Suppose that Firm A and Firm B are independently deciding whether to sell at the low price or a higher price. The payoff matrix below shows the profits per year for each company resulting from the two price options. a. Does Firm A have a dominant strategy? The dominant strategy for Firm A is a low price. No, there is no dominant strategy for Firm A. The dominant strategy for Firm A is a high price.
Answers
Answer: No, there is no dominant strategy for Firm A.
Explanation:
Dominant strategies would refer to those that a Firm can take and still have a better payoff regardless of what the other Firm/player chooses. From the above, there is no dominant strategy for Firm A because there is no single strategy that they can follow that will maximise payoff regardless of what B does.
For instance, if Firm A were to charge a lower price, and Firm B charged a higher price, Firm A would make less than Firm B at $2 million. They make less regardless of any decision they make.
Related Questions
A project that provides annual cash flows of $18,200 for nine years costs $88,000 today.
What is the NPV for the project if the required return is 8 percent? (Round your answer to 2 decimal places. (e.g., 32.16))
a. At a required return of 8 percent, should the firm accept this project?
Accept
Reject
b. What is the NPV for the project if the required return is 20 percent? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))
c. At a required return of 20 percent, should the firm accept this project?
Accept
Reject
d. At what discount rate would you be indifferent between accepting the project and rejecting it? (Round your answer to 2 decimal places. (e.g., 32.16))
Answers
Answer:
a) the project should be accepted because its NPV is positive ($25,693.36)
b) if the required rate of return is 20%, the NPV = -$14,636.41
c) the project should be rejected because its NPV is negative
Explanation:
initial outlay year 0 -$88,000
cash flows years 1 - 9= $18,200
required rate of return = 8%
NPV = $25,693.36
required rate of return = 20%
NPV = -$14,636.41
the project's IRR = 14.63%
If expected dividends grow at 7% and the appropriate discount rate is 9%, what is the value of a stock with an expected dividend one year from now of $1.00?
Answers
Answer:
P0 = $49.0825 rounded off to $49.08
Explanation:
The value of a stock whose dividends are expected to grow at a constant percentage is calculated using the constant growth model of DDM or dividend discount model. The DDM values the stock based on the present value of the expected future dividends from the stock. The formula for price of the stock today under this model is,
P0 = D1 / (r - g)
Where,
D1 is the dividend expected for the next periodr is the required rate of return or discount rateg is the growth rate in dividendsTo calculate the price today or P0, we use D1. Thus, as the constant growth rate will apply from Year 2, we will first calculate the price of the stock at Year 1 or P1 using the D2. Then we will discount this P1 back to P0 by dividing it by (1+r).
P1 = 1 * (1+0.07) / (0.09 - 0.07)
P1 = $53.5
Price of the stock today is,
P0 = P1 / (1+r)
P0 = 53.5 / (1+0.09)
P0 = $49.0825 rounded off to $49.08
The value of the stock should be $50.
The calculation is as follows;The value of the stock is
= Expected dividend ÷ (required rate of return - growth rate)
= $1 ÷ (9% - 7%)
= $50
Learn more: brainly.com/question/16911495
Taylor's stock has plummeted in value and is currently priced at $5 a share. The firm prefers the price exceed $10 a share and thus has decided to do a reverse stock split. However, when it does this, the firm wants the stock price increased to at least twice its preferred minimum as it is concerned the price will fall further. Which one of the following stock split ratios is most appropriate for this situation?
A. 1-for-3
B. 1-for-4
C. 2-for-7
D. 4-for-1
E. 7-for-2
Answers
Answer:
D
Explanation:
a reverse stock split is the opposite of a stock split. A reverse stock split reduces the number of shares outstanding.
It is usually done when it is perceived that the stock of a company is undervalued.
In a 4-for-1 split, for every four shares owned by a shareholder, it becomes one. So if a shareholder has 1000 shares at a price of $5, it becomes 1000/ 4 = 250 the shareholder owns. Prices becomes $5 x 4 = $20. this is at least twice its preferred minimum of $10.
