Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Beginning Inventory Ending Inventory Finished goods (units) 27,000 77,000 Raw material (grams) 57,000 47,000 Each unit of finished goods requires 3 grams of raw material. The company plans to sell 740,000 units during the year. The number of units the company would have to manufacture during the year would be:

Answers

Answer 1

Answer:

790,000

Explanation:

Data provided

Budgeted sales = 740,000

Desired ending inventory = 77,000

Beginning inventory = 27,000

The computation of number of units is shown below:-

Number of units to be manufactured = Budgeted sales + Desired ending inventory - Beginning inventory

= 740,000 + 77,000 - 27,000

= 817,000 - 27,000

= 790,000

Therefore for computing the number of units manufactured we simply applied the above formula.


Related Questions

On March 1 the price of a commodity is $1,000 and the December futures price is $1,015. On November 1 the price is $980 and the December futures price is $981. A producer of the commodity entered into a December futures contracts on March 1 to hedge the sale of the commodity on November 1. It closed out its position on November 1. What is the effective price (after taking account of hedging) received by the company for the commodity

Answers

Answer:

$1,014

Explanation:

The computation of effective price received by the company for the commodity is shown below:-

Here for computing the Effective price received first we need to find out the profit on future contract which is here below:-

Profit on future contract = Futures prices of Nov 1 - Dec Future prices Dec

= $1015 - $981

= $34

Effective price received = November Price + Profit on future contract

= $980 + $34

= $1,014

The effective price (after taking account of hedging) received by the company for the commodity is $1,014.

First step

Future contract profit:

Future contract profit= $1015 - $981

Future contract profit= $34

Second step

Effective price :

Effective price = $980 + $34

Effective price= $1,014

Inconclusion the effective price (after taking account of hedging) received by the company for the commodity is $1,014.

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i. Discuss the rationale of organizing an industrial strike in resolving employee dispute with the
state, focusing on the detrimental effects strikes has on various stakeholders in an economy.

Answers

Answer: The answer is provided below

Explanation:

Strike action, is a work stoppage, that is caused by mass refusal of employees to work and it usually takes place in response to the employee grievances.

Some of the reasons for strike include:

• Low wages: Employees engage in strik as a way to show their grievances to their employers that they're not well paid and want a pay rise.

• Poor communication with the organisation: Another reason for strikes is the lack of trust between employers and the trade unions. In cases whereby workers believe their employers aren't transparent with them, strike can take place.

• Employee debt: When employees are owed certain amount of money and the employer is not doing anything reasonable about paying, the workers may strike.

• Working conditions: Workers can engage in strike in order to seek for improvement in their working conditions. This may be probably because they need better equipments, medical facilities etc.

The detrimental effects that strikes has on various stakeholders in an economy are:

Effects on employers: Strike affects business and it is vital for employers to know their rights and keep up to date with the current labour laws and legislation. Strike leads to loss of revenue for the owner and if the strike continues.for a long time, it can badly affect the business.

Effects on employees: Striking employees who belong to a union are under the obligation to strike when the union wants. They can be at risk of losing their wages and benefits such as sick and holiday pay, medical aid insurance if the strike drags continues for an extended period of time.

Effect on the economy: The impact of strike will be felt by the economy in the immediate and long term future. Strike can harm a country’s investment and reputation internationally. The GDP growth will also be affected and consequences of higher wages in some sectors would lead to higher inflation.

Pharmaceutical Company (PC) has made record profits in the last 10 years. For each of the first 9 years, PC has declared dividends. In the 10th year, however, PC decides not to decare dividends and to reinvest that money into new drugs. Harry, a shareholder who relies on the dividends for income, sues the Board of Directors and the Officers for failing to issue a divident in the 10th year. Who wins and why?

Answers

Answer:

As in my consideration the pharmaceutical organization might won the case , as for all the dividend bonds concerned decision are taken by the organizational financial advisor, and it's the responsibility of financial advisor to choose whether to issue the revenue as dividend bonds or to hold them for more investment to generate large revenue. Thus it's the choice of the corporate that whether to issue dividend or not.

The dividend is the portion of profit that is paid to the shareholders in respect to the funds invested by them for the long-term. It is paid to the preference shareholders at a fixed rate at the end of each period while it is paid to the equity shareholders based upon the amount of profit.

The case for the dividend is won by the pharmaceutical organization.

The reason is the payment or non-payment of dividend to the shareholders' is a concerned decision that is taken by the board of directors and financial advisors of the organization.

It becomes responsibility of the financial advisor to take advantageous decision for the organization and shareholders, that is the payment of dividend is the current period is feasible or holding them for reinvestment and earning more revenue is feasible.

