Answer:
B. ignore any price increase and match any price decrease by a rival firm.
Explanation:
The kinked demand curve model is used by economists to provide information about the monopolistic and oligopolistic market.
Under oligopoly, the kinked demand curve shows that price aren't flexible for a long period of time. The kindred demand curve is associated with a demand curve that isn't a straight line but has varying elasticity for both lower and higher prices in the economic market.
Hence, organizations operating in an oligopolistic market ensure their market shares are maintained and well protected. Thus, an oligopolist would lower it's selling price if its competitors in the market lower their selling price. However, he or she ignores any price increase by his or her competitors.
The kinked demand curve model helps them to understand how to protect and expand their market share.
Introduction to the future value of money. Under the concepts of the time value of money, you can determine the future value of an amount invested today that will earn a given interest rate over a given amount of time. This technique can be used to calculate the future value of:
(1) a single receipt or payment made
(2) a series of receipts or payments.
Lexi and Luke are sitting together, with their notebooks and textbooks open, at a coffee shop. They've been reviewing the latest lecture from Dr. Thibodeaux's financial management class by asking each other questions Today's topic addressed the calculation of future values for both simple and compound interest-earning accounts. Complete the missing information in the conversation that follows. Round your final answer to all computations to two decimal places. However, if you compute any interest factors as an intermediate step in your calculations, round them to four decimal places.
Lexi So, why is it important to be able to calculate the future value of some amount invested?
Luke First, remember that the amount invested is usually called _______maturity payment and the amount earned during the investment period is called_________interest.It is important to be able to calculate a future value so that you can know in advance what a given amount of principal will be worth after earning a specified________ interest rate for a known_________
Lexi OK, I understand that, and I know the amount of principal invested today can be called the ________ value of the investment, whereas the amount realized after the passage of t period of time is called its _________ value. But what causes the present and future values to be different values?
Luke Two things cause the present and future values to be different amounts. First, the _________ earned during the investment period causes the future value to be greater than, equal to, or less than the present value. Second, the method used to calculate the interest earned-that is, whether the account pays ______________ interest-determines the________.
Answer:
Principal
interest
interest for a known period
present value
future value
interest
simple or compound interest
the amount by which the future value differs from the present value
Explanation:
The initial amount invested is known as the principal amount.
The increase over and above the principal invested is called interest.
The duration of the investment is the period which the interest is earned.
present value is the present worth of investment
future value is the future amount that the investment would worth after been invested for a known period
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 $27,015
The preliminary 20 21 income statement of Alexion Systems, Inc., is presented below: ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2021 ($ 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)
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.
You are going to set your budget for your utility (gas/water/sewer and electricity) expenses for the next year. You have recorded your utility expenses for the past year. That information is provided below. Evaluate and discuss whether the data collected was appropriate and representative of the information that is required to analyze the problem presented in the problem setting.Utilities Utilities Period Gas, Water, Sewer ElectricityMar, 2011 125.47 65.68Apr, 2011 70.89 61.5May, 2011 72.58 59.93Jun, 2011 80.91 72.17Jul, 2011 66.08 101.35Aug, 2011 84.58 118.04Sep, 2011 80.39 80.07Oct, 2011 88.12 60.76Nov, 2011 86.5 58.7Dec, 2011 130.06 70.22Jan, 2012 131.34 65.5Feb, 2012 121.2 67.71Mar, 2012 98.96 67.99
Answer:
Based on the data set given one cannot determine the next year's expenses for utilities and this is because the data set does not provide the information regarding the number of people that have consumed the utilities in the past and the per unit rate of consumption as well
Explanation:
Given data
Gaswater sewer electricityexpenses done for utilitymonth of usageTo identify the future expenses in utility the following data has to be considered :
The total expenses done in the past year for each facility, The total number of people consuming the utility to identify per person usage,The Past 2-3 years or even more utility rates per unit to identify the trend of inflation.Based on the data to be considered above the utility usage can be calculated using the following :
projected per unit rate of each utilitytotal number of people who will be consuming utilities in each monthThe projected future expenses for each utility can be gotten by combining the aboveBased on the data set given one cannot determine the next year's expenses for utilities and this is because the data set does not provide the information regarding the number of people that have consumed the utilities in the past and the per unit rate of consumption as well.
