Answer:
The Silverside Company
Project 1's Payback Period
= Initial Investment/Annual cash flows
= $400,000 / $90,000
= 4.44 years.
Explanation:
Project 1:
Initial Investment = $400,000
Useful life = 5 years
Annual cash inflows for useful life = $90,000
The Silverside Company's payback period calculates the time or number of years that it would take the company to recover from its initial investment in Project 1. This is the simple payback period calculation. There is also the discounted payback period calculation. This method discounts the annual cash inflows to their present values before the calculation is carried out. This second method gives a present value perspective on the issue.
conduct an internet search to locate a copy of the sarbanes oxley act of 2002. read and sumarize the requirements of section 302 of the act. Discuss how those provisions would or would not have deterred the actions of scott sullivan, cfo at worldcom
Answer:
Sarbanes Oxley act of 2002 is law of United States passed on 30th July 2002. This act helps to protect investor from fraudulent financial reporting by organizations. The act requires all companies to include report on their internal controls in the Financial reports.
Explanation:
The section 302 of the act directs the Securities and Exchange Commission to adopt rules to adopt financial officer who certify company's annual, interim and quarterly financial reports. The main purpose is to minimize any chance of intentional frauds or deceive investors. The officers review financial reports of the company and certify that these reports does not cover any significant wrong statement, Financial statements of the company are fairly presented based on the knowledge of the officer. He is also responsible to review the report of internal controls of the company to ensure that there is no weakness in controls which can lead to frauds in the organization.
Say that you purchase a house for $150,000 by getting a mortgage for $135,000 and paying a $15,000 down payment. If you get a 15-year mortgage with a 6 percent interest rate, what are the monthly payments
Answer:
Monthly installment = $1,139.21
Explanation:
When a loan is to be paid over a period of time using a series of periodic equal installments, it is called loan amortization. Each equal installment is meant to liquidate the principal and the accrued interest.
The amount to be financed by way of loan=
= cost of house - down payment
= $150,000 - 15,000 = $135,000
The monthly equal installment is calculated as follows:
Monthly equal installment-= Loan amount/Monthly annuity factor
Monthly annuity factor
=( 1-(1+r)^(-n))/r
Monthly interest rate (r)
= 6%/12= 0.5%
Number of months ( n) in 15 years
= 15* 12 = 180
Annuity factor
= ( 1- (1.005)^(-180)/0.005= 118.504
Monthly installment = 135,000/ 118.504 =1139.21
Monthly installment = $1139.21
Online B2B enables companies to enhance their performance by Multiple Choice reducing procurement costs. making supply-chain management unnecessary. making looser inventory control possible. lengthening order cycle time.
Answer:
reducing procurement costs.
Explanation:
Online business to business (B2B) marketing enables companies to enhance their performance by reducing procurement costs.
An online business to business (B2B) can be defined as a type of market where a business sells goods and services to another business online.
In an online business to business marketing or e-commerce, the cost of buying a product is usually lesser when compared to other channels of sales because the seller do not have to charge so much as sales are usually transparent and done automatically.
Hence, companies that are engaged in B2B are able to improve their performance and cut down the costs of procurement for goods and services.
Suppose that it could be demonstrated that a particular tariff on goods from developing countries would transfer benefits from rich Americans to poor Americans and increase total US social welfare. Why might it still be bad from a global social welfare perspective?
Answer and Explanation:
Even if tariffs on developing countries were to increase and better the welfare of poor Americans, increasing social welfare of Americans in general , it would still have a negative welfare impact globally since it would affect developing countries. Developing countries are poorer countries compared to the US, and if they are not able to export their goods to the US(a developed country) because of high tariffs, it would have a multiplier effect on the countries' economy and generally affect the welfare of individuals(even poorer people) in these countries consequently affecting global welfare.
________ is the idea that organizations tend to be more effective when they are structured to fit the demands of the situation.
Answer: Contingency Approach
Explanation: The contingency approach is the idea that organizations tend to be more effective when they are structured to fit the demands of the situation. By fitting to the demands of the situation, it means that they are better equipped with alternatives to be put into operation if needed, especially in the case of emergencies, or in situations where earlier arrangements failed. The approach claims that there is no best way to organize a corporation, to lead a company, or to make decisions and therefore posits that the optimal course of action is contingent (dependent) upon the demands of the situation.
