Answer: See explanation
Explanation:
a. . If the tax rate is 24 percent, what is the value of the company?
= [($115,000 × (1-24%)]/13%
= ($115,000 × 76%)/13%
= ($115000 × 0.76)/0.13
= $87400/0.13
= $672307.69
b. What will the value be if the company borrows $255,000 and uses the proceeds to repurchase shares?
= $672307.69 + ($255000×24%)
= $672307.69 + ($255000 × 0.24)
= $672307.69 + $61200
= $733507.69
If the wage is larger than the marginal revenue product of labor then the profit maximizing firm will
Answer:
decrease the units of labor
Explanation:
The marginal revenue product is basically the market price of the extra goods or services produced by employing one additional unit of resources (in this case labor). If hiring an additional unit of labor results in a higher MRP than the cost of labor, then the company will keep adding labor until the cost of labor is higher than the MRP generated by that unit of labor.
E.g. A worker earns $100 per day. He can produce 40 units and each unit is sold at $5. Since the MRP of labor is higher than the cost of labor, more workers will be hired. But eventually, a worker will only be able to produce 20 or less units (law of decreasing marginal returns), and the MRP will be less than the cost of labor. At that point, the worker will be fired.
which of the following is the most common form of the research title
Utility line workers may need to tolerate heights.
OA.
True
OB.
False
Answer:
true
Explanation:
they need to go high
Answer:
true
Explanation:
when a natural disaster happens, what usually happens to stock prices?
Explanation:
During natural disasters , the stock index decreases on the day of the events and on the two subsequent days. Therefore, investors should short sell the index on the day of the disaster and hold it for 2 days.
"You wrote a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. A large networking company wants to incorporate your software into its systems and is offering to pay you $516,000 today, plus $516,000 at the end of each of the following six years, for permission to do this. If the appropriate interest rate is 6 percent, what is the present value of the cash flow stream that the company is offering you? (Round factor values to 4 decimal places, e.g. 1.5215 and final answer to 2 decimal places, e.g. 15.25.)"
Answer: $3,053,326.80
Explanation:
Constant payments are annuities so the $516,000 annual payment is one.
Seeing as you will get a payment of $516,000 today, that is the present value of that first payment. The total present value therefore will be that first $516,000 plus the present value of the annuity discounted at 6% for 6 years.
Present value of Annuity = Annuity * Present value interest factor for 6%, 6 years.
= 516,000 * 4.9173
= $2,537,326.80
Present Value of cashflow;
= 516,000 + 2,537,326.80
= $3,053,326.80
McGill and Smyth have capital balances on January 1 of $50,000 and $40,000, respectively.
The partnership income-sharing agreement provides for
• annual salaries of $22,000 for McGill and $12,000 for Smyth,
• interest at 10% on beginning capital balances, and,
• remaining income or loss to be shared 60% by McGill and 40% by Smyth.
Requirement:
(1) If the income was $50,000, what will be the distribution of income to each partner?
(2) If the income was $36,000, what will be the distribution of income to each partner?
(3) Journalize the allocation of net income in each of the situations above.
Explanation:
5800 is interest,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,, ,,,
Is goodwill current asset?
Answer: Goodwill is recorded as an intangible asset on the acquiring company's balance sheet under the long-term assets account. Goodwill is considered an intangible (or non-current) asset because it is not a physical asset like buildings or equipment
Explanation:
4)
What is a rational economic decision?
A)
One in which there are no opportunity costs.
One in which marginal benefits exceed marginal costs.
One in which marginal costs exceed marginal benefits.
D)
One in which the benefits are unknown, but costs are low.
Answer:
One in which marginal benefits exceed marginal costs.
Explanation:
A ration decision implies a sensible or reasonable decision. A rational economic decision has undergone the process of comparing costs and benefits to determine the best option. A rational decision benefits outweigh or are equal to its costs.
Marginal benefit is the additional gain associated with the production or sale of one more unit, while the marginal cost is the expense of making or selling an extra product. A ration decision will have marginal benefit exceed or equal to marginal cost.
