Answer:
Inventory turnover ratio= 10.5 times
Organic Grocers' performance is LOW compare with that of the grocery industry.
Explanation:
Computation of Inventory turnover ratio using this formula
Inventory turnover ratio = Cost of goods sold / Average inventory
Let plug in the formula
Inventory turnover ratio = $10.5 /$ 1 .00
Inventory turnover ratio= 10.5 times
Therefore Organic Grocers’s inventory turnover is 10.5 times
Based on the information given about grocery industry we were told that they had annual inventory turnover of 14 times while Organic Grocers’s based on the above calculation inventory turnover is 10.5 times which means that Organic Grocers’s performance is low when compared with grocery industry which had inventory turnover of about 14 times.
Therefore Organic Grocers' performance is LOW compare with that of the grocery industry.
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below: Activity Cost Pool Activity Measure Total Cost Total ActivityCustomer deliveries Number of deliveries $ 361,900 4,700Manual order processing Number of manual orders 266,400 3700 Electronic order processing Number of electronic orders 191,540 12200 Line item picking Number of line items picked 518,000 370000 Total selling and administrative expenses $ 1,337,840 Med Max gathered the data below for two of the many hospitals that it servesâCity General and County General: Activity Activity Measure City General County GeneralNumber of deliveries 15 30Number of manual orders 0 60 Number of electronic orders 20 0 Number of line items picked 130 290 Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the total activity costs that would be assigned to City General and County General.
Answer:
Results are below.
Explanation:
First, we need to calculate the predetermined overhead rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Customer deliveries= 361,900/4,700= $77 per delivery
Manual order processing= 266,400/3,700= $72 per manual order
Electronic order processing= 191,540/12,200= $15.7 per electronic order
Line item picking= 518,000/370,000= $1.4 per line item picked
Now, we can allocate costs to each hospital:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
City general:
Customer deliveries= 77*15= 1,155
Electronic order processing= 15.7*20= 314
Line item picking= 1.4*130= 182
Total costs= $1,651
County General:
Customer deliveries= 77*30= 2,310
Manual order processing= 72*60= 4,320
Line item picking= 1.4*290= 406
Total costs= $7,036
Assume, for the sake of this question only, the following: The sale of the business included a warehouse building. The contract for the sale of the business indicated that the warehouse was included "in its present condition" or "as is." Shortly after Sarita took possession of the warehouse, she discovered a walled-in basement room that neither she nor Juan had realized was there. The room was packed full of drums of hazardous materials, which (as far as anyone could tell) had been leaking their contents into the ground for a decade or so. Sarita was going to have to clean up the mess at a considerable ongoing expense. If she seeks to rescind the contract based on the doctrine of mistake, which of the following is true?
Question Completion:
Multiple Choice
The contract will be rescinded, because both Juan and Sarita were mistaken as to a basic assumption that the warehouse was free of hazardous waste.
The contract will be rescinded due to unilateral mistake, but only if Sarita can prove that Juan caused or had reason to know of Sarita's mistaken belief that the warehouse was free of hazardous waste.
The contract will not be rescinded, because Sarita bore this risk of this mistake.
The contract will be rescinded, because both Juan and Sarita were mistaken as to a basic assumption that the warehouse was free of hazardous waste.
The contract will be rescinded due to unilateral mistake, because the contract would be unconscionable to enforce otherwise.
Answer:
The contract will be rescinded, because both Juan and Sarita were mistaken as to a basic assumption that the warehouse was free of hazardous waste.
Explanation:
This mistake is a common mistake because both Juan and Sarita were not aware nor suspected the presence of leaking hazardous waste in the warehouse. In law, a common mistake arises where the mistake is shared by both parties, in this case, Juan and Sarita. A common mistake is fundamental in a contract and directly affects the basic definition of the contract terms.
GUYS EMERGENCY i really need help i have a test tomorrow and the class is principal of education can someone plz help me like i beg whoever
no tension I help to to my following please
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $390,000. During 2021, Halifax sold merchandise on account for $12,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $370,000 in sales for credit, with $204,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 of merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balance at year end. 2. What is the amount of the year-end refund liability after the adjusting entry is recorded
Answer:
Please find attached solution to the above questions
Explanation:
a. Record actual returns in 2021 of Merchandize that was sold prior to 2021.
b. Record actual returns in 2021 of Merchandize that was sold during 2021
c. Adjust the refund liability to its appropriate balance at year end.
