Answer: minimize input
Explanation:
From the question, we have been told that a recently graduated engineer decided to return to school in the evenings in order to obtain a master's degree. The recent graduate feels it should be accomplished in a way that will give him the maximum amount of time needed for his regular day job and time for recreation.
In this situation, we can see that the individual actually holds his regular job and recreation in high esteem and feels that they are more important than the masters degree. Base on this, the person will minimize its input towards the masters program.
Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. The quality and design of calculators improved dramatically from 2017 to 2019. For example, calculators made in 2019 accept memory cards, whereas those made in 2017 do not, but this quality change is hard to measure. A new, safe method of memory enhancement became available for purchase. Professors required each student to buy 10 textbooks, regardless of the price. As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all, instead using the copies on reserve in the library.
Answer:
- The quality and design of calculators improved dramatically from 2017 to 2019.
- A new, safe method of memory enhancement became available for purchase.
- As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all, instead of using the copies on reserve in the library.
Explanation:
Remember, regarding the prices for the textbooks the factors of demand applies that is why when prices increase, it might result in an overstating; which means inflation in the cost of going to college.
Also, just as improvements in the memory of calculators involves additional expenses, it results in inflation. Overall, all these circumstances can result in such inflation.
The true statements are
The quality and design of calculators improved dramatically from 2017 to 2019.
A new, safe method of memory enhancement became available for purchase.
As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all, instead of using the copies on reserve in the library.
Price index:In the given situation, the statement that need to be considered is that when the design and quality of calculated improved, the new & safe method should be available, and in the case when the price of the textbook rises so more students used book market rather reserving libraries book.
Learn more about the reserve here: https://brainly.com/question/3017294
A firm sells 1000 units per week. It charges $15 per unit, the average variable costs are $10, and the average costs are $25. In the long run, the firm should a. Shut-down because it is cost effective to pay off the remaining fixed costs b. Continue operating as the firm is covering all the variable costs and some of the fixed costs c. Shut-down as the firm is making a loss of $10,000 per week d. Shut-down as price is lower than average cost
Answer:
b. Continue operating as the firm is covering all the variable costs and some of the fixed costs
Explanation:
A firm should shutdown operations if its price is less than average variable cost.
The price the firm sells is $15
Average variable cost is $10.
Price is greater than average variable cost in excess of $5.
The $5 covers some of the average fixed cost.
I hope my answer helps you
Zombie Corp. has a profit margin of 5.1 percent, a total asset turnover of 1.95, and ROE of 16.15 percent.
What is this firm's equity multiplier?
What is this firm's debt-equity ratio?
Answer:
This firm's equity multiplier is 1.6239
This firm's debt-equity ratio is 0.6239
Explanation:
According to the given data we have the following:
Profit Margin (PM) = 5.10%
That is, Net Profit/Sales = 5.10% = 0.051
Total Assets Turnover (TAT) = 1.95
That is, Sales/Total Assets = 1.95
Return on Equity (ROE) = 16.15%
That is, Net Profit/Total Equity = 16.15% = 0.1615
In order to calculate this firm's equity multiplier we would have to use the following formula:
Equity Multiplier (EM) = Total Assets / Total Equity
=(total assets/sales)*(sales/total equity)
=(total assets/sales)*(sales/net profit)*(net profit/total equity)
=(1/T AT)*(1/PM)*(ROE)
=(1/1.95)*(1/0.051)*(0.1615)
=1.6239
This firm's equity multiplier is 1.6239
In order to calculate this this firm's debt-equity ratio we would have to use the following formula:
Debt Equity Ratio = Debt/Equity
=(total assets- total equity)/(total equity)
=(total assets/total equity)-(total equity/total equity)
= equity multiplier-1
=1.6239-1
=0.6239
This firm's debt-equity ratio is 0.6239
A European call option for a stock has an exercise price of $70, and expires one year from today. Suppose that the stock price has an equal probability of being valued at $60, $70, $75, $83, and $89 dollars per share, one year from now. What is the current present value of the option, given an effective annual rate of 10%
Answer:
Find attached complete question with multiple choices:
The correct option is E,$6.7
Explanation:
The current present value of the option given an effective annual rate of 10% is the sum of payoffs from different stock prices discounted to present value as below:
Payoff is potential gain from buying the share in a year's time at the exercise price of $70
Stock price option price payoff
$60 $70 $0
$70 $70 $0
$75 $70 $5
$83 $70 $13
$89 $70 $19
Total payoffs=$0+$0+$5+$13+$19=$37
Average payoff(there are 5 different possible prices)=$37/5=$7.4
Present value of average payoff=$7.4/(1+10%)^1=$ 6.73
A combination of news covered by the media that boosts sales without having to pay is best described by the term ________. (1pts) Question 5 - A combination of news covered by the media that boosts sales without having to pay is best described by the term ________. Select bootstrap marketing as your answer bootstrap marketing Select entertailing as your answer entertailing Select public relations as your answer public relations Select data mining as your answer data mining
Answer:
Public relations.
