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2 years ago

[The following information applies to the questions displayed below.]

Business

1 answer:

ale4655 [162]2 years ago

6 0

Answer:

D. $370,000

Explanation:

INDIRECT OIL CO TRIAL BALANCE AS A JANUARY 3, 2018

DEBIT SIDE

Land $100,000

Equipment $80,000

(Cash 40,000+Receivable collected $25,000- Liability paid$20,000) $45,000

(Account Receivable $50,000 - Amount collected $25,000) $25,000

Buildings $120,000

TOTAL $370,000

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The following are nine technical accounting terms introduced or emphasized in this chapter. Responsibility margin Transfer price

Ostrovityanka [42]

Answer: Please refer to Explanation

Explanation:

The terms will be listed in bold at the end of the statement. If you require further clarification please do comment.

a. The costs deducted from the contribution margin to determine the responsibility margin. TRACEABLE FIXED COSTS.

b. Cost to produce plus a predetermined markup. COST-PLUS TRANSFER PRICE

c. Fixed costs that are readily controllable by the manager. NONE

d. A subtotal in a responsibility income statement, equal to responsibility margin plus committed fixed costs. PERFORMANCE MARGIN.

e. The subtotal in a responsibility income statement that is most useful in evaluating the short-run effect of various marketing strategies on the income of the business. CONTRIBUTION MARGIN.

f. The subtotal in a responsibility income statement that comes closest to indicating the change in income from operations that would result from closing a particular part of the business. RESPONSIBILITY MARGIN.

g. The amount used in recording products or services supplied by one business unit to another. TRANSFER PRICE.

5 0

2 years ago

Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. Th

netineya [11]

Answer:

A) 100

Explanation:

total sales 3,600 units

cost per unit $200

cost of placing order $40

holding cost $20 per year

working days 360 per year

lead time 5 days

If Mark orders 200 units each time, his average inventory ?

daily sales = total sales / working days = 3,600 / 360 = 10 units per day

number of orders per year = 3,600 / 200 = 18

Mark places one order every = 360 days / 18 orders = 20 days

average inventory = (200 units / 20 days) x 10 days = 100

I assume that mark has some type of safety stock that allows him to hold enough inventory to cover for the 5 day lead time.

8 0

2 years ago

The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:

Anni [7]

Answer and Explanation:

The preparation of cash flows, using the indirect method is shown below:-

Cash flow from operating activities

Net income $141,680

Adjustment made

Add: Depreciation $14,790

Add: Loss on sale of

investment $10,200

Current operating Assets and liabilities change

Less: Increase in accounts receivable -$19,040

Less: Increase in inventories -$8,670

Add: Increase in accounts payable $11,560

Add: Accrued accounts payable increased $3,740

Net cash flow from operating activities $154,260

Net cash flow from Investing activities

Investment sale $91,800

Less: Equipment purchased -$80,580

Less: Land purchased -$295,800

Net cash flow from investing activities -$284,580

Cash flow from financing activities

Common stock issued $250,000

Less: Paid Dividend -$96,900

Cash flow from financing activities $153,100

Net increase or decrease in cash $22,780

Add: Beginning cash balance $47,940

Ending cash balance $70,720

Working note

Dividend paid = Dividend declared - Increase in Dividend payable

= $102,000 - $5,100

= $96,900

Loss on sale of investment = Sale of investment of amount realized - Investment cost

= $91,800 - $102,000

= -$10,200

The positive amount represents the cash inflow and the negative amount represents the outflow of cash

4 0

2 years ago

4. Formulate an equation that would allow you to calculate the PERCENTAGE of people who filed their taxes during the week of Apr

STatiana [176]

Answer:

% people filed taxes = [Number of filed their taxes / Total number of people]100

Explanation:

% people filed taxes = [Number of filed their taxes / Total number of people]100

Assume;

Number of filed their taxes = 100

Total number of people = 1,000

% people filed taxes = [100/1000]100

% people filed taxes = 10%

5 0

2 years ago

Your company is upgrading the breakroom and kitchen. It is going to include an expresso machine, a fridge with compartments for

Oksi-84 [34.3K]

Answer:

1. In a Year 20,367 20,017

2. In a Year 21,333 21,917

3. In the case of NPW analysis Selected Target is best option because it is the better and cheaper investment while EUAM analysis states Walmart kit is better option,

4.Target is the best option because the cost difference is only around $600 which will last for 6 Years while in walmart case we will need to replace all the furniture in 3 Years .

Explanation:

1. Using NPW Analysis

Walmart Kit Target

Intial Cost 40000 65000

AMC 10000 12000

Salvage Value 12000 25000

Life Years 3 6

Total Cost

Intial Cost 40000 65000

Less Salvage 12000 25000

Balance 28000 40000

5% Interest 6000 19500

AMC PV 2.71 5.05

Amc 27100 60600

Total Cost 61100 120100

In a Year 20,367 20,017

2. Using EUAW Analysis

Walmart Kit

Target

Intial Cost 40000 65000

AMC 10000 12000

Salvage Value 12000 25000

Life Years 3 6

Total Cost

Intial Cost 40000 65000

Less Salvage 12000 25000

Balance 28000 40000

5% Interest 6000 19500

AMC 30000 72000

Total 64000 131500

In a Year 21,333 21,917

In the case of NPW analysis Selected Target is best option because it is the better and cheaper investment while EUAM analysis states Walmart kit is better option,

Target is the best option because the cost difference is only around $600 which will last for 6 Years while in walmart case we will need to replace all the furniture in 3 Years .

Hence Target product will be the best option we would advice the management to go for.

7 0

2 years ago