1. You are special assistant to the commander-in-chief of apeacekeeping mission to a war-tornpart of the world. The unit consists of a few thousandpeacekeeping troops from the UnitedStates, France, India, and four other countries. The troopswill work together forapproximately one year. What strategies would you recommendto improve mutualunderstanding and minimize conflict among these troops?Seen 2 months ago Ayesha Shaban 0 answers
What is the net present value (NPV) of this replacement project?The old equipment has a book value of $200,000 (year 0) and a current salvage value of $300,000 (year 0). It is being depreciated on a straight-line basis. It has four more years of depreciation left ($50,000 in each years 1-4).The new equipment will have cost $800,000 (year 0) and $0 salvage value at the end of its life. It will be depreciated using the straight-line method over eight years (years 1-8).Replacing the old machine with the new machine will require an investment in net working capital of $50,000 that will be recovered at the end of the new machine’s life (year 8).The new machine is more efficient, and the incremental increase in its operating income (EBIT) is equivalent to $600,000 for the next eight years (years 1-8).The project’s cost of capital is 13%. The annual tax rate is 30%.Which is the net present value (NPV) of this replacement project:A. $1,785,445
D. $1, 874,717
Listed below are five procedures followed by The Beat Company.
Several individuals operate the cash register using the same register drawer.
A monthly bank reconciliation is prepared by someone who has no other cash responsibilities.
Ellen May writes checks and also records cash payment journal entries.
One individual orders inventory, while a different individual authorizes payments.
Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording.
Indicate whether each procedure is an example of good internal control or of weak internal control. If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated. Use the table below
The Minnetonka Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis.
After considerable research, a cross-country ski line has been developed. Because of the conservative nature of the company management, however, Minnetonka’s president has decided to introduce only one type of the new skis for this coming winter. If the product is a success, further expansion in future years will be initiated.
The ski selected is a mass-market ski with a special binding. It will be sold to wholesalers for $80 per pair. Because of availability capacity, no additional fixed charges will be incurred to produce the skis. A $100,000 fixed charge will be absorbed by the skis, however, to allocate a fair share of the company’s present fixed costs to the new product.
Using the estimated sales and production of 10,000 pair of skis as the expected volume, the accounting department has developed the following cost per pair of skis and bindings:
Direct Labor: $35
Direct Material: $30
Total Overhead: $15
Minnetonka has approached a subcontractor to discuss the possibility of purchasing the bindings. The purchase price of the bindings from the subcontractor would be $5.25 per binding, or $10.50 per pair. If the Minnetonka Corporation accepts the purchase proposal, it is predicted that direct-labor and variable-overhead costs would be reduced by 10% and direct-material costs would be reduced by 20%.
1. Should the Minnetonka Corporation make or buy the bindings? Show calculations to support your answer.
2. What would be the maximum purchase price acceptable to the Minnetonka Corporation for the bindings? Support your answer with an appropriate explanation.
3. Instead of sales of 10,000 pair of skis, revised estimates show sales volume at 12,500 pair. At this new volume, additional equipment, at an annual rental of $10,000 must be acquired to manufacture the bindings. This incremental cost would be the only additional fixed cost required even if sales increased to 30,000 pair. (This 30,000 level is the goal for the third year of production.) Under these circumstances, should the Minnetonka Corporation make or buy the bindings? Show calculations to support your answer.
4. What qualitative factors (i.e. issues with vendors, customers, or within the product itself) should the Minnetonka Corporation consider in determining whether they should make or buy the binding
Tom and Judy Bell, who file jointly, collected $6,000 of Social Security benefits, $18,000 in fully taxable pension payments and $10,000 of tax-exempt interest. Howmuch of their Social Security is included in gross income? How would ths change if they had received $20,000 in tax-exempt interest?Seen 1 years ago Garcia 2 answers
Garcia Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2008, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of January 1, Job No. 49 had been completed at a cost of $90,000 and was part of finished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account.
