Answer: Net loss of $10,000
Explanation:
From the question, we are informed that the income summary account has expenses of $65,000 and revenues of $55,000.
In this scenario, since the expense is more than the revenue, it means that there will be a net loss. Therefore, the net loss will be calculated as:
= $65,000 - $55,000
= $10,000
There's a net loss of $10,000.
A market where prices reflect all available public information is _____.
a. strong form efficient
b. semistrong efficient
c. not efficient
d. weak form efficient
Answer:
The correct answer is:
b.) semistrong form efficient
Explanation:
In financial economics, the efficient-market hypothesis is a hypothesis that states that asset prices reflect all available information. The concept theorizes that the market is generally efficient, because it holds that a market cannot be beaten, because it incorporates all the important determination information into current share prices.
There are three versions of an efficient market hypothesis:
1. strong form efficient: This version states that all information - both information available to the public, and those not publicly known - is completely accounted for in stock prices, and there is no information type that can give an investor an advantage in the stock market.
2. semi-strong efficient: This version believes that only information readily available to the public can be used to factor prices and that changes in prices to new equilibrium levels are a product of this public information.
3. weak form efficient: This version assumes that current stock prices reflect all security market information. It contends that past price and volume data have no relationship to the direction or level of security prices. It concludes that excess returns cannot be achieved using technical analysis.
intext:"On December 31, there were 26 units remaining in ending inventory. Using the periodic LIFO inventory costing method, what is the value of cost of goods sold"
Answer:
$5,400
Explanation:
Calculation for the value of cost of goods sold
Calculation of Cost of goods sold
Units of sales × Purchase = Cost of goods sold
6 units ×$ 120.00 = $720
5 units ×$ 125.00 = $ 625
9 units×$ 130.00 =$ 1,170
11 units ×$ 135.00 =$ 1,485
10 units × $ 140.00 =$1,400
TOTAL $5,400
Therefore the value of cost of goods sold will be $5,400
Consider the following income statement: Sales $ 1,040,136 Costs 676,704 Depreciation 153,900 Taxes 22 % Calculate the EBIT.
Answer:
$209,532
Explanation:
EBIT is calculated as seen below;
EBIT = Sales - costs - depreciation
Sales. $1,040,136
Less:costs ($676,704)
Less:depreciation ($153,900)
EBIT. $209,532
Maxwell Inc.'s stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -28% return. What is the firm's expected rate of return?
a. 9.41%.
b. 9.65%.
c. 9.90%.
d. 10.15%.
Answer:
c. firm's expected rate of return = 9.90%
Explanation:
The computation of the firm expected rate of return is shown below:
= Chance of producing × return + Chance of producing × return + Chance of producing × return
= 50% × 25% + 30% × 10% + 20% × -28%
= 0.125 + 0.03 - 0.056
= 9.90%
We simply applied the above formula so that the firm expected rate of return could come and the same is to be considered
Which of the following did management at Zappos do to reduce the level of formalization in their organization?
A. They avoided asking their customer service reps in call centers to follow a detailed script.
B. They increased their reliance on drop-shipment orders.
C. They established top-down management as their primary strategy.
D. They put an end to the practice that enabled employees to horizontally rotate to different jobs once they had mastered a particular job.
Answer:
A. They avoided asking their customer service reps in call centres to follow a detailed script.
Explanation:
Formalisation refers to the manner in which the company follows extra depth of procedures and takes extra unnecessary care of the customers, or even in the internal procedures of organisation also.
For the customers perspective, we have:
As asking their customers for service reps again and again will make the entire process formalised, and leaving it on the discretion of customers that when they want to avail the service makes it less formal and comfortable for customers.
Thus, avoiding the detailed script with some unnecessary details every time and following up again and again the function becomes less formal and comfortable.
Final Answer:
Option A
Determine whether each of the following examples would be included in Gross Domestic Product (GDP). a. When Judy went to the grocery store yesterday, she bought three pounds of potatoes. Judy's purchase of potatoes (Click to select) . b. Ford Motor Company buys four tires to put on a new Ford Mustang. The purchase of the tires (Click to select) . c. The U.S. Air Force purchases two new fighter jets from Boeing. The purchase of the two fighter jets (Click to select) . d. When Joey had his birthday last week, his grandmother sent him a $100 bill that he could spend.
Answer:
Items included in GDP
Judy's purchase of potatoes
The purchase of the two fighter jets
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
Judy's purchase would be included as part of consumption spending by households on non durable items.
