Answer:B. Debit Income Summary $54,000; credit Revenues $54,000.
Explanation:
The following entries can be a closing entry
a)To record closing entry of revenue account
Account Debit Credit
Revenues $54,000
Income summary $54,000
b)To record closing entry of expense account
Income summary $43,250
Expenses $43,250
c)To record closing entry of income summary account
Income summary ( $54,000- $43,250) $10,750
Retained earnings $10,750
d) to record the closing entry of dividends account
Retained Earnings $5,950
Dividend $5,950
The entry that could not be a closing entry is B. Debit Income Summary $54,000; credit Revenues $54,000 because income summary account should be credited with the revenue amount of $54,000 as Revenue increases the income of every business.
You just deposited $4,000 in cash into a saving account at the local bank. Assume that banks lend out all excess reserves and there are no leaks in the banking system. That is, all money lent by banks gets deposited in the banking system. Round your answers to the nearest dollar. If the reserve requirement is 16%, how much will your deposit increase the total value of checkable bank deposits? If the reserve requirement is 6%, how much will your deposit increase the total value of checkable deposits? Increasing the reserve requirement ________the money supply.
Answer:
The money multiplier given the reserve requirement can be calculated by;
= 1/ reserve requirement.
1. If the reserve requirement is 16%
Money Multiplier = 1/0.16
= 6.25
The increase in money supply ( checkable bank deposits) is the result of the money multiplier times the new cash.
= 6.25 * 4,000
= $25,000
2. If the reserve requirement is 6%
Money Multiplier = 1/0.06
= 16.67
Increase in money supply;
= 16.67 * 4,000
= $66,680
3. Increasing the reserve requirement increases the money supply.
characteristics of insurance that distinguish insurance contracts from other general contract
Answer:
When attempting to get a better understanding of insurance, there are four unique characteristics that need to be done and they are conditional, unilateral, adhesion, and aleatory.
calculate the gross margin in dollars and percentage for the home department if net sales = 140,000, billed cost of merchandise = $84,000, cost discount = 7.5%, shipping charges = 240
Answer:
Gross Margin (dollars) = $62,060
Gross Margin % = 44.33 %
Explanation:
Calculation of Gross Margin
Net Sales $140,000
Less Cost of Sales
Opening Stock $0
Add Purchase of Merchandise $84,000
Less Trade Discount ($84,000 × 7.5%) ($6,300)
Add shipping charges $240
Cost of Goods Sold ($77,940)
Gross Profit $62,060
Gross Margin %
Gross Margin % = Gross Profit / Net Sales × 100
= $62,060 / $140,000 × 100
= 44.33 %
1. The oversupply of hospitals and in-patient beds in the U.S. produced by the Hill-Burton legislation is the result of: A. The advent of managed care B. Change in the focus of medical education C. Technological advances D. Clinical guidelines E. A and C
Answer:
E. A and C.
Explanation:
Hill Burton passed a bill in the U.S legislation regarding the construction of new hospitals, providing nursing homes and other health care facilities. These facilities were financed by the loans and grants. There was oversupply of beds and hospitals in the U.S which was mainly due to excess focus on advent of managed care.
Question 42 of 100. Millie's 2020 tax liability is $41,293. Her AGI is greater than $150,000. Her 2020 withholding is $36,910. Her 2019 tax liability was $29,570. Does she owe an estimated tax payment penalty for 2020
Answer:
Millie doesn't owe any type of penalty, she owes taxes but not a penalty. Her 2020 withholdings were $36,910, which is almost 25% higher than her previous tax liability ($29,570).
The IRS can penalize you for not having enough tax withholdings only if you didn't pay at least 90% of your tax liabilities or if your withholdings were less than the tax liability of the previous year (whichever is less). In this case, the withholdings were more than last year's tax liability.
Two Brothers Moving prepared the following sales budget: Month Cash Sales Credit Sales March $18000 April May June Credit collections are % in the month of sale, % in the month following the sale, and % two months following the sale. The remaining % is expected to be uncollectible. What are the total cash collections in June at Two Brothers Moving?
Answer: $104,360
Explanation:
The cash collections for June will be;
= June Cash sales + (50 % *June credit sales ) + (43% * May credit sales) + ( 5% of April credit sales)
= 58,000 + (0.5 * 55,000) + (0.43 * 42,000) + ( 0.05 * 16,000)
= 58,000 + 27,500 + 18,060 + 800
= $104,360
The phone bill for a corporation consists of both fixed and variable costs. Refer to the fourmonth data below and apply the highlow method to answer the question.
