed costs in business are loan payments, employee salary, depreciation, rent, insurance, lease, utilities, etc.
On the other hand, variable costs can be defined as expenses that are not constant and as such usually change directly and are proportional to various changes in business activities. Some examples of variable costs are taxes, direct labor, sales commissions, raw materials, operational expenses, etc.
Using the high-low method, the fixed cost can only be calculated after the variable cost (VC) per unit is calculated through the application of either the low or high level of activity.
Using the high-low method, the fixed cost is calculated : After the variable cost per unit is calculated.
What is costing?Costing refers to the measurement of the cost of production of goods and services whereby, the fixed costs and variable costs associated with production are examined.
Fixed costs are costs that do not vary with the level of output, while variable cost are cost that varies with the activity level.
Using the high-low method, the fixed cost can only be calculated after the variable cost (VC) per unit is calculated through the application of either the low or high level of activity.
Hence, using the high-low method, the fixed cost is calculated after the variable cost per unit is calculated.
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Ticketsales, Inc., receives $7,720,000 cash in advance ticket sales for a four-date tour of Bon Jovi. Record the advance ticket sales on October 31. Record the revenue earned for the first concert date of November 5, assuming it represents one-fourth of the advance ticket sales. Ticketsales, Inc. initially records prepaid and unearned items in balance sheet accounts.
View transaction list Journal entry worksheet Record the concert revenues earned. Note: Enter debits before credits. Debit Credit General Journal Date Nov 05
Answer:
When revenue has been received but the service has not been rendered, the revenue will not be recognized and will instead be treated as a liability called unearned revenue.
Date Account Title Debit Credit
Oct. 31 Cash $7,720,000
Unearned Ticket revenue $7,720,000
Date Account Title Debit Credit
Nov. 5 Unearned Ticket Revenue $1,930,000
Ticket Revenue $1,930,000
Working
Ticket revenue = 1/4 * 7,720,000
= $1,930,000
When the price elasticity of demand for a good is very elastic, quantity demanded is _____ to a change in price and the demand curve is relatively _____. Group of answer choices
Answer:
1. Responsive
2. Elastic
Explanation:
When the price elasticity of demand for a good is very elastic, quantity demanded is RESPONSIVE to a change in price and the demand curve is relatively ELASTIC.
This is because the price elasticity of demand measures the responsiveness of the quantity demanded to a change in price.
Consequently, as the quantity demanded changes, the demand curve then becomes relatively elastic, by shifting either to the right or left.
WHAT ARE THE BENEFITS OF PHYSICAL ERGONOMICS
Answer:
▫️Increased savings. • Fewer injuries. • More productive and sustainable employees. ...
▫️Fewer employees experiencing pain. • Implementing ergonomic improvements can reduce the risk factors that lead to discomfort.
▫️Increased productivity. • ...
▫️Increased morale. • ...
▫️Reduced absenteeism. •
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Explanation:
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Bearington Enterprises uses an activity-based costing system to assign costs in its auto-parts division.
Activity Est. Indirect Activity Costs Allocation Base Cost Allocation Rate
Materials $60,000 Material moves $5.00/move
Assembling $175,000 Direct labor hours $5.00/dir. labor hour
Packaging $70,000 # of finished units $2.50/finished unit
The following units were produced in December with the following information:
Part # # Produced Materials Costs # Moves Dir. Labor Hrs.
Part 001 1,350 $2,500 100 500
Part 002 5,500 $5,000 400 200
Part 003 4,050 $7,000 2,800 1,550
Total manufacturing costs for Part 003 are : _______
Answer:
the Total manufacturing costs for Part 003 is $38,875
Explanation:
The computation of the Total manufacturing costs for Part 003 is given below:
= material cost + indirect cost
= $7000 + (2,800 × $5) + (1550 × $5) + (4,050 × $2.50)
= $7,000 + $14,000 + $7,750 + $10,125
= $38,875
Hence, the Total manufacturing costs for Part 003 is $38,875
The same should be considered and relevant
Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of the kits next quarter at a price of $11, and the other 50 kits in the third quarter at a price of $12. It takes a full quarter for Ponzi to collect its bills from its customers. (Ignore possible sales in earlier or later quarters.)
a. What is the net income for Ponzi next quarter?
b. What are the cash flows for the company this quarter?
c. What are the cash flows for the company in the third quarter?
d. What is Ponzi’s net working capital in the next quarter?
