Martinez Company began operations on January 1, 2019, adopting
the conventional retail inventory system. None of the company’s
merchandise was marked down in 2019 and, because there was no
beginning inventory, its ending inventory for 2019 of $38,300 would
have been the same under either the conventional retail system or
the LIFO retail system.
On December 31, 2020, the store management considers adopting the
LIFO retail system and desires to know how the December 31, 2020,
inventory would appear under both systems. All pertinent data
regarding purchases, sales, markups, and markdowns are shown below.
There has been no change in the price level.
|
Cost |
Retail |
|||||
|---|---|---|---|---|---|---|
|
Inventory, Jan. 1, 2020 |
$38,300 | $60,200 | ||||
|
Markdowns (net) |
12,700 | |||||
|
Markups (net) |
22,100 | |||||
|
Purchases (net) |
128,800 | 181,200 | ||||
|
Sales (net) |
169,500 | |||||
Determine the cost of the 2020 ending inventory under both (a) the
conventional retail method and (b) the LIFO retail method.
(Round ratios for computational purposes to 2 decimal
place, e.g. 78.72% and final answers to 0 decimal places, e.g.
28,987.)
| (a) |
Ending inventory using conventional retail method |
$enter a dollar amount rounded to 0 decimal places |
||
|---|---|---|---|---|
| (b) |
Ending inventory LIFO retail method |
In: Accounting
Ivanhoe Corp., which uses ASPE, leases a car to Jaimme DeLory on June 1, 2020. The term of the non-cancellable lease is 48 months. The following information is provided about the lease. 1. The lessee is given an option to purchase the automobile at the end of the lease term for $5,400. 2. The automobile’s fair value on June 1, 2020, is $30,100. It is carried in Ivanhoe’s inventory at $20,600. 3. The car has an economic life of seven years, with a $2,000 residual value at the end of that time. The car’s estimated fair value is $10,600 after four years, $7,500 after five years, and $2,400 after six years. 4. Ivanhoe wants to earn a 12% rate of return (1% per month) on any financing transactions. 5. Jaimme DeLory represents a reasonable credit risk and no future costs are anticipated in relation to this lease. 6. The lease agreement calls for a $1,100 down payment on June 1, 2020, and 48 equal monthly payments on the first of each month, beginning June 1, 2020. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Collapse question part
(a) Determine the amount of the monthly lease payment
In: Accounting
What is the relationship between national saving and investment in a closed economy? Start by explaining what is a closed economy.
In: Economics
A country reported a nominal GDP of $115 billion in 2010 and $125 billion in 2009 and reported a GDP deflator of 85 in 2010 and 100 in 2009. What happened to real output and prices from 2014 to 2015? Please explain.
In: Economics
POST COMMENT ON POST AS SOON AS POSSIBLE THANKS
Future sales- and resources-seeking opportunities and risks may shift among counties because of a variety of demographic, sociocultural, political-legal, technological, and economic occurrences. (Daniels, Radebaugh, & Sullivan, 2019, p. 356) Due to these various shifts within a country, it is imperative that organizations create new strategies that will ensure future growth while also researching the most appropriate and successful locations. Due to technological innovation growth, individuals are able to work from various environments. The number of employees who are able to work from home is growing every day. This allows for a person to work for a company in one city but live hours away in a small town or even country. Though technology may be continuously expanding, there will always be a need for face-to-face college interaction. Leading Western societies, the elite, made up of intellectuals and highly educated people, is increasingly using its capability to delay and block new technologies. If successful, their efforts will result in the emergence of different countries at the forefront of technological development and acceptance. (Daniels, Radebaugh, & Sullivan, 2019, p. 357)
In: Accounting
Which of the following statements is true?
|
a |
The quantity supplied (Qs) of a good is the quantity of a good that all sellers in a market would choose to sell at different prices, given their constraints. |
|
b |
The main constraints sellers face are their financial budget and the prices of inputs. |
|
c |
Market supply is just the aggregation of all individual firms’ supplies in the market. |
|
d |
All of the above. |
|
e |
Only a) and b) |
Question 27 (1 point)
Which of the following statements is true?
