Answer:
rises; decreases
Explanation:
When the Fed sells US securities, it is engaging in a contractionary monetary policy. This means that they are trying to cool down the economy and lower inflation rate by reducing the money supply. This will lead to an increase in the federal funds rate and the whole economy's interest rates.
Since the Fed absorbs money from the banks and other investors, the quantity of banks' reserves decreases, which leads to less loans and higher interest rates charged.
Consider the relative liquidity of the following assets:
a. The funds in a money market account
b. A $20 bill
c. A bond issued by a publicly traded company
d. Your car
Required:
Write down the assets in order of their liquidity, from most liquid to least liquid.
Answer:
1. A $20 bill
2. A bond issued by a publicly traded company
3. The funds in a money market account
4. Your car
Explanation:
Liquidity means that how easily an asset can be converted into cash.
1. Currency is the most liquid means of medium of exchange, so $20 bill is highly liquid asset.
2. A publicly traded bond can be converted into cash within a couple of days, so it is second most liquid asset.
3. The funds invested in the money market can be withdrawn within agreed period of time which can be in months or days so it can be at seconf or third most liquid asset.
4. A car can take more than a month to locate a customer to sell it at appropriate price so it is the least liquid asset.
2. It has been mentioned that Starbucks encourages its customers to use its mobile app. What type of information might the company gather from the app to help it better plan operations
Answer:
There are several things and strategies that the company can do from gathering different types of information in the app. Some examples are explained below.
Explanation:
To begin with, the company can extract personal information about the clients like the age and area of residence and those factors can help the organization's operations plan in many ways, like for example in knowing better which is the area where the most of the clients live or which is the average age of all the clients so in that case they will know which is their target audience and how to create marketing messages to stimulate them to go to the store or to buy more products, etc.
Another example could be the likes of the customers, by knowing which is the product that they order the most then the company can implement an strategy to try to sale the other products and so on with other variables.
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 350 units. Ending inventory at January 31 totals 150 units. Units Unit Cost Beginning inventory on January 1 320 $ 3.00 Purchase on January 9 80 3.20 Purchase on January 25 100 3.34 Required: Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method.
Answer:
494.00
Explanation:
The computation of the cost assigned to ending inventory using the FIFO method is shown below:
Particulars Units Unit Cost Amount
Purchase on January 9 50 3.20 160.00
Purchase on January 25 100 3.34 334.00
Cost of Ending Inventory 150.00 494.00
Since there are 150 units in the ending inventory so we take 50 units at $3.20 and the rest 100 units at 3.34 so that the cost assigned to the ending inventory could come
In the market for used cars we have 10 sellers, willing to sell at the prices of $1000, $2000, $3000, $4000, $5000, $6000, $7000, $8000, $9000, $10000. If the equilibrium price in the market is $2500, how many cars would be sold? a. 2 b. 4 c. 1 d. 3
Answer:
2
Explanation:
When the equilibrium price in the market is $2500 so here the number of cars that should be sold is 2.
Calculation of the number of cars:Since the equilibrium price in the market is $2500.
Also, we are capable to sell from the sellers that sells less than that price
So based on this, we can say that there are 2 sellers that satisfied the given criteria.
Hence, the option a is correct.
Learn more about equilibrium here: https://brainly.com/question/19271292
If he goes to college, he will spend $22,000 on tuition, $11,000 on room and board, and $1,700 on books. If he does not go to college, he will earn $12,000 working in a store and spend $6,000 on room and board. Taio's cost of going to college is
Answer:
$40,700
Explanation:
To determine Taio's cost of going to college you need to find the economic cost that involves all the costs that you need to cover to receive a benefit and the opportunity costs that refer to what you would have received if you had chosen a different alternative. According to this, Taio's cost is equal to all the acounting costs related to going to college plus the opportunity costs that are the benefits lost from the other option which was not going to college.
Accounting costs= $22,000+$11,000+$1,700= $34,700
Opportunity costs= $12,000-$6,000= $6,000
Taio's cost of going to college is equal to the acount costs plus the opportunity costs:
$34,700+$6,000= $40,700
Use the starting balance sheet, income statement, and the list of changes to answer the question. Gulf Shipping Company Balance Sheet As of December 31, 2019 (amounts in thousands) Cash 38,000 Liabilities 22,000 Other Assets 27,000 Equity 43,000 Total Assets 65,000 Total Liabilities & Equity 65,000 Gulf Shipping Company Income Statement January 1 to March 31, 2020 (amounts in thousands) Revenue 5,100 Expenses 2,800 Net Income 2,300 Between January 1 and March 31, 2020: 1. Cash decreases by $100,000 2. Other Assets do not change 3. Paid-In Capital does not change 4. Dividends paid of $400,000 What is the value for Liabilities on March 31, 2020?