Explanation:
Public relations is a combination of news covered by the media that boosts sales without having to pay.
Public relations involves the process of professionally maintaining and sustaining a favourable public perception and image by an organization or an elite.
As a rule, every organization makes it a standard to always go for the best public relations manager, so as to have a competitive advantage over industry rivals and to boost their public image or reputations.
Hence, PR managers use public relations, as a strategic communication process to issue and disseminate quality informations between their principal (usually an individual) or an organization and the public, in order to build a mutualistic relationship.
Describe the procedure of preparing vision and mission statement of an organisation
At January 1, 2019, Betty DeRose, Inc. had an allowance for bad debts with a $4,500 credit balance. During 2019, Betty wrote-off as uncollectible accounts receivable in the amount of $6,200. At December 31, 2019, Betty had total accounts receivable of $216,000 and prepared the following aging schedule: Accounts Receivable % Uncollectible not past due $100,000 1% 1-30 days past due 60,000 4% 31-60 days past due 27,000 8% 61-90 days past due 19,000 26% over 90 days past due 10,000 40% total accounts receivable $216,000 Calculate the net realizable value of Betty DeRose's accounts receivable at December 31, 2019.
Answer:
$16,200
Explanation:
The bad debt expense has beginning balance of $4,500. Bad debt written of during 2019 is $6,200. The total account receivable is $216,000.
$100,000 * 1% = $1000
$60,000 * 4% =$2400
$27,000 * 8% =$2160
$19,000 * 26% =$4940
$10,000 * 40% =$4000
The total of uncollected is $14,500
The bad debt of the current year is $4500 - $6200 = $1700
Quality Move Company made the following expenditures on one of its delivery trucks: Mar. 20. Replaced the transmission at a cost of $5,430. June 11. Paid $1,705 for installation of a hydraulic lift. Nov. 30. Paid $41 to change the oil and air filter. Prepare the journal entries for each expenditure.
Answer:
The journal entries for each expenditure would be as follows:
Debit ($) Credit ($)
Mar. 20
Delivery Truck 5,430
Cash 5,430
June. 11
Delivery Truck 1,705
Cash 1,705
Nov. 30
Repairs and Maintenance Expense 41
Cash 41
Explanation:
According to the given data, the journal entries for each expenditure would be as follows:
Debit ($) Credit ($)
Mar. 20
Delivery Truck 5,430
Cash 5,430
(To record the replacement of transmission at a cost of $5,430 and capitalizingthe transmission cost)
June. 11
Delivery Truck 1,705
Cash 1,705
(To record the installation of hydraulic lift and capitalization of installation expenses)
Nov. 30
Repairs and Maintenance Expense 41
Cash 41
(To record the payment for changing the oil and air filter)
5. Which of the following is an example of global economies of scale? a. Johnson & Johnson makes fourteen different varieties of Band-Aid for various product segments in different countries. b. Intel has a big plant in Kiryat Gat (Israel) making i7 chips, which supplies the whole world, reducing the per-unit cost of each chip. c. Mutual funds invest their stocks in several different country funds, to offset the risk of one currency failing suddenly. d. Wal-Mart sells certain products very economically in some countries (like mobile AC units in Mexico), in order to attract customers, while other products may be at par with, or even more expensive than US prices..