"What action is the Federal Reserve MOST likely to take if it is worried about increasing inflation due to extremely rapid economic expansion?"
Answer: Increase reserve requirements
Explanation:
Reserve requirements refer to the proportion of deposits that banks are required to leave with the Fed for safekeeping and the protections of depositors.
This amount reduces the amount of money that the banks can give out as loans and so is quite useful in monetary policy.
If the Fed is worried about increasing inflation due to extremely rapid economic expansion, the way to rein this in is to embark on a contractionary monetary policy.
One way to do so is to increase the reserve requirement which would mean that banks have to hold more money. Should this happen then the money supply in the economy would decrease which would ideally decrease inflation and reduce the funds available for both investment and consumption which would lead to a decrease in economic activity as well.
If a company is experiencing increasing pressures for cost reduction for its products, which of the following courses of action should it consider?
a. sell licenses to produce the products internationally.
b. explore opportunities for exporting or create a wholly-owned subsidiary within a country.
c. establish a joint venture with a foreign company.
d. pursue a franchising model for the company.
Answer: explore opportunities for exporting or create a wholly-owned subsidiary within a country
Explanation:
When a company is experiencing increasing pressures for cost reduction for its product, the course of action should be considered by the company is to explore opportunities for exporting or create a wholly-owned subsidiary within a country.
This is necessary to bring about economies of scale which in turn leads to lesser production cost and cheaper prices for the products.
In working on a bid for project you have determined that $245,000 of fixed assets will be required and that they will be depreciated straight-line to zero over the 5-year life of the project, and you can get $23,200 for these fixed assets at the end of 5 years. You will also need to increase net working capital by 15,000 initially and recoup the investment in net working capital at the end of the project. You have also determined that the discount rate should be 14 percent and the tax rate will be 35 percent. In addition, the annual cash costs will be $68,500. What is the minimum amount of annual sales revenue that is required for you to make money on the project? PLEASE SHOW WORK
A. $151,627.90
B. $155,119.00
C. $162,515.75
D. $102,627.90
E. $227,012.50
Assume BGL Enterprises increases its operating efficiency by lowering its costs while holding its sales constant. As a result, given all else constant, the: A. return on assets will decrease.
B. profit margin will decline.
C. equity multiplier will decrease.
D. return on equity will increase.
E. price-earnings ratio will increase.
Answer:
Question 1:
required investment $245,000
depreciation expense per year = ($245,00 - $23,200) / 5 = $44,360
you will also require $15,000 in working capital
annual cash costs = $68,500
what is the minimum amount of cash sales for accepting the project:
net cash flow₁ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360} / 1.14 = (0.65SR - $28,999) / 1.14 = 0.5702SR - $25,437.72
net cash flow₂ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360} / 1.14² = (0.65SR - $28,999) / 1.14² = 0.5002SR - $22,313.79
net cash flow₃ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360} / 1.14³ = (0.65SR - $28,999) / 1.14³ = 0.4387SR - $19,573.50
net cash flow₄ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360} / 1.14⁴ = (0.65SR - $28,999) / 1.14⁴ = 0.3849SR - $17,169.74
net cash flow₅ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360 + $15,000} / 1.14⁵ = (0.65SR - $13,999) / 1.14⁵ = 0.3376SR - $7,270.64
NPV = -initial outlay + cash flows
NPV = 0
initial outlay = cash flows
$260,000 = 0.5702SR - $25,437.72 + 0.5002SR - $22,313.79 + 0.4387SR - $19,573.50 + 0.3849SR - $17,169.74 + 0.3376SR - $7,270.64
$260,000 = 2.2316SR - $91,765.39
$351,765.39 = 2.2316SR
sales revenue = $351,765.39 / 2.2316 = $157,629.23
the closest answer is B = $155,119, but its NPV will be negative.
so we have to select C = $162,515.75 that results in an NPV = $10,887.
Question 2:
The correct answer is D. return on equity will increase.
If you lower your costs while your sales remain the same, your profits will increase as well as your ROE.
