Answer:
Standardize
Explanation:
The 5s approach includes
1. Sort
2. Systemize
3. Set in order
4. Shine
5. Sustain
The answer to this question is standardize and it has to do with orderliness, that is the continued cleaning and maintaining by carrying out shine, sort and set in order.
When the Ideal State is higher than the Actual State, from the perspective of marketers, it is referred to as
Answer:
When the Ideal State is higher than the Actual State, from the perspective of marketers, it is referred to as Mass Damage.
Please mark me as Brainliest.g Bumblebee Company estimates that 379,500 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Variable Overhead Costs Supervision $94,440 Indirect labor $174,570 Depreciation 73,320 Indirect materials 75,900 Insurance 25,560 Repairs 53,130 Rent 21,120 Utilities 94,875 Property taxes 20,880 Lubricants 37,950 $235,320 $436,425 It is estimated that direct labor hours worked each month will range from 24,900 to 36,900 hours. During October, 24,900 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,870, Depreciation $6,110, Insurance $2,095, Rent $1,760, and Property taxes $1,740. Variable overhead costs: Indirect labor $12,544, Indirect materials, $4,500, Repairs $3,406, Utilities $6,545, and Lubricants $2,740. (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 4,000 direct labor hours over the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.)
Answer:
Explanation:
Given that :
Bumblebee Company estimates that 379,500 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year.
Fixed Overhead Costs Variable Overhead Costs
Supervision $94,440 Indirect labor $174,570
Depreciation 73,320 Indirect materials 75,900
Insurance 25,560 Repairs 53,130
Rent 21,120 Utilities 94,875
Property taxes 20,880 Lubricants 37,950
$235,320 $436,425
It is estimated that direct labor hours worked each month will range from 24,900 to 36,900 hours.
During October, 24,900 direct labor hours were worked and the following overhead costs were incurred.
Fixed overhead costs: Supervision $7,870, Depreciation $6,110, Insurance $2,095, Rent $1,760, and Property taxes $1,740.
Variable overhead costs: Indirect labor $12,544, Indirect materials, $4,500, Repairs $3,406, Utilities $6,545, and Lubricants $2,740.
The objective is to prepare a monthly manufacturing overhead flexible budget for each increment of 4,000 direct labor hours over the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.)
The monthly manufacturing overhead flexible budget can be computed as
follows:
Bumblebee Company
Packaging Department
Monthly manufacturing overhead Flexible
Budget For the year ended December 31,2017
Particulars Operating Capacity(Direct Labor Hours)
24900 28900 32900 36900
Variable Factory -
Overhead Costs :
Indirect labor 11454 13294 15134 16974
Indirect materials 4980 5780 6580 7380
Repairs 3486 4046 4606 5166
Utilities 6225 7225 8225 9225
Lubricants 2490 2890 3290 3690
Total Variable Factory-
Overhead Cost 28635 33235 37835 42435
Fixed Factory -
Overhead Cost :
Supervision 7870 7870 7870 7870
Depreciation 6110 6110 6110 6110
Insurance 2130 2130 2130 2130
Rent 1760 1760 1760 1760
Property Taxes 1740 1740 1740 1740
Total Fixed Factory -
Overhead Cost: 19610 19610 19610 19610
Total Factory -
Overhead Cost (A+B) 48245 52845 57445 62045
Tennill Incorporated has a $1,400,000 investment opportunity with the following characteristics: Sales $ 4,480,000 Contribution margin ratio 40% of sales Fixed expenses $ 1,657,600 The return on investment (ROI) for this year's investment opportunity considered alone is closest to:
Answer:
9.6%
Explanation:
Tennill incorporation has an investment of $1,400,000
Sales is $4,480,000
Fixed expenses is $1,657,600
The first step is to calculate the contribution margin ratio
= 40/100×4,480,000
= 0.4×4,480,000
= 1,792,000
The variable cost can be calculated as follows
=Sales-CM
= 4,480,000-1,792,000
= 2,688,000
Net profit = Sales-Fixed cost-Variable cost
= 4,480,000-(1,657,600+2,688,000)
= 4,480,000-4,345,600
= 134,400
Therefore the ROI can be calculated as follows
= Net profit/investment × 100
= 134,400/1,400,000 × 100
=0.096×100
= 9.6%
Hence the return on investment for this year's investment opportunity considered alone is closest to 9.6%
"A couple wants to invest for the college education of their 2 children, currently ages 1 and 3. They estimate they will need to start using the funds to pay for college in 15 years. The BEST recommendation is to invest in:"
Answer: b. 10 year treasury notes
Explanation:
All options listed are backed by the US Government so the couple will not have to worry about any of these options not paying them in time for their kids to go for college.
