Assume that one of your cousins takes a loan of $12,000 from a bank at 18 per cent interest rate. If your cousin plans to repay $1,200 per quarter against this loan amount, in how many years she would be able to repay the loan (and accumulated interest) fully?
In: Finance
Analyzing an Inventory Footnote
Disclosure
The inventory footnote from Deere & Company’s 2015 10-K
follows.
Inventories Most inventories owned by Deere &
Company and its U.S. equipment subsidiaries are valued at cost, on
the “last-in, first-out” (LIFO) basis. Remaining inventories are
generally valued at the lower of cost, on the “first-in, first-out”
(FIFO) basis, or market. The value of gross inventories on the LIFO
basis represented 66 percent and 65 percent of worldwide gross
inventories at FIFO value at October 31, 2015 and 2014,
respectively. If all inventories had been valued on a FIFO basis,
estimated inventories by major classification at October 31 in
millions of dollars would have been as follows:
|
$ millions |
2015 | 2014 |
|---|---|---|
| Raw materials and supplies | $1,559 | $1,724 |
| Work-in-process | 450 | 654 |
| Finished goods and parts | 3,234 | 3,360 |
| Total FIFO value | 5,243 | 5,738 |
| Less adjustment to LIFO value | 1,426 | 1,528 |
| Inventories | $3,817 | $4,210 |
This footnote reveals that not all of Deere's inventories are
reported using the same inventory costing method (companies can use
different inventory costing methods for different inventory
pools).
a. What amount does Deere report for inventories on its 2015
balance sheets? $Answer million
b. What would Deere have reported as inventories on its 2015
balance sheet had the company used FIFO inventory costing for all
of its inventories? $Answer million
c. What cumulative effect has the use of LIFO inventory costing
had, as of year-end 2015, on Deere's pretax income compared with
the pretax income it would have reported had it used FIFO inventory
costing for all of its inventories?
Deere's cumulative pretax income has Answerdecreasedincreased by
$Answer million since it adpoted LIFO inventory costing.
d. Assuming a 35% income tax rate, by what cumulative dollars
amount has Deere's tax expense been affected by use of LIFO
inventory costing as of year-end 2015? Has the use of LIFO
inventory costing increased or decreased Deere's cumulative tax
expense?
(Round answer to one decimal place.)
Deere's cumulative income taxes were Answerhigherlower by $Answer
million as compared to the taxes that would've been paid under the
FIFO system.
e. What effect has the use of LIFO inventory costing had on Deere's
pretax income and tax expense for 2015 only (assume a 35% income
tax rate)?
(Round answers to one decimal place, if applicable.)
2015 pretax income Answerdecreasedincreased by $Answer
million.
2015 tax expense Answerdecreasedincreased by $Answer million.
In: Accounting
(Scenario )You are a manager at Lectocomp Electronics Manufacturing Company, a company that produces a number of different computer boards used in various products produced by their customers. At the company’s quarterly meeting, the head of marketing described a new product to be introduced in the first quarter of the next fiscal year, approximately twelve months from now. The product will be a device used in different medical products. As a result, any work done on that product falls under various government regulations. This regulation aspect is new to Lectocomp Manufacturing. This product will open new markets for the sales channel, lay the foundation for add-on products, and generate new revenues. You have only seen preliminary sketches of the new product, but you are very excited by it.
The project will require participation from most of the company’s departments: design, engineering, production, purchasing, shipping, sales, and marketing departments. Lectocomp Manufacturing uses another company to produce the prototype boards; the final boards will be manufactured in-house. Although this is a "mission-critical" project, no additional staff will be added. People will be expected to balance their project responsibilities with their day-to-day work (including other projects). The project manager is to be selected from the engineering department. This is a first, as the project managers normally come from the marketing department. A project of this scale has never been managed by an in-house person before. Historically, a project manager/consultant has been brought in. You were hired as an engineer with Lectocomp three months ago, and this week, you were told that you have been selected to be the project manager. In your prior job, you were a project manager for most of the company’s large initiatives—most of which were quite successful.
