3. What role did CDS play in the financial crisis?

Answers

Answer 1

Just like an insurance policy, a CDS allows purchasers to buy protection against an unlikely event that may affect the investment. ... During the financial crisis of 2008, the value of CDS was hit hard, and it dropped to $26.3 trillion by 2010 and $25.5 trillion in 2012.


Related Questions

Is a measurement of the way suppliers respond to a change in price

Answers

Answer:

Elasticity

Explanation:

Elasticity of supply is a measure of the way suppliers respond to a change in price.  

Good Luck!

Accounting records for NIC Enterprises (NICE) for September show the following (each entry is the total of the actual entries for the account for the month). Account Titles Debit Credit Work-in-Process Inventory (Direct Labor) 100,000 Wages Payable 100,000 Direct Materials Inventory 1,112,000 Accounts Payable 1,112,000 Finished Goods Inventory 1,770,000 Work-in-Process Inventory 1,770,000 Cost of Goods Solda 1,710,000 Finished Goods Inventory 1,710,000 aThis entry does not include any over- or underapplied overhead. Over- or under applied overhead is written off to Cost of Goods Sold once for the month. For September, the amount written off was 3 percent of overhead applied for September. Overhead is applied on the basis of direct labor costs. The Work-in-Process ending account balance on September 30 was 170 percent of the beginning balance. The direct material ending inventory balance on September 30 was $36,000 less than the beginning balance. The finished goods beginning balance on September 1 was $203,000. The September income statement shows revenues of $2,850,000 and a gross profit of $1,167,000. Required: a. What was the Finished Goods inventory on September 30

Answers

Answer: $263,000

Explanation:

Based on the information given, the finished goods inventory on September 30 will be calculated as:

= Begining inventory + Transfers in - Transfers out.

= $203000 + $1,770,000 - $1,710,000

= $263,000

Therefore, finished goods inventory on September 30 was $263,000

Information from the records of the Abel Corporation for July 2018 was as follows:
Sales $1,230,000
Selling and administrative expenses 210,000
Direct materials used 264,000
Direct labor 300,000
Factory overhead * 405,000
*variable overhead is $205,000, fixed overhead is $200,000
Inventories
July 1, 2018 July 31, 2018
Direct materials $36,000 $42,000
Work in process 75,000 84,000
Finished goods 69,000 57,000
The total product cost is:_______.
a. $969,000
b. $1,179,000
c. $764,000
d. $615,000

Answers

Answer:

a. $969,000

Explanation:

Calculation for what The total product cost is

TOTAL PRODUCT COST

Direct Material Used $264,000

Direct Labor $300,000

Factory Overhead $405,000

Total Product Cost $ 969,000

($264,000+$300,000+$405,000)

Therefore The total product cost is $ 969,000

Quark Inc. just began business and made the following four inventory purchases in June: June 1 150 units $ 825 June 10 200 units 1,120 June 15 200 units 1,140 June 28 150 units 885 $3,970 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is

Answers

Answer:

$1,170

Explanation:

The amount allocated to ending inventory for June using FIFO inventory method is computed as;

= $885 + [($1,140 ÷ 200) × (200 - 150]

= $88 5 + ($5.7 × 50)

= $885 + $285

= $1,170

As a supervisor you observe a female member of your staff is being harassed
both verbally and at times physically. She seems to disapprove but does not
make any reports. How would you go about dealing with this situation?​

Answers

Answer:

Pull into the office and have a talk about it, then talk about ways to deal with it

Explanation:

Sometimes in these situations they have been traumatized by the harassment to  report it (im saying she may be too scared to report it).

define investment bank.​

Answers

Answer:

a bank that purchases large holdings of newly issued shares and resells them to investors.

Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 2,000,000 shares of no-par common stock were authorized; 750,000 shares were issued on January 1, 2019, at $35 per share. 800,000 shares of $100 par value, 7.5% cumulative, preferred stock were authorized; 540,000 shares were issued on January 1, 2019, at $105 per share. No dividends were declared or paid during 2019 or 2020. However, on December 22, 2021, the board of directors of Permabilt Corp. declared dividends of $15,000,000, payable on February 12, 2022, to holders of record as of January 8, 2022.
Prepare the journal entries to record each of the below transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
The issuance of common stock and preferred stock on January 1, 2019.
The declaration of dividends on December 22, 2021.
The payment of dividends on February 12, 2022.
b. Of the total amount of dividends declared during 2021, how much will be received by preferred shareholders?
c. Calculate the common stock dividends per share declared during 2021. (Round your answer to 2 decimal places.)