During the month of January, Garcia Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $122,000 and $158,000, respectively. The following additional events occurred during the month.
Purchased additional raw materials of $90,000 on account.
Incurred factory labor costs of $65,000. Of this amount $16,000 related to employer payroll taxes.
Incurred manufacturing overhead costs as follows: indirect materials $17,000; indirect labor $15,000; depreciation expense $19,000, and various other manufacturing overhead costs on account $20,000.
Assigned direct materials and direct labor to jobs as follows.
Job No. Direct Materials Direct Labor
50 $10,000 $ 5,000
51 39,000 25,000
52 30,000 20,000
Kennywood Amusement Park spends $75,000 each year in consulting services for ride inspection and maintenance recommendations. New actuator element technology enablesengineers to simulate complex computer- controlled movements in any direction. Construct a cash flow diagram to determine how much the park could afford to spend nowon the new technology, if the cost of annual consulting services will be reduced to $30,000 per year. Assume the park uses an interest rate of 15% per year and itwants to recover its investment in 5 years.Seen 1 years ago James Charlie 0 answers
Merchant Co. expects to sell 10,000 units at $120 each. Each unit is expected to require 2lbs. of material @ $10/lb. and 3 direct labor hours @ $5/DLH. The overheadrate is estimated to be $15/DLH. The beginning inventories are: DM 1,000 lbs. and Finished Goods 2,000 units. The budgeted ending inventories are: DM 2,000 lbs. andFinished Goods 1,000 units.
a. What is Merchant Co's budgeted sales (in $)?
b. What is Merchant Co's budgeted production (in units)?
c. Assuming a production of 9,500 units, what is the budgeted materials purchase (in lbs.&$)?
d. Based on your answer to (b), what is the budgeted cost per unit?
e. Based on your answer to (b), what is the budgeted cost of goods sold?
f. Based on your answer to (b), what is the budgeted cost for DL &FOH respectively?
The Tapley Company is trying to determine an acceptable growth rate in sales. While the firm wants to expand, it does not want to use any external funds to supportsuch expansion due to the particularly high interest rates in the market now. Having gathered the following data for the firm, what is the maximum growth rate it cansustain without requiring additional funds?
Cody Paulson and Hannah O'Brien formed a partnership, dividing income as follows:
Annual salary allowance to Paulson of $26,000.
Interest of 5% on each partner's capital balance on January 1.
Any remaining net income divided to Paulson and O'Brien, 2:1.
Paulson and O'Brien had $50,000 and $120,000, respectively, in their January 1 capital balances. Net income for the year was $33,000.
How much net income should be distributed to Paulson?
A company is considering purchasing factory equipment that costs $480,000 and is estimated to have no salvage value at the end of its 8-year useful life. If theequipment is purchased, annual revenues are expected to be $135,000 and annual operating expenses before depreciation expense are expected to be $57,000. Thestraight-line method of depreciation would be used.
The cash payback period on the equipment is
a 8.0 years
b 13.3 years
c 3.1 years
d 6.15 years
How did you get that?
Given the following information, what is the standard deviation of the returns on a portfolio that is invested 40 percent in stock A, 35 percent in stock B, andthe remainder in stock C?State of Economy Prob. of State of Economy Rate of Return is state occursNormal .65 Stock A-14.3% Stock B- 16.7% Stock C- 18.2%Recession .35 -9.8% 5.4% -26.9%Seen 1 years ago sla Bethany 1 answers
During the year, Hawkings produced 10,000 units, used 20,000 direct labor hours, and incurred variable overhead of $90,000. Budgeted variable overhead for the year was$88,000. The hours allowed per unit are 2.1. The standard variable overhead rate is $4.00 per direct labor hour. The variable overhead spending variance isSeen 1 years ago Roy Taylor 0 answers
Use this link to access approaite figure:http://www.youtube.com/watch?v=Bu12MpYkgLg
This a multiple choice question, pick one answer (A-E)
Please explain why you pick an answer25.Consider the PPC in the figure above, which describes a firm that can produce both good X and good Y. Which of the following is true?A)The opportunity cost of the first unit of good X is 1 unit of good Y.B)The opportunity cost of the ninth unit of good X is 9 units of good Y.C)The opportunity cost of the first unit of good X is 2 units of good Y.D)The opportunity cost of one unit of good X is 10 units of good Y.E)The opportunity cost of the tenth unit of good X cannot be determined from the information given.
