Mathys Inc. has recently hired a new independent auditor, Karen Ogleby, who says she wants "to get everything straightened out." Consequently, she has proposed the following accounting changes in connection with Mathys Inc.'s 2017 financial statements.1. At December 31, 2016, the client had a receivable of $820,000 from Hendricks Inc. on its balance sheet. Hendricks Inc. has gone bankrupt, and no recovery is expected. The client proposes to write off the receivable as a prior period item.2. The client proposes the following changes in depreciation policies.(a) For office furniture and fixtures, it proposes to change from a 10-year useful life to an 8-year life. If this change had been made in prior years, retained earnings at December 31, 2016, would have been $250,000 less. The effect of the change on 2017 income alone is a reduction of $60,000.(b) For its new equipment in the leasing division, the client proposes to adopt the sum-of-the-years'-digits depreciation method. The client had never used SYD before. The first year the client operated a leasing division was 2017. If straight-line depreciation were used, 2017 income would be $110,000 greater.3.In preparing its 2016 statements, one of the client's bookkeepers overstated ending inventory by $235,000 because of a mathematical error. The client proposes to treat this item as a prior period adjustment.4. In the past, the client has spread preproduction costs in its furniture division over 5 years. Because its latest furniture is of the "fad" type, it appears that the largest volume of sales will occur during the first 2 years after introduction. Consequently, the client proposes to amortize preproduction costs on a per-unit basis, which will result in expensing most of such costs during the first 2 years after the furniture's introduction. If the new accounting method had been used prior to 2017, retained earnings at December 31, 2016, would have been $375,000 less.5. For the nursery division, the client proposes to switch from FIFO to LIFO inventories because it believes that LIFO will provide a better matching of current costs with revenues. The effect of making this change on 2017 earnings will be an increase of $320,000. The client says that the effect of the change on December 31, 2016, retained earnings cannot be determined.6. To achieve an appropriate recognition of revenues and expenses in its building construction division, the client proposes to switch from the completed-contract method of accounting to the percentage-of-completion method. Had the percentage-of-completion method been employed in all prior years, retained earnings at December 31, 2016, would have been $1,075,000 greater.Instructions(a) For each of the changes described above, decide whether:(1) The change involves an accounting principle, accounting estimate, or correction of an error.(2) Restatement of opening retained earnings is required.(b) What would be the proper adjustment to the December 31, 2016, retained earnings?

Answer:

hello attached below are the missing option related to your question

5.45% ( D )

Explanation:

Given data:

for asset 1

cost of asset = $26000

Year 1  payments = $5000, year 3 = $10000, year 5 = $15000

For asset 2

cost of asset 2 three years from now  = $29500

year 4 payments = $12000, year 5 payments = $20000

Calculate the one year forward rate deferred three years

find the value of  [tex](1+s3)^3[/tex] using asset 1

2600 (cost of asset now )  = 5000/ (1.03 +10000) / ((1 +s3)^3 +15000))/ 1.0425^5

from the above equation

(1 +s3)^3 = 1.11559

Now to get the one year forward rate deferred three years we determine that value using asset 2

29500 = 12000 / (1+1 year rate deferred for 3 years) + 220000/(1.0425^5/(1+s3)^3)

hence ( 1 + 1 year rate deferred for three years )

= 12000/(29500-20000)/(1.0425^5)*1.11559)

= 12000/(9500)/(1.0425^5)*1.11559

1 year rate deferred for three years = 5.447% ≈ 5.45%

Answer:

1 year

Explanation:

Since it is mentioned that there is a constant market share, also the growth rate is also same so for meeting the future demand, the time period that would be considered is one year as the company should added its production capacity so that it could be in a position to meet the demand else the company is not able to meet its future demand

Hence, year 1 is considered

Answer: budget deficit

Explanation:

From the question, we are informed that the total spending for the federal government of Lilliput for the last fiscal year was $1.06 billion and that the country collected $1.05 billion in taxes during this same fiscal year.

Since the expenditure of $1.06 billion is more than the revenue of $1.05 billion, this show that there was a budget deficit.