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With your team you are working on a project that is supposed to be completed in FOUR months. You planned that EACH MONTH you are going to spend $15000 on the work for the month. At the end of the FIRST month you have spent the expected amount of $15000, but you have completed only two thirds (2/3) of the work. Answer the following questions: a) What is the Earned Value at the end of the first month. b) Calculate the Cost Variance and the Schedule Variance c) Calculate the Cost Performance Index and the Schedule Performance Index d) Analyze the progress of the project. Is the project behind or on schedule

Answers

Answer:

(a). $10000.

(b). Cost variance and Scheduled variance = -$5000.

(c). 0.66 and 0.66.

(d). task is behind schedule and the task is over budget.

Explanation:

(a). Earned value at the end of the first month can be calculated by using the formula below;

= A × B.

Where A = first month budget and B = rate at which the work is getting completed.

Earned value at the end of the first month = 15000× (2/3)

Earned value at the end of the first month = $10000

(b). The Cost Variance and the Schedule Variance can be calculated using the formula below;

Cost variance = Earned value at the end of the first month - monthly budget

Cost variance= 10000 - 15000

Cost variance = -$5000

Also, the Scheduled variance = Earned value at the end of the first month - monthly budget

= 10000 - 15000

= - $5000

(c). The cost Performance Index and the Schedule Performance Index can be calculated by using the formula below;

Cost performnace index = 10000 / 15000

= 0.66

Schedule performance index = the amount Earned / the amount that was planned.

Schedule performance index = 10000 / 15000

= 0.66.

(d). Since both schedule performance index and the Cost performance index are less than one that is 0.66, task is behind schedule and the task is over budget respectively.

Gilberto Company currently manufactures 50,000 units per year of one of its crucial parts. Variable costs are $2.00 per unit, fixed costs related to making this part are $50,000 per year, and allocated fixed costs are $40,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.20 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 50,000 and buying 50,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier

Answers

Answer:

Net incremental cost of buying   (10,000). \

Gilberto Company should produced the parts internally . Doing so would saving its $10,000 per year

Explanation:

The relevant cash flow from the accepting the offer of the outside suppliers include

Extra variable cost of buying

Savings in direct fixed manufacturing overhead

Unit variable cost of making: =$2  

                                                                                                       $

Variable cost of external purchase ($3.2× 50,000)              160,000  

Variable cost of making ($2× 50,000)                                   (100,000 )

Extra variable cost of buying                                                   (60,000 )

Savings in direct fixed cost                                                      50,000

Net incremental cost of buying                                             (10,000)

Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $9,300 (that had cost $6,873) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. 12 Sold merchandise for $5,000 (that had cost $3,240) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Prepare journal entries to record the above credit card transactions of Levine Company

Answers

Answer:

Dr Apr 08 Cash $8,928

Dr Credit Card Expense $372

Cr Sales $9300

Apr 08 Cost of goods sold $6,873

Merchandise inventory $6,873

Dr Apr 12 Accounts receivable- Continental $4,875

Dr Credit card expense $125

Cr Sales $5,000

Dr Apr 12 Cost of Goods Sold $3,240

Cr Merchandise Inventory $3,240

Explanation:

Levine CompanyJournal entries

Date General Journal Debit Credit

Dr Apr 08 Cash $8,928

Dr Credit Card Expense $372

(4%×9300)

Cr Sales $9300

Apr 08 Cost of goods sold $6,873

Merchandise inventory $6,873

Dr Apr 12 Accounts receivable- Continental $4,875

Dr Credit card expense $125

(2.5%×5000)

Cr Sales $5,000

Dr Apr 12 Cost of Goods Sold $3,240

Cr Merchandise Inventory $3,240

The ability to think strategically is a critical element for any organization to compete successfully and build the necessary competitive advantage needed for sustained superior performance. Managers and business leaders will be asked to make critical business decisions that will determine the future of the organization. Discuss how the business simulation will contribute to the development of these skills. What value can a new employee with the ability to think strategically bring to an organization? How do you intend to develop these skills over the length of the class?

Answers

Answer:

Answer 1:

A business reenactment is a domain that demonstrates sensible serious circumstances to pioneers in a setting where they stand up to jobs and have introduction to the all display. Members settle on choice without genuine dangers, giving them an encounter of basic interdependencies, to implement best practices, and test the devices they can representative to increase their organization's key execution pointers.  

They are a magnificent instrument for incite instinct about cooperation’s among the factors that direct hierarchical presentation, additionally give a organized composite condition inside which pioneers can test, without chance and to comprehend cause-impact communications among factors. The bit of leeway with deference genuine world is they can attempt again in the event that they committed errors the first run through  

Answer 2:

Extraordinary worth. Think deliberately is a key ability so as to increment authoritative execution, this capacity give a significant device to bargain settle on choices process every day, on the grounds that individuals can envision impacts of their own decisions in a sensible degree. It is definitely an important condition for advancement of developing pioneers.  