Answer:
Ponzi Products
a) Net income for the next quarter:
= $50
b) Cash outflow for this quarter = $1,000
c) Cash inflow in the third quarter = $550
d) Net working capital in the next quarter = $550
Explanation:
a) Production of chain-letter kits for the quarter = 100 units
Total production cost (outlay) = $1,000 (100 * $10)
Sales in the second quarter = $550 (50 * $11)
Sales in the third quarter = $600 (50 * $12)
Cash collections:
Third quarter = $550
Fourth quarter = $600
a) Net income for the next quarter:
Sales revenue = $550
Production cost 500 ($1,100 * 50/100)
Net income = $50 ($550 - $500)
b) Cash outflow for this quarter = $1,000
c) Cash inflow in the third quarter = $550
d) Net working capital in the next quarter = $550
Duane Miller wants to know what price home he can afford. His annual gross income is $67,200. He has no other debt expenses and expects property taxes and insurance to cost $320 per month. He knows he can get a 8.50%, 15 year mortgage so his mortgage payment factor is 9.85. He expects to make a 25% down payment. What is Duane's affordable home purchase price?
a. $107,929.
b. $158,793.
c. $138,207.
d. $209,139.
e. $179,665.
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Collective case studies are known as multiple-case studies, cross-case studies, comparative case studies and contrasting case studies. What is a cross-case study?
Answer:
Explanation:
Cross case studies involves the use to several individual case studies in other to support a scientific study or research with the aim of reaching a reasonable and acceptable conclusion which can be generalized and adopted for use in similar cases. Researchers usually employ the use of cross case case study in the formulation of new knowledge by collating several case studies based on the research scenario, then rigorous relationships are examined by comparing and contrasting features of the existing cases.
* Distinguish between Accounts Receivable and
Account Payable.
Explanation:
Accounts receivable is money owed to a company by its debtors.
Account payable amounts due to vendors or suppliers for goods or services received that have not been yet paid for.
Answer:
Accounts receivable are the amounts owed to a company by its customers. it is an asset to the company
accounts payable are the amounts that a company owes to its suppliers.it is a liability to the company
Explanation:
Toàn cầu hóa có ảnh hưởng gì đến thế giới
Answer:
1. Globalization encourages economic growth within a country.
2. Globalization encourages the specialization of goods (product specialization) and as such facilitating the production of quality goods.
3. Globalization increases the types of goods and services that are made available in different countries around the world.
Explanation:
Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace.
Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.
Some of the ways in which globalization affects the world include the following;
1. Globalization encourages economic growth within a country.
2. Globalization encourages the specialization of goods (product specialization) and as such facilitating the production of quality goods.
3. Globalization increases the types of goods and services that are made available in different countries around the world.
Pasha works for a manufacturing company in a small town. He reports to his manager that the company is not fulfilling its commitment to the community to reduce pollutants. His manager tells him to ignore the issue and not tell anyone. This is an example of a(n)___________. approach to social responsibility.
a. defensive
b. accommodative
c. reactive
d. obstructionist
e. proactive
Answer:
d. obstructionist
Explanation:
Since in the question it is given that pasha reported his manager that company is not able to fulfill the commitment in order to decrease pollution but the manager said that ignore this issue also dont tell anyone so this represent an obstructionist approach as the firm or the company avoids the social environmental problems so indirectly it breaks the law and their conduct is to be considered as an unethical
Therefore, the option d is correct
As operations manager, you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report: JAN FEB MAR APR Units produced 2,250 1,750 2,750 2,950 Hours per machine 318 194 393 315 Number of machines 5 7 6 5 Find the average of the monthly productivity figures (units per machine hour).
Answer: 2.81 per hour
Explanation:
Average monthly productivity = (January productivity + February productivity + March productivity + April productivity) / 4
January productivity:
= Units produced / ( Hours per machine * Number of machines )
= 2,250 / ( 318 * 2 )
= 3.537
February productivity:
= 1,750/ ( 194 * 4 )
= 2.255
March productivity:
= 2,750 / ( 393 * 3 )
= 2.332
April productivity:
= 2,950/ ( 315 * 3)
= 3.121
Average monthly productivity = (3.537 + 2.255 + 2.332 + 3.121)/ 4
= 2.81 per hour
The following cost behavior patterns describe anticipated manufacturing costs for 2013: raw material, $8.10/unit; direct labor, $11.10/unit; and manufacturing overhead, $373,100 $9.10/unit. Required: If anticipated production for 2013 is 41,000 units, calculate the unit cost using variable costing and absorption costing. (Round your answers to 2 decimal places.)
Answer:
Variable costing $28.3
Absorption costing $37.4
Explanation:
Calculation to determine the unit cost using variable costing and absorption costing.