) Case Study: Nancy, a 28 year-old marketing analyst in Minneapolis, has a fear of bridges. She takes a very long route to get to work (and to clients) in order to avoid driving over any bridges. Recently, she considered applying for another job, which could have meant a substantial salary increase. However, when she arrived at the building, she discovered that she would have to cross a footbridge to enter the building. She was unable to do that, even for the interview. Nancy may suffer from ___.
Answer:
Gephyrophobia
Explanation:
Nancy may suffer from gephyrophobia because she has a fear of bridges. This phobia is the anxiety disorder or specific phobia characterized by the fear of bridges. Thus, the patient of gephyrophobia may avoid routes that will take them over bridges.
Galvanized Products is considering purchasing a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $90,000. Galvanized Products is planning to borrow 1/4th of the purchase price from a bank at 18.00 % compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to last 5 years and has a salvage value of $4,600 at that time. Over the 5-year period, Galvanized Products expects to pay a technician $28,000 per year to maintain the system but will save $51,000 per year through increased efficiencies. Galvanized Products uses a MARR of 18.00 %/year to evaluate investments.
What is the present worth of this investment?
The purchase price is 90,000
OCD exchanged old realty for new like-kind realty. OCD’s adjusted basis in the old realty was $31,700 ($60,000 initial cost − $28,300 accumulated depreciation), and its FMV was $48,000. Because the new realty was worth only $45,000, OCD received $3,000 cash in addition to the new realty. a-1. Compute OCD's realized gain. a-2. Determine the amount and character of any recognized gain. b. Compute OCD’s basis in its new realty.
Answer:
A. $16,300 gain
B. $31,700
Explanation:
A. Computation of OCD's realized gain.
Using this formula
OCD's realized gain=Amount realized-Basis in old realty
Let plug in the formula
OCD's realized gain=$48,000-$31,700
OCD's realized gain=$16,300 gain
Therefore OCD's realized gain is $16,300 gain
B. Based on the information given we were told that the adjusted basis in the old realty was the amount of $31,700 which means that OCD’s basis in its new realty will be $31,700
Which of the following statements is NOT CORRECT? a. Sunk costs are the costs associated with "the road not taken". They represent the alternative cost of an asset if that asset were not already owned by the firm; therefore, these costs should be included in the capital budgeting analysis. b. Opportunity costs and sunk costs are tricky when analyzing capital budgeting projects. In summary, for a correct capital budgeting analysis, opportunity costs must be included in the analysis while sunk costs should be ignored—the money is gone whether the project is undertaken or not. c. Sunk costs are cash outlays a company has made in the past, and they can't be recovered whether the new project goes forward or not. Thus, you don't include these costs in the project's capital budgeting analysis. d. An opportunity cost represents the best return a company could get on an asset it already owns. It is the cost of losing out on something if you greenlight the project, so you want to include this cost in the capital budgeting analysis. e. While an opportunity cost is not an actual cash outlay, this cost must be added to the project's costs when you calculate its net present value.
Answer:
A
Explanation:
Sunk cost is cost that has already been incurred and cannot be recovered. It should not be considered in making future decisions.
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. Opportunity costs are costs associated with "the road not taken".
An example of opportunity cost : you quit your job where you ern $50,000 to start your business. the opportunity cost of starting your business is $50,000 - your salary that you would be forgoing to start your business
To increase tax revenue, the U.S. government imposed a 2-cent tax on checks written on bank account deposits in 1932 (in today's dollars, about 34 cents per check). Complete the following statements on the impact of this tax on the money multiplier and the money supply. a. The tax on checks written would make people less likely to write checks. Thus, people might start holding more money as demand deposits . This would increase the currency-deposit ratio. b. Under this check tax, the money supply would have increased, because the currency-deposit ratio increased, which in turn increases the money multiplier. increased, because the currency-deposit ratio increased, which in turn decreases the money multiplier. decreased, because the currency-deposit ratio increased, which in turn increases the money multiplier. decreased, because the currency-deposit ratio increased, which in turn decreases the money multiplier. not changed, because the check tax would not impact the money supply or the money multiplier. c. Some economists argue the sharp decline in the money supply is at least partially at fault for the severity of the Great Depression. The check tax was intended to increase government revenue. However, the unintended consequence was to decrease deposits in banks, which reduced the money supply further. From this perspective, the check tax policy was a bad idea .
