Answer:
Amount that can be withdrawn each month:
$6,342.06
Nominal dollar amount of last withdrawal:
$54,835.61
Explanation:
These look to be the correct answers, let me know if you would like for me to show my work!
Based on this income statement for Company XYZ for the year ending December 31, 2014, what adjustment would need to be made to Net Income to account for Gain or Loss in calculating cash flow from Operating Activities using the indirect method
Answer:
a) Adjustment of (16,000) in the operating section.
Explanation:
While preparing the operating activities section of the cash flow statement, the net income, depreciation expense, amortization expense, loss on sale of an asset should be added and the profit on sale should be deducted
So there is the loss of $30,000 that should be added and the gain on sale should be deducted i.e. $46,000
So there is an adjustment of -$16,000 in the operating activities section
Hope it helps you!
-miraculousfanx-
theo anh chị quan điểm về bán hàng hiện nay và trước kia khác nhau như thế nào
Explanation:
Trả lời ngắn gọn thôi nhe ^^
Bán hàng trước kia (mình đang chọn thời điểm trước khi có công nghệ, trước khi có mạng internet nha) thì sẽ bị hạn chế rất nhiều (thời gian, giao tiếp, v.v) so với bán hàng thời điểm hiện tại (Dẫn chứng: hiện tại có thể giao bán rất đơn giản qua việc livestream và ship trong khi trước kia thì việc giao bán hàng rất khó khăn..)
Thời điểm hiện tại có rất nhiều "cách" bán hàng khác nhau so với trước kia: đa cấp, online, ...
Bạn có thể tham khảo các trang khác nữa nhưng brainly ko cho mk đưa web lên mk rất xin lỗi ;-;
(Bạn có thể tra "kinh doanh hiện đại khác trước kia như thế nào" hoặc "bán hàng hiện nay và trước kia khác nhau như thế nào" thì sẽ nhận được khá nhiều trang hữu dụng nha)
<3 Chúc bạn có 1 ngày tốt lành nha!!
At a specific point on the demand curve for backpacks, the elasticity of demand is calculated to be -1.6.
a. At that point, we would describe demand as ________.
b. If the price of backpacks fell by 10%, the quantity demanded would rise by ________and revenue for the backpack industry would ______ .
c. If the price of backpacks rose by 20% the quantity demanded would fall by _______ and revenue for the backpack industry would ________.
Answer:
elastic
16%
32%
decrease
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
Emily and Betsey are economists. Emily thinks that the wealthiest 10 percent of the U.S. population should be taxed a rate higher than the rest of society because they can better afford it. Betsey thinks that everyone should be taxed at the same rate because that is the fairest scenario and the wealthy should not be penalized for their success. In this example, Emily and Betsey:______
Answer: b. have different normative views about tax policy.
Explanation:
Economists follow different theories and principles on how the world should be so most times they will disagree with each other on key issues such as taxation and government intervention in markets.
Emily and Betsy both believe in different taxation policies which means that they have different views on how people should be taxed in an economy with one of them believing in a proportional tax regime (Betsey) and the other believing in a progressive tax regime (Emily).
A company has 1000000 shares outstanding trading at $15 a piece. Managers believe that the discount rate appropriate for the risk borne is 15% and total cash flows, expected to be $1 million next year, will rise by 5% per year indefinitely. Discuss a strategy that is beneficial to the current shareholders.
Answer:
Explanation:
Knowing the value of the equity and establishing the intrinsic worth of the share may help you develop a perfect strategy that will benefit the current shareholders.
Value of the equity = Cashflow÷(discount rate - growth rate)
= $1,000,000 ÷ (15%-5%)
= $1,000,000 ÷ (10%)
= $10,000,000
Intrinsic value per share = Value of the equity ÷ Shares outstanding
= $10,000,000 ÷ 1,000,000
= $10
For the share, The intrinsic value = $10
However, since the current trading share price is $15, then we can posit that the share price is over-valued.
