Answer:
−1.89%
Explanation:
Calculation for what real rate of return is earned by an investor
First step is to calculate the Nominal return
Nominal return = [$960 + (0.08 × $1,000) − $1,000] / $1,000
Nominal return = [$960 + $80 − $1,000] / $1,000
Nominal return = $40/ $1,000
Nominal return= 0.04
Now let calculate the real rate of return
Real rate of return = 1.04 / 1.06 − 1
Real rate of return= −0.0189*100
Real rate of return= −1.89%
Therefore the real rate of return is earned is = −1.89%
A company's ____________ are the priorities, principles, and beliefs that guide the company.
A.
Strengths
B.
Demographics
C.
Values
D.
Opportunities
Answer:
C. values
Explanation:
For each of the following numbered situations below, select the best letter answer concerning accounting for investments: (A) Increase the investment account. (B) Decrease the investment account. (C) Increase dividend revenue. (D) No adjustment necessary.
Answer:
(A) Increase the investment account
Explanation:
When the investment is made, the accounting entries required is to debit the Investment Account to shows the increase in Assets and credit the Cash Account to show the decrease in assets used to acquire the investment.
best clients and we do amazing work together so for that reason I have something called incentive based pricing where if you make a decision on the call with me today I waive the $2,000 setup fee and it’s just $2,000 /month." Then shut up. This SILENCE here is the most crucial part of your entire call. You MUST not cave in and you MUST remain silent until the prospect speaks. Sometimes this silence is longer than 1-2 mins. Part twelve is continued on the next page… Continued from the previous page… We’re waiting for any words that mean let’s move forward with this: "What’s the next step?" "Ok well what’s next?" "Ok how do we get started?"] "Ok let’s do it!" When they are ready to move forward say: Awesome! Well we can get you started right now if you want. (OK well how do we do that… OK how do we do the payment… Words like this….) We can do credit card over the phone if you want. (OK cool…. Or words to this effect) So is that VISA or MASTERCARD, collect the details and BOOM! What we will not accept Any words that do not mean YES or NO. This decision is BINARY not a grey area. "OK well can you send me something via email?" "OK well how do i get back in touch with you if i decide to move forward?" "Ok I’m going to need to think about this" "Ok I’m going to have to ask my business partner, wife etc." Handling Objections Objection: How much time do I have to decide? "How much time do you need
Answer:
B
Explanation:
B
Lenox Corp. sold merchandise for $5,900 to M. Baxter on May 15, 2017, with payment due in 36 days. Subsequent to this, Baxter experienced cash-flow problems and was unable to pay its debt. On August 10, 2017, Lenox stopped trying to collect the outstanding receivable from Baxter and wrote off the account as uncollectible. On December 1, 2017, Baxter sent Lenox a check for $1,100 and offered to sign a two-month, 9%, $4,800 promissory note to satisfy the remaining obligation. Baxter paid the entire amount due Lenox, with interest, on January 31, 2018. Lenox ends its accounting year on December 31 each year and uses the allowance method to account for bad debts.
Required:
1. Prepare all of the necessary journal entries on the books of Lenox Corp. from May 15, 2014 to January 31, 2015.
2 Why would Baxter bother to send Lenox a check for $1,000 on December 1 and agree to sign a note for the balance, given that such a long period of time had passed since the original purchase?
Answer:
1) May 15, 2017, merchandise sold on account to Baxter
Dr Accounts receivable 5,900
Cr Sales revenue 5,900
Sometime prior to August 10, but after May 15, bad debt must be recorded
Dr Bad debt expense 5,900
Cr Allowance for doubtful accounts 5,900
August 10, 2017, write off of uncollectible account
Dr Allowance for doubtful accounts 5,900
Cr Accounts receivable 5,900
December 1, 2017, write off is reversed
Dr Accounts receivable 5,900
Cr Allowance for doubtful accounts 5,900
December 1, 2017, check received + notes receivable
Dr Cash 1,100
Dr Notes receivable 4,800
Cr Accounts receivable 5,900
December 31, 2017, accrued interest revenue
Dr Interest receivable 36
Cr Interest revenue 36
January 1, 2018, collection of notes receivable
Dr Cash 4,872
Cr Interest receivable 36
Cr Interest revenue 36
2) If a company owes money, the option of a lawsuit exists, even if Lenox does not fila a lawsuit, Baxter's credit history will be negatively affected. A bad credit history negatively affects both individuals and businesses.