Min. Total Bill
January 460 $4,000
February 240 $2,675
March 180 $2,655
April 310 $5,730
If the company uses 390 minutes in May, how much will the total bill be? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
A) $1,842
B) $1,829
C) $3,672
D) $6,157
Answer:
$3,601
Explanation:
The calculation for the total bill is as follow;
Change in total cost [ $4,000 - $2,655 ] = $1,345
Change in minutes [ 460 - 180 ] = 280
Therefore,
Variable cost per minute = $1,345 ÷ 280
= $4.80 per minutes
Also,
Variable costs for January
= 460 minutes * 4.80 per minutes
= $2,208
Total fixed costs =Total mixed cost - Total variable cost
= $4,000 - $2,208
= $1,792
For 390 minutes used by the company,
Total costs would be
= [390 minutes * $4.80 per minutes] + $1,792
= $1,872 + $1,729
= $3,601
In judging the quality of hospitals, it is well known that for complicated procedures, such as open-heart surgery, three factors are related to patient outcomes. Which of the following factors is NOT related: A. Experience: The greater the number of procedures per year, the better the results. B. Medical-school affiliation. Teaching hospitals tend to yield better outcomes. C. Location. Suburban hospitals have better results than those in the inner city. D. Size. Larger hospitals tend to yield better outcomes for major procedures than smaller ones.
Answer:
D. Size.Larger hospitals tend to yield better outcomes for major procedures than smaller ones.
Explanation:
The hospitals provide health care facilities to the public. It is crucial place where one mistake by a doctor or other staff could lead to death of a patient. The patients coming in he hospital need to be treated carefully and timely. The professional and experience will have the skills and expertise to treat the patient carefully and diagnose the problem quickly. The size of the hospital does not matter even the small clinics with professional staff can lead better results.
In an effort to capture the large jet market, Wright Brothers Aviation invested $12 billion developing its 1903A, which is capable of carrying 800 passengers. The plane has a list price of $170 million. In discussing the plane, Wright Brothers Aviation stated that the company would break even when 170 1903As were sold.
a. Assuming the break-even sales figure given is the accounting break-even, what is the cash flow per plane? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole dollar amount, e.g., 32.)
b. Wright Brothers Aviation promised its shareholders a return of 30 percent on the investment. If sales of the plane continue in perpetuity, how many planes must the company sell per year to deliver on this promise? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
c. Suppose instead that the sales of the 1903A last for only 10 years. How many planes must Wright Brothers Aviation sell per year to deliver the same rate of return? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Answer:
a) $70,588,235 per plane
b) 51 planes per year
c) 54.99 planes
Explanation:
initial investment $12,000 million
unit price $170 million
break even point = 170 x $170 million = $28,900 million
cash flow per plane = initial cost / break even number = $12,000 million / 170 units = $70,588,235 per plane
$12,000 million x 30% = $3,600 million in returns
$3,600,000,000 / $70,588,235 per plane = 51 planes per year
if the project lasts only 10 years, then its yearly returns = $12,000 / 3.09154 (PV annuity factor, 30%, 10 periods) = $3,881,560,606
number of planes sold per year = $3,881,560,606 / $70,588,235 per plane = 55 planes
Tariffs create a(n) ___________ pressure on domestic prices.
Select the correct answer below:
A. upward
B. downward
C. constant
D. negligible amount of
Answer: A. upward
Explanation:
Tariffs are taxes that a Government imposes on imported goods in a bid to protect local producers that are making the same goods.
When a Tariff is implemented, it will make goods from outside more expensive as well as give domestic producers an opportunity to charge higher prices as imports have become more expensive.
Both of these results will pull the domestic prices up.
Which of the following is not one of the typical sources of competitive pressures, according to Michael Porters five factor model?
A. The threat of new entrants into the market
B. The attempts of companies in other industries to win customers over to their own substitute products
C. The power and influence of industry's key success factors
D. The market maneuvering and jockeying for buyer patronage that goes on among rival firms
E. The bargaining power of suppliers and seller-supplier collaboration
Answer:
C. The power and influence of industry's key success factors
Explanation:
According to Michael Porters five factor model, the five competitive forces are competition rivalry ,customers, suppliers, substitutes and potential entrance. The power and influence of industry's key success factors is not included in this analysis.
Cost of goods sold is characterized by the following statements
Answer:
The interpretation of the particular context is provided in the subsection below on clarification.
