Answer:
The bias of most investors suffering from familiarity or overconfidence bias can be attributed to human factor of being comfortable with what the person knows. For example, Investor A knows the owner of Company B, he or she would be comfortable to invest in Company B because he or she is familiarize with the owner or the company.
On the other-hand, when an investor reviews the businesses that he or she has invested in that are doing well, the individual will become overconfident in his or her ability to know and find good prospects to invest. The investor will become laid back in doing his investigation before investing in subsequent businesses.
Explanation:
Gabriel Industries stock has a beta of 1.12. The company just paid a dividend of $1.15, and the dividends are expected to grow at 4 percent. The expected return on the market is 11.4 percent, and Treasury bills are yielding 3.8 percent. The most recent stock price is $85. (a) Calculate the cost of equity using the dividend growth model method. (b) Calculate the cost of equity using the SML method. (c) Why do you think your estimates in (a) and (b) are so different?
Answer and Explanation:
a. The computation of cost of equity using the dividend growth model method is shown below:-
Expected Dividend = Current dividend × (1 + Growth rate)
= $1.15 × (1.04)
= $1.196
Current Stock Price = $85
Cost of Equity = (Expected dividend ÷ Current stock price) + growth rate
= (1.196 ÷ 85) + 0.04
= 0.05407
or
= 5.41 %
b. The computation of cost of equity using the SML method is shown below:-
Using CAPM, Cost of Equity = Risk free rate + Stock beta × (Market return - Risk free rate)
= 3.8 + 1.12 × (11.4 - 3.8)
= 12.31%
c. Since there are two different methods like SML and dividend growth model for determining the cost of equity so the estimates are so different
Unable to borrow from other banks, University Bank is forced to turn to the Federal Reserve for needed funds. The interest rate that the Federal Reserve will charge University Bank is called the
Answer:
Discount rate
Explanation:
The discount rate is the rate of interest i.e. charged by the Fed for extending the loan to the commercial bank
In order to apply the expansionary monetary policy, Fed redcued the discount rate and apply the contractionary monetary policy so that the Fed could raise the interest rate
Therefore in the given case, the charge we called as a discount rate
2. The world has now become a “global village” in many respects. a) Explain any 5 factors working to make the world “a global village” for businesses. b) Discuss 4 major reasons why businesses go global.
Answer:
the watch has been totally fed tractors working to make a words a Glover villa for measures reserve between two globin respect as a global wind I have been by practice and a business discuss and white business as a work of the word for
Gretta's portfolio consists of $700,000 invested in a stock that has a beta of 1.2 and $300,000 invested in a stock that has a beta of 0.8. The risk-free rate is 6% and the market risk premium is 5%. Which of the following statements is CORRECT?
a. The required return on the market is 10%.
b. The portfolio's required return is less than 11%.
c. If the risk-free rate remains unchanged but the market risk premium increases by 2%, Gretta's portfolio's required return will increase by more than 2%.
d. If the market risk premium remains unchanged but expected inflation increases by 2%, Gretta's portfolio's required return will increase by more than 2%.
e. If the stock market is efficient, Gretta's portfolio's expected return should equal.
Answer: c. If the risk-free rate remains unchanged but the market risk premium increases by 2%, Gretta's portfolio's required return will increase by more than 2%.
Explanation:
To prove the above option, the Capital Asset Pricing Model can be used.
Required Return = Risk free rate + portfolio beta(market premium)
Portfolio Beta
This the weighted average of the individual betas.
Total portfolio value = 700,000 + 300,000 = $1,000,000
= ( 1.2 * 700,000/1,000,000) + ( 0.8 * 300,000/1,000,000)
= 0.84 + 0.24
= 1.08
Required return = 6% + 1.08 ( 5%)
= 6% + 5.4%
= 11.4%
Assuming risk-free rate remains unchanged but the market risk premium increases by 2%.