You have experience in manufacturing and medical products but have not done any product work since you started at Lectocomp. You have been involved in some engineering clean-up activities and have not worked with many people outside your department yet. The company has not historically had strong processes to follow nor has communication been a core competency. However, six months ago, a new CEO was brought on board who has focused on improving the organization’s skills in those areas. She is the leader who has insisted on managing the project internally. She is also somewhat familiar with the regulated environment and requires that you follow all the strict, formal processes that will need to be implemented as the project progresses. She is in the process of interviewing candidates for a new quality manager position. This manager will be responsible for implementing the required processes, controls, and metrics; you will be working closely with that person.
You have been meeting with the CEO, the project sponsor, your manager, and the heads of all the other departments to discuss the project and their expectations. You are starting to be concerned about the level of risk of this project and whether or not the organization really understands it. As far as you can tell, the company has never done formal risk management, taking a more relaxed approach to risks. You are starting to develop your risk management plan; you will present it to your manager and the sponsor in two weeks along with some other project planning deliverables.
Assignment Guidelines:
Note: This list will be used in later activities throughout the course.
Your submitted assignment (250 points) must include the following:
In: Operations Management
Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture.
| Required: |
| 1. |
Classify the following manufacturing costs of Business Solutions by behavior and traceability. |
| Product Costs | Cost by Behavior | Cost by Traceability |
| 1. Monthly flat fee to clean workshop | (Click to select)VariableFixed | (Click to select)IndirectDirect |
| 2. Laminate coverings for desktops | (Click to select)VariableFixed | (Click to select)IndirectDirect |
| 3. Taxes on assembly workshop | (Click to select)FixedVariable | (Click to select)IndirectDirect |
| 4. Glue to assemble workstation component parts | (Click to select)FixedVariable | (Click to select)IndirectDirect |
| 5. Wages of desk assembler | (Click to select)VariableFixed | (Click to select)IndirectDirect |
| 6. Electricity for workshop | (Click to select)FixedVariable | (Click to select)IndirectDirect |
| 7. Depreciation on tools | (Click to select)VariableFixed | (Click to select)DirectIndirect |
| Direct materials: $2,300 |
| Factory overhead: $480 |
| Direct labor: $900 |
| Beginning goods in process: none (December 31, 2011) |
| Ending goods in process: $580 (January 31, 2012) |
| Beginning finished goods inventory: none (December 31, 2011) |
| Ending finished goods inventory: $330 (January 31, 2012) |
| 2. |
Assume the above manufacturing costs. Prepare a manufacturing statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
| Business Solutions | |
| Manufacturing Statement | |
| For Month Ended January 31, 2012 | |
| (Click to select)Direct materialsFactory overhead costsAdd: Goods in process, December 31, 2011Less: Goods in process, January 31, 2012Direct labor | $ |
| (Click to select)Direct laborAdd: Goods in process, December 31, 2011Factory overhead costsLess: Goods in process, January 31, 2012Direct materials | |
| (Click to select)Direct materialsAdd: Goods in process, December 31, 2011Direct laborLess: Goods in process, January 31, 2012Factory overhead costs | |
| Total manufacturing costs | |
| (Click to select)Direct laborCost of goods manufacturedFactory overhead costsAdd: Goods in process, December 31, 2011Less: Goods in process, January 31, 2012 | |
| Total cost of goods in process | |
| (Click to select)Direct laborLess: Goods in process, January 31, 2012Cost of goods manufacturedFactory overhead costsAdd: Goods in process, December 31, 2011 | |
| (Click to select)Add: Goods in process, December 31, 2011Less: Goods in process, January 31, 2012Cost of goods manufacturedDirect laborFactory overhead costs | $ |
| 3. |
Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
