Answer:
Reconciled Bank Balance $114,300.
Explanation:
Cash for operations $100,000
Less: Insurance policy subscription $1,200
Add: Fee for services $20,000
Add: Cash Collection $3,000
Less: Rent expense $4,000
Less: Payment on account $1,000
Less: Cash Dividends paid $2,500
Reconciled Balance $114,300
Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company;s records show the following accounts and amounts for the month of August. Use this information to prepare an August statement of retained earnings for Help Today. (Amounts to be deducted should be entered with a minus sign.)
Cash $ 25,360
Dividends $ 6,000
Accounts receivable 22,360
Consulting fees earned 27,000
Office supplies 5,250
Rent expense 9,550
Land 44,000
Salaries expense 5,600
Office equipment 20,000
Telephone expense 860
Accounts payable 10,500
Miscellaneous expense 520
Common stock 102,000
Use the above information to prepare an August statement of retained earnings for Help Today. The Retained Earnings account balance at August 1 was $0. Hint: Net income for August is $10,470.
Answer:
$4,470
Explanation:
Preparation of an August statement of retained earnings for Help Today.
First step is to prepare the income statement of Help Today
HELP TODAY Income Statement
For Month Ended August 31
Revenues:
Consulting fees earned: $27,000
Total Revenues: $27,000
Expenses:
Rent Expenses $9,550
Salaries Expenses $5,600
Telephone Expenses $860
Miscellaneous Expenses $520
Total Expenses $16,530
Net income $10,470
($27,000-$16,530)
Now let Prepare an August statement of retained earnings for Help Today
HELP TODAY Statement of Retained Earnings
For Month Ended August 31
Retained earnings, August 1: $0
Add: Net Income: $10470
Less: Dividends: ($6000)
Retained earnings, August 31: $4470
($10470-$6000)
Therefore August statement of retained earnings for Help Today is $4470
Mankiw discusses Giffen goods as a possible counterexample to the law of demand. Although not explicitly mentioned by Mankiw, Veblen goods are another possible exception to the law of demand. Perform a quick web search to answer the following:
a. What is a Veblen good?
b. What is an example of a Veblen good?
c. Why do some consumers purchase Veblen goods?
Answer:
Find the answers below
Explanation:
A. Veblen goods are luxury goods sought after by wealthy people and for which these category of people increase their demand as the prices of the good increase (in contrast to the popular law of demand).
2. Examples are luxury houses or cars, jewelry etc.
3. Some customers buy these type of goods in order to show how wealthy they are or show their status.
A stock has a market price of $25 and a standard deviation of returns of 24 percent. The $25 call option matures in 4 months and the risk-free rate is 2.89 percent. N(d1) is .555198 and N(d2) is .500096. What is the value of the call option per share of stock
Answer:
$334.38
Explanation:
Use the following formula to calculate the value of call option
Value of call option = ( N ( [tex]d_{1}[/tex] ) S ) - N ( [tex]d_{2}[/tex] ) K [tex]e^{rt}[/tex]
Where
S = $25
N(d1) = 0.555198
N(d2) = 0.500096
K = 25
r = 2.89%
t = 4/12 = 0.3333
Placing values in the formula
Value of call option = ((0.555198 x $25 ) x $25) - ( 0.500096 x $25 ) x 1.00967891
Value of call option = $346.99875 - $12.62340
Value of call option = $334.37535
Value of call option = $334.38
Rocky Mountain Corporation makes two types of hiking boots—Xactive and Pathbreaker. Data concerning these two product lines appear below: Xactive Pathbreaker Direct materials per unit $ 64.00 $ 50.20 Direct labor cost per unit $ 17.40 $ 12.20 Direct labor-hours per unit 1.4 DLHs 1 DLHs Estimated annual production and sales 17,000 units 67,000 units The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead $1,743,360 Estimated total direct labor-hours 90,800 DLHs
Requried:
a. Compute the predetermined overhead rate based on direct labor-hours.
b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product.
