Answer:
A basic condition of nature which means that the quantities of available labor, capital, land and entrepreneurship used for the production of goods and services are finite. It means that the economy has only so many resources that can be used AT ANY GIVEN TIME time to produce goods and services.
Explanation:
Marwick's Pianos Inc. purchases pianos from a large manufacturer and sells them at the retail level.The pianos cost, on average, $1,488 each from the manufacturer.Marwick's Pianos Inc. sells the pianos to its customers at an average price of $2,900 each.The selling and administrative costs that the company incurs in a typical month are presented below:Costs Cost FormulaSelling:Advertising $942 per monthSales salaries and commissions $4,799 per month, plus 3% of salesDelivery of pianos to customers $60 per piano soldUtilities $650 per monthDepreciation of sales facilities $4,945 per monthAdministrative:Executive salaries $13,566 per monthInsurance $685 per monthClerical $2,480 per month, plus $36 per piano soldDepreciation of office equipment $900 per monthDuring August, Marwick's Pianos Inc. sold and delivered 63 pianos.Required:1. Prepare an income statement for Marwick's Pianos Inc. for August. Use the traditional format, with costs organized by function.2. Prepare an income statement for Marwick's Pianos Inc. for August, this time using the contribution format, with costs organized by behavior. Show costs and revenues on both a total and a per unit basis down through contribution margin.
Answer:
1) Marwick's Pianos Inc.
Income Statement
For the month ended August 202x
Total sales revenue $182,700
Cost of goods sold ($93,744)
Gross profit $88,956
Administrative expenses:Executive salaries ($13,566)Clerical salaries ($4,748)Depreciation office equipment ($900)Utilities ($650) ($19,864)Sales expenses:
Sales salaries and commissions ($10,280)Delivery expense ($3,780)Advertising ($942)Depreciation of sales facilities ($4,945) ($19,947)Operating income $49,145
2) Marwick's Pianos Inc.
Income Statement
For the month ended August 202x
Total sales revenue $182,700
Variable costs:
Pianos ($93,744)Sales commissions ($5,481)Clerical commissions ($2,268)Delivery expense ($3,780) ($105,273)Contribution margin $77,427
Period costs:
Executive salaries ($13,566)Clerical salaries ($2,480) Sales and commissions ($4,799)Advertising ($942)Depreciation expense ($5,845)Utilities expense ($650) ($28,282)Operating income $49,145
Explanation:
cost of a piano = $1,488
selling price per piano = $2,900
advertising $942 per month
sales and commissions $4,799 + 3% commissions on sales
delivery of pianos = $60 per piano
utilities expense = $650
depreciation expense = $4,945
executive salaries = $13,566
clerical salaries = $2,480 + $36 per piano
depreciation = $900
63 pianos sold during August
cost of goods sold = $1,488 x 63 = $93,744
total sales revenue = $2,900 x 63 = $182,700
sales commissions = $5,481
clerical commissions = $2,268
What do you think of the decision made by Adelaide Ladywell?
Answer:
Incomplete question. Here's likely the complete question;
In this, the first case, Lee High, the newly hired cost accountant, computes the variable cost and the fixed cost per unit at a volume of 500 units of Great Heath per week. He uses this information to develop some guidelines for pricing. His boss, Charlton Blackheath, endorses the guidelines and adds a feature: a higher commission on sales at a higher price.
When both High and Blackheath are away, the file clerk, Adelaide Ladywell, accepts an order below the guidelines and is fired...Evaluate the decision made by Adelaide.
Explanation:
Although Adelaide Ladywell acted presumptuously (without permission), her decision was still profitable. By looking at the costs per unit presented, the product's selling price wasn't lower than the fixed costs, therefore her actions were not a totally bad one.
PLEASE HELP ASAP, I NEED TO DO THIS BUT DONT KNOW HOW TO. Describe how free markets solve the problem of coordination. Why do command economies struggle with this problem?
Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. The number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories was:
Answer:
Total equivalent unit = 19,650
Explanation:
To apportion cost between work in progress and completed units in a particular period, we use equivalent units. Equivalents units are notional whole units which represent incomplete work and are used to apportion cost between completed units and work in progress
Equivalent Units = Degree of Completion × Units of inventory
Under the first in first out(FIFO) method, to account for the units of work completed the opening inventory are separated and distinguished from the units newly introduced in the period.
