Answer
About 60000 for monthly inflation if this is wrong I am truly sorry i just had a bad day
COSO’s Internal Control Model has five components and 17 principles. Which of the following is(are) principle(s) of the control environment component? (Check all that apply.) A. A commitment to attract, develop, and retain competent individuals in alignment with objectives B. Commitment to integrity and ethics C. Holding individuals accountable for their internal control responsibilities in pursuit of objectives D. Considering the potential of fraud E. Selecting, developing, and performing ongoing or separate evaluations of the components of internal control
Answer:
COSO’s Internal Control Model
Selection of the principle(s) of the control environment component:
A. A commitment to attract, develop, and retain competent individuals in alignment with objectives
B. Commitment to integrity and ethics
C. Holding individuals accountable for their internal control responsibilities in pursuit of objectives
Explanation:
These two are not part of the five principles of the control environment:
D. Considering the potential of fraud
E. Selecting, developing, and performing ongoing or separate evaluations of the components of internal control
Specifically, the COSO framework principles on the control environment are:
1. Commitment to integrity and ethical values
2. Ensuring that the board of directors exercises oversight responsibility
3. Establishment of structures, reporting lines, authorities, and responsibilities
4. Commitment to a competent workforce
5. Holding people accountable
(30 POINTS)What is one difference between a vocational school and on-the-job training?
A vocational school degree takes one year to earn. On-the-job training takes two or more years.
A vocational school degree takes weeks or months to earn. On-the-job training takes two years or fewer.
A vocational school is usually paid for by the worker. On-the-job training is usually paid for by the employer.
A vocational school is usually paid for by the employer. On-the-job training is usually paid for by the worker.
Answer:
A vocational school is usually paid for by the worker. On-the-job training is usually paid for by the employer.
Explanation: Vocational training is when you as a worker learn more about your job so you have to pay your trainer to acquire knowledge. However for on-the-job training you have understandin got how to do your work so you get paid
The main difference between a vocational school and on-job training is that "the vocational school is paid for by workers while the on-job training is paid for by the employer".
The vocational school or the vocational form of training is the training provided to the worked by creating the replica of a similar workstation. This helps the workers to know about the entire working process before entering into the actual workplace.
The on-job training is provided to the employers before starting the work or during the existing work about the changes or modifications in the current work process. This is beneficial when the duplicate situation cannot be created and the new work needs to be operated along with the existing work.
Therefore, option c is correct.
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Galvanized Products is considering purchasing a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $90,000. Galvanized Products is planning to borrow 1/4th of the purchase price from a bank at 18.00 % compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to last 5 years and has a salvage value of $4,600 at that time. Over the 5-year period, Galvanized Products expects to pay a technician $28,000 per year to maintain the system but will save $51,000 per year through increased efficiencies. Galvanized Products uses a MARR of 18.00 %/year to evaluate investments.
What is the present worth of this investment?
The purchase price is 90,000
Diego Company manufactures one product that is sold for $80 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 40,000 units and sold 35,000 units. Variable costs per unit: Manufacturing: Direct materials $ 24 Direct labor $ 14 Variable manufacturing overhead $ 2 Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $ 800,000 Fixed selling and administrative expense $ 496,000 The company sold 25,000 units in the East region and 10,000 units in the West region. It determined that $250,000 of its fixed selling and administrative expense is traceable to the West region, $150,000 is traceable to the East region, and the remaining $96,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. Foundational 7-1 Required: 1. What is the unit product cost under variable costing?
Answer:
Total unitary variable production cost= $40
Explanation:
Giving the following information:
Variable costs per unit:
Direct materials $24
Direct labor $14
Variable manufacturing overhead $2
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Total unitary variable production cost= 24 + 14 + 2
Total unitary variable production cost= $40
Describe a scenario that forced you to wrestle with your values?
Answer:
To use brainly or to not use brainly. I dont like cheating but sometimes I realy need help.
Explanation:
RajDee Furniture Company (RFC) buys and sells office furniture. The company buys chairs from a manufacturer for $40 per unit. Order costs are $200 per order and there is a lead time of 10 days for each order to arrive from the manufacturer to RFC warehouse. Inventory carrying cost for RFC is 10%. Average yearly demand for the chairs is 40,000 units. Answer the following questions, assuming there is no uncertainty at all about the demand or the lead time. What would average inventory be if RFC orders this quantity every time
Answer:
1,414 units
Explanation:
First, we need to find the Economic oder quantity(EOQ), which is denoted by;
EOQ = √ 2 × A × O / C
Where,
A = Annual requirement = 40,000 units
O = Ordering cost = $200 per unit
C = Annual carrying cost per unit = 40 × 10% × 1/2 = 2.
