Answer:
$650,752
Explanation:
The computation of the avoidable interest is shown below;
But before that following calculations must be done
Interest payable on short term loan
= $2,240,000 × 10%
= $224,000
Interest payable on long term loan
= $1,600,000 × 11%
= $176,000
Therefore,
Weighted average interest rate is
= ($224,000 + $176,000) ÷ ($2,240,000 + $1,600,000) × 100
= 10.42%
Now
Avoidable interest is
= [$3,200,000 × 12%] + [($5,760,000 - $3,200,000) × 10.42%]
= $650,752
2. Suppose you borrow $2,000 at 5% and you are going to make annual payments of $734.42. How long before you pay off the loan
Answer:
3 years
Explanation:
The computation of the time period is shown below
Present value of annuity = Annuity × [1 - (1 + interest rate)^-time period] ÷ rate
$2,000 = $734.42 × [1 - (1.05)^-n] ÷ 0.05
$2,000 = $14,688.4 × [1-(1.05)^-n]
1-(1.05)^-n = ($2000 ÷ $14,688.4)
(1.05)^-n = 1 - ($2000 ÷ $14,688.4)
( 1 ÷ 1.05)^n = 0.86383813
Now take the log to the both sides
n × log(1 ÷ 1.05) = log0.86383813
n = log0.86383813 ÷ log (1 ÷ 1.05)
= 3 years
Copy Center sells laser printers and supplies. Assume Copy Center started the year with containers of ink (average cost of each, FIFO cost of each, LIFO cost of each). During the year, Copy Center purchased containers of ink at and sold units for each. Copy Center paid operating expenses throughout the year, a total of . Ignore income taxes for this exercise. Prepare Copy Center's income statement for the current year ended December 31 under the average, FIFO, and LIFO inventory costing methods. Include a complete statement heading.
Answer:
The question is incomplete, so I looked for a similar one:
Copy Center sells laser printers and supplies. Watson Copy Center started the year with 90 containers of ink (average cost of $ 8.50 each, FIFO cost of $ 8.90 each, LIFO cost of $ 7.80each). During the year, Watson Copy Center purchased 720 containers of ink at $ 10.30 and sold 600 units for $ 19.75 each. Watson Copy Center paid operating expenses throughout the year, a total of $ 5000. Watson Copy Center's income statement-excluding the effects of income tax under each of theaverage-cost, FIFO, and LIFO inventory costing methods--is given.
Total sales revenue = 600 x $19.75 = $11,850
COGS under weighted average = {[(90 x $8.50) + (720 x $10.30)] / 810} x 600 = $6,060
COGS under FIFO = (90 x $8.90) + (510 x $10.30) = $6,054
COGS under LIFO = 600 x $10.30 = $6,180
Copy Center
Income Statement for the year 202x
(using weighted average)
Sales revenue $11,850
COGS ($6,060)
Gross profit $5,790
Operating expenses ($5,000)
Net income $790
Copy Center
Income Statement for the year 202x
(using FIFO)
Sales revenue $11,850
COGS ($6,054)
Gross profit $5,796
Operating expenses ($5,000)
Net income $796
Copy Center
Income Statement for the year 202x
(using LIFO)
Sales revenue $11,850
COGS ($6,180)
Gross profit $5,670
Operating expenses ($5,000)
Net income $670
How do you think this percentage would compare to that of manufacturing corporations? How would you explain this difference?
Question Completion:
A bank’s capital is less than 10 percent of its assets.
Answer:
This 10% percent of the bank's capital will be far less than the capital of manufacturing corporations. The difference in the capital ratio of banks and manufacturing corporations is caused by the nature of a bank's assets and liabilities. A bank's assets are highly funded by depositors' funds but a manufacturing corporation's assets are not mostly funded by creditors' funds but by owners' equity.
Explanation:
Many banks revalue their financial assets more often than manufacturing corporations. Therefore, a bank's assets and liabilities are more volatile than the assets and liabilities of manufacturing corporations. A manufacturing corporation values its assets based on their usefulness and their historical costs. Banks value their assets and liabilities based on regulatory requirements.
If the balance of the Buildings account was $68800 and $5400 of Accounts Payable were paid in cash, what would be the balance of the total stockholders' equity
Answer:
the total stockholders' equity will be $63,400
Explanation:
The Balance Sheet uses the Accounting Equation. Accounting Equation is stated as :
Assets = Equity + Liabilities
Also stated differently the Accounting equation will be
Equity = Assets - Liabilities
Where,
Assets = $68,800
Liabilities = $5,400
Therefore,
Equity = $68,800 - $5,400
= $63,400
Conclusion
The total stockholders' equity will be $63,400
he purpose of this assignment is to identify and research a potential problem that technology could assist in solving. The ultimate goal is to imagine where technology will be in 18-36 months and how it will solve problems. Technology is constantly growing exponentially. As entrepreneurs, you have opportunities to use this technology to solve grand problems within the world that would better the human condition. Write a one to three sentence problem statement highlighting a single key issue and answering the following questions: What is the problem
Answer: Tackling untimely failure of machines
Explanation:
Industies in the manufacturing sector are faced with challenges resulting from machine failure and unexpected shutdowns and causes high cost and so much time loss. One of the ways technology can be used to solve this issue is by producing equipment that would be able to run for an ample of time and when approaching failure or total breakdown it then indicates or signify to the technician or manufacturer about the problem, this would help in averting loss of time and expenses, but this scenario will desire an alternative should this happen.
how does this affect the balance sheet sale of used equipment with book value of 300,000 for 500,000 cas
Answer:
Cash increases by $500,000
Equipment decreases by $300,000
Profit increases by $200,000
Explanation:
Cash increases by $500,000 because the equipment was exchanged for cash.
The equipment (property,plant and equipment account) decreases by $300,000 because this particular equipment will be removed from PPE account.
Equity increases by $200,000 because there is a profit of $200,000 from the sale.
It is December 31, the end of the year, and the controller of Corporation is applying the lower-of-cost-or-market (LCM) rule to inventories. Before any year-end adjustments, reports the following data: Cost of goods sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $425,000 Historical cost of ending inventory, as determined by a physical count. . . . . . . . . . . . . 55,000 determines that the current replacement cost of ending inventory is . Show what should report for ending inventory and for cost of goods sold. Identify the financial statement where each item appears.
Answer:
Inventory will be reported on the Statement of Financial Position / Balance Sheet at $43,000.
Cost of Goods Sold will be reported on the Income Statement / Statement of Profit and Loss at $455,000
Explanation:
Hie, I have attached the full question as images below
When applying the lower-of-cost-or-market (LCM) rule to inventories, inventories are valued at the amount whichever is lower between the Historical Cost of Inventory and the Net Realizable Value of Inventory (Estimated amount after sale).
Where,
Historical Cost of Inventory = $58,000
Net Realizable Value of Inventory = $43,000
Therefore
Inventories will be valued at $43,000 which is lower. The write down of Inventory of $15,000 ($58,000 - $43,000) will increase the Cost of Goods Sold
Thus, the new Cost of Goods Sold will be $455,000 ($440,000 + $15,000)
In late 2008, the Fed purchased $300 billion in long-term Treasury securities and $1.25 trillion in mortgage-backed securities. What was the name given to these types of purchases
Answer:
Quantitative easing
Explanation:
Quantitative easing is a strategy that is used by governments to ease borrowing rates and encourage economic growth.
This is done by buying up long term securities in the economy thereby increasing money supply.
Cost of money is reduced, that is money can now be borrowed at a cheaper rate.
This is exemplified in this scenario where Fed purchased $300 billion in long-term Treasury securities and $1.25 trillion in mortgage-backed securities.