Another principle under this method is that only the percentage of work yet to be completed on the units of opening are done in the current period
Fully worked = 14,000- 3,000 = 11,000
The fully worked represents units of inventory started this current period and completed in the same period
Item Units Working Equivalent unit
Opening inventory 4,000 60%× 4,000 2,400
Fully worked 15,000 100% × 15,000 15,000
Closing inventory 3,000 75% × 3,000 2250
Total equivalent unit 19,650
Total equivalent unit = 19,650
Which of the following statements is true about the audit opinion formulation process presented in this chapter?
a. The audit opinion formulation process is significantly different for the financial statement only audit and the integrated audit.
b. The audit opinion formulation process is based on the premise that management has responsibility to prepare the financial statements and maintain internal control over financial reporting.
c. The audit opinion formulation process is comprised of seven phases.
d. All of the above are true statements regarding the audit opinion formulation process.
Answer:
b. The audit opinion formulation process is based on the premise that management has responsibility to prepare the financial statements and maintain internal control over financial reporting.
Explanation:
The audit opinion formulation generally, is based on the premise that management has responsibility to prepare the financial statements and maintain internal control over financial reporting.
This entails that if there has not been sufficient internal controls to to enable fair presentation of Financial Statements, the entity gets a qualified audit opinion (negative report) otherwise if in place, the company gets a unqualified audit opinion (positive report).
Negative inflationary surprises lead to a(n):____________.
A) increase in the real interest rate.
B) redistribution of wealth from borrowers to lenders.
C) decline in the nominal interest rate.
D) decline in inflation risk for lenders.
E) redistribution of wealth from lenders to borrowers.
Answer: increase in real interest rate
Explanation:
Negative inflationary surprises lead to an increase in the real interest rate. The real interest rate is simply defined as the rate of interest that a saver, investor, or a lender will receive after inflation ahs been allowed.
It should be noted that the real interest rate is the nominal interest rate minus inflation. Therefore, a negative inflationary surprises lead to a rise in the real interest rate.
In a market economy, decisions about which goods are produced are based on: A. what the local community has made for generations. B. what the government decides is important for society. C. what health care organizations suggest will be best for citizens. D. what businesses believe will generate the most profits.
Answer:
D.
Explanation:
Business run the economy not the government
D. What businesses believe will generate the most profits.
What is market economy?In a market economy, the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand.
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Milo has the following year-end account balances: Accounts Receivable, $5,000; Supplies, $12,000; Equipment, $18,000; Accounts Payable, $17,000; Owner’s Equity, $43,000. The Cash account balance was not available at year-end. Given the account balances listed, the balance in the Cash account should be
Answer:
$25,000
Explanation:
Calculation for what the balance in the Cash account should be
First step is to calculate for the Total Assets excluding Cash
Total Assets excluding Cash = $5,000 + $12,000 + $18,000
Total Assets excluding Cash = $35,000
Second step is to find the Total Liabilities & shareholder's equity
Total Liabilities & shareholder's equity = $17,000 + $43,000
Total Liabilities & shareholder's equity == $60,000
Last step is to calculate for the cash balance using this formula
Cash balance = Total Liabilities and shareholder's equity - Total Assets (excluding cash)
Cash balance = $60,000 - $35,000
Cash balance = $25,000
Therefore the balance in the Cash account should be $25,000
Why we do need change management
The concept of an "artificial being: refers to which form of business organization?
a) partnership
b) sole proprietorship
c) corporation
d) limited partnership
Answer:
Artificial Being refers to corporation form of business
Explanation:
From the list of given options, the option that answers the question is Corporation.
This is so because when group of people (called owners) form a corporation, they form a body and this body as a whole is given the legal status which is given to the owners.
In other words, the body which actually does not exist physically can act and take decisions on behalf of the owners in taking responsibilities.
So because of the inexistence, the corporation is referred to as an artificial being.
Hence, option c answers the question.
Which fund classification would a focus on only stocks of technology companies match?
a. Growth fund
b. Sector fund
c. Balanced fund
d. International fund
Answer:a
Explanation:
Antonio owns a small computer repair firm. Suppose the economy has been in a recession for the past five months. When preparing the company's quarterly earnings report, Antonio realizes profits are down by over 50 percent compared to last quarter. As a result, he is forced to downsize his labor force. This is an example of a(n) _____ change.
Answer:
labor force
Explanation:
Remember, the labor force refers to a ratio of the number of employed and unemployed persons in a given economy or organization. In Antonio's case, his small computer firm had been affected by the economic recession; causing a decline in his labor force.
What are the three tools the Fed uses to keep the economy stable?
