Answer:
$3,628 per direct labour hour.
Explanation:
Total manufacturing overhead cost and total direct labour hours
Particulars Dep 1 Dep 2 Total
Manufacturing overhead cost 1,360,000 3,560,000 4,920,000
Direct labour hours 553,000 803,000 1,356,000
Plant-wide overhead rate = Total manufacturing overhead / Total direct labour rate
Plant-wide overhead rate = $4,920,000 / 1,356,000
Plant-wide overhead rate = $3,628
Therefore, the Plant-wide overhead rate is $3,628 per direct labour hour.
Companies are doing less ________ and more ________ as a result of an explosion of more focused media that better match today’s targeting strategies. Group of answer choices
Answer: broadcasting; narrowcasting
Explanation:
With technological advancements in the marketing landscape especially on the internet, companies are now able to target individuals better based in their preferences and patterns of trade.
Search engines and websites for instance are able to save our data as we browse and so are able to infer what products we might be looking for and then recommend a place to get it. Companies are capitilizing on this to engage in more narrow methods of advertising that appeal to the individual consumer as opposed to broadcasting on a large scale and hoping that those who like the message will respond.
Miller Corporation has a premium bond making semiannual payments. The bond has a coupon rate of 8 percent, a YTM of 6 percent, and 18 years to maturity. The Modigliani Company has a discount bond making semiannual payments. This bond has a coupon rate of 6 percent, a YTM of 8 percent, and also has 18 years to maturity. Both bonds have a par value of $1,000. a. What is the price of each bond today
Answer:
Company Price of Bond
Miller Corporation $1,218.32
Modigliani Company $810.92
Explanation:
The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond Miller Corporation can be worked out as follows:
Step 1
PV of interest payments
Semi annul interest payment = 8%× 1000× 1/2 =40
Semi-annual yield = 6%/2 = 3% per six months
Total period to maturity (in months) = (2 × 18) = 36 periods
PV of interest =
40× (1- (1+0.03^(-36)/0.03)= 873.29
Step 2
PV of Redemption Value
= 1,000 × (1.03)^(-36) =345.03
Step 3:
Price of bond
= 873.29 + 345.03= $1,218.32
Modigliani Company
Step 1
PV of interest payments
Semi annul interest payment = 6%× 1000× 1/2 =30
Semi-annual yield = 8%/2 = 4% per six months
Total period to maturity (in months) = (2 × 18) = 36 periods
PV of interest =
30× (1- (1+0.04^(-36)/0.04)= 567.25
Step 2
PV of Redemption Value
= 1,000 × (1.03)^(-36) =243.66
Step 3:
Price of bond
= 567.2484586 + 243.66 = $810.92
Price of bond = $810.92
Publisher problem: Full court press inc buts slick paper in 1525 pound rolls for textbook paper. Annual demand is 1800 rolls. The cost per roll is $900, and the annual holding cost is 15 percent of the cost. The ordering costs are $225 per order. What is the time between orders in WEEKS in a 52 week year?
a. 0.033.
b. 2.638.
c. 2.253.
d. 1.167.
e. 0.167.
Answer:
C. 2.253
Explanation:
The time between orders in WEEKS in a 52 week year can be calculated as follows
DATA
Annual Demand (D) = 1800 rolls
Cost per roll = $900
Annual holding cost (Ch) = 15% of $900 = $135
Ordering cost (Co) =$225
Solution
EOQ = [tex]\sqrt{\frac{2CoD}{Ch} }[/tex]
EOQ = [tex]\sqrt{\frac{2x225x1800}{135} }[/tex]
EOQ = 78 rolls
Number of orders = 1800/78
Number of orders = 23.077
The time between orders = 52/23.077
The time between orders = 2.253
Ticketsales, Inc., receives $5,000,000 cash in advance ticket sales for a four-date tour of Bon Jovi. Record the advance ticket sales on October 31. Record the revenue earned for the first concert date of November 5, assuming it represents one-fourth of the advance ticket sales.
