Answer:
The amount of depreciation expense to be recognized during Year 4 is $7,350
Explanation:
In order to calculate the amount of depreciation expense to be recognized during Year 4 we would have to calculate first the Depreciation as per straight line method as follows:
Depreciation as per straight line method=(Cost-Residual value)/Useful life
=($35,000-$7,000)/5=$5,600
Hence, book value as on beginning of the fourth year=$35,000-($5,600*3)=$18,200
Hence, depreciation revised for the 2 remaining years=($18,200-$3,500)/2
=$7,350
The amount of depreciation expense to be recognized during Year 4 is $7,350
Which of the following is an expense of this period? Multiple Choice Costs of items paid for in this period but used up next period Repayment of debt from a loan in a prior period Cost of land purchased and paid for this period Costs of items used up this period but paid for next period
Answer: Costs of items used up this period but paid for next period
Explanation:
Period Expenses for the period are transactions that should be expensed because they were used in the current period.
Therefore if a period cost is not used in the period, it is not considered a period cost even if the company pays for it in the current period which also means that if a period cost for the period is not paid in the current period but in the next one, it is still a period cost for the current period.
From the above therefore, the period cost is the cost of items used up in this period but paid for in the next one.
The land purchased might look like the obvious choice but it is not because Assets are capitalised and not expensed.
The amount of increase or decrease in revenue that is expected from a particular course of action as compared with an alternative is termed: Group of answer choices manufacturing margin contribution margin differential cost differential revenue Flag this Question Question 21 pts Partridge Co. can further process Product J to produce Product D. Product J is currently selling for $21 per pound and costs $15.75 per pound to produce. Product D would sell for $37 per pound and would require an additional cost of $9.25 per pound to produce. What is the differential cost of producing Product D
Answer:
a) The amount of increase or decrease in revenue that is expected from a particular course of action as compared with an alternative is termed:
Differential Revenue
b) The Differential cost of producing Product D is the additional cost of $9.25 per pound.
Explanation:
a) Differential Revenue is the difference in sales revenue that results from two different courses of action.
b) The corporate finance institute defines Differential cost as "the difference between the cost of two alternative decisions."
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.
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
Larry Company makes and sells 2 models of dishwashers, Model ABC and Model XYZ. For every 2 Model ABC sold, 3 Model XYZ are sold. The following information is also provided: Model ABC Model XYZ Sales per unit $ 490 $ 730 Variable Cost per unit $250 $300 CM per unit $ 240 $ 430 What is the weighted average contribution margin?
Answer:
$354
Explanation:
The computation of the weighted average contribution margin is shown below:
= (Contribution margin per unit for Model ABC × Sales mix for model ABC) + (Contribution margin per unit for Model XYZ × Sales mix for model XYZ) ÷ (Sales mix for model ABC + Sales mix for model XYZ)
= ($240 × 2 models + $430 × 3 models) ÷ (2 models + 3 models)
= ($480 + $1,290) ÷ (5 models)
= $354
We simply applied the above formula
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
Cullumber Company issues $3.40 million, 20-year, 9% bonds at 98, with interest payable on December 31. The straight-line method is used to amortize bond discount. Collapse question part (a) Partially correct answer.
Prepare the journal entry to record the sale of these bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Entry field with correct answer
Answer:
Dr cash $3,332,000
Dr discount on bonds payable $68,000
Cr bonds payable $3,400,000
Explanation:
The cash proceeds from the bond issuance is 98% of the face value.
Cash proceeds=$3,400,000*98%=$3,332,000.00
This meant that the bond was issued at a discount of $ 68,000.00 ($3,400,000-$3,332,000).
In recording the bond issuance, the cash account is debited with the cash proceeds of $3,332,000 with the discount on bonds payable debited with $68,000 while bonds payable is credited with the face value of $3,400,000
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.
(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.
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash disbursements (excluding cash disbursements for loan principal and interest payments) for the first three months of next year. Cash Receipts Cash DisbursementsJanuary $525,000 $475,000 February 400,000 350,000 March 450,000 525,000
According to a credit agreement with the company’s bank, Kayak promises to have a minimum cash balance of $30,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at an annual interest rate of 12%, paid on the last day of each month. The interest is computed. based on the beginning balance of the loan for the month. The company repays loan principal with available cash on the last day of each month. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets for each of the first three months of next year
Answer:
Kayak Co.