2. What is the amount of the year end refund liability after the adjusting entry is recorded.
Please see detailed solution as attached in respect of the above questions.
The best estimate of the total cost to manufacture 5,100 units is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
a. $1,009,560
Explanation:
Note: The full question is attached
Variable portion = (Total overhead for 5,400 units - Total overhead for 4,400 units) / (5,400 units - 4,400 units)
Variable portion = [($68.30)(5,400) - ($74.30)(4400)/(5,400 - 4,400)
Variable portion = (368,820 - 326,920)/1000
Variable portion = 41.9
Total cost for manufacturing 5,100 units = (5,100) ($77.90 + $50.20 +$ 41.90 )+ (368,820 - (5,400)(41.90)
Total cost for manufacturing 5,100 units = $867,000 + $142,560
Total cost for manufacturing 5,100 units = $1,009,560
Timothy wants to cut costs in his company to increase the profitability of production. Which tactic should Timothy utilize to cut the costs and maintain the quality of output?
A.
using shorter transport routes
B.
use low-grade raw materials
C.
overworking the employees
D.
overstocking the input
Answer right gets
Answer:
A
Explanation:
Answer:
A) using shorter transport routes
Explanation:
I took the test, and just got it correct
Indicate in the space provided by each item whether it would appear on the income statement, balance sheet, or retained earnings statement: a. Service Revenue choose a statement b. Utilities Expense choose a statement c. Cash choose a statement d. Accounts Payable choose a statement e. Supplies choose a statement f. Salaries and Wages Expense choose a statement g. Accounts Receivable choose a statement h. Common Stock choose a statement i. Equipment choose a statement j. Advertising Expense choose a statement k. Dividends choose a statement l. Notes Payable choose a statement
Answer:
a. income statement
b. income statement
c. balance sheet
d. balance sheet
e. balance sheet
f. income statement
g. balance sheet
h. balance sheet
i. balance sheet
j. income statement
k. retained earnings statement
l. balance sheet
Explanation:
Income Statement,
Shows the Profit or Loss attained during the Reporting Period. Elements included in it are Revenues/Incomes and Expenses.
Balance Sheet,
Shows the Balance of Assets, Liabilities and Equity as at the Reporting Date.
Retained Earnings Statement
Shows the amount of Profit that is left as a reserve after the payments of dividends and transfers to other reserves.
PLEASE HELP!!! I need to come up with a unique business that would be convenient in a high school. It can be one that sells food, drinks, etc
City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $23,700. In addition, City paid sales tax and title fees of $570 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,360. Required a. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2. (Round your answers to the nearest whole dollar amount.) b. Assume the auto was sold on January 1, Year 3, for $19,672. Determine the amount of gain or loss that would be recognized on the asset disposal. (Round the intermediate calculations to nearest whole dollar amount.)
Answer: See explanation
Explanation:
Note that the depreciable cost was calculated as $17910 and the depreciation per year was:
= $17910/5
= $3582
Also, the book value of the taxi was calculated as:
= Cost - Accumulated depreciation
= $24270 - ($3582 × 2)
= $24270 - $7164
= $17106
Check the attachment for further explanation.
Product White Fragrant Loonzain Total Percentage of total sales 48 % 20 % 32 % 100 % Sales $ 312,000 100 % $ 130,000 100 % $ 208,000 100 % $ 650,000 100 % Variable expenses 93,600 30 % 104,000 80 % 114,400 55 % 312,000 48 % Contribution margin $ 218,400 70 % $ 26,000 20 % $ 93,600 45 % 338,000 52 % Fixed expenses 233,480 Net operating income $ 104,520 Dollar sales to break-even = Fixed expenses = $233,480 = $449,000 CM ratio 0.52 As shown by these data, net operating income is budgeted at $104,520 for the month and the estimated break-even sales is $449,000. Assume that actual sales for the month total $650,000 as planned. Actual sales by product are: White, $208,000; Fragrant, $260,000; and Loonzain, $182,000. Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data.
Answer:
1) contribution format income statement
Product
White Fragrant Loonzain Total
Actual sales $208,000 $260,000 $182,000 $650,000
Variable exp. $62,400 (0.3) $208,000 (0.8) $100,100 (.55) $370,500
Con. margin $145,600 (0.7) $51,200 (0.2) $81,900 (.45) $278,700
Fixed expenses $233,480
Operating income $45,220
2) break even point in dollar sales = fixed expenses / CM ratio = $233,480 / ($278,700 / $650,000) = $544,535.34
How can you leverage your strength in the workplace? How can you strengthen your weakness? Not real good on business please helpp!!!!
