Explain the nature of the exchange-rate risk for each of the following, from the perspective of the U.S. firm or person. In your answer, include whether each is a long or short position in foreign currency.
a. A small U.S. firm sold experimental computer components to a Japanese firm, and it will receive payment of 1 million yen in 60 days.
b. An American college student receives a birthday gift of Japanese government bonds worth 10 million yen, and the bonds mature in 60 days.
c. A U.S. firm must repay a yen loan, principal plus interest totaling 100 million yen, coming due in 60 days.

Answers

Answer 1

Answer:

a. U.S. firm has long position in yen since it has asset in yen.

b. An American student has long position in yen since it has asset of bonds in yen.

c.  U.S. firm has liability position in yen, therefore it is short position.

Explanation:

a. The payment is to be received in next 60 days which means there is a risk of yen depreciation and then company will receive lower dollars. The company should hedge its exchange rate risk by selling yen now and buying dollars later.

b.  The gift received in the form of bonds will mature in 60 days. There is uncertainty in dollar rate, if dollar appreciates against yen then student will receive less yen.

c. The dollar rate is unpredictable for yen in next 60 days. If yen appreciate then dollar will depreciate against yen and therefore amount of loan repayment will increase.


Related Questions

any traditional costing systems: Multiple Choice write off manufacturing overhead as an expense of the current period. combine widely varying elements of overhead into a single cost pool. produce results far superior to those achieved with activity-based costing. use a host of different cost drivers (e.g., number of production setups, inspection hours, orders processed) to improve the accuracy of product costing. trace manufacturing overhead to individual activities and require the development of numerous activity-costing rates.

Answers

Answer:

combine widely varying elements of overhead into a single cost pool

Explanation:

A Traditional cost system is the system where the overhead cost are allocated that depend upon the cost driver volume. It determined the overhead cost per unit by measuring the total overhead cost i.e. incurred and this is be divided by the number of units produced

So as per the given options, the above option should be considered

According to the National Association of Colleges and Employers, finance graduates make an average of (µ) $52,402 a year. The standard deviation of annual salaries of finance graduates is (σ) $7,000. A random sample of 100 accounting graduates show that the sample mean salary is $54,390.If we were to increase the sample size (n) from 100 to 144, the z score will:A) increase.B) decrease.C) stay the same.D) be zero.

Answers

Answer:

National Association of Colleges and Employers

Therefore, if we were to increase the sample size (n) from 100 to 144, the z score will:

A) increase.

Explanation:

a) Data:

Mean (average) (µ) annual earnings of finance graduates = $52,402

Standard deviation of annual salaries of finance graduates (σ) = $7,000

Sample size of accounting graduates (n) = 100

Sample mean salary = $54,390

If sample size were increased to 144, from 100, what happens to the z score will be:

Calculating z score:

z = (x-μ)/σ

= (54,390 - 52,402)/7,000

= 0.284

Example:

= (58,000 - 52,402)/7,000

= 0.8

b) In statistics, as the sample size is increased from 100 to 144, the sample mean, x, ($54,390) and standard deviation ($7,000) will be closer in value to the population mean, μ, ($52,402) and standard deviation, σ.

Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,053,000 Y-Go undergarments a year. The per unit and the total costs for an individual garment when the company operates at full capacity are as follows.

Per Undergarment Total
Direct materials $1.96 $2,063,880
Direct labor 0.47 494,910
Variable manufacturing overhead 0.98 1,031,940
Fixed manufacturing overhead 1.41 1,484,730
Variable selling expenses 0.38 400,140
Totals $5.20 $5,475,600

The U.S. Army has approached Klean Fiber and expressed an interest in purchasing 249,700 Y-Go undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for direct materials, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an additional $1.01 per undergarment to cover all other costs and provide a profit. Presently, Klean Fiber is operating at 70% capacity and does not have any other potential buyers for Y-Go. If Klean Fiber accepts the Army’s offer, it will not incur any variable selling expenses related to this order.

Required:
Prepare an incremental analysis for the Klean Fiber.

