Answer:
The budgeted accounts receivable balance at the end of February is closest to: $4,500.
Explanation:
Prepare a Accounts Receivable Budget for January and February
January February
Balance b/d $0 $4,200
Credit Sales $7,000 $7,500
Cash Received (40%) ($2,800) ($3,000)
Cash Received (60%) $0 ($4,200)
Balance c/d $4,200 $4,500
Conclusion:
Therefore, the budgeted accounts receivable balance at the end of February is closest to: $4,500
Factory rent -$ 3,130- Product - MOH - Fixed
Company advertising- 1,060- Period - Variable
Wages paid to assembly workers -30,500- Product - DL - Variable
Depreciation for salespersons’ vehicles- 2,200- Period - Fixed
Screws- 535- Product - DM - Variable
Utilities for factory -845-Product - MOH - Variable
Assembly supervisor’s salary -3,580- Product - MOH - Fixed
Sandpaper- 185- Product - MOH - Variable
President’s salary -5,180- Period - Fixed
Plastic tubing- 4,050- Product - MOH - variable
Paint -285- Product - DM - Variable
Sales commissions- 1,350- Period - Variable
Factory insurance- 1,170- Product - MOH - fixed
Depreciation on cutting machines- 2,000- Product - MOH - Fixed
Wages paid to painters -7,550- Product - DL - Variable
To know more about the variable costs, and the fixed cost, refer to the link below:
Answer:
Factory rent $ 3,130: Product - MOH - Fixed
Company advertising 1,060: Period - Variable
Wages paid to assembly workers 30,500: Product - DL - Variable
Depreciation for salespersons’ vehicles 2,200: Period - Fixed
Screws 535: Product - DM - Variable
Utilities for factory 845: Product - MOH - Variable
Assembly supervisor’s salary 3,580: Product - MOH - Fixed
Sandpaper 185: Product - MOH - Variable
President’s salary 5,180: Period - Fixed
Plastic tubing 4,050: Product - MOH - variable
Paint 285: Product - DM - Variable
Sales commissions 1,350: Period - Variable
Factory insurance 1,170: Product - MOH - fixed
Depreciation on cutting machines 2,000: Product - MOH - Fixed
Wages paid to painters 7,550: Product - DL - Variable
Explanation:
- Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.
- Direct labor is production or services labor that is assigned to a specific product, cost center, or work order.
- Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.
- Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.
- Product costs are the direct costs involved in producing a product. A manufacturer, for example, would have production costs that include: Direct labor, Raw materials, Manufacturing supplies, Overhead that's directly tied to the production facility such as electricity.
- Variable cost is a corporate expense that changes in proportion to production output.
- Fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.
In this exercise:
Factory rent $ 3,130: Product - MOH - Fixed
Company advertising 1,060: Period - Variable
Wages paid to assembly workers 30,500: Product - DL - Variable
Depreciation for salespersons’ vehicles 2,200: Period - Fixed
Screws 535: Product - DM - Variable
Utilities for factory 845: Product - MOH - Variable
Assembly supervisor’s salary 3,580: Product - MOH - Fixed
Sandpaper 185: Product - MOH - Variable
President’s salary 5,180: Period - Fixed
Plastic tubing 4,050: Product - MOH - variable
Paint 285: Product - DM - Variable
Sales commissions 1,350: Period - Variable
Factory insurance 1,170: Product - MOH - fixed
Depreciation on cutting machines 2,000: Product - MOH - Fixed
Wages paid to painters 7,550: Product - DL - Variable
(B) One tool of corporate governance is how the company's charter affects the likelihood of a takeover.
(C) One tool of corporate governance is a company's tax avoidance strategy.
(D) Creditors have a claim on a firm's earning stream through the dividend payments they receive.
(E) One tool of corporate governance is stock repurchases.
Answer:
Correct Answer is "A"
(A) One tool of corporate governance is choosing a good investment banker.
A bond is an 'I owe you' note where the lender (the investor) lends capital to the borrower (the issuing entity) in return for a bond and gets paid back the face value plus interest at a predetermined rate. Legacy in this case has issued $570,000 worth of bonds with an 8.5% interest rate for four years, selling them at a rate of $508,050 when the current market rate is 12%. The price of a bond is influenced by current market rates.