A. 1-for-3
B. 1-for-4
C. 2-for-7
are examples of stock splits and not a reverse stock split.
In a 7-for-2, f a shareholder has 1000 shares at a price of $5, price becomes $5 x (7/2) = $17.50
This is not at least twice its preferred minimum of $10.
Calculate the elasticity of a call option with a premium of $6.50 and a strike price of $61. The call has a hedge ratio of 0.7, and the underlying stock’s price is currently $47.
Answers
Answer:
The Elasticity of the call option = [tex]\mathbf{ 5.06 \%}[/tex]
Explanation:
From the given information:
For $1 change in stock price
the percentage of change in stock price = ΔS/S
ΔS/S = (1× 100)/47 = 2.127659574
ΔC = hedge ratio × ΔS
ΔC = 0.7 × 1
ΔC = 0.7
However , the percentage change in the stock call option price = ΔC/C
= (0.7 × 100) / 6.50
= 70/6.50
= 10.76923077
∴
The Elasticity of the call option = [tex]\mathbf{\dfrac{percentage \ change \ in \ the \stock \ call \ option \ price }{percentage \ change \ in \ the \ stock \ price}}[/tex]
The Elasticity of the call option = [tex]\mathbf{ \dfrac{10.76923077 }{2.127659574}}[/tex]
The Elasticity of the call option = [tex]\mathbf{ 5.06 \%}[/tex]
OR
The Price Elasticity of the call option can be computed by using EXCEL FUNCTION(=B3*(B4/B1))
The illustration to that can be seen in the diagram attached below.
The Elasticity of the call option [tex]\simeq[/tex] 5.06% by using EXCEL FUNCTION.
What is Ezy MultiStores?
Answers
Answer:
This is a cloud based platform that allows you to create profit generating "Authority E commerce Affiliate stores"by letting you add products from major E commerce networks without any other approval hassles
When aggregate demand is high enough to drive unemployment below the natural rate:_________
a. there is downward pressure on the price level, and the government may want to conduct contractionary fiscal policy.
b. the economy is slipping into a recession, and the government may want to conduct expansionary fiscal policy.
c. there is upward pressure on the price level, and the government may want to conduct contractionary fiscal policy.
d. there is upward pressure on the price level, and the government may want to conduct expansionary fiscal policy.
e. there is downward pressure on the price level, and the government may want to conduct expansionary fiscal policy.
Answers
Answer:
e. there is downward pressure on the price level, and the government may want to conduct expansionary fiscal policy.
Explanation:
At the time of boom in the economy, the unemployment rate is beneath than the rate i.e. natural also it gives rise to the growth of the economy, along with it the expenditures, consumer spending also increased that ultimately increased the disposable income.
This results in the upward movement in terms of pressure on the aggregate demand that leads to a rise in the level of price and the real GDP also rises which reduced the unemployment
But when the aggregate demand is less so there is a downward pressure on the price as the level of price declines so that the aggregate demand increased and it is requirement made by the government for an expansionary fiscal policy that give increased in government spending or taxes decreased in order to raise the aggregate demand
Clara is setting up a retirement fund, and she plans on depositing $4,900 per year in an investment that will pay 8% annual interest. How long will it take her to reach her retirement goal of $61,189
Answers
Answer:
9 years
Explanation:
assuming that Clara will make her deposits at year end (ordinary annuity), we can use the future value of an annuity formula:
FV = annual payment x annuity factor
FV = $61,189annual payment = $4,900annuity factor = ?annuity factor = $61,189 / $4,900 = 12.48755
using a future value annuity table and looking at the 8% interest column, the factor for 9 periods is 12.488.
