Answer:
Follows are the solution to the given point:
Explanation:
The formula for calculating the Quick Ratio:
[tex]\text{Quick Ratio} = \frac{\text{Quick Assets}}{\text{Current Liabilities}}[/tex]
[tex]= \frac{43700+86150}{104300}\\\\=\frac{ 129850}{104300} \\\\= 1.24[/tex]
[tex]\text{Sales days Receivable at end of year} = (\frac{\text{Account receivables at the end}}{\text{Gross sales by loan}} ) \times \text{number of days}[/tex] [tex]= \frac{86150}{631000} \times 365 \\\\ = 49.833 \\\\ = 50\ days[/tex]
[tex]\text{Sales price ratio} = \frac{\text{Sales per share price}}{\text{ Sales Share price}}[/tex]
[tex]=\frac{43.20}{\frac{63100}{82000}}\\\\ = \frac{43.20}{0.769}\\\\ = 5.61[/tex]
[tex]\text{total equity Debt} = \frac{ \text{Complete Liabilities}}{\text{Stockholders}}[/tex]
[tex]= \frac{882400}{(397900+82000)}\\\\ = \frac{882400}{(479,900)}\\\\ = \frac{882400}{(479,900)}\\\\= 1.838[/tex]
[tex]\text{Equity Return} = \frac{\text{Net Sales}}{\text{Equity of Shareholder}} \times 100[/tex]
[tex]= \frac{96200}{(82000+397900)} \times 100 \\\\ = \frac{96200}{(479900)} \times 100 \\\\= 0.2004 \times 100\\\\= 200.4 \ \%[/tex]
Dividends received throughout the year = Restored earnings opening + Net Sales -Closing of restored profits
[tex]= 309000 + 96200 - 397900 \\\\= 7300[/tex]
REFRESH Produce is a distributor of fresh produce. They conducted a thorough analysis of its market and identified groups of consumers that had similar product-related needs. One particular market identified wanted fresh and unique produce, such as Swiss chard, radicchio, and exotic fruits, and they were willing to pay higher prices for these choices. REFRESH Produce decided to focus its marketing effort on this segment of the total market. This segment is REFRESH Produce's
Answer:
D. target market
Explanation:
The target market can be identified as the group of people that the company has identified as potential consumers of its products or services, based on its similar characteristics, such as preferences and needs, aligned with the purpose of a product or service.
After identifying its target market, the company will focus its marketing efforts on that group of consumers to promote its business and become competitive and profitable in the market.
It is essential that the company develops personalized marketing to attract and retain potential consumers, using marketing strategies such as the marketing mix and the four pillars of product, price, market and promotion, in order to balance the company's marketing forces by promoting products and making available in the target market with elements that attract the attention and consumer desire for your product or service.
You are faced with the probability distribution of the HPR on the stock market index fund given in Spreadsheet 5.1 of the text. Suppose the price of a put option on a share of the index fund with exercise price of $110 and time to expiration of 1 year is $12, and suppose the risk-free interest rate is 6% per year. You are contemplating investing $107.55 in a 1-year CD and simultaneously buying a call option on the stock market index fund with an exercise price of $110 and expiration of 1 year. What is the probability distribution of your dollar return at the end of the year
Answer:
Follows are the solution to this question:
Explanation:
The price of one share plus one choice for the index fund is $112. Its distribution of HPR probabilities on the portfolio is:
[tex]\boxed{\left \begin{array}{cccc} \text{economy states} & \text{Probability}& \text{Endig price+Put+Dividend}&HPR\\ Excellent &0.25& \$ 131.00& \frac{(131-112)}{112} = 17\% \\Good &0.45&\$ 114.00& \frac{(114-112)}{112} = 1.8 \% \\poor &0.25& \$ 113.00& \frac{(113.50 -112)}{112} = 1.3 \% \\ Crash&0.5& \$ 112.00& \frac{(112-112)}{112} = 0.0 \% \end{array}\right}[/tex] The chances of dollar return distributions on the CD plus call option can be defined in the attached file please find it:
Barton and Fallows form a partnership by combining the assets of their separate businesses. Barton contributes accounts receivable with a face amount of $48,000 and equipment with a cost of $193,000 and accumulated depreciation of $103,000. The partners agree that the equipment is to be priced at $90,000, that $3,100 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,300 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Fallows contributes cash of $28,700 and merchandise inventory of $56,000. The partners agree that the merchandise inventory is to be priced at $60,500.Journalize the entries to record in the partnership accounts (a) Barton's investment and (b) Fallows' investment. If an amount box does not require an entry, leave it blank or enter "0".