Answers

Answer:

Permabilt Corp.

a. Journal Entries:

Debit Cash $26,250,000

Credit Common stock $26,250,000

To record the issuance of 750,000 shares at $35 per share.

2. Debit Cash $56,700,000

Credit Preferred stock $54,000,000

Credit Additional paid-in capital- preferred stock $2,700,000

To record the issuance of 540,000 shares at $105 per share.

3. Debit Cumulative preferred stock dividends $12,150,000

Debit Common stock $2,850,000

Dividends Payable $15,000,000

To record the declaration of dividends.

b. Preferred shareholders will receive $12,150,000 out of the $15 million declared dividends during 2021 ($4,050,000 for each year)

c. Common stock dividends per share = $3.80 ($2,850,000/750,000)

Explanation:

a) Data and Calculations:

Authorized share capital:

Common stock = 2,000,000 shares of no-par value

7.5% cumulative, preferred stock = 800,000 shares at $100 par value

Issued share capital:

Common stock, 750,000 at $35 = $26,250,000

Cash $26,250,000 Common stock $26,250,000

Preferred stock, 540,000 at $105 = $56,700,000

Cash $56,700,000 Preferred stock $54,000,000 Additional paid-in capital $2,700,000

Declared Dividends = $15,000,000

Cumulative preferred stock dividends for 3 years

= $12,150,000($4,050,000 * 3)

Common stock = $2,850,000 ($15,000,000 - $12,150,000)

The Bassos contracted with Dierberg to purchase her property for $1,310,000. One term of the contract stated, "[t]he sale under this contract shall be closed . . . at the office of Community Title Company. . . on May 16, 1988 at 10:00 am. . . . Time is of the essence of this contract." After forming the contract, the Bassos assigned their right to purchase Dierberg’s property to Miceli and Slonim Development Corp. At 10:00 am on May 16, 1988, Dierberg appeared at Community Title for closing. No representative of Miceli and Slonim was there, nor did anyone from Miceli and Slonim inform Dierberg that there would be any delay in the closing. At 10:20 am, Dierberg declared the contract null and void because the closing did not take place as agreed, and she left the title company office shortly thereafter. Dierberg had intended to use the purchase money to close another contract to purchase real estate later in the day. At about 10:30 AM, a representative of Miceli and Slonim appeared at Community Title to begin the closing, but the representative did not have the funds for payment until 1 :30 PM. Dierberg refused to return to the title company, stating that Miceli and Slonim had breached the contract by failing to tender payment on time. She had already made alternative arrangements to finance her purchase of other real estate to meet her obligation under that contract. Miceli and Slonim sued Dierberg, claiming that the contract did not require closing exactly at 10:00 AM, but rather some time on the day of May 16. Will they prevail?

Answers

Answer:

Certainly, they cannot prevail.  The contract terms stated clearly that "time is of the essence of this contract."  The Bassos and Miceli and Slonim Development Corp did not actually respect this contract term.

The contract was expected to have closed at 10:00 am on May 16, 1988, and not after.  By the time that Dierberg left the venue, the contract should have been finalized.  Alternatively, if there were unseen delays, Dierberg should have been informed at least 30 minutes before 10:00 am.

Explanation:

The argument by Miceli and Slonim does not hold water.  The contract did require closing exactly at 10:00 AM, and not some time on May 16.  In my considered opinion, suing Dierberg is a waste of court time and process.

On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 22 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $4.20 per share. Required: 1. Determine the total compensation cost pertaining to the RSUs. 2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2021. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2022. 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023. 6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.