Grey Wolf, Inc., has current assets of $2,090, net fixed assets of $9,830, current liabilities of $1,710, and long-term debt of $4,520. a. What is the value of the shareholders’ equity account for this firm? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. How much is net working capital? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Answers
Answer and Explanation:
The computation is shown below:
1. Before computing the stockholder equity first we have to determine the total assets and the total liabilities which is shown below:
As we know that
Total Assets = Current Assets + Net Fixed Assets
= $2,090 + $9,830
= $11,920
Now
Total Liabilities = Current Liabilities + Long-term Debt
= $1,710 + $4,520
= $6,230
So,
Stockholders’ Equity = Total Assets - Total Liabilities
= $11,920 - $6,230
= $5,690
2. The net working capital is
Net Working Capital = Current Assets - Current Liabilities
= $2,090 - $1,710
= $380
On March 1, 2012, Kelly Company lent $3,500 to Tim on a 1-year 6% promissory note. The amount of interest to be accrued on December 31 will be:
Answers
Answer:
$210
Explanation:
Calculation for what the amount of interest to be accrued on December 31 will be
Using this formula
Accrued interest =Amount lent×Promissory note percentage
Let plug in the formula
Accrued interest=$3,500×6%
Accrued interest=$210
Therefore the amount of interest to be accrued on December 31 will be $210
The managerial accountant at Aquatics Pools and Spas assess a fixed overhead budget variance of U in the month of April. The standard hours in April were hours and the standard rate was projected at per machinehour. There were unforeseen complications that involved raw materials and the standard rate projected per machinehour was inaccurate. What was the standard rate per machinehour if the standard fixed overhead cost of production is ? What is the budgeted fixed overhead amount if the actual fixed overhead is ?
Answers
Answer: a. $14.17 /machine hour; $39,700
Explanation:
a. What was the standard rate per-machine hour if the standard fixed overhead cost of production is $41,100?
Standard Fixed Overhead Cost of Production = Standard Hours * Standard Rate
41,100 = 2,900 hours in April * Standard Rate
Standard Rate = 41,100/2,900
Standard Rate = 14.17 per machine hour
b. What is the budgeted fixed overhead amount if the actual fixed overhead is $43,100?
Budgeted Fixed Overhead= Actual Fixed overhead - Fixed overhead unfavourable variance
= 43,100 - $3,400 U in the month of April
= $39,700
The elapsed time between an order's receipt, delivery, and payment is called the:_______.
• product-to-payment cycle
• order cycle
• order-to-payment cycle
• inventory-to-sale cycle
• variable-costs-to-payment cycle
Answers
Answer:
Option C (order-to-payment cycle) seems to be the correct approach.
Explanation:
A journal article directing the monetary compensation, formulated between one individual or financial institution on some other commercial invoice.Draught reasonable opportunity of being heard-an an estimated standard and sometimes agreement to overdraft a sum of money-a draught exceeding the outstanding balances.The other options in question are not connected to the given instance. So that the option however is the right choice.
The following information pertains to United Ways, a private voluntary health and welfare organization, for the year ended December 31, 20X3. Balances in net assets at January 1, 20X3: without Donor Restrictions $ 3,013.888 With Donor Restrictions 11, 19.688 The following transactions occurred during the year ended December 31, 20X3:
1. Received cash donations of $519,000 from donors who did not place any time or purpose restrictions on them.
2. Received $1,003,000 of pledges from donors to be recelved in 20X4; It was estimated that 6 percent of the pledges would not be collected. Donors did not place any restrictions on the use of their pledges.
3. Earned Investment Income of $206.000 on endowment Investments that donors permanently restricted for research activities.
4. Designated $230,000 of the $515,000 of cash donations received In 20X3 for computer acquisitions.
5. Spent $152.000 of the $206,000 of Investment Income earned on endowment Investments on research during the year ended December 31, 20X3. (This amount is included in the $250.800 for research expenses shown in the following table.)