|
a |
In general, anything that makes more profitable the production of a good increases the supply of the good, with the exception of an increase in the price of the good. |
|
b |
An increase in the prices of inputs increases the supply of a good. |
|
c |
An input is anything that is used in the production of a good. All resources can be inputs, but not all inputs are resources. |
|
d |
All of the above. |
|
e |
Only a) and c) |
Question 28 (1 point)
Which of the following statements is true?
|
a |
Intermediate goods are inputs but not resources. |
|
b |
A technology innovation that reduces the cost of production increases the supply of a good. |
|
c |
A decrease in the number of firms in the market increases the supply of a good. |
|
d |
All of the above. |
|
e |
Only a) and b) |
In: Economics
Nurse Jim Chen has been the nurse manager of the primary care clinics within a large health care organization for over 10 years. Jim is considered an excellent communicator and is well regarded by the physicians, nurses, and auxiliary staff. The health care system has been converting the acute care areas to electronic health care records (EHR) and is now ready to introduce them to the outpatient clinics. Jim has been appointed a “champion” of EHR for the clinics, and is charged with gathering a committee for implementation. He knows that members of the staff have differing views on the EHR, but most view it as a necessary change. However, some of the older staff feel very threatened (that jobs must be in danger), because they are uncomfortable with computers and new technology and have limited keyboarding skills.
In: Biology
Analysis and Interpretation of Profitability
Balance sheets and income statements for 3M Company follow.
| Consolidated Statements of Income | |||
|---|---|---|---|
| Years ended December 31 ($ millions) | 2010 | 2009 | 2008 |
| Net sales | $26,662 | $23,123 | $25,269 |
| Operating expenses | |||
| Cost of sales | 13,831 | 12,109 | 13,379 |
| Selling, general and administrative expenses | 5,479 | 4,907 | 5,245 |
| Research, development and related expenses | 1,434 | 1,293 | 1,404 |
| Loss/(gain) from sale of business | -- | -- | 23 |
| Total operating expenses | 20,744 | 18,309 | 20,051 |
| Operating income | 5,918 | 4,814 | 5,218 |
| Interest expenses and income | |||
| Interest expense | 201 | 219 | 215 |
| Interest income | (38) | (37) | (105) |
| Total interest expense | 163 | 182 | 110 |
| Income before income taxes | 5,755 | 4,632 | 5,108 |
| Provision for income taxes | 1,592 | 1,388 | 1,588 |
| Net income including noncontrolling interest | 4,163 | 3,244 | 3,520 |
| Less: Net income attributable to noncontrolling interest | 78 | 51 | 60 |
| Net income | $ 4,085 | $ 3,193 | $ 3,460 |
| Consolidated Balance Sheets | ||
|---|---|---|
| ($ millions) | 2010 | 2009 |
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | $ 3,377 | $ 3,040 |
| Marketable securities-current | 1,101 | 744 |
| Accounts receivable-net | 3,615 | 3,250 |
| Inventories | ||
| Finished goods | 1,476 | 1,255 |
| Work in process | 950 | 815 |
| Raw materials and supplies | 729 | 569 |
| Total inventories | 3,155 | 2,639 |
| Other current assets | 967 | 1,122 |
| Total current assets | 12,215 | 10,795 |
| Marketable securities-noncurrent | 540 | 825 |
| Investments | 146 | 103 |
| Property, plant and equipment | 20,253 | 19,440 |
| Less: Accumulated depreciation | (12,974) | (12,440) |
| Property, plant and equipment-net | 7,279 | 7,000 |
| Goodwill | 6,820 | 5,832 |
| Intangible assets-net | 1,820 | 1,342 |
| Prepaid pension benefits | 74 | 78 |
| Other assets | 1,262 | 1,275 |
| Total assets | $ 30,156 | $ 27,250 |
| Liabilities | ||
| Current liabilities | ||