Answer 3:

The thought is to manufacture huge mental models that fill in as a structure to effectively confront future circumstances.

Carlinville Car Parts, Inc. has been provided by its lenders and owners with $46,000,000 to purchase assets. The most recent income statement showed Earnings Before Interest and Taxes (EBIT, or Operating Income) of $10,500,000, and net income of $3,950,000. Income tax was paid at a 25% average annual rate. What was Return on Invested Capital (ROIC) for the year?

Answers

Answer:

17%

Explanation:

The formula to calculate ROIC is:

ROIC= Net operating profit after tax/ Total invested capital

ROIC= EBIT*(1-Tax rate)/Total invested capital

ROIC= 10,500,000*(1-0.25)/46,000,000

ROIC= 7,875,000/46,000,000

ROIC= 0.17 → 17%

According to this, the answer is that the Return on Invested Capital (ROIC) for the year is 17%.

Paddle​ Paradise, Inc. sells 2 comma 000 canoes per year at a sales price of $ 470 per unit. It sells in a highly competitive market and uses target pricing. The company has calculated its target full product cost at $ 800 comma 000 per year. Fixed costs are $ 320 comma 000 per year and cannot be reduced. What is the target variable cost per unit assuming units sold are equal to units​ produced

Answers

Answer:

Target unitary variable cost= $240 per unit

Explanation:

Giving the following information:

Sales in units= 2,000

Selling price= $470

Total cost= $800,000 per year

Fixed costs= $320,000 per year.

First, we need to calculate the total variable cost:

Total variable cost= total cost - total fixed costs

Total variable cost= 800,000 - 320,000

Total variable cost= 480,000

Now, we can calculate the target unitary variable cost:

Target unitary variable cost= 480,000/2,000

Target unitary variable cost=$240 per unit

Pricing Strategy, Sales Variances Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following. Budgeted Volume Budgeted Price Product R 125,900 $26 Product S 156,500 22 Product T 22,500 21 At the end of the year, actual sales revenue for Product R and Product S was $3,220,000 and $3,358,000, respectively. The actual price charged for Product R was $25 and for Product S was $20. Only $11 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled $645,150 for this product. Required: 1. Calculate the sales price and sales volume variances for each of the three products based on the original budget. Sales price variance Sales volume variance Product R $ $ Product S $ $ Product T $ $ 2. Suppose that Product T is a new product just introduced during the year. What pricing strategy is Eastman, Inc., following for this product? Check My Work

Answers

Answer:

Check the explanation

Explanation:

Sales price variance = (Actual price - Budgeted price) * Actual units sold

Product R : ($25 - $26) * 123000 = $123000 unfavorable

Product S:($20 - $22) * 162700 = $325400 unfavorable

Product T: ($10 - $20) * 54000 = $540000 unfavorable

Sales volume variance = (Actual units - Budgeted units) * Standard price

Product R : (120000 - 123000) * 26 = $78000 favorable

Product S:(150000 - 162700) * 22 = $279400 favorable

Product T: (20000 - 54000) * 20 = $680000 favorable

Notes:

Actual units:

Product R = $3075000/ $25 = 123000

Product S = $3254000/$20 = 162700

Product T = $540000/$10 = 54000 units

Market researchers have determined nine categories of lifestyles for computer users. One of the categories is described as "Mouse Potatoes," who like the Internet for entertainment and can't wait to buy the latest in "techno-entertainment." In terms of the diffusion process, how would "Mouse Potatoes" be classified?

Answers

Answer: Innovators.

Explanation:

The Diffusion Process defines how new products are able to spread across a market.

It does this by using the Adoption Process to determine the various groups in the market and how fast the product gets to those groups. There are 5 groups in total.

- Innovators

- Early Adopters

- Early Majority

- Late Majority

- Laggards.

In the above scenario, the Mouse Potatoes would be the Innovators. These are the first buyers of a product and as such their opinions are very important as they then tell others how useful the product is. Mouse Potatoes regularly browse the net looking for the latest in "techno-entertainment", so they can buy or use it first thus making them Innovators.

Supposed your organization used a qualitative risk assessment matrix with three levels each of probability and consequences (high, medium and low). In evaluating a project's risks, you determine that commercial risks pose a low probability of occurrence but high consequences. On the other hand, legal risks are evaluated as having a high probability of occurrence and medium consequence. If you are interested in prioritizing your risks, What should be considered first?

Answers

Answer:

I consider that commercial or legal risks should be prioritized as they have a high probability of occurrence and  medium consequence is not low, so it affects a project or company in a medium degree.