6. Acquired $119,000 of equipment from donations made in 20x2 that donors had restricted for that purchase. The governing board of United Ways reports acquisitions of capital assets as unrestricted
7. Received donated audit services from the organization's accounting firm that would have cost $16,300.
8. Learned that the fair value of endowment Investments was $604,000 higher at the end of 20X3 than at the beginning. United Ways did not acquire or sell any endowment Investments during 20x3 and treats gains and losses on endowment Investments as permanently restricted.
9. Incurred program and supporting services expenses during 20x3 as follows (depreciation expense for 20x3 has been properly allocated to the functional expenses):
Research Public health education Community services Management and general (does not include the audit that was donated) Fund-Raising $250.888 191.888 150, 100 125,900 114,300 Required: Prepare a statement of activities in good form for United Ways for the year ended December 31, 20X3. (Negative values should be entered with a minus sign.)
Answers
Answer:
United Ways
Statement of Activities for the year ended December 31, 20X3:
Without Donor Restrictions
January 1, 20X3 balance $ 3,013.888
Cash from donations 519,000
Computer acquisition (230,000)
Transfer from restricted 119,000
Equipment acquisition (119,000)
Program and supporting services expenses:
Fund-Raising ($250,888)
Public health education (150,100)
Community services (125,900)
Management and general (114,300)
December 31, 20X3 balance $2,661,700 2,661,700
With Donor Restrictions
January 1, 20X3 balance $1,119,688
Earned Investment Income 206,000
Research (152,000)
Transfer to unrestricted (119,000)
Other Research Expenses (39,888)
December 31, 20X3 balance $1,014,800 1,014,800
Donated audit services 16,300
Audit Cost (16,300) 0
Total Change in net assets $3,676,500
Explanation:
a) Data and Calculations:
Balances in net assets at January 1, 20X3:
Without Donor Restrictions
January 1, 20X3 balance $ 3,013.888
Cash from donations 519,000
Computer acquisition (230,000)
Transfer from restricted 119,000
Equipment acquisition (119,000)
Program and supporting services expenses:
Fund-Raising ($250,888)
Public health education (150,100)
Community services (125,900)
Management and general (114,300)
December 31, 20X3 balance $2,661,700
Donated audit services 16,300
With Donor Restrictions
January 1, 20X3 balance $1,119,688
Earned Investment Income 206,000
Research (152,000)
Transfer to unrestricted (119,000)
Other Research Expenses (39,888)
December 31, 20X3 balance $1,014,800
b) United Ways is not a profit-making organization. It is guided by its missions. Therefore, the terms “statement of activities” and “change in net assets” are used instead of “income statement” and “net income.”
"Customer Z is a single 26-year-old man who earns $125,000 annually. He informs you that he is getting married and that his new wife's income of $75,000 per year will put them into the highest federal tax bracket. The couple will have investable income of $25,000 per year. The couple wishes to buy a house in 5 years that will be substantially more expensive than the condominium in which they currently reside. To meet the customer's needs for the large cash down payment in 5 years and to reduce taxable income, the BEST recommendation is to:"
Answers
Answer:
In order to reduce taxable income and at the same time meet the customer's need for a large cash down payment, you should advice him to invest in stocks. The stock market generally yields high returns and since the customer is young, he can afford the risk. Also, and probably most important, capital stock gains are taxed at a much lower rate than interest income (vs investing in bonds).
The "death benefit" associated with a variable annuity contract means that if the contract holder dies:__________.
A. prior to annuitization, the amount invested in the contract is returned to a beneficiary
B. after annuitization, the amount invested in the contract is returned to a beneficiary
C. prior to annuitization, the insurance company will make a lump sum payment to complete the terms of the contract
D. after annuitization, the insurance company will pay for the insured's burial expenses
Answers
Answer:
B. after annuitization, the amount invested in the contract is returned to a beneficiary
Explanation:
Annuitization: In business, the term "annuitization" is described as a phenomenon which is responsible for converting an "annuity investment" into a stream or flow of regular payments. However, with an "annuity" any financial product that is responsible for making out regular payouts after a given time of an individual, his or her investment can pay off quickly.
