Answer:
Nominal GDP in year 1 = $6
Nominal GDP in year 2 = $20
Nominal GDP in year 3 = $42
Real GDP in year 1 = $6
Real GDP in year 2 = $10
Real GDP in year 3 = $14
GDP deflator in year 1 = 100
GDP deflator in year 2 = 200
GDP deflator in year 3 = 300
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
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
Nominal GDP = quantity produced x current year price
Nominal GDP in year 1 = (3 x $2) = $6
Nominal GDP in year 2 = 5 x $4 = $20
Nominal GDP in year 3 = 7 x $6 = $42
Real GDP = quantity produced x base year price
Real GDP in year 1 = (3 x $2) = $6
Real GDP in year 2 = 5 x $2 = $10
Real GDP in year 3 = 7 x $2 = $14
GDP deflator = nominal GDP / Real GDP x 100
GDP deflator in year 1 = $6 / $6 x 100 = 100
GDP deflator in year 2 = $20 / $10 x 100= 200
GDP deflator in year 3 = $42 / 14 x 100 = 300
Megan McCoy has a Bachelor's degree in business management and human resources. She has 5 years of HR experience as an HR assistant with her current employer. Megan thinks that with her education and experience, she is qualified for the position of HR manager. After observing her own boss, she feels confident that she could do that job. However, Megan knows that she does not see everything that her boss does, and may not be aware of all the tasks, duties, and responsibilities (TDRs) of the job, and the knowledge, skills, abilities, and other characteristics (KSAOs) necessary to do the job. To get more information about the occupation of an HR Manager, Megan did some research using the Occupational Information Network.
The general description of the job of HR manager includes
a. supervising and coordinating the activities of clerical and administrative support workers.
b. maintaining record of assets, liabilities, tax liability, and other financial activities.
c. maintaining functions such as employee compensation, recruitment, and personnel policies.
d. interacting with customers and handling and resolving customer complaints.
e. providing high-level administrative support by conducting research and preparing reports.
Answer:
c. maintaining functions such as employee compensation, recruitment, and personnel policies.
Explanation:
The human resources department in a company is increasingly important, since HR is the area where the company's human capital is managed, and more and more people must be valued in an organization, which currently assume the role promoters of human development both internally and externally.
The general job description of the HR manager includes maintaining roles such as employee compensation, recruitment and personnel policies.
To be an effective manager, there must be an understanding that employees have specific needs that must be met in the company, there must be policies that protect and value the employee according to the law, as well as the establishment of positions and fair remuneration and consistent with the function performed, preparation of training and development, etc.
Organizations are composed of people, therefore they are not rigid entities, it is necessary that the manager has flexibility to deal with people and their demands, always seeking to build positive professional relationships that contribute to an organizational culture favorable to the development of the skills and competences of the people.
At January 1, 2021, Cafe Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease agreement specifies annual payments of $29,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 thereafter through 2028. The equipment was acquired recently by Crescent at a cost of $207,000 (its fair value) and was expected to have a useful life of 13 years with no salvage value at the end of its life. (Because the lease term is only 9 years, the asset does have an expected residual value at the end of the lease term of $94,113.) Crescent seeks a 12% return on its lease investments. By this arrangement, the lease is deemed to be an operating lease.
Required:
a. What will be the effect of the lease on Cafe Med's earnings for the first year (ignore taxes)?
b. What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Café Med (ignore taxes)?
Answer:
Café Med
a. Café Med's earnings for the first year will be reduced by $58,000 (Operating lease expense for January 1 and December 31, 2021).
b. In Café Med's Balance Sheet, at the end of the first year, there will be a liability balance or Lease Expense Payable of $29,000 for the balance due to be paid on December 31, 2021.
Explanation:
Lease annual payments = $29,000
First payment date = January 1, 2021
Subsequent payment dates = December 31, 2021 to 2028.
Period of lease agreement = 9 years < 75% (9/13)
Cost of equipment to Crescent = $207,000
Lifespan of equipment = 13 years
Residual value at end of the lease term = $94,113
b) Café Med will recognize this lease arrangement as an operating lease. This is based on periodic rental payment on a straight-line basis, which is recorded as an operating lease expense. The liability arising will be for unpaid rentals at the end of the accounting period.
Which franchise model do automobile dealerships usually follow?
Answer:
hope it helps..
Explanation:
Automakers sold vehicles through department stores, by mail order and through the efforts of traveling sales representatives. The prevailing delivery system was direct-to-consumer sales.
Company Owned Company Operated franchise model do automobile dealerships usually follow. These are companies that have been granted a franchise to purchase and resell cars made by particular manufacturers. They are typically found on sites with enough space to accommodate an automobile showroom as well as a small garage for upkeep and repairs.
What is the difference between a franchise and a dealership?A licensed dealer functions much like a retail distributor. Dealers have more freedom when it comes to the layout of their stores and the products they offer, while franchisees are subject to a set of corporate regulations. The majority of the time, a dealer will sell the same goods and have the parent company's name and logo.
