Answer:
Government authorities :
They will use the financing statement to ensure the fairness of the business and to receive proper amount of tax.
Investors :
Current or potential investors would check financial statements to ensure they will suitable returns after investment.
Creditors :
They will check financial statements to make sure they get their due money back.
Employees :
The employees will ask for bonus if the company performance in statements is good,
Retscan, Inc. has assets of $625,000, liabilities of $385,000, and equity of $240,000. It buys office equipment on credit for $125,000. The effects of this transaction include: Group of answer choices
Answer: a. Assets increase by $125,000 and liabilities increase by $125,000
Explanation:
The Office equipment bought are considered PPE which means they are fixed assets. Their acquisition will increase the assets held by the company by the value of the equipment, $125,000.
The equipment was however, bought on credit. This means that the company still owes the suppliers, payment for it which will see their liabilities increase by the same amount of $125,000.
Carlos recognizes that if he visits his aunt on Saturday, he'll miss his brother's football game. The economic principle best embodied by this story is:
Answer: Opportunity cost
Explanation:
The economic principle best embodied by this story is the opportunity cost. Opportunity cost is the cost of what one forgoes when one takes an alternative decision.
In this case, the opportunity cost of him visiting his aunt will be the lost opportunity which he could have used to watch his brother play.
You want to construct a portfolio containing equal amounts of U.S. Treasury bills and two stocks. If the beta of the first stock is 1.23 and the beta of the portfolio is 1.0, what does the beta of the second stock have to be
Answer:
the beta of the second stock is 1.77
Explanation:
The beta of the second stock is shown below;
Investment in each = (1 ÷ 3)
Now as we know that
Portfolio beta = Respective investments × Respective weights
1 = (1 ÷ 3 × 1.23) + (1 ÷ 3 × beta of the second stock) + (1 ÷ 3 × 0)
We assume the Beta of risk-free assets would be zero
1 = 0.41 + (1 ÷ 3 × beta of the second stock)
The beta of the second stock is
= (1 - 0.41) × 3
= 1.77
Hence, the beta of the second stock is 1.77
Hocus Pocus Smoked Ribs has only one location and wants to exploit its competitive advantage, a very popular recipe for smoked meats. This means that it wants to: a.form multiple business-level strategies. b.create a single business-level strategy. c.implement a cooperative strategy. d.establish a global strategy.
Answer:
b.create a single business-level strategy
Explanation:
Analyzing the information above, it is correct to say that the company wants to create a unique business-level strategy.
This strategy occurs when the company has a competitive advantage and wants to exploit it, as in the case of Hocus Pocus Smoked Ribs, which has a very popular recipe for smoked meat.
So the company seeks to improve its production, marketing and development strategies to focus on its central differential, which is its meat recipe.
This is a strategy that can be advantageous because it strengthens the product delivered by the company, but it can also be risky because it presents inherent risks, such as the price of ingredients going up or missing, which can harm the entire competitive advantage of the business.
Currency markets operate under a system called _____. This means that prices of currencies vary based upon demand and supply of that currency.
Answer:
Floating exchange rate
Explanation:
The floating exchange rate is the rate in which the price of the currency would be determined by the forex market that depend on the supply and the demand as compared with the other types of currencies.
So as per the given situation, the markets of the currency that operates under a system is known as the floating exchange rate
So the same is relevant
3. How would your answer in part 2 change if the percentage of completion in ending inventory were as follows: materials 30%, conversion 40%
Answer and Explanation:
The computation is shown below:
Particulars direct % Equivalent Conversion % Equivalent
material completion units Completion Units
Beginning
WIP 1,020 100% 1,020 1,020 100% 1,020
Units
started 3,700 100% 3,700 3,700 100% 3,700
(7,200 - 3,500)
Ending
WIP 3,500 30% 1,050 3,500 40% 1,400
Equivalent
units 5,770 6,120
Procurement costs such as costs of placing orders for materials and paying suppliers are usually classified as: Product-level costs. Output-unit-level costs. Vendor costs. Batch-level costs. Facility-level costs
Answer:
Batch-level costs.