VARIABLE COSTING
Material $8.10/unit
Direct labor $11.10/unit;
Variable manufacturing overhead per unit $9.10/unit
Units cost $28.3
ABSORPTION COSTING
Material $8.10/unit
Direct labor $11.10/unit;
Variable manufacturing overhead per unit $9.10/unit.
Fixed manufacturing overhead per unit $9.10/unit.
($373,100 ÷ 41,000 units)
Units cost $37.4
Therefore the unit cost using variable costing and absorption costing are:
Variable costing $28.3
Absorption costing $37.4
A major distinction between a conventional bank and an Islamic bank is that Islamic banks __ are allowed to charge higher interest on loans. cannot accept private deposits. cannot pay or charge interest. are not subject to any form of law,
Answer:
cannot pay or charge interest.
Explanation:
Islamic banks are banks that are based on Islamic laws or Sharia laws which is found in the Qur'an.
In Islamic banking, all banking transactions must be compliant with the Sharia laws.
Islamic banks differ from conventional banks in that :
1. they prohibit usury : Usury is charging interest on loans
2. they prohibit all forms of speculation : Islamic laws prohibit all forms of gambling
3. Investments in items that are not allowed in the Qur'an e.g. alcohol
Islamic bank use equity participation to make money. When an Islamic bank lends money to a business, instead of charging interest on the loan, the receive equity in that business and are entitled to a part of the company's shares
Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $5,000 in currency into the bank, and the bank adds that currency to its reserves. What amount of excess reserves does the bank now have
Answer:
$4000
Explanation:
Fractional banking is a banking system where a portion of customer's deposits is kept as reserves while remaining portion is lent out. The amount kept as reserves is determined by the required reserve ratio set by the Central bank.
Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves
Total deposits = $100,000 + $5,000 = $105,000
Required reserves = 0.2 x 105000 = 21,000
total reserves = $20,000 + 5000 = 25,000
excess reserves = 25,000 - 21,000 = 4000
On December 31, Ott Co. had investments in equity securities as follows:
Cost Fair value Lower of cost or fair value
Mann Co. $10,000 $8,000 $8,000
Kemo, Inc. $9,000 $11,000 $9,000
Fenn Corp. $11,000 $9,000 $9,000
$30,000 $28,000 $26,000
The Mann investment is classified as held-to-maturity, while the remaining securities are classified as available-for-sale. Ott does not elect the fair value option for reporting financial assets. Ott's December 31, Year 1, balance sheet should report total marketable debt securities as:_____.
a. $29,000.
b. $26,000.
c. $30,000.
d. $28,000.
Answer:
c. $30,000.
Explanation:
The calculation of the total marketable debt securities reported in the balance sheet is given below;
= Mann Co cost + Kemo Co fair value + Fenn corp fair value
= $10,000 + $11,000 + $9,000
= $30,000
Hence, the total marketable debt securities reported in the balance sheet is $30,000
Therefore the option c is correct
Paid for wages Rs. 2000 and for commission Rs. 3000. Journal entry for this?
Answer:
Wages A/c Dr.
To cash A/c
(being wages paid)
Commission A/c Dr
To cash A/c
(being comission paid)
The lender charges you $9 per week for each $100 you borrow.
Assuming you borrow $300 for 2 weeks, what APR will you be paying?
Answer:
i believe 2,107.5711%
Explanation:
The January 1, Year 1 trial balance for the Tyrell Company is found on the trial balance tab. The beginning balances are assumed. Tyrell Co. entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1.
Apr. 20 Purchased $40,250 of merchandise on credit from Locust, terms n/30.
May 19 Replaced the April 20 account payable to Locust with a 90-day, 10%, $35,000 note payable along with paying $5,250 in cash.
July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable.
Aug. 17 Paid the amount due on the note to Locust at the maturity date.
Nov. 5 Paid the amount due on the note to NBR Bank at the maturity date.
Nov. 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8%, $42,000 note payable.
Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2
Jan. 27 Paid the amount due on the note to Fargo Bank at the maturity date.
Required:
Prepare the 2016 journal entries related to the notes and accounts payable of Tyrell Co.
Answer:
Tyrell Company
Journal Entries:
2016
Apr. 20 Debit Inventory $40,250
Credit Accounts Payable (Locust) $40,250
To record the purchase of inventory on account, terms n/30.
May 19 Debit Accounts Payable (Locust) $40,250
Credit 10% Note Payable (Locust) $35,000
Credit Cash $5,250
To record the issuance of note payable for 90 days and cash payment.
July 8 Debit Cash $80,000
Credit 9% Note Payable (BR Bank) $80,000
To record the borrowing on note payable for a 120-day period.