The business model for franchises. You can run a business if you buy a franchise as an investor or franchisee. You receive a format or system created by the business (franchisor), the right to use its name for a predetermined period of time, and assistance in exchange for paying a franchise fee.
Learn more about franchises here:
https://brainly.com/question/29376853
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Read the following paragraph and copy and paste the sentence which contains the central idea:
The strength in global growth is broad-based across countries that growth has recently exceeded its post-crisis average across almost all major DM and EM countries. Among advanced economies, the three-month moving average of the CAI has been particularly strong in the Euro area and Sweden (around 2pp above their post-crisis average), Japan (1.3pp) and the US (1.1pp). A number of EM economies have recently outpaced their post-crisis average, although growth is likely still below potential in a number of emerging economies.
Answer:
The third sentence.
Explanation:
The third sentence contains the central idea of the passage/paragraph.
- A number of DM (Developed Market) economies have recently outpaced their post-crisis average, although growth is likely still below potential in a number of EM (Emerging Market) economies.
The first sentence somewhat defines "strength in global economic growth". The second sentence gives statistics, particularly on the quality of growth in advanced economies (DM economies).
The third sentence summarizes both points and clarifies that potential for growth is still existent in emerging economies.
Mark M. Upp has just been fired as the university book store manager for setting prices too low (only 20% above suggested retail). He is considering opening a competing bookstore near the campus, and he has begun an analysis of the situation. There are two possible sites under consideration. One is relatively small, while the other is large. If he opens at Site 1 and demand is good, he will generate a profit of $50,000. If demand is low, he will lose $10,000. If he opens at Site 2 and demand is high he will generate a profit of $80,000, but he will lose $30,000 if demand is low. He also has decided that he will open at one of these sites. He believes that there is a 50% chance that demand will be high. He assigns the following utilities to the different profits:
U = 50,000 = ? U(-10,000) = 0.22
U = 80,000 = 1 U(-30,000) = 0
For what value of utility for $50,000, U(50000), will Mark be indifferent between the two alternatives?
Answer:
The utility of Mark for getting a 50,000 profit should be of 0.78 to make both Site option indifferent.
Explanation:
To be indifferent between the two sites the utility of Site 1 should match the utility of Site 2
Site 2:
weighted Utility of good demand +
weighted Utility of low demand:
50% x 1 + 50% 0 = 0.5
Site 1
50% of Ux + 50% 0.22
This shold match 0.50 to be indifferent
0.5Ux + 0.11 = 0.50
Ux = (0.50 - 0.11) / 0.5 = 0.39/0.50 = 0.78
Consider the following scenario:
Cold Goose Metal Works Inc.’s income statement reports data for its first year of operation. The firm’s CEO would like sales to increase by 25% next year.
1. Cold Goose is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT).
2. The company’s operating costs (excluding depreciation and amortization) remain at 70.00% of net sales, and its depreciation and amortization expenses remain constant from year to year.
3. The company’s tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT).
4. In Year 2, Cold Goose expects to pay $300,000 and $2,306,475 of preferred and common stock dividends, respectively.
Complete the Year 2 income statement data for Cold Goose, then answer the questions that follow. Round each dollar value to the nearest whole dollar.
Cold Goose Metal Works Inc.
Income Statement for Year Ending December 31
Year 1 $30,000,000 21,000,000 1,200,000 $7,800,000$
Year 2 (Forecasted)
Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) Less: Interest expense Pre-tax income (or EBT) Less: Taxes (40%) Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings 1,200,000 780,000 $7,020,000 2,808,000 $4,212,000s 300,000 $3,912,000 1,895,400 $1,605,525 $2,519,025
Given the results of the previous income statement calculations, complete the following statements:
In Year 2, if Cold Goose has 25,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive____________ ▼ in annual dividends
If Cold Goose has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from __________ in Year 1 to in ________ Year 2
Cold Goose's before interest, taxes, depreciation and amortization (EBITDA) value changed from _______ in Year 1 to in ______ Year 2
It is __________▼ to say that Cold Goose's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $1,605,525 and $2,519,025, respectively. This is because ▼ of the items reported in the income statement involve payments and receipts of cash
Answer:
Cold Goose Metal Works Inc.
1. Completion of the Year 2 Income Statement for Cold Goose:
Cold Goose Metal Works Inc.
Income Statement for Year Ending December 31
Year 1 Year 2
(Forecasted)
Net sales $30,000,000 $37,500,000
Less: Operating costs, except depreciation
and amortization 21,000,000 28,125,000
Less: Depreciation & amortization expenses 1,200,000 1,200,000
Operating income (or EBIT) $7,800,000 $8,175,000
Less: Interest expense 780,000 1,226,250
Pre-tax income (or EBT) $7,020,000 $6,948,750
Less: Taxes (40%) 2,808,000 2,779,500
Earnings after taxes $4,212,000 $4,169,250
Less: Preferred stock dividends 300,000 300,000
Earnings for common shareholders $3,912,000 $3,869,250
Less: Common stock dividends 1,895,400 2,306,475
Contribution to retained earnings $1,605,525 $1,562,775
2. Given the results of the previous income statement calculations, complete the following statements:
In Year 2, if Cold Goose has 25,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive____$12________ ▼ in annual dividends .