Schrute Farm Sales buys portable generators for and sells them for He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays a month rent for his store, and also pays a month to his staff in addition to the commissions. Mr. Schrute sold generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of June, what would be his operating income?
Answers
Complete question :
Schrute Farm Sales buys portable generators for $470 and sells them for $740. He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays $5,000 a month rent for his store, and also pays $2,200 a month to his staff in addition to the commissions. Mr. Schrute sold 600 generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of June, what would be his contribution margin? O A $444,000 O B. $139,800 O C. $748.200 D. $304 200
Answer:
139,800
Explanation:
Total Revenue = (quantity sold * price) = (600 * $740) = $444,000
Purchase cost = (purchase price * quantity) = (470 * 600) = $282,000
Variable selling cost = 5% of total revenue = (0.05 * 444,000) = $22,200
Total variable cost = (cost of purchase + variable selling price) = $(282,000 + 22,200) = $304,200
Contribution margin = (revenue - variable cost) = (444,000 - 304,000) = $139,800
Therefore, CONTRIBUTION MARGIN = $139,800
The outstanding bonds of Riverside Tires Inc. provide a real rate of return of 5.6 percent. If the current rate of inflation is 4.68 percent, what is the actual nominal rate of return on these bonds
Answers
Answer: 10.54%
Explanation:
The Real rate of return is calculated as;
(1 + Real Rate) = (1 + Nominal Rate) / (1 + Inflation Rate)
1 + 0.056 = ( 1 + n) / ( 1 + 0.0468)
1.056 = (1 + n) / 1.0468
1.1054208 = 1 + n
n = 0.1054208
n = 10.54%
Corn Doggy, Inc. produces and sells corn dogs. The corn dogs are dipped by hand. Austin Beagle, production manager, is considering purchasing a machine that will make the corn dogs. Austin has shopped for machines and found that the machine he wants will cost $215,000. In addition, Austin estimates that the new machine will increase the company's annual net cash inflows by $33,000. The machine will have a 12-year useful life and no salvage value.
A. Calculate the cash payback period.
B. Calculate the machine's internal rate of return.
C. Calculate the machine's net present value using a discount rate of 10%.
D. Assuming Corn Doggy, Inc.'s cost of capital is 10%, is the investment acceptable?
Answers
Answer:
1. 6.52 years
IRR = 10.93%
NPV = $9,851.30
4. yes
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flow
$215,000 / $33,000 = 6.52 years
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV and IRR can be calculated using a financial calculator
Cash flow in year 0 = $-215,000
Cash flow each year from year 1 to 12 = $33,000
I = 10%
NPV = $9,851.30
IRR = 10.93%
The project is acceptable because the IRR is greater than the cost of capital
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
and the NPV is positive
Purchases in May were $65,000, while expected purchases for June and July are $75,000 and $93,000, respectively. All purchases are paid % in the month of purchase and % in the following month. At what amount are June payments for purchases budgeted?
Answers
Answer:
$61,000
Explanation:
The computation of June payments for purchases budgeted is shown below:-
June payments for purchases budgeted = Purchase of June × Purchase percentage + May purchase × Percentage of the following month
= $75,000 × 25% + $65,000 × 65%
= $18,750 + $42,250
= $61,000
Therefore for computing the June payments for purchases budgeted we simply applied the above formula.
August, Inc. had the following transactions in 2018, its first year of operations: Issued shares of common stock. The stock has par value of per share and was issued at per share. Issued shares of par value preferred stock at par. Earned net income of . Paid no dividends. At the end of 2018, what is total stockholders' equity
Answers
Answer:
A. $601,000
Explanation:
The numbers are missing, so I looked for a similar question:
August, Inc. had the following transactions in 2018, its first year of operations: Issued 21,000 shares of common stock. The stock has par value of $3.00 per share and was issued at $18.00 per share. Issued 1,100 shares of $170.00 par value preferred stock at par. Earned net income of $36,000. Paid no dividends. At the end of 2018, what is total stockholders' equity? A. $601,000 B. $250,000 C. $315,000 D. $565,000
Dr Cash 378,000
Cr Common stock 63,000
Cr Additional paid in capital 315,000
Dr Cash 187,000
Cr Preferred stocks 187,000
Dr Income summary 36,000
Cr retained earnings 36,000
Total stockholders' equity = $63,000 + $315,000 + $187,000 + $36,000 = $601,000
Managerial accounting reporting by a public firm is required to follow the rules of GAAP.
