Answer:
1. Cash (Dr.) $4,800
Sales (Cr.) $4,800
2. Warranty Expense 6% * $4800 (Dr.) $288
Estimated warranty Liability (Cr.) $288
3. Estimated warranty liability $15 * 12 razors (Dr.) $180
Inventory (Cr.) $180
4. Cash (Dr.) $14,400
Sales (Cr.) $14,400
5. Warranty Expense 6% * $14,400 (Dr.) $864
Estimated warranty Liability (Cr.) $864
6. Warranty liability $15 * 24 razors (Dr.) $360
Inventory (Cr.) $360
7. Cash (Dr.) $9,600
Sales (Cr.) $9,600
8. Warranty Expense 6% * $9600 (Dr.) $576
Estimated warranty Liability (Cr.) $576
9. Estimated warranty liability $15 * 29 razors (Dr.) $435
Inventory (Cr.) $435
Explanation:
Lobo Co sells razors to customer. It provides 90 day return warranty. The estimated returns are 6% of sales made. The estimated warranty liability is recognized at the time of sales. The expense for return of razor is recognized as warranty expense as company discards the returned razors which costs it $15 per razor.
Problem 5-1 Simple Interest versus Compound Interest [LO1] First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a $68,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years
Answer:
$14,343.25
Explanation:
The computation is shown below;
For the first bank
The value of investment is
= $68,000 × 8% × 8 + $68,000
= $111,520
For the second bank
= $68,000 × (1 + 0.08)^8
= $125,863.25
So, the difference in these both amount should be
= $125,863.25 - $111,520
= $14,343.25
On March 1, Incredible Company issued a $600,000, 90-day interest-bearing note to Minions Bank. Interest on the note is 10% and is paid at maturity. Assume an April 30 fiscal year-end and a 360 day year when calculating interest.
Group of answer choices
May 30
May 29
June 1
May 31
Answer:
I do not know at all
Explanation:
I do not know
Mainway Toy Company currently has 10,000 shares of common stock outstanding. Its management believes that its current stock price of $95 per share is too high. The company is planning to conduct stock splits in the ratio of 2 for 1 as described in the animation. If Mainway Toy Company declares a 2-for-1 stock split, the price of the company's stock after the split, assuming that the total value of the firm's stock remains the same after the split, will be ____________.
Answer:
$47.50
Explanation:
A stock split implies dividing the existing number of shares into multiples in order to enhance the liquidity of the firm's shares.
It is noteworthy that the stock split does not add any value to the existing stock account balance as well as paid in surplus account value since only the number of issued shares changed , values are kept constant.
share price after split=share price before split/stock split ratio
share price before split=$95
stock split ratio=2/1
share price after split=$95/2/1
share price after split=$95*1/2
share price after split=$47.50
Galaxy Company sold merchandise costing $3,400 for $5,800 cash. The merchandise was later returned by the customer for a refund. The company uses the perpetual inventory system. What effect will the sales return have on the financial statements
Answer:
Total assets and total equity decrease by $2,400
Explanation:
The journal entry to record the sales return is
Sales return Dr $5,800
To account receivable $5,800
(being the sales return is recorded)
Inventory Dr $3,400
To cost of goods sold $3,400
(Being the inventory is recorded)
So as we can see that total assets and total equity decreased by
= $5,800 - $3,400
= $2,400
study Assume that you are going to invest $120,000 in a two asset portfolio. You will invest $80,000 in the fully diversified market portfolio and the remainder of your funds will be invested in the riskless security. Assume the market risk premium is 8% and the riskless return is 4%. Compute the expected return on this portfolio.
Answer:
9.33%
Explanation:
The expected return of two asset portfolio is the weighted average of individual assets' expected to return as computed thus:
Portfolio expected return=(weight of market portfolio*expected return of market portfolio)+(weight of riskless security*expected return of riskless security)
weight of market portfolio=amount invested in market portfolio/total invested amount
weight of market portfolio=$80,000/$120,000=66.67%
expected return of market portfolio=market risk premium+riskless return
expected return of market portfolio=8%+4%=12%
weight of riskless security=1-66.67%=33.33%(since total investment which is 100% is 1)
expected return of riskless security=4%
Portfolio expected return=(66.67%*12%)+(33.33%*4%)
Portfolio expected return=\=9.33%
What are derivatives? Different types of derivatives ? What are Forward contracts ?
What are Futures contracts ? Features and benefits of derivatives ?
