Answer:
a. True.
Explanation:
In determining whether a company's financial condition is improving or deteriorating over time, horizontal analysis of financial statement data would be more useful than vertical analysis.
In Financial accounting, Horizontal analysis can be defined as an analysis and evaluation of a financial statement which illustrates or gives information about changes in the amount of corresponding financial statement items, benchmarks or financial ratio over a specific period of time. It is one of the most important technique that is used to measure how a business is doing financially. Hence, it is also referred to as the trend analysis.
Under the horizontal analysis of financial statement, we use the financial statements of two or more periods; earliest and latter periods.
Generally, the earliest is chosen as the base period while all other items on the statement for a latter period will be compared with the items on the statement of the base period.
data related to the inventories of alpine ski equipment and supplis is presented below 180000 the inventory of skis would be valued at
Answer:
$128,000
Explanation:
The computation of inventory of skis is shown below:-
NRV = Selling price - Sales commission
= $180,000 - ($180,000 × 10%)
= $180,000 - $18,000
= $162,000
Cost = $128,000
The cost which is $128,000 lower than $162,000 NRV
So, Inventory of Skis will be $128,000 which is Lower of cost or NRV
Therefore the correct answer is $128,000
"When The Bank of Bank County borrows funds from the Federal Reserve; the rate the Fed charges the commercial bank is called the _____ rate."
Answer: Bank Rate/ Discount Rate
Explanation:
The Bank Rate is the interest rate that the Fed as the country's Central Bank charges commercial banks when they borrow money from it. The loans given are usually short term in nature.
The Bank Rate is a very useful tool in Monetary Policy by the Central Bank. If the Fed for instance would like to increase Economic activity by injecting cash into the economy, they can lower the bank rate and thus encourage more banks to loan money from them which will then be loaned to the public. If the Fed wanted to decrease Economic activity, the reverse would hold true.
In a task assignment situation, in how many different ways can five jobs be assigned to five machines if each job must be assigned to each machine and each machine must be assigned one job?
A. 5
B. 1
C. 3,125
D. 120
E. 25
Answer: D. 120
Explanation:
The first machine being assigned a job can be assigned one from 5 jobs.
Once that happens, the next machine can only be assigned from any one of 4 jobs.
The next machine, any one of 3 jobs.
The next machine, any one of 2 jobs.
The Last machine gets the last job remaining.
The different ways a job can be assigned therefore are;
= 5 * 4 * 3 * 2 * 1
= 120
When using capital rationing, unfunded proposals a.are discarded for purposes of decision making for all future plans. b.are always considered to be unacceptable. c.may be reconsidered if funds later become available. d.None of these choices are correct.
Answer:
Correct Answer:
a. are discarded for purposes of decision making for all future plans.
Explanation:
In business organization, there will be situations where there will be need to ration the capital used in the business for effective running of the business. When there is an ongoing project, the project expenses would be rationed in such a way that, relevant ones would receive attention from the megre capital fund while unfunded proposal would be discarded.
Garcia Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting
Answer:
i d k
Explanation:
The total amount paid on a 35 year loan was $98,000. If the interest rate was 4.1% and compounded monthly, what was the principal
Answer:
Principal = $23,392.45
Explanation:
To solve this, we are required to find a certain amount invested for 35 years at an interest rate of 4.1% compounded annually, yielding $98,000.
The formula for compounded interest is used, and this is done as follows:
[tex]FV=PV(1+\frac{r}{n} )^{nt}\\Where:\\FV=Future\ value\ =\ \$98,000\\PV= Present\ value\ =\ ???\\r= interest\ rate\ = 4.1\%=0.041\\n = number\ of\ compounding\ periods\ per\ year\ = monthly\ = \ 12\\ t= time\ =\ 35\ years[/tex]
[tex]98000=PV(1+\frac{0.041}{12} )^{(12\times35)}\\98000=PV(1+0.003417)^{420}\\98000=PV(1.003416667)^{(420)}\\98000=PV(4.189386)\\PV= \frac{98000}{4.189386} \\\\=PV= \$23,392.45[/tex]
Therefore, the principal is approximately $23,392
Penne Pharmaceuticals sold 2 million shares of its $5 par common stock to provide funds for research and development. If the issue price is $16 per share, what is the journal entry to record the sale of the shares
Answer:
Please see the journal entry below.
