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4 years ago

A financial analyst for Simon Manufacturing prepared the following report:

1 answer:

3 0

Answer: A.The cumulative customerminus−level operating income of the top eight customers represents about 105.1105.1% of operating income

Explanation:

The Cumulative total of the first 8 customers is,

= 5,563 + 4,474 + 3,851 + 1,049.5 + 984.80 + 844.80 + 336.60 + 252.00

= $17,355.70

The Cumulative total of the Operating Income is,

= 5,563 + 4,474 + 3,851 + 1,049.5 + 984.80 + 844.80 + 336.60 + 252.00 - 168 - 676

= $16,511.70

Dividing both figures gives,

= 17,355.70 / 16,511.70 * 100

= 1.0511051 * 100

= 105.1105.1%

Option A is therefore correct.

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Suppose that the annual interest rate is 2.0 percent in the United States and 4 percent in Germany, and that the spot exchange r

Anuta_ua [19.1K]

Answer:

$7,000

Explanation:

Using the covered interest rate parity formula

No Arbitrage Forward rate = Spot Rate * (1 + RD)/ (1 + RF)

= 1.6 * (1 + 2%)/ (1 + 4%) = 1.6 * 1.02 / 1.04 = $1.57 approximately

However, the actual forward rate = $1.58/€

Hence, there is an arbitrage opportunity.

Suppose an arbitrager borrows 1,000,000 in the United States at 2%.

Thus, after one year, he has to pay back 1,000,000 * (1 + 2%) = $1,020,000

He converts 1,000,000 into Euros at the spot exchage rate of $1.60/€.

Thus he gets 1,000,000/1.6 = €625,000

The arbitrager now invests this money in Germany at 4%.

At the same time, he enters into a forward contract to convert the money that he will get at the end of 1 year into US Dollars at a forward rate of $1.58/€

After 1 year, he gets 625,000 * (1 + 4%) = €650,000

He converts this money into USD at the exchange rate of $1.58/€ (at which he entered the forward contract)

Thus he gets 650,000 * 1.58 = $1,027,000

Amount he has to pay back = $1,000,000 * (1 + 2%) = $1,020,000

Net cash flow for the year through this arbitrage = $1,027,000 - $1,020,000 = $7,000

3 0

3 years ago

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies m

zmey [24]

Answer:

1. Overhead over applied= $521,000

2. Factory Overhead Dr. $ 521,000

Cost Of Goods Sold Cr. $ 521,000

3. Work in Process, (ratio) $521,000 * 7%= 36,470

Finished Goods, $521,000 * 19%= 98,990

Cost of Goods Sold $521,000 * 74%= 385,540

Total $521,000 100%

4. Difference between the two CGS= $ 136,060

Explanation:

Predetermined Overhead Costs $1,152,000

Estimated activity level of 72,000 machine-hours

Overhead rate= $ 1152,000/ 72,000= $ 16 per hour

Manufacturing overhead cost $551,000

Actual hours = 67,000

Overhead applied to WIP = 67,000 * 16= $ 1072,000

Overhead over applied= $ 1072,000 - $551000= $521,000

Part 2:

Factory Overhead Dr. $ 521,000

Cost Of Goods Sold Cr. $ 521,000

The Cost of Goods Sold is credited and Factory overhead is debited.

Part 3:

Suppose the overhead is applied in the following ratio

Work in Process, (ratio) $37,520 7% (37520/536,00*100%)

Finished Goods, $101,840 19% (101840/536,00*100%)

Cost of Goods Sold $396, 640 74% (396,640/536,00*100%)

Total $536,000 100%

The overhead over applied would be allocated in the following way applying the same ratio as determined above.

Work in Process, (ratio) $521,000 * 7%= 36,470

Finished Goods, $521,000 * 19%= 98,990

Cost of Goods Sold $521,000 * 74%= 385,540

Total $521,000 100%

Part 4:

Cost of Goods Sold ( overhead applied of $396, 640) $1,472,600

Less Overhead overapplied $ 521,000

CGS = $ 951,000

Cost of Goods Sold (overhead applied to WIP & FG) $1,472,600

Less Overapplied Overhead $ 385,540

CGS= $ 1087,060

Difference between the two CGS = $ 1087,060- $ 951,000= $ 136,060

5 0

3 years ago

You specialize in analyzing pharmaceutical companies. Tomorrow, the FDA is going to make an announcement about the approval of a

pshichka [43]

Answer:

$ 40

Explanation:

Given :

Bid price = $ 50

Ask price = $ 50.2

Ideal price = $\frac{\text{bid price + ask price}}{2}$

$=\frac{50+50.2}{2}$

= $ 50.1

This is the ideal price of the stock that is based on the mid point price.

