Answer:
1. Jan 2 Dr Investment in Fain company stock$440,000
Cr Cash $440,000
2. Dec 31 Dr Investment in Fain company stock 33,060
Cr Income of Fain company 33,060
3. Dec 31 Dr Cash $10,150
Cr Investment in Fain company stock $10,150
Explanation:
Preparation of the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company.
1.Preparation of the entries for Yorkshire Company for the purchase of the stock
Jan 2 Dr Investment in Fain stock$440,000
Cr Cash $440,000
2. Preparation of The journal entry for the share of Fain income
Dec 31 Dr Investment in Fain stock 33,060
Cr Income of Fain company 33,060
(29%* $114,000)
3. Preparation of the journal entry for the dividends received from Fain Company.
Dec 31 Dr Cash $10,150
Cr Investment in Fain company stock $10,150
(29%$35,000)
Which of the following is not correct? Group of answer choices Natural monopolies are often subject to regulation. Public ownership is the most common and effective public policy toward monopolies in the United States. Sometimes the best public policy toward a monopoly is to do nothing. Antitrust laws may prevent mergers that would actually raise social welfare.
Answer: Public ownership is the most common and effective public policy toward monopolies in the United States
Explanation:
A natural monopoly is a monopoly that occurs as a result of the company having an economies of scale and also due to the huge amount of money required for its investment. These monopolies are subject to regulation.
Also, sometimes the best public policy toward a monopoly is to do nothing. Lastly, antitrust laws may prevent mergers that would actually raise social welfare.
Therefore, based on the question asked, the answer is option B.
Prices tend to be sticky because Multiple Choice government controls most prices. foreign competition discourages domestic firms from price changes. firms are worried that frequent price changes would annoy consumers. most firms have agreements with each other to fix prices at profit-maximizing levels.
Answer:
firms are worried that frequent price changes would annoy consumers.
Explanation:
A price is said to be sticky when there are resistance in market price to change immediately even when changes in the economy of a particular country entails differing price of products is optimal.
In Economics, when there are monetary disturbances and a great level of macroeconomic factors in the economy of a particular country, this usually result in prices of goods and services being sticky.
Hence, prices tend to be sticky because firms are worried that frequent price changes would annoy consumers. This ultimately implies that, price stickiness arises due to the fact that business firm or entity are very much concerned or worried that a frequent change in the price of goods and services would make the consumer annoyed.
Sue purchased a stock for $25 a share, held it for one year, received a $1.34 dividend, and sold the stock for $26.45. What nominal rate of return did she earn
Answer:
11.16%
Explanation:
Calculation for What nominal rate of return did she earn
Nominal rate of return= ($26.45 + 1.34 − 25) / $25
Nominal rate of return= 0.1116*100
Nominal rate of return=11.16%
Therefore the nominal rate of return that she earn is 11.16%
Dilts Company has a unit selling price of $650, variable costs per unit of $460, and fixed costs of $326,800. Compute the break-even point in units using (a) the mathematical equation and (b) unit contribution margin.
Answer:
a. 1,720 units
b. 1,720 units
Explanation:
Breakeven Point is the level at which a company makes neither a profit nor a loss, therefore, the Profit will be $0 at this point.
(a) the mathematical equation
Profit = Contribution - Fixed Cost
$0 = ($650 - $460) × units sold - $326,800
Units Sold = $326,800 ÷ ($650 - $460)
= 1,720 units
(b) unit contribution margin
Break even Point (units) = Fixed Costs ÷ Contribution per unit
= $326,800 ÷ ($650 - $460)
= 1,720 units
Munson Co. uses a job order cost system. The following data summarize the operations related to production for July:
July 1 Materials purchased on account, $225,750
2 Materials requisitioned, $217,600, of which $17,600 was for general factory use
31 Factory labor used, $680,000, of which $72,300 was indirect.
31 Other costs incurred on account for factory overhead, $330,000; selling expenses, $180,000; and administrative expenses, $126,000
31 Prepaid expenses expired for factory overhead, $27,500; for selling expenses, $8,100; and for administrative expenses, $5,250
31 Depreciation of office building was $44,500; of office equipment, $16,800; and of factory equipment, $55,100
31 Factory overhead costs applied to jobs, $548,000
31 Jobs completed, $1,140,000
31 Cost of goods sold, $1,128,000
Required:
Journalize the entries to record the summarized operations.