Required return = 6% + 1.08 ( 5% + 2%)
= 6% + 7.56%
= 13.56%
The change in required return
= (13.56% - 11.4%)/11.4%
= 18.9%
Proving that if the risk-free rate remains unchanged but the market risk premium increases by 2%, Gretta's portfolio's required return will increase by more than 2%.
Assume a corporation has earnings before depreciation and taxes of $123,000, depreciation of $41,000, and that it has a 35 percent tax bracket. a. Compute its cash flow using the following format. (Input all answers as positive values.) b. How much would cash flow be if there were only $21,000 in depreciation
Answer:
a. Computation of cash flow
Earnings before depreciation and taxes $123,000
Less: Depreciation $41,000
Earnings before taxes $82,000
Less: Taxes ($82,000*35%) $28,700
Earnings after taxes $53,300
Add: Depreciation $41,000
Cash Flow $94,300
b. If Depreciation = 21,000
Computation of cash flow
Earnings before depreciation and taxes $123,000
Less: Depreciation $21,000
Earnings before taxes $102,000
Less: Taxes($102,000*35%) $35,700
Earnings after taxes $66,300
Add: Depreciation $21,000
Cash Flow $87,300
Bella Pool Company sells prefabricated pools that cost $80,000 to customers for $144,000. The sales price includes an installation fee, which is valued at $20,000. The fair value of the pool is $128,000. The installation is considered a separate performance obligation and is expected to take 3 months to complete. The transaction price allocated to the pool and the installation is
Answer:
The transaction price allocated to the pool and the installation is $124,540.54 and $19,459.46 respectively.
Explanation:
Price Allocation to Pool = $144,000 * (128,000 / (128,000 + 20,000))
Price Allocation to Pool = $144,000 * 0.864865
Price Allocation to Pool = $124,540.54
Price Allocation to Installation = $144,000 * (20,000 / (128,000 + 20,000))
Price Allocation to Installation = $144,000 * 0.135135
Price Allocation to Installation = $19,459.46
A customer buys 1,000 shares of XYZ at $60 in a margin account, regular way settlement. Two days after the trade, XYZ has dropped to $40. The minimum maintenance margin requirement is:
Answer:
$10,000
Explanation:
A customer buys 1,000 shares of XYZ
The shares are bought at $60 in a margin account
Two days after the price of XYZ drops to $40
The first step is to calculate the current market value
= 1,000 shares×$40
= $40,000
Therefore, the minimum maintenance margin requirement can be calculated as follows
= 25/100 × current market value
= 25/100 × 40,000
= 0.25×40,000
= $10,000
Hence the minimum maintenance margin requirement is $10,000
Mangum Co. is a large company that segments its business into cost and profit centers. The Cost center for the manufacture of Product M2T incurred the following costs in October:
Direct Labor: $25/unit
Direct Materials: $80/unit
Variable Overhead: $15/unit
Traceable Fixed Costs: $62,000
Common Fixed Costs: $100,000
Sales were 2,000 units in October. Each unit sells for $210. The M2T Department is being evaluated on overall profitability. In September, the department margin was $100,000. By how much did the department margin increase or decrease in October?
a. $100,000 decrease
b. $118,000 increase
c. $18,000 increase
d. $82,000 decrease
Answer: c. $18,000 increase
Explanation:
Department margin was $100,000 in September.
October Margin = Sales - Variable Costs - Traceable Fixed Costs
= (2,000 *( 210 - 25 - 80 - 15) ) - 62,000
= (2,000 * 90) - 62,000
= $118,000
= October Margin - September Margin
= 118,000 - 100,000
= $18,000 increase
The net income reported on the income statement for the current year was $121,900. Depreciation recorded on store equipment for the year amounted to $20,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $48,030 $44,190 Accounts receivable (net) 34,440 32,660 Merchandise inventory 47,020 49,710 Prepaid expenses 5,280 4,200 Accounts payable (merchandise creditors) 45,000 41,800 Wages payable 24,590 27,310 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: $ Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities $ b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when .
Answer:
See answers below.