Answer:
b. Intel has a big plant in Kiryat Gat (Israel) making i7 chips, which supplies the whole world, reducing the per-unit cost of each chip
Explanation:
Economies of scale is cost reduction as a result of the large scale do production. As production increases, cost falls.
Because of the large scale of production of itel, cost of shopping is falling. This is an example of economies of scale.
I hope my answer helps you
company's perpetual preferred stock currently sells for $92.50 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock? Note: when flotation costs are given as a percentage instead of in dollar terms, the denominator in the formula changes from (P-F) to P*(1-F). Hint: remember that for preferred stock the growth rate of the dividend is zero.
Answer:
The firm's cost of preferred stock is 9.10%
Explanation:
The cost of preferred stock with the flotation of 5% would be the dividend payable by the preferred stock divided by the adjusted current market price(adjusted for flotation cost)
The dividend per year is $8
The adjusted price of the stock=$92.50*(1-f)
where f is the flotation cost in percentage terms i.e 5%
adjusted price of the stock is =$92.50*(1-5%)=$ 87.88
Cost of preferred stock=$8/$87.88*100 = 9.10%
You have graduated from college and, after working hard for ten years, have scraped enough money together to make a down payment on a forty-acre farm within driving distance to the small city where you work in Colorado. In town at lunch one day, you run into an old friend from high school, Hayley Mills, who tells you that she is saving her money to start a high-end consignment shop in town. You allow her to have a room in your house for a few months until she has enough money to go into business. Over the following weeks, however, you realize that old acquaintances from high school are stopping by almost daily for short visits. When you bring this up to Hayley, she admits that many old friends are now relying on her for marijuana. She is not a licensed caregiver in Colorado and is clearly violating the law. Out of loyalty, you tell her that she has three weeks to move out, but you do not prevent her from continuing sales while she is there. What crime have you committed?
Answer:
A conspiracy crime
Explanation:
Note that the tem consipiracy could also mean knowingly supporting directly or indirectly in a set course of action with another.
Thus, since the homeowner did not prevent the illegal actions of her acquaintance out of loyalty for her, the homeowner became part of an illegal drug sale conspiracy. This is further evident from the fact that the homeowner
gave the acquaintance three weeks to move out; in a sense giving more ample time for the illegal transactions.
A manufacturer produces 1,000 basketballs each day, which it sells to customers for $30 each. All costs associated with production and sales total $10,000; however, if the manufacturer were to produce one additional basketball per day, total costs would increase to $10,100. From these amounts, we can tell that:________
a. the firm has negative profit.
b. marginal cost equals $100.
c. marginal cost equals $150.
d. marginal cost equals marginal revenue.
Answer:
b. marginal cost equals $100.
Explanation:
Marginal Cost is the cost of one extra unit produced.
Marginal Cost = $10,100 - $10,000 = $100
Marginal revenue is revenue earned per extra j
Unit sold. Marginal revenue equals price. $30
Marginal cost is greater than marginal revenue
Profit = Total revenue - Total cost = (1,000 × $30) - $10,000 = $20,000
Profit is positive
I hope my answer helps you
SmartTalk, Inc, makes and markets cell phones and related accessories. When problems develop with SmartTalk products or sales, the company may be liable in product liability for any of the following except:___________A) a manufacturing defectB) a design defect.C) an inadequate warning.D) an ineffective marketing plan.
Answer:
D) an ineffective marketing plan.
Explanation:
Product liability is defined as the liability that manufacturer bears when he puts defective product in the hands of the consumer.
Manufacturers are liable for damages that occur from the use of their products. They are also responsible for providing adequate instructions on use of the product and warning of adverse effects a user can experience.
SmartTalk, Inc produces cell phones and related accessories. They have product liability when there is a manufacturing defect, design defect, and inadequate warning on use of the product.
