Mutual Bank is owed a 10% note payable for $100,000 plus $8.000 in interest by Island Corporation. On October 1, 20X1. Island and Mutual Bank reach an agreement under which Island will pay Mutual $128.000 on the note's due date of October 1, 20x3. The Island's carrying value of the restructured note is $108,000
What is a Mutual saving Bank?A mutual savings bank is a form of thrift institution that was initially created to help low-income people. Historically, these people have put their money into long-term, fixed-rate investments like mortgages. Deposits at mutual savings banks (MSBs) are protected by the Federal Deposit Insurance Corporation (FDIC).
Mutual savings banks allow clients to have low-balance accounts while collecting interest.
Principal $100,000 + interest due $8,000 = $108,000
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discuss a time when you succeeded landing the job that you want! as how you were able to get the job? What resources did you use?
To succeed in landing the job you want, you need to take the following steps:
Step 1: Identify the job that you want Before you start applying for jobs, you need to know what job you want. Identify the job position and the industry that you want to work in. Make a list of the companies that you would like to work for. Doing research about the company and job position is necessary to be able to tailor your resume and cover letter to match their requirements.
Step 2: Update your resume and cover letterThe resume and cover letter are two important tools in the job search process. It’s essential to keep them updated. It is essential to tailor the resume and cover letter for the job position you want. Be specific about the skills and experience that match the job description.
Step 3: NetworkIt’s important to network and make connections with people who work in your industry of interest. Networking could be done through LinkedIn, attending job fairs, or joining clubs or organizations that are related to your industry of interest.
Step 4: Job search engines and recruitment agencies Job search engines and recruitment agencies are excellent resources to help you find jobs in your industry of interest. Some of the popular job search engines are Indeed, Monster, and Glassdoor. Recruitment agencies are also helpful in finding jobs and have a database of available job positions.
Step 5: Prepare for the interview Once you land the job interview, it’s important to prepare and research the company and the job position. Prepare answers to common interview questions. Dress professionally and be on time. Show your enthusiasm and interest in the job position. Be confident and be yourself.
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10. Which of the following is characteristic of a traditional economy?
Answer:The five characteristics of a traditional economy are: Centering around a family or tribe Existing in a hunter-gatherer and nomadic society Producing only what it needs Relying on a barter system Evolving once it starts farming and settling
Explanation:
Inflation is known to be a builder of ones wealth.
Question 3 options:
True
False
Explanation:
false
hope it's helpful to you
The amounts reported for assets and liabilities in the total column for the combining balance sheet for nonmajor governmental funds are also reported in the other governmental funds column of the governmental funds balance sheet.
A. True
B. False
Answer: True
Explanation:
Governmental funds refers to the assets, money, or property, of the government.
It should be noted that the non major governmental fund is also a form of fund as well and therefore, the amounts that are reported for assets and liabilities in the total column for the combining balance sheet for the nonmajor governmental funds will also have to be reported in the other governmental funds column of the governmental funds balance sheet.
Therefore, the correct option is True
Which are options for filtering specific categories in a record? Check all that apply.
right-clicking and choosing "Equals"
right-clicking and choosing "Does not equal"
right-clicking and choosing "Contains"
right-clicking and choosing "Does not contain"
placing cursor on desired data and clicking "Filter by selection"
right-clicking and choosing "Sort A to Z"
placing cursor on desired data column and clicking "Equal filter"
Answer:
placing cursor on desired data and clicking "Filter by selection"
right-clicking and choosing "Sort A to Z"
Explanation:
The data can be filtered according to user requirements. There are several options to sort and filter data. The user can filter data according to different groups. He can sort the data according to ascending and descending.
1. You will receive a Financial Aid Award Letter... *
Before you have completed the FAFSA
After you have completed the FAFSA and applied to colleges
After you have completed the FAFSA and have been accepted to colleges
O After you have started your first semester of classes
effective change management requires that managers:
A. focus on management innovation.
B. identify performance gaps by routinely assessing operational activities and performance.
C. delegate supervision of change management to staff. D. resist change and focus on the status quo. E. none of these is correct
Effective change management requires that managers B. identify performance gaps by routinely assessing operational activities and performance. It is because the manager should make sure that all of the activities is goes well.
In economic and business, The management generally can be defined as a single or group of individuals who challenges and oversees a person or collective group of people in efforts to accomplish desired goals and objectives. Management has a function and main role to plan, organize, monitor and also direct individuals. There are several types of management, such as classical management, scientific management, operations management, and also behavioral management. In the classical management, Prescribed universal procedures that are not appropriate in some settings.