Explanation:
The cost of the products sold has become a reporting liability on either the cash flow statement. The cost of the goods offered for sale includes the cost of materials expenditures and the time to prepare such a component for selling price. The cost of the goods generated is measured using gross profit. Prices of the products sold are also known as selling costs.hose economists who believe that monetary policy is more potent than fiscal policy argue that the: Group of answer choices
Answer: responsiveness of investment to the interest rate is small.
Explanation:
Here is the complete question:
Those economists who believe that fiscal policy is more potent than monetary policy argue that the:
a. responsiveness of investment to the interest rate is small.
b. responsiveness of investment to the interest rate is large.
c. IS curve is nearly horizontal.
d. LM curve is nearly vertical
Monetary policy are the activities of the central bank of a country that are used to control the supply an availability of money in an economy. Fiscal policy is the use of taxation and spending to control the economy.
Those economists who believe that monetary policy is more potent than fiscal policy argue that the responsiveness of investment to the interest rate is small.
The supply chain is the process a company uses to build and sell its products, it is also sometimes called:
Answer:
A value chain
Explanation:
The supply chain is the process a company uses to build and sell its products, it is also sometimes called a value chain.
A value chain is defined as all the activities and processes within a company that help add value to the final product.
A company wants to create a dynamic survey that navigates users through a different series of questions based on their previous responses. What is the recommended solution to meet this requirement
Answer:
Visual force
Explanation:
Visual force is a programming language made and designed for the purpose of sales force, which shall allow the company to create and expand its horizons. It helps to create a user interface.
With the help of that user interface the company can interact with as many number of people as they want. Also it uses the defined database, that you would create with the help of such interface.
Visual force can be designed in the manner as required by the company. Simple or complex depending upon the use as required.
You determined the following information for Big Rapid's Supplies: It has a receivables turnover rate of 23.5 a payables turnover rate of 12.5 and an inventory turnover rate of 19.15. What is the length of the firm's operating cycle
Answer:
35 days
Explanation:
Receivables turnover rate = 23.5
Payables turnover rate = 12.5
Inventory turnover rate = 19.15
Length of firm's operating cycle :
(Days sales in inventory + average collection period)
Days' sales in inventory = (365 days / inventory turnover ratio)
Days' sales in inventory = (365 / 19.15)
Days's sales in inventory = 18.717 days
Average collection period : (365 / accounts receivable turnover ratio)
Average collection period = (365 / 23.5)
Average collection period = 15.531
(18.717 + 15.531)
= 34.248
= 35 days
__________ is not a technology company but used technology to revamp the business process of renting movies.
Answer:
Netflix
Explanation:
Netflix is a company that uses streaming service where viewers can watch varieties of documentaries, popular films etc on their network . This type of service enables users to access latest films, TV shows, offered by Netflix over the internet. Although users get to watch and enjoy these services through a paid subscription, there are quite unlimited films that can be watched and downloaded for offline viewing.
Unlike a conventional method where people can watch and download films, documentaries online, Netflix provides a platform that warehouses collections of films, documentaries, TV shows hence revamp the business methods of renting movies.
A company wants to create a dynamic survey that navigates users through a different series of questions based on their previous responses. What is the recommended solution to meet this requirement
Answer:
Visualforce and Apéx
Explanation:
Visualforce is defined as a programming language that is peculiar to Salesforce. It is mostly used among developers to build and personalized user interface.
The Visualforce controller is a set of instructions that specifies what occurs in a program.
Apéx on the hand, is considered to be a proprietary language built by Salesforce.com. It is mainly used to execute flow and transaction control statements on the Force.com platform server in conjunction with calls to the Force.com API.
Hence, in this case, with the help Visualforce and Apéx, a company will be able to create a dynamic survey that navigates users through a different series of questions based on their previous responses.
Valley Farms offers to sell Whole Harvest Bakeries, Inc., five hundred bushels of wheat. Whole Harvest responds, "We agree to buy five hundred bushels only if the wheat is Grade A quality." This statement is
Answer: a counteroffer
Explanation:
From the question, we are informed that Valley Farms offers to sell Whole Harvest Bakeries, Inc., five hundred bushels of wheat and that Whole Harvest responds by saying "We agree to buy five hundred bushels only if the wheat is Grade A quality."
The above statement is s counteroffer. A counteroffer is a response that is given based on an initial offer and it happens mostly when the initial offer is not accepted and therefore it is replaced with another offer.
The following CVP income statements are available for Blanc Company and Noir Company. Blanc Company Noir Company Sales $510,000 $510,000 Variable costs 306,000 255,000 Contribution margin 204,000 255,000 Fixed costs 195,840 246,840 Net income $8,160 $8,160Calculate Contribution margin ratio
Answer:
Results are below.