Explanation:
The main function of Fed or Federal Reserve (established in 1913), is to manage the growth of bank reserves and money supply (for the stable expansion of the economy). The tools used by the Fed are as follows :
Opening the marketing operations.The changes in discount rate can be done.Changing the reserve ratio (ratio of percentage of reserves a bank is required to hold against deposits)Multiple Choice Question The following selected information pertains to Wilson Company. Current liabilities: $100; long-term liabilities: $150; contributed capital: $120; retained earnings: $50; accumulated other comprehensive income: $20. The company's debt to equity ratio (rounded to two digits after the decimal point) is
Answer:
The debt to equity ratio is 1.32
Explanation:
The computation of the debt to equity ratio is shown below;
Debt to equity ratio is
= Debt ÷ equity
where, Debt is long term + current liabilities
And, the equity is contributed capital + retained earnings + other incomes
= ($100 + $150) ÷ ($120 + $50 + $20)
= $250 ÷ $190
= 1.32
Hence, the debt to equity ratio is 1.32
On January 1 of the current year, Jimmy's Sandwich Company reported total stockholders’ equity of $125,000. During the current year, total revenues were $100,000 while total expenses were $89,500. Also, during the current year the company paid $24,000 in dividends. No other changes in equity occurred during the year. The change in total equity during the year was:
Answer: ($13,000)
Explanation:
Closing balance of Equity = Opening Balance + Retained earnings
Retained earnings = Net Income - dividends
Formula above shows that equity changes as a result of Retained earnings which is the net of Net Income and Dividends.
Change in equity will be = Net Income - Dividends
= (100,000 - 89,500) - 24,000
= -$13,500
Equity reduces by $13,500
1.Identify three jobs and three careers. What do they have in common? How do they differ?
2.Discuss the cost and benefits of choosing a career instead of a job.
3.Explain different ways for people to build their human capital.
You talk to Luis, the Portuguese manager of the Austrian plant. He says the workers are uncooperative and do not carry out the instructions that he conveys to them. He shows you several emails in which they complain that he is too dominating, and that they find it hard to tell what he is thinking.What is your response to this situation
Answer:
Luis would be that he needs to focus more on relating to the employees
Explanation:
In this situation, the best response to Luis would be that he needs to focus more on relating to the employees. In doing so, Luis will understand the employee's frustrations and work towards a solution by making their work experience and tasks less stressful. This in term should drastically increase work motivation and thus work efficiency in the plant. It is always best to keep employees happy so that they work their best.
James is a curriculum planner in a school in a small town. Analyzing the past scores of his students, he realizes that students score well in the theory papers, but do poorly when they have to apply their knowledge practically. What can james do to Improve student grades in practical
application?
Answer:
James should introduce courses that will help students strengthen their practical knowledge. He can tie up with local businesses so that students can spend a few weeks working as apprentices. Students will have exposure to all kinds of practical work, and businesses will get interns who are enthusiastic about working and learning. If the students perofrm well, they also have the possibility of getting a job at these places after graduating.
Explanation:
(This is the actual sample answer so i would reccomend putting it in your own words to avoid plagerism) :)
James needs to start offering classes that will improve pupils' practical knowledge. He can do collaboration with the nearby companies to arrange for kids to serve as apprentices for a few weeks.
What does "collaboration" mean?The easiest approach to describe collaboration is to say that it is the process of two or more individuals or groups coming together to carry out a task or realize a goal. It can also be described as a group of people cooperating to achieve common objectives.
It is simple to become perplexed while discussing the various forms of organizational collaboration that make up the phenomenon. Your firm may, however, more clearly outline the quickest route to a digital transformation if you have a fundamental awareness of the various types of collaboration. The existence of a set of digital tools and an agile corporate culture that promotes good teamwork are the cornerstones of efficient collaboration. You are already prepared to start redefining the sorts of collaboration within your business if you have both of these elements in place.
When teams work well together, firms that want to flourish in a changing environment gain a lot of advantages. Starting out, having a strong collaborative work culture puts you ahead of the competition in terms of competitiveness. An organization that has productive employee collaboration is already well ahead of its rivals.
Who are apprentices?A person who apprentices learns a trade. Although an apprentice farmer receives very little pay, he or she has the opportunity to learn about farming by doing.
In the past, the only way to enter many professions was to become an apprentice. These days, we tend to think of it in terms of trades like bricklayers, butchers, and bakers. The same concept applies if you perform the same task in an office setting; it is typically referred to as an internship.
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Types of controls used to assess the effectiveness of marketing operations
What costs does Shun Electronics consider to be direct costs?
Answer:
Shun Electronics direct costs - their set up establishment cost, associated technicians cost - are direct costs.
Explanation:
Direct Costs are the costs associated with production/manufacturing, not selling & distribution.