Explanation:
Cash account Dr
(2m shares × $16 per share) $32,000,000
Common stock account Cr
(2m shares × $5 per common stock) $10,000,000
APIC - Common stock account Cr
[($16 - $5) × 2m shares]
$22,000,000
Martin Shkreli, former CEO of pharmaceutical company Retrophin,, has many traits of a leader. He is very intelligent, brash, extroverted, and driven to succeed. But he lacks the key trait to keep the confidence of others, which eventually led to a fraud conviction. He lacks
Answer:
Integrity.
Explanation:
In this scenario, Martin Shkreli, former CEO of pharmaceutical company Retrophin, has many traits of a leader. He is very intelligent, brash, extroverted, and driven to succeed. But he lacks the key trait to keep the confidence of others, which eventually led to a fraud conviction. Hence, he lacks integrity.
Integrity can be defined as an attribute which involves being honest, sincere, upright, adherence to strong moral and ethical principles or morally based values.
In this context, Martin Shkreli was eventually convicted for fraud because he lacked the quality of being trustworthy, truthful, honest and keeping the confidence of others.
Which of the following costs should not be included in product costs for internal management reports that are used for decision-making?
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.
A firm has a long-term debt-equity ratio of .4. Shareholders’ equity is $1 million. Current assets are $200,000, and the current ratio is 2. The only current liabilities are notes payable. What is the total debt ratio?
Answer:
Total debt ratio is 33.33%
Explanation:
A long term debt to equity ratio of 0.4 tells that the value of long term debt is 0.4 or 40% of the value of the equity. If the value of the equity is $1 million, the value of long term debt is,
Long term debt = 0.4 * 1000000 = $400000
A current ratio is calculated by dividing the current assets by the current liabilities. It tells how many current assets are available to satisfy $1 of current liabilities. A current ratio of 2 means that for every $1 of current liability, $2 of current assets are available. Thus, current liabilities are half of current assets. If the value of current assets is $200000, the value of current liabilities is,
Current liabilities = 200000 * 1/2 = $100000
Total liabilities = 400000 + 100000 = $500000
A debt ratio is calculated by dividing the value of total debt or total liabilities by the value of total assets.
Total assets = total liabilities + total equity
Total assets = 500000 + 1000000
Total assets = $1500000 or $1.5 million
Total debt ratio = 500000 / 1500000
Total debt ratio = 1/3 or 0.3333 or 33.33%
In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2017 were as follows.
Budget Actual
Indirect materials $14,200 $13,700
Indirect labor 19,100 19,900
Utilities 11,400 12,100
Supervision 4,600 4,600
All costs are controllable by the department manager.
Prepare a responsibility report for April for the cost center.
Answer:
HANNON COMPANY
Assembly Department
Manufacturing Overhead Cost Responsibility Report
For the Month Ended April 30,2017
Controllable Cost Budget$ Actual$ Difference$ Remark
Indirect materials 14,200 13,700 500 Favourable
Indirect Labor 19,100 19,900 -800 Unfavourable
Utilities 11,400 12,100 -700 Unfavourable
Supervision 4,600 4,600 0 None
Total 49,300 50,300 -1,000 Unfavourable
The Murdock Corporation reported the following balance sheet data for 2016 and 2015:
2016 2015
Cash $ 96,245 $ 33,155
Available-for-sale securities (not cash equivalents) 24,000 102,000
Accounts receivable 97,000 83,550
Inventory 182,000 160,300
Prepaid insurance 3,030 3,700
Land, buildings, and equipment 1,284,000 1,142,000
Accumulated depreciation (627,000) (589,000)
Total assets $ 1,059,275 $ 935,705
Accounts payable $ 91,640 $ 165,670
Salaries payable 26,800 33,000
Notes payable (current) 40,300 92,000
Bonds payable 217,000 0
Common stock 300,000 300,000
Retained earnings 383,535 345,035
Total liabilities and shareholders' equity $ 1,059,275 $ 935,705
Additional information for 2016:
Sold available-for-sale securities costing $78,000 for $84,200.
