Master Business with Fun Quizzes & Brain Teasers!

Fill in the missing amounts in each of the eight case situations below.Required: A. Assume that only one product is being sold in each of the four following case situations: Case Units Sales Variable Contribution Margin Fixed Net Operating Sold Expenses Per Unit Expenses Income Loss 1 15,000 $180,000 $120,000 $4 $50,000 $______2 4,000 $100,000 $60,000 $10 $32,000 $8,0003 10,000 $______ $70,000 $13 $_______ $12,0004 $6,000 $300,000 $210,000 $15 $100,00 $(10,000)B. Assume that more than one product is being sold in each of the four following case situations:Case Sales Variable Average Contribution Fixed Net Operating Expenses Margin Ratio Expenses income (Loss)1 $500,000 $______ 20% $______ $7,0002 $400,000 $260,000 35% $100,000 $40,0003 $______ $______ 60% $130,000 $20,0004 $600,000 $420,000 _______% $______ $(5,000)
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Find the nominal annual rate of interest compounded monthly if $1200 accumulates to $1618.62 in five years.
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Matt is planning to buy a house. Before seeking a mortgage loan, he orders a copy of his credit report. Matt can get: a) one copy a year for about $30 b) one free copy a year c) free copies whenever he likes
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Big Bad Wolf Masonry Co. agreed to build a brick home for Johnny Little Pig, the Third by November 1. Big Bad Wolf and Johnny Pig could not predict Pig's losses of Big Bad Wolf failed to complete the house on time. They estimated that Johnny Pig would lose $150 in storage and rental fees per day if the building was not completed on time. The contract contained a liquidated damage clause. The clause required Big Bad Wolf to pay liquidated damages of $150 per day if the work was completed late. Big Bad Wolf finished the home twelve days late. Johnny Pig actually lost $1,000 because of the breach. Is the liquidated damage amount stated in the contract between Big Bad Wolf Masonry and Johnny Pig a valid or invalid liquidated damage clause and why
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ABC Services reported the following transactions for September, 2013. A) The owner opened the business with a capital contribution of $23,500 cash. It was credited to Capital. B) The business purchased office equipment for $11,500. The business paid $2,500 down and put the balance on a note payable. C) The business paid a utility bill for $980 cash. D) The business paid $2,000 cash for September rent. E) The business had sales of $15,000 in September. Of these sales, 60% were cash sales, and the balance was credit sales. F) The business paid $9,700 cash for office furniture. What is the net income for September, 2013
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Customer A. Smith owed Stonebridge Electronics $325. On April 27, 2016, Stonebridge determined this account receivable to be uncollectible and written off the account. The company uses the direct write-off method. On July 15, 2016, Stonebridge received a check for $325 from the customer. How should the July 15, 2016 transaction be recorded
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Under which conditions would a plant manager elect to use a fixed-order quantity model as opposed to a fixed-time period model? What are the disadvantages of using a fixed-time period ordering system?
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A buyer of an installment contract buys the property on a five- year contract. At the end of the second year, the buyer of the installment decides to sell the property to someone else because he is too busy to manage it. Can the buyer legally do this?
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Use the 2012 segment information provided by BMW and Volkswagen to an- swer the following questions: a. Which company is more multinational? b. Which company is more internationally diversified? c. In which region(s) of the world did each company experience the greatest growth from 20112012? the greatest decline?
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Sandra Morris is presently leasing a small business computer from Eller Office Equipment Company. The lease requires 10 annual payments of $11,000 at the end of each year and provides the lessor (Eller) with an 11% return on its investment. You may use the following 11% interest factors: 9 Periods 10 Periods 11 PeriodsFuture Value of 1 1.999 2.15892 2.33164Present Value of 1 0.50025 0.46319 0.42888Future Value of Ordinary Annuity of 1 12.48756 14.48656 16.64549Present Value of Ordinary Annuity of 1 6.24689 6.71008 7.13896Present Value of an Annuity Due of 1 6.74664 7.24689 7.71008Required:a. Assuming the computer has a ten-year life and will have no salvage value at the expiration of the lease, what was the original cost of the computer to Eller? SHOW YOUR WORK.b. What amount would each payment be if the ten annual payments are to be made at the beginning of each period? SHOW YOUR WORK.
