In, ​& Sons, a small​ environmental-testing firm, has a small environmental-testing firm, performed 11,400 radon tests for $260 each and 15,000 lead tests for $210 each. Because newer homes are being built with lead-free pipes, lead-testing volume is expected to decrease by 12% next year. However, awareness of radon-related health hazards is expected to result in a 5% increase in radon-test volume each year in the near future. Jim Hart feels that if he lowers his price for lead testing to $200 per test, he will have to face only a 4% decline in lead-test sales in 2018.

Required:
a. Prepare a 2018 sales budget for Hart & Sons assuming that Hart holds prices at 2017 levels.
b. Prepare a 2018 sales budget for Hart & Sons assuming that Hart lowers the price of a lead test to $200.
c. Should Hart lower the price of a lead test in 2018 if the company’s goal is to maximize sales revenue?

Answer:

A. $5,884,200

B. $5,992,200

C. If the company's aim and objective is for them to maximize their sales revenue then they should go ahead and lower the selling price of lead tests in 2018

Explanation:

a. Preparation of 2018 sales budget for Hart & Sons assuming that Hart holds prices at 2017 levels

Sales budget

For the year ended December 31, 2018

Selling price Units sold Total Revenue

Radon tests

$260 *11,970 =$3,112,200

(11,400 x 1.05 = 11,970)

Lead tests $210*13,200= $2,772,000

(15,000 x 0.88 = 13,200)

(100%-12%=88%)

Total $5,884,200

$3,112,200+$2,772,000

b. Preparation of 2018 sales budget (lower price)

Sales budget

For the year ended December 31, 2018

Selling price Units sold Total Revenue

Radon tests

$260 *11,970 =$3,112,200

(11,400 x 1.05 = 11,970)

Lead tests $200*14,400= $2,880,000

(15,000 x 0.96 = 14,400)

(100%-4%=96%)

Total $5,992,200

$3,112,200+$2,880,000

C. If the company's aim and objective is for them to maximize their sales revenue then they should go ahead and lower the selling price of lead tests in 2018

Del Gato Clinic's cash account shows a $11,589 debit balance and its bank statement shows $10,555 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $1,829. The June 30 bank statement lists a $16 bank service charge. Check No. 919, listed with the canceled checks, was correctly drawn for $467 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $476. The June 30 cash receipts of $2,856 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement.
Prepare its bank reconciliation using the above information.
DEL GATO CLINIC
Bank Reconciliation
June 30
Book balance
Add: Bank statement balance
Add:
Deduct: Deduct:
Adjusted bank balance Adjusted book balance

Casino Inc. expects to pay a dividend of $6 per share at the end of year 1 (Div1) and these dividends are expected to grow at a constant rate of 6 percent per year forever. If the required rate of return on the stock is 20 percent, what is the current value of the stock today?

A processor makes two components, A and B, which are then packaged together as the final product (each product sold contains one A and one B). The processor can do only one component at a time: either it can make As or it can make Bs. There is a setup time when switching from A to B.

Current plans are to make 100 units of component A, then 100 units of component B, then 100 units of component A, then 100 units of component B, and so forth, where the setup and run times for each component are given below.

COMPONENT SETUP/CHANGEOVER TIME RUN TIME/UNIT
A 5 minutes 0.2 minute
B 10 minutes 0.1 minute

Assume the packaging of the two components is totally automated and takes only two seconds per unit of the final product. This packaging time is small enough that you can ignore it.

Require:
What is the average hourly output, in terms of the number of units of packaged product (which includes one component A and one component B)?

Amount of an Annuity John Goodheart wishes to provide for 6 annual withdrawals of $3,000 each beginning January 1, 2029. He wishes to make 10 annual deposits beginning January 1, 2019, with the last deposit to be made on January 1, 2028. Required: If the fund earns interest compounded annually at 10%, how much is each of the 10 deposits

g you are eligible for a 30 year fixed rate home mortgage with 3.6% interest rate what is the maximum loan you can get

leased the asset on a 2-year lease, the payment would be $110 at the begin- ning of each year. If RC borrowed and bought, the bank would charge 10% interest on the loan. In either case, the equipment is worth nothing after 2 years and will be discarded. Should RC lease or buy the equipment?