Explanation:
The most common types of derivatives are forwards, futures, options, and swaps. The most common underlying assets include commodities, stocks, bonds, interest rates, and currencies. Derivatives allow investors to earn large returns from small movements in the underlying asset's price.
Mighty Safe Fire Alarm is currently buying 62,000 motherboards from MotherBoard, Inc. at a price of $66 per board. Mighty Safe is considering making its own motherboards. The costs to make the motherboards are as follows: direct materials, $32 per unit; direct labor, $12 per unit; and variable factory overhead, $15 per unit. Fixed costs for the plant would increase by $87,000. Which option should be selected and why
Answer:
d) Make, Increase in profits $434,000
Explanation:
Differential analysis
Make Buy
Direct material (62000I*32) $1,984,000
Direct labor (62000*12) $744,000
Variable overhead (62000*15) $930,000
Purchase cost (62000*66) $4,092,000
Total relevant cost $3,658,000 $4,092,000
So, the Company Should make because the cost is lower. Increase in profits $434,000 ($,092,000-$3,658,000)
Shaq Corporation issued $10,000 of 20-year bonds on January 1, 2021. The bonds pay interest semiannually. This is a partial bond amortization schedule for the bonds.
Payment Cash Effective interest Decrease in balance Outstanding balance
9,080
1 400 409 9 9,089
2 400 409 9 9,098
3 400 409 9 9,107
4 400 410 10 9,117
What is the effective annual rate of interest on the bonds?
a. 9.0%.
b. 4.5%.
c. 8.0%.
d. 4.0%.
Answer:
The correct option a. 9.0%.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
The explanation of the answer is now given as follows:
Effective semiannual interest rate = Effective interest / Previous outstanding balance ……………………. (1)
Using Payment 1 information, we have:
Effective semiannual interest rate = 409 / 9,080 = 0.0450, or 4.50%
Effective annual interest rate = Effective semiannual interest rate * Number of semiannuals in a year = 4.50% * 2 = 9.0%
Therefore, the correct option a. 9.0%.
Feedback is important in improving your performance, and we should solicit feedback, and not just wait until someone provides us with feedback. Group of answer choices
a. True
b. False
Answer:
The given statement is "True".
Explanation:
Feedback would be a significant aspect in improving the accomplishment or organization's success.Requesting or waiting for such feedback might contribute to less and less input, although the organization must request for input, this same person might communicate with the organization by requesting comments.Thus the above is the correct answer.
What are the three main goals of monetary policy?
Isabelle provides her subordinates with plenty of opportunities to grow and be recognized at their job by allowing them to take on challenging tasks and letting them have more control and authority over their jobs. Which strategy is Isabelle using to motivate her subordinates
Answer:
Job enrichment
Explanation:
A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.
Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.
In this scenario, the strategy Isabelle is using to motivate her subordinates is job enrichment by giving or granting them greater satisfaction in their jobs.
the long run average cost curve is also called as
Answer:
planning curve.
Explanation:
A long run average cost curve is known as a planning curve.
Early colonists came to America:_________.
a. for a wide range of economic and political agendas as well as for religious and philosophical reasons.
b. to set up a democratic political system.
c. to avoid the widespread poverty and economic depression that was sweeping Europe.
d. solely to obtain land. solely to escape religious persecution.
Answer: a. for a wide range of economic and political agendas as well as for religious and philosophical reasons.
Explanation:
There were various reasons the early colonists came to Northern America to found the colonies such as for economic and political reasons and others for religious reasons.
William Bradford for instance, helped found the Plymouth Colony as a haven for Puritan separatists like himself to escape persecution in England. John Smith on the other hand, came more for economic reasons.
Then there was James Oglethorpe of Georgia who wanted to found a home for the "worthy poor" of England so that they would have a chance to make something of themselves.
The adjusted trial balance of Novak Corp. shows these data pertaining to sales at the end of its fiscal year, October 31, 2022: Sales Revenue $907,200; Freight-Out $13,600; Sales Returns and Allowances $19,800; and Sales Discounts $15,200.
Required:
Prepare the sales section of the income statement.
Answer:
$872,200
Explanation:
Preparation of the sales section of the income statement.
NOVAK CORP Income Statement ( Partial)
for the year ended 31 Oct, 2022
Revenue [Net Sales]
Sales Revenue $907,200
Less:
Sales Return & Allowances ($19,800)
Sales Discounts ($15,200)
Net Sales $872,200
Therefore the sales section of the income statement is $872,200
financial lit Banks offer other types of services such as safe deposit boxes for customers to store valuable documents. List at least two other types of non-account services that the provider makes available to customers, either for a fee or at no cost.