Answer:
31-Oct
Dr Cash $5,000,000
Cr To Unearned Ticket revenue $5,000,000
05-Nov
Dr Unearned Ticket revenue $1,250,000
Cr To Ticket Revenue $1,250,000
Explanation:
Preparation of the Journal entry to record the advance ticket sales on October 31.
Since we were told that the company receives the amount of $5,000,000 cash in advance ticket sales this means that the transaction will be recorded as:
31-Oct
Dr Cash $5,000,000
Cr To Unearned Ticket revenue $5,000,000
Preparation of the Journal entry record the revenue earned for the first concert date of November 5
Since we were told that the company receives $5,000,000 cash in advance ticket sales for a four-date tour of Bon Jovi this means that the transaction will be recorded as:
05-Nov
Dr Unearned Ticket revenue $1,250,000 ($5,000,000*1/4)
Cr To Ticket Revenue $1,250,000
A hotel guest goes down to the snack shop in the hotel lobby and purchases a candy bar and a soda. The guest has purchased what from the snack shop?
Answer:
Candy Bar
Explanation:
The hotels have snack shops available in the lobby so that when guests want to eat something light they can have it right from the lobby snack bar. The soda are usually available at the soda shops which are separate than the snack shops. The guest can purchase candy bar from snack shop and he can have soda from soda shop.
A decentralized organizational structure is predicated on a belief that A. decision-making authority should be put in the hands of the people closest to and most familiar with the situation, and these people should be trained to exercise good judgment. B. a command-and-control organizational scheme is the lowest cost and best way to organize the work effort. C. top executives often lack the expertise and wisdom to decide what is the wisest and best course of action. D. the best decisions emerge from a collegial, collaborative culture where decisions are made by general consensus (at least a majority vote) on what to do and when. E. organizing into work teams, having team members elect a team leader, and having team members vote on the best way to do things greatly reduces corporate bureaucracy.
Answer:
A. decision-making authority should be put in the hands of the people closest to and most familiar with the situation, and these people should be trained to exercise good judgment.
Explanation:
A decentralized organization can be defined as one whose decision-making process is not only in the hands of top management, that is, in this type of decision making, employees of lower hierarchical levels also participate in essential company decisions, therefore the alternative best suited to the beliefs of a decentralized organizational structure is that decision-making authority should be placed in the hands of the people closest to and most familiar with the situation, and these people should be trained to exercise common sense.
Some factors that contribute to this type of structure are the organizational culture, the work environment, the organizational strategy, etc.
Some of the advantages of decentralization are the reduction of time for an important decision and the engagement of the team of employees to assist in the decision-making process, which consists of greater motivation and job satisfaction
The manager of a crew that installs carpeting has tracked the crew's output over the past several weeks, obtaining these figures:
Answer and Explanation:
a. The computation of labor productivity for each of the weeks is shown below:-
Week Crew size Yards installed labor productivity
1 4 97 24.25
2 3 71 23.67
3 4 98 24.5
4 2 54 27
5 3 63 21
6 2 52 26
Therefore for computing the labor productivity for each week we simply divide the yards installed by crew size.
b. Perhaps even-sized crews are better than uncommon sizes and a crew of 2 seems to be performing best among the others
Assume the required reserve ratio is 12 percent and that the commercial banking system has $110 million in excess reserves. The maximum amount of money which the banking system could create is: (round to the nearest number) g
Answer: $917 million
Explanation:
From the question, we are informed that the required reserve ratio is 12 percent and that the commercial banking system has $110 million in excess reserves.
Based on the above analysis, the maximum amount of money which the banking system could create will be:
= $110,000,000/12%
= $110,000,000/0.12
= $ 917,000,000
= $917 million
Whst is the basic purpose of any communication? A. To make a point B.To provide information C. To establish a story D. To convey a story
Answer:
B to provide information
Explanation: when making a point your trying to express something
Answer:
all of the above. communication is a way to express feelings
Explanation:
The following account balances were extracted from the accounting records of Thomas Corporation at the end of the year: Accounts Receivable Allowance for Uncollectible Accounts (Credit) UncollectibleAccount Expense What is the net realizable value of the accounts receivable?
