Your Competitive Intelligence team is predicting that the Chester Company will invest in adding capacity to their Cent product this year. Assume Chester's product Cent invests in increasing its capacity by 10% this year. Because of this new information, your company anticipates all other products in the Core segment will increase their capacity by the same amount. How much can the industry produce in the Core segment the next year

Question Completion:

Product    Segment    Capacity Next Round

Attic          Core           1,130

Axe          Core          1,200

City          Core          1,300

Cent  Core          1,550

Dome  Core           1,145

Dug          Core          1,023

Answer:

Competitive Intelligence Team

The industry can produce 8,083 units in the Core segment next year.

Explanation:

a)Data and Calculations:

Product    Segment    Capacity      Increasing  New Capacity

                   Next Round     by 10%         next year

Attic          Core           1,130           113               1,243

Axe          Core          1,200         120         1,320

City          Core          1,300    130         1,430

Cent  Core          1,550    155         1,705

Dome  Core           1,145     115        1,260

Dug          Core          1,023    102         1,125

Total industry capacity   7,348        735              8,083

b) A Competitive Intelligence is an analysis for decision-makers that uncovers competitive gaps, products, and services.  It uses information about a firm's industry, business environment, and competitors' strategies to develop strategic initiatives and identify opportunities and threats facing the firm in the marketplace.

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017.
Mar. 31 Acquired 8% Distribution Transformers Corporation bonds costing $510,000 at face value.
Sep. 1 Acquired $1,230,000 of American Instruments' 10% bonds at face value.
Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds.
Oct. 2 Sold the Distribution Transformers bonds for $590,000.
Nov. 1 Purchased $1,950,000 of M&D Corporation 6% bonds at face value.
Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are:
American Instruments bonds$1,181,000
M&D Corporation bonds$2,021,000
(Hint: Interest must be accrued.)
Required:
Prepare the appropriate journal entry for each transaction or event during 2018, as well as any adjusting entries necessary at year end.

Here I Sit Sofas has 6,600 shares of common stock outstanding at a price of $89 per share. There are 950 bonds that mature in 25 years with a coupon rate of 6.3 percent paid semiannually. The bonds have a par value of $1,000 each and sell at 106 percent of par. The company also has 5,500 shares of preferred stock outstanding at a price of $42 per share. What is the capital structure weight of the debt

Belmont Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $230,000. The equipment will have an initial cost of $1,000,000 and have an 8 year life. If there is no salvage value of the equipment, what is the accounting rate of return? Multiple Choice 18.0% 15.5% 46.0% 23.0%.

If the financial markets are strong form efficient, then: Question 22 options: 1) only the most talented analysts can consistently outperform the market. 2) technical analysis provides the best tool to use to gain a marketplace advantage. 3) only individuals with private information have a marketplace advantage. 4) no one individual has an advantage in the marketplace.

At the end of 2020, Pharoah Co. has accounts receivable of $762,200 and an allowance for doubtful accounts of $60,300. On January 24, 2021, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $5,800. On March 4, 2021, Pharoah Co. receives payment of $5,800 in full from Megan Gray. Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,300,000 in 2021 for the mining site and spent an additional $660,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the following three cash flow possibilities for the restoration costs:

Cash Outflow Probability
1 $360,000 20%
2 460,000 45%
3 660,000 35%

To aid extraction. Jackpot purchased some new equipment on July 1, 2021, for $180,000. After the copper Is removed from this mine, the equipment will sold. The credit-adjusted. risk-free rate of interest is 12%.

Required:
a. Determine the cost Of the copper mine.
b. Prepare the Journal entries to record the acquisition costs of the mine and the purchase of equipment.

If direct materials are added at the beginning of a process, the equivalent units completed of direct materials will be: Group of answer choices Equal to equivalent units completed of conversion costs Equal to the physical units completed Less than physical units completed None of the above

Chicken Can has net sales revenue of $1,420,000, cost of goods sold of $761,700, and all other expenses of $307,000. The beginning balance of stockholders' equity is $417,000 and the beginning balance of fixed assets is $378,000. The ending balance of stockholders' equity is $617,000 and the ending balance of fixed assets is $406,000. The fixed asset turnover ratio is closest to:

At 60,000 machine hours, Boris Company static budget for variable overhead costs is $180,000. At 60,000 machine hours, the company's static budget for fixed overhead costs is $300,000. Machine hours are the cost driver of all overhead costs. The static budget is based on 60,000 machine hours. At 60,000 machine hours, the company produces 40,000 units. The following data is available:
Actual units produced and sold 42,000
Actual machine hours 64,000
Actual variable overhead costs $185,600
Actual fixed overhead costs $302,400
What is the fixed overhead spending variance?
A) $2,400 Favorable
B) $2,400 Unfavorable
C) $1,000 Unfavorable
D) $1,000 Favorable

Indiana Co. began a construction project in 2021 with a contract price of $162 million to be received when the project is completed in 2023. During 2021, Indiana incurred $40 million of costs and estimates an additional $84 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed.
Suppose that, in 2022, Indiana incurred additional costs of $65 million and estimated an additional $52 million in costs to complete the project. Indiana (Do not round your percentage calculated):
A) Recognized $8.91 million gross profit on the project in 2022.
B) Recognized $11.91 million gross profit on the project in 2022.
C) Recognized $3.00 million loss on the project in 2022.
D) Recognized $8.91 million loss on the project in 2022.

