Nash Company asks you to review its December 31, 2020, inventory
values and prepare the necessary adjustments to the books. The
following information is given to you.
| 1. | Nash uses the periodic method of recording inventory. A physical count reveals $258,379 of inventory on hand at December 31, 2020. | |
| 2. | Not included in the physical count of inventory is $14,762 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived and was recorded on December 31. | |
| 3. | Included in inventory is merchandise sold to Champy on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $14,080 on December 31. The merchandise cost $8,085, and Champy received it on January 3. | |
| 4. | Included in inventory was merchandise received from Dudley on December 31 with an invoice price of $17,193. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded. | |
| 5. | Not included in inventory is $9,394 of merchandise purchased from Glowser Industries. This merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30. | |
| 6. | Included in inventory was $11,482 of inventory held by Nash on consignment from Jackel Industries. | |
| 7. | Included in inventory is merchandise sold to Kemp f.o.b. shipping point. This merchandise was shipped on December 31 after it was counted. The invoice was prepared and recorded as a sale for $20,790 on December 31. The cost of this merchandise was $11,572, and Kemp received the merchandise on January 5. | |
| 8. |
Excluded from inventory was a carton labeled “Please accept for credit.” This carton contains merchandise costing $1,650 which had been sold to a customer for $2,860. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged; Nash will honor the return. Determine the proper inventory balance for Nash Company at December 31, 2020 & Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2020. Assume the books have not been closed |
In: Accounting
Interpreting Accounts Receivable and Its Footnote
Disclosure
Following is the current asset section from the W.W. Grainger,
Inc., balance sheet.
| As of December 31 ($ 000s) | 2010 | 2009 | 2008 |
|---|---|---|---|
| Cash and cash equivalents | $ 313,454 | $ 459,871 | $ 396,290 |
| Accounts receivable (less allowances for doubtful accounts of $24,552, $25,850 and $26,481, respectively |
762,895 | 624,910 | 589,416 |
| Inventories, net | 991,577 | 889,679 | 1,009,932 |
| Prepaid expenses and other assets | 87,125 | 88,364 | 73,359 |
| Deferred income taxes | 44,627 | 42,023 | 52,556 |
| Prepaid income taxes | 38,393 | 26,668 | 22,556 |
| Total current assets | $ 2,238,071 | $ 2,131,515 | $ 2,144,109 |
Grainger reports the following footnote relating to its
receivables.
Allowance for Doubtful Accounts: The following table shows the
activity in the allowance for doubtful accounts.
| For Years ended December 31 ($ 000s) | 2010 | 2009 | 2008 |
|---|---|---|---|
| Allowance for doubtful accounts- accounts receivable | |||
| Balance at beginning of period | $ 25,850 | $ 26,481 | $ 25,830 |
| Provision for uncollectable accounts | 6,718 | 10,748 | 12,924 |
| Write-off of uncollectible accounts, less recoveries | (8,302) | (12,254) | (11,501) |
| Foreign currency exchange impact | 286 | 875 | (772) |
| Balance at end of period | $ 24,552 | $ 25,850 | $ 26,481 |
(a) What amount do customers owe Grainger at each of the year-ends
2008 through 2010?
| ($ 000s) | 2010 | 2009 | 2008 |
|---|---|---|---|
| Gross accounts receivable | $Answer | $Answer | $Answer |
(c) What percentage of its total accounts receivable does Grainger
feel are uncollectible? Hint: Percentage of uncollectible accounts
= Allowance for uncollectible accounts/Gross accounts receivable.
Round your answers to two decimal places.
| ($ 000s) | 2010 | 2009 | 2008 |
|---|---|---|---|
| Percentage of uncollectible accounts to gross accounts receivable | Answer % | Answer % | Answer % |
(d) What amount of bad debts expense did Grainger report in its income statement for each of the years 2008 through 2010?
| ($ 000s) | 2010 | 2009 | 2008 |
|---|---|---|---|
| Bad debts expense (titled Provision for Uncollectible Accounts) | $Answer | $Answer | $ Answer |
The allowance for uncollectible accounts remained relatively the same as a percentage of gross accounts receivable.