Complete Questions:
The following account balances were extracted from the accounting records of Thomas Corporation at the end of the year: Accounts Receivable $1,105,000. Allowance for uncollectible accounts (credit) $37,000. Uncollectible-Account Expense $64,000 . What is the net realizable value of the accounts receivable?
A. $1,142,000
B. $1,169,000
C. $1,105, 000
D. $1,068,000
Explain
Answer:
Thomas Corporation
D. $1,068,000
Explanation:
1. Data and Calculations:
Accounts Receivable $1,105,000
less Allowance for uncollectible accounts (credit) $37,000
Net realizable value = $1,068,000
2. Thomas Corporation's Accounts Receivable balance is a debit balance and the Allowance for uncollectible accounts is a credit balance. Since the Allowance for uncollectible accounts is a contra account to the Accounts Receivable, when the two are netted, the balance is the net realizable value of the Accounts Receivable.
3. Thomas cannot include the Uncollectible-Account Expense of $64,000
in the computation of the net realizable value since it has been charged and closed to the income summary and as a temporary account, it cannot be treated as other permanent accounts.
Security F has an expected return of 11.6 percent and a standard deviation of 44.6 percent per year. Security G has an expected return of 16.6 percent and a standard deviation of 63.6 percent per year. a. What is the expected return on a portfolio composed of 24 percent of Security F and 76 percent of Security G? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return 15.40 15.40 Correct % b. If the correlation between the returns of Security F and Security G is .19, what is the standard deviation of the portfolio described in part (a)? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation 51.45 51.45 Correct %
Answer:
A.Expected return on a portfolio = 15.40%
B.Standard deviation of the portfolio=51.45%
Explanation:
A.Calculation for the expected return on a portfolio
Using this formula
Expected return on a portfolio = Weight of Security F × Expected return of Security F+ Weight of Security G × Expected return of Security G
Let plug in the formula
Expected return on a portfolio = 24%×11.60 + 76%×16.60
Expected return on a portfolio =2.784+12.616
Expected return on a portfolio = 15.40%
Therefore the Expected return will be 15.40%
b. Calculation for the standard deviation of the portfolio described in part (a)
Using this formula
Standard deviation of the portfolio = (Weight of Security F^2×Standard Deviation of Security F^2 + Weight of Security G^2 × Standard Deviation of Security G^2 + 2×Weight of Security F×Weight of Security G×Standard Deviation of Security F×Standatd Deviation of Security G*correlation)^(1/2)
Let plug in the formula
Standard deviation of the portfolio = (24%^2×44.60%^2 + 76%^2×63.60%^2 + 2×24%×76%×44.60%×63.60%×0.19)^(1/2)
Standard deviation of the portfolio = (0.0576×0.198916+0.5776×0.404496+0.0196607)^(1/2)
Standard deviation of the portfolio =
(0.0114575+0.2336368+0.0196607)^(1/2)
Standard deviation of the portfolio=(0.264755)^(1/2)
Standard deviation of the portfolio=0.5145×100
Standard deviation of the portfolio=51.45%
Therefore Standard deviation of the portfolio will be 51.45%
NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.33 a share. The following dividends will be $.38, $.53, and $.83 a share annually for the following three years, respectively. After that, dividends are projected to increase by 2.6 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 9 percent?