Answer and Explanation:
The journal entries are given below:
a. Materials $225,750
To Accounts Payable $225,750
(Being material purchased on account is recorded)
b. Work in Process $200,000
Factory Overhead $17,600
Materials $217,600
(Being requisitioned of the material is recorded)
c. Work in Process $607,700
Factory Overhead $72,300
Wages Payable $680,000
(Being wages payable is recorded)
d. Factory Overhead $330,000
Selling Expenses $180,000
Administrative Expenses $126,000
Accounts Payable $636,000
(Being account payable is recorded)
e. Factory Overhead $27,500
Selling Expenses $8,100
Administrative Expenses $5,250
To Prepaid Expenses $40,850
(Being prepaid expense expired is recorded)
f. Depreciation Expense- Office Building $44,500
Depreciation Expense- Office Equipment $16,800
Factory Overhead $55,100
Accumulated Depreciation - Building & equipment $116,400
(Being the depreciation expense is recorded)
g. Work in Process $548,000
Factory Overhead $548,000
(Being work in process is recorded)
h. Finished Goods $1,140,000
Work in Process $1,140,000
(Being job completed is recorded)
i. Cost of Goods Sold $1,128,000
Finished Goods $1,128,000
(Being cost of goods sold is recorded)
if the nominal interest rate is 8% and expected inflation is 2.5% then what is the real interest rate
Answer:
Explanation:
[tex]According \ to \ Fischer's \ exact \ formula[/tex]
[tex]r = \dfrac{i-e}{1+e}[/tex]
[tex]here; \\ \\ real \ interest \ rate \ (r) \ = ??? \\ \\ inflation \ rate \ (e) \ = 2.5%[/tex]
[tex]nominal \ interest \ rate \ (i) = 8%[/tex]
[tex]r = \dfrac{0.08-0.025}{1+0.025}[/tex]
[tex]r = \dfrac{0.055}{1.025}[/tex]
[tex]r = 0.0537 \\ \\ r = 5.37 \%[/tex]
[tex]According \ to \ Fischer's \ approximation \ formula: \\ \\ r = i- e \\ \\ r = (8 -2.5) \% \\ \\ r= 5.5 \%[/tex]
Suppose you will receive $500 in one year and the risk-free interest rate (rf) is 5%. The equivalent value today is closest to:
Answer:
$525
Explanation:
Calculation for The equivalent value today
Equivalent value=$500 × (1+.05)
Equivalent value=$500 × (1.05)
Equivalent value= $525
Therefore The equivalent value today is closest to:$525
A student has inherited $50,000. If it is placed in asavings account that earns 3% interest, how much isin the account in 30 years
Answer:
$121,363
Explanation:
The amount in 30 years is known as the Future Value (FV) . We arrive at this figure by compounding the Present Value using the interest earned on the savings as follows :
PV = $50,000
P/yr = 1
N = 30
PMT = $ 0
i = 3 %
FV = ?
Using a Financial calculator to enter the amounts as shown above, the FV can be determined as $121,363
which economies would you expect to rely LESS on foreign trade as a percentage of their economic activity
Answer: А. large, more heavily populated, economies like China
Explanation:
Larger countries like China and the US have a higher population which will mean that domestically, they produce quite a lot and so percentage wise would be able to rely less on foreign trade as they will produce a lot of things for themselves.
Smaller countries like Singapore however, will be unable to produce much of what they need and so will have to engage in foreign trade more than larger countries, percentage wise.
Mathematically speaking. Percentage wise, larger countries will rely less on foreign trade because foreign trade will be less compared to their large economies. The reverse is true for smaller countries.
MedTech Corp. stock was $50.95 per share at the end of last year. Since then, it paid a $0.45 per share dividend. The stock price is currently $62.50. If you owned 500 shares of MedTech, what was your percent return
Answer: 23.55%
Explanation:
Based on the information given in the question, first, we've to calculate the dollar return which will be:
= (Ending value - Beginning value) + Income
= ($62.50 × 500) - ($50.95 × 500 + $0.45 × 500)
= $6000
The percent return will then be:
= $6000 / (50.95 × 500)
= 23.55%
Describe a decision that you or your company made that involved opportunity costs that should have been considered. Why did your company make the decision
Answer:
Yes, once I was working in a clothing retail store as a manager and my company wanted to expand their business by opening another outlet. We had two locations in out mind but the funds were enough to open only one. After a thorough analysis we decided to open it near the central station of the city.
The opportunity cost of the decision is the income lost from the other location that was near the biggest mall of he city. The only reason behind choosing the first alternative is the potential footfall near the location.
The definition of ethics provided in the book focuses on _______. Group of answer choices a) organization b) culture c) business d) conduct
Answer:
d) conduct
Explanation:
Ethics can be defined as a code of conduct that serves as a parameter to guide the behaviors and moral values present in a society.
Therefore, in business, it is essential that the code of ethics represents a conduct of positive behavior that helps to preserve values such as justice, integrity and equality of employees. Ethics assists in maintaining positive organizational values, in building a work environment focused on cooperation, respect and development of individual and general skills.
