The following information relates to the 2020 debt and equity
investment transactions of Pina Colada Ltd., a publicly accountable
Canadian corporation. All of the investments were acquired for
trading purposes and accounted for using the FV-NI model, with all
transaction costs being expensed. No investments were held at
December 31, 2019, and the company prepares financial statements
only annually, each December 31, following IFRS.
| 1. | On February 1, the company purchased Williams Corp. 12% bonds, at par value for $530,000, plus accrued interest. Interest is payable April 1 and October 1. | |
| 2. | On April 1, semi-annual interest was received on the Williams bonds. | |
| 3. | On July 1, 9% bonds of Saint Inc. were purchased. These bonds, with a par value of $190,000, were purchased at par plus accrued interest. Interest dates are June 1 and December 1. | |
| 4. | On August 12, 3,100 shares of Scotia Corp. were acquired at a cost of $58.00 per share. A 1% commission was paid. | |
| 5. | On September 1, Williams Corp. bonds with a par value of $106,000 were sold at 104.3 plus accrued interest. | |
| 6. | On September 28, a dividend of $0.53 per share was received on the Scotia Corp. shares. | |
| 7. | On October 1, semi-annual interest was received on the remaining Williams Corp. bonds. | |
| 8. | On December 1, semi-annual interest was received on the Saint Inc. bonds. | |
| 9. | On December 28, a dividend of $0.55 per share was received on the Scotia Corp. shares. | |
| 10. | On December 31, the following fair values were determined: Williams Corp. bonds 101.85; Saint Inc. bonds 97; and Scotia Corp. shares $61.50. |
In: Accounting
Subscribers to a store’s coupon distribution list are each emailed a randomly generated discount code which consists of 4 letters followed by 3 digits (some customers may getthe same code). Most codes are for 25% off online shopping on Cyber Monday, but customers whose codes consist of all different letters and 3 digits in increasing order(e.g. MATH014) get 50% off instead.
What is the probability that a code will consist of all different letters and 3 digits in increasing order?
In a group of 10 subscribers, what is the probability that at least two subscribers will get 50% off?
In a group of 1000 subscribers, what is the expected value and standarddeviation for the number of subscribers who will get 50% off?
In: Statistics and Probability
At Elmo’s, an old-fashioned barber shop in Melbourne, FL, 70% of all customers get a haircut, 40% get 3. At Elmo’s, an old-fashioned barber shop in Melbourne, FL, 70% of all customers get a haircut, 40% get a shave, and 95% get a haircut or a shave. Let A = customer gets a haircut and B = customer gets a shave.
a. Draw a Venn diagram showing the relationship between the events A and B. (4 points)
b. What is the probability that a randomly selected customer gets both a haircut and a shave? _________________________________(3)
c. What is the probability that a randomly selected customer a haircut or a shave, but not both? _________________________________(3)
d. What is the probability that a randomly selected customer gets a shave, given that he gets a haircut? ________________________________
In: Statistics and Probability
Chapter 7 Question 2:
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:
| Beginning inventory | 0 | |
| Units produced | 44,000 | |
| Units sold | 39,000 | |
| Selling price per unit | $ | 75 |
| Selling and administrative expenses: | ||
| Variable per unit | $ | 3 |
| Fixed (per month) | $ | 561,000 |
| Manufacturing costs: | ||
| Direct materials cost per unit | $ | 15 |
| Direct labor cost per unit | $ | 9 |
| Variable manufacturing overhead cost per unit | $ | 3 |
| Fixed manufacturing overhead cost (per month) | $ | 660,000 |
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
1. Assume that the company uses absorption costing.
a. Determine the unit product cost.
b. Prepare an income statement for May.
2. Assume that the company uses variable costing.
a. Determine the unit product cost.
b. Prepare a contribution format income statement for May.
In: Accounting
Metro Telcom Systems develops, sells, and installs computer systems. The company has divided its customer base into five regions, and it has 15 representatives who sell and install the company’s systems. The company wants to allocate salespeople to regions so that they maximize daily sales revenue. However, whereas the sales increase as the number of increases, they do so at a declining rate, according to the following nonlinear formula:
total sales = a - (b/x)
Following are the a and b parameters for daily sales in each region:
| Region | |||||
| 1 | 2 | 3 | 4 | 5 | |
| a | 15,000 | 24,000 | 8,100 | 12,000 | 21,000 |
| b | 9,000 | 15,000 | 5,300 | 7,600 | 12,500 |
Because some of the regions are in urban areas and some are not, the representatives’ daily expenses will differ among regions. The company has a daily expense budget of $6,500, and the daily expenses (including travel costs) per representative for each region average $355 for region 1, $540 for region 2, $290 for region 3, $275 for region 4, and $490 for region 5. Formulate and solve a nonlinear programming model for this problem to determine the number of representatives to allocate to each region to maximize daily sales.