Explanation:

Commercial and legal risks: the more you know about a company, the safer the commercial exchanges with it will be. Knowing all the official information published in public records, in the media and that relating to their management teams, shareholders or administrators will complete that previous image of who we are relating to and will prevent us from taking surprises in the future.

Furthermore, it is important to bear in mind that initially, if the project or the company does not have all its clearly established legal norms, it may incur a sanction and be forced to compensate damages due to its breach of norms or regulations and contractual obligations.

This type of risk also arises as a consequence of failures in contracts and transactions, which derive from malicious acts, negligence or involuntary acts that do not make it possible to formalize or execute contracts or transactions.

Bramble Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (6 pounds at $3.10 per pound) $18.60 Direct labor (4 hours at $10.00 per hour) $40.00 During the month of April, the company manufactures 190 units and incurs the following actual costs. Direct materials purchased and used (2,200 pounds) $7,260 Direct labor (770 hours) $7,623 Compute the total, price, and quantity variances for materials and labor. Total materials variance $ Materials price variance $ Materials quantity variance $ Total labor variance $ Labor price variance $ Labor quantity variance $ Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT

Answers

Answer and Explanation:

a. The computation of the material price variance is shown below:

= Actual Quantity × (Standard Price - Actual Price)

= $7,260 × (2,200 pounds × $3.10 per pound)

= $440 unfavorable

b. The computation of the material quantity variance is shown below:

= Standard Price × (Standard Quantity - Actual Quantity)

= $3.10 × (2,200 pounds - (190 units × 6 pounds))

= $3,286 unfavorable

c. Total material variance  

= Material price variance + material quantity variance

= $440 unfavorable + $3,286 unfavorable

= $3,726 unfavorable

d. The computation of the labor price variance is shown below:

= Actual Hours × (Actual price - Standard Price)  

= $7,623 -  (770 hours × $10)

= $77 favorable

e. The computation of the labor quantity variance is shown below:

= Standard Rate × (Actual Hours - Standard hours allowed for actual units)

= $10 × (770 hours - (190 units × 4 hours)

= $100 unfavorable

Total labor variance

= Labor rate variance + labor quantity variance

= $77 favorable + 100 unfavorable

= $23 unfavorable

g The December 31, 2021, adjusted trial balance for the Blueboy Cheese Corporation is presented below. Account Title Debits Credits Cash 41,500 Accounts receivable 305,000 Prepaid rent 10,500 Inventory 45,000 Office equipment 550,000 Accumulated depreciation 230,000 Accounts payable 62,000 Notes payable (due in six months) 45,000 Salaries payable 7,000 Interest payable 1,500 Common stock 400,000 Retained earnings 125,000 Sales revenue 700,000 Cost of goods sold 420,000 Salaries expense 105,000 Rent expense 31,500 Depreciation expense 55,000 Interest expense 3,000 Advertising expense 4,000 Totals 1,570,500 1,570,500 Required: 1-a. Prepare an income statement for the year ended December 31, 2021. 1-b. Prepare a classified balance sheet as of December 31, 2021. 2. Prepare the necessary closing entries at December 31, 2021.

Answers

Answer:

Check the explanation

Explanation:

The right choice is Income summary account, since that is not in the account, closing entries can be in the following ways,

Alternative 1, one combined entry with balancing figure as retained earnings,

Date General Journal      Debit         Credit

Dec 31 Sales revenue   $7,60,000  

Cost of goods sold                                     $4,56,000

Salaries expense                                          $1,14,000

Rent expense                                                 $40,500

Depreciation expense                                   $62,000

Interest expense                                             $4,400

Advertising expense                                      $5,400

Retained Earnings                                          $77,700

Alternative 2, Transfer of Revenue and expenses separately to Retained Earnings

Date General Journal           Debit                   Credit

Dec 31 Sales revenue        $7,60,000  

Retained Earnings                                                $7,60,000

Dec 31 Retained Earnings    $6,82,300  

Cost of goods sold                                               $4,56,000

Salaries expense                                                    $1,14,000

Rent expense                                                          $40,500

Depreciation expense                                            $62,000

Interest expense                                                    $4,400

Advertising expense                                             $5,400

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 2016 as the base.2017 2016Net sales $ 276,200 $ 231,400Cost of goods sold 151,900 129,590Operating expenses 55,240 53,240Net earnings 27,820 19,820Multiple Choice65.1% for 2017 and 64.6% for 2016.55.0% for 2017 and 56.0% for 2016.119.4% for 2017 and 100.0% for 2016.36.4% for 2017 and 41.1% for 2016.117.2% for 2017 and 100.0% for 2016.

Answers

Answer:

119.4% for 2017 and 100.0% for 2016.

