Keener Incorporated had the following transactions occur involving current assets and current liabilities during February 2017.
Feb. 3 Accounts receivable of $14,000 are collected.
7 Equipment is purchased for $27,800 cash.
11 Paid $2,300 for a 3-year insurance policy.
14 Accounts payable of $12,500 are paid.
18 Cash dividends of $5,700 are declared.
Additional information:
1. As of February 1, 2017, current assets were $130,200, and current liabilities were $49,300.
2. As of February 1, 2017, current assets included $15,900 of inventory and $1,000 of prepaid expenses.
(a) Compute the current ratio as of the beginning of the month and after each transaction.
(b) Compute the acid-test ratio as of the beginning of the month and after each transaction
Round answers to 1 decimal place, e.g. 1.6.)
Current ratio Acid-test ratio
February 1 :1 :1
February 3 :1 :1
February 7 :1 :1
February 11 :1 :1
February 14 :1 :1
February 18 :1 :1
Answers
Answer: Please refer to Explanation
Explanation:
The Current Ratio is calculated by dividing the Current Assets by the Current Liabilities.
The Acid-Test Ratio on the other hand is calculated by removing the Inventory from the Current Assets and then dividing that figure by the Current Liabilities.
February 1.
Current Ratio = Current Assets/Current Liabilities
= 130,200/49,300
= 2.65
Acid-Test Ratio = (Current Asset – Inventory) / Current Liability
= (130,200-15,900) / 49,300
= 2.32
February 3
Accounts Receivables collected is Cash moving from The Receivables to the Cash account. Both of them are Current Assets so no change.
Current Ratio = 2.65
Acid -Test Ratio = 2.65
February 7
Cash reduces by $27,800
Current Ratio = (130,200-27,800) / 49,300
= 2.08
Acid-Test Ratio = (130,200-27,800 - 15,900) / 49,300
= 1.75
February 11
Paying for the Insurance in advance is considered a Prepayment. Prepayments are Current Assets so cash simply moved from cash account to Prepayment so no change in Current Assets so both ratios remain the same.
Current Ratio = 2.08
Acid-test Ratio = 1.75
February 14.
Accounts Payable being paid reduces the Current Liabilities. It also reduces the cash account so both Current Liabilities and Current Assets will be reduced.
Current Ratio = (130,200-27,800-12,500) / (49,300-12,500)
= 89,900 / 36,800
= 2.44
Acid-Test Ratio = (130,200 - 27,800 - 15,900 - 12,500) / (49,300-12,500)
= 74,000/36,800
= 2.01
February 18
When Dividends are declared but not paid, there is no effect on the cash account. However, because they have been declared, they become a liability. This therefore increases the current Liability account.
Current Ratio = 89,900 / (36,800 + 5,700)
= 2.12
Acid Test Ratio = 74,000 / (36,800 + 5,700)
= 1.74
Related Questions
In your own understanding what is credit collection policy?
Answers
Answer:
A credit collections policy is a document that includes “clear, written guidelines that set the terms and conditions for supplying goods on credit, customer qualification criteria, procedure for making collections, and steps to be taken in case of customer delinquency”.Answer:
a document that includes “clear, written guidelines that set the terms and conditions for supplying goods on credit
Explanation:
the importance of business administration in the workplace
Answers
Answer:
A degree in business administration can help you develop leadership skills. ... Not only do you learn the fundamentals of business including finance, operations, human resources, marketing, and management, but you learn how to lead and motivate people, communicate effectively, and think critically.
Explanation:
How does finance and insurance affect in our global economy?
Answers
The ways that finance and insurance affect our global economy include:
Capital allocationRisk managementHow can finance and insurance affect the economy ?Finance plays a crucial role in allocating capital to its most productive uses. Through the provision of financial services such as banking, investment, and asset management, finance channels funds from savers to investors, supporting economic growth and development.
Insurance plays a vital role in managing risk and protecting individuals and businesses from potential losses. By spreading risk among a large pool of insured individuals or companies, insurance enables businesses to invest and take on new opportunities with greater confidence, contributing to economic growth and stability.
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Part A
Step 1 Starting at MIDNIGHT, (12:01am) ending 3 days later (72hr) at MIDNIGHT (11:59pm) You can start any day of the week, upto Sat Mar 04.