Gloria just started working for GlenMack. As part of her signing bonus, she received 20 shares of GlenMack stock. Gloria is excited to contribute to the company and to track the value of her shares on the New York Stock Exchange. GlenMack must be:
Answer:
Public Company
Explanation:
In the given case, since it is mentioned that Gloria working for GlenMack now as a part of the signing bonus she received twenty shares from the stock of GlenMack now she is excited to contribute to the company and also wants to track the shares value on the new york stock exchange so here the Glenmust must be public company as the stock are listed on the stock exchange
So the same is to be relevant
explain which types of organizations (if any) will traditional HRM fit most and which types of organizations (if any) will strategic HRM fit most
Answer:
The types of organization that fits the traditional HRM most are functional, divisional, and matrix organizational structures, which have hierarchical and centralized departments, where the HRM process is reactive, and staff specialists manage the human resources.
On the other hand, the types of organizations that fit the strategic HRM most are horizontal, flat, team-based, and networked organizational structures, which do not have hierarchical and centralized departments, where the HRM process is proactive, and line managers manage the human resources.
Explanation:
Traditional Human Resource Management (HRM) concentrates more on fulfilling their narrow mandates and carrying out core human resource activities. It is unlike strategic HRM, which integrates and aligns its activities with the business strategies in order to achieve organizational goals.
Marginal cost is ________ average variable cost when ________. A) equal to; average total cost is minimized B) less than; total cost is maximized C) greater than; average fixed cost is minimized D) equal to; average variable cost is minimized
Answer:
D) equal to; average variable cost is minimized
Explanation:
Marginal cost is equal to average variable cost when average variable cost is minimized.
The relationship between marginal cost and average variable cost is identical to the relationship between marginal cost and average cost. Marginal cost is a cost of an extra unit and an average variable cost is a per-unit cost as the average is equal to extra unit cost when the average is minimum so the MC=AVC at a minimum of AVC.
What is the most important source of revenue and the ma- jor type of expenditure at the Federal level
Answer: See explanation
Explanation:
The most important source of revenue is the income tax and the major type of expenditure at the Federal level is the pension and income security.
Income tax is the tax that the government of a particular country levies on the personal income of the people in the country. The main reason for taxation is to generate revenue which can be sued by the government to meet its expenses like the payment of pension and income security.
Assuming the same facts as those in E6.18 except that the payments must begin now and be made on the first day of each of the 15 years, what payment method would you recommend
Answer:
credit card
Explanation:
In the case of a recurring payment such as is needed in this scenario, the best payment option is a credit card. Credit Cards will allow the payment to go through automatically without the need for manual approval. This also applies regardless of your current bank balance. The payment will go through on the first day of each of the 15 years as long as the credit card is still active and you can pay the credit card bill when it arrives. That way it will not matter if you forget about paying it exactly on the first day of the year.
What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours
Answer:
$44,268
Explanation:
Calculation for What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours
First step is to calculate the Plant-wide Overhead Rate using this formula
Plant-wide Overhead Rate = Total Overhead / Total Direct Labor Hours
Let plug in the formula
Plant-wide Overhead Rate = $632,400 / 4,800 hours
Plant-wide Overhead Rate = $131.75
Now let calculate the total manufacturing overhead for the current product order
Using this formula
Current product order Total Manufacturing Overhead = Plant-wide Overhead Rate * Direct Labor Hours
Let plug in the formula
Current product order Total Manufacturing overhead= $131.75 *336 hours
Current product order Total Manufacturing overhead= $44,268
Therefore the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours will be $44,268
Written notice of an Investigative Report must be given within ______ advance notice before the report beings.
Answer:
3 days.
Explanation:
An Investigative report can be defined as a report prepared by a forensic expert or professional in the unraveling of a crime or issue.
Written notice of an Investigative Report must be given within 3 days advance notice before the report beings.
Basically, an investigative report is required or expected to give an insured person not more than 3 days advance written notice before the report will begin.
XYZ stock price and dividend history are as follows: Year Beginning-of-year Price Dividend paid at Year-End 2010 $100 $4 2011 $110 $4 2012 $90 $4 2013 $95 $4 What is the arithmetic average rate of return for the period from the beginning of 2010 to the end of 2012
Answer:
3.15%
Explanation:
The computation of the arithmetic average rate of return is shown below:
Arithmetic mean = (Year 1 + year 2 ...... Year n return) ÷ (Total number of years)
The rate of return is
= (Capital gain + dividend) ÷ Price
For 2010 - 2011 = ($110 - $100 + 4) ÷ $100 = 14%
For 2011 - 2012 = ($90 - $110 + $4) ÷ $100 = -14.55%
For 2012 - 2013 = ($95 - $90+ 4) ÷ $90 = 10%
Now the arithmetic average rate of return is
= (14% - 14.55% + 10%)
= 3.15%
Process cost systems are used in all of the following industries except: Oil refining. Steel. Home building. Chemicals. Textiles.