Explanation:

                                                      2017                2016

Net sales                                 $276,200        $231,400

Cost of goods sold                  $151,900        $129,590

Operating expenses                $55,240         $53,240

Net earnings                             $27,820          $19,820

since we are using 2016 as a base year, the $231,400 in net sales represent 100%, so the trend percentage for 2017 = net sales 2017 / net sales 2016 $276,200 / $231,400 = 1.1936 = 119.4% or a 19.4% increase.

The base year's amount will always be 100% or 1, and the trend percentages will change relative to that year.

Answer:

turtle

Explanation:

Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $80,000 per ton, one-fourth of which is allocated to product X15. Seven thousand seven hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $13 each, or processed further at a total cost of $8,300 and then sold for $19 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15

Answers

Answer:

It is more convenient to continue processing. Income will increase by $37,900

Explanation:

Giving the following information:

7,700 units of product X15 are produced from each ton of clypton.

The units can either be sold at the split-off point for $13 each or processed further at a total cost of $8,300 and then sold for $19 each.

Sell now:

Effect on income= 7,700*13= 100,100

Continue processing:

Effect on income= 7,700*19 - 8,300= 138,000

It is more convenient to continue processing. Income will increase by $37,900

Answer:

Financial advantage $33,700

Explanation:

                                                                                                      $

Sales at the split-off point  ($13 × 7,000)                               91,000

Sales after the split off point ($19 × 7,000)                            133,000

Additional sales revenue                                                         42,000

Further processing cost                                                           (8,300)

Financial advantage                                                                33,700

Financial advantage $33,700

The joint costs of $80,000 is irrelevant for this decision. Whether or not the product is processed further they had already been incurred.

Monte Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected from time and motion studies conducted over the past month. Actual time spent on the brake repairs 5 hours Hourly wage rate $12 Payroll taxes 20% of wage rate Setup and downtime 11% of actual labor time Cleanup and rest periods 27% of actual labor time Fringe benefits 25% of wage rate Determine the standard direct labor hours per brake repairs.

Answers

Answer:

=7:30hours

Explanation:

Standard direct labor hours per brake repair

= 5 Hours+(5*11%+5*27%)

=5 Hours + (0.55 hours + 1.35hours)

=7:30hours

argaryen Corporation has a target capital structure of 70 percent common stock, 5 percent preferred stock, and 25 percent debt. Its cost of equity is 10 percent, the cost of preferred stock is 5 percent, and the pretax cost of debt is 6 percent. The relevant tax rate is 23 percent.a. What is the company’s WACC?

Answers

Answer:

WACC =  8.41%

Explanation:

The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool..

After-tax cost of debt = (1- tax rate) × before tax cost of debt

                                   = (1-0.23)×  6% = 4.6%

Type                         Cost (%)               Weight               cost × weight

Equity                          10                          70                           7

Preferred stock          5                            5                             0.25

Debt                            4.6%                       25                          1.155

Total                                                       100                              8.405

WACC =  8.405 / 100   ×  100 = 8.41%

WACC =  8.41%

Vaughn Manufacturing purchased the assets of Ivanhoe Company at an auction for $5465000. An independent appraisal of the fair value of the assets is listed below: Land $1795000 Building 2840000 Equipment 2180000 Trucks 3180000 Assuming that specific identification costs are impracticable and that Vaughn allocates the purchase price on the basis of the relative fair values, what amount would be allocated to the Building

Answers

Answer:

$1,552,836

Explanation:

As the auction price is determined for whole company, which includes all the assets in the company. Auction price can be allocated to an asset based on its fair value ratio to total fair value of all assets.

As per given data

Fair Value of Assets

Land            $1,795,000

Building       $2,840,000

Equipment  $2,180,000

Trucks         $3,180,000

Total           $9,995,000

Auction price allocation = (Fair value / Total Fair value of all assets) x Auction price

Placing values in the formula

Building = ( $2,840,000 / $9,995,000) x $5,465,000

Building = $1,552,836

Crane Corporation had the following 2020 income statement. Sales revenue $197,000 Cost of goods sold 124,000 Gross profit 73,000 Operating expenses (includes depreciation of $19,000) 48,000 Net income $25,000 The following accounts increased during 2020: Accounts Receivable $10,000, Inventory $10,000, and Accounts Payable $11,000. Prepare the cash flows from operating activities section of Crane’s 2020 statement of cash flows using the direct method.