For a minimum of 3 consecutive days monitor the time you spend doing the 8 different activities listed below
NOTE: Avoid using weekends only in your monitoring and try to stay with mid-week,
e.g. Tues, Wed, Thurs, where majority of days are mid-week.
Use the attached time sheets to record blocks of time. Round off to the nearest hour. Precision isn’t the goal. e.g. 2hrs and 20 minutes, would be rounded down to 2 hours. 2 hrs and 30 minutes would be rounded up to 3 hrs.
The full 24 hours of each day must be accounted for.
The following 8 categories are recommended to cover the majority of possible activities one might perform in the course of a day.
Sleep
Personal maintenance (showers, laundry, housecleaning, grocery shopping, family requirements etc.)
Travel (to work, to school, or for appointments)
Work hours (total hours at the workplace, excluding lunch or breaks)
School (total hours in classes, plus time spent, studying, re-writing notes, completing assignments, time on blackboard)
Fitness (formal or informal, attending the gym or walking home from work)
Recreation (other than fitness related, TV, Movies, Leisure reading, online shopping, crafts, Video games, children’s sports activities, dates, coffee meet ups)
Volunteer activities (United Way, Big Brothers/Sisters, your religious institution activities, PTA with schools)
Three day's activities
Time day day day
Activities Activities Activities
12:01-
1:00am
1:00am-
2:00am
2:00am-
3:00am
3:00am-
4:00am
4:00am
5:00am
5:00am-
6:00am
6:00am=
7:00am
7:00am-
8:00am
8:00am-
9:00am
9:00am-
10:00am
10:00am
11:00am
11:00am-
12:00pm
12:00pm
1:00pm
1:00pm-
2:00pm
2:00pm-
13:00pm
3:00pm-
4:00pm
4:00pm-
5:00pm
5:00pm-
6:00pm
6:00pm-
7:00pm
17:00pm-
8:00pm
8:00pm-
9:00pm
9:00pm-
10:00pm
10 00pm
11:00pm
11:00pm-
11:59pm
Answers
Here is an example of a three-day activity log:
The Activity LogDay 1:
Time Sleep Personal Travel Work School Fitness Recreation Volunteer
12:01-1:00 1
1:00-2:00 1
2:00-3:00 1
3:00-4:00 1
4:00-5:00 1
5:00-6:00 1 1
6:00-7:00 1 1
7:00-8:00 1 1
8:00-9:00 1 1
9:00-10:00 1 1
10:00-11:00 1 1
11:00-12:00 1 1
12:00-1:00 1
1:00-2:00 1
2:00-3:00 1
Day 2:
Time Sleep Personal Travel Work School Fitness Recreation Volunteer
12:01-1:00 1
1:00-2:00 1
2:00-3:00 1
3:00-4:00 1
4:00-5:00 1
5:00-6:00 1 1
6:00-7:00 1 1
7:00-8:00 1 1
8:00-9:00 1 1
9:00-10:00 1 1
10:00-11:00 1 1
11:00-12:00 1 1
12:00-1:00 1
1:00-2:00 1
2:00-3:00 1
Day 3:
Time Sleep Personal Travel Work School Fitness Recreation Volunteer
12:01-1:00 1
1:00-2:00 1
2:00-3:00 1
3:00-4:00 1
4:00-5:00 1
5:00-6:00 1 1
6:00-7:00 1 1
7:00-8:00 1 1
8:00-9:00 1 1
9:00-10:00 1 1
10:00-11:00 1 1
11:00-12:00 1 1
12:00-1:00 1
1:00-2:00 1
2:00-3:00 1
Note: The actual activities and time allocation would depend on the individual's personal and work life. This is just an example to illustrate how the log can be filled out.
It's important to be honest and accurate while filling out the log to get the most benefit from it.
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During the staff meeting, the performance of BJ is discussed. BJ works hard but received a poor customer rating, and the manager is told to “figure it out” or fire BJ. Which of the following would be the best approach to try to improve BJ’s performance?
Answers
Answer:
BJ
Explanation:
Hi is the hard worker
so, he is the best
Providing him with 360-degree feedback from customers, co-workers and managers to give him insight into how his behavior is perceived will help improve his performance.
What is a 360-degree feedback?A 360-degree feedback refers to a process that allows employees to receive feedback from the people who work around them.
In conclusion, the feedback will let him know how to improve on his work performance.