However the company does not have product liability for ineffective marketing as this is related to how well the company sells the product and not if the product is defective.
What is SHREK testing?
Answer:
the ogre
Explanation:
Holly owns a dance studio. To improve sales of dance classes, she is reviewing how her marketing team could update the company's online presence.
As part of the rebrand, the team listened to customer feedback and mapped customer journeys. They identified two things online customers generally struggled with: navigating the website and finding the business's contact information.
Which of the brand's touchpoints should Holly modify to help address her customer's feedback?
Answer:
b. website layout
c. email marketing
Explanation:
The website layout is the layout i.e created for a website. It should be attractive to the owners and users. Moreover it should be easy to navigate it so that if anyone could access to the website he or she could easily access it without any hurdle.
The email marketing is a technique in which we can send one message to large audience in the same time. It helps in saving cost and time
According to the given situation, the online customers struggled with website navigate and to find out the contact information related to the business
So to modify and help address her customer feedback the website layout and the email marketing plays a vital role and the same is to be considered
nted below is information related to Viel Company at December 31, 2020, the end of its first year of operations. Sales revenue $310,000 Cost of goods sold 140,000 Selling and administrative expenses 50,000 Gain on sale of plant assets 30,000 Unrealized gain on available-for-sale debt investments 10,000 Interest expense 6,000 Loss on discontinued operations 12,000 Dividends declared and paid 5,000 Instructions Compute the following: (a) income from operations, (b) net income, (c) comprehensive income, and (d) retained earnings balance at December 31, 2020. (Ignore income tax effects.)
Answer:
Viel Company
(a) Income from operations:
Sales revenue $310,000
Cost of goods sold 140,000
Selling & admin. expenses 50,000
Income from operations $120,000
(b) Net income:
Sales revenue $310,000
Cost of goods sold -140,000
Selling & admin. expenses -50,000
Income from operations $120,000
Gain on sales of plant assets 30,000
Interest Expense -6,000
Loss on discontinued operations -12,000
Net Income $132,000
(c) Comprehensive Income
Sales revenue $310,000
Cost of goods sold -140,000
Selling & admin. expenses -50,000
Income from operations $120,000
Gain on sales of plant assets 30,000
Interest Expense -6,000
Loss on discontinued operations -12,000
Net Income $132,000
Unrealized Gain on Investments -10,000
Comprehensive Income $122,000
(d) Retained Earnings balance at December 31, 2020:
Comprehensive Income $122,000
less Dividends 5,000
Retained Earnings Balance $117,000
Explanation:
a) Income from operations is the income generated from running the primary business and excludes income from other sources. For example, gains or losses from asset disposal and discontinued operations, and interest expense.
b) Net Income is the income from operations, including other sources of income, after adding or deducting non-operating gains or losses and interests.
c) Comprehensive income equals net income and unrealized income, such as unrealized gains or losses, and other non-operating gains and losses.
The following information is available for Flounder Corp. for the year ended December 31, 2017: Other revenues and gains Other expenses and losses Cost of goods sold Other comprehensive income $10,000 Sales revenue 14,900 Operating expenses 246,400 Sales returns and allowances 5,500 $641,300 231,800 40,000
Prepare a multiple-step income statement for Flounder Corp and comprehensive income statement. The company has a tax rate of 30%. This rate also applies to the other comprehensive income. Flounder Corp. Income Statement For the Year Ended December 31, 2017 Revenues Sales Revenue 641300 Less . Sales Returns and Allowances 40000 Net Sales $ 601300 Cost of Goods Sold 246400 Gross Profit 354900 Operating Expenses 231800 Income From Operations 123100 Other Revenues and Gains $ 10000 Other Expenses and Losses 14900
Answer:
Flounder Corp. Income Statement For the Year Ended December 31, 2017
Revenues:
Sales Revenue $ 641,300
Less Sales Returns and Allowances 40,000
Net Sales $ 601,300
Cost of Goods Sold 246,400
Gross Profit 354,900
Operating Expenses 231,800
Income From Operations $123,100
Income Tax on operations 36,930
Net Income after Income Tax $86,170
Comprehensive Income Statement:
Revenues:
Sales Revenue $ 641,300
Less Sales Returns and Allowances 40,000
Net Sales $ 601,300
Cost of Goods Sold 246,400
Gross Profit 354,900
Operating Expenses 231,800
Income From Operations $123,100
Other Revenues and Gains $ 10,000
Less other Expenses and Losses 14,900
Income from Operations &
other comprehensive income $118,200
Income Tax $35,460
Net Income after Tax $82,740
Explanation:
a) A multi-step income statement arranges the revenue and expenses sequentially in order to bring out some financial performance measurement elements, like the gross profit, income from operations, etc.