Answers

Answer:

1.$92.4million

2. January 1, 2021

No journal entry

3. December 31, 2021

December 31, 2022

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

4. December 31, 2022

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

5. December 31, 2023

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

6. December 31, 2023

Dr Paid in capital -restricted stock $92.4million

Cr Common stock $22 million

Cr Paid in capital-excess of par $70.4 million

Explanation:

1. Calculation to determine the total compensation cost pertaining to the RSUs

Total compensation cost =$4.20 fair value per share × 22 million shares represented by RSUs granted

Total compensation cost=$92.4million

Therefore the total compensation cost pertaining to the RSUs is $92.4million

2. Preparation of the appropriate journal entry to record the award of RSUs on January 1, 2021

January 1, 2021

No journal entry

3.Preparation of the appropriate journal entry to record compensation expense on December 31, 2021

December 31, 2021

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

($92.4million/3 years)

4. Preparation of the appropriate journal entry to record compensation expense on December 31, 2022

December 31, 2022

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

($92.4million/3 years)

5. Preparation of the appropriate journal entry to record compensation expense on December 31, 2023.

December 31, 2023

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

($92.4million/3 years)

6. Preparation of the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.

December 31, 2023

Dr Paid in capital -restricted stock $92.4million

Cr Common stock $22 million

Cr Paid in capital-excess of par $70.4 million

($92.4million-$22 million)

Record the following transactions on the books of Wildhorse Co. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(a) On July 1, Wildhorse Co.sold merchandise on account to Stacey Inc. for $25,000, terms 3/10, n/30.
(b) On July 8, Stacey Inc. returned merchandise worth $2,500 to Wildhorse Co..
(c) On July 11, Stacey Inc. paid for the merchandise.
No Date Account Titles and Explanation Debit Credit
a
b
c
c) July 11

Answers

Answer and Explanation:

The journal entries are shown below:

a. Account receivable Dr $25,000

           To Sales revenue $25.000

(Being goods sold on account)

b. Sales returns & allowance Dr $2,500

        To Account receivable $2,500

(being returned goods is recorded)

c. Cash Dr $21,825

   Sales discount Dr ($22,500 × 3%) $675

          To Account receivable ($25,000 - $2,500) $22,500

(being cash is recorded)

The cash records of Downs Company show the following.
For July:
1. The June 30 bank reconciliation indicated that deposits in transit total $580. During July, the general ledger account Cash shows deposits of $16,900, but the bank statement indicates that only $15,600 in deposits were received during the month.
2. The June 30 bank reconciliation also reported outstanding checks of $940. During the month of July, Downs Company books show that $17,500 of checks were issued, yet the bank statement showed that $16,400 of checks cleared the bank in July.
For September:
3. In September, deposits per bank statement totaled $25,900, deposits per books were $26,400, and deposits in transit at September 30 were $2,200.
4. In September, cash disbursements per books were $23,500, checks clearing the bank were $24,000, and outstanding checks at September 30 were $2,100.
There were no bank debit or credit memoranda, and no errors were made by either the bank or Downs Company.
Answer the following questions.
(a) In situation 1, what were the deposits in transit at July 31?
The deposits in transit at July 31 $Image for Exercise 7-10 The cash records of Downs Company show the following. For July: 1. The June 30 bank reconcilia
(b) In situation 2, what were the outstanding checks at July 31?
The outstanding checks at July 31 $Image for Exercise 7-10 The cash records of Downs Company show the following. For July: 1. The June 30 bank reconcilia
(c) In situation 3, what were the deposits in transit at August 31?
The deposits in transit at August 31 $Image for Exercise 7-10 The cash records of Downs Company show the following. For July: 1. The June 30 bank reconcilia
(d) In situation 4, what were the outstanding checks at August 31?
The outstanding checks at August 31 $Image for Exercise 7-10 The cash records of Downs Company show the following. For July: 1. The June 30 bank reconcilia

Answers

Answer:

(a) The deposits in transit at July 31 = $1,880

(a) The deposits in transit at July 31 = $2,040

(c) The deposits in transit at August 31 = $1,700

(d) The deposits in transit at August 31 = $1,600

Explanation:

(a) In situation 1, what were the deposits in transit at July 31?

This can be calculated as follows:

The deposits in transit at July 31 = $580 + $16,900 - $15,600 = $1,880

(b) In situation 2, what were the outstanding checks at July 31?

This can be calculated as follows:

The outstanding checks at July 31 = $940 + $17,500 - $16,400 = $2,040

(c) In situation 3, what were the deposits in transit at August 31?

This can be calculated as follows:

The deposits in transit at August 31 = $25,900 + $2,200 - $26,400 = $1,700

(d) In situation 4, what were the outstanding checks at August 31?