10. Calculate the future value of $2000 in a. 5 years at an interest rate of 5% per year. b. 10 years at an interest rate of 5% per year. c. 5 years at an interest rate of 10% per year. d. Why is the amount of interest earned in part(a) less than half the amount of interest earned in part (b)
Answer and Explanation:
The computation is shown below;
Given that,
Principal = P = $2000
As we know that
Future value (FV) = P × (1 + R)^n
here,
R = Rate of interest,
N = no of years
Now
A) N = 5, R = 5% = 0.05
FV = $2,000 × (1.05)^5
= $2,553
The Interest earned is
= $2,553 - $2,000
= $553
B) N = 10, R = 5% = 0.05
FV = $2,000 × (1.05)^10
= $3,258
The Interest earned is
= $3,258 - $2,000
= $1,258
C) N = 5, R = 10% = 0.10
FV = $2,000 × (1.10)^5
= $3,221
D) Option A
As in the part B the time period is 10 years as compared with the part A i.e. 5 years having the interest rate same
Also the cumulative interest would be greather than double as compared with part A
Bonita Industries began the year by issuing $75500 of common stock for cash. The company recorded revenues of $772000, expenses of $666000, and paid dividends of $45000. What was Bonita net income for the year
Answer:
net income = $106,000
Explanation:
net income = total revenues - total expenses = $772,000 - $666,000 = $106,000
Any additional capital raised will increase the company's cash flows (financing activity) and any dividends distributed will decrease them (another financing activity), but they do not affect the company's net income.
Assume that Beaver uses the periodic system, and the end of period ending inventory for January is 110 units. a. Prepare all necessary journal entries to record the transactions above including end-of-month closing entry to record cost of goods sold.
Answer:
Part 1 a
jan 4
Debit ; Accounts Receivable (80 x $8.00) $640
Credit : Revenue $640
jan 11
Debit ; Purchases (150 x $6) $900
Credit : Accounts Payable $900
jan 13
Debit ; Accounts Receivable (120 x $8.75) $1,050
Credit : Revenue $1,050
jan 20
Debit ; Purchases (160 x $7) $1,120
Credit : Accounts Payable $1,120
jan 27
Debit ; Accounts Receivable (100 x $9.00) $900
Credit : Revenue $900
jan 31
Debit ; Cost of Sales (100 x $5 + 150 x $6 + 160 x $7) $2,520
Credit : Inventory $2,520
Part 1 b
Gross Profit = Sales - Cost of Sales
Sales = ( 80 x $8.00 + 120 x $8.75 + 100 x $9.00) = $2,590
Cost of Sales = (100 x $5 + 150 x $6 + 160 x $7) = $2,520
Therefore,
Gross Profit = $2,590 - $2,520
= $70
Part 2 a
jan 4
Debit ; Accounts Receivable (80 x $8.00) $640
Debit : Cost of Sales (80 x $5.00) $400
Credit : Revenue (80 x $8.00) $640
Credit : Inventory (80 x $5.00) $400
jan 11
Debit ; Purchases (150 x $6) $900
Credit : Accounts Payable $900
jan 13
Debit ; Accounts Receivable (120 x $8.75) $1,050
Debit : Cost of Sales (20 x $5.00 + 100 x $6) $700
Credit : Revenue (120 x $8.75) $1,050
Credit : Inventory (20 x $5.00 + 100 x $6) $700
jan 20
Debit ; Purchases (160 x $7) $1,120
Credit : Accounts Payable $1,120
jan 27
Debit ; Accounts Receivable (100 x $9.00) $900
Debit : Cost of Sales (50 x $6.00 + 50 x $7) $650
Credit : Revenue (100 x $9.00) $900
Credit : Inventory (50 x $6.00 + 50 x $7) $650
Part 2 b
Gross Profit = Sales - Cost of Sales
Sales = ( 80 x $8.00 + 120 x $8.75 + 100 x $9.00) = $2,590
Cost of Sales = ($400 + $700 + $650) = $1,750
Therefore,
Gross Profit = $2,590 - $1,750
= $840
Explanation:
Hie, see the attached the full question as images below
Part 1
Note that the question in this part requires us to use the Periodic Inventory System. In Periodic Inventory system, Inventory Valuation and calculation of Cost of Goods Sold is done at the end of the Period, in this case at the end of the month of January.