Business strategy focuses on:_______.
a. ensuring that the company maintains the existing market share that it has historically enjoyed.
b. improving the competitive position of a corporation's products or services within the industry or market segment served.
c. providing adequate shareholders' return on investment. preventing the competition from gaining a competitive edge by undermining their marketing plan.
d. recovering the competitive lead by using all available resources that the company can provide.
Answer:
b. improving the competitive position of a corporation's products or services within the industry or market segment served.
Explanation:
Business strategy is defined as various decisions and actions a business takes in order to reach its goals and stay competitive in the industry.
This guides the business on resource allocation.
Adjustments to business strategy is continous to tackle challenges a business faces in maintaining bits competitive advantage in the market.
So business strategy focuses on improving the competitive position of a corporation's products or services within the industry or market segment served.
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
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.
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
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.
The poverty rate would be substantially lower if the market value of in-kind transfers were added to family income. The largest in-kind transfer is Medicaid, the government health program for the poor. Suppose the program costs $10,000 per recipient family. True or False: If the government gave each recipient family a $10,000 check instead of enrolling them in the Medicaid program, most of these families likely would spend that amount of money on health insurance. True False True or False: This result suggests that we should value in-kind transfers at the price the government pays for them in determining the poverty rate. True False Because the benefit of Medicaid to its recipients is likely than its cost, it to give the poor cash transfers instead.
Answer: False; False; True.
Explanation:
a. False.
If the government gave every recipient family a $10,000 check rather than enrolling them in the Medicaid program, majority of the families would not spend the money on health insurance. The money will rather be spent on foods that the customer hasn't reached a satiation point in e.g foods, housing etc.
b. False.
We should determine poverty rate by valuing the in-kind transfers at the price which the family would have paid for the same amount of the good not taking into consideration of how the family spend the cash transfer.
c. True.
The poor would be better off in situations where they receive cash transfer rather than in-kind transfer. They could spend the cash on things apart from medical care. The poor value other things more than the health insurance and would be better off with the cash.
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
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
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.
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.
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
Here are the 2015 revenues for the Wendover Group Practice Association for four different budgets (in thousands of dollars):
Static Budget Flexible (Enrollment/ Utilization) Budget Flexible (Enrollment) Budget Actual Results
$425 $200 $180 $300
a. What do the budget data tell you about the nature of Wendover's patients: Are they capitated or fce-for-service?
b. Calculate and interpret the following variances: Revenue variance Volume variance Price variance Enrollment variance Utilization variance
Answer: The answer is provided below
Explanation:
a). The revenue here shows that
Wendover's patients were capitated. The is because the actual revenue figures were assumed to be $180, but it
later came to $300 which means that the revenue increased.
The reason is that a capitated patient provides fixed payment a year, while a fee for service client pays per usage. With this explanation, it can be concluded that majority of Wendover's patients are fee for service because the difference between static results and the actual results is very high.
) 1. Revenue variance
= Actual Revenues - Static budget
= $ 300 - $ 425
= - $125
2. Volume variance
= Flexible Revenue - Static Budget
= $ 200 - $ 425
= - $ 225
3. Price Variance
= Actual Revenues - Flexible Revenues
=$300 - $200
= $100
4. Enrollment variance
= Flexible Revenues - Static Budget
= $ 180 - $ 425
= - $ 245
5. Utilization variance
= Flexible Revenue- Flexible Budget
= $ 200 - $ 180
= $ 20
Answer:
Kindly check Explanation
Explanation:
The difference between capita tes and fee-for-service is how payment is made, In capitates, a fixed annual amount is paid whereby In fee-for-service, payment is made separately for each service demanded. Thus it could be concluded from the data they the patients are fee-for - service due to the difference in the static and actual figure provided.
Given the following :
Static Budget - $425
Flexible (Enrollment/ Utilization) -$200
Budget Flexible (Enrollment) Budget -$180
Actual Results - $300
B)
Revenue variance = (Actual Revenues - Static Revenue)
Revenue variance = ($300-$425) = -$125 (Unfavorable)
This shows that the Wendover have less patients who use the services.