Answer and Explanation:
Banks offer agency services too such as being trustees, executors, or financial advisors to their customers. They can also stand as guarantee for their customers.
Banks also offer reference services. They provide information on the financial position or strength of their customers for the purpose of a customer's business dealing. This is usually done confidentially and with the permission of the customer
Chris and Jane have recently financed the purchase of a new home. They have signed a mortgage note in the amount of $250,000 with a fixed interest rate of 6.25% over 30 years. What would have been the difference, if any, in their monthly payment if they had signed this same note for only a 15-year period
Answer:
Chris and Jane
The difference in their monthly payment if they had signed this same note for only a 15-year period is:
= $8,346.57.
Explanation:
Mortgage Note Payable = $250,000
Fixed interest rate = 6.25%
Period of the note = 30 years or 15 years
Difference in monthly payment:
30-year period = $9,022.96
15-year period = $17,369.53
Difference = $8,346.57
b) The computations show that Chris and Jane pay more per month on a 15-year period mortgage than on a 30-year period mortgage. However, the total interest is more with a 30-year period than with a 15-year period. This shows that interest expense increases more with longer periods of debt.
From an online financial calculator:
N (# of periods) 30
I/Y (Interest per year) 6.25
PV (Present Value) 250000
FV (Future Value) 0
Results
PMT = $9,022.96
Sum of all periodic payments = $270,688.83
Total Interest = $20,688.83
N (# of periods) 15
I/Y (Interest per year) 6.25
PV (Present Value) 250000
FV (Future Value) 0
Results
PMT = $17,369.53
Sum of all periodic payments = $260,542.92
Total Interest = $10,542.92
Several years ago, Judy purchased a $1,000 par value corporate bond in the secondary market for $965. Although the bond still has several years until maturity, similar bonds in the marketplace are now selling at a premium with a market price of $1,065. If Judy were to sell her bond, how much, if any, would be treated as a capital gain
Answer: $100
Explanation:
The capita gain is simply the difference between the price that Judy bough the bond at and the price of the bond should Judy decide to sell it now.
Capital gain is therefore:
= Selling price - Buying price
= 1,065 - 965
= $100
compare long term leadership task of the educators and short term leadership tasks for educators
Answer:
Short term leadership roles on an educator entail the responsibilities associated with day to day needs of learners.
On the other hand , long term roles have to do with planning and implementation of policies aimed at fostering positive outcomes in the learning process.
This year, he received $7,000 revenue from the tenants and incurred $4,900 rental expenses. Mr. Moyer must include $7,000 in gross income and is allowed $4,900 of itemized deductions for the expenses.
A. True
B. False
Answer:
B. False
Explanation:
a) Data and Calculations:
The gross income from rent = $7,000
Rental expenses = $4,900
Net income from rent = $2,100
b) Rental expenses are business expenses. They are not part of itemized deductions. They are usually subtracted before arriving at the adjusted gross income (AGI) from which itemized deductions are then made. Therefore, there is no requirement to itemize the rental expenses.
Your company has earnings per share of $ 4.19. It has 1.9 million shares outstanding, each of which has a price of $59. You are thinking of buying TargetCo, which has earnings per share of $ 2.10, 1.9 million shares outstanding, and a price per share of $ 21.You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. If companies in the same industry as TargetCo are trading at multiples of 12 timesearnings, what would be one estimate of an appropriate premium forTargetCo?
TargetCo has $2.10 in earnings, so if other companies in its industry are trading at 12 times earnings, then a starting point for a valuation of TargetCo in this transaction might be ________ pershare, implying a _________ premium
Answer:
If the current earnings per share of TargetCo. are $2.10, and the times earnings multiple is 12, the relative valuation should result in a $2.10 x 12 = $25.20 per stock. This means that the premium per stock = $25.20 - $21 = $4.20, and the total premium paid for all the 1.9 million shares = $7.98 million.
Use the following information to compute profit margin for each separate company a through e. (Round your answers to 1 decimal place.)
Company Net income Net sales Profit Margin
a. $5,253 $44,140
b. 86,033 392,846
c. 90,324 251,598
d. 63,120 1,434,550
e. 72,787 428,158
Required:
Which of the five companies is the most profitable according to the profit margin ratio?