Explanation:
The procurement cost is the cost that incurred for placing the orders with respect to the materials and supplier payment and these cost would be classified as a batch level cost as these cost are incurred in the batches
So as per the given situation the batch level cost would be taken into the consideration
And, the other options are incorrect
In the _____________ stage of a project you are more likely to find status reports, changes, and the creation of forecasts.
Answer:
Executing
Explanation:
The project life cycle shows the cycle from introduction to maturity or decline of the products. It shows the overall journey of the product
In order to determine the status regarding the reports, any changes made and the development of the forecast this would be shown in the stage of execution
So as per the given situation, the executing stage should be considered
Oriole Corporation acquired two inventory items at a lump-sum cost of $123000. The acquisition included 3090 units of product LF, and 6180 units of product 1B. LF normally sells for $30 per unit, and 1B for $10 per unit. If Oriole sells 1030 units of LF, what amount of gross profit should it recognize?
Answer:
$6,304
Explanation:
Calculation for what amount of gross profit should it recognize
First step is to calculate the total value sales
Total value sales
3090 units* $30 per=92,700
6180 units *$10 per unit=61,800
Total value sales=154,500
Second step is to calculate the cost per unit
Cost per unit=(92,700/154,500)*$123000/3090
Cost per unit=0.6*123,000/3090
Cost per unit=73,800/3090
Cost per unit=23.88
Now let calculate gross profit using this formula
Gross profit=Sales -Cost
Let plug in the formula
Gross profit=1,030*(30-23.88)
Gross profit=1,030*6.12
Gross profit=$6,304
Therefore the amount of gross profit that should it recognize is $6,304
he difference between an L3C (low profit limited liability company) and other types of businesses is that:
Answer: L3Cs explicitly take on a social mission as well as profit-seeking
Explanation:
The options are:
a. L3Cs do not pursue profit, but instead seek social goals.
b. L3Cs cannot accept government funding of any kind.
c. L3Cs explicitly take on a social mission as well as profit-seeking.
d. L3Cs are chartered by the government and all profits are retained by the government.
An L3C is a limited liability company (LLC), which has both attributes of profit and non profit. It is usually set up in such a way that private investiors can be attracted and also provide social objectives.
The owners are not responsible for the debt of the organization and they usually participate in management. Therefore, the answer to the question is that L3Cs explicitly take on a social mission as well as profit-seeking
Explain why it is important to set realistically attainable financial goals. Select one of your personal financial goals and develop a brief financial plan for achieving it.
Answer:
Explanation:
The main importance of setting realistically attainable financial goals is to remain optimistic and stay on track. If your goals are too ambitious and not very realistic then as time passes and you do not see much progress towards attaining that financial goal you will begin feeling depressed and begin losing faith that you will ever attain that goal. This leads you to give up on your plans and ultimately wasting the money on unnessesary purchases. My financial plan is to first save up an emergency fund to be able to maintain myself an entire year. Once I have this fund I will begin investing 10%-20% of my monthly income every month. 50% of that into a dividend stock portfolio and 50% into a cryptocurrency portfolio. Cashing out the crypto portfolio every time it doubles.
Milden Company is a merchandiser that plans to sell 29,000 units during the next quarter at a selling price of $57 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost Formula Cost of good sold $27 per unit sold Advertising expense $177,000 per quarter Sales commissions 6% of sales Shipping expense $75,000 per quarter + $4.00 per unit sold Administrative salaries $87,000 per quarter Insurance expense $9,700 per quarter Depreciation expense $57,000 per quarter Required: 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional format income statement for the next quarter.
Answer:
1. Contribution format income statement for the next quarter.
Sales ( 29,000 units x $57) $1,653,000
Less Variable Costs
Cost of Sales ( 29,000 units × $27) $783,000
Sales commissions (6% x $1,653,000) $99,180
Shipping expense : Variable ($4.00 x 29,000 units) $116,000 ($998,180)
Contribution $654,820
Less Fixed Costs
Advertising expense ( $177,000)
Shipping expense : Fixed ($75,000)
Administrative salaries ($87,000)
Insurance expense ($9,700)
Depreciation expense ($57,000)