Answer:
1a. Predetermined overhead rate = Estimated total manufacturing overhead / Estimated total direct labor-hours
Predetermined overhead rate = $1,743,360 / 90,800 DLHs
Predetermined overhead rate = $19.20 per DLH
1b. Computation of Unit Product Cost
Xactive Pathbreaker
Direct material $64.00 $50.20
Direct Labor $17.40 $12.20
Manufacturing overhead ((1.4, 1)*$19.20) $26.88 $19.20
Unit product cost $108.28 $81.60
Lieutenant Commander Data is planning to make his monthly (every 30 days) trek to Gamma Hydra City to pick up a supply of isolinear chips. The trip will take Data about three days. Before he leaves, he calls in the order to the GHC Supply Store. He uses chips at an average rate of seven per day (seven days per week) with a standard deviation of demand of two per day. He needs a 98 percent service probability.
Required:
If he currently has 35 chips in inventory, how many should he order? What is the most he will ever have to order?
Answer:
219.57 units
Explanation:
Given :
Daily demand, d = 7 per day
Standard deviation, = 2 per day
Service probability = 98%
Total number of days per week = 7
Lead time , L = 3 days
On hand inventory, I = 35
Now calculating the optimal order quantity by using the given formula,
[tex]$q=d(T+L)+ z \ \sigma_{r+L}-I$[/tex] .............(i)
First, we will find out the value of [tex]$\sigma_{r+L}$[/tex] and z.
Therefore,
[tex]$\sigma_{r+L}=\sqrt{(30+3)(2)^2}$[/tex]
[tex]$=\sqrt{132}$[/tex]
= 11.48
Now the value of z can be found out from the z-table,
Z value for 98% service level = 2.054
Now putting the value of [tex]$\sigma_{r+L}$[/tex] and z in equation (i), we get,
[tex]$q=d(T+L)+ z \ \sigma_{r+L}-I$[/tex]
= (7)(30+3)+(2.054)(11.48) - 35
= 231 + 23.57 - 35
= 219.57 units
So the optimal number of the units required to be order = 219.57 units
Frank Corporation manufactures a single product that has a selling price of $25.00 per unit. Fixed expenses total $64,000 per year, and the company must sell 8,000 units to break even. If the company has a target profit of $19,000, sales in units must be:________.a. 9,648b. 8,760c. 10,375d. 10,560
Answer:
Break-even point in units= 10,375
Explanation:
Giving the following information:
Selling price= $25
Fixed cost= $64,000
Break-even point in units= 8,000
First, we need to determine the unitary contribution margin:
Break-even point in units= fixed costs/ contribution margin per unit
8,000 = 64,000 / contribution margin per unit
contribution margin per unit8,000= 64,000
contribution margin per unit= 64,000 / 8,000
contribution margin per unit= $8
Now, the number of units to be sold to make a profit of $19,000:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (64,000 + 19,000) / 8
Break-even point in units= 10,375
Key Company acquires 60, 10%, 5 year, $1,000 Community bonds on January 1, 2012 for $61,250. This includes a brokerage commission of $1,250. The journal entry to record this investment includes a debit to Group of answer choices Debt Investments for $60,000. Debt Investments for $61,250. Cash for $61,250. Stock Investments for $60,000.
Answer:
Debt Investments for $61,250
Explanation:
When the investment is recorded so here the debt investment should be debited and cash should be credited for $61,250. The investment would be recorded at cost basis also the brokerage represent the investment part
So the journal entry is
Debt investment Dr $61,250
To Cash $61,250
(Being cash paid)
Most labor economists believe that the supply of labor is a. less elastic than the demand, and, therefore, firms bear most of the burden of the payroll tax. b. more elastic than the demand, and, therefore, firms bear most of the burden of the payroll tax. c. more elastic than the demand, and, therefore, workers bear most of the burden of the payroll tax. d. less elastic than the demand, and, therefore, workers bear most of the burden of the payroll tax.
Answer:
d
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
The supply of labour usually exceeds the demand for labour. So, the supply of labour is less elastic. as a result workers bear the burden of tax
Economists in general believe that supply of labor is a. less elastic than the demand, and, therefore, firms bear most of the burden of the payroll tax.
Why is the supply of labor less elastic?Even when employees change the amount they pay people, there will still be others who don't mind working at the new rate.