The purchase of the tires would not be included in the calculation of GDP because the tires are intermediate goods. Only final goods are included in the purchase of GDP
The purchase of the two fighter jets would be included in GDP as part of government spending
the $100 gift would not be included in the calculation of GDP
Why might a purely competitive industry advertise, even if individual firms do not? Choose one
A. An industry cannot advertise because it is not an actual business.
B. An industry would never advertise in a purely competitive market.
C. An industry can advertise to promote its products without shifting the average total cost curve for individual firms.
D. The industry can selectively promote firms and force some out of business.
E. The industry hopes to boost overall demand for the substitute goods.
Answer:
B. An industry would never advertise in a purely competitive market.
Explanation:
A purely competitive market is one where the products being sold are nearly the same, that is they are standardised.
It is also called perfect competition.
Sellers are unable to differentiate their products from others. So there is no point advertising in this type of market because this only increases marginal cost of the firms.
Advertising effort for standardised products will have little effect on consumer choice.
In this type of market the price is determined by what the buyer is willing to pay.
The purely competitive industry advertise, even if individual firms do not is because of
B. An industry would never advertise in a purely competitive market.
The following information regarding the purely competitive market is:
It is the market where the products are sold are of similar nature. It increase the marginal cost. It is also known as the perfect competition. Since the products are homogeneous so advertising is not needed.Learn more: brainly.com/question/17429689
Courier Logistics Corp. will issue $2,400,000 in 8-year bonds that pay 5% annually. The market rate for bonds of similar riskiness and maturity is 4%. How much cash will Courier Logistics Corp. receive from this bond issuance?
a. $2,529,241.
b. $2,374,124.
c. $2,561,585.
d. $2,400,000.
Answer:
Courier Logistics Corp will receive c. $2,561,585 from this bond issuance
Explanation:
Note that the Yield to Maturity is less than the Coupon Rate, therefore the bond is trading at a Premium (price will be greater than the par value)
The price of the bond, PV is calculated as follows :
PMT = $2,400,000 × 5% = $120,000
P/YR = 1
N = 8
FV = $2,400,000
YTM = 4%
PV= ?
Using a Financial Calculator, the price of the bond, PV is $2,561,585.87 or $2,561,585.
If a cost is a common cost of the segments on a segmented income statement, the cost should:_________.
a. not be allocated to the segments.
b. be excluded from the income statement.
c. be treated as a product cost rather than as a period cost.
d. be allocated to the segments on the basis of segment sales.
Answer:
the correct answer is
If a cost is a common cost of the segments on a segmented income statement, the costshould:A) be allocated to the segments on the basis of segment sales.
Explanation:
hope this helps u!!!
When you want to save time recording progress and don't mind slightly less accuracy, which progress reporting approach would you choose?
The complete question reads;
When you want to save time recording progress and don't mind slightly less accuracy, which progress reporting approach would you choose?
a. tracking work and remaining work at the task level
b. tracking % complete at the task level
c. tracking work at the assignment level
d. tracking % complete at the assignment level
Answer:
d. tracking % complete at the assignment level
Explanation:
Remember, tracking the percent of completion of the assignment level would be indicating an overview of the entire assignment which may be slightly less accurate compared to the other listed options.
Thus, to save time recording progress this is the best viable option.
Suppose that Airstream and Crossroads are the sole producers of a fuel-efficent recreational vehicle. The two firms currently charge the same price for their products. If neither firm reduces the price of its fuel-efficent recreational vehicle, each firm earns $30 million in profit. If both firms reduce their prices, then each firm will earn $10 million in profit. If one firm reduces its price and the other does not, then the firm that reduces price will earn a profit of $60 million while the other firm will earn a profit of $2 million. Assuming that collusion is not a possibility, the Nash equilibrium occurs when:_________.
A. both firms will reduce their price.
B. Crossroads will reduce its price and Airstream will maintain its current price.
C. Airstream will reduce its price and Crossroads will maintain its current price
D. both firms will maintain their current price.
Answer:
A. both firms will reduce their price.
Explanation:
Airstream
not change price lower price
$30 / $60 /
not change price $30 $2
Crossroads
lower price $2 / $10 /
$60 $10
Airstream's highest payoff results from lowering its prices = $60 + $10 = $70
Crossroads highest payoff results from lowering its prices = $60 + $10 = $70
Nash equilibrium exists when both Airstream and Crossroads lower their prices.
A government bond with a coupon rate of 7% makes semiannual coupon payments on January 15 and July 15 of each year. The Wall Street Journal reports the asked price for the bond on January 30 at $1,001.25. What is the invoice price of the bond? The coupon period has 182 days.
