Answer:
a. $181,000
Explanation:
The Income Statement consists of Revenue and Expenses recorded on Accrual Basis. The Accrual Basis of Accounting states that Revenue and Expenses must be recorded as and when they Occur or Incur not when cash is paid or received.
Calculation of Net Income will thus be as follows :
Revenue Received $260,000
Unearned Revenue($65,000-$35,000) $30,000
Total Revenue $290,000
Less Expenses :
Expenses ($85,000+$26,000-$28,000) $83,000
Depreciation $16,000
Net Income $181,000
Bob, proprietor of Bob's Burgers, would like to retire in 20 years. He plans to deposit $6500 at the end of each year for the next 20 years into an account expected to earn 7.5% compounded annually. How much will Bob have in his retirement account in 20 years immediately after making his last deposit
Answer:
$281,480
Explanation:
we need to find the future value of the annuity payments, we can use the future value of annuity formula (I couldn't find an annuity table for 7.5%):
future value = annual payment x [(1 + r)ⁿ - 1] / r
annual payment = $6,500r = 7.5%n = 20 yearsfuture value = $6,500 x [(1 + 0.075)²⁰ - 1] / 0.075 = $6,500 x 43.30468 = $281,480
The amount that Bob have in his retirement account in 20 years immediately after making his last deposit is $281,480.
Future value:Using this formula
Future value =Annual payment x [(1 + Interest rate)^Number of years - 1] / Interest rate
Where:
Annual payment = $6,500
Interest rate = 7.5% or 0.075
Number of years= 20 years
Let plug in the formula
Future value = $6,500 x [(1 + 0.075)²⁰ - 1] / 0.075
Future value=$6,500 x [(1 .075)²⁰ - 1] / 0.075
Future value=$6,500 x [(4.24785) - 1] / 0.075
Future value=$6,500 x [3.24785]/ 0.075
Future value = $6,500 x 43.30467
Future value= $281,480
Inconclusion the amount that Bob have in his retirement account in 20 years immediately after making his last deposit is $281,480.
Learn more about future value here:https://brainly.com/question/24703884
On March 4 of 1999, XYZ Corporation takes out a $1 million loan. The company pays the interest semiannually. The six-month interest rate is six-month LIBOR 80 basis points, with a cap at 9.25%. Assume that LIBOR is at 8.5% on March 4, 1999, and 7.75% on September 4, 1999. What is the second interest payments on the loan
Answer: $85,500
Explanation:
From the question, we are told XYZ Corporation takes out a $1 million loan and the interest on the loan is paid semiannually.
We are also told that the six-month interest rate is six-month LIBOR 80 basis points, with a cap at 9.25%. Assume that LIBOR is at 8.5% on March 4, 1999, and 7.75% on September 4, 1999.
The second interest payments on the loan will be:
The interest rate will be:
Interest rate = LIBOR + 80bps
= 7.75 + 0.8
= 8.55%
Interest paid in the second period
= $1,000,000 × 8.55%
= $1,000,000 × 0.0855
= $85,500
Note that there is no need for using the cap since the interest didn't exceed 9.25%
g invested $800,000 in a new CNC hot wire cutting machine. They intend to sell foam products fabricated using this machine. At an interest rate of 12% per year compounded quarterly, the quarterly income required to recover the investment in 3 years is (choose closet answer):
Answer:
Quarterly income = $ 36,643.03
Explanation:
The quarterly income ca be determined using the present value of the annuity technique.
The Present Value of the annuity technique
PV = A × ((1- (1+r)^(-n)/r
A- quarterly payment, n- number of quarters, quarterly rate, PV - Present of investment
A- ? n -3× 12= 36, r-12%/4= 3%
800,000 = A× (1- (1.03)^(-36)
800,000 = A× (1- (1.03)^(-36)
800,000 = A × 21.8322525
A = 800,000/21.8322525
A= 36,643.03
Quarterly income = $ 36,643.03
On June 30, 2011, Cole Inc., exchanged 3,000 shares of Stone Corp. $30 par value common stock for a patent owned by Gore Co. The Stone stock was acquired in 2009 at a cost of $80,000. At the exchange date, Stone common stock had a fair value of $45 per share, and the patent had a net carrying value of $160,000 on Gore's books. Cole should record the patent at:
Answer:
$135000
Explanation:
Cole should record the patent at $135000. The intangible asset is recorded at the price at which it was purchased. Net carrying value of $160000 in the books of seller is not useful.