Supply of labor therefore doesn't change much when rates are changed. This allows employers to pass on payroll tax easily to workers.
In conclusion, option A is correct.
Find out more on labor elasticity at https://brainly.com/question/7432811.
While under contract to play professional basketball for the Philadelphia 76ers, Billy Cunningham, an outstanding player, negotiated a three-year contract with the Carolina Cougars, another professional basketball team. The contract with the Cougars was to begin at the expiration of the contract with the 76ers. In addition to a signing bonus of $125,000, Cunningham was to receive under the new contract a salary of $100,000 for the first year, $110,000 for the second, and $120,000 for the third. The contract also stated that Cunningham "had special, exceptional and unique knowledge, skill and ability as a basketball player" and that Cunningham therefore agreed the Cougars could enjoin him from playing basketball for any other team for the term of the contract. In addition, the contract contained a clause prohibiting its assignment to another club without Cunningham’s consent. In 1971, the ownership of the Cougars changed, and Cunningham’s contract was assigned to Munchak Corporation, the new owners, without his consent. When Cunningham refused to play for the Cougars, Munchak Corporation sought to enjoin his playing for any other team. Cunningham asserts that his contract was not assignable. Was the contract assignable? Explain.
Answer:
Billy Cunningham and the Cougars
The contract was not assignable to another club.
But, the contract (assets and liabilities) can be inherited by a successor entity using the same club, the Cougars.
Explanation:
The contract was not assigned to another club, despite the change of ownership of the Cougars. Interestingly, the contract between Cunningham and Carolina Cougars was inheritable with the change of ownership of the Cougar Club from the formers owners, Carolina Cougars, to the new owners, Munchak Corporation. The clause prohibiting the contract's assignment to another club without Cunningham's consent was not violated.
Define Market failure
Answer:
MARKET FAILURE is defined as the economic situation in which there is inefficient distribution of goods and services.
hope it helps
have a nice day
Answer:
Market failure is the economic situation defined by an inefficient distribution of goods and services in the free market.
Explanation:
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answer the following questions on investment securities.
1.5.1 Name the best type of investment opportunity you may choose in future.
1.5.2 Explain how the following factors may influence your decision to invest in the chosen type of investment opportunity:
(a) Risk
(b) period of investment
b.........................
The book value of an asset is equal to the Group of answer choices asset's fair value less its historical cost. blue book value relied on by secondary markets. replacement cost of the asset. asset's cost less accumulated depreciation.
Answer:
asset's cost less accumulated depreciation
Explanation:
The book value of an asset could be determined by applying the following formula
Book value of an asset = Cost of an asset - accumulated depreciation
The accumulated depreciation is the depreciation that can be more than on year
So as per the given options, the last one is correct
When schools and businesses allocate admissions or jobs on the basis of race, gender, disability, or other criteria unrelated to ability, they are aiming at
Answer:
equality of outcome
Explanation:
Equality of outcome may be defined as to ensuring people with disadvantaged for making any personal profit or gains. It eliminates the personal responsibility of the people.
In the context, when the schools or the businesses allocate jobs or admissions based on the people's disability, race or gender or some other criteria which is unrelated to ability, they are mostly trying o to aim at equality of outcome.