b) A Comprehensive income statement is a financial statement that includes both standard income and expenses and other comprehensive income and expenses.
The Federal Reserve sets the reserve requirement, which banks must meet through deposits at the Fed and cash held at the bank. What do these requirements achieve? Check all that apply. They help to control the money supply. They help to prevent bank runs by reassuring the public that banks will not make too many loans and run out of cash. They mean that banks must have one dollar of deposits for every dollar it loans. They help to facilitate transfers of funds between banks when a customer from one bank writes a check to a customer of another.
Answer:
The correct answer to the following question will be Option B.
Explanation:
These conditions hopefully reduce banking crises as well as quantify the community against banks never running cash. The criteria for the reservation were established to be doing the ends of the next day.Amount of inter-bank payments, these funds also convince the public which banks aren't going to make many such mortgages.Other available options have no connection with the particular circumstance. So the answer to the above seems to be the right one.
You are going to sell your house. You are determining what the price should be. To help you, you have collected information of houses that have sold in your neighborhood during the past eighteen months. You checked houses within a four mile radius and here is the information you collected. You are going to base your determination of the price of your house based on the following information. Evaluate and discuss whether the data collected was appropriate and representative of the information that is needed to analyze the problem presented in the problem setting.
House House Age Square Feet Selling Price
1 33 1812 $190,000
2 32 1915 $205,200
3 32 1840 $194,000
4 32 1832 $192,000
5 33 1851 $202,000
6 34 2032 $208,600
7 31 1755 $188,200
8 30 1805 $205,000
9 28 1900 $215,000
10 29 1485 $192,000
11 31 1525 $195,000
12 32 1515 $192,200
13 33 1685 $201,300
14 34 1600 $205,400
15 35 1650 $218,000
ANSWER: The data collected is NOT an appropriate representation that can be used to determine how much you should sell your house.
EXPLANATION: A house is evaluated by the contents which were used to build it. For instance a house built with a bricks can not be of the same value with a wood or block house, even though they have the same pattern.
Because the data does not show the values of the contents of the house, which are: walls, pattern, designs, how many stirs, roof, and interior quality, it cannot be used to determine the price you should sell your house.
Also, looking at the data gotten, you can understand that this houses has been sold according to the contents that made up the building, because some old builder were sold more costlier than some new buildings, and some building with a much bigger square feet were sold in a lower price when compared to some buildings with a smaller square feet
Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $42,900 in tailoring fees, and paid $12,800 in expenses. Depreciation expense totaled $1900. Accounts receivable increased $1200, supplies increased $3600, and accrued liabilities increased $1650. Pat's accrual-basis net income was:
Answer:
$31,350
Explanation:
Calculation for Pat's accrual-basis net income
Cash receipts$42,900
Less Cash disbursements(12,800)
Cash basis net income 30,100
Less depreciation expense(1,900)
Add increase in accounts receivable1,200
Add increase in supplies 3,600
Less increase in accrued liabilities(1,650)
Accrual-basis net income$31,350
United Resources Company obtained a charter from the state in January of this year. The charter authorized 206,000 shares of common stock with a par value of $3. During the year, the company earned $493,000 Also during the year, the following selected transactions occurred in the order given: Sold 88,000 shares of the common stock in an initial public offering for $14 per share. Repurchased 26,000 shares of the previously issued shares for $17 per share. Resold 8,000 shares of treasury stock for $20 per share. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
United Resources Company
Stockholders section of the balance sheet at the end of the year:
Common Stock:
Authorized 206,000 shares at $3 par value
Issued 88,000 shares $264,000
Additional Paid-in Capital
($968,000 -364,000 + 136,000) 740,000
Treasury Stock ($78,000 - 24,000) (54,000)
Total Equity $950,000
Explanation:
a) The authorized common stock is stated in the balance sheet as a memorandum record. It does not form part of the calculation of equity since all the shares have not been issued.