At the time of purchase of intangible asset, the fair value of stone stock exchanged was $45.
So the patent cost is =
3000 shares × $45 per share = $135000.
Cole should record the patent at this value.
17. A global strategy for a company would include a. Products tailored to local tastes and needs, with local sourcing. b. A standardized product available without any local responsiveness. c. Patents and copyrights that are designed to promote maximum innovation. d. All of the above.
Answer: b. A standardized product available without any local responsiveness.
Explanation:
A global strategy refers to when a company aims to expand across the globe. One of the strategies is known as Standardisation.
This is a policy where the company that hopes to expand decides that it wants to make a standard product that is the same the world over. By not making it available without local responsiveness ( differentiating it by adding local features to it), the company signals that they want their product to be the same around the world.
It is very useful to some companies such as Apple which has the iPhone around the world with no local customisation and Dominoes Pizza which aims to have their pizza taste the same the world over.
The assumptions of the production order quantity (EPQ) model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 20 and the daily production rate is 100. What is the optimal order and setup cost?
A) 139.B) 174.C) 184.D) 365.E) 548.
Answer:
C) 184
Explanation:
Options are inconsistent with data given.
Optimal Order is the level of order that is made to keep the setup cost to a minimum level.
It can be calculated by using following formula.
EPQ = [tex]\sqrt{\frac{2 X K X D}{h X ( 1 - x )}}[/tex]
K = Setup Cost = $50
D = Annual demand = 3,650 units
h = Holding cost = $12
x = daily demand rate/ daily production rate = 20 / 100 = 0.2
Placing values in the formula
EPQ = [tex]\sqrt{\frac{2 X 50 X 3650}{12 X ( 1 - 0.2 )}}[/tex]
EPQ = 194.99 units = 195 units
Answer according to correct data
Question
The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. The production order quantity for this problem is approximately
Answer
Options are inconsistent with data given.
Optimal Order is the level of order that is made to keep the setup cost to a minimum level.
It can be calculated by using following formula.
EPQ = [tex]\sqrt{\frac{2 X K X D}{h X ( 1 - x )}}[/tex]
K = Setup Cost = $50
D = Annual demand = 3,650 units
h = Holding cost = $12
x = daily demand rate/ daily production rate = 10 / 100 = 0.1
Placing values in the formula
EPQ = [tex]\sqrt{\frac{2 X 50 X 3650}{12 X ( 1 - 0.1 )}}[/tex]
EPQ = 183.84 units = 184 units
6. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. Funds spent by city governments to renovate their buildings The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government The costs of air and water pollution The variety of goods available to consumers When a U.S. company purchases and imports automotive parts from Canada to use to build cars within the United States, this purchase increases the component of GDP while also net exports by the same amount. Therefore, the purchase of automotive parts from Canada causes in US GDP.
Answer:
The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government
The costs of air and water pollution
The variety of goods available to consumers
It increases investment spending by businesses
Decreasing net export
No change
Explanation:
Gross domestic product is the sum of the goods and services produced in an economy within a given period which is usually a year.
Gross domestic product calculated using the expenditure approach = Consumption spending + Investment spending + net export + government spending
Items not included in the calculation of GDP:
1. Intermediate goods
2. Externalities e.g. pollution
3. Measures of welfare available to individuals
4. Transactions not reported to the government.
Funds spent by city governments to renovate their buildings are included in GDP as part of investment spending.
Purchase of automative parts would be included in GDP as part of investment spending. So investment spending would rise. Also, it would be recorded as an import and import is a negative function of GDP and thus net export would decrease . As a result, the increase in investment spending would be offset by the decrease in net export and there would be no change in GDP
I hope my answer helps you
Valley Technology Balance Sheet As of March 11, 2020 (amounts in thousands) Cash 9,700 Accounts Payable 1,500 Accounts Receivable 4,500 Debt 2,900 Inventory 3,800 Other Liabilities 800 Property Plant & Equipment 16,400 Total Liabilities 5,200 Other Assets 1,700 Paid-In Capital 7,300 Retained Earnings 23,600 Total Equity 30,900 Total Assets 36,100 Total Liabilities & Equity 36,100 Use T-accounts to record the transactions below, which occur on March 12, 2020, close the T-accounts, and construct a balance sheet to answer the question. 1. Buy $15,000 worth of manufacturing supplies on credit 2. Issue $85,000 in stock 3. Borrow $63,000 from a bank 4. Pay $5,000 owed to a supplier 5. Receive payment of $12,000 owed by a customer What is the final amount in Total Liabilities?