Explanation:
Giving the following information:
Blanc Company:
Sles= 510,000
Variable costs= 306,000
Noir Company
Sales= $510,000
Variable costs= 255,000
To calculate the contribution margin ratio, we need to use the following formula:
contribution margin ratio= (sales - variable cost) / sales
Blanc:
contribution margin ratio= (510,000 - 306,000)/510,000
contribution margin ratio= 0.4
Noir:
contribution margin ratio= (510,000 - 255,000) / 510,000
contribution margin ratio= 0.5
you purchase a home for $200,000 that you expect to appreciate 6% in value on an annual basis. How much will the home be worth
Answer:
The answer is $358,169.53
Explanation:
Present value(PV) is $200,000
Interest rate(r) is 6%
Number of years(N) is 10years
The formula for finding future value is
FV = PV(1+r)^n
=$200,000(1+0.06)^10
$200,000(1.06)^10
$200,000 x 1.790847697
= $358,165.53
Alternatively;
Lets use a financial calculator
N = 10; I/Y = 6; PV = -200,000; PMT=0; CPT FV= $358,169.53
NOTE: The difference in final value result is due to the rounding off of decimal point.
Gold Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product RST.
Direct material cost per unit of RST $15
Total estimated manufacturing overhead $300,000
Total cost per unit of RST $80
Total estimated machine hours 150,000 MH
Direct labor cost per unit of RST $23
A. 21 MH per unit of RST.
B. 2 MH per unit of RST.
C. 20 MH per unit of RST.
D. 37.5 MH per unit of RST.
E. 38 MH per unit of RST.
Answer:
A. 21 MH per unit of RST
Explanation:
Total cost = Direct material + Direct labor + Overhead
$80 = $15 + $23 + Overhead
Overhead = $80 - $15 - $23
Overhead = $42
Plant-wide overhead rate = Total estimated manufacturing overhead / Total estimated machine hours
Plant-wide overhead rate =$300,000 / 150,000 machine hours
Plant-wide overhead rate =$2 per machine hours
Machine hour per unit of RST = Overhead per unit of RST / Plant wide overhead rate
Machine hour per unit of RST = $42/$2
Machine hour per unit of RST = 21 machine hour per unit of RST
Thus, the machine hour per unit of RST is 21 Machine Hour per unit of RST.
what type of thinking makes one resourceful
Answer:
logical
Explanation:
logical thinking is not based off of emotions or preference it is simple and to the point
You and a rival are engaged in a game in which there are three possible outcomes: you win, your rival wins (you lose), or the two of you tie. You get a payoff of 50 if you win, a payoff of 20 if you tie, and a payoff of 0 if you lose. What is your expected payoff in each of the following situations where nature decides if you win or not:
A) There is a 50% chance the game ends in a tie, 10% chance you win (and therefore a 40%
chance you lose).
B) There is a 50-50 chance of winning and there are no ties.
C) There is an 80% chance you lose and a 10% chance you win or tie.
Answer:
A) There is a 50% chance the game ends in a tie, 10% chance you win (and therefore a 40% chance you lose).
expected value = (50% x 20) + (10% x 50) + (40% x 0) = 10 + 5 + 0 = 15
B) There is a 50-50 chance of winning and there are no ties.
expected value = (50% x 50) + (50% x 0) + = 25 + 0 = 25
C) There is an 80% chance you lose and a 10% chance you win or tie.
expected value = (10% x 20) + (10% x 50) + (80% x 0) = 2 + 5 + 0 = 7
The expected value of an event is determined by adding up all the possible outcomes multiplied by their respective value.
The "comparative advantage" argument for the popularity of interest rate swaps is that poorly rated firms may be pushed to borrowing in the based on the assumption floating rate market while their first choice is fixed.