Answer:
in a workplace it is about teamwork to accomplish a common goal if you are good at something it makes you an asset to the company you help coworkers in that area if you have a weakness you work with coworkers to educate yourself in that area so that in the future you can do better
Which of the following are benefits of private student loans?
-Can get a better rate with a parent co-signing the Lon
-Applications and processing time is very short, which means students get money faster
-Loans can be larger to cover the actual cost of attendance
-Borrowers can receive additional discounts such as good discount for good grades
-All the above
Answer:
Try all of the above. I hope this helped!
what prportion of revenues is derived from property taxes? do the notes clearly indicate recognition croteria for promary revenue source?
Answer:
17 percent of general revenue.
Explanation:
The government budgets the general fund with the legally adopted budgets. The operating accounts have budgetary counterparts and they are recorded in the respective accounts. The revenue from property tax usually totals to $526 billion which 1% of state owned tax and 17% of general tax revenue.
QUESTION 4. Consider the following game. Player 1’s payoffs are listed first, in bold: Player 2 X Y Player 1 U 100 , 6 800 , 4 M 0 , 0 200 , 1 D 10 , 20 20 , 20 a. Imagine that Player 1 makes a decision first and Player 2 makes a decision after observing Player 1’s choice. Write down every subgame-perfect Nash equilibrium of this game. b. Does the outcome above differ from the Nash equilibrium (if the game were played simultaneously)? Carefully explain why, intuitively, the result differs or does not differ.
Answer:
attached below is remaining part of the detailed solution
A) SPNE = ( M,Y )
B) PSNE = ( U,Y )
Explanation:
A) write down every subgame-perfect Nash equilibrium of the game
attached below
The second player can observe the first player's choice before making his own choice and the first player will always play M knowing that the second player will observe him, also the second player will play Y
Therefor the SPNE of the game will be : ( M,Y )
B) If the game were played simultaneously the results will be different and this is because the second player doesn't have the information of what the first player played
Therefore the PSNE of the game will be : ( U,Y )
a firm has total interest charges of $10,000 per year, sales of $1 million, a tax rate of 40 percent, and a net profit margin of 6 percent. What is the firm's times interest earned ratio
Answer:
10400
Explanation:
The firm's times interest earned ratio is 10.
What is interest?
Someone borrows money during a hard time, they are paying additional amount, which is an interest. In monetary terms, interest is a yearly percentage of the loan amount. Different categories, including simple interest, compound interest, and annual interest, are used to categorize the loan.
The given amount is:
Interest charge = $10,000Sales = $1,000,000Tax rate = 40%Net profit margin = 6%firm's net income:
Net income = sales × net profit margin.
Net income = $1,000,000 × 6%
Net income = $60, 000
earnings before interest and taxes (EBIT)
EBIT = [tex]\frac{Net income}{1 - tax rate}[/tex]
EBIT = [tex]\frac{60,000}{1 - 40}[/tex]% (1 - 40%)
EBIT = 1000, 000
The firm's times-interest-earned ratio (TIE):
TIE = [tex]\frac{EBIT}{Interest charge}[/tex]
TIE = [tex]\frac{100, 000}{10, 000}[/tex]
TIE = 10
As a result, the times interest earned ratio is 10.
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Ledger accounts have been opened using the balances from the adjusted trial balance. Post the closing entries to the general ledger in RED order and calculate ending balances for each account. For accounts that have a zero balance, enter the zero on the normal balance side.Date Accounts and Explanation Debit Credit Dec. 31 Service Revenue 198,900 Retained Earnings 198,900 To close Revenue Date Accounts and Explanation Debit Credit Dec. 31 Retained Earnings 20,000 Dividends 20,000 To close Dividends Date Accounts and Explanation Debit Credit Dec. 31 Retained Earnings 81,000 Selling Expenses 15000 Advertising Expense 8000 Salaries Expense 10000 Depreciation Expense-- 7000 Furniture Utilities Expense 6000 Income Tax Expense 5,000Date Accounts and Explanation Debit Credit Dec. 31 Retained Earnings 81,000 Selling Expenses 15000 Advertising Expense 8000 Salaries Expense 10000 Depreciation Expense-- 7000 Furniture Utilities Expense 6000 Income Tax Expense 5000 Rent Expense 24000 Insurance Expense 4000 Supplies Expense 2,000
Answer: See explanation
Explanation:
The adjusted trial balance is simply defined as an internal document whereby both the titles and balances of the general ledger account when an adjustments have been done are listed.
