Answer:
B) $17,838.
Explanation:
cash balance $18,000
- NSF check ($180)
<u>+ interest earned $18 </u>
reconciled cash balance $17,838
Outstanding checks ($5,400) and deposits in transit ($3,600) are used to reconcile bank statements, not the company's cash or book balance.
Answer:
Oligopolistic Companies:
a) The owners' goal is to keep players' salaries capped. TRUE
b) Goal is difficult to achieve: TRUE
c) 1994 Baseball players' strike: TRUE
d) Owners needed salary cap to dissolve collusive behavior over salaries: TRUE.
Explanation:
a) According to the Economist, Oligopoly is "a market situation in which each of a few producers affects but does not control the market. Each producer must consider the effect of a price change on the actions of the other producers." There is little competition among the players as each tries to control the market with price cuts and quantity reductions. For example, a cut in price by one may lead to an equal reduction by the others, with the result that each firm will retain approximately the same share of the market as before but at a lowered profit level.
b) According to wikipedia.com, "The 1994–95 Major League Baseball strike was the eighth work stoppage in baseball history, as well as the fourth in-season work stoppage in 22 years. Due to the strike, both the 1994 and 1995 seasons were not played to a complete 162 games; the strike was called after most teams had played at least 113 games in 1994." The strike ended the next April, after 232 days, when the players had successfully resisted the salary cap.
Answer:
When Hollis Inc. uses an 18-month operating cycle, it will classify the office building adjacent to its factory as Property Plant and Equipment. This is because it will start using the office for its internal purposes and hence it can be classified as Property, Plant and Equipment.
However, if Hollis were using a one year operating cycle, it will classify the office building as a long-term investment. This is because the company intends to use this office building for internal purposes only after 14 months - which doesn't fall in the current operating period.
It will classify the building as Property Plant and Equipment in the following year, when it begins using the office building.
Answer:
Just-in-Time/Lean Principles
The plan that best represents uniform plant loading for this plant is:
c. Produce 1500 units of X on day 1, 1500 units of X on day 2, and then 300 units of Y and 1200 units of Z on day 3.
Explanation:
a) Data and Calculations:
Total production requirements Product X Product Y Product Z
for the next three days at the factory 3,000 300 1,200
Uniform plant loading plan:
Day 1 1,500 0 0
Day 2 1,500 0 0
Day 3 0 300 1,200
Total production on the three days 3,000 300 1,200
b) The uniform plant loading plan within the just-in-time or lean production environment ensures that wastes and disruptions are minimized. It reduces inventory of raw materials, work-in-process, and finished goods, and loss due to production stoppages and setups. Operating on this just-in-time principle, production of product X will continue from Day 1 through Day 2, while production of products Y and Z will take place on Day 3, with the same quantity of products produced each day.
Answer:
financial disadvantage of dropping product J14V = $135,000, so net operating income would decrease by that amount
Explanation:
net loss generated by product J14V = $980,000 - $394,000 - $376,000 - $256,000 = ($46,000)
unavoidable fixed costs:
Fixed manufacturing expenses = $376,000 - $245,000 = $131,000
Fixed selling and administrative expenses = $256,000 - $206,000 = $50,000
total unavoidable fixed costs = $181,000
the overall effect = total unavoidable fixed costs - net loss = $181,000 - (-$46,000) = $135,000 financial disadvantage since unavoidable costs are higher than current losses