Answers

Answer:

Klean Fiber Company

Incremental Analysis for the

Special order by the U.S. Army:

Units to be purchased =            249,700

Sales Revenue                               $4.42

Variable costs:

Direct materials                              $1.96

Direct labor                                      0.47

Variable manufacturing overhead 0.98

Total variable costs                         3.41

Additional for contribution margin  1.01

Contribution margin =               $252,197 ($1.01 * 249,700)

Explanation:

a) Data and Calculations:

Annual production capacity = 1,053,000

                                           Per Undergarment          Total

Direct materials                              $1.96              $2,063,880

Direct labor                                      0.47                     494,910

Variable manufacturing overhead 0.98                  1,031,940

Fixed manufacturing overhead       1.41                  1,484,730

Variable selling expenses              0.38                    400,140

Totals                                            $5.20             $5,475,600

Mandatory outlays a. require changes in existing laws if those outlays are to be altered. b. cannot be altered once they are made into law. c. usually change during the budget process. d. are a minor component of total outlays, and so are usually ignored.

Answers

Answer:

a. require changes in existing laws if those outlays are to be altered.

Explanation:

The mandatory outlays are the outlays in which there should be the need to change in the law i.e. already existed but the same is applied when the outlays could be changed or varied or altered

That means without alteration it does not required the changes

Therefore the option a is correct

Bella Bags is a British company that sells luxury leather purses manufactured in London. Currently, its products are carried at high-end department stores all across Europe. The company prides itself on its exceptional customer service. However, the company has been criticized in the past for carrying only two designs of bags. There is currently growing market demand for high-end luxury accessories. Bella Bags faces fierce competition from established luxury brands. Which of the following best characterizes an actionable strategy for Bella Bags that works on reducing the company's weaknesses to avoid threats?
A) Reduce the threat of high competition by expanding the product line and offering more variety
B) Promote the company's exceptional customer service to leverage the increasing demand for luxury goods
C) Reduce the threat of high competition by promoting the company's narrow product offering
D) Reduce the threat of high competition by leveraging the increasing demand for luxury goods

Answers

Answer:

A

Explanation:

If repossessed collateral is sold or otherwise disposed of by the creditor, then the time, place, manner, and method of disposal must be a. court ordered. b. scheduled with the debtor so that the debtor is able to attend. c. perfected. d. commercially reasonable.

Answers

Answer:

d. commercially reasonable.

Explanation:

In the case when the collateral i.e. repossessed is sold and disposed off by the creditor so the time, place and the method for selling or disposal should be commercially reasonable i.e. it can be measured in monetary terms so that everyone could aware of the price at which it is disposed off

Therefore the option d is correct

In a perpetual inventory system a.a count must be made in order to know the inventory amount. b.the inventory records cannot be computerized. c.the amount of inventory for sale and the amount sold are not listed in the inventory account. d.each purchase and sale of inventory is recorded in the inventory account.

Answers

Answer:

d. each purchase and sale of inventory is recorded in the inventory account.

Explanation:

The perpetual inventory system keeps record of inventory and cost of sales after each and every transaction. Its records are always updated after every purchase or sale transaction thus, In a perpetual inventory system : each purchase and sale of inventory is recorded in the inventory account.

Investment Center Sales Income Average Invested Assets Electronics $ 40,500,000 $ 2,916,000 $ 16,200,000 Sporting goods 20,740,000 2,074,000 12,200,000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company

Answers

Answer and Explanation:

The computation of the return on investment is shown below;

We know that

Return on Investment is

= (Net Income ÷ Average Operating Assets] × 100

For Electronics

= [$29,16,000 ÷ 162,00,000] × 100

= 18%

And,

For Sporting goods

= [$20,74,000 ÷ 122,00,000] × 100

= 17%

So here the electronics department should be selected as it has high return on investment  

Shellhammer Company's inventory records show the following data for the month of September: Units Unit Cost Inventory, September 1 100 $3.34 Purchases: September 8 450 3.50 September 18 350 3.70 A physical inventory on September 30 shows 200 units on hand. If the company uses FIFO inventory costing and a periodic inventory system, the the value of ending inventory at the end of September is

Answers

Answer:

Ending inventory $740

Cost of goods sold $2,464

Explanation:

Calculation to determine the value of ending inventory and cost of goods sold if the company uses FIFO inventory costing and a periodicinventory system.