Answer:
total liabilities = accounts payable $11,500 + unearned revenue $7,500 + debt $65,900 + other liabilities $800 = $85,700
Explanation:
Cash 9,700 Accounts Payable 1,500 Accounts Receivable 4,500 Debt 2,900 Inventory 3,800 Other Liabilities 800 Property Plant & Equipment 16,400 Total Liabilities 5,200 Other Assets 1,700 Paid-In Capital 7,300 Retained Earnings 23,600 Total Equity 30,900 Total Assets 36,100 Total Liabilities & Equity 36,100
1. Buy $15,000 worth of manufacturing supplies on credit
Supplies Accounts payable
debit credit debit credit
15,000 1,500
15,000
16,500
2. Issue $85,000 in stock
Cash Paid-In Capital
debit credit debit credit
9,700 7,300
85,000 85,000
94,700 92,300
3. Borrow $63,000 from a bank
Cash Debt
debit credit debit credit
94,700 2,900
63,000 63,000
157,700 65,900
4. Pay $5,000 owed to a supplier
Cash Accounts payable
debit credit debit credit
157,700 16,500
5,000 5,000
152,700 11,500
5. Receive payment of $12,000 owed by a customer
Cash Accounts receivable
debit credit debit credit
152,700 4,500
12,000 12,000
164,700 7,500
Due to some strange reason, accounts receivable has a debit balance (= $4,500 - $12,000). Since that is not possible, the remaining part $7,500 must be included under unearned revenue:
Accounts receivable Unearned revenue
debit credit debit credit
7,500 0
7,500 7,500
0 0 7,500
Shelton Co. purchased a parcel of land six years ago for $873,500. At that time, the firm invested $145,000 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $54,000 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $925,000. What value should be included in the initial cost of the warehouse project for the use of this land?
Answer:
$925,000
Explanation:
The value of the land that would be included in the initial cost of the warehouse is it market value of $925,000 which the land currently commands.
The rationale for this are numerous:
Firstly,if the land was not previously owned by Shelton Co, would have to purchase a similar land at its market value.
Secondly, if the land was not deployed to the project, it could be sold now for cash at $925,000
A firm wishes to issue new shares of its stock, which already trades in the market. The current stock price is $24, the most recent dividend was $3 per share, and the dividend is expected to grow at a rate of 4% forever. Flotation costs for this issue are expected to be 6%. What is the required rate of return (or financing cost) in this new issue?
Answer:
17.83%
Explanation:
The computation of required rate of return is shown below:-
Required rate of return = ((Expected dividend ÷ (Current Stock price × (1 - Flotation cost as a percentage of issue price)) + Growth rate)) × 100
= ((Dividend × (1 + Growth rate)) ÷ Current Price of stock × (1 - Flotation cost as a percentage of issue price)) + Growth rate))) × 100
= ($3 × (1.04) ÷ $24 × (1 - 0.06) + 0.04) × 100
= ($3.12 ÷ $22.56 + 0.04) × 100
= (0.138297872 + 0.04) × 100
= 17.82978723
or
= 17.83%
Therefore we have applied the above formula.
If your risk-aversion coefficient is A = 4.4 and you believe that the entire 1926–2015 period is representative of future expected performance, what fraction of your portfolio should be allocated to T-bills and what fraction to equity? Assume your utility function is U = E(r) – 0.5 × Aσ2
Answer:
=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.
=> fraction to equity = 0.5518 = 55.18%.
Explanation:
So, in this question or problem we are given the following parameters or data or information which are; that the utility function is U = E(r) – 0.5 × Aσ2 and the risk-aversion coefficient is A = 4.4.
The fraction of the portfolio that should be allocated to T-bills and its equivalent fraction to equity can be calculated by using the formula below;
The first step is to determine or Calculate the value of fraction to equity.
Hence, the fraction to equity = risk premium/(market standard deviation)^2 - risk aversion.
= 8.10% ÷ [(20.48%)^2 × 3.5 = 0.5518.
Therefore, the value for fraction of the portfolio that should be allocated to T-bills = 1 - fraction to equity = 1 - 0.5518 =0.4482 .