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Daily Enterprises is purchasing a $10.4 million machine. It will cost $46,000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $3.9 million per year along with incremental costs of $1.3 million per year. Daily's marginal tax rate is 35%. You are forecasting incremental free cash flows for Daily Enterprises. Whatare the incremental free cash flows associated with the new machine?
Answer:
$2,421,220
Explanation:
Calculation to determine incremental free cash flows associated with the new machine
First step is to calculate The cost of depreciation
Cost of depreciation= $10,4000,00 + $46,000/ 5
Cost of depreciation= $2,089,200
Now let calculate the Incremental free cash flows
Incremental free cash flows = ( $3.9 million - $1,300,000) * (1 - 0.35) + $2,089,200* 0.35
Incremental free cash flows = $1,690,000 + $731,220
Incremental free cash flows=$2,421,220
Therefore the incremental free cash flows associated with the new machine is $2,421,220.
Which groups of people are eligible for Medicare?
A. People over 65 who live below the poverty level only
B. People over 65 only
C. People who live below the poverty level
D. People over 65 and people with disabilities
The US Senate overwhelmingly passed the 2022 Defense Authorization Act. The $768 billion "Defense Authorization Act" not only exceeds the defense spending proposed by the Biden administration by $25 billion, but also increases the US defense budget by about 5% compared to last year.
The US Senate passed the 2022 Defense Authorization Act, a $768 billion bill that surpasses the Biden administration's defense spending proposal by $25 billion and represents a 5% increase in the US defense budget compared to the previous year.
1. The US Senate passed the 2022 Defense Authorization Act.
2. The Defense Authorization Act is a bill that determines the budget and expenditures for the US defense sector.
3. The total amount allocated for the Defense Authorization Act is $768 billion.
4. The defense spending proposed by the Biden administration was exceeded by $25 billion in this Act.
5. The Act represents a 5% increase in the US defense budget when compared to the previous year.
6. This increase in the defense budget indicates a commitment to strengthening the country's defense capabilities.
7. The Act was passed overwhelmingly, indicating strong support from the Senate.
8. The Defense Authorization Act is an essential piece of legislation that ensures the funding and resources necessary for the US military to carry out its operations effectively.
9. The Act covers various aspects of defense spending, including military personnel, equipment, research and development, and strategic initiatives.
10. By passing the Defense Authorization Act, the US Senate has demonstrated its commitment to national security and defense preparedness.
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The Domingos family bought a new refrigerator. How much more or less is the amount they spent than the amount they budgeted?Budgeted: $1,345.60 Spent: $1,354.66
Dr. Elizabeth Brennan
Answer:
A graduate of the University of Maryland School of Medicine, Dr. Brennan completed her pediatric residency at the Children's Hospital at Sinai in Baltimore, ...
Explanation:
expalin how foreign employment contributes to spurring nation economy
1) Country can get lots of foreign currency as the remittance which can be used to establish industries in the country. Such industries provide job opportunities in the country. 2) People who go overseas to work can learn different skills and technologies which can be beneficial for the development of our own country.
how does one factor for profit?
One factors for profit by checking- 1. the number of production units, 2. production per unit, 3. direct costs, 4. value per unit, 5.mix of enterprises, and 6. overhead costs.
These six factors all interact to determine profitability. The number of manufacturing units is the most fundamental variable that influences earnings in every enterprise.
What is Profit?The money a firm keeps after deducting all costs is its profit. Each business, whether it be a lemonade stand or a publicly listed multinational corporation, wants to make money.
As a result, a firm's success is measured by its profitability in all of its manifestations.
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A company's_______ tells you how much money the company has left over after subtracting all expenses. *
a) Net Profit
b) Gross Profit
c) Revenue
d) Cost Of Goods Sold (COGS)
Answer:
net profit
Explanation:
net profit is the money left after all cost are deducted
Answer:
D: COGS
Explanation:
A company's COGS tells you how much money the company has left over after subtracting all expenses
Using the percentage method for manual payroll systems with Forms W-4 from 2020 or later in Appendix C, determine the federal income tax withholding and calculate the net pay of the following employees. They are paid semimonthly.
C. Pare | Married, Filing Jointly, dependents < 12 = 2 | Pay $1,720
S. Lightfoot | Single, 1 Other dependents | Pay $3,265
The federal income tax withholding for C. Pare is $700.80, and the net pay is $159.20. Since the calculated federal income tax withholding exceeds the gross pay, the net pay for S. Lightfoot is negative. This is not possible, so there may be an error in the input data.