Gilley Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 10% convertible bonds outstanding during 2015. The preferred stock is convertible into 40,000 shares of common stock. During 2015, Gilley paid dividends of $.90 per share on the common stock and $3.00 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for 2015 was $600,000 and the income tax rate was 30%.
Diluted earnings per share for 2015 is:_____________ (rounded to the nearest penny)
Answer:
Gilley Co.
Diluted earnings per share for 2015 is:_____________ $1.68
Explanation:
a) Data and Calculations:
Number of common stock shares = 200,000
Number of convertible preferred = 40,000
Number of convertible bonds = 45,000 ($1,000,000/$1,000 x 45)
Total shares = 285,000
Earnings = $600,000
Income tax (180,000)
Net Income $420,000
Plus preferred dividend = $60,000
Adjusted net income = $480,000
EPS = $480,000/285,000
= $1.68
b) After deducting income tax expense to arrive at the income after tax, then add the dividends of preferred stockholders before arriving at the adjusted net income for computing the earnings per share.
A brand manager for a certain company must determine how much time to allocate between radio and television advertising during the next month. Market research has provided estimates of the audience exposure for each minute of advertising in each medium, which it would like to maximize. Costs per minute of advertising are also known, and the manager has a limited budget of
Answer:
Optimization
Explanation:
Since we were told that the brand manager has limited budget of $25,000 which makes the manager to decide that television adverts is much more effective than radio adverts making him to allocates, at least 70% of the time to television, based on this I wiill run OPTIMIZATION test reason been that optimization will help and enable me to make the best or most effective use of available resource which will in turn Reduce costs while improving the performance which is why the brand manager decide to allocate 70% to Television in order to make the business more efficient as well as cost effective.
A company has a net cash inflow from operating activities of $793,000, a net cash outflow of $58,000 from investing activities and a net cash inflow of $100,800 from financing activities. The company paid $128,000 in interest, $188,500 in income taxes, and $204,000 in cash dividends. Which of the following statements about the statement of cash flows is not correct?a. The statement of cash flows will show a net increase in cash and cash equivalents of $838, 500. b. If the direct method is used, the $125,000 of interest paid and the $187,000 of income taxes paid will be reported in the cash flows from operating activities. c. The cash dividends of $201,000 paid will be reported as a cash outflow in the cash flow from investing activities section. d. Supplemental disclosures required for a company using the indirect method include the amount of interest and the amount of income taxes paid.
Answer:
Incorrect Statement about the Statement of Cash Flows:
c. The cash dividends of $201,000 paid will be reported as a cash outflow in the cash flow from investing activities section.
Explanation:
Cash dividends of $201,000 will be reported as a cash outflow in the financing activities section and not the investing activities section.
Statement of Cash Flows is broadly divided into three, the operating, investing, and financing activities sections. The operating activities section show the cash flows from the normal business of the enterprise. The investing activities section shows the acquisition and disposal of investments made by the company in cash. While, the financing section shows the inflow and outflow of cash resulting from the funding of the business by stockholders and noncurrent creditors.
30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 8%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) a. What is the yield to maturity if the bond is selling for $900?
Answer:
The answer is 15.508%
Explanation:
The annual coupon rate is:
8% x 900 x 2 / $1,000 = 14.4%
The yield to maturity as follows:
Yield to maturity (YTM) = [Coupon payment + (Face Value - Present Value) / Time to Maturity] / [(Face Value + Present Value) / 2]
=> YTM = [14.4% x $1,000 + ($1,000 - $900) / 30] / [ ($1,000 + $900) / 2] = 15.508%
_________ can give every business access to an agile workforce that is not only better suited to solving some of the problems that organizations struggle with today but in many cases will do it for free.
Complete Question:
_________ can give every business access to an agile workforce that is not only better suited to solving some of the problems that organizations struggle with today but in many cases will do it for free.
Group of answer choices
a. Crowdsourcing
b. LinkedIn
c. Social recruiting
d. Brainstorming
Answer:
a. Crowdsourcing.