EOQ = √ 2 × 40,000 × 200 / 2
EOQ = 2,828 units
Therefore, average inventory would be;
= EOQ / 2
= 2,828 / 2
= 1,414 units
Average inventory would be 1,414 units if RFC orders this quantity (2,828 units) every time.
In risk management, what does risk evaluation involve?
A risk management planning
B. risk resolution
C.l risk priorization
D. risk monitoring
Answer:
A- risk management planning
Explanation:
This is because risk assessment is a term used to describe the overall process or method where you: Identify hazards and risk factors that have the potential to cause harm (hazard identification). Analyze and evaluate the risk associated with that hazard (risk analysis, and risk evaluation)
In risk management, risk prioritizing management planning will be required. Thus, option C is correct.
What is the risk?For the purposes of health as well as environmental regulations, the risk is widely taken into consideration. It is an event occurring and the seriousness of its effect may lead to disagreement.
In the process of risk management, it is very necessary that risk is mentioned is addressed first. This will help to make sure that the things or the task that are required immediate attention will be given first.
This will help in a magazine went as well as this planning will make sure that business or the organization is done smoothly. As the serious ones are the ones that need to be addressed first. Therefore, option C is correct.
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Palmona Co. establishes a $140 petty cash fund on January 1. On January 8, the fund shows $29 in cash along with receipts for the following expenditures: postage, $46; transportation-in, $14; delivery expenses, $16; and miscellaneous expenses, $35. Palmona uses the perpetual system in accounting for merchandise inventory. Prepare journal entries to (1) establish the fund on January 1, (2) reimburse it on January 8, and (3) both reimburse the fund and increase it to $190 on January 8, assuming no entry in part 2. Hint: Make two separate entries for part 3.
Answer:
Entries are posted
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
January 1 (Cash fund being recorded in petty cash)
Account Debit Credit
Petty Cash $140
Cash $140
January 8
Postage $46
transportation-in $14
delivery expenses, $16
miscellaneous expenses, $35
Cash $111
January 8 ( petty cash funds being increased )
Pettcash $50
Cash $50
Recording purchases, purchases returns, and purchases allowances LO P1 Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. Apr. 2 Purchased $5,000 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 3 Paid $220 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $750. 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 18 Purchased $9,300 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. 21 After negotiations, received from Frist a $500 allowance toward the $9,300 owed on the April 18 purchase. 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.
Answer: See attachment
Explanation:
Note:
April 17:
Account payable- Lyon Company:
= $5000 - $750
= $4250
Merchandise inventory:
= $4250 × 2%
= $4250 × 0.02
= $85
Cash = $4250 - $85
= $4165
April 28:
Account payable- Frist Corp:
= $9300 - $500
= $8800
Merchandise inventory:
= $8800 × 1%
= $8800 × 0.01
= $88
Cash = $8800 - $88
= $8712
Check the attachment for further information
On February 5, King Corporation paid $1,600,000 for all the issued and outstanding common stock of Princess, Inc., in a transaction properly accounted for as an acquisition. The book values and fair values of Princess's assets and liabilities on February 5 were as follows: Book Value Fair Value Cash $ 160,000 $160,000 Receivables (net) 180,000 180,000 Inventory 315,000 300,000 Plant and equipment (net) 820,000 920,000 Liabilities (350,000) (350,000) Net assets $1,125,000 $1,210,000 What is the amount of goodwill resulting from the business combination? A. $400,000 B. $475,000. C. $85,000. D. $390,000.
Answer:
$390,000
Explanation:
The computation of the amount of goodwill resulting from the business combination is shown below:
= Paid amount for all issued & outstanding common stock - net assets fair value
= $1,600,000 - $1,210,000
= $390,000
We simply applied the above formula
Hence, the correct option is D.
All other information which is given in the question is not relevant. hence, ignored it
Starbucks is a national chain of gourmet cafes, which caters to coffee-drinkers. Many of their customers commute from the suburbs, and several of the stores are located in business districts so they may better accommodate the commuters' needs. Starbucks sells their private brand of coffees, and also accompanied them with fresh baked goods. They have a synergy between their stores and their website, both of which help to maintain an advantage over competing local coffee shops. This is a description of Starbucks:
Answer:
yes this is a description of starbucks?
Yes, Starbucks is described in this Starbucks is a national chain of gourmet cafes
What is the nation?Although the phrases nation, state, and country are sometimes used interchangeably, there is a distinction between them. A state is a self-governing political entity (notice the capital "S"). Country and State are both interchangeable terms. However, a nation is a closely-knit community of people who share a culture.
Starbucks is a national chain of gourmet cafes, which caters to coffee drinkers. Many of their customers commute from the suburbs, and several of the stores are located in business Yes, Starbucks is described in this Starbucks is a national chain of gourmet cafes
Therefore, Yes, Starbucks is described in this Starbucks is a national chain of gourmet cafes
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Raby, Inc. acquires all of the outstanding stock of Fletcher Corporation on January 1, 2017. At that date, Fletcher owns only three assets and has no liabilities: Book Fair Value Value Land $ 40,000 $ 50,000 Equipment (10-year life) 80,000 75,000 Building (20-year life) 200,000 300,000 24. If Raby pays $450,000 in cash for Fletcher, what amount would be represented as the subsidiary’s Building in a consolidation at December 31, 2019, assuming the book value of the building at that date is still $200,000? A. $200,000. B. $295,000. C. $290,000. D. $285,000.
Answer:
D. $285,000
Explanation:
When a company is acquired by another company, the parent company (the new owner) must report the assets at fair market value - amortization.
FV = $300,000
amortizable value = $100,000
depreciation for 3 years (2017, 2018 and 2019) = ($100,000 / 20) x 3 = 415,000
reported value = $300,000 - $15,000 = $285,000
The ability to solve problems and make decision is what type of skill? (soft kill or hard skill)
Answer:
I am not sure but i think it is a soft skill.
Explanation:
The use of a debit card is most like:
almona Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows $38 in cash along with receipts for the following expenditures: postage, $74; transportation-in, $29; delivery expenses, $16; and miscellaneous expenses, $43. Palmona uses the perpetual system in accounting for merchandise inventory. Prepare journal entries to (1) establish the fund on January 1, (2) reimburse it on January 8, and (3) both reimburse the fund and increase it to $450 on January 8, assuming no entry in part 2. Hint: Make two separate entries for part 3.
Answer: Please see answer in explanation column
Explanation:
1`. To record establishment of fund
Date Account titles and explanation Debit Credit
Jan 1 Petty cash $200
Cash $200
2.To record the reimbursement the petty cash fund.
Date Account titles and explanation Debit Credit
Jan 8 Postage expense $74
Merchandise inventory $29
Delivery expense $16
Miscellaneous expenses $43
Cash $162
Date Account titles and explanation Debit Credit
Jan 08 Petty cash $250
Cash $250
calculation
Petty cash= $450-$200 = $250
The preemployment stage of organizational socialization would be more effective if Multiple Choice job applicants distorted their resume in order to get the job offered. job applicants did not ask questions during their interview. employees engage in impression management. employers provide only positive information about the job. employers and job applicants gave and received accurate information about each other.
Answer:
Employees and job applicants gave and recieved accurate information about each other.
Explanation:
Organisational socialisation is that stage of employment where the new intakes learn more about the attitudes, knowledge, skills, and expectations of a new role.
This stage will be more successful if both employees and employers give accurate information about themselves.
The employer will know how much to expect of the employee as regards performance and adopting the company culture.
Employees will know what to expect on the job. It will reduce disappointment and tendency of leaving in the near future.
(b1) Waterways is thinking of mass-producing one of its special-order sprinklers. To do so would increase variable costs for all sprinklers by an average of $0.70 per unit. The company also estimates that this change could increase the overall number of sprinklers sold by 10%, and the average sales price would increase $0.20 per unit. Waterways currently sells 491,740 sprinkler units at an average selling price of $26.50. The manufacturing costs are $6,863,512 variable and $2,050,140 fixed. Selling and administrative costs are $2,651,657 variable and $794,950 fixed. If Waterways begins mass-producing its special-order sprinklers, how would this affect the company
Answer:
operating income will increase by $81,137.10 or 12.09%
Explanation:
we must first determine the old contribution margin of the sprinklers:
total variable costs = $6,863,512 + $2,651,657 = $9,515,169
total units sold = 491,740
variable cost per unit = $9,515,169 / 491,740 = $19.35
selling price per unit = $26.50
old contribution margin = $26.50 - $19.35 = $7.15
the new contribution margin per unit:
selling price = $26.70
variable cost per unit = $20.05
new contribution margin = $6.65
increase in units sold = 491,740 x 10% = 49,174 units
the impact of new product:
before, the company's total contribution margin was 491,740 x $7.15 = $3,515,941
operating income = $3,515,941 - $2,050,140 - $794,950 = $670,851
the new total contribution margin = 540,914 x $6.65 = $3,597,078.10
new operating income = $3,597,078.10 - $2,050,140 - $794,950 = $751,988.10
change in operating income = $751,988.10 - $670,851 = $81,137.10 or 12.09% increase
PLEASE HELPP
Which descriptions offer examples of Professional Support Services workers? Check all that apply.
Milo tutors students outside of normal school hours to help them prepare for exams.
Missy assists a high school science teacher and provides additional instruction.
Gus works in a library and responds to requests from people who need help using services.
Lauren teaches students about business and computing.
Kami advises students to help them make decisions about their education and careers.
Donny creates instructional workbooks and other materials for teachers and students.
Answer:
Gus works in a library and responds to requests from people who need help using services.
Kami advises students to help them make decisions about their education and careers.
Donny creates instructional workbooks and other materials for teachers and students.
The descriptions that offer examples of Professional Support Services workers are options C, E, and F.
This is because Professional Support Service workers are always involved in activities or professions that help people's education, careers, and training operations.
It usually pertains to helping people decide on health goals, academic achievement, career pursuit, etc.
Thus, when Gus works in a library and responds to requests from people who need help using services. This implies professional services in the education line.
Kami advises students to help them make decisions about their education and careers. This implies professional services in the career line.
Donny creates instructional workbooks and other materials for teachers and students. This implies professional services in the education line.
Hence, in this case, it is concluded that the correct answer is option C, E, and F.
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As a firm grows, it must support increases in revenue with new investments in assets. The sustainable, or self-supporting, growth model helps a firm assess how rapidly it can grow, while maintaining a balance between its cash outflows (increase in noncash assets) and inflows (funds resulting from increases in liabilities or equity).
Consider this case:
Green Caterpillar Garden Supplies Inc. has no debt in its capital structure and has $150 million in assets. Its sales revenues last year were $60 million with a net income of $5 million. The company distributed $1.60 million as dividends to its shareholders last year.
What is the firm’s sustainable growth rate?
A. 1.65%
B. 4.60%
C. 1.08%
D. 2.32%
Which of the following are assumptions of the sustainable (self-supporting) growth model? Check all that apply.
A. The firm’s total asset turnover ratio remains constant.
B. The firm pays no dividends.
C. This firm will not issue any new common stock next year.
D. The firm’s liabilities and equity must increase at the same rate.
Answer:
i think its a
Explanation:
Skysong, Inc. receives a $9500, 6-month, 6% promissory note from Sheridan Company in settlement of an open accounts receivable. What entry will Skysong, Inc. make upon receiving the note?
Answer:
the journal entry should be:
Dr Notes receivable 9,500
Cr Accounts receivable 9,500
Explanation:
Since Sheridan Company owed money to Skysong ($9,500), Skysong recorded that amount as an account receivable. Since the note receivable replaces the account receivable, the accounts receivable must be credited (assets decrease when credited).
If note is collected on time, the journal entry should be:
Dr Cash 9,785
Cr Notes receivable 9,500
Cr interest revenue 285
what are the components of egg, identify and describe each
Eggs consist of approximately 9.5% eggshell (including shell membrane), 63% albumen, and 27.5% yolk (1) (Table 1). The main components are water (75%), proteins (12%), and lipids (12%), as well as carbohydrates and minerals (2, 3).
hope this helps
Which of the following actions is a good example
of protecting sensitive information? Check all of
the boxes that apply.
using a paper shredder to discard documents
that contain personal medical information
keeping patient files in a secure electronic file
system with limited access
maintaining a confidential patient consultation
area in a doctor's office
discussing private matters with patients in the
waiting room
Answer:
A,B,C
Explanation:
Answer:
“Using a paper shredder to discard documents that contain personal medical information”, “Keeping patient files in a secure electronic file system with limited access” and “Maintaining a confidential patient consultation area in a doctor’s office”
Explanation:
What is porter's 5 forces?
Answer:
Porter's Five Forces is a framework for analyzing a company's competitive environment.
The number and power of a company's competitive rivals, potential new market entrants, suppliers, customers, and substitute products influence a company's profitability.
Explanation:
Sort each statement as either true or false. Items (4 items) (Drag and drop into the appropriate area below) Comparative advantage is not an important aspect of specialization and trade.Trade helps to create additional growth through specialization.Everyone benefits with globalized trade.Voluntary trade among rational individuals creates value for everyone involved.
Answer:
Sorting statements as either true or false:
True:
Trade helps to create additional growth through specialization.
Voluntary trade among rational individuals creates value for everyone involved.
False:
Comparative advantage is not an important aspect of specialization and trade.
Everyone benefits with globalized trade.
Explanation:
It is not everyone who benefits with globalized trade. Those who benefit most are those countries that have developed some comparative and competitive advantages. Comparative advantage is the fulcrum of international trade. It ensures that countries engage in trade with others in order to export the goods in which they have some advantages over others.
Which type of retailer offers a wide choice of products and high-quality service?
A.
specialty store
B.
off-price retailer
C.
department store
D.
convenience store
Answer:
C
Explanation:
C, a department store.
Answer:
A
Explanation:
I'm 100% sure
XYZ commenced operations on January 1st 2019. The unadjusted Trial Balance for the first year of operations is given below: XYZ limited Unadjusted Trial Balance for the year ended 12/31/2019 Dr Cr Cash 40,000 Supplies 40,000 Accounts receivable 40,000 Equipment 200,000 Notes Payable 60,000 Contributed Capital 40,000 Revenue 300,000 Wages Expenses 60,000 Other Expenses 20,000 Total 400,000 400,000 Notes: Supplies in the warehouse as of 12/31/2019 were determined to be $10,000 Equipment was purchased on 01/01/2019 and will be depreciated over 5 years. There is no salvage value. After the unadjusted trial balance was prepared, Dividends of $30,000 were declared for the year ended 12/31/2019. Prepare an Income Statement and Balance Sheet in good form (i.e. Important to show the headings correctly).
Answer:
XYZ
Income Statement
for the year ended December 31, 2019
Revenue $300,000
Expenses:
Wages Expenses 60,000
Other Expenses 20,000
Supplies Expense 30,000
Depreciation Exp. 40,000 150,000
Net Income $150,000
Dividends declared (30,000)
Retained Earnings $120,000
Balance Sheet
As of December 31, 2019:
Assets:
Current Assets:
Cash 40,000
Supplies 10,000
Accounts receivable 40,000
Total current assets $90,000
Equipment 200,000
less Depreciation (40,000) 160,000
Total assets $250,000
Liabilities + Equity
Liabilities:
Dividends payable 30,000
Notes Payable 60,000
Contributed Capital 40,000
Retained Earnings 120,000
Total liabilities + Equity $250,000
Explanation:
Unadjusted Trial Balance
as of December 31, 2019
Dr Cr
Cash 40,000
Supplies 40,000
Accounts receivable 40,000
Equipment 200,000
Notes Payable 60,000
Contributed Capital 40,000
Revenue 300,000
Wages Expenses 60,000
Other Expenses 20,000
Total 400,000 400,000
Supplies Expense $30,000
Supplies balance = $10,000
Depreciation of Equipment = $40,000 ($200,000/5)
Dividends declared = $30,000
You can purchase a tract of land for $75,000 that you believe you can develop and sell as a residential development. Your development costs are $60,000 to be incurred immediately. You expect to sell all the lots in years 3-5 at a net income of $70,000, $85,000, and $68,000 respectively. Your required rate of return is 12 percent. Do you purchase the tract of land? HTML EditorKeyboard Shortcuts
Answer:
The tract of land should be purchased
Explanation:
To determine if the land should be bought, compare the present value of the income that would be derived from selling the lots to the cost of the land
Total cost of the land = $75,000 + $60,000 = $135,000
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 and 2 = 0
Cash flow in year 3 = $70,000
Cash flow in year 4 = $85,000
Cash flow in year 5 = $68,000
I = 12%
Present value = $142,428.68
The tract of land should be purchased because the present value of the cash flows is greater than the cost of the land
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
8) River City Recycling just paid its annual dividend of $1.15 per share. The required return is 12.3 percent and the dividend growth rate is 0.75 percent. What is the expected value of this stock five years from now
Answer:
P5 = $10.41324736 rounded off to $10.41
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g) or D1 / (1+g)
Where,
D0 is dividend today D0 * (1+g) is the dividend for the next period or D1g is the growth rate r is the required rate of return
To calculate the price of the stock today, we use D1. Similarly, to calculate the price of the stock five years from now or P5, we will use D6.
D6 = D0 * (1+g)^6
D6 = 1.15 * (1+0.0075)^6
D6 = $1.20273007
P5 = 1.20273007 / (0.123 - 0.0075)
P5 = $10.41324736 rounded off to $10.41
Blue Corporation is preparing its December 31, 2017, balance sheet. The following items may be reported as either a current or long-term liability.
1. On December 15, 2017, Blue declared a cash dividend of $4.00 per share to stockholders of record on December 31. The dividend is payable on January 15, 2018. Blue has issued 1,000,000 shares of common stock, of which 50,000 shares are held in treasury.
2. At December 31, bonds payable of $111,437,000 are outstanding. The bonds pay 12% interest every September 30 and mature in installments of $27,859,250 every September 30, beginning September 30, 2018.
3. At December 31, 2016, customer advances were $14,726,000. During 2017, Blue collected $30,502,000 of customer advances; advances of $26,172,000 should be recognized in income.
For each item above, indicate the dollar amounts to be reported as a current liability and as a long-term liability, if any.
Reported as
1. Dividends payable $
Current LiabilityLong-term Liability
2. Bonds payable (September 30, 2018 installment) $
Current LiabilityLong-term Liability
Bonds payable (Other than September 30, 2018 installment) $
Current LiabilityLong-term Liability
Interest payable $
Current LiabilityLong-term Liability
3. Customer advances $
Current LiabilityLong-term Liability
Answer:
Current Liabilities are obligations that a company owes that will be paid or settled within a year.
1. Dividends Payable - Current Liabilities
= (Issued stock - treasury stock) * Dividend per share
= (1,000,000 - 50,000) * 4
= $38,000,000
2. Bonds payable (September 30, 2018 instalment) - Current Liabilities
= $27,859,250
Bonds payable (Other than September 30, 2018 instalment) - Long-term Liability
This debt is not to be paid within a year so is a long-term liability.
= Amount outstanding - Annual instalment
= 111,437,000 - 27,859,250
= $83,577,750
Interest Payable - Current Liabilities
Last paid interest in September so by December 3 months would have elapsed.
= 111,437,000 * 3/12 * 12%
= $3,343,110
3. Customer Advances = Current Liabilities
Advances are liabilities as they represent services owed to customers.
= Beginning Advances + Advances - Advances recognized
= 14,726,000 + 30,502,000 - 26,172,000
= $19,056,000
Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy's Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 times 50 equals the total rooms rented for the year). Tim's cost to clean a room is $12.50. The Duffy's Maid Service quote is $18.50 per room plus a fixed cost of $25, 000 for sundry items such as uniforms with the motel's name. Tim's annual fixed cost for space, equipment, and supplies is $61, 000. Based on the given information related to costs for each of the options, the crossover point for Tim = _________room nights (round your response to the nearest whole number). If the number of room nights is less than the crossover point, then_________ is the best option available to Tim. Based on the given room nights that Tim expects to rent (18, 250), the best option is to___________
Answer:
Based on the given information related to costs for each of the options, the crossover point for Tim = 6,000 room nights (round your response to the nearest whole number). If the number of room nights is less than the crossover point, then OUTSOURCING (Duffy's Maid Service) is the best option available to Tim. Based on the given room nights that Tim expects to rent (18, 250), the best option is to keep doing the service INSOURCING (doing it himself).
Explanation:
Currently, before outsourcing, Tim's total cost = $228,125 + $61,000 = $289,125. On average, he spends $15.84247 per room.
The Duffy's Maid Service offer would represent a total cost of $337,625 + $25,000 = $362,625 for the same occupation level.
the crossover point for Tim:
12.5x + 61,000 = 18.5x + 25,000
36,000 = 6x
x = 6,000 room nights
(6,000 x 12.50) + 61,000 = (6,000 x 18.50) + 25,000 = $136,000