Cash Budget
January February March
Cash inflows: $525,000 $400,000 $450,000
Cash outflows: ($475,000) ($350,000) ($525,000)
Monthly cash flow: $50,000 $50,000 ($75,000)
Monthly interests: ($600) ($106) $0
Initial cash balance: $30,000 $30,000 $69,294
Ending cash balance: $79,400 $79,894 ($5,706)
Required bank loan: $0 $0 $35,706
Payment of bank loan: ($49,400) ($10,600) $0
Total $30,000 $69,294 $30,000
Explanation:
Cash Receipts Cash Disbursements
January $525,000 $475,000
February $400,000 $350,000
March $450,000 $525,000
A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.
Ivanna, who has three children under age 13, worked full-time while her spouse, Sergio, was attending college for nine months during the year. Ivanna earned $28,000 and incurred $9,100 of child care expenses. Ivanna and Sergio's credit for child and dependent care expenses is?
Answer:
$1,260
Explanation:
Remember, we are dealing with a case of a married couple. Therefore, we apply the tax credit rule patterning to legally married couples.
Note that the rule is restricted to the lesser of
- real expenses,
- $6,000 (in this case they have three children which implies they have more than two qualifying children),
- the total earned income of the lowest taxpayer in the family.
Since the rule gives an exception for students. We could assumed that Sergio earned $500 for each month he was attending college. That is 9 * $500 = $4,500; the Credit = $4,500 * 28%= 1,260
Based on the period Sergio attended college and the relevant tax laws, Sergio's credit is $1,260.
When a person is going to college, they are assumed to make $500 per month. Sergio's earnings are therefore:
= 500 x 9 months
= $4,500
With a joint Adjusted Gross Income of $28,000 for the both of them, they can get a tax credit of 28% of their earnings.
As Sergio is assumed to have made $4,500, the tax credit is:
= 28% x 4,500
= $1,260
In conclusion, Sergio's credit is $1,260.
Find out more at https://brainly.com/question/18801773.
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
Suppose that the government spending multiplier is 3.2 and the tax multiplier is 2.9. This means that, if prices are constant, a $200 billion rise in government spending will __________________, and a $200 billion cut in taxes will _____________________.
Answer:
At constant prices, a $200 billion rise in government spending will increase Real GDP by 640 billion
and;
A $200 billion cut in taxes will increase real GDP by 580 billion
Explanation:
Government spending multiplier = 3.2
Tax multiplier = 2.9
Mathematically;
ΔY/ΔG = 3.2
ΔY/200 = 3.2
ΔY = 200 * 3.2
ΔY = 640 billion
Cut in taxes;
Tax multiplier = 2.9
ΔY/ΔT = 2.9
ΔY/200 = 2.9
ΔY = 2.9 * 200
ΔY = 580 billion
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.
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.
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
A decrease in operating expenses would have which of the following effects on a company's profit margin? Multiple Choice There is not enough information given to determine the effect. Net profit margin would increase. Net profit margin would decrease. Net profit margin would remain unchanged.
Answer: Net profit margin would increase.
Explanation:
A company's net profit margin is the Net Profit divided by Revenue. Net Profit is derived by subtracting some expenses and liabilities from the Revenue such as Cost of Goods as well as operating expenses.
If operating expenses were to reduce therefore, there would be less subtractions from the revenue. The would translate to a higher Net Profit and when that is then divided by the Revenue, it will give a higher Net Profit Margin.
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
A banking system has a reserve ratio equal to 15%. For every $100 deposited into the banking system, the bank is required to keep 2 at least ____________ on reserve and can therefore lend no more than _________ Instructions: Enter a whole number in each box above.
b. For this banking system, the money multiplier is equal to__________meaning that $100 of cash deposited into the banking system 4 points can be turned into ___________ deposits through the money creation process.
Answer:
A banking system has a reserve ratio equal to 15%. For every $100 deposited into the banking system, the bank is required to keep 2 at least ____$15________ on reserve and can therefore lend no more than ___$85______ Instructions: Enter a whole number in each box above.
b. For this banking system, the money multiplier is equal to_____6.67_____meaning that $100 of cash deposited into the banking system 4 points can be turned into ___$667________ deposits through the money creation process.
Explanation:
a) Reserve Ratio: This is the portion of deposit liabilities that commercial banks must keep, rather than lend out or invest as determined by the country's central bank. In the United States, the Federal Reserve determines the Reserve Ratio and uses it to control the money supply in the economy.
b) The Money Multiplier refers to the change that happens when an initial deposit leads to a bigger final increase in the total money supply. For example, a commercial bank has deposit liability of $1 million and this leads to a final money supply of $10 million. The money multiplier is 10. The formula for calculating the money multiplier is 1/RR, where RR is the Reserve Ratio. This means that the money multiplier is a function of the reserve ratio.