1. Seven out of every ten families in America live
loan to loan
job to job
paycheck to paycheck
house to house
Answer:
paycheck to paycheck
Explanation:
Living from paycheck to paycheck means that a big proportion of an individual or household income is spent on expenses. It is a situation where individuals do not save for emergencies and have no tangible investments. Almost all their incomes are spent on consumables.
In the US, over 70 % of households have not saved for rainy days. Should these families lose their source of income, they will have challenges in meeting their financial obligations almost immediately.
If the Edwards production plan for the next period includes 1000 units of component 1 and 800 units of component 2, what purchases do you recommend
Answer and Explanation:
The computation is shown below:
Particulars Supplier
1 2 3 Overall
Component 1 1000 1000
Component 2 650 50 100 800
From the above table the component 1 should be ordered to supplier 2 as the price is lesser in this case and also it is able to supply total production needed as per the component 1
In addition to this, the component 2 should be ordered to supplier 1 for 650 units as the price is lesser and the remaining balance could be ordered from supplier 2 or 3 as the prices are similar
If Hoboken Industries is able to obtain part MR24 from an outside supplier at a unit purchase price of $17, what is the monthly usage at which it will be indifferent between purchasing and making part MR24?
The question is incomplete. The complete question is as follows,
Hoboken Industries currently manufactures 30,000 units of part MR24 each month for use in production of several of its products. The facilities now used to produce part MR24 have a fixed monthly cost of $150,000 and a capacity to produce 84,000 units per month. If the company were to buy part MR24 from an outside supplier, the facilities would be idle, but its fixed costs would continue at 40 percent of their present amount. The variable production costs of part MR24 are $11 per unit.
If Hoboken Industries is able to obtain part MR24 from an outside supplier at a unit purchase price of $17, what is the monthly usage at which it will be indifferent between purchasing and making part MR24?
Answer:
The monthly usage at which the company will be indifferent between the two options is 15000 units.
Explanation:
Let x be the number of units of MR24
The equation for cost of producing MR24 internally can be written as,
Cost = 150000 + 11x
The equation for cost for the option of buying MR24 externally can be written as,
Cost = (150000 * 0.4) + 17x
Equating both the equations,
150000 + 11x = (150000 * 0.4) + 17x
150000 + 11x = 60000 + 17x
150000 - 60000 = 17x - 11x
90000 = 6x
90000 / 6 = x
x = 15000 units
The monthly usage at which the company will be indifferent between the two options is 15000 units.
A trading firm ABC, Inc. has been in continuous existence for the past 20 years. In the year 2004 it purchased 2000 baseball bats for $ 6 each and sold 1700 of these for $10 each. What was the profit or loss of the firm in 2004
Answer: $6,800
Explanation:
Profit (loss) = Revenue - Cost of goods sold
Cost of goods sold = Purchases - closing stock
= (2,000 * 6) - (300 * 6)
= $10,200
Total Revenue:
= 1,700 * 10
= $17,000
Profit = Revenue - cost of goods sold
= 17,000 - 10,200
= $6,800
(closing stock is 300 because 1,700 units were sold)
If the United States exports more goods/services than it imports, then the U.S. would have a(n)Multiple Choicetrade deficit.unfavorable balance of trade.trade surplus.favored trading nation.increased global impact.
Answer: trade deficit.
Explanation:
Countries have to trade with other nations in order to have access to other goods and services and sometimes these countries can import more goods and services than they export. When this happens this is called a Trade deficit.
Trade deficits can be bad because it means that a country is spending more outside than it is receiving so a sustained trade deficit is not ideal.