Generally, factory costs - factory power, factory wages etc are considered to be direct costs.
In case of Shun Electronics, their set up establishment cost, associated technicians cost - are direct costs.
The journal entry to record the receipt of a payment within the discount period on a sale of $900 with terms of 2/10, n/30 will include a
Answer and Explanation:
Given that
The Sale is made for $900
Terms 2/10, n/30 that means if the payment is made within 10 days than 2% discount is eligible and the total credit period allowed is 30 days
Now the journal entry to record the receipts of a payment within discount period is
Cash Dr $882
Sales discount $18
To Account receivable $900
(Being the cash received)
Loeffler Company owns 35% of the common stock of Tetter Co. and uses the equity method to account for the investment. During 2021, Tetter reported income of $260,000 and paid dividends of $90,000. There is no amortization associated with the investment. During 2021, how much income should Loeffler recognize related to this investment
Answer:
Investment revenue = $91,000
Explanation:
the journal entry to record the dividends received would be:
Dr Cash 31,500
Cr Investment in Tetter Co. 31,500
the journal entry to record the reporting of the net income:
Dr Investment in Tetter Co. 91,000
Cr Investment revenue 91,000
When a company uses the equity method, any dividends received will decrease the carrying value of the investment, while any net income reported will be considered investment revenue.
Which of the following is an example of a criminal offense?
A. Check forging
B. Hitting a parked car
C. Evicting a tenant without due process
D. Being late on credit payment
Helpppppp
Answer:
B
Explanation:
it said to answer it has to have at least 20 letters so im just typing stuff now
Answer:
Evicting a tenant without due process
Explanation:
The balance sheet of Cattleman's Steakhouse shows assets of $86,800 and liabilities of $15,300. The fair value of the assets is $89,200 and the fair value of its liabilities is $15,300. Longhorn paid Cattleman's $83,420 to acquire all of its assets and liabilities. Longhorn should record goodwill on this purchase of:____________
$9,520
Explanation:
Calculation for to record goodwill on this purchase
Using this formula
Goodwill =Amount paid to acquire assets and liabilities-(Fair value of the assets-Fair value of its liabilities)
Let plug in the formula
Goodwill =$83,420-($89,200-$15,300)
Goodwill=$83,420-$73,900
Goodwill=$9,520
Therefore Longhorn should record goodwill on this purchase of:$9,520
The Mifflin Cable store in Buffalo is currently offering a fabulous marketing strategy for potential new cable and Internet customers. Mifflin Cable offers new customers who purchase a cable and Internet package a DVR, modem, and all other necessary equipment with a two year contract. In terms of Porter's Five Forces what is Mifflin Cable attempting to achieve with this marketing strategy
Answer:
C. Decrease buyer power
Explanation:
Since in the question it is mentioned that the Mifflin Cable store offers a great marketing strategy that the combos of all the things would be based on the two year contract
So this given situation represents the decrease in buyer power as if there is less bargaining power so the company is able to rise the profit that is actually motive of every organization
Therefore the option C is correct
The planning session had been long but productive. Sean had been quiet throughout the meeting. He spent his time texting messages to his son on his cell phone instead. The director finished by summarizing the plan to reschedule stock offerings. Everyone was preparing to leave when Sean raised his hand. "I don’t know if we covered this," he said, "but have we talked about rescheduling the stock offerings yet? I don’t think we should wait until the fall."
Explanation:
In this case, Sean committed an unprofessional attitude towards the meeting.
Work meetings are essential for the employees of an organization to develop a positive interpersonal relationship through communication and the possibility of integration and contribution to the goals of the company through ideas and points of view.
Therefore, it is essential that each employee has a professional position, avoid using the phone during sessions and see meetings as an opportunity to improve their communication and integration skills with other employees.
It is also important that the employee is involved and engaged to actively participate in the meeting.
On the budgeted balance sheet,the number for notes payable will come from the ________.
A) operating budget
B) schedule of cash receipts
C) cash budget
D) cost of goods sold budget
Answer:
B) schedule of cash receipts
Explanation:
Personally, I do not consider this option to be 100% correct since it is incomplete. The correct answer is: debt service budget.
When you are preparing a budgeted balance sheet, you might get some information about receiving cash by issuing notes payables, but notes payables can include other transactions besides cash loans. E.g. You might finance the purchase of equipment by issuing a promissory note. You could also refinance outstanding credits from suppliers with notes payables. And many others, and none is related to cash receipts.