Explanation:
In order to get net cash flow through indirect method, we will have to make adjustment to the net income; hence we get the increase or decrease of different accounts with the data balance.
a) End beginning cash $48,030 $44,190
Increase in cash $3,840
Accounts receivable(net) $34,440 $32,660
Increase in accounts receivable $1,780
Merchandise Inventory $47,020 $49,710
Decreased inventory -$2,690
Prepaid expenses $5,280 $4,200
Increase prepaid expenses $1,080
Accounts payable(Merchandise creditors) $45,000 $41,800
Accounts payable increase $3,200
Wages payable $24,590 $27,310
Decreased wages payable -$2,720
Per below, we have some accounts that are added (+) to the net income while some are also deducted (-).
Net income $121,900
Adjustment to reconcile the net income to cash
+ Depreciation $20,100
+ Increase in cash $3,840
- Increase in accounts receivable ($1,780)
+ Inventory decrease $2,690
- Increase prepaid expenses ($1,080)
+ Accounts payable increase $3,200
- Decreased wages payable ($2,720)
Net cash $146,150
b) Briefly explain why net cash flow from operating activities is different other than net income.
The reason is that while net income refers to the earned profit by a company for a period ; cash flow from operating activities are measurement of daily cash (in and out) expended on business operation. Cash flow give explanation on the use of cash in an organization on a daily basis which includes net income from the income statement, changes in working capital, adjustments to net profits etc. t is to be noted that the starting point of calculating cash flow from operating activities is the net income.
A technical analyst has been charting the price movements of ABC stock. The stock has been fluctuating in price between $63 and $67 per share for the past 3 months. If the analyst expects a breakout through the support level, which order should be placed
Answer:
The trader should orders to buy ABC stock or take a long position to the stock.
Explanation:
The stock has been fluctuating for 3 months, hence, its value should be well analysed. Now if there is a breakout through the support level, usually with a good quarterly performance report, the stock is likely to go "bull". Buying and holding the stock is a rational decision.
Consider a university that purchases replacement chairs for its classrooms. The purchasing manager knows that the annual demand for replacement chairs is 500. The pricing schedule is as follows: Use the following Excel solution to this quantity discount problem with constant carrying cost. Carrying cost = $ 15 Ordering cost = $ 200 Annual Demand = 500
Quantity Price Q Discount Q Total Cost
100 $130 115.47 115.47 $ 66,732.05
200 $122 115.47 200.00 $ 63,000.00
500 $120 115.47 500.00 $ 63,950.00
What is the inventory ordering cost using the economic order quantity?
A. $1,000
B. $866
C. $500
D. $200
Answer:
b. $866
Explanation:
Annual demand from the question = D = $500
the ordering cost = S = $200
then the cost of carrying H = $15
we have to calculate the economic order quantity
= sqr(2*D*S)/H
= sqr(2 x 500 x 200)/25
= sqr(13333.3333)
this equals 115.469
which is approximately 115.5
next we have to calculate inventory ordering cost
= (D * S)/EOQ
= 200 *500/115.5
= 865.5
When approximated becomes $866
The inventory ordering cost using the economic order quantity is: B. $866.
First step is to calculate the Economic order quantity
Economic order quantity =√(2×D×S)/H
Where:
D=Annual demand=$500
S=Ordering cost=$200
H=Holding cost =$15
Let plug in the formula
Economic order quantity =(2 x 500 x 200)/15
Economic order quantity =√200,000/15
Economic order quantity =√13333.3333
Economic order quantity =115.46
Economic order quantity = 115.5 (Approximately)
Second step is to calculate the inventory ordering cost using this formula
Inventory ordering cost= (Annual demand× Ordering cost )/Economic order quantity
Let plug in the formula
Inventory ordering cost= (200×500)/115.5
Inventory ordering cost=100,000/115.5
Inventory ordering cost=$865.8
Inventory ordering cost=$866 (Approximately)
Inconclusion the inventory ordering cost using the economic order quantity is: B. $866.