The allowance for uncollectible accounts has decreased as a percentage of gross accounts receivable.
The allowance for uncollectible accounts has increased as a percentage of gross accounts receivable.
(d) If Grainger had kept its 2010 allowance for uncollectible
accounts at the same percentage of gross accounts receivable as it
was in 2008, by what amount would its profit have changed (ignore
taxes)? HINT: Use rounded answer from part b. to calculate. Round
answer to the nearest thousands.
Profit would Answerincreasedecrease
by $Answer
($ 000s)
In: Accounting
You may need to use the appropriate technology to answer this question.
Consider the following hypothesis test.
H0: μ1 − μ2 = 0
Ha: μ1 − μ2 ≠ 0
The following results are from independent samples taken from two populations.
| Sample 1 | Sample 2 |
|---|---|
|
n1 = 35 |
n2 = 40 |
|
x1 = 13.6 |
x2 = 10.1 |
|
s1 = 5.6 |
s2 = 8.5 (a) What is the value of the test statistic? (Use x1 − x2. Round your answer to three decimal places.) |
(b) What is the degrees of freedom for the t distribution? (Round your answer down to the nearest integer.)
(c) What is the p-value? (Round your answer to four decimal places.)
In: Math
In: Computer Science
In the last decade, tens of thousands of IS/MIS jobs in the United States have been outsourced to India, as well as other countries. The three leading Indian outsourcing firms (Wipro, Infosys, and Tata) are growing at about 10% annually, and currently employ about 300,000 IS/IT workers in India, most of whom are working on outsourced projects from the United States, and Europe.
Large American global technology firms like Cisco, Microsoft, and IBM have made significant investments in India. IBM has created seven centers in India, and employs over 150,000 Indian
workers in 2012. Microsoft has over 5000 employees in India working on products at all stages of the lifecycle from research and development, to support services. Cisco has 7,000 employees in India. Accenture, one of the world’s largest IT and business consulting firms which has a large and growing practice called “business process outsourcing” and “management outsourcing,” has over 74,000 employees in India working diligently to encourage firms around the world to outsource to India, or other low-wage countries. At the same time, large outsourcing firms like Wipro and Tata send over 100,000 IS workers to the U.S. every year.
There are many reasons that outsourcing to India and other areas has grown so rapidly. Labor costs in India are 10%-20% of labor costs in the U.S. A $60,000 a year programmer in the United States can be employed in India in 2013 for about $8,000-$10,000, and that programmer will live comfortably. Second, the Internet has made it possible and inexpensive to coordinate and manage far flung teams of employees. Third, Indian infrastructure has improved to the point where it can support global business operations (although there are exceptions). Fourth, India and China with 1 billion+ populations and nearly 8% annual GDP growth rates represent significant investment opportunities for American and other global firms. Most investments in China are not made for their outsourcing potential, but for the chance to participate in the growth of China’s domestic and export markets. In their own right, India and China are the economies which will grow twice as fast as the U.S. economy in the next decade assuming existing trends continue.
All of this outsourcing would seem to paint a dim picture for IS/MIS careers in the United States.