Even though it isn't a financial statement, it is shown in the financial statements.
The question has been solved and attached.
Social Security benefits are increased each year in proportion to the increase in the CPI, even though most economists believe that the CPI overstates actual inflation. True or False: If the elderly consume the same market basket as other people, then Social Security would provide a decrease in their standard of living. True False Healthcare costs have risen faster than overall inflation. True or False: If the elderly consume a market basket that includes more healthcare than other people, then Social Security necessarily provides an increase in their standard of living. True False
Answer:
1. False
2. False
Explanation:
1. Let's say social security increases as CPI goes up and in the same rate, then the elderly would be better off. in this case here there's is an overstatement of the cost of living. less expensive goods would be substituted for goods in consumer basket as prices rise. so this statement is false
2. this is false because since the healthcare inflation has gone up than what actual inflation was then we would have the adjusted security behind the actual increase in social security that is needed.
Start with the beginning balances for these T-accounts: Accounts Receivable, $100,000, Allowance for Uncollectible Accounts, $14,000. Post the following 2018 transactions to the T-accounts: a. Service revenue of $697,000, all on account b. Collections on account, $714,000 c. Write-offs of uncollectible accounts, $8,000 d. Uncollectible-account expense (allowance method), $11,000. What are the ending balances of Accounts Receivable and Allowance for Uncollectible Accounts?
Answer:
T-accounts:
The ending balances of Accounts Receivable and Allowance for Uncollectible Accounts are:
Accounts Receivable = $75,000
and
Allowance for Uncollectible Accounts = $17,000
Explanation:
Accounts Receivable
Accounts Title Debit Credit
Balance $100,000
Service Revenue 697,000
Cash $714,000
Uncollectible written off $8,000
Balance $75,000
Allowance for Uncollectible Accounts
Accounts Title Debit Credit
Balance $14,000
Uncollectible written off $8,000
Uncollectible Expense 11,000
Balance 17,000
Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $38,600. Cash receipts are expected to be $652,000 and cash payments for purchases are expected to be $614,000. Other cash expenses expected are $28,100 selling and $34,600 general and administrative. The company desires a minimum cash balance at the end of each month of $25,000. If necessary, the company borrows enough cash to meet the minimum using a short-term note. The amount Webster must borrow during April is: Multiple Choice $0. $11,100. $13,900. $101,600. $76,600.
Answer:
$11,100
Explanation:
Calculation for the amount Webster must borrow during April
First step is to find the Preliminary Cash Balance
Preliminary Cash Balance = $38,600 + $652,000 - $614, 000 - $28,100 - $34,600
Preliminary Cash Balance=$13,900.
Second step is to find the amount to be borrowed
The amount to be borrowed = $25,000 - $13,900
The amount to be borrowed= $11,100.
Therefore The amount to be borrowed is $11,100.
Which services would a charitable organization provide? Check all that apply. preserving waterways operating a city aquarium opening an animal shelter inventing a new pet feeder owning a pet store franchise
Answer:
preserving waterways
operating a city aquarium
opening an animal shelter
Explanation:
edge 2020
In this context, the services that a charitable organization will provide includes:
Preserving waterwaysOperating a city aquariumOpening an animal shelterWhat is a charitable organization?This is a nonprofit organization that is created to advance some form of public benefit to the people.
These organization are established by individual or companies with an objectives of philanthropy and promotion of social well-being.
Therefore, the Option A, B and C is correct.
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Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $25,525. Clayborn's May bank statement shows $22,600 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit $ 7,750 Outstanding checks $ 6,300 Bank service fees, not yet recorded by company $ 110 A NSF check from a customer, not yet recorded by the company $ 1,365 The adjusted cash balance should be:
Answer:
$24,050
Explanation:
Calculation for the adjusted cash balance
Using this formula
Adjusted cash balance= Bank balance + Deposits in transit - Outstanding check
Let plug in the formula
Adjusted cash balance= $22,600 + $7,750 - $6,300
Adjusted cash balance= $24,050
Therefore the adjusted cash balance should be $24,050
If you have a bank account whose principal = $1000, and your bank compounds the interest twice a year at an interest rate of 5%, how much money do you have in your account at the year's end?