During a normal economy, the common stock of Douglass &Frank is expected to return 12.5 percent. During a recession, the expected return is -5 percent and duringa boom, the expected return is 18 percent. The probability of a normal economy is 65 percent while the probability of a recession is 25 percent and the probability ofa boom is 10 percent. What is the standard deviation of these expected returns?
A. 7.49 percent
B. 8.06 percent
C. 8.68 percent
D. 10.33 percent
E. 11.47 percent
1. Direct materials requisitioned during the month:
Job 101 $22,000
Job 102 16,000
Job 103 24,000
2. Direct labor incurred and charged to jobs during the month was:
Job 101 $30,000
Job 102 35,000
Job 103 20,000
3. Manufacturing overhead was applied to jobs worked on using a
predetermined overhead rate based on 80% of direct labor costs.
4. Actual manufacturing overhead costs incurred during the month amounted
5. Job 101 consisting of 1,000 units and Job 103 consisting of 200 units were
completed during the month.
(a) Prepare journal entries to record the above transactions.
(b) Answer the following questions:
1. How much manufacturing overhead was applied to Job 103
during the month?
2. Compute the unit cost of Jobs 101 and 103.
3. What is the balance in Work In Process Inventory at the end of
4. Determine if manufacturing overhead was under- or overapplied
during the month. How much?
As expected, since I am having difficulty with the first part of this question it is assumed I will have a problem with the next part.
2. The company's tour director has been criticized because only about 50% of the seats on Blueline's tours are being filled as compared to an industry average of 60%.The tour director has explained that Blueline's average seat occupancy could be improved considerably by eliminating about 10% of its tours, but that doing so wouldreduce profits. Explain how this could happen.
The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by direct labor hours. At the beginning of the year the companyexpects fixed overhead costs to be $600,000 and variable costs to be $800,000. The expected machine hours are 6,000 and the expected direct labor hours are 80,000. Theactual fixed overhead costs are $700,000 and the actual variable overhead costs are $750,000. The actual machine hours during the year are 5,500 and the actual directlabor hours are 90,000.a. How much overhead is allocated?b. What is the over/underabsorbed overhead?
Mark Mitton, the liaison to the IS department, has eliminated all but the best three systems. Mark developed a list of required features, carefully reviewed eachsystem, talked to other users, and interviewed appropriate systems representatives. Mark used a point-scoring system to assign weights to each requirement. Markdeveloped Table 21-4 to help him select the best system.
a. Use a spreadsheet to develop a point-scoring matrix and determine which system Mark should select.
b. Susan Shelton did not agree with Mark’s weightings and suggested the following changes:
Reputation and reliability
Quality of support utilities
34.Anders, Inc., has 5,000 shares of 6%, $100 par value, preferredstock and 20,000 shares of $1 par value common stock outstanding atDecember 31,2009. The board of directors declares and pays a$50,000 dividend in 2009. What is the amount of dividends receivedby the Preferred andcommonstockholders in 2009? (PR11-1)A)Preferred Stockholders dividends ____________________B)Common Stockholders Dividends ___________________Seen 1 years ago Martin Brown 0 answers
Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinicparticipants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometricpressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won’t damage them. Suzie decides to have MU watchesavailable for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2013. All watches aresold for $309 each.
Jul. 17 Purchased 57 watches for $8,037 ($141 per watch) on account.
Jul. 31 Sold 44 watches for $13,596 cash.