Net Profit $249,120
2. Traditional format income statement for the next quarter.
Sales ( 29,000 units x $57) $1,653,000
Less Cost of Sales ( 29,000 units × $27) ($783,000)
Gross Profit $870,000
Less Expenses
Sales commissions (6% x $1,653,000) ( $99,180)
Shipping expense : Variable ($4.00 x 29,000 units) ($116,000)
Advertising expense ( $177,000)
Shipping expense : Fixed ($75,000)
Administrative salaries ($87,000)
Insurance expense ($9,700)
Depreciation expense ($57,000)
Net Profit $249,120
Explanation:
A contribution format income statement calculates Contribution. This is arrived at by deducting Variable Costs to Provide a Sale from Sales Revenue. All the other costs (Fixed Costs) are treated as Period Costs and are Expensed in the Income Statement.
Where as traditional format income statement calculates Gross Profit. This is arrived at by deducting Cost of Sales from Sales Revenue. All other expenses are placed in the Income Statement.
one-year forward rate of the British pound is quoted at $1.60, and the spot rate of the British pound is quoted at $1.63. Is the forward
Answer:
the forward discount is 1.84%
Explanation:
The computation is shown below:
As we can see that the spot rate is more than the forward rate so it is a forward discount
So the forward discount is
= (Spot rate - forward rate) ÷ (spot rate)
= ($1.63 - $1.60) ÷ $1.63
= 1.84%
Hence, the forward discount is 1.84%
90-day forward rate for the euro is $1.07, while the current spot rate of the euro is $1.05. What is the annualized forward premium or
Answer:
7.6%
Explanation:
Calculation for What is the annualized forward premium or discount of the euro
Using this formula
Euro annualized forward premium or discount = [(F/S) - 1] x 360 days/90 days
Where,
F represent forward rate $1.07
S represent current spot rate $1.05
Let plug in the formula
Euro annualized forward premium or discount =[($1.07/$1.05) - 1] x 360 days/90 days
Euro annualized forward premium or discount =($1.019-1)×x 360 days/90 days
Euro annualized forward premium or discount =0.019×360 days/90 days
Euro annualized forward premium or discount =0.076×100
Euro annualized forward premium or discount = 7.6 %
Therefore the annualized forward premium or discount of the euro will be 7.6%
Which of the following statements regarding uncertainty in liabilities is not correct? Group of answer choices Liabilities can involve uncertainty in whom to pay. A company can have an obligation of a known amount to a known creditor, but not know when it must be paid. A company can only record a liability when it knows whom to pay, when to pay, and how much to pay. A company can be aware of an obligation, but not know how much will be required to settle it.
Answer: A company can only record a liability when it knows whom to pay, when to pay, and how much to pay
Explanation:
A liability is simply defined as the amount that a particular company owes. Liabilities consist of loans, accrued expenses, defered revenue, and accounts payable.
We should note that liabilities can involve uncertainty in whom to pay. Also, a company can have an obligation of a known amount to a known creditor, but not know when it must be paid.
Based on the options given in the question, the answer will be "a company can only record a liability when it knows whom to pay, when to pay, and how much to pay".
Jubilee, Inc., owns 35 percent of JPW Company and applies the equity method. During the current year, Jubilee buys inventory costing $60,000 and then sells it to JPW for $75,000. At the end of the year, JPW still holds only $30,000 of merchandise, What amount of gross profit must Jubilee defer in reporting this investment using the equity method
Answer:
The amount of gross profit which Jubilee must defer in reporting this investment is equal to $2,100.
Explanation:
This can be calculated as follows:
Gross profit on sale = Sales - Cost of sales = $75,000 - $60,000 = $15,000
Gross profit margin = Gross profit on sale / Sales = $15,000 / $75,000 = 0.20, or 20%
Gross margin on ending inventory = Ending inventory * Gross profit margin = $30,000 * 20% = $6,000
Share of gross profit of Jubilee, Inc. in ending inventory = Gross margin on ending inventory * Share of Jubilee, Inc. in JPW Company = $6,000 * 35% = $2,100
Therefore, the amount of gross profit which Jubilee must defer in reporting this investment is equal to its share of gross profit in ending inventory which is $2,100.
What is the best way to experience what it's like to work in a field that interests you?