Answer:
(a) Barton's investment
Date Account Titles and Explanation Debit Credit
Accounts receivables $44,900
($48,000 - $3,100)
Equipment $90,000
Allowances for uncollectible $1,300
Barton Capital $133,600
(To record Barton's contribution)
(b) Fallows' investment
Date Account Titles and Explanation Debit Credit
Cash $28,700
Merchandise Inventory $60,500
Fallow Capital $89,200
(To record Fallow's contribution)
objective of management
Swanson Company has identified the following activities related to indirect production costs: Activity Activity Costs Cost Drivers Machine Setup $180,000 1,500 Setup Hours Materials Handling $50,000 12,500 pounds of materials Electric Power $20,000 20,000 Kilowatt hours Swanson Company has obtained the following data concerning two products: Product 1 Product 2 Number of units produced 4,000 20,000 Direct Material Cost $20,000 $25,000 Direct Labor Cost $12,000 $20,000 Number of setup hours 100 120 Pounds of materials used 500 1,500 Kilowatt-hours 1,000 2,000 Using Activity Based Costing, what is the total production cost per unit for Product 1
Answer:
Unitary cost= $11.75
Explanation:
First, we need to calculate the predetermined overhead rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine Setup= 180,000/1,500= $120 per set up hour
Materials Handling= 50,000/12,500= $4 per pound
Electric Power= 20,000/20,000= $1 per kilowatt hour
Product 1:
Number of units produced 4,000
Direct Material Cost $20,000
Direct Labor Cost $12,000
Number of setup hours 100
Pounds of materials used 500
Kilowatt-hours 1,000
Now, we can determine the total cost for Product 1:
Total cost= 20,000 + 12,000 + (120*100 + 4*500 + 1*1,000)
Total cost= $47,000
Finally, the unitary cost:
Unitary cost= 47,000/4,000
Unitary cost= $11.75
Bosques Corporation has in stock 35,800 kilograms of material L that it bought fiveyears ago for $5.55 per kilogram. This raw material was purchased to use in a productline that has been discontinued. Material L can be sold as is for scrap for $1.67 perkilogram. An alternative would be to use material L in one of the company's currentproducts, Q08C, which currently requires 2 kilograms of a raw material that isavailable for $9.15 per kilogram. Material L can be modified at a cost of $0.78 perkilogram so that it can be used as a substitute for this material in the production ofproduct Q08C. However, after modification, 4 kilograms of material L is required forevery unit of product Q08C that is produced. Bosques Corporation has now received arequest from a company that could use material L in its production process. Assumingthat Bosques Corporation could use all of its stock of material L to make productQ08C or the company could sell all of its stock of the material at the current scrapprice of $1.67 per kilogram, what is the minimum acceptable selling price of materialL to the company that could use material L in its own production process
Answer:
material L should be sold for at least $3.80 per kg
Explanation:
alternative 1, sell material L at scrap value:
35,800 kg x $1.67 = $59,786
alternative 2, process material L and use it to produce Q08C:
processing costs = 35,800 x $0.78 = $27,924
modified L will replace 17,900 of another material that is worth 17,900 x $9.15 = $163,785
net additional income = $163,785 - $27,924 = $135,861
alternative 2 generates the highest additional income = $135,861 / 35,800 = $3.795 per kg.
the minimum acceptable price ≥ to the additional revenue generated by alternative 2, therefore, material L should be sold for at least $3.80 per kg
Joey realizes that he has charged too much on his credit card and has racked up $5,200 in debt. If he can pay $175 each month and the card charges 15 percent APR (compounded monthly), how long will it take him to pay off the debt
Answer:
it will take approximately 37.38 months to pay off the debt.
Explanation:
This can be calculated using the formula for calculating the present value (PV) of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = Present value of the debt = $5,200
P = monthly repayment = $175
r = monthly APR = 15% / 12 = 0.15 / 12 = 0.0125
n = number of months required to pay off the debt = ?
