Answer: The answer is provided below
Explanation:
With overseas factories that continue to move to new locations with a lower labour costs, the monitoring and controlling working conditions becomes a challenge. Research has shown that companies do little to monitor human rights violations in the low-cost supply chain locations.
A scandal involving Apple was reported in 2014 at a manufacturing building in China. The building which was owned by Catcher Technology Co., manufactures metal iPad covers for iPhones. Some findings included hiring discrimination, locked safety exits, excessive work hours, and also unpaid overtime each month totalling about $290,000 in owed wages. The factory was reported to have been dumping its industrial fluids and waste into nearby rivers, and also not providing proper toxic equipment for the employees.
Human rights of these people saw n those area are being abused by having them exposed to pollution, which can lead to lung diseases.
Companies like Apple have said that they are continuing to monitor situations like this, and are fixing them, but we still hear cases of more wrongdoings, therefore you have to wonder how vital these issues truly are to the firms involved.
Since the middle of the 20th century, the international global business system has been shaped by global institutions. Countries have established these institutions to address the global issues that span their borders. The functions of these organizations have been established in international treaties. International businesses need to be aware of the functions of these organizations as they can have a profound impact on trade and commerce.
It is critical for businesses to understand which organizations do what. It is also extremely useful to understand when these organizations were created since each emerged in response to changes, crises, or developments in the global business system. Identify the order in which these organizations were created.
a. GATT
b. Bretton Woods Institutions: IMF and the World Bank
c. WTO
d. G20
e. UN
Answer:
The order in which these organizations were established, from first to last are,
1. Bretton Woods Institution: IMF and the Word Bank
2.United Nations
3. GATT
4. WTO
5. G20
Explanation:
The organizations mentioned above were created on the international forum, either to foster peace or economic growth among the nations involved. In the order in which they were created from first to last, we have;
1. Bretton Woods Institution: IMF and the World Bank- These were created on July 1944, by 43 countries in Bretton Woods, New Hampshire, United States. They were established to rebuild the economy of nations after the World Wars by encouraging cooperation among the economic drivers of these nations.
2. United Nations- This organization was created on 24th October 1945. Its aim is to enhance and promote International Peace through its policies.
3. General Agreement on Tariffs and Trade- This is a legal understanding among several nations with the intention of reducing to reasonable extent, and if possible eliminating trade barriers such as tariffs. It was established on 30th October, 1947.
4. World Trade Organization- It was established with the intention of regulating trade among nations. It was established on 1st January, 1995.
5. G20- Short for Government of 20, this is a meeting meant for both the leaders as well as the Central Bank governors of about 19 countries, along with the European Union. It was established on 20th September, 1999.
Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books:
1. Andrea invested $13,500 cash in the business.
2. Andrea contributed $20,000 of photography equipment to the business.
3. The company paid $2,100 cash for an insurance policy covering the next 24 months.
4. The company received $5,700 cash for services provided during January.
5. The company purchased $6,200 of office equipment on credit.
6. The company provided $2,750 of services to customers on account.
7. The company paid cash of $1,500 for monthly rent.
8. The company paid $3,100 on the office equipment purchased in transaction #5 above.
9. Paid $275 cash for January utilities.
Based on this information, the balance in the A. Apple, Capital account reported on the Statement of Owner's Equity at the end of the month would be:
A. $31,400.
B. $39,200.
C. $31,150.
D. $40,175.
E. $30,875.
Answer: D. $40,175
Explanation:
The balance in the Capital account reported on the Statement of Owner's Equity will include the Capital contributions of Andrea Apple to the business as well as the Net income from operations also known as Retained Earnings.
The Net Income for the month will be revenue less expenses.
Revenue
$5,700 cash and $2,750 on account for services provided in January.
Revenue is therefore,
= 5,700 + 2,750
= $8,450
Expenses
Expenses include the rent paid of $1,500 and the $275 paid for January Utilities.
= 1,500 + 275
= $1,775
Net Income = Revenue - Expenses
Net Income = 8,450 - 1,775
Net Income = $6,675
The Capital that Mr. Apple brought into the business refers to anything he contributed to the business whether in cash or otherwise.
The Capital therefore is,
- The $13,500 cash and the $20,000 worth of equipment.
The Capital Mr. Apple brought into the business is therefore,
= 13,500 + 20,000
= $33,500
The balance on the capital account will therefore be,
= Capital + Net Income
= 33,500 + 6,675
= $40,175
Option D. is correct.
Delta Corporation (a U.S. company) has several transactions with foreign entities. On December 2, 20X1, Delta bought items from foreign company at a price of 300,000 yen when the direct exchange rate was 1 yen = $1.17. Delta made payment to the foreign company on December 20, 20X1, when the exchange rate had changed to 1 yen = $1.21. The foreign exchange gain or loss reported by Delta from this transaction will be:
Answer:
$12,000 gain
Explanation:
From the above information given the yen has depreciated relative to the dollar amount between the date of the transaction and the date of payment.