Explanation:
Crowdsourcing can be defined as a process of gathering information, ideas, micro-tasks, goods and services, finances, and votes into a project or organizational task from a large group of fast growing participants, either paid or unpaid mostly through the internet. These group of participants are saddled with the responsibility of creating value by contributing significantly to an organization typically over the internet.
Crowdsourcing can give every business access to an agile workforce that is not only better suited to solving some of the problems that organizations struggle with today but in many cases will do it for free.
Pricing strategy varies significantly across different market structures.
a. True
b. False
Answer:
the answer is yes or true
Explanation:
you can understand it by Pricing strategy is the overarching approach used to set pricing for a company's products and services. It doesn't define actual price points, but the pricing structure is a consequence of the strategy, and it's where you set the price customers see
Costco and other big box price clubs charge a membership fee on top of the price of goods sold to members. This is an example of
Answer: Service Charge
Explanation: a service charge goes toward the day to day running costs of a company, used to cover things like building costs, insurance, employee compensation. It is how companies like Costco are able to pass along reduced price products to members.
Brett's Gift Box estimates that it will sell 30,000 porcelain figurines next year. Because porcelain figurines are so easily damaged, the average per unit carrying cost of the figurines is $25. The per order cost of ordering is $800. Assume that Brett wants a safety stock of 75 figurines. If Brett reorders the figurines based on the economic order quantity, what is Brett's average inventory of porcelain figurines?
If Brett reorders the figurines based on the economic order quantity, Brett's average inventory of porcelain figurines is 768 units.
The economic order quantity is computed as the square root of (2 x Annual Sales Unit (Demand) x Ordering Cost)/Carrying Cost
= square root of (2 x 30,000 x $800)/$25
= square root of 1,920,000
= 1,386 units
Average inventory = (Economic Order Quantity)/2 + Safety stock
= 1,386/2 + 75
= 693 + 75
= 768 units
Thus, Brett's Gift Box average inventory of porcelain figurines is 768.
Learn how to calculate average inventory and the use of economic order quantity here: https://brainly.com/question/5525521 and https://brainly.com/question/9068415 respectively.
Data:
Estimate sales units for next year = 30,000 porcelain figurines
Average per-unit carrying cost = $25
Per-order Ordering Cost = $800
Required safety stock = 75 figurines
If budgeted beginning finished goods inventory is $8,000, budgeted ending finished goods inventory is $9,400, and budgeted cost of goods sold is $10,260, budgeted cost of goods manufactured should be
Answer:
Cost of goods manufactured= $11,660
Explanation:
Giving the following information:
Beginning inventory= $8,000
Ending inventory= $9,400
COGS= $10,260
To calculate the cost of goods manufactured, we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
10,260 = 8,000 + cost of goods manufactured - 9,400
cost of goods manufactured= 10,260 - 8,000 + 9,400
cost of goods manufactured= $11,660
how is corporate income tax similar to direct tax ? (2)
Answer:
Corporate tax is an expense of a business (cash outflow) levied by the government that represents a country's main source of income, whereas personal income tax is a type of tax governmentally imposed on an individual's income, such as wages and salaries.
An increase in input prices causes:___________
a) the market supply to shift inward, driving the equilibrium price downward.
b) the market supply to shift outward, leading to a higher equilibrium price.
c) the market supply to shift inward, driving the equilibrium price higher.
d) the supply curve to decrease and the demand curve to decrease.
Answer: the market supply to shift inward, driving the equilibrium price higher.
Explanation:
An increase in input prices will result into a rise in the production costs. This will result in a leftward shift of the supply curve.
Therefore, the market supply will shift inward, driving the equilibrium price higher. This simply means that there will be lesser supply of the product and hence, increase in price.
1. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $4,200 and a two-year service life.
2. At the end of January, $23,000 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 3% will not be collected.
3. Accrued interest expense on notes payable for January.
4. Accrued income taxes at the end of January are $14,200.
5. By the end of January, $4,200 of the gift cards sold on January 2 have been redeemed
Prepare an adjusted trial balance as of January 31, 2018
Answer:
1 Depreciation expeense (Debit) $4,200
Accumulated depreciation (Credit) $4,200
2.Bad Debt expense (Dr.) $6,900
Accounts Receivables (Cr.) $6,900
3. Accrued Interest Expense (Dr.) $1,200
Notes Payable (Cr.) $1,200
4. Accrued Income Tax (Dr.) $14,200
Cash (Cr.) $14,200
5. Cash (Dr.) $4,200
Redemption of Gift Cards (Cr.) $4,200
Explanation:
Depreciation expense is considered as a tax shield. The larger the depreciation expense, the lower will be the taxable income. The adjusting entries are required before trial balance is created. There are few transaction that occur after the initial recording of the transactions. These transaction needs to be adjusted before the financial statements preparation.