Calculate the Social Security and Medicare deductions for the following employee (assume a tax rate of 6.2% on $128,400 for Social Security and 1.45% for Medicare): (Round your answers to the nearest cent.)
Answer:
Social Security tax = $7,960.80
Medicare tax = $1,861.80
Explanation:
Let's begin by listing out the information given:
Social Security tax rate = 6.2%,
Medicare tax rate = 1.45%,
Income = $128,400
To calculate for the deductions(tax), we use the formula:
Tax = Tax rate * Income
For Social Security
Tax = Tax rate * Income
Tax = 6.2% * $128,400
T = 0.062 * $128,400
T = $7,960.80
∴ $7,960.80 of the employee's income is deducted for Social Security tax
For Medicare
Tax = Tax rate * Income
Tax = 1.45% * $128,400
T = 0.0145 * $128,400
T = $1,861.80
∴ $1,861.80 of the employee's income is deducted for Medicare tax
Wrong Meds, Again! “It was horrible,” said the distraught client. “No matter how many times I provided the information, no one listened to me. And they obviously didn’t listen to each other either, because they used the wrong meds . . . again.” “Okay, calm down. Now tell me what happened from the beginning,” urged Melanie Torrent, the Quality Assurance Manager for Hope Memorial Hospital. “I got a call at work saying my father was being taken to the hospital from the nursing home. The nursing home always sends a list of medications with the ambulance, but when I got to the emergency room, they were asking my dad what medications he was taking. Of course my dad told them he wasn’t taking any medications and they believed him! He’s sent to the emergency room from a nursing home and they decide it’s reasonable for him not to be on any medications . . . so of course I corrected him and told them to find the medication list. I don’t know whether the ambulance driver forgot to bring in the list, or gave it to the wrong person, or what, but they couldn’t find it. My dad must be on 12 different medications so I wasn’t sure I could remember them correctly. I called the nursing home and we went over the list with them, and then I gave the handwritten list to the nursing station. In the meantime, my dad was admitted to the hospital and moved to a hospital room. Again, a nurse came in with a computer and asked me to tell them what meds he was talking. I tried to tell them that the emergency room had the list, but she said it would be the next morning before the list got updated online. Nevertheless, the nurse called down to the emergency room and was faxed up the list of medications. Only the fax was unreadable, so they came back to me. It was a few hours before his next meds were due, so I drove over to the nursing home, had them make several legible copies of the meds list and drove back to the hospital. I gave the nurse the list, kept one for myself and posted the other on the bulletin board in my dad’s room. The nurse thanked me and said she’d take care of it at the end of her shift. After a long night at the hospital, I woke up the next morning to see my dad hallucinating. I knew immediately what had happened—there’s a certain drug that he has this reaction to. I ran down to the nurse’s station and had her look up the medications he had been given. Sure enough, it was there, along with several other medications he should no longer be taking. Turns out, the list was from two years ago when he had last been admitted to the hospital! How could they have made that kind of mistake—using data from two years ago?” “That is something we’ll look into. More importantly, has your father been taken off the drug?” “Yes.” “And has the medication list been corrected?” “Yes.” “And how is he doing today?” “Fine today, but it could have been more serious and I think you should look into changing your procedures so this doesn’t happen again . . .” “I appreciate you bringing this to my attention. I will speak to the persons involved and I assure you this will not happen again. Hope Memorial prides itself on being a caring and responsible health care provider. Now if you’ll excuse me, I have another client to see . . .” 1. Trace the path of the medication list and denote possible failure points. Construct a process flowchart of the existing process and create a new chart of an improved process. 2. Was the medication error a failure of individuals or a failure of the process? Explain. 3. Think about the different settings, the ambulance, the emergency room, the hospital room, and the nurse’s station. How is data handled in each scenario? Can the process of recording information be changed so that every one is using the same data? How can the accuracy of the data be assured? 4. Given Melanie’s reaction, do you think this error will happen again? Why or why not?
Answer:
Explanation:
no it will not happen agian because she learned from her mistake!