Answer:

Equity= $7,000

Explanation:

A customer has an existing short margin account that contains credit of $16,000

The short position in ABC stock is worth $10,000

The SMA in the account is $1,000

Therefore, if the market value of ABC falls down to $9,000 then, the equity can be calculated as follows

Equity= $16,000-$9,000

=$7,000

Hence the equity is $7,000

Answer:

Since the firm is maximizing its profit, it is producing and selling 40 units at $30 per unit, resulting in a net profit of $440.

Explanation:

Sine there is no information, I searched for a similar question:

Q             Sales revenue        Total costs           Profit

10                      $450                $340                  $110

20                     $800                $480                  $320

30                     $1,050              $620                  $430

40                     $1,200              $760                  $440

50                     $1,250              $900                  $350

60                     $1,200              $1,040                $160

70                     $1,050              $1,180                -$130

80                     $800                $1,320               -$520

90                     $450                $1,460               -$1,010

Answer:

Find the explanation below.

Explanation:

Whistleblowing is the act of raising an alarm over unethical or illegal acts committed by people holding political or public service positions. The whistleblower is most times motivated by the quest to end the injustice or negative impact suffered by the disadvantaged group. Whistleblowers suffer tremendous obstacles from the people they have exposed because;

1. The offender's source of illegal income has been withdrawn. Just like humans fight for survival when their source of livelihood is taken away, so would a person fight against whatever that tends to take away their illegal source of wealth.

2. Fear of being seen in a negative light by others. The person committing a crime usually puts up an act of innocence, thus presenting himself as a morally upright person. When the whistleblower tries to expose their true identity, it is only expected that they would try to shut him up.

Answer: d. Cost of organization sustaining activities

Explanation:

Organization sustaining activities are those undertakings that have to be made if a company can keep operating. Examples include; property taxes, insurance, information filing with Government agencies and etc.

These activities are therefore not directly linked to the production process as they are not related to a single product and so should not be included in product costs for internal management reports which will be used for decision-making.

Answer:

0.74

Explanation:

Data provided  in the question

Price level = 1.35

According to the given situation, the computation of the new value of the dollar is shown below:-

The New value of the dollar = 1 ÷ Price level

= 1 ÷ 1.35

= 0.74074

or

= 0.74

Therefore for computing the new value of the dollar we simply applied the above formula.

Answer:

4.47

Explanation:

The computation of the standard deviation of lead time is shown below:

= √lead time × standard deviation of demand

= √ 5 days × 4

= √20

= 4.47

We simply applied the above formula to determine the standard deviation of demand during lead time

Hence, all the other items would be ignored

Answer:

Adjusted basis

Explanation:

Adjusted basis in accounting is used to calculate the net value of an asset. This is done by reducing depreciation deductions from the original value and adding capital expenses like cost of improvement.

This method is best used when there is need to get accurate gain and loss records, and for tax purposes.

In the given scenario John's accountant is using the adjusted basis when he calculates initial cost of an investment property plus the cost of any additional improvements less qualified deductions

Answer:

Additional $1,750 must be invested by Ben.

Explanation:

Note: The question is not complete as some dots are omitted. The question is therefore given correctly before answering it as follows:

If Ben invests $3500 at 4% interest per year, how much additional money must he invest at 5 1/2 % annual interest to ensure that the interest he receives each year is 4 1/2 %.

The question is now answered as follows:

From the question, we have:

Initial amount invested = $3,500

Interest rate on initial amount invested = 4%, or 0.04

Interest amount from initial amount invested = Initial amount invested * Interest rate on initial amount invested = $3,500 * 4% = $140

Let y represents the additional amount to invest. Therefore, we have:

Interest rate of additional amount invested = 5 1/2% = 5.5% = 0.055

Interest amount from additional amount invested = y * Interest rate of additional amount invested = y * 0.055 = y0.055

Total interest amount = Interest amount from initial amount invested + Interest amount from additional amount invested = $140 + y0.055

New amount invested = Initial amount invested + y = $3,500 + y

Interest rate of new amount invested = 4 1/2% = 4.5% = 0.045

Interest amount from new amount invested = New amount invested * ($3,500 + y) * 0.045 = $157.50 + y0.045

Since total interest amount must equal interest amount from new amount invested, we equate the two and solve as follows:

Total interest amount = Interest amount from new amount invested

$140 + y0.055 = $157.50 + y0.045

We can now solve for y as follows:

y0.055 - y0.045 = $157.50 - $140

y0.01 = $17.50

y = 17.50 / 0.01

y = $1,750

Therefore, additional $1,750 must be invested by Ben.