Equipment costing $20,000 with a book value of $6,700 was sold for $8,550.
Issued 6% bonds payable at face value, $217,000.
Purchased new equipment for $162,000 cash.
Paid cash dividends of $28,500.
Net income was $67,000.
Required:
Prepare a statement of cash flows for 2016 in good form using the indirect method for cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
The Murdock Corporation
Statement of Cash Flows for the year ended December 31, 2016, using the indirect method:
Operating Activities:
Net Income $67,000
Add depreciation 38,000
Accounts receivable -$13,450
Inventory -$21,700
Accounts payable -$74,030
Salaries payable -$6,200
Notes payable (current) -$51,700
Net cash from operations -$62,080
Investing Activities:
Sale of securities $84,200
Sale of Equipment $8,550
New Equipment -$162,000
Net cash from investing activities -$69,250
Financing Activities:
Issue of bonds $217,000
Dividends -$28,500
Net cash from financing activities $188,500
Net cash flows $57,170
Explanation:
a) Data and Calculations:
Balance Sheet for 2016 and 2015:
2016 2015
Cash $ 96,245 $ 33,155
Available-for-sale securities
(not cash equivalents) 24,000 102,000
Accounts receivable 97,000 83,550
Inventory 182,000 160,300
Prepaid insurance 3,030 3,700
Land, buildings, and equipment 1,284,000 1,142,000
Accumulated depreciation (627,000) (589,000)
Total assets $ 1,059,275 $ 935,705
Accounts payable $ 91,640 $ 165,670
Salaries payable 26,800 33,000
Notes payable (current) 40,300 92,000
Bonds payable 217,000 0
Common stock 300,000 300,000
Retained earnings 383,535 345,035
Total liabilities and shareholders'
equity $ 1,059,275 $ 935,705
Additional information for 2016:
Proceeds from sale of securities = $84,200
Proceeds from sale of Equipment = $8,550
Proceeds from issue of bonds = $217,000
Cash Payments:
New Equipment = $162,000
Dividends = $28,500
Net Income for the year = $67,000
Depreciation:
2016 accumulated depreciation = $627,000
2015 accumulated depreciation = 589,000
Depreciation charge for 2016 = $38,000
Net Increases/decreases in working capital:
2016 2015 Cash Effect
Accounts receivable 97,000 83,550 ($13,450)
Inventory 182,000 160,300 ($21,700)
Accounts payable 91,640 165,670 ($74,030)
Salaries payable 26,800 33,000 ($6,200)
Notes payable (current) 40,300 92,000 ($51,700)
The Murdock Corporation's Statement of Cash Flows is one of the financial statements that are prepared at the end of the accounting period to show the inflow and outflow of cash during the period. It shows the cash flows from operating, investing, and financing activities of the corporation. There are two methods for preparing this statement: the direct method and the indirect method. The direct method shows the actual inflows and outflows for operating activities while the indirect method starts with the net income to reconcile the accrual basis of accounting to the cash basis.
Frozen Gold is a fast-growing chain of ice cream shops. It has acquired an edge over its competitors through its ability to provide a wide array of unique flavors and a hip atmosphere in stores. This advantage of Frozen Gold best exemplifies a:_________.
A. markup.
B. resource flow.
C. capital gain.
D. core competency.
B.
Customers will have a variety of flavors to choose from
This advantage of Frozen Gold best exemplifies a core competency. Thus the correct option is D.
What is a core competency?Core competencies refer to unique abilities, skills, or characteristics which an organization carries in order to differentiate their goods from the competition and achieve a market advantage with the help of this.
This core competency can be anything like the process of manufacturing, promotion, advertising, product design, product features and so on which helps to identify the product.
In the given case, the core competency of ice cream shop is that they provide a wide array of flavors which is unique in nature as well as the atmosphere in their stores is also attractive which reflects their services to the customers.
Therefore, option D is appropriate.
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Xion Co. budgets a selling price of $85 per unit, variable costs of $34 per unit, and total fixed costs of $285,000. During June, the company produced and sold 12,300 units and incurred actual variable costs of $366,000 and actual fixed costs of $300,000. Actual sales for June were $1,090,000.