This can be calculated as follows:

The deposits in transit at August 31 = $23,500 + $2,100 - $24,000 = $1,600

What tab should you choose to locate the spelling and grammar check tools?
Home
Layout
Review
View

Answers

Answer:

Review

Explanation:

The correct answer is - Review

Reason -

From the Review tab, click the Spelling & Grammar command.

The Spelling and Grammar pane will appear on the right.

Answer:

it is C

Explanation:

6.
Jane's Juice Bar has the following cost schedules:
Quantity
Variable Cost
Total Cost
O vats of juice
1
2.
3
4
5
$ 0
10
25
45
70
100
135
$ 30
40
55
75
100
130
165
6
a. Calculate average variable cost, average total
cost, and marginal cost for each quantity.
b. Graph all three curves. What is the
relationship between the marginal-cost
curve and the average-total-cost curve?
Between the marginal-cost curve and the
average-variable-cost curve? Explain.

Answers

Answer:

This may help you to solve it

Zeibart Company purchases equipment for $225,000 on July 1, 2016, with an estimated useful life of 10 years and expected salvage value of $25,000. Straight-line depreciation is used. On July 1, 2020, economic factors cause the market value of the equipment to decline to $90,000. On this date, Zeibart examines the equipment for impairment and estimates $125,000 in future cash inflows related to use of this equipment.

Required:
a. Is the equipment impaired at July 1, 2020?
b. If the equipment is impaired on July I, 2020, compute the impairment loss and prepare a journal entry to record the loss.

Answers

Answer:

a. Yes, the equipment is impaired at July 1, 2020.

b. Impairment loss is $20,000. And the journal entries are as follows:

Debit Impairment loss for $20,000

Debit Accumulated depreciation for $80,000

Credit Equipment for $100,000

Explanation:

a. Is the equipment impaired at July 1, 2020?

This can be determined as follows:

Annual depreciation = (Cost - Salvage value) / Estimated useful life = ($225,000 - $25,000) / 10 = $20,000

Accumulated depreciation till July 1, 2020 = Annual depreciation * Number of years from July 1, 2016 to July 1, 2000 = $20,000 * 4 = $80,000

Net book value at July 1, 2020 = Cost - Accumulated depreciation till July 1, 2020 = $225,000 - $80,000 = $145,000

Equipment recoverable amount = Estimated future cash inflows related to use of the equipment = $125,000

Since the net book value of $145,000 is greater than the recoverable amount of the equipment of $125,000, this implies that the equipment is impaired at July 1, 2020.

b. If the equipment is impaired on July I, 2020, compute the impairment loss and prepare a journal entry to record the loss.

Accumulated depreciation till July 1, 2020 = $80,000

Estimated future cash inflows related to use of the equipment = $125,000

Fair market value = $90,000

Recoverable amount = Higher of estimated future cash inflows related to use of the equipment or Fair market value = $125,000

Net book value at July 1, 2020 = $145,000

Impairment loss = Net book value at July 1, 2020 - Recoverable amount = $145,000 - $125,000 = $20,000

The journal entries will then look as follows:

Date                  Details                                     Debit ($)         Credit ($)      

01 Jul 2020      Impairment loss                       20,000

                         Accumulated depreciation     80,000

                             Equipment                                                 100,000

                         (To record impairment loss.)                                                

To purchase a used automobile, you borrow $10,000 from Loan Shark Enterprises. They tell you the interest rate is 1% per month for 35 months. They also charge you $200 for a credit investigation, so you leave with $9,800 in your pocket. The monthly payment they calculated for you is $385.71/month.
If you agree to these terms and sign their contract, what is the actual APR (annual percentage rate) that you are paying?

Answers

Answer:

The actual APR (annual percentage rate) that you are paying is 12.69%.

Explanation:

The actual annual percentage rate (APR) can be calculated using the Annual Percentage Rate (APR) formula as

follows:

APR = (((Fees + Interest accrued) / Principal / n) * Number of months in a year) * 100 ……………… (1)

Where;

APR = ?

Fees = Credit investigation charged = $200

Principal = Amount borrowed = $10,000

Total accrued amount = Principal * (1 + (Monthly interest rate * Number of months of loan tenure)) = $10,000 * (1 + (1% * 35)) = $13,500

Interest accrued = Total accrued amount - Principal = $13,500 - $10,000 =$3,500

n = Number of months of loan term = 35

Number of months in a year = 12

Substituting the values into equation (1), we have:

APR = (((200 + 3500) / 10000 / 35) * 12) * 100

APR = 12.69%

Therefore, the actual APR (annual percentage rate) that you are paying is 12.69%.