When the Depreciation expense is considered as a tax shield and also The larger the depreciation expense, then the lower will be the taxable income.
What is Depreciation?
The term depreciation directs to an accounting method utilized to allocate the cost of a tangible or physical asset over its useful life.
1. Depreciation expense (Debit) $4,200
Accumulated depreciation (Credit) $4,200
2. Bad Debt expense (Dr.) $6,900
Accounts Receivables (Cr.) $6,900
3. Accrued Interest Expense (Dr.) $1,200
Notes Payable (Cr.) $1,200
4. Accrued Income Tax (Dr.) $14,200
Cash (Cr.) $14,200
5. Cash (Dr.) $4,200
Redemption of Gift Cards (Cr.) $4,200
Depreciation expense is considered a tax shield. The more considerable the depreciation expense, the lower will be the taxable income. The adjusting entries are required before the trial balance is created. Few transactions occur after the initial recording of the transactions. These transaction needs to be adjusted before the preparation of the financial statements.
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Morrison Corporation had the following common stock record during the current calendar year: Outstanding-January 1 2,000,000 Additional shares issued 3/31 100,000 Distributed a 10% stock dividend on 6/30 Additional shares issued 9/30 100,000 What is the number of shares to be used in computing basic EPS
Answer:
the number of shares to be used in computing basic EPS is 2,100,000.
Explanation:
Basic Earnings Per Share = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stocks
Weighted Average Number of Common Stocks Calculation :
Common Stocks Outstanding on 1 January 2,000,000
Additional Shares 9/12 × 100,000 75,000
Additional Shares 3/12 × 100,000 25,000
Weighted Average Number of Common Stocks 2,100,000
TB MC Qu. 8-174 LBC Corporation makes and sells ... LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.0 hours of direct labor at the rate of $16.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June. The company plans to sell 39,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 610 and 110 units, respectively. Budgeted direct labor costs for June would be:
Answer:
Direct labor cost= $1,232,000
Explanation:
Giving the following information:
Each unit of Product WZ requires 2 hours of direct labor at a rate of $16 per direct labor-hour.
Sales= 39,000 units
Beginning inventory= 610 units
Desired ending inventory= 110 units
First, we need to calculate the production required:
Production= sales + desired ending inventory - beginning inventory
Production= 39,000 + 110 - 610
Production= 38,500
Now, the direct labor budget:
Direct labor hours= 38,500*2= 77,000 hours
Direct labor cost= 77,000*16= $1,232,000
A large furniture and appliance rental business is considering sponsorship options. It has brought together vice-presidents from the various functional areas of the company to determine which sponsorships will most effectively reach the rental company's prospective customers. The rental company has established a:
a. cross-functional team
b. horizontally-organized team
c. vertically-organized team
d. problem-resolution team
e. project committee
Answer:
a. cross-functional team
Explanation:
In this case, the most appropriate is the use of a cross-functional team.
This team is formed by several professionals with knowledge, techniques, skills and resources to help the company achieve its goals and objectives.
The benefits of forming a cross-functional team is to aggregate the potential of each member in a common objective, which ensures greater flexibility of ideas, greater innovation, greater exchange of experiences, which guarantees greater team engagement, greater possibility of designing solutions and greater efficiency in organizational processes.
Shaw and Maya agree to a total contract price of $920,000. How much of the contract price should Maya allocate to the machine, installation, and training, respectively?
Answer: $736,000; $92,000; $92,000
Explanation:
The amount allocated will be proportional based on the cost of each when in a separate contracts.