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calculate the amount of budgeted selling and administrative expenses for february. xing, inc. has prepared the operating budget for the first quarter of the yeqra. The company forecast sales of 40000 in january, 50000 in february, and 60000 in march. variable and fixed expenses are as follows
Answers
The amount Xing, Inc. budgeted for selling and administrative expenses for February is C. $35,700.
What are the selling and administrative expenses?The selling and administrative expenses include all the variable and fixed costs incurred for the following:
SalariesRentDepreciationPower costMiscellaneous expenses.To determine the total selling and administrative expenses, we first determine the total fixed costs per month and the variable costs.
The variable costs are a function of the budgeted sales for each month since a percentage of the sales have been identified as variable costs for power costs and miscellaneous expenses.
January February March
Budgeted sales $40,000 $50,000 $60,000
Variable costs:
Power cost $12,000 $15,000 $18,000
Miscellaneous 2,000 2,500 3,000
Total variable cost $14,000 $17,500 $21,000
Total fixed expenses per month = $18,200
Selling and administrative expenses for February = $35,700 ($17,500 + $18,200).
Thus, for February, Xing forecast to spend C. $35,700 on sales and administration, which may be more or less than the actual expenses for the month.
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Question Completion:Variable and fixed expenses are as follows:
Variable Expenses: Power cost (30% of sales)
Miscellaneous expenses: (5% of sales)
Fixed Expenses:
Salaries expense: $10,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,400 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1,000 per month
Using the information above, calculate the amount of selling and administrative expenses for the month of February.
A. $32,200
B. $32,200
C. $35,700
D. $14,000
Suppose Stark Ltd. just issued a dividend of $1.59 per share on its common stock. The company paid dividends of $1.25, $1.33, $1.40, and $1.51 per share in the last four years. a. If the stock currently sells for $40, what is your best estimate of the company’s cost of equity capital using the arithmetic average growth rate in dividends? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. What if you use the geometric average growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answers
Answer:
The answer is below
Explanation:
a) The dividend growth rate is given as D2/D1 - 1
Year Dividend Growth rate
1 $1.25
2 $1.33 ($1.33/ $1.25 - 1) 6.4%
3 $1.4 ($1.4/$1.33 - 1) 5.26%
4 $1.51 ($1.51/$1.4 -1) 7.86%
The arithmetic average growth rate is the average of all the growth rates.
Arithmetic average growth rate = (6.4% + 5.26% + 7.86%) / 3 = 6.51%
The cost of annuity = (cost of common stock / Selling stock price) * 100% + Average growth rate
The cost of annuity = ($1.59 / $40) * 100% + 6.51% = 10.49%
b) The geometric growth rate is given as:
geometric average growth rate =
\((\frac{D_n}{D_o} )^{\frac{1}{n} }-1\\D_n=1.51,D_o=1.25,n=3\\\\Geometric\ growth\ rate=\frac{1.51}{1.25}^{1/3}-1=6.5\%\)
The cost of annuity = ($1.59 / $40) * 100% + 6.5% = 10.48%
CHAPTER 8, TEST A
True or False
Mark statements 1-24 true or false by writing Tor F on the line provided.
1.
All four types of market structure have similarities, including the fact that each of them has
buyers and sellers.
2. In a perfectly competitive market, buyers and sellers have relevant information about prices,
product quality, and sources of supply.
3. The stock market is an example of a perfectly competitive market.
4. If a perfectly competitive market doesn't satisfy all four characteristics 100 percent, then it isn't
a perfectly competitive market.
5.
Profit attracts new firms into the perfectly competitive market.
6.
There is ease of entry into a monopolistic market.
7. It is important to a monopolist to search out the best price through trial and error.
8. In some towns, cable television providers and trash collectors are monopolists
9. A pharmaceutical company may have a copyright on a medicine, which protects its company
from competitors for a period of time.
10. A patent is granted for a new product or process for five years.
11. Barriers to entry limit potential competition.
12. Owning all of a scarce resource can allow a firm to operate as a monopoly without legal
protection.
13. Antitrust laws are meant to control monopoly power and to promote competition.
14. The main points of the Sherman Act prohibit actions that result in restraint of trade and hold
the conspiring persons guilty of a misdemeanor.
15. A natural monopoly exists when a firm's product is made with resources provided by nature.
16. The U.S. Supreme Court decides some antitrust cases.
17. The term colluding refers to making secret agreements that reduce competition.
18. Taxi and limousine service in New York City is relatively inexpensive due to the ease of entry
into that market.