a. True
b. False
Answers
Answer:
b. False
Explanation:
Only external reports which are used by various stakeholders (Investors, customers, tax authorities, banks, suppliers etc.) are required to follow reporting framework laid out in GAAP.
However, for Managerial reporting , no strict requirements are set for the preparation of reports as the management use various reporting styles to manage business performance. An example is the use of Variable Costing Income Statements that show the relationship between outputs and costs resulting from different activity levels.
The Bradford Company issued 12% bonds, dated January 1, with a face amount of $81 million on January 1, 2018. The bonds mature on December 31, 2027 (10 years). For bonds of similar risk and maturity, the market yield is 14%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds at January 1, 2018. 2. to 4. Prepare the journal entry to record their issuance by The Bradford Company on January 1, 2018, interest on June 30, 2018 and interest on December 31, 2018 (at the effective rate).
Answers
Answer:
$81 million in bonds issued January 1, 2018
coupon rate 12%, semiannual 6% interest
maturity = 10 years x 2 = 20 periods
market interest rate = 14% / 2 = 7% semiannual
1) market price of the bonds:
PV of face value = $81,000,000 / (1 + 7%)²⁰ = $20,931,939.23
PV of coupon payments = $4,860,000 x 10.59401 (PV annuity factor, 7%, 20 periods) = $51,486,888.60
market price = $72,418,827.83 ≈ $72,418,828
2) January 1, 2018, bonds issued at a discount
Dr Cash 72,418,828
Dr Discount on bonds payable 8,581,172
Cr Bonds payable 81,000,000
3) June 30, 2018, first coupon payment
Dr Interest expense 4,999,318
Cr Cash 4,860,000
Cr Discount on bonds payable 139,318
amortization of bond discount = ($72,418,828 x 7%) - $4,860,000 = $4,999,318 - $4,860,000 = $139,318
4) December 31, 2018, second coupon payment
Dr Interest expense 5,079,070
Cr Cash 4,860,000
Cr Discount on bonds payable 219,070
amortization of bond discount = ($72,558,146 x 7%) - $4,860,000 = $5,079,070 - $4,860,000 = $219,070
When the Fed raises the required reserve ratio, the excess reserves available in the banking system: Group of answer choices
Answers
Answer:
are decreased
Explanation:
the reserve ratio is the reserve requirement on commercial banks to deposit a percentage of their deposit liabilities to the Central Bank so as not to lend or invest all of them. Therefore when reserve ratio is increased, excess reserves available to banks decrease as they are required to keep more funds with the Central Bank. In the US, the Federal Reserve is in charge of setting the reserve ratio which is specified in Regulation D
Analytical tools and decision-making framework models are essential in the business leader toolbox to move an organization forward in refreshing the vision and associated strategies to achieve that vision. In order to sustain the change initiative, what are some actions necessary to prevent initiative decay
Answers
Answer:
The correct answer to the question in the attached image below is;
Option A and B.
Explanation:
In the image attached, it shows that the change has to be sustainable. The change initiative should be such that it works on its own and becomes part of the routine operations. Also, ability to develop capacity for easier improvement is another action necessary to prevent initiative decay.
Suppose you know a company's stock currently sells for $90 per share and the required return on the stock is 9 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, the current dividend is $_______ per share.