For C. Pare
Determine the gross pay for one pay period
$1,720 / 2 = $860
Calculate the annual salary
$860 x 24 = $20,640
Calculate the taxable income
$20,640 - (12,800 + 2,000) = $5,840
Find the appropriate tax bracket and calculate the federal income tax withholding
Taxable income falls in the 12% tax bracket for married filing jointly.
$5,840 x 0.12 = $700.80
Calculate the net pay
Gross pay - Federal income tax = Net pay
$860 - $700.80 = $159.20
Therefore, the federal income tax withholding for C. Pare is $700.80, and the net pay is $159.20.
For S. Lightfoot
Determine the gross pay for one pay period
$3,265 / 2 = $1,632.50
Calculate the annual salary
$1,632.50 x 24 = $39,180
Calculate the taxable income
$39,180 - (12,800 + 2,000 + 2,000) = $22,380
Find the appropriate tax bracket and calculate the federal income tax withholding
Taxable income falls in the 22% tax bracket for single filers.
($22,380 - $9,875) x 0.22 + $987.50 = $3,018.70
Calculate the net pay
Gross pay - Federal income tax = Net pay
$1,632.50 - $3,018.70 = -$1,386.20
Since the calculated federal income tax withholding exceeds the gross pay, the net pay for S. Lightfoot is negative. This is not possible, so there may be an error in the input data.
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Which characteristics describe customers who are more likely to have high assets and medium-low debt?
Customers with credit cards with no balance are more likely to have high assets and medium-low debt.
What do you mean by Credit card?A credit card is a small rectangular or metal piece of paper issued by a bank or financial services company, which allows cardholders to borrow money to pay for goods and services from merchants who accept cards to pay.
Customers who are more likely to have medium and low credit often use credit cards, but do not leave a balance. They also have a savings account and a retirement account.
Thus, Customers with have credit cards with no balance are more likely to have high assets and medium-low debt.
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Answer: They may have student loans and They only have a debit card.
Explanation:
Which of the following financial institutions is a not-for-profit organization?
Commercial Bank
Commercial Bank
Credit Union
Credit Union
Savings and Loan
Savings and Loan
All of the these are correct since financial institutions do not make profits
Answer:
Credit Union
Explanation:
A not for profit organization means the organization whose main goal is not to make the profit. Here the main goal is to provide the services for a particular services or to give the benefit to the people.
Like the financial services give to the members of the credit union
Therefore as per the given options, the second option is correct
Credit Union is a financial institution that is not for profit organization.
Credit union functions to serve the members by offering the products at affordable rates and fees. The credit union changes the interest fees into products it offers in this way the credit union is not for profit organization. Other financial institutions like commercial bank, savings and loan, banks give these profits to its shareholders.Learn more about bank:
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Please answer the questions in the photo. Do not copy and paste from the internet.
2. Businesses that market goods and services can be classified based on the types of products or services they offer. Here are some common classifications:
The businesses that would market goods and servicesConsumer goods: These are goods that are bought and used by individuals for their personal use. Examples include clothing, food, electronics, and household items. Businesses that sell consumer goods are often referred to as retailers, and they can be further classified based on the types of products they sell (e.g. clothing retailers, grocery stores, electronics stores).
Business-to-business (B2B): These are businesses that sell products or services to other businesses rather than to consumers. Examples include suppliers of raw materials, manufacturers of components, and consulting firms. B2B businesses can also be classified based on the types of products or services they offer (e.g. IT services, logistics companies, marketing agencies).
Service businesses: These are businesses that provide services rather than physical goods. Examples include healthcare providers, hairdressers, financial advisors, and consulting firms. Service businesses can be further classified based on the types of services they provide (e.g. healthcare services, professional services, personal services).
There are several types of retail businesses, each with its own advantages and disadvantages. Here are some examples:
Brick-and-mortar stores: These are traditional physical stores that customers visit to make purchases. Brick-and-mortar stores offer the advantage of providing a tactile and personal shopping experience, but they also require significant overhead costs (e.g. rent, utilities, inventory management).
Online retailers: These are businesses that sell products exclusively online, often through e-commerce platforms like Amazon or Shopify. Online retailers offer the advantage of lower overhead costs and a wider potential customer base, but they also face fierce competition and the need to constantly optimize their digital marketing efforts.
Pop-up shops: These are temporary physical stores that are set up in a specific location for a limited time (e.g. a holiday season). Pop-up shops offer the advantage of providing a unique and time-limited shopping experience, but they also require significant planning and logistical coordination.