Learn more here:https://brainly.com/question/14498670
_____ refers to the growth and spread of investment, trade, production, communication, and new technology around the world.
Answer:
Globalisation
Explanation:
Globalisation occurs when there is integration and interrelation between companies, governments, and people accross the globe. It is referred to as a capitalistic expansion where local individuals and businesses integrate into a global unregulated market.
Advanced in communication and transportation has also facilitated globalisation by easing flow of information and goods across different parties across the world.
Globalisation tends to result in spread of investment, trade, production, communication, and new technology around the world.
The term used to describe the degree to which tasks in an organization are subdivided into separate jobs is called ________.
Answer:
work specialization
Explanation:
The term being described is known as work specialization. This term, also known as division of labor, is mainly used by companies in order to divide a large job position into smaller, single tasks that can be completed by one individual. The individual that is given such a task is trained thoroughly in order for them to become a specialist in that task and output more precise workloads.
A manager is attempting to assess the probability of a recession ending in the next six months and its impact on expected profitability. The manager believes there is a 75 percent chance the recession will end in six months and profits will return to $400 million. However, there is a 25 percent chance the recession will not end in six months, resulting in a $5 million loss. The expected profits over the next six months are:
Answer:
Expected profit = $298.75 million
Explanation:
To calculate the expected return or expected profits, we will simply multiply the probability of each event by the return expected in that event and take a sum the answers. Thus, the expected profit can be calculated as follows,
Expected profit = Probability of recession ending * Profit if recession ends + Probability of recession not ending * profit or loss if recession does not end
Expected profit = 0.75 * 400 + 0.25 * -5
Expected profit = $298.75 million
Company FM2 must pay 100,000 in 4 years. In order to fully immunize from changes in interest rate, the company invests in a 3 year zero coupon bond that matures for 45,000 and a 5 year zero coupon bond that matures for X. The actuary for Company FM2 determined that their portfolio fully immunized their ability to meet their obligations at the current interest rate i. Calculate i.
Answer:
5. 11.1%
Explanation:
the options for this question are missing:
5%7.8%10%10.5%11.1%I prepared the following equation:
$100,000 = $45,000(1 + i)³ + x(1 + i)⁵
There is something that we must remember about zero coupon bonds, and that is that they are sold in thousands. This equation is complex, but there is an easier way to solve it. We can plug in the options to determine which % will result in a possible answer.
The answer is 11.1%, since the other options resulted in numbers which are not even close to a thousand.
$100,000 = $45,000(1.111)³ + x(1.111)⁵
$100,000 = $61,709.88 + 1.2763x
$38,290.12 = 1.2763x
x = $38,290.12 / 1.2763 = $30,000
If income rises from $1,000 to $1,400 and consumption rises from $800 to $1,168, the marginal propensity to consume is __________ percent.
Answer:
The marginal propensity to consume is 92 percent.
Explanation:
Marginal propensity to consume (MPC) refers to the additional expenditure on consumption by consumer as a result of an in national income.
That is, MPC is a measure of the proportion or percentage of the additional income that goes consumption expenditure.
MPC can be calculated using the following formula
MPC = ΔC / ΔY ......................................... (1)
Where;
ΔC = Change in consumption = New consumption - Old consumption = $1,168 - $800 = $368
ΔY = Change in income = New income - Old income = $1,400 - $1,000 = $400
Substituting the values into equation (1), we have:
MPC = $368 / $400 = 0.92, or 92%
Therefore, the marginal propensity to consume is 92 percent.