John’s Landscaping had shareholders that invested $150,000. The company has earned revenues of $75,000, of which $50,000 were collected. They have incurred expenses of $82,000. Calculate its net income. Group of answer choices
Answer:
the net income is -$7,000
Explanation:
The computation of the net income is shown below:
As we know that
Net income = earned revenues - incurred expenses
= $75,000 - $82,000
= -$7,000
By deducting the expenses from the revenues we can get the net income
But here the net income is in negative as the expenses are more than the revenues
So, the net income is -$7,000
Alpha's preferred stock currently has a market price equal to $80 per share. If the dividend paid on this stock is $6 per share, what is the required rate of return investors are demanding from Alpha's preferred stock
Answer:
the required rate of return is 7.5%
Explanation:
The computation of the required rate of return is shown below;
As we know that
The price of preferred stock = Dividend ÷ Required rate of returen
$80 = $6 ÷ required rate of return
So, the required rate of return is
= $6 ÷ $80
= 7.5%
hence, the required rate of return is 7.5%
Amy Monroe wants to create a fund today that will enable her to withdraw $25,000 per year for 8 years, with the first withdrawal to take place 5 years from today. If the fund earns 8% interest, how much must Amy invest today
Answer:
$114,047
Explanation:
We are required to find the amount to be Invested today (Present Value)
Summary of the Cashflows are :
Year 0 = $0
Year 1 = $0
Year 2 = $0
Year 3 = $0
Year 4 = $0
Year 5 = $25,000
Year 6 = $25,000
Year 7 = $25,000
Year 8 = $25,000
Year 9 = $25,000
Year 10 = $25,000
Year 10 = $25,000
Year 10 = $25,000
Manually
We can calculate the Net Present Value by discounting each individual payment at their appropriate period and adding up the totals to arrive at the Present Values.
PV = FV / ( 1 + R) ^ n
Where,
FV = the future cash flow stream ($25,000)
R = interest rate 8%
n = year (n = 5 for the first payment)
Financial Calculator
Alternatively we can calculate this using the CF Function of the Financial calculator as follows :
$ 0 = CFj
4 = Nj
$25,000 = CFj
8 = Nj
Shift NPV = $114,047
Is it necessary that the five steps in the strategic management process be performed sequentially? Why or why not?
Answer:
No
Explanation:
Strategic management process may be defined as the process which appraises the industries and business where the organization is involved. It is the culture of appraisal that any business adopts in order to outdo their competitor.
There are mainly 5 steps for the strategic management process in any business. They are :
-- in goal setting
-- to analyze
-- in strategy formulation
-- in strategy implementation
-- to control and evaluate
These are main 5 steps which follows a logic and is easily understandable as it is simple process. But it is not compulsory for the business or organization to take these steps in a sequential manner. It depends upon the company's need. Many company analyses the internal as well as the external factors that affects their strategy which is important to their business process. So they may start with any step for the appraisal process. They can start with any step and see the impact of it and then change or move to any other step depending upon their necessity. It is according to the company's need and situation that these steps are taken in any sequence by the company.
The customer returns for the Fall season were 10% on gross sales of $900,000. For the Spring season, gross sales were $850,000, and customer returns were $70,000. What was the percentage of customer returns for the entire year
Answer:
the percentage of customer returns for the entire year is 9.14%
Explanation:
The computation of the percentage of the customer returns for the entire year is as follows;
= Total customer returns ÷ Total gross sales
= ($900,000× 10% + $70,000) ÷ ($900,000 + $850,000)
= ($90,000 + $70,000) ÷ ($1,750,000)
= 9.14%
Hence, the percentage of customer returns for the entire year is 9.14%
Assume that January sales for the fourth year turn out to be $295,000. What was your forecast error the models in parts 2, 3, and 4
Answer:
4th year difference in forecast $120,000
Explanation:
The forecast is prediction of future cashflows of a business. The forecasts are rarely accurate as there are many uncontrollable factors such as demand, seasonal effect and government influence which are results of the deviation from the forecast cashflow. In the given scenario the management forecast that the January sales will be $295,000 but the actual sales are $120,000 only. The main reason for such big difference is government taxes that are imposed on seafood. The prices are increased therefore consumers have reduced their seafood consumption.
In Angola in 2004, GNI is much less than GDP. Angola is an oil-exporting country. What is a plausible relationship between these two facts
Answer:
The GDP includes the value of all the final goods and services produced in a country, while the GNI includes the value of all the final goods and services produced by the citizens of a country, regardless of where they are located.
Angola's GDP is higher than its GNI because many foreign companies must produce oil, and that increases GDP but is not included in the GNI).
The price of houses in Bellevue area has been increasing by 10% since last year, according to Zillow Group of answer choices This is a negative statement This is a judgmental statement This is a normative statement This is a positive statement
Answer: This is a positive statement
Explanation:
A positive statement is defined as a statement that's based on facts. These statements are also factual. A normative statement is a statement whereby a value judgement is used.
With regards to the question, we are told that the price of houses in Bellevue area has been increasing by 10% since last year, according to Zillow. This shows that the statement is factual and therefore positive.