The best option would be the 10 year Treasury notes because the other options either mature way sooner than the 15 required years ( treasury bills mature in a year) or after the required 15 years ( 20 and 30 year treasury bonds).
When the 10 year note matures in 10 years, the proceeds if not enough, can be further invested in a 5 year note thereby ensuring that the payment for college will be received in 15 years.
Using CPM, when activity times are not known with certainty, we still can determine how long it will actually take to complete the project.A. TrueB. False
Answer: False
Explanation:
Corporate performance management (CPM) refers to the various methods including metrics, processes and systems that are used in the management of business performance.
When determining how long it will take to complete a project, CPM assumes that the Activity times estimated are known with certainty. If this is not the case then under CPM, we cannot determine how long it will actually take to complete a project.
Which one of the following statements is correct? A) The lessor is primarily concerned with returning the asset at the end of the lease term without incurring any additional charges. B) The lessor is primarily concerned about the use of the asset. C) If a computer manufacturer leased computers it built to others, it would be engaging in leveraged leasing. D) A firm should always purchase, rather than lease, any asset that has a projected positive salvage value at the end of the relevant period of use. E) Lessors provide a source of financing for lessees.
Answer: E) Lessors provide a source of financing for lessees.
Explanation:
A Lease is a form of financing because in financing, an entity provides funding in the form of assets whether cash or otherwise to another entity to allow them use to operate their business. The entity that was provided with funding will then pay a periodic payment as a way to pay off the funding.
This is what happens in leases. The Lessor is the owner of the asset and they lease it to the Lessee who then uses it and pays a periodic amount to the Lessor for using the asset.
The ONE correct statement about lessors, lessees, and leasing, is E) Lessors provide a source of financing for lessees.
A lease is a source of financing business activities. Returning or using the asset is not a concern of the lessor. The lessee and not the lessor engages in leveraged leasing. We cannot conclude that a firm should always purchase an asset with positive salvage value. Sometimes, a firm needs to lease its equipment or building.
Thus, the correct statement about lessors, lessees, and leasing, is Option E.
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Real GDP refers to _____. rev: 04_09_2018 Multiple Choice GDP data that embodies changes in the price level but not changes in physical output GDP data that does not reflect changes in both physical output and the price level GDP data that has been adjusted for changes in the price level the value of the domestic output after adjustments have been made for environmental pollution and changes in the distribution of income
Answer: GDP data that has been adjusted for changes in the price level
Explanation:
Real GDP refers to the Nominal GDP adjusted for inflation. Nominal GDP calculates the value of final goods and services in the Economy by using the price levels of that year so if inflation has occurred, comparing it to previous years would be inaccurate.
The Real GDP would use the price levels of a base year to calculate the GDP of the current year so that the effect of inflation may be negated and the real growth of the economy can be seen.