Required:
Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately.
Answer:
XION CO.
Flexible budget report
For month ended June 30
Flexible Actual Variances Fav/Unf
budget results
Sales 1,045,500 1,090,000 44,500 Favorable
(-) Variable cost 418,200 366,000 52200 Favorable
Contribution 627,300 724,000 96,700 Favorable
(-) Fixed cost 285,000 300,000 15,000 Unfavorable
Net income 342,300 424,000 81,700 Favorable
Workings
Sales= 12,300 units * $85 = $1,045,500
Variable cost = 12,300 units * $34 =$418,200
If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is a
Answer:
quantity variance
Explanation:
Quantity variance is a variance that compares standard quantity of materials that should have been used to the actual materials used. This type of variance is used by firms to know the difference between actual usage of materials and it's expected usage.
Where the actual usage is more than the expected usage, it is adverse ; while it is favorable if the expected usage is more than the actual usage.
An individual is planning to set-up an education fund for her daughter. She plans to invest $7,700 annually at the end of each year. She expects to withdraw money from the fund at the end of 9 years and expects to earn an annual return of 8%. What will be the total value of the fund at the end of 9 years
Answer:
$96,154.20
Explanation:
We are to find the future value of the annuity
The formula for calculating future value = A (B / r)
B = [(1 + r)^n] - 1
A = Amount
R = interest rate
N = number of years
[(1.08)^9 - 1 ] / 0.08 = 12.487558
12.487558 x $7,700 = $96,154.20
Beta is Question 10 options: a) A measure of the volatility of returns on an individual stock relative to the market b) Relates the risk-return trade-offs of individual assets to the market returns c) The computed cost of capital determined by multiplying the cost of each item in the optimal capital structure by its weighted presentation in the overall capital structure and summing up the results d) The cost of the last dollar of funds raised
Answer: a) A measure of the volatility of returns on an individual stock relative to the market
Explanation:
Beta is indeed a measure of the volatility of returns on an individual stock relative to the return on the market as a whole.
It is used in the Capital Asset Pricing Model which enables for the calculation of the stock's expected return.
Market Beta is always 1. Therefore betas measure shows how much more or less volatile than the market return, the stock return is. For instance, a beta of 2 means that the stock's returns are twice as volatile as the markets and a beta of 0.5 means the returns are only half as volatile as the market.
Interviews are designed to determine if the employer feels a candidate is a good fit for the job. What benefit does an interview offer the job candidate
Explanation:
The job interview is a form of selection used by companies to select candidates for a job more effectively, because through it, the recruiter will meet the candidate in person, ask questions about issues related to his resume and his professional experiences , as well as the opportunity to analyze the way you communicate, your interests and your personality.
The advantage of the interview for the job candidate is to demonstrate your good intentions when occupying the job through an ethical, cordial posture and to have the opportunity to talk about some professional experiences that may be of interest to the employer and the company. It is also an opportunity for the candidate to clarify doubts about the responsibilities of the position and any other doubts related to the company or job function.
On October 10, the stockholder's equity of Sherman Systems appears as follows:
Common stock–$10 par value, 72,000 shares authorized,
issued, and outstanding $720,000
Paid-in capital in excess of par value, common stock 216,000
Retained earnings 864,000
Total stockholders’ equity $1,800,000
1. Prepare journal entries to record the following transactions for Sherman Systems.
1A. Purchased 5,000 shares of its own common stock at $25 per share on October 11.
1B. Sold 1,000 treasury shares on November 1 for $31 cash per share.
1C. Sold all remaining treasury shares on November 25 for $20 cash per share.
2. Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase.
Answer and Explanation:
The journal entries are shown below:
1A. Treasury Stock (5,000 × $25) $75,000
To Cash $75,000
(Being the purchased of its own common stock is recorded)
1B. Cash (1,000 × $31 shares) $31,000
To Treasury Stock (1,000 × $25) $25,000
To Paid-in Capital from Sale of Treasury Stock $6,000
(Being the sale of treasury stock is recorded)
1C. Cash (4,000 × $20) $80,000
Paid-in Capital from Sale of Treasury Stock $6,000
Retained Earnings $14,000
To Treasury Stock 99,000 (4,000 × 25) $100,000
(Being the sale of treasury stock is recorded)
2. The preparation of the revised equity section of its balance sheet is presented below:
Common stock 36,000 shares authorized, issued $720,000
Paid in capital in excess of par value
, common stock. $216,000
Retained Earnings. $864,000
Less: Treasury Stock - 5,000 shares -$75,000 $789,000
Total stockholders' equity $1,725,000
LLP Company had the following stockholders’ equity as ofJanuary 1, 2017.