| Short-term borrowings and current portion of long-term debt | $ 1,269 | $ 613 |
| Accounts payable | 1,662 | 1,453 |
| Accrued payroll | 778 | 680 |
| Accrued income taxes | 358 | 252 |
| Other current liabilities | 2,022 | 1,899 |
| Total current liabilities | 6,089 | 4,897 |
| Long-term debt | 4,183 | 5,097 |
| Pension and postretirement benefits | 2,013 | 2,227 |
| Other liabilities | 1,854 | 1,727 |
| Total liabilities | 14,139 | 13,948 |
| Equity | ||
| 3M Company shareholders' equity: Common stock, par value $.01 per share; | 9 | 9 |
| Additional paid-in capital | 3,468 | 3,153 |
| Retained earnings | 25,995 | 23,753 |
| Treasury stock | (10,266) | (10,397) |
| Accumulated other comprehensive income (loss) | (3,543) | (3,754) |
| Total 3M Company shareholders' equity | 15,663 | 12,764 |
| Noncontrolling interest | 354 | 538 |
| Total equity | 16,017 | 13,302 |
| Total liabilities and equity | $ 30,156 | $ 27,250 |
(a) Compute net operating profit after tax (NOPAT) for 2010. Assume
that the combined federal and statutory rate is: 37.0% (Round your
answer to the nearest whole number.)
2010 NOPAT =4266
($ millions)
(b) Compute net operating assets (NOA) for 2010 and 2009. Treat
noncurrent Investments as a nonoperating item.
2010 NOA =Answer
($ millions)
2009 NOA =Answer
($ millions)
(c) Compute 3M's RNOA, net operating profit margin (NOPM) and net
operating asset turnover (NOAT) for 2010. (Round your answers to
two decimal places. Do not round until your final answer. Do not
use NOPM x NOAT to calculate RNOA.)
2010 RNOA =Answer
%
2010 NOPM =16%
%
2010 NOAT =
(d) Compute net nonoperating obligations (NNO) for 2010 and
2009.
2010 NNO =Answer
($ millions)
2009 NNO =Answer
($ millions)
(e) Compute return on equity (ROE) for 2010. (Round your answers to
two decimal places. Do not round until your final answer.)
2010 ROE =28.74
%
(f) What is the nonoperating return component of ROE for 2010?
(Round your answers to two decimal places.)
Hint: Use your prior rounded answers to compute
this answer.
2010 nonoperating return =
In: Accounting
CASE STUDY:
Dell Technologies From unconventional PC startup to global
technology leader...
From unconventional PC startup to global technology leader, the
common thread in Dell’s heritage is an unwavering commitment to the
customer. Explore the company timeline below to view how this
guiding principle built Dell Technologies and inspired IT solutions
and services that give customers the power to do more.
1984: At age 19, Michael Dell founded PC's Limited with $1,000 and
a game-changing vision for how technology should be designed,
manufactured and sold. As a pre-med freshman at the University of
Texas at Austin, Michael starts Dell Technologies, then doing
business as PC's Limited. He left his dorm room at the end of his
freshman year to devote all of his time to growing the
business.
1985: We design and build our first computer system, the Turbo PC,
featuring an Intel® 8088 processor running at 8MHz, a 10MB hard
drive and a 5.25" floppy drive. We establish customer experience as
a Dell Technologies differentiator with risk-free returns and
next-day, at-home product assistance, among the first in our
industry.
1986: We unveil the industry's fastest performing PC — a 12MHz,
286-based system — at the Spring Comdex trade show.
1987: We open our first international subsidiary in the United
Kingdom.
HISTORY Michael Dell is chairman and chief executive officer of
Dell Technologies, a unique family of businesses encompassing Dell,
Dell EMC, Pivotal, RSA, Secureworks, Virtustream and VMware. Dell
Technologies is an innovator and technology leader providing the
essential infrastructure for organisations to build their digital
future, transform IT and protect their most important information.