1. One of the most important assets of any organization is its data (information). This asset is used for two purposes: operational record keeping and analytical decision making. We capture data in the operational systems; and we analyze data in the data warehousing and business intelligence (DW/BI) systems. According to the Kimball Group, what are the four components of the DW/BI Architecture

Answers

Answer:

1. Operational source systems

2. ETL

3. Presentation area to Support BI

4. BI applications

Explanation:

1. Operational source systems:

These systems here capture the transactions of the business. The main objectives are to process performance as well as availability.

2. ETL systems:

these stands for extract, transformation and load systems.

the extract , has to do with getting the data to be in the warehouse environment. copying it into the Extraction, transformation and the load system in order for it to be be manipulated further.

transformation, this has to do with data cleansing, data combination from different sources and removing duplications from the data.

loading is the last step of ETL, and it has to do with loading data into the target models.

3. Presentation area to Support BI

BI stands for business intelligence. the DW-BI area is where organization, and storage of data is done by . The presentation area should have detailed data, and also atomic data. Data in this are should be presented and stored in schemas that are dimensional.

4. BI applications

the business application areas are the different abilities offered to the users on the presentation area for them to make analytical decisions.

describe how posts on social media can portray poor ethics to an employer. (answer in a complete sentence)

Answers

Answer:

Posts on social media can portray poor ethics to an employer, because if you post something that goes against what they work for or towards it can get in the way of what they believe!

Explanation:

Hope this helps! :)

You own a house that you rent for $1,275 per month. The maintenance expenses on the house average $235 per month. The house cost $226,000 when you purchased it 4 years ago. A recent appraisal on the house valued it at $248,000. If you sell the house you will incur $19,840 in real estate fees. The annual property taxes are $2,850. You are deciding whether to sell the house or convert it for your own use as a professional office. What value should you place on this house when analyzing the option of using it as a professional office?

Answers

Answer: $228,160

Explanation:

The value that should be placed on this house when analyzing the option of using it as a professional office will be the value of the net proceeds from selling the house and this will be:

= Value of house - Real estate fees

= $248000 - $19840

= $228,160

Therefore, the value that should be place on this house when analyzing the option of using it as a professional office is $228,160

In 2018, the Orange Furniture Store, an accrual method sole proprietorship, sold furniture on credit for $1,000 to Sammy. The cost of the furniture was $600. In 2019, Orange took a bad debt deduction for the $1,000. In 2020, Sammy inherited some money and paid Orange the $1,000 he owed. Orange's owner was in the 35% marginal tax bracket in 2018, the 12% marginal tax bracket in 2019, and the 35% marginal tax bracket in 2020. Orange Furniture must include $fill in the blank 4bc14b03ef8bfd3_1 in gross income as the recovery of a prior deduction. The timing of the income and deductions cost Orange $fill in the blank 4bc14b03ef8bfd3_2 . b. In 2019, Marvin, a cash basis taxpayer, took a $2,000 itemized deduction for state income taxes paid; the deduction was not limited by the SALT cap. This increased his itemized deductions to a total that was $800 more than the standard deduction. In 2020, Marvin received a $1,500 refund when he filed his 2019 state income tax return. Marvin was in the 12% marginal tax bracket in 2019 but was in the 35% marginal tax bracket in 2020. How much must Marvin include in his gross income for 2020

Answers

Answer:

1a. $230

1b. $800

Explanation:

Calculation to determine The timing of the income and deductions cost Orange

Using this formula

Timing of the income and deductions cost Orange=(Marginal tax bracket in 2018-Marginal tax bracket in 2019)×Gross income

Let plug in the formula

Timing of the income and deductions cost Orange= (0.35 − 0.12) × $1,000

Timing of the income and deductions cost Orange=0.23×$1,000

Timing of the income and deductions cost Orange= $230

Therefore the Timing of the income and deductions cost Orange will be $230

1b. Calculation to determine How much must Marvin include in his gross income for 2020

Based on the information given the amount that Marvin must include in his GROSS INCOME for the year 2020 is the refund amount of $800 which represent the amount we were told increased his itemized deductions reason been that a tax benefit amount was received for the deduction in the year 2019 while on the other hand the refund amount of $700 that was remaining which is calculated as ($1,500-$800) will not be included in Marvin GROSS INCOME reason been that it does not have any tax benefit.

