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Wally’s Widget Company (WWC) incorporated near the end of 2011. Operations began in January of 2012. WWC prepares adjusting entries and financial statements at the end of each month. Balances in the accounts at the end of January are as follows: |
| Cash | $ | 21,470 | Unearned Revenue (25 units) | $ | 5,300 | ||
| Accounts Receivable | $ | 12,500 | Accounts Payable (Jan Rent) | $ | 3,200 | ||
| Allowance for Doubtful Accounts | $ | (1,850) | Notes Payable | $ | 15,500 | ||
| Inventory (30 units) | $ | 2,400 | Contributed Capital | $ | 6,900 | ||
| Retained Earnings – Feb 1, 2012 | $ | 3,620 | |||||
| • | WWC establishes a policy that it will sell inventory at $165 per unit. |
| • | In January, WWC received a $5,300 advance for 25 units, as reflected in Unearned Revenue. |
| • | WWC’s February 1 inventory balance consisted of 30 units at a total cost of $2,400. |
| • | WWC’s note payable accrues interest at a 12% annual rate. |
| • | WWC will use the FIFO inventory method and record COGS on a perpetual basis. |
| February Transactions | |
| 02/01 |
Included in WWC’s February 1 Accounts Receivable balance is a $1,700 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,700 balance to a note, and Kit Kat signs a 6-month note, at 9% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012. |
| 02/02 |
WWC paid a $600 insurance premium covering the month of February. The amount paid is recorded directly as an expense. |
| 02/05 |
An additional 170 units of inventory are purchased on account by WWC for $12,750 – terms 2/15, n30. |
| 02/05 |
WWC paid Federal Express $510 to have the 170 units of inventory delivered overnight. Delivery occurred on 02/06. |
| 02/10 |
Sales of 140 units of inventory occurred during the period of 02/07 – 02/10. The sales terms are 2/10, net 30. |
| 02/15 |
The 25 units that were paid for in advance and recorded in January are delivered to the customer. |
| 02/15 |
20 units of the inventory that had been sold on 2/10 are returned to WWC. The units are not damaged and can be resold. Therefore, they are returned to inventory. Assume the units returned are from the 2/05 purchase. |
| 02/16 | WWC pays the first 2 weeks wages to the employees. The total paid is $2,700. |
| 02/17 |
Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current period rather than as a reduction of inventory costs. |
| 02/18 | Wrote off a customer’s account in the amount of $1,950. |
| 02/19 |
$6,400 of rent for January and February was paid. Because all of the rent will soon expire, the February portion of the payment is charged directly to expense. |
| 02/19 |
Collected $9,900 of customers’ Accounts Receivable. Of the $9,900, the discount was taken by customers on $7,500 of account balances; therefore WWC received less than $9,900. |
| 02/26 |
WWC recovered $590 cash from the customer whose account had previously been written off (see 02/18). |
| 02/27 |
A $900 utility bill for February arrived. It is due on March 15 and will be paid then. |
| 02/28 | WWC declared and paid a $850 cash dividend. |
| Adjusting Entries: |
| 02/29 |
Record the $2,700 employee salary that is owed but will be paid March 1. |
|
| 02/29 |
WWC decides to use the aging method to estimate uncollectible accounts. WWC determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts. |
|
| 02/29 | Record February interest expense accrued on the note payable. | |
| 02/29 | Record one month’s
interest earned Kit Kat’s note (see 02/01).
|
In: Accounting
Until recently, state law left the Vermont Alcohol and Tobacco Company (“VAT”) with a near-monopoly on sales of these items in Vermont. (Mail order is prohibited.) The legislation has just been repealed, and soon competing retailers will be opening up stores in Vermont. As the CFO, you are deciding whether this should affect VAT’s target leverage ratio (currently 50%). If you want to improve shareholder value, you should
Group of answer choices
A. Raise the ratio. The repeal means that your firm needs to become more competitive, and higher debt payments will force management to run a tighter operation.
B. Raise the ratio. Your inventories make good collateral, and using a debt issue to fund a share repurchase will give shareholders a much-needed boost in stock price.
C. Lower the ratio. The repeal opens up all sorts of growth opportunities for your company, and debt payments would interfere with your ability to pursue these.
D. Lower the ratio. More competition means lower margins, increasing the chance that your firm will miss interest payments and enter financial distress.