Lerner had net income for 2016 of $104,000.Lerner had 32,000 shares of common stock outstanding at the beginning of the year and 48,000 shares of common stock outstanding at the end of the year.There were 5,000 shares of preferred stock outstanding all year.During 2016,Lerner declared and paid preferred dividends of $30,000.On December 31,2106,the market price of Lerner's common stock is $30 per share and the market price of its preferred stock is $57 per share.What is Lerner's price/earnings ratio? (Round the answer to two decimal places. )
A) 30.81
B) 11.54
C) 13.85
D) 16.22
Answer: D) 16.22
Explanation:
Price Earnings ratio = Market Value per share / Earnings per share
Earnings Per Share
[tex]\frac{Net Income - Preferred Dividend}{Average Common Stock} \\= \frac{104,000 - 30,000}{\frac{32,000 + 48,000}{2} } \\= \frac{74,000}{40,000} \\= 1.85[/tex]
Price Earnings ratio = Market Value per share / Earnings per share
= 30/1.85
= 16.22
The total market value of General Motors (GM) is $10 billion. GM has a market value of $7 billion of equity and a face value of $12 billion of debt. What are the weights in equity and debt that are used for calculating the WACC? A. 0.7, 0.3 B. 0.3, 0.7 C. 0.35, 0.65 D. cannot be determined
Answer:
A
Explanation:
The market value of equity and debt are used in calculating the weights when determining WACC
Total market value = market value of debt + market value of equity
$10 billion = 7 billion + market value of debt
market value of debt = $3 billion
weight of debt = $3 billion / $10 billion =0.3
weight of equity = $7 billion / $10 billion = 0.7
Differentiate between economic growth and economic development ?
Answer:
as a summary see the attached picture
List the five ways that contractual obligations may come to an end.
Answer:
1. Fulfillment of the contractual obligations by both parties.
2. Deliberate breach of contractual terms.
3. Prior written agreement to terminate the contract at a certain time.
4.When the contractual obligations are impossible to perform by a party
5. When a party discovers fraudulent activities or deceit within the contract.
Explanation:
1. The first way that a contractual obligation can come to an end is once they have been fulfilled by both parties. Once this happens, both parties are free from the contract and no longer owe each other any other obligation.
2. Once a party begins to break the terms of the contractual agreement, this can be seen as a breach of contract. Once this happens, the other party is no longer obliged to fulfill his/her own obligations within the contract.
3. Some contracts have a written agreement that describes situations in which the contract would be terminated automatically. This could be during pre-agreed conditions such as a global economic melt-down or a pandemic. Once these conditions are present, both parties can now be free of contractual obligations.
4. Once it is noticed that the obligations are actually impossible to perform, a party will definitely have to terminate the contract.
5. Once fraudulent activities are discovered within the terms of a contract by any party, the party is free to rescind the contract at any time. This could be lies, misinformation, and other misrepresentations of items within the contract.
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $52,900; total assets, $189,400; common stock, $89,000; and retained earnings, $37,429).
CABOT CORPORATION
Income Statement
For Current Year Ended December 31
Sales $449,600
Cost of goods sold 297,950
Gross profit 151,650
Operating expenses 98,800
Interest expense 4,000
Income before taxes 48,850
Income tax expense 19,679
Net income $29,171
CABOT CORPORATION
Balance Sheet December 31
Assets Liabilities and Equity
Cash $14,000 Accounts payable $17,500
Short-term investments 9,200 Accrued wages payable 4,000
Accounts receivable, net 32,600 Income taxes payable 4,700
Merchandise inventory 42,150 Long-term note payable, secured by
mortgage on plant assets 71,400
Prepaid expenses 2,950 Common stock 89,000
Plant assets, net 152,300 Retained earnings 66,600
Total assets $253,200 Total liabilities and equity $253,200
Required:
Compute the following:
1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in inventory, (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders' equity.