Substitute the values into equation (1) and solve for n, we have:
$5,200 = $175 * ((1 - (1 / (1 + 0.0125))^n) / 0.0125)
$5,200 / $175 = (1 - (1 / 1.0125)^n) / 0.0125
29.7142857142857 = (1 - 0.987654320987654^n) / 0.0125
29.7142857142857 * 0.0125 = 1 - 0.987654320987654^n
0.371428571428571 = 1 - 0.987654320987654^n
0.987654320987654^n = 1 - 0.371428571428571
0.987654320987654^n = 0.628571428571429
Loglinearlizing both sides and solving for n, we have:
n log(0.987654320987654) = log(0.628571428571429)
n = log(0.628571428571429) / log(0.987654320987654)
n = -0.201645363528069 / -0.00539503188670629
n = 37.38
Therefore, it will take approximately 37.38 months to pay off the debt.
You manage a risky portfolio with an expected rate of return of 22% and a standard deviation of 34%. The T-bill rate is 6%. Your risky portfolio includes the following investments in the given proportions: Stock A 31 % Stock B 36 % Stock C 33 % Suppose that your client decides to invest in your portfolio a proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 18%. a. What is the proportion y? (Round your answer to the nearest whole number.) b. What are your client’s investment proportions in your three stocks and the T-bill fund? (Do not round intermediate calculations. Round your answers to 2 decimal places.) c. What is the standard deviation of the rate of return on your client’s portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer and Explanation:
A.
E(r) = y x R(rp) + (1-y)*rf
0.18 = y * 0.22+(1-y)*0.06
0.18 = 0.22y +0.06 -0.06y
Collect like terms
0.18-0.06 = 0.22y - 0.06y
0.12 = 0.16y
y = 0.12/0.16
= 0.75
= 75%
B.
Stock a = 31% x 0.75
= 0.2325
= 23.25%
Stock b = 36% * 0.75
= 0.27%
Stock c = 33% * 0.75
= 0.2475
= 24.75%
A total of all these stocks gives 100 percent
C.
We have standard deviation = 34%
Y * standard deviation
= 0.75 * 0.34
= 0.255
= 25.5%
Benny is the manager of an office-support business that supplies copying, binding, and other services for local companies. He must replace a worn-out copy machine that is used for black-and-white copying. He is considering two machines, and each of these has a monthly lease cost plus a cost for each page that is copied. Machine 1 has a monthly lease cost of $619, and there is a cost of $0.040 per page copied. Machine 2 has a monthly lease cost of $685, and there is a cost of $0.025 per page copied. Customers are charged $.12 per page copied. If Benny expects to make 75,000 copies per month, what would be the monthly cost for each machine
Answer:
Results are below.
Explanation:
Giving the following information:
Machine 1:
Monthly lease cost of $619
Cost per page= $0.040
Machine 2:
Monthly lease cost of $685
Csot per page= $0.025
First, we need to structure the total cost formula for each machine:
Machine 1:
Total cost= 619 + 0.04x
Machine 2:
Total cost= 685 + 0.025x
Now, the cost of 75,000 pages:
Machine 1:
Total cost= 619 + 0.04*75,000= $3,619
Machine 2:
Total cost= 685 + 0.025*75,000= $2,560
supposes there is economic profit being made in the garbage bag industry. Over time, we should expect which of the following things to happen?
Answer:Suppose there is economic profit being made in the garbage bag industry. Over time, we should expect which of the following things to happen? ... Garbage bag supply will decrease. Garbage bag prices will increase.
Explanation:workers at this wage; therefore it would simply create unemployment. b. To help ... There needs to be differences in opportunity costs of producing goods across countries for there ... Suppose we have the following market supply and demand schedules ... Economic profits are zero and firms neither enter nor exit the industry.
Suppose you run a software company and you want to determine if there is a difference between the 'debugging unit' (population 1) and 'after sales services unit' (population 2) by considering the return on investment for each unit. you have acsess to information from a random survey which is done for 24 companies for population 1 which reveals that the average return on investment (ROI) for each dollar you invest is.12, while for population, the survey is performed on 30 companies and the average ROI is found to be .30. You also know from the previously published results that the standard deviation for any ROI in the software industry is .25 What is the value of the test statistic for your research hypothesis?
a. -1.3145.
b. -1.2728.
c. -2.3738.
d. -2.2411.
e. -2.6291.
Answer:
e. -2.6291.
Explanation:
from the information available in this question,
mean x₁ = 0.12
mean x₂ = 0.30
n₁ = 24
n₂ = 30
n1 = 24 < 30
n₂ = 30 <= 30
therefore we would be solving this using the t test.
we have
[tex]t =\frac{x_{1-x_{2} } }{s} *\sqrt{\frac{n1n2}{n1+n2} }[/tex]
inserting values whe have:
[tex]t=\frac{0.12-0.30}{0.25} *\sqrt{\frac{24*30}{24+30} }[/tex]
[tex]t = -0.72 *\sqrt{13.33333}[/tex]
[tex]t=-0.72*3.6514836[/tex]
[tex]t=-2.629067947[/tex]
this is approximately
[tex]-2.6291[/tex]
therefore option e answers this question.
7. Which of the following is not a way to accumulate wealth?
A Getting a mortgage and making monthly payments on your home
B Being sure to save money each month
C Only saving money when you have a chance
D Using a compound interest account for your savings
being sure to save money each month
You would like to combine a risky stock with a beta of 1.5 with U.S. Treasury bills in such a way that the risk level of the portfolio is equivalent to the risk level of the overall market. What percentage of the portfolio should be invested in Treasury bills? (Formula: Portfolio beta = w1 * beta 1 + w2 *beta 2; w1+w2 = 1) Round your answer to the integer. Note that the answer needs to be in PERCENTAGE. Weight in stock = Blank 1. Fill in the blank, read surrounding text. 67 % Weight in T-Bill = Blank 2. Fill in the blank, read surrounding text. 33 %
Answer:
33.33%
Explanation:
Let weight of T-bill be x, therefore weight of stock will be 1-x
Portfolio = Weight of stock*Beta of stock + Weight of T-bills*Beta of T-bills
1 = (1-x)*1.5 + x*0
1 = 1.5 - 1.5x
x = 0.5/1.5
x = 0.3333
x = 33.33%
Therefore, the percentage of the portfolio invested in treasury bills is 33.33%.
g Phoenix industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy. Today, it was announced a $1 per share dividend to be paid a year from now, the first dividend since the crisis. Analysts expect dividends to increase by $1 a year for another 2 years. After the third year dividends growth is expected to settle down to a more moderate longterm growth rate of 8%. If the firm's investors expect to earn a return of 16% on this stock, what must the price be
Answer:
Market Share price $ 31,12
Explanation:
The price of the stock will be the same as the present value of their dividends:
Year Dividend Presnet Value
First year $1,00 $ 0,8621
Second $2,00 $ 1,7241
Third $3,00 $ 2,5862
Total Value $ 5,1724
Now, we solve for the horizon value
3 x (1.08) / (0.16 - 0.08) = 40,50
And, as this is three year ahead we also discounted like the other dividends:
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 40,50
time 3,00
rate 0,16
[tex]\frac{40,5}{(1 + 0,16)^{3} } = PV[/tex]
PV 25,95
And last, we add up the horizon with the other dividends:
5.17 + 25,95 = 31,12
For a Windows laptop, what is the best way to save power when the computer will not be used for an extended period?
A. Sleep the system
B. Turn off by power button
C. Use battery power
D. Hibernate the system
Answer:
b turn off by power button
As of June 30, Year 1, the bank statement showed an ending balance of $17,616. The unadjusted Cash account balance was $16,893. The following information is available: 1. Deposit in transit, $2,785. 2. Credit memo in bank statement for interest earned in June, $10. 3. Outstanding check, $3,504. 4. Debit memo for service charge. $6. Required Determine the true cash balance by preparing a bank reconciliation as of June 30, Year 1, using the preceding information, (Negative amounts should be indicated with minus sign.)
Bank Reconciliation
Unadjusted bank balance 6/30/Year 1
True cash balance 6/30/Year 1
Unadjusted book balance 6/30/Year 1
True cash balance 6/30/Year 1
Answer: See attachment
Explanation:
A bank reconciliation statement is a statement that simply shows the summary of both the banking and business activity which are used in reconciling and balancing the bank account of a company or organization with the company's financial records.
The bank reconciliation statement shows the deposits, the withdrawals and also does every other things that impacts the bank account of the company for a particular period.
Southwest Airlines is able to keep fares low, in part because of relatively low maintenance costs on its airplanes. One of the main reasons for the low maintenance costs is that Southwest flies only one type of aircraft: the Boeing 737. However, Southwest flies three different versions of the 737. Suppose Southwest decides to conduct a study to determine whether there is a significant difference in the average annual maintenance costs for the three types of 737s used. a. State a measurable dependent variable for such a study. b. State a factor that might affect the independent variable, and list at least three levels.
:
.
Explanation:
the reason maintenance cost are low is because the airline has just one type of aircraft which is boeing 737.
a. the measurable dependent variable for the study is the fares of the southwast airlines.
b. a factor that might affect the independent variable is the three versions that are being used by the southwest airlines. the independent variable here is the maintenance cost of the airlines. the factor has 3 different levels which are boeing -700, -800, -900ER
thank you!
Instructions: Round your answers to 2 decimal places. If you are entering a negative number include a minus sign. a. Using the midpoint method, what is the price elasticity of demand from a price of $4.00 to a price of $4.50 per iced coffee? , and demand is said to be price (Click to select) . b. Using the midpoint method, what is the price elasticity of demand from a price of $2.00 to a price of $3.00 per iced coffee? , and demand is said to be price (Click to select) . c. Using the midpoint method, what is the price elasticity of demand from a price of $0.50 to a price of $1.00 per iced coffee? , and demand is said to be price (Click to select) .
Answer:
The answer is below
Explanation:
The graph is attached below.
a) The price elasticity of demand is given by:
price elasticity of demand = [tex]\frac{\%\ change\ in\ quantity }{\%\ change\ in\ price}=\frac{\Delta Q}{\Delta P}[/tex]
[tex]\Delta Q=\frac{Q_2-Q_1}{(Q_2+Q_1)/2} \\\\\Delta P=\frac{P_2-P_1}{(P_2+P_1)/2}[/tex]
Price of elasticity demand = [tex]\frac{\frac{Q_2-Q_1}{(Q_2+Q_1)/2} }{\frac{P_2-P_1}{(P_2+P_1)/2} }[/tex]
Price of elasticity demand = [tex]\frac{\frac{50-100}{(50+100)/2} }{\frac{4.5-4}{(4.5+4.0)/2} }=\frac{-0.6667}{0.1176} =5.7[/tex]
Since the price of elasticity demand > 1, it is elastic
b) Price of elasticity demand = [tex]\frac{\frac{200-300}{(200+300)/2} }{\frac{3-2}{(3+2)/2} }=\frac{-0.4}{0.4} =1[/tex]
Since the price of elasticity demand = 1, it is unitary
c) Price of elasticity demand = [tex]\frac{\frac{400-450}{(400+450)/2} }{\frac{1-0.5}{(1+0.5)/2} }=\frac{-0.1176}{0.6667} =0.18[/tex]
Since the price of elasticity demand < 1, it is inelastic
Exercise 6-8 Petty cash fund with a shortage LO P2 Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows $104 in cash along with receipts for the following expenditures: transportation-in, $40; postage expenses, $123; and miscellaneous expenses, $80. The petty cashier could not account for a $3 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $400.
Answer:
1.September 09
Dr Petty cash 350
Cr Cash 350
2. September 30
Dr Merchandise inventory 40
Dr Postage expense 123
Dr Miscellaneous expenses 80
Dr Cash short and over 3
Cr Cash 246
3. Dr Petty cash 50
Cr Cash 50
Explanation:
Preparation of Journal entries
1. Preparation of September 9 Journal entry to establish the fund
September 09
Dr Petty cash 350
Cr Cash 350
2. Preparation of September 30 Journal entry to reimburse the fund
September 30
Dr Merchandise inventory 40
Dr Postage expense 123
Dr Miscellaneous expenses 80
Dr Cash short and over 3
Cr Cash 246
(40+123+80+3)
3. Preparation of October 1 Journal entry to increase the fund to $400.
October 01
Dr Petty cash 50
Cr Cash 50
($400-$350)
Robert Plant deposits $25 each month into a savings account that pays 4.0% annual interest. How much will be in the account after 36 months, if interest compounds monthly
Answer:
FV= $953.97
Explanation:
Giving the following information:
Monthly deposit= $25
Interest rate= 0.04/12= 0.0033
Number of periods= 36
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {25*[(1.0033^36) - 1]} / 0.0033
FV= $953.97
You are given the following series of one-year interest rates: 3%, 5%,13 %, 15% Assuming that the expectations theory is the correct theory of the term structure, calculate the interest rates in the term structure for maturities of one to four years, and plot the resulting yield curve. 1. Using the point drawing tool, plot the interest rate (calculated using the data above) for each of the four terms to maturity. Properly label each point according to its corresponding term. 2. Using the 4-point curved line drawing tool, connect these points. Label your curve 'yield curve'. Carefully follow the instructions above, and only draw the required objects.
Answer:
interest rate for year 1 = 3%
interest rate for year 2 = ( 3% + 5% )/2 = 4%
interest rate for year 3 = ( 3% + 5% + 13% )/ 3 = 7%
interest rate for year 4 = ( 3% + 5% + 13% + 15%) / 4 = 9%
Explanation:
Interest rates :
interest rate for year 1 = 3%
interest rate for year 2 = ( 3% + 5% )/2 = 4%
interest rate for year 3 = ( 3% + 5% + 13% )/ 3 = 7%
interest rate for year 4 = ( 3% + 5% + 13% + 15%) / 4 = 9%
Attached below is the plot
Problem 18-1 Using Exchange Rates [LO 1] Use the information below to answer the following questions. U.S. $ EQUIVALENTCURRENCY PER U.S. $ Polish Zloty.2992 3.3426 Euro1.2425 .8048 Mexican Peso.0752 13.2996 Swiss Franc1.0331 .9680 Chilean Peso.002071 482.80 New Zealand Dollar.8082 1.2374 Singapore Dollar.8005 1.2492 a.If you have $200, how many Polish zloty can you get
Answer: $668.52 Polish Zloty
Explanation:
From the table it is shown that US$1 is equivalent to 3.3426 Polish Zloty so if you have $200, the amount of Polish Zloty you can get is;
= 200 * 3.3426
= $668.52 Polish Zloty
Why do companies frequently expand their business operations into other countries?
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.
May 11 Sydney accepts delivery of $29,000 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $19,430. Sydney pays $655 cash to Express Shipping for delivery charges on the merchandise.
12 Sydney returns $1,300 of the $29,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $871.
20 Sydney pays Troy for the amount owed. Troy receives the cash immediately.
(Both Sydney and Troy use a perpetual inventory system and the gross method.)
1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions.
2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.
Sydney accepts delivery of $29,000 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $19,430.Sydney pays $655 cash to Express Shipping for delivery charges on the merchandise.Sydney returns $1,300 of the $29,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $871.Sydney pays Troy for the amount owed. Troy receives the cash immediately.
What are the inventory methods used in accounting?
Answer:
- specific identification;
- first-in, first-out (FIFO);
- last-in, first-out (LIFO); and.
- weighted-average.
how do you understand the word business finance?
Answer:
Business Finance means the funds and credit employed in the business. Finance is the foundation of a business. Finance requirements are to purchase assets, goods, raw materials and for the other flow of economic activities
Answer:
in my opinion and own words
Explanation:
Business Finance simply means the activity of managing money in financial status especially in companies or government organizations to run a business or activity or also a project so it simply means using Finances to run a business
.(Thank you and sorry)0
When Padgett Properties LLC was formed, Nova contributed land (value of $358,500 and basis of $89,625) and $179,250 cash, and Oscar contributed cash of $537,750. Both partners received a 50% interest in partnership profits and capital. a. How is the land recorded for § 704(b) book capital account purposes? For § 704(b) book capital account purposes, Padgett records the land at $ 358,500 . b. What is Padgett's tax basis in the land? $ 89,625 c. If Padgett sells the land several years later for $537,750, how much tax gain will Nova and Oscar report? Nova reports a $ gain and Oscar's gain is $ 89,625 .
Answer:Amount of Nova and Oscar's gain=$492,937.50
Explanation:
a)According to Land recorded for § 704(b) book capital account purposes, Land is recorded at fair market value. With this, the Padgett properties should record the land at $358,500
b)From the question, it is given that the basis of land is $89,625. Therefore, the Padgett Properties LLC's tax basis in the land is $89,625.
c)Amount of Nova and Oscar's gain.
Fair market value of Land $358,500
Basis of land $89,625
total $ 448,125
but Gain = Selling price of land - Fair value of Land x interest in partnership profits and capital
= $537,750 - ($358,500+$89,625 )
=($537,750 - $448,125 ) x 50% =$44,812.50
Total gain $448,125 + $44,812.50 =$492,937.50
Kevin Hall is saving for an Australian vacation in three years. He estimates that he will need $5,920 to cover his airfare and all other expenses for a week-long holiday in Australia. If he can invest his money in an S&P 500 equity index fund that is expected to earn an average annual return of 10.5 percent over the next three years, how much will he have to save every year if he starts saving at the end of this year? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.)
Answer:
$1,779.90
Explanation:
Formula for finding the amount he has to save, this formula would be used :
Amount = FV / annuity factor
Annuity factor = [(1 + r)^n - 1 / r]
FV = Future value = $5920
n = number of years = 3
i = interest rate = 10.5
Annuity factor = (1.105^3 - 1 ) / 0.105 = 3.326025
$5920 / 3.326025 = $1,779.90
Exercise 1-13 Identifying effects of transactions using the accounting equation LO P1 Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions. a. Owner Invested $59,000 cash in the company along with equipment that had a $16,000 market value in exchange for its common stock. b. The company paid $2,500 cash for rent of office space for the month. C. The company purchased $17,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and Immediately collected the $2,500 cash earned. e. The company completed work for a client and sent a bill for $7,300 to be received within 30 days. f. The company purchased additional equipment for $5,900 cash. g. The company paid an assistant $3,500 cash as wages for the month. h. The company collected $4,600 cash as a partial payment for the amount owed by the client in transaction e. 1. The company paid $17,000 cash to settle the liability created in transaction c. J. The company paid $1,100 cash in dividends to the owner (sole shareholder).
Answer:
I used an excel spreadsheet since there is not enough room here.
Explanation:
Effects of transactions using the accounting equation in this transaction will be in the form of double entry.
What is an accounting equation?Accounting is the practice of consistently keeping track of and handling account balances. Basic accounting keeps track of transactions and makes them transparent. All company transactions are split into credits and debits using this system.
Receivables are any possessions that have the potential to provide future financial gain. Your debts to other people are called liabilities.
The accounting equation will be:
Asset = liabilities + equity
The equation in the lengthy form will be:
Assets = Liabilities + Owner's Capital - Owner's Drawings + Revenues - Expenses.
Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. so he needs to record every transaction and account for them in the balance sheet, assets, liabilities, and owner's equity.
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Journalize the following five transactions for Nexium & Associates, Inc. Omit explanations.March 1 - Bills are sent to clients for services provided in February in the amount of $800.March 9 - Corner Office, Inc. delivers office furniture ($1,060) and office supplies ($160) to Nexium leaving an invoice for $1,220.March 15 - Payment is made to Corner Office, Inc. for the furniture and office supplies delivered on March 9.March 23 - A bill for $430 for electricity for the month of March is received and will be paid on its due date in April.March 31 – Salaries of $850 are paid to employees.For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
Answer: Please find answers in explanation column
Explanation:
Journal entry for Nexium & Associates
1.Journal to record Services provided in February.
Date Account Debit Credit
March 1 Accounts receivable $800
Service revenue $800
2.Journal to record purchase of furniture and supplies on account.
March 9 Office furniture $1,060
Office supplies $160
Accounts payable $1,220
3.Journal To record payment made to suppliers, Corner Office Inc.
March 15 Accounts payable $1,220
Cash $1,220
4.Journal To record the bill of electricity for march which is not yet due to be paid till April.
March 23 Electricity expense $430
Outstanding Liabilities $430
5.Journal To record the salary payment to employees.
March 31 Salaries expense $850
Cash $850