Answer:

13,500

Explanation:

Outstanding shares = issued shares - Treasury shares

19,000 - 5,500 = `13,500

Shares is a method through which firms raise capital.

Authorised shares are the maximum number of shares a company can issue to investors

Outstanding shares are the total number of shares sold to investors

Treasury shares are shares that have been issued and later repurchased by the company

Issued shares are the shares that a company issues

Answer:

600 loss

Explanation:

The computation of the gain or loss is shown below:

Since on Jan, there is a put option of 45 at $3 and the market rises to $58

So it losses by 13 points i.e

= 45 - 58

= 13

Now the total premium points collected is of 7 i.e

= 4 + 3

= 7

So, the remaining points left is

= 13 - 7

= 6

So for 6 points, the net loss is $600

Answer:

Optimization

Explanation:

Since we were told that the brand manager has limited budget of $25,000 which makes the manager to decide that television adverts is much more effective than radio adverts making him to allocates, at least 70% of the time to television, based on this I wiill run OPTIMIZATION test reason been that optimization will help and enable me to make the best or most effective use of available resource which will in turn Reduce costs while improving the performance which is why the brand manager decide to allocate 70% to Television in order to make the business more efficient as well as cost effective.

Answer:

a. $1,028 million

b. 46.7%

Explanation:

a. Dividends are taken from the retained earnings and net income is added to the retained earnings. The formula for ending retained earnings is;

Ending retained earnings = Opening Retained earnings + Net Income - Dividends

14,329 = 13,157 + 2,200 - Dividends

Dividends = 13,157 + 2,200 - 14,329

Dividends = $1,028 million

b. Dividends as a percentage of income

= 1,028/2,200

= 0.467

= 46.7%

Answer:

(a) consumers

Consumers are those who benefit the most from open trade and foreign direct investment. This is because these two economic policies increase the producion and delivery of goods and services, making them cheaper.

(b) producers

While some producers would be affected by open trade, most producers would benefit. Firms are allowed to specialize in producing those goods and services for which they have a competitive advantage, and they can also profit from increased foreign investment.

(c) the government of countries

Governments also benefit from these economic policies. They higher well-being of society means more government credibility, and the higher economic growth means more government revenue in the form of taxes.

The case that open trade in goods and services, as well as free flow of foreign direct investment, should be described below:

learn more about the investment here: https://brainly.com/question/16822436?referrer=searchResults

Answer:

The variable costing unit product cost was $69.

Explanation:

Variable Product Costing is a situation whereby only the variable costs of production is taking into account to estimating the cost per unit of a product. This implies that none of the fixed cost will be included in the cost of the product.

Based on the explanation above, the variable costing unit product cost to produce a single product by Kray Inc. can be calculated as follows:

Kray Inc.

Calculation of Variable Costing Unit Product Cost

Particulars                                                          Amount ($)    

Direct materials                                                        40

Direct labor                                                               19

Variable manufacturing overhead                           8

Variable selling and administrative expense         2      

Variable cost per unit                                               69    

Therefore, the variable costing unit product cost was $69.

Answer: Analyse cost, risk with impacts and project benefits.

Explanation:

The best alternative in a cost-benefit analysis situation are the following;

•The cost types should be analyzed

•Potential risk and their impacts should be looking into

•It is recommended to weigh all the risk even when there is a lot of project benefits.

Answer is given below

Explanation:

type of cash flow activity

a. Redeemed bonds   ---------------Fiancing

b Issued preferred stock -----------Fiancing

c. Paid cash dividends --------------Fiancing

d. Net income --------------------------Operating

e. Sold equipment --------------------Investing

f. Purchased treasury stock -------Fiancing

g. Purchased patents ----------------Investing

h. Purchased buildings -------------Investing

i. Sold long-term investments ----Investing

j. Issued bonds ------------------------Fiancing

k. Issued common stock -----------Fiancing

Answer:

The stock is undervalued. As the required rate of return (6.5%) on market is less than the actual return (7%), the stock is said to be undervalued as it provides an actual return greater than the required rate of return.