Franchise stores: These are retail stores that operate under the brand and business model of a larger franchise organization (e.g. McDonald's, 7-Eleven). Franchise stores offer the advantage of a proven business model and brand recognition, but they also require significant initial investment and ongoing franchise fees.
Ultimately, the type of retail business that would be most interesting to pursue depends on factors such as personal preferences, financial resources, and market opportunities. For example, someone who is passionate about fashion and has a limited budget might consider starting an online boutique, while someone who has significant financial resources and is interested in owning multiple locations might consider investing in a franchise business.
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Which type of graphic organizer would best organize your notes on how to start a small business?
A). a timeline
B). a Venn diagram
C). problem-solution chart
D). a cluster diagram
Answer:
a Venn diagram
Explanation:
in general, which of these contract terms is not required to meet the requirement of definiteness? the parties involved the subject matter of the contract the time of payment acceptance assessment question in general, certain terms must be included in contracts to satisfy the requirement of definiteness. what are the exceptions to this rule? choose 2 answer choices. courts can rewrite contracts even if the intent is vague. if the contract is in writing, not all terms are required to be included. sales contracts under the ucc courts can complete a contract to supply some missing items.
If any of those contract conditions must generally be acceptance in order to satisfy the definiteness requirement?
The secret to acceptance is?Acceptance entails accepting the "unvarnished truths" about who we are and our circumstances, including the excellent and not so great, with passing judgment on ourselves. Acceptance is the starting point for growth and change, not a reason for us to remain trapped with things the way they are [9].
What does acceptance have to offer?Accepting enables us to speak up for our own needs but also acknowledging that other people may feel differently than we do, for example, and while also comprehending their possible reasons for doing so. As contrast to the "my way or the highway" viewpoint, this method pave the way for respect and cooperation between all parties.
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Which are examples of marketing,sales,and service workplaces? Check all that apply
A:ladoratories
B:schools
C:vehicles
D:warehouses
E:farms
F:stores
G:offices
Answer:
they are correct
Explanation:
Warehouses, stores, and offices are examples of places of employment for marketing, sales, and service. Thus, options D, F, and G are correct.
Why do individuals work in sales, marketing, and service?Most employees in these areas work there to boost product and service sales.
The vast majority of businesses depend on sales and marketing to generate revenues.
Their salespeople generate a large portion of their revenue. As a result, sales and marketing experts are highly sought after in all sectors of the economy.
It explains why marketing positions are available in every sphere of the economy.
As a result, the traditional places of employment for those in the marketing, sales, and service sectors are establishments like stores, factories, and warehouses.
In both your personal and professional life, a job in sales may provide you with stimulating and rewarding options.
The chance to become a top sales earner is available to those with the following qualities: creativity, knowledge, strategy, independence, confidence, and motivation.
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A price at which the demanded quantity is equal to the produced quantity of the product is called the
A price at which the demanded quantity is equal to the produced quantity of the product is called the equilibrium price.
What is the equilibrium price?Equilibrium is the point at which the quantity demanded is equal to the quantity supplied. The price at which equilibrium occurs is known as equilibrium price.
When shown a demand-supply graph, the equilibrium point is where the demand curve would cross the supply curve. At the area above the equilibrium point, there would be a surplus. This is because the quantity demanded would be less than the quantity supplied. At the area below the equilibrium point, there would be a scarcity. This is because the quantity demanded would be greater than the quantity supplied.
For example:
Price Quantity demanded Quantity supplied
12 100 200
10 150 150
8 200 100
The equilibrium price is 10.
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Shamrock Incorporated had 46,400, $2.50 preferred shares issued. It did not pay a dividend to the preferred shareholders in 2023 and
2024.
What are the dividends in arrears, if any, at December 31, 2024, if the shares are cumulative?
The dividends in arrears for Shamrock Incorporated at December 31, 2024, are $116,000.
Dividends in arrears are a way of measuring the amount of dividend payments that are owed to shareholders but have not been paid.
Dividends that have not been paid are known as dividends in arrears.
If the shares are cumulative, this means that the company must pay any missed dividends before paying common stockholders dividends.
If preferred stock dividends are cumulative, they must be paid in full before any dividends can be paid to common shareholders.