Gloria Rose works at College of Austin and is paid $ 30 per hour for a 40-hour workweek and time-and-a-half for hours above 40. LOADING...(Click the icon to view payroll tax rate information.) Requirements 1. Compute Rose's gross pay for working 60 hours during the first week of February. 2. Rose is single, and her income tax withholding is 20 % of total pay. Rose's only payroll deductions are payroll taxes. Compute Rose's net (take-home) pay for the week. Assume Rose's earnings to date are less than the OASDI limit. 3. Journalize the accrual of salaries and wages expense and the payments related to the employment of Gloria Rose. Requirement 1. Compute Rose's gross pay for working 60 hours during the first week of February. Gross Pay
Answer and Explanation:
1. The gross pay is
Straight time pay
= 40 hours × $30 per hour
= $1,200
overtime pay
= 40 hours × $30 per hour × 1.5
= $1,800
So, the total gross pay is
= $1,200 + $1,800
= $3,000
2. Now the net take home pay is
Gross pay $3,000
Less: deductions
Income tax withholding (20%) -$600
Employee OASDI tax (6.2%) -$186
Employee medicare tax (1.45%) -$43.50
Net take home pay $2,170.50
3. Now the journal entries are
Wages expense $3,000
To Income tax payable $600
To Employee OASDI tax payable $186
To Employee medicare tax payable $43.50
To wages payable $2,170.50
(Being the wages expense is recorded)
We debited the expenses as it increased the expenses and credited all liabilities it increased the liabilities
Wages payable Dr $2,170.50
To cash $2,170.50
(being cash paid is recorded)
For recording this we debited the wages payable as it reduced the liabilities and credited the cash as it also reduced the current assets
Gangsta Industries,INC produces a variety of anti-crime and safety products such as burglar alarms, smoke detectors, surveillance cameras, and specialty locks. Gangsta sells to households, businesses, and government agencies. They have found that each market group requires a different marketing strategy. Gangsta would probably benefit from departmentalization by:
Answer:
Customer type.
Explanation:
From the scenario described in the question above, Gangsta Industries would benefit from departmentalization by type of consumer.
In this type of departmentalization, the company groups its activities according to its common customer base, or the types of customers that the organization serves.
This is a strategy that enables the company to better serve a group of specific customers based on their problems, needs and preferences, which results in a more targeted and effective service.
Computing investing cash flows
Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted should be indicated with a minus sign.) Sold a truck costing $48,000, with $25,200 of accumulated depreciation, for $11,200 cash. The sale results in a $11,600 loss. Sold a machine costing $13,800, with $9,600 of accumulated depreciation, for $8,200 cash. The sale results in a $4,000 gain. Purchased stock investments for $17,600 cash. The purchaser believes the stock is worth at least $33,200.
Answer: Please refer to Explanation
Explanation:
The Cash Flow Statement was created to ensure that businesses would know just how much hard cash they actually have. This Statement is therefore different from others in that in only records cash when it has been received and/or disbursed thus making it easier for a company to know how much cash it has.
The Investing Section of the Cashflow statement deals with fixed assets as well as transactions involving securities and bonds of other entities as those are investments.
When cash is spent on these transactions it is a Cash Outflow and is therefore subtracted.
When cash is received from such transactions it is considered a cash inflow and is added.
Effects of Above Transactions.
Sold a Truck for $11,200. This will INCREASE the Investing Cash Flow by $11,200.
Sold a Machine for $8,200. This will INCREASE the Investing Cash Flow by $8,200.
Purchased stock investments for $17,600 cash. This will DECREASE the Investing Cash Flow by -$17,600 as it was a cash Outflow.
The Investing Section of the Cash Flow Statement will look like,
Sold a Truck $11,200
Sold a Machine $8,200
Purchased stock investments -$17,600
Net Cashflow from Investing Activities $1,800
Suppose Rebecca needs a dog sitter so that she can travel to her sister’s wedding. Rebecca values dog sitting for the weekend at $200. Susan is willing to dog sit for Rebecca so long as she receives at least $175. Rebecca and Susan agree on a price of $185. Suppose the government imposes a tax of $30 on dog sitting. What is the deadweight loss of the tax?