Total when in separate contracts = 800,000 + 100,000 + 100,000
= $1,000,000
Proportion of Machine = 800,000/1,000,000
= 8/10
Proportion of Installation = 100,000/1,000,000
= 1/10
Proportion of Training = 100,000/1,000,000
= 1/10
Cost to allocate to Machine
= 8/10 * 920,000
= $736,000
Cost to allocate to Installation
= 1/10 * 920,000
= $92,000
Cost to allocate to Training
= 1/10 * 920,000
= $92,000
Answer: $736,000; $92,000; $92,000
Using the periodic FIFO inventory costing method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.) Multiple Choice $3,405. $3,445. $3,200. $3,540. $3,270.
Answer:
The question is incomplete, below is the completed question:
A company had the following purchases and sales during its first year of operations:
January: Purchases 10 units at $120-sales 6 units
February: Purchases 20 units at $125-sales 5 units
May: Purchases 15 units at $130-sales 9 units
September: Purchases 12 units at $135-sales 8 units
November: Purchases 10 units at $140-sales 13 units
On December 31, there were 26 units remaining in ending inventory. Using the periodic FIFO inventory costing method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.) Multiple Choice $3,405. $3,445. $3,200. $3,540. $3,270.
Answer:
The cost of ending inventory = $3,540
Explanation:
FIFO (First-in-first-out) inventory costing method is a costing method where the goods purchased first are sold first before those purchased at a later date.
In order to answer this question, let us first determine the total number of units of goods purchased during the year
Month units
January 10
February 20
May 15
September 12
November 10
Total 67
Therefore a total of 67 units were purchased during the year.
Next, we are told that the ending inventory balance = 26 units
Therefore the number of units sold during the year = Total purchase - ending inventory = 67 - 26 = 41
41 units were sold during the year.
using the FIFO inventory method, the units purchased first are sold out first therefore, out of the 41 units sold:
January = 10 units
February = 15 units
May = 11 units
Total = 41 units
This means that out of the 15 unit purchased in may, 11 units were sold, hence the number of units remaining = 15 - 11 = 4 units.
From this point up to November, forms the ending iniventory therefore, the the total ending inventory is calculated as follows:
Month units price per unit($) Total($)
May 4 130 520
September 12 135 1,620
November 10 140 1,400
Total 26 3,540
Therefore, the cost of ending inventory = $3,540
During the year, Bramble Corp. made an entry to write off a $31400 uncollectible account. Before this entry was made, the balance in accounts receivable was $413000 and the balance in the allowance account was $34500. The accounts receivable amount expected to be collected after the write-off entry was
Answer:
The accounts receivable amount expected to be collected after the write-off entry is $378,500
Explanation:
Allowance for bad debt = $34,500
Bad debt written off = $31,400
Credit balance in allowance for bad debts = Allowance for bad debt - Bad debt written off
= $34,500 - $31,400
= $3,100
The balance in receivables account = ($413,000 - $31,400) - ($34,500 - $31,400)
= $381,600 - $3,100
= $378,500
College Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $ 2 comma 009 comma 000 in September, $ 2 comma 240 comma 000 in October, $ 2 comma 379 comma 000 in November, and $ 2 comma 520,000 in December. College Logos sets its prices to earn an average 40% gross profit on sales revenue. The company does not want inventory to fall below $ 425 comma 000 plus 15% of the next month's cost of goods sold.Required:Prepare a cost of goods sold, inventory, and purchases budget for the months of October and November.