Common stock, $1 par value, 120,000 shares issued$120,000
Paid-in capital in excess of par—common stock833,000
Retained earnings408,000
Total stockholders’ equity$1,361,000
During 2017, the following transactions occurred.
Feb. 16LLP repurchased 5,000 shares of treasury stock at a price of $15 per share.
Mar. 8200 shares of treasury stock repurchased above were reissued at $16 per share.
Apr. 11800 shares of treasury stock repurchased above were reissued at $12 per share.
May. 82,000 shares of treasury stock repurchased above were reissued at $18 per share
Instructions:
a. Prepare the journal entries to record the treasury stock transactions in 2017, assuming Clemson uses the cost method.
b. Prepare the stockholders’ equity section as of April 30, 2017. Net income for the first 4 months of 2017 was $130,000.
Complete Question:
Clemenson LLP Company had the following stockholders’ equity as of January 1, 2017.
Common stock, $1 par value, 120,000 shares issued$120,000
Paid-in capital in excess of par—common stock 833,000
Retained earnings 408,000
Total stockholders’ equity$1,361,000
During 2017, the following transactions occurred.
Feb. 16: LLP repurchased 5,000 shares of treasury stock at a price of $15 per share.
Mar. 8: 2,000 shares of treasury stock repurchased above were reissued at $16 per share.
Apr. 11: 800 shares of treasury stock repurchased above were reissued at $12 per share.
May. 8: 2,000 shares of treasury stock repurchased above were reissued at $18 per share
Instructions:
a. Prepare the journal entries to record the treasury stock transactions in 2017, assuming Clemson uses the cost method.
b. Prepare the stockholders’ equity section as of April 30, 2017. Net income for the first 4 months of 2017 was $130,000.
Answer:
Clemson LLP Company
a. Journal Entries
Feb. 16:
Debit Treasury Stock account $75,000
Credit Cash Account $75,000
To record the repurchase of 5,000 shares of treasury stock at a price of $15 per share.
March 8:
Debit Cash Account $32,000
Credit Treasury Stock account $32,000
To record the resale of 2,000 shares of treasury stock at $16 per share.
April 11:
Debit Cash Account $9,600
Credit Treasury Stock account $9,600
To record the resale of 800 shares of treasury stock at $12 per share.
May 8:
Debit Cash Account $36,000
Credit Treasury Stock account $36,000
To record the resale of 2,000 shares of treasury stock at $18 per share.
b. Stockholders' Equity Section as of April 30, 2017:
Common stock, $1 par value, 120,000 shares issued $120,000
Treasury Stock, 200 shares 2,600
Paid-in capital in excess of par—common stock 833,000
Retained earnings 538,000
Total stockholders’ equity $1,493,600
Explanation:
a) Data and Calculations:
Stockholders’ equity as of January 1, 2017:
Common stock, $1 par value, 120,000 shares issued $120,000
Paid-in capital in excess of par—common stock 833,000
Retained earnings 408,000
Total stockholders’ equity $1,361,000
b) Retained Earnings:
Jan. 1, 2017 balance $408,000
Net Income $130,000
April 30, 2017 bal. $538,000
c) Since Clemenson accounts for the Treasury Stock transactions using the cost method, it means that all treasury transactions are recorded directly in the Treasury Stock account based on their cost and not the par value. This method of using the cost is one of the two methods for accounting for treasury stock transactions. The other method, which Clemenson can use is the par value method. Under this second method, Clemenson will record the above and below par value differences in the Paid-in Capital in excess of par account instead of the Treasury Stock account. While the treasury stock account is a contra account to the Common Stock account, in Clemenson's case, the Treasury Stock balance is not a debit but a credit balance.