Calculation for the value of ending inventory

Ending inventory of 200 units= 200 x $3.70

Ending inventory of 200 units = $740

Calculation for Cost of goods sold:

Units available for sale= (100 + 450 + 350) = 900

Units sold= 900 – 200 = 700

100 × $3.34 = $ 334

450 × $3.50 =$1,575

150 × $3.70 =$555

Cost of goods sold $2,464

($ 334+$1,575+$555)

Therefore the value of ending inventory is $740 and cost of goods sold if the company uses FIFO inventory costing and a periodicinventory system will be $2,464

Exhibit 15-8 The following estimated regression model was developed relating yearly income (y in $1000s) of 30 individuals with their age (x1) and their gender (x2) (0 if male and 1 if female). ŷ = 30 + 0.7x1 + 3x2 Also provided are SST = 1200 and SSE = 384. The yearly income of a 24-year-old female individual is _____. a. $49.80 b. $19,800 c. $19.80 d. $49,800

Answers

Answer:

d.  $49,800

Explanation:

The yearly income of a 24 year old female is  $49,800. Relationship between SST and SSE is defined as SST - SSE.

The equation describes the relationship between two variables that these variables are independent.

Cyclical unemployment arises when:______.
a. the agriculture sector completes the cycle of planting, cultivating, and harvesting the nation's food supply.
b. labor unions strike for higher wages.
c. the business cycle enters an expansionary phase.
d. business activity in the macroeconomy declines.

Answers

Answer:

D

Explanation:

types of unemployment

structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.  

The geologist lost his hob permanently due to increase in wages (polices)

Frictional unemployment:  the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.

Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom  

Please helpppppppp (sorry Need to get the word limit in)

Answers

Answer:

i guess c By creating multilateral trade agreement . i am not sure if its correct or not .

Crazy Mountain Outfitters Co., an outfitter store for fishing treks, prepared the following unadjusted trial balance at the end of its first year of operations:
Crazy Mountain Outfitters Co.
Unadjusted Trial Balance
April 30, 2018
Debit
Balances Credit
Balances
Cash 11,400
Accounts Receivable 72,600
Supplies 7,200
Equipment 112,000
Accounts Payable 12,200
Unearned Fees 19,200
Common Stock 20,000
Retained Earnings 117,800
Dividends 10,000
Fees Earned 305,800
Wages Expense 157,800
Rent Expense 55,000
Utilities Expense 42,000
Miscellaneous Expense 7,000
475,000 475,000
For preparing the adjusting entries, the following data were assembled:
Required:
Supplies on hand on April 30 were $1,380.
Fees earned but unbilled on April 30 were $3,900.
Depreciation of equipment was estimated to be $3,000 for the year.
Unpaid wages accrued on April 30 were $2,475.
The balance in unearned fees represented the April 1 receipt in advance for services to be provided. Only $14,140 of the services was provided between April 1 and April 30.
2. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. before the adjusting entries.
Revenues $
Expenses
Net income $
3. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. after the adjusting entries.
Revenues $
Expenses
Net income $
4. Determine the effect of the adjusting entries on Retained Earnings.
Retained Earnings increases by $.

Answers

Answer:

1. Dr Supplies expense $5,820

Cr Supplies $5,820

Dr Accounts receivable $3,900

Cr Earned fees $3,900

Dr Depreciation expense $3,000

Cr Accumulated depreciation $3,000

Dr Wages expense $2,475

Cr Wages payable $2,475

Dr Unearned fees $14,140

Cr Fees earned $14,140

2. Revenues $305,800

Expenses $261,800

Net income $44,000

3. Revenue $323,840

Expense $261,800

Net income $50,745

4. $6,745 Increase

Explanation:

1. Preparation of the journal entries necessary on April 30. 2019

Dr Supplies expense $5,820

Cr Supplies $5,820

($7,200-$1,380)

(To record supplies used)

Dr Accounts receivable $3,900

Cr Earned fees $3,900

(To record accrued fees Earned)

Dr Depreciation expense $3,000

Cr Accumulated depreciation $3,000

(To record equipment Depreciation)

Dr Wages expense $2,475

Cr Wages payable $2,475

(To record accrued wages)

Dr Unearned fees $14,140

Cr Fees earned $14,140

(To record fees earned)

2. Calculation to Determine the revenues, expenses, and net income of Crazy Mountain Outfitters before the adjusting entries.

REVENUE

Fees earned $305,800

EXPENSE:

Wages Expense $157,800

Rent Expense $55,000

Utilities Expense $42,000

Miscellaneous Expense $7,000

Expense $261,800

NET INCOME $44,000

($305,800-$261,800)

Therefore the revenues, expenses, and net income of Crazy Mountain Outfitters before the adjusting entries will be:

Revenues $305,800

Expenses $261,800

Net income $44,000

3. Calculation to Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. after the adjusting entries.

REVENUE

Fees Earned $305,800

Fees earned but unbilled $3,900

Unearned fees $14,140

Revenue $323,840

EXPENSE

Wages Expense $157,800

Rent Expense $55,000

Utilities Expense $42,000

Miscellaneous Expense $7,000

Supplies expense $5,820

Depreciation of equipment $3,000

Unpaid wages accrued $2,475

Expense $273,095

NET INCOME $50,745

($323,840-$273,095)

Therefore the revenues, expenses, and net income of Crazy Mountain Outfitters Co. after the adjusting entries will be:

Revenue $323,840

Expense $261,800

Net income $50,,745

4. Calculation to Determine the effect of the adjusting entries on Retained Earnings.

Effect of the adjusting entries=$50,745-$44,000

Effect of the adjusting entries=$6,745

Therefore the effect of the adjusting entries on Retained Earnings is Retained Earnings increases by $6,745

In a sandwich shop, 3 workers are able to make 45 sandwiches in an hour during the lunch rush. When a 4th worker is added, the team is able to make 57 sandwiches. Calculate the marginal product of adding the 4th worker.

Answers

Answer:

12

Explanation:

Calculation to determine the marginal product of adding the 4th worker

Using this formula

MP=ΔTPΔL

Let plug in the formula

ΔTP=57−45

ΔTP=12

Therefore The marginal product of adding the 4th worker is 12 sandwiches.

A firm is considering a project requiring an investment of $30,000. The project would generate an annual cash flow of $7,251 for the next six years. The company uses the straight-line method of depreciation with no mid-year convention. Ignore income taxes. The approximate internal rate of return for the project is: __________

a.11%.
b.10%.
c.12%.
d.9%.

Answers

Answer:

c.12%

Explanation:

PVF of  12% for 6 years is 4.11

PVFof 11% for 6 years is 4.23

Present value of cash inflows, 12% = 7251*4.11

Present value of cash inflows, 12% = 29801.61

Present value of cash inflows, 11% = 7251*4.23

Present value of cash inflows, 11% = 30671.73

Internal rate of return = 11% + (30671.73 - 30000)/(30671.73-29801.61)

Internal rate of return = 11.7719969659%

Internal rate of return = 11.772%

Development cost $ 1,250,000 Estimated development time 9 months Pilot testing $ 200,000 Ramp-up cost $ 400,000 Marketing and support cost $ 150,000 per year Sales and production volume 60,000 per year Unit production cost $ 100 Unit price $ 205 Interest rate 8% Tuff Wheels also has provided the project plan shown below. As can be seen in the project plan, the company thinks that the product life will be three years until a new product must be created.

Required:
What is the net present value (discounted at 8%) of this project?