In: Finance
Kilgore’s Deli is a small delicatessen located near a major university. Kilgore’s does a large walk-in carry-out lunch business. The deli offers two luncheon chili specials, Wimpy and Dial 911. At the beginning of the day, Kilgore needs to decide how much of each special to make (he always sells out of whatever he makes). The profit on one serving of Wimpy is $0.41, on one serving of Dial 911, $0.54. Each serving of Wimpy requires 0.21 pound of beef, 0.21 cup of onions, and 5 ounces of Kilgore’s special sauce. Each serving of Dial 911 requires 0.21 pound of beef, 0.36 cup of onions, 2 ounces of Kilgore’s special sauce, and 5 ounces of hot sauce. Today, Kilgore has 16 pounds of beef, 11 cups of onions, 85 ounces of Kilgore’s special sauce, and 56 ounces of hot sauce on hand.
| Let | W = number of servings of Wimpy to make |
| D = number of servings of Dial 911 to make |
| Max | W | + | D | |||
| s.t. | ||||||
| W | + | D | (Beef) | |||
| W | + | D | (Onions) | |||
| W | + | D | (Special Sauce) | |||
| W | + | D | (Hot Sauce) | |||
| W, D | ≥ | 0 |
In: Statistics and Probability
Thirty small communities in Connecticut (population near 10,000 each) gave an average of x = 138.5 reported cases of larceny per year. Assume that σ is known to be 41.5 cases per year.
(a) Find a 90% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.)
| lower limit | |
| upper limit | |
| margin of error |
(b) Find a 95% confidence interval for the population mean annual
number of reported larceny cases in such communities. What is the
margin of error? (Round your answers to one decimal place.)
| lower limit | |
| upper limit | |
| margin of error |
(c) Find a 99% confidence interval for the population mean annual
number of reported larceny cases in such communities. What is the
margin of error? (Round your answers to one decimal place.)
Lower Limit:
upper limit:
margin of error:
In: Statistics and Probability
Kilgore’s Deli is a small delicatessen located near a major university. Kilgore’s does a large walk-in carry-out lunch business. The deli offers two luncheon chili specials Wimpy and Dial 911. At the beginning of the day, Kilgore needs to decide how much of each special to make (he always sells out of whatever he makes). The profit on one serving of Wimpy is $.45, on one serving of Dial 911, $.58. Each serving of Wimpy requires .25 pound of beef, .25 cup of onions, and 5 ounces of Kilgore’s special sauce. Each serving of Dial 911 requires .25 pound of beef, .4 cup of onions, 2 ounces of Kilgore’s special sauce, and 5 ounces of hot sauce. Today, Kilgore has 20 pounds of beef, 15 cups of onions, 88 ounces of Kilgore’s special sauce, and 60 ounces of hot sauce on hand.
a. Develop a linear programming model that will tell Kilgore how many servings of Wimpy and Dial 911 to make in order to maximize his profit today.
b. Find an optimal solution.
c. What is the shadow price for special sauce? Interpret the shadow price.
d. Increase the amount of special sauce available by 1 ounce and re-solve. Does the solution confirm the answer to part (c)? Give the new solution.
In: Statistics and Probability
Carlo and Anita make mailboxes and toys in their craft shop near Lincoln. Each mailbox requires 1 hour of work from Carlo and 2 hours from Anita. Each toy requires 1 hour of work from Carlo and 3 hours from Anita. Carlo cannot work more than 55 hours per week and Anita cannot work more than 12 hours per week. If each mailbox sells for $ 15 and each toy sells for $ 24, then how many of each should they make to maximize their revenue? What is their maximum revenue?
Carlo and Anita should make __ mailboxes and __ toys. Their maximum revenue is $__.
In: Advanced Math
|
Wally’s Widget Company (WWC) incorporated near the end of 2011. Operations began in January of 2012. WWC prepares adjusting entries and financial statements at the end of each month. Balances in the accounts at the end of January are as follows: |
| Cash | $ | 20,420 | Unearned Revenue (35 units) | $ | 4,950 | ||
| Accounts Receivable | $ | 11,450 | Accounts Payable (Jan Rent) | $ | 2,500 | ||
| Allowance for Doubtful Accounts | $ | (1,500) | Notes Payable | $ | 16,000 | ||
| Inventory (40 units) | $ | 3,600 | Contributed Capital | $ | 6,200 | ||
| Retained Earnings – Feb 1, 2012 | $ | 4,320 | |||||
| • | WWC establishes a policy that it will sell inventory at $145 per unit. |
| • | In January, WWC received a $4,950 advance for 35 units, as reflected in Unearned Revenue. |
| • | WWC’s February 1 inventory balance consisted of 40 units at a total cost of $3,600. |
| • | WWC’s note payable accrues interest at a 12% annual rate. |
| • | WWC will use the FIFO inventory method and record COGS on a perpetual basis. |
| February Transactions | |
| 02/01 |
Included in WWC’s February 1 Accounts Receivable balance is a $1,800 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,800 balance to a note, and Kit Kat signs a 6-month note, at 9% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012. |
| 02/02 |
WWC paid a $650 insurance premium covering the month of February. The amount paid is recorded directly as an expense. |
| 02/05 |
An additional 160 units of inventory are purchased on account by WWC for $12,000 – terms 2/15, n30. |