b) Issued common stock is valued at 88,000 * $3 = $264,000
c) The difference in the par value and the issue price is recorded in the Additional Paid-in Capital Account. It is also where the increases and decreases in Treasury stock above or below par values are recorded.
d) Treasury Stock is a common stock contra account which records the repurchase and resale of common stock. Two methods are used. One recognizes the whole cost of treasury stock in the Treasury Stock account. It is called the costing method. The other method, called the par-value method, recognizes the above and below par value in the Additional Paid-in Capital.
Calculate the cost of goods sold for a merchandiser using the periodic inventory system from the following details.
Purchases $500,000
Beginning Merchandise Inventory 175,000
Purchase Returns and Allowances 60,000
Purchase Discounts 12,000
Freight In 17,000
Ending Merchandise Inventory 160,000
A. $477,000
B. $460,000
C. $780,000
D. $500,000
Answer:
B. $460,000
Explanation:
The computation of the cost of goods sold using the periodic inventory system is shown below:
Beginning Inventory $175,000
Add: Purchases $500,000
Add: Freight In $17,000
Less: Purchase Returns and allowances -$60,000
Less: Purchase Discounts -$12,000
Cost of goods available for sale $620,000
Less: Ending Inventory -$160,000
Cost of goods sold $460,000
We simply applied the above format to determine the cost of goods sold
At the end of 2001, Lehnhoff Inc. had $75 million in cash on its balance sheet. During 2002, the following events occurred: The cash flow from Lehnhoff's operating activities totaled $325 million. Lehnhoff issued $500 million in common stock. Lehnhoff's notes payable decreased by $100 million. Lehnhoff purchased fixed assets totaling $600 million. How much cash did Lehnhoff Inc. have on its balance sheet at the end of 2002
Answer:
The multiple choices are:
a. $200 Million
b. $50 Million
c. $1.4 Billion
d. $100 Million
The correct option is A,$200 million
Explanation:
The increase in cash recorded from the statement of cash flows prepared in the year plus the opening balance of cash at the beginning of the year gives the cash balance at the end of the year shown below:
Increase in cash in the year=cash flow from operations+cash flow from financing activities-cash flow used on investing activities
increase in cash in the year=$325+($500-$100)-$600=$125 million
cash at the end of the year=$125 +$75=$200 million
Sloan Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,831. The freight and installation costs for the equipment are $554. If purchased, annual repairs and maintenance are estimated to be $415 per year over the four-year useful life of the equipment. Alternatively, Sloan can lease the equipment from a domestic supplier for $1,745 per year for four years, with no additional costs.
Required:
a. Prepare a differential analysis dated December 3 to determine whether Sloan should lease (Alternative 1) or purchase (Alternative 2) the equipment. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon () will automatically appear if required. (Hint: This is a "lease or buy" decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment owner.)
b. Determine whether the Sloan should lease (Alternative 1) or purchase (Alternative 2) the equipment.
Answer:
Alternative 1 Alternative 2 Differential
Lease Buy Amount
Purchase cost $0 $3,831 ($3,831)
Freight and $0 $554 ($554)
installation costs
Annual repairs and $0 $1,660 ($1,600)
maintenance costs
Lease costs $6,980 $0 $6,980
Total costs $6,980 $6,045 $935
The equipment should be purchased instead of leased because the costs of purchasing and maintenance costs are lower than lease costs.