During November, the production department of a process operations system completed and transferred to finished goods 26,000 units that were in process at the beginning of November and 120,000 units that were started and completed in November. November's beginning inventory units were 100% complete with respect to materials and 45% complete with respect to conversion. At the end of November, 33,000 additional units were in process in the production department and were 100% complete with respect to materials and 65% complete with respect to conversion.

Required:
Compute the number of equivalent units with respect to materials for November using the weighted-average method.

Van Frank Telecommunications has a patent on a cellular transmission process.
1. The company has amortized the $19.80 million cost of the patent on a straight-line basis, since it was acquired at the beginning of 2012.
2. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost.
3. The decision was made at the end of 2016 (before adjusting and closing entries).
What is the appropriate adjusting entry for patent amortization in 2016 to reflect the revised estimate.
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) Record the adjusting entry for patent amortization in 2016.

The manager of ABC, Inc decides to order the same number of widgets this year as last year. The manager has made a(n) ________ decision.

Farley Inc. has perpetual preferred stock outstanding that sells for $50 a share and pays a dividend of $5.00 at the end of each year. What is the required rate of return? Round your answer to two decimal places.

The two principle methods of measuring Gross Domestic Product are the A. expenditures approach and the income approach. B. flow approach and the stock approach. C. intermediate approach and the valueadded approach. D. domestic approach and the international approach.

You are the manager of a monopoly that faces a demand curve described by P = 85 − 5Q. Your costs are C = 20 + 5Q. The profit-maximizing output for your firm is:

Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process. The following describes production operations for October.

Direct materials used $226,000
Direct labor used 30% in Shredding; 70% in Bagging. $112,000
Predetermined overhead rate (based on direct labor) 165 %
Transferred to Bagging $206,500
Transferred to finished goods $583,000

The company's revenue for the month totaled $470,000 from credit sales, and its cost of goods sold for the month is $240,000.

Required:
Prepare summary journal entries dated October 31 to record its October production activities for:

a. Direct materials usage
b. Direct labor incurred
c. Overhead applied
d. Goods transfer from Shredding to Bagging.
e. Goods transfer from Bagging to finished goods.
f. Credit sales
g. Cost of goods sold.

Learning design software, applying to college and creating a website to showcase work are examples of ______ that lead to a career as a graphic artist?

In 2013, Space Technology Company modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures:
Basic research to develop the technology $ 2,000,000
Engineering design work 680,000
Development of a prototype device 300,000
Acquisition of equipment 60,000
Testing and modification of the prototype 200,000
Legal and other fees for patent application on the new
communication system 40,000
Legal fees for successful defense of the new patent 20,000
Total $ 3,300,000
The equipment will be used on this and other research projects. Depreciation on the equipment for 2013 is $10,000.
During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all of the above as costs of the patent. Management contends that the device simply represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized.
Required:
Prepare correcting entries that reflect the appropriate treatment of the expenditures.
1. Record the correcting entry to expense R&D costs incorrectly capitalized
2. Record the correcting entry to capitalize the cost of equipment incorrectly capitalized as a patent.
3. Record the correcting entry to record depreciation on equipment used in R&D projects.

Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms:
Silver Enterprises
Current assets $ 10,000
Current liabilities $ 7,840
Other assets 3,100
Long-term debt 5,110
Net fixed assets 17,300
Equity 17,450
Total $ 30,400
Total $ 30,400
All Gold Mining
Current assets $ 2,920
Current liabilities $ 2,620
Other assets 1,380
Long-term debt 0
Net fixed assets 6,110
Equity 7,790
Total $ 10,410
Total $ 10,410
Construct the balance sheet for the new corporation if the merger is treated as a purchase for accounting purposes. The market value of All Gold Mining's fixed assets is $7,510; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $14,660 in new long-term dept to finance the acquisition.