Quan Enterprises purchased and consumed 56,000 gallons of direct material that was used in the production of 15,000 finished units of product. According to engineering specifications, each finished unit had a manufacturing standard of four gallons. If a review of Quan's accounting records at the end of the period disclosed a material price variance of $5,600U and a material quantity variance of $2,800F, what is the actual price paid for a gallon of direct material

The master budget at Western Company last period called for sales of 225,000 units at $8.60 each. The costs were estimated to be $4.00 variable per unit and $270,000 fixed. During the period, actual production and actual sales were 230,000 units. The selling price was $8.70 per unit. Variable costs were $4.75 per unit. Actual fixed costs were $270,000. Required: Prepare a flexible budget for Western.

A company buys a machine for $69,000 that has an expected life of 7 years and no salvage value. The company uses straight-line depreciation. The company anticipates a yearly net income of $3,300 after taxes of 38%, with the cash flows to be received evenly throughout each year. What is the accounting rate of return

Question 1(Multiple Choice Worth 10 points)
(04.04 LC)
Which is a possible effect of identity theft?
Increased mental stress
O Increased purchasing power
Decreased loan balances
Decreased debt to credit load

The EPBO for a particular employee on January 1, 2018, was $30,000. The APBO at the beginning of the year was $6,000. The appropriate discount rate for this postretirement plan is 5%. The employee is expected to serve the company for a total of 25 years with 5 of those years already served as of January 1, 2018. What is the APBO at December 31, 2018? Group of answer choices $7,200. $6,300. $7,560. $7,500.

Distributing Cash Dividends to Preferred and Common Shareholders Dechow Company has outstanding 20,000 shares of $50 par value, 6% cumulative preferred stock, and 80,000 shares of $10 par value common stock. The company declares and pays cash dividends amounting to $160,000. a. If no arrearage on the preferred stock exists, how much in total dividends, and in dividends per share, is paid to each class of stock

Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. Beginning Inventory Ending Inventory Raw material* 30,000 40,000 Finished goods 70,000 60,000 * Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 510,000 units during next year, the number of units it would have to manufacture during the year would be:

Holbrook, a calendar year S corporation, distributes $89,500 cash to its only shareholder, Cody, on December 31. Cody's basis in his stock is $107,400, Holbrook's AAA balance is $40,275, and Holbrook has $13,425 AEP before the distribution. According to the distribution ordering rules, complete the chart below to indicate how much of the $89,500 is from AAA and AEP as well as how Cody's stock basis is affected. If an amount is zero, enter "0".

Distribution from Account Affect on Stock Basis Balance after Distribution
From AAA Account $8000 $8000 $0
From AEP Account $2500 $0 $0
From Cody's stock basis $ $ $

Your firm has a contract to build one custom-designed machine that costs $100,000,000. This machine will operate at a paper recycling plant. It will take 1,000,000 pieces of paper per day, shred them into tiny fragments, grind them into paper dust, and create pulp used to make recycled paper envelopes. You need a gear motor to run at 10 horsepower with an output speed of 10 RPM. Your other option is buy a 10 horsepower, 1750 RPM motor, and design your own transmission system to reduce the speed to 10 RPM. Your firm has 10 engineers, and 2 of them would work full-time for six months to get the transmission system designed and built. The purchased gear motor would cost $10,000 and the purchase motor would cost $3,000. The transmission parts would cost another $3,000, saving you $4,000. Time is of the essence. You have only 6 months to design and build your machine.

Which makes more sense to you, buy the gear motor, or buy an AC motor and design and build your own gear transmission system?

Saginaw Steel Corporation has a precredit U.S. tax of $105,000 on $500,000 of taxable income in 2018. Saginaw has $200,000 of foreign source taxable income and paid $60,000 of income taxes to the German government on this income. All of the foreign source income is treated as foreign branch income for foreign tax credit purposes. Saginaw's foreign tax credit on its 2018 tax return will be:

Which of the following would be classified as a short-run decision? A restaurant's decision to increase the number of patrons it can accommodate by adding on a new dining room. A firm's decision to decrease the amount of electricity used in day-to-day operations by encouraging employees to adopt conservation strategies, e.g., shut off lights when leaving a room. A university's decision to add a new residence hall. A trucking firm's decision to move to a smaller facility.