You have a portfolio that is invested 17 percent in Stock A, 38 percent in Stock B, and 45 percent in Stock C. The betas of the stocks are .62, 1.17, and 1.46, respectively. What is the beta of the portfolio
Answer:
The portfolio beta is 1.207
Explanation:
The portfolio beta is the weighted average of the individual stock betas that form up the portfolio. The weightage of each stock in the portfolio is calculated on the basis of investment in that stock as a proportion of total investment in the portfolio. The portfolio beta is calculated as follows,
Portfolio beta = Weight of Stock A * Beta of Stock A + Weight of Stock B * Beta of Stock B + ... + Weight of Stock N * Beta of Stock N
Portfolio beta = 0.17 * 0.62 + 0.38 * 1.17 + 0.45 * 1.46
Portfolio beta = 1.207
A company's beginning Work in Process inventory consisted of 21,500 units that were 20% complete with respect to direct labor. These beginning units were completed and another 92,400 units were started during the current period. Of those started, 61,500 were finished and the remaining 30,900 were 40% complete at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:
Answer:95,360 units.
Explanation:The equivalent unit of production shows the quantity of work done by a manufacturing company on units of output partially completed at the end of a period.
Equivalent units of production =Units completed(work n progress at beginning + finished goods)+Ending work in progess
=(21,500+61, 500)+(30,900×40%)
=83,000 + 12,360
=95,360 units.
The equivalent units of production for conversion is 95,000 units.
After observing the heavy snow that his town received the previous winter, Ajay Patel, an enterprising student, plans to offer a show-clearing service in his neighborhood this winter. If he invests in a new heavy-duty blower. Ajay forecasts a profit of $700 if snowfall this winter is heavy, a profit of $200 if it is moderate and a loss of $900 if it is light. As per the current weather forecasts, the probabilities of heavy, moderate and light snowfall this winter are 0.4, 0.3 and 0.3 respectively.
Rather than purchase a new blower, Ajay could get his father's blower repaired and just accept smaller jobs. Under this option, Ajay estimates profit of $350 for a heavy snowfall, and a loss of $150 for a light snowfall. Ajay, of course has the option of choosing neither of these options.
The local weather Adams, is Ajay's good friend. For $50, she is willing to run sophisticated computer weather models on her computer and tell Ajay whether she expects this winter to be cold. For the sake of solving this problem, assume that the following information is available. There is a 45% chance that Samantha will predict this winter to be unseasonably cold. If she does say this, the probabilities of heavy, moderate, and light snowfall are revised to 0.7, 0.25, and 0.05, respectively. On the other hand, if she predicts that this winter will not be unseasonably cold, these probabilities aye revised to 0.15, 0.33, and 0.52, respectively.
Draw the decision tree for the situation faced by Ajay. Fold back the tree and determine the strategy you would recommend he follow. What is the efficiency of Samantha's information?
"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.
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
According to this case study, what is an upcoming key technology that will be used in retail stores to improve customer service? And how it is currently being used? What will be the role of smartphones in the future of shopping? Support your claim with a reference.
Answer:
1. According to the case study (copy attached) "the upcoming technology that will be used in retail stores to improve customer service is the Scan As You Go Mobile Devices".
2. It is currently being used by sales officers in some shopping malls to scan items on the spot and let customers pay without going through the cash registers.
It is also being used to help customers take advantage of discounts and coupons on items being purchased. The effect is that customers spend 10% when they shop using this technology.
3. In the future, the customers will be able to check out using their smartphones.
4. According to the case study, the technology referred to in 3 above is already pioneered by Apple Stores.
Cheers!
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
Fleet Delivery Corporation is a public company with a market capitalization of less than $75 million. Fleet is poised to issue securities in a transaction that, under the Securities Act of 1933, is "exempt." This enables Fleet to ______________.
Answer:
This enables Fleet to reduce costs of regulatory compliance in relation to the security issue
Explanation:
When a company is exempt under the Securities Act of 1993,this implies that when issuing securities in the market place,the stock exchange ,the company is not required to produce audited financial statements.
Auditing financial statements sometimes cost fortunes especially when it is also required that one of the Big-4 professional firms is to be consulted.
By not requiring audited financials,the costs of audit is saved,hence cost of compliance with exchange rules is reduced overall
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.
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
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
