Answer and Explanation:
1. The computation is shown below:
As we know that employee taxes involved the social security tax, medicare tax and the income tax
Social security tax
= Gross pay × 6.2%
= $470,000 × 6.2%
= $29,140
Medicare tax
= Gross pay × 1.45%
= $470,000 × 1.45%
= $6,815
And,
Income tax withheld = $94,000
Now payroll taxes involved social security tax, Medicare tax, Federal unemployment tax, and state unemployment tax.
Social security tax
= Gross pay × 6.2%
= $470,000 × 6.2%
= $29,140
Medicare tax
= Gross pay × 1.45%
= $470,000 × 1.45%
= $6,815
Federal unemployment tax is
= Gross pay × 0.6%
= $470,000 × 0.6%
= $2,820
State unemployment tax
= Gross pay × 5.40%
= $470,000 × 5.40%
= $25,380
2. Now the journal entries are
On January, 2018
Salaries wages expense $470,000
To Withholding income tax payable $94,000
To Social security tax payable $29,140
To Medicare tax payable $6,815
to Salaries and wages payable $340,045
(being salaries and wages expense is recorded)
On Jan 2018
Payroll tax expense $64,155
To Social security tax payable $29,140
To Medicare tax payable $6,815
To Federal unemployment tax payable $2,820
To State unemployment tax payable $25,380
(being tax liabilities is recorded)
Which statement does not describe the Linux operating systems?
It is proprietary software.
Its code can be modified by users.
It was developed by Torvalds.
It is an open-source application
Answer:
c your correct
Explanation:
Explain using examples the three measures of measuring GDP
Answer: See explanation
Explanation:
The gross domestic product means the value in terms of money of the goods that a nation produces. The three measures of measuring the gross domestic product are:
1. Expenditure approach: This approach has to do with the addition of all the expenses that was incurred in a particular economy on the final goods and services. This can be calculated using C+I+G+(X-M)
where,
C = consumption.
I = investment
G = government expenditure
X = export
M = import
2. Income approach: This involves the addition of all the income that is earned in a particular country for the year. In this case, one will need to add the wages, salaries, interest, profit and rent.
3. Value added approach: This has to do with the addition of the value added which is down at every production level.
Carla Vista Company has the following information available for September 2020.
Unit selling price of video game consoles $410
Unit variable costs $328
Total fixed costs $36,900
Units sold 600
Compute the unit contribution margin.
Unit contribution margin enter the unit contribution margin
Prepare a CVP income statement that shows both total and per unit amounts.
Compute Carla Vista’ break-even point in units.
Break-even point in units enter Break-even point in units units
Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
Answer:
Carla Vista Company has the following information available for September 2020.
Unit selling price of video game consoles $410
Unit variable costs $328
Total fixed costs $36,900
Units sold 600
Compute the unit contribution margin.
Unit contribution margin enter the unit contribution margin
Prepare a CVP income statement that shows both total and per unit amounts.
Compute Carla Vista’ break-even point in units.
Break-even point in units enter Break-even point in units units
Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
You are negotiating a transaction on behalf of one of your clients, Blair Burke. During the negotiationyou become aware that the other party to the transaction does not adequately understand the tax consequences of the proposed transaction, which are highly favorable to Burke. In fact, if the transaction were completed as proposed, the other side would suffer significant negative tax consequences.
Required:
Ethically, should you inform the other party of the potential negative tax consequences of the proposed transaction?
Answer:
No
Explanation:
In this scenario, you are acting as a fiduciary to Blair Burke. This means that you have an obligation to Blair Burke and every decision that you make needs to be in his/her best interest. Therefore, you should not inform the other party about the negative tax consequences. That is a job for the other individual's representative or fiduciary to handle and advise their client. Informing the other party could jeopardize the deal and cost your client an opportunity/money which would go against their best interest.
It's & called
2. When one organism benefits while the other is not affected. It is
known as
This information relates to Ayayai Real Estate Agency.
Oct. 1 Stockholders invest $29,100 in exchange for common stock of the corporation.
2 Hires an administrative assistant at an annual salary of $30,000.
3 Buys office furniture for $3,610, on account.
6 Sells a house and lot for E. C. Roads; commissions due from Roads,
$10,000 (not paid by Roads at this time).
10 Receives cash of $130 as commission for acting as rental agent renting an
apartment.
27 Pays $600 on account for the office furniture purchased on October 3.
30 Pays the administrative assistant $2,500 in salary for October.
Prepare the debit-credit analysis for each transaction.
Answer:
Oct. 1
Dr Increase Assets
Dr Cash $29,100
Cr Increase stockholders'equity
Cr Common stock $29,100
Oct. 2
Dr No Effect
Dr No Effect $0
Cr No Effect
Cr No Effect $0
Oct. 3
Dr Increase Assets
Dr Office furniture $3,610
Cr Increase Liabilities
Cr Accounts payable $3,610
Oct. 6
Dr Increase Assets
Dr Accounts receivable $10,000
Cr Increase Revenues
Cr Service revenue $10,000
Oct. 10
Dr Increase Assets
Dr Cash $130
Cr Increase Revenues
Cr Service revenue $130
Oct. 27
Dr Decrease Liabilities
Dr Accounts payable $600
Cr Decrease Assets
Cr Cash $600
Oct. 30
Dr Increase Expenses
Dr Salaries and wages expense $2,500
Cr Decrease Assets
Cr Cash $2,500
Explanation:
Preparation of the debit-credit analysis for each transaction.
Oct. 1
Dr Increase Assets
Dr Cash $29,100
Cr Increase stockholders'equity
Cr Common stock $29,100
(Being To record common stock)
Oct. 2
Dr No Effect
Dr No Effect $0
Cr No Effect
Cr No Effect $0
Oct. 3
Dr Increase Assets
Dr Office furniture $3,610
Cr Increase Liabilities
Cr Accounts payable $3,610
( Being To record purchase of office furniture)
Oct. 6
Dr Increase Assets
Dr Accounts receivable $10,000
Cr Increase Revenues
Cr Service revenue $10,000
( Being To record service revenue)
Oct. 10
Dr Increase Assets
Dr Cash $130
Cr Increase Revenues
Cr Service revenue $130
(Being To record service revenue)
Oct. 27
Dr Decrease Liabilities
Dr Accounts payable $600
Cr Decrease Assets
Cr Cash $600
(Being To record payment of office furniture)
Oct. 30
Dr Increase Expenses
Dr Salaries and wages expense $2,500
Cr Decrease Assets
Cr Cash $2,500
(Being To record salaries expense)
A company has a contract with the president that it has just hired. According to the contract a one-time payment of $24,800,000 will be paid to the president when he completes his first 9 years of service. For this purpose, the company would like to set aside equal amounts of money, once each year, in order to cover this anticipated large expense. The company can earn 8 percent on these amounts of money. How much will it need to set aside each year
Answer:
$1,985,976.79
Explanation:
The formula for finding the amount is :
A = FV/ annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
FV = Future value = $24,800,000
A = Amount
R = interest rate = 8%
N = number of years = 9
Annuity factor = (1.08^9 - 1 ) / 0.08 = 12.487558
$24,800,000 / 12.487558 = $1,985,976.79
Cost of goods manufactured in a manufacturing company is analogous to
Consider the market for widgets. Widgets are produced in the United States, unless producers aren’t willing to meet the quantity demanded at a particular price. In that case, widgets are imported.
Suppose that the price with free trade is $7. If lawmakers want to ensure that U.S. widget producers can sell at least 8,000 widgets, what might they do?
Price
Quantity Demand
Quantity SuppliedDomestically
Quantity Imported
$6 13,000 2,000 8,000
$7 12,000 4,000 8,000
$8 11,000 6,000 5,000
$9 10,000 8,000 2,000
$10 9,000 9,000 0
$11 8,000 10,000 0
impose a tax on imported widgets
provide a subsidy for imported widgets
impose an import quota
Answer:
impose a tax on imported widgets - if the government imposes a tax on imported widgets, imported widgets will become more expensive to consumeres, making consumers flock to domestically produced widgets, prompting domestic firms to increase domestic supply to at least 8,000 widgets.
impose an import quota - the government can also simply impose an import quota of 4,000 widgets, which will oblige consumers to buy at least 8,000 domestic widgets if they want to satisfy their demand of 12,000 widgets.
Capp Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:
•
Sales are budgeted at $260,000 for November, $270,000 for December, and $250,000 for January.
•
Collections are expected to be 60% in the month of sale, 39% in the month following the sale, and 1% uncollectible.
• The cost of goods sold is 60% of sales.
•
The company desires an ending merchandise inventory equal to 40% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
• The November beginning balance in the accounts receivable account is $61,000.
• The November beginning balance in the accounts payable account is $248,000.
Required:
a.
Prepare a Schedule of Expected Cash Collections for November and December. (Omit the "$" sign in your response.)
November December
Sales
Schedule of Expected Cash Collection ---------------- -------------------
Accounts recievable -----------------
November Sales
December SALES ---------------
tOTAal Cash collection
b.
Prepare a Merchandise Purchases Budget for November and December. (Input all amounts as positive values. Omit the "$" sign in your response.)
November December
Budgeted cost of goods sold
deduct: Begining merchandise inventory
total needs
add: desired ending merchandise inventory
required purchase
Answer:
Sales are budgeted at $260,000 for November
After reviewing the rhetorical fallacies, can you think of a specific time when you heard a speaker employ one of these fallacies? Which fallacy did they use? Why should you avoid fallacies in your own speeches?
Answer:
they can be bad because they can / will confuse people especially the public
Assume you are the CEO of Black Diamond, a global organization. You need to assemble members for new project team that is based on a loosely structured product concept. As a result, the project itself is ambiguous without clearly defined goals or roles for members. You recognize that some people are more likely to be comfortable working on such an ambiguous project than others and that this might be related to national or cultural differences. In this case you might seek to put people on the project who are from a ___________________ country.
Answer:
culturally similar
Explanation:
In this case, you might seek to put people on the project who are from a culturally similar country. These types of countries share the same cultural backgrounds and therefore individual's from these countries usually have the same beliefs, ideas, habits, etc. This similarity allows these individuals to easily bond and work together easily. Ultimately, this would be the best option for a group project since it will drastically increase efficiency if the members are able to work together more fluently.
Each of the following is a characteristic of a defined benefit retirement plan EXCEPT: Question 3 options: The plan assigns the risk of pre-retirement inflation, investment performance, and adequacy of retirement income to the employee. The plan specifies the benefit an employee receives at retirement. The plan has less predictable costs as compared to defined contribution plans. The law specifies the maximum allowable benefit payable from the plan is equal to the lesser of 100% of salary or $230,000 (2020) per year currently
Answer:
Each of the following is a characteristic of a defined benefit retirement plan EXCEPT:
The plan assigns the risk of pre-retirement inflation, investment performance, and adequacy of retirement income to the employee.
Explanation:
No. With a defined benefit retirement plan, the risk of pre-retirement inflation, investment performance, and adequacy of retirement income is never assigned to the employee. Instead, the employer bears this risk. The defined benefit plan always specifies the benefit to which an employee is entitled to at retirement. It also demands that the employee must work for a certain defined period to be entitled to this benefit. By its nature, the defined benefit plan provides a fixed and pre-established benefit for employees. This is why it is preferred by employees.
Desert, Inc. has year-end account balances as of December 31, 2020 of Sales Revenue $907,000; Interest Revenue $24,000; Cost of Goods Sold $593,000; Administrative Expenses $188,000; Income Tax Expense $31,000; Dividends $18,000, Unrealized Pension Liability Adjustments of $21,500 (dr) and a correction of an error in recording Depreciation Expense for 2018 of $12,000 (dr).
To prepare the year-end closing entry required to close the Income Summary account, Desert would record a:_________
a. Debit to Net Income for $107.000.
b. Debit to Income Summary for $119,000
c. Debit to Retained Earnings for $89,000
d. Debit to Income Summary for $67,500
Answer:
Dr to income summary for $119,000
Explanation:
The year end closing entry to required to close the income entry would be ;
Sales revenue. Dr $907,000
Interest revenue Dr $24,000
Income summary Cr $931,000
Income summary Dr $812,000
Cost of goods sold Cr $593,000
Administrative expenses Cr $188,000
Income tax expense Cr $31,000
*Income summary Dr. $119,000
Retained earnings Cr $119,000
Retained earnings. Dr $18,000
Dividend Cr $18,000
Which of the following is NOT true of the African Continental Free Trade Area (AfCFTA)?
The oldest trade agreement still in use today
Combined GDP $3.4 trillion
The Largest free trade agreement per number of member countries
1.3 billion people across 55 countries
Answer:
no te entiendo porque estas hablando en ingles y yoben español jajajaja ok te lo suplico ok
The Garden Company began the accounting period with a $46,000 credit balance in its Accounts Payable account. During the accounting period, Garden Company incurred expenses on account of $125,000. The ending Accounts Payable balance was $65,000. Required Based on this information, determine the amount of cash outflow for expenses during the accounting period. (Hint: Use a T-account for Accounts Payable. Enter the debits and credits for the given events, and solve for the missing amount.)
Answer:
the cash outflow for expenses is $106,000
Explanation:
The computation of the cash outflow for expenses is shown below:
Beginning balance $46,000
add; expenses $125,000
less; ending balance -$65,000
Cash outflow for expenses $106,000
Hence, the cash outflow for expenses is $106,000
old Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales.
The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $330,000 of manufacturing overhead for an estimated activity level of $200,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows:
Raw materials $ 25,000
Work in process $ 10,000
Finished goods $ 40,000
During the year, the following transactions were completed:
Raw materials purchased on account, $275,000.
Raw materials used in production, $280,000 (materials costing $220,000 were charged directly to jobs; the remaining materials were indirect).
Costs for employee services were incurred as follows:
Direct labor $ 180,000
Indirect labor $ 72,000
Sales commissions $ 63,000
Administrative salaries $ 90,000
Rent for the year was $18,000 ($13,000 of this amount related to factory operations, and the remainder related to selling and administrative activities).
Utility costs incurred in the factory, $57,000.
Advertising costs incurred, $140,000.
Depreciation recorded on equipment, $100,000. ($88,000 of this amount related to equipment used in factory operations; the remaining $12,000 related to equipment used in selling and administrative activities.)
Manufacturing overhead cost was applied to jobs, $ ? .
Goods that had cost $675,000 to manufacture according to their job cost sheets were completed.
Sales for the year (all paid in cash) totaled $1,250,000. The total cost to manufacture these goods according to their job cost sheets was $700,000.
Required:
1. Prepare journal entries to record the transactions for the year.
2. Prepare T-accounts for each inventory account, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don’t forget to enter the beginning balances in your inventory accounts).
3A. Is Manufacturing Overhead underapplied or overapplied for the year?
3B. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.
4. Prepare an income statement for the year. (All of the information needed for the income statement is available in the journal entries and T-accounts you have prepared.)
Answer:
Req 1:
No Transaction General Journal Debit Credit
1 a. Raw materials 275,000
Accounts payable 275,000
2 b. Work in process 220,000
Manufacturing overhead 60,000
Raw materials 280,000
3 c. Work in process 180,000
Manufacturing overhead 72,000
Sales commisions expense 63,000
Admin salaries expense 90,000
Salaries and wages payable 405,000
4 d. Manufacturing overhead 13,000
Rent expense 5,000
Accounts payable 18,000
5 e. Manufacturing overhead 57,000
Accounts payable 57,000
6 f. Advertising expense 140,000
Accounts payable 140,000
7 g. Manufacturing overhead 88,000
Depreciation expense 12,000
Accumulated depreciation 100,000
8 h. Work in process 297,000
Manufacturing overhead 297,000
9 i. Finished goods 675,000
Work in process 675,000
10 j(1). Cash 1,250,000
Sales 1,250,000
11 j(2). Cost of goods sold 700,000
Finished goods 700,000
Req 2: Screenshot Attached
Req 3A:
Manufacturing Overhead is Overapplied
Req 3B:
Manufacturing Overhead 7,000
Cost of Goods Sold 7,000
Req 4: Screenshot Attached
For each of the following scenarios, please decide whether there will be an increase, decrease, or no change in aggregate demand.
a. The United States government decides to increase the federal tax rate by 4% for all earners.
b. The Federal Reserve, the agency charged with regulating banking and monetary policy in the United States, decides to increase the amount of money available in the economy.
c. The newest release of the Consumer Confidence Index shows a steady increase in consumer confidence about the economy.
d. A manufacturing boom during the late 1990s has created an oversupply of tractors, a necessary implement in agricultural production.
Answer:
a. Decrease
If the Federal government increases taxes on people, they will have less money to spend and save after paying their taxes. This will reduce their consumption and investment (savings) thereby leading to a lower aggregate demand.
b. Increase
An increase in the money supply means that people will have more money to spend on goods and services. They will therefore consume more. More money in the economy reduces interest rates so people will borrow to invest more as well. These two things will combine for an increase in aggregate demand.
c. Increase
If consumers are more confident about their economy, it means they find it safe to invest in it. As they invest, the investment component of aggregate demand would rise which would increase aggregate demand.
d. Decrease
The oversupply from recent years will mean that investment required in recent years will be less. This will lead to a lower aggregate demand.
According to the Bureau of Labor Statistics, there are about 3 million temp employees in the U.S. out of 150 million employees overall. What percentage of workers are temporary workers?
Answer:2%
Explanation:
Answer:2%
Explanation:
Click on the item below that contains a comma splice.
A. Martin Luther was born in Eisleben, Germany, about 110 kilometers from the church in Wittenberg where he nailed his ninety-five theses to the door.
B. Martin Luther was born in Eisleben, Germany; about 110 kilometers from there is Wittenberg, where he nailed his ninety-five theses to the door.
C. Martin Luther was born in Eisleben, Germany, about 110 kilometers from there is Wittenberg, where he nailed his ninety-five theses to the door.
Answer:
The item that contains a comma splice is:
C. Martin Luther was born in Eisleben, Germany, about 110 kilometers from there is Wittenberg, where he nailed his ninety-five theses to the door.
Explanation:
The comma splice occurred when two independent clauses are incorrectly joined by a comma instead of a semicolon or a full stop. To avoid this comma splice, the independent clause, "about 110 kilometers from there is Wittenberg," is identified. We can either put a semicolon after Germany or a full stop. Putting a full stop separates the sentence into two.
Your division has been asked to compile a recommendation for the price point for an innovative software application. You need to know how much customers will be willing to pay and under what circumstances. Conduct a scientific experiment. Access traditional sources and electronic sources. Conduct primary research for firsthand information. Routine tasks often require informal research methods.
Answer:
:Conduct a Scientific experiment
Explanation:
From the question, we are given an instance, whereby Your division has been asked to compile a recommendation for the price point for an innovative software application. You need to know how much customers will be willing to pay and under what circumstances. In this case you need to
Conduct a scientific experiment. An experiment can be regarded as
a procedure that is been carried out so that an hypothesis can be validated or refuted. It gives an insight about cause-and-effect so that the outcomes can be known if some of the favors in the experiment is manipulated.
Which benefit of market research does this example convey?
Jennifer works as a marketing manager for her company. Over the last year, she and her staff conducted many telephone and focus group
surveys, as well as interviews, to collect market research data from the company's existing customers. In the process, the research team
interacted with many customers and established a good rapport with them. This helped the business reap the benefits of
Answer:
customer loyalty
Explanation:
Customer loyalty: Through market research, a business communicates with its consumers. Consumers can give opinions and express grievances through the market research process. Such interaction can help a business establish a strong rapport with its consumers, which leads to customer loyalty.
Answer:
Costumer Loyalty
Explanation:
I took this exact test:
Type the correct answer in the box. Spell all words correctly.
Which benefit of market research does this example convey?
Jennifer works as a marketing manager for her company. Over the last year, she and her staff conducted many telephone and focus group surveys, as well as interviews, to collect market research data from the company’s existing customers. In the process, the research team interacted with many customers and established a good rapport with them. This helped the business reap the benefits of BLANK
Suppose that when the price of gasoline is $3.50 per gallon, the total amount of gasoline purchased in the United States is 6 million barrels per day. Also, suppose that when the price of gas decreases to $3 per gallon, the total amount of gasoline purchased is 8 million barrels per day. Based on these numbers and using the midpoint formula, the price elasticity of demand for gasoline is:
By definition, the price elasticity of demand for gasoline is -2.33.
Price elasticity of demandThe price elasticity of demand is a measure used to show the responsiveness, or elasticity, of the quantity demanded of a good or service to changes in the price of that good or service.
That is, the price elasticity of demand indicates to what extent changes in price alter the demand for specific products or services.
The price elasticity of demand is calculated by dividing the percentage change in demand by the percentage change in price, resulting in the following expression:
[tex]Elasticity=\frac{percentage change in quantity demanded}{percentage change in price}[/tex]
[tex]Elasticity=\frac{\frac{deltaQ}{Q} }{\frac{deltaP}{P} }[/tex]
where:
deltaQ means the absolute change in quantities demanded.Q represents quantity.deltaP represents the absolute change in price.P represents the price.Price elasticity of demand for gasolineKnowing that:
When the price of gasoline is $3.50 per gallon, the total amount of gasoline purchased in the United States is 6 million barrels per day. When the price of gas decreases to $3 per gallon, the total amount of gasoline purchased is 8 million barrels per day.First, the percentage change in quantities is calculated as follows:
The absolute change in quantities deltaQ is obtained by first subtracting the final demand from the initial demand, that is (8 million – 6 million = 2 million)Now dividing this value by the initial demand, you obtain 2 million÷6 million=0.333, which, taken to a percentage value, finally shows that the percentage change in quantity demanded is 0.333×100%= 33.3%.Now the percentage change in price is determined as follows:
The absolute change in the deltaP price is obtained by subtracting the final price from the initial price, that is (3 – 3.5= -0.5).Now dividing this value by the initial price -0.5/3.5, we obtain -0.143, which, taken as a percentage value, shows that the percentage variation in the price is -0.143x100%= -14.3%.Finally, the price elasticity of demand is calculated as:
[tex]Elasticity=\frac{33.3}{-14.3}[/tex]
Solving:
Elasticity= -2.33
In summary, the price elasticity of demand for gasoline is -2.33.
Learn more about price elasticity of demand:
https://brainly.com/question/24903676
https://brainly.com/question/24904215
https://brainly.com/question/24384825
https://brainly.com/question/18314140
https://brainly.com/question/24961010
Round Hammer is comparing two different capital structures: An all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 180,000 shares of stock outstanding. Under Plan II, there would be 130,000 shares of stock outstanding and $1.925 million in debt outstanding. The interest rate on the debt is 8 percent, and there are no taxes. a. If EBIT is $400,000, what is the EPS for each plan
Answer:
Explanation:
Under Plan I, the EPS would be calculated as:
= EBIT / Shares of stock outstanding
= $400,000 / 180,000 shares
EPS = $2.22
Under Plan II, the EPS will be calculated as thus:
We should note that the EBIT in this case will be reduced by interest payment. This will be:
= $400000 - 8% (1.925 million)
= $400000 - 0.08($1,925,000)
= $400,000 - $154000
= $246,000
Then, the EPS for plan II will be calculated as:
EPS = $246,000 / 130,000 shares
EPS = $1.89
Write down the following scenarios as examples of elastic, inelastic, or unit elastic demand.
a. When Ruko, a device used to stream movies at home, increases prices by 39 %, total revenue decreases by 55 %.
b. When Cinema Supreme decreases ticket prices by 5 %, total revenue does not change.
c. When Bluebox, a DVD rental kiosk, increases its prices by 44 %, total revenue increases by 31 %.
Answer and Explanation:
The classification is as follows:
a. In the case when the quantity demanded is more than the price so it is a price elastic demand
b. In the case when the change in price of 1% lower than the change in quantity demanded so it is price inelastic demand
c. And, in the case where there is a change of 1% in a price that generated the 1% change in quantity demanded is unit elastic demand
You are given the following information concerning a noncallable, sinking fund debenture: Principal: $1,000 Coupon rate of interest: 7 percent Term to maturity: 15 years Sinking fund: 4 percent of outstanding bonds retired annually; the balance at maturity If you buy the bond today at its face amount and interest rates rise to 13 percent after two years have passed, what is your capital gain or loss
Answer:
Capital loss of $257.38
Explanation:
Use the following formula to calculate the capital gain or (loss).
Capital Gains / (Loss) = Current Price - Purchase price
As two year have been passed and we need to calculate the current price of the debenture using the following formula
Use the following formula to calculate the price of the bond
Price of the bond = [ C x ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Where
F = Face value = $1,000
C = Periodic coupon payment = 7% x $1,000 = $70
r = Periodic interest rate = 13%
n = Numbers of periods = 15 years - 2years = 13 years
Placing values in the formula
Price of the bond = [ $70 x ( 1 - ( 1 + 13% )^-13 ) / 13% ] + [ $1,000 / ( 1 + 13% )^13 ]
Price of the bond = $538.46 + $204.16 = $742.62
Purchase price = $1,000
Placing values in the capital gain or (loss) formula
Capital Gain / ( Loss ) = $742.62 - $1,000
Capital Gain / ( Loss ) = ($257.38)
what is financial ratio?
Answer:
financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization.
Explanation:
financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization.
Scenario
You are the marketing analyst for Better Beans Coffee Company, which has nine stores nationwide. The company wants to build two additional stores. Your executive team has decided that rather than expand to new markets, they want Better Beans to begin opening additional stores in existing markets. While this will create cannibalization in the short term, it will create marketing and operating efficiencies as more stores are opened in each city.