Aug. 12 Purchased 43 watches for $6,708 ($156 per watch) cash.
Aug. 22 Sold 22 watches for $6,798 on account.
Sep. 19 Paid for watches ordered on July 17.
Sep 27 Received full payment for watches sold on account on August 22.
Oct. 27 Purchased 81 watches for $13,770 ($170 per watch) cash.
Nov. 20 Sold 105 watches for $32,445 cash.
Dec. 4 Purchased 104 watches for $18,096 ($174 per watch) cash.
Dec. 8 Sold 32 watches for $9,888 on account.
a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2013, assuming Suzie uses FIFO to account for inventory. (Omit the "$" sign inyour response.)
Sales revenue $
Cost of goods sold $
Ending inventory $
b. Prepare the gross profit section of a partial income statement for transactions related to MU watches. (Amounts to be deducted should be indicated with minus sign.Omit the "$" sign in your response.)
GREAT ADVENTURES, INC.
Partial Income Statement
For the year ended December 31, 2013
2. Late in December, the next generation of multiuse (MU II) watches is released. In addition to all of the features of the MU watch, the MU II watches are equippedwith a global positioning system (GPS) and have the ability to download and play songs and videos off the internet. The demand for the original MU watches is greatlyreduced. As of December 31, the estimated market value of MU watches is only $111 per watch.
a. Record any necessary entry on December 31, 2013, related to this information. (Omit the "$" sign in your response.)
Date General Journal Debit Credit
b. For what amount would MU inventory be reported in the December 31, 2013, balance sheet? (Omit the "$" sign in your response.)
MU Inventory $
c. Prepare an updated gross profit section of a partial income statement accounting for this additional information. (Amounts to be deducted should be indicated withminus sign. Omit the "$" sign in your response.)
GREAT ADVENTURES, INC.
Partial Income Statement
For the year ended December 31, 2013
Li Retailing reported the following items for the current year: Sales=$2,000,000; Cost of Goods Sold=$1,2000,000; Depreciation Expense=$140,000; AdministrativeExpense=$170,000; Interest Expense=$40,000; Marketing Expenses=$60,000; and Taxes=$20,000. Li's gross profit is equal to:
Common stock value-Variable Growth-Newman Manufacturing is Considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned $3.86per share and paid cash dividends of $2.16 per share (Do = $2.16) Grips earnings and dividends are expected to grow at 40% per year for the next 3 yrs. after whichthey are expected to grow 9% per year till infinity. What is the maximum price per share that Newman should pay for Grips if it had a required return of 12% oninvestments with risk characteristics similar to those of Grips. Round answer to the nearest cent.Seen 1 years ago Ava Linda 0 answers
1. Budgets need to be fair and attainable for employees to consider the budget important in their normal daily activities. Which of the following is not considered ahuman behavior problem?
a. Setting goals among managers that conflict with one another.
b. Setting goals too tightly making it difficult to meet performance expectation.
c. Allowing employees the opportunity to be a part of the budget process.
d. Allowing goals to be so low that employees develop a “spend it or lose it” attitude.
I need help double checking my homework please help if you can. Please show how you got the answer, I want to make sure I am doing the steps correctly as well.
Suppose you buy a 7 percent coupon, 20-year bond today when it’s first issued. If interest rates suddenly rise to 15%, what happens to the value of your bond? Why?
Employee earnings records for Medenciy Company reveal the following gross earnings for four employees through the pay period of December 15.
C. Ogle $93,500 D. Delgado $96,100
L. Jeter $97,600 T. Spivey $104,000
For the pay period ending December 31, each employee's gross earnings is $4,000.The FICA tax rate is 8% on gross earnings of $100,000.
Compute the FICA withholdings that should be made for each employee for the December 31 pay period. (If answer is zero, please enter 0. Do not leave any fieldsblank.)