a) true
b) false
Answer: Option A -- True
Explanation:
Comparative advantage can be defined as acompany which has higher credit rating pays less to raise funds. Therefore, the "comparative advantage" argument for the popularity of interest rate swaps is that poorly rated firms may be pushed to borrowing in the based on the assumption floating rate market while their first choice is fixed is TRUE
We know the following expected returns for stocks A and B, given different states of the economy:
States(s) Probability E(rAS) E(rB,)
Recession 0.2 -0.1 0.04
Normal 0.5 0.08 0.05
Expansion 0.3 0.1 0.07
1. What is the expected return for stock A?
2. What is the expected return for stock B?
Answer:
Expected Returns:
1. Stock A:
= (0.2 x 0.04) + (0.5 x 0.05) + (0.3 x 0.07)
= -0.02 + 0.04 + 0.12
= 0.14
= 14%
2. Stock B:
= (0.2 x -0.1) + (0.5 x 0.08) + (0.3 x 0.1)
= -0.008 + 0.025 + 0.021
= 0.054
= 5.4%
Explanation:
a) Data and Calculations:
States(s) Probability E(rAS) E(rB,)
Recession 0.2 -0.1 0.04
Normal 0.5 0.08 0.05
Expansion 0.3 0.1 0.07
b) An investor in Stock A's expected return is the sum of the returns under different economic scenarios of recession, normal economy, and expansion, weighed by the probabilities of each event, which the investor would expect to realize by making the investment in a security. Stock A's expected return shows that the investor in the stock would expect a 14% return on the value of the investment. Whereas, the same investor would expect a return of 5.4% in Stock B's investment.
"A customer is long the Swiss Franc at a cost of $.60 per SF. The customer wishes to place a collar on the position using PHLX SF FLEX options. To create the collar, the customer would:"
Answer:
To create the collar, the customer would: buy 1 PHLX 59 SF Call and sell 1 PHLX 61 SF Call.
Explanation:
The meaning of a "collar" is that a put is bought at a strike price that is less than the price of the underlying instrument (this implies that a floor has been put on the price of the instrument); and that a call is disposed at a strike price which is higher than the price of the underlying instrument (this indicates that a ceiling above which the instrument will be called away has been created).
When a collar is put on the price, it indicates that the customer is majorly giving a guarantee for the underlying instrument's minimum and maximum price.
This should make the net cost of the collar to be close to zero due to the fact that the two contracts are "out the money" and also because the premium paid to buy the put is offset by the premium received when the call was sold.
Therefore, since customer in the question wishes to place a collar on the position using PHLX SF FLEX options, he would buy 1 PHLX 59 SF Call and sell 1 PHLX 61 SF Call to create the collar.
ABC has the following: cash, $102 million; receivables, $94 million; inventory, $182 million; other current assets, $18 million, Plant Property and Equipment $220 million, accounts payable, $98 million long-term debt, $23 million. Based on these amounts, what is the current ratio (round to 2 decimal points)?
Answer:
Current ratio = 4.04
Explanation:
Current ratio measures the ability of a business to settle its short term obligations using its liquid financial resources (current assets)
A current ratio in excess of 2 is considered as adequate (except for some special occasions) and vice versa.
Current ratio is computed as follows:
Current ratio = current assets/current liabilities
Applying this we have
$
Cash 102
Receivable 94
Inventory 182
Other current assets 18
Total current assets 396
Total current liability 98
Current ratio= Total current assets / Total current liability
Current ratio = 396/98= 4.04:1
Current ratio = 4.04
If a store sells a good at the market price, even though the government authorities have set the maximum price that can be charged for it, the store is selling the good in a(n)
Complete Question:
If a store sells a good at the market price, even though the government authorities have set the minimum price that can be charged, the store is selling the good in an?
Group of answer choices
A. black market for a market price that is higher.
B. black market for a market price that is lower.
C. effort to eliminate a surplus of the good.
D. legal market for a market price that is higher.
E. legal market for a market price that is lower.
Answer:
A. black market for a market price that is higher.
Explanation:
If a store sells a good at the market price, even though the government authorities have set the maximum price that can be charged for it, the store is selling the good in a black market for a market price that is higher.
A black market can be defined as a type of underground market that is typically characterized by illegal transactions of goods and services as against the ethical trade of finished products.
In this context, any trader selling goods at a market price other than the maximum price that the government has set is certainly selling at a higher price and would only do that in an illegal way such as a black market, so as not to be caught by the regulatory agencies of the government.
In the Month of March, Digby received orders of 107 units at a price of $15.00 for their product Dug. Digby uses the accrual method of accounting and offers 30 day credit terms. Digby delivers 107 units in April. They received payment for 54 units in March, and 54 units in April. In the March income statement, how much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands) Select: 1Save Answer 0, $1,605 0, $803 $803 , $803 $1,605 , 0
Answer:
0, $1,605
Explanation:
The computation of the revenue recognized in the month of March and in the month of April is shown below:
Since the Digby delivers 107 units in April so now revenue recognized should be in the month of March
But for the month of April, it would be
= 107 units × $15
= $1,605
Hence, the first option is correct