One would expect thousands of IS/MIS workers out of a job, and investment in systems shrinking. Oddly, after a decade of significant outsourcing, unemployment among American IS/MIS workers is half that of the labor force average of 7.6 % in 2013, and is lower than unemployment among all college graduates and professionals of similar educational levels (about 3.7%). The estimated unemployment rate among IS/IT/MIS workers is less than 3.2%. Whatever the impacts of outsourcing, it clearly has not led to widespread unemployment among U.S. IS workers. Why not? Oddly, despite all the outsourcing of IT work, investment by U.S. businesses in information technology and systems has expanded in the last decade at an extraordinary rate of about 5% annually (more than twice the rate of growth of the economy as a whole).Investment in information technology, systems, hardware, software and telecommunications equipment was $540 billion in 2012, 52% of all capital investment in the U.S., and up from $366 billion in 1998 (Bureau of Economic Analysis, 2013). Employment levels in the IS/MIS careers and occupations have also expanded in the U.S. over the last decade at about 5% annually. How is it possible that IS/MIS outsourcing can be proceeding at a very rapid rate, and growth in IS/MIS careers and investments is expanding? The answers are speculative. One possible answer is that outsourcing has largely involved lower level, technical programming and engineering jobs and not higher level, high value-added jobs. As lower level jobs are outsourced, more higher value jobs replace them. Moreover the demand in the U.S. for technical programming jobs has exceeded the supply, leaving plenty of work for local U.S. technical personnel. Some jobs like technical support specialist cannot be easily outsourced. Higher level management jobs are much less likely to be outsourced because of the need for face-to-face interaction with suppliers, customers, and employees. Sales and marketing are difficult to outsource. Another possible explanation is that the growth of outsourcing has potentially lowered the costs of system development in the U.S., making systems less expensive to build, and therefore encouraging U.S. firms to invest more in IT/IS and systems in general. The cost of technology has also fallen significantly (in terms of cost/millions of instructions per second). These developments are the equivalent of lowering the price of capital (in this case IT capital). And high levels of IS investment in the U.S. have only encouraged more outsourcing (as well as domestic employment). One result is a virtuous circle: outsourcing leads to lower system development costs, which leads to more investments in systems, which leads to higher demands for skilled IS/MIS labor, some of which will be outsourced. There are of course brakes and limits on the outsourcing process which are beyond the scope of this paper.
(a) Why outsourcing to India and other areas has grown so rapidly?
(b) How is it possible that IS/MIS outsourcing can be proceeding at a very rapid rate, and growth in IS/MIS careers and investments?
(c) How has IS/MIS outsourcing impacts employment?
In: Accounting
Problem 2 [21 marks] Consider a firm that uses two inputs. The quantity used of input 1 is denoted by ?1 and the quantity used of input 2 is denoted by ?2. The firm produces and sells one good using the production function ?(?1,?2) = 4?1 0.5 + 3?2 0.5. The final good is sold at price ? = $10. The prices of inputs 1 and 2 are ?1 = $2 and ?2 = $3, respectively. The markets for the final good and both input goods are treated as competitive markets by the firm, that is, it takes prices as given.
a) Show whether the production function has increasing, decreasing, or constant returns to scale. [2 marks]
b) Find the marginal product of each input. Show whether the production technology obeys the law of diminishing marginal products. [2 marks]
c) Draw the isoquant for an output level of 12. Clearly label the axes and the curve and show any two input bundles on the curve by indicating their coordinates. [2 marks]
d) Does the firm have convex production technology? Explain. [2 marks]
e) Find the technical rate of substitution. Does the technology show diminishing technical rate of substitution? Explain. [2 marks] Assume in the short run that ?2 is fixed at ?2 ̅̅̅ = 100.
f) Write down the firm’s profit function and the firm’s short run profit maximisation problem. Find the firm’s optimal use of input 1, the associated optimal quantity of the output good, and the firm’s profit level. [4 marks] Now consider the long run, where the quantity of input 2 can be varied.