Answer:
the value for Liabilities on March 31, 2020 is $22,000
Explanation:
Liabilities are current obligations of the entity that arose as a result of past events, the settlement of which will results in the outflow of cash from the entity.
To calculate the value for Liabilities on March 31, 2020, make adjustments to the liability balance that exists at the start of the year with movement that qualify as liabilities as defined above.
Opening balance as at 1 January 2020 = $22,000
Movements in liabilities = $0
Balance as at March 31, 2020 = $22,000
Conclusion :
The liabilities value on March 31, 2020 remains at $22,000
g A stock will issue a dividend of $20 one year from today. Dividends will shrink by 3% per year for the next two years after that, and then remain constant forever. Find the current price of one share of this stock, given an effective annual rate of 6%.
Answer:
Current price = $341.943
Explanation:
The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.
PV dividend in year 1 = 20 × 1.03^(-1)= 19.41747573
PV of dividend in year 2 = 97%× 20 × 1,03^(-2)= 18.28636064
PV of dividend in year 3 = 97%× 97%× 20× 1.03^(-3) = 17.22113575
PV of dividend from year 4 and beyond
This will be done in two steps
PV (in year 3 terms
(97%× 97%× 20× 1.03^(-3))/0.06 =313.6333333
PV in year o terms
PV = A/r
A= 313.63, r = 6%
313.63× 1.03^(-3)= 287.0189291
Price of stock = 19.41 +18.28 + 17.221 + 17.221= 341.943
Current price = $341.943
Notifies the materials manager to send materials to a production department. 2. Holds indirect costs until assigned to production. 3. Hold production costs until products are transferred from production to finished goods (or another department). 4. Standardizes partially completed units into equivalent completed units. 5. Holds costs of finished products until sold to customers. 6. Describes the activity and output of a production department for a period. 7. Holds costs of materials until they are used in production or as factory overhead.
Answer:
1. Notifies the materials manager to send materials to a production department--- material requisition
2. Holds indirect costs until assigned to production--- factory overhead account
3. Hold production costs until products are transferred from production to finished goods (or another department)--- goods in process inventory account
4. Standardizes partially completed units into equivalent completed units--- equivalent units of production
5. Holds costs of finished products until sold to customers--- finished goods inventory account
6. Describes the activity and output of a production department for a period--- process cost summary
7. Holds costs of materials until they are used in production or as factory overhead--- raw material inventory account
Explanation:
The complete question requires that we match the above to the options below
a. process cost summary
b. equivalent units of production
c. goods in process inventory account
d. raw material inventory account
e. material requisition
f. finished goods inventory account
g. factory overhead account
On October 1, Oriole Corporation’s stockholders’ equity is as follows.
Common stock, $7 par value $535,500
Paid-in capital in excess of par—common stock 30,000
Retained earnings 167,000
Total stockholders’ equity $732,500
On October 1, Oriole declares and distributes a 10% stock dividend when the market price of the stock is $14 per share.
Required:
a. Compute the par value per share (1) before the stock dividend and (2) after the stock dividend.
b. Indicate the balances in the three stockholders? equity accounts after the stock dividend shares have been distributed.
Answer:
a. Compute the par value per share (1) before the stock dividend and (2) after the stock dividend.
1) $7 per stock2) $7 per stockb. Indicate the balances in the three stockholders? equity accounts after the stock dividend shares have been distributed.
Common stock $589,050Paid-in capital in excess of par - common stock $83,550Retained earnings $625,400Explanation:
since it is a "small" stock dividend, it will be carried out at market value and not at par value.
the total number of stocks = $535,500 / $7 par value = 76,500 stocks
total transaction = 76,500 stocks x $14 x 10% = $107,100
the journal entry should be:
Dr Retained earnings 107,000
Cr Common stock 53,550
Cr Paid in capital in excess of par value 53,550
total common stock account = $535,500 + $53,550 = $589,050 / 84,150 stocks = $7 per stock
On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $51,000. The cab has an expected salvage value of $12,000. The company estimates that the cab will be driven 200,000 miles over its life. It uses the units-of-production method to determine depreciation expense. The cab was driven 60,000 miles the first year and 63,000 the second year. What is the amount of depreciation expense reported on the Year 2 income statement and the book value of the taxi at the end of Year 2, respectively
Answer:
The amount of depreciation expense reported on the Year 2 is $12,285 and the book value of the taxi at the end of Year 2 is $27,015
Explanation:
In order to calculate the amount of depreciation expense reported on the Year 2 income statement and the book value of the taxi at the end of Year 2, respectively we would have to make the following calculations:
Particulars Amount
Cost of taxi $51,000.00
Salvage Value $12,000.00
Life in miles 200,000.00
Depreciation per mile = ($51,000.00 - $12,000.00 )/200,000=0.195
Depreciation for Year 1 = 60,000 * 0.195=11,700.00
Depreciation for Year 2 = 63,000 * 0.195=12,285.00
book value of the taxi, respectively, at the end of Year 2 = 51,000 - 11,700 - 12,285=27,015.00
The amount of depreciation expense reported on the Year 2 is $12,285 and the book value of the taxi at the end of Year 2 is $27,015
Bev is opening her own court-reporting business. She financed the business by withdrawing money from her personal savings account. When she closed the account, the bank representative mentioned that she would have earned $300 in interest next year. If Bev hadn't opened her own business, she would have earned a salary of $25,000. In her first year, Bev's revenues were $30,000, and she spent $1,000 on materials and supplies. Which of the following statements is correct?a) Bev's total explicit costs are $25,300.
b) Bev's total implicit costs are $300.
c) Bev's accounting profits exceed her economic profits by $300.
d) Bev's economic profit is $4,700.
Answer:
Bev's total explicit costs are $1000
Bev's total implicit costs are $25,300
Bev's accounting profits exceed her economic profits by $25,300
Bev's economic profit is $3,700.
Explanation:
Accounting profit is total revenue less total explicit cost.
Explicit cost is actual cost incurred.
Accounting profit = Total revenue - Total explicit cost
Total explicit cost = $1,000
Total revenue = $30,000
Accounting profit = $30,000 - 1,000 = $29,000
Economic profit is accounting profit less implicit cost or opportunity cost.
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Implicit cost = $300 + $25,000 = $25,300
Economic profit = $29,000 - $25,300 = $3,700
I hope my answer helps you
The preliminary 20 21 income statement of Alexion Systems, Inc., is presented below: ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2021 ($ in millions, except earnings per share) Revenues and gains: Sales revenue 437 Interest revenue 5Other income 127Total revenues and pains Expenses: 569 Cost of goods sold 246Selling and administrative expense 151Income tax expense 43 Total expenses 440Net Income 129Earnings per share 12.90Additional Information: 1. Selling and administrative expense includes $27 million in restructuring costs. 2. Included in other income is $120 million in income from a discontinued operation. This consists of $90 million in operating income and a $30 million gain on disposal. The remaining $7 million is from the gain on sale of investments 3. Cost of goods sold was increased by $10 million to correct an error in the calculation of 2020's ending inventory. The amount is material Required: Prepare a revised income statement for 2021 reflecting the additional facts.
Answer:
Alexion Systems, Inc.
Income Statement
For the Year Ended December 31, 2021
(in $ millions)
Sales revenue $437
Cost of goods sold ($256)
Gross profit $181
Operating expenses:
S&A expense ($124)Restructuring costs ($27)Income from continuing operations b/ Taxes $30
Income tax expense ($7,5)
Income from continuing operations $22.5
Other revenues and expenses:
Interest revenue $5Gain on sale of investments $7Income tax for other revenues ($3)Other revenues and expenses $9
Discontinued operations:
Operating income $90Gain on disposal $30Income tax on discontinued operations ($30)Income from discontinued operations $90
Net income $121.50
Earnings per share $12.15
Explanation:
I assumed income tax rate = 25% (I divided $43 / $172)
Paul Sabin organized Sabin Electronics 10 years ago to produceand sell several electronic devices on which he had securedpatents. Although the company has been fairly profitable, it is nowexperiencing a severe cash shortage. For this reason, it isrequesting a $620,000 long-term loan from Gulfport State Bank,$160,000 of which will be used to bolster the Cash account and$460,000 of which will be used to modernize equipment. The company's financial statements for the two most recent years follow:
Sabin Electronics
Comparative Balance Sheet
This Year Last Year
Assets
Current assets:
Cash $ 118,000 $ 270,000
Marketable securities 0 30,000
Accounts receivable, net 633,000 420,000
Inventory 1,065,000 715,000
Prepaidexpenses 30,000 34,000
Total currentassets 1,846,000 1,469,000
Plant and equipment,net 1,969,200 1,490,000
Total assets $ 3,815,200 $ 2,959,000
Liabilitiesand Stockholders Equity
Liabilities:
Currentliabilities $ 820,000 $ 420,000
Bondspayable, 12% 850,000 850,000
Totalliabilities 1,670,000 1,270,000
Stockholders'equity:
Commonstock, $15 par 630,000 630,000
Retained earnings 1,515,200 1,059,000
Total stockholders equity 2,145,200 1,689,000
Total liabilitiesand equity $ 3,815,200 $ 2,959,000
Sabin Electronics
Comparative Income Statement and Reconciliation
This Year Last Year
Sales $ 5,600,000 $ 4,710,000
Cost of goodssold 3,995,000 3,570,000
Gross margin 1,605,000 1,140,000
Selling andadministrative expenses 677,000 572,000
Net operatingincome 928,000 568,000
Interestexpense 102,000 102,000
Net income beforetaxes 826,000 466,000
Income taxes(30%) 247,800 139,800
Net income 578,200 326,200
Commondividends 122,000 101,000
Net incomeretained 456,200 225,200
Beginning retainedearnings 1,059,000 833,800
Ending retainedearnings $ 1,515,200 $ 1,059,000
During the past year, the companyintroduced several new product lines and raised the selling priceson a number of old product lines in order to improve its profitmargin. The company also hired a new sales manager, who hasexpanded sales into several new territories. Sales terms are 2/10,n/30. All sales are on account.
e. The average sale period. (Theinventory at the beginning of last year totaled$620,000.)(Round your intermediate calculations and finalanswers to 1 decimal place. Use 365 days in a year.)
f. The operating cycle.(Round your intermediate calculations and final answer to 1decimal place.)
g. The total asset turnover. (The total assets at the beginning oflast year were $2,919,000.) (Round your answers to 2decimal places.)
h. The debt-to-equity ratio.(Round your answers to 3 decimal places.)
i. The times interest earned ratio.(Round your answers to 1 decimal place.)
j. The equity multiplier. (Thetotal stockholdersâ equity at the beginning of last year totaled$1,679,000.) (Round your answers to 2 decimalplaces.)
Answer:
e. The average sales period = (average balance inventory / COGS) x 365 days = {[($1,065,000 + $715,000)/2] / $3,995,000} x 365 days = 81.3 days
f. The operating cycle = average sales period + (average accounts receivable / total credit sales) x 365 days = 81.3 + {[($633,000 + $420,000)/2] / $5,600,000} x 365 days = 81.3 + 34.3 = 115.6 days
g. The total asset turnover = total sales / average assets = $5,600,000 / [($3,815,200 + $2,959,000)/2 = 1.66 times
h. The debt-to-equity ratio = total liabilities / total equity = $1,670,000 / $2,145,200 = 0.778 or 77.8%
i. The times interest earned ratio = EBIT / interest expense = $928,000 / $102,000 = 9.1
j. The equity multiplier = total assets / total equity = $3,815,200 / $2,145,200 = 1.78
Workers in the nation of Argenia prefer managers that forcefully tell employees what to do and how to do it. Conversely, employees in the U.S. prefer to participate in decision making in the workplace. This __________ difference between Argenian workers and U.S. workers represents a management challenge for firms trading in the global market.
Answer: sociocultural
Explanation:
The options for the question are:
a. geopolitical
b. economic
c. sociocultural
d. regulatory
Sociocultural is used to describe differences between groups of people which relate to the social class and the culture in which they live. The sociocultural environment of a business are the values and the customs that guide the practices of the business.
From the question, employees in Argenia prefer managers who forcefully tell employees what to do and how to do it while the employees in the United States like to participate in the decision making in the workplace. This shows that there are sociocultural differences between the two nations.