Part 2
Again it is important to note that the question in this part requires us to use the Perpetual Inventory System. In Perpetual Inventory system, Inventory Valuation and calculation of Cost of Goods Sold is done at the after each and every transaction made.
Overall Comment
The Company use of FIFO should be considered in both the Periodic Inventory System in Part 1 and Perpetual Inventory System in Part 2. FIFO method assumes that the first goods received by the business will be the first ones to be delivered to the final customer.
That said, Cost of Sales for Part 1 are determined and recognized at the end of the period and Cost of Sales for Part 2 are determined and recognized after every sale transaction made
Financial statements of Kansas Ltd (Fr) for 2X13 are authorized by management and auditors on February 15, 2X13 for issuance on February 28, 2X13. On February 20, Kansas settles as a plaintiff (payer of settlement) a 5 million Euro lawsuit. CFO of Kansas Ltd (Fr) makes a second decision regarding the presentation of the financial statements and decides this settlement does not need to be recognized in 2X13. He is:
Answer:
a) In compliance with the IFRS
Explanation:
Since in the question it is mentioned that The financial statement of kansas ltd would be authorized by the management and auditors as on Feb 15 fpr issuance. On Feb 20 it settled as a plaintiff a 5 million euro lawsuit. Now the CFO of the company have make the second decision regarding the financial statement presentation in which he decides not to record this settlement so here is in compliance with the IFRS
Therefore the option A is correct
what do you think makes us free
Answer:
Refers to the ability of a person to act out of his own free will and self-determination. This means that a person may decide to act or not to act, and these decisions are made out of his own free will. also means that a person may act even if he is not required or called to take action.
Explanation:
Consider the supply of avocados. Explain why a change in the price of fertilizer causes a shift in the supply curve for avocados rather than a movement along the supply curve for avocados.
Answer:
Only a change in the price of a good leads to a movement along the supply curve of the good. Other factors lead to a shift of the demand curve.
So a change in the price of fertilizers, would lead to a shift of the supply curve. If the price of fertilizers reduce, supply of avocados would increase and the supply curve would shift outward. If the price of fertilizers increases, the supply curve would shift inward
If the price of avocados increased, there would be a movement up along the supply curve of avocados. If the price of avocados decreased, there would be a movement down along the supply curve of avocados.
Explanation:
Clancy is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Clancy has only 20 hours this week that he can devote to training. Each hour he spends swimming is an hour that he can't spend biking or running. Which basic principle of individual choice do these statements best illustrate?
Answer: People face trade off
Explanation:
The basic principle of individual choice that these statements best illustrate is referred to as trade off.
Trade-off occurs when one has to make a compromise between two particular things such that when one increases one, the other decreases. A gain for a particular thing is a loss for something else.
Indicate the category of each item in GDP, or whether it is not in GDP. Assume products are made domestically unless indicated otherwise: A gas station installs new pumps. multiple choice 1 Consumption Investment Govt. Purchases Imports or Exports Not in GDP A bakery buys flour. g
Answer:
It is included in GDP as part of Investment
It is not included in GDP because it is an intermediate good.
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
Intermediate goods are goods used in the production of other goods. They are not included in GDP. Flour is an intermediate good because it is used in the production of bread and pastries
Cullumber uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $379000 ($583000), purchases during the current year at cost (retail) were $1835000 ($3080000), freight-in on these purchases totaled $118000, sales during the current year totaled $2780000, and net markups (markdowns) were $61000 ($97000). What is the ending inventory value at cost? Hint: Round intermediate calculation to 3 decimal places, e.g. 0.635 and final answer to 0 decimal places.