Answers

Answer:

Tuff Wheels

The net present value of the project is:

= $13,617,154

Explanation:

a) Data and Calculations:

Development cost $ 1,250,000

Estimated development time 9 months

Pilot testing $ 200,000

Ramp-up cost $ 400,000

Total Project cost in Year 0 = $1,850,000 ($ 1,250,000 + $200,000 + $400,000)

Marketing and support cost $ 150,000 per year

Sales and production volume 60,000 per year

Unit production cost $ 100

Unit price $ 205

Contribution per unit = $105 ($205 - $100)

Total contribution margin = $6,300,000 ($105 * 60,000)

Marketing and support cost  $ 150,000

Interest rate 8%                         148,000

Net income (cash flow)      $6,002,000

Discount rate = 8%

Annual net cash inflow = $6,002,000

Annuity factor = 2.577

Total cash inflow = $15,467,154 ($6,002,000 * 2.577)

Total project cost      1,850,000

Net present value  $13,617,154

Reliability is how long an item or system will perform its function before it breaks. Good reliability will ______________________. Decrease logistics support requirements Increase life cycle sustainment costs Decrease system readiness Increase manpower waste

Answers

Answer:

Decrease logistics support requirements.

Explanation:

Decrease logistics support requirements is the correct answer because the increase in reliability decreases the requirement to correct the commodity or equipment. Therefore, the logistic support decreases which further decreases the manpower waste. Additionally, the good reliability shows that the product's quality is good and it will work efficiently for a longer time period. Thus, a good quality product requires less logistic support.

Reliability is a quality of being trustworthy and in performing constantly well. It result in measurement and calculations and tends to be more accurate.

Thus there is a decrease in logistics support requirements. When the system function before it breaks. Good reliability will always support the system.

Hence the option A is correct.

Learn more about the or system will perform its function before.

brainly.com/question/14312571.

You have contracted to buy a house for $300,000, paying $50,000 as a down payment and taking a fully amortizing mortgage for the balance at a 5.5% annual interest rate for 30 years. What will your monthly payment (covering principal and interest) be if you make monthly installments over the next 30 years (round to the nearest dollar)

Answers

Answer:

The monthly payment (covering principal and interest) to be over the next 30 years is:

= $1,419.

Explanation:

a) Data and Calculations:

Home Price  $300,000

Down Payment  16.666667 % ($50,000/$300,000 * 100)

Loan Term  30  years

Interest Rate  5.5%

Results:  

Monthly Pay:   $1,419.47

House Price $300,000.00

Down Payment $50,000.00

Loan Amount $250,000.00  

Total of 360 Mortgage Payments $511,010.10

Total Interest $261,010.10

Since its establishment on January 1, 1999, the euro has more than tripled in appreciation against the U.S. dollar, reaffirming the ability of the European Central Bank to manage monetary policy within the euro zone.
A. True
B. False

Answers

Answer:

B. False

Explanation:

The exchange rate between the euro and the dollar was 1.1719 dollars per 1 euro. Currently, the exchange rate is 1.18 dollars per euro. The euro has appreciated slightly against the US dollar, but it is a small percentage. It is not even close to multiplying its value by 3.

ABC Industries is a division of a major corporation. Data concerning the most recent year appears below:
Sales $18,080,000
Net operating income $940,160
Average operating assets $4,810,000
The division's return on investment (ROI) is closest to:____.
a. 5.60%.b. 20.56%.c. 16.71%.d. 2.60%.

Answers

Answer:

the return on investment is 19.55%

Explanation:

The computation of the return on investment is shown below:

Return on investment is

= (Net operating income ÷ Average operating assets) × 100

= ($940,160 ÷ 4,810,000) × 100

= 19.55%

Hence, the return on investment is 19.55%

You want to invest $37,000 today to accumulate $41,650 to buy a car. If you can invest at an interest rate of 3% compounded annually, how many years will it take to accumulate the required amount

Answers

Answer:

4 years

Explanation:

It takes 4 years to accumulate the required amount.

Please write out, step-by-step, how you obtained the correct answer for this math problem.

Jose and Zola want to purchase their first home. Jose makes $23.50 an hour and works 40 hours per week. Zola makes $21.50 an hour and works 40 hours of regular time and 5 hours of overtime a week. They have two car payments totaling $500 a month and one credit card with a minimum payment of $50 a month. What is their combined gross monthly income?