Answer:
1) current ratio = current assets / current liabilities = $100,900 / $26,200 = 3.85
(2) acid-test ratio = (current assets - inventory) / current liabilities = $58,750 / $26,200 = 2.24
(3) days' sales uncollected = (average accounts receivable / net credit sales) x 365 days = ($32,600 / $449,600) x 365 days = 26.47 days
(4) inventory turnover = COGS / average inventory = $297,950 / $47,525 = 6.27
(5) days' sales in inventory = (average inventory / COGS) x 365 = ($47,525 / $297,950) x 365 = 58.22 days
(6) debt-to-equity ratio = debt / equity = $97,600 / $155,600 = 0.63
(7) times interest earned = EBIT / interest expenses = $52,850 / $4,000 = 13.21
(8) profit margin ratio = net income / total sales = $29,171 / $449,600 = 6.49%
(9) total asset turnover = net sales / average total assets = $449,600 / $221,600 = 2.03
(10) return on total assets = EBIT / average total assets = $52,850 / $221,600 = 23.85%
(11) return on common stockholders' equity = net income / average equity = $29,171 / $141,014.50 = 20.69%
Current year-end financial statements of Cabot Corporation follow :
1) Current ratio = Current Assets / Current Liabilities
Current Ratio = $100,900 / $26,200
Current Ratio= $ 3.85
(2) Acid Test Ratio = (Current Assets - Inventory) / Current Liabilities)
Acid Test Ratio = $58,750 / $26,200
Acid Test Ratio =$2.24
(3) Days' Sales Uncollected = (Average Accounts Receivable / Net Credit Sales) x 365 days
Days' Sales Uncollected = ($32,600 / $449,600) x 365 days
Day's Sales Uncollected = 26.47 days
(4) Inventory Turnover = COGS / Average Inventory
Inventory Turnover = $297,950 / $47,525
Inventory Turnover = $ 6.27
(5) Days' Sales in Inventory = (Average Inventory / COGS) x 365
Days' Sales Inventory = ($47,525 / $297,950) x 365
Days' Sales Inventory = 58.22 days
(6) Debt-to-Equity Ratio = Debt / Equity
Debt to Equity Ratio= $97,600 / $155,600
Debt to Equity Ratio = $ 0.63
(7) Times Interest Earned = EBIT / Interest Expenses
Times Interest Earned= $52,850 / $4,000
Times Interest Earned= $ 13.21
(8) Profit Margin Ratio = Net Income / Total Sales
Profit Margin Ratio = $29,171 / $449,600
Profit Margin Ratio= 6.49%
(9) Total Asset Turnover = Net Sales / Average Total Assets
Total Asset Turnover = $449,600 / $221,600
Total Asset Turnover= $ 2.03
(10) Return on Total Assets = EBIT / average total assets
Return on Total Assets = $52,850 / $221,600
Return on Total Assets = 23.85%
(11) Return on Common Stockholders' Equity = net income / average equity Return on Common Stockholders' Equity= $29,171 / $141,014.50
Return on Common Stockholders' Equity= 20.69%
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A company purchased $9,700 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $485 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals:______.
a. $7,968.
b. $8,342.
c. $7,925.
d. $8,170.
e. $8,600.
Answer: answer is not in the option.
The cash paid on June 24 equals $8,939
Explanation:
Amount due to be paid = Cost of Goods purchased - Cost of goods returned on June 20
= 9,700 - 485
= $ 9,215
Discount 0f 3% in 10 days = amount due x Discount percentage
= 9,215 x 3% ( 0.03)
= $ 276.45
Payment to be made on June 24 = Cash amount due - Discount amount
= 9,215 - 276.45
= $ 8938.55 ≈$8,939
produces class rings. Its best-selling model has a direct materials standard of grams of a special alloy per ring. This special alloy has a standard cost of per gram. In the past month, the company purchased grams of this alloy at a total cost of . A total of grams were used last month to produce rings. Read the requirementsLOADING.... Requirement 1. What is the actual cost per gram of the special alloy that purchased last month? (Round your answer to the nearest cent.) The actual cost per gram of the special alloy that Collegiate Rings purchased last month is $
Complete Question:
Collegiate Rings produces class rings. Its best-selling model has a direct materials standard of 8 grams of a special alloy per ring. This special alloy has a standard cost of $65.40 per gram. In the past month, the company purchased 8,700 grams of this alloy at a total cost of $567,240. A total of 8,300 grams were used last month to produce 1,000 rings. Read the requirements. Requirement 1. What is the actual cost per gram of the special alloy that Collegiate Rings purchased last month? (Round your answer to the nearest cent.) The actual cost per gram of the special alloy that Collegiate Rings purchased last month is $
Answer:
Collegiate Rings
The actual cost per gram of the special alloy that Collegiate Rings purchased last month is $65.20
Explanation:
Calculations:
Actual Cost per gram of special alloy = Total Actual Cost/Total Actual Quantity
= 567,240/8,700 grams
= $65.2
This value represents the cost of the special alloy per gram. It is obtained as calculated above. Price or cost per unit is always equal to the actual cost divided by the total quantity. The actual cost will be equal to the price charged by the supplier less any discounts or special allowances.