The _____focuses on bringing different talents and perspectives together to make the best organizational decisions and to produce innovative, competitive products and services..
Answer:
Paradigm
Explanation:
Definition: a typical example or pattern of something; a model.
A food manufacturer reports the following for two of its divisions for a recent year.
($millions) Beverage Division Cheese Division
Invested assets, beginning $ 2,662 $ 4,455
Invested assets, ending 2,593 4,400
Sales 2,681 3,925
Operating income 349 634
1. Compute return on investment.
2. Compute profit margin.
3. Compute investment turnover for the year.A food manufacturer reports the following for two of its divisions for a recent year.
Answer and Explanation:
1. Return on investment is
= Operating Income ÷ Average invested Assets
here, average invested assets is
= (Invested assets, beginning + Invested assets, ending) ÷ 2
For Beverage Division
= $349 ÷ (($2,662 + $2,593) ÷ 2)
= $349 ÷ $2,628
= 13.28%
For Cheese Division
= $634 ÷ (($4,455 + $4,400) ÷ 2)
= $634 ÷ $4,428
= 14.32%
2. Profit margin = (Operating income ÷ sales) × 100
For Beverage Division
= ($349 ÷ $2,681) × 100
= 13.02%
For Cheese Division
= ($634 ÷ $3,925) × 100
= 16.15%
3. Investment turnover = Sales ÷ Average Operating Assets
For Beverage Division
= $2,681 ÷ (($2,662 + $2,593) ÷ 2)
= $2,681 ÷ $2,628
= 1.02 times
For Cheese Division, it would be
= $3,925 ÷ (($4,455 + $4,400) ÷ 2)
= $3,925 ÷ $4,428
= 0.89 times
Beverages manufactures its own . The bottles are made from polyethylene terephthalate (PET), a lightweight yet strong plastic. uses as much PET recycled resin pellets in its bottles as it can, both because using recycled PET helps to meet its sustainability goals and because recycled PET is less expensive than virgin PET.
Riley is continuing to search for ways to reduce its costs and its impact on the environment. PET plastic is melted and blown over soda bottle molds to produce the bottles. One idea Riley's engineers have suggested is to retrofit the soda bottle molds and change the plastic formulation slightly so that 25 % less PET plastic is used for each bottle. The average kilograms of PET per soda bottle before any redesign is 0.004 kg. The cost of retrofitting the soda bottle molds will result in a one-time charge of $22,112, while the plastic reformulation will cause the average cost per kilogram of PET plastic to change from $3.00 to $3.30.
Required:
a. Using the original data (before any redesign of soda bottles ), prepare a direct materials budget to calculate the cost of PET purchases in each quarter for the upcoming year and for the year in total.
b. Assume that the company retrofits the soda bottle molds and changes the plastic formulation slightly so that less PET plastic is used in each bottle. Now prepare a direct materials budget to calculate the cost of PET purchases in each quarter for the upcoming year and for the year in total for this possible scenario.
c. Compare the cost of PET plastic for Requirement 1 (original data) and for Requirement 2 (making change to using less PET.) What is the direct material cost savings from making the change to using less PET?
Answer:
I prepared an excel spreadsheet because there is not enough space here.
C) total savings = previous materials costs - total cost per year after retrofitting - cost of retrofitting the molding machine = $137,105.10 - $102,168.00 - $22,112 = $12,825.10
Lopez Company uses both standards and budgets. For the year, estimated production of Product X is 500,000 units. Total estimated cost for materials and labor are $1,400,000 and $1,700,000.
Compute the estimates for (a) a standard cost and (b) a budgeted cost. (Round standard costs to 2 decimal places, e.g. 1.25.)
Answer:
a. Standard cost = Total estimated cost of material ÷ Estimated production
= $1,400,000 / 500,000 unit
= $2.80 per unit
Thus, the standard cost of material is $2.80, and the budgeted cost is $1,400,000.
b. Standard cost = Total estimated cost of labor / Estimated production
= $1,700,000 / 500,000
= $3.40 per unit
Thus, standard cost of labor is $3.40 and budgeted cost is $1,700,000.