Suppose Masahiro wants to replace an existing printer with a new high-speed copier. The existing printer was purchased ten years ago at a cost of $15,000. The printer is being depreciated using straight-line basis assuming a useful life of 15 years and no salvage value (i.e., its annual depreciation is $1,000). If the existing printer is not replaced, it will have zero market value at the end of its useful life. The new high-speed copier can be purchased for $24,000 (including freight and installation). Over its 5-year life, it will reduce labor and raw materials usage sufficiently to cut
annual operating costs from $14,000 to $8,000. It is estimated that the new copier can be sold for $4,000 at the end of five years; this is its estimated salvage value. The old printer’s current market value is $2,000, which is below its $5,000 book value. If the new copier is acquired, the old printer will be sold to another company. The company’s marginal federal-plus-state tax rate is 40%, and the replacement copier is of slightly below average risk. Net working capital requirements will also increase by $3,000 at the time of replacement. By an IRS ruling, the new copier falls into the 3-year MACRS class. The project’s cost of capital is set at 10.5%.Under the MACRS system, the pre-tax depreciation for the equipment is:
Year 1 = $7,900; Year 2 = $12,800; Year 3 = $6,600; Year 4 = $1,680; Year 5 = $0
Compute the initial investment outlay, operating cash flow over the project’s life, and the terminal-year cash flows for Masahiro’s replacement project. Then determine whether the project should be accepted using NPV analysis
Answer:The effective corporate tax rate is 35% of net income subject to tax. For purposes of capital budgeting, the net investment in the new machine is ... Regal Industries is replacing a grinder purchased 5 years ago for P15,000 ... The new equipment will be depreciated on a straight-line basis over 10 yearsto a zero salvage value
Explanation:
One of these demand and supply diagrams holds within it the concept of economic efficiency for laptop computers. The shaded triangular shape represents consumer surplus, which demonstrates that the equilibrium price in the market was less than what many of the consumers were willing to pay. The equilibrium price for laptop computers is $800 and the equilibrium quantity is 700 laptops.
Required:
Draw the shaded triangular area that represents the area of consumer surplus of laptop computers.
Answer:
The shaded triangular area in the attached photo represents the area of consumer surplus of laptop computers.
Explanation:
Note: See the attached photo for the shaded triangular area that represents the area of consumer surplus of laptop computers.
Consumer surplus on a supply and demand chart represents the area that is bound by the y-axis or price-axis on the left, the demand curve on the right, and a horizontal line where y or price equals the current market price (in this, $800).
Therefore, the shaded triangular area in the attached photo represents the area of consumer surplus of laptop computers.
Identify whether the following transactions are primary market or secondary market transactions. a. You buy 855 shares of ABC Co. through your brokerage account. b. You buy $5,801 of XYZ Co. bonds from another investor. c. M
Answer:
The answer is:
A - Secondary market
B - Secondary market
Explanation:
Primary market is when a share is brought directly from a company through its Initial Public Offering. It is from the company directly to the investors WHILE secondary market is when an investor buys already issued shares from another investor or from a dealer.
A - Secondary market
B - Secondary market
Nếu GDP = $1000, tiêu dùng = $600, thuế = $100, và chi tiêu chính phủ = $200, thì:
A. Tiết kiệm = $0, đầu tư =$0
B. Tiết kiệm = $300, đầu tư =$300
C. Tiết kiệm = $200, đầu tư =$200
D. Tiết kiệm = $200, đầu tư =$100
Answer:
Saving = $200
Investment = $100
Explanation:
Given;
Gross Domestic Production = $1000
Consumption = $600
Taxes = $100
Government spending = $200
Find:
Saving and investment
Computation:
Saving = Gross Domestic Production - Consumption - Government spending
Saving = 1,000 - 600 - 200
Saving = $200
Investment = Saving - Taxes
Investment = 200 - 100
Investment = $100
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.
The CPI for this year is calculated by dividing thecost of a given market basket of goods and services using this year’s prices by thevalue of all goods and services produced in the economy this year using the base year’s prices and multiplying by 100. However, the GDP deflator reflects only the prices of all goods and services produced domestically. Indicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply.
a. A decrease in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea fishing
b. An increase in the price of a Japanese-made television that is popular among U.S. consumers
Answer:
GDP deflator
CPI
Explanation:
The consumer price index measures the changes in price of a basket of good. It is used to measure inflation. Basket of goods includes goods produced within the country and outside the country.
CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100
An increase in the price of a Japanese-made television that is popular among U.S. consumers will increase CPI
GDP deflator = (nominal GDP / real GDP) x 100
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
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.
A decrease in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea fishing will decrease GDP deflator
Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $570,000 396,000 90,000 36,000 18,000 30,000 Percent uncollectible 1% 2% 5% 7% 10% a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method.b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,600 credit.c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $100 debit.
Answer:
a) calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method is $11,820.
b) The adjusting entry to record Bad Debts Expense using the estimate is $8220.
c) The adjusting entry to record bad debts expense using the estimate is $11,920.