If Cold Goose has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from ____$19.56______ in Year 1 to in ___$19.35_____ Year 2 .
Cold Goose's before interest, taxes, depreciation and amortization (EBITDA) value changed from _$21,000,000______ in Year 1 to in _$28,125,000_____ Year 2 .
It is __wrong________▼ to say that Cold Goose's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $1,605,525 and $1,562,775 ($2,519,025), respectively. This is because not all ▼ of the items reported in the income statement involve payments and receipts of cash
Explanation:
a) Data and Calculations:
Cold Goose Metal Works Inc.
Income Statement for Year Ending December 31
Year 1 Year 2
(Forecasted)
Net sales $30,000,000 $37,500,000
Less: Operating costs, except depreciation
and amortization 21,000,000 28,125,000
Less: Depreciation & amortization expenses 1,200,000 1,200,000
Operating income (or EBIT) $7,800,000 $8,175,000
Less: Interest expense 780,000 1,226,250
Pre-tax income (or EBT) $7,020,000 $6,948,750
Less: Taxes (40%) 2,808,000 2,779,500
Earnings after taxes $4,212,000 $4,169,250
Less: Preferred stock dividends 300,000 300,000
Earnings for common shareholders $3,912,000 $3,869,250
Less: Common stock dividends 1,895,400 2,306,475
Contribution to retained earnings $1,605,525 $1,562,775
b) Forecasts:
1. Sales = $30 million * 1.25 = $37.5 million
2. Operating costs = 75% of sales = $28,125,000 (0.75 * $37.5 million)
3. Interest expense = 15% of EBIT = $1,226,250 (15% * $8,175,000)
4. Taxes = 40% of EBT = $2,779,500 (40% * $6,948,750)
5. Preferred dividend per share = $12 ($300,000/25,000)
6. Earnings per share = $19.56 ($3,912,000/200,000) Year 1 and $19.35 ($3,869,250/200,000) in Year 2
Bramble Corp. will receive $18500 today (January 1, 2020), and also on each January 1st for the next five years (2021 – 2025). What is the present value of the six $18500 receipts, assuming a 10% interest rate?
Answer:
21
Explanation:
coomer co had net sales of 600000 net income of 35260 and average total assets of 680000 what is the return on total assets
Answer:Return on Total assets ==5.19%
Explanation:
Return on Total assets shows one the idea of the profitability of a company's assets in generating revenue before interest and taxes. it is expressed in percentage and its formula is given as
Return on Assets = Net Income (Earning before interest and taxes) / Average total assets
= 35,260/ 680,000 = 0.05185 x 100
=5.19%
Answer:
coomer heehee
Explanation:
Composing powerful paragraphs is essential when striving for clear communication. Familiarize yourself with basic paragraph elements, various paragraph patterns, and strategies for building coherence.
Use the following paragraphs to answer the questions that follow.
Paragraph A: Last week, three of our Xcite executives closed a lucrative merger deal with Editionplus. The merger will add more than 500 accounts to our business and will increase our profits by 39 percent in less than a year. Additionally, the executives met with several Editionplus product designers and agreed on three new computer prototypes that we will produce during the next five years. This means we will expand our business to both Los Angeles and Las Vegas.
Paragraph B: Employee reaction has been mixed about our recent plans to expand to Las Vegas and Los Angeles. Many Xcite employees are concerned that the Los Angeles site will not have the same relaxed corporate environment as the current site. However, this is not the case: The relaxed corporate environment at the San Francisco site will be replicated in Los Angeles. The culture we have developed works for the company and our employees, and we don't plan to change it. Human resources executives are already interviewing San Francisco employees so they can capture and replicate the culture with ease.
Paragraph C: The leadership at the Xcite San Francisco site has been phenomenal during the last ten years. Everyone in senior-level positions has worked his or her way up the corporate ladder and has contributed greatly to the company's success. This team has increased our profits by 6 percent, expanded office space, hired additional IT support, and strengthened our IT infrastructure. These are just a few of this leadership team's many accomplishments. In the next two months, a new leadership team will be formed for the Los Angeles site. This team will consist of transferred employees from the San Francisco site. We will be offering many of you a chance to be part of this move. Additional training will be required for all who are transferring, and moving costs will not be covered. Xcite looks forward to opening another location with excellent products, high profits, and 100 percent employee and customer satisfaction.