Answers

Answer:

$35,000

Explanation:

Crane Corporation

CASH FLOW STATEMENT

FOR THE YEAR ENDING 2020

Cash Flows from Operating Activities:

Net Income                                                                                    $25,000

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation on Fixed Assets                                                       $19,000

(Increase) Decrease in Current Assets:

Accounts Receivable                                                                     ($10,000)

Inventory                                                                                         ($10,000)

Increase (Decrease) in Current Liabilities:

Accounts Payable                                                                            $11,000

Net Cash Provided by operating activities                                  $35,000

Cash Flow from Investing Activities:                                                     -

Cash Flow from Financing Activities:                                                     -

Net Increase (Decrease) in Cash                                                    $35,000

Assume you are going to receive a payment of $1,000 in 5 years. You'd like to know what that cash flow would be worth in 2 years. To calculate the answer, you use the given interest rate to obtain an equivalent cash flow expressed in year 2 dollars. This is an example of calculating a...

Answers

Answer:

The multiple choices are as follows:

Group of answer choices:

A. Present Value

B. Future Value

C. Discounted Value

D. Annuity

E. Lump Sum

The correct option is C,discounted value

Explanation:

The worth of the cash flow which is $1,000 is given with reference to the worth in 5 years' terms,hence restating the cash flow to its worth in two years' time is discounting to its two years' worth.

The answer cannot be present value since the cash flow is not being discounted to today's equivalent amount.

Also,future value is not correct since future value of $1,000 is already provided in the question

g On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over eight years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current interest rate is 12%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar. $ Will the present value of your winnings using an interest rate of 12% be more than the present value of your winnings using an interest rate of 5%?

Answers

Answer:

Present value = $31,047,749

No. The present value when the interest rate is 12% is less than the present value when the interest rate is 5%

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 8 = $6,250,000

I = 12%

Present value = $31,047,748.54

Present value when interest rate is 5% = $40,395,079.75

The present value when interest rate is 5% is greater than the present value when interest rate is 12%

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

Goshford Company produces a single product and has capacity to produce 105,000 units per month. Costs to produce its current sales of 84,000 units follow. The regular selling price of the product is $126 per unit. Management is approached by a new customer who wants to purchase 21,000 units of the product for $77.40 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is not in the company’s regular selling territory, so there will be a $7.60 per unit shipping expense in addition to the regular variable selling and administrative expenses. Per Unit Costs at 84,000 Units Direct materials $ 12.50 $ 1,050,000 Direct labor 15.00 1,260,000 Variable manufacturing overhead 14.00 1,176,000 Fixed manufacturing overhead 17.50 1,470,000 Variable selling and administrative expenses 14.00 1,176,000 Fixed selling and administrative expenses 13.00 1,092,000 Totals $ 86.00 $ 7,224,000 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $77.40 per unit.

Answers

Answer:

Net income= $4,836,200

Explanation:

Giving the following information:

Offer:

21,000 units for $77.4

An increase in variable cost= $7.6 per unit

Direct materials $ 12.50 $ 1,050,000

Direct labor 15.00 1,260,000

Variable manufacturing overhead 14.00 1,176,000

Fixed manufacturing overhead 17.50 1,470,000

Variable selling and administrative expenses 14.00 1,176,000

Fixed selling and administrative expenses 13.00 1,092,000

Totals $ 86.00 $ 7,224,000

First, we need to calculate the effect on the income of accepting the offer:

Effect on income= 21,000*77.4 - 21,000*(12.5 + 15 + 14 + 14 + 7.6)

Effect on income= 1,625,400 - 1,325,100

Effect on income= 300,300

Net income= 84,000*140 + 300,300 - 7,224,000

Net income= $4,836,200

Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $6Direct labor $9Variable manufacturing overhead $3Variable selling and administrative $4Fixed costs per year: Fixed manufacturing overhead$300,000Fixed selling and administrative$190,000 During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company’s product is $50 per unit. Required:1. Assume that the company uses absorption costing:a. Compute the unit product cost.b. Prepare an income statement for the year.2. Assume that the company uses variable costing:a. Compute the unit product cost.b. Prepare an income statement for the year.

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Variable costs per unit:

Direct materials $6

Direct labor $9

Variable manufacturing overhead $3

Variable selling and administrative $4

Fixed costs per year:

Fixed manufacturing overhead$300,000

Fixed selling and administrative $190,000

During the year, the company produced 25,000 units and sold 20,000 units.

The selling price of the company’s product is $50 per unit.

The difference between the absorption costing and variable costing methods is that the first one includes the fixed manufacturing overhead to the product cost.