Answer:
$11.05
Explanation:
Calculation for how much are you willing to pay today to buy one share of this stock
First step is to find the value after year 4
Using this formula
Value after year 4=(D4*Growth rate)/(Required rate-Growth rate)
Let plug in the formula
Value after year 4=(0.83×1.026)/(0.09-0.026)
Value after year 4=0.85158/0.064
Value after year 4=13.3058375
Second step is to calculate for the current value
Using this formula
Current value=Future dividend and value×Present value of discounting factor(rate percentage ,time period)
Let plug in the formula
Current value=0.33/1.09+0.38/1.09^2+0.53/1.09^3+0.83/1.09^4+13.3058375/1.09^4
Current value=0.30275+0.31983+0.40925+0.58799+9.42619
Current value=$11.05
Therefore How much you are willing to pay today to buy one share of this stock if your desired rate of return is 9 percent will be $11.05
You own a house that you rent for $1,525 per month. The maintenance expenses on the house average $285 per month. The house cost $236,000 when you purchased it 4 years ago. A recent appraisal on the house valued it at $258,000. If you sell the house you will incur $20,640 in real estate fees. The annual property taxes are $3,350. You are deciding whether to sell the house or convert it for your own use as a professional office. What value should you place on this house when analyzing the option of using it as a professional office
Answer:
$237,360
Explanation:
you must first determine the market value of your house = appraisal value - sales expenses = $258,000 - $20,640 = $237,360
the market value of the house is your opportunity cost of using the house as an office.
opportunity costs are the extra costs or benefits lost resulting from choosing one investment or activity over another alternative.
Refer to the following table to answer the following questions:
Checkable deposits $400,000,000
Currency $340,000,000
Traveler's checks $4,000,000
Money market mutual funds $50,000,000
Small time deposits $6,000,000
Savings deposits $850,000,000
What is the value of M1?
a. $404,000,000
b. $740,000,000
c. $906,000,000
d. $744,000,000
e. $1,650,000,000
What is the value of M2 that is not part of M1?
a. $404,000,000
b, $740,000,000
c. $906,000,000
d. $744,000,000
e. $1,650,000,000
If Harold were to deposit cash into his savings account, which of the following changes would take place?
a. M1 would remain the same.
b. M2 would remain the same.
c. M2 would decrease.
d. M1 would increase.
e. M2 would increase
The local bank has decided to double the number of its local branch offices. How will this affect the bank's balance sheet?
a. Total assets will increase.
b. Total liabilities will increase.
c. Total liabilities will decrease.
d. Total assets will decrease.
e. Total assets and total liabilities will both remain unchanged.
Loans and deposits within a bank are:______
a. liabilities and assets, respectively, on a bank's balance sheet.
b. assets and liabilities, respectively, on a bank's balance sheet.
c. are not found on a bank's balance sheet
d. both assets.
e. both liabilities
Answer:
Following are the answer to this question:
In question first, the answer is "Option d".
In question second, the answer is "Option e".
In question third, the answer is "Option e".
In question fourth, the answer is "Option e ".
In question fifth, the answer is "Option b".
Explanation:
Given values:
[tex]Checkable \ deposits = \$ 400,000,000\\Currency = \$ 340,000,000\\Traveler's \ checks = \$ 4,000,000\\Money \ market \ mutual \ funds = \$ 50,000,000\\Small \ time \ deposits = \$ 6,000,000\\Savings \ deposits = \$ 850,000,000\\[/tex]
Solution:
[tex]\text{M1= currency +checkable deposits + travellers check}[/tex]= $400000000+$340000000+$4000000
= $744000000
[tex]\bold{\text{M2 = M1 +money market mutual funds + small time deposit+ saving deposit}}[/tex]
= $744000000 + $50000000+$6000000+$850000000
= $1,650,000,000
Saving account deposits, which means its amount of money increased throughout the M2 portion regular savings account. So M2 will grow Its increase in the number of employees may not impact the balance sheet with banks, because each bank maintains its entire cash flow For banks, loans are investments if they're lending money as a bank to people. So, it's on income statement asset sideBoston Recyclers Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for 2019:
1. Retained Earnings, beginning balance, $139,000
2. Retained Earnings, ending balance, $120,000
3. There is a net loss of $15,000 for the year.
What is the amount of dividends declared during the year?
Answer:
$4,000
Explanation:
We will use the formulae below to get the amount of dividend the declared during the year
Ending retained earnings = Beginning retained earnings - Net loss - Dividends declared
$120,000 = $139,000 - $15,000 - Dividends declared
$120,000 = $124,000 - Dividend declared
Dividend declared = $124,000 - $120,000
Dividend declared = $4,000
Which of the following items will not appear in the operating section of patnode's 2005 indirect method cash flow statement?