O Watch a movie that features a main character working in that field.
O Get an internship in that field
O Look up information about the field on the Bureau of Labor Statistics Web site.
O Gather ideas from your friends about the field.
Answer:
O Get an internship in that field.
Explanation:
Depending on one's interest, there are numerous ways by which one can get an experience of such a field. One of the most exciting and first-hand means of getting to experience is to be an intern in that field.
An internship is the temporary employment of a person by a company that allows the person to learn and be familiar with the workings of the company or field. In such a manner, the intern is made a part-time employee where he/ she learns, be familiar, and also get more knowledge about the workings of that place.
Thus, the best way to experience working in a field that one likes is to get an internship in that field.
If you were to start a business, what aspects of human resource management would you want to entrust to specialists? Why
Explanation:
Training and development would be an essential item to entrust to specialists at the beginning of a new business, because, due to the lack of marketing experience, the new entrepreneur might not obtain essential techniques to train his collaborators and the specialists would assist with essential techniques and tools for development of employee capacities, in addition to implementing training in line with organizational objectives and goals in a more effective and efficient manner.
When using the book value of equity, the debt to equity ratio for Luther in 2009 is closest to: Group of answer choices 0.43 2.29 2.98 3.57
Answer:
2.29%
Explanation:
The computation of the debt to equity ratio using book value of equity is as follows;
As we know that
Debt to Equity Ratio = Debt ÷ Equity
where,
Debt = $239.7 + $10.7 + $39.9
= $2901.1
And, equity is $126.6
Now
Debt to Equity Ratio is
= $290.1 ÷ 126.6
= 2.29%
17. Which of the following business challenges involves retaining the talented individuals?
(A) Change and more change
(B) Globalisation
(C) Intellectual capital
(D) Technology
Answer: Intellectual Capital
Explanation:
The value of a company that involves employee knowledge, skills,product development, etc which can provide a company competitive advantage over competitors is called Intellectual Capital and it is divided into
Human capital ----This involves employees, their knowledge, or know how and experience, which is an asset as it provides vital information towards contributing to the capital of the organization. A organization that retains talented employees ie with a lower employee turnover rate, shows its company has a high intellectual capital rate.
Other Intellectual Capital Involves Relational capital--- the relationship of a company withs its employees, customers, partners , stakeholders etc.
and Structural capital---which involves a company's unique process, policies, culture, mission and value statement, work structure etc.
Distinguish between the short run and the long run as they relate to macroeconomics. Why is the distinction important
Answer: On the short run production and employment is affected while on the long run the norminal variables are affected
Explanation:
Many macroeconomic models have it that the tools of monetary and fiscal policy have effects on the economy, affecting production and employment in the short run but in the long run it only affect nominal variables as price and this nominal rates has no influence on real economic quantities
Businesses that sell services rather than tangible items don't have a line for _____ on their statements.
Answer:
cost of goods sold (COGS)
Explanation:
Generally service businesses do not include cost of goods sold in their income statement. Cost of goods sold (COGS) is calculated when a business sells goods (= ending inventory + purchases - beginning inventory), but when you only sell services, what COGS can you have?
Wisconsin Rentals purchased office supplies on credit. The general journal entry made by Wisconsin Rentals will include a:
Answer:
d. Credit to Accounts Payable.
Explanation:
The general journal entry by Wisconsin rentals for purchasing office supplies on credit is as follow:
Office supplies Dr XXXXX
To Account payable XXXXX
(Being office supplies purchased on credit is recorded)
Here the office supplies is debited as it increased the assets and credited the account payable as it also increased the liabilities
An employer is concerned that her workplace has only a few African-Americans, Hispanics, and women in upper-level management and skilled labor jobs. Most unskilled-labor and clerical positions are held by women and minorities. The employer decides to institute a program that will increase the numbers of minorities and women in management and skilled-labor positions. Is this permissible
Answer:
This is not permissible
Explanation:
This is not permissible because giving them any forms of special treatments is going to be considered to be discriminatory to other people.
Discrimination on the basis of gender, age, color, religion is illegal in the united states and considered a criminal offense.