Answers
The marking of the statements 1-18 as true or false is as follows:
1. True. The main similarity among the four market structures is the existence of buyers and sellers.
What are the four market structures?The four market structures are:
Perfect competitionMonopolistic competitionOligopolyMonopoly.They all have buyers and sellers, though, the number differs from one to the other.
2. True. In a perfectly competitive market, buyers and sellers have relevant information about prices, product quality, and sources of supply.
3. True. The stock market is an example of a perfectly competitive market.
4. True. If a perfectly competitive market doesn't satisfy all four characteristics 100 percent, then it is not a perfectly competitive market.
5. True. Profit attracts new firms into the perfectly competitive market.
6. False because there is no ease of entry into a monopolistic market.
7. False. It is not important to a monopolist to search out the best price through trial and error.
8. True. In some towns, cable television providers and trash collectors are monopolists.
9. False. Copyright is not required on medicine to protect a pharmaceutical company from competitors. But a patent is required because copyrights are for intellectual property rights.
10. False. Patents are usually granted for 20 years and not five years.
11. True. Barriers to entry limit potential competition.
12. True. Owning all of a scarce resource can allow a firm to operate as a monopoly without legal protection. This is regarded as a natural monopoly.
13. True. Antitrust laws are meant to control monopoly power and promote competition.
14. True. The Sherman Act prohibits anti-trust actions, which restrain trade.
15. True. A natural monopoly exists when a firm's product is made with resources provided by nature.
16. True. The U.S. Supreme Court decides some antitrust cases.
17. True. The term colluding refers to making secret agreements that reduce competition.
18. True. Taxi and limousine service in New York City is relatively inexpensive due to the ease of entry into that market.
Thus, the marking of statements 1-18 as true or false is completed.
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questions
Online Content: Site 1
Why might it be easier to open an account with a bank than a credit union?
Answers
The valuation of the cat food business is based on cash flows of $180,500 per year over a five year period. The target business has the same risk as the firm’s overall operations. The cost of equity is 15 percent and the cost of debt is 3 percent on an after-tax basis. The firm’s capital structure consists of 10 million in equity and 8 million in debt.
What is the most the pet-food manufacturer should pay for acquiring the cat food business per its required return (WACC)?
Answers
Answer: $690,044
Explanation:
First calculate WACC.
Total capital = 10 + 8 = $18 million
WACC = (Weight of debt * after-tax cost of debt) + (weight of equity * cost of equity)
= (8/18 * 3%) + (10/18 * 15%)
= 9.67%
Using the WACC, find the present value of the cashflows for the next 5 years. This will be an annuity.
= 180,500 * (1 - (1 + r) ^-n)/r
= 180,500 * ( 1 - ( 1 + 9.67%) ^ -5)/9.67%
= $690,044.67
= $690,044
They should pay no more than this present value.
Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.
Date Transactions Units Unit Cost Total Cost
October 1 Beginning inventory 6 $ 790 $ 4,740
October 4 Sale 4
October 10 Purchase 5 800 4,000
October 13 Sale 3
October 20 Purchase 4 810 3,240
October 28 Sale 7
October 30 Purchase 8 820 6,560
$ 18,540
3. Using LIFO, calculate ending inventory and cost of goods sold at October 31
Answers
The cost of goods sold (COGS) was $17,260, and the ending inventory was $3,160 using the LIFO method.
The LIFO method (last-in, first-out) of inventory valuation requires that the most recent purchases of inventory be used first in the cost of products sold and ending inventory calculations. The ending inventory and cost of products sold at the end of October will be calculated using the LIFO method, based on the data given in the table.Based on the data given, the total units sold is 14, and the total units purchased is 17. Here's how to calculate the ending inventory and cost of products sold using the LIFO method:Step 1: The last purchase of 8 units at a cost of $820 each on October 30 is deducted from the inventory count, leaving 9 units.Step 2: The previous purchase of 4 units at a cost of $810 each on October 20 is deducted from the inventory count, leaving 5 units.Step 3: The next purchase of 5 units at a cost of $800 each on October 10 is deducted from the inventory count, leaving 0 units.Step 4: Based on the LIFO method, the cost of the ending inventory is the sum of the cost of the oldest units remaining in stock, which is 4 units at a cost of $790 each on October 1, totaling $3,160.Step 5: Based on the LIFO method, the cost of goods sold (COGS) is calculated by adding the total cost of units sold, which is 14 units at a cost of $820 each on October 30, 4 units at a cost of $810 each on October 20, and 5 units at a cost of $800 each on October 10, totaling $17,260.Therefore, the cost of goods sold (COGS) was $17,260, and the ending inventory was $3,160 using the LIFO method.For more questions on cost of goods sold (COGS)
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In _____, products are made according to customer specifications.