The Unique Bookshelf Company is considering the purchase of a custom delivery van costing approximately $50,000. Using a discount rate of 20%, the present value of future cost savings is estimated at $51,200. To yield the 20% return, the actual cost of the van should not exceed the $50,000 estimate by more than:
Answer:
$1,200
Explanation:
Given that
Purchase of a customer delivery van = $50,000
discount rate = 20%
Present value of future cost savings = $51,200
Yield = 20%
Based on the above information, as per the net present value the initial cost of the equipment should not be more than the present value of cash inflows i.e. $51,200
So the more than amount is
= $51,200 - $50,000
= $1,200
The present value is the monetary value of the future cash inflows or outflows. It is determined based upon the differences in the discount rates in the future that is estimated as per the current growth rates.
If the company wants to yield a 20% return then the actual cost must not be estimated at more than $1,200.
Computation:
GIven,
Purchase cost =$50,000
Discount rate and yield rate =20%
Present value of future cost savings =$51,200
[tex]\rm{Exceeding\; Amount}=Present\;Value-Purchase\;Cost\\\\=\$51,200-\$50,000\\\\=\$1,200[/tex]
As per the net present value of the van, the initial cost that is the purchase price of the van should not be more than the present value of the future cost savings or the present value of the future cash inflows.
In this case, the present value of $50,000 cannot exceed this limit.
Therefore, in this case, the exceeding amount is $1,200.
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Retain the small predictable layers of risk and transfer the unpredictable catastrophic layer of risk. Does this statement promote appropriate risk financing decision making
Answer:
Yes the statement does
Explanation:
Retaining small predictable layers of risk and transferring the unpredictable catastrophic layer of risk to a more capable body is a very good approach towards promoting appropriate risk financing decision making, this is because
Financial risk decisions are decisions taken between alternatives i.e risks associated with business activities . it is more appropriate to take alternatives with a predictable layer of risk,that way it would be easier for the management to handle the risk associated with it, while transferring the unpredictable catastrophic layer of risk to a more capable body ,like the Insurance companies .
The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,000 direct labor-hours will be required in January. The variable overhead rate is $5 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,140 per month, which includes depreciation of $3,620. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:_______.
a. $54,520.
b. $58,140.
c. $39,520.
d. $15,000.
Answer:
Total cash disbursement= $54,520
Explanation:
Giving the following information:
The direct labor budget indicates that 3,000 direct labor-hours
The variable overhead rate is $5 per direct labor-hour.
The company's budgeted fixed manufacturing overhead is $43,140 per month, which includes depreciation of $3,620.
The depreciation expense is not a cash disbursement.
Cash disbursement:
Total variable manufacturing overhead= 5*3,000= 15,000
Total fixed manufacturing overhead= 43,140 - 3,620= 39,520
Total cash disbursement= $54,520
What increases the competitive pressures associated with the threat of entry?
Answer: E. When newcomers can expect to earn attractive profits
Explanation:
The Threat of Entry refers to the threat that companies that are already in the market face from companies that are looking to enter the market.
If the market is so profitable that newcomers can expect to make attractive profits, a lot of companies will come into the market to make said profits which will increase the competition in the market.