In: Physics
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:
| Beginning inventory | 0 | |
| Units produced | 43,000 | |
| Units sold | 38,000 | |
| Selling price per unit | $ | 77 |
| Selling and administrative expenses: | ||
| Variable per unit | $ | 3 |
| Fixed (per month) | $ | 568,000 |
| Manufacturing costs: | ||
| Direct materials cost per unit | $ | 17 |
| Direct labor cost per unit | $ | 6 |
| Variable manufacturing overhead cost per unit | $ | 3 |
| Fixed manufacturing overhead cost (per month) | $ | 860,000 |
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
1. Assume that the company uses absorption costing.
a. Determine the unit product cost.
b. Prepare an income statement for May.
2. Assume that the company uses variable costing.
a. Determine the unit product cost.
b. Prepare a contribution format income statement for May.
In: Accounting
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:
| Beginning inventory | 0 | |
| Units produced | 46,000 | |
| Units sold | 41,000 | |
| Selling price per unit | $ | 80 |
| Selling and administrative expenses: | ||
| Variable per unit | $ | 3 |
| Fixed (per month) | $ | 564,000 |
| Manufacturing costs: | ||
| Direct materials cost per unit | $ | 18 |
| Direct labor cost per unit | $ | 6 |
| Variable manufacturing overhead cost per unit | $ | 3 |
| Fixed manufacturing overhead cost (per month) | $ | 782,000 |
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
1. Assume that the company uses absorption costing.
a. Determine the unit product cost.
b. Prepare an income statement for May.
2. Assume that the company uses variable costing.
a. Determine the unit product cost.
b. Prepare a contribution format income statement for May.
In: Accounting
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:
| Beginning inventory | 0 | |
| Units produced | 36,000 | |
| Units sold | 31,000 | |
| Selling price per unit | $ | 79 |
| Selling and administrative expenses: | ||
| Variable per unit | $ | 3 |
| Fixed (per month) | $ | 564,000 |
| Manufacturing costs: | ||
| Direct materials cost per unit | $ | 14 |
| Direct labor cost per unit | $ | 9 |
| Variable manufacturing overhead cost per unit | $ | 3 |
| Fixed manufacturing overhead cost (per month) | $ | 684,000 |
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
1. Assume that the company uses absorption costing.
a. Determine the unit product cost.
b. Prepare an income statement for May.
2. Assume that the company uses variable costing.
a. Determine the unit product cost.
b. Prepare a contribution format income statement for May.
In: Accounting
|
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: |
| Beginning inventory | 0 | |
| Units produced | 43,000 | |
| Units sold | 38,000 | |
| Selling price per unit | $79 | |
| Selling and administrative expenses: | ||
| Variable per unit | $3 | |
| Fixed per month | $ | 565,000 |
| Manufacturing costs: | ||
| Direct materials cost per unit | $17 | |
| Direct labor cost per unit | $9 | |
| Variable manufacturing overhead cost per unit | $3 | |
| Fixed manufacturing overhead cost per month | $ | 731,000 |
|
Management is anxious to see how profitable the new camp cot will be and has asked that an income statement be prepared for May. |
| Required: |
| 1. | Assume that the company uses absorption costing. |
| a. | Determine the unit product cost. |
| b. |
Prepare an income statement for May. |
| 2. | Assume that the company uses variable costing. |
| a. | Determine the unit product cost. |
| b. |
Prepare a contribution format income statement for May. |
In: Accounting
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:
| Beginning inventory | 0 | |
| Units produced | 35,000 | |
| Units sold | 30,000 | |
| Selling price per unit | $ | 77 |
| Selling and administrative expenses: | ||
| Variable per unit | $ | 3 |
| Fixed (per month) | $ | 569,000 |
| Manufacturing costs: | ||
| Direct materials cost per unit | $ | 16 |
| Direct labor cost per unit | $ | 8 |
| Variable manufacturing overhead cost per unit | $ | 3 |
| Fixed manufacturing overhead cost (per month) | $ | 700,000 |
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
1. Assume that the company uses absorption costing.
a. Determine the unit product cost.
b. Prepare an income statement for May.
2. Assume that the company uses variable costing.
a. Determine the unit product cost.
b. Prepare a contribution format income statement for May.
In: Accounting