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uysha [10]
3 years ago
9

Newton Corporation entered into the following transactions during its first year of operations. (Assume all transactions involve

cash.) Acquired $2,000 of capital from the owners. Purchased $600 of direct raw materials. Used $400 of these direct raw materials in the production process. Paid production workers $800 cash. Paid $400 for manufacturing overhead. Started and completed 200 units of inventory. Sold 50 units at a price of $12 each. Paid $80 for selling and administrative expenses. The amount of net income for the year was:
Business
1 answer:
makkiz [27]3 years ago
8 0

Answer:

Newton Corporation

Net income for the year = $120

Explanation:

a) Data and Calculations:

Direct materials cost =   $400

Direct labor cost =            800

Manufacturing overhead 400

Total manufacturing cost $1,600

Cost per unit = $8

Ending Inventory of finished goods = 150 units * $8 = $1,200

Cost of goods sold = 50 * $8 = $400

Sales revenue = 50 * $12 = $600

Newton Corporation

Income Statement

For the year ended December 31:

Sales Revenue     $600

Cost of goods sold 400

Gross income       $200

Selling & Admin.

 expense                 80

Net Income          $120

b) Newton Corporation's net income is the difference between the Sales Revenue, cost of goods sold and selling and administrative expenses.

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You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $35,000, $39,000, $80,000,
storchak [24]

Answer:

The value of the settlement today =  $231,897.79  

Explanation:

The value of the settlement today is the sum of the present value (PV) of cash inflows discounted at the discount rate of 5.7 %.

Year                                                   PV

1              35,000 × 1.057^(-1)   = 33112.58

2                39,000× 1.057^(-2) = 34907.16

3.               80,000× 1.057^(-3)  = 67743.09

4                 120,000 × 1.057^(-4) =96134.94

The Pv of the total cash in flow =33,112.58  +  34,907.17  +  67,743.09  +  96,134.95  =  231,897.79  

The value of the settlement today =  $231,897.79  

7 0
3 years ago
On January 1, 2012, Albert invested $6,000 at 8 percent interest per year for three years. The CPI (times 100) on January 1, 201
qaws [65]

Answer:

Inflation in 2012:

=\frac{CPI\ 2013 - CPI\ 2012}{CPI\ 2012}

=\frac{110 - 100}{100}

= 10%

Inflation in 2013:

=\frac{CPI\ 2014 - CPI\ 2013}{CPI\ 2013}

=\frac{120 - 110}{110}

= 9.09%

Inflation in 2014:

=\frac{CPI\ 2015 - CPI\ 2014}{CPI\ 2014}

=\frac{126 - 120}{120}

= 5%

Real rate of interest = Nominal - inflation

Given that,

Nominal rate = 8%

Therefore,

Real interest rate is as follows:

2012:

= 8% - 10%

= -2%

2013:

= 8% - 9.09%

= -1.09%

2014:

= 8% - 5%

= 3%

$6000 at 8% grows to:

= 1000 × 1.08

= $6,480 in one year

which is invested again to grow to $6,998.4 in two years

which is invested again to grow to $7,558.272 in three years

so,

Total gain:

=\frac{7,558.272-6,000}{6000}\times100

= 25.9712%

The price level increases in three years by:

=\frac{CPI\ 2015 - CPI\ 2012}{CPI\ 2012}\times 100

=\frac{126 - 100}{100}\times 100

= 26%

So,

Total real rate of return:

= Total gain - Percentage increase in prices

= 25.9712 - 26

= -0.0288%

5 0
3 years ago
Final Exam Review Explain the Risk Management Process (4 tasks) and explain the 4 ways to respond to risk and provide an example
alex41 [277]

Identification, evaluation, and control of financial, legal, strategic, and security threats to an organization's assets and profits are done through risk management.

<h3>What is the risk management process?</h3>

A strategy for evaluating risks and opportunities, how they could impact a project or organization, and how to deal with them is known as the risk management process.

The 4 essential steps of the Risk Management Process are:

Identify the risk: Finding all the occurrences that could potentially have a negative (risk) or good (opportunity) impact on the project's goals is the first stage in the risk management process.

Assess the risk: Assessments of risk and opportunity might be qualitative or quantitative. Based on the likelihood and significance of the event, a qualitative assessment examines the level of criticality. In a quantitative analysis, the event's financial impact or benefit are examined.

Risk treatment: An organization must first prepare a treatment plan that details its strategy for managing hazards. The goal of the risk treatment strategy is to lessen the likelihood that the risk will materialize (preventive action) and/or to lessen the impact of the risk (mitigation action). The goal of a treatment plan for an opportunity is to boost the chance that it will materialize and/or to boost its advantages. A response strategy is established for the project based on the type of risk or opportunity.

Monitor and Report on the risk: It is important to monitor and report on risks, opportunities, and their management strategies. The severity of the risk or opportunity will determine how frequently this occurs. Creating a monitoring and reporting framework will guarantee that the right venues for escalation exist and that the right risk responses are being implemented.

<h3>What are the four ways to respond to risk?</h3>

Risk reduction

This method typically entails creating a different plan of action with a higher chance of success but a larger price tag.

A project team can minimize the danger of working with a new supplier whose reliability is unknown by selecting a supplier with a track record instead of a new provider who provides considerable price incentives.

Accepting and sharing risks

This strategy entails taking the risk and working with others to share accountability for risky behaviors.

By creating a joint venture with a business established in a particular country, for instance, many companies working on foreign projects will lower the political, legal, and employment risks connected with overseas ventures.

Risk mitigation

Risk mitigation entails making an investment to lower the risk associated with a project.

For instance, businesses frequently purchase a fixed exchange rate while working on overseas projects to lessen the risk posed by exchange rate swings.

Risk transfer

Risk transfer is a risk management technique that transfers project risk to a third party.

The purchase of insurance is a well-known example of risk transfer. The insurance provider assumes the risk instead of the project.

Learn more about risk management here:

brainly.com/question/4680937

#SPJ4

3 0
1 year ago
An online sales order processing system most likely would have an advantage over a batch sales order processing system by: Recor
tensa zangetsu [6.8K]

Answer:

The answer is: Enabling shipment of customer orders to be initiated as soon as the orders are received.

Explanation:

In a batch sales ordering process, your sales team gathers information about sales throughout an specific period of time and then enters it into the system all at once. While an online sales order processing system processes each sales transactions into your system immediately.

Imagine you want to buy a set of chairs and the salesman takes your order at 9 AM. If the salesman uses a batch sales ordering process, he might have to wait until midday to place your sales order along with all the other sales he did in the morning. If he was using an online sales order processing system, your sale would have been processed immediately without any other delay. That obviously saves time.    

4 0
3 years ago
Knoll, inc. currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000.
Lunna [17]
Cost per unit
(300,000÷15,000)+20=40

Current profit
50×15,000−40×15,000=150,000

Profit change
60×15,000−40×15,000=300,000

units will knoll need to sell for profit to remain the same as before the price change is
(150,000+300,000)÷40=11,250
3 0
3 years ago
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