The transactional cost for the buy is = Ask price - ideal price

= 50.2 - 50.1

= $ 0.1

Thus we have to give $ 0.1 as the transactional cost if we want tot buy the stock immediately, so that we buy it more than the ideal price.

Therefore, the transactional cost for the sales is = ideal cost - bid cost

= $ 50.1 - $ 50

= $ 0.1

Thus we have to pay $ 0.1 as the transactional cost if we want to sell the stock now, so as to sell it cheaper than the ideal price.

We known the quantity = 200

So the round up transactional cost = $\text{quantity}\times \text{transactional cost(buy)+transactional cost(sale)}$

= 200 x (0.1 +0.1)

= $ 40

4 0

3 years ago

In the U.S. economy, the offsetting effects of private saving compared to government borrowing are typically noted as being repr

Elan Coil [88]

Answer:

c) much less than one-to-one

Explanation:

Based on info of the GDP associated with Budget deficits and trade deficits we see that the private saving not tend to increase on cases when governments run large budget deficits, by the other hand the private saving tend to decrease when governments reduce deficits or run large budget surpluses.

And based on this info we can say that the offsetting effects associated to private saving compared to government borrowing needs to be much less than one-to-one.

In the US occurs a Budget Deficit around 1998-199 since the % of GDP increase considerably around 3-4% and a trade deficit occurs around 2004 when the % of GDP was around -6%.

5 0

4 years ago

Using the following data, Garcon Company Pepper Company Beginning finished goods inventory $ 12,000 $ 16,450 Beginning work in p

aliina [53]

Answer:

Garcon company : cost of production $96,680 cost of good sold $91,030 Gross profit $104,000 Net profit $33,000

Pepper company : cost of production $139,860 cost of good sold $143,010 Gross profit $147,000 Net profit $58,000Explanation:

Garcon. Company

T Account Format

Manufacturing, Trading, Profit and Loss Account

Dr. Cr

$ $

Raw materials. Cost of production transferred

Beginning inventory 7,250. to trading account

Add: purchase 33,000. 96,680

----------

Total materials available 40,250

Less:Ending inventory 5,300

----------

Cost of raw materials consumed 34,950

Add: Direct Labour 19,000

-----------

Prime Cost. 53,950

Factory overhead

Rental cost 27,000

Factory utilities 9,000

Factory supplies used 8,200

Indirect labour 1,250

Repair of factory equipment 4,780

-----------

50,230

Add:Beginning WIP. 14,500

----------

64,730

Less: Ending WIP 22,000

---------

42,730

--------------- ------------------------

Cost of production. 96,680. 96,680

----------------- ---------------------------

Finished good

Beginning inventory 12,000. Sales 195,030

Add: Cost of production 96,680

----------

Goods available for sale 108,680

Less: ending finished good inventory 17,650

-----------

Cost of good sold. 91,030

Gross Profit c/d. 104,000

------------- -----------------

195,030. 195,030

------------------ ----------------------

Expenses

General & Administrative expenses 21,000. Gross Profit b/d 104,000

Selling expenses. 50,000

Net profit. 33,000

------------------ ----------------

104,000 104,000

------------------- -----------------

Pepper company

T Account Format

Manufacturing , Trading, Profit and Loss Account

Dr. Cr

$ $

Raw materials. Cost of production

Beginning inventory 9,000. Transferred to trading Account

Add: purchase. 52,000. 139,860

----------

Total materials available. 61,000

Less: Ending inventory. 7,200

-----------

Cost of raw materials consumed 53,800

Add: Direct Labour. 35,000

-----------

Prime Cost. 88,800

Factory overhead

Rental cost 22,750

Factory utilities 12,000

Factory supplied used 3,200

Indirect labour 7,660

Repair of Factory equipment 1,500

-----------

47,110

Add: Beginning WIP. 19,950

-----------

67,060

Less: Ending WIP. 16,000

-----------

51,060

------------- --------------

Cost of production. 139,860. 139,860

-------------- -----------------

Finished good

Beginninginventory 16,450. Sales 290,010

Add: Cost of production 139,860

--------------

Cost of good available for sale 156,310

Less:Ending inventory 13,300

-------------

Cost of good sold. 143,010

Gross Profit c /d. 147,000

------------ ----------------

290,010. 290,010

-------------- ------------------

Expenses

General &Administrative expenses 43,000. Gross Profit b /d 147,000

Add: Selling expenses. 46,000

----------------

89,000

Net profit 58,000

-------------- -----------------

147,000. 147,000

-------------- -------------------

7 0

4 years ago

A financial analyst for Simon Manufacturing prepared the following​ report:

A financial analyst for Simon Manufacturing prepared the following report: