Answer and Explanation:
The journal entries are shown below:
(i) On August 1,
Cash A/c Dr. $10,250
photography equipment A/c Dr. $44,075
To common stock $54,325
(Being the issuance of common stock for cash and photography equipment is recorded)
(ii) On August 2,
Prepaid insurance A/c Dr. $3,900
To cash $3,900
(Being the cash paid in advance for insurance is recorded)
(iii) On August 5,
Office supplies A/c Dr. $1,948
To cash $1,948
(Being the cash paid for office supplies is recorded)
(iv) On August 20,
Cash A/c Dr. $3,050
To photography fees earned $3,050
(Being the photography fees earned is recorded)
(v) On August 31,
Utilities A/c Dr. $866
To cash A/c $866
(Being the cash paid for utilities)
Falcon Co. produces a single product. Its normal selling price is $30 per unit. The variable costs are $16 per unit. Fixed costs are $22,700 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,440 units with a special price of $19 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $2 per unit would be eliminated. If the order is accepted, what would be the impact on net income?
a. increase of $5,360.
b. decrease of $3,216.
c. increase of $4,288.
d. increase of $6,968.
Answer:
See below
Explanation:
Since we were given that the variable costs are $16 and for special order, $2 per unit will be eliminated.
Revised variable cost = $16 - $2 = $14 per unit
Normal selling price = $30 per unit
We can then calculate the profit per unit by considering the special price per unit and revised variable cost per unit
Profit per unit = Special price per unit - revised variable cost per unit
= $19 - $14
= $5 per unit
Also for 1,440 units, the special order is placed, hence would increase the net income by:
= Special order units × Profits
= 1,440 × $5
= $7,200
If the order is accepted, the net income is increased by $7,200
You are evaluating a growing perpetuity investment from a large financial services firm. The investment promises an initial payment of $2,176 at the end of this year and subsequent payments that will grow at a rate of 3.4 percent annually. If you use a 9 percent discount rate for investments like this, what is the present value of this growing perpetuity?
Answer:
the present value of this growing perpetuity is $83,692.31
Explanation:
The computation of the present value of this growing perpetuity is shown below:
present value of this growing perpetuity is
= Payment at end of this year ÷ (Discount rate - Growth rate)
= $2,176 ÷ (0.09-0.034)
= $83,692.31
Hence, the present value of this growing perpetuity is $83,692.31
In June 201X, a six-month call on XYZ stock, with an exercise price of $22.50, sold for $12.30. The stock price was $27.27. The risk-free interest rate was 3.9 percent. How much would you be willing to pay for a put on XYZ stock with the same maturity and exercise price
Answer:
Price of Put = $ 7.1037
Explanation:
Put-Call Parity:
Price of Call + Exercise Price / (1 + Risk-free rate)^T = Price of Put + Stock Price
Price of Call = $12.30
Exercise Price = $22.50
Stock Price = $27.27
Risk-free rate = 3.9%
Time period = 6 months or 0.5 year
Now insert the values:
Price of Call + Exercise Price / (1 + Risk-free rate)^T = Price of Put + Stock price
12.30 + 22.50 / (1 + 3.9%)^0.5 = Price of Put + 27.27
12.30 + 22.50 / 1.019313 - 27.27 = Price of Put
Price of Put = 12.30 + 22.0737 - 27.27
Price of Put = $ 7.1037
Marquis is interested in the relationship between drinking coffee and esophageal cancer. He decides to look at surveys for the Lehman College Class of 2019 as a source of data. He tabulates the total cases of esophageal cancer that were reported as well as those members of the class who did not report esophageal cancer. He then calls all of those people and asks them if they can remember drinking coffee in 2010 and, if yes, about how much coffee did they drink daily, among other questions related to potential exposures, i.e. exercise, BMI, stress, etc. Which form of bias is likely to impact the measure of association reported in Marquis’s study?
a. sampling bias
b. recall bias
c. interviewer bias
Answer:
Option B
Explanation:
In simple words, Recall bias can be understood as the systematic mistake that happens when individuals do not properly recall or omit information from past events or situations. The reliability and quantity of recollections can be impacted by future activities and situations.
In the given case, the interview asking the sample something that is not easy to remember. Drinking coffee and how much did they drink is not a valid question as this is too fragile to remember.
đối với những sản phẩm thuộc ô ngôi sao trong ma trận BCG thì lời khuyên dành cho nhà quản trị học là nên tiếp tục hi sinh lợi nhuận ngắn hạn để gia tăng thị phần trong tương lại. đúng hay sai giải thích
Answer:
??
Explanation:
The Down and Out Co. just issued a dividend of $2.91 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. If the stock sells for $35 a share, what is the company's cost of equity?
Answer:
14.81%
Explanation:
Cost of equity = (Dividend for next period / Current price) + Growth rate
Cost of equity = (($2.91*1.06) / $35) + 0.06
Cost of equity = $3.0846/$35 + 0.06
Cost of equity = 0.08813143 + 0.06
Cost of equity = 0.14813143
Cost of equity = 14.81%
On May 10, 2020, Marin Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $2,060 on July 15, 2020. The cost of the goods is $1,350. Marin delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Marin related to this contract. Either party may terminate the contract without compensation until one of the parties performs
Answer:
May 15, 2020
No Entry
June 15, 2020
Debit: A/R for 2,060
Credit: Revenue for 2,060
Debit: COGS for 1,350
Credit: Inventory for 1,350
July 15, 2020
Debit: Cash for 2,060
Credit: A/R for 2,060
Explanation:
Preparation of the journal entries for Cosmo related to this contract.
May 15, 2020
No Entry
June 15, 2020
Debit: A/R for 2,060
Credit: Revenue for 2,060
Debit: COGS for 1,350
Credit: Inventory for 1,350
July 15, 2020
Debit: Cash for 2,060
Credit: A/R for 2,060
Insert your overall conclusions about the relevance and significance of macroeconomics. Assess the effectiveness of your economic policy decisions. Did your economic policy decisions produce the anticipated results?
Answer:
Macroeconomics is a very relevant subfield of economics because it studies economic matters at the aggregate level, that means things such as inflation, unemployment, economic growth, investment, saving, and many other economic phenomena that are very relevant for all countries, all governments, and essentially everybody around the world.
Macroeconomics is a contested field, with some points in agreement, but many others in dispute among economists. For this reason, the policy recommendations that are based on macroeconomic criteria are often very different, and frequently clash into political conflict.
Economic policy decisions never produce exactly the expected result, but they often give a satisfactory result (not always). For example, the monetary policy based on the principles of monetarism did manage to bring down inflation substantially ever since it began to be applied in the late 1970s.
The petty cash fund of the Brooks Agency is established at $150. At the end of the current period, the fund contained $28 and had the following receipts: entertainment, $70; postage, $30; and printing, $22. Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.
Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry.
______________ a. Fund amount is being reduced.
_____________ b. Fund amount is being increased.
_______________ c. Fund is being eliminated.
_______________ d. Fund is being established.
Answer:
(a) Debit Petty cash account for $150; and Credit Bank for $150.
(b) Debit Petty cash account for $122; and Credit Bank for $122.
The correct options are:
a. Fund amount is being reduced.
c. Fund is being eliminated.
Explanation:
(a) Prepare journal entries to record establishment of the fund.
The journal entry will look as follows:
Details Debit ($) Credit ($)
Petty cash account 150
Bank 150
(To record petty cash fund establishment.)
(b) Prepare journal entries to record reimbursement of the fund at the end of the current period.
Since the fund contained $28 at the end of the current period, we have:
Amount to reimburse = entertainment + postage + printing = $70 + $30 + $22 = $122
The journal entry will now look as follows:
Details Debit ($) Credit ($)
Petty cash account 122
Bank 122
(To record petty cash fund reimbursement.)
c. Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry.
The correct options are:
a. Fund amount is being reduced.
c. Fund is being eliminated.
This is because they both in indicate outflows from the petty cash fund.
McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $75; Z sells for $95. Variable costs for product A are $35; for Z $40. Fixed costs are $418,500. Compute the break-even point in composite units.
Answer:
1,350 units
Explanation:
The computation of the break-even point in composite units is shown below;
Composition contribution margin per unit is
= ($75 - $35) × 5 + ($95 - $40) × 2
= 310
Now break-even point in composite units is
= Fixed cost ÷ Composition contribution margin per unit
= $418,500 ÷ 310
= 1,350 units
A network externality occurs when: Select one: A. there is production cost savings from being networked with suppliers B. the usefulness of a good is affected by how many others use the good C. the usefulness of a good is affected by celebrities who use the good D. there is production cost savings from being networked with buyers. Clear my choice Previous page
Answer:
B
Explanation:
Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting operating income of $26,000 after deducting variable costs of $72,000 and fixed costs of $10,000. Based on this information, the budgeted amounts of fixed and variable costs for 15,000 units would be
Answer:
Fixed Cost = $10,000
Variable Costs = $90,000
Explanation:
Variable Cost per unit = $72,000 ÷ 12,000
= $6
Variable Costs at 15,000 units = $6 x 15,000
= $90,000
Fixed Cost (given) = $10,000
Your client is employed by a large multinational corporation headquarteredin your city. She worked for the company in her native country for five years before being assigned to a U.S.-based position last year. she knows that her employer arranged for a visa for her, but he is unsure about what type of visa and doesn't have any of her paperwork. Your client is likely:__________A) an undocumented immigrantB) a foreign nationalC) a naturalized citizenD) a lawful permanent resident
Answer:
The correct options A) an undocumented immigrant.
Explanation:
Undocumented immigrants are foreign nationals who are in the United States without legal documentation.
These immigrants either entered the US without being screened as required by immigration processes, or they entered the country on a temporary visa and stayed over the visa's expiration date, rendering the visa invalid.
This implies that your client is likely an undocumented immigrant. Therefore, the correct options A) an undocumented immigrant.
Food manufacturers prefer to use ________ as a sweetener because it is easy to transport, has good shelf-stability, is low cost, and improves food properties .
Food manufacturer prefer to use high Fructose corn syrup as a sweetener because it is easy to transport, has good shelf-stability, is low cost and improves food properties.
What is high fructose corn syrup?Fructose corn syrup is generally made from corn starch .It is used to sweetened processed food.
What is shelf stability?Shelf stable food is food that can be stored at room temperature in a sealed container.
To know more about high Fructose corn syrup here;
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Suppose Yakov and Ana are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Yakov chooses Right and Ana chooses Right, Yakov will receive a payoff of 8.
Ana
Left Right
Yakov Left 8,5 8,7
Right 3,6 9,8
a. The only dominant strategy in this game is for _____ to choose _____.
b. The outcome reflecting the unique Nash equilibrium in this game is as follows: Yakov chooses _____ and Ana chooses _____.
Answer:
a. The only dominant strategy in this game is for Ana to choose Right.
b. The outcome reflecting the unique Nash equilibrium in this game is as follows: Yakov chooses Right and Ana chooses Right.
Explanation:
A dominant strategy is one that makes a player better off regardless of the choices made by his or her opponent in a game.
Given:
Ana
Left Right
Yakov Left 8,5 8,7
Right 3,6 9,8
In this game, when Yakov plays Left, Ana will choose Right since 7 > 5. Ana will also choose Right when Yakov plays Right since 8 > 6. This demonstrates that Ana will always play Right, regardless of what Yakov does. This means that Ana's dominant strategy is Right.
On the other hand, when Ana plays Left, Yakov will also play Left because 8 > 3. However, because 9 > 8, when Ana plays Right, Yakov will likewise play Right. This demonstrates that Yakov does not have a specific strategy that makes him better off. As a result, Yakov lacks a dominant strategy.
Based on the above analysis, we have:
a. The only dominant strategy in this game is for Ana to choose Right.
b. The outcome reflecting the unique Nash equilibrium in this game is as follows: Yakov chooses Right and Ana chooses Right.
Brit wants to sell throw blankets for the holiday season at a local flea market. Brit purchases the throws for $15, and sells them to his customers for $35. The rental space is fixed fee of $1500 for the season. Assume there is no leftover value for unsold units. The payoff, if he orders 200 and Demand is 150, is:__________a. 2800. b. 1050. c. 50. d. 800.
Answer:
Correct option is b. 1050.
Explanation:
Note: There is an error in this question as the number of unit of order is 180 NOT 200 erroneously included in the question. The question is therefore fixed and the complete correct question is therefore provided before answering the question as follows:
Brit wants to sell throw blankets for the holiday season at a local flea market. Brit purchases the throws for $15, and sells them to his customers for $35. The rental space is fixed fee of $1500 for the season. Assume there is no leftover value for unsold units. The payoff, if he orders 180 and Demand is 150, is:__________a. 2800. b. 1050. c. 50. d. 800.
The explanation of the order is now provided as follows:
Total revenue = Demand * Selling price = 150 * $35 = $5,250
Cost of purchases = Order * Cost per unit = 180 * $15 = $2,700
Since it is assumed that there is no leftover value for unsold units, this implies that:
Payoff = Total revenue - Cost of purchases - Fixed fee for rental space = $5,250 - $2,700 - $1,500 = $1,050
This implies that the payoff is $1,050. Therefore, correct option is b. 1050.
a. If management reports truthfully, what economic events are likely to prompt the following accounting changes?
• Increase in the estimated life of depreciable assets
• Decrease in the uncollectible allowance as a percentage of gross receivables
• Recognition of revenues at the point of delivery rather than at the point cash is received
• Capitalization of a higher proportion of software R&D costs
b. What features of accounting, if any, would make it costly for dishonest managers to make the same changes without any corresponding economic changes?
Answer:
Increase in the estimated life of depreciable assets
Opinion of third parties
Explanation:
If management reports truthfully, the economic events that are likely to prompt the following accounting changes are an increase in the estimated life of depreciable assets.
The features of accounting, that would make it costly for dishonest managers to make the same changes without any corresponding economic changes is auditing.
Auditiors are the third parties which provide a clean account of the financial statement of the company, therefore if the changes in the accounting policy are consistent with economic changes, the audits will not provide a clean account of the financial statement
A firm has taxes of $2,000, interest expense of $1,000, EBIT of $7,500, common stock dividends of $1,500, and preferred dividends of $1,200. What is the profit margin if sales are $22,000
Answer:
the profit margin is 15%
Explanation:
The computation of the profit margin is shown below:
= (EBIT - interest - taxes - preferred dividend) ÷ Sales
= ($7,500 - $1,000 - $2,000 - $1,200) ÷ $22,000
= $3,300 ÷ $22,000
= 15%
Hence, the profit margin is 15%
Basically the above formula should be applied for the same
1. The advantage of trade is a very important concept in economics. In examining trade between two individuals or two countries, you usually see at least one side specializing in the production of one good. A. What concept is most important in determining which good a person or nation will specialize in the production of
Answer:
Comparative advantage
Explanation:
In simple words, The capacity of a country to provide a certain item or service at a lower opportunity price than its trade rivals is known as competitive advantage. A competitive edge allows a firm to sell products and solutions at a cheaper cost than its rivals while maintaining higher profit margins.
Thus, from the above we can conclude that the correct answer is comparative advantage.
The free market in actual terms, and not in the theoretical ideal, consists of commerce legally constrained by what is economically desirable and what is socially desirable, as well.
Answer: True
Explanation:
In the free market, the goods and services that are sold are those that consumers in the economy require which is why they buy the goods in the first place.
The goods and services that are sold are also socially desirable. This means that in a particular society, the goods and services sold must conform to the social norms and values that the economy holds. In essence, they shouldn't be illegal.
What is the present value of the annual interest payments on a 10-year, $1,000 par value bond with a coupon rate of 10 percent paid annually, if the yield on similar bonds is 9 percent?
Answer: $641.77
Explanation:
First find the interest payments:
= Coupon rate * par value
= 10% * 1,000
= $100
The constant payment represents an annuity therefore the present value is that of an annuity.
Present value of an annuity = Annuity * Present value interest factor of annuity, 9% , 10 years
= 100 * 6.4177
= $641.77
Wholesome Burger, Inc. budgeted 25,000 direct labor hours for producing 100,000 units. The standard direct labor rate is $6 per hour. During March, the company used 30,000 hours for producing 80,000 units and paid $6.25 per hour. Calculate the direct labor rate variance.
Answer:
See below
Explanation:
Given the above information, we will apply the formula below to compute direct labor rate variance.
Direct labor rate variance =
(SR - AR) × AH
Stanadard (Rate) SR = $6
Actual Hour (AR) = $6.25
Actual Hour (AH) = 30,000
Then,
Direct labor rate variance
= ($6 - $6.25) × 30,000
= -$0.25 × 30,000
= -$7,500
= $30,000 Unfavorable
It is unfavourable because the actual rate is more than the budgeted rate.
A river barge company can offer cheaper, although slower, per pound transportation of products to companies when compared with transportation by air, truck, or rail. The river barge company should first target customers whose companies use Group of answer choices
Answer:
The cost leadership strategy
Explanation:
The organization should focused on the cost leadership strategy that fouces on decreasing the cost also in generally it have an interest for employing this option
So as per the given option the river barge should first target customers that use the cost leadership strategy
hence, the same should be considered
Splish Brothers Inc. reported net income of $394000 for the year. During the year, accounts receivable increased by $29000, accounts payable decreased by $12000 and depreciation expense of $61000 was recorded. Net cash provided by operating activities for the year is
Answer:
$414000
Explanation:
Calculation to determine what Net cash provided by operating activities for the year is
Net income $394000
Less Receivable increased ($29000)
Less Accounts payable decreased ($12000)
Add depreciation expense $61000
Net Net cash provided by operating activities $414000
Therefore Net cash provided by operating activities for the year is $414000
The Adams Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company’s cost of internal equity. Adams’s bonds yield 10.28%, and the firm’s analysts estimate that the firm’s risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Adams’s cost of internal equity is:
Answer:
the cost of internal equity is 16.17%
Explanation:
The computation of the cost of internal equity is shown below:
= Yield of the bond + risk premium of the firm
= 10.28% + 4.95%
= 16.17%
Hence, the cost of internal equity is 16.17%
Basically we add the two things so that the cost of internal equity could be determined
R(0,t) is the Spot Zero-Coupon (or Discount) Rate. It is the annualized rate on a pure Unit Discount bond B(0,t) - the bond that pays 1 dollar at time t. Assume that R(0,13) = 8.00 per cent. What is the price of B(0,13)? Answer with three decimal digits accuracy. Example: 0.728
Answer:
0.368
Explanation:
Price of B(0,13) = 1 / (1 + interest rate)^years
Price of B(0,13) = 1 / (1 + 8%)^13
Price of B(0,13) = 1 / (1+0.08)^13
Price of B(0,13) = 1 / (1.08)^13
Price of B(0,13) = 1 / 2.7196237
Price of B(0,13) = 0.3676979247
Price of B(0,13) = 0.368
arget costing can be applied to components of products as well as the new products as a whole. B. Implementing target costing requires detailed information on the cost of alternative activities. C. A primary advantage of target costing is that it requires little or no coordination among processes. D. Short product life cycles increase the importance of target costing.
Answer:
Target costing can be applied to components of products as well as the new products as a whole.
Explanation:
Target cost is the maximum cost to develop, produce, and deliver the product or service and earn the desired profit
Target Cost = Selling Price – Profit Margin
Features of target cost
1. The price at which the good and service is sold is determined by market conditions
2. Cost reduction is the difference between current cost and target cost
Advantages if target cost
1. It ensures that a product being created is profitable
2. Due to the fact that the product is developed in line with consumers wants, it increases the sales of the product
Disadvantage of target costing
1. If cost estimate is wrong, it can lead to failure of the venture
The financial records of ABC Partnership reflect the following capital account balances:
Arthur $150,000
Beatrice 350,000
Charles 100,000
Arthur, Beatrice, and Charles share equally in profits and losses. On January 1, Charles meets with Arthur and Beatrice and decides to withdraw from the partnership in return for a cash payment of $100,000.
What is the balance in Arthur's capital account after Charles' withdraw and distribution of $100,000?
Answer: $150,000
Explanation:
Charles's capital account balance is worth $100,000 which is exactly the amount of cash that will be given to him when he exits the partnership. There ware no bonuses to be given as a result.
Because of this, the other partners will keep the same capital account balances as before Charles left. Had it been that they had to pay Charles more than what his account balance was worth, the bonus would have been paid by the two remaining partners from their capital account balances.
A company's bank statement shows a cash balance of $4,340. Comparing the company's cash records with the monthly bank statement reveals several additional cash transactions such as checks outstanding of $3,900, deposits outstanding of $1,210, NSF check of $320, and service fee of $54. Calculate the correct balance of cash?
Answer:
the correct balance of cash is $1,650
Explanation:
The computation of the correct balance of cash is shown below:
= Cash balance + deposits outstanding - check outstanding
= $4,340 + $1,210 - $3,900
= $1,650
Hence, the correct balance of cash is $1,650
WE basically applied the above formula so that the correct value could arrive
1) Suppose that South Pangean debt is $100 million and the interest rate it pays on that debt is 4 percent. That means its interest payments must be $___million.
2) If South Pangean expenditures are $30 million without interest payments, that means its expenditures with interest payments are $___million.
Answer and Explanation:
The computation is shown below:
a. The interest payment is
= 4% of $100 million
= $4 million
b. The interest expense without interest payment is
= Expenditures incurred without interest payment + interest payment
= $30 million + $4 million
= $34 million
The same should be considered and relevant