A worker-machine chart determines whether worker and machine tasks are conducted effectively.
a) true
b) false
Answer: true
Explanation: A worker-machine chart is a chart that helps to determine if worker and machine time are used efficiently and also the amount of time lost due to forces beyond one's control and/or set aside for rest and relaxation (downtime). It also determine how many machines the operation can manage, to study the activities of workers involved and are good for identifying working and idle time for workers and machine. From these it can be deduced if worker and machine tasks are conducted effectively.
Number of setups 20 20 Machining hours 1000 4000 Orders packed 150 350 Number of products manufactured 600 400 If machining hours are used as a base under traditional casting, how much overhead is assigned to Product A1 each year?
Answer:
$96,000
Explanation:
The computation of the overhead amount assigned to Product A1 each year is shown below:
= Overhead cost incurred per year ÷ number of hours worked by machine department × machine hours at Product A1
= $480,000 ÷ 5,000 hours × 1,000 hours
= $96,000
We simply applied the above formula so that the overhead cost assigned could come
Convergence property implies that on the delivery day,
A. cost-of-carry is paid
B. gain on the long position equals loss on the short position
C. observed futures price equals observed spot price
D. hedgers make money
Answer:
C.
Explanation:
Convergence property strictly implies that on the delivery day the observed futures price equals the observed spot price. In the markets these two prices must converge, If this does not happen, then this creates an arbitrage opportunity which ultimately brings with it the possibility for a risk-free profit, which is the act of buying an asset and immediately selling the same asset for a higher price.
Which of the following accurately represents the "split cost" for analyzing the direct materials flexible budget variance?
A) Actual Quantity x Actual Price
B) Actual Quantity x Standard Price
C) Standard Quantity x Actual Price
D) Standard Quantity x Standard Price
E) None of the above
Answer: B. Actual Quantity x Standard Price
Explanation:
The split cost" for analyzing the direct materials flexible budget variance is represented by the actual quantity multiplied by the standard price.
It should be noted that the flexible budget variance is denoted as the difference that occurs between the results which are gotten through the model of the flexible budget and the actual results.
Palmer Company has $5,000,000 of 15-year maturity bonds outstanding. Each bond has a maturity value of $1,000, an annual coupon of 12.0%. The bonds can be called at any time with a premium of $50 per bond. If the bonds are called, the company must pay flotation costs of $10 per new refunding bond. Ignore tax considerations ⎯assume that the firm's tax rate is zero.The company's decision of whether to call the bonds depends critically on the current interest rate on newly issued bonds. What is the breakeven interest rate, the rate below which it would be profitable to call in the bonds?
Answer:
11.6%
Explanation:
the total cost of calling the bonds = ($50 + $10) x ($5,000,000 / $1,000) = $300,000
the bonds' coupon payment = $5,000,000 x 12% = $600,000
the company should call the bonds only if it is profitable, and the savings are equal or higher than the costs
cost of calling the bonds ≤ number of years x (coupon - rate) x total bonds
$300,000 = 15 x [$600,000 - (rate x $5,000,000)]
$300,000 / 15 = $600,000 - (rate x $5,000,000)
$20,000 = $600,000 - (rate x $5,000,000)
rate x $5,000,000 = $580,000
rate = $580,000 / $5,000,000 = 0.116 = 11.6%
Sheridan Company sells its product for $7100 per unit. Variable costs per unit are: manufacturing, $4400, and selling and administrative, $100. Fixed costs are: $18000 manufacturing overhead, and $24000 selling and administrative. There was no beginning inventory at 1/1/18. Production was 20 units per year in 2018–2020. Sales were 20 units in 2018, 16 units in 2019, and 24 units in 2020. Income under absorption costing for 2020 is
Answer:
Sheridan Company
Income Statement
For the year ended December 31, 202x
Sales revenue $170,400
Cost of goods sold ($129,600)
Gross profit $40,800
Period costs ($24,000)
Operating income $16,800
cost of goods manufactured 2019 (or 2020, it is the same)= (20 x $4,500) + $18,000 = $108,000 / 20 = $5,400 per unit
COGS 2020 = 24 x $5,400 = $129,600
sales revenue = 24 x $7,100 = $170,400
Here is some pricing information for a pair of jeans from different countries. Country Price of a pair of jeans Actual Exchange Rate Israel 188 shekels 4.79 shekels/$ Indonesia 300,000 rupiah 9,430 rupiah/$ Mexico 530 pesos 13.3 pesos /$ For each country, compute the predicted exchange rate of the local currency per U.S. dollar. (Assume U.S. price of a pair of jean is $40). Which country (or countries) does the purchase power parity hold?