| 02/05 |
WWC paid Federal Express $320 to have the 160 units of inventory delivered overnight. Delivery occurred on 02/06. |
| 02/10 |
Sales of 130 units of inventory occurred during the period of 02/07 – 02/10. The sales terms are 2/10, net 30. |
| 02/15 |
The 35 units that were paid for in advance and recorded in January are delivered to the customer. |
| 02/15 |
10 units of the inventory that had been sold on 2/10 are returned to WWC. The units are not damaged and can be resold. Therefore, they are returned to inventory. Assume the units returned are from the 2/05 purchase. |
| 02/16 | WWC pays the first 2 weeks wages to the employees. The total paid is $2,000. |
| 02/17 |
Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current period rather than as a reduction of inventory costs. |
| 02/18 | Wrote off a customer’s account in the amount of $1,600. |
| 02/19 |
$5,000 of rent for January and February was paid. Because all of the rent will soon expire, the February portion of the payment is charged directly to expense. |
| 02/19 |
Collected $9,200 of customers’ Accounts Receivable. Of the $9,200, the discount was taken by customers on $6,500 of account balances; therefore WWC received less than $9,200. |
| 02/26 |
WWC recovered $520 cash from the customer whose account had previously been written off (see 02/18). |
| 02/27 |
A $550 utility bill for February arrived. It is due on March 15 and will be paid then. |
| 02/28 | WWC declared and paid a $650 cash dividend. |
| Adjusting Entries: |
| 02/29 |
Record the $2,000 employee salary that is owed but will be paid March 1. |
||||
| 02/29 |
WWC decides to use the aging method to estimate uncollectible accounts. WWC determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts. |
||||
| 02/29 | Record February interest expense accrued on the note payable. | ||||
| 02/29 |
Record one month’s interest earned Kit Kat’s note (see 02/01).
|
In: Accounting
1. Imagine a scenario where you are planning to open your ‘mom and pop’ café near Kean University union campus for the very first time. What are the five promotional elements you would use to design an integrated marketing communications program for your café? How would you design each element of the promotional mix? Discuss with the help of examples.
2.
How does government regulations assure occupational safety and health? How does the law limit of employers’ duty in order to provide job security to their workers?
In: Economics
Natalie owns a condominium near Cocoa Beach in Florida. This
year, she incurs the following expenses in connection with her
condo:
| Insurance | $ | 1,050 |
| Advertising expense | 965 | |
| Mortgage interest | 5,800 | |
| Property taxes | 1,080 | |
| Repairs & maintenance | 1,130 | |
| Utilities | 550 | |
| Depreciation | 8,700 | |
During the year, Natalie rented out the condo for 94 days,
receiving $22,500 of gross income. She personally used the condo
for 50 days during her vacation.
Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year.
a. What is the total amount of for AGI (rental) deductions Natalie may deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions associated with the condo)?
b. What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo?
c. If Natalie’s basis in the condo at the beginning of the year was $210,000, what is her basis in the condo at the end of the year?
d. Assume that gross rental revenue was $4,500 (rather than $22,500). What amount of for AGI deductions may Natalie deduct in the current year related to the condo?
In: Accounting
1) A bacterial strain called XYZ living in the lake MBG223 near Bilkent University requires to synthesize tryptophan continuously. The reason is, the essential proteins (essential means, the proteins required for survival of the bacteria) contain high content of tryptophan. Therefore, this bacterial strain XYZ has a tryptophan operon. Unfortunately, the tryptophan level of nutrition available in lake MBG223 is very limited during summer and winter time and the other nutrition levels are high. During the summer time, as the lake MBG223 partially evaporates, the salinity of the water increases, the temperature of the lake arises and the pH of the environment turns from natural to acidic. Changes in salinity, pH and temperature is known to disrupt hydrogen bonding in nucleotide base-pairings and also the structure of the proteins. Here, assuming that the structure/function of the proteins are not effected please answer the following.
İnside the XYZ bacteria, what would you observe with regards to synthesis of tryptophan bearing proteins during summer vs. winter time? How would this effect bacterial growth rate during the summer time vs winter time?
2)In another neighboring lake called MBG222, they found a different bacterial strain called WOWWW to have mutant tRNAs on the anti-codon region of the tRNA. This tRNA carries Phenylalanine to wherever it encounters the sequence UGG (tryptophan) on the mRNA. What happens to the regulation of the trypthophan operon in bacteria that has 1) high tryptophan and low phenylalanine vs. bacteria that has low tryptophan and high phenylalanine?
In: Biology