Answer:
The correct answer is B) The appropriateness of interventions
Explanation:
Managed care is evolving in many countries around the world.
One of the ways in which changes are becoming more prevalent is in the managed care industry is that due to competition, that players are beginning to take seriously the quality of health care being given to enrollees.
All of this is happening simultaneously with the bid to provide these services at the lowest cost possible with providers playing for marketing share.
In Managed care, if customers are treated fairly, they are most likely to return thus creating the possibility for sustained organic growth.
Cheers!
1. A Letter of Credit (or LC) is one of the major pillars on which International Trade stands. a) What is a Letter of Credit? b) With the aid of a diagram, explain the LC procedure. c) Explain to the CEO of Mbo Limited (a company in Ghana) which wants to buy large quantities of White Refined Granulated Sugar from Tiffany Anderson Group Ltd (a company in Brazil) why the LC is the most acceptable method to both the exporter and importer in a transaction such as he is about to undertake.
Answer:
A Letter of Credit (or LC)
There are various types of letter of credit (LC) that prevail in export/import trade transactions. These include Commercial, Export / Import, Transferable and Non-Transferable, Revocable and Irrevocable, Stand-by, Confirmed, and Unconfirmed, Revolving, Back to Back, Red Clause, Green Clause, Sight, Deferred Payment, and Direct Pay LC. We can explain it by using the following illustrated examples:
a) Mbo Limited's bank can issue a letter of credit to Tiffany Anderson Group Ltd.'s bank a credit guarantee by which Mbo's bank guarantees that Mbo Limited will settle Tiffany Anderson Group Ltd in full for the amount involved in their trade relationship. It is usually used by importers and exporters to settle trade credit. It is the most acceptable means of settling debts across national boundaries.
b) A diagram is attached to show how a letter of credit works. The procedures are detailed below:
A. A Sales Contract is established between the seller (exporter) and the buyer(importer).
B. The importer makes a request to its bank for issuance of letter of credit.
C. The importer’s bank issues a letter of credit to the exporter’s bank.
D. The exporter’s bank advises on the letter of credit to the exporter.
E. The exporter presents export documents (bill of lading and invoice) to its bank.
F. The exporter’s bank delivers the documents to the importer’s bank.
G. The importer’s bank debits the account of the importer for the stated amount after confirming that the documents are in order.
H. The importer’s bank pays the purchase price to the exporter’s bank.
I. The exporter’s bank credits the exporter’s bank to show payment. This ends the transaction.
c. The letter of credit guarantees both the Mbo Limited and Tiffany Anderson Group Ltd. It guarantees and ensures that payment for goods are not paid to Tiffany Anderson Group Ltd until there is evidence that the correct goods and quantity have been shipped by Tiffany Anderson Group Ltd (through the bill of lading). It also assures Tiffany Anderson Group Ltd of payment for shipped goods since the documents cannot be released to Mbo Limited unless Mbo Limited's account had been debited and the money transmitted to Tiffany Anderson Group Ltd through its bank.
Explanation:
As explained above.
A monopolist sells in two geographically divided markets, the East and the West. Marginal cost is constant at $50 in both markets. Demand and marginal revenue in each market are as follows:
QE = 900 - 2PE
MRE = 450 - QE
QW = 700 - PW
MRW = 700 - 2QW
a. Find the profit-maximizing price and quantity in each market
b. In which market is demand more elastic?
Answer:
A) QE = 400, PE = 250
QW = 325, PW = 375
b) east market has more elastic market demand
Explanation:
Given data :
Marginal cost = $50 ( both markets )
demand and marginal revenue in each market are given differently
a) Determine/find the profit-maximizing price and quantity in each market
For east market :
50 = 450 - QE
hence QE = 450 -50 = 400
since QE = 400 ( quantity for east market )
400 = 900 - 2PE
PE = 250 ( PROFIT maximizing price for east market )
For west market
50 = 700 - 2QW
Hence QW = 325
since QW = 325
325 = 700 - pw
PW = 375
B) The market in which demand is more elastic is the east market because the quantity demanded is higher and also the profit maximizing price is lower as well
A Treasury bond due in one year has a yield of 5.7%; a Treasury bond due in 5 years has a yield of 6.2%. A bond issued by Ford due in 5 years has a yield of 7.5%; a bond issued by Shell Oil due in one year has a yield of 6.5%. The default risk premiums on the bonds issued by Shell and Ford, respectively, are:__________. a. 1.0% and 1.2% b. 1.2% and 1.0%. c. 0.7% and 1.5%. d. 0.8% and 1.3%.
e. None of the options are correct
Answer:
d. 0.8% and 1.3%.
Explanation:
The default risk premiums on the bonds issued by Shell = 6.5% - 5.7% = 0.8%
The default risk premiums on the bonds issued by Ford = 7.5% - 6.2% = 1.3%
Hence, the default risk premium issued by Shell and Ford respectively are 0.8% and 1.3%
Gain is generally recognized in an asset distribution to a partner. True False
Answer:
False
Explanation:
Usually distributions reduce a partner's outside basis in a partnership, they are generally not considered income. Since most distributions are not considered income, they do not result in gains for the partner. Some distributions may result in gains, such as certain cash distributions or securities (bonds) distributions. It is uncommon for a gain to result from property being distributed.
Monte Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected from time and motion studies conducted over the past month.
Actual time spent on the brake repairs 1.0 hour
Hourly wage rate $12
Payroll taxes of wage rate 10%
Setup and downtime of actual labor time 20%
Cleanup and rest periods 30%
of actual labor time
Fringe benefits 25%
of wage rate
a. Determine the standard direct labor hours per brake repairs.
(Round answer to 2 decimal places, e.g. 1.25.)
Standard direct labor hours per brake repair_____________
b. Determine the standard direct labor hourly rate. (Round answer to 2 decimal places, e.g. 1.25.)
Standard direct labor hourly rate __________
c. Determine the standard direct labor cost per brake repair. (Round answer to 2 decimal places, e.g. 1.25.)
Answer:
a) standard direct labor hours per brake repair = hour spent repairing the brakes + setup time + cleanup time = 1 + (1 x 20%) + (1 x 30%) = 1.5 hours per brake repair
b) standard direct labor hourly rate = hourly wage rate + payroll taxes + fringe benefits = $12 + ($12 x 10%) + ($12 x 25%) = $16.20
c) standard direct labor cost per brake repair = 1.5 x $16.20 = $24.30
Your client holds 1 listed XYZ August 50 call. A cash dividend of $2.50 per share is declared. On the ex-date, the terms of the call are: (A) Exercise Price: $47.50, Number of Underlying Shares per Contract of XYZ: 102 (B) Exercise Price:$50.00, Number of Underlying Shares per Contract of XYZ: 100 (C) Exercise Price: $52.50, Number of Underlying Shares per Contract of XYZ: 97 (D) Exercise Price: $52.50, Number of Underlying Shares per Contract of XYZ: 102
Answer:
(B) Exercise Price:$50.00, Number of Underlying Shares per Contract of XYZ: 100
Explanation:
The declaration of the dividends will not affect the exercise price of the call, it will still be $50 per stock. Also, the number of stocks included in the call will not change because a cash dividend is declared, they will still be 100 stocks included in the call contract. The cash dividend affects the market price of the stock, but not the call or put options.
Fifty percent of an HIM department’s staff have a nationally recognized credential. This is an example of what type of indicator: A. Structure B. Process C. Outcome D. Internal
Answer: A. Structure
Explanation:
Structure Indicators provide information about the ability and capacity of a Health care provider to be able to give health care services that are of high quality.
They focus on the processes the Health Care provider uses, the systems in place and their capacity to provide certain types of care.
Some indicators include; How many providers do they have versus the number of patients they have and the number of certified physicians that they have.
Having a HIM department with 50% of staff accredited is therefore a Structure indicator.
A registered representative with a wealthy clientele has many clients that are officers of publicly held companies. The registered representative receives an order from the executive vice-president of ADAP Corp. to sell 4% of the outstanding shares. Prior to placing this order, the registered representative may, in his or her personal account,:__________.
Answer:
buy ADAP common stock
Explanation:
Prior to placing this order, the registered representative may, in his or her personal account, buy ADAP common stock. This is because the representative would be buying against ADAP Corp and therefore the market. The representative cannot Sell ADAP common stock because doing so after having received this information would be considered "Insider Trading" which is illegal since the 4% that the company is selling will most likely cause a dip in price of the shares in the market.
TYR just announced yesterday that its fourth-quarter earnings will be 35% lower than last year's fourth quarter. You observe that TYR had an abnormal return of 3.7% yesterday. This suggests that
Answer: Investors expected the earnings increase to be smaller than what was actually announced.
Explanation:
Abnormal return on an asset such as stock refers to the difference between actual returns and expected returns. As such, if it is positive, that would mean that the actual returns are/ will be higher than the expected/anticipated returns.
TYR had an abnormal return of 3.7% which would mean that the the 35% lower fourth-quarter earnings was higher than investors expected from TYR.
Vicky Robb is considering purchasing the common stock of Hawaii Industries, a rapidly growing boat manufacturer. She finds that the firm’s most recent (2020) annual dividend payment was $2.50 per share. Vicky estimates that these dividends will increase at a 20% annual rate, g1, over the next 3 years (2021, 2022, and 2023) because of the introduction of a hot new boat. At the end of the 3 years (the end of 2023), she expects the firm’s mature product line to result in a slowing of the dividend growth rate to 8% per year, g2, for the foreseeable future. Vicky’s required return, rs, is 15%. Required: What is the current (end-of-2020) value of Hawaii’s common stock, P0 = P2020.
Answer:
P0 = $51.9956 rounded off to $52.00
Explanation:
The two stage growth model of DDM will be used to calculate the price of a stock whose dividends are expected to grow over time with two different growth rates. The DDM values a stock based on the present value of the expected future dividends from the stock.
The formula for price of the stock today under this model is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [ (D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n ]
Where,
D0 is the dividend today or most recently paid dividend g1 is the initial growth rate which is 20% g2 is the constant growth rate which is 8% r is the required rate of return
P0 = 2.5 * (1+0.2) / (1+0.15) + 2.5 * (1+0.2)^2 / (1+0.15)^2 +
2.5 * (1+0.2)^3 / (1+0.15)^3 +
[(2.5 * (1+0.2)^3 * (1+0.08) / (0.15 - 0.08) / (1+0.15)^3)
P0 = $51.9956 rounded off to $52.00
Based on the information given, the current value of the stock will be $52.00.
Based on the information given, the following can be denoted.
D0 = dividend today
g1 = initial growth rate = 0%
g2 = constant growth rate = 8%
r = required rate of return
P0 = [2.5 × (1+0.2) / (1+0.15) + 2.5 × (1+0.2)² / (1+0.15)² + 2.5 + (1+0.2)³] / (1+0.15)³ + (2.5 * (1+0.2)³ * (1+0.08) / (0.15 - 0.08) / (1+0.15)³]
P0 = $52.00
In conclusion, the price is $52.
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Onslow Co. purchases a used machine for $192,000 cash on January 2 and readies it for use the next day at an $6,000 cost. On January 3, it is installed on a required operating platform costing $1,200, and it is further readied for operations. The company predicts the machine will be used for six years and have a $23,040 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.
1.Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is paid for all costs incurred.
Entry #1. Record the purchase of a used machine for $192,000 cash.
Entry #2. Record the costs of $6,000 cash incurred on the used machine.
Entry #3: Record the cost of $1,200 for an operating platform.
2. Prepare journal entries to record depreciation of the machine at December 31.
Entry #1Its first year in operations : Record the year-end adjusting entry for the depreciation expense of the used machine.
Entry#2 The year of its disposal : Record the year-end adjusting entry for the depreciation expense of the used machine.
3. Prepare journal entries to record the machine's disposal under each of the following separate assumptions:
Entry #1: Record the sale of the used machine for $23,000 cash.
Entry #2: Record the sale of the used machine for $92,000 cash.
Entry #3: Record the destruction of the used machine in a fire with $33,500 cash insurance settlement.
Answer:
Onslow Co.
1. Journal Entries:
Entry #1. Record the purchase of a used machine for $192,000 cash.
Jan 2:
Debit Plant $192,000
Credit Cash Account $192,000
To record the purchase of the used machine.
Entry #2. Record the costs of $6,000 cash incurred on the used machine.
Debit Plant $6,000
Credit Cash Account $6,000
To record the cost for readying it for use.
Entry #3: Record the cost of $1,200 for an operating platform.
Debit Plant Operating Platform $1,200
Credit Cash Account $1,200
2. Journal Entries for Depreciation:
Entry #1 Its first year in operations : Record the year-end adjusting entry for the depreciation expense of the used machine.
December 31, Year 1:
Debit Depreciation Expense $29,160
Credit Accumulated Depreciation $29,160
To record depreciation expense for the year.
Entry#2 The year of its disposal : Record the year-end adjusting entry for the depreciation expense of the used machine.
Year 5 December 31:
Debit Depreciation Expense $29,160
Credit Accumulated Depreciation $29,160
To record the depreciation expense for the year.
3. Journals Entries;
Entry #1: Record the sale of the used machine for $23,000 cash.
Debit Cash Account $23,000
Credit Plant Disposal $23,000
To record the cash receipt from the sale.
Debit Plant Disposal $198,000
Credit Plant $198,000
To record the transfer of machine sold.
Debit Accumulated Depreciation $145,800
Credit Plant Disposal $145,800
To record the transfer of balance to Sale of Machine.
Entry #2: Record the sale of the used machine for $92,000 cash.
Debit Cash Account $92,000
Credit Plant Disposal $92,000
To record the cash receipt from the sale.
Entry #3: Record the destruction of the used machine in a fire with $33,500 cash insurance settlement.
Debit Cash Account $33,500
Credit Plant Disposal $33,500
To record the cash receipt from insurance.
Explanation:
a) Data and Calculations:
Cost of machine = $192,000
Readying cost = 6,000
Total = $198,000
Useful life = 6 years
Salvage value = $23,040
Depreciable amount $174,960
Depreciation per year = $29,160 ($174,960/6)
Accumulated Depreciation after 5 years = $145,800 ($29,160 x 5)
Book value after 5 years = $52,200
Method of Depreciation = Straight-line
Campbell Clothing produces men's ties. The following budgeted and actual amounts are for 2016:
Cost Budget at 5,000 Units Actual Amounts at 5,800 Units
Direct materials $60,000 $71,000
Direct labor 75,000 86,500
Equipment depreciation 5,000 5,000
Indirect labor 7,500 8,600
Indirect materials 9,000 9,600
Rent and insurance 12,000 13,000
Instructions:
Prepare a FLEXIBLE performance budget report for Campbell Clothing for the year.
Answer:
Campbell Clothing
Manufacturing Performance budget Report
For the year ended December 31, 2016
Budget Actual Difference
Direct materials $69,600 $71,000 $1,400 U
Direct labor $87,600 $86,500 $500 F
Equipment depreciation $5,000 $5,000 $0 Nil
Indirect labor $8,700 $8,600 $100 F
Indirect materials $10,440 $9,600 $840 F
Rent and insurance $12,000 $13,000 $1000 U
Total Costs $192,740 $193,700 $960 U
Workings
Planning budget
Direct materials 60,000 * $12 = $69,600
Direct labor 75,000 * $15,000 = $87,600
Equipment depreciation 5,000
Indirect labor 7,500 * $1.50 = $8,700
Indirect materials 9,000 * $1.80 = $10,440
Rent and insurance $12,000
Suppose you are about to buy a car and ask to see a vehicle history report to check previous accidents or problems reported for that car. When you are told that this information is not available, you decide not to buy the car.
A) Do ypu think this illustrates an adverse selection or moral hazard problem?
B) What is the connection between the lack of information and the probability that a transaction will occur?
Answer:
A) Do you think this illustrates an adverse selection or moral hazard problem?
This situation represents an adverse selection problem since the seller probably has access to more information about the car than you. Since the seller is hiding the information, it might mean that it is negative and would certainly affect your purchase decision. A moral hazard problem happens when someone takes unusually high risks because he/she has nothing to lose with the transaction.
B) What is the connection between the lack of information and the probability that a transaction will occur?
In perfect markets, information is perfect and therefore, the number of transactions maximizes. It is just common sense, imagine you want to buy a house, you will at least want to see the house and check all the documents. No one will buy a house just because a real estate agent tells them it is a nice house and it is located on a nice neighborhood.
Foxx Company incurs $240000 overhead costs each year in its three main departments, setup ($15000), machining ($165000), and packing ($60000). The setup department performs 40 setups per year, the machining department works 5000 hours per year, and the packing department packs 500 orders per year. Information about Foxx’s two products is as follows: Product A1 Product B1 Number of setups 20 20 Machining hours 1000 4000 Orders packed 150 350 Number of products manufactured 600 400 If machining hours are used as a base under traditional casting, how much overhead is assigned to Product A1 each year?
Answer:
Allocated MOH= $48,000
Explanation:
Giving the following information:
Estimated overhead= $240,000
Product A1 Product B1
Machining hours 1000 4000
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 240,000/5,000
Predetermined manufacturing overhead rate= $48 per machine-hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 48*1,000
Allocated MOH= $48,000
Problem 16-17 Firm Value [LO2] Change Corporation expects an EBIT of $25,000 every year forever. The company currently has no debt, and its cost of equity is 12 percent. The corporate tax rate is 22 percent. a. What is the current value of the company? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-1. Suppose the company can borrow at 6 percent. What will the value of the firm be if the company takes on debt equal to 50 percent of its unlevered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-2. Suppose the company can borrow at 6 percent. What will the value of the firm be if the company takes on debt equal to 100 percent of its unlevered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c-1. What will the value of the firm be if the company takes on debt equal to 50 percent of its levered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c-2. What will the value of the firm be if the company takes on debt equal to 100 percent of its levered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer and Explanation:
The computation is shown below:
a. The current value of the company is
As it is mentioned that the company has no debt that means it is unlevered firm that is equivalent to unlevered value of the company
Unlevered value of the firm = Vu
Vu = EBIT × (1 - tax rate ) ÷ unlevered Cost of Equity
= EBIT × (1 - tax rate ) ÷ R0
= $25,000 × (1 - 0.22 ) ÷ 12%
= $162,500
b-1.
The computation of the value of the firm in the case when the value of the firm is equivalent to 50% of unlevered value
VL = Vu + Borrowing × tax rate
where,
Debt = borrowing = 50% × unlevered value of company
Debt = borrowing = 50% x Vu
So,
VL = Vu + Borrowing x tax rate
VL = $162,500 + ($162,500 × 50%) × 22%
= $162,500 + $17,875
= $180,375
b-2.
The computation of the value of the firm in the case when the value of the firm is equivalent to 100% of unlevered value
Levered value of the firm VL
VL = Vu + Borrowing × tax rate
Debt = borrowing = 100% × unlevered value of company
Debt = borrowing = 100% × Vu
So,
VL = Vu + Borrowing x tax rate
= $162,500 + ($162,500 × 100%) × 22%
= $162,500 + 35,750
= $198,250
C.1.
The computation of the value of the firm in the case when the value of the firm is equivalent to 50% of the levered value
VL = Vu + Borrowing × tax rate
= Vu + (VL × 50%) × tax rate
VL = Vu + (VL × 50%) × 22%
VL = Vu + 0.11 VL
VL - 0.11 VL = 162,500
0.89 VL = 162,500
VL= 182,584.27
C.2.
The computation of the value of the firm in the case when the value of the firm is equivalent to 100% of the levered value
Levered value of the firm VL
VL = Vu + Borrowing x tax rate
VL = Vu + (VL × 100%) × tax rate
= Vu + (VL × 100%) × 22%
= Vu + 0.22 VL
VL - 0.22 VL = 162,500
0.78 VL = 162,500
VL= $208,333.33
The reality of consumer optimum means making choices in countless purchases in order to enjoy:______.
a. roughly the same utility per dollar spent.
b. the same level of satisfaction in each.
c. the same standard of living.
d. increasing degrees of satisfaction.
e. a balanced budget.
Answer:
a. roughly the same utility per dollar spent.
Explanation:
A consumer optimum can be defined as the combination of finished goods and services which typically maximizes satisfaction (utility) for the consumers of various goods and services at a specific income and product prices.
The reality of consumer optimum means making choices in countless purchases in order to enjoy roughly the same utility per dollar spent.
For example, a customer who wishes to obtain maximum satisfaction, utility or value for his or her money (dollar spent) may decide to buy a variety of goods such as milk, donuts, biscuits, chocolate, cheese etc
What is the present value of a perpetuity of $100 per year if the appropriate discount rate is 7%? If interest rates in general were to double and the appropriate discount rate rose to 14%, what would happen to the present value of the perpetuity? Ehrhardt, Michael C.. Corporate Finance: A Focused Approach (p. 187). Cengage Learning. Kindle Edition.
Answer:
As the interest rate doubles, the present value is the half.
Explanation:
Giving the following information:
Cf= $100
i= 0.07
i= 0.14
To calculate the present value of a perpetuity, we need to use the following formula:
PV= Cf/i
PV= present value
Cf= cash flow
i= interest rate
First perpetuity:
PV= 100/0.07
PV= $1,428.57
Second perpetuity:
PV= 100/0.14
PV= $714.286
As the interest rate doubles, the present value is the half.
Suppose that the election of a popular presidential candidate suddenly increases people’s confidence in the future. Use the model of aggregate demand and aggregate supply to analyze the effect on the economy
Answer:
The aggregate demand will increase.
Explanation:
The increase in people’s confidence that the future return will be good or higher then the people will increase their current spending. Thus, an increase in the current spending will result in the rise of aggregate demand. consequently, the aggregate demand curve will shift rightwards, and this forms a new equilibrium at a higher position. Resulting in increased price and increased quantity. Thus, in future, people will see faster economic growth.
Jackson company recorded the following cash transactions for the year:
Paid 135,000 for salaries
Paid $60,000 to purchase office equipment.
Paid $15,000 for utilities.
Paid $6,000 in dividends.
Collected $245,000 from customers.
What was Jackson’s net cash provided by operating activities?
Answer:
$95,000
Explanation:
Jackson's net cash provided by operating activities is calculated below;
Cash collected from customers
$245,000
Less : Salaries paid. ($135,000)
Less utilities ($15,000)
Net cash provided. $95,000
Suppose you are the money manager of a $2 million investment fund. The fund consists of four stocks with the following investments and betas. Stock Investment Beta A $ 200 000 1.50 B $ 300 000 -0.50 C $ 500 000 1.25 D $1000 000 O.75
If the market required rate of returns is 28 and the risk-free is 12%:
Calculate:
i. Stock A required rate of return
ii. Stock B required rate of return
iii. Stock C required rate of return
iv. Stock D required rate of return
v. What is the Fund’s required rate of return?
Answer:
5 ms
Explanation:
Which of the following is true regarding the payback method: 18 8 01:02:53 a. When a company is 'cash poor', a project with a short payback period but a low rate of return may be preferable to a project with a long payback period and a high rate of return b. The computation of the payback period is the project's initial investment divided by the present value of its net cash flows. c. A payback period of 35 means a company will earn 35 times its initial investment, d. The payback period increases as the cost of capital increases
Answer:
b. The computation of the payback period is the project's initial investment divided by the present value of its net cash flows.
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flow
Discounted payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative discounted cash flows
payback period decreases as cost of capital increases
A payback period of 35 means a company will recover the amount invested in a project in 35 years
Presented below is a partial amortization schedule for Premium Foods:
Period Issue Date Cash Paid Interest Expense Decrease in Carrying Value Carrying Value
$ 85,959
1 $ 2,900 $ 2,586 $ 314 85,645
2 2,900 2,578 322 85,323
1. Record the bond issue assuming the face value of bonds payable is $76,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Record the first interest payment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Please Note the table for better understanding
Period Issue Cash Paid Interest Expense Decrease in Carrying
Date Carrying Value Value
$85,959
1 $2,900 $2,586 $314 $85,645
2 $2,900 $2,578 $322 $85,323
1) Journal Entry Debit Credit
Cash A/C $85,959
To Premium on Bonds payable $9,959
To Bonds Payable $76,000
2) Journal Entry Debit Credit
Interest Expense $2,586
Premium on Bonds Payable $314
To Cash $2,900
Which of the following would NOT cause an increase demand for iPhones? Group of answer choices price of comparable Android phones increases price of iPhones decreases income of possible customers increases price of data plans decreases
Answer:
price of iPhones decreases
Explanation:
A decrease in price increases quantity demanded but does not increase demand.
iPhones and Android phones are substitute goods.
Substitute goods are goods that can be used in place of another good.
An increase in the price of androids increases the cost of androids. So, consumers would increases their demand for iPhones.
Because iPhone is assumed to be a normal good. An increase in the price of iPhones would increase the demand for the good.
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls
Data plans and iPhones are complement goods.
Complementary goods are goods that are consumed togethe
A decrease in the price of data plans would increase the demand for iPhones.
The balance sheet of ABC reports total assets of $1,500,000 and $1,700,000 at the beginning and end of the year, respectively. Net income and sales for the year are $240,000 and $2,000,000, respectively. What is ABC's profit margin (round to nearest whole percentage, just put in the number with no %)?
Answer: 12%
Explanation:
The Net Profit Margin refers to the percentage of Net Income from sales that a company got in the period of record. A higher margin is usually preferred to a lower one.
Profit margin ratio = Net income/ Sales
Profit margin ratio = 240,000 / 2,000,000
Profit margin ratio = 12%
Adam, Ben and Erica are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Adam $41,000, Ben $31,000 and Erica $20,000. The profit and loss sharing ratio has been 1:1:2 for Adam, Ben and Erica, respectively. The partnership has $72,000 cash, $40,000 non-cash assets, and $20,000 accounts payable. Requirement 1. Assuming the partnership sells the non-cash assets for $50,000, how much cash will each partner receive in final liquidation? Requirement 2. Assuming the partnership sells the non-cash assets for $25,000, how much cash will each partner receive in final liquidation?
Answer:
Adam = $41,000 , Ben = $31,000 , Erica =$20,000
Profit and loss sharing Ratio respectively =1:1:2
Requirement 1
Cash available $72,000
Add: Cash received from sale of $50,000
non-cash assets
$122,000
Less: Cash paid against account $20,000
receivables
Cash to be distributed $102,000
Distribution
Adam= $102,000 * 1/4 = $25,500
Ben = $102,000 * 1/4 = $25,500
Erica = $102,000 * 2/4 = $51,000
Requirement 2
Cash available $72,000
Add: Cash received from sale of $25,000
non-cash assets
$97,000
Less: Cash paid against account $20,000
receivables
Cash to be distributed $77,000
Distribution
Adam= $77,000 * 1/4 = $19,250
Ben = $77,000 * 1/4 = $19,250
Erica = $77,000 * 2/4 = $38,500
Rainbow Products is considering the purchase of a paint-making machine to reduce labor costs. The savings are expected to result in additional cash flows to Rainbow of $5000 per year. The machine costs $35,000 and is expected to last for 15 years. Rainbow has determined that the cost of capital for such an investment is 12%.
Instead of the service contract, Rainbow engineers have devised a different option to preserve and actually enhance the capability of the machine over time. By investing 20% of the annual cost savings back into new machine parts, the engineers can increase the cost savings at a 4% annual rate. For example, at the end of year one, 20% of the $5,000 cost savings is reinvested in the machine; the net cash flow is thus $4,000. Next year the cash flow from cost savings grows by 4% to $5,200 gross, or $4,160 net of the 20% investment. As long as the 20% reinvestment continues, the cash flows continue to grow at 4% in perpetuity. What should Rainbow do?
A. What is NPV?
B. What is IRR?
C. What is payback?
Answer:
In finance, the net present value or net present worth applies to a series of cash flows occurring at different times. The present value of a cash flow depends on the interval of time between now and the cash flow. It also depends on the discount rate. NPV accounts for the time value of money.
The internal rate of return is a measure of an investment’s expected future rate of return. As the IRR is an estimate of a future annual rate of return, IRR should not be confused with the actual achieved investment return of an historical investment.
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mark me as brainliesatABC reports net income and sales for the year of $65,000 and $1,300,000, respectively. Return on equity is 10%. What is ABC's average Stockholders' Equity for the year?
Answer:
ABC's average Stockholders' Equity for the year is $650,000
Explanation:
Return on Equity = Net income / Average Equity
Hence, average equity = 65,000 / 10%
= $650,000
"The current source format of a data file and the desired database file structure are specified to a utility, which then automatically reformats the data and stores it in the database." Which database utility performs the given function?
Answer:
Backup utility of the database
Explanation:
The backup utility of the database performs this function. A copy of data from a database that can be used to remake this data is what is referred to as a backup. It can be logical or physical. Using backup can help in the recovery of files and other documentations. Backup can be done on disk or offline on tape.
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.75 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. Investors require a return of 11 percent on the company's stock.
Required:
a. What is the current stock price?
b. What will the stock price be in 18 years?
Answer:
(A) $26
(B) $52.67
Explanation:
The Jackson Timberlake wardrobe corporation paid a dividend of $1.75 per share
The growth rate is 4%
= 4/100
= 0.04
The rate of return is 11%
= 11/100
= 0.11
(A) The current stock price can be calculated as follows
Current price= dividend ×(1+growth rate)/required return-growth rate
= $1.75×(1+0.04)/(0.11-0.04)
= 1.75× 1.04/0.07
= 1.82/0.07
= $26
(B) The amount of stock price in 18 years can be calculated as follows
= Current price × (1+growth rate)^18
= $26 × (1+0.04)^18
= $26 × 1.04^18
= $26 × 2.0258
= $52.67
Ethics is primarily concerned with what
Answer:
Ethics is based on or primarily concerned with ethical rules. Instead of being based on consequences, these rules are derived from logic, from reasoning, or from the nature of human being as such. ... The purpose of ethics is to develop the individual's moral/ethical character, or virtues.
Explanation:
Ethics is concerned with the moral values and rules.
What is Ethics?Ethics refers to the system of values being imparted by the family and teachers at the school level at the time of the young age. It is concerned what the discipline which decides what is wrong and what is right.
The term ethics is applied to the theory of moral values and principles. The rules are meant to be followed to sustain the life smoothly which is beneficial for the person living in the society.
Ethics is based on or is primarily concerned with ethical norms. In contrast to being based on outcomes, these laws are derived from logic, reasoning, or the character of mankind as a whole.
Therefore, it can be concluded that The moral principles and laws are what ethics is all about.
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