Answer:
b. Under this check tax, the money supply would have increased, because the currency-deposit ratio increased, which in turn increases the money multiplier.
Explanation:
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for July is:
Question Completion:
Chavez Corporation reported the following data for the month of July: What is the cost of goods manufactured for July?
Inventories: Beginning Ending
Raw materials $29,000 $31,000
Work in process 17,000 19,000
Finished goods 33,000 48,000
Additional information:
Raw materials purchases $67,000
Direct labor cost $92,000
Manufacturing overhead cost incurred $60,000
Indirect materials included in manufacturing
overhead cost incurred $8,400
Manufacturing overhead cost
applied to Work in Process $59,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
The cost of goods manufactured for July is:
A) $205,600
B) $218,600
C) $207,600
D) $219,600
Answer:
Chavez Corporation
Cost of Goods Manufactured for July is:
A) $205,600
Explanation:
T-accounts as workings:
Raw materials
Account Titles Debit Credit
Beginning balance $29,000
Purchases 67,000
Work in Process $56,600
Manufacturing overhead 8,400
Ending balance $31,000
Totals $96,000 $96,000
Work in Process
Account Titles Debit Credit
Beginning balance $17,000
Raw materials 56,600
Direct labor cost 92,000
Overhead applied 59,000
Finished Goods $205,600
Ending balance $19,000
Totals $224,600 $224,600
Finished Goods
Account Titles Debit Credit
Beginning balance $33,000
Work in Process 205,600
Cost of Goods Sold $190,600
Ending balance $48,000
Totals $238,600 $238,600
Manufacturing Overhead
Account Titles Debit Credit
Cash $51,600
Raw materials 8,400
WIP: overhead applied $59,000
Cost of Goods Sold 1,000
Totals $60,000 $60,000
Cost of Goods Sold
Account Titles Debit Credit
Finished Goods $190,600
Manufacturing overhead 1,000
Income Statement $191,600
Total $191,600 $191,600
ethical dilemma ethical lapse
Answer:
An ethical lapse is a mistake or error in judgement that produces a harmful outcome (Roslyn Frenz, n.d., para. ... Otherwise there are grave consequences for such ethical lapses and could result in widespread harm to the company and to the society at large.
In both situations presented, I believe them to be ethical dilemmas. An ethical dilemma is considered to be a problem between two possibilities that are not acceptable or preferable. Making a choice between the two would result in hurting the other. Employing the child is wrong because of labor laws, but the child is able to provide for themselves because of it. Taking away the employment would make the child homeless and hungry. The second scenario is also a dilemma because you run the risks of loosing profits if you do things the correct way. Neither choice would result in a preferable outcome. Doing the right thing sometimes comes with a price.
Explanation:
Examples of ethical lapses include business-related misconduct such as fraud, bribery, insider trading, and environmental disasters involving negligence or recklessness. They also include personal ethical misconduct, such as inflated résumés and sexual indiscretions.
Describe personal selling. Personal selling is direct communication between a sales representative and one or more prospective buyers in an attempt to influence each other in a purchase situation. Broadly speaking, all businesspeople use personal selling to promote themselves and their ideas. Personal selling offers several advantages over other forms of promotion. Personal selling allows salespeople to thoroughly explain and demonstrate a product. Salespeople have the flexibility to tailor a sales proposal to the needs and preferences of individual customers. Personal selling is more efficient than other forms of promotion because salespeople target qualified prospects and avoid wasting efforts on unlikely buyers. Personal selling affords greater managerial control over promotion costs. Finally, personal selling is the most effective method of closing a sale and producing satisfied customers.
5.1 Discuss the role of personal selling in promoting products. What advantages does personal selling offer over other forms of promotion?
5.2 What are the major advantages of personal selling to the company selling a product? What are the advantages to the person or company buying the product?
Explanation:
5.1 Discuss the role of personal selling in promoting products. What advantages does personal selling offer over other forms of promotion?
Personal selling is a traditional sales method that consists of a more personalized service and a more efficient product promotion compared to other forms of promotion. This is due to the fact that, in a personal sale, there is the direct influence of the seller to explain the functionalities and characteristics of a product, which is usually done using sales and negotiation techniques that directly influence the buyer to feel the need for the product that is being promoted. The advantages of personal selling as opposed to other types of promotion, is the possibility of reducing the time and effort of purchase, since in this type of sale, the seller goes to the customer to offer the product.
5.2 What are the major advantages of personal selling to the company selling a product? What are the advantages to the person or company buying the product?
The biggest advantages of personal selling for the company that sells a product is the greater possibility of having a closed purchase, since the potential sales are made with your potential customers. There is also a decrease with other types of product promotion, which can be costly, such as advertising an advertisement on television, and which may not generate the expected goal of increasing product sales.
The advantages for the person or company that buys the product is the possibility of knowing and seeing the functionality of the product before purchasing and the possibility of negotiating and providing meaningful feedback, which can influence the seller to make the sales proposal more flexible by making it more attractive to the customer. Personal selling also creates value for the customer, as the service is personalized, based on their profile, characteristics, desires and needs.
The financial statements of Flathead Lake Manufacturing Company are shown below. Income Statement 2017 Sales $ 9,300,000 Cost of Goods Sold 5,750,000 Depreciation Expense 550,000 Gross Profit $ 3,000,000 Selling and Administrative Expenses 2,200,000 EBIT $ 800,000 Interest Expense 200,000 Income before Tax $ 600,000 Taxes 375,000 Net Income $ 225,000 Flathead Lake Manufacturing Comparative Balance Sheets 2017 2016 Cash $ 50,000 $ 40,000 Accounts Receivable 570,000 600,000 Inventory 530,000 460,000 Total Current Assets $ 1,150,000 $ 1,100,000 Fixed Assets 2,050,000 1,400,000 Total Assets $ 3,200,000 $ 2,500,000 Accounts Payable $ 320,000 $ 300,000 Bank Loans 480,000 400,000 Total Current Liabilities $ 800,000 $ 700,000 Long-term Bonds 1,500,000 1,000,000 Total Liabilities $ 2,300,000 $ 1,700,000 Common Stock (200,000 shares) 200,000 200,000 Retainded Earnings 700,000 600,000 Total Equity $ 900,000 $ 800,000 Total Liabilities and Equity $ 3,200,000 $ 2,500,000 Note: The common shares are trading in the stock market for $15 per share. Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's return on equity ratio for 2017 is _________. (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.)
Question attached
Answer and Explanation:
Answer and explanation attached
A segment is unattractive if the company's suppliers are able to raise prices or reduce quantity supplied. Which of the following is the best illustration of the threat of suppliers' growing bargaining power? A. Sears unsuccessfully attempted to compete with WaI-Mart and Kmart. B. McDonald's is the largest fast food franchise and is still growing. C. The U.S. Post Office has merged package operations with FedEx. D. Oil companies must purchase a significant amount of their product from OPEC. E. Wal-Mart has almost no competitors in its market space.
Answer:
D
Explanation:
The bargaining strength of suppliers is one of Porters five forces. The higher the bargaining power, the less attractive a segment is as companies would not have less power to negotiate prices for their supplies.
Bargaining power would be lower where there are less number of suppliers. This is the case with oil companies that have to purchase their oil from OPEC. They have no choice but to buy from OPEC. If OPEC increases oil prices, oil companies don't have the option of buying from another supplier
Interest rates affect corporate profits and security prices. Based on your understanding of the relationship between interest rates and corporate profits and security prices,identify which of the following statements is true and which is false. Statements 1. Interest rates affect the level of economic activity, which in turn affects the profits earned by a business organization, all other considerations remaining constant. 2. Interest rates will affect the preference of investors to own stocks versus owning bonds. 3. A sharp decrease in interest rates will increase the price of bonds, which can significantly decrease the potential for capital gains and the yield earned by a bondholder. This should decrease the demand for bonds compared to the demand for stocks, all other considerations remaining constant. 4. An increase in market interest rates will increase the opportunity cost of investors' funds and increase the price of financial assets.
Answer:
1. Interest rates affect the level of economic activity, which in turn affects the profits earned by a business organization, all other considerations remaining constant.
TRUE, higher interest rates "cool down" the economy, reducing economic activity, disposable income and the profits earned by companies. Lower interests rates due the opposite.
2. Interest rates will affect the preference of investors to own stocks versus owning bonds.
TRUE, e.g. if interest rates increase, the price of bonds decrease, which can result in higher yields for bondholders. Since money is limited, if more people invest in bonds, less people will invest in stocks. A decrease in interest rates results in the opposite.
3. A sharp decrease in interest rates will increase the price of bonds, which can significantly decrease the potential for capital gains and the yield earned by a bondholder. This should decrease the demand for bonds compared to the demand for stocks, all other considerations remaining constant.
TRUE, for the same reasons as question 2.
4. An increase in market interest rates will increase the opportunity cost of investors' funds and increase the price of financial assets.
FALSE, as the interest rates increase, the price of financial assets decrease. They basically go on the opposite way. If the interest rates decrease, then the price of financial assets increases.
City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $23,700. In addition, City paid sales tax and title fees of $570 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,360. Required a. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2. (Round your answers to the nearest whole dollar amount.) b. Assume the auto was sold on January 1, Year 3, for $19,672. Determine the amount of gain or loss that would be recognized on the asset disposal. (Round the intermediate calculations to nearest whole dollar amount.)
Answer: See explanation
Explanation:
Note that the depreciable cost was calculated as $17910 and the depreciation per year was:
= $17910/5
= $3582
Also, the book value of the taxi was calculated as:
= Cost - Accumulated depreciation
= $24270 - ($3582 × 2)
= $24270 - $7164
= $17106
Check the attachment for further explanation.
Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pool Activity Rate Setting up batches $ 59.71 per batch Processing customer orders $ 73.05 per customer order Assembling products $ 4.40 per assembly hour Data concerning two products appear below: Product K91B Product F65O Number of batches 92 63 Number of customer orders 42 56 Number of assembly hours 496 903 How much overhead cost would be assigned to Product K91B using the activity-based costing system? (Round your intermediate calculations and final answers to 2 decimal places.)
Answer:
Total allocated costs= $10,743.82
Explanation:
Giving the following information:
Activity Cost Pool Activity Rate
Setting up batches $ 59.71 per batch
Processing customer orders $ 73.05 per customer order
Assembling products $ 4.40 per assembly hour
Product K91B:
Number of batches 92
Number of customer orders 42
Number of assembly hours 496
To allocate overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Setting up= 59.71*92= 5,493.32
Processing= 73.05*42= 3,068.1
Assembling= 4.40*496= 2,182.4
Total allocated costs= $10,743.82
Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $2,090 and sells the remote separately for $270, and offers the entire package for $2,580. VP does not sell the installation service separately. VP is aware that other similar vendors charge $320 for the installation service. VP also estimates that it incurs approximately $270 of compensation and other costs for VP staff to provide the installation service. VP typically charges 50% above cost on similar sales. Required: 1. to 3. Calculate the stand-alone selling price of the installation service using each of the following approaches.
Answer:
1. Adjusted Market Assessment
= $320Here the selling price will be based on what the competitors are charging for the same or a similar service.
As VP competitors are charging $320 for the service, the stand-alone selling price of the installation service will be $320 under this approach.
2. Expected Cost plus Margin
Here the company will add a margin on the expenses and costs it incurs to provide the service.
VP incurs $270 of compensation and other costs for VP staff and typically charges a 50% margin above cost on similar sales.
Selling price = 270 * ( 1 + 50%)
= $4053. Residual
Under this approach, all other components of the package sale are subtracted from the package price and the amount remaining will be the price of the component in question.
= Package - 60-inch TV - remote
= 2,580 - 2,090 - 270
= $220Sarah is using the needs approach to determine how much life insurance to buy. Her cash needs are $30,000; her income needs are $140,000; and special needs are $100,000. Sarah has the following assets: $20,000 in bank accounts, $30,000 in retirement plans, and $40,000 in investment accounts. Sarah owns no individual life insurance. She is covered by a $50,000 group life insurance policy through her employer. Based on this information, how much additional life insurance should Sarah purchase? A. $80,000 B. $130,000 C. $150,000 D. $160,000
Answer:
$130,000
Explanation:
Sarah is making use of the needs approach to determine how much life insurance to buy
The first step is to calculate the total amount of life insurance
Total amount of life insurance = Total needs - total assets
Total need = income needs + cash needs + special needs
= $140,000 + $30,000 + $100,000
= $270,000
Total assets= retirement plan + bank account + investment account
= $30,000 + $20,000 + $40,000
= $90,000
Total amount of life insurance = $270,000-$90,000
= $180,000
Since Sarah is covered by $50,000 group insurance by her employer then the additional life insurance that should be purchased can be calculated as follows
= $180,000 - $50,000
= $130,000
Match the given descriptions to the accurate accounting term.
1.prepayment
2.payable
3.contra-revenue
4.receivable
5.dividend
sales return
expenses paid in advance
company needs to pay to a vendor for purchase made
a customer who needs to pay to the company for buying goods from it
part of the profit paid to shareholders of the company
1. Prepayment - expenses paid in advance
2. Payable - company needs to pay to a vendor for purchase made
3. Contra-revenue - sales returns
4. Receivable - a customer who needs to pay to the company for buying goods from it
5. Dividend - part of the profit paid to shareholders of the company
The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year: Ending Balances Cash ? Accounts receivable $ 10,100 Supplies inventory $ 4,600 Equipment $ 44,000 Accumulated depreciation $ 17,800 Accounts payable $ 3,800 Common stock $ 5,000 Retained earnings ? The beginning balance of retained earnings was $37,000, net income is budgeted to be $21,700, and dividends are budgeted to be $4,300.
Answer:
Mecca Copy
Budgeted Balance Sheet
Ending Balances Cash $22,300
Accounts receivable $ 10,100
Supplies inventory $ 4,600
Equipment $ 44,000
Accumulated depreciation $ 17,800 $26,200
Total Assets $63,200
Accounts payable $ 3,800
Common stock $ 5,000
Retained earnings $54,400
Total Liabilities + Stockholders' Equity $63,200
Explanation:
a) Data and Calculations:
Ending Balances Cash ?
Accounts receivable $ 10,100
Supplies inventory $ 4,600
Equipment $ 44,000
Accumulated depreciation $ 17,800 $26,200
Total Assets $
Accounts payable $ 3,800
Common stock $ 5,000
Retained earnings ?
Beginning Retained Earnings = $37,000
Net Income = 21,700
Dividends = (4,300)
Ending Retained Earnings = $54,400
Cash = Total assets - Accounts receivable - Inventory - Equipment
Bill Darby started Darby Company on January 1, Year 1. The company experienced the following events during its first year of operation: Earned $16,200 of cash revenue. Borrowed $12,000 cash from the bank. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on September 1, Year 1, had a one-year term and an 8 percent annual interest rate. Required a. What is the amount of interest payable at December 31, Year 1? b. What is the amount of interest expense in Year 1? c. What is the amount of interest paid in Year 1? d. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases (I) or decreases (D) each element of the financial statements. In the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA) or financing activities (FA). Columns for events that have no effect on any of the elements should be left blank. The first transaction has been recorded as an example.
Answer:
Please see below and attached
Explanation:
a. What is the amount of interest payable at December 31, year 1
= $12,000 × 8% × 4/12
= $320
b. What is the amount of interest expense in year 1.
= $12,000 × 8% × 4/12
= $320
c. What is the amount of interest paid in year 1.
The amount of cash paid for interest is $0. This is because it will be made at the time of maturity in year 2.
D. Use a horizontal statements model to show how each event affects the balance sheet, income statement and statement of cash flows.
• Please find attached solution to this question.