Answers
Many other nations are now ahead of the U.S. in international education rankings. Based on most recent studies, the researchers ranked the U.S. number 25 in reading and science, number 40 in math. The decline in performance of American students is obvious from grades 4 to 12 comparing to their peers in other countries. A movement to a higher grade level is associated with a greater decline. And this is along with a great spending on education. What is going wrong here?
We all know that improving the education quality helps achieve a variety of economic and social development goals on different levels. In your opinion how can we improve the quality of schooling?
Answers
One way to improve the education of children and young people is to invest more in research because this activity allows individuals to develop some essential life skills and enrich their knowledge in different fields.
What is the investigation?Research is a term that refers to an activity in which creativity and different techniques for gathering and analyzing information are integrated with the aim of increasing knowledge on a specific topic.
How does research contribute to education?Education and research have a very important relationship because both are related to the development of new knowledge. Therefore, governments and educational institutions have focused on developing the research potential of their students with the aim of making them better professionals.
Additionally, this has a positive impact on academic competition among students and the development of a country through its industry.
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c) “Shadow price is the increase in value created by having one additional unit of a limiting resource at original cost”. Provide a comprehensive real world example of where a shadow price can be calculated with multiple limiting factors and with more than one product. Your answer should be in a form of a short case study roughly 4 or 5 sentences. (5 marks)
Answers
A real world example of shadow pricing would be in a case where a manufacturer produces two product A and B with 2 input such as raw materials and labor.
How is this so?Two products (A & B) are produced through the use of two primary resources: labor & raw materials. To produce one unit of product A, we require roughly an hour's worth (60 minutes) of work time from our available pool.
Also, approximately two pounds worth of our current stockpile must be incorporated into each instance as well. Comparatively speaking, producing one unit from group B takes almost three times that much effort (3 hours' time), but only requires about half as much by weight (a single pound).
Our maximum allowance stands at exactly 60 work-hours across all levels plus another hundred pounds maximum in terms concerning these earthly elements - with that established pricing amounts to a flat rate where five dollars buys us one metric pound whereas ten dollars goes towards hourly wages; so what is their shadow price?
When dealing with limited input availability, the optimal allocation of resources and production process optimization can be achieved using shadow prices. In this regard, it has been determined that labor's shadow price stands at $10 per hour while the shadow price for raw materials is set at $5 per pound.
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Iris is in an interview and misses a part of a question posed by the interviewer. What should her next step be?
A.
ask the interviewer to please repeat the question
B.
improvise an answer based on what she thinks was asked
C.
just give one of her prepared answers to other questions
D.
make sure she’s sitting up straight and making eye contact
Answers
Answer:
A.) ask the interviewer to please repeat the question
Explanation:
I think that this would be the best answer. Improvising could result in the interviewee talking about a topic that wasn't even mentioned, which could give off the impression that they don't have your full attention. The same goes for using a prepared answer to one of the other questions because as I mentioned it may not be related to the question that was initially asked. Lastly, while sitting up straight and keeping eye contact is important, she still missed part of the question that was asked.
Jordan Sports Inc. has labor costs and overhead totaling $2.2 million during a given period. The company purchased $10.3 million of materials during the period and used $9.7 million of this amount. What is the amount of total manufacturing cost for the period?
Answers
If the company has labor costs and overhead totaling $2.2 million during a given period. The company purchased $10.3 million of materials during the period and used $9.7 million of this amount. The amount of total manufacturing cost for the period is: $11.9 million
How to determine the total manufacturing cost?Using this formula to find the total manufacturing cost for the period
Total manufacturing cost = Labor cost and overhead cost + Material used
Where:
Labor cost and overhead cost = $2.2 million
Material used = $9.7 million
Let plug in the formula
Total manufacturing cost = $2.2 million + $9.7 million
Total manufacturing cost = $11.9 million
Therefore we can conclude that the total manufacturing cost is the amount of $11.9 million.