Answer:
Ship building
Explanation:
As the process of the ship building includes the different kind of activities that are complex also the volume are so big also each one would be customized according to the customer needs and considered as a distinct job
So as per the given situation the process cost system would not be used for the ship building
And for the other industries it should be used
Tampa Tribune's dominant strategy is ____________ (low price, high price, it has no dominant strategy).
Answer:
Low price
Explanation:
Tampa tribune dominant strategy is low price. If the company keeps its prices high it can get maximum revenue of $88 whereas if the company keeps its prices low it can make maximum revenue of $120. The difference of $32 is gained when the prices are kept and this is dominant strategy for Tampa Tribune.
How would a mining company try to restore the land back to its original state after extraction of the ore was completed
Answer:
by completely cleaning up the land and paying for damages
Explanation:
The way that mining companies accomplish this is by completely cleaning up the land and paying for damages. These damages include anything that was destroyed in order for the mining to take place, including buildings, houses, parks, etc. This money goes to the city or individuals in charge of the land which they can use to rebuild on top of the clean land and shape it as they see fit. This entire process is usually known as land reclamation.
Bill Matthews is investing $8,800 in the Washington Mutual fund. The fund charges a 4.80 percent commission when shares are purchased. Calculate the amount of commission Bill must pay.
Answer:
Commission= $422.4
Explanation:
Giving the following information:
Initial investment= $8,800
Commission rate= 4.8% = 0.048
To calculate the commission paid, we need to use the following formula:
Commission= initial investment*commission rate
Commission= 8,800*0.048
Commission= $422.4
A 7-year municipal bond yields 4.80%. Your marginal tax rate (including state and federal taxes) is 32.00%. What interest rate on a 7-year corporate bond of equal risk would provide you with the same after-tax return
Answer:
the Interest rate on corporate bond is 7.06%
Explanation:
The computation of the rate of interest is shown below:
As we know that
The Interest rate on corporate bond × (1 - tax rate) = Municipal bond yield
The Interest rate on corporate bond × (1 - 0.32) = 4.80%
The Interest rate on corporate bond × 0.68 = 4.80%
The Interest rate on corporate bond = 4.80% ÷ 0.68
= 7.06%
Hence, the Interest rate on corporate bond is 7.06%
An obese man in New York sued McDonald's, Burger King, Wendy's, and KFC because he claims the f gast-food giants caused his diabetes and other health problems. The suit is an example of a problem caused by competitive factors. True False
Answer:
False
Explanation:
Usually competitive factors include things like price, product quality, service quality, place or location, etc. But this lawsuit is part of the environmental factors that the different companies face. More specifically it involves legal factors and regulations that must be faced by a company.
Fulton Company owns the following investments: Trading securities (fair value) $160,000 Available-for-sale securities (fair value) 70,000 Held-to-maturity securities (amortized cost) 94,000 Fulton will report investments in its current assets section of
Answer:
the investment should be reported in the current asset section for $16,0000
Explanation:
The computation of the current asset section that report the investment is shown below:
= Investment value
= Fair value of the trading securities
= $160,000
Hence, the investment should be reported in the current asset section for $16,0000
The same is relevant and considered too
Suppose in 2016 , the cost of a market basket of goods was $1 ,958 . In 2018 , the cost of the same market basket of goods was $2,107 . Calculate the price index for 2018 , using the price index formula, assume 2016 is the base year. nothing
Answer:
107.60
Explanation:
The formula for calculating the price index is as below
price index = current market price/ base year price x 100%
price index = $2107/$1958 x 100
price index = 1.076098059 x 100
price index = 107.6098059
The first stage in the month-end process is reviewing transactions and recognizing any possible issues. What are the 2 open issues that can be viewed from the Transaction review tab?
Answer:
The correct 2 open issues are uncategorized transactions and transactions without payees
Explanation:
In the transaction review tab the two open issues that could be seen is non-categorization of the transactions and the transactions done without payees also it depicts the incomplete information and in this case it can be seen that there is a blank line in the column now for correcting it choose the transaction and then correct it
Therefore The correct 2 open issues are uncategorized transactions and transactions without payees
Other financial data for the year ended December 31, 2020: Included in accounts receivable is $1,200,000 due from a customer and payable in quarterly installments of $150,000. The last payment is due December 29, 2022. During the year, estimated tax payments of $525,000 were charged to income tax expense. The current and future tax rate on all types of income is 30%. In Reese's December 31, 2020 balance sheet, the current liabilities total is
Answer:
$2,500,000
Explanation:
Calculation for the current liabilities total
Account payable and Accrued Liabilities $1,761,000
Add Income tax payable $654,000
Add Deferred income tax liability $85,000
Current liabilities total $2,500,000
($1,761,000+$654,000+$85,000)
Therefore the Current liabilities total is $2,500,000