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Delvig [45]
3 years ago
15

Warrick Boards calculated pension expense for its underfunded pension plan as follows:

Business
1 answer:
faltersainse [42]3 years ago
7 0

Answer:

(i) PBO - Projected Benefit Obligation.

(ii) Pension Liability.

(iii) OCI - Other Comprehensive Income.

(iv) Retained Earnings.

Explanation:

(i) Service Cost and Interest Cost would result in increase of Projected Benefit Obligation (PBO), So;

PBO = Service Cost + Interest Cost

PBO = $354,000,000 + $215,000,000

PBO = $569,000,000

(ii) Plan Assets are increase by Expected Return of $154,000,000, and this amount will be deducted from the PBO because this has already been included in the Balance Sheet under Assets;

Pension Liability = PBO - Plan Assets

Pension Liability = $569,000,000 - $154,000,000

Pension Liability = $415,000,000

(iii) Other Comprehensive Income - OCI is the amortization of the Prior Service Cost that will reduce the OCI account during the period of time along with the loss on OCI which will also be accounted for, as follows;

OCI = Prior Service Cost + Net Loss

OCI = $21,000,000 + $4,000,000

OCI = $25,000,000

(iv) Retained Earnings will be decreased as pension will be paid from the retained earnings account and can be calculated as follows;

Retained Earnings = - Pension Expense + Prior Service Cost + Net Gain on plan assets + Net Loss on OCI

Retained Earnings = - $440,000,000 + $21,000,000 + $11,000,000 + $4,000,000

Retained Earnings = - $404,000,000

Hence Share holders' Equity will be reduced by $404,000,000.

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Jensen Company has a contribution margin ratio of 45%. This means that its variable costs are 55% of sales. True False
Sergeeva-Olga [200]

Answer:

Jensen company has a contribution margin ratio of 45%. This means that its variable costs are 55% of sales.

This statement is true

Explanation:

Contribution margin ratio is the ratio of contribution to sales. Since the contribution margin ratio is 45%, it implies that variable costs are 55% of sales.

5 0
3 years ago
Presented below are two independent cases related to available-for-sale debt investments. Case 1 Case 2 Amortized cost $41,640 $
netineya [11]

Answer:

Case 1 = $9,420

Case 2 = 0

Explanation:

Determining the amount of impairment loss is given below:-

Case 1

Impairment loss = Amortized cost - Fair value

= $41,640 - $32,220

= $9,420

Case 2

Impairment loss = Amortized cost - Fair value

= 91,800 - $102,220

= 0

Since, the fair value is higher than Amortized cost so the value of Impairment loss in case 2 is 0.

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Ow did easy consumer credit help the u.s. economy during the early 1920s?
alexandr1967 [171]
People bought more goods and created high demand for new products
5 0
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Which is NOT a step in a career plan?
zepelin [54]

Answer:

D. go on vacation to the beach

3 0
3 years ago
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A bottling plant fills 2,400 bottles every two hours. The lead time is 40 minutes and a container accommodates 120 bottles. The
Ludmilka [50]

Answer:

= 7.77

≅ 8 kanban cards

Explanation:

 K = \frac{DL(1 + S)}{C}

K = Number of kanban card sets

D = Average number of units demanded over some time period

L = Lead time to replenish an order

S = Safety stock expressed as a percentage of demand

C = Container size

where,

D = If the average number of units demanded is 2400 and the time period is 2 hours, then that's 1200 in an hour, 1200 in 60 minutes, 20 in one minute.  

L = 40

S = 0.1

C = 120

K = 20 * 40 (1 + 0.1) / 120

K = 7.77

approximately

≅ 8 kanban cards

4 0
3 years ago
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