As a scrappy and growing startup, Better Beans does not yet have access to complex marketing analytics software. Fortunately, you are an expert at gathering market data from inside and outside the company and crunching accurate numbers with nothing more than an Excel spreadsheet.
You have been tasked with calculating the two best markets for opening an additional store. You have already calculated two things that allow you to estimate the net additional revenue in each market ueafter adding a second store:
Revenue for a second store in each market
The revenue lost from estimated cannibalization at the first store.
Important note: Due to the high investments already made in existing stores, management has specified that any market where cannibalization is 25% or more should be eliminated from consideration.
Ignoring cannibalization rates for now, what two markets have the highest net revenue increases when adding a second store?
A. Dallas and Portland
B. Los Angeles and Orlando
C. Chicago and Dallas
D. Orlando and Dallas
E. Los Angeles and Portland
What two markets should be chosen for a second store based on management's criteria that the cannibalization rate for the existing store should be less than 25%? Note: Cannibalization rates and net revenue increase amounts need to be considered when making this determination.
A. Los Angeles and Orlando
B. Atlanta and Houston
C. Atlanta and Portland
D. Los Angeles and Portland
E. Los Angeles and Houston
Existing Revenue Second store Cannibalization Revenue Net Revenue
Store Revenue Estimate Drop Due Increase for
Estimate to cannibalization Market(
Second
Store
Revenue
Cannibalization)
Los Angeles 4,050,000 $2,677,500 5% $202,500 2,475,000
Houston 1,950,000 1,522,500 5% 97,500 1,425,000
Orlando 2,800,000 2,175,000 25% 700,000 1,475,000
Atlanta 2,240,000 1,695,000 30% 720,000 975,000
Chicago 2,150,000 1,735,000 40% 860,000 875,000
San Diego 1,900,000 1,505,000 20% 380,000 1,125,000
Portland 1,500,000 1,050,000 20% 300,000 750,000
Dallas 2,450,000 1,702,500 45% 1,102,500 600,000
Boston 3,150,000 2,177,500 35% 1,102,500 1,075,000
Answer:
Better Beans Coffee Company
1. Two markets that have the highest net revenue increases when adding a second store are:
B. Los Angeles and Orlando
2. The two markets that should be choose for a second market are:
E. Los Angeles and Houston
Explanation:
a) Data and Calculations:
Existing Revenue Second Cannibalization Revenue Net Revenue Store Store Estimate Drop Due Increase from
Estimate Cannibali- Market
(Second Store
Revenue
Cannibalization)
Los Angeles 4,050,000 $2,677,500 5% $202,500 2,475,000
Houston 1,950,000 1,522,500 5% 97,500 1,425,000
Orlando 2,800,000 2,175,000 25% 700,000 1,475,000
Atlanta 2,240,000 1,695,000 30% 720,000 975,000
Chicago 2,150,000 1,735,000 40% 860,000 875,000
San Diego 1,900,000 1,505,000 20% 380,000 1,125,000
Portland 1,500,000 1,050,000 20% 300,000 750,000
Dallas 2,450,000 1,702,500 45% 1,102,500 600,000
Boston 3,150,000 2,177,500 35% 1,102,500 1,075,000
b) Cannibalization results from the reduction in sales revenue when a company introduces another similar product or store in an existing market. Before making decisions based on cannibalization, management should study the market dynamics and set measurable criteria for making the choice to go for cannibalization or preservation of an existing market. One of the best criteria for deciding on cannibalization is the net revenue from the second product or store after cannibalization.
Is anyone good at introduction to business?
Answer:
Yeah I'm good with business too
Explanation:
The legal system affects corporate America in which of the following ways?
A. It operates on the periphery and does not affect the core activities of doing business.
B. Its involvement is generally limited to forming corporations or partnerships, providing for investment capital, and drafting contracts with CEOs.
C. The legal system does not necessarily facilitate or stabilize commercial practice.
D. The legal system has moved closer to the core activities of conducting business and succeeding in a competitive environment.
Answer:
C. The legal system does not necessarily facilitate or stabilize commercial practice.
Explanation:
The government of the United States is a federal system in nature. It has a written system and a common law legal system. The "legal system" of American is based on the system of federalism or the decentralization system.
The legal system for America on the other hand is for interpreting and enforcing the law. Advance development in the political and legal system may increase the risk of the country. Thus the legal system of America does not facilitate or the stabilize any commercial practice in america.