Answers
Answer:
$3.72
Explanation:
in order to determine the price of the stock we use the dividend discount model:
P₀ = Div₁ / (Re - g)
P₀ = $90Div₁ = ?Re = 9%g = 9% / 2 = 4.5%Div₁ = P₀ x (Re - g)
Div₁ = $90 x (9% - 4.5%) = $90 x 4.5% = $4.05
now the current dividend (Div₀) = Div₁ / (1 + Re) = $4.05 / (1 + 9%) = $4.05 / 1.09 = $3.7156 = $3.72
Jamie has determined she is unable to pay the minimum payments on her student loan based on her current income. What is the next BEST step for Jamie in order to avoid late payments or defaulting on her student loan?
Answers
Answer: call the lender so as to discuss the additional repayment options
Explanation:
From the question, we are informed that Jamie has determined she is unable to pay the minimum payments on her student loan based on her current income.
The next best step for Jamie in order to avoid late payments or defaulting on her student loan is to call the lender so as to discuss the additional repayment options.
The decision of what entry mode to use for international expansion is primarily based on all of the following factors except
A. The industry’s competitive conditions
B. The country’s situation and government policies
C. The worldwide economic situation
D. The firm’s unique set of resources, capabilities and core competencies
E. The experiences and capabilities of the firm’s top management team.
Answers
Answer:
C. The worldwide economic situation
Explanation:
These are various advantages for a company that expands into the international market. Having a presence on multiple countries gives advantage of being able to leverage on cheaper labour in some locations, unique capabilities of certain countries, and more favourable political climate for doing business.
Modes of expansion into international market are exporting, liscensing, partnering, acquisitions, and greenfield venturing.
The decision on the entry mode for international expansion includes competitive conditions in the industry, government policies, experience of the companies team, and unique capabilities of the company.
Consideration is not given to worldwide economic situation, but focus is more on the country into which expansion is to occur.
The City of Waterman established a capital projects fund for the construction of an access ramp from the parking garage to the city’s office building to be used by individuals with disabilities. The estimated cost of the ramp is $213,000. On January 1, 20X2, a 10 percent, $154,000 bond issue was sold at 103 with the premium transferred to the debt service fund. At that date, the county board provided a $59,000 grant. After a period of negotiation, the city council awarded a construction contract for $186,000 on April 5, 20X2. The ramp was completed on August 8, 20X2; its actual cost was $193,000. The city council approved payment of the total actual cost of $193,000. In addition to the $193,000, the ramp was carpeted with all-weather material at a cost of $6,780. On November 3, 20X2, the city council gave the final approval to pay for the ramp and the carpeting. After all bills were paid, the remaining fund balance was transferred to the debt service fund.The City of Waterman established a debt service fund to account for the financial resources used to service the bonds issued to finance the ramp is $213,000. The 10 percent, $154,000 bond issue was sold at 103 on January 1, 20X2. It is a 10-year serial bond issue. The resources to pay the interest and annual principal will be from a property tax levy.Additional Information:1. The operating budget for 20X2 included estimated revenue of $37,100. Budgeted appropriations included $15,400 for principal, $15,400 for interest, and $4,300 for other items. The budget also included an estimated transfer in of $6,300 from the capital projects fund.2. The property tax levy was for $42,200 and an allowance for uncollectibles of $4,500 was established. Collections totaled $36,100. The remaining taxes were reclassified as delinquent and the allowance was reduced to $1,600. The bond premium was received from the capital projects fund.3. The current portion of the serial bonds and the interest due this year were recorded and paid. Other expenses charged to the debt service fund totaled $1,880, of which $1,400 was paid.4. The nominal accounts were closed.Required:a. Prepare entries for the debt service fund for 20X2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)b. Prepare a balance sheet for the debt service fund as of December 31, 20X2.c. Prepare a statement of revenues, expenditures, and changes in fund balance for the debt service fund for 20X2.
Answers
Answer:
The City of Waterman
Debt Service Fund:
1. Journal Entries:
Jan. 1, 20X2:
Debit Capital Projects Fund $154,000
Credit 10% Bonds Payable $154,000
To record the issue of a 10 percent, $154,000 bond sold at 103.