(HINT: Remember to assume that overtime is always time and a half unless otherwise specified!!)

Answers

Answer:

The correct answer is "$7,630".

Explanation:

Assuming there are four weeks in a month, then

Joe's income will be:

= [tex]23.50\times 40\times 4[/tex]

= [tex]3,760[/tex] ($)

Zola's income will be:

= [tex]21.50\times (40+5)\times 4[/tex]

= [tex]21.50\times 45\times 4[/tex]

= [tex]3,870[/tex] ($)

hence,

The combined gross monthly income will be:

= [tex]Jose's \ income+Zola's \ income[/tex]

= [tex]3,760+3,870[/tex]

= [tex]7,630[/tex] ($)

Answer:

$8,498.75

Explanation:

Jose = ($23.5x40x52)/12=$4073.33

Zola = ($21.5x40x52/12)+($21.5x1.5(overtime pay)x5x52)/12= $3726.67+$698.75=$4425.41

Combined = $4073.33+ $4425.42= $8498.75

When a company outsources some of its work / activities currently done by itself, it ultimately shifts the cost structure of the company. In most cases this shift entails:

Answers

Answer:

Outsourcing Company Activities

The shift in the cost structure of the company entails:

the elimination of most fixed costs and making variable costs to become more prominent.

Explanation:

A company's cost structure describes the relative proportions of fixed and variable costs which the company incurs in its business activities.  Outsourcing is a cost-driven strategy that involves the use of outside vendors to perform services and create goods that were traditionally produced in-house, thereby eliminating some employees and facilities, and thus, reducing cost.

At an activity level of 9,300 machine-hours in a month, Curt Corporation's total variable production engineering cost is $766,320 and its total fixed production engineering cost is $191,040. What would be the total production engineering cost per machine-hour, both fixed and variable, at an activity level of 9,600 machine-hours in a month

Answers

Answer:

$102.3 per machine hour

Explanation:

We can compute the total production engineering cost per hour by using the following equation;

Cost per machine hour = (Fixed cost + Variable cost) / Total machine hours

But first, we need to calculate variable cost at 9,600 hours;

= $766,320 × 9,600hr / 9,300hr

= $791,040

Now, cost per machine hour

= $191,040 + $791,040 / 9,600hr

= $982,040 / 9,600hr

= $102.3 per machine hour

Two athletes of equal ability are competing for a prize of $10,000. Each is deciding whether to take a dangerous performance-enhancing drug. If one athlete takes the drug, and the other does not, the one who takes the drug wins the prize. If both or neither take the drug, they tie and split the prize. Taking the drug imposes health risks that are equivalent to a loss of X dollars

Required:
a. Draw a $2 payoff matrix describing the decisions the athletes face.
b. For what X is taking the drug the Nash equilibrium?
c. Does making the drug safer (that is, lowering X) make the athletes better or worse off? Explain.

Answers

Answer:

a) attached below.

b) for $x < $5000 will cause taking the drug to be part of the Nash equilibrium

c) will make the athletes feel better because the value their payoff will increase

Explanation:

a) 2 * 2  payoff matrix  describing the decision faced by the athletes

attached below

when both players take the drug the payoff for each player = $5000 - x

when neither player  takes the drug the payoff for each player = $5000

When only one player takes the drug his payoff = $10000 - x

b) If we consider the value of $x to be involved in the Nash equilibrium then

; $5000 - $x > 0  becomes the best response

hence for $x < $5000 will cause taking the drug to be part of the Nash equilibrium

c) Lowering the negative effect of the drug ( i.e. when the value of x is reduced )

will make the athletes feel better because the value their payoff will increase

If IBM has a beta of 1.2 when the risk-free rate is 6% and the expected return on the market portfolio is 18%, the expected return on IBM is:

Answers

Answer:

20.4%

Explanation:

Calculation to determine what the expected return on IBM is:

Using this formula

E(Ribm)=Risk-free rate+(Market portfolio -Risk-free rate) Beta

Let plug in the formula

E(Ribm) = 6% +(18%-6%)1.2

E(Ribm)=6%+12%(1.2)

E(Ribm)=6%+14.4%

E(Ribm)=20.4%

Therefore the expected return on IBM is:20.4%

Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container's cost. They receive a refund when the container is returned. During 2021, deposits collected on containers shipped were $890,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2021, represented deposits of $595,000. In 2021, $827,000 was refunded and deposits forfeited were $56,750. Required: 1. Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2021. 2. Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 > Record the deposits collected. < 1 2 3 4 Record the containers returned. < 1 2 3 4 Record the deposits forfeited - record revenue. < 1 2 3 4 Record the deposits forfeited - adjust inventory. Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet. Balance on December 31

Answers

Answer:

1. (a) Dr Cash $890,000

Cr Liability for refundable deposits $890,000

(b) Dr Liability for refundable deposits $827,000

Cr Cash $827,000

(c) Dr Liability for refundable deposits $56,750

Cr Sale of containers $56,750

(d) Dr Cost of goods sold $56,750

Cr Inventory of containers $56,750

2.$601,250

Explanation:

1.Preparationof the appropriate journal entries for the deposits received, returned, and forfeited during 2021.

(a) Dr Cash $890,000

Cr Liability for refundable deposits $890,000

(b) Dr Liability for refundable deposits $827,000

Cr Cash $827,000

(c) Dr Liability for refundable deposits $56,750

Cr Sale of containers $56,750

(d) Dr Cost of goods sold $56,750

Cr Inventory of containers $56,750

2. Calculation to determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet.

Using this formula

Ending liability for refundable deposits = Liability for refundable deposits, January 1, 2021 + Deposits received during 2021 - Deposits returned during 2018 - Deposits forfeited during 2021

Let plug in the formula

Ending liability for refundable deposits= $595,000 + $890,000 - $827,000 - $56,750

Ending liability for refundable deposits= $601,250

Therefore the liability for refundable deposits to be reported on the December 31, 2021, balance sheet is $601,250

A 22-year old college student has been promised a $1 million check at this 50thbirthday (28years from today). What is the present value of the $1 million today assuming an interest rate of 5%

Answers

Answer:

$255,093.64

Explanation:

Calculation to determine the present value of $1 million today

Using Financial calculator

PV = PV (rate, nper, pmt, fv, type)

Where,

FV = $1,000,000

Annual Interest rate = 5%

Number of periods = 28

Let plug in the formula

PV = PV (5%, 28, 0, -1000000, 0)

PV= $255093.64

Therefore the Present value of $1 million today is $255,093.64

When you show property: Ask questions that will sell the home’s specific features. Never show more than 4 homes in one day. Never cancel a scheduled appointment. Be sure to show the prospects at least one home beyond their means to peak their interest.

Answers

Answer:

Ask questions that will sell the home's specific features.

Explanation:

Professionals do not state obvious facts about the property they are showing to buyers. Instead, show property by asking questions about features that will interest the buyer.  Leave opinions behind.  Personal opinions are not meant for the home buyer.  Couch questions so that they will get positive responses and help the buyer to make comparisons. For example, this room with its overview of the greenfield will interest the children, isn't it?

The controller of Oriole Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.
Month Total Total
Maintenance Costs Machine Hours
January $2,860 320
February 3,160 370
March 3,760 520
April 4,660 670
May 3,360 520
June 5,260 720
Determine the variable cost components using the high-low method. (Round answer to 2 decimal places e.g. 2.25.)
Variable cost per machine hour $
Determine the fixed cost components using the high-low method.
Total fixed costs $

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Maintenance Costs Machine Hours

January $2,860 320

February 3,160 370

March 3,760 520

April 4,660 670

May 3,360 520

June 5,260 720

To calculate the variable and fixed costs, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (5,260 - 2,860) / (720 - 320)

Variable cost per unit= $6

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 5,260 - (6*720)

Fixed costs= $940

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 2,860 - (6*320)

Fixed costs= $940

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