Suppose that Clancy, an economist from a university in Arizona, and Eileen, an economist from a public television program, are arguing over saving incentives. The following dialogue shows an excerpt from their debate: Eileen: I think it's safe to say that, in general, the savings rate of households in today's economy is much lower than it really needs to be to sustain an improvement in living standards. Clancy: I think a switch from the income tax to a consumption tax would bring growth in living standards. Eileen: You really think households would change their saving behavior enough in response to this to make a difference? Because I don't. The disagreement between these economists is most likely due to . Despite their differences, with which proposition are two economists chosen at random most likely to agree? Lawyers make up an excessive percentage of elected officials. Tariffs and import quotas generally reduce economic welfare. Minimum wage laws do more to harm low-skilled workers than help them.
Answer:
1. The disagreement between these economists is most likely due to .
scientific judgments.
2. Two economists chosen at random most likely are likely to agree on:
Lawyers make up an excessive percentage of elected officials.
Explanation:
Economists will disagree with each other regarding the appropriate size of the government, the power of trade unions, the adverse effects of unemployment and inflation, the equitable distribution of income, and whether a policy of tax cut is desirable or not. When economists disagree due to differences in scientific judgments, they disagree about a factual matter: the type of tax policy that would lower the budget deficit. In contrast, disagreements due to the differences in values reflect differing assessments on fairness or equity.
The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost. Last year, the company sold 36,000 of these balls, with the following results: Sales (36,000 balls) $ 900,000 Variable expenses 540,000 Contribution margin 360,000 Fixed expenses 263,000 Net operating income $ 97,000 Required: 1. Compute (a) last year's CM ratio and the break-even point in balls, and (b) the degree of operating leverage at last year’s sales level. 2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break-even point in balls
Answer:
Results are below.
Explanation:
Giving the following information:
The company has a ball that sells for $25.
Unitary variable cost= $15.00
Fixed expenses 263,000
To calculate the contribution margin ratio, we need to use the following formula:
Contribution margin ratio= contribution margin / selling price
Contribution margin ratio= (25 - 15) / 25
Contribution margin ratio= 0.4
Now, the break-even point in units:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 263,000 / 10
Break-even point in units= 26,300 units
Degree of operating leverage= contribution margin / operating income
Degree of operating leverage= 360,000 / 97,000
Degree of operating leverage= 3.71
If the unitary variable cost increases by $3:
Contribution margin ratio= (25 - 18) / 25
Contribution margin ratio= 0.28
Break-even point in units= 263,000 / 8
Break-even point in units= 32,875
The following information applies to the questions displayed below.]Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:DirectLabor-Hoursper unit AnnualProductionRims 0.30 26,000 unitsPosts 0.50 70,000 unitsAdditional information about the company follows:Rims require $15 in direct materials per unit, and Posts require $11.The direct labor wage rate is $15 per hour.Rims are more complex to manufacture than Posts and they require special equipment.The ABC system has the following activity cost pools:Estimated ActivityActivity Cost Pool Activity Measure EstimatedOverheadCost Rims Posts TotalMachine setups Number of setups $ 32,900 60 140 200Special processing Machine-hours $114,800 4,000 0 4,000General factory Direct labor-hours $1,404,000 6,000 72,000 78,000c.A security guard patrols the company grounds after normal working hours.d.Purchase orders are issued for materials to be used in production.e.Modifications are made to product designs.f.New employees are hired by the personnel office.g.Machine settings are changed between batches of different products.h.Parts inventories are maintained in the storeroom. (Each product requires its own unique parts.)i. Insurance costs are incurred on theRequired:1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)Activity Cost Pool Activity RateMachine setups per setupSpecial processing per MHGeneral factory per DLHcompanyâs2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)Unit product cost of Rims Unit product cost of Posts
Answer:
Please sew below and attached.
Explanation:
1. Compute the activity rate for each activity cost pool.
2. Determine the unit product cost of each product according to the ABC system.
•The unit product cost for RIMS = $28.45 , while the unit product cost for POSTS = $37.34
Please find attached detailed solution to the above .
PLEASE HELP!!! I need to come up with a store that would be convenient in a high school. It can be one that sells food, etc.