Therefore The Amount that Marvin must include in his gross income for 2020 is $800

To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential. For example: • A bond’s is generally $1,000 and represents the amount borrowed from the bond’s first purchaser. • A bond issuer is said to be in if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue’s restrictive covenants. • A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a . • A bond’s gives the issuer the right to call, or redeem, a bond at specific times and under specific conditions. Suppose you read an article about the Golden Gate Bridge and Highway District bonds. It includes the following information:esvoe37f387cf9b3627f11119053e024693f8affde5624e3d681c11860b391bb47ca1eovse What is the coupon interest rate of this bond

Answers

Answer: See explanation

Explanation:

A bond’s (face value) is generally $1,000 and represents the amount borrowed from the bond’s first purchaser.

A bond issuer is said to be in (default) if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue’s restrictive covenants.

A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a (sinking fund provision).

A bond’s (call provision) gives the issuer the right to call, or redeem, a bond at specific times and under specific conditions.

The face value is the dollar value of a security, or a stock's original cost. Default means when the bond issuer doesn't agree with the stated terms of the bond.

Illumination Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year: Budgeted costs of operating the plant for 2000 to 3000 hours: Fixed operating costs per year $480,000 Variable operating costs $800 per hour Budgeted long-run usage per year: Flashlight Division 1500 hours Night Light Division 700 hours Practical capacity 3000 hours Assume that practical capacity is used to calculate the allocation rates. Actual usage for the year by the Flashlight Division was 1400 hours and by the Night Light Division was 600 hours. If a single-rate cost-allocation method is used, what amount of operating costs will be allocated to the Night Light Division

Answers

Answer:

Allocated operating costs= $576,000

Explanation:

First, we need to calculate the predetermined operating costs allocation rate:

Predetermined operating costs allocation rate= total estimated operating costs for the period/ total amount of allocation base

Predetermined operating costs allocation rate= (480,000 / 3,000) + 800

Predetermined operating costs allocation rate= $960 per hour

Now, we can allocate overhead to Night Light Division:

Allocated operating costs= Predetermined operating costs allocation rate* Actual amount of allocation base

Allocated operating costs= 960*600

Allocated operating costs= $576,000

from the video "the best stats you've ever seen "
what are some of the variables that rosling's graphs analyze? why are these factors important?​

Answers

Answer:

michael jackson it about life

Explanation:

Compare and contrast the three most common types of healthcare indemnity plans PLEASE I NEED THIS ANSWER BY MIDNIGHT

Answers

Answer:

Health maintenance organizations (HMOs)

Exclusive provider organizations (EPOs)

Point-of-service (POS) plans.

Preferred provider organizations (PPOs)

Explanation:

Item11 2 points Time Remaining 1 hour 57 minutes 8 seconds01:57:08 Item 11 Time Remaining 1 hour 57 minutes 8 seconds01:57:08 An advantage of bonds is: Multiple Choice Bonds do not affect owner control. Bonds require payment of par value at maturity. Bonds can decrease return on equity. Bond payments can be burdensome when income and cash flow are low. Bonds require payment of periodic interest.

Answers

Answer: Bonds do not affect owner control.

Explanation:

Bonds are simply refered to as the units of corporate debts which are being issued by companies. It is a fixed income instrument and its advantage is that the bonds do not affect owner control.

Bonds can also bring about a rise in the return on equity. Therefore, the correct option is A.

Liberty Corporation was authorized to issue 300,000 shares of $5 par value common stock. Liberty issued 60,000 shares of common stock on January 15, 2020, at $15 per share. Required a. Record the entry on June 30, 2020, for purchase of 6,600 common shares for the treasury at $18 per share. b. Record the entry on September 20, 2020, for sale of 2,400 treasury shares at $21 per share. c. Record the entry on November 3, 2020, for sale of 1,500 treasury shares at $17 per share.

Answers

Answer:

Liberty Corporation

Journal Entries:

January 15, 2020:

Debit Cash $900,000

Credit Common stock $300,000

Credit Additional Paid-in Capital $600,000

To record the issue of 60,000 shares of common stock at $15 per share.

a) June 30, 2020:

Debit Treasury Stock $33,000

Debit Additional Paid-in Capital $85,800

Credit Cash $118,800

To record the purchase of 6,600 treasury shares at $18 per share.

b) September 20, 2020:

Debit Cash $50,400

Credit Treasury Stock $12,000

Credit Additional Paid-in Capital $38,400

To record the sale of 2,400 treasury shares at $21 per share.

c) November 3, 2020:

Debit Cash $25,500

Credit Treasury Stock $7,500

Credit Additional Paid-in Capital $18,000

To record the sale of 1,500 treasury shares at $17 per share.

Explanation:

a) Data and Analysis:

Authorized common stock share capital of 300,000 at $5 = $1,500,000

January 15, 2020: Issued 60,000 shares at $15 per share:

Cash $900,000 Common stock $300,000 Additional Paid-in Capital $600,000

June 30, 2020: Purchased 6,600 for the treasury shares at $18 per share:

Treasury Stock $33,000 Additional Paid-in Capital $85,800 Cash $118,800

September 20, 2020: Sale of 2,400 treasury shares at $21 per share:

Cash $50,400 Treasury Stock $12,000 Additional Paid-in Capital $38,400

November 3, 2020: Sale of 1,500 treasury shares at $17 per share:

Cash $25,500 Treasury Stock $7,500 Additional Paid-in Capital $18,000

Cory, a college professor, incurred and paid the following expenses in 2020: Tax return preparation fee $ 600 Moving expenses 2,000 Investment expenses 500 Expenses associated with rental property 1,500 Interest expense associated with loan to finance tax-exempt bonds 400 Calculate the amount that Cory can deduct (before any percentage limitations).

Answers

Answer:

$4,600

Explanation:

Calculate the amount that Cory can deduct

Tax return preparation fee $ 600

Add Moving expenses $2,000

Add Investment expenses $500

Add Expenses associated with rental property $1,500

Cory Deduction $4,600

($600+$2,000+$500+$1,500)

Therefore Cory can deduct $4,600

An investor thought that market interest rates were going to decline. He paid $19,000 for a corporate bond with a face value of $20,000. The bond has an interest rate of 10% per year payable annually. If the investor plans to sell the bond immediately after receiving the 4th interest payment, how much will he have to receive in order to make a return of 14% per year? Solve using:

a. tabulated factors
b. the GOAL SEEK tool on a spreadsheet.

Answers

Answer:

Answer is explained in the explanation section below.

Explanation:

a. In this part, we need to calculate the present worth using the formula to calculate the sale price of the bond.

As the coupon rate = 10% per year

So,

The Annual dividend will = 2000 = 10% x 20,000

19000 = 2000 (P/A, 14%,4) + B(P/F,14%,4)

19000 = 2000 (2.9137) + B (0.592)

Solving for B = Desired sales price of the bond

B = [tex]\frac{19000 - 5827.4}{0.592}[/tex]

B = 22251

b. Part b of this question is to solve using GOAL SEEK feature of a spreadsheet so, I have attached it in the attachment. Please refer to the attachment for the solution of part b.

Carol Beal is the export manager at Gudrun Sjoden USA, a licensed distributor for a Swedish designer. Carol has North America and all of Asia in her territory. She has just formed a joint venture to run retail branches in Tokyo, Shanghai, and Seoul. Her plan is to ship directly from the Gudrun Sjoden warehouse in Stockholm. Her Asian partner has requested she ship to her DDP, but Carol would prefer to ship Ex Works. Carol knows that there are critical differences between the two terms of sale and is reviewing what decision to make. She wants to keep her U.S. expenses as low as possible, and she would be funding the shipping out of the United States. She also wants to continue to build a good, solid, trusting relationship with her joint venture partner.

Which statement is true Carol ships goods Ex Works?
a. The buyer would cover shipping and insurance costs assume the risk the door.
b. The seller would cover all insurance costs while the buyer would cover the cost of shipping.
c. The goods be shipped from Stockholm at the seller's expense.
d. The seller would cover all shipping and insurance costs and assume the risk at the factory door.
e. The buyer would cover all insurance costs while the seller would cover the cost of shipping

Answers

Answer:

a. The buyer would cover all shipping and insurance costs and assume the risk at the factory door.