Ignacio received his certificate in hospitality management Which type of schooling would give him a certificate?
O a two-year college
O a vocational school
O a four-year college
O high school

The following trial balance of Blues Traveler Corporation does not balance.

Blues Traveler Corporation Trial Balance April 30, 2020

Debit Credit
Cash $5,912
Accounts Receivable 5,240
Supplies 2,967
Equipment 6,100
Accounts Payable $7,044
Common Stock 8,000
Retained Earnings 2,000
Service Revenue 5,200
Office Expense 4,320 00000
$24,539 $22,244

An examination of the ledger shows these errors.

1. Cash received from a customer on account was recorded (both debit and credit) as $1,380 instead of $1,830.
2. The purchase on account of a computer costing $3,200 was recorded as a debit to Office Expense and a credit to Accounts Payable.
3. Services were performed on account for a client, $2,250, for which Accounts Receivable was debited $2,250 and Service Revenue was credited $225.
4. A payment of $95 for telephone charges was entered as a debit to Office Expense and a debit to Cash.
5. The Service Revenue account was totaled at $5,200 instead of $5,280.

Required:
From this information prepare a corrected trial balance.

According to the video, which activities are Executive Secretaries and Administrative Assistants likely to do? Check all that apply.

If a specific economy has extra capital resources available,
be able to produce top-quality goods and services.
continually look to expand and invest.
be able to produce more goods and services needed and wanted by society.
have additional labor available to focus on production.
this

berkshire hathaway a corporation, owns Goldman Sachs preferred stock with a 12 dividend yield. What is Berthshire Hathaway's after-tax dividend yield on this preferred stock if their marginal tax rate is

Presented below are condensed financial statements adapted from those of two actual companies competing as the primary players in a specialty area of the food manufacturing and distribution industry. ($ in millions, except per share amounts.)
Balance Sheets
Metropolitan Republic
Assets $ 179.3 $ 37.1
Cash
Accounts receivable (net) 422.7 325.0
Short-term investments — 4.7
Inventories 466.4 635.2
Prepaid expenses and other current assets134.6 476.7
Current assets $ 1,203.0 1,478.7
Property, plant, and equipment (net) 2,608.2 2,064.6
Intangibles and other assets 210.3 464.7
Total assets $ 4,021.5 $4,008.0
Liabilities and Shareholders’ Equity
Accounts payable $ 467.9 691.2
Short-term notes 227.1 557.4
Accruals and other current liabilities 585.2 538.5
Current liabilities $ 1,280.2 1,787.1
Long-term debt 535.6 542.3
Deferred tax liability 384.6 610.7
Other long-term liabilities 104.0 95.1
Total liabilities $ 2,304.4 3,035.2
Common stock (par and additional paid-in capital)
144.9 335.0
Retained earnings 2,476.9 1,601.9
Less: treasury stock (904.7) (964.1)
Total liabilities and shareholders’ equity $
4,021.5 4,008.0
Income Statements
Net sales 5,698.0 7,768.2
Cost of goods sold (2,909.0) (4,481.7)
Gross profit $ 2,789.0 3,286.5
Operating expenses (1,743.7 ) (2,539.2)
Interest expense (56.8) (46.6)
Income before taxes $ 988.5 700.7
Tax expense (394.7) (276.1)
Net income 593.8 424.6
Net income per share $ 2.40 6.50
Note: Because comparative statements are not provided you should use year-end balances in place of average balances as appropriate.
Required:
Calculate the rate of return on assets for the following companies
Calculate the return on assets for both companies.
Calculate the Rate of return on shareholders’ equity for the following companies
Calculate the equity multiplier for the following companies.
Calculate the acid-test ratio and current ratio for the following companies.
Calculate the receivables and inventory turnover ratios the following companies.
Calculate the times interest earned ratio for the following companies.

The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.
Accounts Debit Credit
Cash $12,000
Accounts Receivable 150,000
Prepaid Rent 6,000
Supplies 30,000
Equipment 400,000
Accumulated Depreciation $135,000
Accounts Payable 12,000
Salaries Payable 11,000
Interest Payable 5,000
Notes Payable (due in two years) 40,000
Common Stock 300,000
Retained Earnings 60,000
Service Revenue 500,000
Salaries Expense 400,000
Rent Expense 20,000
Depreciation Expense 40,000
Interest Expense 5,000
Totals $1,063,000 $1,063,000
Accounts Debit Credit
Service Revenue 500,000
Salaries Expense 400,000
Rent Expense 20,000
Depreciation Expense 40,000
Interest Expense 5,000
Total $1,063,000 $1,063,000
Required:
1. Prepare an income statement for the year ended December 31, 2021.
2. Prepare a statement of stockholders' equity for the year ended December 31, 2021, assuming no common stock was issued during 2021.
3. Prepare a classified balance sheet as of December 31, 2021.

A company looking to expand internationally with little risk would choose?

Type the correct answer in the box. Spell all words correcty.
George has to present the goals of information management to his team member. What is a goal of Information management?
The goal of Information management is to identify information requirements for various what levels

​If the price level increases by 2 percent each year, the inflation rate is increasing. a. True b. False

The City of Waterville applied for a grant from the state government to build a pedestrian bridge over the river inside the city’s park. On May 1, the city was notified that it had been awarded a grant of up to $200,000 for the project. The state will provide reimbursement for allowable expenditures. On May 5, the special revenue fund entered into a short-term loan with the General Fund for $200,000 so it could start bridge construction. During the year, the special revenue fund expended $165,000 for allowable bridge construction costs, for which it submitted documentation to the state. Reimbursement was received from the state on December 13, 2017.

Required:
For the special revenue fund, provide the appropriate journal entries, if any, that would be made for the following.

a. May 5, 2017, loan from General Fund.
b. During FY 2017, bridge expenditures and submission of reimbursement documentation.
c. December 13, 2017, receipt of the grant reimbursement funds.
d. December 31, 2017, adjusting and closing entries.

What is the term for the relationship between printer and paper?
Printer and paper are
to each other.
NOT ANALOGY

Adam Holmes is the Processing Manager of Empire Mortgage Company, a firm that processes loan applications for a number of regional builders. Home buying and therefore mortgage processing is a highly seasonal business, and requires temporary staff during busy processing periods. Holmes hires staff on a monthly basis from two different temporary staffing firms - Professional Temps (PT) and Support on Demand (SD). In June, Empire hired 14 staff members from PT and 10 from SD. PT is a more established firm and SD is a newly organized firm in the staffing market. Holmes has compiled the following information for June:


Budgets for June PT staff SD staff
Budgeted hourly rate $50 $45
Budgeted time per app. (hours) 1.2 1.4

Actual results for June PT staff SD staff
Actual hourly rate $52 $47
Actual time per app. (hours) 1.4 1.2
Number of actual apps completed 2604 1600

Required:
a. Determine the labor rate and efficiency variances for (a) 14 PT staff and (b) the SD staff hired in June.
b. Comment on the efficiency of the PT and SD staff hired by Empire Mortgage.

Mechanistic vs. Organic Structures Managers taking a contingency approach must consider numerous factors in designing the best kind of structure for their particular organization at that particular time. British behaviorists Tom Burns and G.M. Stalker identified what they call mechanistic and organic structures. Depending on the task environment and a variety of other considerations, the type of organizational structure chosen can be critical to organizational success. This exercise will test your knowledge of the characteristics of each of these types of organizational structure.

Select the most appropriate category (mechanistic or organic structure) for each of the characteristics of organizations.

1. Few rules and procedures
2. Narrow span of control
3. Specialized tasks
4. Many teams or task forces
5. Many rules and procedures
6. Decentralized hierarchy of authority
7. Flatter structure
8. Informal communication
9. Taller structure
10. Centralized hierarchy of authority
11. Wider span of control
12. Shared tasks
13. Formalized communication
14. Few teams or task forces


Category:

a. Mechanistic Organizations
b. Organic Organizations