Answer:
Israel and Mexico
Explanation:
A bond pays annual interest. Its coupon rate is 8.5%. Its value at maturity is $1,000. It matures in 4 years. Its yield to maturity is currently 5.5%. The duration of this bond is _______ years. Multiple Choice 4.00 3.39 3.58 3.17
Answer:
4.00
Explanation:
The duration of the bond is the length of time that it takes for the coupons and the price of bond to reach the value of the bond that is the bond maturity.
A natural monopoly exists when a single seller experiences ____________ average total costs than any potential competitor.
Answer:
lower
Explanation:
A natural monopoly appears when there are high entry costs like large infrastructure costs or economies of scale where a company can provide the products at a lower costs than others which provides a big advantage to the firm in the market and makes it difficult for any potential competitor to be able to compete. According to that, the answer is that a natural monopoly exists when a single seller experiences lower average total costs than any potential competitor as this represents a barrier for the competitor to be able to enter the market.
The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using indirect approach for operating activities) as a(n):________.
A. Deduction from net income.
B. Addition to net income.
C. Financing activity.
D. Investing activity.
Answer:
Option A: deduction from net income
Explanation:
Bonds are usually known as loans and most times also as IOUs.
Most times, bonds when they are been sold at a discount or premium, the interest expense for that duration/ period will not be the same as it differ from the change in cash resulting from payment of interest expense.
And also, If premium is amortized, the interest expense that is been included in income determination is not that big like the interest paid or becoming payable in the period. Due to the cash outflow is larger than the deduction in arriving at net income, a deduction from net income is necessary to know cash provided by operating activities usually when using the indirect approach of presenting cash flows from operating activities.
Flagg, Inc. records adjusting entries at its December 31 year end. At December 31, employees had earned $9,200 of unpaid and unrecorded salaries. The next payday is January 3, at which time $23,000 will be paid. Prepare the January 1 journal entry to reverse the effect of the December 31 salary expense accrual.
Debit Salaries expense $9,200; credit Salaries payable $9,200.
Debit Salaries expense $13,800; debit Salaries payable $9,200; credit Cash $23,000.
Debit Salaries payable $13,800; credit Cash $13,800.
Debit Salaries payable $9,200, credit Salaries expense $9,200.
Debit Salaries expense $13,800; credit Salaries payable $13,800.
Answer:
Debit Salaries payable $9,200, Credit Salaries expense $9,200.
Explanation:
Journal entry to reverse the effect of the December 31 salary expense accrual:
Date Journal Entry Debit Credit
Salaries payable $9,200
Salaries expense $9,200
The demand curve for the product of a firm in a competitive market is ________, and the demand curve for the product of a monopolist is ________. Group of answer choices
Answer: Perfectly elastic; Downward sloping
Explanation:
The demand curve for the product of a firm in a competitive market is Perfectly elastic, and the demand curve for the product of a monopolist is Downward sloping.
The demand curve for products in a perfectly competitive market is a horizontal line indicating that it is perfectly elastic. The reason for this being that the demand curve is also the price that the market has decided to sell a product at and if any seller was to deviate from this price, their demand would drop.
In a Monopoly however, the demand curve to downward sloping to indicate that customers will demand more products if prices are lower. This is why monopolies usually have to reduce prices to make more revenue.