By law, the financial records of publicly held companies are required to be:________.
A) Managed by an accounting department of at least five CPAs.
B) Summarized in the employee manual for new hires.
C) Reviewed quarterly by the IRS.
D) Audited by a certified professional accounting firm.
Answer:
D) Audited by a certified professional accounting firm.
Explanation:
The Securities and Exchange Commission (SEC) requires that publicly traded corporations file audited quarterly financial reports and annual audited financial reports. The Sarbanes-Oxley Act (2002) is the law that established the current external auditing rules imposed by the SEC. It also established legal responsibilities for CEOs and CFOs regarding the financial statements. If they fail to meet them or provide false information, they may face criminal charges and end in jail.
Sam was injured in an accident, and the insurance company has offered him the choice of $25,000 per year for 15 years, with the first payment being made today, or a lump sum. If a fair return is 7.5%, how large must the lump sum be to leave him as well off financially as with the annuity
Answer:
The lump sum be of $237,228.84
Explanation:
In order to calculate how large must the lump sum be we would have to use and calculate the formula of Present value of annuity due as follows:
Present value of annuity due=(1+interest rate)*Annuity[1-(1+interest rate)^-time period]/rate
Present value of annuity due=(1+0.075)*$25,000[1-(1.075)^-15]/0.075
Present value of annuity due=$25,000*9.489153726
Present value of annuity due=$237,228.84(Approx)
The lump sum be of $237,228.84
Suppose the U.S. government cuts back on government spending and increases taxes in an effort to reduce the budget deficit. What would be the effect of these changes on the U.S. balance of payments?
a. There would be no change because the balance of payments always equals zero.
b. There would be an increase in the current account and an increase in the capital account.
c. There would be a decrease in the current account and a decrease in the capital account.
d. There would be a decrease in the current account and an increase in the capital account.
d. There would be an increase in the current account and a decrease in the capital account.
Answer:
d. There would be a decrease in the current account and an increase in the capital account.
Explanation:
The balance of payment in accounting typically comprises of capital account and current account, it is used for the recording of business transactions between two countries. Capital accounts are used to record any trade between two countries relating to financial assets and liabilities.
The current account is used to record trades relating to import and export of goods and services in a country.
Hence, if the U.S. government cuts back on government spending and increases taxes in an effort to reduce the budget deficit. The effect of these changes on the U.S. balance of payments is that there would be a decrease in the current account because it has no effect on the value of assets and liabilities, thereby affecting the export and import of goods and services.
Also, there would be an increase in the capital account due to the fact that the government tends to borrow more and seeks foreign investors.
According to the Marketing Concept, a. Companies produce only what customers want. b. A company should produce only basic products. c. Managements primary task is to convince buyers to purchase what we produce. d. Management’s most important task is to keep production costs low. e. ALL OF THE ABOVE. f. NONE OF THE ABOVE
Answer:
The answer is A
Explanation:
Companies should produce what customers want based on the marketing concept. Companies and customers are dependent on each other. Companies should focus on producing goods which consumers/customers want. These companies should think of what consumers want and the prices they would pay since it is the consumer that creates demand for goods and services that are produced by the company.
Therefore companies should produce only what consumers want else they would produce goods and services with little demand.
Consider two countries, Alpha and Beta. In Alpha, real GDP per capita is $6,000. In Beta, real GDP per capita is $9,000. Based on the economic growth model, what would you predict about the growth rates in real GDP per capita across these two countries
Answer:
The growth rate of real GDP per capita will be higher in Alpha than it is in Beta
Explanation:
If we are to based on the economic growth model, what I would predict about the growth rates in real GDP per capita across ALPA and BETA is that when both countries are been compared with one another The growth rate of real GDP per capita will be higher in Alpha than it is in Beta because the Alpha real GDP per capita is said to be $6,000 while Beta real GDP per capita is said to be $9,000 which means growth rate of real GDP per capita will be much more higher in Alpha than it is in Beta.
In calculating the probability of being alive at certain times in the future, the expert would most likely utilize the National Vital Statistics Report detailing the "number of people alive" out of 100,000 people for various demographic characteristics. True/False
Answer: True
Explanation:
The National Vital Statistics System is an inter-governmental system of sharing of data on vital statistics of the United States population. The National Vital Statistics System consist of the
Vital Statistics of the United States and the National Vital Statistics Report.
If an expert wants to calculate the probability of being alive at certain times in the future, such expert would most likely utilize the National Vital Statistics Report which details the "number of people alive" out of 100,000 people for various demographic characteristics. This is because the reports are accurate and can be easily accessible online.
Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $1,306,000 Preferred dividends $74,000 Shares of common stock outstanding 80,000 Market price per share of common stock $97.02 a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required. $ b. Determine the company's price-earnings ratio. Round to one decimal place.
Answer:
(a) The company's earnings per share on common stock is $ 15.40
(b) The company's price-earnings ratio is 6.3
Explanation:
Net income = $1,306,000
Preferred dividends = $74,000
Shares of common stock outstanding = 80,000 shares
Market price per share of common stock = $97.02
(a) Earnings per share = (Net income−Preference dividend ) ÷ Shares outstanding
= ($1,306,000−$74,000 ) ÷ 80,000 shares
= $1,232,000 ÷ 80,000 shares
= $ 15.4
(b) Price-Earnings ratio = Market price per share ÷ Earnings per share
= $97.02 ÷ $15.40 per share
= 6.3
The independent cases are listed below includes all balance sheet accounts related to operating activities: Net income Depreciation expense Accounts receivable increae 100,000 (200,000) (20,000) Case ACase B Case C $310,000 15,000 $420,000 40,000 150,000 80,000 (decrease) Inventory increase (decrease) Accounts payable increase (50,000) (50,000) 120,00070,000 60,000 (220,000) (40,000) 35,000 50,000 decrease) Accrued liabilities increase (decrease) Show the operating activities section of cash flows for each of the given cases (Amounts to be deducted should be indicated with a minus sign.) Case A Case B Case C Net Income Adjustments to Reconcile Net Income to net Cash provided by operating activities Depreciation Changes in Assets and Liabilities Accounts Receivable Inventory Accounts Payable Accrued Liabilities Net Cash Provided by OperatingActivities
Answer: Please see below
Explanation: The values from the question are scattered, but here is how they should appear
Case A Case B Case C
Net income $310,000 15,000 $420,000
Depreciation expense 40,000 150,000 80,000
Accounts receivable increase
(decrease 100,000 (200,000) (20,000)
Inventory increase (decrease) (50,000) 35,000 50,000
Accounts payable increase (50,000) 120,000 70,000
Accrued liabilities increase
(decrease) 60,000 (220,000) (40,000)
To calculate the operating activities section of cash flows for each of the given cases,
we use the Indirect method formula
Net cash flow from operating actvities = Net Income + Non-Cash Expenses – Increase in Working Capital
Net cash flow from operating actvities =Net Income +/- Changes in Assets & Liabilities + Non-Cash Expenses
Net cash flow from operating actvities = Net Income + Depreciation + Stock Based Compensation + Deferred Tax + Other Non Cash Items – Increase in Accounts Receivable – Increase in Inventory + Increase in Accounts Payable + Increase in Accrued Expenses + Increase in Deferred Revenue
Following the formulae above, we can determine what expense should be added or subtracted to give the operating activities of cash flow below as
Case A Case B Case C
Net Income $310,000 15,000 $420,000
Net Income Adjustments to Reconcile Net Income to net Cash provided by operating activities
Depreciation 40,000 150,000 80,000
Changes in Assets and Liabilities
Accounts Receivable - 100,000 200,000 20,000
Inventory 50,000 -35,000 - 50,000
Accounts Payable -50,000 120,000 70,000
Accrued Liabilities 60,000 - 220,000 -40,000
Net Cash Provided by Operating Activities
$310,000 $230,000 $500,000
From the following list of steps in the accounting cycle, identify what two steps are missing: Transactions are analyzed and recorded in the journal. An unadjusted trial balance is prepared. Adjustment data are assembled and analyzed. An optional end-of-period spreadsheet is prepared. Adjusting entries are journalized and posted to the ledger. An adjusted trial balance is prepared. Closing entries are journalized and posted to the ledger. A post-closing trial balance is prepared. Select the steps in the accounting cycle in their proper order in order and include the two missing steps.
Answer:
The Accounting Cycle refers to the process of recording and analyzing the transactions of a business into it's books so that proper financial statements may be recorded and used.
It happens in 10 steps which are;
1. Transactions are analyzed and recorded in the journal.
2. Transactions are posted to the ledger. ( Missing)
3. An unadjusted trial balance is prepared.
4. Adjustment data are assembled and analyzed.
5. An optional end-of-period spreadsheet (work sheet) is prepared.
6. Adjusting entries are journalized and posted to the ledger.
7. An adjusted trial balance is prepared.
8. Financial statements are prepared. (Missing)
9. Closing entries are journalized and posted to the ledger.
10. A post-closing trial balance is prepared.
Step 2
After posting transactions to their journals, the transactions go to the General ledger.
Step 8.
Using the details from the adjusted trial balance, the Financial Statements can then be prepared with the correct figures.
(1) From the case above, identify four factors within the general environment of Jessops Group Limited..
Answer:
The four factors within the general environment of Jess-ops Group Limited are macroeconomic factor, technological factor, regulatory factor, and social factor.
Explanation:
The general environment can be described as the larger environment in which the company operate.
The four factors within the general environment of Jess-ops Group Limited are macroeconomic factor, technological factor, regulatory factor, and social factor.
Note: These factors are explained in the attached file as there was a difficulty in submitting the explanation here.
The following data were provided by Rider, Inc, which produces a single product:
Units in beginning inventory 0
Units produced 5,000
Units sold 4,500
Variable costs per unit:
Manufacturing $10
Selling and administrative $4
Fixed costs in total:
Manufacturing $15,000
Selling and administrative $10,000
a. lower than the net operating income under variable costing.b. higher than the net operating income under variable costing.c. the relation between absorption costing and variable costing net operating incomes cannot be determined.d. the same as the net operating income under variable costing.
Answer:
The correct option is B, higher than the net operating income under variable costing
Explanation:
In calculating the net operating profit under variable costing, the fixed manufacturing cost of $15,000 is deducted as a whole in arriving at net profit.
However, under absorption costing method, only the goods sold are charged with their own portion of fixed manufacturing cost totaling $15,000
Fixed under variable costing method=$15,000
fixed cost under absorption costing method=$15,000/5,000*4500=$13500
Since fixed cost is lower under absorption costing method, net profit tends to be higher.
"Today's settlement price on a Chicago Mercantile Exchange (CME) yen futures contract is $0.8011/¥100. Your margin account currently has a balance of $2,000. The next three days' settlement prices are $0.8057/¥100, $0.7996/¥100, and $0.7985/¥100. (The contractual size of one CME yen contract is ¥12,500,000). If you have a short position in one futures contract, the changes in the margin account from daily marking-to-market will result in the balance of the margin account after the third day to be A. $2,325. B. $2,000. C. $3,425. D. $1,425."
Answer:
Explanation:
The solution to the above problem is shown in the attached picture below. It is because of the arrangement i had ti use pen and book. Thank you
In game theory, a Nash equilibrium occurs when: Group of answer choices Both players are incented to "cheat" to improve their positions Neither player can improve their position Nether player has a dominate strategy Two or more players collude on pricing
Answer:
Neither player can improve their position
Explanation:
Game theory is the method of modeling the strategic engagement of multiple players in a situation that involves rules and results.
Nash equilibrium is a term of game theory in which the optimum result of a game is one in which no participant has an incentive to diverge from his selective strategy after examining the selection of an opponent
Therefore according to the given situation, the second option is correct
Presented below is an aging schedule for Bryan Company. Number of Days Past Due Customer Total Not Yet Due 1-30 31-60 61-90 Over 90 Aneesh $ 24,000 $ 9,000 $15,000 Bird 30,000 $ 30,000 Cope 50,000 5,000 5,000 $40,000 DeSpears 38,000 $38,000 Others 120,000 72,000 35,000 13,000 $262,000 $107,000 $49,000 $28,000 $40,000 $38,000 Estimated percentage uncollectible 3% 7% 12% 24% 60% Total estimated bad debts $ 42,400 $ 3,210 $3,430 $3,360 $ 9,600 $22,800 At December 31, 2016, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $8,000.Journalize the adjusting of bad debit at December 31 2016.
Answer and Explanation:
The adjusting journal entry is shown below:
On Dec 2016
Bad debt expense Dr ($42,400 - $8,000) $34,400
To Allowance for doubtful debts $34,400
(Being the bad debt expense is recorded)
For recording this we debited the bad debt expense as it increased the expenses and credited the allowance for doubtful debts as it reduced the assets
General Discussion Questions What should business leaders take away from this scandal? What could Wells Fargo have done differently to avert this cultural meltdown? Practice of Ethical Leadership Questions Modeling Character and Values: What values did Stumpf model to Wells Fargo employees? What impact might that have on the culture of Wells Fargo? Encouraging Ethical Conduct: What behaviors can leaders model in order to encourage ethical behavior in their organization? Designing Ethical Systems: Wells Fargo did have some systems in place, like the ethics hotline, to report unethical behavior, but it didn’t work. Why do you think that is? What steps can leaders take to design systems that encourage ethical behavior rather than unethical behavior?
Answer:
From this scandal, business leaders should learn to:
(a) not encourage unethical practices directly or indirectly among employees.
(b) not set unrealistic targets for employees to achieve within an unrealistic time-frame.
(c) Institute measures to prevent unethical practices.
(d) Encourage honest employees to grow in the company.
(e) Honor adherence to regulatory framework as applicable to the company.
Wells Fargo could have done differently in these manner:
(a) When the first incident of aggressive sales practice was reported in year 2004 with identified incidents from year 2002, they could have instituted measures to prevent recurrence of such incidents. Some of the practical and workable measures are enumerated in succeeding paragraphs.
(b) Convene a meeting of senior managers to provide them with appropriate guidelines so as not to repeat such incidents.
(c) Instruct senior managers to advise their juniors to refrain from any such aggressive sales practices.
(d) Investigate to determine the extent of impact of aggressive sales practices as on 2004 and take remedial actions against those who are engaged in such activities.
(e) Promote the whistle-blower method of instantaneous reporting of an incident by anyone who has witnessed such an incident.
(f) Reward employees having honesty, integrity and moral values.
Practice of Ethical Leadership Questions
CEO John Stumpf’s model was to aggressively cross-sell products by any means. While leading the bank in doing so, he had compromised on the minimum value system that any financial institution or any company must adhere to. The cultural impact that had on Wells Fargo is listed below:
(a) Employees were pressurized for resorting to unethical practices.
(b) Employees reporting matters on unethical practices were punished.
(c) The performance management/ measurement system, in effect, encouraged dishonesty in employees.
(d) The compensation system was skewed in favor of bonus.
(e) Since, the supervisors pressurized employees, the structural dishonesty within the organization was evident.
Leaders can encourage ethical behavior in their organization in the following manner:
(a) Demonstrate personal ethics in their words and actions.
(b) Instruct senior managers to strictly adhere to the ethical norms to be followed.
(c) Instruct senior managers to communicate company’s ethical agenda to the supervisors/ other junior employees within their departments/ sections.(d) Monitor adherence to / violation of ethical practices on a regular basis.(e) Institute immediate remedial measures to prevent recurrence of any unethical practice.
(f) Encourage employees to report incidents of unethical practices.
(g) Reward honest and hardworking employees.
Well Fargo’s system of ensuring Ethical System within the bank, such as ethics hotline to report unethical behavior did not work because, the top management, led by the CEO did not pay any importance to prevention of unethical practices. Rather, they steered in an organized and structured manner to promote unethical practices.
Leaders can take the following steps to design systems that encourage ethical behavior:
(a) The top leaders must “think ethics”, “speak ethics” and “act ethics”. This is the top most fundamental step in the direction of designing systems to encourage ethical behavior.
(b) Matters on “what is ethical and what is not ethical” must be circulated across the organization.
(c) Periodic briefing must take place from the top management to the junior most employees in a structured and organized manner.
(d) Encouragement on reporting (whistle-blowing) incidents of unethical practices must be given.
(e) System of rewarding honest and hardworking employees must be put in place.
Alphonse Company manufactures staplers. The budgeted sales price is $ 12 per stapler, the variable costs are $ 3 per stapler, and budgeted fixed costs are $ 12 comma 000. What is the budgeted operating income for 4 comma 500 staplers?
Answer:
Operating income $28,500
Explanation:
The budgeted income is the difference between the budgeted sales revenue and budgeted costs
$
Budgeted revenue ( 12× 500) 54,000
Variable cost (3× 4500) (1,500)
Contribution 52500
Budgeted fixed cost (12,000)
operating income 28,500
Operating income $28,500