Answer:
1,050.63
Explanation:
The amount in the bank will be the same as the future value of the principal amount at 5% interest. The formula for calculating compound interest is
FV = PV × (1+r)n
where FV = Future Value
PV = Present Value
r = annual interest rate
n = number of periods
In this case, Pv =$1000, r =5%, n =2. since there two periods in the year, the interest rate will be divided by two, 5%/2= 2.5%
FV= 1000 x (1+2.5/100) 2
Fv = 1000 x ( 1 + 0.025)2
fv = 1000 x 1.050625
fv= 1,050.625
The amount will be $ 1,050.625
erdue Company purchased equipment on April 1 for $36,180. The equipment was expected to have a useful life of three years, or 7,020 operating hours, and a residual value of $1,080. The equipment was used for 1,300 hours during Year 1, 2,500 hours in Year 2, 2,100 hours in Year 3, and 1,120 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method
Answer:
Perdue Company
Depreciation expense for the years ended December 31:
Year 1 Year 2 Year 3 Year 4
a) Straight-line method $11,700 $11,700 $11,700 $0
b) Units-of-activity method $6,500 $12,500 $10,500 $5,600
($5 x 1,300) ($5 x 2,500) ($5 x 2,100) ($5 x 1,120)
c) Double-declining method $24,121 $8,040 $2,939 $0
1st year = $36,180 * 0.6667 = $24,121
2nd year = $12,059 * 0.6667 = $8,040
3rd year = ($36,180 - 24,151 - 8,040 - 1,080) = $2,939
Explanation:
a) Data and Calculations:
April 1 Purchased Equipment = $36,180
Useful life = 3 years or 7,020 operating hours
Residual value = $1,080
Depreciable amount = $35,100
Under Straight-line method, depreciation rate per annum = $11,700 ($35,100/3).
Under the units-of-activity method, the depreciation rate per hour = $5 ($35,100/7,020).
Under the double-declining method, the depreciation percent = 0.6667 (100/3) * 2.
The double-declining method does not consider the residual value at the beginning, but at the end of the computation.
Roger has just lost a lawsuit and has agreed to make equal annual payments of $15,500 for the next 7 years with the first payment due today. The value of this liability today is $88,000. What is the interest rate on the payments
Answer:
7.615%
Explanation:
we can use the present value of an annuity formula to determine the interest rate:
present value of an annuity due = (payment / i) x (1 + i) x {1 - [1 / (1 + i)ⁿ]}
80,000 = (15,500/ i) x (1 + i) x {1 - [1 / (1 + i)⁷]}
1 - [1 / (1 + i)⁷] = 80,000 / [(15,500/ i) x (1 + i)]
1 - 80,000 / [(15,500/ i) x (1 + i)] = 1 / (1 + i)⁷
(1 + i)⁷ = 1 / {1 - 80,000 / [(15,500/ i) x (1 + i)]}
(1 + i)⁷ = 1 / {[(15,500/ i) x (1 + i) - 80,000] / [(15,500/ i) x (1 + i)]}
1 + i = ⁷√(1 / {[(15,500/ i) x (1 + i) - 80,000] / [(15,500/ i) x (1 + i)]})
1 + i = ⁷√(1 / {[1/i - 64,500] / [(15,500/ i + 15,500)]})
...
after a lot of complicated math,
1 + i = 1.07615
i = 0.07615 = 7.615%
Although GDP is a reasonably good measure of a nation’s output, it is not an accurate measure of a nation’s well-being. Which of the following options are either not accounted for or are measured inaccurately in calculations of GDP for the United States? Check all that apply. The variety of goods available to consumers The parts of a car manufactured in the United States that are produced in Canada The value of babysitting services, when the babysitter is paid in cash and the transaction isn’t reported to the government The loss of enjoyment people incur when scenic land is converted to commercial use Federal government paychecks to soldiers
(Table) Germany has a comparative advantage in producing
Sweaters
Germany 6
Greece
4
Skirts
12
20
sweaters and skirts.
skirts only.
sweaters only.
neither good.
Answer:
sweaters only.
Explanation:
Comparative advantage is the ability of a firm or country to produce products using fewer resources than others. An institution or nation with a comparative advantage in producing certain goods or services will sell them at a lower price compared to others.
Given the same quantity of inputs, a country or company with a comparative advantage will produce more output units than the rivals. Germany has a comparative advantage over Greece in making sweaters. With the same inputs, Germany will produce six sweaters while Greece will produce four. However, Greece has a comparative advantage over Germany in making skirts.