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Write the quadratic equation in standard form that corresponds to the graph shown below.
Answers
The quadratic equation of the graph in standard form is y = x² + 2x - 8
What is a quadratic equation in standard form?A quadratic equation in standard form is given by y = ax² + bx + c
Given the graph below, to write the quadratic equation for the graph in s tandard form, we notice that the graph has two x - intercepts at
(-4, 0) and(2, 0)The x - intercepts are the roots of the quadratic equation.
So, we have that
x = -4 andx = 2So,
x + 4 = 0 andx - 2 = 0So, the factors of the quadratic equation are
x + 4 andx - 2So, multiplying the factors, we have that the equation is
y = (x + 4)(x - 2)
= x² - 2x + 4x + 4 × (-2)
= x² - 2x + 4x - 8
= x² + 2x - 8
So, the quadratic equation is y = x² + 2x - 8
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write and define the following the classification of receivable
Answers
Accounts receivable can be classified in different ways, depending on various criteria. Some common ways to classify accounts receivable include .
Define the following the classification of receivable ?Trade and non-trade receivables: Trade receivables are amounts owed to a company by its customers for the sale of goods or services. Non-trade receivables are amounts owed to a company by other parties, such as employees, tax authorities, or insurance companies.
Current and non-current receivables: Current receivables are amounts that are expected to be collected within one year, while non-current receivables are amounts that are expected to be collected beyond one year.
Secured and unsecured receivables: Secured receivables are backed by collateral, such as property or inventory, while unsecured receivables are not.
Factored and non-factored receivables: Factored receivables are those that a company sells to a third party, known as a factor, in exchange for cash. Non-factored receivables are those that a company keeps on its balance sheet and collects directly from its customers.
Gross and net receivables: Gross receivables are the total amounts owed to a company by its customers, while net receivables are the amounts owed to a company after deducting allowances for bad debts or other adjustments.
Past due receivables: These are accounts receivable that are not paid within the payment terms agreed with the customer. Generally, receivables that remain unpaid for a specified number of days are considered past due.
Overall, classifying accounts receivable can help a company better understand its outstanding balances and identify areas where it may need to improve its collection efforts.
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Precision Systems manufactures CD burners and currently sells 18,500 units annually to producers of laptop computers. Jay Wilson, president of the company, anticipates a 15 percent increase in the cost per unit of direct labor on January 1 of next year. He expects all other costs and expenses to remain unchanged. Wilson has asked you to assist him in developing the information he needs to formulate a reasonable product strategy for next year.
You are satisfied that volume is the primary factor affecting costs and expenses and have separated the semivariable costs into their fixed and variable segments. Beginning and ending inventories remain at a level of 1,000 units. Current plant capacity is 20,000 units. The following are the current-year data assembled for your analysis.
Sales price per unit $100
Variable costs per unit:
Direct materials $10
Direct labor $20
Manufacturing overhead and selling and administrative expenses 30 60
Contribution margin per unit (40%) $40
Fixed costs $390,000
Required:
a. What increase in the selling price is necessary to cover the 15 percent increase in direct labor cost and still maintain the current contribution margin ratio of 40 percent?
b. How many units must be sold to maintain the current operating income of $350,000 if the sales price remains at $100 and the 15 percent wage increase goes into effect?
c. Wilson believes that an additional $700,000 of machinery (to be depreciated at 20 percent annually) will increase present capacity (20,000 units) by 25 percent. If all units produced can be sold at the present price of $100 per unit and the wage increase goes into effect, how would the estimated operating income before capacity is increased compare with the estimated operating income after capacity is increased? Prepare schedules of estimated operating income at full capacity before and after the expansion.
Answers
a. An increase of $20 per unit is necessary to cover the 15 percent increase in direct labor cost and maintain the desired contribution margin ratio.
b.The fixed costs and desired operating income remain the same, so the contribution margin per unit of $40 is used. The required sales volume is 18,500 units.
c. The estimated operating income after capacity expansion can be determined by increasing the production and sales volume by 25 percent, i.e., 23,125 units
a. To maintain the current contribution margin ratio of 40 percent, the selling price per unit needs to be increased by 20 percent [(15 percent wage increase) / (current contribution margin ratio)].
