The independent cases are listed below includes all balance sheet accounts related to operating activities: Net income Depreciation expense Accounts receivable increae 100,000 (200,000) (20,000) Case ACase B Case C $310,000 15,000 $420,000 40,000 150,000 80,000 (decrease) Inventory increase (decrease) Accounts payable increase (50,000) (50,000) 120,00070,000 60,000 (220,000) (40,000) 35,000 50,000 decrease) Accrued liabilities increase (decrease) Show the operating activities section of cash flows for each of the given cases (Amounts to be deducted should be indicated with a minus sign.) Case A Case B Case C Net Income Adjustments to Reconcile Net Income to net Cash provided by operating activities Depreciation Changes in Assets and Liabilities Accounts Receivable Inventory Accounts Payable Accrued Liabilities Net Cash Provided by OperatingActivities

Answers

Answer 1
Answer:

Answer: Please see below

Explanation: The values from  the question are scattered, but here is how they should appear

                                                    Case A       Case B         Case C  

Net income                               $310,000         15,000 $420,000    

Depreciation expense                  40,000   150,000       80,000

Accounts receivable increase

(decrease                                      100,000 (200,000) (20,000)

Inventory increase (decrease)        (50,000)   35,000   50,000

Accounts payable increase           (50,000)   120,000   70,000

Accrued liabilities increase

(decrease)                                  60,000  (220,000) (40,000)

To calculate the operating activities section of cash flows for each of the given cases,

we use the Indirect method formula

Net cash flow from operating actvities  = Net Income + Non-Cash Expenses – Increase in Working Capital

Net cash flow from operating actvities =Net Income +/- Changes in Assets & Liabilities + Non-Cash Expenses

Net cash flow from operating actvities = Net Income + Depreciation + Stock Based Compensation + Deferred Tax + Other Non Cash Items – Increase in Accounts Receivable – Increase in Inventory + Increase in Accounts Payable + Increase in Accrued Expenses + Increase in Deferred Revenue

Following the formulae above, we can determine what expense should be added or subtracted to give the operating activities of cash flow below as

                                  Case A                   Case B               Case C

Net Income               $310,000                15,000         $420,000  

Net Income Adjustments to Reconcile Net Income to net Cash provided by operating activities

Depreciation                   40,000              150,000       80,000

Changes in Assets and Liabilities

Accounts Receivable        - 100,000       200,000           20,000

Inventory                              50,000           -35,000        - 50,000    

Accounts Payable            -50,000            120,000       70,000

Accrued Liabilities              60,000           - 220,000       -40,000

Net Cash Provided by Operating Activities

                                      $310,000         $230,000       $500,000


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Last year, Dora, Inc. produced 70,000 widgets and incurred $210,000 of variable costs and $196,000 of fixed costs. Dora has received a special order from a foreign customer for 3,000 widgets. Dora has sufficient capacity to fill the order without jeopardizing regular sales. Dora would incur $3,150 in additional shipping charges to fulfill this special order. If Dora wants to break even on this order, what should the unit selling price be:A : $4.05
B : $6.85
C : $5.80
D : $3.00

Answers

Answer:

B : $6.85

Explanation:

Because Dora, Inc. has enough capacity to fill the special order in excess of regular sales volume, the fixed cost of its remain unchanged at $196,000.

Widget variable cost per unit of Dora is 210,000/70,000 = $3

To break even on the special order, the respective total sales amount  has to cover all related cost, including allocated fixed cost, variable cost as well as additional shipping charges. Putting all the numbers together, we have:

3,000 x P - 196,000 x (3,000/73,000) - 3 x 3,000 - 3,150 = 0 with P is the selling price.

Solve the equation we get P = 6.73. Option answer A,C or D will result in loss for this special order. So, the suitable answer is B.  

Answer:

$4.05

Explanation:

Dana has a portfolio of 8 securities, each with a market value of $5,000. The current beta of the portfolio is 1.28 and the beta of the riskiest security is 1.75. Dana wishes to reduce her portfolio beta to 1.15 by selling the riskiest security and replacing it with another security with a lower beta. What must be the beta of the replacement security? a. 1.21 b. 0.91 c. 0.73 d. 1.62

Answers

Answer:

Option c. 0.73

Explanation:

Data provided in the question:

Market value of securities = $5,000

Current beta of the portfolio = 1.28

Beta of the riskiest security = 1.75

Required beta = 1.15

Now,

let the beta of the other security be 'x'

Portfolio beta = weighted average of individual betas in the portfolio

or

1.28 × 8 × $5000 = [  x × (8 - 1) × $5000 ] + [ 1.75 × $5000  ]

or

$51,200 = $35,000x + $8750

or

$35,000x = $42,450

or

x = 1.21

Thus,

If she wishes to reduce the beta to 1.15, by replacing the riskiest security,

let the beta of the replacement security be 'y'

Therefore,

1.15 × 8 × $5000 = [ 1.21 × (8 - 1 ) × $5000 ] + [ y × $5000  ]

or

$46,000 = $42,350 + $5,000y

or

$5,000y = $3,650

or

y = 0.73

Hence,

Option c. 0.73

Jayhawk had previously purchased merchandise for $40,000 The company returned $4,000 of the merchandise previously purchased because it was damaged. . The journal entry that Jayhawk would make for the return of the merchandise will include a:

Answers

Answer:

the options are missing, but I wrote down the two possible answers

the journal entry to record the purchase assuming perpetual inventory method:

Dr Merchandise inventory 40,000

    Cr Accounts payable 40,000

the journal entry to record the damaged merchandise assuming perpetual inventory method:

Dr Accounts payable 4,000

    Cr Merchandise inventory 4,000

OR

the journal entry to record the purchase assuming periodic inventory method:

Dr Purchases 40,000

    Cr Accounts payable 40,000

the journal entry to record the damaged merchandise assuming periodic inventory method:

Dr Accounts payable 4,000

    Cr Purchases returns 4,000

Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 175 $11.50 5/5 Purchase 200 $10.50 5/10 Sales 300 $25 5/15 Purchase 200 $12.50 5/20 Sales 250 $28 5/25 Purchase 150 $12.50 Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent.

Answers

Answer:

Total ending inventory $  2,162.5‬ LIFO perpetual method

Explanation:

At the time of each sale we determinate the last untis available for sale:

Beginning 175

Purchase 200

Slaes of 300

We use the entire 200 units purchase and 100 of the beginning inventory leaving

Beginning inventory of 75

Now, we continue:

Beginning inventory 75

5/15 purchase 200

Sales of 250 units

we use the entire 200 untis form the purchase and 50 units from beginning inventory

leaving

Beginning inventory 25 at 11.50 = 287.5

5/25 purcahse 150 units at 12.50 = 1875  

Total ending inventory                    2,162.5‬

Assume a​ Cobb-Douglas production function of the​ form: q equals 10 Upper L Superscript 0.97 Baseline Upper K Superscript 0.18. What type of returns to scaleLOADING... does this production function​ exhibit? In this​ instance, returns to scale equal nothing. ​ (Enter a numeric response using a real number rounded to two decimal​ places.) This production function exhibits A. decreasing returns to scale. B. constant returns to scale. C. initially increasing but then constant returns to scale. D. initially constant but then increasing returns to scale. E. increasing returns to scale.

Answers

Answer:

Returns to scale = 1.15

Increasing returns to scale.

Explanation:

Cobb-Douglas production function of the​ form:

q=10(L)^(0.97)(K)^(0.18)

Here, we are using a simple rule of factors to find the returns to scale:

q=10(tL)^(0.97)(tK)^(0.18)

q=10(t)^(0.97+0.18) (L)^(0.97)(K)^(0.18)

q=10(t)^(1.15) (L)^(0.97)(K)^(0.18)

Hence,

By adding up the powers of L and K, we can get the returns to scale.

Returns to scale = 1.15

Suppose, the power of L be 'a' and the power of K is 'b',

if a + b = 1, then it exhibits constant returns to scale

if a + b > 1, then it exhibits increasing returns to scale

if a + b < 1, then it exhibits decreasing returns to scale.

In our case,

a + b = 1.15 which is greater than 1, so this production function exhibits increasing returns to scale.

CVP computations. Garrett Manufacturing sold 410,000 units of its product for $68 per unit in 2017. Variable cost per unit is $60, and total fixed costs are $1,640,000.Required:1. Calculate (a) contribution margin and (b) operating income.2. Garrett’s current manufacturing process is labor intensive. Kate Schoenen, Garrett’s production manager, has proposed investing in state-of-the-art manufacturing equipment, which will increase the ­annual fixed costs to $5,330,000. The variable costs are expected to decrease to $54 per unit. ­Garrett expects to maintain the same sales volume and selling price next year. How would acceptance of Schoenen’s proposal affect your answers to (a) and (b) in requirement 1?3. Should Garrett accept Schoenen’s proposal? Explain.

Answers

Answer:

a) 8 dollars

b) 1,640,000

2.-  It should be rejected as decreases operating income to 410,000 from 1,640,000

contribution margin: $14

operating income: $ 410,000

Explanation:

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

68 - 60 = 8

b)

units sold x $8 contribution less fixed cost

410,000 x 8 - 1,640,000 = 1,640,000

2 contribution margin:

68 - 54 = 14

410,000 x 14 - 5,330,000 = 410,000

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