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Hall 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 1,000Materials costs $7,100Conversion costs $6,400Percent complete with respect to materials 65%Percent complete with respect to conversion 30%Units started into production during the month 13,600Units transferred to the next department during the month 12,300Materials costs added during the month $137,224Conversion costs added during the month $215,050Ending work in process inventory: Units in ending work in process inventory 2,300Percent complete with respect to materials 60%Percent complete with respect to conversion 25%The total cost transferred from the first processing department to the next processing department during the month is closest to:______a. $356,256b. $380,435c. $341,325d. $349,856
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A review of the ledger of Remina Company at December 31, 2017, produces the following data pertaining to the preparation of annual adjusting entries. 1. Prepaid Insurance $10,680. The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on April 1, 2016, for $8,640. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on January 1, 2017, for $4,200. This policy has a term of 2 years. 2. Unearned Rent Revenue $345,600. The company began subleasing office space in its new building on November 1. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease.Date Term (in months) Monthly Rent Number of LeasesNov. 1 9 $5,400 4Dec. 1 6 $8,400 33. Notes Payable $130,000. This balance consists of a note for 9 months at an annual interest rate of 9%, dated November 1.4. Salaries and Wages Payable $0. There are 9 salaried employees. Salaries are paid every Friday for the current week. 5 employees receive a salary of $750 each per week, and 4 employees earn $500 each per week. Assume December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December.Required:Prepare the adjusting entries at December 31, 2017.
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Round Hammer is comparing two different capital structures: An all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 200,000 shares of stock outstanding. Under Plan II, there would be 150,000 shares of stock outstanding and $3 million in debt outstanding. The interest rate on the debt is 8 percent, and there are no taxes.a. If EBIT is $675,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)b. If EBIT is $925,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)c. What is the break-even EBIT? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
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Appling Enterprises issued 10% bonds with a face amount of $560,000 on January 1, 2021. The bonds sold for $515,071 and mature in 2040 (20 years). For bonds of similar risk and maturity the market yield was 11%. Interest is paid semiannually on June 30 and December 31. Appling determines interest expense at the effective rate. Appling elected the option to report these bonds at their fair value. The fair values of the bonds at the end of each quarter during 2021 as determined by their market values in the over-the-counter market were the following: March 31 June 30 September 30 December 31 $540,000 520,000 515,000 522,000 General (risk-free) interest rates did not change during 2021. Required: 1. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the March 31 quarterly financial statements? 2. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the June 30 quarterly financial statements? 3. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the September 30 quarterly financial statements? 4. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the December 31 annual financial statements? (For all requirements, do not round your intermediate calculations.)
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Tri Fecta, a partnership, had revenues of $364,000 in its first year of operations. The partnership has not collected on $45,100 of its sales and still owes $38,400 on $220,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $28,300 in salaries. The partners invested $46,000 in the business and $25,000 was borrowed on a five-year note. The partnership paid $3,000 in interest that was the amount owed for the year and paid $9,400 for a two-year insurance policy on the first day of business. Ignore income taxes.Compute the cash balance at the end of the first year for Tri Fecta.a) $ 332,110b) $ 161,640c) $ 166,290d) $ 155,440
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A purely competitive wheat farmer can sell any wheat he grows for $20 per bushel. His five acres of land show diminishing returns because some are better suited for wheat production than others. The first acre can produce 1,000 bushels of wheat, the second 900, the third 800, and so on.How many bushels will each of the farmer's five acres produce? How much revenue will each acre generate? What are the TR and the MR for each acre?
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g Judy recently purchased her first home for $220,000. She made a down payment of $20,000, and financed the balance over 15 years, at 9% interest. If Judy's first payment is due on October 1 of this year, approximately how much interest will she pay in this year
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Accounts payable are: Multiple Choice Long-term liabilities. Estimated liabilities. Amounts owed to suppliers for products and/or services purchased on credit. Always payable within 30 days. Not usually due on specific dates.
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True or False: In the long run, this increase in health care benefits will make faculty positions less attractive than other jobs. (Hint: Consider how the indifference principle applies to this occupation in the long run.)
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The Tinslow Co. has 125,000 shares of stock outstanding at a market price of $93 a share. The company has just announced a 5-for-2 stock split. How many shares of stock will be outstanding after the split
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The average cost method of process costing differs from the FIFO method of process costing in that the average cost method: Group of answer choices Requires that ending work in process inventory be stated in terms of equivalent units of production. b. Can be used under any cost-flow assumption. c. Does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production. d. Considers the ending work in process inventory only partially complete.
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Rogers Inc. has provided the following data for the month of June. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Work in process Finished goods Cost of goods sold Total Direct materials $2,380 16790 43930 $63,100 Direct labor 1710 16060 42020 $59,790 Manufacturing overhead applied 1520 9880 26600 $38,000 Total $5,610 $42,730 $112,550 $160,890 Manufacturing overhead for the month was underapplied by $1,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. The work in process inventory at the end of June after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to: a. $5,570 b. $5,575 c. $5,645 d.$5,650
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Skolits Corp. issued 20-year bonds 2 years ago at a coupon rate of 8.9 percent. The bonds make semiannual payments. If these bonds currently sell for 110 percent of par value, what is the YTM
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A project with an initial investment of $451,700 will generate equal annual cash flows over its 8-year life. The project has a required return of 8.9 percent. What is the minimum annual cash flow required to accept the project
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