Answer and Explanation:
The classification is as follows
1. Investing activities : Since there is cash received from the sale of equipment so the same is to be shown in the investing activities in a positive amount
2. Investing activities
: Since there is cash paid for buy the long term investment so the same is to be shown in the investing activities in a negative amount
3. Financing activities
: Since the cash is received so the same is to be shown in the financing activities in a positive amount
4. Financing activities : Since the issuance of preferred stock is there so the same is to be shown in the financing activities in a positive amount
5. Financing activities : Since the cash is paid so the same is to be shown in the financing activities in a negative amount
6. Operating activities : Since the cash is received so the same is to be shown in the operating activities in the direct method as a positive amount
7. Operating activities : Since the inventories are purchased so the same is to be shown in the operating activities in the direct method as a negative amount
8. Operating activities
: Since the cash is paid so the same is to be shown in the operating activities in the direct method as a negative amount
9. Operating activities : Since the cash is paid so the same is to be shown in the operating activities in the direct method as a negative amount
10. Investing activities : Since the investment is sold so the same is to be shown in the investing activities in a positive amount
Answer:
Total direct labor costs= $295,680
Explanation:
Giving the following information:
Each Pod requires 1.4 hours of labor at a labor rate of $9.60 per hour.
Production= 22,000 Pods.
<u>First, we need to calculate the total direct labor hours required:</u>
Total direct labor hours= 22,000*1.4= 30,800 hours
<u>Now, the total direct labor costs:</u>
Total direct labor costs= 30,800*9.6
Total direct labor costs= $295,680
Answer:
1. 0.35%
2. 1.15%
Explanation:
The federal funds rate is the rate at which a bank can borrow funds from other depository institutions such as other banks and credit unions for overnight without collaterals. It is a very short term interest rate.
Discount rate at which the federal reserve system provides funds to commercial banks at the discount window. The federal reserve can control the money supply by changing the discount rate.
Here, in the given example, the federal reserve rate is 0.35%, as it is the rate at which the bank can borrow from other banks. While the discount rate is 1.15%, as this is the rate at which banks can borrow from the federal reserve.
Answer:
Decrease by $250,000
Explanation:
Calculation for what would be the effect on net income.
We would be using Differential Analysis method to find the effect on the net income
Differential Analysis
Continue with Luggage Department; Eliminate Luggage Department; Effect on Income
Sales
1,000,000 0 -1,000,000
Variable cost
-250,000 0 250,000
Direct fixed costs
-500,000 0 500,000
Indirect fixed costs
-300,000 -300,000 0
Net Income
-$50,000 -$300,000 -$250,000
Therefore in a situation where the luggage department is eliminated, the income would decrease by $250,000
Answer:
$35,400
Explanation:
The computation of the increase in sales is shown below:
The Total sales value is
= Number of units sold × selling price per unit
= 2,950 units × $40 per unit
= $118,000
Now if the contribution margin increases by 30, so ultimately the sales is also increased by 30%
Therefore, the increase in sales is
= $118,000 × 30%
= $35,400