Answer:
The deadweight loss of the tax is $25
Explanation:
In order to calculate the deadweight loss of the tax we would have to make the following calculation:
deadweight loss of the tax=maximum willingness to pay - minimum willingness to accept
maximum willingness to pay=$200
minimum willingness to accept =$175
deadweight loss of the tax=$200-$175
deadweight loss of the tax=$25
The deadweight loss of the tax is $25
Answer: $25
Explanation:
Given Data:
Rebecca value for dog sitting = $200
Susan’s minimum agreed price = $175
Rebecca and Susan agreed price = $185
Government tax on dog sitting = $30
Dead weight loss = Rebecca value - Susan list price
= $200 - $175
= $25
The dead weight loss of tax is $25
Which of the following is NOT a pitfall an organization should avoid in strategic planning? Involving all managers rather than delegating planning to a "planner" Failing to communicate the plan to employees Failing to create a collaborative climate supportive of change Top managers not actively supporting the strategic-planning process Doing strategic planning only to satisfy accreditation or regulatory requirements
Answer:
Involving all managers rather than delegating planning to a "planner"
Explanation:
Strategic planning is a process of establishing the direction of a business. It assesses where the business is and where it is going. And the action plan needed to get to it's goal.
Delegating planning to a planner rather than involving all managers is an identified pitfall in strategic planning.
This is why Involving all managers rather than delegating planning to a "planner" is the correct answer since we are required to identify a non pitfall by the question.
1. Investment in the business= $17,010
2. Borrow cash= $7620
3. Purchase equipment= the list price was $8700 but the final price was $8300
4. Revenues earned = $298,600, the cash has been collected from the customers for all revenue earned
5. Expenses incurred= total $210,900 during the same year, all expenses paid in cash
6. Dividens= end of each quarter, the company distributed cash to stockholders, the sum of those quarterly distributions was $15,000
Consider the following transactions for Thomas Company and their effect ont he accounting equation. Determine the new balance for each component of the accounting equation from the transactioon. If an amount box does not require an entry, leave it blank.
Transaction Assets =Liabilities Stockholders' Equity
Beginning $0 $0 $0
1. Investment in the business $17,160 17160
2. Borrow cash $7940 7940 7940
3. Purchase equipment 8600 7940 660
4. Revenues earned 29860 0 29860
5. Expenses incurred 210800 103660
6. Dividends 14200 88460
Answer & Explanation:
Assets = Capital + Liabilities
1) Investment Cash (+17...) (+17160)
2) Borrowings Cash (+7...) Loan (+7...)
3) Purchase Cash (-price paid) + Gain
Equip (+final price) (final - price paid)
4) Revenue Cash (+298...) Income (+298...)
5) Expense Cash (-210...) Expense (-210...)
3)* Price paid = 8700 or 8600 , Final price = 8300 or 7940 , Gain (Discount received) = 8700 - 8300 ie 400 (or) 8600 - 7940 = 660
Salaries for professions (such as architect or medical doctor) that require a long period of study are typically higher than those for other jobs. The reasons for this are all of the following EXCEPT __________.a. students sacrifice a good deal of present incomeb. status deserves more reward in the form of wagesc. long periods of schooling incur greater current costsd. future income is worth less than present income
Answer:
d. future income is worth less than present income
Explanation:
Remember, since we want an exception to all the possible reasons for higher salaries of those in medical and architectural profession, we carefully examine the reasons given.
However, in no way is it because those of this profession (architect, medical doctors) would earn future income worth less than their present income a basis for their higher salaries than other jobs, since most often they earn more as they the years goes by in their profession.
"A long time customer has purchased securities in a margin account and is experiencing a temporary cash shortfall. The customer tells the registered representative that he cannot pay on settlement; and the registered representative offers to lend the customer the necessary funds. This action is:"
Answer: Prohibited.
Explanation:
The Financial Industry Regulatory Authority (FINRA) frowns upon the action described above.
FINRA strongly prohibits the personal borrowing of money by the representative to a customer or vice versa. The only time this prohibition can be waved is if the parties are married or family.
Seeing as there was no mention of the parties being family, this action is prohibited.
Following are transactions for Valdez Services, a company owned by Brina Valdez. Brina Valdez invested $20,000 cash in the company in exchange for common stock. The company provided services to a client and immediately received $900 cash. The company received $10,000 cash from a client in payment for services to be provided next year. The company received $3,500 cash from a client in partial payment of accounts receivable. The company borrowed $5,000 cash from the bank by signing a note payable.
Required:
Prepare general journal entries for the above transactions of Valdez Services.