Answer:
invoice price (dirty price) = $1,004.13
Explanation:
semi-annual coupon = $1,000 x 7% x 1/2 = $35
clean price = $1,001.25
accrued interest = (Jan. 30 - Jan. 15) x $35 x 1/182 = $2.88
invoice price (dirty price) = clean price + accrued interest = $1,001.25 + $2.88 = $1,004.13
the dirty price or invoice price of a bond includes any accrued interest that the bond may have earned in the period between the last coupon payment and the transaction date.
Report the effects for each of the following independent transactions using the financial statement effects template provided Balance Sheet Noncash Assets Earned Transaction Cash Asset + Liabilities+ Contributed Revenu Capital Capital
(a) Issue stock for $1,500 cash
(b) Purchase inventory for $750 cash
(c) Sell inventory from (b) for $3,000 on credit
(d) Record $750 for cost of inventory sold in (c)
(e) Receive $3,000 cash on receivable from (c) Totals
Answer:
since there is not enough room here, I prepared an excel spreadsheet
Explanation:
A grocery store manager must decide how to best present a limited supply of milk and cookies to its customers. Milk can be sold by itself for a profit of $1.50 per gallon. Cookies can likewise be sold at a profit of $2.50 per dozen. To increase appeal to customers, one gallon of milk and a dozen cookies can be packaged together and are then sold for a profit of $3.00 per bundle. The manager has 100 gallons of milk and 150 dozen cookies available each day. The manager has decided to stock at least 75 gallons of milk per day and demand for cookies is always 140 dozen per day. To maximize profits, how much of each product should the manager stock. Which of the following is the constraint that limits the amount of milk the store will use (both in bundles and sold separately) each day
Answer:
m + b ≤ 100 (100 gallons of milk available per day)
Explanation:
there are no options available, so I will prepare my own equations:
the profit function = 1.5m + 2.5c + 3b
where m = gallon of milk, c = dozen of cookies, b = bundle
we need to maximize profits, therefore the constraints will be:
m + b ≤ 100 (100 gallons of milk available per day) c + b ≤ 150 (150 dozen cookies available per day) m + b ≥ 75 (at least 75 gallons of milk are stocked per day) c + b = 140 (daily demand for dozens of cookies) m + c + b ≥ 0 (demand is positive)Assume the spot rate for the British pound currently is $1.5701/£. Also assume the one-year forward rate is $1.5574/£. A risk-free asset in the U.S. is currently earning 3.2 percent interest rate. If interest rate parity holds, what rate can you earn on a one-year risk-free British security? A) 2.37 percent B) 4.57 percent C) 3.67 percent D) 4.04 percent E) 4.92 percent
Answer:
D) 4.04 percent
Explanation:
Spot rate is £1 = $1.5701
Forward exchange rate after 1 year is £1 = $1.5574
Risk free rate in US = 3.2 %
Forward rate = {Spot rate * (1 + risk free rate in US)} / (1 + risk free rate in UK)
1.5574 = {1.5701 * ( 1 + 0.032)} / (1 + risk free rate in UK)
(1 + risk free rate in UK) = (1.5701 * 1.032) / 1.5574
Risk free rate in UK = (1.62034 / 1.5574) - 1
Risk free rate in UK = 1.0404 - 1
Risk free rate in UK = 0.0404
Risk free rate in UK = 4.04%
A customer purchases $100,000 of corporate bonds at 40% in a margin account. The customer must deposit:__________
A. $2,000
B. $7,000
C. $8,000
D. $20,000
Long Beach, Inc., a lessor, charges Applewood Corp., a lessee, a $10,500 nonrefundable fee to enter into a five-year operating lease. The lease is effective on January 1, 2016. It provides for monthly rental of $2,400. In Applewood's income statement for the year ended June 30, 2016, rent expense should be
Answer:
Rent expense= $30,900
Explanation:
Non-refundable fee expense for year 2016 = $10,500 / 5
Non-refundable fee expense for year 2016 = $2,100
Annual rent expenses = Monthly rental * 12 month
Annual rent expenses = $2,400 * 12
Annual rent expenses = $28,800
Rent expense for year ended June 30, 2016 = Annual rent expense + Non-refundable fee expense for the year
Rent expense = $28,800 + $2,100
Rent expense = $30,900
If customers share a concern, complaint, or question with you in person, you should remember to use verbal, nonverbal, and listening skills in conjunction with customer service.a. Trueb. False
Answer:
True.