Explanation:

According to the given situation the exworks means that the seller fulfill his duty for delivering the goods when the goods are available at his place i.e. works, factory or warehouse to the buyer. Also the buyer would responisble to bear all the cost and the risk involved while taking the goods from the seller place to the final destination

Hence, the option a is correct

McNulty, Inc., produces desks and chairs. A new CFO has just been hired and announces a new policy that, if a product cannot earn a margin on sales of at least 20 percent, it will be dropped.
The margin is computed as product gross profit divided by reported product cost.
Manufacturing overhead for year 1 totaled $800,000. Overhead is allocated to products based on direct labor cost.
Data for year 1 show the following:
Chairs Desks
Sales revenue $1,150,000 $2,105,000
Direct materials 584,000 800,000
Direct labor 160,000 340,000
a-1. Based on the CFO's new policy, calculate the profit margin for both chairs and desks.
Profit Margin (%)
Chairs
Desks
a-2. Which of the two products should be dropped?
b. Regardless of your answer in requirement a, the CFO decides at the beginning of year 2 to drop the chair product. The company cost analyst estimates that overhead without the chair line will be $650,000. The revenue and costs for desks are expected to be the same as last year.
What is the estimated margin for desks in year 2?
Gross Profit Margin:
Gross Profit margin is given as the gross profit divided by the sales of the company multiplied by 100. It is calculated to compare the results of the company from the past year and also from other companies in the industry.

Answers

Answer:

a-1. Profit Margin:

Chairs = 15%

Desks = 25%

a-2. Chair should be dropped.

b. The estimated margin for desks in year 2 is 18%.

Explanation:

a-1. Based on the CFO's new policy, calculate the profit margin for both chairs and desks.

McNulty, Inc.

Calculation of the profit margin for both chairs and desks for year 1.

Details                                      Chairs ($)              Desks ($)  

Sales revenue (A)                    1,150,000              2,105,000

Direct materials (B)                   584,000              800,000

Direct labor (C)                          160,000               340,000

Manufacturing overhead (D)    256,000               544,000

Product cost (E = B+C+D)       1,000,000            1,684,000

Gross profit (F = A-E)                  150,000               421,000

Profit Margin (G = F/E)                   15%                      25%

Expected margin                            20%                    20%

Workings:

Chairs Manufacturing overhead = ($160,000 / ($160,000 + $340,000)) * $800,000 = $256,000

Desks Manufacturing overhead = ($340,000 / ($160,000 + $340,000)) * $800,000 = $544,000

a-2. Which of the two products should be dropped?

Chair should be dropped. This is because its estimated profit margin of 15% is less than the expected margin of 20%.

b. Regardless of your answer in requirement a, the CFO decides at the beginning of year 2 to drop the chair product. The company cost analyst estimates that overhead without the chair line will be $650,000. The revenue and costs for desks are expected to be the same as last year. What is the estimated margin for desks in year 2?

The estimated margin for desks in year 2 can be calculated as follows:

McNulty, Inc.

Estimation of margin for desks in year 2

Details                                                   Desks ($)    

Sales revenue (A)                                  2,105,000

Direct materials (B)                                  800,000

Direct labor (C)                                         340,000

Manufacturing overhead (D)                   650,000

Product cost (E = B+C+D)                     1,790,000

Gross profit (F = A-E)                                315,000  

Profit Margin (G = F/E)                                 18%

Expected margin                                          20%

Therefore, the estimated margin for desks in year 2 is 18%.

On December 30, 2017, the Board of Directors of Blue Manufacturing, Inc. committed to a plan to discontinue the operations of its Owl division. Blue estimated that Owl's 2018 operating loss would be $750,000 and that the fair value of Owl's facilities was $450,000 less than their carrying amounts. The estimate for the 2018 operating loss turned out to be correct. Owl's 2017 operating loss was $1,000,000, and the division was actually sold for $400,000 less than its carrying amount in 2018. Blue's effective tax rate is 35%. In its 2017 income statement, what amount should Blue report as loss from discontinued operations

Answers

Answer:

$942,500

Explanation:

Calculation to determine what amount should Blue report as loss from discontinued operations

Using this formula

Loss from discontinued operations=[(Operating loss+Fair value)*Tax rate]

Let plug in the formula

Loss from discontinued operations=[($1,000,000+ $450,000)* (100% - 35% tax rate)]

Loss from discontinued operations=$1,450,0000*65%

Loss from discontinued operations= $942,500

Therefore what amount should Blue report as loss from discontinued operations is $942,500

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