The company sold merchandise to a customer on December 1, 2019, for $100,000. The customer paid with a promissory note that has a term of 6 months and an annual interest rate of 9%. The company’s accounting period ends on December 31.

What amount should the company recognize as interest revenue on December 31, 2019?

For which of the following firms is debt financing most appropriate?

a biotech company whose breakthrough drug will not be approved for the next 10 years

a small oil and gas exploration company facing trouble due to falling gas prices

Silicon Valley tech startup with no revenue

a large, mature industrial conglomerate

Using Excel Solver: We have 3,000 units of product to sell over a five-day period. From historical sales data, we have estimated the following demand curves: P = price/unit in $, Q = number of units sold. Day 1: P = 10?0.01 Q valid for prices between $3 and $8. Day 2: same as Day 1. Day 3: P = 15?0.01Q valid for prices between $6 and $10 Day 4: P = 20?0.01Q valid for prices between $6 and $12 Day 5: same as Day 1. 1) The revenue maximizing price for Day 1 is _________ (Hint: Please keep one decimal point.), and quantity sold is ________ (Hint: Please enter an integer.). 2) The revenue maximizing price for Day 2 is ___________ (Hint: Please keep one decimal point.), and quantity sold is ________ (Hint: Please enter an integer.). 3) The revenue maximizing price for Day 3 is __________ (Hint: Please keep one decimal point.), and quantity sold is _________ (Hint: Please enter an integer.). 4) The revenue maximizing price for Day 4 is __________ (Hint: Please keep one decimal point.), and quantity sold is _________ (Hint: Please enter an integer.). 5) The revenue maximizing price for Day 5 is ____________ (Hint: Please keep one decimal point.), and quantity sold is _________ (Hint: Please enter an integer.)

Syarikat Ali Sdn. Bhd. owned by Ali, began operations in May and completed the following transactions during that first month of operations.

May 1 Ali invested RM90,000 cash in the company for ordinary shares. 2 The company purchased RM25,000 in office equipment. It paid RM10,000 in cash and signed a note payable promising to pay the RM15,000 over the next three years.

2 The company rented office space and paid RM3,000 for the May rent 6 The company installed a new roof for a customer and immediately collected RM5,000.

7 The company paid a supplier RM2,000 for roofing materials used on the May 6 job.

8 The company purchased a RM2,500 copy machine for office use on credit.

9 The company completed work for additional customers on credit in the amount of RM16,000.

15 The company paid its employee salaries RM2,300 for the first half of the month.

17 The company installed a new roof for a customer and immediately collected RM2,400.

20 The company received RM10,000 in payments from the customers billed on May 9.

28 The company paid RM1,500 on the copy machine purchased on May 8. It will pay the remaining balance in June.

31 The company paid its employee salaries RM2,400 for the second half of the month.

31 The company paid a supplier RM5,300 for roofing materials used on the remaining jobs completed during May.

31 The company paid RM450 for this month’s utility bill.

Required:

a) Record the transactions of the business in a journal. Omits an explanation for each entry.

b) After analyzing these transactions, what is the ending cash balance? Use a T account to support your answer.

c) Prepare a trial balance at the end of the month.

Problem 11-14 Measures of Internal Business Process Performance [LO11-3]

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

Required:

1-a. Compute the throughput time for each month.

1-b. Compute the delivery cycle time for each month.

1-c. Compute the manufacturing cycle efficiency (MCE) for each month.

2. Evaluate the company’s performance over the last four months.

3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.

Three different traffic routes are tested for mean driving time. The entries in the table are the driving times in minutes on the three different routes. At the 0.05 level of significance, are the mean driving times similar regardless of routes?
Route 1: 30, 32, 27, 35
Route 2: 27, 29, 28, 36
Route 3: 16, 41, 22, 31

What statistical test are you going to run?

What is the null hypothesis?

What is the alternative hypothesis?

What is test statistic? Please answer with two decimal places.

What is the p-value? Please answer with two decimal places.

What is your conclusion based on the p-value and the level of significance?

What is the proper conclusion?

Which of the following transactions would have an immediate positive impact on ROE and ROIC (make them go up), ignoring depreciation, interest expense, and taxes?

a. The company purchases machinery using trade credit for $20,000.

b. The company collects $30,000 from customers on accounts receivable

c. The company pays off bank-notes payable for $10,000 by rolling short-term debt into long-term debt of 5-year bonds at the same interest rate.

d. The company sells common stock for $30,000.

e. None of the above.

Perez Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $114,000 per year to inspect completed tents before they are shipped to customers. Assume that the company completed 1,680 tents in January and 1,140 tents in February. For the entire year, the company expects to produce 20,000 tents.

Required

3. If the cost objective is to determine the cost per tent, is the expert’s salary a direct or an indirect cost?

4. How much of the expert’s salary should be allocated to tents produced in January and February?

Which of the following statements regarding float is MOST true?

A. A net disbursement float is generally preferred over a net collection float.

B. To maximize the potential benefits of net float, firms should pay bills electronically, but request that customers pay by cheque.

C. A disadvantage of a disbursement float is that less bank funds are available to earn interest.

D. If Company A writes cheques to Company B, with an average processing delay of 10 days, this transaction would increase Company B's disbursement float, but decrease company A's collection float.