Debit Debt Service Fund $4,620
Credit Bonds Premium $4,620
To record the premium on the bond issue.
Debit Capital Projects Fund $59,000
Credit Grant from Country Board $59,000
To record the receipt of a grant.
April 5:
Debit Ramp Construction $186,000
Credit Contracts Payable $186,000
To record the award of construction contract.
August 8:
Debit Ramp Construction $7,000
Credit Contracts Payable $7,000
To record the additional cost of construction.
Debit Ramp Carpeting $6,780
Credit Contracts Payable $6,780
To record the award for carpeting the ramp.
November 3:
Debit Contracts Payable $193,000
Credit Capital Projects Fund $193,000
To record payment for ramp construction contract.
Debit Contracts Payable $6,780
Credit Capital Projects $6,780
To record payment for the ramp carpeting.
Debit Debt Service Fund $13,220
Credit Capital Projects Fund$13,220
To record the transfer of the balance to the debt service fund.
2. The City of Waterman Balance Sheet for the debt service fund as of December 31, 20X2:
Debt Service Fund:
Bonds Premium $4,620
Capital Projects Fund $13,220
3. The City of Waterman Statement of revenues, expenditures, and changes in fund balance for the debt service fund for 20X2:
Revenue from 10% Bonds Payable $154,000
Grant from Country Board 59,000
Cost of Ramp construction (193,000)
Cost of Ramp carpeting (6,780)
Fund Balance 13,220
Explanation:
The City of Waterman's general journal records the transactions that occur about the capital projects fund established by the City of Waterman in order to construct the access ramp from the parking garage to the city’s office building to be used by individuals with disabilities. In the same way, the balance sheet and the statement of revenues, expenditures, and changes in fund balance state the debt service fund balance and the revenues and expenditures during the period.
On November 1, Barnes Corporation has 9,200 units of Product A on hand. During the month, the company plans to sell 44,200 units of Product A, and plans to have 10,950 units on hand at end of the month. How many units of Product A must be produced during the month
Answers
Answer:
45,950 units
Explanation:
To get the number of units of product A to be produced during the month, we'll make use of the formula below
Units produced = Ending inventory + Units - Beginning inventory
= 10,950 + 44,200 - 9,200
= 45,950
Therefore, the units of product A that must be produced during the month is 45,950 units
Crowder Company acquired a tract of land containing an extractable natural resource. Coronado is required by its purchase contract to restore the land to a condition suitable for recreational use after it has extracted the natural resource. Geological surveys estimate that the recoverable reserves will be 2560000 tons, and that the land will have a value of $1080000 after restoration. Relevant cost information follows:
Land $9,000,000
Estimated restoration costs 1,500,000
If Crowder maintains no inventories of extracted material, what should be the charge to depletion expense per ton of extracted material?extracted material?
A. $1.90
B. $2.10
C. $1.60
D. $1.80
Answers
Answer:
Depletion expense per ton = $3.68
Explanation:
Calculation of Total Cost
Total cost = Land + Estimated restoration costs
Total cost = $9,000,000 + 1,500,000
Total cost = $10,500,000
The depletion expenses of Crowder Company is as calculated below:
Depletion expense per ton = (Asset cost - Residual value) / No of unit depletion
Depletion expense per ton = $10,500,000 - $1,080,000 / 2,560,000 tons
Depletion expense per ton = $9,420,000 / 2,560,000 tons
Depletion expense per ton = $3.68
Which of the following actions on the part of the Federal Reserve will result in a decrease in the money supply?
A. Buying government securities in the open market.
B. Increasing the reserve requirements on banks and depository institutions.
C. Decreasing the discount rate.
D. Increasing the amount of loans made to commercial banks.
Answers
Answer:
The answer would be D. Increasing the amount of loans made to commercial banks. Hope this helps. If it does, please give brainliest.