Sally Prescott plans on retiring in 15 years, that is, she will work for another 15 full years. When she retires she plans on spending 3 years in Bulgaria volunteering for the Peace Corps. After which she will spend her time in Boca Raton, Florida at a townhouse she purchased 5 years ago for $250,000. She currently has $100,000 in savings. She estimates that she will need $20,000 a year for living expenses in Bulgaria and then $35,000 a year for approximately 20 years when she retires to Florida. If she earns 4% compounded monthly in her savings account, how much must she deposit each year to meet her financial goals? She will withdraw her annual cash flows at the beginning of each year, that is, her first $20,000 withdrawal will occur at the beginning of year 16, before she travels to Bulgaria. Her annual deposits will begin at the end of this year and continue until she leaves for Bulgaria.
No excel sheets
In: Finance
Suppose we can think of dividing a person’s working years up into three periods. The person has three alternatives. The first is for her to start working immediately, earning $100,000 ($100k) in period 1, $110k in period 2, and $90k in period 3. The second is to spend $50k to attend college in period 1, then earn $180k in each of periods 2 and 3. The third is to attend college in period 1 (as in the previous option), attend graduate school in period 2 (which entails no spending or earnings), and earn $400k in period 3.
a. If her period discount rate is 20%, which option maximizes the net present value (NPV) of her lifetime earnings (net of costs)?
b. How low must her discount rate get to change the answer you got for part (a)? (Using a spreadsheet would be very helpful. Try lowering her discount rate 1 percentage point at a time so see how the NPV of each alternative is affected.)
In: Economics
Sally Prescott plans on retiring in 15 years, that is, she will work for another 15 full years. When she retires she plans on spending 3 years in Bulgaria volunteering for the Peace Corps. After which she will spend her time in Boca Raton, Florida at a townhouse she purchased 5 years ago for $250,000. She currently has $100,000 in savings. She estimates that she will need $20,000 a year for living expenses in Bulgaria and then $35,000 a year for approximately 20 years when she retires to Florida. If she earns 4% compounded monthly in her savings account, how much must she deposit each year to meet her financial goals? She will withdraw her annual cash flows at the beginning of each year, that is, her first $20,000 withdrawal will occur at the beginning of year 16, before she travels to Bulgaria. Her annual deposits will begin at the end of this year and continue until she leaves for Bulgaria.
In: Finance
1.Reducing tariff rates will not improve a country's growth if
A. goods cannot enter or exit the country easily due to insufficient transportation networks.
B. the country has low levels of corruption.
C. levels of technology in the country are low.
2.Which of the following policies is most likely to reduce the amount of child labor used in developing countries?
A. Developed countries subsidizing their agricultural industries.
B.Developing countries preventing farmers from exporting agricultural goods.
C. Developing countries requiring children to attend school.
3. Which of the following statements has NOT been a persistent myth or anxiety associated with economic development?
A. Commerce and entrepreneurial capitalism takes more people out of poverty than aid.\
B. Developing countries would become locked into limited patterns of specialization.
C, Developing countries have limited opportunities to achieve growth through exports.
4.The "Fair Trade" movement results in consumers paying ____________ prices for products from developing countries such as coffee, tea and cocoa.
A. higher
B. lower
C. less polarizing
In: Economics
Essay: Production and costs of goods or services for a local and
international market
Instructions
For this activity you must write an argumentative essay on the
advantages and disadvantages that a manager of any business should
consider, in terms of production and costs of goods or services,
for a local and international market.
After reviewing the study material, look for information in the
virtual library (CRE-V) on production and costs in the short and
long term, and isocost and isoquant curves.
Then write your essay taking into account the following:
Production and efficiency in the short and long term
Analysis of isoquant or long-term isocost curves
Short and long-term economic effects on production
The essay must contain:
At least three (3) advantages and three (3) disadvantages for each
local and international market.
You should briefly explain each advantage and disadvantage for each
market. You can provide examples or particular situations.
Your writing must contain a minimum of one (1) introductory
paragraph, development of the content as indicated in the specific
instructions and one (1) concluding paragraph that summarizes the
most relevant aspects of the content.