The Amount of the gain will be:
Price = 300,000
Direct exchange rate( 1 yen )= $1.17
Change in exchange rate ( 1 yen)= $1.21
Hence:
($1.21x 300,000) – ($1.17x 300,000)
=$363,000-$351,000
=$12,000 gain
An annual insurance policy is paid in advance by a company. How will the company treat this initial payment and the subsequent expiration of a portion of the policy over time?
A. The initial payment will be recorded as an increase to a Prepaid Insurance account.
B. Over time, the expired portion of the policy must be removed from the asset account as it has been used up and is no longer considered an asset.
C. As a portion of the policy expires, the expired portion will be removed and transferred to an expense account.
D. This prepayment of the policy will initially be treated as an expense and over time, the expired portion will be treated as an asset.
Answer:
The question requires the answering party to pick all that apply as found in the attached.
A. The initial payment will be recorded as an increase to a Prepaid Insurance account.
B. Over time, the expired portion of the policy must be removed from the asset account as it has been used up and is no longer considered an asset.
C. As a portion of the policy expires, the expired portion will be removed and transferred to an expense account.
Explanation:
The initial payment will be recorded as increase to an asset account,prepaid insurance is a correct statement,pending when the insurance cost is cost,
Subsequently,the expired the portion of the prepayment would be removed from the account,hence point B is also correct.
Finally,when the expired portion is removed from prepaid insurance account,it is transferred to insurance expense account,point C is also on point.
Ratio proficiency McDougal Printing, Inc., had sales totaling $ 41 comma 000 comma 000 in fiscal year 2019. Some ratios for the company are listed below. Use this information to determine the dollar values of various income statement and balance sheet accounts as requested. Assume a 365-day year. Calculate values for the following: a. Gross profits b. Cost of goods sold c. Operating profits d. Operating expenses e. Earnings available for common stockholders f. Total assets g. Total common stock equity h. Accounts receivable McDougal Printing, Inc. Year Ended December 31, 2019 Sales $ 41 comma 000 comma 000 Gross profit margin 76% Operating profit margin 39% Net profit margin 7% Return on total assets 13.3% Return on common equity 24% Total asset turnover 1.9 Average collection period 64.3 days
Answer:
a) Gross Profit is $31,160,000
b) Cost of goods sold is $9,840,000
c) Operating profits is $15,990,000
d) Operating Expenses is $15,170,000
e) Earnings available to common stockholders is $2,870,000
f) Total assets is $21,581,947.37
g)Total common stock equity is $11,958,333.33
h) Accounts Receivable is $7,222,739.73
Explanation:
McDougal Printing, Inc.
Year Ended December 31, 2019
Sales = $ 41,000,000
Gross profit margin = 76%
Operating profit margin = 39%
Net profit margin = 7%
Return on total assets = 13.3%
Return on common equity = 24%
Total asset turnover = 1.9
Average collection period = 64.3 days
Calculation of the dollar values of various income statement and balance sheet accounts
a) Gross Profit = Sales × Gross Profit margin
= $41,000,000 × 76%
= $31,160,000
b) Cost of goods sold = Sales - Gross profit
= $41,000,000 - $31,160,000
= $9,840,000
c) Operating profits = Sales × Operating profit margin
= $41,000,000 × 39% = $15,990,000
d) Operating Expenses = Gross profit - Operating profit
= $31,160,000 - $15,990,000
= $15,170,000
e) Earnings available to common stockholders = Sales × Net profit margin
= $41,000,000 × 7%
= $2,870,000
f) Total assets = Sales ÷ Total asset turnover ratio
= $41,000,000 ÷ 1.9
= $21,581,947.37
g)Total common stock equity = Earnings available to common stockholders ÷ Return on common equity %
= $2,870,000 ÷ 24%
= $11,958,333.33
h) Accounts Receivable = (Sales ÷ 365 days) × Average collection period
= ($41,000,000 ÷ 365 days) × 64.3 days
= $7,222,739.73
Big data analytics programs (analyzing massive data sets to make decisions) use gigantic computing power to quantify trends that would be beyond the grasp of human observers. As this use of this quantitative analysis increases, do you think it may decrease the "humanity of production" in organizations? Why?
Answer:
It will not decrease the humanity of production.
Explanation:
Big data analytics is useful for unraveling hidden patterns and correlations. Big data analytics is sometimes linked to be a direct descendant of Frederick Winslow Taylor’s scientific management and recently it is the most recent iteration of the quantitative approach to management.
Big data is used in management in activities that includes humans or individuals therefore it will not reduce the humanity of production in organizations.
Global Commerce Corporation purchased trading debt investments for $114,000 on December 31, 2018. There is a decrease of $5,800 in the fair value of the trading debt investments by the end of the year 2019. Which of the following is the correct journal entry?