| Business Solutions | |
| Partial Income Statement | |
| For Month Ended January 31, 2012 | |
| (Click to select)Factory overhead costsGoods available for saleFinished goods inventory, December 31, 2011Less: Finished goods inventory, January 31, 2012Cost of goods manufactured | $ |
| (Click to select)Less: Finished goods inventory, January 31, 2012Cost of goods manufacturedGoods available for saleFinished goods inventory, December 31, 2011Factory overhead costs | |
| (Click to select)Cost of goods manufacturedDirect laborFinished goods inventory, December 31, 2011Goods available for saleFactory overhead costs | |
| (Click to select)Finished goods inventory, December 31, 2011Factory overhead costsCost of goods manufacturedLess: Finished goods inventory, January 31, 2012Direct labor | |
| Cost of goods sold | $ |
In: Economics
|
Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture. |
| Required: |
| 1. |
Classify the following manufacturing costs of Business Solutions by behavior and traceability. |
| Product Costs | Cost by Behavior | Cost by Traceability |
| 1. Monthly flat fee to clean workshop | (Click to select)VariableFixed | (Click to select)DirectIndirect |
| 2. Laminate coverings for desktops | (Click to select)FixedVariable | (Click to select)IndirectDirect |
| 3. Taxes on assembly workshop | (Click to select)FixedVariable | (Click to select)IndirectDirect |
| 4. Glue to assemble workstation component parts | (Click to select)VariableFixed | (Click to select)IndirectDirect |
| 5. Wages of desk assembler | (Click to select)VariableFixed | (Click to select)IndirectDirect |
| 6. Electricity for workshop | (Click to select)VariableFixed | (Click to select)IndirectDirect |
| 7. Depreciation on tools | (Click to select)FixedVariable | (Click to select)DirectIndirect |
| Direct materials: $2,600 |
| Factory overhead: $550 |
| Direct labor: $900 |
| Beginning goods in process: none (December 31, 2011) |
| Ending goods in process: $550 (January 31, 2012) |
| Beginning finished goods inventory: none (December 31, 2011) |
| Ending finished goods inventory: $370 (January 31, 2012) |
| 2. |
Assume the above manufacturing costs. Prepare a manufacturing statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
| Business Solutions | |
| Manufacturing Statement | |
| For Month Ended January 31, 2012 | |
| (Click to select)Direct materialsAdd: Goods in process, December 31, 2011Less: Goods in process, January 31, 2012Direct laborFactory overhead costs | $ |
| (Click to select)Less: Goods in process, January 31, 2012Direct laborAdd: Goods in process, December 31, 2011Factory overhead costsDirect materials | |
| (Click to select)Direct laborDirect materialsFactory overhead costsLess: Goods in process, January 31, 2012Add: Goods in process, December 31, 2011 | |
| Total manufacturing costs | |
| (Click to select)Less: Goods in process, January 31, 2012Cost of goods manufacturedDirect laborFactory overhead costsAdd: Goods in process, December 31, 2011 | |
| Total cost of goods in process | |
| (Click to select)Direct laborAdd: Goods in process, December 31, 2011Cost of goods manufacturedFactory overhead costsLess: Goods in process, January 31, 2012 | |
| (Click to select)Cost of goods manufacturedAdd: Goods in process, December 31, 2011Direct laborFactory overhead costsLess: Goods in process, January 31, 2012 | $ |
| 3. |
Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
| Business Solutions | |
| Partial Income Statement | |
| For Month Ended January 31, 2012 | |
| (Click to select)Less: Finished goods inventory, January 31, 2012Finished goods inventory, December 31, 2011Factory overhead costsGoods available for saleCost of goods manufactured | $ |
| (Click to select)Factory overhead costsCost of goods manufacturedLess: Finished goods inventory, January 31, 2012Finished goods inventory, December 31, 2011Goods available for sale | |
| (Click to select)Factory overhead costsDirect laborFinished goods inventory, December 31, 2011Cost of goods manufacturedGoods available for sale | |
| (Click to select)Factory overhead costsFinished goods inventory, December 31, 2011Cost of goods manufacturedDirect laborLess: Finished goods inventory, January 31, 2012 | |
| Cost of goods sold | $ |
In: Accounting
Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture.