Mark Welsch deposits $7,200 in an account that earns interest at an annual rate of 4%, compounded quarterly. The $7,200 plus earned interest must remain in the account 3 years before it can be withdrawn. How much money will be in the account at the end of 3 years
Answer:
$8,113.14
Explanation:
The computation of the amount will be in the account at the end of 3 years i.e future value is shown below:
As we know that
Future value = Present value × (1 + interest rate)^number of years
= $7,200 × (1 + 0.04 ÷ 4)^ 3 × 4 quarters
= $7,200 × (1.01)^12
= $7,200 × 1.12682503
= $8,113.14
Since it is compounded quarterly so we divided the rate by 4 quarters and multiplied the number of years with the 4 quarters as there are 4 quarters in a year
Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activities (and Activity Measures) Estimated Overhead Cost Machine related (machine-hours) $256,520 Batch setup (setups) $261,360 General factory (direct labour-hours) $178,560 Expected Activity Activities Product X Product Y Total Machine related 4,300 6,300 10,600 Batch setup 8,600 1,300 9,900 General factory 3,300 6,300 9,600 Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to:
Answer:
The total amount of overhead cost allocated to Product X would be closest to $ 392,480
Explanation:
Activities (and Activity Measures) Estimated Overhead Cost
Machine related (machine-hours) $256,520
Batch setup (setups) $261,360
General factory (direct labour-hours) $178,560
Expected Activity
Activities Product X Product Y Total
Machine related 4,300 6,300 10,600
Batch setup 8,600 1,300 9,900
General factory 3,300 6,300 9,600
The total amount of overhead cost allocated to Product X would be closest to:
Machine related = (4,300 × $256,520) ÷ 10,600 = $104,060
Batch setup = (8,600 × $261,360) ÷ 9,900 = $227,040
General factory = (3,300 × $178,560) ÷ 9,600 = $61,380
Total = $104,060 + $227,040 + $61,380 = $ 392,480
If an individual's utility function for coffee (x) and cream (y) is given by , the demand function for coffee is given by:__________.
Incomplete question. Options provided in
Answer:
c.
Explanation:
Note that after performing necessary calculation we arrived at the conclusion where X = I/(PX + 0.2PY) where PX= demand and PY= expenditures.
The balance sheet for Campbell Corporation follows:________.
Current assets $238,000
Long-term assets (net) 756,000
Total assets $994,000
Current liabilities $156,000
Long-term liabilities 444,000
Total liabilities 600,000
Common stock and retained earnings 394,000
Total liabilities and stockholders’ equity $994,000
Required Compute the following. (Round ""Ratios"" to 1 decimal place.)
a. Working Capital?
b. Current Ratio?
c. Debt to assets Ratio?
d. Debt to equity Ratio?
Answer:
a.
$82,000
b.
1.53
c.
0.6
d.
1.52
Explanation:
a.
Working capital is the net of current assets and current liabilities.
Working Capital = Current Asset - Current Liabilities
Placing values in the formula
Working Capital = $238,000 - $156,000
Working Capital = $82,000
b.
Current ratio is the ratio of current asset and liabilities.
Current Ratio = Current Assets / Current Liabilities
Placing values in the formula
Current Ratio = $238,000 / $156,000
Current Ratio = 1.53
c.
Debt to asset ratio is the ratio of debt to total assets of the company.
Debt to assets Ratio = Total Liabilities / Total Assets
Placing values in the formula
Debt to assets Ratio = $600,000 / $994,000
Debt to assets Ratio = 0.60
d.
Debt to equity ratio is the ratio of debt to equity of the company.
Debt to equity Ratio = Total Liabilities / equity
Placing values in the formula
Debt to equity Ratio = $600,000 / $394,000
Debt to equity Ratio = 1.52
Howard Company has two support departments (S1 and S2) and two producing departments (P1 and P2). Department S1 costs are allocated on the basis of number of employees, and Department S2 costs are allocated on the basis of space occupied expressed in square feet.
Data on direct department costs, number of employees, and space occupied are as follows:
S1
S2
P1
P2
Direct dept. costs
$7,500
$11,000
$27,500
$30,000
Number of employees
10
5
20
25
Space occupied (sq. ft.)
1,000
500
1,500
2,500
If Howard used the reciprocal method, the algebraic equation expressing the total costs allocated from S1 is
Select one:
a. S1 = $7,500 + 0.10S2.
b. S1 = $7,500 + 0.20S2.
c. S1 = $10,000 + 0.20S2.
d. S1 = $10,000 + 0.10S2.
Answer: S1 = $ 7500 + 0.20 S2
Explanation:
From the question, Howard Company has two support departments which are (S1 and S2) and two producing departments which are (P1 and P2). The department S1 costs are allocated on the basis of number of employees, and the department S2 costs are allocated on basis of space occupied expressed in square feet.