Explanation:
True, the given statement is true because, for any business, customers are the main person for which the company makes the product. If the customer makes some complaint that means he is not happy with the service or product of your company. However, in such a case the company may lose its customers but it is the communication that can hold the customer when he complains. When a customer makes a complaint then it is a must remember all types of skills that can satisfy the customer and it could be verbal communication, nonverbal, and listening skills.
"On November 10th, a customer buys 200 shares of ABC stock at $50 per share. On November 29th of the same year, the customer sells the stock at $44. On December 15th of the same year, the customer buys ABC stock at $49. The customer's cost basis in ABC stock is:"
Answer:
$55 per share
Explanation:
Calculation for the customer's cost basis in ABC stock
Based on the information given we were told that the customer bought the stock at the amount of $50 in which he later sold at the amount of $44 making the customers to have a loss of $6 per share ($50-$44), which means the customer adjusted of the cost basis on the stock will be calculated as :
ABC stock $49 + Loss of $6 per share
=$55 per share.
Therefore The customer's cost basis in ABC stock is: $55 per share.
You’ve been given a customer complaint where a vital piece of Office 365 is not working as expected. The customer explains that the issue is causing their business a great deal of stress and is currently jeopardizing a huge sale. They’re looking to get this issue resolved immediately, how would you manage this scenario? Please provide a written response as if you were emailing the customer today.
Answer:
Dear Customer,
Re: Your complaint with Ref. No. 2233546 - Dysfunctional Office 365
The above caption refers.
We empathise with you over the stress being caused by the Dysfunctional Office 365.
Please be notified that one of our IT experts will be in touch with you shortly to attempt to remotely resolve this issue. We ask that you cooperate by providing all the necessary assistance.
You may be required to provide log on details to your Office 365 Accounts as well as the nature of your IT infrastructure such as :
Make and type of your work station;type of operating system being usednature of internet connectivity and associated infrastructure etc.We are aware that the above information is private and sensitive to your organisation and have proactively taken steps to ensure that all communication, information, are transmitted over highly secure servers with very powerful encryption technologies.
We thank you for your cooperation.
Kind regards,
When the operating activities section of the statement of cash flows is reported using the direct method, the FASB requires:__________.
a. The preparation of the statement of cash flows under the indirect method be completed and reported with the statement of cash flows prepared using the direct method.
b. A reconciliation of net income to net cash provided or used by operating activities.
c. Footnotes to the financial statements disclosing the difference between net income and the cash provided or used by financing activities.
d. The income statement to be prepared under the cash basis of accounting.
e. Noncash investing and financing activities be included in the statement of cash flows.
Answer:
b. A reconciliation of net income to net cash provided or used by operating activities.
Explanation:
FASB is an acronym for Financial Accounting Standards Board. The financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors. It was founded in 1972 but began operations fully on the 1st of July, 1973 by replacing the Accounting Principles Board (APB) and American Institute of Certified Public Accountants (AICPA).
When the operating activities section of the statement of cash flows is reported using the direct method, the FASB requires a reconciliation of net income to net cash provided or used by operating activities and it should be stated as part of the statement of cash flows or in the footnotes.
A direct method involves the use of the overall accrual-based income statement and converting them sequentially to the cash-basis.
Some examples of operating activities are cash revenue from the sales of a product, cash paid as an expense for merchandise etc.
What is the future value of $450 at an interest rate of 15 percent one year from today?
Answer:
$517.50
Explanation:
we have to use the future value formula:
future value = present value x (1 + interest rate)ⁿ
present value = $450interest rate = 15%n = 1 yearfuture value = $450 x (1 + 15%) = $450 x 1.15 = $517.50
The basic premise of finances is that the value of money changes over time, i.e. one dollar today is worth more than one dollar tomorrow. That is because the money yo have today can be invested and it can interest, therefore, it will be worth more in the future.
Before ending the meeting, John Noble informed Howie that he would be sending out an e-mail to all employees asking for suggestions as to how the jobs could be restructured to improve productivity. As Howie walked back to the production site, he shook his head, "Is Noble from a different planet"? Does he really think our workers have a clue?" Unlike Noble, Howie does not realize that:_____.
a) employees can be motivated by open communication.
b) employees seek equity.
c) employee perceptions of equity are usually underestimations.
d) employees will offer ways to simplify job tasks.
Answer:
a) employees can be motivated by open communication.
Explanation:
The answer is that Howie does not realize that employees can be motivated by open communication because by asking employees suggestions as to how jobs could be restructured to improve productivity, John Noble is trying to have a direct communication allowing employees to express their thoughts which will make them feel as part of the company and valued which will result in them feeling motivated to perform well in their job.
The other options are not right because employees won't be giving their opinions thinking on equity and ways to simplify job tasks are not the only suggestions that employees can provide.
Based upon the following data, which of the following mutually exclusive projects should you choose if your required return is 10%?
Year Investment A Investment B
0 -$150 -$150
1 80 40
2 40 50
3 40 60
4 30 55
A. Investment A with an NPV of 633%.
B. Investment B with an NPV of 6.33%.
C. Investment A with an NPV of 10.33%.
D. Investment B with an NPV of 10.33%.
E. Both projects since they have positive NPV's.
Answer:
d
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Investment A
Cash flow in year 0 = -$150
Cash flow in year 1 = $80
Cash flow in year 2 = $40
Cash flow in year 3 = $40
Cash flow in year 4 = $30
I = 10%
NPV = 6.33
Investment A
Cash flow in year 0 = -$150
Cash flow in year 1 = $40
Cash flow in year 2 = $50
Cash flow in year 3 = $60
Cash flow in year 4 = $55
I = 10%
NPV = 10.33
Project B has a higher NPV and it should be chosen
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
Suppose the Fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth will change which of the following?
a. The price level
b. The inflation rate
c. The quantity of physical capital
d. The size of the labor force
Answer: The price level and the inflation rate.
Explanation:
It should be noted that in the long run, the changes in money supply affects the nominal variables like inflation rate, exchange rate, price level and does not affect the real variables.
Therefore, when the Fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth will change the price level and the inflation rate.
In the long run the increase in the money growth will change the
The inflation rateThe answer to this question can easily be traced to the quantity theory of money.
This theory has it that if there is a doubling in the quantity of money that is available in an economy, it would also lead to a doubling in the price level in the same economy.
When the price level rises, this would also lead to a rise in the levels of inflation in the economy.
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Sholette Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $10.00 per MH. During the month, the actual total variable manufacturing overhead was $66,430 and the actual level of activity for the period was 7,300 MHs. What was the variable overhead rate variance for the month
Answer:
Variable overhead rate variance is $6,570 Favorable.
Explanation:
Variable overhead rate variance = variable overhead expenditure variance + variable overhead efficiency variance.
Note : Only data for calculation of variable overhead expenditure variance is available
Variable overhead expenditure variance =Actual activity at standard rate - Actual overheads
= ( 7,300 × $10.00) - $66,430
= $6,570 Favorable
Thus,
Variable overhead rate variance is $6,570 Favorable
"Globalization results in a greater degree of __________ across markets than would be present otherwise."
Answer:
Homogeneity
Explanation:
Globalization is the process of interaction and integration among people, companies, and governments worldwide.
What is the effect of a stock split (not effected in the form of a stock dividend) on each of the following? Retained earnings Total Paid-in capitala. no effect increaseb. no effect no effectc. increase decreased. decrease increase1. Option A2. Option B3. Option C4. Option D
Answer:
2. Option B
b. no effect no effectExplanation:
A stock split simply doubles the number of outstanding stocks and decreases by half the current price of the stocks, it doesn't change total paid in capital, nor retained earnings. Sometimes certain accounting procedures just rearrange accounts, like collecting accounts receivables increases cash, but current assets don't change. But in this case, not even that happens. The balance of retained earnings and total paid in capital are not affected by this.
What layout type is a conventional supermarket and how does it differ from a manufacturing operation using the same layout type
Answer:
Grid layout
Explanation:
In most of the supermarket store, when there is a billing section located in that the opposite end of the entry and the exit gate i.e. nearest is located. Also the products are arranged in a rack throughout the whole supermarket.
So this presentation refers to the grid layout which is easy for the customers to pick up their order and bill it at the billing section in an organized manner
In the grid layout all the products are presented on the rack while on the other hand, in the cellular layout, the products are transferred from one station to another station
The WRT Corporation makes collections on sales according to the following schedule: 30% in month of sale 60% in month following sale 5% in second month following sale 5% uncollectible The following sales have been budgeted: Sales April $ 158,000 May $ 128,000 June $ 141,000 Budgeted cash collections in June would be:
Answer:
Budgeted cash collections in June would be: $127,000
Explanation:
Calculation of the Budgeted Collections for June
In the Month of Sale ($ 141,000 × 30 %) = $42,300
In Month following Sale ($ 128,000 ×60%) = $76,800
In Second Month following sale ($ 158,000 × 5%) = $7,900
Total Budgeted Collections for June = $127,000