So even though management has good intentions they have to consider;
1. If these group of people have the required qualifications
2. If there are openings to accommodate these groups given that they are qualified.
3. Filling up every job with this group is going to be regarded as reverse discrimination.
A firm sets up a factory to manufacture TV sets, and this model is expected to be in the market for 10 years and its machinery will be used for this period. Every year it manufactures 12000 TV sets, the component costs are $60 per set; hourly labor costs are $10 a set; CEO salary and other overheads are $200000 a year. The firm also buys manufacturing machinery for $400000. Considering its production of 12000 TV sets every year, what should the price of the TV set be, if the firm makes no profit or loss every year.
Answer:
$90
Explanation:
No of TV set in 10 years = 12000*10 years = 120,000 TV sets
Total component cost = 120,000*$60 = $7,200,000
Total labor cost = 120,000 * $10 = $1,200,000
Total cost of CEO Salary & Overheads = $200,000 * 10 = $2,000,000
Cost of machinery = $400,000
Total cost = $7,200,000 + $1,200,000 + $2,000,000 + $400,000
Total cost = $108,000,000
Cost per unit = $108,000,000/120,000
Cost per unit = $90
So, for a no profit-no loss scenario, the selling price should be $90
4. If you deposit $3,000 at the end of each of the next 20 years into an account paying 10.5% interest, how much money will you have in the account in 20 years
Answer:
$24498.5
Explanation:
A = Pe^rt ..... 1
Where :
A is the future value
P is the principal
r is the interest rate
t is the time
Given
P = $3,000
r = 10.5% = 0.105
time = 20years
Substitute the above values into equation 1
A = Pe^rt
A = $3,000e^0.105×20
A = 3000e^2.1
A = $24498.5097
A = $24498.5
At the end of the 20th year, he must have accumulated the sum of $24498.5
Engineering change orders, maintenance of equipment used in manufacturing, and product design costs are examples of: Unit costs. Unit, batch, and customer-sustaining costs, respectively. Facility-level costs. Batch costs. Product-level costs.
Answer:
Product-level costs.
Explanation:
The equipment maintenance that used in the manufacturing, the design of the product, and the engineering change in orders represent the example of product level cost as they are relevant with the product or directly related with the product
So as per the given situation the last option is right
Hence, the same would be relevant
Microeconomics and macroeconomics are: Multiple Choice not related because they are taught as separate courses. virtually identical, though one is much more difficult than the other. interrelated because both are taught by the same teacher. interrelated because what happens in the economy as a whole is based on individual decisions.
Answer:
interrelated because what happens in the economy as a whole is based on individual decisions.
Explanation:
Generally, Economics can be classified into two (2) categories, namely;
1. Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
2. Microeconomics can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets.
Hence, it is focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.
In conclusion, microeconomics and macroeconomics are interrelated because what happens in the economy as a whole is based on individual decisions.
Salespeople who assist in design and specification processes, installation of equipment, and training of a customer's employees are called
Answer:
technical support salespeople.
Explanation:
Salespeople can be defined as a group of individuals or employees who are saddled with the responsibility of taking orders from customers, as well as sales of finished goods and services to consumers or end users.
Salespeople who assist in design and specification processes, installation of equipment, and training of a customer's employees are called technical support salespeople.
5. Briefly explain why when the marginal cost of an activity increases as one does more of it and why the marginal benefit of an activity decreases the more one engages in it.
Answer:
The law of decreasing marginal utility states that the actual utility obtained from carrying out some specific activity decreases as you perform that activity more often. E.g. you are very thirsty and decide to drink a glass of Coke. The first glass will yield a very high number of utils. If you are still thirsty, you might drink a second glass, but this time the second glass will yield a lower amount of utils. If you keep drinking more Coke, eventually you will be full and will not even enjoy drinking it.
The opposite happens with the marginal cost of carrying out an activity. For example, you like to bike outdoors. Biking outdoors one day per week will cost you X amount (including actual costs of biking plus opportunity costs). But if you decide to do it 2 times per week, your opportunity costs will increase. If you decide to do it 3 or more times per week, you better be good enough to become a professional or have a very tolerant boss. Opportunity costs of biking outdoors more days per week will keep increasing.