Aug. 17 Debit 10% Note Payable (Locust) $35,000
Debit Interest Expense $875
Credit Cash $35,875
To record payment on account, including interest calculated as follows: ($35,000 + $35,000 * 10% * 90/360)
Nov. 5 Debit 9% Note Payable (BR Bank) $80,000
Debit Interest Expense $2,400
Credit Cash $82,400
To record payment on account, including interest calculated as follows:
($80,000 + $80,000 * 9% * 120/360)
Nov. 28 Debit Cash $42,000
Credit 8% Notes Payable (Fargo Bank) $42,000
To record the borrowing on note payable for a 60-day
Dec. 31 Debit Interest Expense $308
Credit Interest Payable $308
To accrue interest ($42,000 * 8% * 33/360).
Explanation:
a) Data and Analysis:
2016
Apr. 20 Inventory $40,250 Accounts Payable (Locust) $40,250 terms n/30.
May 19 Accounts Payable (Locust) $40,250 10% Note Payable (Locust) $35,000 Cash $5,250
July 8 Cash $80,000 9% Note Payable (BR Bank) $80,000 a 120-day
Aug. 17 10% Note Payable (Locust) $35,000 Interest Expense $875 Cash $35,875 ($35,000 + $35,000 * 10% * 90/360)
Nov. 5 9% Note Payable (BR Bank) $80,000 Interest Expense $2,400 Cash $82,400 ($80,000 + $80,000 * 9% * 120/360)
Nov. 28 Cash $42,000 8% Notes Payable (Fargo Bank) $42,000 a 60-day
Dec. 31 Interest Expense $308 ($42,000 * 8% * 33/360) Interest Payable $308
2017
Jan. 27 8% Notes Payable (Fargo Bank) $42,000 Interest Payable $308 Interest Expense $252 Cash $42,560
For 2020, Ms. Deming earned wages totaling $225,000.
Required:
1. Calculate any 0.9 percent additional Medicare tax owed, assuming that Ms. Deming is single.
2. Calculate any 0.9 percent additional Medicare tax owed, assuming that Ms. Deming files a joint return with her husband who earned $100,000 of wages for 2019.
Answer:
Additional Medicare is charged on the wages that are higher than $200,000.
1. Medicare owed assuming Ms. Deming is single:
= (225,000 - 200,000) * 0.9%
= 25,000 * 0.9%
= $225
2. Medicare owed assuming Ms. Deming files a joint return with her husband.
When filed together, their wages would be considered jointly.
= ( (100,000 + 225,000) - 200,000) * 0.9%
= 125,000 * 0.9%
= $1,125
The Japanese economy has been experiencing slow growth. As a result the Prime Minister, who thinks John Maynard Keynes was the greatest economist ever, has decided to increase government spending. As head of the economic council the Prime Minister asks you to determine the size of the increase needed to bring the economy to full employment.
Assume there is a GDP gap of 1 billion yen and the marginal propensity to consume (MPC) is .60. What advise do you give the Prime Minister?
a. The recessionary gap is equal to 625 million yen.
b. The inflationary gap is equal to 1 billion yen divided by 2.5 or 0.4 billion yen.
c. The recessionary gap is equal to 1 billion yen divided by 2.5 or 0.4 billion yen.
d. The inflationary gap is equal to 1 billion yen divided by 1.66 or 0.625 billion yen.
Answer:
c. The recessionary gap is equal to 1 billion yen divided by 2.5 or 0.4 billion yen.
Explanation:
The computation is shown below:
The multiplier is
= 1 ÷ (1 - MPC)
= 1 ÷ (1 - 0.60)
= 2.5
Now the increase in government expenditure for closing out the recessionary gap should be
Change in income = change in government purchase × multiplier
100 = change in government purchase × 2.5
So, the change in government purchase should be
= 100 ÷2.5
= 40
Hence, the option c is correct
Inventory balances for the Jameson Company in October 2018 are as follows:
October 1, 2018 October 31, 2018
Raw materials $27,000 $21,000
Work in process 48,000 37,200
Finished goods 108,000 90,000
During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively. What are the total manufacturing costs added to production in the period?
Answer:
Total manufacturing costs added to production $186,000
Explanation:
The computation of the total manufacturing cost to be added is given below:
Raw materials,beginning $27,000
Add: Purchases of direct materials $36,000
Less: Raw materials,ending -$21,000
Direct materials used $42,000
Direct labor $60,000
Factory overhead costs $84,000
Total manufacturing costs added to production $186,000
he following transactions are for Alonzo Company.
1. On December 3, Alonzo Company sold $500,000 of merchandise to Artis Co. on account. The cost of the merchandise sold was $330,000.