A. Trading Debt Investments 5,800
Unrealized Holding
Loss-Trading 5,800
B. Fair Value
Adjustment–Trading 5,800
Unrealized Holding
Loss-Trading 5,800
C. Unrealized Holding
Loss-Trading 5.800
Retained Earnings 5,800
D. Unrealized Holding
Loss-Trading 5,800
Fair Value
Adjustment–Trading 5,800
Answer:
The correct option is D,
Unrealized Holding Loss-Trading $5,800
Fair Value Adjustment–Trading $5,800
Explanation:
The decrease in fair value by $5,800 means that the investment has potentially lost $5,800 in value which is credited to fair value adjustment while the debit is posted to unrealized holding loss-trading account.
The loss cannot be realized in retained earnings since the loss is yet to be realized as the investment has not been sold for cash.
The realized loss or gain would be determined when investment is sold for cash.
True or False : A population refers to the entirety of a group.
Answer:
It is True.
Explanation:
A population may refer to an entire group of people, objects, events, hospital visits, or measurements.
Division A does not have excess capacity to produce Product XX. The division can sell Product XX for $10 per unit outside the company. Variable costs are $6 per unit. Division B wants to purchase Product XX from Division A to use in Product ZZ. The selling price of Product ZZ is $25 per unit and variable costs to finish the product after the transfer are $12 per unit. An outside supplier will sell Product XX for $12 per unit. What is the minimum transfer price for Division A
Answer:
Minimum transfer price = $10
Explanation:
The Division A is operating at full capacity, hence it has no excess capacity
This implies that it can not produce enough to meet both the internal demand (from Division B) and external buyers.
Hence, it implies that Division A can not accommodate the demands of the Division B at a price lower than the external price of $10. Any price lower than $10 would result into a loss in contribution.
To maximize and optimize the group profit
Minimum transfer price = External selling price at which Division A can sell product XX
Minimum transfer price = $10
Identify what type of unemployment each of the individuals faces. James is an architect who has been laid off owing to a slump in the demand for property. He feels he will have to wait until the economy picks up before he can get a new job. James is facing
Answer:
cyclical unemployment
Explanation:
The situation when the overall demand for goods and services cannot support full employment in an economy, it results in cyclical unemployment. It takes place during periods of slow economic growth.
In the given question,
as James will have to wait until the economy picks up before he can get a new job, he is facing cyclical unemployment.
Suppose initially, vertical portion of the supply curve intersects the demand curve on its downward portion. Graphically show the case where an increase in the interest rate paid on reserves does NOT lead to a change in the equilibrium fed funds rate.
Answer:
Kindly Check Explanation section
Explanation:
NB: Since, we are to show graphically and there is need to draw, kindly check the attached file for the graph that shows the case where an increase in the interest rate paid on reserves does NOT lead to a change in the equilibrium fed funds rate.
The concept of RESERVE is very important in accounting. The amount of money that is saved up from the normal profit of a business organization or company or a country which is being used for further efficient Production In the long run is known as RESERVE.
For a country, it is the central bank in such country that pays the interest with regards to reserves that are in excess.
It must be noted that as the rate of supply increases , the rate of at which the value of price is also reduces. Hence, when there is an increase in the interest rate paid on reserves the whole demand does not shoot up.
NB: The initial equilibrium is at E( the point at which D(A) and P(A) meets and an increase causes it to meet at the point D(B) and P(B).
Creative Computing sells a tablet computer called the Protab. The $740 sales price of a Protab Package includes the following: One Protab computer. A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. A coupon to purchase a Creative Probook e-book reader for $150, a price that represents a 50% discount from the regular Probook price of $300. It is expected that 20% of the discount coupons will be utilized. A coupon to purchase a one-year extended warranty for $70. Customers can buy the extended warranty for $70 at other times as well. Creative estimates that 40% of customers will purchase an extended warranty. Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the option to purchase an extended warranty, but estimates that if it did so, a Protab alone would sell for $720. All Protab sales are made in cash. Required: 1. & 2. Indicated below whether each item is a separate performance obligation and allocate the transaction price of 100,000 Protab Packages to the separate performance obligations in the contract. 3. Prepare a journal entry to record sales of 100,000 Protab Packages (ignore any sales of extended warranties).
Answer:
Explanation:
1. Package of $740 sales price includes :
Protab Computer - 1
Limited warranty for 6 month
Coupon to purchase e-book for $150 (represents 50% discount) expected 20% utilized
Coupon to purchase 1-year warranty for $70 regular price $70 expected 40% purchase
Protab Computer price alone is $720.
2.
