Master Business with Fun Quizzes & Brain Teasers!

Hawaiian Specialty Foods purchased equipment for $16,000. Residual value at the end of an estimated four-year service life is expected to be $1,600. The machine operated for 2,100 hours in the first year, and the company expects the machine to operate for a total of 15,000 hours. Calculate depreciation expense for the first year using each of the following depreciation methods: (1) straight-line, (2) double-declining-balance, and (3) activity-based. (Do not round your intermediate calculations.)
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Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight-line basis since 2017, when it was acquired at a cost of $10.8 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the beginning of 2021.Required:Prepare the appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate.
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Suppose there are four additional suppliers of cola in the market. When the price per gallon of cola is $1.50, the first supplier is willing to sell 10 million gallons, the second supplier is willing to sell 2 million gallons, the third supplier is willing to sell 5 million gallons, and the fourth supplier is willing to sell 0 gallons. The market quantity supplied of cola when the price is $1.50 is:______.a. 17 million gallons. b. 20 million gallons. c. 30 million gallons. d. 0 gallons.
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Which of the following factors of production is unlikely to be found in acommand economy?
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Net Present Value and Competing Projects For discount factors use Exhibit 12B.1 and Exhibit 12B.2. Spiro Hospital is investigating the possibility of investing in new dialysis equipment. Two local manufacturers of this equipment are being considered as sources of the equipment. After-tax cash inflows for the two competing projects are as follows: Year Puro Equipment Briggs Equipment 1 $320,000 $120,000 2 280,000 120,000 3 240,000 320,000 4 160,000 400,000 5 120,000 440,000 Both projects require an initial investment of $560,000. In both cases, assume that the equipment has a life of 5 years with no salvage value. Required: Round present value calculations and your final answers to the nearest dollar. 1. Assuming a discount rate of 14%, compute the net present value of each piece of equipment. Puro equipment: $ Briggs equipment: $ 2. A third option has surfaced for equipment purchased from an out-of-state supplier. The cost is also $560,000, but this equipment will produce even cash flows over its 5-year life. What must the annual cash flow be for this equipment to be selected over the other two
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You are hired by the Chair of the Federal Reserve to manage the trading desk at the New York Fed and the Chair tells you that he wants you to increase the money supply (M1) by 33.33 percent. They warn you to be careful because in these uncertain times, the money multiplier tends to become very unstable. They suggest that you stay closely connected with the banking sector and then gives you a list of phone numbers to do so. Note that in this problem we are targeting the growth rate of M1. Reserve Market Initial Conditions (Scenario A) rr/D= .10 C = 500 billion D = 2000 billion ER = 0 (not a typo) M = C + D Use the initial conditions IN SCENARIO A above to answer #1-3. What is the MB?
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A building with a book value of $54,000 is sold for $63,000 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of a.$63,000 from investing activities and a deduction from net income of $9,000 b.$9,000 from investing activities c.$54,000 from investing activities d.$54,000 from investing activities and an addition to net income of $9,000
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The controller of a small private college is complaining about the amount of work she is required to do at the beginning of each month. The president of the university requires the controller to submit a monthly report by the fifth day of the following month. The monthly report contains pages of financial data from operations. The controller was heard saying, "Why does the president need all this information? He probably doesn't read half of the report. He's an old English professor and probably doesn't know the difference between a cost and revenue.a. What is the probable role of the monthly report?b. What is the controller's responsibility with respect to a president who doesn't know much accounting?
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Carlos had been thinking of setting up a graphic design service business for quite some time. He knew that he wanted to work at home and he now had several leads for prospective customers. He also knew how much money he needed to make to cover his expenses. He had several ways to approach his new business including working by himself or taking on a partner. Both ways needed more thought to determine what each would involve. In terms of the rational decision-making model, Carlos is in which of the following steps?A. Defining the situation.B. Describing and collect needed information.C. Develop alternatives.D. Develop agreement among those involved.