Answer:
College Logos
Cost of goods sold, inventory, and purchases budget for the months of October and November:
October November
Sales $ 2,240,000 $ 2,379,000
Cost of goods sold 60% 1,344,000 1,427,400
Gross profit, 40% of sales $896,000 $951,600
Inventory Budget:
Ending Inventory $626,600 $639,110
Beginning Inventory $606,810 $626,600
Purchases Budget:
Ending Inventory $626,600 $639,110
Cost of goods sold 1,344,000 1,427,400
Cost of goods available for sale $1,970,600 $2,066,510
less Beginning Inventory $606,810 $626,600
Purchases $1,363,790 $1,439,910
Explanation:
a) Data and Calculations:
September October November December
Sales $ 2,009,000 $ 2,240,000 $ 2,379,000 $ 2,520,000
Cost of goods
sold 60% 1,205,400 1,344,000 1,427,400 1,512,000
Gross profit $803,600 $896,000 $951,600 $1,008,000
Ending Inventory $606,810 $626,600 $639,110 $651,800
Beginning Inventory $606,810 $626,600 $639,110
Purchases:
Ending Inventory $606,810 $626,600 $639,110 $651,800
Cost of goods
sold 1,205,400 1,344,000 1,427,400 1,512,000
Cost of goods available
for sale $1,812,210 $1,970,600 $2,066,510 $2,163,800
less Beginning Inventory $606,810 $626,600 $639,110
Purchases $1,363,790 $1,439,910 $1,524,690
Kenton and Denton Universities offer executive training courses to corporate clients. Kenton pays its instructors $6,405 per course taught. Denton pays its instructors $305 per student enrolled in the class. Both universities charge executives a $349 tuition fee per course attended.
A. Prepare income statements tor Kenton and Lenton, assuming that 21 students athend a course.
B. Kenton University embark on a strategy to entice students from Denton University by lowering its tuition to $240 per course. Prepare an income statement for Kenton assuming that the university is successful and enrolls 40 students in its course.
C. Denton University embarks on a strategy to entice students from Kenton University by lowering its tuition to $240 per course. Prepare an income statement for Denton, assuming that the university is successful and enrolls 40 students in its course.
D. Prepare income statements for Kenton and Denton Universities, assuming that 10 students attend a course, and assuming that both universities charge executives a $450 tuition fee per course attended.
Answer:
Kenton and Denton Universities
A. Income Statements
Kenton Denton
Tuition Revenue $7,329 $7,329
Instructors' Salaries 6,405 6,405
Net Income $924 $924
B. Kenton University embark on a strategy to entice students from Denton University by lowering its tuition to $240 per course.
Income Statement for Kenton University:
Tuition Revenue $9,600
Instructors' Salaries 6,405
Net Income $3,195
C. Denton University embarks on a strategy to entice students from Kenton University by lowering its tuition to $240 per course.
Income Statement for Denton University:
Tuition Revenue $9,600
Instructors' Salaries 12,200
Net Income (Loss) ($2,600)
D. Income Statement for Kenton and Denton Universities:
Kenton Denton
Tuition Revenue $4,500 $4,500
Instructors' Salaries 6,405 3,050
Net Income/(Loss) ($1,905) $1,450
Explanation:
a) Data and Calculations:
Kenton University:
Salaries to instructors per course = $6,405
Tuition fee per course = $349
Denton University:
Salaries to instructors per student = $305
Tuition fee per course = $349
b) Kenton and Denton Universities' costs are determined by their nature based on whether they are fixed or variable. These costs also determine the level of net income to be recorded by each university.
________ and currency risks are to key country success factors as land costs and ________ are to key region success factors. Labor costs; exchange rates Exchange rates; environmental impact Location of markets; climate Land costs; air and rail systems Cultural issues; zoning restrictions
Answer:
A.Labor cost; proximity to customers
Explanation:
The key country success factors would be responsible for the country success i.e. labor cost and for the factors related to region success is the customer proximity i.e to become important for business success
Therefore the correct answer is labor cost and the customer proximity
Hence all the other options are incorrect
Assume that the hourly cost to operate a commercial airplane follows the normal distribution with a mean of $5,793 per hour and a standard deviation of $439. What is the operating cost for the lowest 2% of the airplanes?
Answer:
x1 = 4891.294
Explanation:
given data
mean μ = $5,793
standard deviation σ = $439
solution
we know here that
P(x < x1 ) = 0.02 .................1
so
[tex]P(\frac{x-\mu }{\sigma } < \frac{x1-\mu }{\sigma }) = 0.02[/tex]
so
[tex]P(z < \frac{x1-\mu }{\sigma }) = 0.02[/tex]
[tex]\frac{x1-\mu }{\sigma }[/tex] = invNorm(0.02)
so
x1 = μ + σ × invNorm(0.02) .....................2
we use here table for invNorm(0.02) and put value in eq 2
x1 = 5793 + 439 × (-2.054 )
x1 = 4891.294