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3 years ago

Production and sales estimates for June are as follows:

Business

1 answer:

anastassius [24]3 years ago

5 0

Answer:

Production= 13,000

Explanation:

Giving the following information:

Estimated inventory (units), June 1 18,500

Desired inventory (units), June 30 19,000

Expected sales volume (units):

Area X 3,000

Area Y 4,000

Area Z 5,500

Total= 12,500

To calculate the production for the period, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 12,500 + 19,000 - 18,500

Production= 13,000

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In the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of

Vlada [557]

Answer:

The correct option is 2. $50,200

Explanation:

Please see below the required journals for the transactions that occurred:

Debit Allowance for doubtful accounts $31,800

Credit Accounts receivable $31,800

(To record write-off of accounts receivable)

Debit Accounts receivable $2,340,000

Credit Sales revenue $2,340,000

(To record credit sales during the year)

Debit Cash $1,910,000

Credit Accounts receivable $1,910,000

(To record collection on account)

The effect of the above journals on allowance for doubtful account is a reduction. Since Dinty already assessed its allowance for doubtful account to be $82,000, bad debt expense required will be $50,200 ($82,000 - $31,800).
The balance in accounts receivable will be $2,340,000 - $1,910,000 - $31,800 = $398,200.

7 0

3 years ago

The nationwide company, Nightingale Health Systems, received a tax break from the government when it was faltering and ready to

Cerrena [4.2K]

Answer:

Subsidy

Explanation:

A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut.

In economic theory, subsidies can be used to offset market failures and externalities in order to achieve greater economic efficiency.

A subsidy typically supports particular sectors of a nation’s economy. It can assist struggling industries by lowering the burdens placed on them, or encourage new developments by providing financial support for the endeavors.

7 0

3 years ago

Consider a palletizer at a bottling plant that has a fi rst cost of $150,000, operating and maintenance costs of $17,500 per yea

pshichka [43]

Answer:

Annual equivalent cost of the investment = $30,603.43 per annum

Explanation:

Equivalent Annual cost is the Present Value of the total cost over the investment period divided by the appropriate annuity factor.

Step 1 

PV of cash flows

PV of first cost = 150,000

PV of annual maintenance cost of $17,500

= 17,500× (1-(1+0.08)^(-30))/0.08

= 197,011.21

PV of salvage value

$25,000 × (1+0.08)^(-30)

= 2,484.43

PV of net total cost

= 197,011.21 +150,000 - 2,484.43

= 344,526.78

Step 2

Determine the annuity factor for 30 years at 8%

(1-(1+0.08)^(-30))/0.08

=11.2577

Step 3

Equivalent annual cost

= 344,526.78 / 11.2577

 =$30,603.43

Annual equivalent cost of the investment = $30,603.43 per annum

6 0

3 years ago

7. Alice has $15,000 for investment purposes and suppose Alice’s MARR is 18% compounded monthly. Her bank has offered the follow

stepladder [879]

Answer:

a) Annual Worth of net gain is $6793.0184

b) Annual Worth of net gain is $6395.557

c) Annual Worth of net gain is $6922.65

Recommendation: Option C is the best option for Alice

Explanation:

a) Alice will get $200 per month for 5 years which means for 60 months at the rate of 18% compounded monthly.

So FV of that cash flow

= FV(18%/12,60,-200)

= 19242.9303

A lump sum amount of $17000 at the end of 5th year

Total Worth = 19242.9303 + 17000

= $36242.9303

Annual worth = $36242.9303 / 3.1271

= $11589.94

Net Gain = $36242 - $15000

= $21242.9303

Annual Worth of net gain = $21242.9303 / 3.1271

= $6793.0184

b) Racehorse share will be worth $35000 on 5 years.

Annual Worth = $35000 / 3.1271

= $11192.48

Net Gain = $35000 - $15000

= $20000

Annual Worth of net gain = $20000 / 3.1271

= $6395.557

c) Saving account will generate funds after 5 years

= FV(18%/12,60,,-15000)

= $36648.30

Net Gain = $36648.30 - $15000

= $21648.30

Annual Worth = $36348.30 / 3.1271

= $11719.58

Annual Worth of net gain = $21648.30 / 3.1271

= $6922.65

Therefore, Option c is best for Alice.

8 0

3 years ago

What should be the basic goal of a firm when it sets a level of output

siniylev [52]

What should be the basic goal of a firm when it sets a level of output?

The firm should make sure that it maximizes its profits. Maximizing profits means they are making the most they possibly can with the items they are selling or services that are being offered. When they make their overall goals, they need to make sure they are going to be making as much as they possibly can to acheive their long-term goals.

8 0

3 years ago