Power Inc. has two divisions, Windsor and Ridge. Following is the income statement for the past month: Windsor Ridge Total Sales $ 360,200 $ 320,100 $ 680,300 Variable Costs 280,200 150,200 $ 430,400 Contribution Margin $ 80,000 $ 169,900 $ 249,900 Fixed Costs (allocated) 121,700 128,200 $ 249,900 Profit Margin $ (41,700 ) $ 41,700 $ 0 What would Power's profit margin be if the Windsor division was dropped and all fixed costs are unavoidable?.

Your friend Harold is trying to decide whether to buy or lease his next vehicle. He has gathered information about each option but is not sure how to compare the alternatives. Purchasing a new vehicle will cost $28,500, and Harold expects to spend about $700 per year in maintenance costs. He would keep the vehicle for five years and estimates that the salvage value will be $11,300. Alternatively, Harold could lease the same vehicle for five years at a cost of $3,705 per year, including maintenance. Assume a discount rate of 10 percent.
Requirement:
1. Calculate the net present value of Harold’s options. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your final answers to 2 decimal places.
2. Advise Harold about which option he should choose.
Lease Option
Purchase Option

If the demand for labor falls from D to D' and wages are sticky on the downward side, there will be unemployment of ________ million. a. 75 b. 100 c. 25 d. None of the above

At the beginning of the current year, Max Corp. granted restricted stock units (RSUs) representing 30 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $12 per share on the grant date. Ignoring taxes, what is the effect on earnings(net income) in the current year after the shares are granted to executives

Your firm is preparing to open a new retail strip mall and you have multiple businesses that would like lease space in it. Each business will pay a fixed amount of rent each month plus a percentage of the gross sales generated each month. The cash flows from each of the businesses has approximately the same amount of risk. The business names, square footage requirements, and monthly expected cash flows for each of the businesses that would like to lease space in your strip mall are provided below:
Square Feet Expected Monthly
Business Name Required Cash Flow
Videos Now 4,000 70,000
Gords Gym 3,500 52,500
Pizza Warehouse 2,500 52,500
Super Clips 1,500 25,500
30 1/2 Flavors 1,500 28,500
S-Mart 12,000 180,000
WalVerde Drugs 6,000 147,000
Multigular Wireless 1,000 22,250
If your new strip mall will have 15,000 square feet of retail space available to be leased, to which businesses should you lease and why?

Santorino Company produces two models of a component, Model K-3 and Model P-4. The unit contribution margin for Model K-3 is $6; the unit contribution margin for Model P-4 is $14. Each model must spend time on a special machine. The firm owns two machines that together provide 4,000 hours of machine time per year. Model K-3 requires 15 minutes of machine time; Model P-4 requires 30 minutes of machine time. ​ What is the amount of machine time for model P-4 in terms of percent of a machine hour?
a. 50%
b. 25%
c. 30%
d. 20%
e. 10%

Joe Sullivan and Mark Holland, members of the top management at EuAir, a European airlines, were preparing for a meeting to discuss strategies to combat the recent rise in fuel prices. Before the meeting began, Joe and Mark were discussing how oil prices significantly impact the health of the world economy. Joe spoke of how higher oil prices since 1999, partly the result of OPEC supply management policies, contributed to the global economic downturn in 2000-2001 and have not been stable since. Mark agreed but added that the right kind of strategy could help them overcome this challenge, and that they could even use the situation to hike fares and generate additional revenues. Which of the following statements, if true, would denote the occurrence of groupshift in Mark's opinions during the meeting?
A) Mark proposed that the prices be hiked and additional customer service measures be included so costumers have the best experience flying with EuAir.
B) Mark encouraged the top-management team to consider laying off surplus employees and rightsizing EuAir to enhance its efficiency and lower costs.
C) Mark agreed with Joe's opinion that providing the best service possible, even if it meant incurring a loss in the short run, would be the best strategy.
D) Mark felt that EuAir should suspend some of its less profitable flights in the short run in favor of the routes that have greater demand among consumers.
E) Mark proposed that this was an opportunity for EuAir to use its brand name effectively and diversify into other products and services.

On January 1, 2018, UML Company leased a machine to UMB Corporation. The lease qualifies as a sales-type lease. UML paid $240,000 for the machine and is leasing it to UMB for $34,000 per year, an amount that will return 10% to UML. The present value of the lease payments is $240,000. The lease payments are due each December 31, beginning in 2018. What is the appropriate interest entry of UML on December 31, 2018

Why do you think most companies make use of celebrities in their marketing promotional activities?​