Answer:
the Company C is the most profitable
Explanation:
The computation of the profit margin for the following companies is
We know that
Profit margin = Net income ÷ Net sales
Now
Company Net income Net sales Profit margin
a $5,253 $44,140 11.9%
b $86,033 $392,846 21.9%
c $90,324 $251,598 35.9%
d $63,120 $1,434,550 4.4%
e $72,787 $428,158 17.0%
Based on the calculation above, the Company C is the most profitable
Better Corp. (BC) began operations on January 1, Year 1. During Year 1, BC experienced the following accounting events: 1. Acquired $7,000 cash from the issue of common stock. 2. Borrowed $12,000 cash from the State Bank. 3. Collected $47,000 cash as a result of providing services to customers. 4. Paid $30,000 for operating expenses. 5. Paid an $8,000 cash dividend to the stockholders. 6. Paid $20,000 cash to purchase land.Required:a. Record the events in an accounting equation like the one shown next. Record the ined Earnings column. b. As of December 31, Year 1, determine the total amount of assets, liabilities, and stockholders’ equity and prepare a balance sheet.
c. What is the amount of total assets, liabilities, and stockholders’ equity as of January 1, Year 2?
d. Assume that the land has a market value of $22,000 as of December 31, Year 1. At what amount will the land be shown on the December 31, Year 1, balance sheet? Why is this amount used in the balance sheet?
Answer:
Better Corp. (BC)
a. Accounting Equation
Assets = Liabilities + Equity
1. Cash $7,000 Common stock $7,000
2. Cash $12,000 Bank loan payable $12,000
3. Cash $47,000 Service Revenue $47,000
4. Cash ($30,000) Op. expenses ($30,000)
5. Cash ($8,000) Cash dividend ($8,000)
6. Land $20,000 Cash ($20,000)
Assets $28,000 = Liabilities $12,000 + Equity $16,000
b. Total assets = $28,000
Total liabilities = $12,000
Stockholders' equity = $16,000
Balance Sheet as of December 31, Year 1
Assets:
Cash $8,000
Land $20,000
Total assets $28,000
Liabilities:
Bank loan $12,000
Equity:
Common stock $7,000
R/Earnings 9,000
Total equity $16,000
Liabilities and
Equity $28,000
c. Total assets = $28,000
Total liabilities = $12,000
Total equity = $16,000
d. The Land will be shown on the December 31, Year balance sheet at $20,000. The reason is that this is the acquisition cost and the land is not held for trading (no information provided).
Explanation:
a) Data and Analysis based on the Accounting Equation:
1. Cash $7,000 Common stock $7,000
2. Cash $12,000 Bank loan payable $12,000
3. Cash $47,000 Service Revenue $47,000
4. Cash ($30,000) Operating expenses ($30,000)
5. Cash ($8,000) Cash dividend ($8,000)
6. Land $20,000 Cash ($20,000)
Mackie Services operates a website that links experienced statisticians with businesses that need data analyzed. Statisticians post their rates, qualifications, and references on the website, and Mackie receives 25% of the fee paid to the statisticians in exchange for identifying potential customers. Hoffman Associates contacts Mackie and arranges to pay a consultant $1,500 in exchange for analyzing some data. Mackie's income statement would include the following with respect to this transaction:_________
a. Revenue of $1,875 and cost of services of $1,500
b. Revenue of $1,500
c. Revenue of $1,500, and cost of services of $1,125
d. Revenue of $375
Answer:
d. Revenue of $375
Explanation:
The amount paid by the Vetmed associates is an expense for associates
The amount received by statisticians is a revenue for them
Mackie Services an intermediate between the two and so, the percentage amount received by Mackie Services is a revenue
Mackie's income statement would include a revenue of:
= Amount paid to statisticians * % Received
= $1,500 * 25%
= $375
Question 2
• The number of electrical outages in a city varies from day to day. Assume that
the number of electrical outages («) in the city has the following probability
distribution
f)
0
0.8
0.15
2
3
0.01
و مرا به دو
A) The mean for the number of electrical outages is
B) The standard deviation for the number of electrical outages is
Answer:
The answer is below
Explanation:
Probability distribution are statistical function that shows all the possible outcomes of a random variable within a given range of values.