g) According to your answer in part a), does the firm have a profit maximising plan in the long run? If no, explain why. If yes, is the plan unique? [2 marks]
h) Write down the firm’s profit function and the firm’s long run profit maximisation problem. Find the firm’s optimal use of input 1, input 2, the associated optimal quantity of the output good, and the firm’s profit level. [4 marks]
j) Explain why the profit level in the long run must be at least as high as the profit level in the short run. [1 mark]
In: Economics
Paramel Beverages bottles two soft drinks under licence to Cadaver Ltd. at its Newcastle plant. Bottling at this plant is highly repetitive, automated process. Empty bottles are removed from their carton, placed on a conveyor, and cleaned, rinsed, dried, filled, capped and heated (to reduce condensation). The only stock held is direct materials or else finished goods. There is no work in process. The two soft drinks bottled by Paramel Beverages are lemonade and diet lemonade. The syrup for both soft drinks is purchase from Cadaver Ltd. Syrup for the regular brand contains a higher sugar content than the syrup for the diet brand. Paramel Beverages uses a lot size of 1,000 cases as the unit of analysis in its budget. (Each case contains 24 bottles). Direct materials are expressed in terms of lots, where one lot of direct materials is the input necessary to yield one lot (1,000 cases) of beverage. In 2010, the following purchase prices ae forecast for direct materials: Lemonade Diet Lemonade Syrup $1,200 per lot $1,100 per lot Containers (bottles, caps, etc.) $1,000 per lot $1,000 per lot Packaging $800 per lot $800 per lot The two soft drinks are bottled using the same equipment. The equipment is cleaned daily, but it is only rinsed when a switch is made during the day between diet lemonade and 3 lemonade. Diet lemonade is always bottled first each day to reduce the risk of sugar contamination. The only difference in the bottling process for the two drinks is syrup. Summary data used in developing budgets for 2010 are as follows: a Sales • Lemonade, 1080 lots at $9,000 selling price per lot • Diet lemonade, 540 lots at $8,500 selling price per lot b Opening (1 January 2010) stock of direct materials • Syrup for lemonade, 80 lots at $1,100 purchase price per lot • Syrup for diet lemonade, 70 lots at $1,000 purchase price per lot • Containers, 200 lots at $950 purchase price per lot • Packaging, 400 lots at $900 purchase price per lot c Opening (1 January 2010) stock of finished goods • Lemonade, 100 lots at $5,300 per lot • Diet lemonade, 50 lots at $5,200 per lot d Target closing (31 December 2010) stock of direct materials • Syrup for lemonade, 30 lots. • Syrup for diet lemonade, 20 lots. • Containers, 100 lots. • Packaging, 200 lots. e Target closing (31 December 2010) stock of finished goods • Lemonade, 20 lots. • Diet lemonade, 10 lots. f Each lot requires 20 direct manufacturing labour hours at the 2010 budgeted rate of $25 per hour. Indirect manufacturing labour costs are included in the manufacturing overhead budget. g Variable manufacturing overhead is forecast to be $600 per hour of bottling time; bottling time is the time the filling equipment is in operation. It takes 2 hours to bottle 4 one lot of lemonade and 2 hours to bottle one lot of diet lemonade. Fixed manufacturing overhead is forecast to be $1,200,000 for 2010. h Hours of budgeted bottling time is the sole allocation base for all fixed manufacturing overheads. I Administration costs are forecast to be 10% of the cost of goods manufactured for 2010. Marketing costs are forecast to be 12% of sales for 2010. Distributions costs are forecast to be 8% of sales for 2010. Required: Assume Paramel Beverages uses the first in– first out (FIFO) method of costing all stock. On the basis of the preceding data, prepare the following budgets (in units and/or dollars as applicable) for 2010: 7. Closing finished goods stock budget 8. Cost of goods sold budget 9. Marketing cost budget (1 mark) 10. Distribution cost budget (1 mark) 11. Administration cots budget 12. Budgeted profit & loss.
REQUIRED ANS OF POSTED QUS AS IT IS NOT AVAILABLE IN YOUR WEBSITE
In: Accounting
Supply proofs for the following miscellaneous propositions from the course in a metric space context:
(1) A compact set (you may use either definition) is closed and bounded.
(2) An epsilon-neighborhood is an open set.
(3) A set is open if and only if its complement is closed.
In: Advanced Math
These are Heat engine questions:
1. what do you expect to happen to the pressure and volume of the closed system of air that has a 200g mass on top of it when you heat up the air inside the system? explain you're reasoning.
2. what do you expect to happen to the pressure and volume of the closed system of air that is still heated as you remove the 200g Masson top of the piston? Explain you're reasoning.
3. do you expect a closed system air to return to the original pressure and volume when the heat is removed? explain your reasoning.
In: Physics
A basic electrical circuit consists of a battery, a light bulb, a switch and wires connecting them. As soon as the switch is closed, even the light bulb is one mile away, the light bulb will be on IMMEDIATELY. This means that the electrical current (made of moving electrons) starts to run everywhere in the wire as soon as the switch is closed.
Explain:
a) the origin of these free moving electrons (where do they come from),
b) the force(s) that pushes free electrons moving towards the same direction (to form electrical current),
c) the average speed of these free electron (when the circuit is closed).
In: Physics