The dividends in arrears for Shamrock Incorporated at December 31, 2024, can be calculated using the following formula:
Dividends in arrears = (Number of preferred shares) x (Dividend rate) x (Number of years in arrears)
Number of preferred shares = 46,400
Dividend rate = $2.50 per share per year
Number of years in arrears = 1 year (since no dividend was paid in 2023)
Dividends in arrears = (46,400) x ($2.50) x (1)
Dividends in arrears = $116,000
Therefore, the dividends in arrears for Shamrock Incorporated at December 31, 2024, are $116,000.
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after a customer buys a custom cake or receives catering service from for goodness bakes, a service representative contacts each customer to conduct a survey. the survey information is a form of output.
Yes, that is correct. The survey information collected from customers is a form of output, as it is the result or outcome of the customer service representative's efforts.
This is done to gather feedback on the customer's experience with For Goodness Bakes' products and services. This output can be used to improve the company's products and services, and to identify areas where the company can enhance customer satisfaction and loyalty. Additionally, this information can be used to track customer satisfaction, identify customer needs and preferences, and improve the overall quality of the product and services. Output is any data that is generated from a process, such as a survey. Feedback on the customer's experience is a form of input for the company, as it provides valuable information that can be used to improve the company's products and services. By gathering feedback from customers, the company can identify any issues or concerns that customers may have with their products or services and make changes to address them. Additionally, feedback can help the company identify customer preferences and needs, which can inform future product development and marketing efforts. Overall, customer feedback is an important input for the company as it helps them understand how their products and services are perceived by the customers and make necessary adjustments.
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You expect to receive the annual property Net Operating Income (NOI) from a certain property as followsYear 1 $20,000 Year 2 $22,000 Year 3 $30,000 Year 4 $31,000 Year 5 $40,000 In addition, you expect that you can sell the property at the end of the 5th year for 10 times its expected NOI of that year.A. If your opportunity cost of capital (OCC) is 10%, 1) What is the Present Value of the Property Income over the 5 years? 2) What is the Present Value of the Net Sales Proceeds received in Year 5 3) What is the Total Present Value of the property given the 5 year holding period? 4) Ifyou offer to pay the amount you calculate in Ques A3) above to purchase the property, what would be your total return on the investment? 5) If you offer to pay the amount you calculate in Ques A3) to purchase the property, what do you forecast to be the appreciation in value on the property B. If you pay $350,000 for the property at Year 0, what is the net present value (NPV) of a deal? C. In the situation given in the previous question, what is the IRR?
Answer:
Year 1 Year 2 Year 3 Year 4 Year 5
1. Present value $18,180 $18,172 $22,530 $21,173 $24,840
2. Present value of the net sales proceeds = $248,400
3. Total present value of the property = $104,895
4. Total return on the investment = $143,505
5. Forecasted appreciation in value on the property = $295,105
5B. The net present value (NPV) of the deal, if you pay $350,000 at Year 0 = -$101,600
5C. The IRR, using the short-cut method, = 15%
Explanation:
a) Data and Calculations:
Opportunity cost of capital (OCC) = 10%
NOI at the end of the 5th year = $40,000
Selling price at the end of the 5th year = $400,000 ($40,000 * 10)
Year 1 Year 2 Year 3 Year 4 Year 5
Net Operating
Income (NOI) $20,000 $22,000 $30,000 $31,000 $40,000
Discount factor 0.909 0.826 0.751 0.683 0.621
1. Present value $18,180 $18,172 $22,530 $21,173 $24,840
2. Present value of the net sales proceeds = $248,400 ($400,000 * 0.621)
3. Total present value of the property = $104,895 ($18,180 + $18,172 + $22,530 + $21,173 + $24,840)
4. Total return on the investment = $143,505 ($248,400 - $104,895)
5. Forecasted appreciation in value on the property = $295,105 ($400,000 - $104,895)
5B. The net present value (NPV) of the deal, if you pay $350,000 at Year 0 = -$101,600 ($248,400 - $350,000)
5C. The IRR, using the short-cut method, = 15% (100%/5 * 75%)
Which of the following is NOT a step involved in creating a budget?
Gather financial records
O Track spending
O Expand earning avenues
Balance the budget
Answer:
expand earning avenues
Explanation:
Expand Earning Avenues is not a step involved in creating a budget. Hence, option C is appropriate.
What does it mean to Create a Budget?Creating a Budget is one of the most important things, which signifies that during a particular fiscal year or for a short time, a company, an institute, or something of much more importance does follow a certain type of Budget related behavior.
Creating a Budget is being done for a lot of things including the most important thing is to keep proper track of the proceedings which are being gone on.