A. Deduct: increase in accounts receivable $3,000.
B. Add: decrease in accounts payable $1,000.
C. Add: increase in taxes payable $2,400.
D. Add: decrease inventories $6,000.
Answer:
B. Add: decrease in accounts payable $1,000.
Explanation:
Operating Cash Flow (OCF) can be described as the cash that comes from the normal operating activities a company during a particular period.
The operating cash flow section starts with net income and other items that appear under it include change in current assets and current liabilities.
The following are 4 rules that employed to determine the nature of an adjustment to a current asset or current liability under the operating cash flow section of the cash flow statement:
Rule 1: When a current asset increases, you deduct.
Rule 2: But when a current asset reduces, you add.
Rule 3: When a current a liability increases, you add.
Rule 4: But when a current liability reduces, you deduct.
The 4 rules are now applied to this question as follows:
A. Deduct: increase in accounts receivable $3,000.
Account receivable is a current asset and there is an increase in it. Based on Rule 1, we deduct. Therefore, what is done is correct and will appear in the operating section of the cash flow.
B. Add: decrease in accounts payable $1,000.
Accounts payable is a current liability and there is a decrease in it. Based on Rule 4, we should deduct. Therefore, what is done is wrong and will not appear in the operating section of the cash flow.
C. Add: increase in taxes payable $2,400.
Taxes payable is a current liability and there is an increase in it. Based on Rule 3 above, we add. Therefore, what is done for this is correct and will appear in the operating section of the cash flow.
D. Add: decrease inventories $6,000.
Inventory is a current asset and there is a decrease in it. Based on Rule 2 above, we add. Therefore, what is done is correct and will appear in the operating section of the cash flow.
Conclusion
Based on the analysis above, only option B is wrong and will not appear in the the operating section of the cash flow. Therefore, the answer is B. Add: decrease in accounts payable $1,000.
Hybrid cars are touted as a "green" alternative; however,the financial aspects of hybrid ownership are not as clear. Consider the 2018 Edsel 550h, which had a list price of $5200 (including tax consequences) more than the comparable Edsel550. Additionally, the annual ownership costs ( other than fuel) for the hybrid were expected to be $330 more than the traditional sedan. The EPA mileage estimates was 27 mpg for the hybris and 19mpg for the hybrid and 19 mpg for the traditional sedan.
A. Assume that gasoline costs $3.60 per gallon and you plan to keep either car for six years. How many miles per year would you need to drive to make the decision to buy the hybrid worthwhile, ignoring the time value of money?
B. If you drive 15,500 miles per year and keep either car for six years, what price per gallon would make the decision to buy the hybrid worthwhile, ignoring the time value of money?
C. Gasoline costs $3.60 per gallon and you plan to keep either car for six years. How many miles per year would you need to drive to make the decision to buy the hybrid worthwhile? Assume the appropriate interest rate is 10 percent and all cash flows occur at the end of the year.
D. If you drive 15,500 miles per year and keep either car for six years, what price per gallon would make the decision to buy the hybrid worthwhile? Assume the appropriate interest rate is 10 percent and all cash flows occur at the end of the year.
Answer:
a)
the hybrid model initially costs $5,200 more than the regular model, plus you have another $330 in extra ownership costs per year. If you plan to own the hybrid car for 6 years, then you must recoup $5,200 / 6 = $866.67 + $330 = $1,196.67 per year.
the cost of driving 1 mile with the hybrid car = $3.60 / 27 = $0.1333
the cost of driving 1 mile with the regular model = $3.60 / 19 = $0.1895
you will save = $0.0562 per mile driven
you would need to drive $1,196.67 / $0.0562 = 21,293 miles per year to make the decision worth it
b)
if you only drive 15,500 miles per year, then you would need to save $0.0772 per mile
that would only result if gasoline's price was:
x/19 - x/27 = 0.0772
0.0526x - 0.037x = 0.0772
0.0156x = 0.0772
x = 0.0772 / 0.0156 = $4.95 per gallon
c)
you must first determine the present value of all additional expenses related to purchasing a hybrid:
year cash flow
0 -5,200
1 -330
2 -330
3 -330
4 -330
5 -330
6 -330
Using a financial calculator, the PV = -$6,637.24
now we must use an annuity formula to determine the annual savings required using a 10% discount rate and 6 periods:
annual savings = $6,637.24 / 4.3553 (PV annuity factor, 10%, 6 periods) = $1,523.95
so you must save $1,523.95 per year and that is equivalent to $1,523.95 / $0.0562 = 27,116.47 = 27,116 miles
d)
you also need to save $1,523.95, but you only drive 15,500 miles, so the savings per mile = $0.0983
x/19 - x/27 = 0.0983
0.0526x - 0.037x = 0.0983
0.0156x = 0.0983
x = 0.0983 / 0.0156 = $6.30 per gallon
Using the section in AS 2110 called "Obtaining an Understanding of the Company and its Environment" as a guide, describe three major deficiencies of Garcia and Foster’s documentation on page 45. 2. Did Garcia and Foster compute materiality on page 44 correctly? According to AS 2105, what is the difference between planning materiality and tolerable misstatement?
Requirement 1:
Well I wasn't able to find the question, but I will list here almost all the possible documentation deficiencies that will play important part in planning audit.
The documentation deficiencies are mostly because of control risks and inherent risk and these are addressed below:
The control risk occurs when the internal control fails to bring efficiency in recording of facts and this practice results in material misstatement either due to error or fraud. So if the internal control system of Garcia and Foster is not well enough that it doesn't bring fairness in the transaction recordings then the internal control system would be high.
Inherent risk is the risk of material misstatement that is posed by an error or omission in recording of financial facts that would result in material misstatement and this is not because of failure of internal control system designed. Inherent risk occurs when a high degree of judgment is required for estimations, solving complex transactions like recording of financial instruments, etc.
Kindly have understanding of these so that you be able to identify the deficiencies of Garcia and Foster.
Requirement 2:
The setting of materiality is dependent on two things. These are professional judgement and the experience of the auditor. Following are some methods of calculating materiality level:
5% of Income before tax1% of sales revenue0.5% of total assets1% of shareholder's equityI think this will help you in deciding whether the materiality level set was correct or not.
Requirement 3:
The planning materiality is the materiality level set at the planning phase of audit. The materiality level is determined by analyzing the draft of financial statement presented by the management.
Whereas on the other hand, tolerable misstatement is the misstatement in the line item of financial statement but this misstatement doesn't impact the fair presentation of the financial statement. If the potential risks associated with the company which might include the internal control risk, inherent risk, audit risk, etc, are higher then the tolerable misstatement might be 10% of the materiality level set. This means if the associated risk with the company is high then the tolerable materiality level set would be lower so that the evidence gathered would be sufficient enough to form a right opinion about the truth and fairness of the financial statement. Furthermore, individually though the tolerable misstatement is not a material misstatement but the aggregate misstatement with other tolerable misstatement might surpass the materiality level. Thus setting tolerable level is very useful in the planning phase.
You need a 20-year, fixed-rate mortgage to buy a new home for $190,000. Your mortgage bank will lend you the money at a 8.1 percent APR for this 240-month loan. However, you can afford monthly payments of only $950, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $950
Answer:
$388,301, the loan's principal balance increases because the monthly payment doesn't even cover interest expense
Explanation:
In order for you to pay the debt completely in 20 years, you would need to pay $1,601.08 per month. But since you can only afford to pay $950 per month, the remaining balance will be $388,301.
I prepared an amortization schedule in an excel spreadsheet
Rodriguez Corporation issues 10,000 shares of its common stock for $211,600 cash on February 20. Prepare journal entries to record this event under each of the following separate situations.
1. The stock has a $18 par value.
2. The stock has neither par nor stated value.
3. The stock has a $9 stated value.
Record the issue of 10,000 shares of $8 par value common stock for $122,200 cash.