As a result, the perfect strategy that will be beneficial to the shareholders is for the current shareholders to sell the shares (short selling at a high price and purchasing at a low price).
Characteristics of entertaining media messages according to Bosshart and Marconi include psychological relaxation, stimulation, fun, challenges, dialogue, and joy.
a. True
b. False
Answer:
FALSE
Explanation:
As you move from job shop towards continuous process: A. Your capital intensity decreases B. Your volume decreases C. Your customization ability decreases D. Your throughput decreases E. None of the above
Answer: C. Your customization ability decreases.
Explanation:
Job Shops are able to customize products and services because they manufacture products on a small scale and usually for individual job orders whereas continuous processing is more large scale and the products are more homogeneous.
As one move from a job shop to a continuous process, they will find that they would be unable to customize products as much as they could before because they would be producing a higher volume of goods and so would not have the time to be customizing the products as much.
Austen, the night shift manager of a 24-hour convenience store, would regularly drive his car to the back door, unlock it, and load in a couple of cases of beer, every night. These cases of beer were marked down for no apparent reason, and Austen paid the reduced price. Is Austen setting a good example for his employees
Answer:
bro
Explanation:
U.S. businesspeople are often accused of ethnocentricity. This means that
Answer:
brainllest if right
This means that they are very superior or in a higher rank than others.
Explanation:
An important difference between a perfectly competitive firm and a monopolist is
Answer:
I don't know because I am in class 6
Select all statements that correctly describe business rules.
A. Some business rules allow the designer to understand the nature, role, and scope of the data.
B. Business rules define all applicable database constraints, no matter how detailed the constraint is.
C. Some business rules act as a communications tool between users and designers.
D. Some business rules help standardize an organization's view of data.
E. Business rules are by definition valid for all data for all time, so they are well suited for database design.
Answer:
The correct options are A, C, and D.
Explanation:
Business rules are helpful to all types of organizations, as they classify an organization's objective, they are a guide that specifies the running of business everyday activities as they clearly show every detail. Business rules provide the best approach to business operations. Business rules allow the designer to know the scope of the data, as the designer would get to know the data stored in the database. From the question above, It is also true that some business rules act as a communications tool between users and designers, as the users get to have an understanding of what is needed, and the designers would also get to know their own role. Business rules must be simplified for everyone in an organization so the rules could be interpreted by everyone, and be followed too.
Jantee, a Senior Manager at LionShare Inc., is responsible for the strategic planning process in his organization. He is currently implementing a strategy. Which of the following stages of the strategic planning process is Jantee most likely to have completed immediately before the implementation stage?
A) Stating the organizational mission
B) Conducting a SWOT analysis
C) Establishing goals and objectives
D) Formulating supporting functional strategies
Answer:
D) Formulating supporting functional strategies
Explanation:
Since in the given situation, Jantee who is the senior manager responsible for the strategic planning process so here he should have to complete the strategies related to the functional and that should be supported prior to coming to the implementation stage
So as per the given situation, the option d is correct
Baseball Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $18,600. Budgeted cash receipts total $186,000 and budgeted cash disbursements total $189,200. The desired ending cash balance is $30,600. To attain its desired ending cash balance for January, the company should borrow:
Answer:
Company should borrow = $15200
Explanation:
Below is the calculation for the borrowing amount:
Cash balance at the beginning = $18600
Add - Cash receipts = 186000
Less- Cash disbursements = (189200)
Budgeted cash balance = 18600 + 186000 - 189200 = 15400
Borrowing will be = Ending cash - 15400
Borrowing will be = 30600 - 15400
Borrowing will be = $15200
Company should borrow = $15200
LinkedIn Prospecting?
Answer:
Sales prospecting is what it sounds like: Sifting through a mountain of businesses and individuals to uncover the prospects who are most likely to convert into paying customers with a little effort, like a miner panning for gold. Like prospecting for gold, it takes a lot of time.
#CarryOnLearning
Answer:
For most B2B marketers, social selling on LinkedIn is a way of life. When it comes to generating leads, LinkedIn tops the B2B marketer’s best friends list for social prospecting and running outreach campaigns. This is what LinkedIn automation tools have been designed for – to perform all these actions automatically and ramp up your lead generation efforts.
What is the sales prospecting?
Prospecting on LinkedIn is simply equivalent to cold outreach practices. Most commonly, LinkedIn sales prospecting includes:
Using advanced filters to find a targeted audience Powerful social selling campaigns Sending highly-personalized connect requests Sending personalized messages and InMail Joining relevant LinkedIn groups Using LinkedIn automation tools for outreach LinkedIn prospecting can be extremely powerful to generate new business opportunities for you if done right.
LinkedIn Automation Tools For Prospecting
When it comes down to effective prospecting to generate leads, most of the B2B marketers and other professionals use prefer to use automation tools. Advanced automation tools come with powerful features that perform all the functions mentioned above.
1. 48% of B2B marketers acknowledged that automation tools are effective for prospecting
2. More than 80% of the startups and small companies are using automation tools for prospecting
3. Business that use advanced automation told for prospecting has seen significant growth of 12% in the sales pipeline.
Best Tips for LinkedIn Sales Prospecting
Find the right prospects to connect withUse personalizationTry using sales navigatorKeep Your pending requests list clearUse only the right LinkedIn automation toolsIf a well-diversified portfolio of stocks has an expected return of 15% when the expected return on the market portfolio is 10%, then:__________a) Treasury bills are offering a 7% yield.b) The portfolio beta is greater than 1.0.c) The portfolio beta equals 1.67.d) The investor's portfolio contains many defensive stocks.
Answer:
B. The portfolio beta is greater than 1.0
Explanation:
the answer to this question is option b. The portfolio beta is greater than 1.0. the reason is simple. we have the portfolio of expected return, which is 15% to be greater than the market portfolio of return which is 10 percent, then this is to tell us that the portfolio beta is going to be greater than 1.
15% is greater than 10%.
According to real business cycle theorists, ______________ consumption resulting from the major production innovations incentivizes businesses to borrow ______________ from banks, causing the money supply to ______________.
Answer:
increase in, more, increase
Explanation:
Real business cycle theory states that the [tex]\text{macroeconomic fluctuations}[/tex] in any economy can be explained by the technological shocks and the changes in the productivity. All these changes in the technological growth affects the decisions of the firms on investment as well as workers or the labor supply.
Edward C. Prescott and Finn E. Kydland first gave the concept of real business cycle theory.
In the theory of real business cycle, the increase in consumption results from the major [tex]\text{production innovations incentivizes businesses}[/tex] to borrow more from the banks, and it causes the supply of money to increase.
At the start of the current year, Minuteman Corporation had a credit balance in the Allowance for Doubtful Accounts of $1,800. During the year a monthly provision of 2% of sales was made for uncollectible accounts. Sales for the year were $600,000, and $5,600 of accounts receivable were written off as worthless. No recoveries of accounts previously written off were made during the year. What is the ending normal balance of t
Answer:
$8,200
Explanation:
Missing word "What is the ending normal balance of the Allowance account at year-end?"
Particulars Amount
Opening balance $1,800
Add: Monthly provision $12,000 (2%*$600,000)
Less: Bad debt $5,600
Ending balance of allowance $8,200
Ice Cream Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
Beginning work in process inventory:
Units in beginning work in process inventory 900
Materials costs $13,000
Conversion costs $5,100
Percent complete with respect to materials 75%
Percent complete with respect to conversion 20%
Units started into production during the month 9,600
Units completed and transferred to the next department during the month 8,500
Materials costs added during the month $172,100
Conversion costs added during the month $242,100
Ending work in process inventory:
Units in ending work in process inventory 2,000
Percent complete with respect to materials 90%
Percent complete with respect to conversion 30%
The cost per equivalent unit for materials for the month in the first processing department is closest to: __________
Answer:
Ice Cream Corporation
The cost per equivalent unit for materials for the month in the first processing department is closest to: __________
= $17.97.
Explanation:
a) Data and Calculations:
Units Materials Conversion
Beginning work in process inventory 900 $13,000 $5,100
Degree of completion 75% 20%
Units started into production 9,600
Total units in production 10,500
Units completed and transferred 8,500 100% 100%
Ending work in process inventory 2,000 90% 30%
Units Materials Conversion
Beginning work in process inventory 900 $13,000 $5,100
Costs added during the month $172,100 $242,100
Total production costs for the month $185,100 $247,200
Equivalent units of production:
Units Materials Conversion
Units completed and transferred 8,500 8,500 (100%) 8,500 (100%)
Ending work in process inventory 2,000 1,800 (90%) 600 (30%)
Total equivalent units 10,300 9,100
Cost per equivalent unit:
Materials Conversion
Total production costs $185,100 $247,200
Total equivalent units 10,300 9,100
Cost per equivalent unit $17.97 $27.16
Francisco leased equipment from Julio on December 31, 2021. The lease is a 10-year lease with annual payments of $159,000 due on December 31 of each year beginning December 31, 2021. The present value of the lease payments is $1,006,192. Francisco's incremental borrowing rate is 14% for this type of lease. The implicit rate of 12% is known by the lessee. What should be the balance in Francisco lease liability at December 31, 2022
Answer: $789855
Explanation:
Initial liability = $1,006,192
Less: Payment = $159,000
Liability = $847192
× Implicit rate 12%
Interest = 12% × $847192 = $101663
Then, reduced balance will be:
= Payment - Interest
= $159,000 - $101663
= $57337
Therefore, Francisco lease liability at December 31, 2022 will be:
= $847192 - $57337
= $789855
Pope’s Garage had the following accounts and amounts in its financial statements on December 31, 2019. Assume that all balance sheet items reflect account balances at December 31, 2019, and that all income statement items reflect activities that occurred during the year then ended.
Accounts receivable $33,000
Depreciation expense 12,000
Land 27,000
Cost of goods sold 90,000
Retained earnings 59,000
Cash 9,000
Equipment 71,000
Supplies 6,000
Accounts payable 23,000
Service revenue 20,000
Interest expense 4,000
Common stock 10,000
Income tax expense 12,000
Accumulated depreciation 45,000
Long-term debt 40,000
Supplies expense 14,000
Merchandise inventory 31,000
Sales revenue 140,000
Required:
a. Calculate the total current assets at December 31, 2019.
b. Calculate the total liabilities and owners’ equity at December 31, 2019.
c. Calculate the earnings from operations (operating income) for the year ended December 31, 2019.
d. Calculate the net income (or loss) for the year ended December 31, 2019.
e. What was the average income tax rate for Pope’s Garage for 2019?
f. If $16,000 of dividends had been declared and paid during the year, what was the January 1, 2019, balance of retained earnings?
Answer and Explanation:
a. The computation of the total current asset is shown below
= Account receivable + cash + supplies + merchandise inventory
= $33,000 + $9,000 + $6,000 + $31,000
= $79,000
b The total liabilities and owners equity is
= Account payable + long term debt + common stock + retained earnings
= $23,000 + $40,000 + $10,000 + $59,000
= $132,000
c. The earnings from operations is
Sales revenue $140,000
Less cost of goods sold $90,000
Gross profit $50,000
add: service revenue $20,000
Less depreciation expense $12,000
Less supplies expense $14,000
Operating income $44,000
d. The net income is
= operating income - interest expense - income tax expense
= $44,000 - $4,000 - $12,000
= $28,000
e. The average income tax rate is
= $12,000 ÷ $40,000 × 100
= 30%
f. The beginning retained earnings is
= $59,000 + $16,000 - $28,000
= $47,000
At December 31, 2017, Riverbed Corporation reported the following plant assets.
Land $5,613,000
Buildings $26,640,000
Less: Accumulated depreciationâbuildings 22,311,675 4,328,325
Equipment 74,840,000
Less: Accumulated depreciationâequipment 9,355,000 65,485,000
Total plant assets $75,426,325
During 2018, the following selected cash transactions occurred.
Apr. 1 Purchased land for $4,116,200.
May 1 Sold equipment that cost $1,122,600 when purchased on January 1, 2011. The equipment was sold for $318,070.
June 1 Sold land for $2,993,600. The land cost $1,871,000.
July 1 Purchased equipment for $2,058,100.
Dec. 31 Retired equipment that cost $1,309,700 when purchased on December 31, 2008. No salvage value was received.
Required:
Journalize the transactions.
Solution :
1. Journal voucher
Journal Entries
Date Accounts title Debit Credit
June 1 Cash $ 2,993,600
Gain on sale of land $ 1,122,600
Land $ 1,871,000
(Being land sold)
2. Partial Balance sheet
Riverbed Corporation
Partial Balance sheet
December 31, 2008
Plant Assets
Land $ 7,858,200
Building $ 26,640,000
(-) Accumulated Depreciation-building $ 74,465,800 $ 3,662,625
Equipment $ 74,465,800
(-) Accumulated Depreciation-equipment $ (14,734,125) $ 59,731,675
Total Plant Assets $ 71,252,200
Holtzman Clothiers's stock currently sells for $38 a share. It just paid a dividend of $1.5 a share (i.e., D0 = $1.5). The dividend is expected to grow at a constant rate of 4% a year.
Required:
a. What stock price is expected 1 year from now?
b. What is the required rate of return?
Answer:
b 6.87%
a 56.53
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
38 = (1.5 x 1.04) / (r - 0.04)
38 (r - 0.04) = 1.092
r - 0,04 = 0.0287
r = 6.87%
1.5 x (1.04^2) / 6.87 - 4 = 56.53
Birmingham Bolt, Inc., has been approached by one of its customers about producing 800,000 special-purpose parts for a new home product. The customer wants 100,000 parts per year for eight years. To provide these parts, Birmingham would need to acquire a $500,000 new production machine. The new machine would have no salvage value at the end of its eight-year life. The customer has offered to pay Birmingham $7.50 per unit for the parts. Birmingham’s managers have estimated that, in addition to the new machine, the company would incur the following costs to produce each part:
Direct labor $2.00
Direct material $2.50
Variable 2.00
Total $6.50
In addition, annual fixed out-of-pocket costs related to the production of these parts would be $20,000.
a. Compute the net present value of the machine investment, assuming that the company uses a discount rate of 9 percent to evaluate capital projects.
b. Based on the NPV computed in (a), is the machine a worthwhile investment? Explain.
c. In addition to the NPV, what other factors should Birmingham’s managers consider when making the investment decision?
Answer:
Birmingham Bolt, Inc.
a. The net present value of the machine investment = ($57,214.47).
b. Based on the computed NPV in (a), the machine is not a worthwhile investment. Birmingham will lose $57,214.47 from the investment.
c. In addition to the NPV, the other factors that Birmingham’s managers should consider when making the investment decision are:
1. the probability of reducing the variable costs per unit of production by achieving productivity efficiencies.
2. whether the price could be reviewed upward with the customer.
3. whether there will be increased demand for the product in the future.
Explanation:
a) Data and Calculations:
Special-purpose parts for a new home product = 800,000 parts
Annual requirement of the parts = 100,000
Period of contract = 8 years
Discount rate = 9%
Initial investment in production machine = $500,000
Price offer per part = $7.50
Annual sales revenue from parts = $750,000
Variable costs;
Direct labor $2.00
Direct material $2.50
Variable $2.00
Total $6.50 $650,000
Contribution margin $100,000
Annual fixed costs $20,000
Annual net cash inflow $80,000
PV of annual cash inflows = $442,785.53
NPV = ($57,214.47) ($442,785.53 - $500,000)
N (# of periods) 8
I/Y (Interest per year) 9
PMT (Periodic Payment) 80000
FV (Future Value) 0
Results
PV = $442,785.53
Sum of all periodic payments = $640,000.00
Total Interest = $197,214.47
Green Penguin Pencil Company has a total asset turnover ratio of 3.50x, net annual sales of $40 million, and operating expenses of $18 million (including depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $2.50 million on which it pays a 11% interest rate.
To analyze a company's financial leverage situation, you need to measure the firm's debt management ratios. Based on the preceding information, what are the values for Green Penguin Pencil's debt management ratios? The U.S. tax structure influences a firm's willingness to finance with debt. The tax structure debt.
Solution :
a). Asset turnover ratio = total sales / total asset = 3.50
Total asset = 40 million / 3.5 = 1142857
Total debt = 2.50 million
Therefore, the debt ratio = [tex]$\frac{\text{debt}}{\text{total asset}}$[/tex]
[tex]$=\frac{2500000}{1142857}$[/tex]
= 2.18
b). Time interest earned ratio = EBIT/Interest
EBIT = net sales - operating expense
= 40,000,000 - 18,000,000
= $ 22,000,000
Interest expense = 10 % x 2,500,000
= $ 250,000
Times interest earned ratio = EBIT/ interest expense
= [tex]$\frac{\$ 22,000,000}{\$250,000}$[/tex]
= 88 times
c). Total equity = total asset - total debt
= 400,000,000 - 2,500,000
= 397,500,000
Money raised from the creditor for each dollar of equity
= 2,500,000/397,500,000
= 6%
Economists look at any situation in terms of its component parts: the people making decisions, the environment in which they're making those decisions, and the goods or services being exchanged. For example, think about doing your laundry. Which of the following laundry-related items are nondurable goods?
a. A washing machine
b. Having a pair of pants dry-cleaned
c. A T-shirt
d. A clothes dryer
Transactions for Jayne Company for the month of June are presented below.
June 1 Issues common stock to investors in exchange for $5,000 cash.
2 Buys equipment on account for $1,100.
3 Pays $740 to landlord for June rent.
12 Sends Wil Wheaton a bill for $700 after completing welding work.
Requied:
Record journal entries.
Answer:
below
Explanation:
Schell Company manufactures automobile floor mats. It currently has two product lines, the Standard and the Deluxe. Suppose that Schell has conducted further research into its overhead and potential cost drivers. As a result, the company has compiled the following detailed information, breaking total overhead into three cost pools:
Activity Cost Pools Cost Driver Cost Assigned to Pool Quantity/Amount Consumed by Standard Floor Mat Line Quantity/Amount Consumed by
Deluxe Floor Mat Line
Material handling
Number of moves
$
2,300.00
50 moves
50 moves
Quality control
Number of inspections
$
8,763.00
570 inspections
700 inspections
Machine maintenance
Number of machine hours
$
14,360.00
3,090 machine hours
4,090 machine hours
Required :
1. Calculate the activity rates for each cost pool assuming Schell uses an ABC system. (Round your answers to 2 decimal places.)
Activity Rate
Material Handing
Per Material Move
Quality Control
Per Inspection
Maintenance
Per Machine Hourm
2. Calculate the amount of overhead that Schell will assign to the Standard floor mat line. (Round your intermediate calculations to 2 decimal places.
Total Overhead Assigned
3. Determine the amount of overhead Schell will assign to the Deluxe product line. (Round your intermediate calculations to 2 decimal places.)
Total Overhead Assigned
Answer and Explanation:
The computation is shown below:
1. The activity rate for each cost pool is
Material handling ($2,300) ÷ (50 + 50) = $23.00
Quality Control ($8,763) ÷ ($570 + 700) = $6.90
Machine Maintenance ($14,360) ÷ (3,090 + 4,090) = $2.00
2
Total overhead assigned to the standard floor mat line is
= $23 × 40 + $6.9 × 570 + $2 × 3,090
= $1,150 + $3,933 + $6,180
= $11,263.00
3
Total overhead assigned to deluxe product line
= $23 × 50 + $6.9 × 700 + $2 × 4,090
= $1,150 + $4,830 + $8,180
= $14,160.00
Pina Colada Corp. has the following transactions during August of the current year.
Aug. 1 Issues shares of common stock to investors in exchange for $10,880.
4 Pays insurance in advance for 3 months, $1,500.
16 Receives $880 from clients for services rendered.
27 Pays the secretary $680 salary.
Required:
Indicate the basic analysis and the debit-credit analysis.
Answer and Explanation:
The indication of the basic analysis and the debit credit analysis is as follows;
Date Basic Analysis Debit - Credit Analysis
Aug. 1 The asset Cash is increased; Debits increase assets;
the stockholders' equity account Debit Cash
Common stock is increased. $10,880
Credits increase stockholders' equity
Credit Common stock
$10,880
Aug. 4 The asset Prepaid Insurance Debits increase assets;
is increased; Debit Prepaid Insurance
the asset Cash is decreased. $ 1,500
Credits decrease assets;
Credit Cash
$ 1,500
Aug. 16 The asset Cash is increased; Debits increase assets;
the revenue Service revenue Debit Cash
is increased. $880
Credits increase revenues:
Credit Service revenue
$880
Aug. 27 The expense Salaries expense Debits increase expenses:
is increased; Debit Salaries expense
the asset Cash is decreased. $680.
Credits decrease assets:
Credit Cash
$680
Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $201,000. Inventory data are as follows:
Year Ending Inventory at Year-End Costs Ending Inventory at Base Year Costs
2019 $260,400 $248,000
2020 347,300 302,000
2021 350,400 292,000
Required:
Compute the inventory at December 31, 2019, 2020, and 2021, using the dollar-value LIFO method.
Answer:
Explanation:
The cost index can be calculated as follows:
In 2019:
= 260400/248000
= 1.05
In 2020:
= 347300/302000
= 1.15
In 2021:
= 350400/292000
= 1.2
Inventory Layers converted to the base cost
Date [tex]\text{(Inventory at } \ \ \ \ \ \ \ \ \text{(year-end } \\ \\ \text{ year end cost) } \div \ \ \ \text{cost index) } = \ \ \ \ \ \ \ \text{ Inventory layers(base year cost) }[/tex]
12/31/20 201000 ÷ 1 = 201000
12/31/20 260400 ÷ 1.05 = 248000
12/31/20 347300 ÷ 1.15 = 302000
12/31/20 350400 ÷ 1.2 = 292000
Inventory Layers converted to cost Ending Inventory DVL cost
[tex]\text{(Inventory layers } \ \ \text{("year-end } \\ \\ \text{ base year cost) } \times \text{ cost index") } = \ \ \text{ Inventory layers(cost) }[/tex]
Base
201000 × 1 = 201000
201000 × 1 = 201000
Dec 31, 2019
47000 × 1.05 = 49350
ADD 250350
Base
201000 × 1 = 201000
Dec 31, 2019
47000 × 1.05 = 49350
Dec 31, 2020
(302000 - 248000)
= 54000 × 1.15 = 62100
ADD 312450
Base
201000 × 1 = 201000
Dec 31, 2019
47000 × 1.05 = 49350
Dec 31, 2021
(292000 - 248000)
= 44000 × 1.15 = 50600
ADD 300950
Acme Fastener and Tool is having major problems with demand management. The VP of Sales is very focused on increasing productivity according to forecasts, but the operations manager routinely presents obstacles to increasing production above current levels. Of the following, which problem is the firm experiencing?
a. Functional silos.
b. Lack of attention on operational planning.
c. Overemphasis on forecasting.
d. Focus on tactics.
Answer:
Functional silos
Explanation:
Functional silo occurs when different teams with their responsibilities and functions have different views about a process.
The managers who have accumulated resources and influence are conflicted over the functional aspects of a process rather than looking out for the wider benefit of the business.
In the given scenario VP of Sales is very focused on increasing productivity according to forecasts, but the operations manager routinely presents obstacles to increasing production above current levels.
They are both pursuing conflicting agendas instead of working together.
This is called functional silo.