Chaz and Dolly enter into a contract under which Chaz agrees to provide maintenance services for Dolly's Ski Resort. Duties under the contract may not be transferred if
Answer: d. any of the choices.
Explanation:
Chaz is not to transfer the duties to a third party if Dolly got into the agreement with Chaz for any of the following;
If Dolly places special trust in the ability of Chaz to perform the maintenance then that trust should not be broken by transferring the duties to a third party. Dolly went into that contract because they trusted in the abilities of Chaz.If Dolly went into the contract due to the personal skills or talents of Chaz, the duties against would be non-transferable. Chaz's skills were the reason the contract was signed, if these skills are not to be used then the contract will be baseless. By signing with Chaz, Dolly expects a certain level of performance. If the performance that will be made by a third contracting party is materially different from the one that Dolly would have expected from Chez, the duties will not be transferable.Which of the following is true of website content?
A. It should be refreshed periodically to keep customers coming back.
B. Once the content has been written and proofread it shouldn't be changed.
C. Grammatical errors are not a problem because the customer visits the site to purchase a product, not check the site's grammar.
D. It should be limited to text and shouldn't include multimedia.
Answer:
The Answer: A
Explanation:
Because if you are going to put up a business website you need to keep refreshing it and putting new things onto the website in order for you to have customers because if you dont have anything new in stock people arent gonna wanna keep coming back and using the same product they are going to go to a different website where there is a wider variety of things to purchase.
Hope this helps!
As of November 29, it appears that Notel will report earnings per share (EPS) of $1.15 for the quarter ended November 30. Which of the following events would cause this EPS number to decrease, assuming the event occurs the morning of November 30?
A.
The company pays a supplier for inventory bought on account.
B.
The company declares, but does not pay, a cash dividend.
C.
The company purchases 10 shares of common stock in another company.
D.
The company reissues the treasury stock it holds.
Answer: D. The company reissues the treasury stock it holds.
Explanation:
Earnings per share is calculated by dividing the Net Income by the weighted average number of shares that a company has outstanding. If the company reissues treasury stock, this would increase the number of average stock outstanding thereby increasing the denominator of the EPS equation which would have the effect of reducing the Earnings per share.
For instance, if a company had net income of $50 and common equity outstanding of $40, the EPS would be;
= 50/40
= $1.25
If the company reissues treasury stock of $30, the EPS would change to;
= 50/ (40 +30)
= $0.71
The following accounts are from last year's books of Sharp Manufacturing: Raw Materials Bal 0 (b) 154,800 (a) 166,000 11,200 Work In Process Bal 0 (f) 513,200 (b) 132,400 (c) 168,800 (e) 212,000 0 Finished Goods Bal 0 (g) 464,000 (f) 513,200 49,200 Manufacturing Overhead (b) 22,400 (e) 212,000 (c) 26,400 (d) 156,800 6,400 Cost of Goods Sold (g) 464,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of direct materials used for the year
Answer:
$132,400
Explanation:
Based on the information given we were told that Sharp make use of job order costing as well as applies manufacturing overhead to jobs which are often based on the direct labor costs, which simply means the amount of direct materials that is been used for the year will be a debit amount of $132,400 in the work in process .
Therefore the amount of direct materials used for the year will be $132,400
The marginal revenue of the last bowl of soup a restaurant (in a perfectly competitive market) produced was $11 and its marginal cost was $4. Each time the restaurant produces an additional bowl of soup the marginal cost increases by 20% relative to the previous bowl. The restaurant should:
Answer:
The restaurant should:
decrease its marginal cost in order to maintain the marginal profit and ensure that the marginal cost is not more than the average cost.
Explanation:
Company A's marginal cost represents the incremental costs incurred when the company produces an additional unit of its good or service. This company's marginal cost is calculated by dividing the total change in the cost of producing more goods by the change in the number of goods produced. For example, if the cost of production increases by $120 when additional 10 units of goods are produced, then the marginal cost = $12 ($120/10).
Someone offers to buy your car for four, equal annual payments, with the first payment coming 2 years from today. If you think that you could sell your car to another purchaser for an immediate payment of $9,000 and the interest rate is 10%, what is the minimum annual payment that you would accept from this buyer?
Answer:
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