The A. J. Croft Company (AJC) currently has $200,000 market value (and book value) of perpetual debt outstanding carrying a coupon rate of 6 percent. Its earnings before interest and taxes (EBIT) are $100,000, and it is a zero-growth company. AJC's current cost of equity is 8.8 percent, and its tax rate is 40 percent. The firm has 10,000 shares of common stock outstanding selling at a price per share of $60.00.
1. What is AJC's current total market value and weighted average cost of capital?
2. The firm is considering moving to a capital structure that is comprised of 40 percent debt and 60 percent equity, based on market values. The new funds would be used to replace the old debt and to repurchase stock. It is estimated that the increase in riskiness resulting from the leverage increase would cause the required rate of return on debt to rise to 7 percent, while the required rate of return on equity would increase to 9.5 percent. If this plan were carried out, what would be AJC's new WACC and total value?
3. Now assume that AJC is considering changing from its original capital structure to a new capital structure with 50 percent debt and 50 percent equity. If it makes this change, its resulting market value would be $820,000. What would be its new stock price per share?
4. Now assume that AJC is considering changing from its original capital structure to a new capital structure that results in a stock price of $64 per share. The resulting capital structure would have a $336,000 total market value of equity and $504,000 market value of debt. How many shares would AJC repurchase in the recapitalization?
Answer:
current market value = $800000, WACC = 7.5%new WACC = 7.38%, Total value of firm = $ 813,008.13stock price per share = $62.004750 sharesExplanation:
1) Calculate AJC's current total market value and weighted average cost of capital
current market value = value of equity + value of debt
= ( 10000 * $60 ) + $200000
= $800000
Weighted average cost of capital = ( weight of equity * cost of equity ) + ( weight of debt * cost of debt * ( 1 - tax rate )
= (75% * 8.8% ) + (25% * 6% * 0.6 ) = 7.5%
2) what would be AJC's new WACC and total value
WACC = ( weight of equity * cost of equity ) + ( weight of debt * cost of debt * ( 1 - tax rate )
= ( 60% * 9.5% ) + ( 40% * 7% * 0.6 ) = 7.38%
Total value of the firm =
= ( Cash flow after tax / WACC )
= (( 100000 * ( 1-40%)) / 7.38%
= 100000 * 0.6 / 7.38% = $ 813,008.13
3) Calculate the new stock price per share
new stock price = ( value of equity + change in debt ) / original number of outstanding shares
value of equity = weight of equity * firm value
change in debt =( weight of debt * firm value ) - initial debt value
Hence new stock price =
( 50% *$820000) + (( 50% * $820000)- $200000)) / 10000
= $62.00
4) calculate how many shares AJC would repurchase in the recapitalization
= original shares - Remaining shares
= 10000 - 5250 = 4750 shares
while ;
Remaining shares = value of equity / stock price = $336000 / $64 = 5250
original shares = 10000
Green Corporation reported pretax book income of $1,012,000. During the current year, the net reserve for warranties increased by $50,600. In addition, tax depreciation exceeded book depreciation by $103,000. Finally, Green subtracted a dividends received deduction of $25,300 in computing its current year taxable income. Green's cash tax rate is:
Answer:
19.38%
Explanation:
Green corporation reported pretax book income as $1,012,000
The net reserve warranties increased by $50,600
Tax depreciation exceeded book depreciation by $103,000
The dividend received a deduction of $25,300
Cash tax rate= taxes payable/pre tax book income
The first step is to calculate the taxes payable
= $1,012,000 + $50,600 - $103,000 - $25,300 × 21%
= $934,300× 0.21
= $196,203
Therefore the cash tax rate can be calculated as follows
Cash tax rate= $196,203/$1,012,000
= 0.1938
= 19.38%
Hence Green's cash tax rate is 19.38%
TSW Inc. had the following data for last year. Net income = $800; Net operating profit after taxes (NOPAT) = $700; Total assets = $3,000; and Total operating capital = $2,000. Information for the just-completed year is as follows: Net income = $1,000; Net operating profit after taxes (NOPAT) = $925; Total assets = $2,600; and Total operating capital = $2,500. How much free cash flow did the firm generate during the just-completed year?
Elena Inc. has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have?
Sales $2000
Cost 1200
Depreciation 100
EBIT 700
Interest expense 200
EBT 500
Taxes(35%) 175
Net income 325
Answer:
1. Free cash flow= NOPAT - Net investment in total operating capital
Free cash flow = $925 - ($2,500 - $2,000)
Free cash flow = $925 - $500
Free cash flow = $425.
2. Particulars Amount
Earnings before Interest and Tax $700
Less : Taxes at 35% $245
Net operating income after tax (NOPAT) $455
Therefore, The Net operating profit after Tax (NOPAT) is $455.