The subject of the question pertains to bonds, which are part of the financial market. A bond is an 'I owe you' note that an investor buys in exchange for lending capital to an entity, like a corporation or government. In this scenario, Legacy is issuing bonds of $570,000 with an 8.5% interest rate for four years, that pay on a semiannual basis. These bonds are sold at $508,050 when the market rate is 12%.
When buying a bond, an investor becomes the lender and the issuing entity becomes a borrower who agrees to pay back the face value of the bond at maturity, plus an agreed-upon interest rate. As mentioned above, the bond has a coupon rate, usually semi-annual, and a maturity date when the borrower will pay back its face value and last interest payment. By these parameters of face value, interest rate, and maturity date, a buyer can calculate a bond's present value. This value may not be the same as the bond's face value.
If you consider a market rate now at 12%, you know that you could invest $964 in an alternative investment and receive $1,080 a year from now; or $964(1 + 0.12) = $1080. This means you would not pay more than $964 for the original $1,000 bond. Therefore, the price of a bond is influenced by the current market rate.
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A bond is an "I owe you" note that an investor receives in exchange for money. Legacy issued bonds at a price lower than the face value due to higher market interest rates.
In financial terms, a bond is an "I owe you" note that an investor receives in exchange for money. The bond has a face value, a coupon rate, and a maturity date. Combining these elements and market interest rates, a buyer can compute a bond's present value. Legacy issued $570,000 of 8.5%, four-year bonds at $508,050 when the market rate is 12%. This means that the present value of the bonds is less than the face value because the market rate is higher than the coupon rate.
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Answer:
The correct answer is $9,850,000
Explanation:
The Enterprise fund which will be reported, total other financing sources of the amount is computed as:
= Face Value - Cost of issuance
where
Face Value is $10,000,000
Cost of issuance is $150,000
Putting the values above:
= $10,000,000 - $150,000
= $9,850,000
Note: Premium will not be considered as it is asked for when the bonds are issued.
The total other financing sources reported by the Enterprise Fund would be $9,850,000.
The correct answer is $9,850,000.
When the city's Enterprise Fund issued revenue bonds with a face value of $10,000,000, it added a 2% premium to the face value. The premium is calculated by multiplying the face value by the premium rate, which is 2% in this case. So, the premium amount is $10,000,000 * 2% = $200,000.
The issuance costs are additional expenses incurred in the process of issuing the bonds. In this case, the issuance costs totaled $150,000.
Therefore, the total other financing sources reported by the Enterprise Fund would be $10,000,000 - $200,000 - $150,000 = $9,850,000.
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Answer:
Signature Appliance Group
The environmental force that caused the company to change its product features is:
the Social and Cultural Environment.
Explanation:
The Social and Cultural Environment refers to the changing needs of customers in South America as a result of the values, attitudes, and preferred styles of consumers. These are always in a state of flux every year. Since customers preferred to grill outside rather than inside their kitchens, adding the grill unit in the ovens that the company sells in South America will not enable customers to choose its ovens over competitors'. To respond to the stated needs of its customers, the grill must be removed, thereby reducing the cost of the ovens.
The change made by Signature Appliance Group in removing the grill unit from their ovens sold in South America was influenced by the consumer environment force. This change was made in response to consumer preferences for outdoor grilling, thus altering the physical aspects of their product.
In the context of the scenario provided, it was the consumer environment force that influenced Signature Appliance Group to remove the grill unit from its ovens sold in South America. Consumer environment force pertains to changes in consumer preferences, habits, or buying behaviors. The company observed that its customers in South America preferred outdoor grilling and as a result, they opted not to use the grilling feature of the oven. Hence, the company decided to alter the physical aspects of its product by removing the grill from the ovens. Such alteration represents a response to consumer demands, thereby aiming to improve customer satisfaction and product relevance. Expounding on physical aspects, these are tangible characteristics or features of a product that cater to consumer needs and preferences, as shown in the example of nonstick surface, unbreakable bottle, and other such elements.
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