Explanation:
A differential analysis is carried out to determine whether alternative projects' revenues and costs are higher. This way you can determine which project or investment costs less or generates higher profits.
Esquire Comic Book Company had income before tax of $1,550,000 in 2021 before considering the following material items: 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $395,000. The division generated before-tax income from operations from the beginning of the year through disposal of $610,000. 2. The company incurred restructuring costs of $60,000 during the year. Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures.
Answer:
Esquire Comic Book Company
Income Statement
For the Year Ended December 31, 2021
Operating income $1,550,000
Restructuring costs ($60,000)
Income from continuing operations b/ Taxes $1,490,000
Income tax expense ($372,500)
Income from continuing operations $1,117,500
Discontinued operations:
Operating income $610,000Loss on disposal ($395,000)Income tax on discontinued operations ($53,750)Income from discontinued operations $161,250
Net income $1,278,750
Explanation:
Income from discontinued operations must be reported separately, but any restructuring costs must be included as operational expenses.
CommercialServices Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 3,000,000 Net operating income $ 150,000 Average operating assets $ 750,000 The following questions are to be considered independently. Garrison 16e Rechecks 2019-01-10 Required: 1. Compute the company's return on investment (ROI).
Answer:
The answer is 0.20 or 20%
Explanation:
Solution
Given that:
The sales = $ 3,000,000
The Net operating income= $150,000
The Average operating assets =$ 750,000
The next step is to calculate the company return rate of investment
Thus,
The return of investment is stated as follows:
the return of investment = Net operating income divided by the average operating assets * 100
= $150,000/$750,000
= 0.2 * 100
= 20 %
Therefore, the company's ROI is 20%
Suppose that the government implements expansionary fiscal policy that raises aggregate demand, but the policy is unanticipated. According to new classical theory, in the short run the price level would ____________ and Real GDP would ______________. In the long run, new classical theory would predict that the price level would ______________ compared to its original long-run equilibrium level and that Real GDP would ____________.
Answer:
Rise;rise;rise;remain unchanged.
Explanation:
The new classical theory also known as the neoclassical economic theory is one that repudiates and tends to restructure the John M. Keynes theory of macroeconomics, popularly referred to as the Keynesian Macroeconomics theory.
The new classical theory argues that efficient demand and supply is the most important feature or key behind the level of output, pricing, and consumption of goods and services by the people at a specific period of time in a country. Also, the new classical theory assumes that the wages of the employees in a country is flexible in contrast to the Keynesian macroeconomic theory.
Suppose that the government implements expansionary fiscal policy that raises aggregate demand, but the policy is unanticipated. According to new classical theory, in the short run the price level would rise and Real Gross Domestic Product (GDP) would rise. In the long run, new classical theory would predict that the price level would rise compared to its original long-run equilibrium level and that Real Gross Domestic Product (GDP) would remain unchanged.
Companies Heidee and Leaudy are virtually identical in that they are both profitable, and they have the same total assets (TA), Sales (S), return on assets (ROA), and profit margin (PM). However, Company Heidee has the higher debt ratio. Which of the following statements is CORRECT?
a. Company Heidee has a lower operating income (EBIT) than Company LD
b. Company Heidee has a lower total assets turnover than Company Leaudy.
c. Company Heidee has a lower equity multiplier than Company Leaudy.
d. Company Heidee has a higher fixed assets turnover than Company Leaudy.
e. Company Heidee has a higher ROE than Company Leaudy.
Answer:
e. Company Heidee has a higher ROE than Company Leaudy.
Explanation:
Return on equity measures how well the management of a business uses owner's equity to get returns. It is calculated by dividing net income by owner's equity.
That is
ROE= Net Income ÷ Owner's equity
Considering the accounting equation
Asset= Liability + Owner equity
Owner equity= Asset - Liability
From the equation when a company that take on more debt owner's equity will reduce.
The effect of reduction in owner's equity on Return on Equity is that it will increase the ratio, since owner's equity is the denominator.