Answer: Please find answers in the explanation column
Explanation:
1.Journal To record issue of common stock at $18 par value
Date Accounts & explanation Debit Credit
Feb 20 Cash $211,600
Common stock at $18 par value (10000 X 18) $180,000
Paid in capital in excess of par value-common stock $31,600
( $211,600 - $180,000 )
2. Journal entry To record issue of common stock at neither par nor stated value.
Date Accounts & explanation Debit Credit
Feb 20 Cash $211, 600
Common stock $211, 600
3. Journal To record issue of common stock at $9 stated value
Date Accounts & explanation Debit Credit
Feb 20 Cash $211, 600
Common stock (10,000 X 9) $90,000
Paid in capital in excess of stated value-common stock $121,600
( $211,600 - $90,000 )
4 . Journal To record issue of common stock at $8 par value
Date Accounts & explanation Debit Credit
Feb 20 Cash $211, 600
Common stock (10,000 X 8) $80,000
Paid in capital in excess of par value-common stock $131,600
( $211,600 - $80,000 )
The difference between a perfectly competitive firm and a monopolistically competitive firm is that a monopolistically competitive firm faces a
Answer:
Downward sloping MR curve
Explanation:
A monopolistically firm faces a downward-sloping marginal revenue curve while a perfectly competitive has the horizontal MR curve that is parallel to the x-axis. Moreover, the price is determined by the market forces in the industry for a perfectly competitive firm. But in the case of monopolistically competitive firm, the price is determined by the seller or monopolist.
In the top left-hand corner of the screen, under the question number, it says “Part 1 of 2”. This indicates that:
Answer:
This indicates that:
the question continues on the next screen or page.
Explanation:
"Part 1 of 2" is an indication that what the reader or viewer is currently viewing is the first page or screen of the indicated information. This fact implies that there a continuation of the question or information on the next screen or page. If the reader or viewer stops on the part 1 without looking at the part 2, he or she will be omitting some issues, thus, leaving them unattended to.
Waterway Industries reported sales of $2000000 last year (100000 units at $20 each), when the break-even point was 63000 units. Waterway’s margin of safety ratio is
Answer:
Margin Of Safety Ratio is 37%
Explanation:
As we all know that:
Margin Of Safety Ratio = (Actual Sales Units - Breakeven Point) / Actual Sales
Here
Actual Sales is $2,000,000 and selling price is $20, which means that total 100,000 units were sold.
Breakeven Point is 63000 Units
By putting values, we have:
Margin Of Safety Ratio = (100,000 Units - 63,000 Units) / 100,000
Margin Of Safety Ratio = 0.37 which is 37%
Following a peso appreciation relative to the dollar, which of the following results is expected to occur?
a. U.S. consumers would benefit, and Mexican producers would benefit.
b. U.S. consumers would be hurt, and Mexican producers would benefit.
c. U.S. consumers would benefit, and Mexican producers would be hurt.
d. U.S. consumers would be hurt, and Mexican producers would be hurt.
Answer:
B
Explanation:
A currency appreciates when its value increases.
For example if $1 was exchanged for 50 pesos. After appreciation of the pesos, $1 would buy $25 pesos.
So more $2 would be needed to buy 50 peso after the appreciation when before the appreciation $1 was buying 50 pesos.
As a result Mexican goods would become more expensive to US consumers and the revenue earned by Mexican producers would increase
"A customer has an existing short margin account and wants to write five covered puts against 500 shares of stock that are short in the account. The margin requirement to write the puts is:"
Answer: 0
Explanation:
From the question, we are informed that a customer has an existing short margin account and wants to write five covered puts against 500 shares of stock that are short in the account.
Based on the above scenario, the margin requirement to write the puts will be zero. This is due to the fact that there is no risk that is attached to the short calls.