Required:
1. Which paragraph or paragraphs use the pivoting approach?
a. A, C
b. B
c. A
2. What is the main idea of Paragraph A?
Answer:
1. Which paragraph or paragraphs use the pivoting approach?
b. BPivoting writing uses the words even though, however, but, in spite off, etc., to pivot back to the main idea of the paragraph. In paragraph B, it starts talking about employee concerns about a bad corporate environment in the new offices (in Los Angeles or Las Vegas), and then it assures that this will not happen. It affirms that the company is taking care of the issue and the corporate environment in LA will be the same as in San Francisco.
2. What is the main idea of Paragraph A?
If informs the reader that the company just closed a merger with Editionplus and that soon profits should increase, new products will developed and the company will grow.
A company has net working capital of $1,996. If all its current assets were liquidated, the company would receive $5,923. What are the company's current liabilities?
Answer:Current Liabilities= $3,927
Explanation:
Net working capital= Current assets-current liabilities
Current Liabilities = Current assets - Net working capital
= $5,923- $1,996
=$3,927
Current liabilities are short term liabilities , debt or obligation of a business which should be due within one year so as to be paid to creditors.
Lahey Advertising Company’s trial balance at December 31 shows Supplies $8,800 and Supplies Expense $0. On December 31, there are $1,100 of supplies on hand.
Required:
Prepare the adjusting entry at December 31.
Answer: See attachment
Explanation:
The adjusting entries for Lahey Advertising Company has been solved and attached. It should be noted that the supplies expenses was calculated as:
= $8800 - $1100
= $7700
Kindly check the attachment for further analysis.
By using focus group feedback, Kraft was able to develop a positioning strategy. Focus groups are what type of research?
Answer:
qualitative research
Explanation:
qualitative research deals with non-numerical data, it involves collection and analysing of data by open question method to gather in-depth information about the service/product situation from the respondent.
It should be noted that, Focus groups are qualitative research type research.
Focus groups can be as well regarded as market research, it is base on the logic of seeking the opinion, view, of people about a particular concept, product/services. It involves sourcing some number of people with purchase history or idea about a product to give "feedback".
Marketing by the Numbers: Pricey Sheets
Many luxury sheets cost less than $200 to make but sell for more than $500 in retail stores. Some cost even more consumers pay almost $3,000 for Frett'e "Tangeri Pizzo king-size luxury linens. The creators of a new brand of luxury linens, called Boll & Branch, have entered this market and are determining the price at which to sell their sheets directly to consumers online. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. The sheets come in a luxurious box that can be reused to store lingerie, jewelry, or other keepsakes. The Boll & Branch brand touts fair trade practices when sourcing its high-grade long staple organic cotton from India. Given the cost information below, refer to Appendix 2: Marketing by the Numbers to answer the following questions.
Cost/King-size Set
Raw Cotton $28.00
Spinning/Weaving/Dyeing $12,00
Cut/Sew/Finishing $10,00
Material Transportation $3,00
Factory Fee $16,00
Inspection and Import Fees $14,00
Ocean Freight/Insurance $5,00
Warehousing $8,00
Packaging $15,00
Promotion $30,00
Customer Shipping $15,00
10-13 Given the cost per king-size sheet set above, and assuming the manufacturer has total fixed costs of $500,000 and estimates first year sales will be 50,000 sets, determine the price to consumers if the company desires a 40 percent margin on sales.
10-14 If the company decides to sell through retailers instead of directly to consumers online, to maintain the consumer price you calculated in the previous question, at what price must it sell the product to a wholesaler who then sells it to retailers? Assume wholesalers desire a 10 percent margin and retailers get a 20 percent margin, both based on their respective selling prices.
Answer:
10-13 : $277
10-14 : $199.40
Explanation:
10-13
therefore Cost per king-size sheet set will be
$28 + $12 + $10 + $3 + $16 + $14 + $5 + $8 + $15 + $30 + $15 = $ 156
First year sales = 50,000 sets
Total cost = $500,000
Average fixed cost = $500,000/50,000 = $10
Total Cost per king-size sheet set = ( cost per king-size sheet )$156 + (Average fixed cost ) $10 = $166
Desired margin on sales = 40%
Let us consider the sale price to be $100x
since the margin is 40% of the sales this means margin = (40/100)*100x = 40x
So, cost price should be= $(100 – 40) = $60x
Also, Cost price = $166
which means : $166 = 60x
hence x = 166 / 60 = 2.77
therefore the sale price = ( 100 * 2.77 ) = $277
10 - 14
The Retailer sells to customers at a price of $277 after buying from the wholesaler
The retailer gets the margin of 20%, therefore the margin of retailer will be = (20/100)*277 = $55.4
Therefore the price at which retailer will buy the sheet set from the wholesaler will be = $277 ( original price ) - ( 20% of $277) $55.4 = $221.60
While the Wholesaler sells the sheet set to the retailer for $221.60 and gets the margin of 10%
hence the margin of the wholesaler = 10%*221.60 = $22.16
Then the wholesaler will get the sheet set at
= $221.6 – $22.16 = $199.40
This the price at which the company will now sell the sheets to the wholesaler
According to Mintzberg, managers averaged ____ written and _____ verbal contacts per day with most of these activities lasting less than ____ minutes. Group of answer choices
Answer:
1. 36
2. 16
3. 9
Explanation:
According to Henry Mintzberg, a who is known as a professor of Management of Studies. In his model commonly referred to as organizational configurations framework, he concluded that, managers averaged THIRTY SIX written and SIXTEEN verbal contacts per day with most of these activities lasting less than NINE minutes.
Hence, in this case, the correct answer is 36 : 16 : 9
Managers who establish effective goals can enhance the performance of their employees and of their company. The manager in the scenario presented next realizes that goals are essential to improving performance. Goal setting helps motivate employees by clarifying their roles at work and establishing performance objectives. Effective goal setting is more than just asking employees to do their best or to try harder. It requires attention to key goal characteristics that increase intensity and persistence, and ultimately improve performance. The goal of this exercise is to demonstrate your understanding of goal setting by matching each employee’s goal with his or her goal characteristic. Match each employee’s goal with his or her goal characteristic.
1. Achievable Goals
2. Measurable Goals
3. Relevant Goals
4. Time-Frame Goals
5. Specific Goals
6. Reviewed Goals
Match each of the options above to the items below.
Carlos’ goal is to reduce average loan processing by fifteen percent within the next 6 months.
Michelle is a salesperson. Her goal is to increase the number of sales calls made to potential customers.
Sam has been reviewing customer accounts at a rate of two per day. His goal is to double that rate. That is possible, but he’ll have to work hard and be creative to reach this goal.
Chen has been given a project, and his manager clearly communicated the quantity and quality expectations to him.
Elizabeth has just been given a project which needs to be completed within 6 weeks.
Kelly is most excited about adopting goals because it means she’ll finally have a clear measure of how well she is doing.
Answer:
Carlos’ goal is to reduce average loan processing by fifteen percent within the next 6 months. - REVIEWED GOALS
Reviewed goals are those that can be juxtaposed against previous performance to see if a better performance was put in. Carlos will review his performance at the end of 6 months.
Michelle is a salesperson. Her goal is to increase the number of sales calls made to potential customers. - RELEVANT GOALS
Relevant goals are those that relate to the job they are made for. Michelle is a salesperson so her having a goal of increasing calls to potentials is relevant to her job.
Sam has been reviewing customer accounts at a rate of two per day. His goal is to double that rate. That is possible, but he’ll have to work hard and be creative to reach this goal. - ACHIEVABLE GOALS.
Acheivable goals are just that, acheivable. Sam's goal to double his reviewing rate is said to be possible so it is achievable.
Chen has been given a project, and his manager clearly communicated the quantity and quality expectations to him. SPECIFIC GOALS.
Specific goals have set targets that should be met and in giving Chen clearly communicated quantity and quality expectations, Chen's manager has given him specific goals.
Elizabeth has just been given a project which needs to be completed within 6 weeks. TIME-FRAME GOALS.
Time-frame goals as implied are goals that have to be completed within a certain time period. Elizabeth has to complete this project in 6 weeks so this is a time-frame goal.
Kelly is most excited about adopting goals because it means she’ll finally have a clear measure of how well she is doing. MEASURABLE GOALS.
Measurable goals relate with the name and can be measured or enable one to measure something else. Kelly will be able to measure how she is doing with these goals of hers so they are measurable goals.
On December 31, 2020, Flounder Company signed a $1,278,400 note to Culver Bank. The market interest rate at that time was 10%. The stated interest rate on the note was 8%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Flounder’s financial situation worsened. On December 31, 2022, Culver Bank determined that it was probable that the company would pay back only $767,040 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,278,400 loan.
Required:
a. Determine the amount of cash Flounder received from the loan on December 31, 2020.
b. Prepare a note amortization schedule for Culver Bank up to December 31, 2022.
c. Determine the loss on impairment that Culver Bank should recognize on December 31, 2022.
Answer:
All requirements are solved
Explanation:
An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term. Each periodic payment is the same amount in total for each period.
Requirement A
Amount of cash Flounder received from the loan =(1,278,400 x 0.62092) (102,272 x 3.79079)
Amount of cash Flounder received from the loan = 1,181,476
Requirement B
Date Cash Interest Increase in Carrying Amount
Received Revenue Carrying Amount of Note
12/31/20 1,181,476
12/31/21 102,272 118,148 15,876 1,197,352
12/31/22 102,272 119,735 17,463 1,214,815
Requirement C
Loss due to impairment = 1,214,815 - [(767,040 x 0.75131) (102,272 x 2.48685)]
Loss due to impairment = 384,195
Which of the following best defines "Isolationist.?
a. The concept that a whole can derive more value than the combination of the individual parts. A common expression in defining synergy is 1+1 = 3, or each piece derives more value that it would on its own.
b. Two or more systems that depend or support one another, often achieving mutual benefit.
c. The process of international integrating arising from the interchange of world views, products, ideas, and other aspects of culture.
d. The notion that we have certain rights and responsibilities towards each other by the mere fact of being human on Earth.
e. Pertaining to a national (or group) policy of non-interaction with other nations (or groups).
Answer:
e. Pertaining to a national (or group) policy of non-interaction with other nations (or groups).
Explanation:
Isolationist is a strategic approach pertaining to a national (or group) policy of non-interaction with other nations (or groups). This ultimately implies that, an isolationist refers to a country that has a diplomatic policy of non-interaction or avoiding to have any form of alliance with other countries.
Generally, countries choose to practice isolationism because they want to avoid foreign economic commitments, preserve her identity and culture, protect its territory, etc. Between 1641 to 1853, The Tokugawa shogunate of Japan adopted isolationism known as "Kaikin" which made it avoid contact or alliance with other countries. Also, in 1930 China was isolationist by banning all maritime shipping activities.
King Costume uses a periodic inventory system. The company started the month with 6 masks in its beginning inventory that cost $8 each. During the month, King Costume purchased 41 additional masks for $10 each. At the end of the month, King counted its inventory and found that 3 masks remained unsold. Using the LIFO method, its cost of goods sold for the month is:
Answer:
$464
Explanation:
Periodic Inventory method is being used. That means valuation of inventory is done at the end of a specific period.
LIFO method is also used for determining the cost of inventory sold. FIFO stands for Last In First Out.
Calculation of Cost of Goods Sold :
41 unit × $10 = $440
3 units × $8 = $24
Total = $464
The cost of goods sold for the month is: $464
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 8% of par, and a current market price of (a) $62, (b) $81, (c) $97, and (d) $136
Answer and Explanation:
The computation of the risk premium is shown below:-
Rate of return = Dividend ÷ Current market price of preferred stock
The dividend should be
= $100 × 8%
= $8
a Rate of return = $8 ÷ $62
= 12.90%
b. Rate of return = $8 ÷ $81
= 9.88%
c. Rate of return = $8 ÷ $97
= 8.25%
d. Rate of return = $8 ÷ $136
= 5.88%
Ballou Corporation declared a cash dividend on December 13, 2018, payable on January 10, 2019. By mistake, the company failed to make a journal entry in December 2018. The effect of this error on the financial statements as of December 31, 2018 were:_____.
a. retained earnings was overstated and liabilities were understated.
b. retained earnings was overstated and cash were understated.
c. retained earnings and liabilities were both understated.
d. retained earnings and liabilities were both overstated.
Answer:
a. retained earnings was overstated and liabilities were understated.
Explanation:
Since in the cash dividend is declared also the same is not recorded by the company
So this error would impact the two account i.e. retained earnings and the liabilities
In this, the retained earning is overstated and the liabilities were understated
Therefore the correct option is a.
And, the rest of the options are wrong
Which of the following changes in retained earnings during a period will be reported in the financing activities section of the statement of cash flows? Declaration and payment of a cash dividend during the period. Net income for the period.
Answer:
Net income for the period.
Explanation:
the statement of cash flow is a financial statement which gives a summary of amount of money or money equivalents that are going into a company and also going out of the company. it gives a measurement of how well the cash position is being managed by the company. the net income for the period is going to be reported in the section called financing activities.
Presented below is the trial balance of Pina Corporation at December 31, 2017. Debit CreditCash $ 198,550Sales $ 8,103,580Debt Investments (trading) (cost, $145,000) 156,580Cost of Goods Sold 4,800,000Debt Investments (long-term) 300,550Equity Investments (long-term) 278,550Notes Payable (short-term) 93,580Accounts Payable 458,580Selling Expenses 2,003,580Investment Revenue 67,440Land 263,580Buildings 1,041,550Dividends Payable 137,550Accrued Liabilities 99,580Accounts Receivable 438,580Accumulated Depreciation-Buildings 152,000Allowance for Doubtful Accounts 28,580Administrative Expenses 904,440Interest Expense 215,440Inventory 598,550Gain (extraordinary) 84,440Notes Payable (long-term) 901,550Equipment 603,580Bonds Payable 1,001,550Accumulated Depreciation-Equipment 60,000Franchises 160,000Common Stock ($5 par) 1,003,580Treasury Stock 194,580Patents 195,000Retained Earnings 79,550Paid-in Capital in Excess of Par 81,550 Totals $12,353,110 $12,353,110 Prepare a balance sheet at December 31, 2017, for Pina Corporation. (Ignore income taxes).