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Natures Way Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The garden tool is expected to generate additional annual sales of 8,600 units at $46 each. The new manufacturing equipment will cost $167,600 and is expected to have a 10-year life and $12,800 residual value. Selling expenses related to the new product are expected to be 4% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis:Direct labor $ 8.00Direct materials 22.00Fixed factory overheaddepreciation 8.40Variable factory overhead 3.60 Total $42.00Determine the net cash flows for the first year of the project, Years 29, and for the last year of the project. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar.Cornucopia Inc.Net Cash Flows Year 1 Years 2-9 Last YearInitial investment $ Operating cash flows: Annual revenues $ $ $Selling expenses Cost to manufacture Net operating cash flows $ $ $Total for Year 1 $ Total for Years 2-9 $ Residual value Total for last year $
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In 2010, the BowWow Company purchased 11,752 units from its supplier at a cost of $ 11.73 per unit. BowWow sold 18,971 units of its product in 2010 at a price of $ 24.86 per unit. BowWow began 2010 with $ 864,593 in inventory (inventory is carried at a cost of $ 11.73 per unit). Using this information, compute BowWow's 2010 ending inventory balance (in dollars).
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Beginning and ending work in process inventories are negligible, so they are omitted from the cost of production report. The flavor changeover cost represents the cost of cleaning the bottling machines between production runs of different flavors. Determine the cost per case for each of the four flavors. Round your answers to two decimal places.
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In the business gift-giving world, if a company gives a gift to a potential client for the purpose of influencing their behavior in their favor, it is unethical. What are the three criteria and dimensions of evaluating a business gift? Multiple Choice Question
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Welfare analysis: Basic concepts Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Statement Consumer Surplus Producer Surplus Neither A local store was having a sale on laptops, so I bought a used laptop for my brother. I sold a jersey sweater for $32, even though I was willing to go as low as $23 in order to sell it. Even though I was willing to pay up to $46 for a used textbook, I bought a used textbook for only $37.
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Entries for Materials Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a job order cost system. Balances on April 1 from the materials ledger are as follows: Fabric $19,100 Polyester filling 5,700 Lumber 42,800 Glue 1,800 The materials purchased during April on account are summarized from the receiving reports as follows: Fabric $96,600 Polyester filling 134,300 Lumber 264,700 Glue 9,200 Materials were requisitioned to individual jobs as follows: Fabric Polyester Filling Lumber Glue Total Job 601 $34,800 $43,800 $117,300 $195,900 Job 602 26,800 47,700 102,700 177,200 Job 603 24,700 32,400 57,100 114,200 Factory overhead-indirect materials $4,500 4,500 Total $86,300 $123,900 $277,100 $4,500 $491,800 The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a. Journalize the entry to record the purchase of materials in April. If an amount box does not require an entry, leave it blank.
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Watson Company has 5,000 shares of $5 par, 3% preferred stock outstanding and 25,000 shares of $2 par common stock outstanding. The preferred stock is cumulative, and no dividends have been paid for the past two years. If the company wishes to distribute $2 per share to the common stockholders, what is the total amount of dividends that must be paid in the current year? a. $50,000 b. $50,750 c. $2,250 d. $51,500
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The fiscal year-end unadjusted trial balance for Collins Company is found on the trial balance tab. Collins Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: depreciation expensestore equipment, sales salaries expense, rent expenseselling space, store supplies expense, advertising expense. It categorizes the remaining expenses as general and administrative. Descriptions of items that require adjusting entries on January 31 follow. A) Store supplies still available at fiscal year-end amount to $2,950. B) Expired insurance, an administrative expense, for the fiscal year is $1,880. C) Depreciation expense on store equipment, a selling expense, is $6,300 for the fiscal year. D) To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,560 of inventory is still available at fiscal year-end.