Therefore, an increase of $20 per unit is necessary to cover the 15 percent increase in direct labor cost and maintain the desired contribution margin ratio.
b. To maintain the current operating income of $350,000, the number of units that must be sold can be calculated using the contribution margin ratio.
The fixed costs and desired operating income remain the same, so the contribution margin per unit of $40 is used. The formula for calculating the required sales volume is:
(Number of units) = (Fixed costs + Desired operating income) / Contribution margin per unit
Plugging in the values, we have:
(Number of units) = ($390,000 + $350,000) / $40 = 18,500 units
c. Before the capacity expansion, the estimated operating income can be calculated using the current production and sales volume of 18,500 units.
The estimated operating income after capacity expansion can be determined by increasing the production and sales volume by 25 percent, i.e., 23,125 units.
The schedules of estimated operating income at full capacity before and after the expansion can be prepared by multiplying the respective sales volumes with the contribution margin per unit and subtracting the fixed costs and the wage increase.
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Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.40 per card, and the cost of printing is $0.10 per card. The company receives $3.75 per card sold. Since the cards have the current year printed on them, unsold cards have no salvage value. Their customers are from the four areas: Los Angeles, Santa Monica, Hollywood, and Pasadena. Based on past data, the number of customers from each of the four regions is normally distributed with mean 2,300 and standard deviation 200. (Assume these four are independent.)
What is the optimal production quantity for the card?
Answers
Answer:
≈ 9644 quantity of card
Explanation:
given data:
n = 4 regions/areas
mean demand = 2300
standard deviation = 200
cost of card (c) = $0.5
selling price (p) = $3.75
salvage value of card ( v ) = $ 0
The optimal production quantity for the card can be calculated using this formula below
= u + z (0.8667 ) * б
= 9200 + 1.110926 * 400
≈ 9644 quantity of card
First we have to find u
u = n * mean demand
= 4 * 2300 = 9200
next we find the value of Z
Z = ( \(\frac{p-c}{p-v}\) )
= ( 3.75 - 0.5 ) / 3.75 = 0.8667
Z( 0.8667 ) = 1.110926 ( using excel formula : NORMSINV (0.8667 )
next we find б
б = 200\(\sqrt{n}\) = 400
Using the appropriate tool from the Accountant Tools menu, which 4 of the following can be batch reclassified in QuickBooks Online Accountant?
Answers
Using the appropriate tool from the Accountant Tools menu, the 4 options that can be batch reclassified in QuickBooks Online Accountant are options A, B, C and F:
ClassesCustomersProducts and ServicesAccountWhat is QuickBooks Online Accountant?In the above question, too batch reclassify these items, you can use the "Batch Reclassify Transactions" tool, which can be found under the Accountant Tools menu.
This tool allows you to select multiple transactions and reclassify them to a different account, class, customer, or product/service.
Therefore, Locations, tax codes, and suppliers cannot be batch reclassified using this tool. However, you can edit individual transactions to change their location, tax code, or supplier if necessary.
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See full question below
Using the appropriate tool from the Accountant Tools menu, which 4 of the following can be batch reclassified in QuickBooks Online Accountant?
Classes
Customers
Products and Services
Locations
Tax Code
Account
Suppliers
Which career requires LESS education than an Auditor?
a) Accountant
b) Bookkeeper
c) Credit Analyst
d) Financial Manager
Answers
What’s the best way to find the load capacity of a crane?
Answers
The load capacity of a crane can be found by checking the load chart, calculating the effective load, calculating the capacity at the working radius, and checking the stability of the crane.
The load capacity of a crane refers to the maximum weight that it can lift and transport safely without any damage to the crane. The maximum load capacity of a crane is determined by its design and other specifications. The best way to find the load capacity of a crane is by checking the manufacturer's load charts and calculating the effective load that the crane can lift in various positions and operating conditions. Below are the steps to find the load capacity of a crane.
Step 1: Check the load chartThe load chart provides information about the crane's capacity in various conditions and configurations. It shows the maximum weight that can be lifted at different radii and boom lengths. The load chart also indicates the crane's stability in different positions. The load chart should be specific to the crane's model, and it should be available from the manufacturer or the crane supplier.
Step 2: Calculate the effective loadThe effective load is the weight of the load plus any rigging gear, such as slings, shackles, and hooks. The effective load should be calculated for every lift to ensure that the crane is not overloaded. The effective load is calculated by adding the weight of the load to the weight of the rigging gear. The weight of the rigging gear should be included in the load chart or specified by the manufacturer.