Volume variance = (Flexible Revenues (enrollment and utilization) – Static Revenues)
Volume variance = ($200 – $425) = -$225
Price variance = (Actual Revenues – Flexible Revenue)
Price variance = ($300 - $200)
Price variance = $100 F
Price variance is favorable which means service charge is high.
Enrollment variance = (Flexible Revenues (enrollment) – Static Revenue)
Enrollment variance = $180 – $425 = -$245
Utilization variance =Flexible revenues (enrollment/utilization) - Budget Flexible (Enrollment) Budget
$200 - $180 = $20
"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
"An investor wishes to buy a new issue of U.S. Government agency bonds. You recommend that the customer purchase Federal Home Loan Bank bonds with a 20 year maturity. An investor who purchases the new issue of Federal Home Loan Bank bonds can expect to pay:"
Answer: A. Par
Explanation:
While US Government bonds are usually sold at auction which means a price different from Par, Federal Agency bonds operate much like Corporate Bonds in their selling procedure. They engage a group of Underwriters called a Selling group which can be made up of large banks and brokers.
These underwriters will then handle everything that have to do with the sale and sell it to the public. Like a Corporate listing, they get a commission from this.
Because of this direct sale by the Underwriter to the public, the Public is most likely to get the offering at Par.
Job order cost accounting for a service company The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during July: July 3. Charged 175 hours of professional (lawyer) time at a rate of $150 per hour to the Obsidian Co. breech of contract suit to prepare for the trial 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $12,500 14. Charged 260 hours of professional time for the Obsidian trial at a rate of $185 per hour 18. Received invoice from consultants Wadsley and Harden for $30,000 for expert testimony related to the Obsidian trial 27. Applied office overhead at a rate of $62 per professional hour charged to the Obsidian case 31. Paid administrative and support salaries of $28,500 for the month 31. Used office supplies for the month, $4,000 31. Paid professional salaries of $74,350 for the month 31. Billed Obsidian $172,500 for successful defense of the case a. Provide the journal entries for each of these transactions.b. How much office overhead is over or underapplied?
Answer:
Explanation:
the problem requires to be done in a tabular form so had to pen it down in other to understand better. The picture attached shows the whole solution
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
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.
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.
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.
Grouper Company issued $612,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable semiannually on July 1 and January 1. Grouper Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%.
Prepare the journal entries to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(a) The issuance of the bonds.
(b) The payment of interest and related amortization on July 1, 2020.
(c) The accrual of interest and the related amortization on December 31, 2020.
Answer:
Bond issue:
Dr cash $624,240.00
Cr bonds payable $612,000
Cr premium on bonds payable($624,240.00-$612,000) $ 12,240
On 30 June:
Dr Interest expense $30,495.68
Dr premium on bonds payable $104.32
Cr cash $30,600
On 31 December :
Dr interest $ 30,490.59
Dr premium on bonds payable($30,600-$30,490.59) $109.41
Cr interest payable $30,600
Explanation:
The cash proceeds from the bond issuance is 102% of the face value of $612,000 i.e $ 624,240.00 (102%*$612,000)
The interest payment on 30 June=$612,000*10%*6/12=$30,600.00
The interest expense on 30 June=$ 624,240.00*9.7705%*6/12=$30,495.68
amortization of premium=$30,600.00-$ 30,495.68=$104.32
Carrying value of bond at 30 June=$ 624,240.00+$30,495.68 -$30,600=$624,135.68
Interest expense on 31 December=$ 624,135.688*9.7705%*6/12=$30,490.59
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.
Maple Aircraft has issued a convertible bond at 4.75% interest due 2020. The market price of the convertible is 93% of face value (face value is $1,000). The conversion price is $45. Assume that the value of the bond in the absence of a conversion feature is about 63% of face value. How much is the convertible holder paying for the option to buy one share of common stock?
Answer:
The convertible holder paying for the option to buy one share of common stock is $13.63
Explanation:
According to the given data we have the following:
Value of convertible bond=93%*1,000=$930
Value of straight bond=63%*1,000=$630
Value of warrants=$300
Hence, number of warrants per bond=$1,000/$45
number of warrants per bond=22
Therefore, price of one warrant=$300/22
price of one warrant=$13.63
The convertible holder paying for the option to buy one share of common stock is $13.63
(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.
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
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