1) Absorption costing:

Unitary fixed overhead= 300,000/25,000= $12 per unit

Unitary product cost= 6 + 9 + 3 + 12= $30

Income statement:

Sales= 20,000*50= 1,000,000

COGS= (20,000*30)= (600,000)

Gross profit= 400,000

Total selling and administrative= (190,000 + 20,000*4)= (270,000)

Net income= 130,000

2) Variable costing method:

Unitary variable cost= 6 + 9 + 3= $18

Income statement:

Sales= 1,000,000

Variable cost= (20,000*22)= (440,000)

Contribution margin= 560,000

Fixed manufacturing overhead= (300,000)

Fixed selling and administrative= (190,000)

net income= 70,000

Consider a market where the demand and supply for the good are described by the following equations: begin mathsize 14px style straight Q subscript straight D space equals space 225 space minus space 3 straight P end style and begin mathsize 14px style straight Q subscript straight S space equals space minus space 22.5 space plus space 1.5 straight P end style.

If the government implements a price ceiling of $45, this will result in a

A. surplus of 22.5 units.

B. a surplus of 45 units.

C. a shortage of 45 units.

D. a shortage of 22.5 units.

Answers

Answer:

The correct option is (c)a shortage of 45 units.

Explanation:

Solution

Given that:

Qd=225-3P

Qs=-22.5+1.5P

Then,

Set Qd=Qs for equilibrium

225-3P=-22.5+1.5P

4.5P=247.50

P=$55

Now

The  government forces a ceiling of $45, it is binding as it is lesser than the equilibrium price.

Thus,

Let calculate the demanded quantity and supplied quantity at a price of $45

Now,

Qd=225-3*45=90

Qs=-22.5+1.5*45=45

Shortage=Qd-Qs=90-45=45 units .

Therefore, there is a shortage of 45 units.

On December 31, 2019, Irey Co. has $3,000,000 of short-term notes payable due on February 14, 2020. On February 8, 2020, Irey borrowed $1,200,000 (long-term loan) from County Bank and used $1,000,000 additional cash to liquidate $2,200,000 of the short-term notes payable. The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2019 balance sheet which is issued on March 5, 2020 is

Answers

Answer:

$1,800,000

Explanation:

Given short term notes payable = $3,000,000

Total amount used to liquidate short term notes = $2,200,000

Balance = $3,000,000 - $2,200,000 = $800,000

The additional $1,200,000 which is borrowed from Country Bank will not increase the short term notes payable because it's a long term credit

The additional $1,000,000 cash used will now be added to the balance amount

Amount to be reported as current liabilities = $1,000,000 + $800,000

= $1,800,000

Therefore the amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2019 balance sheet which is issued on March 5, 2020 is $1,800,000

If the marginal propensity to consume decreases, then the marginal propensity to save will decrease by the same percentage. the spending multiplier will decrease. the money multiplier will decrease. the rate of savings will decrease. the spending multiplier will increase.

Answers

Answer:

1.If the marginal propensity to consume decreases, then

a)the marginal propensity to save will decrease by the same percentage.

b)the spending multiplier will decrease.

c)the money multiplier will decrease.

d)the rate of savings will decrease.

e)the spending multiplier will increase.

2.Which of the following might cause stagflation in an open-market economy operating at equilibrium in the intermediate range of the aggregate supply curve?

a)Over the course of time, companies begin to provide educational opportunities for their employees.

b)The price of oil decreases as new reserves are found in the Alaskan wilderness.

c)The government sets a price ceiling for gasoline below market equilibrium.

d)An earthquake causes a serious rupture in the Alaskan oil pipeline that will take 6 months to repair.

e)Consumers fear a recession so they cut back on spending causing massive layoffs in major cities across the United States.

3.According to Classical economists,

a)the economy is stable in the long run causing unemployment to increase during time of recession.

b)the economy is stable in the long run and macroeconomic equilibrium can occur at less than full employment.

c)the economy is stable in the long run and self correcting to full employment.

d)the economy is unstable in the long run causing unemployment to increase during time of recession.

e)the economy is unstable in the long run and self correcting to full employment.

4.Which of the following will cause a decrease in SRAS?

a)An increase in labor productivity

b)An decrease in employee wages

c)An increase in government regulations on businesses

d)An increase in consumer spending

e)A decrease in investment spending

5.When inflation has reached a peak, economists would say that the economy has reached the

a)trough of the business cycle.

b)expansion of the business cycle.

c)peak of the business cycle.

d)contraction of the business cycle.

e)bottom of the business cycle.

6.In the circular flow diagram, tourists spend money in

a)the product market that provides goods and services to firms.

b)the product market that provides profit for firms.

c)the product market that provides revenue for firms.

d)the factor market that provides profit for firms.

e)financial markets that provides profit for firms.

7.Which of the following statements about the official rate of unemployment in the United States is most accurate?

a)The official unemployment rate includes only structurally and frictionally unemployed persons.

b)The official unemployment rate is greater than the natural rate of unemployment.

c)The official unemployment rate does not include discouraged workers.

d)The official unemployment rate includes all unemployed persons except teenagers who would be counted as seasonally unemployed.

e)The official unemployment rate includes all people in the labor force who do not have jobs.