Budget creation is done annually in the parliament to produce a lot of things on which the Government will run the country. The other most important factor is the process of combining the percentage of the money which is going to be spent.
Hence, option C is correct.
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5.6 Last month Quick Industries produced 900 units. This month they produced 1,264 units. What is the rate of change in production? a. 29.8% b. 32.8% c. 40.4% d. 60%
Answer: C. 40.4%
Explanation:
To find the rate of change in production, we can use the following formula:
Rate of change = (New value - Old value) / Old value * 100
Where,
Old value = Production of last month = 900
New value = Production of this month = 1264
Substituting the values in the formula,
Rate of change = (1264 - 900) / 900 * 100= 364 / 900 * 100= 0.404 * 100= 40.4%
Therefore, the rate of change in production is 40.4%, which is an option (c). I hope that this answer has helped you!
Answer:
The correct answer is C.
Explanation:
The rate of change in production is: (1264 - 900) / 900 = 0.404 or 40.4%. So, the correct answer is c. 40.4%
The most powerful of the five competitive forces is usually Group of answer choices the competitive pressures associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry. the competitive pressures that stem from the ready availability of attractively-priced substitute products. the benefits that emerge from close collaboration with suppliers and the competitive pressures that such collaboration creates. the competitive pressures associated with population demographics. the bargaining power and leverage that large customers are able to exercise.
Answer:
b
Explanation:
A small manufacturing firm produces one product. The budgeted sales for the month of January 2021
are for 10,000 units as a selling price of Sh. 2,000 per unit. Other details are as follows;
1. Two components of input are used in the production of one unit of output.
Component (Input) Number Unit cost of each component
X 5 20
W 3 10
2. Stocks at the beginning of the month are budgeted as follows;
4000 units of finished goods at a unit cost of sh. 1,050 per unit.
Component X: 16,000 units at a cost of Sh. 20.
Component W: 9,600 units at a cost of Sh. 10.
3. Production of each unit requires the following labour hours.
Department Hours per Unit Labour rate per hour
Production 4 100
Finishing 4 140
4. Factory overhead is absorbed into units cost on the basis of direct labour hours. The budgeted
factory overhead for the month is Sh. 1,920,000.
5.The administration, selling and distribution overhead for the month is budgeted at Sh.5,500,000.
6.The company plans a reduction of 50% in quantity of finished stock at the end of the month and
an increase of 30% in the quantity of each input component.
Required:
a)For the month of January 2021
i. Production quantity budget (3 marks)
ii. Materials quantity and purchase budget (4 marks)
iii. Direct Labor budget (3 marks)
b)The budgeted profit and loss account (5 marks)
Answer:a) Budgeted Production Quantity:Budgeted Sales = 10,000 unitsAdd: Desired Closing Stock = (10,000/2) = 5,000 unitsTotal Units Required = 15,000 unitsLess: Opening Stock = 4,000 unitsUnits to be produced = 11,000 unitsi. Production Quantity Budget = 11,000 unitsii. Materials Quantity and Purchase Budget:Component X:Units Required = (11,000 x 5) = 55,000 unitsAdd: Desired Closing Stock = (16,000 x 1.3) = 20,800 unitsTotal Units Required = 75,800 unitsLess: Opening Stock = 16,000 unitsUnits to be purchased = 59,800 unitsTotal Cost = (59,800 x 20) = Sh. 1,196,000Component W:Units Required = (11,000 x 3) = 33,000 unitsAdd: Desired Closing Stock = (9,600 x 1.3) = 12,480 unitsTotal Units Required = 45,480 unitsLess: Opening Stock = 9,600 unitsUnits to be purchased = 35,880 unitsTotal Cost = (35,880 x 10) = Sh. 358,800iii. Direct Labor Budget:Department Production Finishing Total
Hours 44,000 44,000 88,000
Rate 100 140
Total Cost = (44,000 x 100) + (44,000 x 140) = Sh. 15,840,000b) Budgeted Profit and Loss Account:Sales Revenue = (10,000 x 2,000) = Sh. 20,000,000Less: Cost of Goods Sold:Direct Materials = (1,196,000 + 358,800) = Sh. 1,554,800Direct Labor = Sh. 15,840,000Factory Overhead = Sh. 1,920,000Total Cost of Goods Sold = Sh. 19,314,800Gross Profit = (Sales Revenue - Cost of Goods Sold) = Sh. 685,200Less: Selling and Distribution Overhead = Sh. 5,500,000Net Loss = (Selling and Distribution Overhead - Gross Profit) = Sh. 4,814,800
Explanation: