Answer:
1.Raghu start the business with three things i. e cash, goods, furniture etc. Something that come in the business is debited. All these things are done by the properitor. Hence all these things are goes to Capital account. JOURNAL ENTRY WILL BE!!!! Cash a / c . Dr. 80,000 Purchase a / c . Dr. 40,000 Furniture a / c . Dr 20,000 ..To Capital a/c........... 1,40,000 (being started business with cash, goods and furniture.)
2.The answer will be Rs.1800 Explanation: 2000^ * 10\%=200 2000-200=18003.Answer will be $7004.250005.5000 please mark as brainliestThe secret to effective sales is to have a
unique selling proposition.
good personality.
memorized pitch.
fantastic product.
Answer:
unique selling proposition.
Explanation:
Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research. Thus, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.
Generally, the secret to effective sales is to have a unique selling proposition that makes consumers patronize you.
11. (-/1 Points] DETAILS BRECMBC9 5.11.010.
MY NOTES
Set up and solve an equation for the following business situation.
Pitt's Pit Stop sold $16,003.50 worth of gasoline yesterday. Regular sold for $3.30 a gallon and premium sold for $3.45 a gallon. If the station sold 370 more gallons of regular than premium, answer the
following questions.
(a) How many gallons of each type of gasoline were sold?
regular
gal
premium
gal
(b) If the profit on regular gas is $0.15 per gallon and on premium is $0.18 per gallon, what was the station's total profit (in dollars)?
$
Answer:
2190 ; 2560 ;
$778.2
Explanation:
Total worth of gasoline sold = 16003.50
Cost of regular = 3.30
Cost of premium = 3.45
Let :
premium Gallon sold = x
Regular gallon sold = 370 + x
Hence, mathematically;
(3.45*x) + (3.30 * (x + 370)) = 16003.50
3.45x + 3.30x + 1221 = 16003.50
6.75x = 16003.50 - 1221
6.75x = 14782.5
x = 14782.5 / 6.75
x = 2190
Premium Gallon sold = 2190 gallons
Regular gallon sold = 2190 + 370 = 2560 gallons
Profit per regular gallon sold = $0.15
Progit per premium Gallon sold = $0.18
Total profit = (2190 * 0.18) + (2560 * 0.15) = $778.2
For Sanborn Co., sales is $1,000,000, fixed expenses are $300,000, and the contribution margin per unit is $60. What is the break-even point? g
Answer:
Break-even point in units= 5,000
Explanation:
Giving the following information:
Sales= $1,000,000
Fixed expenses= $300,000
Contribution margin per unit= $60
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 300,000 / 60
Break-even point in units= 5,000
You are given the following data Stock A Expected return 8.00% Standard deviation 23.00% Stock B Expected return 7.50% Standard deviation 33.00% The correlation of Stock A and Stock B is 0.05. What is the variance of risky portfolio P with 43% in Stock A and the rest in Stock B
Answer:
Variance of risky portfolio P = 4.61%
Explanation:
WA = Weight of stock A = 43%, or 0.43
WB = Weight of stock B = 1 - 0.43 = 0.57
SA = Standard deviation of stock A = 23%, or 0.23
SB = Standard deviation of stock B = 33%, or 0.33
Cab = Correlation of Stock A and Stock B = 0.05
Therefore, we have:
Variance of risky portfolio P = (WA^2 * SA^2) + (WB^2 * SB^2) + (WA * SA * WB * SB * Cab) = (0.43^2 * 0.23^2) + (0.57^2 * 0.33^2) + (0.43 * 0.23 * 0.57 * 0.33 * 0.05) = 0.0461, or 4.61%
MC Qu. 117 Cosi Company uses a job order costing... Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Cosi expects to incur $830,000 of overhead during the next period, and expects to use 53,000 labor hours at a cost of $10.00 per hour. What is Cosi Company's overhead application rate
Answer:
157%
Explanation:
Calculation to determine Cosi Company's overhead application rate
First step is to calculate Total DL Cost
Total DL Cost = 53,000 hours * $10/hr
Total DL Cost= $530,000
Now let determine the overhead application rate
OH rate = $830,000/$530,000*100
OH rate= 157%
Therefore Cosi Company's overhead application rate is 157%
You are selling an asset. you can earn an interest rate of 7% per yer on your savings. You receive the following two (risk less) offers:
Offer 1: receive $400,000 today
Offer 2: Receive $500,000 in 4 years
a. Which offer should you choose?
b. At what interest rate would you be indifferent between the two offers?
Answer:
Option 1
5.737126344%
Explanation:
to determine which option i would prefer today, i would need to determine the present value of offer 2
Present value is the sum of discounted cash flows
[tex]\frac{500,000}{1.07^{4} }[/tex] = $381,447.61
I would prefer the first option because its present value is greater than that of option 2
The interest rate that would make me indifferent between either options would be the interest at which the present value of $500,000 in 4 years is $400,000
$400,000 = [tex]\frac{500,000}{(1 + x)^{4} }[/tex]
$400,000[tex](1 + x)^{4}[/tex] = $500,000
500,000 / 400,000= (1 + x)^{4}
1.25 = (1 + x)^{4}
[tex]1.25^{0.25}[/tex] = 1 + x
x = 5.737126344%
Pretzelmania, Inc., issues 5%, 10-year bonds with a face amount of $68,000 for $68,000 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid annually on December 31.
Required:
Record the bond issue and first interest payment on June 30, 2021.
Answer:
Here the answer is given as follows,
A sole proprietorship is: Select one: A. the easiest type of business to set up B. the least profitable type of business to set up C. the most expensive type of business to set up D. the most difficult type of business to set up.
Answer:
it is an easiest type of business to set up because it requires small capital to start but has many disadvantages such as bearing all the risks alone.etc
Sebastian received a raise this year so his income climbed from $45,000 to $52,000. Last year Sebastian purchased 2 sunglasses. This year he has purchased 7 sunglasses. Assuming that all of the other things remain constant, what type of a good are sunglasses and what type of income elasticity of demand does Sebastian have
Answer:
normal good
elastic demand
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.
Income elasticity = percentage change in quantity demanded / percentage change in income
percentage change in quantity demanded = (7/2) - 1 = 250%
percentage change in income = (52,000 / 45,000) - 1 = 15.6%
250 / 15.6 = 16.07
If the absolute value of income elasticity of demand is greater than one, it means demand is elastic.
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls
Inferior goods are goods whose demand falls when income rises and increases when income falls.
The cost of preferred stock
Preferred stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. The following table lists various characteristics of preferred stock. Determine which of these characteristics is consistent with debt and which is consistent with equity.
Characteristics Debt Equity
Dividends are fixed
Usually has no specified maturity date
Consider the case of Tamin Enterprises:
At the present time, Tamin Enterprises does not have any preferred stock outstanding but is looking to include preferred stock in its capital structure in the future. Tamin has found some institutional investors that are willing to purchase its preferred stock issue provided that it pays a perpetual dividend of $11 per share. If the investors pay $97.95 per share for their investment, then Tamin's cost of preferred stock (rounded to four decimal places) will be:_____.
Answer:
Dividends are fixed ⇒ Debt
Preferred dividends are fixed much like the interest payments made on debt which makes this a characteristic of debt.
Usually have no specified maturity date ⇒ Equity
Equity does not have an expiration or maturity date and preferred shares share this same characteristic.
Cost of preferred stock.
The value of a Preferred stock is calculated by the formula:
Price = Dividend / Cost of preferred stock
97.95 = 11 / Cp
97.95 * Cp = 11
Cp = 11/ 97.95
= 11.23%
An outside supplier offers to provide Factor with all the units it needs at $44.45 per unit. If Factor buys from the supplier, the company will still incur 70% of its overhead. Factor should choose to:
Answer:
Factor must opt to agree as well as purchase the deal from the provider. A further explanation is provided below.
Explanation:
The given problem seems to be incomplete. Find the attachment of the complete question below.
Given:
Direct material,
= $8.70
Direct labor,
= 24.70
Overhead,
= 43.50
Now,
If the offer is accepted, the cost per unit will be:
= [tex]44.45 + (43.50\times 70 \ percentage)[/tex]
= [tex]44.45 + 30.45[/tex]
= [tex]74.90[/tex] ($)
Thus the above is the correct answer.
If there is a greater quantity supplied than the quantity demaded ( an excess supply of a good or service) you are most likely dealing with:_______.
A- price ceiling set below the equilibrium price
B- price floor set above equilibrium price
Which of these is NOT a barrier to trade?
a) Tariff
b) Quota
C) All the options are correct
D) Embargo
Answer:
All the options are correct
Splish Brothers Inc. uses a perpetual inventory system. Data for product E2-D2 include the following purchases.
Date Number of Units Unit Price
May 7 105 $7
July 28 63 18
On June 1, Splish Brothers sold 55 units, and on August 27, 84 more units. Prepare the perpetual inventory schedule for the above transactions using moving average cost.
Answer:
Splish Brothers Inc.
Perpetual Inventory Schedule using moving average costs:
Date Description Number Average Cost Total Cost Cost
of Units Balance
May 7 Purchase 105 $7 $735 $735
June 1 Sales (55) $7 385 350
July 28 Purchase 63 $18 1,134 1,484
August 27 Sales (84) $13.1327 1,103 381
Explanation:
a) Data and Calculations:
Date Number of Units Unit Price Total Costs
May 7 Purchase 105 $7 $735
June 1 Sales (55) $7 385
July 28 Purchase 63 $18 1,134
August 27 Sales (84) $13.1327 1,103
Cost of goods sold = $1,488 ($385 + $1,103)
Ending inventory = $381
A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $22,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $445. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense
Answer:
The appropriate answer is "$22,305".
Explanation:
The given values are:
Estimated uncollectible,
= $22,750
Credit balance in allowance,
= $445
Now,
The bad debt expense will be:
= [tex]Estimated \ uncollectible-Credit \ balance \ in \ allowance[/tex]
By substituting the values, we get
= [tex]22750-445[/tex]
= [tex]22305[/tex] ($)
Choose the correct objective statement for this task.
Suppose that you have been given the task of organizing a graduation open house party for your younger brother who is graduating from high school.
a. To throw a graduation party Saturday afternoon after graduation for 50 guests, that provides ample entertainment and food, and allows my younger brother time to socialize with all the guests, at a cost of $400 or less, and all guests will be pleased with the party.
b. To throw a graduation party.
c. To throw a graduation party Saturday afternoon after graduation for 50 guests, that provides ample entertainment and food, and allows my younger brother time to socialize with all the guests.
d. To throw a graduation party Saturday afternoon after graduation for 50 guests, that provides ample entertainment and food, and allows my younger brother time to socialize with all the guests, at a cost of $400 or less.
Answer:
The correct objective statement for this task is:
b. To throw a graduation party.
Explanation:
Option b is the correct answer because it is concise and straight to the point. It does not start enumerating unnecessary details about the graduation party. Like a good objective statement, option b focuses the reader's attention to the main purpose of the task at hand. This is not so with options a, c, and d, which added details that were not covered by the task description.
I am buying a firm with an expected perpetual cash flow of $1,000 but am unsure of its risk. If I think the beta of the firm is 0, when the beta is really 1, how much more will I offer for the firm than it is truly worth? Assume the risk-free rate is 4% and the expected rate of return on the market is 10%. (Input the amount as a positive value.)
Answer:
$15,000
Explanation:
Value of a perpetuality = cash flow / r
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
4 + 0 (10 - 4) = 4
1,000/ 0.04 = 25,000
4 + 1 (10 - 4) = 10
1000 / 0.1 = 10,000
25,000 - 10,000 = 15,000
Jake lives in Detroit and runs a business that sells boats. In an average year, he receives $722,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. He owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Jake does not operate this boat business, he can work as a paralegal, receive an annual salary of $21,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. No other costs are incurred in running this boat business.
Identify each of Felix’s costs in the following table as either an implicit cost or an explicit cost of selling guitars.
Implicit Cost Explicit Cost
The wholesale cost for the guitars that Felix pays the manufacturer
The rental income Felix could receive if he chose to rent out his showroom
The salary Felix could earn if he worked as a paralegal
The wages and utility bills that Felix pays
Complete the following table by determining Felix’s accounting and economic profit of his guitar business. Profit (Dollars)Accounting Profit Economic Profit
Answer:
Explicit Cost
The wholesale cost for the guitars that Felix pays the manufacturerThe wages and utility bills that Felix paysImplicit Cost
The salary Felix could earn if he worked as a paralegal The wages and utility bills that Felix paysAccounting profit = $32,000
Economic profit = $9,000
Explanation:
Accounting profit= total revenue - explicit cost
Total revenue =price x quantity sold
Explicit cost includes the amount expended in running the business.
They include rent , salary and cost of raw materials
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
This morning you purchased one share of stock for $14. The stock pays $.20 per share each quarter as a dividend. What must the stock price be one year from now if you want to earn a total return of 12 percent for the year
Answer:
$14.88
Explanation:
The computation of the stock price is given below:
A total return of 12% means that
= 0.12 × 14
= $1.68 in a year.
Now
The total dividend payments for 4 quarters is
= 0.2 × 4
= $0.8.
Now the price of the stock should increase by
= 1.68 - 0.8
= 0.88
So the stock price one year from now is
= 14 + 0.88
= $14.88
On January 1, 2013, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,546. During the first 11 months of the year, bad debts expense of $21,399 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2013, was $9,859. Required: (a) What was the total of accounts written off during the first 11 months
Answer: $25,086
Explanation:
The bad debt written off is calculated by:
= Opening balance in Allowance for bad debts account + Bad debt expense - Closing balance in Allowance for bad debt
= 13,546 + 21,399 - 9,859
= $25,086
Nadal Inc. had two temporary differences at the end of 2013. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Nadal's accounting department has developed a schedule of future taxable and deductible amounts related to these temporary differences as follows:
Taxable amounts:
2014 $40,000
2015 $50,000
2016 $60,000
2017 $80,000
Deductible amounts:
2014 $0
2015 $(15,000)
2016 $(19,000)
2017 $0
As of the beginning of 2013, the enacted tax rate is 34% for 2013 and 2014, and 38% for 2015-2018. At the beginning of 2013, the company had no deferred income taxes on its balance sheet. Taxable income is expected in all future years.
A. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2013.
B. Indicate how deferred income taxes would be classified on the balance sheet at the end of 2013.
Answer:
72,880
Explanation:
Given:
Taxable amounts are as follows,
2014$40,000
2015$50,000
2016$60,000
2017$80,000
Deducible amounts are as folllows,
2014$0
2015$(15,000)
2016$(19,000)
2017$0
Solution:
Taxable amount is as follows,
2014$40,000-34%-13,600
2015$35,000-38%-13,300
2016$41,000-38%-15,580
2017$80,000-38%-30,400
Therefore the deferred liability 72,880
To income tax provision 72,880
This would be shown as deferred tax liability under the long term liabilities head with amount of $72,880
Poe Company is considering the purchase of new equipment costing $81,500. The projected net cash flows are $36,500 for the first two years and $31,500 for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.
Answer:
$27,028.45
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Cash flow in year 0 = $-81,500
Cash flow in year 1 and 2 = $36,500
Cash flow in year 3 and 4 = $31,500
I - = 10%
NPV = $27,028.45
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
The contribution margin ratio is interpreted as the percent of: Multiple choice question. each variable cost dollar that remains after deducting fixed costs each sales dollar that remains after deducting fixed costs each sales dollar that remains after deducting unit variable cost
Answer: each sales dollar that remains after deducting unit variable cost
Explanation:
The contribution margin ratio is interpreted as the percent of each sales dollar that remains after the deduction of unit variable cost.
The contribution margin ratio refers to the difference between the sales that a company makes and its variable costs which is expressed as a percentage. The ratio simply indicates the amount of money that is available to cover the fixed costs.
A US Treasury is quoted at $137.111 based on $100 par. Today is 12/31/2020. Assume that transaction date and settlement date is the same. The coupon rate is 8%. The bond has 30-year maturity. What is the yield-to-maturity
Answer: 5.46%
Explanation:
You can use excel to solve for this.
Number of periods = 30
Coupon = Payment = 8% * 100 = $8
PV = $137.11
FV = $100 par value
Do this and the YTM would be: 5.46%
This makes sense because the bond is trading at a premium which means that the YTM is less than the coupon rate.
g A person with a diminishing marginal utility of income: Group of answer choices will be risk neutral will be risk averse will be risk loving
Answer: Risk averse
Explanation:
A person with a diminishing marginal utility of income will derive less utility from income as income increases. A risk averse person is one who would rather avoid risk but still prefers a high income.
Such a person will have a diminishing marginal utility in income because income increases more when there is more risk. A risk averse person does not want that risk and so will go for a lower income which means that they don't want more income as it is riskier to them.
Suppose there is a simple one good economy that only produces spinning rims. In 2015, the economy was able to produce 1 million sets of spinning rims at an amazing price of $500 per set. In 2016, the economy was able to produce 1 million sets of spinning rims at a price of $1,000 per set. By what amount did real GDP increase between 2015 and 2016 in the simple one good economy
Answer: 0
Explanation:
Firstly, we will calculate the nominal value in 2015 which will be:
= $500 x 1 million
= $500 million
The nominal value in 2016 will be:
= $1000 x 1 million
= $1 billion
Real GDP will be the price of the base year multiplied by the quantity of the current year which will be:
= $500 million x 1 million sets
= $500 million
Therefore, the increase in real GDP is zero.
Microhard has issued a bond with the following
Par
Time to maturity
Coupon rate
Semiannual payments
If a firm has invested in corporate bonds, it may engage in a financial futures contract in order to protect itself from :___________
a. declining interest rates.
b. rising interest rates.
c. inflation.
d. changes in hedging activities.
Answer:
b. rising interest rates.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.
Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.
The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.
In Economics, bonds could either be issued at discount or premium.
Generally, if a business firm has invested in corporate bonds, it may engage in a financial futures contract in order to protect itself from rising interest rates.
Market efficiency is probably the most controversial concept in finance. Even recent winners of the Nobel Prize in Economics come down on opposite sides of the issue. Nonetheless, it is important for you to grapple with this idea. It has very important practical implications for investment decisions, including (especially) for your personal investment decision. In particular, should you pursue active or passive strategies
Answer:
Active strategies should be pursued when the market is more volatile, with larger fluctuations over a shorter period of time, that require a more active management of a portfolio, in order to take advantage of fast changing positions in different assets, and also in order to avoid possible losses due to staying in particular positions for too long.
Passive strategies is more long-term focused, and should be pursued when the economy is more stable. Passive strategies should be analyzed carefully before execution because once the passive investment is made, the idea is to keep the position for a long period of time instead of buying and selling constantly as in a active strategy.
To obtain an FHA-insured loan, the buyers will have to pay a MIP of 1.75 points, which will be financed into the loan. What will be the amount of their loan if FHA insures 96.5% of the appraised value and this property appraises for $210,000 (the maximum loan the FHA will insure in their area is $271,000)?
Answer:
$206,196.38
Explanation:
Calculation to determine what will be the amount of their loan
Loan Amount=($210,000 × 0.965)+[($210,000 × 0.965)×0.0175]
Loan Amount=$202,650+ ($202,650 × 0.0175)
Loan Amount=$202,650 + $3,546.38
Loan Amount= $206,196.38
Therefore What will be the amount of their loan is $206,196.38