C. Ogle $
D. Delgado $
L. Jeter $
T. Spivey $
The following transactions occurred during 2011. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-linebasis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixedassets disposed of during the year.
Jan. 30 A building that cost $112,000 in 1994 is torn down to make room for a new building. The wrecking contractor was paid $5,100 and was permitted to keep allmaterials salvaged.
Mar. 10 Machinery that was purchased in 2004 for $16,000 is sold for $2,900 cash, f.o.b. purchaser's plant. Freight of $300 is paid on the sale of thismachinery.
Mar. 20 A gear breaks on a machine that cost $9,000 in 2006. The gear is replaced at a cost of $3,000. The replacement does not extend the useful life of themachine.
May 18 A special base installed for a machine in 2005 when the machine was purchased has to be replaced at a cost of $5,500 because of defective workmanship on theoriginal base. The cost of the machinery was $14,200 in 2005. The cost of the base was $4,000, and this amount was charged to the Machinery account in 2005.
June 23 One of the buildings is repainted at a cost of $6,900. It had not been painted since it was constructed in 2007.
Prepare general journal entries for the transactions. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
Select any actions that increase the cash account. Select all that apply: (Points : 3)
payment is received on a receivable
An interest payment on a notes payable is made
A payment due is received from a client
An old machine is sold for cash
2. (TCO 2) Which one of the following will decrease the operating cycle? (Points : 3)
increasing the days' sales in inventory
decreasing the accounts payable period
decreasing the cash cycle
increasing the accounts receivable turnover rate
decreasing the accounts payable turnover rate
3. (TCO 2) Assume Green Leaf Nursery anticipated sales of $500 in this quarter. Accounts receivable at the beginning of the quarter was $300. Assuming a collectionperiod of 30 days, which is the approximate cash collections amount for the quarter? (Points : 3)
None of the above
4. (TCO 2) Which one of the following practices will reduce a firm's collection float? (Points : 3)
utilizing zero-balance accounts
depositing checks weekly rather than daily
requiring all customers pay by check rather than with cash
installing a lockbox system
paying all bills five days sooner
5. (TCO 2) Which of the following statements is true? Select all that apply: (Points : 3)
The optimal credit policy minimizes the total cost of granting credit.
Firms should avoid offering credit at all cost.
An increase in a firm's average collection period generally indicates that an increased number of customers are taking advantage of the cash discount.
The costs of the credit application process and the costs expended in the collection process are carrying costs of granting credit.
Capacity refers to the ability of a firm to meet its credit obligations out its operating cash flows.
The optimal credit policy is the policy that produces the largest amount of sales for a firm.
6. (TCO 2) You place an order for 100 units of inventory Part A at a unit price of $522. The supplier offers terms of 3/25, net 40. How much should you remit if youtake the discount? (Points : 3)
None of the above
7. (TCO 2) Auto Parts sells 1,200 electric parts per week and then reorders another 1,200 parts. If the relevant carrying cost per electric part is $4 and the fixedorder cost is $750, what is the total carrying cost and the restocking cost, respectively? (Points : 3)
$2,400 and $39,900
$3,200 and $33,800
$2,400 and $39,000
$3,400 and $30,000
None of the above
8. (TCO 2) Company ABC has expected sales of 12,000 units this year, an ordering cost of $6 per order and carrying costs of $1.60 per unit. What is the EOQ? (Points :3)
None of the above
9. (TCO 2) The _________ is the time it takes to acquire and sell inventory. (Points : 3)
accounts receivable period
accounts payable period
10. (TCO 2) List three examples of short-term investments. (Points : 3)
The yield to maturity for 15 year bonds is as follows for four different bond rating categories: Aaa 9.4% Aa1 9.6% Aa2 10.0% Aa3 10.2% Question: The bonds of Corp X were rated as Aa1 and issued at par a few weeks agao. The bonds have just downgraded to Aa2. Determine the new price of the bonds, assuming a 15 year maturity and semmiannual interest payments. As a first step, use the catagories above as a guide to appropiate interest rates for bonds with different ratings. I have two other questions that I need help in. If you help me with this question i will pay for the other two..Seen 1 years ago Gelbero Wilson 0 answers
On December 1, Discount Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $750. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $512. Another, with serial #1045, was purchased on November 1 for $477. The last player, serial #1056, was purchased on November 30 for $400.