Risingstar Corporation currently has shares outstanding of par value common stock. The stock was originally issued for per share. On March 15, the board of directors declares a % stock dividend when the stock is selling for per share. Which of the following is the correct journal entry to record this transaction? (Do not round intermediate calculations.)
a. debit Paid-In Capital in Excess of Par-Common $368,940 and credit Retained Earnings $368,940
b. debit Stock Dividends $368,940, credit Common Stock Dividend Distributable $50,310 and credit Paid-In Capital in Excess of Par—Common $318,630
c. debit Stock Dividends $368,940 and credit Common Stock Dividend Distributable $368,940
d. debit Common Stock Dividend Distributable $50,310, debit Paid-In Capital in Excess of Par—Common for $318,630 and credit Retained Earnings $368,940
Answer:
b. debit Stock Dividends $368,940, credit Common Stock Dividend Distributable $50,310 and credit Paid-In Capital in Excess of Par—Common $318,630
Explanation:
the numbers are missing in the question:
129,000 shares at $3 par value sold at $1413% stock dividend when price is $22 per stocksince this is a small stock dividend, we must record the transaction using the market value:
total stock dividend = 129,000 x 13% = 16,770 stocks
total transaction = 16,770 x $22 = 368,940
Dr Stock dividends 368,940
Cr Common stock dividends distributable 50,310
Cr Additional paid in capital: common stock 318,630
Common stock dividends distributable = 16,770 x $3 = $50,310
additional paid in capital = $368,940 - $50,310 = $318,630
A minimum wage that is set above a market's equilibrium wage will result in an excess:________.
a. demand for labor, that is, unemployment.
b. supply of labor, that is, a shortage of workers.
c. demand for labor, that is, a shortage of workers.
d. supply of labor, that is, unemployment.
Answer:
D
Explanation:
A minimum wage set above market's equilibrium wage increases the cost of hiring labour. so the demand of labour falls.
A minimum wage that is set above a market's equilibrium wage increases the income that would be earned by labour, so the supply of labour increases.
Because the increased supply for labour would not be matched with a corresponding increase in demand, there would be unemployment
A coupon bond that pays semiannual interest is reported in the Wall Street Journal as having an ask price of 116% of its $1,000 par value. If the last interest payment was made 3 months ago and the coupon rate is 5.90%, the invoice price of the bond will be _________. Multiple Choice $1,160.00 $1,189.50 $1,174.75 $1,130.50\
Answer:
$1,174.75
Explanation:
The computation of the invoice price of the bond is shown below:
As we know that
Invoice Price of Bond = Ask Price of Bond + Accrued interest
where,
Ask Price is
= $1,000 × 116%
= $1,160
Interest accrued for 3 months is
= $1,000 × 5.90% × 3 months ÷ 12 months
= $14.75
So,
Invoice Price of Bond is
= $1,160.00 + $14.75
= $1,174.75
_______________________ propose(s) giving an industry a short-term indirect subsidy to support it until such time that it matures and turns into a vibrant, healthy industry.
a. Price- and profit-maintenance policies
b. Protection against dumping
c. The infant industry argument
d. Self-sufficiency policies
Answer:
c. The infant industry argument
Explanation:
Infant industry argument is a mechanism for trade protectionism. It argues that a new industry does not have the economies of scale enjoyed by older competitors.
So they will need to be protected and funded till they develop and match up with economies of scale of other competitors.
Infant industries need to be supported as they are not able compete favourably with other companies from abroad.
Their protection will lead to a more vibrant economy where multiple players compete favourably.
Demand for a product is 12,000 units per year. Every time an order is made, the company must pay $15.00 per order. The cost to hold an order in inventory is $2.00 per unit per year. Calculate the cost if the company orders 3,000 units each time.
Answer:
Total cost is $24060
Explanation:
Total demand per year = 12000 units
Size of one order = 3000 units
Total number of orders = 12000 / 3000 = 4
Per order cost = $15
Per unit cost = $2
Below is the calculation to find the total cost.
Total cost = Number of orders × Per order cost + Total demand per year × Per unit cost
Now insert the values.
Total cost = 4 ×15 + 12000 × 2
Total cost = $24060