2. On December 8, Artis Co. returned $25,000 of merchandise purchased on December 3. The cost of the goods was $16,000.
3. On December 13, Alonzo Company received the balance due from Artis Co.
Prepare a tabular summary to record these transactions for Alonzo Company using a perpetual inventory system. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Assets
=
Liabilities
+
Stockholders' Equity
Retained Earnings
Date
Cash
+
Accts.
Rec.
+
Inventory
=
Accts.
Pay.
+
Common Stock
+
Rev.
-
Exp.
Answer:
1. Dec. 3
Dr Account Receivable $500,000
Cr Sales Revenue $500,000
Dr Cost of goods sold $330,000
Cr Inventory $330,000
2. Dec. 8
Dr Sales Returns and Allowances $25,000
Cr Accounts Receivable $25,000
3. Dec. 13
Dr Cash $470,250
Cr Sales Discounts $4,750
Cr Accounts Receivable $475,000
Explanation:
Preparation of a tabular summary to record these transactions for Alonzo Company using a perpetual inventory system
1. Dec. 3
Dr Account Receivable $500,000
Cr Sales Revenue $500,000
(To record the sales on account)
Dr Cost of goods sold $330,000
Cr Inventory $330,000
(To record the cost of goods sold)
2. Dec. 8
Dr Sales Returns and Allowances $25,000
Cr Accounts Receivable $25,000
(To record the Sales return and allowance)
3. Dec. 13
Dr Cash $470,250
($475,000 - $4,750)
Cr Sales Discounts $4,750
[($500,000 - $25,000) * 1%]
Cr Accounts Receivable $475,000
($500,000 - $25,000)
(To record the balance due from Arte Co.)
Demand for a specific design of dinning sets has been fairly large in the past several years and Statewide Furnishings, Inc. usually orders new dinning sets 10 times a year. It is estimated that the ordering cost is $400 per order. The carrying cost is $50 per unit per year. Furthermore, State Wide Furnishings, Inc. has estimated that the stock out cost is $120 per unit per year. Based on forecast, the annual demand is 600 units. State Wide Furnishings, Inc. has 350 working days in a year and its lead time is 14 working days.
Assume shortage is allowed and the store manager is sure that shortages will not become lost sales, determine the annual ordering cost.
a. 592.82
b. 1472.01
c. 2051.28
d. 4116.11
e. None of the above
Answer:
e. None of the above
Explanation:
Annual demand, D = 600 units
Ordering cost, S = $400
Holding cost, H = $50
Economic order quantity without stock-out = SQRT(2*D*S/H)
Economic order quantity without stock-out = SQRT(2*600*400/50)
Economic order quantity without stock-out = 98
Total annual ordering cost = (D/Q)*S + (Q/2)*H
Total annual ordering cost = (600/98)*$400 + (98/2)*$50
Total annual ordering cost = $2,448.97 + $2,450
Total annual ordering cost = $4,898.97
Larned Corporation recorded the following transactions for the just completed month.
$79,000 in raw materials were purchased on account.
$77,000 in raw materials were used in production. Of this amount, $65,000 was for direct materials and the remainder was for indirect materials.
Total labor wages of $109,500 were paid in cash. Of this amount, $100,900 was for direct labor and the remainder was for indirect labor.
Depreciation of $195,000 was incurred on factory equipment.
Required:
Record the above transactions in journal entries.
Answer:good question. Wait for the answer
Explanation:
Kermit plans to open a boutique. The initial investment is $10,000. He has to spend $1,500 in annual operations and maintenance. The boutique generates $3,000 in revenues every year. Kermit uses a 10 year planning horizon and a MARR of 12%. The correctly calculated Rate of Return for this project is ________________%.
Answer:
8.14
Explanation:
The Rate of Return is 8.14 from my calculations which you can find in the attached file.
Now since the Rate of return is 8.14. Which is less than MARR of 12%, it shows that investment is not good.
Year Initial Annual Maintenance Annual Revenue Total Cash Flow
0 -$10,000 -$10,000
1 -$1,500 $3,000 $1,500
2 -$1,500 $3,000 $1,500
3 -$1,500 $3,000 $1,500
4 -$1,500 $3,000 $1,500
5 -$1,500 $3,000 $1,500
6 -$1,500 $3,000 $1,500
7 -$1,500 $3,000 $1,500
8 -$1,500 $3,000 $1,500
9 -$1,500 $3,000 $1,500
10 -$1,500 $3,000 $1,500
Internal Rate of Return 8.1442% [IRR() in excel]
The rate of return is 8.1442 which is less than MARR of 12% investment is not worth it