Explanation:
Server Corporation is a majority-owned subsidiary of Proxy Corporation. Proxy acquired 75 percent ownership on January 1, 20X3, for $133,500. At that date, Server reported common stock outstanding of $60,000 and retained earnings of $90,000, and the fair value of the noncontrolling interest was $44,500. The differential is assigned to equipment, which had a fair value $28,000 more than book value and a remaining economic life of seven years at the date of the business combination. Server reported net income of $30,000 and paid dividends of $12,000 in 20X3.
Required:
a. Give the journal entries recorded by West during 20X3 on its books if it accounts for its investment in Canton using the equity method.
b. Give the eliminating entries needed at December 31, 20X3, to prepare consolidated financial statements.
Answer:
1/1/2013
Dr Investment in server corporation $133,500
Cr Cash $133,500
1/1/2013
Dr Investment in server corporation $22,500
Cr Cash $22,500
1/1/2013
Dr Cash $9000
Cr Investment in server corporation $9000
1/1/2013
Dr Investment in server corporation $3000
Cr Investment income from serverbcorporation $3000
Explanation:
Preparation of the journal entries
1/1/2013
Dr Investment in server corporation $133,500
Cr Cash $133,500
(To record cash invested)
1/1/2013
Dr Investment in server corporation $22,500
($30,000*75/100)
Cr Cash $22,500
( To record cash invested according to net income)
1/1/2013
Dr Cash $9000
Cr Investment in server corporation $9000
( To record cash received)
1/1/2013
Dr Investment in server corporation $3000
Cr Investment income from serverbcorporation $3000
( To record cash recieved from income)
Suppose a wealthy French citizen buys $2 million worth of stock issued by an American corporation. The American firm uses the proceeds for a factory expansion.
This is an example of foreign _____ investment in the United States.
Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries?
(i) Provide tax breaks and patents for firms that pursue research and development in health and sciences.
(ii) Protect property rights and enforce contracts.
(iii) Give families cash payments on the condition that their children show up for school and medical exams.
(iv) Pursue inward-oriented policies.
Which of the following are possible outcomes of rapid population growth?
(i) A reduction in human capital per worker
(ii) A reduction in capital per worker
(iii) An increase in technological knowledge
(iv) All of the above
Answer: 1. Portfolio
2. • Protecting property rights and enforce contracts.
• Providing tax breaks and patents for firms that pursue research and development in health and sciences.
3. All of the above
Explanation:
1. Since the wealthy French citizen buys $2 million worth of stock issued by an American corporation and the American firm uses the proceeds for a factory expansion, then this is considered to be an example of foreign portfolio investment in the United States.
2. The policies that are consistent with the goal of increasing productivity and growth in developing countries include:
• Protecting property rights and enforce contracts.
• Providing tax breaks and patents for firms that pursue research and development in health and sciences.
3. The possible outcomes of rapid population growth include a reduction in the human capital per worker, a reduction in capital per worker and an increase in technological knowledge. Therefore, the answer is all of the above.
The firm utilizes foreign proceeds for the expansion of its factory. Thus, this is an example of foreign portfolio investment in the United States.
What is foreign portfolio investment?The purchase of foreign securities, such as stocks and bonds, on an exchange is known as foreign portfolio investment.
For the first case, the American firm uses foreign portfolio investment for the expansion of its factory.
For the second case, policies that are in line with the goal of enhancing productivity and growth in developing countries include the following:
Provide tax breaks and patents for firms that pursue research and development in health and sciences.Protect property rights and enforce contracts.For the third case, the outcomes of rapid population growth are:
A reduction in human capital per workerA reduction in capital per worker.An increase in technological knowledge.Therefore, the correct answer for the first case is Foreign portfolio investment, for the second case Option (i), (ii), and for the third case Option (iv) All of the above is the correct answer.
To learn more about Foreign portfolio investment, refer to the link:
https://brainly.com/question/1125884
If the potential customers belong to the same segment, display comparable characteristics, and choose the same product qualities consistent with their segment, then which condition for the ideal market segment approach should be used
Answer: internally homogenous
Explanation:
Since the potential customers belong to the same segment, display comparable characteristics, and choose the same product qualities that are consistent with their segment, then the condition for the ideal market segment approach which should be used is the internally homogeneous.