8.If the Federal Reserve purchases securities, then

a)consumer spending will increase and AD will shift right.

b)consumer spending will decrease and AD will shift left.

c)government spending will increase and AD will shift right.

d)investment spending will increase and AD will shift right.

e)investment spending will decrease and AD will shift left.

9.If, while maintaining a balanced budget, Congress decreases spending and taxes by $100 each, then

a)aggregate demand will shift right.

b)aggregate demand will shift left.

c)aggregate demand will remain the same.

d)aggregate supply will shift right.

e)aggregate supply will shift left

10)If Congress wanted to lower inflation and unemployment at the same time, it would most likely

a)increase the international value of the dollar.

b)increase spending on public works projects across the United States.

c)decrease personal income taxes.

d)pay subsidies to businesses that increase economic investment and provide increased training and education to their workers.

e)decrease welfare payments to the working poor.

Explanation:

Molly is a 30% partner in the MAP Partnership. During the current tax year, the partnership reported ordinary income of $200,000 before any permitted deduction for guaranteed payments and distributions to partners. The partnership made an ordinary cash distribution of $20,000 to Molly and made guaranteed payments to partners Molly, Amber, and Pat of $20,000 each ($60,000 total guaranteed payments). How much will Molly's adjusted gross income increase as a result of these items

Answers

Answer:

$62,000

Explanation:

The partnership had a total ordinary income of $200,000. Then guaranteed payments were made to its three partners Molly, Amber and Pat of $20,000 each $20,000 x 3 = $60,000.

$200,000 - 60000

= $140,000

So the partnership adjusted income is reduced to $140,000, out of that amount, 30% belongs to Molly.

30/100 × 140,000

= $42,000

Molly's share of the partnership adjusted income is $42,000.

Molly's total earnings from the partnership are $62,000

= $20,000 + $42,000

= $62,000

Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 6.90 pounds $ 2.60 per pound $ 17.94 Direct labor 0.30 hours $ 7.00 per hour $ 2.10 During the most recent month, the following activity was recorded: 19,250.00 pounds of material were purchased at a cost of $2.40 per pound. All of the material purchased was used to produce 2,500 units of Zoom. 450 hours of direct labor time were recorded at a total labor cost of $4,500. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month.

Answers

Answer:

1. Material Variances

Material Price Variance = $3,850 F

Material Quantity Variance = $5,200 U

2. Labor Variances

Labor Rate Variance = $1,350 U

Labor Efficiency Variance = $2,100 F

Explanation:

Calculation is as follows:

1. Material Variances

Material Price Variance = (Standard Price - Actual Price) x Actual units

Material Price Variance = ($2.60 - $2.4) x 19,250 pounds

Material Price Variance = $3,850 (favorable)

As the actual rate is less than standard rate the variance is favorable.

Standard Quantity = 2,500 x 6.9 = 17,250 pounds

Material Quantity Variance = (Standard Quantity - Actual Quantity) x Standard Rate

Material Quantity Variance = (17,250 - 19,250) x $2.60

Material Quantity Variance = $5,200 (Unfavorable)

As the actual raw material quantity used is higher than standard raw material quantity the variance is unfavorable.

2. Labor Variances

Actual Labor Rate = 4,500/450 = $10/hour

Labor Rate Variance = (Standard Rate - Actual Rate) x Actual Hours

Labor Rate Variance = ($7 - $10) x 450

Labor Rate Variance = $1,350 (Unfavorable)

As actual rate is higher than standard rate thus the variance is unfavorable.

Standard Hours = 2,500 x 0.3 = 750

Labor Efficiency Variance = (Standard Hours - Actual Hours) x Standard Rate

Labor Efficiency Variance = (750 - 450) x $7

Labor Efficiency Variance = $2,100 (Favorable)

As the Standard Hours is more than Actual Hours the variance is favorable.

Answer:

Check the explanation

Explanation:

Kindly check the attached image below to see the step by step explanation to the question above.

_________ activity focuses on how to provide the materials from the suppliers. This system makes the connection between the customer and business functions. It manages the transactions to receive raw and semiraw materials from the suppliers as well as the company and its customers. How many units to order is one of the key issues in supply chain management. Depending on the customers’ order, the company gives orders to the suppliers, and then the suppliers orders to the suppliers’ suppliers.

Answers

Answer: Supply Chain Management.

Explanation:

Supply Chain Management is a very integral part of any business's business.

It refers to that system by which a country controls everything that has to do with the sourcing of raw materials to the production of goods from those raw materials.

An Effective supply chain will give a company an edge in operations as it will lead to goods getting to the customer faster as well as savings for the company amongst others.

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