Which of the following mechanisms would be most likely to help motivate managers to act in the best interests of shareholders? a. Take actions that reduce the possibility of a hostile takeover. b. Decrease the use of restrictive covenants in bond agreements. c. Increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries. d. Elect a board of directors that allows managers greater freedom of action.
Answer:
c. Increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries.
Explanation:
Agency problem arises when the interest of shareholders and managers are at odds.
BY increasing the proportion of compensation from stock options, managers would be more interested taking actions that would increase stock value because if stock value increases, managers income would also increase.
Which of the following best describes the main difference between B2B and B2C transactions? B2B transactions involve transactions where the buyers and sellers are both businesses, while B2C involves transactions between businesses and consumers. B2B transactions focus on financial transactions while B2C e-commerce focuses on the sale of manufactured goods. B2B transactions refer to business between nonprofit organizations while B2C e-commerce is carried out by business firms seeking to earn a profit. B2B transactions involve sales in foreign markets while B2C e-commerce is restricted to domestic markets.
Answer: B2B transactions involve transactions where the buyers and sellers are both businesses, while B2C involves transactions between businesses and consumers.
Explanation:
Business-to-business transactions are simply regarded as the transactions that takes place between one business and another business. This can occur when the business is looking for inputs for its production process.
Business-to-consumer transactions simply regarded as the transactions that takes place between a business and the customers. This occurs when a business sells its goods or services to the customers directly without the goods passing through the middlemen.
Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions.) Acquired $3,200 cash from issuing common stock. Borrowed $2,300 from a bank. Earned $3,200 of revenues. Incurred $2,420 in expenses. Paid dividends of $420. Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions.) Acquired an additional $600 cash from the issue of common stock. Repaid $1,370 of its debt to the bank. Earned revenues, $4,600. Incurred expenses of $2,790. Paid dividends of $760. What was the amount of retained earnings that will be reported on Lexington's balance sheet at the end of Year 1?
Answer:
Retained Earnings Balance at end of Year 1 = $360
Explanation:
First we need to determine the profit/loss for the year as part of the retained earnings calculation.
Lexington Company
Income Statement for the year ended - Year 1
Revenue Earned $3,200
Less Expenses ($2,420)
Net Income / (Loss) $780
Then we calculate the Retained Earnings Balance
Retained Earnings Statement
Beginning Retained Earnings Balance $ 0
Add Profit earned during the year $780
Less Dividends ($420)
Ending Retained Earnings Balance $360
Texteriles Company creates different types of bolts of cloth. These bolts of cloth are made on the same machinery. The textile machines have the capacity of 3,600 hours per month. Texteriles is considering producing three different types of cloth: denim, chenille, and gauze, with contribution margins per bolt of $14, $22, and $9, respectively. Texteriles knows it can sell only a total of 6,000 bolts of denim, 2,000 bolts of chenille, and/or 1,200 bolts of gauze. A bolt of each type of cloth requires a different amount of machine time as follows: denim takes 0.5 machine-hours, chenille takes 1 machine-hour, and gauze takes 0.3 machine-hours. What combination of products will maximize the profits of Texteriles
Answer:
Combination of products shall be:
Denim = 6,000 bolts
Chenille = 240 bolts
Gauze = 1,200 bolts
Explanation:
As provided the machine hours are limited thus, the constraint is machine hours.
Accordingly contribution per machine hour shall be computed.
Denim has contribution of $14 for each 0.5 machine hour, thus, contribution per hour = [tex]\frac{14}{0.5} = 28[/tex]
Chenille has contribution of $22 per machine hour
Gauze has contribution of $9 per 0.3 hours, thus contribution per machine hour = [tex]\frac{9}{0.3}[/tex] = $30
According to contribution per hour, ranking of products shall be
Gauze I
Denim II
Chenille III
Therefore, bolts of gauze to be produced = 1,200 that is maximum
Hours required = 1,200 [tex]\times[/tex] 0.3 = 360
Hours remaining = 3,600 - 360 = 3,240
Bolts of Denim to be produced = 6,000 that is maximum
Hours required = 6,000 [tex]\times[/tex] 0.5 = 3,000
Hours remaining = 3,240 - 3,000 = 240
Bolts of Chenille that can be produced = [tex]\frac{240\ hours}{1\ bolt\ per\ hour}[/tex] = 240 bolts
Total contribution in this case
= (1,200 [tex]\times[/tex] $9) + (6,000 [tex]\times[/tex] $14) + (240 [tex]\times[/tex] $22)
= ($10,800 + $84,000 + $5,280)
= $100,080