Answer:
Pina Corporation
Balance Sheet at December 31, 2017
Non - Current Assets
Land $263,580
Buildings $1,041,550
Accumulated Depreciation-Buildings ($152,000) $889,550
Equipment $603,580
Accumulated Depreciation-Equipment ($60,000) $543,580
Debt Investments (long-term) $300,550
Equity Investments (long-term) $278,550
Franchises $160,000
Patents $195,000
Total Non-Current Assets $2,630,810
Current Assets
Inventory $598,550
Debt Investments (trading) (cost, $145,000) $156,580
Accounts Receivable $438,580
Allowance for Doubtful Accounts ($28,580) $410,000
Cash $ 198,550
Total Current Assets $1,363,680
Total Assets $4,051,650
Equity and Liabilities
Equity
Common Stock ($5 par) $1,003,580
Treasury Stock $194,580
Retained Earnings $79,550
Paid-in Capital in Excess of Par $81,550
Total Equity $1,359,260
Liabilities
Non-Current Liabilities
Notes Payable (long-term) $901,550
Bonds Payable $1,001,550
Total Non-Current Liabilities $1,903,100
Current Liabilities
Notes Payable (short-term) $93,580
Accounts Payable $458,580
Dividends Payable $137,550
Accrued Liabilities $99,580
Total Current Liabilities $789,290
Total Liabilities $2,692,390
Total Equity and Liabilities $4,051,650
Explanation:
A Balance Sheet shows the Balance of Assets, Liabilities and Equity as at the Reporting date.
See the Balance Sheet for Pina Corporation prepared above.
What term means an explosive and seemingly uncontrollable inflation in which money loses value rapidly and may even go out of use? A. deflation B. hyperinflation C. stagflation D. maginflation
Answer:
hyperinflation
Explanation:
Hyperinflation is a term in economics that denotes an out-of-control, rise in prices of goods and services . When the inflation rate is rapidly rising, say by more than 50% per month, then it is a case of hyperinflation.
Hence, hyperinflation is an explosive and seemingly uncontrollable inflation in which money loses value rapidly and may even go out of use.
The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3. How many rosebushes would she have to produce and sell in order to break even
Answer:
Break-even point in units= 2,000
Explanation:
Giving the following information:
Fixed costs= $6,000
Selling price= $6 each
Unitary variable cost= $3
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 6,000 / 3
Break-even point in units= 2,000
On January 1, 2013, Parent Company purchased 80% of the common stock of Subsidiary Company for $280,000. On this date, Subsidiary had total owners' equity of $250,000 (common stock $20,000; other paid-in capital, $80,000; and retained earnings, $150,000). Any excess of cost over book value is due to the under or overvaluation of certain assets and liabilities. Inventory, which was sold in the third quarter, is undervalued $5,000. Land is undervalued $20,000. Buildings and equipment have a fair value which exceeds book value by $30,000, and a 5-year expected life. Bonds payable are overvalued $10,000. The remaining excess, if any, is due to goodwill. Subsidiary had net income of $60,000 and paid $3,000 in dividends during 2013. Parent had net income of $50,000 and paid $1,000 in dividends during 2013. Assume that Parent uses equity method to record its investment.
Required:
a. Prepare a value analysis schedule for this business combination.
b. Prepare the determination and distribution schedule for this business combination
c. Prepare the necessary elimination entries in general journal form.
Answer and Explanation:
Please find answer and explanation attached
Here are comparative statement data for Crane Company and Sheridan Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016.
Crane Company Sheridan Company
2017 2016 2017 2016
Net sales $1,855,000 $596,000
Cost of goods sold 1,063,000 291,000
Operating expenses 265,000 89,000
Interest expense 8,600 3,200
Income tax expense 74,900 35,000
Current assets 534,599 $512,352 136,671 $130,326
Plant assets (net) 863,952 820,000 229,154 206,332
Current liabilities 08,773 124,337 57,971 49,661
Long-term liabilities 186,944 147,600 48,577 41,000
Common stock, $10 par 820,000 820,000 196,800 196,800
Retained earnings 282,834 240,416 62,477 49,197
Prepare a vertical analysis of the 2017 income statement data for Crane Company and Sheridan Company.
Answer:
Please see attached.
Explanation:
Please see attached vertical analysis of the 2017 income statement data for Crane company and Sheridan company.
Note: The percent for each company - Crane and Sheridan is arrived at by dividing each item( expense or income) by sales multiplied by 100.
For instance for Crane, the percentage for Gross profit is = ($792,000 / $1,855,000 ) × 100
= 42.7%
Jupiter Explorers has $8,800 in sales. The profit margin is 4 percent. There are 5,300 shares of stock outstanding. The market price per share is $1.60. What is the price-earnings ratio
Answer:
Price earnings ratio = 24.09 (Approx)
Explanation:
Given:
Sale = $8,800
Profit margin = 4% = 0.04
Number of share = 5,300
Market price per share = $1.60
Find:
Price-earnings ratio
Computation:
Earnings Per share = Profit / Number of shares
Earnings Per share = [8,800 x 0.04] / 5300
Earnings Per share = $0.0664
Price earnings ratio = Market price per share / Earnings Per share
Price earnings ratio = 1.60/0.0664
Price earnings ratio = 24.09 (Approx)
A budget surplus a. occurs when government expenditures exceed tax revenues. b. occurs when tax revenues exceed government expenditures. c. occurs when tax revenues exceed transfer payments. d. occurs when monetary policy works in the opposite direction of fiscal policy
Answer:
b. occurs when tax revenues exceed government expenditures.