Step 3: Calculate the capacity at the working radiusThe working radius is the distance from the center of rotation of the crane to the center of gravity of the load. The capacity of the crane is affected by the working radius. The closer the load is to the crane, the higher the capacity. The capacity at the working radius is calculated by multiplying the effective load by the load radius factor, which is provided in the load chart. The load radius factor takes into account the boom length, the angle of the boom, and the crane's capacity. It varies for different radii and boom lengths.
Step 4: Check the stability of the craneThe stability of the crane should be checked to ensure that it can lift the load safely without tipping over. The crane's stability depends on the configuration, the location of the load, and the position of the crane. The load chart provides information about the crane's stability in different positions and configurations. If the crane is unstable, the load should be repositioned or a more stable crane should be used.
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Which of the following statement is TRUE?
(1 Point)
Developmental programs improve conceptual skills of managers for the future job.
Training programs improve conceptual skills of nonmanagers for the future job.
Developmental programs improve technical skills of nonmanagers for the current job.
Training programs improve technical skills of mangers for the current job.
Answers
'Developmental programs improve conceptual skills of managers for the future job' is true. The right answer is a.
The goals and content of training and development are different from one another. While "development" refers to a long-term method through which managerial personnel understand conceptual and theoretical knowledge for broad reasons, "training" is a short-term process through which non-managerial personnel acquire technical knowledge and skills for a specific purpose.
Development covers the process through which managers and executives build capacity for both future managing roles as well as skills and competence for their current ones.
The correct answer is option a.
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Should medical schools be free?
Answers
Answer:It depends
Explanation: Medical schools can't be free so that the quality is not lowered. It can be subsidized except if there is a reliable funding in place.
A sentence that contains one independent clause and one or more dependent clauses is a
Answers
Answer:
Complex sentence they always have one independent clause + 1 or more dependant clause
Joined by using conjunctions!
HELP
Which of the following is not true of how you should give directions to a visitor or guest?
You should create a mental picture of the entire route in your mind and picture yourself walking or driving it along with the guest.
You should give a travel time estimate for the whole trip from start to finish instead of from landmark to landmark, since that gets confusing.
You should give your guest the simplest route, not the quickest, because you don't want them to get lost along the way.
You should ask the customer to repeat the directions back to you so you can make sure they have understood them properly.
Answers
Answer:
The statement "You should give your guest the simplest route, not the quickest, because you don't want them to get lost along the way." is not true. It is usually best to give the quickest route to the destination, as long as it is not too complicated or confusing. It is important to provide clear and concise directions to help the guest arrive at their destination efficiently and without getting lost. However, if the quickest route is very complicated or difficult to follow, it may be more helpful to provide a simpler route that is easier for the guest to understand and follow. Asking the guest to repeat the directions back to you can also be a helpful way to ensure that they have understood the directions properly.
Explanation:
15. The owners of a small bar and grill want to run an ad on local radio in the town where the business is located. Their objective is to create awareness for the restaurant among the town’s consumers. Which measure should be used to determine how many different people will hear the advertisement?
Answers
Even though a salesperson is rarely responsible for installation, which of the following is a reason for him or her to be present when the products sold to a customer are being installed?
Answers
The reason for him or her to be present when the products sold to a customer are being installed is: c. To sell additional products to the customer.
A salesperson is the person who is responsible for marketing company products by using his or her sales skill to convince the customer to buy the products and to sell to customers.
The reason why the salesperson needs to be present is for the salesperson to sell more products or advertise more products to the customer.
Because the customer may want to purchase more products or additional products from the company.
Inconclusion the reason for him or her to be present when the products sold to a customer are being installed is: c. To sell additional products to the customer.
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Homeowners insurance gives you both property and liability protection.
Answers
Answer:
True
Explanation:
If you have drunk friends you want this insurance.
True. Homeowners insurance provides both property and liability protection.
What is property protection?The property protection aspect of homeowners insurance covers the physical structure of the home, as well as personal belongings within the home, against perils such as fire, theft, and vandalism.
It may also provide coverage for additional structures on the property, such as garages or sheds. Liability protection, on the other hand, safeguards homeowners from legal and financial responsibility if someone is injured on their property or if they accidentally cause damage to someone else's property.
This coverage typically includes legal expenses and medical payments to the injured party.
The answer is true.
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