| Required: |
| 1. |
Classify the following manufacturing costs of Business Solutions by behavior and traceability. |
| Product Costs | Cost by Behavior | Cost by Traceability |
| 1. Monthly flat fee to clean workshop | (Click to select)VariableFixed | (Click to select)IndirectDirect |
| 2. Laminate coverings for desktops | (Click to select)VariableFixed | (Click to select)IndirectDirect |
| 3. Taxes on assembly workshop | (Click to select)FixedVariable | (Click to select)IndirectDirect |
| 4. Glue to assemble workstation component parts | (Click to select)FixedVariable | (Click to select)IndirectDirect |
| 5. Wages of desk assembler | (Click to select)VariableFixed | (Click to select)IndirectDirect |
| 6. Electricity for workshop | (Click to select)FixedVariable | (Click to select)IndirectDirect |
| 7. Depreciation on tools | (Click to select)VariableFixed | (Click to select)DirectIndirect |
| Direct materials: $2,300 |
| Factory overhead: $480 |
| Direct labor: $900 |
| Beginning goods in process: none (December 31, 2011) |
| Ending goods in process: $580 (January 31, 2012) |
| Beginning finished goods inventory: none (December 31, 2011) |
| Ending finished goods inventory: $330 (January 31, 2012) |
| 2. |
Assume the above manufacturing costs. Prepare a manufacturing statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
| Business Solutions | |
| Manufacturing Statement | |
| For Month Ended January 31, 2012 | |
| (Click to select)Direct materialsFactory overhead costsAdd: Goods in process, December 31, 2011Less: Goods in process, January 31, 2012Direct labor | $ |
| (Click to select)Direct laborAdd: Goods in process, December 31, 2011Factory overhead costsLess: Goods in process, January 31, 2012Direct materials | |
| (Click to select)Direct materialsAdd: Goods in process, December 31, 2011Direct laborLess: Goods in process, January 31, 2012Factory overhead costs | |
| Total manufacturing costs | |
| (Click to select)Direct laborCost of goods manufacturedFactory overhead costsAdd: Goods in process, December 31, 2011Less: Goods in process, January 31, 2012 | |
| Total cost of goods in process | |
| (Click to select)Direct laborLess: Goods in process, January 31, 2012Cost of goods manufacturedFactory overhead costsAdd: Goods in process, December 31, 2011 | |
| (Click to select)Add: Goods in process, December 31, 2011Less: Goods in process, January 31, 2012Cost of goods manufacturedDirect laborFactory overhead costs | $ |
| 3. |
Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
| Business Solutions | |
| Partial Income Statement | |
| For Month Ended January 31, 2012 | |
| (Click to select)Factory overhead costsGoods available for saleFinished goods inventory, December 31, 2011Less: Finished goods inventory, January 31, 2012Cost of goods manufactured | $ |
| (Click to select)Less: Finished goods inventory, January 31, 2012Cost of goods manufacturedGoods available for saleFinished goods inventory, December 31, 2011Factory overhead costs | |
| (Click to select)Cost of goods manufacturedDirect laborFinished goods inventory, December 31, 2011Goods available for saleFactory overhead costs | |
| (Click to select)Finished goods inventory, December 31, 2011Factory overhead costsCost of goods manufacturedLess: Finished goods inventory, January 31, 2012Direct labor | |
| Cost of goods sold | $ |
In: Accounting
|
Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture. |
| Required: |
| 1. |
Classify the following manufacturing costs of Business Solutions by behavior and traceability. |
| Product Costs | Cost by Behavior | Cost by Traceability |
| 1. Monthly flat fee to clean workshop | (Click to select)FixedVariable | (Click to select)IndirectDirect |
| 2. Laminate coverings for desktops | (Click to select)VariableFixed | (Click to select)IndirectDirect |
| 3. Taxes on assembly workshop | (Click to select)VariableFixed | (Click to select)IndirectDirect |
| 4. Glue to assemble workstation component parts | (Click to select)VariableFixed | (Click to select)DirectIndirect |