Explanation:
A budget deficit occurs when government expenditures exceed tax revenues
Carla VistaInc. leased a new crane to Martinez Construction under a 5-year, non-cancelable contract starting January 1, 2020. Terms of the lease require payments of $45,500 each January 1, starting January 1, 2020. The crane has an estimated life of 7 years, a fair value of $220,000, and a cost to Carla Vista of $220,000. The estimated fair value of the crane is expected to be $45,000 (unguaranteed) at the end of the lease term. No bargain purchase or renewal options are included in the contract, and it is not a specialized asset. Both Carla Vista and Martinez adjust and close books annually at December 31. Collectibility of the lease payments is probable. Martinez’s incremental borrowing rate is 8%, and Carla Vista’s implicit interest rate of 8% is known to Martinez.
Required:
a. Identify the type of lease involved and give reasons for your classification. Discuss the accounting treatment that should be applied by both the lessee and the lessor.
b. Prepare all the entries related to the lease contract and leased asset for the year 2020 for the lessee and lessor, assuming the following amounts:
1. Insurance $500.
2. Taxes $2,000.
3. Maintenance $650.
4. Straight-line depreciation and salvage value $15,000.
c. Discuss what should be presented in the balance sheet, the income statement, and the related notes of both the lessee and the lessor at December 31, 2020.
Answer:
Lessee's Entries:
Rent expense (Dr.) $45,500
Cash (Cr.) $45,500
Lessor's Entries:
1. Property Tax expense (Dr.) $2,000
Maintenance and Repair Expense (Dr.) $650
Insurance Expense (Dr.) $500
Accounts Payable (Cr.) $3,150
2. Depreciation Expense (Dr.) $ 29,285
Accumulated Depreciation (Cr.) $29,285
3.Cash (Dr.) $45,500
Rent Revenue (Cr.) $45,500
Explanation:
The lease is considered as an operating lease as it does not have bargain purchase option and renewal options. The property ownership is not transferred in this lease.
Depreciation expense:
[ Cost - Salvage Value ] / 7
220,000 - 15000 / 7
CVP, Not for profit Monroe Classical Music Society is a not-for-profit organization that brings guest artists to the community’s greater metropolitan area. The Music Society just bought a small concert hall in the center of town to house its performances. The mortgage payments on the concert hall are expected to be $2,000 per month. The organization pays its guest performers $1,000 per concert and anticipates corresponding ticket sales to be $2,500 per event. The Music Society also incurs costs of approximately $500 per concert for marketing and advertising. The organization pays its artistic director $50,000 per year and expects to receive $40,000 in donations in addition to its ticket sales.Required1. If the Monroe Classical Music Society just breaks even, how many concerts does it hold?2. In addition to the organization’s artistic director, the Music Society would like to hire a marketing director for $40,000 per year. What is the breakeven point? The Music Society anticipates that the addition of a marketing director would allow the organization to increase the number of concerts to 60 per year. What is the Music Society’s operating income/(loss) if it hires the new marketing director?3. The Music Society expects to receive a grant that would provide the organization with an additional $20,000 toward the payment of the marketing director’s salary. What is the breakeven point if the Music Society hires the marketing director and receives the grant?
Answer:
1. If the Monroe Classical Music Society just breaks even, how many concerts does it hold?
break even = $34,000 / $1,000 = 34 concerts per year
2. In addition to the organization’s artistic director, the Music Society would like to hire a marketing director for $40,000 per year. What is the break even point?
break even = $74,000 / $1,000 = 74 concerts per year
The Music Society anticipates that the addition of a marketing director would allow the organization to increase the number of concerts to 60 per year. What is the Music Society’s operating income/(loss) if it hires the new marketing director?
loss = (60 x $1,000) - $74,000 = $60,000 - $74,000 = -$14,000
3. The Music Society expects to receive a grant that would provide the organization with an additional $20,000 toward the payment of the marketing director’s salary. What is the break even point if the Music Society hires the marketing director and receives the grant?
break even = $54,000 / $1,000 = 54 concerts per year
Explanation:
fixed costs = $24,000 (mortgage) + $50,000 (artistic director) = $74,000
variable costs per concert = $1,000 (artist) - $500 (marketing) = $1,500
revenue = $2,500 per concert
contribution margin per concert = $2,500 - $1,500 = $1,000
other revenues = $40,000 per year
net fixed costs = $74,000 - $40,000 = $34,000