a) The mean ([tex]\bar x[/tex]) of a probability distribution of a discrete random variable is:
[tex]\bar x=\Sigma\ [xP(x)][/tex] = (0 * 0.8) + (1 * 0.15) + (2 * 0.04) + (3 * 0.01) = 0.26
b) The standard deviation (σ) of a probability distribution of a discrete random variable is:
[tex]\sigma=\sqrt{ \Sigma\ [(x-\bar x)^2*P(x)]}\\\\\sigma=\sqrt{(0-0.26)^2*0.8+(1-0.26)^2*0.15+(2-0.26)^2*0.04+(3-0.26)^2*0.01} \\\\\sigma=0.577[/tex]
ABC Systems located in Alabama expects a 9% after-tax rate of return on an equipment investment. The state tax rate is 6%. If the company is in the 34% federal tax bracket, estimate the before-tax rate of return required. Hint: Combined tax rate
Answer: 14.5%
Explanation:
The after tax return is calculated by the formula:
= Before tax return * (1 - federal tax) * (1 - State tax)
As we have the after tax return, we should work on the before tax:
9% = Before tax return * (1 - 34%) * (1 - 6%)
9% = Before tax return * 0.6204
Before tax return = 9% / 0.6204
= 14.5%
A company using IFRS to prepare its financial statements will use a hierarchy to determine what recognition, valuation, and disclosure requirements should be used.
1. IFRS, IAS, IFRS Interpretations
2. Pronouncements of other standard-setting bodies
3. The Conceptual Framework for Financial Reporting
Which of the following depicts the correct order of the hierarchy?
a. 2,3,1
b. 3,2,1
c. 1.2.3
d. 1,3,2
Answer:
The hierarchy for determining recognition, valuation, and disclosure requirements for IFRS is:
d. 1,3,2
Explanation:
1. IFRS, IAS, IFRS Interpretations are the main standards issued by the IASB, the international accounting standard-setting body. It is like the FASB that sets the US GAAP.
2. Pronouncements of other standard-setting bodies can be applied where IFRS are not definitive.
3. The Conceptual Framework for Financial Reporting help the IASB to develop and revise IFRS that are based on consistent concepts.
Vietnamese citizens went working in Korea. They sent their income back to the families in Vietnam, worth of $678,000. Which account is affected?; how do you record this into the US BoP?
Answer:
a. Current Account.
b. A credit to the Current Account.
Explanation:
When people go to another country for work and send the income they make back to their country of origin as remittances, this goes to the Current Account of a nation's Balance of Payments.
It would be recorded as a credit to this account because when money goes out, it goes to the credit side of the U.S. BOP as it is being exported out so is leaving the economy of the U.S.
What is salary system?
Answer:
Salary systems – also referred to as compensation plans or pay structure – are a collection of steps, policies and practices employers use to pay employees for their work. Salary systems consist of more than producing a weekly, biweekly or bimonthly paycheck.
Explanation:
Brinkley Corporation needs to estimate the profit for a new product. Profit is selling price minus cost. The selling price for the product will be $45/unit. The cost of the new product will comprise procurement, labor, and transportation costs. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows:
Procurement Cost ($) Probability Labor Cost ($) Probability Transportation Cost ($) Probability
10 0.25 20 0.10 3 0.75
11 0.45 22 0.25 5 0.25
12 0.30 24 0.35
25 0.30
Required:
Compute profit per unit for the worst case.
Answer:
Brinkley Corporation
Profit per unit for the worst case is:
= $7.05.
Explanation:
a) Data and Calculations:
Selling price for the product = $45 per unit
Cost of the new product =
Procurement Probability Labor Probability Transportation Probability
Cost ($) Cost ($) Cost ($)
10 0.25 20 0.10 3 0.75
11 0.45 22 0.25 5 0.25
12 0.30 24 0.35
25 0.30
Procurement Probability Labor Probability Transportation Probability
Cost ($) Cost ($) Cost ($)
2.50 (10 * 0.25) 2.00 (20 * 0.10) 2.25 (3 * 0.75)
4.95 (11 * 0.45) 5.50 (22 * 0.25) 1.25 (5 * 0.25)
3.60 (12 * 0.30 ) 8.40 (24 * 0.35)
7.50 (25 * 0.30)
11.05 23.40 3.50
Procurement cost = $11.05
Labor cost = 23.40
Transportation cost 3.50
Total cost = $37.95
Selling price per unit = $45.00
Total cost per unit 37.95
Profit per unit = $7.05
Suppose the production of long-distance airline flights is described by a fixed proportion production process in which three crew members (i.e., labor) are required for each aircraft (i.e., capital). If the airline operates with four crew members per plane, then we know that:
Answer:
production at this point is technically inefficient.
Explanation:
Efficient production processes requires a producer to either minimise the inputs they are using at a given output or maximise output level at a given input level.
Technical inefficiency is when input is not minimised or output maximised.
In the given instance the fixed cost (airplane) remains unchanged. However crew members can be variable.
If the airplane only requires 3 crew members and 4 crew members are now used, the company is not minimising inputs used so they are technically inefficient.