In this scenario both companies have the same profit margin so if company Heidee has higher debt ratio it follows that it also has a higher ROE than Company Leaudy
Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $3,600 debit. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title for the adjusting entry to record the bad debts Bad Debt Expense enter a debit amount enter a credit amount enter an account title for the adjusting entry to record the bad debts Allowance for Doubtful Accounts
Answer:
Find attached missing part:
Dr bad debt expense $ 22,050.00
Cr allowance for doubtful accounts $ 22,050.00
Explanation:
The estimated balance of uncollectible debts is the accounts receivable of $570,000 multiplied by 4.5% which is the rate of uncollectible debt given in the question.
Estimated balance of uncollectible debt=$570,000*4.5%=$ 25,650.00
The adjusting entries required to record bad debts as per the amount computed above is the estimated balance of uncollectible of $ 25,650.00 minus the debit balance of $3,600 already in the unadjusted balance in allowance for doubtful debts.
adjusting amount=$ 25,650.00-$3,600.00=$ 22,050.00
Journalize the July transactions.
Martin Johnson opened Seaside Cleaning Service on July 1, 2019. During July, the company completed the following transactions:
July 1 Owner Martin Johnson invested $39,870 cash and $7,545 of cleaning equipment in the business.
1 Purchased a used truck for $10,500, paying $2,500 cash and the balance on account.
3 Purchased cleaning supplies for $1,794 on account.
5 Paid $1,800 on a one-year insurance policy, effective July 1.
12 Billed customers $4,813 for cleaning services.
15 Received $1,650 from customers for future cleaning services.
18 Paid $1,200 of amount owed on truck.
20 Paid $698 for employee salaries.
21 Collected $3,632 from customers billed on July 12.
25 Billed customers $6,275 for cleaning services.
31 Paid gasoline for the month on the truck, $297.
31 Owner Martin Johnson withdrew $1,000 for personal use.
Adjustments:
July 31 Earned but unbilled fees at July 31 were $2,476.
Depreciation on truck for the month was $175.
Earned $450 of payment received on July 15.
One-twelfth of the insurance expired.
An inventory count shows $521 of cleaning supplies on hand at July 31.
Accrued but unpaid employee salaries were $287.
Answer:
Transactions :
July 1
Cash $39,870 (debit)
Cleaning Equipment $2,500 (debit)
Capital $42,370 (credit)
July 1
Truck $10,500 (debit)
Cash $2,500 (credit)
Accounts Payable $8,000 (credit)
July 3
Cleaning Supplies $1,794 (debit)
Accounts Payable $1,794 (credit)
July 5
Prepaid Insurance $1,800 (debit)
Cash $1,800 (credit)
July 12
Trade Receivable $4,813 (debit)
Service Revenue $4,813 (credit)
July 15
Cash $1,650 (debit)
Deferred Revenue $1,650 (credit)
July 18
Accounts Payable $1,200 (debit)
Cash $1,200 (credit)
July 20
Cash $3,632 (debit)
Accounts Receivable $3,632 (credit)
July 25
Trade Receivables $6,275 (debit)
Service Revenue $6,275 (credit)
July 31
Utilities : Gasoline $297 (debit)
Cash $297 (credit)
July 31
Capital $1,000 (debit)
Cash $1,000 (credit)
Adjustments:
July 31
Cash $2,476 (debit)
Deferred Revenue $2,476 (credit)
July 31
Depreciation $175 (debit)
Accumulated Depreciation $175 (credit)
July 31
Deferred Revenue $450 (debit)
Revenue $450(credit)
July 31
Insurance Expense $150 (debit)
Insurance Prepaid $150 (credit)
July 31
Supplies Inventory $521 (debit)
Income statement $521 (credit)
July 31
Wages $287 (debit)
Wages Payable $287 (credit)
Explanation:
Journal entries have been made for both the transactions and adjustments that occurred during the period.
Note : Revenue earned but not billed is recorded as a Liability known as Deferred Revenue. The liability is de-recognized later as the customers or service is billed.