Explanation:

To check if a stock is over valued, undervalued or correctly valued, we simply compare the required rate of return on a stock as measured by CAPM with the actual return on the stock.

We can calculate the required rate of return using CAPM equation. The formula for required rate of return under CAPM is,

r = rRf + Beta * (rM - rRF)

Where,

r = 0.05 + 0.5 * (0.08 - 0.05)

r = 0.065 or 6.5%

As the required rate of return on market is less than the actual return, the stock is said to be undervalued as it provides an actual return greater than the required rate of return.

Answer:

Undervalued

Explanation:

to determine if the stock is overvalued or undervalued, we have to determine the expected rate of return using the CAPM and compare it with the return of the stock

Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

5% + 0.5(8% - 5%) = 6.5%

the stock is undervalued because 6.5% is less than 7%

Answer:

industrial products

Explanation:

A company that does this and mostly favors a push strategy is usually selling industrial products. That is because a push strategy focuses on taking the product to the potential customer and showing them how it works as well as how it can benefit them, therefore pushing the product on them. Industrial Products are great for such a strategy since they require actual demonstration and can easily show the potential customer the actual value that the product can provide.

Answer:

International trade is buying and selling goods and services across international boundaries. International trade plays a very good role in economic activities and performance of countries around the world. International trade benefit countries in many ways: 1- increasing in production and consumption as a result of specialization, 2- greater choices for consumers due to the competition between traders to get the best choice for consumers. 3- lower prices 4- trade is great source for the flow of service and technology. International trade is the engine of growth.

Answer:

$749.57

Explanation:

equivalent annual annuity = (NPV x rate) / [1 - (1 + rate)⁻ⁿ]

equivalent annual annuity = ($2,630 x 0.131) / [1 - (1 + 0.131)⁻⁵] = $344.53 / 0.4596 = $749.57

The equivalent annual annuity is used to compare mutually exclusive projects and determine which yields the highest annual returns.

Answer:

NPV = $3,013,537.02

IRR = 20.15%

Explanation:

initial investment $19,500,000

sales revenue per year:

year 1 = 76,000 x $420 = $31,920,000

year 2 = 89,000 x $420 = $37,380,000

year 3 = 108,750 x $420 = $45,675,000

year 4 = 101,500 x $420 = $42,630,000

year 5 = 68,800 x $420 = $28,896,000

change in net working capital:

year 0 = $2,250,000

year 1 = ($37,380,000 - $31,920,000) x 0.2 = $1,092,000

year 2 = ($45,675,000 - $37,380,000) x 0.2 = $1,659,000

year 3 = ($42,630,000 - $45,675,000) x 0.2 = -$609,000

year 4 = ($28,896,000 - $42,630,000) x 0.2 = -$2,746,800

year 5 = -$1,646,000

fixed costs = $4,700,000

contribution margin per unit = $420 - $270 = $150 per unit

resale value at the end of year 5 = $3,900,000

MACRS depreciation 7 year property:

year          %                depreciation expense

1               14.29%          $2,786,550

2              24.49%         $4,775,550

3              17.49%          $3,410,550

4              12.29%          $2,396,550

5              6.44%*          $1,255,800*

                   *net of resale value

net cash flow year 0 = -$19,500,000 - $2,250,000 = -$21,750,000

net cash flow year 1 = [($11,400,000 - $4,700,000 - $2,786,550) x 0.75] + $2,786,550 - $1,092,000 = $4,629,637.50

net cash flow year 2 = [($13,350,000 - $4,700,000 - $4,775,550) x 0.75] + $4,775,550 - $1,659,000 = $6,022,387.50

net cash flow year 3 = [($16,312,500 - $4,700,000 - $3,410,550) x 0.75] + $3,410,550 + $609,000 = $10,171,012.50

net cash flow year 4 = [($15,225,000 - $4,700,000 - $2,396,550) x 0.75] + $2,396,550 + $2,746,800 = $11,239,687.50

net cash flow year 5 = [($10,320,000 - $4,700,000 - $1,255,800) x 0.75] + $1,255,800 + $1,646,000 = $6,174,950

NPV = $3,013,537.02

IRR = 20.15%

In this exercise we will use our knowledge of finance to calculate interest, so we find that:

So knowing that from the initial investment we will obtain the following values ​​per year:

[tex]year 1 = 76,000 * \$420 = \$31,920,000[/tex]

[tex]year 2 = 89,000 * \$420 = \$37,380,000[/tex]

[tex]year 3 = 108,750* \$420 = \$45,675,000[/tex]

[tex]year 4 = 101,500 * \$420 = \$42,630,000[/tex]

[tex]year 5 = 68,800 * \$420 = \$28,896,000[/tex]

So knowing that from the net working capital we will obtain the following values ​​per year:

[tex]year 0 = \$2,250,000\\year 1 = (\$37,380,000 - \$31,920,000) * 0.2 = \$1,092,000\\year 2 = (\$45,675,000 - \$37,380,000) * 0.2 = \$1,659,000\\year 3 = (\$42,630,000 - \$45,675,000) * 0.2 = -\$609,000\\year 4 = (\$28,896,000 - \$42,630,000) * 0.2 = -\$2,746,800\\year 5 = -\$1,646,000[/tex]

Then from the values ​​previously informed we can calculate the cash flow, as:

[tex]year 0 = -\$19,500,000 - \$2,250,000 = -\$21,750,000\\year 1 = [(\$11,400,000 - \$4,700,000 - \$2,786,550) * 0.75] + \$2,786,550 - \$1,092,000 = \$4,629,637.50\\year 2 =\$6,022,387.50\\year 3 = \$10,171,012.50\\year 4 = \$11,239[/tex]

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Answer:

i, ii

Explanation:

a Tax is a compulsory sum levied by the government on income, goods or services. A tax cut would increase the supply of labour. As a result, the supply of labour would increase. As a result of the increase in labour, there would be an increase in potential GDP

Answer:

The answer is 15.508%

Explanation:

The annual coupon rate is:

8% x 900 x 2 / $1,000 = 14.4%

The yield to maturity as follows:

Yield to maturity (YTM) = [Coupon payment + (Face Value - Present Value) / Time to Maturity] /  [(Face Value + Present Value) / 2]

=> YTM = [14.4% x $1,000 + ($1,000 - $900) / 30] / [ ($1,000 + $900) / 2] = 15.508%

Answer:

the following table shows the profits generated by each output quantity, assuming selling price is Rs40. Since marginal costs of production are lower than selling price, the more you sell, the higher your profit. Profit is maximized at 1,000 units =  Rs35,960

Explanation:

output          variable costs       fixed costs       total revenue      profits

0                          00                     620                     0                     (620)

100                      280                   620                   4,000              3,100

200                     480                   620                   8,000              6,900

300                     640                   620                   12,000            10,740

400                     820                   620                   16,000            14,560

500                    1,040                  620                   20,000           18,340

600                    1,300                  620                   24,000           22,080

700                    1,620                  620                   28,000           25,760

800                    2,020                 620                   32,000           29,360

900                    2,620                 620                   36,000           32,760

1000                   3,420                 620                   40,000           35,960

Answer:

19%

Explanation:

The market risk premium is 9%

The risk free rate of return is 3.7%

General motors have a beta of 1.7

Therefore, using the capital asset pticing model the expected return can be calculated as follows

= 3.7% + 1.7×9%

= 3.7% + 15.3%

= 19%

Hence the expected return is 19%

Answer:

C. The firm likes its workers and doesn’t want to replace some jobs with machinery.

Explanation:

Optimal level of capital simply refers to an ideal strategy used by a firm to raise capital. For example, a firm may decide between debt financing or equity financing, depending on the company's desired level of capital.

So, an already operational firm with that likes its workers and doesn’t want to replace some jobs with machinery has no direct relationship with its level of capital.

Answer:

Direct labor time (efficiency) variance= $3,000 favorable

Explanation:

Giving the following information:

Standard= 2 hours of labor per unit, at $12 per hour.

In producing 3800 units, Waterway used 7350 hours of labor.

To calculate the direct labor quantity variance, we need to use the following formula:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Standard quantity= 2*3,800= 7,600 hours

Direct labor time (efficiency) variance= (7,600 - 7,350)*12

Direct labor time (efficiency) variance= $3,000 favorable