With revenues of $74B and more than 140,000 team members, Dell
Technologies is one of the world’s largest IT companies serving the
needs of global corporations and governments to small businesses
and consumers. The company's unique structure allows innovative,
fast-moving startups to co-exist with, and leverage, the global
reach and trusted reputation of the large enterprise. Michael’s
story started when he founded Dell with $1000 in 1984 at the age of
19. Notably quoted as saying that “technology is about enabling
human potential,” Michael’s vision of how technology should be
designed, manufactured and sold forever changed the IT industry. In
1992, Michael became the youngest CEO ever to earn a ranking on the
Fortune 500. Known and admired for his astute business vision and
bold moves, Michael took Dell private in 2013, setting the stage to
architect the largest technology deal in history with the
combination of Dell, EMC and VMware in 2016.
In 1998, Michael formed MSD Capital, and in 1999, he and his wife
established the Michael & Susan Dell Foundation to provide
philanthropic support to a variety of global causes. Michael is an
honorary member of the Foundation Board of the World Economic Forum
and is an executive committee member of the International Business
Council. He is also a member of the Technology CEO Council, the
U.S. Business Council and the Business Roundtable. He serves on the
advisory board of Tsinghua University's School of Economics and
Management in Beijing, China and on the governing board of the
Indian School of Business in Hyderabad, India. He is a board member
of Catalyst and also served as the United Nations Foundation's
first Global Advocate for Entrepreneurship.
Every day, Dell Technologies is pairing technology with innovation
to make a positive social and environmental impact – building a
Legacy of Good. We are committed to putting our technology and
expertise to work, where it can do the most good for people and the
planet, making possible today what was impossible yesterday. Every
team member at Dell shares this commitment because being a good
company is the right thing to do, but it is also right for our
business. We’re creating real value for our customers, employees,
and partners while driving social and environmental good in the
community.
Our customers expect Dell Technologies to think about environmental
impact – that has always been a part of who we are. More than just
creating eco-friendly products or one-off initiatives, we
incorporate sustainability into everything we do – from design to
recycling and every step in between. Through innovation and a
relentless focus on efficiency, we are minimizing our footprint
while helping customers reduce theirs.
Design for Environment: Innovative thinking and a lifecycle
approach to how we design products and source materials are the
first steps in delivering products that help you do more while
minimizing your impact.
Reducing our Impact: How products are made matters – to our
customers, our communities and the planet. We focus on sustainable
operations – using resources efficiently, managing wastes
effectively and working to improve our local environment
Green packaging and Shipping: Our goal is to create a waste-free
packaging experience, using recycled and renewable source
materials, right-sizing to reduce waste, and making it easy for you
to responsibly dispose of packaging through recycling or composting
Reducing your Footprint. Energy efficiency is a top priority across
all our product lines. It helps you get the most from your energy
use, which saves you money, reduce risk, and meet sustainability
goals or regulations.
Recycling your DELL TECHNOLOGIES: We go beyond green IT —
technology that itself leaves a smaller environmental footprint —
to help you look at IT that enables you to address your
sustainability goals and take control of your resources in a way
that creates value.
Ocean Plastics: There are more than 86 million metric tons of
plastic in our oceans right now. See how Dell Technologies is
removing that pollution from our waters and turning it into
materials for our products
Net Positive:
Our strategy isn't to just reduce the bad we do, but to increase
the good. Creating a balance that puts more into the world and
society than what we take from it is creating a net positive.
(Adapted: www.google.com)
QUESTION:
The business environment is defined as all the factors or
variables, both inside as well as outside the organisation, which
may influence the continued and successful existence of the
organisation. The business environment consists of three distinct
sub environments. Justify these sub-environments as they apply to
Dell Technologies in terms of maintaining a competitive advantage.
In: Operations Management
1. How can profit motive lead to income inequality?
2. How does profit motive affect innovation and economic productivity?
In: Economics