Answer:
1. Damon Company
Bank Reconciliation Statement
October 31, 2018
Bank Balance
Amount$
Bank cash balance as per statement 11,725
Add: Adjustment
Deposits outstanding 3,025
(74,320 - 71,295)
Bank error 300
Less: Adjustment
Check outstanding 1,485
(72,467 - 70,983)
Bank balance as per Reconciliation $13,567
Company's Cash balance
Amount$
Company's Cash balance as per General Ledger 8,397
Add: Adjustment
Interest earned 320
Note collected 5,000
Less: Adjustment
Bank service fees 150
Company's Cash balance as per Reconciliation 13,567
Thus, the accurate cash balance as of December 31, 2016 is $13,567
2. Required entries to modify the cash balance.
Date Account Title and Explanation Debit Credit
31 Oct Cash $5,320
Notes Receivables $500
Interest revenue $320
(For recording cash increase)
Date Account Title and Explanation Debit Credit
31 Oct Service charges $150
Cash $150
(For recording cash decreases)
Opting for the lease is a more favorable choice. To illustrate, we examine the calculations for both options. First, we calculate the Net Present Value (NPV) for the Lease Option:
Year n Details CF ($) DF=1/(1.1)^n PV ($)
1 - Lease payment (30,000) 0.9091 (27,273)
2 - Lease payment (30,000) 0.8264 (24,793)
3 - Lease payment (30,000) 0.7513 (22,539)
4 - Lease payment (30,000) 0.6830 (20,490)
The NPV for the lease option equals (95,096).
For the Buy Option, we carry out the following calculations:
Year n Details CF ($) DF=1/(1.1)^n PV
0 Purchase cost (80,000) 1.0000 (80,000)
1 Maintenance costs (10,000) 0.9091 (9,091)
2 Maintenance costs (10,000) 0.8264 (8,264)
3 Maintenance costs (10,000) 0.7513 (7,513)
4 Maintenance costs (10,000) 0.6830 (6,830)
Residual value at end of year 4 20,000 0.6830 13,660
The NPV for the buy option results in (98,038).
To determine the equivalent annual annuity (EAA) for each option:
EAA = (r × NPV) / (1 - (1 + r)^-n)
where r is the discount rate per period and n shows the number of periods.
Calculating:
Lease option EAA = (0.1 × -95,096) / (1 - (1 + 0.1)^-4) = -30,000.
Buy option EAA = (0.1 × 98,038) / (1 - (1 + 0.1)^-4) = -30,928.
Since the lease option manifests a lower EAA of $30,000 compared to the buy option's $30,928, the lease is deemed the superior choice.
Here are the instructions outlined below. Given the details: 1 Pound T-bone: Selling price ($7.95 per pound) is $7.95; Joint costs amount to $3.80; Profit per pound therefore is $4.15. Further processing incurs a cost of $0.55 per T-bone steak, resulting in a 6-ounce filet mignon and one 8-ounce New York cut. The filet can be sold for $12.00 per pound, while the New York cut is priced at $8.80 per pound. A) Filet mignon earns $12.00 per pound, so for 6 ounces: 0.375 x 12 = $4.50. New York cut earns $8.80 per pound: 0.5 x 8.80 = $4.40. The total sales from both cuts amount to $8.90, while total costs consist of $3.80 + $0.55 = $4.35, leaving a profit of $4.55. B) Further processing the T-bone steak yields an extra $0.40 in profit.
Answer:
The lowest cost ( Z ) will equal $636 daily
quantity of permanent operators = 6
quantity of temporary operators = 3
Explanation:
based on the provided information: the organization has a total of ten (10) workstations and employs both permanent and temporary operators; the following demonstrates the work that can be performed with these resources
Orders processed each day
permanent operator; 76
temporary operator; 53
company average: minimum of 600
Errors recorded daily
permanent operator; 1.3
temporary operator; 4.1
acceptable maximum error rate: 24
daily wages; permanent ($81), temporary ($50)
formulate an integer programming model to ascertain the number of permanent and temporary operators needed to minimize costs
Let X1 represent the permanent operators and X2 represent the temporary operators
the daily operator cost can be expressed as ( Z ) = 81 X1 + 50 X2 (first constraint)
operators at workstations = X1 + X2 ≤ 10 (second constraint)
Total orders handled = 76 X1 + 53 X2 ≥ 600 (third)
allowable errors permit = 1.3 X1 + 4.1 X2 ≤ 24 (fourth constraint)
Operators must be whole numbers = X1, X2 ≥ 0 (fifth constraint)
construct an Excel linear program incorporating both the data provided and the constraints formulated.
The lowest cost ( Z ) will equal $636 daily
quantity of permanent operators = 6
quantity of temporary operators = 3
included is a screenshot of the completed Excel linear program
Answer:
Option (B) is the right choice.
Explanation:
Profit before taxes:
= Sales - Operating costs - Depreciation
= $40,000 - $10,000 - (50,000 × 33%)
= $40,000 - $10,000 - $16,500
= $13,500
Profit after taxes:
= Profit before tax - Tax at 40%
= $13,500 - $5,400
= $8,100
Thus,
Year 1 operating cash flow for the 911 Wings project:
= Profit after tax + Depreciation
= $8,100 + $16,500
= $24,600