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The following are the financial statements of Nosker Company.NOSKER COMPANYComparative Balance SheetsDecember 31Assets 2017 2016Cash $37,200 $19,800Accounts receivable 33,000 18,700eInventory 30,400 20,400Equipment 59,300 78,000Accumulated depreciation--equipment (29,300 ) (23,300 )Total $130,600 $113,600Liabilities and Stockholders' Equity Accounts payable $28,700 $ 16,000Income taxes payable 7,300 8,300Bonds payable 27,400 33,100Common stock 18,200 14,300Retained earnings 49,000 41,900Total $130,600 $113,600NOSKER COMPANYIncome StatementFor the Year Ended December 31, 2017Sales revenue $242,900Cost of goods sold 175,600Gross profit 67,300Operating expenses 24,800Income from operations 42,500Interest expense 4,000Income before income taxes 38,500Income tax expense 7,500Net income $31,000Additional data:1. Dividends declared and paid were $23,900.2. During the year equipment was sold for $9,600 cash. This equipment cost $18,700 originally and had a book value of $9,600 at the time of sale.3. All depreciation expense, $15,100, is in the operating expenses.4. All sales and purchases are on account.Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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SHERIDAN COMPANY SHERIDAN COMPANY Income Statements For the Years Ended December 31 2022 2021Sales revenue $896,000 $796,000 Cost of goods sold 648,000 574,000 Gross profit 248,000 222,000 Operating expenses 189,000 165,000 Net income $ 59,000 $ 57,000 Additional information: 1. Inventory at the beginning of 2021 was $115,000. 2. Accounts receivable (net) at the beginning of 2021 were $88,000. 3. Total assets at the beginning of 2021 were $639,000. 4. No common stock transactions occurred during 2021 or 2022. 5. All sales were on account.
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DS Unlimited has the following transactions during August. August 6 Purchases 78 handheld game devices on account from GameGirl, Inc., for exist240 each, terms 1/10, n/60. August 7 Pays exist440 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GameGirl eight game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 58 game devices purchased on August 6 for exist260 each to customers on account. The total cost of the 58 game devices sold is exist14, 145.37. Required: Record the transactions of DS Unlimited, assuming the company uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)
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Heinz Ketchup holds 54% of the U.S. ketchup market, and nine of every 10 restaurants feature Heinz ketchup. However, Heinz has learned that many restaurant owners simply refill Heinz bottles with cheaper ketchup, thereby capitalizing on the Heinz name without the cost. One restaurant owner explains, "Its just ketchup. The customers dont notice." There are no specific health regulations that apply, and owners are not breaking the law by refilling the bottles. Do you think this practice is ethical?
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The management of Truelove Corporation is considering a project that would require an initial investment of $321,000 and would last for 7 years. The annual net operating income from the project would be $82,000, including depreciation of $42,000. At the end of the project, the scrap value of the project's assets would be $27,000. (Ignore income taxes.)Required:1. Determine the payback period of the project.2. What will be an ideal response?
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Charles Schwab Corporation is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions): Investor Advisor Services ServicesRevenues $4,771 $4,597 Income from operations 1,681 1,660 Depreciation 171 154Estimate the contribution margin for each segment, assuming that depreciation represents the majority of fixed costs. Investor Services Advisor Services (in millions) (in millions) Estimated contribution margin $1,681 $1,660 If Schwab decided to sell its Advisor Services business to another company, estimate how much operating income would decline under the following assumptions. Assume the fixed costs that serve the Advisor Services business would not be sold but would be used by the other sector: $1,660 million.Assume the fixed assets were "sold": $ 1,506 million
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On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022. Development costs were incurred as follows: September 30 through December 31, 2021 $ 2,300,000 January 1 through February 28, 2022 900,000 March 1 through April 30, 2022 500,000 Athens expects a useful life of four years for the software and total revenues of $6,000,000 during that time. During 2022, revenue of $1,080,000 was recognized.Required:1. Prepare the journal entries to record the development costs in 2016 and 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)2. Calculate the required amortization for 2017. (Enter your answer in whole dollars.)
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