Answer:
$544,621
Explanation:
Cost :
Merchandize available for sale
= Beginning inventory + Purchases + Freight in
= $379,000 + $1,835,000 + $118,000
= $2,332,000
Retail:
Merchandize available for sale
= Beginning inventory + Purchases + Markup
= $583,000 + $3,080,000 + $61,000
= $3,724,000
Ending inventory at retail
= Retail total - Mark down - Net sales
= $3,724,000 - $97,000 - $2,780,000
= $847,000
Cost to retail ratio
= $2,332,000 ÷ ( $2,780,000 + $847,000)
= $2,332,000 ÷ $3,627,000
= 64.30%
Since ending inventory at retail = $847,000
And
Cost to retail = 64.30%
Therefore,
Ending inventory at cost = $847,000 × 64.30%
Ending inventory at cost = $544,621
Stephanie would like to study abroad for a year before graduating from college. She would like to live in a country that has experienced economic growth for at least five years. She can choose from campus abroad programs in three different countries. What could she use to measure the economic performance of the three countries
Answer:
Gross Domestic Product.
Explanation:
The Gross Domestic Product is the measure to scale the economy of any country. They are used by the experts or the economist to check how each country is performing in their national productions which boost their economy.
The Gross Domestic Product is the total produce of a country in terms of products as well as services of that country in a particular financial year. It is popularly known as the GDP. It is used to measure the economic performances of any country.
In the context, Stephanie wishes to study abroad in such a country which has economic growth for the last five years. For this she could see how much is the GDP of that country. More is the GDP, more is the economic growth of the country.
Thus Stephanie uses Gross Domestic Product or GDP to measure the economic performance of the countries.
Cash flows from collections on credit sales are usually reported in the statement of cash flows as part of:
Answer:
Operating Activity
Explanation:
Multiple options " Investing activities, Noncash activities, This is not reported in the statement of cash flows, Operating activities, Financing activities."
Cash Flows Collected From the Credit Sales are Reported as an operating activity on the Cash flow Statement. Cash flows Statement Reports the Cash inflows and Cash outflows resulted from the operating, Financing and Investing Activities. Cash flow from operating activities are cash flow from the normal business activity of buying and selling goods and services.
Use this information to answer the next question. What is the unemployment rate for this nation? All numbers are in millions: Population of the nation - 125; Size of the labor force - 75; Number of employed workers - 50; Number of unemployed workers - 25
Answer:
33.33%
Explanation:
Unemployment rate is the proportion of the labour force without a job
Unemployment rate = (number of unemployed workers / total labour force ) x 100
25 /75 x 100 = 33.33%
Andrew owns a cooperative apartment and would like to verify if he is allowed to install a washer/dryer in his unit. Where should Andrew look to find this information...?
Answer:
Cooperative house rules
Explanation:
A cooperative house rules can be defined as the set of rules and regulations that are set by mortgage companies to regulate the activities and actions of the house owners.
In this scenario, Andrew owns a cooperative apartment and would like to verify if he is allowed to install a washer/dryer in his unit. Therefore, Andrew should look at the cooperative house rules to find the information pertaining to whether or not, he's permitted (allowed) to install a washer or dryer in his unit.
You are interested in purchasing a new automobile that costs $35,000. The dealership offers you a special financing rate of 6% APR (0.5%) per month for 48 months. Assuming that you do not make a down payment on the auto and you take the dealer's financing deal, then your monthly car payments would be closest to:
Answer:
Monthly car payments would be closest to $822
Explanation:
Use the following formula to calculate the monthly car payment
PV of Annuity = Annuity Payment x ( 1 - ( 1 + interest rate )^-Numbers of periods ) / Interest rates
Where
Interest rate = 0.5% per month
Numbers of periods = 48 months
PV of Annuity = $35,000
Annuity Payment = Monthly car payment = ?
Placing values in the formula
$35,000 = Monthly Payment x ( 1 - ( 1 + 0.5% )^-48 ) / 0.5%
$35,000 = Monthly Payment x 42.58031778
Monthly Payment = $35,000 / 42.58031778
Monthly Payment = $821.9760167
Monthly Payment = $821.98 ( Rounded to two decimal number )
Monthly Payment = $822 ( Rounde to dollar value )
NYC Marketing gave celebrities new, frayed caps with the logo for its sanitation department, which are available for sale online and in city souvenir shops. This is an example of __________________ marketing. Group of answer choices
Answer: Buzz
Explanation:
Based on the information given in the question, the above marketing is an example of buzz marketing. Buzz marketing is using wore of mouth in such a way that it'll work in ones favour whereby people will eventually start sharing it on their own or start talking about that product.
Since NYC Marketing gave celebrities new, frayed caps with the logo for its sanitation department, this can motivate people to start buying the goods sold by the company.
Having _________ information can help you determine your restaurant’s concept and tell you if your business has a chance to succeed to a particular location
If the nominal annual interest rate is 9% compounded quarterly, what is the effective annual interest rate
Answer: 9.3%
Explanation:
You can find the effective annual rate by the formula:
effective rate = (1 + nominal rate/ no. of compounding periods in a year)^no. of compounding periods in a year - 1
= (1 + 9%/4)⁴ - 1
= 1.093 - 1
= 9.3%
The flowtime of the last job in a single work center’s schedule is 7 days. What is the makespan of this schedule?
Answer:
7 days
Explanation:
Makes-pan means the time it takes to complete a schedule. Last job took 7 days to complete and it was a single job, which means its makes-pan was 7 days as well.
A business will want to borrow to undertake an investment project when the rate of return on that project is:
Answer:
B) higher than the interest rate.
Explanation:
In the case when the business wants to borrow for a project so the rate of return would be greater than the rate of interest
And in the case when the rate of interest is lesser than the expected return so the investment would look attractive due to this there is a rise in the borrowing for that investment
Hence, the option b is correct
Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 87,000 shares of $5 par common stock. During 2018, Roberto had the following transactions relating to shareholders' equity: Issued 10,800 shares of common stock at $5.70 per share. Issued 19,800 shares of common stock at $8.70 per share. Reported a net income of $101,000. Paid dividends of $52,000. Purchased 2,700 shares of treasury stock at $10.70 (part of the 19,800 shares issued at $8.70). What is total shareholders' equity at the end of 2018
Answer:
$259,330
Explanation:
Total shareholders equity are all monies provided by the shareholders including reserves set aside for them. The total shareholders' equity is determined as follows :
Total shareholders' equity = Common Stocks + Retained Earnings
Common Stocks Outstanding Calculation
Issued Shares (1st Issue) (10,800 x $5.70) $61,560
Issued Shares (2nd Issue) ( 19,800 × $8.70) $172,260
Repurchase ( 2,700 × $8.70) ($23,490)
Total Equity $210,330
Retained Earnings Calculation
Opening Balance $ 0
Add Profit for the Year $101,000
Less Dividends ($52,000)
Ending Balance $49,000
Therefore,
Total shareholders' equity = $210,330 + $49,000
= $259,330
Askin again cuz I rly need help
My business class suuuuckkks :(
A group of cotton growers in North Georgia and North Alabama pooled their resources to build a cotton gin and storage area for the ginned cotton. They marketed their cotton to textile mills under one label. This collective ownership organization is a:
Answer:
D. cooperative
Explanation:
A cooperative is a business type where the business is managed and controlled by its members. Here the people are come together to accomplish their goal via pooling their resources also sharing the risk at the same time.
So as per the given situation since the cotton would be marketed to textile mills under one label
so here collective ownership organization represent the cooperative
hence, the option d is correct