Calculate the cost of goods sold using the FIFO periodic inventory method assuming that two of the three players were sold by the end of December, Discount Electronic's year-end.
Robinson, Inc. had outstanding $5,067,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $7,132,000 of 10%, 15-year bonds(interest payable July 1 and January 1) at 94. A portion of the proceeds was used to call the 11% bonds at 102 on August 1. Unamortized bond discount and issue costapplicable to the 11% bonds were $120,000 and $30,000, respectively.
(a) Prepare the journal entries necessary to record issue of the new bonds.
(b) Prepare the journal entries necessary to record the refunding of the outstanding bonds.
On January 1, 2011, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration. The total fair value of Starr Company wasassessed at $1,200,000. Harrison computed annual excess fair-value amortization of $8,000 based on the difference between Starr's total fair value and its underlyingnet asset fair value. The subsidiary reported earnings of $70,000 in 2011 and $90,000 in 2012 with dividend payments of $30,000 each year. Apart from its investment inStarr, Harrison had income of $220,000 in 2011 and $260,000 in 2012.
(a) What is the ending noncontrolling interest balance as of December 31, 2012?
1. What are network effects? What are the other names for this concept?
2. List several products or services subject to network effects. What factors do you believe helped each of these efforts achieve dominance?
3. Which firm do you suspect has stronger end-user network effects: Google’s online search tool or Microsoft’s Windows operating system? Why?
4. Network effects are often associated with technology, but tech isn’t a prerequisite for the existence of network effects. Name a product, service, or phenomenonthat is not related to information technology that still dominates due to network effects.
5. What are the factors that contribute to the value created by network effects?
6. Why is staying power particularly important to many technology products and services?
7. Think about the kinds of technology products that you own that are subject to network effects. What sorts of exchange do these products leverage (e.g., information,money, software, or other media)?
8. Think about the kinds of technology projects you own. What sorts of switching costs are inherent in each of these? Are these strong switching costs or weakswitching costs? What would it take for you to leave one of these services and use a rival? How might a competitor try to lessen these switching costs to persuade youto adopt their product?
9. Which other terms are sometimes used to describe the phenomenon of switching costs?
10. Think about the kinds of technology products that you own that are subject to network effects. What sorts of complementary benefits are available for theseproducts? Are complementary benefits strong or weak (meaning, do people choose the product primarily based on these benefits, or for some other reason)?
11. Identify firms that you believe have built a strong platform. Can you think of firms that have tried to develop a platform, but have been less successful? Why doyou suppose they have struggled?
Absorption costing income statement
On May 31, the end of the first month of operations, Trendwest Office Equipment Company prepared the following income statement, based on the variable costingconcept:
sales (12000) units ................................ $648000
variable cost of good sold
variable cost of goods manufactured ........$311040
less inventory may 31 (2400) UNITS .................$ 51840
variable cost of good sold $ 259200
manufacturing margin $ 388800
variable selling and administration expenses $ 168000
contribution margin...................................................... $220800
fixed costs :
fixed manufactured costs......................................$ 64800
fixed selling and administration expenses $ 51840 116640
income from operation 104160 ......................
Prepare an income statement under absorption costing. Enter all amounts as positive numbers.
TRENDWEST OFFICE EQUIPMENT COMPANY
Absorption Costing Income Statement
For the Month Ended May 31, 2010
Cost of goods sold: _________________
Less inventory, May 31 ____________
Cost of goods sold ___________
Gross profit ____________
Selling and administrative expenses ___________________
Income from operations _________________________
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