On the other hand, if the potential customers are in different segments, have different characteristics, and choose different product qualities, then the externally homogeneous will be ideal.
internally homogenous
Hurzdan, Inc., has a 30-day average collection period and wants to maintain a minimum cash balance of $20 million, which is what the company currently has on hand. The company currently has a receivables balance of $196 million and has developed the following sales and cash disbursement budgets (in millions):
Q1 Q2 Q3 Q4
Sales $441 $513 $594 $558
Total cash disbursement 368 465 720 456
Required:
Draw the cash budget table for the company.
Answer:
Hurzdan, Inc.
Cash Budget
Beginning balance $20 -$152 -$176 -$383
Cash collection 196 441 513 594
Cash available $216 $289 $337 $211
Cash disbursement 368 465 720 456
Ending balance -152 -176 -383 -245
Minimum cash balance 20 20 20 20
Cash requirement $172 $196 $403 $265
Explanation:
a) Data and Calculations:
Average collection period = 30 days
Required minimum cash balance = $20 million
Cash, beginning balance = $20 million
Accounts receivable, beginning balance = $196 million
(in millions): Q1 Q2 Q3 Q4
Sales revenue $441 $513 $594 $558
Cash collection $196 $441 $513 $594
Cash disbursement 368 465 720 456
Sahar starts with $114 and then pays $46 for a new my Phone. For an additional $21 she can fully insure her phone against all damage. Sahar figures that there is a 25% chance she will completely ruin her phone by dropping it, after which she would definitely pay the $60 to replace it. Her utility is given by u(c)=ln c, where c includes the total value of her cash and of her phone. What is Sahar's expected utility if she buys the insurance? Please round your answer to the two digit to the right of decimal point.
Answer:
4.53 dollars
Explanation:
beginning amount = 114 dollars
. purchase amount = 46 dollars. the question says the phone can be fully insured against theft with 21 dollars.
114 - 21 = 93
from the question we have been told that Sahar's utility function is given by
u(c) = lnc
we take the natural logarithm of 93
u(c) = ln93
u(C) = 4.53 dollars
so Sahars expected utility if she buys the insurance is 4.53 dollars
During its first year of operations, Indigo Corporation had credit sales of $3,213,200, of which $361,300 remained uncollected at year-end. The credit manager estimates that $16,880 of these receivables will become uncollectible. Prepare the journal entry to record the estimated uncollectibles. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit LINK TO TEXTLINK TO TEXT INTERACTIVE TUTORIAL INTERACTIVE TUTORIAL Prepare the current assets section of the balance sheet for Indigo Corporation, assuming that in addition to the receivables it has cash of $91,990, merchandise inventory of $189,180, and supplies of $12,580. (List current assets in order of liquidity)
Answer and Explanation:
The journal entry is given below;
Bad debts expense $16,880
To Allowance for doubtful accounts $16,880
(Being the bad debt expense is recorded)
The preparation of the current asset section of the balance sheet is presented below:
Cash $91,990
Accounts receivable $361,300
less:allowance for doubtful accounts-$16,880 $344,420
Merchandise inventory $189,180
Supplies $12,580
total current assets $638,170
Why are marketers sometimes "forced” to reposition their products or services? Il
your answers with examples.
Iar
Explaination
Marketers sometimes forced to reposition their services or products to ensure profitability the company has no other option but to reposition its services or products that would cater to a new target segment of their existing market and ensure sales or profitability.
ReasonThere could be many reasons for marketers repositioning their products.
The products are evolving and getting more features into it. They needs to marketed differently in order to make the customers aware of the new features, add-ons. In this case, it is better to reposition the products.
A firm currently produces 1000 units of output and has total costs of $15,000 and fixed cost of $3,000. What is the firm’s average variable costs?
I need help ASAP pleaseeee !!!
Explanation:
Explanation: The formula is ATC = AFC + AVC. Use this formula.
How does the policy define the meaning of insurance
Explanation:
the insurance policy is a contract (generally a standard form contract) between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay.
Kurt has 25/50/25 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. Damage to the parked car was $9,000, and damage to the store was $20,300.