| 5. Wages of desk assembler | (Click to select)VariableFixed | (Click to select)IndirectDirect |
| 6. Electricity for workshop | (Click to select)FixedVariable | (Click to select)DirectIndirect |
| 7. Depreciation on tools | (Click to select)VariableFixed | (Click to select)DirectIndirect |
| Direct materials: $2,200 |
| Factory overhead: $540 |
| Direct labor: $1,100 |
| Beginning goods in process: none (December 31, 2011) |
| Ending goods in process: $510 (January 31, 2012) |
| Beginning finished goods inventory: none (December 31, 2011) |
| Ending finished goods inventory: $310 (January 31, 2012) |
| 2. |
Assume the above manufacturing costs. Prepare a manufacturing statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
| Business Solutions | |
| Manufacturing Statement | |
| For Month Ended January 31, 2012 | |
| (Click to select)Direct laborDirect materialsAdd: Goods in process, December 31, 2011Factory overhead costsLess: Goods in process, January 31, 2012 | $ |
| (Click to select)Add: Goods in process, December 31, 2011Direct laborFactory overhead costsDirect materialsLess: Goods in process, January 31, 2012 | |
| (Click to select)Direct laborFactory overhead costsDirect materialsLess: Goods in process, January 31, 2012Add: Goods in process, December 31, 2011 | |
| Total manufacturing costs | |
| (Click to select)Direct laborCost of goods manufacturedAdd: Goods in process, December 31, 2011Factory overhead costsLess: Goods in process, January 31, 2012 | |
| Total cost of goods in process | |
| (Click to select)Add: Goods in process, December 31, 2011Cost of goods manufacturedDirect laborLess: Goods in process, January 31, 2012Factory overhead costs | |
| (Click to select)Less: Goods in process, January 31, 2012Factory overhead costsCost of goods manufacturedAdd: Goods in process, December 31, 2011Direct labor | $ |
| 3. |
Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
| Business Solutions | |
| Partial Income Statement | |
| For Month Ended January 31, 2012 | |
| (Click to select)Less: Finished goods inventory, January 31, 2012Cost of goods manufacturedFinished goods inventory, December 31, 2011Factory overhead costsGoods available for sale | $ |
| (Click to select)Finished goods inventory, December 31, 2011Less: Finished goods inventory, January 31, 2012Goods available for saleFactory overhead costsCost of goods manufactured | |
| (Click to select)Cost of goods manufacturedFactory overhead costsFinished goods inventory, December 31, 2011Goods available for saleDirect labor | |
| (Click to select)Finished goods inventory, December 31, 2011Cost of goods manufacturedLess: Finished goods inventory, January 31, 2012Direct laborFactory overhead costs | |
| Cost of goods sold | $ |
In: Accounting
You, the CFO of a large corporation, are evaluating the value of three different investment opportunities:
Project A: We expect this project to yield cash flows of $5 million over the next ten years.
Project B: We expect this project to yield zero cash flows for the first four years but then a $50 million dollar cash flow at the end of the fifth year.
Project C: We expect this project to yield cash flows of $500,000 forever.
If we assume that the rate of return or “r” is 5% for each of these projects, which project (set of cash flows) is worth the most to us TODAY?
In: Finance
What impact will the COVID-19 pandemic have on jobs? | World Economic Forum
In: Economics
The COVID-19 pandemic is first and foremost a human tragedy. Measures introduced to deal with the pandemic could save lives but are having wide-ranging economic effects and inducing economic contagion. Greater focus is needed on the transmission mechanisms of the economic contagion and how assessments of the economic impacts are made.
Q1 Assess the impacts of Covid-19 outbreak on regional trading agreements such as ASEAN and European Union.
Q2 Discuss the impacts of Covid-19 crisis on global financial market and the role of International Monetary Fund (IMF) in overcoming the crisis.
-The answer most be more then 1700 word withe references
In: Economics