Explain how current economic indicators, such as inflation and unemployment, affect you personally. Explain how they may affect you as a manager
Answer is given below :
Explanation:
In an economy, inflation raises the price level of the basket of goods and services, thus reducing the demand for this affected good and services. This decrease will increase the listings in companies as sales of these goods and services will decrease. Production is the work of labor and capital, NRSE inflation is reduced and there is no need for more production at the company level to reduce the inventory sold, which allows firms to reduce costs in the form of labor cost and other variable costCompanies tend to sell their untold innovations due to declining sales and top-downs that reduce profit margin. Therefore managers are concerned about the profitability of the company and their bonus.If the direct labor rate variance is $500 favorable, and the direct labor efficiency variance is $250 unfavorable, the journal entry will include a: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) check all that apply Debit to direct labor rate varianceunanswered Credit to direct labor rate varianceunanswered Debit to direct labor efficiency variance Credit to direct labor efficiency variance
Answer:
Debit to direct labor efficiency variance
Credit to direct labor rate variance
Explanation:
Preparation the journal entry
Based on the information given in a situation where the direct labor rate variance is favorable with the amount of $500 which means that the FAVOURABLE VARIANCE will be CREDITED and in a situation where the direct labor efficiency variance is unfavorable with the amount of $250 which means that that UNFAVORABLE VARIANCE will be DEBITED reason been that FAVOURABLE VARIANCE are tend to be CREDITED while UNFAVORABLE VARIANCE on the other hand are tend to be DEBITED .
Therefore the journal entry will include a:
Debit to direct labor efficiency variance (UNFAVORABLE)
Credit to direct labor rate variance (FAVOURABLE)
Assuming they began by opening just one or two stores in Mexico, what do you see as the main HR-related challenges he and Jennifer would have to address
Answer and Explanation:
The following are the HR-related challenges that he and Jennifer would have to face:
1. Language - As english and spanish both are required
2. Culture: The culture is different i.e. latin american and the northern american
3. The level of motivation and the workers morale would be lesser in mexico they required the supervison and the reguarly stimulation
4, The biasness, discrimination are pre-existed problem it would take time for the expatriates to get used to it
(True) or (False)? A long-term liability that has a portion of it due in the current year should have part reported on the balance sheet as a current liability, with the rest reported on the balance sheet as a long-term liability. Group of answer choices
Answer:
True
Explanation:
The liability that has an obligation to pay the debt within 12 month is known as the current liabilities but the obligation to pay the debt above 12 months is known as long term liability
So if the portion of its due in the current year so the same is considered as current liability and rest would be recorded as a long term liability
Hence, the given statement is true
Last year Almazan Software reported $10.500 million of sales, $6.250 million of operating costs other than depreciation, and $1.300 million of depreciation. The company had $5.000 million of bonds that carry a 6.5% interest rate, and its federal-plus-state income tax rate was 25%. This year's data are expected to remain unchanged except for one item, depreciation, which is expected to increase by $0.670 million. By how much will net income change as a result of the change in depreciation
Answer:
b. -$0.202 million
Explanation:
Missing word "The company uses the same depreciation calculations for tax and stockholder reporting purposes. Multiple choice a. -$0.232, b. -$0.202, c. -$0.155, d. -$0.193"
As depreciation is expected to increase this year by $0.31 million, therefore expenses will increase and will result in decrease in income before tax by $0.31 million
Additional tax saving on increase in depreciation = $0.31 * 35% = $0.108 million
Total change in net income = -$0.31 + $0.108 = -$0.202 million
g Firm X is a monopolist with marginal cost of $5/unit. When maximizing profit, Firm X charges a price of $24/unit. What elasticity of demand is Firm X facing at its current level of output
Answer:
Firm X is facing low elasticity of demand at its current level of output.
Explanation:
This is why Firm X is able to set such a high price of $24/unit when its marginal cost is $5/unit. Usually, a monopolist does not want to set prices and outputs in the inelastic range of the demand curve. It is always interested in setting profit-maximizing prices and outputs. Firm X should be wary of setting too high prices because consumers can decide to lower their demand.