Consider the following scenario analysis:
Rate of Return
Scenario Probability Stocks Bonds
Recession 0.20 -5 % 14 %
Normal economy 0.60 15 8
Boom 0.20 25 4
Assume a portfolio with weights of .60 in stocks and .40 in bonds.
a. What is the rate of return on the portfolio in each scenario? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)
b. What are the expected rate of return and standard deviation of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Answer:
a. Rate of Return on the portfolio in each scenario:
Scenario Analysis:
Rate of Return
Scenario Probability Stocks Bonds Return of Return
Recession 0.20 -5 % 14 %
= 0.20((-5% x 60%) + (14% x 40%)) = 0.0052 = 0.5%
Normal economy 0.60 15 8
= 0.60((15% x 60%) + (8% x 40%)) = 0.0732 = 7.3%
Boom 0.20 25 4
= 0.20((25% x 60%) + (4% x 40%) = 0.0332 = 3.3%
Weights 1.00 0.60 0.40
b. Expected rate of return =
Recession = 0.0052
Normal economy = 0.0732
Boom = 0.0332
Total expected returns = 0.1116 = 11.2%
Mean = 3.72% (11.2%/3)
Variance = 0.001168
Standard Deviation = 0.034 = 0.03
Explanation:
a) Data:
Scenario Analysis:
Rate of Return
Scenario Probability Stocks Bonds
Recession 0.20 -5 % 14 %
Normal economy 0.60 15 8
Boom 0.20 25 4
Weights 1.00 0.60 0.40
b) The rate of return for each portfolio is derived by weighing the securities, adding the resultant figures and applying the scenario probability. The expected rate of return is the addition of the returns of all the portfolio under the three scenarios. The step for obtaining the standard deviation is to calculate the mean, the variance, and getting the square root of the variance.
Average Rate of Return
Determine the average rate of return for a project that is estimated to yield total income of $148,500 over five years, has a cost of $300,000, and has a $30,000 residual value.
%
Answer:
22%
Explanation:
The formula to compute the accounting rate of return is shown below:
= Average net income ÷ average investment
where,
Average net income is
= Total income ÷ number of years
= $148,500 ÷ 5 years
= $29,700
And, the average investment would be
= (Cost - salvage value) ÷ 2
= ($300,000 - $30,000) ÷ 2
= $270,000 ÷ 2
= $135,000
Now put these values to the above formula
So, the rate would equal to
= $29,700 ÷ $135,000
= 22%
On July 1, Year 1, Yellow Rose Corp. paid $25,000 cash for a machine and paid an additional 8% sales tax. On the same date, an electrician was paid $1,000 to install custom switches to enhance the functionality of the machine. Yellow Rose estimates a five-year useful life, uses straight-line depreciation, and expects a $2,000 salvage value. The machine was placed in service on October 1, Year 1. Yellow Rose has a calendar year-end.On December 31, Year 2, the machine was sold for $14,000 cash. Depreciation expense for Year 2 was properly recorded.Use the data above to prepare each of the journal entries for Yellow Rose specified below.1. Prepare the journal entry to record the cost of the machine.2. Prepare the journal entry to record the Year 1 depreciation for the machine.3. Prepare the journal entry to record the sale of the machine.
Answer:
Journal entries are given below
Explanation:
July 1, Year 1 (Yellow Rose Corp. purchased a machine)
DEBIT CREDIT
Machine $28,000
Cash $28,000
Working
Cost of machine = Purchase price + Sales tax + Installation
Cost of machine = $25,000 + $2,000 + $1,000
Cost of machine = $28,000
Depreciation for year 1 (October to December)
DEBIT CREDIT
Depreciation Expenses $1,300
Accumulated Depreciation $1,300
Working
Annual Depreciation expense = (Cost - salvage value) / useful life
Annual Depreciation expense = (28000 - 2000) / 5 = $5,200
Depreciation for 3 months
Depreciation = $5,200 x 3/12
Depreciation = $1300
Sale of the machine
DEBIT CREDIT
Cash $14,000
Loss on Sale $7,500
Accumulated Depreciation $6,500
Machinery $28,000
Workng
Gain/Loss on sale = Sale proceed - carrying value
Gain/Loss on sale = 14,000 - 21,500
Loss on sale = $7,500
Carrying value = Cost - Accumulated depreciation
Carrying value = 28,000 - 6500 = 21500
Accumulated depreciation = $1,300 + $5,200 = $6,500
Self minus Defense Schools, Inc. is authorized to issue 200,000 shares of $2 par common stock. The company issued 73,000 shares at $ 5 per share. When the market price of common stock was $ 7 per share, Self minus Defense Schools declared and distributed a 14% stock dividend. Later, Self minus Defense Schools declared and paid a $ 0.70 per share cash dividend.
Required:
a. Journalize the declaration and the distribution of the stock dividend.
b. Journalize the declaration and the payment of the cash dividend.
Answer: Please see answer in explanation column
Explanation:
Number of outstanding shares =73,000
Stock Dividend declared % 14%
Market value per share $7
a) journal entry to record the declaration of stock dividend
Account Debit Credit
Stock dividend $71,540
Commo9n stock divo9dend redistributable $20,440
Paid in capital in excess of par
($71,540 - $20,440) $51,100
Calculations
Stock dividend = 73,000 x 14% x $7=$71,540
Common stock dividend redistributable =73,000 X 14% X $2=$20,440
b) journal entry to record the distribution of stock dividend
Account Debit Credit
Common stock dividend redistributable $20,440
Common stock $20,440
Calculation= Common stock dividend redistributable =73,000 X 14% X $2=$20,440
c) journal entry to record the declaration of cash dividend
Account Debit Credit
Cash dividend $58,254
Dividend payable - common stock $58,254
Calculations
Cash dividend= Numberof shares outstanding×Cash dividend per share
=[73, 000 shares+(73,000 shares×14%)]×$0.70 each
=[73,000 shares+ 10,220 shares]×$0.70 each
=83,220 shares×$0.70 each
= $58,254
d)journal entry to record the payment of cash dividend
Account Debit Credit
Dividend payable - common stock $58,254
Cash dividend $58,254
Southtown Realty has entered into agency agreements with Sara, a seller and Tom, a buyer. Tom wants to make an offer on Sara’s home. Is this possible?
Answer: Yes it's possible as long as Tom and Sara gives a written consent to the dual agency arrangement.
Explanation:
From the question, we are informed that Southtown Realty has entered into agency agreements with Sara, a seller and Tom, a buyer. Tom wants to make an offer on Sara’s home.
This is possible as long as Tom and Sara gives a written consent to the dual agency arrangement.
The date the directors vote to pay a dividend is called the: Multiple Choice Date of declaration. Date of record.
Answer: Date of declaration
Explanation:
The declaration date is also known as announcement date. The date of declaration is the date when the board of directors announces when the next dividend will be paid.
It should be noted that the statement consist of the size of the dividend, date of the previous dividend and also the next dividend payment date.
intext:"A company has net sales of $1,200,000 and average accounts receivable of $400,000. What is its accounts receivable turnover for the period"
Answer:
i think it would be 4x
Explanation:
im dumb
a proposed new project has projected sales of $222000, costs of $96500, and deperciation of $26100. The tax rate is 24 percent.Calculate operating cash flow using the four different approaches.
The question is incomplete. Here is the complete question
A proposed new project has projected sales of $222000, costs of $96500, and deperciation of $26100. The tax rate is 24 percent.Calculate operating cash flow using the four different approaches.
(Do not round intermediate calculations.)
A. EBIT+Depreciation-Taxes
B. Top-Down
C. Tax-Shield
D.Bottom-Up
Answer:
(A) $101,644
(B) $101,644
(C) $101,644
(D) $101,644
Explanation:
A proposed new project has a sales of $222,000
The cost is $96,500
The depreciation is $26,100
The tax rate is 24%
= 24/100
= 0.24
(A) Using the EBIT + Depreciation - Taxes approach, the operating cash flow can be calculated as follows
EBIT= Sales-Cost-Depreciation
= $222,000-$96,500-$26,100
= $99,400
Taxes= EBIT × tax rate
= $99,400 × 0.24
= $23,856
EBIT + Depreciation - Taxes
$99,400+$26,100-$23,856
= $125,500-$23,856
= $101,644
(B) Using the Top down approach, the operating Cash flow can be calculated as follows
Top down= Sales-Cost-Taxes
= $222,000-$96,500-$23,856
= $101,644
(C) Using the tax shield approach, the operating cash flow can be calculated as follows
Tax shield= (sales-cost)×(1-Tax rate)+(depreciation×tax rate)
= ($222,000-$96,500) × (1-0.24) + ($26,100×0.24)
= 125,500×0.76+6,264
= $101,644
(D) Using the bottom up approach, the operating cash flow can be calculated as follows
Bottom up = NI + depreciation
NI=EBIT-Taxes
= $99,400-$23,856
= $75,544
Bottom up=$75,544 + $26,100
= $101,644
Research on women working in the corporate world indicates that one reason professional women leave their jobs is that the common corporate structure does not value:
Answer:
A. an interdependent worker.
Explanation:
Interdependent worker means the person who is handling the day to day operations of the business independently.
According to the given question, if the women are working in the corporate world than the chances of the leaving of their jobs is that the general corporate structure do not value them as an interdependent worker just because the person is a woman
Therefore the correct option is A
9) Selected information regarding a company's most recent quarter follows (all data in thousands). 9) _______ Direct labor $540 Beginning work in process inventory $330 Ending work in process inventory $420 Cost of goods manufactured $1620 Manufacturing overhead $830 What was the cost of direct materials used for the quarter
Answer:
Direct material= $340
Explanation:
Giving the following information:
Direct labor $540
Beginning work in process inventory $330
Ending work in process inventory $420
Cost of goods manufactured $1620
Manufacturing overhead $830
To calculate the direct material used in production, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
1,620= 330 + DM + 540 + 830 - 420
Direct material= $340
On July 1, 20X1, James and Short formed a partnership. James contributed cash. Short, previously a sole proprietor, contributed property other than cash, including realty subject to a mortgage, which the partnership assumed. Short’s capital account on July 1, 20X1, should be recorded at
Answer:
James and Short LLC
Short's capital account on July 1, 20X1 should be recorded at the fair value of contributed property minus the mortgage liability, which the partnership assumed.
Explanation:
The fair value of contributed property is the current market value of the contributed property by Short. It is the market value that will determine how the contributed property can be valued. The market value assumes that the contributed property is being sold in pieces and not as a whole. This is why the value is considered a fair basis for recognizing the capital contribution of Short into the partnership.
Mr. Fred Mitchell is requesting the birth record for Amy, his birth daughter. Mr. and Mrs. Mitchell gave Amy up for adoption four years ago. Should you release the records to him? Why or why not? Yes or No
Answer:
"No" would be the correct choice.
Explanation:
The documentation could not be issued to him whenever their Amy is indeed not Mr. Mitchel's legal offspring attributable to some other individual's custody. They cannot compensate for the demand as well as text.Whether there is some doubt about either the approved note's authenticity, seek to contact the individual by contacting himself, either correlate signs on organizational documents.Which of the following reasons would cause a company to reject an offer to accept business at a special price?
a. The additional sales will increase differential income.
b. The additional sales will not increase fixed expenses
c. The additional sales will increase fixed expenses
d. The additional sale will not conflict with regular sales.
Answer:
The additional sale will not conflict with regular sales.
Explanation:
Accept business at a special price if the additional sales conflict regular sales. That is, special price must maintain the status quo or improve it.
The production budget shows expected unit sales of 40000. Beginning finished goods units are 3800. Required production units are 41600. What are the desired ending finished goods units
Answer:
desired ending inventory= 5,400 units
Explanation:
Giving the following information:
Sales= 40,000 units
Beginning finished goods= 3,800 units
Production= 41,600 units
To calculate the desired ending inventory, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
41,600= 40,000 + desired ending inventory - 3,800
41,600 + 3,800 - 40,000= desired ending inventory
desired ending inventory= 5,400 units
