Anne Lockwood, manager of Oaks Mall Jewelry, wants to sell on credit, giving customers 3 months to pay. However, Anne will have

Response:

Net operating profit equals 102,000

Explanation:

Based on the following data:

Selling price per unit is $ 71

Manufacturing costs:

Direct materials cost $ 12

Direct labor cost $ 6

Variable manufacturing overhead is $ 3

Annual fixed manufacturing overhead totals $ 264,000

Selling and administrative expenses:

Variable selling/admin expenses per sold unit are $ 4

Annual fixed selling/admin expenses total $ 74,000

Year 1

Starting inventory numbers 0

Units produced throughout the year are 11,000

Sold units during the year total 8,000

Ending inventory numbers 3,000

Year 2

Beginning inventory equals 3,000

Units manufactured for the year total 12,000

Units sold throughout the year are 14,000

Ending inventory is 1,000

Unitary cost is calculated as: (12 + 6 + 3) + (264,000/11,000)= $45

Income statement details:

Sales total = (8,000*$71)= 568,000

COGS total = (8,000*45)= 360,000 (-)

Gross profit = 208,000

Variable selling/admin costs = (4*8000)= 32,000 (-)

Fixed selling/admin costs = 74,000 (-)

Net operating profit rounds to 102,000

Response: $11,200

Justification:

Utilizing the accounting equation:

(Total Assets) = (Total Liabilities) + (Total Capital)

Thus,

(Total Liabilities) = (Total Assets) - (Total Capital)    (1)

To determine total liabilities, we first need to ascertain total assets and total capital.

At the end of the first year, the assets of Shapiro's consulting services are as follows:

Cash:                              $16,000
Office Supplies:                $3,200
Equipment:                     $24,000
Accounts Receivable:       $8,000
TOTAL ASSETS            $51,200

Note that total assets are calculated by summing the values of each asset above.

Net income represents an increase (or decrease if it's a loss) in capital, thus we classify it as part of capital. Specifically, net income at the end of the first year adds to the initial capital.

The owner's withdrawal also decreases the capital. 

Consequently, total capital at the end of the first year is computed as:

Capital (beginning of the year):            $15,000
Net Income (end of year):           $27,000   
Withdrawal Amount:                    ($2,000)
TOTAL CAPITAL:                       $40,000

Note: The notation ($2,000) indicates a deduction of $2,000 in accounting terms.

Using (1), total liabilities at the end of the first year can be calculated as

(Total Liabilities) = (Total Assets) - (Total Capital)
                           = $51,200 - $40,000
Total Liabilities = $11,200

Answer:

The cost of goods manufactured equals 650,000.

Explanation:

Based on the following details:

Beginning inventory= $250,000

Cost accumulated during the period= $500,000

Ending work in process inventory= $100,000.

To find the cost of goods manufactured, apply this formula:

cost of goods manufactured= beginning WIP + cost incurred - Ending WIP

cost of goods manufactured= 250,000 + 500,000 - 100,000

cost of goods manufactured= 650,000

Answer:

The bond discount at issuance is calculated as follows: $846,000 - ($846,000/100 *98)

The bond discount upon issuance is $846,000 minus $829,080

Thus, the bond discount at issuance equals $16,920

Bond Payable = $846,000

The un-amortized bond discount calculates to $16,920 - $9,840

This gives an un-amortized bond discount of $7,080

The redemption value of the bond is determined by 102/100 * $846,000

Thus, the redemption value of the bond is $ 862,920

Finally, the loss on bond retirement is given by the difference between the redemption value and (Bond Payable - Un-amortized bond discount)

Loss on retirement of the bond = $862,920 - ($846,000 - $7,080)

The loss on retirement of the bond calculates to $862,920 - $838,920

This results in a loss of $24,000

Answer:

The answer is option "C": ambiguous or conflicting expectations from stakeholders.

Explanation:

To ensure a project is successful, it is essential to understand the expectations of the company owners. If not, the team tasked with executing the project won't have a clear direction, enhancing the risk of project failure.