Mae Company sells its product for $12 per unit and has variable costs of $8 per unit. Total fixed costs are $60,000. Suppose variable costs increase by 10% due to an increase in the cost of direct materials. What will be the effect on the breakeven point in units
Answer:
Effect : Increase in Break Even units by 3,750 units to 18,750 units
Explanation:
Break even point is the level of activity at which a firm makes neither a profit nor a loss
Break even Point (Units) = Fixed Costs ÷ Contribution per unit
where,
Contribution per unit = Selling price per unit - Variable Costs per unit
= $12 - $8
= $4
Therefore,
Before Increase
Break even Point (Units) = $60,000 ÷ $4 = 15,000
After Increase
New Contribution = $12 - ($8× 1.10)
= $3.20
Therefore,
Break even Point (Units) = $60,000 ÷ $3.20 = 18,750
Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 121,000 Net operating income $ 59,000 If the variable expenses increase by $1 per unit, the advertising expenditures increase by $15,000, and unit sales increase by 5%, then the best of estimate of the new net operating income is:
Answer:
Net income= $45,125
Explanation:
Giving the following information:
Amount Per Unit:
Contribution margin 180,000 $ 24
Fixed expenses 121,000
Variations:
Unitary variable cost= up by $1
Fixed costs= up by $15,000
Sales increase= 5%
First, we need to calculate the new unitary contribution margin and sales in units:
New contribution margin= 40 - 17= $23
Sales in units= (300,000/40)*1.05= 7,875
Now, we can calculate the new net income:
Total contribution margin= 7,875*23= $181,125
Fixed costs= (121,000 + 15,000)= (136,000)
Net income= 45,125
(True) or (False)? GAAP decides whether a company should use FIFO, LIFO, Weighted Average Cost, or Specific Identification to value its inventory cost.
Answer:
False
Explanation:
In order to choose which inventory method i.e. FIFO, LIFO, weighted average cost, or specific identification method the company can free to choose which any of the inventory methods to determine the inventory cost
There is no need to decided by GAAP
hence, the given statement is false
Therefore it is not a true statement
Recently, Job P951 was completed with the following characteristics: Number of units in the job 100 Total direct labor-hours 100 Direct materials $ 800 Direct labor cost $ 10,700 The unit product cost for Job P951 is closest to:
Answer:
$2,851
Explanation:
The above is an incomplete question. However, a similar question is as seen below
Dehner corporation uses a job order costing system with a single plant wide predetermined overhead rate based on direct labor hours. The company based its predetermined overhead rate for the current year on the following data.
Total direct labor hours 70,000
Total manufacturing fixed overhead cost $273,000
Variable manufacturing overhead per direct labor hour $6.
Given that;
Number of units produced = 100
Direct labor hours = 100
Direct materials = $800
Direct labor cost = $10,700
The unit product cost for jobP951 is
Direct materials = $800
Direct labor cost= $10,700
Variable manufacturing overhead = $6 × 100 = $600
Total fixed manufacturing overhead = $273,000
Total cost = ($800 + $10,700 + $600 + $273,000) = $285,100
Unit product cost = $285,100 ÷ 100
Unit product cost = $2,851
Privacy laws include governing: agreements about supply and delivery of goods. agreements about supply and delivery of goods. enforcing intellectual property rights. enforcing intellectual property rights. employee pay structures employee pay structures data collection, storage, use and permissions.
Answer is given below:
Explanation:
Privacy laws governing the regulation, storage and use of personally identifiable information, personal health information Privacy laws are considered in the context of an individual's privacy rights or a reasonable expectation of privacyso that Privacy laws include governing : Data collection, storage, use and permissionsI am starting a new company as the sole owner. My company will go into people's homes after a fire or flood and clean up and repair any damage. I plan on having 10 employees and hope to expand outside of Raleigh in the future. Should I open my business as a "sole proprietorship" or as an "LLC"?
Answer:
LLC
Explanation:
Sole proprietorships don't have employees
The Federal Reserve buys $44.00 million in Treasury securities. If the required reserve ratio is 30.00%, and all currency is deposited into the banking system, and banks hold excess reserves of 10%, then the maximum amount the money supply can increase is $ million. (Insert your answer in millions; if you think the answer is $30 million, just enter 30. Round your answer to two decimal places.)
Answer:
the money supply would increased by 98
Explanation:
The computation of the maximum amount by which the money supply could increase is shown below;
= Deposit × 1 ÷ Reserve ratio
= 44 × 1 ÷ (0.35 + 0.10)
= 44 × 1 ÷ 0.45
= 44 × 2.2222
= 98
Hence, the money supply would increased by 98
It could be determined by applying the above formula