Performance Stand along Percentage of the Allocation of total
Obligation selling price sum of the stand transactions price to
of the performance alone selling price each performance
obligation of the performance obligation.
obligation
Protab - $72000000 96% $71040000
tablet
Open to $3000000 4% $2960000
purchase
Probook
Option to
purchase $0 0 .00% -
extended
warranty
Total; $75,000,000 100.00% $74,000,000
Protab Selling Price = 100000 units × $720 = $72,000,000
Selling price of option to purchase probook = 100000 units × 20% utilisation * $150 = $3000000
Selling price of option to purchase extended warranty = ($70 -$70)×100000 units * 40% = $0
Total = $75,000,000
Percentage of Protab selling price of Total Selling Price = $72,000,000 /$75,000,000 = 96%
Percentage of Option to purchase Probook of Total Selling Price = $3,000,000 /$75,000,000 = 4%
Percentage of Option to purchase extended warranty of Total Selling Price = 0 .00%
Total Transaction Price = 100000 units × $740 = $74,000,000
Allocation of Total Transaction price to Protab = $74,000,000 * 96% = $71040000
Allocation of Total Transaction price to Option to purchase probook = $74,000,000 * 10% = $2960000
3.
Journal Entry
Account Title Debit Credit
Cash $74,000,000
Sales Revenue $71040000
Deffered Revenue - discount option $2960000
Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 108,000 shares of Silva Company directly from one of the founders for a price of $48 per share. Silva has 300,000 shares outstanding including the Daniels shares. On July 2, Year 1, Silva paid $292,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $971,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva
a. Provide the Ferguson Company journal entries for the transactions Involving its Investment In Sllva Company durlng Year 1 Year 1 Jan. 4 Year 1 July 2 Year 1 Dec. 31
b. Determine the December 31, Year 1, balance of Investment in Silva Company Stock
Answer:
a)
January 4, year 1, investment in Silva Company (36% of outstanding stocks)
Dr Investment in Silva Company 5,184,000
Cr Cash 5,184,000
July 2, year 1, distributed dividends ( $292,000 x 36%)
Dr Cash 104,400
Cr Investment in Silva Company 104,400
December 31, year 1, net income reported by Silva Company ($971,000 x 36%)
Dr Investment in Silva Company 349,560
Cr Revenue from investment in Silva Company 349,560
b)
Balance of Investment in Silva Company = $5,184,000 - $104,400 + $349,560 = $5,429,160
Explanation:
Since Ferguson exercises significant influence over Silva Company, they must record the investment using the equity method.
Twinte Cars, a California corporation, has internal corporate requirements that stipulate a three-year payroll document retention period. It enters into a contract with an international company that mandates a six-year payroll document retention requirement. How should Twinte Cars balance these requirements
Answer:
-The period for retention could be up to 8 years depending upon the circumstances.
-The benefits and records may be called to evidence
Explanation:
In this scenario Twinte cars needs to balance internal requirement of 3 year payroll document retention period and the contract if 6 year payroll retention with the international company. Usually foreign companies have a higher retention requirement.
A way out of this predicament will be to get a new retention period of 8 years. This will satisfy requirements of the international company.
Also Twinte cars can provide benefits and records from their internal 3 year payroll retention to the international company
The following information is related to Kingbird Company for 2017.
Retained earnings balance, January 1, 2017 $981,000
Sales Revenue 26,100,000
Cost of goods sold 16,100,000
Interest revenue 71,000
Selling and administrative expenses 4,710,000
Write-off of goodwill 821,000
Income taxes for 2017 1,254,000
Gain on the sale of investments 111,000
Loss due to flood damage 391,000
Loss on the disposition of the wholesale division (net of tax) 441,000
Loss on operations of the wholesale division (net of tax) 91,000
Dividends declared on common stock 251,000
Dividends declared on preferred stock 81,000
Kingbird Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Kingbird sold the wholesale operations to Rogers Company. During 2017, there were 490,000 shares of common stock outstanding all year.
Required:
Prepare the mutiple step income statement.
Answer:
Net income is $2,474,000
Retained earning for the year 2017 is $2,142,000
Retained earnings balance at December 31, 2017 is $3,123,000
Explanation:
A multi-step income statement is an income statement that shows gross profit and the detailed of each category of expenses and incomes to arrive at the net income of a company for a particular period.
This can be prepared as follows:
Kingbird Company
Mutiple step income statement
for the year ended December 31, 2017
Details $
Sales Revenue 26,100,000
Cost of goods sold (16,100,000)
Gross profit 10,000,000
Operating expenses:
Selling and administrative expenses (4,710,000)
Operating income 5,290,000
Other income (loss):
Gain on the sale of investments 111,000
Write-off of goodwill (821,000)
Loss due to flood damage (391,000)
Interest income:
Interest revenue 71,000
Income before tax 4,260,000
Income taxes for 2017 (1,254,000)
Income after tax 3,006,000
Extraordinary items:
Loss on wholesale div. disp. (net of tax) (441,000)
Loss on wholesale div. op. (net of tax) (91,000)
Net income 2,474,000
Preferred stock dividend (81,000)
Common stock dividend (251,000)
Retained earning for the year 2017 2,142,000
Retained earnings balance, Jan. 1, 2017 981,000
Retained earnings bal., Dec. 31, 2017 3,123,000
Charles Schwab Corporation is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions):
Investor Services Institutional Services
Revenues $3,016 $1,523
Income from operations 847 523
Depreciation 133 54
A. How does a brokerage company like Schwab define the "Investor Services" and "Institutional Services" segments? Use the Internet to develop your answer
The segment serves the retail customer, you and me. These are the brokerage, Internet, and mutual fund services used by individual investors. The segment includes the same services provided for financial institutions, such as banks, mutual fund managers, insurance companies, and pension plan administrators
B. Provide a specific example of a variable and fixed cost in the "Investor Services" segment.
Variable costs in the "Investor Services" segment include: Check all that apply.
Depreciation on brokerage office equipment, such as computers and computer networks
Depreciation on brokerage offices
Property taxes on brokerage offices
Commissions to brokers
Fees paid to exchanges for executing trades
Transaction fees incurred by Schwab mutual funds to purchase and sell shares
Fixed costs in the "Investor Services" segment include: Check all that apply.
Depreciation on brokerage office equipment, such as computers and computer networks
Commissions to brokers
Property taxes on brokerage offices
Depreciation on brokerage offices
Fees paid to exchanges for executing trades
Transaction fees incurred by Schwab mutual funds to purchase and sell shares
C. Estimate the contribution margin (in millions) for each segment, assuming depreciation represents the majority of fixed costs.
Investor Services Institutional Services
Estimated contribution margin $_____________ $________________
D. If Schwab decided to sell its "Institutional Services" accounts to another company, estimate how much operating income would decline (in millions). $___________
Answer: The answer is provided below
Explanation:
A. A brokerage company such as Schwab will define the "Investor Services" and the "Institutional Services" segments like this:
Investor services- This will be:
• Real brokerage and also banking services to the individual investors.
• Other retirement plan to the corporations.
Institutional services- This will be:
• Marketing support to the independent investment advisors.
• Trading tools to the independent investment advisors.
B. The variable costs in the "Investor Services" segment will include:
• Fees paid to exchanges for executing trades
• Transaction fees incurred by Schwab mutual funds to buy and sell shares
• Commissions to brokers.
The fixed costs in the "Investor Services" segment will include:
• Depreciation on brokerage offices.
• Depreciation on the brokerage office equipment, like computers and computer networks.
The explanation for C and D has been attached. For D, the operating income would decline by $577 million.
The law of diminishing marginal productivity states that:________.
a. As you expand output, your marginal productivity eventually increases
b. As you expand output, your marginal productivity eventually declines
c. As you expand output, the total product eventually increases
d. None of the above
2. What are economies of scale?
a. decreasing average costs as production increases
b. increasing average costs as production increases
c. increasing fixed costs as production increases
d. none of the above
3. What are economies of scope?
a. lower average costs when multiple different products are produced
b. higher average costs when multiple different products are produced
c. Constant average costs when multiple different products are produced
d. none of the above
Answer:
b. As you expand output, your marginal productivity eventually declines
a. decreasing average costs as production increases
a. lower average costs when multiple different products are produced
Explanation:
The law of diminishing marginal returns states that as more unit of variable factors of production are added to production, output would increase at first but after a period, it would increase at a negative rate.
Economies of scale is the reduction in cost thay accrue to firms as they increase production. For example, a supplier might give a firm a discount for buying in bulk.
Economies of scope states that average cost would fall as the production of similar products increases. For example, a fashion designer who makes women's clothings decides to make scarfs with the scraps of clothes left.
I hope my answer helps you
Alfred is saving up money for a down payment on a townhouse. He currently has $5016$ 5016, but knows he can get a loan at a lower interest rate if he can put down $5994$ 5994. If he invests the $5016$ 5016 in an account that earns 4.4%4.4% annually, compounded monthly, how long will it take Alfred to accumulate the $5994$ 5994? Round your answer to two decimal places, if necessary.
Answer:
It will take Alfred to accumulate the $5994 annually 4.1367 and monthly 4.0557
Explanation:
In order to calculate how long will it take Alfred to accumulate the $5994 we would have to use the following formula:
A=P(1+r/n)∧n*t
P=$5,016
A=$5994
r=4.4%
n=1 annually
n=12 monthly
Therefore, t annually would be as follows:
5,994=$5,016(1+(4.4%/100)/1)∧1*t
t=4.1367
Therefore, t monthly would be as follows:
5,994=$5,016(1+(4.4%/100)/12)∧12*t
t=4.0557
It will take Alfred to accumulate the $5994 annually 4.1367 and monthly 4.0557
Consider the market for iced coffee. Suppose that the price of an iced coffee falls from $4.25 to $3.50. Assuming that the point on the graph below corresponds to the initial price of $4.25, move the point to a new position on the curve to show the impact of this price change (holding everything else constant).
Answer:
The fall in the price of iced coffee from $4.25 to $3.50 will cause demand to grow.
Explanation:
This is because the market demand curve for any good is downward sloping: the higher the price, the lower the quantity demanded, and the lower the price, the higher the quantity demanded.
So this fall in price will move the equilibrium quantity (the point where supply and demand meet) to move to a point on the demand curve that is below the previous point.
A promise to make a gift for a charitable or educational purpose is unenforceable unless and until the institution to which to promise was made incurs obligations by relying on the promise. This exception is usually justified on the basis of either _____ or _____.
Answer:
This exception is usually justified on the basis of either promissory estoppel or public policy.
Explanation:
There are many Judicial devices and one of them is the Estoppel. In common law, there are legal systems which allow a court to use this device to prevent a person (corporate or individual) from making pronouncements or from defecting on their promise.
With regard to public policy, courts in recent cases have reached conclusions that pledges are legally enforceable regardless of whether or not the recipient of the promise has incurred liabilities based on the pledge, and that, the only way to ensure compliance with requirements of the law, a test of public policy is to ensure the promise is made good.
This thought holds true in Ohio where for example, a pledge has the same weight as a promissory note.
According to precedence established in Pennsylvania, any written promise can be enforced regardless of whether or not the pledger intends to be legally bound.
Cheers!
Suppose a relative has promised to give you $1,000 as a wedding gift the day you get engaged. Assuming a constant interest rate of 7%, consider the present and future values of this gift, depending on when you become engaged.
Complete the first row of the table by determining the value of the gift in one and two years if you become engaged today.
Present Value Value in One Year Value in Two Years
Date Received (Dollars) (Dollars) (Dollars)
Today 1,000.00 ? ?
In 1 year ? 1,000.00
In 2 years ? 1,000.00
Complete the first column of the table by computing the present value of the gift if you get engaged in one year or two years.
The present value of the gift is __________ if you get engaged in two years than it is if you get engaged in one year.
Answer:
a.
Future Value in One Year = $1,070.00
Future Value in Two Years = $1,144.90
b.
Present Value of amount received in 1 year = $934.58
Present Value of amount received in 2 years = $873.44
The present value of the gift is less/lower if you get engaged in two years than it is if you get engaged in one year.
Explanation:
These can be done as follows:
Present Value Value in One Year Value in Two Years
Date Received (Dollars) (Dollars) (Dollars)
Today 1,000.00 1,070.00 1,144.90
In 1 year 934.58 1,000.00
In 2 years 873.44 1,000.00
a. Complete the first row of the table by determining the value of the gift in one and two years if you become engaged today.
To do this, we use future value (FV) formula as follows:
Future Value = A * (1 + r)^n ........................................ (1)
Where;
A = Amount received to day = $1,000.00
r = interest rate = 7%, or 0.07
n = number of years
Using equation (1), we therefore have:
Future Value in One Year = 1,000.00 * (1 + 0.07)^1 = $1,070.00
Future Value in Two Years = 1,000.00 * (1 + 0.07)^2 = $1,144.90
b. Complete the first column of the table by computing the present value of the gift if you get engaged in one year or two years.
To do this, we use present value (PV) formula as follows:
Present Value = A / (1 + r)^n ........................................ (2)
Where;
A = Amount received in specified year = $1,000.00
r = interest rate = 7%, or 0.07
n = number of years
Using equation (2), we therefore have:
Present Value of amount received in 1 year = 1,000.00 / (1 + 0.07)^1 = $934.58
Present Value of amount received in 2 years = 1,000.00 / (1 + 0.07)^2 = $873.44
Since $873.44 is less/lower than $934.58, we therefore have:
The present value of the gift is less/lower if you get engaged in two years than it is if you get engaged in one year.
The correct statement will be that the present value of the wedding gift is $873.43 if you get engaged in two years, then it is $934.57 if you get engaged in one year when the future value is $1000.
The future value of wedding gifts will be $1070.00 and $1144.9 at the end of first and second year respectively. The computation for the values can be done by applying values to the formula.
Calculation of future value and present valueThe present value of the gift can be calculated as using the formula below, [tex]\rm Present\ Value= \dfrac{Future\ Value}{1+ Fixed\ Interest\ Rate}\\\\\\\\\rm Present\ Value= \dfrac{\$1000}{1.07}\\\\\\\rm Present\ Value= \$ 934.57[/tex]The present value for one year is 934.57 USD. Now for two years, [tex]\rm Present\ Value= \dfrac{\$934.57}{1.07}\\\\\rm Present\ Value= \$873.43[/tex]Now to calculate the future value when the present value is considered to be as $1000. We will use the formula below, [tex]\rm Future\ Value\ for\ One\ Year=Present\ Value\ +\ \dfrac{Present\ Value\ x\ Time\ x\ Interest\ Rate}{100}\\\\\\\rm Future\ Value\ for\ One\ Year= 1000\ +\ \dfrac{1000\ \rm x\ 1\ \rm x\ 7}{100}\\\\\\\rm Future\ Value= \$1070[/tex]For the end of two years, the future value will be, [tex]\rm Future\ Value= Present\ Value\ (1+\dfrac{Interest}{no.\ of\ Compoundings})^n^t\\\\\\\rm Future\ Value= 1000\ (1+\dfrac{0.07}{1})^1^ x\ ^2\\\\\rm Future\ Value= \$1144.9[/tex]Hence, the value of the gifts can be ascertained as per the calculations above.
Learn more about Future Values, here:
https://brainly.com/question/1759639
Ans:
5. Abena travelled 40% of the distance of her trip alone, went another 35 miles with Saralyn,
and then finished the last half of the journey alone. How many miles long was the journey?
Ans:
miles
6. The mean of the data set (9,5,7, 2, x} is twice the data set (8,x, 4,1,3}. What is (y - x)2?
Ans:
UGRC 120: Numeracy Skills
Page 5 of 8
Answer:
5) 350 miles
Explanation:
5)
40% + 35 miles = 50%
=> 50% - 40% = 35 miles = 10%
=> 100% = 35 * (100% / 10%) = 35 * 10 = 350 miles
The annual fixed costs for a plant are $100,000, and the variable costs are $140,000 at 70% utilization of available capacity, with net sales of $280,000. What is the breakeven point in units of production if the selling price per unit is $40
Answer:
With the production 5000 units the plant will achieve it's break even point
Explanation:
Solution
The break even points is the point in a business when the total revenue is exactly the same to the equal expenditure.
The formula is given below:
D' = Cy/(p-cy)
Here
D' =the demand at break even point
p = the selling price
cy= the variable costs per unit
Cy = the total fixed cost
Thus
The total cost of the plant = $100,000
The variable costs = $140,000
The net sales = $280,000
The selling price per unit = $40
The total no units sold per year is given as :
Annual sale (units) = Total sales/Sale per unit
Now,
By the method of substitution we have the following.
Annual sale (units) = $280,000/40
=7000 units/year
The formula for variable cost per unit cy is
cy = Cy/Annual sale (units)
Now,
We substitute in the above equation the value of Cy as $140,000 and annual sale as 7000 units/per year
cy = $140,000/7000
=$20 units
For the demand at break even point D', we have the following:
D' = Cy/(p-cy)
We We substitute in the above equation the value of Cy as $100,000 and p as $40/unit and cy as $20 /unit
D' = 100000/(40 -20)
=5000 units/year
In Appellia, it takes 10 units of resources to increase its output of sugar from 12 tons to 13 tons, but 11 units of resources to increase output from 13 tons to 14 tons, and 12 units of resources to increase output from 14 tons and 15 tons, and so on. The need for increasing resources is an example of:________.
a. comparative advantage.
b. diminishing returns to specialization.
c. absolute advantage.
d. mercantilism Porter's diamond model.
Answer:
b. diminishing returns to specialization.
Explanation:
Diminishing returns is also called diminishing productivity. It states that as additional unit of input is used in production it will get to a stage where more of input will be required to maintain output levels.
If the same level of input is used it will result in reduction in output over time.
This is exemplified in this secanrio where it takes 10 units of resources to increase its output of sugar from 12 tons to 13 tons, but 11 units of resources to increase output from 13 tons to 14 tons, and 12 units of resources to increase output from 14 tons and 15 tons.
It takes more input to increase output by 1 ton
a) Depreciation on the company's equipment for 2017 is computed to be $16,000.
b) The Prepaid Insurance account had a $9,000 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage. An analysis of the company’s insurance policies showed that $900 of unexpired insurance coverage remains.
c) The Office Supplies account had a $540 debit balance on December 31, 2016; and $2,680 of office supplies were purchased during the year. The December 31, 2017, physical count showed $637 of supplies available.
d) One-fourth of the work related to $11,000 of cash received in advance was performed this period.
e) The Prepaid Insurance account had a $5,100 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage. An analysis of insurance policies showed that $4,200 of coverage had expired.
f) Wage expenses of $5,000 have been incurred but are not paid as of December 31, 2017.
Prepare adjusting journal entries for the year ended (date of) December 31, 2017, for each of these separate situations.
Answer:
Adjusting Journal Entries:
a) Debit Depreciation Expense - Equipment $16,000
Credit Accumulated Depreciation - Equipment $16,000
To record depreciation charge for the year.
b) Debit Insurance Expense $8,100
Credit Insurance Prepaid $8,100
To record insurance expense for the year.
c) Debit Office Supplies Expense $2,583
Credit Office Supplies Account $2,583
To record office supplies used for the year.
d) Debit Deferred Revenue $2,750
Credit Service Revenue $2,750
To record revenue for work done this period.
e) Debit Insurance Expense $4,200
Credit Prepaid Insurance $4,200
To record insurance expense for the year.
f) Debit Wages Expense $5,000
Credit Wages Payable $5,000
To record unpaid wages as of December 31, 2017.
Explanation:
Adjusting journal entries are entries made in the journal to accrue expenses and revenue in line with the accrual concept and the matching principle of U.S. GAAP. The concept and principle require that expenses and revenue are matched in the period they were incurred and not when they were actually paid for or received.
A company’s trial balance included the following account balances: Accounts Payable $ 19,207 Accounts Receivable 81,336 Cash 73,324 Income Tax Payable 3,512 Inventory 25,816 Note Payable, due in two years 1,709 Equipment 54,128 Stockholders’ Equity 202,808 Supplies 5,512 Wages Payable 12,880 What is the amount of the current ratio? (Round your answer to 2 decimal places.)
Answer:
5.22
Explanation:
The formula for calculating the current ratio is as follows:
Current ratio = Current assets / Current liabilities .......... (1)
From the question, we have:
Current assets = Accounts Receivable + Cash + Inventory + Supplies = $81,336 + $73,324 + $25,816 + $5,512 = $185,988.
Note: Equipment is not a current asset but a fixed asset.
Current liabilities = Accounts Payable + Income Tax Payable + Wages Payable = $19,207 + $3,512 + $12,880 = $35,599.
Note: Note Payable, due in two years is not a current liability but a long term liability since it is not payable within one year.
Substituting the values into equation (1) we have:
Current ratio = $185,988 / $35,599 = 5.22
The current ratio of 5.22 indicates that the company more than enough current assets, 5.22 times, to pay of its current liabilities.
Consider the following data on U.S. GDP: Year Nominal GDP GDP Deflator (Billions of dollars) (Base year 2009) 2016 18,707 105.93 1996 8,073 73.18 The growth rate of nominal GDP between 1996 and 2016 was______, and the growth rate of the GDP deflator between 1996 and 2016 was:_______.
Answer:
Data on U.S. GDP
a) The growth rate of nominal GDP between 1996 and 2016 was 131.72%, calculated as follows:
= (2016 nominal GDP - 2009 nominal GDP) / 2009 nominal GDP x 100
= (18,707 - 8,073)/ 8,073 x 100
= 131.72%
b) The growth rate of the GDP deflator between 1996 and 2016 was 44.75%, calculated as follows:
= (2016 GDP deflator - 1996 GDP deflator)/ 1996 GDP deflator x 100
= (105.93 - 73.18)/73.18 x 100
= 44.75%
Explanation:
1. Data on U.S. GDP
Year Nominal GDP GDP Deflator (Billions of dollars) (Base year 2009)
2016 18,707 105.93
1996 8,073 73.18
2. According to wikipedia.com, "the GDP deflator (implicit price deflator) is a measure of the level of prices of all new, domestically produced, final goods and services in an economy in a year."
3. Nominal GDP is a way of assessing an economy's economic production. It includes the current prices of goods and services. The GDP measures the monetary value of goods and services produced in an economy within a given period.
4. Growth rate refers to the percentage change of a specific variable within a specific time period. It is calculated as the difference between the current year's variable and the base year's variable, divided by the base year's variable, and then multiplied by 100.
Indicate whether each of the following statements is true or faise Statement 1. The government can raise revenue by taxing the sellers without creating deadweight loss when the demand for the goods being taxed is perfectly inelastic 2. A tax that raises no revenue for the government cannot have any deadweight loss.
Answer and Explanation:
The indication of the following statement regarding true or false is
For Statement 1
This given statement is true as the demand is perfectly inelastic so there is no deadweight loss because quantity does not change or not have any impact
Therefore, in this case, the government only raise revenue but at the same time when there is an increase in elasticity so there is a change in deadweight loss
For Statement 2
This given statement is false as if no revenue is there, there will be deadweight loss
A jeweler can potentially use two inputs in her handcrafted jewelry: copper or bronze. She finds that when she minimizes her costs, she either uses copper or bronze but not both. This means that copper and bronze are perfect substitutes and that her isoquant curve is right-angled.
Answer: straight lines that are parallel to each other
Explanation: Q: A jeweler can potentially use two inputs in her handcrafted jewelry: copper or bronze. She finds that when she minimizes her costs, she either uses copper or bronze but not both. What must her isoquants look like?
An isoquant curve is defined as a line of equal or constant economic production on a graph, chart or map which describes all the combinations of inputs that produce the same level of output. If the jeweler either uses copper or bronze but not both, it means that the copper and bronze are perfect substitutes, that is, they are two inputs that can be substituted for each other at a constant rate and at the same time maintaining the same output level. Her isoquants would appear as straight lines that are parallel to each other because all that matters is the sum of the two variables (copper and bronze), and not their individual values.
Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call premium of $10,000. The bonds have a carrying value of $990,000. We call these bonds prior to maturity on September 30. Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down menus.
Answer and Explanation:
The journal entry is shown below;
Bond payable $1,000,000
Loss on retirement of bond $20,000
To Discount on bond $10,000
To Cash $1,010,000
(Being the loss on retirement of bond is recorded)
For recording this we debited the bond payable and loss as it decrease the current liabilities and it increased the losses at the same time it decreased the discount and decreased the cash so the respective accounts are credited