Required:
a. What amount will the insurance company pay for the damages?
b. What amount will Kurt have to pay?
Answer:
A. $25,000
B. $4,300
Explanation:
A. Calculation to determine What amount will the insurance company pay for the damages
Using this formula
Insurance payment=(Claim amount, Policy limit)
Let plug in the formula
Insurance payment= $25,000
Therefore the amount that the insurance company will pay for the damages is $25,000
B. Calculation to determine What amount will Kurt have to pay
Using this formula
Personal liability=Claim amount - Insurance payment
Let plug in the formula
Personal liability=($9,000 + $20,300) - $25,000
Personal liability=$29,300-$25,000
Personal liability=$4,300
Therefore Kurt have to pay $4,300
Guardian Inc. is trying to develop an asset-financing plan. The firm has $430,000 in temporary current assets and $330,000 in permanent current assets. Guardian also has $530,000 in fixed assets. Assume a tax rate of 30 percent. (Do not round intermediate calculations. Round your answers to the nearest whole number.)
a. Construct two alternative financing plans for Guardian. One of the plans should be conservative, with 90 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. The current interest rate is 12 percent on long-term funds and 5 percent on short-term financing. Compute the annual interest payments under each plan.
Annual Interest
Conservative $
Aggressive $
b. Given that Guardian’s earnings before interest and taxes are $310,000, calculate earnings after taxes for each of your alternatives.
Earnings
After Taxes
Conservative $
Aggressive $
c. What would the annual interest and earnings after taxes for the conservative and aggressive strategies be if the short-term and long-term interest rates were reversed?
Conservative Aggressive
Total interest $ $
Earnings after taxes $ $
Answer:
A. Annual Interest
Conservative $145,770
Aggressive $115,294
B. Earnings After Taxes
Conservative $114,961
Aggressive $136,294
C.Conservative Aggressive
Total interest $73,530 $104,006
Earnings after taxes $165,529 $144,196
Explanation:
A. Computation for the annual interest payments under each plan.
First step is to calculate the Total Assets
Temporary current assets $430,000
Permanent current assets $330,000
Fixed Assets $530,000
Total Assets $1,290,000
Now let compute the annual interest payments under each plan
CONSERVATIVE APPROACH total interest
Long term interest
[$1,290,000 *90%* 12%] $139,320
Short term interest
[$1,290,000*10%*5%] $6,450
(100%-10%=90%)
Total $145,770
AGGRESSIVE APPROACH total interest
Long term interest
[$1,290,000 *56.25%* 12%] $87,075
Short term interest
[$1,290,000*43.75%*5%] $28,218.8
(100%-56.25%=43.75%)
Total $115,294
Therefore the is Annual Interest
Conservative $145,770
Aggressive $115,294
b. Calculate to determine the earnings after taxes for each the alternatives.
CONSERVATIVE AGGRESSIVE
EBIT $310,000 $310,000
Less: Interest $145,770 $115,294
EBT $164,230 $194,706
Less: Tax 30% ($49,269) ($58,412)
Earnings after tax $114,961 $136,294
Therefore the Earnings After Taxes is
Conservative $114,961
Aggressive $136,294
c. Calculation to determine What would the annual interest and earnings after taxes for the conservative and aggressive strategies
CONSERVATIVE APPROACH total interest
Long term interest
[$1,290,000 *90%* 5%] $58,050
Short term interest
[$1,290,000*10%*12%] $15,480
(100%-10%=90%)
Total $73,530
AGGRESSIVE APPROACH total interest
Long term interest
[$1,290,000 *56.25%* 5%] $36,281.3
Short term interest
[$1,290,000*43.75%*12%] $67,725
(100%-56.25%=43.75%)
Total $104,006
CONSERVATIVE AGGRESSIVE
EBIT $310,000 $310,000
Less:Interest $73,530 $104,006
EBT $236,470 $205,994
Less: Tax 30% $70,941 $61,798
Earnings after tax $165,529 $144,196
Therefore What would the annual interest and earnings after taxes for the conservative and aggressive strategies is:
Conservative Aggressive
Total interest $73,530 $104,006
Earnings after taxes $165,529 $144,196