In: Economics
|
Suppose you are a brand manager for a large consumer products company (like P&G in Cincinnati), and your career is in big trouble ... during your last assignment, your team proposed a new dish detergent that tends to dissolve silver and eat holes in fine china. You are given a last-chance assignment in the company's food products division, so you need a big score with the next set of products. The main problem is that these products are convenience foods (like microwave burritos and Ramen noodle soups) that most of your customers view as inferior goods. During the recession, the division generate strong sales growth and good profits. You arrived just as the economy started to improve, and everyone in the division expects sales to decline as consumer income continues to improve. What other strategies can you use to market these brands that will shift the demand curve for these products to the right in order to offset the declining demand that results from the inferior character of these goods? Answer the discussion question above using at least 175 words. Thank you! |
In: Economics
|
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company’s inventory balances were as follows: |
| Raw materials | $ | 17,500 | |
| Work in process | $ | 9,760 | |
| Finished goods | $ | 29,280 | |
|
The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,300 machine-hours and incur $159,720 in manufacturing overhead cost. The following transactions were recorded for the year: |
| a. | Raw materials were purchased on account: $206,000. |
| b. | Raw materials were requisitioned for use in production: $193,000 (80% direct and 20% indirect). |
| c. | The following costs were incurred for employee services: |
| Direct labour | $ | 162,600 | |
| Indirect labour | $ | 27,600 | |
| Sales commissions | $ | 36,900 | |
| Administrative salaries | $ | 81,200 | |
| d. | Heat, power, and water costs were incurred in the factory: $43,350. |
| e. |
Prepaid insurance expired during the year: $11,500 (85% relates to factory operations, and 15% relates to selling and administrative activities). |
| f. | Advertising costs were incurred, $51,500. |
| g. |
Depreciation was recorded for the year: $61,800 (90% relates to factory operations, and 10% relates to selling and administrative activities). |
| h. |
Manufacturing overhead cost was applied to production. The company recorded 40,600 machine-hours for the year. |
| i. |
Goods that cost $493,100 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. |
| j. |
Sales for the year totalled $714,000 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $488,000. |
| Required: |
| 1. |
Prepare journal entries to record the transactions given above. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
| 2. |
Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don’t forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account. |
| 3-a. | Is manufacturing overhead underapplied or overapplied for the year? | ||||
|
| 3-b. |
Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
| 4. |
Prepare an income statement for the year. |
In: Accounting
|
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company’s inventory balances were as follows: |
| Raw materials | $ | 17,500 | |
| Work in process | $ | 9,760 | |
| Finished goods | $ | 29,280 | |
|
The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,300 machine-hours and incur $159,720 in manufacturing overhead cost. The following transactions were recorded for the year: |
| a. | Raw materials were purchased on account: $206,000. |
| b. | Raw materials were requisitioned for use in production: $193,000 (80% direct and 20% indirect). |
| c. | The following costs were incurred for employee services: |
| Direct labour | $ | 162,600 | |
| Indirect labour | $ | 27,600 | |
| Sales commissions | $ | 36,900 | |
| Administrative salaries | $ | 81,200 | |
| d. | Heat, power, and water costs were incurred in the factory: $43,350. |
| e. |
Prepaid insurance expired during the year: $11,500 (85% relates to factory operations, and 15% relates to selling and administrative activities). |
| f. | Advertising costs were incurred, $51,500. |
| g. |
Depreciation was recorded for the year: $61,800 (90% relates to factory operations, and 10% relates to selling and administrative activities). |
| h. |
Manufacturing overhead cost was applied to production. The company recorded 40,600 machine-hours for the year. |
| i. |
Goods that cost $493,100 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. |
| j. |
Sales for the year totalled $714,000 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $488,000. |
| Required: |
| 1. |
Prepare journal entries to record the transactions given above. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
| 2. |
Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don’t forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account. |
| 3-a. | Is manufacturing overhead underapplied or overapplied for the year? | ||||
|
| 3-b. |
Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
| 4. |
Prepare an income statement for the year |
In: Accounting
The following accounting events affected Stratford Manufacturing Company during its first three years of operation. Assume that all transactions are cash transactions.
Transactions for 2017
1. Started manufacturing company by issuing common stock for $2,000.
2. Purchased $600 of direct raw materials.
3. Used $400 of direct raw materials to produce inventory.
4. Paid $200 of direct labor wages to employees to make inventory.
5. Applied $125 of manufacturing overhead cost to Work in Process Inventory.
6. Finished work on inventory that cost $450.
7. Sold goods that cost $300 for $550.
8. Paid $185 for selling and administrative expenses.
9. Actual manufacturing overhead cost amounted to $114 for the year.
Transactions for 2018
1. Acquired additional $400 of cash from common stock.
2. Purchased $600 of direct raw materials.
3. Used $650 of direct raw materials to produce inventory.
4. Paid $300 of direct labor wages to employees to make inventory.
5. Applied $160 of manufacturing overhead cost to Work in Process Inventory.
6. Finished work on inventory that cost $900.
7. Sold goods that cost $800 for $1,400.
8. Paid $250 for selling and administrative expenses.
9. Actual manufacturing overhead cost amounted to $165 for the year.
Transactions for 2019
1. Paid a cash dividend of $350.
2. Purchased $700 of direct raw materials.
3. Used $600 of direct raw materials to produce inventory.
4. Paid $220 of direct labor wages to employees to make inventory.
5. Applied $145 of manufacturing overhead cost to work in process.
6. Finished work on inventory that cost $1,000.
7. Sold goods that cost $1,100 for $1,750.
8. Paid $355 for selling and administrative expenses.
9. Annual manufacturing overhead costs were $140 for the year.
Required
a.c.&d. Record the preceding events in horizontal statements models for each of the three years. Close overapplied or underapplied overhead to Cost of Goods Sold. Close appropriate accounts for 2017, 2018, and 2019. In year 2017, the first event is shown as an example.
b.&d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet as of the close of business on December 31, 2017, 2018 and 2019.
In: Accounting
The following information applies to the questions displayed below.] Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations: a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,000, 11,000, 13,000, and 14,000 units, respectively. All sales are on credit. b. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 25% of the following month’s unit sales. d. The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.20 per pound. e. Twenty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month. f. The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is $1.20. The fixed selling and administrative expense per month is $61,000.
13. What is the estimated cost of goods sold and gross margin for July, if the company always uses an estimated predetermined plantwide overhead rate of $7 per direct labor-hour? Estimated cost of goods sold ________ estimated gross margin_______
14. What is the estimated total selling and administrative expense for July?
15. What is the estimated net operating income for July, if the company always uses an estimated predetermined plantwide overhead rate of $7 per direct labor-hour? .
In: Accounting