The algebraic equation expressing the total costs allocated from S1 is calculated as follow:
S1 Direct Cost = $ 7500
The cost of S2 will be allocated to S1 based on the space occupied and the total space that is occupied is:
= 1000 + 1500 + 2500
= 5000 sq ft
Space occupied by S1 = 1000
S2’s cost allocated to S1 will be:
= (1000 / 5000) of S2 cost
= 0.20 S2
Therefore the correct option is:
S1 = $ 7500 + 0.20 S2
Can't Hold Me Back, Inc. is preparing to pay its first dividends. It is going to pay $1.00, $2.50, and $5.00 a share over the next three years, respectively. After that, the company has stated that the annual dividend will be $1.25 per share indefinitely. What is this stock worth to you per share if you demand a 7% rate of return
Answer:
The stock worth to you per share if you demand a 7% rate of return is $21.78
Explanation:
In order to calculate the stock worth per share if you demand a 7% rate of return we would have to make the following calculation:
stock worth per share=PV of the first three years' returns+PV of the constant dividend stream from the fourth year
PV of the first three years' returns = 1/1.07+2.5/1.07^2+5/1.07^3 =$7.20
PV of the constant dividend stream from the fourth year,= (1.25/0.07)/1.07^3 =$14.58
Therefore, stock worth per share=$7.20 +$14.58
stock worth per share=$21.78
The stock worth to you per share if you demand a 7% rate of return is $21.78
10. Define transfer pricing. Describe at least two methods of defending transfer prices if they are challenged by tax authorities. How are transfer prices used in managing multinational tax exposures
Answer:
Explanation:
(A) What is Transfer Pricing?
This is an accounting practice that sets prices for goods and services bought and sold between related entities.
(B) Two methods of defending transfer prices if they are challenged by tax authorities:
1. Treating the related or commonly controlled entities as if they are 2 independent entities.
2. Claiming that services rendered between the 2 related entities could not be priced.
(C) How are transfer prices used in managing multinational tax exposures?
- Transfer Prices help reduce import and export duties. They are used to manage multinational tax exposures by exporting or shipping the goods at a low transfer price, to subsidiaries or related entities in countries with high tariff rates.
- It reduces income taxes and corporate taxes in high tax countries, by overpricing goods that are sold/transferred to subsidiaries in countries with low tax rate.
Non-verbal communication influences the way a message is received and functions in at least five different ways. Read the following scenario, and identify the most appropriate form of non-verbal communication to use.
You are meeting with a new customer for the first time in person. This customer had a negative experience with one of your company’s competitors, and you want to communicate to the customer that you are honest and trustworthy.What form of non-verbal communication will serve you best?
A. Smiling
B.Standing far away
C. Sustained eye contact
Non-verbal communication sends powerful messages through body language and facial expressions. Our work space arrangement also sends nonverbal messages to others. In the following situation, consider what the intern is conveying non-verbally.
After preparing a project development agenda, the office manager prepares a conference room for the meeting. She places a circular table in the center of the room and surrounds it with comfortable chairs. What message is the office manager expressing non-verbally?
A. She wishes to promote open communication.
B. She wishes to discourage communication.
C. She wishes to set up a clear hierarchy.
Document appearance can have either positive or negative effects on how an audience receives a message.
In the following situation, consider what message is being conveyed non-verbally through document appearance.
Nathan is hiring a summer intern to assist him in launching a new marketing campaign. He opens a letter of introduction from one applicant and notices three misspellings in the first sentence. Additionally, Nathan notes that while the applicant seems to have the necessary experience, he has not formatted his letter of introduction in a professional manner. What message is the internship applicant expressing non-verbally?
A. He is very interested in the summer internship.
B. He is well qualified but too busy to be bothered with formatting.
C. He is not very professional and is not interested in the job.
Answer:
A. Smiling
A. She wishes to promote open communication.
C. He is not very professional and is not interested in the job.
Your answer
Explanation:
Non verbal communication is the transmission of information without the use of words.
Non verbal communication can be carried out through eye contact, facial expressions, physical appearance or settings, tone of voice and distance.
Smiling is an example of non verbal communication using facial expressions. It communicates friendliness and honesty.
By arranging the chairs in a certain manner, physical settings is the mode of non verbal communication used.
I hope my answer helps you
